UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06243

Franklin Strategic Series

(Exact name of registrant as specified in charter)

_One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: 4/30

Date of reporting period: 4/30/24

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.   

Not Applicable

.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

April

30,

2024

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

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are

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direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

Franklin

Strategic

Series

1

franklintempleton.com

Annual

Report

SHAREHOLDER

LETTER

Dear

Shareholder,

We

are

pleased

to

provide

the

annual

report

of

Franklin

Strategic

Series

for

the

12-month

reporting

period

ended

April

30,

2024.

Please

read

on

for

a

detailed

look

at

prevailing

economic

and

market

conditions

during

the

Funds’

reporting

period

and

to

learn

how

those

conditions

have

affected

Fund

performance.

As

always,

we

remain

committed

to

providing

you

with

excellent

service

and

a

full

spectrum

of

investment

choices.

We

also

remain

committed

to

supplementing

the

support

you

receive

from

your

financial

advisor.

One

way

we

accomplish

this

is

through

our

website,

www.franklintempleton.com

.

Here

you

can

gain

immediate

access

to

market

and

investment

information,

including:

•

Fund

prices

and

performance;

•

Market

insights

and

commentaries

from

our

portfolio

Managers;

and

•

A

host

of

educational

resources.

We

look

forward

to

helping

you

meet

your

financial

goals.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

CFA

®

is

a

trademark

owned

by

CFA

Institute.

franklintempleton.com

Annual

Report

2

Contents

Funds’

Overview

3

Franklin

Growth

Opportunities

Fund

4

Franklin

Small

Cap

Growth

Fund

10

Franklin

Small-Mid

Cap

Growth

Fund

17

Financial

Highlights

and

Schedules

of

Investments

24

Financial

Statements

54

Notes

to

Financial

Statements

59

Report

of

Independent

Registered

Public

Accounting

Firm

83

Tax

Information

84

Board

Members

and

Officers

85

Shareholder

Information

90

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

Funds’

Overview

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

+22.66%

total

return

for

the

12-month

period

ended

April

30,

2024.

Inflation

slowed

amid

higher

interest

rates,

while

the

economy’s

continued

strength

helped

drive

equity

gains

and

alleviated

concerns

about

a

recession.

Technology-related

stocks

in

particular

helped

support

equity

prices

amid

cost-cutting

efforts

and

investor

optimism

that

artificial

intelligence

(AI)

would

lead

to

strong

growth

opportunities,

particularly

for

the

manufacturers

of

microchips

that

power

new

AI

applications.

The

U.S.

economy

was

strong,

posting

solid

gross

domestic

product

(GDP)

annual

growth

in

the

final

three

quarters

of

2023.

However,

the

expansion

slowed

in

the

first

quarter

of

2024

amid

slower

growth

in

consumer

spending,

exports,

and

state

and

local

government

spending,

as

well

as

a

decline

in

federal

government

spending.

Despite

a

deceleration

in

the

first

quarter,

consumer

spending

continued

to

power

the

economy,

helped

by

higher

asset

prices

and

increased

wages.

The

labor

market

remained

tight

but

showed

some

signs

of

easing.

Unemployment

increased

slightly

while

remaining

low

by

historical

standards,

and

wages

continued

to

grow,

albeit

at

a

slower

pace.

Inflation

generally

cooled,

although

the

Consumer

Price

Index

(CPI)

remained

at

or

above

3%

for

the

period.

Improving

economic

conditions

bolstered

consumer

confidence,

but

sentiment

remained

well

below

pre-

pandemic

levels.

Higher

interest

rates

during

the

12-month

period

meant

elevated

borrowing

costs

for

individuals

and

businesses,

which

dampened

some

economic

activity,

especially

in

the

housing

market.

The

U.S.

Federal

Reserve

(Fed)

shifted

its

monetary

policy,

moving

from

a

tightening

stance

early

in

the

12

months

under

review

to

a

more

neutral

policy

as

the

period

continued

and

inflation

generally

decelerated.

The

Fed

raised

the

federal

funds

target

rate

twice,

ending

the

period

at

a

range

of

5.25%–5.50%

and

pushing

short-term

interest

rates

to

their

highest

levels

in

more

than

two

decades.

However,

the

Fed

stopped

raising

rates

following

its

July

2023

meeting,

signaling

that

the

post-pandemic

tightening

cycle

was

concluding.

Nonetheless,

the

Fed

indicated

following

its

April

30–May

1,

2024,

meeting

that

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

The

strong

economy

and

persistent

inflation

led

investors

to

lower

their

expectations

for

interest

rates

in

the

near

future.

4

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund

Fund

Overview

Q.

What

is

the

Fund’s

investment

strategy?

A.

The

Fund

seeks

capital

appreciation.

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.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

As

active

managers,

we

look

for

opportunities

in

areas

of

the

market

where

growth

is

often

not

appreciated.

Small-

and

mid-cap

companies

along

with

much

of

the

broader

market

have

not

participated

in

the

market

rally

and

are

attractive

on

a

relative

valuation

basis.

During

the

year,

we

continued

to

focus

on

high-quality,

sustainable-growth

franchises

that

we

believe

are

well

positioned

to

benefit

in

the

coming

years.

The

Fund

has

a

high

conviction

strategy

focused

on

investing

in

the

leading

U.S.

growth

companies

across

the

market

cap

spectrum.

Many

of

our

investments

are

poised

to

benefit

from

multi-year

secular

growth

themes

such

as

digital

transformation,

health

care

innovation

and

generative

AI.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+33.49%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

narrow

benchmark,

the

Russell

3000

®

Growth

Index,

which

measures

the

performance

of

those

Russell

3000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+30.75%

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

+22.66%

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.

Q.

What

were

the

leading

contributors

to

performance?

A.

The

Fund

saw

the

largest

relative

contributions

from

the

consumer

discretionary

and

information

technology

(IT)

sectors.

Consumer

discretionary

performance

was

driven

by

a

position

in

Wingstop,

as

strong

restaurant

traffic,

digital

leadership,

growing

brand

awareness

and

improved

supply-

chain

management

have

all

boosted

profit

margins

for

the

fast-food

operator

and

franchiser.

The

IT

sector

was

helped

by

an

underweight

in

Apple

and

a

position

in

Crowdstrike

Holdings.

Our

limited

exposure

to

Apple

versus

the

benchmark

proved

positive

for

relative

returns.

Decelerating

Portfolio

Composition

4/30/24

%

of

Total

Net

Assets

Software

20.8%

Semiconductors

&

Semiconductor

Equipment

13.5%

Interactive

Media

&

Services

8.3%

Broadline

Retail

6.8%

Hotels,

Restaurants

&

Leisure

4.5%

Health

Care

Providers

&

Services

3.5%

Life

Sciences

Tools

&

Services

3.5%

Financial

Services

3.5%

Capital

Markets

3.4%

Pharmaceuticals

3.3%

Health

Care

Equipment

&

Supplies

3.0%

Technology

Hardware,

Storage

&

Peripherals

2.6%

IT

Services

2.4%

Ground

Transportation

2.2%

Other

*

19.0%

Short-Term

Investments

&

Other

Net

Assets

(0.3)%

*

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.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

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

Growth

Opportunities

Fund

5

franklintempleton.com

Annual

Report

iPad

and

wearables

sales,

along

with

China

headwinds,

have

been

a

drag

on

revenue

and

weighed

on

the

shares

of

the

tech

giant.

Technology

stocks,

in

general,

drove

the

markets

higher

with

the

promise

of

AI

increasing

productivity

for

businesses

across

multiple

sectors.

The

integration

of

AI

by

cybersecurity

firm

Crowdstrike

Holdings

has

been

positive

for

its

business.

Elsewhere,

in

the

communication

services

sector,

the

shares

of

Facebook-parent

Meta

Platforms

were

up

over

the

period.

The

company

has

taken

to

managing

its

expenses

aggressively

and

saw

improved

user

engagement.

Q.

What

were

the

leading

detractors

from

performance?

A.

Our

results

versus

the

index

were

hindered

primarily

by

stock

selection

and

overweighting

in

the

financials

and

real

estate

sectors.

In

the

real

estate

sector,

SBA

Communications

was

the

biggest

detractor

for

the

period.

Slower

carrier

spending

and

a

deceleration

in

U.S.

tower

leasing

weighed

on

the

shares

of

the

wireless

tower

operator.

An

underweight

in

Alphabet

was

a

relative

detractor

in

the

communication

services

sector

as

shares

of

the

company

rallied

to

new

highs,

helped

by

its

successful

digital

advertising

business

and

expanded

AI

capabilities.

Inflation

pressures

weighed

on

consumer

demand

for

energy

drink

maker

Monster

Beverage

in

the

consumer

staples

sector.

Among

the

bottom

five

detractors

was

chipmaker

Lattice

Semiconductor

in

the

IT

sector.

Softness

in

the

industrials

and

automotive

sectors,

due

to

inflation,

has

been

pressuring

demand

for

its

programmable

chips.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Over

the

course

of

the

year,

we

have

actively

been

reducing

exposure

to

many

strong

performing

holdings

in

the

IT

sector

and

redeploying

that

cash

into

opportunities

in

the

health

care

and

industrials

sectors.

The

health

care

sector

offers

an

attractive

combination

of

exposure

to

multi-

year

secular

growth

and

innovation

while

also

possessing

high-quality

characteristics.

The

industrials

sector

is

in

the

earlier

stages

of

its

digital

transformation

journey

and

category

leaders

are

poised

to

benefit

over

the

long

term.

Despite

actively

taking

profits

in

the

IT

sector,

it

remains

our

largest

sector

allocation

in

the

Fund

and

our

outlook

remains

positive.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Opportunities

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Grant

Bowers

Lead

Portfolio

Manager

Sara

Araghi,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2024,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

4/30/24

Company

Industry

%

of

Total

Net

Assets

a

aa

NVIDIA

Corp.

8.4%

Semiconductors

&

Semiconductor

Equipment

Amazon.com,

Inc.

6.8%

Broadline

Retail

Meta

Platforms,

Inc.

5.0%

Interactive

Media

&

Services

Microsoft

Corp.

4.9%

Software

Mastercard,

Inc.

3.5%

Financial

Services

Eli

Lilly

&

Co.

2.6%

Pharmaceuticals

Apple,

Inc.

2.6%

Technology

Hardware,

Storage

&

Peripherals

ServiceNow,

Inc.

2.5%

Software

Alphabet,

Inc.

2.4%

Interactive

Media

&

Services

Chipotle

Mexican

Grill,

Inc.

2.3%

Hotels,

Restaurants

&

Leisure

Performance

Summary

as

of

April

30,

2024

Franklin

Growth

Opportunities

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of 4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+33.49%

+26.14%

5-Year

+73.60%

+10.41%

10-Year

+215.26%

+11.53%

Advisor

1-Year

+33.80%

+33.80%

5-Year

+75.83%

+11.95%

10-Year

+223.48%

+12.46%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Growth

Opportunities

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/14–4/30/24)

Advisor

Class

(4/30/14–4/30/24)

Franklin

Growth

Opportunities

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

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

8/31/24

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

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

3000

®

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

3000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(5/1/23–4/30/24)

Share

Class

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0179

$5.7478

$5.7657

C

$0.0179

$5.7478

$5.7657

R

$0.0179

$5.7478

$5.7657

R6

$0.0179

$5.7478

$5.7657

Advisor

$0.0179

$5.7478

$5.7657

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.94%

0.95%

Advisor

0.68%

0.69%

Your

Fund’s

Expenses

Franklin

Growth

Opportunities

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,275.30

$5.13

$1,020.35

$4.55

0.91%

C

$1,000

$1,271.10

$9.37

$1,016.62

$8.32

1.66%

R

$1,000

$1,274.00

$6.54

$1,019.11

$5.81

1.16%

R6

$1,000

$1,277.60

$3.26

$1,022.00

$2.89

0.58%

Advisor

$1,000

$1,277.00

$3.73

$1,021.59

$3.31

0.66%

10

franklintempleton.com

Annual

Report

Franklin

Small

Cap

Growth

Fund

Fund

Overview

Q.

What

is

the

Fund’s

investment

strategy?

A.

The

Fund

seeks

long-term

capital

growth.

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.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

Amid

market

conditions,

we

continue

to

look

to

increase

the

quality

of

the

portfolio

and

reduce

duration

somewhat.

Our

positioning

reflects

a

more

constructive

view

of

the

long-

term

backdrop

than

what

we

believe

is

reflected

in

stock

prices.

Our

ability

to

generate

alpha

rests

with

our

efforts

to

think

and

act

in

a

long-term

manner

while

the

market

often

focuses

and

reacts

to

short-term

issues.

One

of

the

challenges

of

investing

in

smaller

companies

is

business

models

have

not

always

evolved

to

a

point

where

assessing

quality

is

easy.

It

often

requires

looking

ahead

several

years

to

determine

profitability

and

return

metrics.

This

presents

an

opportunity

as

our

long-term

approach

allows

us

to

ignore

short-term

noise

that

often

causes

volatility

in

stock

prices.

In

fact,

to

the

extent

that

this

volatility

creates

an

attractive

price

disconnect,

we

look

to

take

advantage

to

initiate

or

add

to

positions.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+21.76%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Russell

2000

®

Growth

Index,

which

measures

the

performance

of

small-cap

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+12.39%

cumulative

total

return.

1

The

Standard

&

Poor’s

®

500

Index

(S&P

500),

which

tracks

the

broad

U.S.

stock

market,

posted

a

+22.66%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

13

.

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

.

Portfolio

Composition

4/30/24

%

of

Total

Net

Assets

Software

12.2%

Biotechnology

8.1%

Hotels,

Restaurants

&

Leisure

6.8%

Aerospace

&

Defense

6.3%

Semiconductors

&

Semiconductor

Equipment

6.1%

Health

Care

Equipment

&

Supplies

5.9%

Financial

Services

4.1%

Construction

&

Engineering

3.7%

Health

Care

Providers

&

Services

3.7%

Specialty

Retail

3.1%

Food

Products

2.8%

Capital

Markets

2.7%

Personal

Care

Products

2.6%

Household

Durables

2.3%

Other

*

26.5%

Short-Term

Investments

&

Other

Net

Assets

3.1%

*

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.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

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

38

.

Franklin

Small

Cap

Growth

Fund

11

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

The

Fund’s

relative

performance

was

led

by

the

health

care

sector,

which

benefited

from

a

position

in

Eyepoint

Pharmaceuticals.

The

shares

of

the

eye-focused

biopharmaceutical

company

soared

following

positive

clinical

data

for

a

macular

degeneration

treatment.

Stock

selection

in

the

consumer

discretionary

sector

also

proved

positive

for

relative

returns.

The

shares

of

fast

casual

restaurant

chain

Wingstop—a

top

contributor

over

the

period—led

the

sector

higher.

Strong

restaurant

traffic,

digital

leadership,

growing

brand

awareness

and

improved

supply-chain

management

have

all

increased

profit

margins

for

the

company.

A

position

in

Paymentus

Holdings

bolstered

relative

performance

in

the

financials

sector.

The

bill

payment

services

company

has

been

benefiting

from

higher

transaction

volumes

and

an

upbeat

sales

environment.

Results

in

the

information

technology

(IT)

sector

were

boosted

by

chipmaking

equipment

company

Onto

Innovation,

which

provides

the

chips

needed

for

increasingly

complex

AI

functioning.

Q.

What

were

the

leading

detractors

from

performance?

A.

Real

estate,

IT

and

industrials

were

relative

detractors

at

the

sector

level

largely

due

to

stock

selection.

In

the

industrials

sector,

shares

of

Allegiant

Travel

Company

underperformed

as

the

company

faced

declines

in

passenger

traffic.

While

the

health

care

sector

was

a

leading

contributor

to

relative

returns,

positions

in

cosmetic

pharmaceutical

company

Revance

Therapeutics

and

biopharmaceutical

company

PTC

Therapeutics

(not

held

at

period-end)

were

among

the

Fund’s

bottom

five

detractors.

Both

companies

struggled

with

delayed

product

launches

and

drug

approval

setbacks,

respectively.

In

the

financials

sector,

payment

platform

Flywire

faced

slowing

growth

and

foreign

exchange

headwinds,

which

pressured

its

stock.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Portfolio

turnover

remains

modest.

We

continued

to

look

to

increase

quality

and

reduce

duration

somewhat.

The

biggest

changes

to

the

Fund

over

the

past

12

months

were

the

addition

of

HashiCorp

and

NCino

to

the

IT

sector:

ZoomInfo

to

the

communication

services

sector;

and

Alaska

Air

to

the

industrials

sector.

Each

of

these

additions

were

on

the

back

of

stock

weakness,

which

is

typical

for

our

strategy.

We

also

increased

an

already

existing

position

in

Silicon

Labs

(IT)

in

the

portfolio.

In

contrast,

notable

sales

were

M/I

Homes

in

the

consumer

discretionary

sector;

Masonite

(not

held

at

period-end)

and

Univar

(not

held

at

period-end)

in

the

industrials

sector;

RayzeBio

in

the

health

care

sector;

and

Hostess

Brands

(not

held

at

period-end)

in

the

consumer

staples

sector.

All

but

M/I

homes

were

acquired

during

the

period.

We

also

reduced

our

investment

in

Tri

Pointe

Homes

in

the

consumer

discretionary

sector

and

lessened

our

exposure

to

home-

builders

in

general

as

stock

prices

have

rebounded

from

depressed

levels

and

now

prices

better

reflect

our

estimate

of

intrinsic

value.

Share

price

strength

or

opportunities

to

focus

on

higher

conviction

companies

are

usually

what

motivate

us

to

sell.

Looking

ahead,

we

remain

optimistic

about

the

long-term

prospects

of

our

investments

and

the

opportunities

for

growth

in

their

respective

markets.

We

believe

that

our

disciplined

approach

of

investing

in

high-quality,

durable

businesses

with

strong

competitive

advantages

and

attractive

valuations

will

continue

to

deliver

superior

risk-

adjusted

returns

over

time.

As

always,

we

appreciate

your

trust

and

support

as

we

navigate

this

dynamic

and

challenging

environment.

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

Top

10

Holdings

4/30/24

Company

Industry

%

of

Total

Net

Assets

a

aa

BWX

Technologies,

Inc.

2.6%

Aerospace

&

Defense

Onto

Innovation,

Inc.

2.5%

Semiconductors

&

Semiconductor

Equipment

Wingstop,

Inc.

2.2%

Hotels,

Restaurants

&

Leisure

BellRing

Brands,

Inc.

2.1%

Personal

Care

Products

AAR

Corp.

2.0%

Aerospace

&

Defense

Arcosa,

Inc.

1.9%

Construction

&

Engineering

Inspire

Medical

Systems,

Inc.

1.9%

Health

Care

Equipment

&

Supplies

Vontier

Corp.

1.8%

Electronic

Equipment,

Instruments

&

Components

Liberty

Energy,

Inc.

1.7%

Energy

Equipment

&

Services

Integer

Holdings

Corp.

1.7%

Health

Care

Equipment

&

Supplies

Franklin

Small

Cap

Growth

Fund

12

franklintempleton.com

Annual

Report

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2024,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

April

30,

2024

Franklin

Small

Cap

Growth

Fund

13

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of 4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+21.76%

+15.06%

5-Year

+38.03%

+5.46%

10-Year

+120.57%

+7.62%

Advisor

1-Year

+22.10%

+22.10%

5-Year

+39.85%

+6.94%

10-Year

+126.29%

+8.51%

See

page

15

for

Performance

Summary

footnotes.

Franklin

Small

Cap

Growth

Fund

Performance

Summary

14

franklintempleton.com

Annual

Report

See

page

15

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/14–4/30/24)

Advisor

Class

(4/30/14–4/30/24)

Franklin

Small

Cap

Growth

Fund

Performance

Summary

15

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

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

8/31/24

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

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

2000

®

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

2000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

1.11%

1.12%

Advisor

0.86%

0.87%

Your

Fund’s

Expenses

Franklin

Small

Cap

Growth

Fund

16

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,286.40

$6.04

$1,019.58

$5.33

1.06%

C

$1,000

$1,280.90

$10.28

$1,015.85

$9.08

1.81%

R

$1,000

$1,284.90

$7.46

$1,018.34

$6.59

1.31%

R6

$1,000

$1,288.90

$3.72

$1,021.61

$3.28

0.65%

Advisor

$1,000

$1,288.10

$4.62

$1,020.82

$4.08

0.81%

17

franklintempleton.com

Annual

Report

Franklin

Small-Mid

Cap

Growth

Fund

Fund

Overview

Q.

What

is

the

Fund’s

investment

strategy?

A.

The

Fund

seeks

long-term

capital

growth.

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.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

Equity

market

volatility

is

inevitable.

We

patiently

wait

for

markets

to

excessively

punish

or

reward

stocks

relative

to

our

view

of

fair

value

and

then

invest/divest

opportunistically.

We

focus

on

companies

growing

faster

than

their

peers;

have

superior

profitability

and

cash

flow;

and

have

the

ability

to

improve/scale

up

in

the

foreseeable

future.

We

are

patient,

long-term

growth

investors.

Through

rigorous

due

diligence

our

analysts

identify

critical

secular

themes/

trends

in

each

market

sector.

We

then

seek

to

identify

the

companies

driving

or

benefiting

from

these

trends

and

having

a

sustainable

position/competitive

advantage.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+18.39%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Russell

Midcap

®

Growth

Index,

which

measures

the

performance

of

those

Russell

Midcap

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+20.70%

cumulative

total

return.

1

Also

in

comparison,

the

Standard

&

Poor’s

®

500

Index

(S&P

500),

which

tracks

the

broad

U.S.

stock

market,

posted

a

+22.66%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

20

.

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.

Q.

What

were

the

leading

contributors

to

performance?

A.

What

benefited

the

Fund

most

over

the

period

was

stock

selection

in

the

information

technology

(IT)

sector,

which

was

boosted

by

our

holdings

in

cloud

networking

company

Arista

Networks

(not

held

at

period-end)

and

cybersecurity

firm

Crowdstrike

Holdings.

Technology

stocks,

in

general,

drove

the

markets

higher

with

the

promise

of

artificial

intelligence

(AI)

increasing

productivity

for

businesses

across

multiple

sectors.

The

integration

of

AI

by

these

two

companies

has

been

good

for

their

respective

businesses.

Strong

stock

selection

in

the

consumer

staples

and

industrials

sectors

further

enhanced

relative

returns.

Trane

Technologies

was

Portfolio

Composition

4/30/24

%

of

Total

Net

Assets

Software

12.6%

Capital

Markets

7.9%

Hotels,

Restaurants

&

Leisure

6.0%

Life

Sciences

Tools

&

Services

5.8%

IT

Services

5.1%

Health

Care

Equipment

&

Supplies

5.0%

Specialty

Retail

4.8%

Professional

Services

4.8%

Semiconductors

&

Semiconductor

Equipment

4.1%

Aerospace

&

Defense

3.3%

Building

Products

2.5%

Oil,

Gas

&

Consumable

Fuels

2.5%

Interactive

Media

&

Services

2.1%

Biotechnology

2.1%

Other

*

28.9%

Short-Term

Investments

&

Other

Net

Assets

2.5%

*

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.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

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

49

.

Franklin

Small-Mid

Cap

Growth

Fund

18

franklintempleton.com

Annual

Report

a

leading

contributor

in

the

industrials

sector.

The

company

provides

heating,

ventilation

and

air

conditioning

(HVAC)

solutions

to

commercial

and

residential

markets.

Strength

in

sales,

orders

and

backlog

have

been

tailwinds

for

the

company.

Among

standalone

contributors

was

Wingstop

in

the

consumer

discretionary

sector.

Digital

leadership,

growing

brand

awareness

and

improved

supply-chain

management

have

been

helping

to

drive

earnings

upside

for

the

fast

casual

restaurant

chain.

Q.

What

were

the

leading

detractors

from

performance?

A.

Real

estate,

health

care

and

consumer

discretionary

were

leading

sector

detractors

over

the

period.

SBA

Communications

was

a

drag

on

real

estate

sector

performance

as

slower

carrier

spending

and

a

deceleration

in

U.S.

tower

leasing

weighed

on

the

shares

of

wireless

tower

operator.

In

the

health

care

sector,

medical

device

manufacturer

Penumbra

had

a

dampening

effect

on

results.

The

medical

device

manufacturer

faced

several

headwinds,

including

delays

on

the

launch

of

its

neurovascular

thrombectomy

system;

inventory

reductions

in

advance

of

anticipated

regulatory

changes;

and

management

discontinuing

the

sale

of

some

unprofitable

embolization

products

in

markets

outside

the

U.S.

A

deteriorating

macro

environment

in

China

and

continued

caution

among

biopharma

customers

had

a

negative

impact

on

several

life

science

tools

companies,

including

our

investment

in

10x

Genomics,

which

also

detracted

in

the

health

care

sector.

A

position

in

Albemarle

in

the

materials

sector

was

the

biggest

individual

detractor

over

the

period.

The

shares

of

the

chemical

manufacturer

were

pressured

by

a

drop

in

lithium

prices

due

to

low

demand

and

high

supply.

Albemarle

is

a

global

leader

in

the

production

of

lithium,

which

is

a

key

ingredient

of

electric

car

batteries.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

Over

the

period,

we

added

two

new

names

via

initial

public

offerings

of

CG

Oncology

in

the

health

care

sector

and

Astera

Labs

(not

held

at

period-end)

in

the

IT

sector.

We

also

added

Karuna

Therapeutics

(not

held

at

period-end)

to

the

health

care

sector,

which

received

an

acquisition

offer

from

Bristol-Myers

Squibb

shortly

after,

boosting

its

stock

price.

In

terms

of

notable

weighting

changes,

our

industrial

sector

exposure

significantly

increased

due

to

performance.

It

is

the

one

sector

where

we

had

net

additions

to

the

number

of

positions—Axon

Enterprise,

Xylem,

United

Rentals

and

Verisk

Analytics—in

a

significant

upgrade

to

quality.

Our

weighting

was

also

up

in

the

financials

sector

where

we

opened

new

positions

in

Block,

Blue

Owl

Capital

and

Arthur

J.

Gallagher

&

Co.,

and

increased

weightings

in

Aerius

International

(not

held

at

period-end),

LPL

Financial

Holdings

and

Nasdaq.

Exposure

to

the

communication

services

sector

grew

as

we

initiated

a

position

in

The

New

York

Times

Company

and

increased

existing

allocations

to

Pinterest

and

Roblox.

Both

our

consumer

staples

and

IT

sectors

weightings

increased

due

to

performance.

Our

desire

to

further

concentrate

the

portfolio

into

fewer,

high-conviction

growth

stocks

led

to

a

meaningful

reduction

in

the

consumer

discretionary

sector

as

many

stocks

had

done

quite

well

in

the

face

of

a

looming

recession.

We

exited

Levi

Strauss

&

Co.,

Chipotle

Mexican

Grill,

Vail

Resorts,

AutoZone

and

Petco

Health

and

Wellness

Company.

Merger

and

acquisition

activity

decreased

our

exposure

to

the

health

care

sector.

Elsewhere,

weightings

in

the

remaining

energy,

materials

and

real

estate

sector

stayed

the

same

or

decreased

slightly.

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

April

30,

2024,

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

Top

10

Holdings

4/30/24

Company

Industry

%

of

Total

Net

Assets

a

aa

Trane

Technologies

plc

2.5%

Building

Products

Dexcom,

Inc.

2.3%

Health

Care

Equipment

&

Supplies

Ares

Management

Corp.

2.1%

Capital

Markets

Crowdstrike

Holdings,

Inc.

2.1%

Software

Agilent

Technologies,

Inc.

1.9%

Life

Sciences

Tools

&

Services

Axon

Enterprise,

Inc.

1.9%

Aerospace

&

Defense

Paychex,

Inc.

1.8%

Professional

Services

Gartner,

Inc.

1.8%

IT

Services

Verisk

Analytics,

Inc.

1.7%

Professional

Services

Fastenal

Co.

1.7%

Trading

Companies

&

Distributors

Franklin

Small-Mid

Cap

Growth

Fund

19

franklintempleton.com

Annual

Report

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

April

30,

2024

Franklin

Small-Mid

Cap

Growth

Fund

20

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+18.39%

+11.88%

5-Year

+51.93%

+7.50%

10-Year

+146.99%

+8.85%

Advisor

1-Year

+18.68%

+18.68%

5-Year

+53.87%

+9.00%

10-Year

+153.24%

+9.74%

See

page

22

for

Performance

Summary

footnotes.

Franklin

Small-Mid

Cap

Growth

Fund

Performance

Summary

21

franklintempleton.com

Annual

Report

See

page

22

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/14–4/30/24)

Advisor

Class

(4/30/14–4/30/24)

Franklin

Small-Mid

Cap

Growth

Fund

Performance

Summary

22

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Liquidity

risk

exists

when

securities

or

other

investments

become

more

difficult

to

sell,

or

are

unable

to

be

sold,

at

the

price

at

which

they

have

been

valued.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

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

8/31/24

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

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

Midcap

®

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

Midcap

®

Index

companies

with

relative-

ly

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

The

S&P

500

®

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.90%

0.92%

Advisor

0.65%

0.67%

Your

Fund’s

Expenses

Franklin

Small-Mid

Cap

Growth

Fund

23

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,228.00

$4.71

$1,020.63

$4.28

0.85%

C

$1,000

$1,222.90

$8.85

$1,016.90

$8.03

1.60%

R

$1,000

$1,226.20

$6.09

$1,019.39

$5.53

1.10%

R6

$1,000

$1,230.20

$2.73

$1,022.42

$2.48

0.49%

Advisor

$1,000

$1,229.40

$3.34

$1,021.87

$3.03

0.60%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$39.15

$43.14

$56.25

$39.60

$39.57

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.20)

(0.12)

(0.28)

(0.26)

(0.14)

Net

realized

and

unrealized

gains

(losses)

...........

12.81

(2.19)

(7.76)

20.03

3.59

Total

from

investment

operations

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

12.61

(2.31)

(8.04)

19.77

3.45

Less

distributions

from:

Net

realized

gains

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

(5.77)

(1.68)

(5.07)

(3.12)

(3.42)

Net

asset

value,

end

of

year

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

$45.99

$39.15

$43.14

$56.25

$39.60

Total

return

c

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

33.49%

(4.98)%

(16.57)%

50.64%

8.90%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.91%

0.95%

0.90%

0.91%

0.95%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.91%

e

0.94%

0.89%

0.91%

e

0.95%

e

Net

investment

(loss)

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

(0.45)%

(0.30)%

(0.49)%

(0.51)%

(0.35)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$3,453,647

$2,765,017

$3,215,834

$4,203,693

$2,883,392

Portfolio

turnover

rate

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

27.49%

16.52%

f

17.20%

17.54%

19.47%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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.

Annual

Report

25

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$28.86

$32.55

$43.87

$31.61

$32.47

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.38)

(0.30)

(0.54)

(0.50)

(0.35)

Net

realized

and

unrealized

gains

(losses)

...........

9.28

(1.71)

(5.71)

15.88

2.91

Total

from

investment

operations

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

8.90

(2.01)

(6.25)

15.38

2.56

Less

distributions

from:

Net

realized

gains

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

(5.77)

(1.68)

(5.07)

(3.12)

(3.42)

Net

asset

value,

end

of

year

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

$31.99

$28.86

$32.55

$43.87

$31.61

Total

return

c

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

32.52%

(5.69)%

(17.20)%

49.47%

8.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.66%

1.70%

1.65%

1.66%

1.70%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.66%

e

1.69%

1.64%

1.66%

e

1.70%

e

Net

investment

(loss)

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

(1.18)%

(1.05)%

(1.23)%

(1.26)%

(1.10)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$87,686

$119,070

$158,895

$278,804

$216,757

Portfolio

turnover

rate

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

27.49%

16.52%

f

17.20%

17.54%

19.47%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$36.13

$40.06

$52.69

$37.32

$37.57

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.29)

(0.20)

(0.39)

(0.36)

(0.22)

Net

realized

and

unrealized

gains

(losses)

...........

11.78

(2.05)

(7.17)

18.85

3.39

Total

from

investment

operations

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

11.49

(2.25)

(7.56)

18.49

3.17

Less

distributions

from:

Net

realized

gains

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

(5.77)

(1.68)

(5.07)

(3.12)

(3.42)

Net

asset

value,

end

of

year

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

$41.85

$36.13

$40.06

$52.69

$37.32

Total

return

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

33.18%

(5.21)%

(16.79)%

50.26%

8.64%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.16%

1.20%

1.15%

1.15%

1.20%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.16%

d

1.19%

1.14%

1.15%

d

1.20%

d

Net

investment

(loss)

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

(0.70)%

(0.55)%

(0.73)%

(0.75)%

(0.60)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$28,933

$22,664

$27,009

$40,396

$31,060

Portfolio

turnover

rate

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

27.49%

16.52%

e

17.20%

17.54%

19.47%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

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.

Annual

Report

27

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$44.87

$48.98

$63.06

$43.97

$43.42

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

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

(0.05)

0.02

(0.10)

(0.10)

0.01

Net

realized

and

unrealized

gains

(losses)

...........

14.77

(2.45)

(8.91)

22.31

3.96

Total

from

investment

operations

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

14.72

(2.43)

(9.01)

22.21

3.97

Less

distributions

from:

Net

realized

gains

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

(5.77)

(1.68)

(5.07)

(3.12)

(3.42)

Net

asset

value,

end

of

year

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

$53.82

$44.87

$48.98

$63.06

$43.97

Total

return

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

33.94%

(4.62)%

(16.32)%

51.13%

9.34%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.59%

0.57%

0.57%

0.59%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.58%

d

0.58%

0.57%

d

0.57%

d

0.59%

d

Net

investment

income

(loss)

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

(0.11)%

0.05%

(0.16)%

(0.17)%

0.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$375,777

$449,119

$461,475

$563,918

$383,208

Portfolio

turnover

rate

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

27.49%

16.52%

e

17.20%

17.54%

19.47%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

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

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$43.96

$48.07

$62.01

$43.31

$42.87

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.10)

(0.02)

(0.15)

(0.14)

(0.04)

Net

realized

and

unrealized

gains

(losses)

...........

14.45

(2.41)

(8.72)

21.96

3.90

Total

from

investment

operations

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

14.35

(2.43)

(8.87)

21.82

3.86

Less

distributions

from:

Net

realized

gains

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

(5.77)

(1.68)

(5.07)

(3.12)

(3.42)

Net

asset

value,

end

of

year

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

$52.54

$43.96

$48.07

$62.01

$43.31

Total

return

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

33.80%

(4.71)%

(16.37)%

51.01%

9.20%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.66%

0.69%

0.65%

0.66%

0.70%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.66%

d

0.68%

0.64%

0.66%

d

0.70%

d

Net

investment

(loss)

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

(0.19)%

(0.05)%

(0.24)%

(0.26)%

(0.10)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$291,914

$325,234

$636,524

$643,449

$467,727

Portfolio

turnover

rate

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

27.49%

16.52%

e

17.20%

17.54%

19.47%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Growth

Opportunities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

98.2%

Aerospace

&

Defense

1.9%

a

Axon

Enterprise,

Inc.

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

United

States

218,188

$

68,436,848

a,b,c

Space

Exploration

Technologies

Corp.

,

A

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

United

States

142,857

13,857,129

82,293,977

Automobiles

0.3%

a

Tesla,

Inc.

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

United

States

71,234

13,055,768

Beverages

1.3%

a

Celsius

Holdings,

Inc.

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

United

States

169,209

12,059,526

a

Monster

Beverage

Corp.

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

United

States

788,616

42,151,525

54,211,051

Biotechnology

0.4%

a

Vaxcyte,

Inc.

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

United

States

289,663

17,539,095

Broadline

Retail

6.8%

a

Amazon.com,

Inc.

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

United

States

1,657,897

290,131,975

Building

Products

1.3%

Trane

Technologies

plc

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

United

States

169,034

53,641,250

Capital

Markets

3.4%

Ares

Management

Corp.

,

A

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

United

States

528,051

70,278,307

MSCI,

Inc.

,

A

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

United

States

68,034

31,689,557

S&P

Global,

Inc.

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

United

States

105,629

43,923,707

145,891,571

Chemicals

1.6%

Linde

plc

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

United

States

156,596

69,052,572

Commercial

Services

&

Supplies

1.6%

a,b,c

Celonis

SE

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

Germany

4,619

1,325,257

a,b,c

Celonis

SE

,

D

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

Germany

25,571

7,336,684

Republic

Services,

Inc.

,

A

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

United

States

298,735

57,267,499

65,929,440

Construction

Materials

0.8%

Martin

Marietta

Materials,

Inc.

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

United

States

57,275

33,624,434

Electrical

Equipment

0.3%

Eaton

Corp.

plc

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

United

States

35,992

11,454,814

Entertainment

1.5%

a

Netflix,

Inc.

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

United

States

62,005

34,142,433

a

ROBLOX

Corp.

,

A

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

United

States

805,883

28,657,200

62,799,633

Financial

Services

3.5%

Mastercard,

Inc.

,

A

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

United

States

325,369

146,806,493

Food

Products

1.2%

a

Freshpet,

Inc.

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

United

States

243,126

25,788,375

Lamb

Weston

Holdings,

Inc.

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

United

States

317,259

26,440,365

52,228,740

Ground

Transportation

2.2%

a

Uber

Technologies,

Inc.

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

United

States

1,121,067

74,293,110

Union

Pacific

Corp.

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

United

States

84,597

20,063,025

94,356,135

Health

Care

Equipment

&

Supplies

3.0%

a

Dexcom,

Inc.

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

United

States

261,050

33,255,160

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Equipment

&

Supplies

(continued)

a

IDEXX

Laboratories,

Inc.

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

United

States

71,447

$

35,206,224

a

Intuitive

Surgical,

Inc.

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

United

States

156,165

57,877,872

126,339,256

Health

Care

Providers

&

Services

3.0%

McKesson

Corp.

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

United

States

93,222

50,079,790

UnitedHealth

Group,

Inc.

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

United

States

161,477

78,106,425

128,186,215

Hotels,

Restaurants

&

Leisure

4.5%

a

Chipotle

Mexican

Grill,

Inc.

,

A

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

United

States

30,851

97,476,820

a

DoorDash,

Inc.

,

A

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

United

States

163,401

21,121,213

Wingstop,

Inc.

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

United

States

182,908

70,381,169

188,979,202

Interactive

Media

&

Services

8.3%

a

Alphabet,

Inc.

,

C

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

United

States

621,619

102,343,352

Meta

Platforms,

Inc.

,

A

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

United

States

488,509

210,141,917

a

Pinterest,

Inc.

,

A

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

United

States

1,207,074

40,376,625

352,861,894

IT

Services

2.4%

a,b,c

Canva,

Inc.

,

A

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

Australia

3,094

3,300,249

a,b,c

Canva,

Inc.

,

B

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

Australia

11,829

12,617,534

a

Gartner,

Inc.

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

United

States

132,002

54,462,705

a

MongoDB,

Inc.

,

A

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

United

States

91,198

33,303,686

103,684,174

Leisure

Products

1.8%

a,b,c

Fanatics

Holdings,

Inc.

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

United

States

1,029,939

75,342,166

Life

Sciences

Tools

&

Services

3.5%

Danaher

Corp.

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

United

States

234,799

57,906,129

Thermo

Fisher

Scientific,

Inc.

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

United

States

64,705

36,799,028

West

Pharmaceutical

Services,

Inc.

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

United

States

146,933

52,525,609

147,230,766

Personal

Care

Products

1.5%

a

BellRing

Brands,

Inc.

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

United

States

671,117

37,025,525

a,d

Oddity

Tech

Ltd.

,

A

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

Israel

180,449

5,871,810

a

Oddity

Tech

Ltd.

,

A

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

Israel

580,952

18,904,178

61,801,513

Pharmaceuticals

3.3%

AstraZeneca

plc

,

ADR

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

United

Kingdom

345,357

26,205,689

Eli

Lilly

&

Co.

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

United

States

142,887

111,609,036

137,814,725

Professional

Services

1.9%

TransUnion

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

United

States

603,718

44,071,414

Verisk

Analytics,

Inc.

,

A

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

United

States

168,999

36,835,022

80,906,436

Real

Estate

Management

&

Development

0.9%

a

CoStar

Group,

Inc.

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

United

States

409,637

37,494,075

Semiconductors

&

Semiconductor

Equipment

13.5%

Analog

Devices,

Inc.

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

United

States

170,129

34,129,579

a

ARM

Holdings

plc

,

ADR

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

United

States

151,757

15,359,326

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

ASML

Holding

NV

,

ADR

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

Netherlands

35,198

$

30,709,199

a

Lattice

Semiconductor

Corp.

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

United

States

581,285

39,876,151

Monolithic

Power

Systems,

Inc.

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

United

States

143,115

95,791,163

NVIDIA

Corp.

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

United

States

410,029

354,273,256

570,138,674

Software

19.4%

a

Adobe,

Inc.

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

United

States

88,816

41,106,709

a

BILL

Holdings,

Inc.

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

United

States

169,882

10,593,842

a,b,c

ClearMotion,

Inc.

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

United

States

6,309,366

651,101

a

Confluent,

Inc.

,

A

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

United

States

299,634

8,425,708

a

Crowdstrike

Holdings,

Inc.

,

A

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

United

States

199,825

58,456,805

a

Datadog,

Inc.

,

A

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

United

States

105,681

13,262,966

a

Fair

Isaac

Corp.

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

United

States

43,192

48,950,789

a

HubSpot,

Inc.

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

United

States

52,613

31,824,025

Intuit,

Inc.

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

United

States

84,265

52,717,869

Microsoft

Corp.

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

United

States

538,088

209,493,801

a

Monday.com

Ltd.

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

United

States

110,435

20,908,659

Oracle

Corp.

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

United

States

299,904

34,114,080

Roper

Technologies,

Inc.

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

United

States

90,216

46,141,875

Salesforce,

Inc.

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

United

States

75,620

20,337,243

a

ServiceNow,

Inc.

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

United

States

150,982

104,680,350

a

Synopsys,

Inc.

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

United

States

116,156

61,631,212

a

Tyler

Technologies,

Inc.

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

United

States

75,967

35,062,569

a

Workday,

Inc.

,

A

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

United

States

100,268

24,538,588

822,898,191

Specialty

Retail

0.5%

a

AutoZone,

Inc.

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

United

States

7,878

23,290,519

Technology

Hardware,

Storage

&

Peripherals

2.6%

Apple,

Inc.

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

United

States

652,137

111,078,495

Total

Common

Stocks

(Cost

$

1,726,114,861

)

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

4,161,063,249

Convertible

Preferred

Stocks

1.1%

Software

1.1%

a,b,c

Databricks,

Inc.

,

G

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

United

States

338,280

25,436,387

a,b,c

Lacework,

Inc.

,

D

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

United

States

810,440

11,960,504

a,b,c

OneTrust

LLC

,

C

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

United

States

517,056

7,810,459

45,207,350

Total

Convertible

Preferred

Stocks

(Cost

$

50,470,099

)

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

45,207,350

Preferred

Stocks

1.0%

Commercial

Services

&

Supplies

0.2%

a,b,c

Optoro,

Inc.

,

E

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

United

States

556,026

9,017,603

a

Health

Care

Providers

&

Services

0.5%

a,b,c

Tempus

Labs,

Inc.

,

F

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

United

States

504,854

16,292,837

a,b,c

Tempus

Labs,

Inc.

,

G

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

United

States

126,131

4,070,547

20,363,384

Software

0.3%

a,b,c

ClearMotion,

Inc.

,

A-3

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

United

States

417,667

57,322

a,b,c

ClearMotion,

Inc.

,

A-4

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

United

States

2,606,463

331,738

a,b,c

Talkdesk,

Inc.

,

C

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

United

States

1,753,060

8,571,187

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

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

$

6,576,739

15,536,986

Total

Preferred

Stocks

(Cost

$

44,049,689

)

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

44,917,973

Escrows

and

Litigation

Trusts

0.0%

a,b

Wheels

Up

Experience,

Inc.,

Escrow

Account

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

United

States

10,278

—

Total

Escrows

and

Litigation

Trusts

(Cost

$

–

)

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

—

Total

Long

Term

Investments

(Cost

$

1,820,634,649

)

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

4,251,188,572

a

Short

Term

Investments

0.7%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.1%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

5,778,248

5,778,248

Total

Money

Market

Funds

(Cost

$

5,778,248

)

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

5,778,248

g

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.6%

Money

Market

Funds

0.6%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

24,049,725

24,049,725

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

24,049,725

)

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

24,049,725

Total

Short

Term

Investments

(Cost

$

29,827,973

)

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

29,827,973

a

Total

Investments

(Cost

$

1,850,462,622

)

101.0

%

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

$4,281,016,545

Other

Assets,

less

Liabilities

(

1.0

)

%

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

(43,059,478)

Net

Assets

100.0%

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

$4,237,957,067

a

a

a

See

Abbreviations

on

page

82

.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

c

See

Note

7

regarding

restricted

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2024.

See

Note

1(c).

e

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

See

Note

1(c)

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.

Annual

Report

33

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$17.19

$17.78

$30.08

$18.85

$21.46

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.09)

(0.09)

(0.14)

(0.18)

(0.11)

Net

realized

and

unrealized

gains

(losses)

...........

3.83

(0.40)

(7.89)

14.24

(1.07)

Total

from

investment

operations

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

3.74

(0.49)

(8.03)

14.06

(1.18)

Less

distributions

from:

Net

realized

gains

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

—

(0.10)

(4.27)

(2.83)

(1.43)

Net

asset

value,

end

of

year

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

$20.93

$17.19

$17.78

$30.08

$18.85

Total

return

c

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

21.76%

(2.73)%

(29.53)%

76.43%

(6.25)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.08%

1.11%

1.03%

1.03%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.07%

1.10%

1.03%

e

1.02%

1.06%

Net

investment

(loss)

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

(0.48)%

(0.54)%

(0.54)%

(0.69)%

(0.51)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$881,445

$763,871

$860,536

$1,244,591

$686,791

Portfolio

turnover

rate

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

15.99%

16.86%

30.88%

47.80%

35.29%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$11.84

$12.37

$22.57

$14.69

$17.15

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.16)

(0.15)

(0.25)

(0.29)

(0.21)

Net

realized

and

unrealized

gains

(losses)

...........

2.64

(0.28)

(5.68)

11.00

(0.82)

Total

from

investment

operations

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

2.48

(0.43)

(5.93)

10.71

(1.03)

Less

distributions

from:

Net

realized

gains

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

—

(0.10)

(4.27)

(2.83)

(1.43)

Net

asset

value,

end

of

year

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

$14.32

$11.84

$12.37

$22.57

$14.69

Total

return

c

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

20.95%

(3.44)%

(30.07)%

75.13%

(6.97)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.83%

1.86%

1.78%

1.78%

1.82%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.82%

1.84%

1.78%

e

1.77%

1.81%

Net

investment

(loss)

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

(1.23)%

(1.28)%

(1.31)%

(1.43)%

(1.26)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$22,351

$20,551

$32,755

$86,394

$66,269

Portfolio

turnover

rate

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

15.99%

16.86%

30.88%

47.80%

35.29%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$15.52

$16.10

$27.76

$17.58

$20.15

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.12)

(0.12)

(0.19)

(0.23)

(0.15)

Net

realized

and

unrealized

gains

(losses)

...........

3.45

(0.36)

(7.20)

13.24

(0.99)

Total

from

investment

operations

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

3.33

(0.48)

(7.39)

13.01

(1.14)

Less

distributions

from:

Net

realized

gains

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

—

(0.10)

(4.27)

(2.83)

(1.43)

Net

asset

value,

end

of

year

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

$18.85

$15.52

$16.10

$27.76

$17.58

Total

return

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

21.46%

(2.95)%

(29.71)%

75.96%

(6.47)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.33%

1.36%

1.28%

1.28%

1.32%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.32%

1.35%

1.28%

d

1.27%

1.31%

Net

investment

(loss)

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

(0.73)%

(0.79)%

(0.79)%

(0.93)%

(0.76)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$39,963

$39,777

$50,324

$79,314

$54,369

Portfolio

turnover

rate

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

15.99%

16.86%

30.88%

47.80%

35.29%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$20.15

$20.73

$34.14

$21.07

$23.73

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.02)

(0.02)

(0.04)

(0.09)

(0.02)

Net

realized

and

unrealized

gains

(losses)

...........

4.50

(0.46)

(9.10)

15.99

(1.21)

Total

from

investment

operations

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

4.48

(0.48)

(9.14)

15.90

(1.23)

Less

distributions

from:

Net

realized

gains

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

—

(0.10)

(4.27)

(2.83)

(1.43)

Net

asset

value,

end

of

year

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

$24.63

$20.15

$20.73

$34.14

$21.07

Total

return

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

22.23%

(2.29)%

(29.26)%

77.13%

(5.86)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.67%

0.68%

0.65%

0.65%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.66%

0.66%

0.64%

0.64%

0.64%

Net

investment

(loss)

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

(0.07)%

(0.10)%

(0.15)%

(0.31)%

(0.09)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$1,458,516

$1,345,064

$1,529,170

$2,149,795

$1,136,759

Portfolio

turnover

rate

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

15.99%

16.86%

30.88%

47.80%

35.29%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$19.59

$20.19

$33.43

$20.70

$23.37

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.05)

(0.05)

(0.08)

(0.13)

(0.06)

Net

realized

and

unrealized

gains

(losses)

...........

4.37

(0.45)

(8.89)

15.69

(1.18)

Total

from

investment

operations

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

4.32

(0.50)

(8.97)

15.56

(1.24)

Less

distributions

from:

Net

realized

gains

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

—

(0.10)

(4.27)

(2.83)

(1.43)

Net

asset

value,

end

of

year

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

$23.91

$19.59

$20.19

$33.43

$20.70

Total

return

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

22.10%

(2.50)%

(29.34)%

76.86%

(5.99)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.83%

0.86%

0.78%

0.78%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.82%

0.85%

0.77%

0.77%

0.81%

Net

investment

(loss)

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

(0.23)%

(0.29)%

(0.29)%

(0.44)%

(0.26)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$390,099

$341,973

$433,191

$739,985

$428,155

Portfolio

turnover

rate

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

15.99%

16.86%

30.88%

47.80%

35.29%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

93.8%

Aerospace

&

Defense

6.3%

a

AAR

Corp.

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

United

States

791,900

$

54,751,966

a

Axon

Enterprise,

Inc.

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

United

States

27,200

8,531,552

BWX

Technologies,

Inc.

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

United

States

759,400

72,727,738

a

Kratos

Defense

&

Security

Solutions,

Inc.

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

United

States

1,797,664

32,034,372

a

Loar

Holdings,

Inc.

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

United

States

137,200

7,178,304

175,223,932

Banks

1.3%

Pinnacle

Financial

Partners,

Inc.

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

United

States

316,904

24,306,537

Western

Alliance

Bancorp

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

United

States

206,500

11,735,395

36,041,932

Biotechnology

8.1%

a,b

Acumen

Pharmaceuticals,

Inc.

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

United

States

1,200,300

3,864,966

a

Apogee

Therapeutics,

Inc.

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

United

States

389,700

19,601,910

a

Ascendis

Pharma

A/S

,

ADR

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

Denmark

217,200

30,069,168

a,b

CG

oncology,

Inc.

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

United

States

197,800

7,949,582

a

Cullinan

Therapeutics,

Inc.

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

United

States

799,700

21,599,897

a

Cytokinetics,

Inc.

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

United

States

150,200

9,210,264

a

Day

One

Biopharmaceuticals,

Inc.

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

United

States

1,172,622

20,051,836

a

Dyne

Therapeutics,

Inc.

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

United

States

608,200

15,393,542

a

Heron

Therapeutics,

Inc.

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

United

States

1,797,608

4,170,451

a

Insmed,

Inc.

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

United

States

894,000

22,099,680

a

Kura

Oncology,

Inc.

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

United

States

686,100

13,461,282

a,b

Kyverna

Therapeutics,

Inc.

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

United

States

224,100

3,392,874

a

Merus

NV

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

Netherlands

509,900

22,899,609

a

Syndax

Pharmaceuticals,

Inc.

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

United

States

572,400

12,094,812

a

Twist

Bioscience

Corp.

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

United

States

119,862

3,743,290

a

Vaxcyte,

Inc.

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

United

States

262,100

15,870,155

225,473,318

Capital

Markets

2.7%

Bridge

Investment

Group

Holdings,

Inc.

,

A

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

United

States

1,401,600

9,222,528

Evercore,

Inc.

,

A

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

United

States

169,000

30,673,500

Houlihan

Lokey,

Inc.

,

A

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

United

States

282,300

35,990,427

75,886,455

Communications

Equipment

0.6%

a

Viavi

Solutions,

Inc.

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

United

States

2,169,300

17,137,470

Construction

&

Engineering

3.7%

Arcosa,

Inc.

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

United

States

685,200

52,088,904

a

Centuri

Holdings,

Inc.

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

United

States

471,000

11,657,250

Granite

Construction,

Inc.

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

United

States

731,143

40,578,437

104,324,591

Consumer

Staples

Distribution

&

Retail

0.5%

a

Performance

Food

Group

Co.

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

United

States

202,400

13,738,912

Diversified

Consumer

Services

0.4%

a

Nerdy,

Inc.

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

United

States

3,825,800

9,908,822

Electronic

Equipment,

Instruments

&

Components

1.8%

Vontier

Corp.

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

United

States

1,214,700

49,353,261

Energy

Equipment

&

Services

1.7%

Liberty

Energy,

Inc.

,

A

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

United

States

2,215,100

48,732,200

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Financial

Services

4.1%

a

Flywire

Corp.

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

United

States

1,580,210

$

32,394,305

a

Paymentus

Holdings,

Inc.

,

A

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

United

States

1,964,700

40,099,527

a

Repay

Holdings

Corp.

,

A

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

United

States

1,395,637

14,193,628

a

Shift4

Payments,

Inc.

,

A

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

United

States

472,200

27,321,492

114,008,952

Food

Products

2.8%

a

Freshpet,

Inc.

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

United

States

414,800

43,997,836

a

Simply

Good

Foods

Co.

(The)

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

United

States

949,200

34,598,340

78,596,176

Health

Care

Equipment

&

Supplies

5.9%

a

Haemonetics

Corp.

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

United

States

485,600

44,650,920

a

Inari

Medical,

Inc.

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

United

States

184,700

6,896,698

a

Inspire

Medical

Systems,

Inc.

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

United

States

214,744

51,895,035

a

Integer

Holdings

Corp.

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

United

States

434,900

48,547,887

a

Neogen

Corp.

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

United

States

623,432

7,686,916

a

Pulmonx

Corp.

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

United

States

647,016

4,923,792

164,601,248

Health

Care

Providers

&

Services

3.7%

a

HealthEquity,

Inc.

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

United

States

563,116

44,435,483

a

Hims

&

Hers

Health,

Inc.

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

United

States

1,606,947

20,135,046

a

NeoGenomics,

Inc.

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

United

States

1,270,400

17,683,968

a

Privia

Health

Group,

Inc.

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

United

States

1,195,900

22,004,560

104,259,057

Health

Care

Technology

1.7%

a

Certara,

Inc.

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

United

States

1,274,100

21,799,851

a

Phreesia,

Inc.

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

United

States

1,302,582

27,015,551

48,815,402

Hotel

&

Resort

REITs

0.6%

Pebblebrook

Hotel

Trust

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

United

States

1,174,800

17,069,844

Hotels,

Restaurants

&

Leisure

6.8%

a

Cava

Group,

Inc.

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

United

States

383,400

27,581,796

a

Portillo's,

Inc.

,

A

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

United

States

1,188,100

14,566,106

Red

Rock

Resorts,

Inc.

,

A

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

United

States

913,900

48,546,368

Texas

Roadhouse,

Inc.

,

A

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

United

States

249,500

40,114,610

Wingstop,

Inc.

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

United

States

156,813

60,340,074

191,148,954

Household

Durables

2.3%

a

M/I

Homes,

Inc.

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

United

States

194,646

22,621,758

a

Sonos,

Inc.

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

United

States

1,144,600

19,343,740

a

Tri

Pointe

Homes,

Inc.

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

United

States

591,900

21,811,515

63,777,013

Industrial

REITs

0.9%

Rexford

Industrial

Realty,

Inc.

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

United

States

588,400

25,189,404

Interactive

Media

&

Services

1.2%

a

ZoomInfo

Technologies,

Inc.

,

A

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

United

States

2,056,800

32,620,848

IT

Services

0.4%

a

BigCommerce

Holdings,

Inc.

,

1

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

United

States

1,758,800

9,954,808

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Life

Sciences

Tools

&

Services

0.2%

a

CryoPort,

Inc.

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

United

States

330,300

$

5,347,557

Machinery

2.0%

Kennametal,

Inc.

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

United

States

920,700

21,664,071

a

RBC

Bearings,

Inc.

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

United

States

141,700

34,652,735

56,316,806

Media

1.3%

New

York

Times

Co.

(The)

,

A

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

United

States

839,056

36,104,580

Oil,

Gas

&

Consumable

Fuels

1.6%

Matador

Resources

Co.

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

United

States

719,000

44,793,700

Passenger

Airlines

1.9%

a

Alaska

Air

Group,

Inc.

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

United

States

568,600

24,461,172

Allegiant

Travel

Co.

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

United

States

547,948

29,896,043

54,357,215

Personal

Care

Products

2.6%

a

BellRing

Brands,

Inc.

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

United

States

1,077,900

59,467,743

a,b

Oddity

Tech

Ltd.

,

A

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

Israel

424,200

13,803,468

73,271,211

Pharmaceuticals

2.3%

a

EyePoint

Pharmaceuticals,

Inc.

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

United

States

1,192,700

20,991,520

a

Intra-Cellular

Therapies,

Inc.

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

United

States

339,400

24,372,314

a

Pliant

Therapeutics,

Inc.

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

United

States

521,100

6,159,402

a

Revance

Therapeutics,

Inc.

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

United

States

1,536,492

5,546,736

a

Structure

Therapeutics,

Inc.

,

ADR

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

United

States

157,200

6,199,968

63,269,940

Professional

Services

2.2%

a

Legalzoom.com,

Inc.

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

United

States

2,680,980

32,037,711

a

Paycor

HCM,

Inc.

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

United

States

1,616,200

28,073,394

60,111,105

Semiconductors

&

Semiconductor

Equipment

6.1%

a

Lattice

Semiconductor

Corp.

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

United

States

677,800

46,497,080

a

Onto

Innovation,

Inc.

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

United

States

380,909

70,654,810

a

Silicon

Laboratories,

Inc.

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

United

States

186,900

22,706,481

a

SiTime

Corp.

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

United

States

346,912

30,916,798

170,775,169

Software

10.7%

a

Alkami

Technology,

Inc.

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

United

States

621,750

14,965,523

a

AvePoint,

Inc.

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

United

States

1,037,300

8,059,821

a,c,d

ClearMotion,

Inc.

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

United

States

3,698,772

381,698

a

CS

Disco,

Inc.

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

United

States

1,667,313

12,588,213

a

Envestnet,

Inc.

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

United

States

289,622

17,976,838

a

Freshworks,

Inc.

,

A

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

United

States

1,990,100

35,523,285

a

Gitlab,

Inc.

,

A

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

United

States

829,800

43,539,606

a

HashiCorp,

Inc.

,

A

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

United

States

1,451,700

47,122,182

a

LiveRamp

Holdings,

Inc.

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

United

States

1,191,900

38,271,909

a

Monday.com

Ltd.

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

United

States

240,400

45,514,932

a

nCino,

Inc.

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

United

States

612,900

17,872,164

a

Rubrik,

Inc.

,

A

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

United

States

194,800

6,237,496

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a,c,d

ServiceTitan,

Inc.

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

United

States

148,478

$

9,999,993

298,053,660

Specialty

Retail

2.9%

American

Eagle

Outfitters,

Inc.

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

United

States

543,100

13,175,606

a

Boot

Barn

Holdings,

Inc.

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

United

States

313,660

33,395,380

a

Five

Below,

Inc.

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

United

States

116,900

17,107,146

Lithia

Motors,

Inc.

,

A

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

United

States

69,726

17,736,900

81,415,032

Textiles,

Apparel

&

Luxury

Goods

0.9%

a

Figs,

Inc.

,

A

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

United

States

957,700

4,893,847

Steven

Madden

Ltd.

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

United

States

497,150

20,089,832

24,983,679

Trading

Companies

&

Distributors

1.6%

a

Beacon

Roofing

Supply,

Inc.

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

United

States

451,000

44,437,030

Total

Common

Stocks

(Cost

$

1,977,854,363

)

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

2,619,099,283

Convertible

Preferred

Stocks

2.5%

Automobile

Components

0.4%

a,c,d

Flock

Group,

Inc.

,

G

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

United

States

98,754

9,999,899

a

Diversified

Consumer

Services

0.5%

a,c,d

Newsela,

Inc.

,

D

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

United

States

709,046

12,915,705

a

Software

1.4%

a,c,d,e

Benchling,

Inc.

,

F

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

United

States

382,306

5,363,582

a,c,d

Checkr,

Inc.

,

E

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

United

States

1,388,889

21,236,766

a,c,d

OneTrust

LLC

,

A

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

United

States

625,361

9,446,475

a,c,d

OneTrust

LLC

,

A-1

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

United

States

56,457

852,819

a,c,d

Smule,

Inc.

,

J

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

United

States

162,712

2,325,203

39,224,845

Specialty

Retail

0.2%

a,c,d,e

1661,

Inc.

,

F

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

United

States

3,436,485

7,235,237

a

Total

Convertible

Preferred

Stocks

(Cost

$

90,764,293

)

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

69,375,686

Preferred

Stocks

0.6%

Automobile

Components

0.2%

a,c,d

Tula

eTechnology,

Inc.

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

United

States

361,111

—

a,c,d

Tula

eTechnology,

Inc.

,

E

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

United

States

3,611,111

6,478,900

6,478,900

Commercial

Services

&

Supplies

0.3%

a,c,d

Optoro,

Inc.

,

E

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

United

States

554,878

8,998,985

a

Software

0.1%

a,c,d

ClearMotion,

Inc.

,

A-3

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

United

States

1,037,942

142,450

a,c,d

ClearMotion,

Inc.

,

A-4

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

United

States

6,477,294

824,398

a,c,d

Smule,

Inc.

,

144A

,

G

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

United

States

1,542,673

993,216

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

See

Abbreviations

on

page

82

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Preferred

Stocks

(continued)

Software

(continued)

a,c,d

Smule,

Inc.

,

144A

,

H

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

United

States

352,675

$

268,275

2,228,339

Total

Preferred

Stocks

(Cost

$

32,144,989

)

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

17,706,224

Rights

Rights

0.0%

†

Biotechnology

0.0%

†

a,c,d

Chinook

Therapeutics,

Inc.,

CVR

,

6/30/30

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

United

States

410,500

395,806

Total

Rights

(Cost

$

160,095

)

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

395,806

Shares

Escrows

and

Litigation

Trusts

0.0%

a,c

Wheels

Up

Experience,

Inc.,

Escrow

Account

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

United

States

8,808

—

Total

Escrows

and

Litigation

Trusts

(Cost

$

–

)

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

—

Total

Long

Term

Investments

(Cost

$

2,100,923,740

)

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

2,706,576,999

a

Short

Term

Investments

3.8%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

3.2%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

90,555,123

90,555,123

Total

Money

Market

Funds

(Cost

$

90,555,123

)

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

90,555,123

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.6%

Money

Market

Funds

0.6%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

16,408,075

16,408,075

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

16,408,075

)

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

16,408,075

Total

Short

Term

Investments

(Cost

$

106,963,198

)

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

106,963,198

a

Total

Investments

(Cost

$

2,207,886,938

)

100.7

%

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

$2,813,540,197

Other

Assets,

less

Liabilities

(

0.7

)

%

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

(21,165,480)

Net

Assets

100.0%

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

$2,792,374,717

a

a

a

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2024.

See

Note

1(c).

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

See

Note

7

regarding

restricted

securities.

e

See

Note

8

regarding

holdings

of

5%

voting

securities.

f

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

h

See

Note

1(c)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$29.75

$33.07

$49.66

$32.15

$37.17

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.01)

(0.05)

(0.25)

(0.24)

(0.07)

Net

realized

and

unrealized

gains

(losses)

...........

5.48

(1.39)

(9.42)

21.89

1.24

Total

from

investment

operations

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

5.47

(1.44)

(9.67)

21.65

1.17

Less

distributions

from:

Net

realized

gains

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

—

(1.88)

(6.92)

(4.14)

(6.19)

Net

asset

value,

end

of

year

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

$35.22

$29.75

$33.07

$49.66

$32.15

Total

return

c

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

18.39%

(4.07)%

(22.83)%

68.37%

2.97%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.87%

0.90%

0.85%

0.86%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.85%

0.88%

0.84%

0.85%

0.87%

Net

investment

(loss)

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

(0.02)%

(0.17)%

(0.54)%

(0.54)%

(0.21)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$2,822,866

$2,578,199

$3,019,703

$4,217,167

$2,515,801

Portfolio

turnover

rate

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

37.02%

27.75%

48.89%

53.69%

52.98%

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

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$13.45

$16.20

$27.98

$19.41

$24.98

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.11)

(0.13)

(0.32)

(0.33)

(0.22)

Net

realized

and

unrealized

gains

(losses)

...........

2.46

(0.74)

(4.54)

13.04

0.84

Total

from

investment

operations

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

2.35

(0.87)

(4.86)

12.71

0.62

Less

distributions

from:

Net

realized

gains

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

—

(1.88)

(6.92)

(4.14)

(6.19)

Net

asset

value,

end

of

year

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

$15.80

$13.45

$16.20

$27.98

$19.41

Total

return

c

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

17.47%

(4.76)%

(23.43)%

67.11%

2.14%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.62%

1.65%

1.60%

1.61%

1.63%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.60%

1.63%

1.59%

1.60%

1.62%

Net

investment

(loss)

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

(0.77)%

(0.92)%

(1.29)%

(1.28)%

(0.96)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$60,281

$82,982

$110,596

$198,713

$138,940

Portfolio

turnover

rate

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

37.02%

27.75%

48.89%

53.69%

52.98%

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

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$24.93

$28.11

$43.32

$28.45

$33.66

Income

from

investment

operations

a

:

Net

investment

(loss)

b

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

(0.07)

(0.11)

(0.32)

(0.30)

(0.14)

Net

realized

and

unrealized

gains

(losses)

...........

4.58

(1.19)

(7.97)

19.31

1.12

Total

from

investment

operations

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

4.51

(1.30)

(8.29)

19.01

0.98

Less

distributions

from:

Net

realized

gains

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

—

(1.88)

(6.92)

(4.14)

(6.19)

Net

asset

value,

end

of

year

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

$29.44

$24.93

$28.11

$43.32

$28.45

Total

return

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

18.09%

(4.30)%

(23.00)%

67.96%

2.69%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.12%

1.15%

1.10%

1.10%

1.12%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.10%

1.13%

1.09%

1.09%

1.11%

Net

investment

(loss)

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

(0.27)%

(0.42)%

(0.79)%

(0.78)%

(0.45)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$37,276

$34,371

$38,761

$60,264

$40,997

Portfolio

turnover

rate

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

37.02%

27.75%

48.89%

53.69%

52.98%

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

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$36.39

$39.84

$58.24

$37.12

$41.83

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

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

0.14

0.08

(0.10)

(0.10)

0.07

Net

realized

and

unrealized

gains

(losses)

...........

6.70

(1.65)

(11.38)

25.36

1.41

Total

from

investment

operations

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

6.84

(1.57)

(11.48)

25.26

1.48

Less

distributions

from:

Net

realized

gains

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

—

(1.88)

(6.92)

(4.14)

(6.19)

Net

asset

value,

end

of

year

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

$43.23

$36.39

$39.84

$58.24

$37.12

Total

return

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

18.82%

(3.70)%

(22.57)%

68.95%

3.40%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.51%

0.53%

0.51%

0.51%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.49%

0.49%

0.50%

0.49%

0.48%

Net

investment

income

(loss)

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

0.34%

0.23%

(0.19)%

(0.19)%

0.18%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$539,962

$451,447

$540,509

$648,078

$224,341

Portfolio

turnover

rate

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

37.02%

27.75%

48.89%

53.69%

52.98%

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

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$35.22

$38.68

$56.79

$36.30

$41.09

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

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

0.09

0.03

(0.15)

(0.14)

0.02

Net

realized

and

unrealized

gains

(losses)

...........

6.48

(1.61)

(11.04)

24.77

1.38

Total

from

investment

operations

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

6.57

(1.58)

(11.19)

24.63

1.40

Less

distributions

from:

Net

realized

gains

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

—

(1.88)

(6.92)

(4.14)

(6.19)

Net

asset

value,

end

of

year

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

$41.79

$35.22

$38.68

$56.79

$36.30

Total

return

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

18.68%

(3.81)%

(22.65)%

68.77%

3.26%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.62%

0.65%

0.60%

0.61%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.60%

0.63%

0.59%

0.60%

0.62%

Net

investment

income

(loss)

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

0.23%

0.08%

(0.28)%

(0.29)%

0.04%

Supplemental

data

Net

assets,

end

of

year

(000’s)

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

$435,671

$469,050

$532,573

$552,987

$302,329

Portfolio

turnover

rate

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

37.02%

27.75%

48.89%

53.69%

52.98%

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

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.9%

Aerospace

&

Defense

3.3%

a

Axon

Enterprise,

Inc.

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

United

States

230,800

$

72,392,728

TransDigm

Group,

Inc.

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

United

States

46,300

57,783,789

130,176,517

Automobile

Components

0.5%

a,b

Mobileye

Global,

Inc.

,

A

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

Israel

684,500

18,857,975

Beverages

0.8%

a

Celsius

Holdings,

Inc.

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

United

States

417,500

29,755,225

Biotechnology

2.1%

a

Alnylam

Pharmaceuticals,

Inc.

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

United

States

126,200

18,166,490

a

BioMarin

Pharmaceutical,

Inc.

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

United

States

144,700

11,685,972

a

CG

oncology,

Inc.

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

United

States

324,700

13,049,693

a

Neurocrine

Biosciences,

Inc.

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

United

States

204,200

28,085,668

a

Vaxcyte,

Inc.

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

United

States

177,500

10,747,625

81,735,448

Building

Products

2.5%

Trane

Technologies

plc

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

United

States

312,100

99,041,814

Capital

Markets

7.9%

Ares

Management

Corp.

,

A

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

United

States

610,800

81,291,372

Blue

Owl

Capital,

Inc.

,

A

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

United

States

2,091,100

39,500,879

LPL

Financial

Holdings,

Inc.

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

United

States

227,300

61,173,249

MSCI,

Inc.

,

A

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

United

States

107,900

50,258,741

Nasdaq,

Inc.

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

United

States

670,500

40,129,425

Tradeweb

Markets,

Inc.

,

A

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

United

States

334,000

33,971,140

306,324,806

Commercial

Services

&

Supplies

1.0%

Republic

Services,

Inc.

,

A

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

United

States

211,100

40,467,870

Containers

&

Packaging

1.1%

Avery

Dennison

Corp.

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

United

States

193,300

42,000,224

Electrical

Equipment

1.7%

AMETEK,

Inc.

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

United

States

178,300

31,141,878

Rockwell

Automation,

Inc.

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

United

States

132,500

35,902,200

67,044,078

Electronic

Equipment,

Instruments

&

Components

1.5%

Amphenol

Corp.

,

A

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

United

States

483,500

58,392,295

Energy

Equipment

&

Services

0.7%

Halliburton

Co.

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

United

States

770,100

28,855,647

Entertainment

1.2%

a

ROBLOX

Corp.

,

A

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

United

States

1,369,600

48,702,976

Financial

Services

1.4%

a

Block,

Inc.

,

A

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

United

States

759,100

55,414,300

Food

Products

1.9%

a

Freshpet,

Inc.

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

United

States

307,900

32,658,953

Lamb

Weston

Holdings,

Inc.

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

United

States

476,300

39,694,842

72,353,795

Ground

Transportation

1.4%

Old

Dominion

Freight

Line,

Inc.

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

United

States

292,000

53,059,320

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Equipment

&

Supplies

5.0%

a

Dexcom,

Inc.

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

United

States

711,656

$

90,657,858

a

IDEXX

Laboratories,

Inc.

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

United

States

121,200

59,722,512

a

Penumbra,

Inc.

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

United

States

220,800

43,380,576

193,760,946

Health

Care

Providers

&

Services

0.7%

a

HealthEquity,

Inc.

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

United

States

331,100

26,127,101

Health

Care

Technology

1.7%

a

Certara,

Inc.

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

United

States

363,500

6,219,485

a

Veeva

Systems,

Inc.

,

A

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

United

States

303,600

60,282,816

66,502,301

Hotels,

Restaurants

&

Leisure

6.0%

a

Cava

Group,

Inc.

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

United

States

465,700

33,502,458

Darden

Restaurants,

Inc.

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

United

States

306,400

47,004,824

a

DoorDash,

Inc.

,

A

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

United

States

492,200

63,621,772

a

Expedia

Group,

Inc.

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

United

States

145,700

19,615,591

Wingstop,

Inc.

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

United

States

133,100

51,215,549

Wynn

Resorts

Ltd.

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

United

States

219,100

20,080,515

235,040,709

Household

Durables

0.6%

a

NVR,

Inc.

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

United

States

3,400

25,292,090

Industrial

REITs

0.8%

Terreno

Realty

Corp.

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

United

States

539,200

29,305,520

Insurance

1.1%

Arthur

J

Gallagher

&

Co.

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

United

States

189,100

44,379,879

Interactive

Media

&

Services

2.1%

a

Match

Group,

Inc.

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

United

States

825,759

25,449,892

a

Pinterest,

Inc.

,

A

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

United

States

1,743,600

58,323,420

83,773,312

IT

Services

5.1%

a

Cloudflare,

Inc.

,

A

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

United

States

416,500

36,402,100

a

EPAM

Systems,

Inc.

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

United

States

165,600

38,959,056

a

Gartner,

Inc.

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

United

States

167,700

69,191,343

a

MongoDB,

Inc.

,

A

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

United

States

143,700

52,476,366

197,028,865

Leisure

Products

1.5%

a,c,d

Fanatics

Holdings,

Inc.

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

United

States

793,714

58,061,819

Life

Sciences

Tools

&

Services

5.8%

a

10X

Genomics,

Inc.

,

A

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

United

States

596,600

17,468,448

Agilent

Technologies,

Inc.

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

United

States

542,200

74,303,088

a

Mettler-Toledo

International,

Inc.

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

United

States

28,700

35,292,390

a

Repligen

Corp.

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

United

States

251,500

41,296,300

West

Pharmaceutical

Services,

Inc.

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

United

States

162,100

57,947,508

226,307,734

Machinery

2.1%

IDEX

Corp.

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

United

States

167,100

36,838,866

Xylem,

Inc.

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

United

States

337,300

44,085,110

80,923,976

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

51

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Media

0.8%

New

York

Times

Co.

(The)

,

A

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

United

States

711,900

$

30,633,057

Oil,

Gas

&

Consumable

Fuels

2.5%

Cheniere

Energy,

Inc.

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

United

States

296,700

46,825,194

Hess

Corp.

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

United

States

96,300

15,166,287

Targa

Resources

Corp.

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

United

States

310,900

35,461,254

97,452,735

Passenger

Airlines

0.8%

Delta

Air

Lines,

Inc.

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

United

States

588,000

29,441,160

Personal

Care

Products

0.8%

a

BellRing

Brands,

Inc.

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

United

States

512,100

28,252,557

a,b

Oddity

Tech

Ltd.

,

A

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

Israel

48,600

1,581,444

29,834,001

Pharmaceuticals

0.8%

a

Jazz

Pharmaceuticals

plc

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

United

States

292,500

32,394,375

Professional

Services

4.8%

Paychex,

Inc.

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

United

States

604,900

71,868,169

TransUnion

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

United

States

648,100

47,311,300

Verisk

Analytics,

Inc.

,

A

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

United

States

312,100

68,025,316

187,204,785

Residential

REITs

0.7%

Equity

LifeStyle

Properties,

Inc.

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

United

States

466,700

28,137,343

Semiconductors

&

Semiconductor

Equipment

4.0%

a

Lattice

Semiconductor

Corp.

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

United

States

711,214

48,789,280

Monolithic

Power

Systems,

Inc.

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

United

States

92,900

62,180,757

a

Onto

Innovation,

Inc.

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

United

States

113,800

21,108,762

a

SiTime

Corp.

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

United

States

267,914

23,876,496

155,955,295

Software

11.3%

a

Alkami

Technology,

Inc.

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

United

States

882,600

21,244,182

a

ANSYS,

Inc.

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

United

States

181,300

58,900,744

a

Arteris,

Inc.

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

United

States

1,324,600

8,782,098

a

Crowdstrike

Holdings,

Inc.

,

A

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

United

States

276,900

81,004,326

a

Datadog,

Inc.

,

A

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

United

States

365,300

45,845,150

a

Fair

Isaac

Corp.

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

United

States

46,300

52,473,179

a

HubSpot,

Inc.

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

United

States

101,700

61,515,279

a

Monday.com

Ltd.

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

United

States

146,800

27,793,644

a

Rubrik,

Inc.

,

A

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

United

States

275,500

8,821,510

a

Synopsys,

Inc.

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

United

States

56,400

29,925,276

a

Workday,

Inc.

,

A

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

United

States

175,900

43,048,007

439,353,395

Specialized

REITs

0.6%

SBA

Communications

Corp.

,

A

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

United

States

128,500

23,916,420

Specialty

Retail

4.8%

a

Burlington

Stores,

Inc.

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

United

States

225,800

40,630,452

a

Five

Below,

Inc.

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

United

States

226,100

33,087,474

Ross

Stores,

Inc.

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

United

States

421,200

54,566,460

Tractor

Supply

Co.

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

United

States

216,100

59,012,588

187,296,974

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Textiles,

Apparel

&

Luxury

Goods

0.7%

a

Lululemon

Athletica,

Inc.

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

United

States

72,100

$

25,999,260

Trading

Companies

&

Distributors

1.8%

Fastenal

Co.

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

United

States

987,000

67,056,780

United

Rentals,

Inc.

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

United

States

2,600

1,736,774

68,793,554

Total

Common

Stocks

(Cost

$

2,655,708,094

)

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

3,735,098,896

Convertible

Preferred

Stocks

1.5%

Diversified

Consumer

Services

0.2%

a,c,d

Newsela,

Inc.

,

D

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

United

States

423,782

7,719,448

a

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d

Phononic

Devices,

Inc.

,

F

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

United

States

2,970,061

42,101

a

Software

1.3%

a,c,d,e

Benchling,

Inc.

,

F

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

United

States

347,106

4,869,742

a,c,d,e

Blaize,

Inc.

,

D

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

United

States

1,948,384

11,660,901

a,c,d,e

Blaize,

Inc.

,

D-2

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

United

States

1,467,659

6,776,488

a,c,d

Databricks,

Inc.

,

G

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

United

States

227,829

17,131,212

a,c,d

OneTrust

LLC

,

C

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

United

States

767,526

11,593,968

52,032,311

Total

Convertible

Preferred

Stocks

(Cost

$

83,781,543

)

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

59,793,860

Preferred

Stocks

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d

Phononic

Devices,

Inc.

,

G-2

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

United

States

513,050

40,186

a,c,d

Phononic,

Inc.

,

H

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

United

States

117,763

389,779

429,965

Total

Preferred

Stocks

(Cost

$

460,692

)

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

429,965

Warrants

Warrants

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d

Phononic,

Inc.

,

H

,

10/17/27

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

United

States

47,104

12,474

Software

0.0%

†

a,c,d,e

Blaize,

Inc.

,

9/19/25

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

United

States

146,765

130,391

a,c,d,e

Blaize,

Inc.

,

12/09/25

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

United

States

1

—

a,c,e

Blaize,

Inc.

,

8/23/33

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

United

States

1

—

130,391

Total

Warrants

(Cost

$

44,091

)

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

142,865

Principal

Amount

*

Convertible

Bonds

0.0%

†

Software

0.0%

†

c,e

Blaize,

Inc.

,

10

%

,

1/03/25

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

United

States

1,804,600

1,804,600

Total

Convertible

Bonds

(Cost

$

1,804,600

)

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

1,804,600

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

0.0%

†

Software

0.0%

†

c,d,e

Blaize,

Inc.

,

10

%

,

12/09/24

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

United

States

570,121

$

570,178

Total

Corporate

Bonds

(Cost

$

570,121

)

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

570,178

f

Senior

Floating

Rate

Interests

0.1%

Semiconductors

&

Semiconductor

Equipment

0.1%

c

,d

,g

Phononic,

Inc.

,

Advance

Term

Loan

,

PIK,

12

%

,

6/30/25

.........

United

States

923,808

813,040

Total

Senior

Floating

Rate

Interests

(Cost

$

877,552

)

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

813,040

Total

Long

Term

Investments

(Cost

$

2,743,246,693

)

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

3,798,653,404

a

Short

Term

Investments

3.4%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

2.9%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

112,627,227

112,627,227

Total

Money

Market

Funds

(Cost

$

112,627,227

)

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

112,627,227

j

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.5%

Money

Market

Funds

0.5%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

19,901,900

19,901,900

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

19,901,900

)

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

19,901,900

Total

Short

Term

Investments

(Cost

$

132,529,127

)

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

132,529,127

a

Total

Investments

(Cost

$

2,875,775,820

)

100.9

%

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

$3,931,182,531

Other

Assets,

less

Liabilities

(

0.9

)

%

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

(35,127,452)

Net

Assets

100.0%

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

$3,896,055,079

a

a

a

See

Abbreviations

on

page

82

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2024.

See

Note

1(c).

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

See

Note

7

regarding

restricted

securities.

e

See

Note

8

regarding

holdings

of

5%

voting

securities.

f

See

Note

1(d)

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

securities

on

loan.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$1,820,634,649

$2,068,423,749

$2,702,076,823

Cost

-

Non-controlled

affiliates

(Not

e

3f

and

8)

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

29,827,973

139,463,189

173,698,997

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$23,536,182,

$15,924,442

and

$19,108,628,

respectively)

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

$4,251,188,572

$2,693,978,180

$3,772,841,104

Value

-

Non-controlled

affiliates

(Not

e

3f

and

8)

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

29,827,973

119,562,017

158,341,427

Foreign

currency,

at

value

(cost

$–,

$–

and

$154

,

respectively)

.......

—

—

155

Receivables:

Investment

securities

sold

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

8,379,420

5,731,373

769,849

Capital

shares

sold

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

1,326,696

1,840,133

1,978,435

Dividends

and

interest

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

303,093

19,629

1,259,544

Total

assets

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

4,291,025,754

2,821,131,332

3,935,190,514

Liabilities:

Payables:

Investment

securities

purchased

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

21,330,934

7,646,297

11,744,071

Capital

shares

redeemed

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

3,581,408

2,097,921

3,588,982

Management

fees

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

1,928,005

1,387,260

1,457,957

Distribution

fees

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

815,186

218,062

662,118

Transfer

agent

fees

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

1,016,154

691,538

1,384,568

Trustees'

fees

and

expenses

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

87

125

214

Payable

upon

return

of

securities

loaned

(Note

1

c

)

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

24,049,725

16,408,075

19,901,900

Accrued

expenses

and

other

liabilities

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

347,188

307,337

395,625

Total

liabilities

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

53,068,687

28,756,615

39,135,435

Net

assets,

at

value

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

$4,237,957,067

$2,792,374,717

$3,896,055,079

Net

assets

consist

of:

Paid-in

capital

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

$1,627,059,326

$2,156,731,599

$3,044,111,963

Total

distributable

earnings

(losses)

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

2,610,897,741

635,643,118

851,943,116

Net

assets,

at

value

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

$4,237,957,067

$2,792,374,717

$3,896,055,079

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

April

30,

2024

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

A:

Net

assets,

at

value

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

$3,453,647,074

$881,445,462

$2,822,865,742

Shares

outstanding

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

75,090,003

42,108,202

80,159,524

Net

asset

value

per

share

a,b

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

$45.99

$20.93

$35.22

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

b

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

$48.67

$22.15

$37.27

Class

C:

Net

assets,

at

value

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

$87,686,460

$22,350,774

$60,280,657

Shares

outstanding

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

2,741,407

1,560,311

3,814,481

Net

asset

value

and

maximum

offering

price

per

share

a,b

..........

$31.99

$14.32

$15.80

Class

R:

Net

assets,

at

value

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

$28,932,596

$39,962,736

$37,275,921

Shares

outstanding

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

691,398

2,120,411

1,266,197

Net

asset

value

and

maximum

offering

price

per

share

b

...........

$41.85

$18.85

$29.44

Class

R6:

Net

assets,

at

value

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

$375,777,360

$1,458,516,258

$539,962,153

Shares

outstanding

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

6,982,209

59,210,530

12,489,337

Net

asset

value

and

maximum

offering

price

per

share

b

...........

$53.82

$24.63

$43.23

Advisor

Class:

Net

assets,

at

value

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

$291,913,577

$390,099,487

$435,670,606

Shares

outstanding

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

5,555,687

16,311,924

10,424,248

Net

asset

value

and

maximum

offering

price

per

share

b

...........

$52.54

$23.91

$41.79

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

b

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$41,291,

$–

and

$–,

respectively)

Unaffiliated

issuers

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

$16,695,297

$12,020,775

$22,903,176

Non-controlled

affiliates

(Note

3f

and

8)

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

1,376,419

2,254,924

7,615,721

Interest:

Unaffiliated

issuers

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

—

—

259,804

Non-controlled

affiliates

(Note

3f

and

8)

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

—

—

267,668

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

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

(422,737)

84,638

21,292

Non-controlled

affiliates

(Note

3

f

)

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

830,335

1,170,725

734,975

Total

investment

income

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

18,479,314

15,531,062

31,802,636

Expenses:

Management

fees

(Note

3

a

)

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

21,960,126

16,210,845

17,410,404

Distribution

fees:

(Note

3c

)

    Class

A

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

7,948,760

2,028,423

6,849,485

    Class

C

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

1,030,545

212,769

707,744

    Class

R

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

131,828

200,311

182,835

Transfer

agent

fees:

(Note

3e

)

    Class

A

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

3,202,699

1,522,446

3,865,467

    Class

C

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

104,851

39,959

100,450

    Class

R

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

26,565

75,329

51,614

    Class

R6

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

84,619

387,239

186,405

    Advisor

Class

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

315,510

694,568

658,324

Custodian

fees

(Note

4)

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

—

33,376

13,482

Reports

to

shareholders

fees

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

268,197

211,029

372,967

Registration

and

filing

fees

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

123,933

157,190

83,483

Professional

fees

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

131,294

117,185

105,056

Trustees'

fees

and

expenses

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

48,446

31,501

45,872

Interest

expense

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

4,136

214

287

Other

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

111,313

91,818

124,349

Total

expenses

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

35,492,822

22,014,202

30,758,224

Expense

reductions

(Note

4)

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

(3,672)

(884)

(1,007)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

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

(146,776)

(221,842)

(615,265)

Net

expenses

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

35,342,374

21,791,476

30,141,952

Net

investment

income

(loss)

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

(16,863,060)

(6,260,414)

1,660,684

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

708,606,266

70,857,818

252,553,489

Non-controlled

affiliates

(Note

3f

and

8)

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

—

2,998,796

—

Foreign

currency

transactions

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

(155)

—

2,334

Net

realized

gain

(loss)

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

708,606,111

73,856,614

252,555,823

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

444,926,647

450,147,029

363,171,903

Non-controlled

affiliates

(Note

3f

and

8)

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

—

250,047

14,022,220

Net

change

in

unrealized

appreciation

(depreciation)

..........

444,926,647

450,397,076

377,194,123

Net

realized

and

unrealized

gain

(loss)

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

1,153,532,758

524,253,690

629,749,946

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$1,136,669,698

$517,993,276

$631,410,630

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

57

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(16,863,060)

$(9,874,135)

$(6,260,414)

$(7,326,644)

Net

realized

gain

(loss)

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

708,606,111

159,660,518

73,856,614

(95,635,906)

Net

change

in

unrealized

appreciation

(depreciation)

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

444,926,647

(390,972,122)

450,397,076

19,949,802

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

1,136,669,698

(241,185,739)

517,993,276

(83,012,748)

Distributions

to

shareholders:

Class

A

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

(394,865,139)

(117,604,433)

—

(4,398,226)

Class

C

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

(14,781,504)

(7,051,867)

—

(182,310)

Class

R

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

(3,514,792)

(1,037,867)

—

(269,006)

Class

R6

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

(40,009,371)

(16,500,576)

—

(6,963,574)

Advisor

Class

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

(29,305,757)

(12,978,865)

—

(1,824,783)

Total

distributions

to

shareholders

.....

(482,476,563)

(155,173,608)

—

(13,637,899)

Capital

share

transactions:

(Note

2

)

Class

A

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

180,676,777

(156,935,909)

(39,879,038)

(65,065,140)

Class

C

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

(45,526,143)

(22,566,167)

(2,202,373)

(10,464,989)

Class

R

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

2,433,373

(1,799,745)

(7,631,504)

(8,407,569)

Class

R6

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

(148,900,791)

23,823,563

(161,659,325)

(136,904,139)

Advisor

Class

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

(86,022,379)

(264,796,290)

(25,481,258)

(77,248,269)

Total

capital

share

transactions

.......

(97,339,163)

(422,274,548)

(236,853,498)

(298,090,106)

Net

increase

(decrease)

in

net

assets

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

556,853,972

(818,633,895)

281,139,778

(394,740,753)

Net

assets:

Beginning

of

year

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

3,681,103,095

4,499,736,990

2,511,234,939

2,905,975,692

End

of

year

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

$4,237,957,067

$3,681,103,095

$2,792,374,717

$2,511,234,939

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

Franklin

Small-Mid

Cap

Growth

Fund

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

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

$1,660,684

$(3,896,955)

Net

realized

gain

(loss)

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

252,555,823

(241,439,881)

Net

change

in

unrealized

appreciation

(depreciation)

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

377,194,123

56,299,755

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

631,410,630

(189,037,081)

Distributions

to

shareholders:

Class

A

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

—

(158,598,985)

Class

C

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

—

(10,930,574)

Class

R

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

—

(2,417,236)

Class

R6

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

—

(22,679,273)

Advisor

Class

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

—

(24,693,770)

Total

distributions

to

shareholders

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

—

(219,319,838)

Capital

share

transactions:

(Note

2

)

Class

A

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

(213,650,350)

(147,703,497)

Class

C

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

(33,720,039)

(10,637,467)

Class

R

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

(3,141,034)

(158,411)

Class

R6

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

4,476,222

(44,934,203)

Advisor

Class

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

(105,370,472)

(14,301,398)

Total

capital

share

transactions

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

(351,405,673)

(217,734,976)

Net

increase

(decrease)

in

net

assets

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

280,004,957

(626,091,895)

Net

assets:

Beginning

of

year

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

3,616,050,122

4,242,142,017

End

of

year

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

$3,896,055,079

$3,616,050,122

Franklin

Strategic

Series

59

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

ten separate

funds,

three

of

which

are

included

in

this

report

(Funds).

The

Funds follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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.

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,

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

60

franklintempleton.com

Annual

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

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.

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

61

franklintempleton.com

Annual

Report

d.

Senior

Floating

Rate

Interests

Certain

or

all

Funds

invest

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

Secured

Overnight

Financing

Rate

(SOFR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the

Funds

invest

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

e.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

April

30,

2024, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income. Certain

or

all

Funds

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Funds.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date. Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

62

franklintempleton.com

Annual

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.

h.

Guarantees

and

Indemnifications

Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

by

the Trust against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the Trust,

on

behalf

of

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

April

30,

2024,

there

were

an

unlimited

number

of

shares

authorized

(without

par value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2024

Shares

sold

a

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

8,574,980

$371,585,582

6,835,765

$132,067,556

Shares

issued

in

reinvestment

of

distributions

..........

9,108,435

385,104,617

—

—

Shares

redeemed

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

(13,213,422)

(576,013,422)

(9,161,615)

(171,946,594)

Net

increase

(decrease)

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

4,469,993

$180,676,777

(2,325,850)

$(39,879,038)

Year

ended

April

30,

2023

Shares

sold

a

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

4,502,909

$173,052,149

6,638,254

$110,403,207

Shares

issued

in

reinvestment

of

distributions

..........

3,214,869

114,802,255

267,974

4,284,631

Shares

redeemed

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

(11,643,392)

(444,790,313)

(10,879,344)

(179,752,978)

Net

increase

(decrease)

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

(3,925,614)

$(156,935,909)

(3,973,116)

$(65,065,140)

Class

C

Class

C

Shares:

Year

ended

April

30,

2024

Shares

sold

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

719,169

$22,451,781

457,804

$5,960,896

Shares

issued

in

reinvestment

of

distributions

..........

495,660

14,612,070

—

—

Shares

redeemed

a

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

(2,598,622)

(82,589,994)

(632,873)

(8,163,269)

Net

increase

(decrease)

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

(1,383,793)

$(45,526,143)

(175,069)

$(2,202,373)

Year

ended

April

30,

2023

Shares

sold

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

619,760

$17,604,728

334,406

$3,847,147

Shares

issued

in

reinvestment

of

distributions

..........

266,009

7,022,634

16,407

181,129

Shares

redeemed

a

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

(1,642,280)

(47,193,529)

(1,263,004)

(14,493,265)

Net

increase

(decrease)

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

(756,511)

$(22,566,167)

(912,191)

$(10,464,989)

Class

R

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Accounting

Estimates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

63

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Year

ended

April

30,

2024

Shares

sold

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

139,079

$5,560,362

524,963

$9,001,348

Shares

issued

in

reinvestment

of

distributions

..........

91,293

3,514,792

—

—

Shares

redeemed

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

(166,218)

(6,641,781)

(968,141)

(16,632,852)

Net

increase

(decrease)

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

64,154

$2,433,373

(443,178)

$(7,631,504)

Year

ended

April

30,

2023

Shares

sold

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

79,609

$2,804,309

449,685

$6,762,540

Shares

issued

in

reinvestment

of

distributions

..........

31,444

1,037,342

18,629

269,006

Shares

redeemed

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

(158,057)

(5,641,396)

(1,031,229)

(15,439,115)

Net

increase

(decrease)

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

(47,004)

$(1,799,745)

(562,915)

$(8,407,569)

Class

R6

Class

R6

Shares:

Year

ended

April

30,

2024

Shares

sold

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

548,608

$27,946,401

12,060,415

$272,225,636

Shares

issued

in

reinvestment

of

distributions

..........

809,267

39,985,905

—

—

Shares

redeemed

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

(4,383,961)

(216,833,097)

(19,610,255)

(433,884,961)

Net

increase

(decrease)

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

(3,026,086)

$(148,900,791)

(7,549,840)

$(161,659,325)

Year

ended

April

30,

2023

Shares

sold

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

1,651,644

$70,823,865

12,663,755

$246,093,068

Shares

issued

in

reinvestment

of

distributions

..........

295,080

12,059,884

331,570

6,203,670

Shares

redeemed

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

(1,359,181)

(59,060,186)

(20,016,884)

(389,200,877)

Net

increase

(decrease)

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

587,543

$23,823,563

(7,021,559)

$(136,904,139)

Advisor

Class

Advisor

Class

Shares:

Year

ended

April

30,

2024

Shares

sold

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

879,399

$44,142,934

3,950,917

$86,229,902

Shares

issued

in

reinvestment

of

distributions

..........

586,399

28,293,747

—

—

Shares

redeemed

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

(3,309,049)

(158,459,060)

(5,094,739)

(111,711,160)

Net

increase

(decrease)

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

(1,843,251)

$(86,022,379)

(1,143,822)

$(25,481,258)

Year

ended

April

30,

2023

Shares

sold

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

4,060,600

$171,533,914

4,622,859

$87,576,461

Shares

issued

in

reinvestment

of

distributions

..........

315,501

12,635,806

88,186

1,604,993

Shares

redeemed

in-kind

(Note

3

h

)

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

(5,364,050)

(242,240,519)

—

—

Shares

redeemed

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

(4,855,182)

(206,725,491)

(8,708,001)

(166,429,723)

Net

increase

(decrease)

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

(5,843,131)

$(264,796,290)

(3,996,956)

$(77,248,269)

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

64

franklintempleton.com

Annual

Report

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2024

Shares

sold

a

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

9,519,937

$306,620,601

Shares

redeemed

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

(16,016,549)

(520,270,951)

Net

increase

(decrease)

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

(6,496,612)

$(213,650,350)

Year

ended

April

30,

2023

Shares

sold

a

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

6,633,600

$198,652,679

Shares

issued

in

reinvestment

of

distributions

..........

5,494,365

154,666,446

Shares

redeemed

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

(16,780,836)

(501,022,622)

Net

increase

(decrease)

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

(4,652,871)

$(147,703,497)

Class

C

Class

C

Shares:

Year

ended

April

30,

2024

Shares

sold

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

983,081

$14,050,780

Shares

redeemed

a

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

(3,337,470)

(47,770,819)

Net

increase

(decrease)

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

(2,354,389)

$(33,720,039)

Year

ended

April

30,

2023

Shares

sold

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

860,980

$12,250,320

Shares

issued

in

reinvestment

of

distributions

..........

851,635

10,866,855

Shares

redeemed

a

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

(2,370,166)

(33,754,642)

Net

increase

(decrease)

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

(657,551)

$(10,637,467)

Class

R

Class

R

Shares:

Year

ended

April

30,

2024

Shares

sold

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

245,626

$6,647,839

Shares

redeemed

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

(357,889)

(9,788,873)

Net

increase

(decrease)

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

(112,263)

$(3,141,034)

Year

ended

April

30,

2023

Shares

sold

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

229,482

$5,787,643

Shares

issued

in

reinvestment

of

distributions

..........

101,961

2,408,346

Shares

redeemed

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

(331,668)

(8,354,400)

Net

increase

(decrease)

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

(225)

$(158,411)

Class

R6

Class

R6

Shares:

Year

ended

April

30,

2024

Shares

sold

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

3,418,440

$139,416,104

Shares

redeemed

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

(3,333,237)

(134,939,882)

Net

increase

(decrease)

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

85,203

$4,476,222

Year

ended

April

30,

2023

Shares

sold

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

2,952,937

$107,377,100

Shares

issued

in

reinvestment

of

distributions

..........

581,100

19,984,012

Shares

redeemed

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

(4,697,122)

(172,295,315)

Net

increase

(decrease)

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

(1,163,085)

$(44,934,203)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

65

franklintempleton.com

Annual

Report

3

.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the Trust are

also

officers

and/or

directors

of

the

following

subsidiaries:

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-Mid

Cap

Growth

Fund

Shares

Amount

Advisor

Class

Shares:

Year

ended

April

30,

2024

Shares

sold

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

2,112,661

$81,831,488

Shares

redeemed

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

(5,005,566)

(187,201,960)

Net

increase

(decrease)

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

(2,892,905)

$(105,370,472)

Year

ended

April

30,

2023

Shares

sold

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

2,320,439

$83,749,485

Shares

issued

in

reinvestment

of

distributions

..........

724,960

24,141,123

Shares

redeemed

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

(3,498,606)

(122,192,006)

Net

increase

(decrease)

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

(453,207)

$(14,301,398)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.700%

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

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

66

franklintempleton.com

Annual

Report

Franklin

Small

Cap

Growth

Fund pays

an

investment

management fee,

calculated

daily and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Small-Mid

Cap

Growth

Fund pays

an

investment

management fee,

calculated

daily and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

April

30,

2024,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds'

Class

C

and

R

compensation

Annualized

Fee

Rate

Net

Assets

0.750%

Up

to

and

including

$500

million

0.650%

Over

$500

million,

up

to

and

including

$1

billion

0.600%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.550%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.525%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.500%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.490%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.480%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.470%

In

excess

of

$21.5

billion

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Gross

effective

investment

management

fee

rate

........

0.543%

0.617%

0.457%

3

.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

67

franklintempleton.com

Annual

Report

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

For

Franklin

Growth

Opportunities

Fund

and

Franklin

Small

Cap

Growth

Fund,

the

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations. Effective

October

1,

2023,

the

fees

are based

on

a

fixed

margin

earned

by

Investor

Services

and

are allocated

to

the Funds

based

upon

relative

assets

and

relative

transactions.

Prior

to

October

1,

2023,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.016%

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

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated

specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

April

30,

2024,

the Funds

paid

transfer

agent

fees

as

noted

in

the

Statements of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

A

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

0.35%

0.35%

0.25%

Class

C

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

1.00%

1.00%

1.00%

Class

R

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

0.50%

0.50%

0.50%

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$245,664

$104,958

$290,258

CDSC

retained

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

$10,260

$7,663

$11,809

3

.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

68

franklintempleton.com

Annual

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

year

ended

April

30,

2024,

investments

in

affiliated

management

investment

companies

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Transfer

agent

fees

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

$1,369,720

$1,061,514

$1,526,861

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$84,915,861

$830,853,419

$(909,991,032)

$—

$—

$5,778,248

5,778,248

$1,376,419

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$24,476,348

$313,844,347

$(314,270,970)

$—

$—

$24,049,725

24,049,725

$830,335

Total

Affiliated

Securities

...

$109,392,209

$1,144,697,766

$(1,224,262,002)

$—

$—

$29,827,973

$2,206,754

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$32,742,362

$544,532,020

$(486,719,259)

$—

$—

$90,555,123

90,555,123

$2,254,924

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$12,159,690

$401,072,715

$(396,824,330)

$—

$—

$16,408,075

16,408,075

$1,170,725

Total

Affiliated

Securities

...

$44,902,052

$945,604,735

$(883,543,589)

$—

$—

$106,963,198

$3,425,649

3

.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

69

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Transfer

agent

fees

on

Class

R6

shares

of

the

Funds have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

August

31,

2024.

h.

Other

Affiliated

Transactions

During

the year

ended

April

30,

2023, 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.

i.

Interfund

Transactions

Franklin

Growth

Opportunities

Fund engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

year

ended

April

30,

2024,

these

purchase

and

sale

transactions

aggregated

$0

and

$1,743,976,

respectively,

with

net

realized

losses

of

$224,024.

4.

Expense

Offset

Arrangement

The Funds have

previously

entered

into

an

arrangement

with their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

year

ended

April

30,

2024,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations. Effective

July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$180,826,526

$515,246,061

$(583,445,360)

$—

$—

$112,627,227

112,627,227

$7,615,721

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$—

$276,151,660

$(256,249,760)

$—

$—

$19,901,900

19,901,900

$734,975

Total

Affiliated

Securities

...

$180,826,526

$791,397,721

$(839,695,120)

$—

$—

$132,529,127

$8,350,696

3

.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

70

franklintempleton.com

Annual

Report

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2024,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

April

30,

2024,

the

utilized

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At 

April

30,

2024

,

the

deferred

losses

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2024

and

2023

,

was

as

follows:

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$

—

$

186,402,631

Long

term

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

21,532,759

—

Total

capital

loss

carryforwards

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

$21,532,759

$186,402,631

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Capital

loss

utilized

carryforwards

....

$74,244,303

$255,502,753

Franklin

Small

Cap

Growth

Fund

Late-year

ordinary

loss

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

$2,482,673

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

2024

2023

2024

2023

Distributions

paid

from:

Ordinary

income

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

$1,497,881

$—

$—

$—

Long

term

capital

gain

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

480,978,682

155,173,608

—

13,637,899

$482,476,563

$155,173,608

$—

$13,637,899

Franklin

Small-Mid

Cap

Growth

Fund

2024

2023

Distributions

paid

from:

Long

term

capital

gain

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

$—

$219,319,838

Franklin

Strategic

Series

Notes

to

Financial

Statements

71

franklintempleton.com

Annual

Report

At

April

30,

2024,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales

and

net

operating

losses.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

April

30,

2024,

were

as

follows:

At

April

30,

2024,

in

connection

with

securities

lending

transactions,

certain

or

all

Funds

loaned

investments

and

received

cash

collateral

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

a

a

a

a

Cost

of

investments

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

$1,851,350,908

$2,214,866,110

$2,901,288,347

Unrealized

appreciation

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

$2,485,535,274

$958,825,524

$1,186,156,110

Unrealized

depreciation

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

(55,869,637)

(360,151,437)

(156,261,926)

Net

unrealized

appreciation

(depreciation)

.......

$2,429,665,637

$598,674,087

$1,029,894,184

Distributable

earnings:

Undistributed

ordinary

income

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

$16,024,556

$—

$621,425

Undistributed

long

term

capital

gains

...........

165,207,547

—

—

Total

distributable

earnings

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

$181,232,103

$—

$621,425

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Purchases

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

$1,101,174,971

$414,037,514

$1,355,105,309

Sales

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

$1,593,749,558

$706,990,837

$1,575,745,341

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Securities

lending

transactions

a

:

Equity

investments

b

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

$24,049,725

$16,408,075

$19,901,900

a

The

agreements

can

be

terminated

at

any

time.

b

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statements

of

Assets

and

Liabilities.

5.

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

72

franklintempleton.com

Annual

Report

7.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

April

30,

2024,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

3,094

Canva,

Inc.,

A

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

3/18/24

$

3,300,249

$

3,300,249

11,829

Canva,

Inc.,

B

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

12/22/21

20,158,531

12,617,534

4,619

Celonis

SE

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

6/16/21

1,708,060

1,325,257

25,571

Celonis

SE,

D

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

6/16/21

-

10/04/22

9,427,681

7,336,684

6,309,366

ClearMotion

,

Inc.

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

11/06/17

-12/21/18

15,500,000

651,101

417,667

ClearMotion

,

Inc.,

A-3

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

3/23/23

—

57,322

2,606,463

ClearMotion

,

Inc.,

A-4

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

12/21/21

251,500

331,738

338,280

Databricks,

Inc.,

G

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

2/01/21

20,000,005

25,436,387

1,029,939

Fanatics

Holdings,

Inc.

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

8/13/20

-

3/22/21

19,730,229

75,342,166

810,440

Lacework,

Inc.,

D

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

11/12/21

20,330,471

11,960,504

517,056

OneTrust

LLC,

C

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

4/01/21

10,139,623

7,810,459

556,026

Optoro

,

Inc.,

E

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

7/24/18

-

12/01/21

10,942,592

9,017,603

142,857

Space

Exploration

Technologies

Corp.,

A

..........

5/25/22

9,999,990

13,857,129

1,753,060

Talkdesk

,

Inc.,

C

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

7/15/20

11,517,955

8,571,187

805,800

Tanium,

Inc.,

G

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

9/14/15

4,000,233

6,576,739

504,854

Tempus

Labs,

Inc.,

F

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

5/29/19

12,499,983

16,292,837

126,131

Tempus

Labs,

Inc.,

G

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

2/06/20

4,837,426

4,070,547

Total

Restricted

Securities

(Value

is

4.

8

%

of

Net

Assets)

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

$174,344,528

$204,555,443

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Small

Cap

Growth

Fund

3,436,485

1661,

Inc.,

F

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

5/28/21

$

19,999,999

$

7,235,237

382,306

Benchling

,

Inc.,

F

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

10/20/21

12,499,992

5,363,582

1,388,889

Checkr

,

Inc.,

E

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

8/24/21

25,000,002

21,236,766

410,500

Chinook

Therapeutics,

Inc.,

CVR,

6/30/30

.........

8/14/23

160,095

395,806

3,698,772

ClearMotion

,

Inc.

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

12/21/18

10,000,000

381,698

1,037,942

ClearMotion

,

Inc.,

A-3

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

3/23/23

—

142,450

6,477,294

ClearMotion

,

Inc.,

A-4

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

12/21/21

625,000

824,398

98,754

Flock

Group,

Inc.,

G

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

3/08/24

9,999,899

9,999,899

709,046

Newsela,

Inc.,

D

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

1/21/21

15,000,010

12,915,705

625,361

OneTrust

LLC,

A

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

3/10/23

6,878,971

9,446,475

56,457

OneTrust

LLC,

A-1

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

3/10/23

621,027

852,819

554,878

Optoro

,

Inc.,

E

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

7/24/18

-

12/01/21

10,919,999

8,998,985

Franklin

Strategic

Series

Notes

to

Financial

Statements

73

franklintempleton.com

Annual

Report

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2024,

investments

in

“affiliated

companies”

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Small

Cap

Growth

Fund

(continued)

148,478

ServiceTitan

,

Inc.

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

2/28/24

$

10,096,504

$

9,999,993

1,542,673

Smule

,

Inc.,

144A,

G

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

5/31/16

11,099,995

993,216

352,675

Smule

,

Inc.,

144A,

H

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

4/27/17

2,999,995

268,275

162,712

Smule

,

Inc.,

J

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

8/05/22

-

11/28/22

764,393

2,325,203

361,111

Tula

eTechnology

,

Inc.

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

11/01/18

—

—

3,611,111

Tula

eTechnology

,

Inc.,

E

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

9/08/17

6,500,000

6,478,900

Total

Restricted

Securities

(Value

is

3.5%

of

Net

Assets)

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

$143,165,881

$97,859,407

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

$

4,869,742

570,121

a

Blaize

,

Inc.,

10%,

12/09/24

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

1/19/23

570,121

570,178

1

a

Blaize

,

Inc.,

12/09/25

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

1/19/23

57

—

146,765

a

Blaize

,

Inc.,

9/19/25

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

9/20/22

-

9/22/22

5

130,391

1,948,384

a

Blaize

,

Inc.,

D

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

3/02/21

-

11/09/21

20,346,009

11,660,901

1,467,659

a

Blaize

,

Inc.,

D-2

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

4/01/22

-

9/20/22

7,099,996

6,776,488

227,829

Databricks,

Inc.,

G

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

2/01/21

13,469,850

17,131,212

793,714

Fanatics

Holdings,

Inc.

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

8/13/20

-

3/22/21

14,052,061

58,061,819

423,782

Newsela,

Inc.,

D

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

1/21/21

8,965,193

7,719,448

767,526

OneTrust

LLC,

C

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

4/01/21

15,051,415

11,593,968

2,970,061

Phononic

Devices,

Inc.,

F

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

6/06/19

7,499,998

42,101

513,050

Phononic

Devices,

Inc.,

G-2

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

1/17/20

-

11/03/20

47

40,186

923,808

Phononic

,

Inc.,

Advance

Term

Loan,

PIK,

12%,

6/30/25

10/17/22

-

4/01/24

877,552

813,040

117,763

Phononic

,

Inc.,

H

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

10/17/22

460,645

389,779

47,104

Phononic

,

Inc.,

H,

10/17/27

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

10/17/22

44,029

12,474

Total

Restricted

Securities

(Value

is

3.1%

of

Net

Assets)

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

$99,786,060

$119,811,727

*

In

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$1,804,600

as

of

April

30,

2024.

7.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

74

franklintempleton.com

Annual

Report

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants/

Principal

Amount*

Held

at

End

of

Year

Investment

Income

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

Optoro

,

Inc.,

E

.......

$

8,167,495

$

—

$

—

$

—

$

—

a

$

—

a

—

a

$

—

Talkdesk

,

Inc.,

C

.....

9,955,707

—

—

—

—

a

—

a

—

a

—

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

..........

$18,123,202

$—

$—

$—

$—

$—

$—

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

1661,

Inc.,

F

........

6,545,566

—

—

—

689,671

7,235,237

3,436,485

—

Benchling

,

Inc.,

F

.....

5,803,206

—

—

—

(439,624)

5,363,582

382,306

—

EyePoint

Pharmaceuticals,

Inc.

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

12,290,588

977,196

(18,005,458)

5,965,328

—

a

—

a

—

a

—

Optoro

,

Inc.,

E

.......

8,150,632

—

—

—

—

a

—

a

—

a

—

Paymentus

Holdings,

Inc.,

A

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

18,067,319

—

(3,588,726)

(2,966,532)

—

a

—

a

—

a

—

Total

Affiliated

Securities

(Value

is

0.5%

of

Net

Assets)

..........

$50,857,311

$977,196

$(21,594,184)

$2,998,796

$250,047

$12,598,819

$—

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Benchling

,

Inc.,

F

.....

5,268,888

—

—

—

(399,146)

4,869,742

347,106

—

Blaize

,

Inc.,

9/19/25

...

—

—

—

—

130,391

130,391

146,765

—

Blaize

,

Inc.,

12/09/25

..

—

—

—

—

—

—

1

—

Blaize

,

Inc.,

8/23/33

...

—

—

—

—

—

—

1

—

Blaize

,

Inc.,

D

.......

3,051,900

—

—

—

8,609,001

11,660,901

1,948,384

—

Blaize

,

Inc.,

D,

2/28/24

.

—

—

—

b

—

—

—

c

—

—

Blaize

,

Inc.,

D-2

......

1,094,514

—

—

—

5,681,974

6,776,488

1,467,659

—

OneTrust

LLC,

C

.....

7,746,763

—

—

—

—

a

—

a

—

a

—

Phononic

Devices,

Inc.,

F

2,020,235

—

—

—

—

a

—

a

—

a

—

Phononic

Devices,

Inc.,

G-2

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

771,484

—

—

—

—

a

—

a

—

a

—

Phononic

,

Inc.,

H

.....

563,212

—

—

—

—

a

—

a

—

a

—

Phononic

,

Inc.,

H,

10/17/27

.........

60,114

—

—

—

—

a

—

a

—

a

—

Interest

Blaize

,

Inc.,

10%,

12/09/24

570,178

—

—

—

—

570,178

570,121

57,012

Blaize

,

Inc.,

10%,

1/03/25

—

1,804,600

—

—

—

1,804,600

1,804,600

124,317

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

75

franklintempleton.com

Annual

Report

9.

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

January

31,

2025.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

April

30,

2024,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants/

Principal

Amount*

Held

at

End

of

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Non-Controlled

Affiliates

Phononic

,

Inc.,

Advance

Term

Loan,

PIK,

12%,

6/30/25

..........

$

625,802

$

155,370

b

$

—

$

—

$

—

a

$

—

a

—

a

$

86,339

Total

Affiliated

Securities

(Value

is

0.7%

of

Net

Assets)

..........

$21,773,090

$1,959,970

$—

$—

$14,022,220

$25,812,300

$267,668

*

In

U.S.

dollars

unless

otherwise

indicated.

a

As

of

April

30,

2024,

no

longer

an

affiliate.

b

May

include

accretion,

amortization,

and/or

other

cost

basis

adjustments.

c

As

of

April

30,

2024,

no

longer

held

by

the

fund.

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

76

franklintempleton.com

Annual

Report

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

April

30,

2024,

in

valuing

the

Funds'

assets 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

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

$

68,436,848

$

—

$

13,857,129

$

82,293,977

Automobiles

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

13,055,768

—

—

13,055,768

Beverages

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

54,211,051

—

—

54,211,051

Biotechnology

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

17,539,095

—

—

17,539,095

Broadline

Retail

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

290,131,975

—

—

290,131,975

Building

Products

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

53,641,250

—

—

53,641,250

Capital

Markets

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

145,891,571

—

—

145,891,571

Chemicals

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

69,052,572

—

—

69,052,572

Commercial

Services

&

Supplies

...........

57,267,499

—

8,661,941

65,929,440

Construction

Materials

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

33,624,434

—

—

33,624,434

Electrical

Equipment

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

11,454,814

—

—

11,454,814

Entertainment

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

62,799,633

—

—

62,799,633

Financial

Services

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

146,806,493

—

—

146,806,493

Food

Products

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

52,228,740

—

—

52,228,740

Ground

Transportation

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

94,356,135

—

—

94,356,135

Health

Care

Equipment

&

Supplies

.........

126,339,256

—

—

126,339,256

Health

Care

Providers

&

Services

..........

128,186,215

—

—

128,186,215

Hotels,

Restaurants

&

Leisure

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

188,979,202

—

—

188,979,202

Interactive

Media

&

Services

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

352,861,894

—

—

352,861,894

IT

Services

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

87,766,391

—

15,917,783

103,684,174

Leisure

Products

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

—

—

75,342,166

75,342,166

Life

Sciences

Tools

&

Services

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

147,230,766

—

—

147,230,766

Personal

Care

Products

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

61,801,513

—

—

61,801,513

Pharmaceuticals

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

137,814,725

—

—

137,814,725

Professional

Services

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

80,906,436

—

—

80,906,436

Real

Estate

Management

&

Development

....

37,494,075

—

—

37,494,075

Semiconductors

&

Semiconductor

Equipment

.

570,138,674

—

—

570,138,674

Software

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

822,247,090

—

651,101

822,898,191

Specialty

Retail

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

23,290,519

—

—

23,290,519

Technology

Hardware,

Storage

&

Peripherals

.

111,078,495

—

—

111,078,495

Convertible

Preferred

Stocks

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

—

—

45,207,350

45,207,350

Preferred

Stocks

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

—

—

44,917,973

44,917,973

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

29,827,973

—

—

29,827,973

Total

Investments

in

Securities

...........

$4,076,461,102

$—

$204,555,443

$4,281,016,545

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

175,223,932

—

—

175,223,932

Banks

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

36,041,932

—

—

36,041,932

Biotechnology

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

225,473,318

—

—

225,473,318

Capital

Markets

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

75,886,455

—

—

75,886,455

Communications

Equipment

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

17,137,470

—

—

17,137,470

Construction

&

Engineering

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

104,324,591

—

—

104,324,591

Consumer

Staples

Distribution

&

Retail

......

13,738,912

—

—

13,738,912

Diversified

Consumer

Services

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

9,908,822

—

—

9,908,822

Electronic

Equipment,

Instruments

&

Components

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

49,353,261

—

—

49,353,261

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

77

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

Small

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Energy

Equipment

&

Services

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

$

48,732,200

$

—

$

—

$

48,732,200

Financial

Services

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

114,008,952

—

—

114,008,952

Food

Products

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

78,596,176

—

—

78,596,176

Health

Care

Equipment

&

Supplies

.........

164,601,248

—

—

164,601,248

Health

Care

Providers

&

Services

..........

104,259,057

—

—

104,259,057

Health

Care

Technology

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

48,815,402

—

—

48,815,402

Hotel

&

Resort

REITs

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

17,069,844

—

—

17,069,844

Hotels,

Restaurants

&

Leisure

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

191,148,954

—

—

191,148,954

Household

Durables

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

63,777,013

—

—

63,777,013

Industrial

REITs

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

25,189,404

—

—

25,189,404

Interactive

Media

&

Services

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

32,620,848

—

—

32,620,848

IT

Services

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

9,954,808

—

—

9,954,808

Life

Sciences

Tools

&

Services

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

5,347,557

—

—

5,347,557

Machinery

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

56,316,806

—

—

56,316,806

Media

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

36,104,580

—

—

36,104,580

Oil,

Gas

&

Consumable

Fuels

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

44,793,700

—

—

44,793,700

Passenger

Airlines

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

54,357,215

—

—

54,357,215

Personal

Care

Products

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

73,271,211

—

—

73,271,211

Pharmaceuticals

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

63,269,940

—

—

63,269,940

Professional

Services

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

60,111,105

—

—

60,111,105

Semiconductors

&

Semiconductor

Equipment

.

170,775,169

—

—

170,775,169

Software

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

287,671,969

—

10,381,691

298,053,660

Specialty

Retail

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

81,415,032

—

—

81,415,032

Textiles,

Apparel

&

Luxury

Goods

..........

24,983,679

—

—

24,983,679

Trading

Companies

&

Distributors

..........

44,437,030

—

—

44,437,030

Convertible

Preferred

Stocks

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

—

—

69,375,686

69,375,686

Preferred

Stocks

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

—

—

17,706,224

a

17,706,224

Rights

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

—

—

395,806

395,806

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

106,963,198

—

—

106,963,198

Total

Investments

in

Securities

...........

$2,715,680,790

$—

$97,859,407

$2,813,540,197

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

130,176,517

—

—

130,176,517

Automobile

Components

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

18,857,975

—

—

18,857,975

Beverages

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

29,755,225

—

—

29,755,225

Biotechnology

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

81,735,448

—

—

81,735,448

Building

Products

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

99,041,814

—

—

99,041,814

Capital

Markets

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

306,324,806

—

—

306,324,806

Commercial

Services

&

Supplies

...........

40,467,870

—

—

40,467,870

Containers

&

Packaging

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

42,000,224

—

—

42,000,224

Electrical

Equipment

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

67,044,078

—

—

67,044,078

Electronic

Equipment,

Instruments

&

Components

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

58,392,295

—

—

58,392,295

Energy

Equipment

&

Services

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

28,855,647

—

—

28,855,647

Entertainment

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

48,702,976

—

—

48,702,976

Financial

Services

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

55,414,300

—

—

55,414,300

Food

Products

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

72,353,795

—

—

72,353,795

Ground

Transportation

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

53,059,320

—

—

53,059,320

Health

Care

Equipment

&

Supplies

.........

193,760,946

—

—

193,760,946

Health

Care

Providers

&

Services

..........

26,127,101

—

—

26,127,101

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

78

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Health

Care

Technology

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

$

66,502,301

$

—

$

—

$

66,502,301

Hotels,

Restaurants

&

Leisure

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

235,040,709

—

—

235,040,709

Household

Durables

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

25,292,090

—

—

25,292,090

Industrial

REITs

.......................

29,305,520

—

—

29,305,520

Insurance

............................

44,379,879

—

—

44,379,879

Interactive

Media

&

Services

..............

83,773,312

—

—

83,773,312

IT

Services

...........................

197,028,865

—

—

197,028,865

Leisure

Products

.......................

—

—

58,061,819

58,061,819

Life

Sciences

Tools

&

Services

............

226,307,734

—

—

226,307,734

Machinery

............................

80,923,976

—

—

80,923,976

Media

...............................

30,633,057

—

—

30,633,057

Oil,

Gas

&

Consumable

Fuels

.............

97,452,735

—

—

97,452,735

Passenger

Airlines

.....................

29,441,160

—

—

29,441,160

Personal

Care

Products

.................

29,834,001

—

—

29,834,001

Pharmaceuticals

.......................

32,394,375

—

—

32,394,375

Professional

Services

...................

187,204,785

—

—

187,204,785

Residential

REITs

......................

28,137,343

—

—

28,137,343

Semiconductors

&

Semiconductor

Equipment

.

155,955,295

—

—

155,955,295

Software

.............................

439,353,395

—

—

439,353,395

Specialized

REITs

......................

23,916,420

—

—

23,916,420

Specialty

Retail

........................

187,296,974

—

—

187,296,974

Textiles,

Apparel

&

Luxury

Goods

..........

25,999,260

—

—

25,999,260

Trading

Companies

&

Distributors

..........

68,793,554

—

—

68,793,554

Convertible

Preferred

Stocks

................

—

—

59,793,860

59,793,860

Preferred

Stocks

.........................

—

—

429,965

429,965

Warrants

...............................

—

—

142,865

a

142,865

Convertible

Bonds

.......................

—

—

1,804,600

1,804,600

Corporate

Bonds

........................

—

—

570,178

570,178

Senior

Floating

Rate

Interests

...............

—

—

813,040

813,040

Short

Term

Investments

...................

132,529,127

—

—

132,529,127

Total

Investments

in

Securities

...........

$3,809,566,204

$—

$121,616,327

$3,931,182,531

a

Includes

financial

instruments

determined

to

have

no

value.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

79

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

April

30,

2024,

the

reconciliations

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

c

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

10,999,989

$

—

$

—

$

—

$

—

$

—

$

—

$

2,857,140

$

13,857,129

$

2,857,140

Commercial

Services

&

Supplies

........

7,056,488

—

—

—

—

—

—

1,605,453

8,661,941

1,605,453

Health

Care

Equipment

&

Supplies

.......

16,934,771

—

—

—

(16,934,771)

—

—

—

—

—

IT

Services

........

9,178,870

3,300,250

—

—

—

—

—

3,438,663

15,917,783

3,438,663

Leisure

Products

....

71,332,234

—

—

—

—

—

—

4,009,932

75,342,166

4,009,932

Software

..........

732,694

—

—

—

—

—

—

(81,593)

651,101

(81,593)

Convertible

Preferred

Stocks

:

Software

..........

35,421,533

—

—

—

—

—

—

9,785,817

45,207,350

9,785,817

Preferred

Stocks

:

Commercial

Services

&

Supplies

........

8,167,495

—

—

—

—

—

—

850,108

9,017,603

850,108

Health

Care

Providers

&

Services

........

18,953,290

—

—

—

—

—

—

1,410,094

20,363,384

1,410,094

Software

..........

15,232,654

—

—

—

—

—

—

304,332

15,536,986

304,332

Escrows

and

Litigation

Trusts

:

—

d

—

—

d

—

—

—

—

—

—

d

—

Total

Investments

in

Securities

............

$194,010,018

$3,300,250

$—

$—

$(16,934,771)

$—

$—

$24,179,946

$204,555,443

$24,179,946

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Software

..........

429,531

10,096,503

—

—

—

—

—

(144,343)

10,381,691

(144,343)

Convertible

Preferred

Stocks

:

Automobile

Components

—

9,999,899

—

—

—

—

—

—

9,999,899

—

Diversified

Consumer

Services

........

12,019,999

—

—

—

—

—

—

895,706

12,915,705

895,706

Software

..........

35,813,345

—

—

—

—

—

—

3,411,500

39,224,845

3,411,500

Specialty

Retail

.....

6,545,566

—

—

—

—

—

—

689,671

7,235,237

689,671

Preferred

Stocks

:

Automobile

Components

6,232,998

d

—

—

—

—

—

—

245,902

6,478,900

d

245,902

Commercial

Services

&

Supplies

........

8,150,632

—

—

—

—

—

—

848,353

8,998,985

848,353

Software

..........

2,698,021

—

—

—

—

—

—

(469,682)

2,228,339

(469,682)

Rights

:

Biotechnology

......

—

160,095

—

—

—

—

—

235,711

395,806

235,711

Escrows

and

Litigation

Trusts

...........

—

d

—

—

d

—

—

—

—

—

—

d

—

Total

Investments

in

Securities

............

$71,890,092

$20,256,497

$—

$—

$—

$—

$—

$5,712,818

$97,859,407

$5,712,818

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

80

franklintempleton.com

Annual

Report

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

c

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Leisure

Products

....

$

54,971,598

$

—

$

—

$

—

$

—

$

—

$

—

$

3,090,221

$

58,061,819

$

3,090,221

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

7,184,103

—

—

—

—

—

—

535,345

7,719,448

535,345

Semiconductors

&

Semiconductor

Equipment

.......

2,020,235

—

—

—

—

—

—

(1,978,134)

42,101

(1,978,134)

Software

..........

28,719,105

—

—

—

—

—

—

23,313,206

52,032,311

23,313,206

Preferred

Stocks

:

Semiconductors

&

Semiconductor

Equipment

.......

1,334,696

—

—

—

—

—

—

(904,731)

429,965

(904,731)

Warrants

:

Semiconductors

&

Semiconductor

Equipment

.......

60,114

—

—

—

—

—

—

(47,640)

12,474

(47,640)

Software

..........

—

d

—

d

—

d

—

—

—

—

130,391

130,391

d

130,391

Convertible

Bonds

:

Software

..........

—

1,804,600

—

—

—

—

—

—

1,804,600

—

Corporate

Bonds

:

Software

..........

570,178

—

—

—

—

—

—

—

570,178

—

Senior

Floating

Rate

Interests

:

Semiconductors

&

Semiconductor

Equipment

.......

625,802

127,779

—

—

—

27,591

—

31,868

813,040

31,868

Escrows

and

Litigation

Trusts

:

—

d

—

—

d

—

—

—

—

—

—

—

Total

Investments

in

Securities

............

$95,485,831

$1,932,379

$—

$—

$—

$27,591

$—

$24,170,526

$121,616,327

$24,170,526

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Transferred

out

of

Level

3

as

a

result

of

the

availability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

d

Includes

financial

instruments

determined

to

have

no

value.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

81

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

April

30,

2024,

are

as

follows:

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Leisure

Products.

.

.

.

.

.

.

$75,342,166

Market

comparables

Discount

for

lack

of

marketability

13.7%

Decrease

Estimated

Revenue

$7.5

bil

Increase

EV

/

revenue

multiple

4.5x

Increase

Convertible

Preferred

Stocks:

Software.

.

.

.

.

.

.

25,436,387

Market

comparables

Discount

for

lack

of

marketability

4.9%

Decrease

EV

/

revenue

multiple

20.7x

Increase

Revenue

$2.4

bil

Increase

Trade

Price

$66.0

Increase

Volatility

32.8%

Increase

All

Other

Investments.

.

.

.

103,776,890

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$204,555,443

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Convertible

Preferred

Stocks:

Software

.

.

.

.

.

.

.

.

.

.

.

.

.

.

 $21,236,766

Market

comparables

Discount

for

lack

of

marketability

8.0%

Decrease

Estimated

Revenue

$481.5

mil

Increase

EV

/

revenue

multiple

5.0x

Increase

Volatility

27.3%

Increase

All

Other

Investments.

.

.

.

76,622,641

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$97,859,407

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

82

franklintempleton.com

Annual

Report

11.

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

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Leisure

Products

............

$58,061,819

Market

comparables

Discount

for

lack

of

marketability

13.7%

Decrease

Estimated

Revenue

$7.5

bil

Increase

EV

/

revenue

multiple

4.5x

Increase

All

Other

Investments.

.

.

.

.

.

.

.

.

63,554,508

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$121,616,327

a

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

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

b

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

c

Includes

financial

instruments

determined

to

have

no

value.

Abbreviations

List

EV

-

Enterprise

value

Selected

Portfolio

ADR

American

Depositary

Receipt

CVR

Contingent

Value

Right

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

83

franklintempleton.com

Annual

Report

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Growth

Opportunities

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Growth

Opportunities

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

(three

of

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

April

30,

2024,

the

related

statements

of

operations

for

the

year

ended

April

30,

2024,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

April

30,

2024,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2024

by

correspondence

with

the

custodian,

transfer

agent,

brokers

and

agent

banks;

when

replies

were

not

received

from

brokers

or

agent

banks,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

June

20,

2024

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

84

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2024:

Pursuant

to:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$520,926,655

—

—

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$14,415,996

$10,648,692

$20,119,895

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$16,377,273

$10,648,692

$21,069,624

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$3,444,818

—

—

Section

163(j)

Interest

Dividends

Earned

§163(j)

—

—

$10,655

Franklin

Strategic

Series

Board

Members

and

Officers

85

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

117

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

117

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

117

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

86

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

117

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-2023),

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

117

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

The

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

117

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

87

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

107

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016)

and

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Gregory

E.

Johnson

2

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

2023

and

Trustee

since

2013

126

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

Rupert

H.

Johnson,

Jr.

3

(1940)

Trustee

Since

1991

117

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Franklin

Templeton

Fund

Adviser,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006-2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005-2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

88

franklintempleton.com

Annual

Report

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

1.

Information

is

for

the

calendar

year

ended

December

31,

2023,

unless

otherwise

noted.

We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

2.

Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

3.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Christopher

Kings

(1974)

Chief

Executive

Officer

–

Finance

and

Administration

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Jeffrey

W.

White

(1971)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Financial

Officer,

Chief

Accounting

Officer

&

Treasurer

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Director

and

Assistant

Treasurer

within

Franklin

Templeton

Global

Fund

Tax

and

Fund

Administration

and

Financial

Reporting

(2017-2023).

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

89

franklintempleton.com

Annual

Report

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

90

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

STRATEGIC

SERIES

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

16,

2024

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters,

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined,

through

the

exercise

of

its

business

judgment,

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

the

ongoing

integration

of

the

Putnam

family

of

funds

into

the

FT

family

of

funds

and

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

continued

reassessment

of

the

fund

offerings

in

response

to

FT

acquisitions

and

the

Franklin

Strategic

Series

Shareholder

Information

91

franklintempleton.com

Annual

Report

market

environment,

as

well

as

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement,

including

its

initiative

to

create

a

new

enterprise-wide

artificial

intelligence

platform.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2023.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Growth

Opportunities

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

-

The

Performance

Universe

for

the

Franklin

Small

Cap

Growth

Fund

included

the

Fund

and

all

retail

and

institutional

small-cap

growth

funds.

The

Performance

Universe

for

Franklin

Small-Mid

Cap

Growth

Fund

included

the

Fund

and

all

retail

and

institutional

mid-cap

growth

funds.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

one-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that

each

Fund’s

one-year

annualized

total

return

was

in

the

first

quintile.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

each

of

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Growth

Opportunities

Fund

included

the

Fund,

12

other

multi-cap

growth

funds

and

one

mid-cap

growth

fund.

The

Expense

Group

for

the

Franklin

Small

Cap

Growth

Fund

included

the

Fund

and

14

other

small-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Small-Mid

Cap

Growth

Fund

included

the

Fund

and

11

other

mid-cap

growth

funds.

The

Board

noted

that

the

Management

Rates

and

actual

total

expense

ratios

for

these

Funds

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

Franklin

Strategic

Series

Shareholder

Information

92

franklintempleton.com

Annual

Report

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2023,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

an

independent

registered

public

accounting

firm

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

each

Fund

had

experienced

a

significant

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Franklin

Strategic

Series

Shareholder

Information

93

franklintempleton.com

Annual

Report

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FSS1

A

06/24

©

2024

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

April

30,

2024

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

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You

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below.

Franklin

Strategic

Series

1

franklintempleton.com

Annual

Report

SHAREHOLDER

LETTER

Dear

Shareholder:

We

are

pleased

to

provide

the

annual

report

of

Franklin

Strategic

Series

for

the

12-month

reporting

period

ended

April

30,

2024.

Please

read

on

for

a

detailed

look

at

prevailing

economic

and

market

conditions

during

the

Fund’s

reporting

period

and

to

learn

how

those

conditions

have

affected

Fund

performance.

As

always,

we

remain

committed

to

providing

you

with

excellent

service

and

a

full

spectrum

of

investment

choices.

We

also

remain

committed

to

supplementing

the

support

you

receive

from

your

financial

advisor.

One

way

we

accomplish

this

is

through

our

website,

www.franklintempleton.com

.

Here

you

can

gain

immediate

access

to

market

and

investment

information,

including:

•

Fund

prices

and

performance;

•

Market

insights

and

commentaries

from

our

portfolio

Managers;

and

•

A

host

of

educational

resources.

We

look

forward

to

helping

you

meet

your

financial

goals.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

CFA

®

is

a

trademark

owned

by

CFA

Institute.

franklintempleton.com

Annual

Report

2

Contents

Franklin

Biotechnology

Discovery

Fund

3

Franklin

Natural

Resources

Fund

10

Financial

Highlights

and

Schedules

of

Investments

18

Financial

Statements

34

Notes

to

Financial

Statements

38

Report

of

Independent

Registered

Public

Accounting

Firm

53

Tax

Information

54

Board

Members

and

Officers

55

Shareholder

Information

60

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

Franklin

Biotechnology

Discovery

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

capital

appreciation.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

For

the

year

ended

April

30,

2024,

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

positive

total

return.

Inflation

slowed

amid

higher

interest

rates,

while

the

economy’s

continued

strength

helped

drive

equity

gains

and

alleviated

concerns

about

a

recession.

Technology-related

stocks

in

particular

helped

support

equity

prices

amid

cost-cutting

efforts

and

investor

optimism

that

artificial

intelligence

(AI)

would

lead

to

strong

growth

opportunities,

particularly

for

the

manufacturers

of

microchips

that

power

new

AI

applications.

The

U.S.

economy

was

strong,

posting

solid

gross

domestic

product

(GDP)

annual

growth

in

the

final

three

quarters

of

2023.

However,

the

expansion

slowed

in

the

first

quarter

of

2024

amid

slower

growth

in

consumer

spending,

exports,

and

state

and

local

government

spending,

as

well

as

a

decline

in

federal

government

spending.

Despite

a

deceleration

in

the

first

quarter,

consumer

spending

continued

to

power

the

economy,

helped

by

higher

asset

prices

and

increased

wages.

The

labor

market

remained

tight

but

showed

some

signs

of

easing.

Unemployment

increased

slightly

while

remaining

low

by

historical

standards,

and

wages

continued

to

grow,

albeit

at

a

slower

pace.

Improving

economic

conditions

bolstered

consumer

confidence,

but

sentiment

remained

well

below

pre-

pandemic

levels.

Higher

interest

rates

during

the

12-month

period

meant

elevated

borrowing

costs

for

individuals

and

businesses,

which

dampened

some

economic

activity,

especially

in

the

housing

market.

The

U.S.

Federal

Reserve

(Fed)

shifted

its

monetary

policy,

moving

from

a

tightening

stance

early

in

the

12

months

under

review

to

a

more

neutral

policy

as

the

period

continued

and

inflation

generally

decelerated.

Against

this

backdrop,

health

care

equities

ended

the

annual

period

with

much

smaller

gains

than

the

broader

stock

market

averages

(both

in

the

U.S.

and

globally),

having

underperformed

seven

out

of

10

other

sector

groups;

only

real

estate,

utilities

and

consumer

staples

fared

worse

than

health

care.

As

it

pertains

to

the

Fund’s

core

investments,

lagging

biotechnology

industry

stocks

were

nearly

unchanged

amid

heightened

volatility

as

the

selloff

that

characterized

the

first

half

the

year

was

more

or

less

offset

by

gains

associated

with

a

multi-month

rally

that

began

in

November

2023

(extending

through

March

2024,

ahead

of

April’s

modest

pullback).

Life

sciences

tools

and

services

industry

stocks

fared

even

worse

as

they

generally

ended

the

annual

period

in

negative

territory.

Pharmaceuticals

stocks,

meanwhile,

broke

out

to

the

upside

and

posted

the

strongest

returns

among

the

six

industries

that

comprise

the

health

care

sector.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

As

the

biotechnology

industry

began

to

move

off

a

cyclical

low

point,

we

prepared

the

portfolio

for

an

environment

of

greater

interest

rate

stability,

M&A

activity

and

IPO

(initial

public

offering)

launches,

while

sticking

to

the

kind

of

selective

approach

we

believe

is

necessary

to

identify

the

best

opportunities

in

the

dynamic

and

competitive

biotechnology

field.

Our

approach

considered

key

aspects

such

as

(1)

serving

a

large

total

addressable

market

with

potential

for

significant

future

revenue

opportunities;

(2)

discounted

valuation

with

upside

from

pipeline

potential;

and

(3)

clinically

derisked

or

commercial

stage

assets.

We

keep

in

mind

that

large

pharmaceutical

companies

are

seeking

to

replenish

their

pipelines

with

promising

biotech

candidates

while

addressing

profitability

pressures

arising

from

upcoming

patent

losses.

Even

though

IPO

activity

increased

in

the

latter

half

of

the

period,

indicating

renewed

investor

interest,

biotech

and

pharmaceutical

industries

continue

to

face

challenges

tied

to

regulatory

uncertainty,

pricing

pressure,

and

looming

patent

expirations.

The

biotech

space

increasingly

appeared

poised

to

benefit

from

innovation

and

reinvigorated

capital

markets

in

2024

and

beyond,

with

the

current

wave

of

innovation

happening

in

areas

like

oncology,

immunology,

and

gene

editing.

We

are

encouraged

as

companies

have

centered

their

efforts

on

new

drug

discovery

platforms,

novel

compounds,

and

Franklin

Biotechnology

Discovery

Fund

4

franklintempleton.com

Annual

Report

areas

of

significant

unmet

medical

need.

For

example,

we

became

more

enthusiastic

about

progress

in

the

areas

of

radiopharmaceuticals

and

antibody

drug

conjugates

(ADCs),

and

also

believe

further

progress

in

the

fields

of

cell

therapy,

gene

therapy,

and

gene

editing

can

allow

the

industry

to

address

diseases

in

areas

of

significant

unmet

medical

need.

GLP-1

(glucagon-like

peptide

1)

agonists

and

weight

loss

treatments

were

another

area

of

interest

as

the

fervor

around

these

drugs

has

rapidly

expanded

the

market

over

the

past

year.

At

this

point

in

the

business

cycle,

and

from

a

risk

management

standpoint,

portfolio

turnover

picked

up

on

a

year-over-year

basis

as

stock

rotation—the

strategy

of

shifting

investments

based

on

changing

business

conditions

and

market

cycles—was

driven

by

profitably

reducing

or

eliminating

some

of

the

year’s

biggest

upside

movers

while

maintaining

or

lifting

the

portfolio’s

ongoing

focus

on

smaller

biotech

companies.

As

we

executed

our

strategy,

diversification

increased

in

the

build-up

and

the

total

number

of

issuers

held

by

the

portfolio

rose

from

77

to

86

during

the

fiscal

year.

As

we

explored

various

new

opportunities,

several

existing

holdings

also

received

greater

funding

as

we

believed

they

were

still

significantly

undervalued.

We

continued

to

evaluate

ideas

on

a

company-by-company

basis,

with

consideration

of

the

most

appropriate

valuation

techniques.

Throughout

the

portfolio

construction

process,

we

aim

to

achieve

quality

interaction

and

meet

often

with

the

management

of

both

newly

identified

companies

and

those

held

in

the

portfolio.

Ongoing

communication

can

include

in-person

meetings

at

our

office,

gatherings

at

an

off-site

location,

conference

calls,

as

well

as

informal

discussions.

We

also

interact

with

a

company’s

employees,

competitors,

and

relevant

industry

experts

as

part

of

our

in-depth

fundamental

research.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+17.67%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

NASDAQ

Biotechnology

Index

®

,

which

tracks

U.S.

and

international-based

biotechnology

stocks,

posted

a

-0.60%

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

+22.66%

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

.

Portfolio

Composition

4/30/24

%

of

Total

Net

Assets

Biotechnology

77.2%

Pharmaceuticals

15.2%

Life

Sciences

Tools

&

Services

3.9%

Other

*

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.7%

*

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.

Top

10

Holdings

4/30/24

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

Amgen,

Inc.

7.1%

Biotechnology,

United

States

Regeneron

Pharmaceuticals,

Inc.

6.3%

Biotechnology,

United

States

Vertex

Pharmaceuticals,

Inc.

5.3%

Biotechnology,

United

States

Ascendis

Pharma

A/S

4.0%

Biotechnology,

Denmark

AstraZeneca

plc

3.4%

Pharmaceuticals,

United

Kingdom

Biogen,

Inc.

3.2%

Biotechnology,

United

States

Gilead

Sciences,

Inc.

3.0%

Biotechnology,

United

States

Intra-Cellular

Therapies,

Inc.

2.9%

Pharmaceuticals,

United

States

Neurocrine

Biosciences,

Inc.

2.6%

Biotechnology,

United

States

Alpine

Immune

Sciences,

Inc.

2.6%

Biotechnology,

United

States

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

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

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

The

Fund’s

huge

outperformance

gap

versus

the

NASDAQ

Biotechnology

Index

was

made

possible

by

strong

stock

selection,

especially

in

the

biotechnology

industry.

As

a

result,

our

biotech

holdings

posted

a

one-

year

gain

that

was

more

than

20

times

higher

than

the

sum

of

all

biotech

stocks

tracked

by

the

index.

Over

a

dozen

of

the

Fund’s

off-benchmark

or

overweighted

biotech

holdings

more

than

doubled

in

value,

while

a

handful

of

outliers

in

this

this

elite

group

more

than

tripled.

Among

the

standout

biotech

contributors

were

Ascendis

Pharma,

Alpine

Immune

Sciences

(purchased

during

the

period),

Merus,

Cullinan

Therapeutics

(formerly

Cullinan

Oncology),

Harpoon

Therapeutics

(sold

by

period-end)

and

Benitec

BioPharma.

We

typically

keep

lighter-than-index

stakes

in

established,

large-capitalization

biotech

firms,

and

this

worked

in

our

favor

as

relative

returns

were

supported

by

the

underweighting

in

Gilead

Sciences

and

others

that

sold

off

for

the

year.

To

a

lesser

extent,

the

Fund

also

fared

well

by

avoiding

health

care

equipment

stocks

as

this

small

industry

group

posted

very

steep

losses

on

the

index.

Most

of

our

other

key

contributors

were

individual

holdings

in

the

pharmaceuticals

industry,

where

heavily-overweighted

positions

in

EyePoint

Pharmaceuticals

and

CymaBay

Therapeutics

(sold

by

period-end)

nearly

tripled

in

value.

Q.

What

were

the

leading

detractors

from

performance?

A.

Some

of

the

Fund’s

overweighted

or

off-benchmark

biotech

and

pharmaceutical

holdings

experienced

clinical

trial

failures

or

other

company-specific

setbacks

that

erased

most

of

their

equity

value

during

the

year

under

review.

Among

these

key

detractors

were

Revance

Therapeutics,

Marinus

Pharmaceuticals,

Amylyx

Pharmaceuticals

(bought

and

sold

during

the

period),

Acelyrin

(purchased

during

the

period),

Pliant

Therapeutics,

Terns

Pharmaceuticals

and

Reneo

Pharmaceuticals

(sold

by

period-end).

Though

not

as

severe

in

terms

of

sheer

losses,

several

other

detractors

sustained

double-digit

percentage

declines

and

further

curbed

our

results

versus

the

benchmark

index,

namely

PTC

Therapeutics,

Jazz

Pharmaceuticals

and

Immunovant

(purchased

during

the

period).

Elsewhere

in

the

portfolio,

the

Fund

would

have

outperformed

its

benchmark

in

the

life

sciences

tools

and

services

industry

if

not

for

our

lack

of

exposure

to

Medpace

Holdings,

which

posted

a

big

rally

on

the

index.

Among

our

active

investments

in

this

industry,

Sartorius

and

a

couple

of

other

off-benchmark

companies

further

hindered

relative

performance

as

they

sold

off

sharply

during

the

year.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

It

was

a

very

active

period

in

terms

of

portfolio

trading

and

adjustment

as

numerous

companies

were

either

introduced

or

completely

eliminated—sometimes

both—while

many

existing

holdings

remained

in

place

while

we

fortified

or

trimmed

our

allocations

as

the

year

unfolded.

In

the

process,

biotechnology

industry

stocks

increased

from

roughly

73%

of

total

net

assets

to

78%

(partially

due

to

appreciation),

while

pharmaceuticals

holdings

fell

from

roughly

19%

to

14%

of

the

whole

(partially

due

to

depreciation).

In

life

sciences

tools

and

services,

we

implemented

a

combination

of

new

additions

and

sales

of

existing

holdings

amid

significant

depreciation

across

much

of

this

allocation

(averaging

just

over

5%

of

total

net

assets),

which

caused

the

Fund’s

overall

industry

exposure

to

drop

modestly

to

just

under

4%

of

the

overall

portfolio.

Thank

you

for

your

continued

participation

in

Franklin

Biotechnology

Discovery

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Evan

McCulloch,

CFA

Lead

Portfolio

Manager

Wendy

Lam,

Ph.D.

Akiva

Felt

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2024,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

April

30,

2024

Franklin

Biotechnology

Discovery

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of 4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+17.67%

+11.20%

5-Year

+36.89%

+5.28%

10-Year

+84.51%

+5.72%

Advisor

1-Year

+17.98%

+17.98%

5-Year

+38.63%

+6.75%

10-Year

+89.16%

+6.58%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Biotechnology

Discovery

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(04/30/14–04/30/24)

Advisor

Class

(

04/30/14–04/30/24)

Franklin

Biotechnology

Discovery

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

portfolio

is

non-diversified

and

may

invest

in

a

relatively

small

number

of

issuers,

which

may

negatively

impact

the

Fund's

performance

and

result

in

greater

fluctuation

in

the

value

of

the

Fund's

shares.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

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.

Source:

FactSet.

The

NASDAQ

Biotechnology

Index

is

a

modified

capitalization-weighted

index

designed

to

measure

the

performance

of

NASDAQ-listed

companies

classified

as

either

biotechnology

or

pharmaceuticals.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Total

Annual

Operating

Expenses

6

Share

Class

A

1.07%

Advisor

0.82%

Your

Fund’s

Expenses

Franklin

Biotechnology

Discovery

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,296.50

$5.82

$1,019.80

$5.11

1.02%

C

$1,000

$1,291.50

$10.08

$1,016.07

$8.87

1.77%

R6

$1,000

$1,298.70

$3.80

$1,021.55

$3.35

0.67%

Advisor

$1,000

$1,298.00

$4.38

$1,021.05

$3.85

0.77%

10

franklintempleton.com

Annual

Report

Franklin

Natural

Resources

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

to

provide

high

total

return.

Total

return

consists

of

capital

appreciation

and

current

dividend

and

interest

income.

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.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

For

the

year

ended

April

30,

2024,

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

positive

total

return.

Inflation

slowed

amid

higher

interest

rates,

while

the

economy’s

continued

strength

helped

drive

equity

gains

and

alleviated

concerns

about

a

recession.

Technology-related

stocks

in

particular

helped

support

equity

prices

amid

cost-cutting

efforts

and

investor

optimism

that

artificial

intelligence

(AI)

would

lead

to

strong

growth

opportunities,

particularly

for

the

manufacturers

of

microchips

that

power

new

AI

applications.

Against

this

backdrop,

prices

rose

across

much

of

the

global

commodity

complex,

having

gathered

momentum

from

December

through

March

2024

following

a

volatile

series

of

rallies

and

selloffs

that

left

the

major

commodity-tracking

indexes

nearly

unchanged

from

May

to

the

December

2023

rally

point.

The

rally

more

or

less

plateaued

in

April

as

inflation

concerns

reemerged

alongside

potential

trouble

spots

in

the

global

economic

recovery

tied

to

geoeconomic

fragmentation

and

diverging

growth

dynamics

(centered

on

China,

but

including

the

U.S.,

most

European

countries

and

key

emerging

markets

like

Brazil,

Turkey

and

South

Africa).

Although

the

global

economy

was

not

suddenly

booming,

the

boost

the

Fund’s

returns

received

from

the

commodity

rally

was

rooted

in

macro

optimism

driven

by

expectations

that

demand

will

rise

with

nascent

manufacturing

improvements

in

the

U.S.,

China

and

elsewhere.

Among

the

key

commodities,

international

benchmark

crude

oil

futures

increased

nearly

11%

during

the

year

as

demand

grew

alongside

an

uptick

in

perceived

geopolitical

risks

to

supply

and

greater

production

discipline

by

several

major

non-U.S.

oil

exporters.

Meanwhile,

U.S.

natural

gas

prices

fell

more

than

17%

amid

abundant

supplies

and

subdued

demand.

In

the

metals

markets,

prices

of

copper,

iron

ore

and

other

key

base

metals

began

to

rally

late

in

the

reporting

period

as

supply-and-demand

fundamentals

tightened,

more

than

compensating

for

the

losses

they

incurred

in

the

first

half.

Precious

metals

prices

were

split

between

gold’s

rally

to

new

all-time

nominal

highs,

silver’s

more

subdued

gain

of

roughly

5%

in

the

spot

market,

and

substantial

declines

in

palladium

and

platinum

prices

as

vehicle

manufacturing

demand

for

these

key

emissions-control

catalyst

metals

diminished.

Agricultural

commodities

also

generally

declined,

even

though

extreme

weather

and

shortages

fueling

rallies

in

select

items

such

as

cocoa,

orange

juice

and

coffee.

Major

crops

anchored

the

downside

amid

double-digit

percentage

losses

in

corn,

sugar

and

soybeans

and

a

smaller

drop

in

wheat

prices.

Currency

impacts

limited

commodity

price

gains

with

major

currencies

ebbing

nearly

3%

against

the

U.S.

dollar,

thereby

making

commodities

more

expensive

for

most

non-U.S.

buyers.

Commodity-linked

equities

displayed

some

leverage

as

they

performed

better

than

commodities

themselves.

In

U.S.

and

global

equity

markets,

energy

and

materials

sectors

stocks

ranked

sixth

and

seventh,

respectively,

among

the

11

sector

groups,

though

energy

stocks

more

than

doubled

the

annual

gains

of

their

materials

counterparts

in

the

natural

resources

universe.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

While

the

portfolio’s

broader

industry-level

mix

did

not

change

meaningfully

over

the

12-month

period,

industry

exposures

did

shift

as

we

sought

to

reduce

holdings

in

companies

with

greater

operating

leverage

into

strength

during

the

summer

and

autumn

of

2023.

This

was

particularly

true

in

energy

where

we

reduced

holdings

in

the

oilfield

services

and

E&P

(oil

and

gas

exploration

and

production)

industries,

while

increasing

the

weighting

in

integrated

oil

and

gas.

These

moves

came

in

response

to

concerns

related

to

the

potential

for

economic

weakness

emanating

from

the

U.S.

Federal

Reserve’s

aggressive

monetary

tightening

and

a

general

rise

in

interest

rates.

Franklin

Natural

Resources

Fund

11

franklintempleton.com

Annual

Report

We

reduced

positions

in

several

metals

and

mining

stocks

for

similar

reasons,

in

addition

to

the

collapse

in

China’s

construction

market

given

its

importance

for

global

industrial

metals

demand

and

exports.

Shares

of

some

mining

stocks

(and

those

of

copper-focused

miners

in

particular)

were

subsequently

repurchased

at

significantly

lower

levels

when

we

believed

their

equity

valuations

appropriately

reflected

economic

risks.

These

portfolio

actions

are

part

of

our

strategy

to

focus

on

the

intrinsic

values

of

commodities

and

related

equities

and

take

a

dynamic,

opportunistic

approach

to

position

sizing.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+12.41%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Standard

&

Poor’s

®

(S&P

®

)

North

American

Natural

Resources

Sector

Index,

which

tracks

companies

involved

in

industries

such

as

mining,

energy,

timber

and

forestry

services,

and

the

production

of

pulp

and

paper,

posted

a

+15.64%

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

+22.66%

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

14

.

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

.

Geographic

Composition

4/30/24

%

of

Total

Net

Assets

North

America

85.5%

Europe

6.0%

Australia

&

New

Zealand

3.7%

Latin

America

&

Caribbean

3.6%

Other

0.7%

Short-Term

Investments

&

Other

Net

Assets

0.5%

Portfolio

Composition

4/30/24

%

of

Total

Net

Assets

Oil

&

Gas

Exploration

&

Production

22.5%

Integrated

Oil

&

Gas

16.7%

Oil

&

Gas

Equipment

&

Services

11.3%

Oil

&

Gas

Storage

&

Transportation

7.2%

Copper

7.0%

Gold

6.3%

Oil

&

Gas

Refining

&

Marketing

6.1%

Diversified

Metals

&

Mining

6.1%

Industrial

Gases

2.4%

Fertilizers

&

Agricultural

Chemicals

2.1%

Oil

&

Gas

Drilling

2.0%

Metal,

Glass

&

Plastic

Containers

1.2%

Specialty

Chemicals

1.2%

Construction

Materials

1.1%

Electrical

Components

&

Equipment

1.1%

Other

*

5.2%

Short-Term

Investments

&

Other

Net

Assets

0.5%

*

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.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

30

.

Franklin

Natural

Resources

Fund

12

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

Overall

stock

selection

versus

the

benchmark

S&P

North

American

Natural

Resources

Index

was

favorable

across

the

portfolio,

but

especially

in

the

integrated

oil

and

gas

industry.

This

is

where

investments

in

off-benchmark

European

energy

conglomerates

such

as

Shell

topped

the

benchmark

return,

and

where

substantial

underweightings

in

U.S.

oil

majors

Chevron

and

Exxon

Mobil

proved

helpful

as

Chevron’s

shares

failed

to

advance

while

Exxon’s

12-month

gain

trailed

the

index

by

a

wide

margin.

A

beneficial

combination

of

overweighting

and

stock

selection

led

to

outperformance

and

high

overall

returns

in

the

oilfield

services

industry.

High-conviction

holdings

were

instrumental

as

our

heavily-overweighted

stakes

in

TechnipFMC,

Liberty

Energy

and

NexTier

Oilfield

Solutions

(acquired

by

Patterson-UTI,

also

a

Fund

holding)

had

impressive

rallies

that

more

than

doubled

the

benchmark

return.

Most

of

the

other

standout

contributors

were

linked

to

metals

and

mining,

though

there

were

also

some

non-core

renewable

energy

and

“green

tech”

holdings

that

served

as

tangential

off-benchmark

outliers

to

the

upside.

The

copper

market

heated

up

late

in

the

period

and

set

off

a

sharp

rally

in

nearly

all

related

holdings,

none

more

so

than

key

off-benchmark

contributors

Lundin

Mining,

Antofagasta

and

Capstone

Copper.

Our

outperformance

in

the

gold

industry,

however,

was

based

on

our

avoidance

of

several

index

component

companies

that

fared

poorly;

the

key

“contributor-by-omission”

in

this

regard

was

Franco-Nevada.

The

Fund

also

fared

well

through

its

lack

of

exposure

to

underperforming

silver-

and

aluminum-focused

miners.

Gains

linked

to

the

Fund’s

primary

investments

in

energy

and

metals

were

enhanced

by

select

energy

grid

construction/engineering

and

specialty

equipment

companies

involved

in

offshore

wind

farms,

energy

networks

and

similar

projects.

This

is

how

our

small

off-benchmark

exposure

to

the

construction

and

engineering

industry

did

well

to

support

absolute

and

relative

performance,

as

all

three

related

holdings

posted

benchmark-beating,

double-digit

percentage

gains.

Water

infrastructure

and

treatment

was

another

niche

area

of

notable

strength

as

the

Fund’s

stake

in

Xylem—situated

in

the

off-index

industrial

machinery,

supplies

and

components

industry—rose

solidly

beyond

the

benchmark

return.

Q.

What

were

the

leading

detractors

from

performance?

A.

A

host

of

minor

off-benchmark

industry

allocations

suffered

big

losses

including

electrical

components

and

equipment,

which

is

where

FREYR

Battery,

Shoals

Technologies

and

other

“energy

transition”

developers

and

manufacturers

tied

to

utility-scale

energy

storage

and

mobility

are

situated.

Amid

project

delays

and

plummeting

lithium

prices,

our

investment

in

Li-Cycle

Holdings

also

lost

considerable

equity

value.

Further

up

the

lithium

value

chain,

lithium

miner

Albemarle

was

a

standout

detractor

in

the

specialty

chemicals

industry.

Wind-blade

manufacturer

TPI

Composites,

our

sole

position

in

the

heavy

electrical

equipment

industry,

also

posted

significant

declines

due

to

delays

in

wind

projects

and

soft

order

trends.

In

the

industrial

gases

industry,

our

results

were

split

between

a

solid

index-

topping

gain

for

Linde

that

was

countered

by

a

sizable

selloff

in

Air

Products

&

Chemicals,

which

had

a

much

larger

negative

impact

on

relative

returns

than

the

contribution

to

performance

from

Linde.

Fertilizer

and

agricultural

chemical

producers

such

as

Nutrien

and

Corteva

also

sold

off

to

a

lesser

extent.

Stock

selection

and

underweighting

worked

against

relative

performance

in

the

Exploration

&

Production

industry,

which

remained

the

Fund’s

largest

allocation

at

nearly

22%

of

total

net

assets

(on

average).

Although

these

stocks

had

a

superb

year

in

absolute

terms,

the

Fund

lacked

exposure

to

several

index

component

companies

that

underwent

strong

rallies

and

more

than

doubled

the

peer

group

average,

including

Diamondback

Energy.

The

rest

of

the

key

detractors

were

diversified

metals

producers

and

gold-focused

mining

and

exploration

companies;

in

particular,

the

drag

from

losses

tied

to

off-

benchmark

BHP

Group,

29

Metals

and

others

led

to

negative

overall

returns

in

the

diversified

metals

and

mining

industry,

Top

10

Holdings

4/30/24

Company

Industry,

Country

%

of

Total

Net

Assets

a

a

ConocoPhillips

4.7%

Oil,

Gas

&

Consumable

Fuels,

United

States

Chevron

Corp.

4.3%

Oil,

Gas

&

Consumable

Fuels,

United

States

Exxon

Mobil

Corp.

4.0%

Oil,

Gas

&

Consumable

Fuels,

United

States

Freeport-McMoRan,

Inc.

3.2%

Metals

&

Mining,

United

States

EOG

Resources,

Inc.

3.1%

Oil,

Gas

&

Consumable

Fuels,

United

States

Canadian

Natural

Resources

Ltd.

3.0%

Oil,

Gas

&

Consumable

Fuels,

Canada

Shell

plc

2.6%

Oil,

Gas

&

Consumable

Fuels,

United

States

Suncor

Energy,

Inc.

2.4%

Oil,

Gas

&

Consumable

Fuels,

Canada

Pioneer

Natural

Resources

Co.

2.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Schlumberger

NV

2.4%

Energy

Equipment

&

Services,

United

States

Franklin

Natural

Resources

Fund

13

franklintempleton.com

Annual

Report

while

the

Fund’s

favorable

outcome

in

the

gold

industry

would

have

been

much

better

if

not

for

the

sharp

selloff

in

SSR

Mining

(overweight),

which

experienced

setbacks

associated

with

a

tailings

dam

failure

at

one

of

its

operations

in

Turkey;

SSR

was

no

longer

in

the

portfolio

at

period-end.

From

a

wider

perspective,

most

of

the

Fund’s

gold-focused

holdings

decoupled

from

physical

gold’s

appreciation

and

traded

lower

instead.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

The

Fund

remained

nearly

fully

invested

with

a

persistently

low,

sub-1%

cash

level.

Our

energy-related

industry

allocations

continued

to

dominate

the

portfolio’s

composition

and

were

maintained

at

or

near

similar

beginning

and

ending

levels,

though

the

portfolio

has

less

exposure

to

industries

that

typically

display

greater

operational

levels

or

cyclicality.

Metals

and

other

materials-related

exposures

were

also

fairly

steady

throughout

the

year

under

review.

However,

we

primarily

focus

on

copper

miners

when

adding

back

to

positions

during

times

of

weakness

in

the

fall

and

early

winter.

Subtle

shifts

were

made

throughout

the

portfolio’s

smaller

non-core

tier,

including

a

notable

increase

in

exposure

to

energy

infrastructure

construction

and

engineering

companies.

At

the

same

time,

some

minimal

industry

allocations

shrank

from

the

effects

of

depreciation,

including

electrical

components

and

equipment;

heavy

electrical

equipment;

and

environmental

facilities

and

services.

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

April

30,

2024,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

April

30,

2024

Franklin

Natural

Resources

Fund

14

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of 4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+12.41%

+6.21%

5-Year

+44.63%

+6.45%

10-Year

-8.53%

-1.45%

Advisor

1-Year

+12.72%

+12.72%

5-Year

+46.52%

+7.94%

10-Year

-6.11%

-0.63%

See

page

16

for

Performance

Summary

footnotes.

Franklin

Natural

Resources

Fund

Performance

Summary

15

franklintempleton.com

Annual

Report

See

page

16

for

Performance

summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(04/30/14–04/30/24)

Advisor

Class

(

04/30/14–04/30/24)

Franklin

Natural

Resources

Fund

Performance

Summary

16

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries,

it

is

subject

to

increased

volatility.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets

.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Funds

total

annual

operating

expenses

as

of

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

8/31/2024

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

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

S&P

North

American

Natural

Resources

Sector

Index

is

a

modified

capitalization-weighted

index

that

includes

companies

involved

in

extractive

industries

(mining),

energy

and

forestry

services,

producers

of

pulp

and

paper,

and

owners

and

operators

of

timber

tracts

or

plantations.

The

S&P

500

is

a

market

capitaliza-

tion-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(5/1/23–4/30/24)

Share

Class

Net

Investment

Income

A

$0.5704

C

$0.4575

R6

$0.6166

Advisor

$0.5971

Total

Annual

Operating

Expenses

6

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.97%

0.98%

Advisor

0.72%

0.73%

Your

Fund’s

Expenses

Franklin

Natural

Resources

Fund

17

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1

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

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,115.70

$5.39

$1,019.77

$5.14

1.02%

C

$1,000

$1,111.60

$9.31

$1,016.04

$8.89

1.77%

R6

$1,000

$1,118.00

$3.26

$1,021.79

$3.11

0.62%

Advisor

$1,000

$1,117.30

$4.07

$1,021.02

$3.88

0.77%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$112.50

$101.90

$163.50

$150.48

$138.85

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.48)

(0.47)

(0.75)

(0.99)

(0.69)

Net

realized

and

unrealized

gains

(losses)

...........

20.36

11.21

(43.17)

38.85

26.48

Total

from

investment

operations

....................

19.88

10.74

(43.92)

37.86

25.79

Less

distributions

from:

Net

investment

income

..........................

—

(0.14)

(1.01)

—

—

Net

realized

gains

.............................

—

—

(16.67)

(24.84)

(14.16)

Total

distributions

...............................

—

(0.14)

(17.68)

(24.84)

(14.16)

Net

asset

value,

end

of

year

.......................

$132.38

$112.50

$101.90

$163.50

$150.48

Total

return

c

...................................

17.67%

10.58%

(28.56)%

24.26%

18.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.05%

1.06%

1.04%

0.98%

1.03%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.04%

d

1.06%

e

1.04%

d,e

0.97%

d

1.01%

d

Net

investment

(loss)

............................

(0.41)%

(0.45)%

(0.54)%

(0.58)%

(0.49)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$705,301

$686,534

$705,915

$1,160,451

$960,305

Portfolio

turnover

rate

............................

35.87%

24.08%

26.25%

47.30%

32.92%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$103.78

$94.59

$152.95

$143.00

$133.51

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(1.26)

(1.16)

(1.51)

(2.16)

(1.70)

Net

realized

and

unrealized

gains

(losses)

...........

18.69

10.35

(40.18)

36.95

25.35

Total

from

investment

operations

....................

17.43

9.19

(41.69)

34.79

23.65

Less

distributions

from:

Net

realized

gains

.............................

—

—

(16.67)

(24.84)

(14.16)

Net

asset

value,

end

of

year

.......................

$121.21

$103.78

$94.59

$152.95

$143.00

Total

return

c

...................................

16.80%

9.75%

(29.00)%

23.33%

17.62%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.80%

1.81%

1.66%

1.73%

1.78%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.79%

d

1.81%

e

1.66%

d,e

1.72%

d

1.76%

d

Net

investment

(loss)

............................

(1.16)%

(1.20)%

(1.16)%

(1.32)%

(1.24)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$27,332

$29,573

$33,905

$64,801

$48,363

Portfolio

turnover

rate

............................

35.87%

24.08%

26.25%

47.30%

32.92%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$119.33

$108.06

$172.21

$156.99

$143.83

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.06)

(0.08)

(0.23)

(0.45)

(0.18)

Net

realized

and

unrealized

gains

(losses)

...........

21.66

11.94

(45.64)

40.51

27.50

Total

from

investment

operations

....................

21.60

11.86

(45.87)

40.06

27.32

Less

distributions

from:

Net

investment

income

..........................

—

(0.59)

(1.61)

—

—

Net

realized

gains

.............................

—

—

(16.67)

(24.84)

(14.16)

Total

distributions

...............................

—

(0.59)

(18.28)

(24.84)

(14.16)

Net

asset

value,

end

of

year

.......................

$140.93

$119.33

$108.06

$172.21

$156.99

Total

return

....................................

18.10%

11.03%

(28.29)%

24.67%

18.95%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.76%

0.80%

0.74%

0.71%

0.74%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.68%

c

0.65%

0.66%

c

0.64%

c

0.64%

c

Net

investment

(loss)

............................

(0.05)%

(0.08)%

(0.16)%

(0.25)%

(0.12)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$10,333

$11,692

$9,614

$16,721

$9,484

Portfolio

turnover

rate

............................

35.87%

24.08%

26.25%

47.30%

32.92%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$117.54

$106.46

$169.95

$155.30

$142.56

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.19)

(0.22)

(0.42)

(0.59)

(0.34)

Net

realized

and

unrealized

gains

(losses)

...........

21.32

11.72

(44.99)

40.08

27.24

Total

from

investment

operations

....................

21.13

11.50

(45.41)

39.49

26.90

Less

distributions

from:

Net

investment

income

..........................

—

(0.42)

(1.41)

—

—

Net

realized

gains

.............................

—

—

(16.67)

(24.84)

(14.16)

Total

distributions

...............................

—

(0.42)

(18.08)

(24.84)

(14.16)

Net

asset

value,

end

of

year

.......................

$138.67

$117.54

$106.46

$169.95

$155.30

Total

return

....................................

17.98%

10.86%

(28.39)%

24.56%

18.82%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.80%

0.81%

0.79%

0.73%

0.78%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.79%

c

0.81%

d

0.79%

c,d

0.72%

c

0.76%

c

Net

investment

(loss)

............................

(0.15)%

(0.20)%

(0.29)%

(0.33)%

(0.24)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$131,350

$110,607

$110,726

$206,375

$159,348

Portfolio

turnover

rate

............................

35.87%

24.08%

26.25%

47.30%

32.92%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

1

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

96.1%

Biotechnology

76.4%

a

89bio,

Inc.

...........................................

United

States

254,237

$

2,163,557

a

Abivax

SA

,

ADR

......................................

France

480,300

7,204,500

a

ACELYRIN,

Inc.

......................................

United

States

69,409

290,130

a,b

Achieve

Life

Sciences,

Inc.

..............................

United

States

2,181,025

9,574,700

a

Acumen

Pharmaceuticals,

Inc.

...........................

United

States

674,000

2,170,280

a

Adverum

Biotechnologies,

Inc.

...........................

United

States

272,810

2,651,713

a

Adverum

Biotechnologies,

Inc.

...........................

United

States

351,928

3,420,740

a

Alector,

Inc.

..........................................

United

States

303,345

1,540,993

a

Alnylam

Pharmaceuticals,

Inc.

............................

United

States

22,200

3,195,690

a

Alpine

Immune

Sciences,

Inc.

............................

United

States

354,374

22,889,017

Amgen,

Inc.

.........................................

United

States

226,211

61,968,241

a

AnaptysBio,

Inc.

......................................

United

States

160,679

3,910,927

a

Apellis

Pharmaceuticals,

Inc.

.............................

United

States

77,479

3,423,797

a

Apogee

Therapeutics,

Inc.

...............................

United

States

206,539

10,388,912

a

Applied

Therapeutics,

Inc.

...............................

United

States

3,450,500

15,251,210

a

Arcutis

Biotherapeutics,

Inc.

.............................

United

States

1,525,545

12,692,534

a

Argenx

SE

,

ADR

......................................

Netherlands

44,485

16,704,117

a

ARS

Pharmaceuticals,

Inc.

..............................

United

States

1,020,789

8,880,864

a

Ascendis

Pharma

A/S

,

ADR

.............................

Denmark

254,774

35,270,913

a

Aura

Biosciences,

Inc.

..................................

United

States

496,171

3,671,665

a

Benitec

Biopharma,

Inc.

................................

Australia

364,887

3,083,295

a,c,d

Benitec

Biopharma,

Inc.

................................

Australia

208,334

1,523,062

a

Biogen,

Inc.

.........................................

United

States

129,344

27,785,678

a

BioMarin

Pharmaceutical,

Inc.

............................

United

States

46,289

3,738,300

a,c

Carmot

Therapeutics,

Inc.

...............................

United

States

83,100

401,344

a

Centessa

Pharmaceuticals

plc

,

ADR

.......................

United

States

189,736

1,737,982

a,e

Centessa

Pharmaceuticals

plc

,

ADR

.......................

United

States

201,729

1,847,837

a

CG

oncology,

Inc.

.....................................

United

States

127,900

5,140,301

a

Cogent

Biosciences,

Inc.

,

B

..............................

United

States

340,448

2,212,912

a

Crinetics

Pharmaceuticals,

Inc.

...........................

United

States

130,922

5,737,002

a

Crinetics

Pharmaceuticals,

Inc.

...........................

United

States

98,004

4,294,535

a

Cullinan

Therapeutics,

Inc.

..............................

United

States

624,451

16,866,421

a

Day

One

Biopharmaceuticals,

Inc.

.........................

United

States

866,381

14,815,115

a

Dyne

Therapeutics,

Inc.

................................

United

States

355,434

8,996,035

a

Engene

Holdings,

Inc.

..................................

Canada

272,359

4,330,508

Gilead

Sciences,

Inc.

..................................

United

States

404,043

26,343,604

a

Heron

Therapeutics,

Inc.

................................

United

States

1,195,377

2,773,275

a

HilleVax,

Inc.

.........................................

United

States

646,156

8,529,259

a

Immunovant,

Inc.

.....................................

United

States

298,213

8,182,965

a

Insmed,

Inc.

.........................................

United

States

494,940

12,234,917

a

Jasper

Therapeutics,

Inc.

...............................

United

States

236,841

5,653,395

a

Keros

Therapeutics,

Inc.

................................

United

States

202,150

11,399,238

a

Kura

Oncology,

Inc.

....................................

United

States

281,882

5,530,525

a

Kyverna

Therapeutics,

Inc.

..............................

United

States

73,600

1,114,304

a

Legend

Biotech

Corp.

,

ADR

.............................

United

States

122,034

5,337,767

a

MacroGenics,

Inc.

.....................................

United

States

51,100

755,258

a

Merus

NV

...........................................

Netherlands

499,698

22,441,437

a

Mineralys

Therapeutics,

Inc.

.............................

United

States

435,885

5,339,591

a

Mirum

Pharmaceuticals,

Inc.

.............................

United

States

312,590

7,849,135

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

166,630

22,918,290

a

Nuvalent,

Inc.

,

A

......................................

United

States

57,554

3,964,320

a

ORIC

Pharmaceuticals,

Inc.

.............................

United

States

234,001

2,066,229

a,c,d,f

Oruka

Therapeutics,

Inc.

................................

United

States

408,971

6,207,577

a

Praxis

Precision

Medicines,

Inc.

..........................

United

States

50,404

2,765,667

a

PTC

Therapeutics,

Inc.

.................................

United

States

480,611

15,451,644

a

Regeneron

Pharmaceuticals,

Inc.

.........................

United

States

62,222

55,418,647

a

Rocket

Pharmaceuticals,

Inc.

............................

United

States

345,346

7,431,846

a

Roivant

Sciences

Ltd.

..................................

United

States

346,000

3,771,400

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Biotechnology

(continued)

a

Sarepta

Therapeutics,

Inc.

..............................

United

States

75,552

$

9,569,416

a,e

Shattuck

Labs,

Inc.

....................................

United

States

527,104

5,524,050

a,e

Spyre

Therapeutics,

Inc.

................................

United

States

35,100

1,159,353

a

Spyre

Therapeutics,

Inc.

................................

United

States

220,000

7,266,600

a

Syndax

Pharmaceuticals,

Inc.

............................

United

States

321,251

6,788,034

a

Ultragenyx

Pharmaceutical,

Inc.

..........................

United

States

63,321

2,693,675

a

Vaxcyte,

Inc.

.........................................

United

States

193,739

11,730,896

a

Vertex

Pharmaceuticals,

Inc.

.............................

United

States

119,026

46,754,603

a

Xenon

Pharmaceuticals,

Inc.

.............................

Canada

93,364

3,795,247

668,536,991

Health

Care

Providers

&

Services

0.7%

a

Guardant

Health,

Inc.

..................................

United

States

323,366

5,820,588

Life

Sciences

Tools

&

Services

3.6%

a

Avantor,

Inc.

.........................................

United

States

383,929

9,302,600

a

Illumina,

Inc.

.........................................

United

States

106,788

13,140,263

Sartorius

Stedim

Biotech

................................

France

10,100

2,175,411

Thermo

Fisher

Scientific,

Inc.

............................

United

States

12,279

6,983,313

31,601,587

Pharmaceuticals

15.2%

a

Alto

Neuroscience,

Inc.

.................................

United

States

165,070

2,560,236

a,e

Alto

Neuroscience,

Inc.

.................................

United

States

209,500

3,249,345

a

Aquestive

Therapeutics,

Inc.

.............................

United

States

918,897

3,087,494

AstraZeneca

plc

,

ADR

..................................

United

Kingdom

396,308

30,071,851

a

Contineum

Therapeutics,

Inc.

............................

United

States

295,058

4,602,905

a

Contineum

Therapeutics,

Inc.

,

A

..........................

United

States

216,967

3,384,685

a

EyePoint

Pharmaceuticals,

Inc.

...........................

United

States

830,629

14,619,071

a

Intra-Cellular

Therapies,

Inc.

.............................

United

States

355,209

25,507,558

a

Jazz

Pharmaceuticals

plc

...............................

United

States

203,863

22,577,827

a,e

Marinus

Pharmaceuticals,

Inc.

............................

United

States

1,200,781

1,693,101

a

Ocular

Therapeutix,

Inc.

................................

United

States

750,100

3,555,474

a

Pliant

Therapeutics,

Inc.

................................

United

States

253,500

2,996,370

a

Relmada

Therapeutics,

Inc.

..............................

United

States

275,700

1,003,548

a

Revance

Therapeutics,

Inc.

..............................

United

States

1,494,260

5,394,279

a

Structure

Therapeutics,

Inc.

,

ADR

.........................

United

States

115,464

4,553,900

a

Terns

Pharmaceuticals,

Inc.

.............................

United

States

799,126

4,035,586

132,893,230

Real

Estate

Management

&

Development

0.2%

a,c,d

Lycia

LLC

,

C

.........................................

Japan

859,370

1,754,576

Total

Common

Stocks

(Cost

$

531,848,882

)

.....................................

840,606,972

Preferred

Stocks

0.4%

Health

Care

Providers

&

Services

0.1%

a,c,d

Artiva

Biotherapeutics,

Inc.

,

B

............................

United

States

189,499

946,196

a

Life

Sciences

Tools

&

Services

0.3%

g

Sartorius

AG

,

0.26

%

...................................

Germany

9,200

2,750,653

Total

Preferred

Stocks

(Cost

$

6,268,523

)

.......................................

3,696,849

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Country

Warrants

a

Value

a

a

a

a

a

a

Warrants

0.8%

Biotechnology

0.8%

a,b,c,d

Achieve

Life

Sciences,

Inc.

,

8/31/27

.......................

United

States

2,181,025

$

863,880

a

Benitec

Biopharma,

Inc.

,

2/20/49

..........................

Australia

310,881

2,626,913

a,c

Benitec

Biopharma,

Inc.

,

2/20/49

..........................

Australia

310,881

1,446,849

a,c

Benitec

Biopharma,

Inc.

,

II

,

9/14/27

........................

Australia

7,019,473

1,681,901

6,619,543

Pharmaceuticals

0.0%

†

a

Nuvation

Bio,

Inc.

,

7/07/27

..............................

United

States

115,266

21,036

Total

Warrants

(Cost

$

600,693

)

................................................

6,640,579

Shares

Escrows

and

Litigation

Trusts

0.0%

a,c

Sanofi

SA,

Escrow

Account

..............................

France

2,333,755

—

Total

Escrows

and

Litigation

Trusts

(Cost

$

—

)

..................................

—

Total

Long

Term

Investments

(Cost

$

538,718,098

)

...............................

850,944,400

a

Short

Term

Investments

3.9%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

3.1%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

27,497,723

27,497,723

Total

Money

Market

Funds

(Cost

$

27,497,723

)

..................................

27,497,723

j

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.8%

Money

Market

Funds

0.8%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

7,029,635

7,029,635

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

7,029,635

)

............................................................

7,029,635

Total

Short

Term

Investments

(Cost

$

34,527,358

)

................................

34,527,358

a

Total

Investments

(Cost

$

573,245,456

)

101.2

%

..................................

$885,471,758

Other

Assets,

less

Liabilities

(

1.2

)

%

...........................................

(11,155,855)

Net

Assets

100.0%

...........................................................

$874,315,903

a

a

a

See

Abbreviations

on

page

52.

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

8

regarding

holdings

of

5%

voting

securities.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

See

Note

7

regarding

restricted

securities.

e

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2024.

See

Note

1

(

d

).

f

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1

(

c

).

g

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

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

(

d

)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.10

$27.01

$20.02

$13.60

$23.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.55

0.68

0.50

0.28

0.34

Net

realized

and

unrealized

gains

(losses)

...........

2.90

1.09

6.77

6.54

(9.96)

Total

from

investment

operations

....................

3.45

1.77

7.27

6.82

(9.62)

Less

distributions

from:

Net

investment

income

..........................

(0.57)

(0.68)

(0.28)

(0.40)

(0.36)

Net

asset

value,

end

of

year

.......................

$30.98

$28.10

$27.01

$20.02

$13.60

Total

return

c

...................................

12.41%

6.56%

36.63%

50.55%

(41.30)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.02%

0.97%

1.10%

1.24%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.01%

d

0.96%

d

1.10%

e

1.24%

d,e

1.17%

d,e

Net

investment

income

...........................

1.90%

2.45%

2.17%

1.71%

1.75%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$272,081

$301,153

$289,403

$176,127

$123,467

Portfolio

turnover

rate

............................

11.86%

23.76%

27.45%

49.23%

25.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$27.43

$26.45

$19.58

$13.25

$22.82

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.33

0.46

0.32

0.15

0.19

Net

realized

and

unrealized

gains

(losses)

...........

2.82

1.06

6.63

6.38

(9.70)

Total

from

investment

operations

....................

3.15

1.52

6.95

6.53

(9.51)

Less

distributions

from:

Net

investment

income

..........................

(0.46)

(0.54)

(0.08)

(0.20)

(0.06)

Net

asset

value,

end

of

year

.......................

$30.12

$27.43

$26.45

$19.58

$13.25

Total

return

c

...................................

11.60%

5.75%

35.59%

49.42%

(41.71)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.77%

1.72%

1.86%

1.99%

1.92%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.76%

d

1.71%

d

1.86%

e

1.99%

d,e

1.92%

d,e

Net

investment

income

...........................

1.16%

1.72%

1.41%

0.93%

1.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$17,371

$25,090

$30,427

$27,753

$23,391

Portfolio

turnover

rate

............................

11.86%

23.76%

27.45%

49.23%

25.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$30.45

$29.17

$21.58

$14.63

$25.22

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.73

0.79

0.64

0.39

0.54

Net

realized

and

unrealized

gains

(losses)

...........

3.15

1.24

7.31

7.05

(10.76)

Total

from

investment

operations

....................

3.88

2.03

7.95

7.44

(10.22)

Less

distributions

from:

Net

investment

income

..........................

(0.62)

(0.75)

(0.36)

(0.49)

(0.37)

Net

asset

value,

end

of

year

.......................

$33.71

$30.45

$29.17

$21.58

$14.63

Total

return

....................................

12.90%

6.99%

37.24%

51.43%

(41.02)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.67%

0.65%

0.80%

0.89%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.61%

c

0.56%

c

0.65%

0.72%

c

0.66%

c

Net

investment

income

...........................

2.34%

2.65%

2.53%

2.22%

2.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$7,995

$12,387

$4,943

$1,722

$839

Portfolio

turnover

rate

............................

11.86%

23.76%

27.45%

49.23%

25.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

April

30,

2024

2023

2022

2021

2020

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$30.23

$28.97

$21.44

$14.54

$25.20

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.67

0.80

0.60

0.33

0.41

Net

realized

and

unrealized

gains

(losses)

...........

3.13

1.18

7.24

7.01

(10.64)

Total

from

investment

operations

....................

3.80

1.98

7.84

7.34

(10.23)

Less

distributions

from:

Net

investment

income

..........................

(0.60)

(0.72)

(0.31)

(0.44)

(0.43)

Net

asset

value,

end

of

year

.......................

$33.43

$30.23

$28.97

$21.44

$14.54

Total

return

....................................

12.72%

6.86%

36.93%

50.95%

(41.15)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.77%

0.72%

0.85%

1.00%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.76%

c

0.71%

c

0.85%

d

1.00%

c,d

0.92%

c,d

Net

investment

income

...........................

2.15%

2.71%

2.39%

1.93%

2.00%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$76,028

$82,840

$87,707

$39,562

$28,334

Portfolio

turnover

rate

............................

11.86%

23.76%

27.45%

49.23%

25.60%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Country

Shares

a

Value

a

Common

Stocks

98.6%

Agricultural

Products

&

Services

1.0%

Bunge

Global

SA

.....................................

United

States

23,700

$

2,411,712

a

Darling

Ingredients,

Inc.

................................

United

States

37,200

1,576,164

3,987,876

Construction

&

Engineering

1.0%

a

Cadeler

A/S

,

ADR

.....................................

Denmark

124,324

2,313,670

a

Centuri

Holdings,

Inc.

..................................

United

States

64,500

1,596,375

3,910,045

Construction

Materials

1.1%

Martin

Marietta

Materials,

Inc.

............................

United

States

7,000

4,109,490

Copper

7.0%

Antofagasta

plc

.......................................

Chile

122,800

3,368,891

a

Capstone

Copper

Corp.

................................

Canada

470,500

3,256,848

a

ERO

Copper

Corp.

....................................

Brazil

188,300

3,839,173

Freeport-McMoRan,

Inc.

................................

United

States

239,700

11,970,618

Lundin

Mining

Corp.

...................................

Chile

336,800

3,845,648

26,281,178

Diversified

Chemicals

0.9%

Huntsman

Corp.

......................................

United

States

133,900

3,194,854

Diversified

Metals

&

Mining

6.1%

a

Aclara

Resources,

Inc.

.................................

United

Kingdom

489,200

206,091

a,b

Aclara

Resources,

Inc.

,

144A

............................

United

Kingdom

510,754

215,172

Anglo

American

plc

....................................

South

Africa

78,100

2,552,315

c

BHP

Group

Ltd.

,

ADR

..................................

Australia

106,300

5,863,508

Glencore

plc

.........................................

Australia

334,000

1,943,556

a

MP

Materials

Corp.

....................................

United

States

90,000

1,440,000

Rio

Tinto

plc

,

ADR

.....................................

Australia

70,400

4,775,232

South32

Ltd.

.........................................

Australia

565,300

1,289,622

Teck

Resources

Ltd.

,

B

.................................

Canada

90,200

4,436,938

22,722,434

Electrical

Components

&

Equipment

1.1%

a

Fluence

Energy,

Inc.

...................................

United

States

74,000

1,320,160

a

Freyr

Battery,

Inc.

.....................................

Norway

513,600

847,440

a

NEXTracker,

Inc.

,

A

....................................

United

States

23,100

988,449

a

Shoals

Technologies

Group,

Inc.

,

A

........................

United

States

99,600

841,620

3,997,669

Environmental

&

Facilities

Services

0.0%

†

a

Li-Cycle

Holdings

Corp.

.................................

Canada

173,800

113,856

a

Fertilizers

&

Agricultural

Chemicals

2.1%

Corteva,

Inc.

.........................................

United

States

78,000

4,222,140

Nutrien

Ltd.

..........................................

Canada

71,400

3,767,778

7,989,918

Gold

6.3%

Agnico

Eagle

Mines

Ltd.

................................

Canada

80,800

5,116,502

Alamos

Gold,

Inc.

,

A

...................................

Canada

297,000

4,368,440

B2Gold

Corp.

........................................

Canada

326,200

824,533

Barrick

Gold

Corp.

....................................

Canada

312,400

5,198,336

Newmont

Corp.

.......................................

United

States

191,400

7,778,496

23,286,307

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Heavy

Electrical

Equipment

0.1%

a

TPI

Composites,

Inc.

...................................

United

States

116,500

$

370,470

a

Industrial

Gases

2.4%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

20,200

4,774,068

Linde

plc

............................................

United

States

9,400

4,145,024

8,919,092

Industrial

Machinery

&

Supplies

&

Components

0.7%

Xylem,

Inc.

..........................................

United

States

19,900

2,600,930

Integrated

Oil

&

Gas

16.5%

Chevron

Corp.

.......................................

United

States

98,800

15,933,476

Exxon

Mobil

Corp.

.....................................

United

States

125,100

14,795,577

Occidental

Petroleum

Corp.

.............................

United

States

94,900

6,276,686

Shell

plc

,

ADR

........................................

United

States

135,200

9,688,432

Suncor

Energy,

Inc.

....................................

Canada

234,000

8,928,288

TotalEnergies

SE

,

ADR

.................................

France

78,610

5,696,867

61,319,326

Metal,

Glass

&

Plastic

Containers

1.2%

Ball

Corp.

...........................................

United

States

39,800

2,768,886

Crown

Holdings,

Inc.

...................................

United

States

22,100

1,813,747

4,582,633

Oil

&

Gas

Drilling

2.0%

Helmerich

&

Payne,

Inc.

................................

United

States

45,100

1,773,783

Patterson-UTI

Energy,

Inc.

..............................

United

States

348,724

3,773,194

a

Precision

Drilling

Corp.

.................................

Canada

28,600

2,007,148

7,554,125

Oil

&

Gas

Equipment

&

Services

11.0%

Baker

Hughes

Co.

,

A

...................................

United

States

117,500

3,832,850

Cactus,

Inc.

,

A

........................................

United

States

35,300

1,752,292

ChampionX

Corp.

.....................................

United

States

50,700

1,701,999

Halliburton

Co.

.......................................

United

States

121,700

4,560,099

Liberty

Energy,

Inc.

,

A

..................................

United

States

99,900

2,197,800

a

Nine

Energy

Service,

Inc.

...............................

United

States

105,492

227,863

a

Oceaneering

International,

Inc.

...........................

United

States

91,800

2,103,138

a

Oil

States

International,

Inc.

.............................

United

States

103,700

413,763

Ranger

Energy

Services,

Inc.

,

A

..........................

United

States

272,400

2,680,416

Schlumberger

NV

.....................................

United

States

186,700

8,864,516

Schoeller-Bleckmann

Oilfield

Equipment

AG

.................

Austria

17,600

856,155

Select

Water

Solutions,

Inc.

,

A

............................

United

States

211,500

1,954,260

Technip

Energies

NV

...................................

France

76,999

1,813,497

TechnipFMC

plc

......................................

United

Kingdom

309,600

7,931,952

40,890,600

Oil

&

Gas

Exploration

&

Production

22.5%

Aker

BP

ASA

.........................................

Norway

106,000

2,570,915

Canadian

Natural

Resources

Ltd.

.........................

Canada

149,500

11,328,012

ConocoPhillips

.......................................

United

States

138,600

17,410,932

Coterra

Energy,

Inc.

...................................

United

States

218,600

5,980,896

Devon

Energy

Corp.

...................................

United

States

126,700

6,484,506

EOG

Resources,

Inc.

..................................

United

States

88,800

11,733,144

EQT

Corp.

..........................................

United

States

49,400

1,980,446

Hess

Corp.

..........................................

United

States

51,100

8,047,739

Matador

Resources

Co.

................................

United

States

48,900

3,046,470

Ovintiv,

Inc.

..........................................

United

States

27,400

1,406,168

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Oil

&

Gas

Exploration

&

Production

(continued)

Permian

Resources

Corp.

,

A

.............................

United

States

197,200

$

3,303,100

Pioneer

Natural

Resources

Co.

...........................

United

States

33,101

8,914,761

Tourmaline

Oil

Corp.

...................................

Canada

40,000

1,954,748

84,161,837

Oil

&

Gas

Refining

&

Marketing

6.1%

Marathon

Petroleum

Corp.

..............................

United

States

47,700

8,668,044

Phillips

66

...........................................

United

States

57,900

8,291,859

Valero

Energy

Corp.

...................................

United

States

36,600

5,851,242

22,811,145

Oil

&

Gas

Storage

&

Transportation

7.2%

Cheniere

Energy,

Inc.

..................................

United

States

16,300

2,572,466

Enbridge,

Inc.

........................................

Canada

66,600

2,366,964

Kinder

Morgan,

Inc.

....................................

United

States

275,900

5,043,452

New

Fortress

Energy,

Inc.

...............................

United

States

76,000

1,991,200

Targa

Resources

Corp.

.................................

United

States

40,800

4,653,648

TC

Energy

Corp.

......................................

Canada

134,200

4,811,070

Williams

Cos.,

Inc.

(The)

................................

United

States

143,600

5,508,496

26,947,296

Packaged

Foods

&

Meats

0.3%

Lamb

Weston

Holdings,

Inc.

.............................

United

States

11,400

950,076

Paper

&

Plastic

Packaging

Products

&

Materials

0.6%

Packaging

Corp.

of

America

.............................

United

States

12,500

2,162,250

Specialty

Chemicals

0.8%

Albemarle

Corp.

......................................

United

States

20,000

2,406,200

Neo

Performance

Materials,

Inc.

..........................

Canada

23,600

97,880

b

Neo

Performance

Materials,

Inc.

,

144A

.....................

Canada

85,000

352,533

2,856,613

Steel

0.6%

Vale

SA

,

ADR

,

B

......................................

Brazil

199,400

2,426,698

Total

Common

Stocks

(Cost

$

210,555,964

)

.....................................

368,146,718

a

Convertible

Preferred

Stocks

0.4%

Specialty

Chemicals

0.4%

Albemarle

Corp.

,

7.25

%

................................

United

States

30,800

1,689,996

Total

Convertible

Preferred

Stocks

(Cost

$

1,540,000

)

............................

1,689,996

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

792,970

Total

Warrants

(Cost

$

88,605

)

.................................................

792,970

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

0.3%

Oil

&

Gas

Equipment

&

Services

0.3%

Oil

States

International,

Inc.

,

Senior

Note

,

4.75

%

,

4/01/26

.......

United

States

1,200,000

$

1,119,600

Total

Convertible

Bonds

(Cost

$

1,200,000

)

.....................................

1,119,600

Total

Long

Term

Investments

(Cost

$

213,384,569

)

...............................

371,749,284

a

Short

Term

Investments

1.8%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.3%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

996,110

996,110

Total

Money

Market

Funds

(Cost

$

996,110

)

.....................................

996,110

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.5%

Money

Market

Funds

1.5%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

5,847,240

5,847,240

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$

5,847,240

)

.................................................................

5,847,240

Total

Short

Term

Investments

(Cost

$

6,843,350

)

.................................

6,843,350

a

Total

Investments

(Cost

$

220,227,919

)

101.3

%

..................................

$378,592,634

Other

Assets,

less

Liabilities

(

1.3

)

%

...........................................

(5,117,885)

Net

Assets

100.0%

...........................................................

$373,474,749

See

Abbreviations

on

page

52

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

April

30,

2024,

the

aggregate

value

of

these

securities

was

$567,705,

representing

0.2%

of

net

assets.

c

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2024.

See

Note

1(d).

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

f

See

Note

1(d)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

..................................................

$528,718,076

$213,384,569

Cost

-

Non-controlled

affiliates

(Note

3f

and

8)

...................................

44,527,380

6,843,350

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$6,724,271

and

$5,565,644,

respectively)

............................................................

$840,505,820

$371,749,284

Value

-

Non-controlled

affiliates

(Note

3f

and

8)

..................................

44,965,938

6,843,350

Foreign

currency,

at

value

(cost

$–

and

$83,926

,

respectively)

........................

—

83,926

Receivables:

Investment

securities

sold

..................................................

298,550

1,137,565

Capital

shares

sold

.......................................................

236,664

303,555

Dividends

and

interest

....................................................

27,562

339,659

European

Union

tax

reclaims

(Note

1

e

)

........................................

—

84,684

Due

from

custodian

.......................................................

26,250

—

Total

assets

.........................................................

886,060,784

380,542,023

Liabilities:

Payables:

Investment

securities

purchased

.............................................

2,960,733

238,396

Capital

shares

redeemed

..................................................

722,519

471,490

Management

fees

........................................................

432,449

159,310

Distribution

fees

.........................................................

169,495

72,007

Transfer

agent

fees

.......................................................

224,404

161,091

Trustees'

fees

and

expenses

................................................

48

32

Payable

upon

return

of

securities

loaned

(Note

1

d

)

.................................

7,055,885

5,847,240

Accrued

expenses

and

other

liabilities

..........................................

179,348

117,708

Total

liabilities

........................................................

11,744,881

7,067,274

Net

assets,

at

value

................................................

$874,315,903

$373,474,749

Net

assets

consist

of:

Paid-in

capital

............................................................

$524,578,046

$404,056,929

Total

distributable

earnings

(losses)

............................................

349,737,857

(30,582,180)

Net

assets,

at

value

................................................

$874,315,903

$373,474,749

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

April

30,

2024

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Class

A:

Net

assets,

at

value

......................................................

$705,300,634

$272,080,666

Shares

outstanding

.......................................................

5,327,728

8,783,776

Net

asset

value

per

share

a,b

.................................................

$132.38

$30.98

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

b

...............

$140.08

$32.78

Class

C:

Net

assets,

at

value

......................................................

$27,331,590

$17,370,983

Shares

outstanding

.......................................................

225,485

576,705

Net

asset

value

and

maximum

offering

price

per

share

a,b

...........................

$121.21

$30.12

Class

R6:

Net

assets,

at

value

......................................................

$10,333,496

$7,994,862

Shares

outstanding

.......................................................

73,323

237,180

Net

asset

value

and

maximum

offering

price

per

share

b

............................

$140.93

$33.71

Advisor

Class:

Net

assets,

at

value

......................................................

$131,350,183

$76,028,238

Shares

outstanding

.......................................................

947,222

2,274,453

Net

asset

value

and

maximum

offering

price

per

share

b

............................

$138.67

$33.43

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

b

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,225

and

$827,951,

respectively)

Unaffiliated

issuers

.......................................................

$4,034,748

$10,838,885

Non-controlled

affiliates

(Note

3f

and

8)

........................................

822,786

141,287

Interest:

Unaffiliated

issuers

.......................................................

—

57,000

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

....................................

(134,788)

(113,931)

Non-controlled

affiliates

(Note

3

f

)

............................................

499,794

119,427

Other

income

(Note

1

e

)

.....................................................

—

74,508

Total

investment

income

..................................................

5,222,540

11,117,176

Expenses:

Management

fees

(Note

3

a

)

..................................................

5,080,689

1,964,575

Distribution

fees:

(Note

3c

)

    Class

A

...............................................................

1,693,993

685,447

    Class

C

...............................................................

274,435

207,381

Transfer

agent

fees:

(Note

3e

)

    Class

A

...............................................................

962,022

492,458

    Class

C

...............................................................

39,074

37,455

    Class

R6

..............................................................

11,016

7,148

    Advisor

Class

...........................................................

158,764

138,684

Custodian

fees

(Note

4)

.....................................................

15,376

4,171

Reports

to

shareholders

fees

.................................................

119,801

67,468

Registration

and

filing

fees

...................................................

78,026

100,903

Professional

fees

..........................................................

90,223

63,442

Trustees'

fees

and

expenses

.................................................

9,706

4,064

Interest

expense

..........................................................

—

2,242

Other

...................................................................

41,376

35,482

Total

expenses

........................................................

8,574,501

3,810,920

Expense

reductions

(Note

4)

..............................................

(287)

(573)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

.............................

(94,525)

(21,012)

Net

expenses

........................................................

8,479,689

3,789,335

Net

investment

income

(loss)

...........................................

(3,257,149)

7,327,841

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

73,600,279

6,136,497

Non-controlled

affiliates

(Note

3

f

and

8

)

......................................

(3,332,875)

—

Foreign

currency

transactions

...............................................

3,139

19,041

Net

realized

gain

(loss)

.................................................

70,270,543

6,155,538

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

61,407,395

28,216,744

Non-controlled

affiliates

(Note

3

f

and

8

)

......................................

3,920,980

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

.............

(23)

(11,585)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

65,328,352

28,205,159

Net

realized

and

unrealized

gain

(loss)

...........................................

135,598,895

34,360,697

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$132,341,746

$41,688,538

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

T

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(3,257,149)

$(3,661,842)

$7,327,841

$10,632,094

Net

realized

gain

(loss)

............

70,270,543

27,149,552

6,155,538

11,835,014

Net

change

in

unrealized

appreciation

(depreciation)

.................

65,328,352

58,889,212

28,205,159

1,604,535

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

132,341,746

82,376,922

41,688,538

24,071,643

Distributions

to

shareholders:

Class

A

........................

—

(904,691)

(5,286,235)

(7,499,623)

Class

C

........................

—

—

(316,747)

(603,835)

Class

R6

.......................

—

(47,834)

(165,584)

(157,126)

Advisor

Class

...................

—

(416,127)

(1,479,563)

(2,191,684)

Total

distributions

to

shareholders

.....

—

(1,368,652)

(7,248,129)

(10,452,268)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(90,765,519)

(85,965,290)

(54,180,676)

1,741,488

Class

C

........................

(6,308,260)

(7,011,858)

(9,396,377)

(6,228,814)

Class

R6

.......................

(2,922,785)

997,279

(5,139,233)

7,004,889

Advisor

Class

...................

3,565,328

(10,783,345)

(13,718,926)

(7,147,183)

Total

capital

share

transactions

.......

(96,431,236)

(102,763,214)

(82,435,212)

(4,629,620)

Net

increase

(decrease)

in

net

assets

.....................

35,910,510

(21,754,944)

(47,994,803)

8,989,755

Net

assets:

Beginning

of

year

..................

838,405,393

860,160,337

421,469,552

412,479,797

End

of

year

......................

$874,315,903

$838,405,393

$373,474,749

$421,469,552

Franklin

Strategic

Series

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

ten separate

funds,

two

of

which

are

included

in

this

report

(Funds).

The

Funds follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

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

and

certain

preferred

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,

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

39

franklintempleton.com

Annual

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

April

30,

2024,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Purchased

on

a

Delayed

Delivery

Basis

Certain

or

all

Funds

purchase

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities, they

may

sell

the

securities

before

the

settlement

date.

d.

Securities

Lending

Certain

or

all

Funds

participate

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds,

and/or

uninvested

cash

as

included

in

due

from

custodian

in

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

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.

e.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

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

April

30,

2024, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Lending

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

by

the Trust against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the Trust,

on

behalf

of

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

April

30,

2024,

there

were

an

unlimited

number

of

shares

authorized

(without

par value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2024

Shares

sold

a

...................................

527,209

$62,920,528

1,264,920

$36,259,069

Shares

issued

in

reinvestment

of

distributions

..........

—

—

182,021

5,214,902

Shares

redeemed

...............................

(1,302,203)

(153,686,047)

(3,381,617)

(95,654,647)

Net

increase

(decrease)

..........................

(774,994)

$(90,765,519)

(1,934,676)

$(54,180,676)

Year

ended

April

30,

2023

Shares

sold

a

...................................

412,448

$42,946,165

3,647,273

$101,114,332

Shares

issued

in

reinvestment

of

distributions

..........

8,033

859,459

265,105

7,409,681

Shares

redeemed

...............................

(1,245,319)

(129,770,914)

(3,910,363)

(106,782,525)

Net

increase

(decrease)

..........................

(824,838)

$(85,965,290)

2,015

$1,741,488

Class

C

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

42

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the Trust are

also

officers

and/or

directors

of

the

following

subsidiaries:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Year

ended

April

30,

2024

Shares

sold

...................................

41,225

$4,441,865

110,262

$3,039,841

Shares

issued

in

reinvestment

of

distributions

..........

—

—

11,174

312,200

Shares

redeemed

a

..............................

(100,695)

(10,750,125)

(459,372)

(12,748,418)

Net

increase

(decrease)

..........................

(59,470)

$(6,308,260)

(337,936)

$(9,396,377)

Year

ended

April

30,

2023

Shares

sold

...................................

23,788

$2,280,883

401,440

$10,974,990

Shares

issued

in

reinvestment

of

distributions

..........

—

—

21,669

592,875

Shares

redeemed

a

..............................

(97,280)

(9,292,741)

(658,964)

(17,796,679)

Net

increase

(decrease)

..........................

(73,492)

$(7,011,858)

(235,855)

$(6,228,814)

Class

R6

Class

R6

Shares:

Year

ended

April

30,

2024

Shares

sold

...................................

17,791

$2,320,133

78,008

$2,420,818

Shares

issued

in

reinvestment

of

distributions

..........

—

—

5,317

165,584

Shares

redeemed

...............................

(42,450)

(5,242,918)

(252,929)

(7,725,635)

Net

increase

(decrease)

..........................

(24,659)

$(2,922,785)

(169,604)

$(5,139,233)

Year

ended

April

30,

2023

Shares

sold

...................................

56,562

$6,304,709

343,698

$10,093,852

Shares

issued

in

reinvestment

of

distributions

..........

405

45,955

5,194

157,126

Shares

redeemed

...............................

(47,951)

(5,353,385)

(111,579)

(3,246,089)

Net

increase

(decrease)

..........................

9,016

$997,279

237,313

$7,004,889

Advisor

Class

Advisor

Class

Shares:

Year

ended

April

30,

2024

Shares

sold

...................................

290,098

$38,622,153

654,979

$20,559,328

Shares

issued

in

reinvestment

of

distributions

..........

—

—

47,545

1,468,672

Shares

redeemed

...............................

(283,878)

(35,056,825)

(1,168,531)

(35,746,926)

Net

increase

(decrease)

..........................

6,220

$3,565,328

(466,007)

$(13,718,926)

Year

ended

April

30,

2023

Shares

sold

...................................

243,071

$26,463,616

924,804

$27,535,454

Shares

issued

in

reinvestment

of

distributions

..........

3,436

384,000

72,395

2,174,756

Shares

redeemed

...............................

(345,613)

(37,630,961)

(1,283,885)

(36,857,393)

Net

increase

(decrease)

..........................

(99,106)

$(10,783,345)

(286,686)

$(7,147,183)

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

43

franklintempleton.com

Annual

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

year

ended

April

30,

2024,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

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

0.775%

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

........

0.613%

0.516%

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

44

franklintempleton.com

Annual

Report

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of the

Fund's

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

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.

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

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2023,

the

fees

are

based

on

a

fixed

margin

earned

by

Investor

Services

and

are

allocated

to

the

Funds based

upon

relative

assets

and

relative

transactions.

Prior

to

October

1,

2023,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.016%

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

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

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

..................

$49,223

$23,583

CDSC

retained

...........................

$11,554

$3,448

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

45

franklintempleton.com

Annual

Report

For

the

year ended

April

30,

2024,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services: 

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

April

30,

2024,

investments

in

affiliated

management

investment

companies

were

as

follows:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Transfer

agent

fees

........................

$365,750

$241,873

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$16,832,344

$261,745,720

$(251,080,341)

$—

$—

$27,497,723

27,497,723

$822,786

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$2,337,680

$143,306,182

$(138,614,227)

$—

$—

$7,029,635

7,029,635

$499,794

Total

Affiliated

Securities

...

$19,170,024

$405,051,902

$(389,694,568)

$—

$—

$34,527,358

$1,322,580

Franklin

Natural

Resources

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$631,197

$82,549,402

$(82,184,489)

$—

$—

$996,110

996,110

$141,287

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

$684,160

$80,811,148

$(75,648,068)

$—

$—

$5,847,240

5,847,240

$119,427

Total

Affiliated

Securities

...

$1,315,357

$163,360,550

$(157,832,557)

$—

$—

$6,843,350

$260,714

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

46

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

Transfer

agent

fees

on

Class

R6

shares

of

the

Funds have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

August

31,

2024.

4.

Expense

Offset

Arrangement

The Funds have

previously

entered

into

an

arrangement

with their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

year

ended

April

30,

2024,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations. Effective

July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2024,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

April

30,

2024,

the

utilized

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2024

and

2023,

was

as

follows:

Franklin

Natural

Resources

Fund

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

2,943,242

Long

term

.............................

188,124,991

Total

capital

loss

carryforwards

............

$191,068,233

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Capital

loss

utilized

carryforwards

....

$22,984,059

$6,668,527

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

2024

2023

2024

2023

Distributions

paid

from:

Ordinary

income

........................

$—

$1,368,652

$7,248,129

$10,452,268

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

47

franklintempleton.com

Annual

Report

At

April

30,

2024,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

ordinary

income

and

undistributed

long

term

capital

gains for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

passive

foreign

investment

company

shares,

corporate

actions

and

net

operating

losses.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

April

30,

2024,

were

as

follows:

At

April

30,

2024,

in

connection

with

securities

lending

transactions,

certain

or

all

Funds

loaned

investments

and

received

cash

collateral

as

follows:

7.

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.

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

a

a

a

Cost

of

investments

.......................

$579,085,569

$227,707,609

Unrealized

appreciation

.....................

$387,460,982

$174,972,288

Unrealized

depreciation

.....................

(81,074,793)

(24,087,263)

Net

unrealized

appreciation

(depreciation)

.......

$306,386,189

$150,885,025

Distributable

earnings:

Undistributed

ordinary

income

................

$5,203,945

$7,346,686

Undistributed

long

term

capital

gains

...........

38,147,748

—

Total

distributable

earnings

..................

$43,351,693

$7,346,686

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Purchases

..............................

$291,226,333

$44,984,361

Sales

..................................

$397,916,581

$128,287,417

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Securities

lending

transactions

a

:

Equity

investments

b

........................

$7,055,885

$5,847,240

a

The

agreements

can

be

terminated

at

any

time.

b

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statements

of

Assets

and

Liabilities.

5.

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

48

franklintempleton.com

Annual

Report

At

April

30,

2024,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2024,

investments

in

“affiliated

companies”

were

as

follows:

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Biotechnology

Discovery

Fund

2,181,025

a

Achieve

Life

Sciences,

Inc.,

8/31/27

..............

2/29/24

$

22

$

863,880

189,499

Artiva

Biotherapeutics,

Inc.,

B

...................

2/22/21

2,084,489

946,196

208,334

b

Benitec

Biopharma

Inc

........................

4/18/24

1,000,003

1,523,062

859,370

Lycia

LLC

.................................

4/26/24

1,754,576

1,754,576

408,971

Oruka

Therapeutics,

Inc.

......................

4/03/24

2,429,370

6,207,577

Total

Restricted

Securities

(Value

is

1.3%

of

Net

Assets)

..............

$7,268,460

$11,295,291

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$9,574,700

as

of

April

30,

2024.

b

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$8,838,958

as

of

April

30,

2024.

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants

Held

at

End

of

Year

Investment

Income

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Achieve

Life

Sciences

Inc

$

—

$

10,000,000

$

—

$

—

$

(425,300)

$

9,574,700

2,181,025

$

—

Achieve

Life

Sciences,

Inc.,

2/20/49

......

—

22

(22)

22

863,858

863,880

2,181,025

—

Applied

Therapeutics,

Inc.

4,392,892

(953,946)

(5,615,521)

(3,332,897)

5,509,472

—

a

—

—

Applied

Therapeutics,

Inc.,

6/27/27

.

.........

1,457,250

—

—

—

(1,457,250)

—

a

—

—

Applied

Therapeutics,

Inc.,

6/27/27

..........

1,383,719

—

(813,919)

—

(569,800)

—

a

—

—

Artiva

Biotherapeutics,

Inc.,

B

..........

829,888

—

—

—

—

b

—

b

—

b

—

Benitec

Biopharma,

Inc.

1,247,436

—

—

—

—

b

—

b

—

b

—

Benitec

Biopharma,

Inc.,

II,

9/14/27

..........

366,803

—

—

—

—

b

—

b

—

b

—

Total

Affiliated

Securities

(Value

is

1.2%

of

Net

Assets)

..........

$9,677,988

$9,046,076

$(6,429,462)

$(3,332,875)

$3,920,980

$10,438,580

$—

a

As

of

April

30,

2024,

no

longer

held

by

the

fund.

7.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

49

franklintempleton.com

Annual

Report

9.

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

January

31,

2025.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

April

30,

2024,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

April

30,

2024,

in

valuing

the

Funds'

assets carried

at

fair

value,

is

as

follows:

b

As

of

April

30,

2024,

no

longer

an

affiliate.

Level

1

Level

2

Level

3

Total

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Biotechnology

.........................

$

648,359,225

$

12,045,783

$

8,131,983

$

668,536,991

Health

Care

Providers

&

Services

..........

5,820,588

—

—

5,820,588

Life

Sciences

Tools

&

Services

............

29,426,176

2,175,411

—

31,601,587

Pharmaceuticals

.......................

125,730,089

7,163,141

—

132,893,230

Real

Estate

Management

&

Development

....

—

—

1,754,576

1,754,576

Preferred

Stocks

:

Health

Care

Providers

&

Services

..........

—

—

946,196

946,196

Life

Sciences

Tools

&

Services

............

—

2,750,653

—

2,750,653

Warrants

:

Biotechnology

.........................

—

2,626,913

3,992,630

6,619,543

Pharmaceuticals

.......................

21,036

—

—

21,036

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

50

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

April

30,

2024,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Biotechnology

Discovery

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Short

Term

Investments

...................

$

34,527,358

$

—

$

—

$

34,527,358

Total

Investments

in

Securities

...........

$843,884,472

$26,761,901

b

$14,825,385

$885,471,758

Level

1

Level

2

Level

3

Total

Franklin

Natural

Resources

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Agricultural

Products

&

Services

...........

$

3,987,876

$

—

$

—

$

3,987,876

Construction

&

Engineering

...............

3,910,045

—

—

3,910,045

Construction

Materials

..................

4,109,490

—

—

4,109,490

Copper

..............................

22,912,287

3,368,891

—

26,281,178

Diversified

Chemicals

...................

3,194,854

—

—

3,194,854

Diversified

Metals

&

Mining

...............

16,936,941

5,785,493

—

22,722,434

Electrical

Components

&

Equipment

........

3,997,669

—

—

3,997,669

Environmental

&

Facilities

Services

.........

113,856

—

—

113,856

Fertilizers

&

Agricultural

Chemicals

.........

7,989,918

—

—

7,989,918

Gold

................................

23,286,307

—

—

23,286,307

Heavy

Electrical

Equipment

..............

370,470

—

—

370,470

Industrial

Gases

.......................

8,919,092

—

—

8,919,092

Industrial

Machinery

&

Supplies

&

Components

2,600,930

—

—

2,600,930

Integrated

Oil

&

Gas

....................

61,319,326

—

—

61,319,326

Metal,

Glass

&

Plastic

Containers

..........

4,582,633

—

—

4,582,633

Oil

&

Gas

Drilling

......................

7,554,125

—

—

7,554,125

Oil

&

Gas

Equipment

&

Services

...........

38,220,948

2,669,652

—

40,890,600

Oil

&

Gas

Exploration

&

Production

.........

81,590,922

2,570,915

—

84,161,837

Oil

&

Gas

Refining

&

Marketing

............

22,811,145

—

—

22,811,145

Oil

&

Gas

Storage

&

Transportation

.........

26,947,296

—

—

26,947,296

Packaged

Foods

&

Meats

................

950,076

—

—

950,076

Paper

&

Plastic

Packaging

Products

&

Materials

2,162,250

—

—

2,162,250

Specialty

Chemicals

....................

2,856,613

—

—

2,856,613

Steel

................................

2,426,698

—

—

2,426,698

Convertible

Preferred

Stocks

...............

1,689,996

—

—

1,689,996

Warrants

..............................

792,970

—

—

792,970

Convertible

Bonds

.......................

—

1,119,600

—

1,119,600

Short

Term

Investments

...................

6,843,350

—

—

6,843,350

Total

Investments

in

Securities

...........

$363,078,083

$15,514,551

c

$—

$378,592,634

a

Includes

financial

instruments

determined

to

have

no

value.

b

Includes

foreign

securities

valued

at

$4,926,064,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

c

Includes

foreign

securities

valued

at

$14,394,951,

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.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

51

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

April

30,

2024,

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Biotechnology

......

$

—

$

3,429,372

c

$

(52,190)

$

—

$

—

$

—

$

52,190

$

4,702,611

$

8,131,983

$

4,702,611

Real

Estate

Management

&

Development

.....

—

1,754,576

—

—

—

—

—

—

1,754,576

—

Convertible

Preferred

Stocks

:

Biotechnology

......

1,435,375

2,336,873

(4,425,853)

—

—

—

(15)

653,620

—

—

Preferred

Stocks

:

Health

Care

Providers

&

Services

........

829,888

—

—

—

—

—

—

116,308

946,196

116,308

Warrants

:

Biotechnology

......

1,824,053

53

(22)

c

—

—

—

22

2,168,524

3,992,630

3,625,775

Escrows

and

Litigation

Trusts

:

—

c

—

(776,290)

—

—

—

766,542

9,748

—

c

—

Total

Investments

in

Securities

............

$4,089,316

$7,520,874

$(5,254,355)

$—

$—

$—

$818,739

$7,650,811

$14,825,385

$8,444,694

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.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Biotechnology.

.

.

.

.

.

.

.

.

.

.

.

.

$6,207,577

Discount

for

lack

of

marketability

Asset

Price

$2.1

Increase

Discount

for

lack

of

marketability

6.3%

Decrease

All

Other

Investments

.

.

.

.

.

.

.

8,617,808

b,c

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$14,825,385

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

52

franklintempleton.com

Annual

Report

11.

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

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

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

b

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

c

Includes

financial

instruments

determined

to

have

no

value.

Selected

Portfolio

ADR

American

Depositary

Receipt

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

53

franklintempleton.com

Annual

Report

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Biotechnology

Discovery

Fund

and

Franklin

Natural

Resources

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Biotechnology

Discovery

Fund

and

Franklin

Natural

Resources

Fund

(two

of

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

April

30,

2024,

the

related

statements

of

operations

for

the

year

ended

April

30,

2024,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

April

30,

2024,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2024

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

June

20,

2024

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

54

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2024:

Pursuant

to:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$3,405,717

$6,362,611

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$4,006,085

$10,671,861

Section

163(j)

Interest

Dividends

Earned

§163(j)

—

$36,201

Franklin

Strategic

Series

Board

Members

and

Officers

55

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

117

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

117

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

117

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

56

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

117

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-2023),

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

117

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

The

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

117

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

57

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

107

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016)

and

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Gregory

E.

Johnson

2

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

2023

and

Trustee

since

2013

126

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

Rupert

H.

Johnson,

Jr.

3

(1940)

Trustee

Since

1991

117

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Franklin

Templeton

Fund

Adviser,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006-2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005-2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

58

franklintempleton.com

Annual

Report

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

1.

Information

is

for

the

calendar

year

ended

December

31,

2023,

unless

otherwise

noted.

We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

2.

Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

3.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Christopher

Kings

(1974)

Chief

Executive

Officer

–

Finance

and

Administration

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Jeffrey

W.

White

(1971)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Financial

Officer,

Chief

Accounting

Officer

&

Treasurer

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Director

and

Assistant

Treasurer

within

Franklin

Templeton

Global

Fund

Tax

and

Fund

Administration

and

Financial

Reporting

(2017-2023).

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

59

franklintempleton.com

Annual

Report

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

60

franklintempleton.com

Annual

Report

BOARD

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENTS

FRANKLIN

STRATEGIC

SERIES

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

16,

2024

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters,

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined,

through

the

exercise

of

its

business

judgment,

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

the

ongoing

integration

of

the

Putnam

family

of

funds

into

the

FT

family

of

funds

and

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

continued

reassessment

of

the

fund

offerings

in

response

to

FT

acquisitions

and

the

Franklin

Strategic

Series

Shareholder

Information

61

franklintempleton.com

Annual

Report

market

environment,

as

well

as

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement,

including

its

initiative

to

create

a

new

enterprise-wide

artificial

intelligence

platform.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2023.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Biotechnology

Discovery

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

health/biotechnology

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

above

the

median

and

in

the

first

(best)

quintile

of

its

Performance

Universe,

but

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

biotechnology

companies

and

discovery

research

firms,

while

the

Performance

Universe

is

comprised

mostly

of

general

healthcare

funds,

noting

that

healthcare

securities

outperformed

biotechnology

securities

during

the

reporting

periods.

Management

also

noted

that

the

Fund

outperformed

its

benchmark

and

narrow

peer

group

of

biotechnology-

only

sector

funds

in

the

one-

and

five-year

periods

ending

December

31,

2023.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

ending

December

31,

2023

was

18.40%.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Natural

Resources

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

global

natural

resources

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

each

of

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Biotechnology

Discovery

Fund

included

the

Fund

and

eight

other

health/

biotechnology

funds.

The

Expense

Group

for

the

Franklin

Natural

Resources

Fund

included

the

Fund,

five

other

global

natural

resources

funds

and

three

natural

resources

funds.

The

Board

noted

that

the

Management

Rates

and

actual

Franklin

Strategic

Series

Shareholder

Information

62

franklintempleton.com

Annual

Report

total

expense

ratios

for

the

Funds

were

below

the

medians

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

the

Funds

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2023,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

an

independent

registered

public

accounting

firm

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Franklin

Biotechnology

Discovery

Fund

had

experienced

a

significant

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Franklin

Strategic

Series

Shareholder

Information

63

franklintempleton.com

Annual

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

A

06/24

©

2024

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

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franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Income

Fund

A

Series

of

Franklin

Strategic

Series

April

30,

2024

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

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Franklin

Strategic

Series

1

franklintempleton.com

Annual

Report

SHAREHOLDER

LETTER

Dear

Shareholder:

We

are

pleased

to

provide

the

annual

report

of

Franklin

Strategic

Income

Fund

for

the

12-month

reporting

period

ended

April

30,

2024.

Please

read

on

for

a

detailed

look

at

prevailing

economic

and

market

conditions

during

the

Fund’s

reporting

period

and

to

learn

how

those

conditions

have

affected

Fund

performance.

As

always,

we

remain

committed

to

providing

you

with

excellent

service

and

a

full

spectrum

of

investment

choices.

We

also

remain

committed

to

supplementing

the

support

you

receive

from

your

financial

advisor.

One

way

we

accomplish

this

is

through

our

website,

www.franklintempleton

.

com

.

Here

you

can

gain

immediate

access

to

market

and

investment

information,

including:

•

Fund

prices

and

performance;

•

Market

insights

and

commentaries

from

our

portfolio

Managers;

and

•

A

host

of

educational

resources.

We

look

forward

to

helping

you

meet

your

financial

goals.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

CFA

®

is

a

trademark

owned

by

CFA

Institute.

franklintempleton.com

Annual

Report

2

Contents

Fund

Overview

3

Performance

Summary

5

Your

Fund’s

Expenses

8

Financial

Highlights

and

Schedule

of

Investments

9

Financial

Statements

112

Notes

to

Financial

Statements

117

Report

of

Independent

Registered

Public

Accounting

Firm

137

Tax

Information

138

Board

Members

and

Officers

139

Shareholder

Information

144

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

Fund

Overview

Q.

What

is

the

Fund's

investment

strategy?

A.

The

Fund

seeks

to

earn

a

high

level

of

current

income.

A

secondary

goal

is

capital

appreciation

over

the

long

term.

We

use

an

active

asset

allocation

strategy

to

try

to

achieve

the

Fund’s

investment

goals.

We

employ

a

top-down

analysis

of

macroeconomic

trends

combined

with

a

bottom-

up

fundamental

analysis

of

market

sectors,

industries

and

issuers

to

try

to

take

advantage

of

varying

sector

reactions

to

economic

events.

We

regularly

enter

into

various

currency-

related

transactions

involving

derivative

instruments,

including

currency

and

cross

currency

forwards,

currency

swaps,

currency

and

currency

index

futures

contracts,

and

currency

options.

The

Fund

also

regularly

enters

into

interest-rate

and

credit-related

transactions

involving

derivative

instruments,

including

interest-rate,

fixed

income

total

return

and

credit

default

swaps

and

interest

rate

and/or

bond

futures

contracts.

Q.

What

were

the

overall

market

conditions

during

the

Fund’s

reporting

period?

A.

The

12

months

ending

April

30,

2024,

saw

the

U.S.

Federal

Reserve

(Fed)

slow

its

pace

of

rate

hikes

as

it

took

a

wait

and

see

approach

to

determine

if

policy

was

sufficiently

restrictive

and

having

an

impact

on

bringing

inflation

closer

to

their

2%

target.

The

Fed

delivered

two

25-basis

point

rate

hikes

during

the

period,

the

last

of

which

occurred

in

July

2023

and

took

the

fed

Funds

target

rate

to

a

range

of

5.25%–5.50%,

a

more

than

20-year

high.

Since

then,

policymakers

have

maintained

policy

rates,

as

the

annual

headline

Consumer

Price

Index

(CPI)

declined

from

4.9%

for

April

2023

to

3.5%

in

March

2024.

At

its

most

recent

meeting

(in

March

2024),

the

Fed

still

left

the

policy

rate

unchanged.

As

inflation

retreated,

the

market

turned

its

attention

to

potential

fed

Funds

rate

cuts

in

2024.

To

start

the

year,

the

market

had

priced

in

five

or

more

cuts,

with

the

first

initially

priced

in

for

March

2024.

The

Fed’s

Summary

of

Economic

Projections

released

as

part

of

their

March

2024

meeting

showed

a

median

projection

of

three

rate

cuts

by

the

end

of

the

year.

As

job

market

growth

and

inflation

surprised

to

the

upside

throughout

the

first

quarter

2024,

the

market

readjusted

and

at

the

end

of

the

period

expects

just

one

to

two

cuts,

which

is

consistent

with

our

base

line

projections.

With

high

volatility

through

much

of

the

year,

the

10-year

U.S.

Treasury

(UST)

yields

increased

126

basis

points

to

4.68%

at

the

end

of

April

2024.

Q.

How

did

we

respond

to

these

changing

market

conditions?

A.

Fed

action

led

to

an

increase

in

short-term

rates,

causing

the

UST

yields

curve

to

remain

inverted.

As

such,

we

were

more

comfortable

focusing

our

duration

exposure

to

the

five-year

portion

of

the

curve.

This

positioning

allowed

us

to

get

strong

yield/income

profiles

with

limited

exposure

to

overall

spread

risk.

Over

the

course

of

the

period

under

review,

we

added

to

our

investment-grade

(IG)

and

high-

yield

(HY)

corporate

bonds

to

pick

up

income

utilizing

recommendations

from

our

dedicated

credit

research

analysts

to

choose

sectors

and

issuers

with

strong

risk/

reward

characteristics.

We

pared

collateralized

loan

obligation

(CLO)

allocation

and

tactically

traded

our

agency

mortgage-backed

securities

(MBS)

exposure

as

spreads

moved

in

the

sector.

Our

use

of

forward

exchange

contracts

and

future

contracts

detracted

from

performance,

while

our

use

of

swap

contracts

contributed

to

performance

during

the

period.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+3.12%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Bloomberg

U.S.

Aggregate

Index,

which

represents

the

U.S.

investment-grade

fixed

rate

taxable

bond

market,

posted

a

-1.47%

cumulative

total

return.

1

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

The

Fund

was

able

to

successfully

meet

its

monthly

distributions

under

its

managed

distribution

policy

without

the

return

of

capital

and

without

an

associated

impact

from

return

of

capital

on

the

Fund’s

net

asset

value

per

share.

The

policy

had

no

material

impact

on

the

Fund’s

investment

strategy.

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

.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

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

14

.

Franklin

Strategic

Income

Fund

4

franklintempleton.com

Annual

Report

Q.

What

were

the

leading

contributors

to

performance?

A.

Sector

exposure

was

the

main

driver

of

outperformance

for

the

year,

led

by

our

corporate

credit

holdings

including

IG

and

HY

corporate

bonds,

collateralized

loan

obligations,

and

senior

secured

floating-rate

bank

loans.

Non-agency

residential

MBS

(RMBS),

and,

to

a

lesser

degree,

sovereign

emerging

market

(EM)

debt

helped

returns.

Security

selection

in

sovereign

developed

and

EM

and

CLOs

contributed

to

performance.

Yield

curve

positioning

across

the

curve

was

a

strong

contributor

to

performance.

Q.

What

were

the

leading

detractors

from

performance?

A.

From

a

sector

standpoint,

securitized

sectors

hurt

our

results

including

holdings

of

MBS

and

commercial

MBS

(CMBS).

Additionally,

holdings

of

local-currency

EM

debt

curbed

returns.

Q.

Were

there

any

significant

changes

to

the

Fund

during

the

reporting

period?

A.

There

were

no

significant

changes

to

our

overall

investment

process.

We

continue

to

hold

some

strategic

allocations

in

the

Fund’s

corporate

credit

sectors

and

RMBS

as

they

provide

pick

up

in

yields

versus

cash.

We

have

limited

our

spread

exposure

by

focusing

on

shorter-maturity

and

higher-quality

bonds

relying

on

superior

security

selection

to

add

value.

In

terms

of

duration,

we

increased

our

exposure

towards

the

end

of

the

period

under

review

as

intermediate-term

yields

moved

higher

into

our

target

range.

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

April

30,

2024,

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

4/30/24

%

of

Total

Net

Assets

Corporate

Bonds

59.6%

U.S.

Government

and

Agency

Securities

17.9%

Mortgage-Backed

Securities

12.3%

Asset-Backed

Securities

*

3.7%

Residential

Mortgage-Backed

Securities

2.7%

Senior

Floating

Rate

Interests

2.6%

Foreign

Government

and

Agency

Securities

2.2%

Marketplace

Loans

1.5%

Other

†

0.7%

Short-Term

Investments

&

Other

Net

Assets

-3.2%

*

Includes

non-agency

residential

mortgage

backed

securities,

collateralized

loan

obligations

and

consumer

loan

certificates.

†

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.

Performance

Summary

as

of

April

30,

2024

Franklin

Strategic

Income

Fund

5

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

4/30/24

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+3.12%

-0.74%

5-Year

+3.99%

+0.03%

10-Year

+15.23%

+1.04%

Advisor

1-Year

+3.37%

+3.37%

5-Year

+5.29%

+1.04%

10-Year

+18.11%

+1.68%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

4.50%

5.10%

5.09%

Advisor

4.93%

5.56%

5.55%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Strategic

Income

Fund

Performance

Summary

6

franklintempleton.com

Annual

Report

See

page

7

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/14–4/30/24)

Advisor

Class

(4/30/14–4/30/24)

Franklin

Strategic

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

Floating-rate

loans

and

debt

securities

are

typically

rated

below

investment

grade

and

are

subject

to

greater

risk

of

default,

which

could

result

in

loss

of

principal.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

Derivative

instruments

can

be

illiquid,

may

disproportionately

increase

loss-

es,

and

have

a

potentially

large

impact

on

performance.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

fees

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

8/31/24

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

calculated

by

annualizing

the

most

recent

distribution

amount

paid,

divided

by

the

closing

market

price

or

NAV

as

of

the

date

indicated.

The

Distribution

Rate

calculation

includes

income

and

return

of

capital,

and

includes

a

prorated

special

distribution

in

the

month

it

is

paid.

The

Distribution

Rate

is

not

guaranteed,

subject

to

change,

and

is

not

a

quotation

of

fund

performance.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Source:

FactSet.

The

Bloomberg

U.S.

Aggregate

Index

measures

the

investment-grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

The

index

includes

Treasuries,

government-related

and

corporate

securities,

mortgage-backed

securities

(agency

fixed-rate

and

hybrid

adjustable-rate

mortgage

pass-throughs),

asset-backed

securities

and

commercial

mortgage-backed

securities

(agency

and

nonagency).

8.

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.

Important

data

provider

notices

and

terms

available

at

www.franklintempletondatasources.com.

Distributions

(5/1/23–4/30/24)

Share

Class

Net

Investment

Income

A

$0.3788

C

$0.3442

R

$0.3582

R6

$0.4086

Advisor

$0.3990

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.93%

0.98%

Advisor

0.68%

0.73%

Your

Fund’s

Expenses

Franklin

Strategic

Income

Fund

8

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/366

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

11/1/23

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

Ending

Account

Value

4/30/24

Expenses

Paid

During

Period

11/1/23–4/30/24

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,058.70

$4.75

$1,020.25

$4.66

0.93%

C

$1,000

$1,056.40

$6.78

$1,018.27

$6.66

1.33%

R

$1,000

$1,057.70

$6.02

$1,019.01

$5.91

1.18%

R6

$1,000

$1,060.50

$2.85

$1,022.09

$2.80

0.56%

Advisor

$1,000

$1,059.90

$3.47

$1,021.50

$3.40

0.68%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

9

a

Year

Ended

April

30,

2024

2023

2022

2021*

2020

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.23

$8.55

$9.44

$8.67

$9.61

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.37

0.36

0.29

0.37

0.38

Net

realized

and

unrealized

gains

(losses)

...........

(0.12)

(0.31)

(0.84)

0.75

(0.90)

Total

from

investment

operations

....................

0.25

0.05

(0.55)

1.12

(0.52)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.38)

(0.37)

(0.34)

(0.35)

(0.42)

Net

asset

value,

end

of

year

.......................

$8.10

$8.23

$8.55

$9.44

$8.67

Total

return

d

...................................

3.12%

0.73%

(6.07)%

13.05%

(5.72)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.94%

0.94%

0.90%

0.88%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.91%

0.89%

0.84%

0.86%

0.86%

Net

investment

income

...........................

4.55%

4.34%

3.11%

3.93%

4.01%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,079,060

$2,285,374

$2,609,533

$2,862,068

$2,686,523

Portfolio

turnover

rate

............................

65.73%

f

69.77%

52.98%

111.72%

f

118.64%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

55.51%

f

69.77%

41.46%

54.21%

f

86.69%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

for

current

year

information.

g

See

Note

1(g)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

April

30,

2024

2023

2022

2021*

2020

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.23

$8.55

$9.44

$8.67

$9.61

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.34

0.32

0.25

0.33

0.34

Net

realized

and

unrealized

gains

(losses)

...........

(0.12)

(0.30)

(0.84)

0.75

(0.90)

Total

from

investment

operations

....................

0.22

0.02

(0.59)

1.08

(0.56)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.34)

(0.34)

(0.30)

(0.31)

(0.38)

Net

asset

value,

end

of

year

.......................

$8.11

$8.23

$8.55

$9.44

$8.67

Total

return

d

...................................

2.80%

0.30%

(6.48)%

12.58%

(6.11)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.34%

1.34%

1.29%

1.28%

1.28%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.31%

1.29%

1.24%

1.26%

1.26%

Net

investment

income

...........................

4.14%

3.92%

2.70%

3.51%

3.61%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$64,894

$100,037

$171,374

$387,589

$518,795

Portfolio

turnover

rate

............................

65.73%

f

69.77%

52.98%

111.72%

f

118.64%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

55.51%

f

69.77%

41.46%

54.21%

f

86.69%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

for

current

year

information.

g

See

Note

1(g)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

April

30,

2024

2023

2022

2021*

2020

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.19

$8.51

$9.40

$8.63

$9.57

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.35

0.33

0.27

0.34

0.36

Net

realized

and

unrealized

gains

(losses)

...........

(0.12)

(0.30)

(0.85)

0.76

(0.91)

Total

from

investment

operations

....................

0.23

0.03

(0.58)

1.10

(0.55)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.36)

(0.35)

(0.31)

(0.33)

(0.39)

Net

asset

value,

end

of

year

.......................

$8.06

$8.19

$8.51

$9.40

$8.63

Total

return

....................................

2.87%

0.48%

(6.33)%

12.83%

(5.98)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.19%

1.19%

1.15%

1.13%

1.13%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.16%

1.14%

1.09%

1.11%

1.11%

Net

investment

income

...........................

4.30%

4.09%

2.86%

3.68%

3.76%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$36,034

$40,939

$48,447

$59,366

$62,063

Portfolio

turnover

rate

............................

65.73%

e

69.77%

52.98%

111.72%

e

118.64%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

f

....

55.51%

e

69.77%

41.46%

54.21%

e

86.69%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

for

current

year

information.

f

See

Note

1(g)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

April

30,

2024

2023

2022

2021*

2020

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.24

$8.56

$9.45

$8.68

$9.63

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.40

0.39

0.32

0.40

0.43

Net

realized

and

unrealized

gains

(losses)

...........

(0.12)

(0.31)

(0.84)

0.75

(0.93)

Total

from

investment

operations

....................

0.28

0.08

(0.52)

1.15

(0.50)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.41)

(0.40)

(0.37)

(0.38)

(0.45)

Net

asset

value,

end

of

year

.......................

$8.11

$8.24

$8.56

$9.45

$8.68

Total

return

....................................

3.49%

1.12%

(5.72)%

13.45%

(5.46)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.58%

0.55%

0.54%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.55%

0.51%

0.48%

0.50%

0.49%

Net

investment

income

...........................

4.92%

4.73%

3.47%

4.30%

4.38%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$133,098

$132,950

$136,184

$132,736

$133,575

Portfolio

turnover

rate

............................

65.73%

e

69.77%

52.98%

111.72%

e

118.64%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

f

....

55.51%

e

69.77%

41.46%

54.21%

e

86.69%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

for

current

year

information.

f

See

Note

1(g)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

April

30,

2024

2023

2022

2021*

2020

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.24

$8.56

$9.45

$8.68

$9.62

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.39

0.38

0.31

0.39

0.40

Net

realized

and

unrealized

gains

(losses)

...........

(0.12)

(0.31)

(0.84)

0.75

(0.90)

Total

from

investment

operations

....................

0.27

0.07

(0.53)

1.14

(0.50)

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.40)

(0.39)

(0.36)

(0.37)

(0.44)

Net

asset

value,

end

of

year

.......................

$8.11

$8.24

$8.56

$9.45

$8.68

Total

return

....................................

3.37%

0.98%

(5.83)%

13.32%

(5.47)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.69%

0.69%

0.65%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.66%

0.64%

0.59%

0.61%

0.61%

Net

investment

income

...........................

4.80%

4.59%

3.36%

4.18%

4.26%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$272,301

$311,142

$390,465

$462,624

$517,522

Portfolio

turnover

rate

............................

65.73%

e

69.77%

52.98%

111.72%

e

118.64%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

f

....

55.51%

e

69.77%

41.46%

54.21%

e

86.69%

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

13

for

current

year

information.

f

See

Note

1(g)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Strategic

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.2%

Broadline

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

—

—

Hotels,

Restaurants

&

Leisure

0.0%

†

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

45,334

8,274

Machinery

0.0%

†

b

UTEX

Industries,

Inc.

..................................

United

States

16,788

864,582

Oil,

Gas

&

Consumable

Fuels

0.2%

b

Amplify

Energy

Corp.

..................................

United

States

5,288

37,333

Birch

Permian

Holdings,

Inc.

.............................

United

States

46,176

388,179

a,b,c

Talos

Energy,

Inc.

.....................................

United

States

271,085

3,537,988

3,963,500

Total

Common

Stocks

(Cost

$

15,946,839

)

......................................

4,836,356

Preferred

Stocks

0.0%

†

Hotels,

Restaurants

&

Leisure

0.0%

†

b

24

Hour

Fitness

Worldwide,

Inc.

..........................

United

States

107,362

1,610

b

Total

Preferred

Stocks

(Cost

$

1,610

)

...........................................

1,610

Warrants

Warrants

0.0%

†

Machinery

0.0%

†

a,b

UTEX

Industries,

Inc.

,

2/20/49

............................

United

States

1,440

268

Oil,

Gas

&

Consumable

Fuels

0.0%

a,b

Canvas

Energy,

Inc.

,

10/01/24

............................

United

States

9

—

a,b

Canvas

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

$

751,272

)

................................................

268

Principal

Amount

*

Corporate

Bonds

59.6%

Aerospace

&

Defense

0.5%

Boeing

Co.

(The)

,

Senior

Bond

,

3.625

%

,

2/01/31

..........................

United

States

5,000,000

4,298,700

Senior

Note

,

5.15

%

,

5/01/30

...........................

United

States

8,100,000

7,664,152

11,962,852

Air

Freight

&

Logistics

0.1%

d

DAE

Funding

LLC

,

Senior

Note

,

144A,

1.55

%

,

8/01/24

.........

United

Arab

Emirates

2,300,000

2,270,987

FedEx

Corp.

,

Senior

Bond

,

4.05

%

,

2/15/48

..................

United

States

1,200,000

898,648

3,169,635

Automobile

Components

1.3%

d

Adient

Global

Holdings

Ltd.

,

Senior

Note

,

144A,

8.25

%

,

4/15/31

......................

United

States

5,300,000

5,509,032

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Automobile

Components

(continued)

d

Adient

Global

Holdings

Ltd.,

(continued)

Senior

Secured

Note

,

144A,

7

%

,

4/15/28

..................

United

States

2,000,000

$

2,022,592

d

Allison

Transmission,

Inc.

,

Senior

Bond

,

144A,

5.875

%

,

6/01/29

.....................

United

States

7,000,000

6,829,820

Senior

Bond

,

144A,

3.75

%

,

1/30/31

......................

United

States

3,400,000

2,913,443

d

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

6,600,000

5,459,050

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

8,300,000

7,536,157

d

ZF

North

America

Capital,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

4/23/30

Germany

3,600,000

3,610,747

33,880,841

Automobiles

0.3%

d

Hyundai

Capital

America

,

Senior

Note

,

144A,

5.35

%

,

3/19/29

....

United

States

1,300,000

1,278,063

d

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

7,000,000

6,593,502

7,871,565

Banks

6.2%

d,e

ABN

AMRO

Bank

NV

,

Senior

Non-Preferred

Note

,

144A,

FRN

,

6.339

%

,

(

1-year

CMT

T-Note

+

1.65

%

),

9/18/27

.............

Netherlands

2,100,000

2,118,934

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

3,000,000

2,442,474

Bank

of

America

Corp.

,

Senior

Bond

,

2.299%

to

7/20/31,

FRN

thereafter

,

7/21/32

.....

United

States

3,500,000

2,789,312

Senior

Bond

,

4.571%

to

4/26/32,

FRN

thereafter

,

4/27/33

.....

United

States

8,000,000

7,377,692

Senior

Note

,

4.376%

to

4/26/27,

FRN

thereafter

,

4/27/28

......

United

States

9,500,000

9,184,572

d

BNP

Paribas

SA

,

Senior

Non-Preferred

Note

,

144A,

2.819%

to

11/18/24,

FRN

thereafter

,

11/19/25

..................................

France

4,400,000

4,322,085

e

Senior

Preferred

Note

,

144A,

FRN

,

5.176

%

,

(

SOFR

+

1.52

%

),

1/09/30

...........................................

France

6,500,000

6,376,371

d

BPCE

SA

,

Senior

Non-Preferred

Note

,

144A,

2.045%

to

10/18/26,

FRN

thereafter

,

10/19/27

..............................

France

7,900,000

7,181,541

Citigroup,

Inc.

,

Senior

Note

,

5.61%

to

9/28/25,

FRN

thereafter

,

9/29/26

...........................................

United

States

15,500,000

15,470,456

HSBC

Holdings

plc

,

Senior

Bond

,

2.848%

to

6/03/30,

FRN

thereafter

,

6/04/31

.....

United

Kingdom

8,300,000

7,002,344

Senior

Note

,

4.18%

to

12/08/24,

FRN

thereafter

,

12/09/25

.....

United

Kingdom

9,100,000

8,994,265

Senior

Note

,

5.21%

to

8/10/27,

FRN

thereafter

,

8/11/28

.......

United

Kingdom

5,850,000

5,758,263

JPMorgan

Chase

&

Co.

,

Senior

Bond

,

2.522%

to

4/21/30,

FRN

thereafter

,

4/22/31

.....

United

States

9,400,000

7,936,509

Senior

Bond

,

1.953%

to

2/03/31,

FRN

thereafter

,

2/04/32

.....

United

States

3,400,000

2,698,994

Senior

Bond

,

5.336%

to

1/22/34,

FRN

thereafter

,

1/23/35

.....

United

States

2,500,000

2,424,447

KeyBank

NA

,

Senior

Note

,

4.15

%

,

8/08/25

..................

United

States

5,000,000

4,854,701

Mizuho

Financial

Group,

Inc.

,

Senior

Note

,

5.778%

to

7/05/28,

FRN

thereafter

,

7/06/29

...................................

Japan

5,100,000

5,117,957

Royal

Bank

of

Canada

,

Senior

Note

,

5.2

%

,

8/01/28

............

Canada

1,800,000

1,790,387

Santander

UK

Group

Holdings

plc

,

Senior

Note

,

1.673%

to

6/23/26,

FRN

thereafter

,

6/14/27

...............................

United

Kingdom

6,700,000

6,109,924

d

Societe

Generale

SA

,

Senior

Non-Preferred

Bond

,

144A,

2.889%

to

6/08/31,

FRN

thereafter

,

6/09/32

...................................

France

7,500,000

6,039,650

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

d

Societe

Generale

SA,

(continued)

Senior

Non-Preferred

Note

,

144A,

1.792%

to

6/08/26,

FRN

thereafter

,

6/09/27

...................................

France

7,200,000

$

6,581,487

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.693

%

,

9/15/27

.....

Canada

9,900,000

9,675,876

Truist

Financial

Corp.

,

Senior

Note

,

5.9%

to

10/27/25,

FRN

thereafter

,

10/28/26

..................................

United

States

7,900,000

7,898,815

d

UniCredit

SpA

,

Senior

Preferred

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...............................

Italy

5,300,000

4,379,696

Wells

Fargo

&

Co.

,

Senior

Note

,

4.54%

to

8/14/25,

FRN

thereafter

,

8/15/26

.......

United

States

4,700,000

4,626,084

Senior

Note

,

6.303%

to

10/22/28,

FRN

thereafter

,

10/23/29

....

United

States

7,400,000

7,583,460

Senior

Note

,

5.198%

to

1/22/29,

FRN

thereafter

,

1/23/30

......

United

States

4,400,000

4,315,650

161,051,946

Beverages

0.3%

d

Primo

Water

Holdings,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/30/29

..

Canada

9,000,000

8,223,190

Biotechnology

0.4%

Amgen,

Inc.

,

Senior

Bond

,

4.2

%

,

3/01/33

............................

United

States

4,000,000

3,623,160

Senior

Bond

,

5.25

%

,

3/02/33

...........................

United

States

6,600,000

6,458,926

d

Grifols

SA

,

Senior

Note

,

144A,

4.75

%

,

10/15/28

..............

Spain

2,000,000

1,617,589

11,699,675

Broadline

Retail

0.0%

a,d,f,g

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

10,914,248

—

a,d,f,g

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

4,807,777

—

—

Building

Products

1.0%

d

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

3,300,000

3,247,393

d

Eco

Material

Technologies,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

1/31/27

.....................................

United

States

5,000,000

5,041,165

d

EMRLD

Borrower

LP

/

Emerald

Co-Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

12/15/30

..........................

United

States

8,500,000

8,434,461

d

Miter

Brands

Acquisition

Holdco,

Inc.

/

MIWD

Borrower

LLC

,

Senior

Secured

Note

,

144A,

6.75

%

,

4/01/32

.....................

United

States

2,900,000

2,881,880

d

Standard

Industries,

Inc.

,

Senior

Bond

,

144A,

4.75

%

,

1/15/28

......................

United

States

4,800,000

4,531,520

Senior

Bond

,

144A,

4.375

%

,

7/15/30

.....................

United

States

1,000,000

886,467

Senior

Bond

,

144A,

3.375

%

,

1/15/31

.....................

United

States

1,400,000

1,148,073

26,170,959

Capital

Markets

3.0%

Deutsche

Bank

AG

,

Senior

Preferred

Note

,

5.371

%

,

9/09/27

.....

Germany

7,800,000

7,757,190

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

2.383%

to

7/20/31,

FRN

thereafter

,

7/21/32

.....

United

States

6,500,000

5,203,938

Senior

Note

,

5.7

%

,

11/01/24

...........................

United

States

6,200,000

6,202,014

Senior

Note

,

4.387%

to

6/14/26,

FRN

thereafter

,

6/15/27

......

United

States

3,400,000

3,315,796

Senior

Note

,

1.948%

to

10/20/26,

FRN

thereafter

,

10/21/27

....

United

States

3,000,000

2,739,669

d

Jane

Street

Group

/

JSG

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

4.5

%

,

11/15/29

......................................

United

States

3,300,000

3,004,185

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Capital

Markets

(continued)

JBS

USA

Holding

Lux

SARL

/

JBS

USA

Food

Co.

/

JBS

Lux

Co.

SARL

,

Senior

Note

,

2.5

%

,

1/15/27

............................

United

States

4,800,000

$

4,402,427

Senior

Note

,

3

%

,

2/02/29

.............................

United

States

1,500,000

1,305,907

Senior

Note

,

3.625

%

,

1/15/32

..........................

United

States

3,500,000

2,917,056

Morgan

Stanley

,

Senior

Bond

,

3.591

%

,

7/22/28

..........................

United

States

10,000,000

9,411,784

Senior

Bond

,

5.466%

to

1/17/34,

FRN

thereafter

,

1/18/35

.....

United

States

1,900,000

1,849,186

d

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.25

%

,

8/15/33

...............

United

States

11,800,000

9,459,110

d

Prologis

Targeted

US

Logistics

Fund

LP

,

Senior

Note

,

144A,

5.25

%

,

4/01/29

...........................................

United

States

2,400,000

2,355,267

d

StoneX

Group,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

3/01/31

.

United

States

2,600,000

2,631,525

UBS

Group

AG

,

Senior

Note

,

4.55

%

,

4/17/26

...........................

Switzerland

4,000,000

3,911,685

d

Senior

Note

,

144A,

2.193%

to

6/04/25,

FRN

thereafter

,

6/05/26

.

Switzerland

1,000,000

959,566

d

Senior

Note

,

144A,

6.373%

to

7/14/25,

FRN

thereafter

,

7/15/26

.

Switzerland

3,050,000

3,061,882

d

Senior

Note

,

144A,

5.711%

to

1/11/26,

FRN

thereafter

,

1/12/27

.

Switzerland

8,150,000

8,131,552

78,619,739

Chemicals

1.6%

d

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,000,000

5,261,392

Celanese

US

Holdings

LLC

,

Senior

Note

,

6.165

%

,

7/15/27

......

United

States

4,850,000

4,880,079

d

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5

%

,

10/15/28

.......................

Switzerland

2,693,000

EUR

2,460,550

Senior

Note

,

144A,

5.625

%

,

10/15/28

....................

Switzerland

3,600,000

3,046,061

d

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

6,600,000

5,947,530

d

GPD

Cos.,

Inc.

,

Senior

Secured

Note

,

144A,

10.125

%

,

4/01/26

...

United

States

5,000,000

4,708,459

d,f

Kobe

US

Midco

2,

Inc.

,

Senior

Note

,

144A,

PIK,

9.25

%

,

11/01/26

..

United

States

2,625,000

2,131,354

Nutrien

Ltd.

,

Senior

Note

,

4.9

%

,

3/27/28

....................

Canada

1,150,000

1,125,969

d

Rain

Carbon,

Inc.

,

Senior

Secured

Note

,

144A,

12.25

%

,

9/01/29

..

United

States

2,800,000

2,919,398

d

Syngenta

Finance

NV

,

Senior

Note

,

144A,

4.892

%

,

4/24/25

......

Switzerland

6,385,000

6,310,032

Westlake

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

...............

United

States

2,500,000

2,200,978

d

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

1,400,000

1,197,832

42,189,634

Commercial

Services

&

Supplies

1.2%

d

Allied

Universal

Holdco

LLC

,

Senior

Secured

Note

,

144A,

7.875

%

,

2/15/31

...........................................

United

States

6,400,000

6,422,134

d

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

6,000,000

5,586,085

d

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

11,000,000

10,028,368

d

Stericycle,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

1/15/29

...........

United

States

9,500,000

8,462,730

30,499,317

Communications

Equipment

0.2%

d

CommScope

Technologies

LLC

,

Senior

Note

,

144A,

6

%

,

6/15/25

..

United

States

5,518,000

4,366,118

Construction

&

Engineering

0.2%

d

Arcosa,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

.............

United

States

5,600,000

5,103,887

Construction

Materials

0.3%

d

Knife

River

Corp.

,

Senior

Note

,

144A,

7.75

%

,

5/01/31

..........

United

States

7,000,000

7,277,473

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

1.0%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

3.4

%

,

10/29/33

.................................

Ireland

7,700,000

$

6,272,613

d

FirstCash,

Inc.

,

Senior

Note

,

144A,

6.875

%

,

3/01/32

...........

United

States

6,000,000

5,931,661

OneMain

Finance

Corp.

,

Senior

Note

,

9

%

,

1/15/29

............

United

States

6,900,000

7,239,929

d

PROG

Holdings,

Inc.

,

Senior

Note

,

144A,

6

%

,

11/15/29

.........

United

States

7,300,000

6,732,777

26,176,980

Consumer

Staples

Distribution

&

Retail

0.5%

d

Albertsons

Cos.,

Inc.

/

Safeway,

Inc.

/

New

Albertsons

LP

/

Albertsons

LLC

,

Senior

Note

,

144A,

3.5

%

,

3/15/29

...........

United

States

8,400,000

7,420,163

Sysco

Corp.

,

Senior

Bond

,

6

%

,

1/17/34

.....................

United

States

1,900,000

1,955,305

d

US

Foods,

Inc.

,

Senior

Note

,

144A,

6.875

%

,

9/15/28

...........

United

States

3,300,000

3,332,211

12,707,679

Containers

&

Packaging

1.6%

d

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

......................

United

States

6,200,000

3,168,448

Senior

Secured

Note

,

144A,

4.125

%

,

8/15/26

..............

United

States

2,500,000

2,085,979

d

OI

European

Group

BV

,

Senior

Note

,

144A,

4.75

%

,

2/15/30

......

United

States

5,000,000

4,571,912

d

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note

,

144A,

7.25

%

,

5/15/31

...........................................

United

States

3,000,000

3,008,340

d

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

10/15/28

..........

United

States

6,100,000

5,620,108

d

Pactiv

Evergreen

Group

Issuer,

Inc.

/

Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

4,600,000

4,272,413

d

Sealed

Air

Corp.

,

Senior

Note

,

144A,

6.125

%

,

2/01/28

..........

United

States

8,000,000

7,910,731

d

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

5.5

%

,

8/15/26

...........................................

Netherlands

7,000,000

6,886,223

WRKCo,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

3,600,000

2,931,906

40,456,060

Distributors

0.2%

d

Ritchie

Bros

Holdings,

Inc.

,

Senior

Note

,

144A,

7.75

%

,

3/15/31

......................

Canada

2,700,000

2,803,607

Senior

Secured

Note

,

144A,

6.75

%

,

3/15/28

...............

Canada

1,500,000

1,516,055

4,319,662

Diversified

Consumer

Services

0.4%

Grand

Canyon

University

,

Secured

Note

,

5.125

%

,

10/01/28

......

United

States

7,500,000

6,693,150

d

Wand

NewCo

3,

Inc.

,

Senior

Secured

Note

,

144A,

7.625

%

,

1/30/32

United

States

4,000,000

4,069,782

10,762,932

Diversified

REITs

0.5%

d

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

7,700,000

6,559,831

Simon

Property

Group

LP

,

Senior

Bond

,

4.25

%

,

11/30/46

..........................

United

States

3,000,000

2,359,903

Senior

Bond

,

3.25

%

,

9/13/49

...........................

United

States

7,000,000

4,590,291

13,510,025

Diversified

Telecommunication

Services

1.4%

d

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.5

%

,

10/15/29

...

France

3,000,000

1,967,310

AT&T,

Inc.

,

Senior

Bond

,

2.55

%

,

12/01/33

..........................

United

States

8,000,000

6,177,632

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Telecommunication

Services

(continued)

AT&T,

Inc.,

(continued)

Senior

Bond

,

3.65

%

,

9/15/59

...........................

United

States

4,000,000

$

2,597,034

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

4.5

%

,

5/01/32

......................................

United

States

5,500,000

4,227,995

d

Iliad

Holding

SASU

,

Senior

Secured

Note

,

144A,

6.5

%

,

10/15/26

...............

France

2,800,000

2,789,189

Senior

Secured

Note

,

144A,

7

%

,

10/15/28

.................

France

5,400,000

5,285,403

Verizon

Communications,

Inc.

,

Senior

Note

,

2.355

%

,

3/15/32

....

United

States

8,400,000

6,705,465

d

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond

,

144A,

4.5

%

,

8/15/30

......................................

United

Kingdom

7,000,000

5,912,754

35,662,782

Electric

Utilities

2.4%

Duke

Energy

Corp.

,

Senior

Bond

,

2.45

%

,

6/01/30

...........................

United

States

6,200,000

5,227,033

Senior

Bond

,

3.75

%

,

9/01/46

...........................

United

States

1,600,000

1,143,459

Duke

Energy

Ohio,

Inc.

,

Senior

Bond

,

5.25

%

,

4/01/33

..........

United

States

1,000,000

976,533

d

Enel

Finance

International

NV

,

Senior

Note

,

144A,

2.65

%

,

9/10/24

Italy

7,800,000

7,714,658

Exelon

Corp.

,

Senior

Bond

,

4.05

%

,

4/15/30

...........................

United

States

13,400,000

12,374,646

Senior

Bond

,

4.45

%

,

4/15/46

...........................

United

States

1,400,000

1,134,701

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Note

,

6.051

%

,

3/01/25

United

States

3,300,000

3,307,111

Southern

Co.

(The)

,

Senior

Bond

,

4.4

%

,

7/01/46

............................

United

States

5,000,000

4,073,581

Senior

Note

,

5.5

%

,

3/15/29

............................

United

States

6,100,000

6,083,369

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

820,000

853,965

d

Vistra

Operations

Co.

LLC

,

Senior

Note

,

144A,

4.375

%

,

5/01/29

.....................

United

States

11,000,000

10,025,629

Senior

Secured

Bond

,

144A,

4.3

%

,

7/15/29

................

United

States

6,000,000

5,543,195

Xcel

Energy,

Inc.

,

Senior

Bond

,

5.45

%

,

8/15/33

...............

United

States

4,500,000

4,350,209

62,808,089

Electrical

Equipment

0.4%

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

3/15/33

...................

United

States

1,900,000

1,747,704

d

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

8,500,000

7,879,821

9,627,525

Electronic

Equipment,

Instruments

&

Components

0.4%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

5,000,000

4,455,647

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

7,100,000

6,744,334

11,199,981

Energy

Equipment

&

Services

0.2%

d

Kodiak

Gas

Services

LLC

,

Senior

Note

,

144A,

7.25

%

,

2/15/29

....

United

States

5,000,000

5,040,332

Entertainment

0.2%

d

Banijay

Entertainment

SASU

,

Senior

Secured

Note

,

144A,

7

%

,

5/01/29

..................

France

2,800,000

EUR

3,141,777

Senior

Secured

Note

,

144A,

8.125

%

,

5/01/29

..............

France

308,809

316,239

Warnermedia

Holdings,

Inc.

,

Senior

Note

,

4.054

%

,

3/15/29

......

United

States

2,100,000

1,916,107

5,374,123

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Financial

Services

1.1%

a,e,g

Cia

Securitizadora

de

Creditos

Financeiros

Vert-Fintech

,

12

,

Senior

Secured

Note

,

FRN

,

14.9

%

,

(

BZDIOVRA

+

5.75

%

),

2/14/24

....

Brazil

11,513,000

BRL

$

—

d

Corebridge

Financial,

Inc.

,

Senior

Bond

,

144A,

6.05

%

,

9/15/33

...

United

States

4,900,000

4,903,633

d

GGAM

Finance

Ltd.

,

Senior

Note

,

144A,

8

%

,

6/15/28

..........

Ireland

4,000,000

4,122,464

d

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

6

%

,

8/15/26

..

United

States

7,000,000

6,887,723

d

Nationstar

Mortgage

Holdings,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

11/15/31

..........................................

United

States

5,800,000

5,278,092

d

PRA

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

............

United

States

8,000,000

6,630,060

27,821,972

Food

Products

0.7%

d

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

2,000,000

1,469,764

d

Chobani

LLC

/

Chobani

Finance

Corp.,

Inc.

,

Senior

Note

,

144A,

7.625

%

,

7/01/29

.....................................

United

States

1,100,000

1,113,009

d

Darling

Ingredients,

Inc.

,

Senior

Note

,

144A,

6

%

,

6/15/30

.......

United

States

9,000,000

8,748,601

General

Mills,

Inc.

,

Senior

Note

,

5.241

%

,

11/18/25

.............

United

States

1,550,000

1,541,487

Hershey

Co.

(The)

,

Senior

Bond

,

4.5

%

,

5/04/33

...............

United

States

2,400,000

2,293,046

d

Post

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

2/15/32

..

United

States

3,100,000

3,062,482

18,228,389

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

,

Senior

Bond

,

3.35

%

,

6/01/50

....

United

States

2,800,000

1,784,772

Ground

Transportation

0.6%

d

Ashtead

Capital,

Inc.

,

Senior

Bond

,

144A,

5.8

%

,

4/15/34

........

United

Kingdom

900,000

876,343

CSX

Corp.

,

Senior

Bond

,

4.1

%

,

3/15/44

....................

United

States

1,600,000

1,296,500

d

First

Student

Bidco,

Inc.

/

First

Transit

Parent,

Inc.

,

Senior

Secured

Note

,

144A,

4

%

,

7/31/29

..............................

United

States

9,500,000

8,317,344

d

XPO,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

2/01/32

...............

United

States

3,800,000

3,825,602

14,315,789

Health

Care

Equipment

&

Supplies

1.0%

d

Bausch

+

Lomb

Corp.

,

Senior

Secured

Note

,

144A,

8.375

%

,

10/01/28

..........................................

United

States

7,000,000

7,238,000

Baxter

International,

Inc.

,

Senior

Note

,

2.272

%

,

12/01/28

........

United

States

4,700,000

4,068,010

GE

HealthCare

Technologies,

Inc.

,

Senior

Note

,

5.6

%

,

11/15/25

..

United

States

4,700,000

4,693,791

d

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

......

United

States

5,300,000

4,938,720

d

Neogen

Food

Safety

Corp.

,

Senior

Note

,

144A,

8.625

%

,

7/20/30

..

United

States

5,600,000

5,911,382

26,849,903

Health

Care

Providers

&

Services

2.6%

Centene

Corp.

,

Senior

Note

,

4.25

%

,

12/15/27

..........................

United

States

3,000,000

2,831,718

Senior

Note

,

2.45

%

,

7/15/28

...........................

United

States

2,300,000

2,009,743

Senior

Note

,

4.625

%

,

12/15/29

.........................

United

States

2,300,000

2,143,676

Senior

Note

,

3.375

%

,

2/15/30

..........................

United

States

1,400,000

1,220,872

Senior

Note

,

2.625

%

,

8/01/31

..........................

United

States

5,300,000

4,245,675

d

CHS/Community

Health

Systems,

Inc.

,

Secured

Note

,

144A,

6.875

%

,

4/15/29

....................

United

States

1,000,000

744,413

Senior

Secured

Note

,

144A,

5.625

%

,

3/15/27

..............

United

States

3,700,000

3,391,628

Senior

Secured

Note

,

144A,

6

%

,

1/15/29

..................

United

States

3,300,000

2,882,668

CVS

Health

Corp.

,

Senior

Bond

,

1.75

%

,

8/21/30

...........................

United

States

4,000,000

3,200,321

Senior

Bond

,

5.3

%

,

6/01/33

............................

United

States

3,000,000

2,901,617

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

CVS

Health

Corp.,

(continued)

Senior

Bond

,

2.7

%

,

8/21/40

............................

United

States

6,300,000

$

4,121,760

d

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

9,000,000

7,893,170

Elevance

Health,

Inc.

,

Senior

Bond

,

3.7

%

,

9/15/49

............

United

States

1,400,000

1,005,038

HCA,

Inc.

,

Senior

Bond

,

3.5

%

,

9/01/30

.....................

United

States

11,900,000

10,495,633

Icon

Investments

Six

Designated

Activity

Co.

,

Senior

Secured

Bond

,

6

%

,

5/08/34

........................................

Ireland

460,000

459,522

d

Kedrion

SpA

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/01/29

........

Italy

5,000,000

4,522,500

d

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

4,900,000

3,606,604

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

2,100,000

1,754,475

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

6.125

%

,

6/15/30

...

United

States

8,000,000

7,873,186

67,304,219

Health

Care

REITs

0.2%

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

5

%

,

10/15/27

............................

United

States

3,000,000

2,456,985

Senior

Bond

,

3.5

%

,

3/15/31

............................

United

States

4,000,000

2,686,259

5,143,244

Health

Care

Technology

0.3%

d

IQVIA,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

5/15/30

................

United

States

7,200,000

7,241,666

Hotel

&

Resort

REITs

0.4%

d

RHP

Hotel

Properties

LP

/

RHP

Finance

Corp.

,

Senior

Note

,

144A,

6.5

%

,

4/01/32

......................................

United

States

7,300,000

7,159,519

d

XHR

LP

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/01/29

.........

United

States

3,500,000

3,197,795

10,357,314

Hotels,

Restaurants

&

Leisure

2.0%

d

Allwyn

Entertainment

Financing

UK

plc

,

Senior

Secured

Note

,

144A,

7.875

%

,

4/30/29

.....................................

Czech

Republic

6,000,000

6,142,440

d

Caesars

Entertainment,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

10/15/29

United

States

8,500,000

7,590,174

d

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

1/15/30

.......................

United

States

5,000,000

4,353,569

Marriott

International,

Inc.

,

Senior

Bond

,

5.3

%

,

5/15/34

.........

United

States

2,200,000

2,110,809

d

Papa

John's

International,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/15/29

United

States

7,500,000

6,533,785

d

Six

Flags

Entertainment

Corp.

/

Six

Flags

Theme

Parks,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

5/01/32

....................

United

States

5,200,000

5,183,002

d

Station

Casinos

LLC

,

Senior

Bond

,

144A,

4.625

%

,

12/01/31

....................

United

States

4,000,000

3,509,802

Senior

Note

,

144A,

4.5

%

,

2/15/28

.......................

United

States

3,100,000

2,877,697

d

Viking

Cruises

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

9/15/27

.....................

United

States

2,800,000

2,716,983

Senior

Note

,

144A,

7

%

,

2/15/29

........................

United

States

2,400,000

2,392,864

d

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp.

,

Senior

Bond

,

144A,

5.125

%

,

10/01/29

....................

United

States

6,300,000

5,849,941

Senior

Note

,

144A,

7.125

%

,

2/15/31

.....................

United

States

1,700,000

1,725,385

50,986,451

Household

Durables

0.5%

d

LGI

Homes,

Inc.

,

Senior

Note

,

144A,

8.75

%

,

12/15/28

..........

United

States

7,000,000

7,285,881

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

3.8

%

,

11/01/29

.......

United

States

4,900,000

4,466,512

11,752,393

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Household

Products

0.3%

d

Central

Garden

&

Pet

Co.

,

Senior

Bond

,

144A,

4.125

%

,

4/30/31

..

United

States

5,000,000

$

4,330,834

d

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

4,500,000

4,215,082

8,545,916

Independent

Power

and

Renewable

Electricity

Producers

1.2%

d

AES

Andes

SA

,

Senior

Note

,

144A,

6.3

%

,

3/15/29

.............

Chile

4,600,000

4,538,798

d

Atlantica

Sustainable

Infrastructure

plc

,

Senior

Note

,

144A,

4.125

%

,

6/15/28

...........................................

Spain

5,000,000

4,532,255

d

Calpine

Corp.

,

Senior

Bond

,

144A,

5

%

,

2/01/31

........................

United

States

4,300,000

3,901,106

Senior

Note

,

144A,

4.625

%

,

2/01/29

.....................

United

States

4,000,000

3,678,209

d

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

United

States

5,300,000

4,486,878

Constellation

Energy

Generation

LLC

,

Senior

Bond

,

6.125

%

,

1/15/34

United

States

2,000,000

2,047,940

d

Talen

Energy

Supply

LLC

,

Senior

Secured

Note

,

144A,

8.625

%

,

6/01/30

...........................................

United

States

7,200,000

7,623,533

30,808,719

Insurance

2.0%

d

AIA

Group

Ltd.

,

Senior

Bond

,

144A,

4.95

%

,

4/04/33

...........

Hong

Kong

3,100,000

2,997,927

d

Alliant

Holdings

Intermediate

LLC

/

Alliant

Holdings

Co-Issuer

,

Senior

Secured

Note

,

144A,

6.75

%

,

4/15/28

...............

United

States

6,000,000

5,998,709

Senior

Secured

Note

,

144A,

7

%

,

1/15/31

..................

United

States

1,900,000

1,907,281

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

10,000,000

6,947,362

d

Corebridge

Global

Funding

,

Secured

Note

,

144A,

5.9

%

,

9/19/28

..

United

States

2,100,000

2,112,873

d

Jones

Deslauriers

Insurance

Management,

Inc.

,

Senior

Note

,

144A,

10.5

%

,

12/15/30

.....................................

Canada

5,000,000

5,297,290

d

Metropolitan

Life

Global

Funding

I

,

Secured

Note

,

144A,

5.05

%

,

1/06/28

.....................

United

States

9,600,000

9,472,226

Secured

Note

,

144A,

4.3

%

,

8/25/29

......................

United

States

3,000,000

2,825,944

d

Northwestern

Mutual

Global

Funding

,

Secured

Note

,

144A,

4.9

%

,

6/12/28

...........................................

United

States

5,600,000

5,485,281

d

RGA

Global

Funding

,

Secured

Note

,

144A,

5.5

%

,

1/11/31

.......

United

States

6,400,000

6,300,253

d

Sammons

Financial

Group,

Inc.

,

Senior

Bond

,

144A,

6.875

%

,

4/15/34

...........................................

United

States

3,700,000

3,651,917

52,997,063

Interactive

Media

&

Services

0.3%

d,h

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

9,100,000

7,647,700

IT

Services

1.1%

d

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

9,200,000

8,125,800

d

Gartner,

Inc.

,

Senior

Note

,

144A,

4.5

%

,

7/01/28

.......................

United

States

7,000,000

6,589,014

Senior

Note

,

144A,

3.625

%

,

6/15/29

.....................

United

States

3,800,000

3,403,729

d

Presidio

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

2/01/27

United

States

11,000,000

11,021,472

29,140,015

Life

Sciences

Tools

&

Services

0.1%

d

Fortrea

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

7/01/30

.

United

States

3,900,000

3,938,896

Machinery

0.5%

d

Chart

Industries,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

1/01/30

.

United

States

4,000,000

4,096,221

d

Esab

Corp.

,

Senior

Note

,

144A,

6.25

%

,

4/15/29

...............

United

States

3,400,000

3,391,492

Hillenbrand,

Inc.

,

Senior

Note

,

6.25

%

,

2/15/29

................

United

States

3,000,000

2,980,226

Parker-Hannifin

Corp.

,

Senior

Note

,

4.25

%

,

9/15/27

...........

United

States

3,700,000

3,580,099

14,048,038

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

2.2%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

15,900,000

$

12,633,052

d

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note

,

144A,

7.75

%

,

4/15/28

......................

United

States

5,200,000

4,413,496

Senior

Secured

Note

,

144A,

5.125

%

,

8/15/27

..............

United

States

2,400,000

2,226,797

Senior

Secured

Note

,

144A,

7.875

%

,

4/01/30

..............

United

States

300,000

294,360

Comcast

Corp.

,

Senior

Bond

,

4.8

%

,

5/15/33

.................

United

States

5,200,000

4,950,018

d

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

3.375

%

,

2/15/31

.......

United

States

5,000,000

3,087,333

d

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

6,000,000

5,597,411

Fox

Corp.

,

Senior

Bond

,

3.5

%

,

4/08/30

............................

United

States

1,400,000

1,251,229

Senior

Bond

,

6.5

%

,

10/13/33

...........................

United

States

11,500,000

11,812,012

d

Outfront

Media

Capital

LLC

/

Outfront

Media

Capital

Corp.

,

Senior

Bond

,

144A,

4.625

%

,

3/15/30

.....................

United

States

2,500,000

2,209,144

Senior

Secured

Note

,

144A,

7.375

%

,

2/15/31

..............

United

States

2,200,000

2,259,589

d

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4

%

,

7/15/28

.........

United

States

8,000,000

7,138,730

57,873,171

Metals

&

Mining

1.1%

d

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

9,200,000

8,166,810

d

Indonesia

Asahan

Aluminium

PT

/

Mineral

Industri

Indonesia

Persero

PT

,

Senior

Bond

,

144A,

5.45

%

,

5/15/30

...................

Indonesia

6,900,000

6,688,749

d

Novelis

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

1/30/30

......................

United

States

3,200,000

2,931,107

Senior

Note

,

144A,

3.25

%

,

11/15/26

.....................

United

States

2,700,000

2,527,317

d

POSCO

,

Senior

Note

,

144A,

5.625

%

,

1/17/26

................

South

Korea

7,950,000

7,933,330

28,247,313

Mortgage

Real

Estate

Investment

Trusts

(REITs)

0.3%

d

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.................

United

States

10,000,000

8,932,679

Multi-Utilities

0.6%

Dominion

Energy,

Inc.

,

A

,

Senior

Note

,

4.35

%

,

8/15/32

.........................

United

States

3,200,000

2,917,778

C

,

Senior

Note

,

3.375

%

,

4/01/30

........................

United

States

7,800,000

6,911,950

DTE

Energy

Co.

,

Senior

Note

,

4.875

%

,

6/01/28

...............

United

States

5,700,000

5,547,396

15,377,124

Office

REITs

0.1%

Alexandria

Real

Estate

Equities,

Inc.

,

Senior

Bond

,

5.25

%

,

5/15/36

United

States

2,200,000

2,070,093

Oil,

Gas

&

Consumable

Fuels

6.3%

d

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

8,700,000

7,243,232

d

Antero

Resources

Corp.

,

Senior

Note

,

144A,

7.625

%

,

2/01/29

....

United

States

4,969,000

5,093,737

d

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Secured

Note

,

144A,

9.25

%

,

7/15/29

................

United

States

4,400,000

4,551,869

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

2.95

%

,

7/15/30

..

Canada

3,700,000

3,178,842

d

Cheniere

Energy,

Inc.

,

Senior

Bond

,

144A,

5.65

%

,

4/15/34

......

United

States

1,600,000

1,566,963

d

CITGO

Petroleum

Corp.

,

Senior

Secured

Note

,

144A,

8.375

%

,

1/15/29

...........................................

United

States

7,300,000

7,561,185

d

Civitas

Resources,

Inc.

,

Senior

Note

,

144A,

8.375

%

,

7/01/28

.....................

United

States

3,300,000

3,446,632

Senior

Note

,

144A,

8.625

%

,

11/01/30

....................

United

States

1,000,000

1,064,856

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

d

Civitas

Resources,

Inc.,

(continued)

Senior

Note

,

144A,

8.75

%

,

7/01/31

......................

United

States

3,300,000

$

3,504,574

d

CrownRock

LP

/

CrownRock

Finance,

Inc.

,

Senior

Note

,

144A,

5

%

,

5/01/29

...........................................

United

States

6,500,000

6,409,203

d

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

4.375

%

,

6/15/31

.......

United

States

4,600,000

4,087,014

d

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/30/28

.................................

United

States

8,700,000

8,817,870

Energy

Transfer

LP

,

Senior

Bond

,

3.75

%

,

5/15/30

...........................

United

States

7,300,000

6,587,528

d

Senior

Note

,

144A,

6

%

,

2/01/29

........................

United

States

4,000,000

3,997,751

EnLink

Midstream

LLC

,

Senior

Bond

,

5.375

%

,

6/01/29

..........................

United

States

10,900,000

10,517,755

d

Senior

Note

,

144A,

5.625

%

,

1/15/28

.....................

United

States

1,700,000

1,671,738

d

EQM

Midstream

Partners

LP

,

Senior

Note

,

144A,

7.5

%

,

6/01/27

..

United

States

800,000

815,724

d

Galaxy

Pipeline

Assets

Bidco

Ltd.

,

Senior

Secured

Bond

,

144A,

2.16

%

,

3/31/34

.....................................

United

Arab

Emirates

2,431,200

2,032,730

d

Harbour

Energy

plc

,

Senior

Note

,

144A,

5.5

%

,

10/15/26

........

United

Kingdom

2,500,000

2,452,903

d

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond

,

144A,

6

%

,

2/01/31

........................

United

States

4,900,000

4,696,121

Senior

Bond

,

144A,

6.25

%

,

4/15/32

......................

United

States

1,700,000

1,642,787

d

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

5,000,000

4,838,221

d

Matador

Resources

Co.

,

Senior

Note

,

144A,

6.5

%

,

4/15/32

......

United

States

5,400,000

5,355,636

MPLX

LP

,

Senior

Note

,

2.65

%

,

8/15/30

.....................

United

States

15,000,000

12,643,176

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

4.5

%

,

5/15/30

United

States

10,000,000

9,391,564

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note

,

4.5

%

,

5/15/29

..

United

States

12,000,000

10,964,967

d

Var

Energi

ASA

,

Senior

Bond

,

144A,

8

%

,

11/15/32

............

Norway

9,000,000

9,910,620

d

Venture

Global

Calcasieu

Pass

LLC

,

Senior

Secured

Bond

,

144A,

4.125

%

,

8/15/31

.....................................

United

States

2,600,000

2,271,067

d

Venture

Global

LNG,

Inc.

,

Senior

Secured

Note

,

144A,

8.375

%

,

6/01/31

...........................................

United

States

5,500,000

5,647,798

d

Viper

Energy,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

11/01/31

........

United

States

3,600,000

3,713,958

d

Vital

Energy,

Inc.

,

Senior

Note

,

144A,

7.875

%

,

4/15/32

.........

United

States

6,300,000

6,396,827

162,074,848

Paper

&

Forest

Products

0.4%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........................

Brazil

7,100,000

6,128,497

DM3N

,

Senior

Bond

,

3.125

%

,

1/15/32

....................

Brazil

4,400,000

3,540,246

9,668,743

Passenger

Airlines

0.6%

d

American

Airlines,

Inc.

/

AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.75

%

,

4/20/29

............................

United

States

8,000,000

7,732,502

d

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

5,200,500

5,129,807

d

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

4/15/26

.

United

States

2,111,746

2,033,198

14,895,507

Personal

Care

Products

1.0%

d

BellRing

Brands,

Inc.

,

Senior

Note

,

144A,

7

%

,

3/15/30

.........

United

States

6,200,000

6,279,748

d

Coty,

Inc.

/

HFC

Prestige

Products,

Inc.

/

HFC

Prestige

International

US

LLC

,

Senior

Secured

Note

,

144A,

4.75

%

,

1/15/29

.........

United

States

8,000,000

7,465,053

Estee

Lauder

Cos.,

Inc.

(The)

,

Senior

Bond

,

4.65

%

,

5/15/33

.....

United

States

8,800,000

8,351,115

d

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

3,700,000

3,151,156

25,247,072

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

1.4%

d

Bayer

US

Finance

II

LLC

,

Senior

Bond

,

144A,

4.375

%

,

12/15/28

..

Germany

11,700,000

$

10,889,091

d

Endo

Finance

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

8.5

%

,

4/15/31

...........................................

United

States

3,200,000

3,255,416

d

Organon

&

Co.

/

Organon

Foreign

Debt

Co-Issuer

BV

,

Senior

Secured

Note

,

144A,

4.125

%

,

4/30/28

....................

United

States

7,000,000

6,381,948

Pfizer

Investment

Enterprises

Pte.

Ltd.

,

Senior

Bond

,

4.75

%

,

5/19/33

United

States

3,500,000

3,335,927

Royalty

Pharma

plc

,

Senior

Bond

,

3.3

%

,

9/02/40

..............

United

States

5,300,000

3,738,372

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

5.125

%

,

5/09/29

.....................................

Israel

9,100,000

8,626,897

36,227,651

Real

Estate

Management

&

Development

0.2%

d

China

Overseas

Finance

Cayman

VI

Ltd.

,

Senior

Bond

,

Reg

S,

5.95

%

,

5/08/24

.....................................

China

4,000,000

3,999,599

Software

0.3%

d

McAfee

Corp.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

............

United

States

8,000,000

7,417,724

Specialized

REITs

0.3%

d

Iron

Mountain,

Inc.

,

Senior

Note

,

144A,

7

%

,

2/15/29

...........

United

States

8,200,000

8,253,972

Specialty

Retail

0.2%

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

1,900,000

1,782,177

d

Michaels

Cos.,

Inc.

(The)

,

Senior

Secured

Note

,

144A,

5.25

%

,

5/01/28

...........................................

United

States

3,700,000

3,135,813

4,917,990

Technology

Hardware,

Storage

&

Peripherals

0.4%

Dell

International

LLC

/

EMC

Corp.

,

Senior

Bond

,

5.4

%

,

4/15/34

..

United

States

7,800,000

7,560,078

Teledyne

FLIR

LLC

,

Senior

Note

,

2.5

%

,

8/01/30

..............

United

States

2,100,000

1,749,663

9,309,741

Textiles,

Apparel

&

Luxury

Goods

0.7%

d

Hanesbrands,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/31

............

United

States

7,500,000

7,470,069

Tapestry,

Inc.

,

Senior

Bond

,

7.85

%

,

11/27/33

.................

United

States

9,300,000

9,718,740

17,188,809

Tobacco

0.9%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

12,400,000

11,006,694

d

Imperial

Brands

Finance

plc

,

Senior

Bond

,

144A,

4.25

%

,

7/21/25

......................

United

Kingdom

2,800,000

2,743,149

Senior

Bond

,

144A,

3.875

%

,

7/26/29

.....................

United

Kingdom

2,200,000

2,016,117

Philip

Morris

International,

Inc.

,

Senior

Bond

,

5.375

%

,

2/15/33

....

United

States

7,200,000

7,060,279

22,826,239

Trading

Companies

&

Distributors

1.2%

d

EquipmentShare.com,

Inc.

,

Secured

Note

,

144A,

8.625

%

,

5/15/32

.

United

States

7,100,000

7,232,551

d

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

10,200,000

9,036,921

d

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

5.5

%

,

7/15/27

..........

United

States

1,800,000

1,749,966

d

United

Rentals

North

America,

Inc.

,

Senior

Bond

,

144A,

6.125

%

,

3/15/34

...........................................

United

States

4,900,000

4,790,400

d

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

6.375

%

,

3/15/29

.....................

United

States

7,000,000

6,962,544

Senior

Note

,

144A,

6.625

%

,

3/15/32

.....................

United

States

1,000,000

996,571

30,768,953

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Transportation

Infrastructure

0.0%

†

d

Rutas

2

and

7

Finance

Ltd.

,

Senior

Secured

Bond

,

144A,

Zero

Cpn.,

9/30/36

...........................................

United

States

1,000,000

$

678,059

Wireless

Telecommunication

Services

0.6%

d

Altice

France

Holding

SA

,

Senior

Secured

Note

,

144A,

6

%

,

2/15/28

Luxembourg

2,000,000

585,380

Digicel

Group

Holdings

Ltd.

,

Zero

Cpn.,

11/17/33

.................................

Bermuda

685,800

36,131

Zero

Cpn.,

11/17/33

.................................

Bermuda

90,086

26,260

T-Mobile

USA,

Inc.

,

Senior

Bond

,

3.3

%

,

2/15/51

............................

United

States

4,800,000

3,153,143

Senior

Note

,

3.875

%

,

4/15/30

..........................

United

States

13,400,000

12,266,995

16,067,909

Total

Corporate

Bonds

(Cost

$

1,657,851,524

)

...................................

1,540,688,656

i

Senior

Floating

Rate

Interests

2.6%

Aerospace

&

Defense

0.1%

f

Alloy

FinCo

Ltd.

,

Term

Loan,

B

,

PIK,

14

%

,

3/06/25

.............

United

Kingdom

4,226,532

3,559,796

Air

Freight

&

Logistics

0.1%

j

,k

Rand

Parent

LLC

,

First

Lien,

CME

Term

Loan,

B

,

9.559

%

,

(

3-month

SOFR

+

4.25

%

),

3/17/30

..............................

United

States

1,263,261

1,271,239

k

Automobile

Components

0.2%

DexKo

Global,

Inc.

,

First

Lien,

Closing

Date

CME

Term

Loan

,

9.321

%

,

(

3-month

SOFR

+

3.75

%

),

10/04/28

...............

United

States

353,341

351,294

First

Brands

Group

LLC

,

First

Lien,

2021

CME

Term

Loan

,

10.591

%

,

(

3-month

SOFR

+

5

%

),

3/30/27

...........................................

United

States

1,232,873

1,181,709

Second

Lien,

2021

CME

Term

Loan

,

14.141

%

,

(

3-month

SOFR

+

8.5

%

),

3/30/28

......................................

United

States

1,029,361

983,040

Highline

Aftermarket

Acquisition

LLC

,

First

Lien,

Initial

CME

Term

Loan

,

9.916

%

,

(

1-month

SOFR

+

4.5

%

),

11/09/27

...........

United

States

439,005

440,467

Tenneco,

Inc.

,

First

Lien,

CME

Term

Loan,

B

,

10.17

%

,

(

3-month

SOFR

+

5

%

),

11/17/28

................................

United

States

411,746

404,258

TI

Group

Automotive

Systems

LLC

,

Refinancing

U.S.

CME

Term

Loan

,

8.68

%

,

(

1-month

SOFR

+

3.25

%

),

12/16/26

...........

United

States

294,510

295,738

3,656,506

a

a

a

a

a

a

Automobiles

0.0%

†

k

American

Trailer

World

Corp.

,

First

Lien,

Initial

CME

Term

Loan

,

9.166

%

,

(

1-month

SOFR

+

3.75

%

),

3/03/28

................

United

States

752,173

739,247

Beverages

0.0%

†

k

Triton

Water

Holdings,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

8.814

%

,

(

3-month

SOFR

+

3.25

%

),

3/31/28

................

United

States

537,750

536,304

k

Building

Products

0.1%

AZZ,

Inc.

,

Initial

CME

Term

Loan

,

8.566

%

,

(

1-month

SOFR

+

3.25

%

),

5/13/29

...........................................

United

States

658,799

663,621

Quikrete

Holdings,

Inc.

,

CME

Term

Loan,

B2

,

7.569

%

,

(

1-month

SOFR

+

2.25

%

),

3/19/29

..............................

United

States

408,282

409,158

Summit

Materials

LLC

,

CME

Term

Loan,

B2

,

7.799

%

,

(

3-month

SOFR

+

2.5

%

),

1/12/29

...............................

United

States

186,031

187,660

1,260,439

a

a

a

a

a

a

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

k

Capital

Markets

0.1%

Citadel

Securities

LP

,

CME

Term

Loan

,

7.566

%

,

(

1-month

SOFR

+

2.25

%

),

7/29/30

.....................................

United

States

408,364

$

409,642

Edelman

Financial

Engines

Center

LLC

(The)

,

First

Lien,

2021

Initial

CME

Term

Loan

,

8.93

%

,

(

1-month

SOFR

+

3.5

%

),

4/07/28

.....

United

States

247,686

248,124

Jane

Street

Group

LLC

,

2024

Repricing

CME

Term

Loan

,

7.93

%

,

(

1-month

SOFR

+

2.5

%

),

1/26/28

........................

United

States

407,279

408,089

Osmosis

Buyer

Ltd.

,

2022

Refinancing

CME

Term

Loan,

B

,

9.324

%

,

(

1-month

SOFR

+

4

%

),

7/31/28

.......................................

United

Kingdom

413,449

415,349

2023

Incremental

Delayed

Draw

CME

Term

Loan

,

9.567

%

,

(

1-month

SOFR

+

4.25

%

),

7/31/28

.......................

United

Kingdom

163,391

164,413

1,645,617

a

a

a

a

a

a

k

Chemicals

0.2%

Hexion

Holdings

Corp.

,

First

Lien,

Initial

CME

Term

Loan

,

9.976

%

,

(

3-month

SOFR

+

4.5

%

),

3/15/29

......................................

United

States

729,244

718,363

Second

Lien,

Initial

CME

Term

Loan

,

12.853

%

,

(

1-month

SOFR

+

7.438

%

),

3/15/30

....................................

United

States

682,252

612,663

Indicor

LLC

,

First

Lien,

Dollar

CME

Term

Loan,

B

,

9.302

%

,

(

3-month

SOFR

+

4

%

),

11/22/29

................................

United

States

349,735

352,882

INEOS

Quattro

Holdings

UK

Ltd.

,

2029

Dollar

CME

Term

Loan,

B

,

9.666

%

,

(

1-month

SOFR

+

4.25

%

),

4/02/29

................

United

Kingdom

404,063

403,811

INEOS

US

Finance

LLC

,

2027-II

Dollar

CME

Term

Loan

,

9.166

%

,

(

1-month

SOFR

+

3.75

%

),

11/08/27

......................

Luxembourg

805,760

809,576

LSF11

A5

Holdco

LLC

,

Fourth

Amendment

Incremental

CME

Term

Loan,

B

,

9.666

%

,

(

1-month

SOFR

+

4.25

%

),

10/15/28

........

United

States

632,445

634,975

Nouryon

Finance

BV

,

2023

CME

Term

Loan

,

9.423

%

,

(

1-month

SOFR

+

4

%

),

4/03/28

.................................

Netherlands

498,849

500,408

PMHC

II,

Inc.

,

Initial

CME

Term

Loan,

B

,

9.706

%

,

(

3-month

SOFR

+

4.25

%

),

4/23/29

.....................................

United

States

1,054,640

1,041,225

SCIH

Salt

Holdings,

Inc.

,

First

Lien,

Incremental

CME

Term

Loan,

B1

,

9.442

%

,

(

1-month

SOFR

+

4

%

),

3/16/27

...............

United

States

406,682

408,207

5,482,110

a

a

a

a

a

a

k

Commercial

Services

&

Supplies

0.2%

Allied

Universal

Holdco

LLC

,

Initial

U.S.

Dollar

CME

Term

Loan

,

9.166

%

,

(

1-month

SOFR

+

3.75

%

),

5/12/28

................

United

States

640,855

642,057

APX

Group,

Inc.

,

Initial

CME

Term

Loan

,

8.194

%

,

(

1-month

SOFR

+

2.75%;

3-month

SOFR

+

1.75%

),

7/10/28

..................

United

States

514,971

516,330

CCI

Buyer,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

9.302

%

,

(

3-month

SOFR

+

4

%

),

12/17/27

................................

United

States

836,417

836,940

Pitney

Bowes,

Inc.

,

Refinancing

CME

Term

Loan,

B

,

9.43

%

,

(

1-month

SOFR

+

4

%

),

3/17/28

.........................

United

States

2,180,930

2,180,014

Spin

Holdco,

Inc.

,

Initial

CME

Term

Loan

,

9.585

%

,

(

3-month

SOFR

+

4

%

),

3/04/28

.......................................

United

States

1,049,684

929,627

5,104,968

a

a

a

a

a

a

Communications

Equipment

0.0%

†

k

CommScope,

Inc.

,

Initial

CME

Term

Loan

,

8.68

%

,

(

1-month

SOFR

+

3.25

%

),

4/06/26

.....................................

United

States

442,204

390,984

Construction

&

Engineering

0.0%

†

k

USIC

Holdings,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

9.064

%

,

(

3-month

SOFR

+

3.5

%

),

5/12/28

........................

United

States

543,412

543,841

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Consumer

Finance

0.0%

†

k

Nuvei

Technologies

Corp.

,

Initial

CME

Term

Loan

,

8.416

%

,

(

1-month

SOFR

+

3

%

),

12/19/30

................................

Canada

272,117

$

272,968

k

Containers

&

Packaging

0.1%

Charter

Next

Generation,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

8.816

%

,

(

1-month

SOFR

+

3.5

%

),

12/01/27

................

United

States

404,379

406,357

Kleopatra

Finco

SARL

,

USD

CME

Term

Loan,

B

,

10.267

%

,

(

6-month

SOFR

+

4.725

%

),

2/12/26

.............................

Luxembourg

1,409,129

1,277,615

Pactiv

Evergreen,

Inc.

,

U.S.

CME

Term

Loan,

B3

,

8.68

%

,

(

1-month

SOFR

+

3.25

%

),

9/24/28

..............................

United

States

283,410

285,240

1,969,212

a

a

a

a

a

a

Diversified

Consumer

Services

0.0%

†

k

WW

International,

Inc.

,

Initial

CME

Term

Loan

,

8.93

%

,

(

1-month

SOFR

+

3.5

%

),

4/13/28

...............................

United

States

617,618

282,273

k

Diversified

Telecommunication

Services

0.0%

†

Altice

France

SA

,

USD

CME

Term

Loan,

B14

,

10.829

%

,

(

3-month

SOFR

+

5.5

%

),

8/15/28

...............................

France

253,096

190,850

Global

Tel*Link

Corp.

,

First

Lien,

CME

Term

Loan

,

9.666

%

,

(

1-month

SOFR

+

4.25

%

),

11/29/25

.............................

United

States

855,295

841,662

1,032,512

a

a

a

a

a

a

Entertainment

0.0%

†

k

Playtika

Holding

Corp.

,

CME

Term

Loan,

B1

,

8.18

%

,

(

1-month

SOFR

+

2.75

%

),

3/13/28

...................................

United

States

420,668

421,496

k

Financial

Services

0.0%

†

Red

Planet

Borrower

LLC

,

Initial

CME

Term

Loan

,

9.166

%

,

(

1-month

SOFR

+

3.75

%

),

10/02/28

.............................

United

States

427,305

419,748

Verscend

Holding

Corp.

,

CME

Term

Loan,

B1

,

9.445

%

,

(

1-month

SOFR

+

4

%

),

8/27/25

.................................

United

States

548,118

548,803

968,551

a

a

a

a

a

a

Ground

Transportation

0.0%

†

k

Avis

Budget

Car

Rental

LLC

,

New

CME

Term

Loan,

C

,

8.416

%

,

(

1-month

SOFR

+

3

%

),

3/16/29

.........................

United

States

680,523

678,965

k

Health

Care

Equipment

&

Supplies

0.0%

†

Medline

Borrower

LP

,

Refinancing

CME

Term

Loan

,

8.068

%

,

(

1-month

SOFR

+

2.75

%

),

10/23/28

......................

United

States

349,600

350,918

US

Radiology

Specialists,

Inc.

(US

Outpatient

Imaging

Services,

Inc.)

,

Closing

Date

CME

Term

Loan

,

10.702

%

,

(

3-month

SOFR

+

5.25

%

),

12/15/27

....................................

United

States

381,206

382,596

733,514

a

a

a

a

a

a

k

Health

Care

Providers

&

Services

0.2%

ADMI

Corp.

,

Amendment

No.

4

Refinancing

CME

Term

Loan

,

8.805

%

,

(

1-month

SOFR

+

3.375

%

),

12/23/27

..............

United

States

1,009,403

975,876

Charlotte

Buyer,

Inc.

,

First

Lien,

Initial

CME

Term

Loan,

B

,

10.571

%

,

(

1-month

SOFR

+

5.25

%

),

2/11/28

.......................

United

States

628,478

632,209

CNT

Holdings

I

Corp.

,

First

Lien,

Initial

CME

Term

Loan

,

8.83

%

,

(

3-month

SOFR

+

3.5

%

),

11/08/27

.......................

United

States

268,257

269,506

Medical

Solutions

Holdings,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

8.666

%

,

(

1-month

SOFR

+

3.25

%

),

11/01/28

...............

United

States

650,019

577,009

National

Mentor

Holdings,

Inc.

,

Second

Lien,

Initial

CME

Term

Loan

,

12.659

%

,

(

3-month

SOFR

+

7.25

%

),

3/02/29

...............

United

States

1,029,361

918,710

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

k

Health

Care

Providers

&

Services

(continued)

Pacific

Dental

Services

LLC

,

Refinancing

CME

Term

Loan

,

8.571

%

,

(

1-month

SOFR

+

3.25

%

),

3/15/31

.......................

United

States

408,866

$

410,359

Radiology

Partners,

Inc.

,

CME

Term

Loan,

B

,

10.587

%

,

(

3-month

SOFR

+

5

%

),

1/31/29

.................................

United

States

955,404

919,180

Surgery

Center

Holdings,

Inc.

,

Initial

CME

Term

Loan

,

8.815

%

,

(

1-month

SOFR

+

3.5

%

),

12/19/30

.......................

United

States

58,654

59,073

U.S.

Anesthesia

Partners,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

9.692

%

,

(

1-month

SOFR

+

4.25

%

),

10/01/28

...............

United

States

990,013

960,208

Waystar

Technologies,

Inc.

,

First

Lien,

2024

Initial

CME

Term

Loan

,

9.316

%

,

(

1-month

SOFR

+

4

%

),

10/22/29

..................

United

States

357,687

360,146

6,082,276

a

a

a

a

a

a

k

Hotels,

Restaurants

&

Leisure

0.2%

f

,j

24

Hour

Fitness

Worldwide,

Inc.

,

CME

Term

Loan,

1

,

PIK,

6.571

%

,

(

3-month

SOFR

+

1

%

),

12/29/25

........................

United

States

2,319,266

1,143,394

Bally's

Corp.

,

CME

Term

Loan,

B

,

8.836

%

,

(

3-month

SOFR

+

3.25

%

),

10/02/28

....................................

United

States

1,716,920

1,621,150

Dave

&

Buster's,

Inc.

,

2024

Refinancing

CME

Term

Loan,

B

,

8.625

%

,

(

1-month

SOFR

+

3.25

%

),

6/29/29

.......................

United

States

416,566

418,534

Hilton

Grand

Vacations

Borrower

LLC

,

Initial

CME

Term

Loan

,

7.816

%

,

(

1-month

SOFR

+

2.5

%

),

8/02/28

.................

United

States

365,515

366,498

Ontario

Gaming

GTA

LP

,

CME

Term

Loan,

B

,

9.559

%

,

(

3-month

SOFR

+

4.25

%

),

8/01/30

..............................

Canada

202,369

203,718

Raptor

Acquisition

Corp.

,

First

Lien,

CME

Term

Loan,

B

,

9.59

%

,

(

3-month

SOFR

+

4

%

),

11/01/26

........................

United

States

544,823

547,547

Scientific

Games

Holdings

LP

,

First

Lien,

Initial

Dollar

CME

Term

Loan

,

8.556

%

,

(

3-month

SOFR

+

3.25

%

),

4/04/29

...........

United

States

281,962

282,425

4,583,266

a

a

a

a

a

a

Household

Durables

0.0%

†

k

Hunter

Douglas

Holding

BV

,

CME

Term

Loan,

B1

,

8.824

%

,

(

3-month

SOFR

+

3.5

%

),

2/26/29

...............................

Netherlands

203,028

201,977

k

Insurance

0.2%

Acrisure

LLC

,

First

Lien,

2021-1

Additional

Term

Loan

,

9.18

%

,

(

1-month

Synthetic

USD

LIBOR

+

3.75

%

),

2/15/27

..........................

United

States

415,676

416,715

First

Lien,

2021-2

Additional

Term

Loan

,

9.68

%

,

(

1-month

Synthetic

USD

LIBOR

+

4.25

%

),

2/15/27

..........................

United

States

283,834

285,135

AssuredPartners,

Inc.

,

2024

CME

Term

Loan

,

8.827

%

,

(

1-month

SOFR

+

3.5

%

),

2/14/31

...............................

United

States

790,484

794,840

Asurion

LLC

,

New

CME

Term

Loan,

B10

,

9.416

%

,

(

1-month

SOFR

+

4

%

),

8/19/28

...........................................

United

States

240,807

234,520

New

CME

Term

Loan,

B11

,

9.666

%

,

(

1-month

SOFR

+

4.25

%

),

8/19/28

...........................................

United

States

87,852

85,903

Second

Lien,

New

CME

Term

Loan,

B4

,

10.68

%

,

(

1-month

SOFR

+

5.25

%

),

1/20/29

...................................

United

States

2,300,693

2,080,689

3,897,802

a

a

a

a

a

a

k

IT

Services

0.1%

Aventiv

Technologies

LLC

,

First

Lien,

Initial

CME

Term

Loan

,

10.461

%

,

(

3-month

SOFR

+

4.89

%

),

11/01/24

....................................

United

States

1,406,408

1,047,782

First

Lien,

Second-Out

CME

Term

Loan

,

13.071

%

,

(

3-month

SOFR

+

7.5

%

),

7/31/25

....................................

United

States

27,234

27,574

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

k

IT

Services

(continued)

Gainwell

Acquisition

Corp.

,

First

Lien,

CME

Term

Loan,

B

,

9.409

%

,

(

3-month

SOFR

+

4

%

),

10/01/27

........................

United

States

834,350

$

798,110

Peraton

Corp.

,

First

Lien,

CME

Term

Loan,

B

,

9.166

%

,

(

1-month

SOFR

+

3.75

%

),

2/01/28

..............................

United

States

219,489

219,841

2,093,307

a

a

a

a

a

a

k

Media

0.1%

Cengage

Learning,

Inc.

,

CME

Term

Loan,

B

,

9.565

%

,

(

1-month

SOFR

+

4.25

%

),

3/24/31

..............................

United

States

500,000

501,608

Gray

Television,

Inc.

,

CME

Term

Loan,

D

,

8.442

%

,

(

1-month

SOFR

+

3

%

),

12/01/28

......................................

United

States

775,546

731,216

MH

Sub

I

LLC

(Micro

Holding

Corp.)

,

First

Lien,

2023

May

Incremental

CME

Term

Loan

,

9.566

%

,

(

1-month

SOFR

+

4.25

%

),

5/03/28

...........................................

United

States

256,051

255,527

Univision

Communications,

Inc.

,

First

Lien,

2021

Replacement

Converted

CME

Term

Loan

,

8.68

%

,

(

1-month

SOFR

+

3.25

%

),

3/15/26

...........................................

United

States

648,302

649,553

2,137,904

a

a

a

a

a

a

Metals

&

Mining

0.0%

†

k

Arsenal

AIC

Parent

LLC

,

2024

CME

Term

Loan,

B

,

9.08

%

,

(

1-month

SOFR

+

3.75

%

),

8/18/30

..............................

United

States

236,890

238,963

k

Passenger

Airlines

0.1%

AAdvantage

Loyalty

IP

Ltd.

(American

Airlines,

Inc.)

,

Initial

CME

Term

Loan

,

10.336

%

,

(

3-month

SOFR

+

4.75

%

),

4/20/28

......

United

States

361,855

376,819

American

Airlines,

Inc.

,

Initial

CME

Term

Loan

,

8.775

%

,

(

6-month

SOFR

+

3.5

%

),

6/04/29

...............................

United

States

617,618

620,580

United

Airlines,

Inc.

,

2024

CME

Term

Loan,

B

,

8.076

%

,

(

3-month

SOFR

+

2.75

%

),

2/22/31

..............................

United

States

317,956

319,695

1,317,094

a

a

a

a

a

a

k

Pharmaceuticals

0.1%

Endo

Luxembourg

Finance

Co.

I

SARL

,

Term

Loan,

B

,

9.828

%

,

(

3-month

SOFR

+

4.5

%

),

4/09/31

........................

United

States

1,754,926

1,752,513

Grifols

Worldwide

Operations

Ltd.

,

Dollar

CME

Term

Loan,

B

,

7.459

%

,

(

3-month

SOFR

+

2

%

),

11/15/27

..................

Spain

307,205

300,966

Jazz

Pharmaceuticals

plc

,

Additional

Dollar

CME

Term

Loan,

B1

,

8.43

%

,

(

1-month

SOFR

+

3

%

),

5/05/28

...................

United

States

628,616

633,038

Organon

&

Co.

,

Dollar

CME

Term

Loan

,

8.433

%

,

(

1-month

SOFR

+

3

%

),

6/02/28

.......................................

United

States

403,489

406,201

3,092,718

a

a

a

a

a

a

Semiconductors

&

Semiconductor

Equipment

0.0%

†

k

MKS

Instruments,

Inc.

,

2023-1

Dollar

CME

Term

Loan,

B

,

7.823

%

,

(

1-month

SOFR

+

2.5

%

),

8/17/29

........................

United

States

562,951

564,713

Software

0.2%

k

Genesys

Cloud

Services

Holdings

I

LLC

,

2024

Incremental

No.

2

Dollar

CME

Term

Loan

,

8.816

%

,

(

1-month

SOFR

+

3.5

%

),

12/01/27

..........................................

United

States

597,664

601,130

k

Idera,

Inc.

,

First

Lien,

CME

Term

Loan,

B1

,

9.206

%

,

(

3-month

SOFR

+

3.75

%

),

3/02/28

...................................

United

States

575,030

573,546

k

Ivanti

Software,

Inc.

,

First

Lien,

2021

Specified

Refinancing

CME

Term

Loan

,

9.814

%

,

(

3-month

SOFR

+

4.25

%

),

12/01/27

......................

United

States

1,099,684

1,024,427

First

Lien,

First

Amendment

CME

Term

Loan

,

9.555

%

,

(

3-month

SOFR

+

4

%

),

12/01/27

................................

United

States

125,626

116,361

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

i

Senior

Floating

Rate

Interests

(continued)

Software

(continued)

k

McAfee

Corp.

,

CME

Term

Loan,

B1

,

9.177

%

,

(

1-month

SOFR

+

3.75

%

),

3/01/29

.....................................

United

States

640,819

$

643,046

k

Polaris

Newco

LLC

,

First

Lien,

Dollar

CME

Term

Loan

,

9.591

%

,

(

3-month

SOFR

+

4

%

),

6/02/28

.........................

United

States

810,039

806,277

k

Rocket

Software,

Inc.

,

Extended

Dollar

CME

Term

Loan

,

10.066

%

,

(

1-month

SOFR

+

4.75

%

),

11/28/28

......................

United

States

412,000

410,295

a

,c

,g

WorkCapital

BSD

SARL

,

Term

Loan

,

6.5

%

,

1/01/38

............

Luxembourg

20,000,000

—

4,175,082

a

a

a

a

a

a

k

Specialty

Retail

0.3%

Evergreen

AcqCo

1

LP

,

Initial

CME

Term

Loan

,

9.36

%

,

(

3-month

SOFR

+

3.75

%

),

4/26/28

..............................

United

States

427,585

429,991

GNC

Holdings,

Inc.

,

Second

Lien,

CME

Term

Loan

,

11.427

%

,

(

1-month

SOFR

+

6

%

),

10/07/26

........................

United

States

3,006,066

2,404,853

Great

Outdoors

Group

LLC

,

CME

Term

Loan,

B2

,

9.18

%

,

(

1-month

SOFR

+

3.75

%

),

3/06/28

..............................

United

States

448,464

449,224

Michaels

Cos.,

Inc.

(The)

,

CME

Term

Loan,

B

,

9.821

%

,

(

3-month

SOFR

+

4.25

%

),

4/15/28

..............................

United

States

591,139

552,647

Park

River

Holdings,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

8.814

%

,

(

3-month

SOFR

+

3.25

%

),

12/28/27

......................

United

States

229,026

226,551

RealTruck

Group,

Inc.

,

Initial

CME

Term

Loan

,

8.93

%

,

(

1-month

SOFR

+

3.5

%

),

1/31/28

...............................

United

States

626,496

622,975

Restoration

Hardware,

Inc.

,

2022

Incremental

CME

Term

Loan

,

8.666

%

,

(

1-month

SOFR

+

3.25

%

),

10/20/28

...............

United

States

858,002

847,277

Staples,

Inc.

,

2019

Refinancing

New

Term

Loan,

B1

,

10.443

%

,

(

1-month

Synthetic

USD

LIBOR

+

5

%

),

4/16/26

.............

United

States

941,436

931,536

White

Cap

Supply

Holdings

LLC

,

Initial

Closing

Date

CME

Term

Loan

,

9.066

%

,

(

1-month

SOFR

+

3.75

%

),

10/19/27

..........

United

States

213,745

214,760

6,679,814

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

0.0%

†

k

Magenta

Buyer

LLC

,

First

Lien,

Initial

CME

Term

Loan

,

10.574

%

,

(

3-month

SOFR

+

5

%

),

7/27/28

.........................

United

States

665,023

339,368

Textiles,

Apparel

&

Luxury

Goods

0.0%

†

k

Hanesbrands,

Inc.

,

Initial

CME

Term

Loan,

B

,

9.066

%

,

(

1-month

SOFR

+

3.75

%

),

3/08/30

..............................

United

States

611,571

612,843

k

Transportation

Infrastructure

0.0%

†

First

Student

Bidco,

Inc.

,

Initial

CME

Term

Loan,

B

,

8.564

%

,

(

3-month

SOFR

+

3

%

),

7/21/28

United

States

210,121

210,663

Initial

CME

Term

Loan,

C

,

8.564

%

,

(

3-month

SOFR

+

3

%

),

7/21/28

United

States

63,879

64,044

LaserShip,

Inc.

,

First

Lien,

Initial

CME

Term

Loan

,

10.071

%

,

(

3-month

SOFR

+

4.5

%

),

5/07/28

........................

United

States

679,138

638,390

913,097

a

a

a

a

a

a

Total

Senior

Floating

Rate

Interests

(Cost

$

87,066,359

)

..........................

67,480,766

l

Marketplace

Loans

1.5%

a

Financial

Services

1.5%

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$

43,396,973

)

....................................

37,995,687

Foreign

Government

and

Agency

Securities

2.2%

d

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

m

13,600,000

12,098,370

d

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

m

11,500,000

10,883,715

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Colombia

Government

Bond

,

Senior

Bond

,

9.85

%

,

6/28/27

......

Colombia

55,750,000,000

COP

$

13,629,448

d

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

9,500,000

7,708,615

d

Electricite

de

France

SA

,

Senior

Note

,

144A,

5.7

%

,

5/23/28

......

France

1,700,000

1,707,365

d

Korea

Electric

Power

Corp.

,

Senior

Note

,

144A,

5.375

%

,

4/06/26

.

South

Korea

3,400,000

3,389,089

Petroleos

Mexicanos

,

Senior

Note

,

10

%

,

2/07/33

..............

Mexico

3,200,000

3,137,241

d

Romania

Government

Bond

,

Senior

Bond

,

144A,

6.125

%

,

1/22/44

.

Romania

4,700,000

4,410,480

Total

Foreign

Government

and

Agency

Securities

(Cost

$

69,258,219

)

..............

56,964,323

U.S.

Government

and

Agency

Securities

17.9%

FFCB

,

2.1

%,

2/25/36

...................................

United

States

7,700,000

5,577,779

U.S.

Treasury

Bonds

,

6.875

%,

8/15/25

.....................................

United

States

1,000,000

1,024,922

2.875

%,

5/15/49

.....................................

United

States

13,400,000

9,526,039

U.S.

Treasury

Notes

,

1.75

%,

12/31/24

.....................................

United

States

31,500,000

30,772,558

4.125

%,

1/31/25

.....................................

United

States

30,500,000

30,237,502

1.5

%,

2/15/25

......................................

United

States

66,800,000

64,816,106

n

Index

Linked,

0.625

%,

1/15/26

..........................

United

States

27,000,000

34,102,539

3.875

%,

1/15/26

.....................................

United

States

32,500,000

31,850,000

4

%,

2/15/26

........................................

United

States

85,000,000

83,434,473

2.375

%,

4/30/26

.....................................

United

States

100,000

94,998

3.625

%,

5/15/26

.....................................

United

States

3,500,000

3,406,006

4.375

%,

8/15/26

.....................................

United

States

12,100,000

11,940,951

2.75

%,

7/31/27

.....................................

United

States

39,000,000

36,563,262

3.875

%,

11/30/27

....................................

United

States

43,700,000

42,342,057

2.875

%,

5/15/28

.....................................

United

States

17,000,000

15,821,289

3.125

%,

11/15/28

....................................

United

States

15,100,000

14,106,703

3.875

%,

9/30/29

.....................................

United

States

18,700,000

17,946,887

3.5

%,

1/31/30

......................................

United

States

15,600,000

14,647,547

4.125

%,

8/31/30

.....................................

United

States

15,000,000

14,518,652

Total

U.S.

Government

and

Agency

Securities

(Cost

$

467,878,460

)

................

462,730,270

Asset-Backed

Securities

3.7%

Commercial

Services

&

Supplies

0.1%

d,k

Galaxy

XXVIII

CLO

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

7.54

%

,

(

3-month

SOFR

+

2.212

%

),

7/15/31

.

.............................

United

States

3,070,000

3,072,731

Financial

Services

3.6%

d,k

Carlyle

Direct

Lending

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

7.79

%

,

(

3-month

SOFR

+

2.462

%

),

10/15/31

.

....................

United

States

12,000,000

12,050,465

d

,k

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2013-3A

,

BR

,

144A,

FRN

,

7.29

%

,

(

3-month

SOFR

+

1.962

%

),

10/15/30

..........................................

United

States

300,000

300,888

2014-2RA

,

B

,

144A,

FRN

,

7.394

%

,

(

3-month

SOFR

+

2.087

%

),

5/15/31

...........................................

United

States

580,000

580,659

d

,o

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2019-26

,

PT

,

144A,

FRN

,

13.482

%

,

8/15/44

................

United

States

122,686

116,957

2019-31

,

PT

,

144A,

FRN

,

9.601

%

,

9/15/44

.................

United

States

121,988

113,566

2019-37

,

PT

,

144A,

FRN

,

15.123

%

,

10/17/44

...............

United

States

139,222

132,790

2019-42

,

PT

,

144A,

FRN

,

14.183

%

,

11/15/44

...............

United

States

140,276

132,978

2019-51

,

PT

,

144A,

FRN

,

13.703

%

,

1/15/45

................

United

States

192,963

183,217

2019-52

,

PT

,

144A,

FRN

,

14.256

%

,

1/15/45

................

United

States

165,877

157,346

2019-S2

,

PT

,

144A,

FRN

,

13.654

%

,

5/16/44

................

United

States

17,774

17,508

2019-S3

,

PT

,

144A,

FRN

,

9.085

%

,

6/15/44

.................

United

States

17,975

17,594

2019-S4

,

PT

,

144A,

FRN

,

4.658

%

,

8/15/44

.................

United

States

46,746

45,721

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Financial

Services

(continued)

d,o

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I,

(continued)

2019-S5

,

PT

,

144A,

FRN

,

6.992

%

,

9/15/44

.................

United

States

73,755

$

70,106

2019-S6

,

PT

,

144A,

FRN

,

7.352

%

,

10/17/44

................

United

States

104,454

98,818

2019-S7

,

PT

,

144A,

FRN

,

7.153

%

,

12/15/44

................

United

States

73,155

69,377

2019-S8

,

PT

,

144A,

FRN

,

8.461

%

,

1/15/45

.................

United

States

98,073

92,367

2020-2

,

PT

,

144A,

FRN

,

14.818

%

,

3/15/45

.................

United

States

188,235

177,618

2020-7

,

PT

,

144A,

FRN

,

13.611

%

,

4/17/45

.................

United

States

120,337

112,050

d,k

Dryden

75

CLO

Ltd.

,

2019-75A

,

AR2

,

144A,

FRN

,

6.63

%

,

(

3-month

SOFR

+

1.302

%

),

4/15/34

.

.............................

United

States

30,321,000

30,327,932

d

Home

Partners

of

America

Trust

,

2021-2

,

B

,

144A,

2.302

%

,

12/17/26

......................

United

States

11,890,810

10,807,116

2021-3

,

B

,

144A,

2.649

%

,

1/17/41

.......................

United

States

4,346,025

3,794,036

d,k

LCM

XVII

LP

,

17A

,

BRR

,

144A,

FRN

,

7.19

%

,

(

3-month

SOFR

+

1.862

%

),

10/15/31

.

...................................

United

States

4,590,000

4,598,744

d,k

Neuberger

Berman

CLO

XXII

Ltd.

,

2016-22A

,

CR

,

144A,

FRN

,

7.779

%

,

(

3-month

SOFR

+

2.462

%

),

10/17/30

.

..............

United

States

2,129,630

2,129,630

d,k

Northwoods

Capital

Ltd.

,

2018-11BA

,

A1

,

144A,

FRN

,

6.688

%

,

(

3-month

SOFR

+

1.362

%

),

4/19/31

.

.....................

United

States

6,610,556

6,628,343

d,k

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

7.385

%

,

(

3-month

SOFR

+

2.062

%

),

10/24/30

.

..............

United

States

3,914,730

3,914,730

d,k

Octagon

Investment

Partners

36

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

6.56

%

,

(

3-month

SOFR

+

1.232

%

),

4/15/31

.

................

United

States

6,596,731

6,606,626

d

,o

Prosper

Pass-Thru

Trust

III

,

2020-PT1

,

A

,

144A,

FRN

,

10.558

%

,

3/15/26

................

United

States

101,532

91,255

2020-PT2

,

A

,

144A,

FRN

,

12.371

%

,

4/15/26

................

United

States

129,720

119,130

2020-PT3

,

A

,

144A,

FRN

,

2.553

%

,

5/15/26

.................

United

States

36,532

30,468

d,k

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

7.79

%

,

(

3-month

SOFR

+

2.462

%

),

1/15/31

.

...................................

United

States

345,838

345,838

d

,o

Upgrade

Master

Pass-Thru

Trust

,

2019-PT1

,

A

,

144A,

FRN

,

12.058

%

,

6/15/25

................

United

States

20,493

17,742

2019-PT2

,

A

,

144A,

FRN

,

11.192

%

,

2/15/26

................

United

States

84,214

83,186

d

,k

Voya

CLO

Ltd.

,

2013-2A

,

A2AR

,

144A,

FRN

,

6.985

%

,

(

3-month

SOFR

+

1.662

%

),

4/25/31

...........................................

United

States

2,200,000

2,202,783

2013-2A

,

BR

,

144A,

FRN

,

7.435

%

,

(

3-month

SOFR

+

2.112

%

),

4/25/31

...........................................

United

States

5,770,000

5,782,851

2016-1A

,

BR

,

144A,

FRN

,

7.386

%

,

(

3-month

SOFR

+

2.062

%

),

1/20/31

...........................................

United

States

590,000

589,699

92,540,134

a

a

a

a

a

a

Passenger

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

.

..

United

States

604,800

590,889

Total

Asset-Backed

Securities

(Cost

$

97,683,494

)

...............................

96,203,754

Commercial

Mortgage-Backed

Securities

0.5%

Financial

Services

0.5%

o

Benchmark

Mortgage

Trust

,

2023-V3

,

A3

,

FRN

,

6.363

%

,

7/15/56

..

United

States

640,000

653,000

d

,k

BX

Commercial

Mortgage

Trust

,

2021-VOLT

,

A

,

144A,

FRN

,

6.135

%

,

(

1-month

SOFR

+

0.814

%

),

9/15/36

...........................................

United

States

2,480,000

2,456,898

2021-VOLT

,

B

,

144A,

FRN

,

6.385

%

,

(

1-month

SOFR

+

1.064

%

),

9/15/36

...........................................

United

States

3,890,000

3,849,532

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

d,k

BX

Commercial

Mortgage

Trust,

(continued)

2022-LP2

,

A

,

144A,

FRN

,

6.334

%

,

(

1-month

SOFR

+

1.013

%

),

2/15/39

...........................................

United

States

7,494,542

$

7,464,449

14,423,879

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$

14,491,714

)

................

14,423,879

Mortgage-Backed

Securities

12.3%

p

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.0%

†

FHLMC

,

6.348

%,

(

1-year

CMT

T-Note

+/-

MBS

Margin),

1/01/33

..

United

States

8,039

7,952

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

5.4%

FHLMC

Gold

Pool,

20

Year

,

5

%,

5/01/27

-

5/01/30

.............

United

States

76,281

75,302

FHLMC

Gold

Pool,

30

Year

,

4.5

%,

10/01/40

.................

United

States

33,246

31,654

FHLMC

Gold

Pool,

30

Year

,

5

%,

3/01/34

-

2/01/38

.............

United

States

215,239

211,533

FHLMC

Gold

Pool,

30

Year

,

5.5

%,

6/01/33

-

6/01/36

...........

United

States

316,543

315,050

FHLMC

Gold

Pool,

30

Year

,

6

%,

6/01/33

-

6/01/37

.............

United

States

142,240

143,035

FHLMC

Gold

Pool,

30

Year

,

6.5

%,

12/01/25

-

6/01/36

..........

United

States

29,683

30,447

FHLMC

Gold

Pool,

30

Year

,

7

%,

8/01/32

....................

United

States

1,580

1,615

FHLMC

Gold

Pool,

30

Year

,

7.5

%,

1/01/26

-

1/01/31

...........

United

States

1,562

1,596

FHLMC

Gold

Pool,

30

Year

,

8

%,

11/01/25

...................

United

States

12

12

FHLMC

Gold

Pool,

30

Year

,

9

%,

12/01/24

...................

United

States

2

2

FHLMC

Pool,

30

Year

,

2

%,

3/01/52

........................

United

States

34,482,742

26,096,056

FHLMC

Pool,

30

Year

,

4

%,

6/01/52

........................

United

States

36,706,536

32,880,801

FHLMC

Pool,

30

Year

,

4.5

%,

8/01/52

.......................

United

States

56,439,177

52,052,089

FHLMC

Pool,

30

Year

,

5.5

%,

11/01/52

......................

United

States

26,745,595

26,070,161

137,909,353

p

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA

,

6.279

%,

(

1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

..

United

States

44,314

44,378

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

6.9%

FNMA,

15

Year

,

2.5

%,

7/01/27

...........................

United

States

43,095

41,334

FNMA,

20

Year

,

4.5

%,

3/01/28

...........................

United

States

12,610

12,337

FNMA,

20

Year

,

5

%,

1/01/26

-

6/01/31

......................

United

States

108,934

107,266

FNMA,

30

Year

,

3

%,

9/01/48

-

9/01/51

......................

United

States

15,646,566

13,131,671

FNMA,

30

Year

,

4

%,

2/01/49

.............................

United

States

7,844,829

7,209,047

FNMA,

30

Year

,

4.5

%,

2/01/41

...........................

United

States

119,240

113,372

FNMA,

30

Year

,

5

%,

10/01/35

............................

United

States

258,222

252,238

FNMA,

30

Year

,

5.5

%,

9/01/33

-

12/01/35

...................

United

States

387,637

385,864

FNMA,

30

Year

,

6

%,

6/01/34

-

5/01/38

......................

United

States

709,260

711,226

FNMA,

30

Year

,

6

%,

8/01/53

.............................

United

States

25,909,730

25,696,228

FNMA,

30

Year

,

6.5

%,

3/01/28

-

10/01/37

...................

United

States

110,266

112,570

FNMA,

30

Year

,

7.5

%,

10/01/29

...........................

United

States

1,739

1,775

FNMA,

30

Year

,

8

%,

1/01/25

-

5/01/26

......................

United

States

228

228

q

FNMA,

Single-family,

30

Year

,

2

%,

5/25/54

..................

United

States

97,140,000

73,341,589

q

FNMA,

Single-family,

30

Year

,

5

%,

5/25/54

..................

United

States

7,710,000

7,306,489

q

FNMA,

Single-family,

30

Year

,

5.5

%,

5/25/54

.................

United

States

51,860,000

50,340,875

178,764,109

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.0%

†

GNMA

I,

30

Year

,

8

%,

2/15/25

............................

United

States

1

1

GNMA

I,

Single-family,

30

Year

,

5

%,

6/15/34

-

7/15/34

..........

United

States

35,250

34,597

GNMA

I,

Single-family,

30

Year

,

5.5

%,

2/15/33

-

6/15/36

........

United

States

154,961

156,217

GNMA

I,

Single-family,

30

Year

,

6

%,

8/15/36

.................

United

States

9,961

10,312

GNMA

I,

Single-family,

30

Year

,

6.5

%,

2/15/29

................

United

States

834

848

GNMA

I,

Single-family,

30

Year

,

7

%,

5/15/28

.................

United

States

26

26

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

I,

Single-family,

30

Year

,

7.5

%,

1/15/26

-

5/15/27

........

United

States

177

$

177

GNMA

I,

Single-family,

30

Year

,

8

%,

7/15/26

-

9/15/27

..........

United

States

983

983

GNMA

I,

Single-family,

30

Year

,

8.5

%,

8/15/24

................

United

States

3

3

GNMA

I,

Single-family,

30

Year

,

9.5

%,

6/15/25

................

United

States

74

74

GNMA

II,

Single-family,

30

Year

,

5

%,

9/20/33

-

11/20/33

.........

United

States

69,375

68,343

GNMA

II,

Single-family,

30

Year

,

5.5

%,

6/20/34

...............

United

States

36,489

36,961

GNMA

II,

Single-family,

30

Year

,

6

%,

11/20/34

................

United

States

38,963

40,315

GNMA

II,

Single-family,

30

Year

,

6.5

%,

7/20/28

-

12/20/31

.......

United

States

22,295

22,749

GNMA

II,

Single-family,

30

Year

,

7.5

%,

4/20/32

...............

United

States

6,292

6,383

377,989

Total

Mortgage-Backed

Securities

(Cost

$

334,108,382

)

...........................

317,103,781

Residential

Mortgage-Backed

Securities

2.7%

Financial

Services

2.7%

d

BRAVO

Residential

Funding

Trust

,

2019-1

,

A1C

,

144A,

3.5

%

,

3/25/58

.......................

United

States

482,068

475,902

o

2019-2

,

A3

,

144A,

FRN

,

3.5

%

,

10/25/44

...................

United

States

2,830,639

2,646,208

d

,o

CIM

Trust

,

2019-INV1

,

A1

,

144A,

FRN

,

4

%

,

2/25/49

..................

United

States

684,310

627,030

2019-INV2

,

A3

,

144A,

FRN

,

4

%

,

5/25/49

..................

United

States

1,491,651

1,350,040

d

,o

COLT

Mortgage

Loan

Trust

,

2022-4

,

A1

,

144A,

FRN

,

4.301

%

,

3/25/67

...........................................

United

States

3,433,115

3,289,067

k

FHLMC

STACR

Debt

Notes

,

2015-DNA1

,

M3

,

FRN

,

8.745

%

,

(

30-day

SOFR

Average

+

3.414

%

),

10/25/27

...................................

United

States

146,650

147,948

2016-DNA2

,

M3

,

FRN

,

10.095

%

,

(

30-day

SOFR

Average

+

4.764

%

),

10/25/28

...................................

United

States

4,830,397

5,073,969

k

FNMA

Connecticut

Avenue

Securities

,

2014-C03

,

2M2

,

FRN

,

8.345

%

,

(

30-day

SOFR

Average

+

3.014

%

),

7/25/24

...........................................

United

States

425,077

426,193

2015-C01

,

1M2

,

FRN

,

9.745

%

,

(

30-day

SOFR

Average

+

4.414

%

),

2/25/25

...........................................

United

States

977,001

996,792

2015-C02

,

1M2

,

FRN

,

9.444

%

,

(

30-day

SOFR

Average

+

4.114

%

),

5/25/25

...........................................

United

States

3,945,389

4,055,963

2015-C03

,

1M2

,

FRN

,

10.445

%

,

(

30-day

SOFR

Average

+

5.114

%

),

7/25/25

....................................

United

States

4,705,686

4,891,586

2016-C01

,

1M2

,

FRN

,

12.194

%

,

(

30-day

SOFR

Average

+

6.864

%

),

8/25/28

....................................

United

States

704,999

746,564

2017-C04

,

2M2

,

FRN

,

8.295

%

,

(

30-day

SOFR

Average

+

2.964

%

),

11/25/29

..........................................

United

States

3,692,066

3,806,416

d

,o

J.P.

Morgan

Mortgage

Trust

,

2021-13

,

A4

,

144A,

FRN

,

2.5

%

,

4/25/52

...................

United

States

11,680,109

10,014,754

2021-15

,

A4

,

144A,

FRN

,

2.5

%

,

6/25/52

...................

United

States

3,800,356

3,237,265

d

,o

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.5

%

,

4/25/66

...........................................

United

States

5,540,052

5,327,046

d

,o

OBX

Trust

,

2021-J3

,

A4

,

144A,

FRN

,

2.5

%

,

10/25/51

...........

United

States

2,439,421

2,087,783

d

,o

Provident

Funding

Associates

LLP

,

2021-J1

,

A3

,

144A,

FRN

,

2.5

%

,

2/20/49

...........................................

United

States

8,098,275

6,893,583

d

,o

Provident

Funding

Mortgage

Trust

,

2019-1

,

A2

,

144A,

FRN

,

3

%

,

12/25/49

..........................................

United

States

1,460,208

1,205,480

d

,o

PSMC

Trust

,

2021-3

,

A3

,

144A,

FRN

,

2.5

%

,

8/25/51

...........

United

States

13,981,480

12,080,603

69,380,192

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$

78,020,574

)

.................

69,380,192

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

†

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

..............

South

Africa

620,001

$

—

b

Mesquite

Energy,

Inc.,

Escrow

Account

.....................

United

States

6,000,000

345,000

Total

Escrows

and

Litigation

Trusts

(Cost

$

5,707,489

)

...........................

345,000

Total

Long

Term

Investments

(Cost

$

2,872,162,909

)

.............................

2,668,154,542

a

Short

Term

Investments

0.7%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.7%

r,s

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio

,

5.006

%

....

United

States

17,475,027

17,475,027

Total

Money

Market

Funds

(Cost

$

17,475,027

)

..................................

17,475,027

Total

Short

Term

Investments

(Cost

$

17,475,027

)

................................

17,475,027

a

Total

Investments

(Cost

$

2,889,637,936

)

103.9

%

................................

$2,685,629,569

Other

Assets,

less

Liabilities

(

3.9

)

%

...........................................

(100,242,450)

Net

Assets

100.0%

...........................................................

$2,585,387,119

a

a

a

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

9

regarding

restricted

securities.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

April

30,

2024,

the

aggregate

value

of

these

securities

was

$1,144,933,962,

representing

44.3%

of

net

assets.

e

The

coupon

rate

shown

represents

the

rate

at

period

end.

f

Income

may

be

received

in

additional

securities

and/or

cash.

g

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

See

Note

7.

h

Variable

interest

entity

(VIE).

See

the

Fund’s

notes

to

financial

statements

regarding

investments

made

through

a

VIE

structure.

At

April

30,

2024,

the

aggregate

value

of

this

security

was

$7,647,700,

representing

0.3%

of

net

assets.

i

See

Note

1(h)

regarding

senior

floating

rate

interests.

j

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

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(f)

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,

redemption

price

at

maturity,

and/or

coupon

payments

are

adjusted

for

inflation.

See

Note

1(j).

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

Security

purchased

on

a

to-be-announced

(TBA)

basis.

See

Note

1(c).

r

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

s

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Strategic

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

At

April

30,

2024,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(f).

Description

Principal

Amount

Value

Marketplace

Loans

-

1.5%

Block,

Inc.

6178645.SQ.FTS.B

,

Zero

Cpn

,

6/01/24

...

$

767

$

301

6185770.SQ.FTS.B

,

Zero

Cpn

,

6/03/24

...

2,564

414

6185954.SQ.FTS.B

,

Zero

Cpn

,

6/03/24

...

1,743

208

6186378.SQ.FTS.B

,

Zero

Cpn

,

6/03/24

...

1,507

569

6190982.SQ.FTS.B

,

Zero

Cpn

,

6/05/24

...

4,546

1,461

6191154.SQ.FTS.B

,

Zero

Cpn

,

6/06/24

...

2,148

477

6193526.SQ.FTS.B

,

Zero

Cpn

,

6/06/24

...

59

21

6193538.SQ.FTS.B

,

Zero

Cpn

,

6/06/24

...

1,187

470

6196456.SQ.FTS.B

,

Zero

Cpn

,

6/07/24

...

858

456

6196597.SQ.FTS.B

,

Zero

Cpn

,

6/07/24

...

186

148

6209210.SQ.FTS.B

,

Zero

Cpn

,

6/09/24

...

6,712

2,562

6209706.SQ.FTS.B

,

Zero

Cpn

,

6/10/24

...

2,538

1,022

6211694.SQ.FTS.B

,

Zero

Cpn

,

6/12/24

...

3,639

586

6217315.SQ.FTS.B

,

Zero

Cpn

,

6/13/24

...

687

190

6217699.SQ.FTS.B

,

Zero

Cpn

,

6/13/24

...

4,788

2,147

6220586.SQ.FTS.B

,

Zero

Cpn

,

6/14/24

...

3,436

735

6220625.SQ.FTS.B

,

Zero

Cpn

,

6/14/24

...

8,814

1,601

6221348.SQ.FTS.B

,

Zero

Cpn

,

6/14/24

...

1,892

611

6226984.SQ.FTS.B

,

Zero

Cpn

,

6/16/24

...

63

17

6227194.SQ.FTS.B

,

Zero

Cpn

,

6/16/24

...

2,188

295

6229186.SQ.FTS.B

,

Zero

Cpn

,

6/16/24

...

965

725

6236255.SQ.FTS.B

,

Zero

Cpn

,

6/18/24

...

2,023

431

6237088.SQ.FTS.B

,

Zero

Cpn

,

6/19/24

...

1,309

324

6237213.SQ.FTS.B

,

Zero

Cpn

,

6/19/24

...

994

254

6243468.SQ.FTS.B

,

Zero

Cpn

,

6/20/24

...

12,676

3,185

6243792.SQ.FTS.B

,

Zero

Cpn

,

6/21/24

...

2,999

1,085

6245571.SQ.FTS.B

,

Zero

Cpn

,

6/21/24

...

533

141

6245757.SQ.FTS.B

,

Zero

Cpn

,

6/21/24

...

7,017

3,150

6254361.SQ.FTS.B

,

Zero

Cpn

,

6/23/24

...

1,745

391

6254473.SQ.FTS.B

,

Zero

Cpn

,

6/23/24

...

15,036

1,721

6254841.SQ.FTS.B

,

Zero

Cpn

,

6/23/24

...

5,710

1,618

6258694.SQ.FTS.B

,

Zero

Cpn

,

6/27/24

...

1,099

751

6259695.SQ.FTS.B

,

Zero

Cpn

,

6/27/24

...

2,225

373

6262242.SQ.FTS.B

,

Zero

Cpn

,

6/28/24

...

4,571

2,866

6265153.SQ.FTS.B

,

Zero

Cpn

,

6/29/24

...

11,421

4,701

6266370.SQ.FTS.B

,

Zero

Cpn

,

6/29/24

...

23,374

9,872

6268240.SQ.FTS.B

,

Zero

Cpn

,

6/30/24

...

987

286

6270020.SQ.FTS.B

,

Zero

Cpn

,

6/30/24

...

194

117

6271702.SQ.FTS.B

,

Zero

Cpn

,

7/01/24

...

385

95

6271708.SQ.FTS.B

,

Zero

Cpn

,

7/01/24

...

1,659

921

6272382.SQ.FTS.B

,

Zero

Cpn

,

7/02/24

...

8,735

3,213

6273667.SQ.FTS.B

,

Zero

Cpn

,

7/03/24

...

101

81

6275326.SQ.FTS.B

,

Zero

Cpn

,

7/03/24

...

2,114

278

6277033.SQ.FTS.B

,

Zero

Cpn

,

7/04/24

...

3,011

634

6277934.SQ.FTS.B

,

Zero

Cpn

,

7/04/24

...

697

343

6278139.SQ.FTS.B

,

Zero

Cpn

,

7/04/24

...

931

377

6282812.SQ.FTS.B

,

Zero

Cpn

,

7/06/24

...

15,894

7,034

6284632.SQ.FTS.B

,

Zero

Cpn

,

7/06/24

...

2,078

616

6285291.SQ.FTS.B

,

Zero

Cpn

,

7/06/24

...

21,510

8,517

6285821.SQ.FTS.B

,

Zero

Cpn

,

7/07/24

...

1,998

536

6285959.SQ.FTS.B

,

Zero

Cpn

,

7/07/24

...

4,046

1,023

6288150.SQ.FTS.B

,

Zero

Cpn

,

7/09/24

...

1,703

1,025

6290604.SQ.FTS.B

,

Zero

Cpn

,

7/10/24

...

5,044

1,855

6292603.SQ.FTS.B

,

Zero

Cpn

,

7/11/24

...

2,005

745

6300866.SQ.FTS.B

,

Zero

Cpn

,

7/13/24

...

478

167

6301915.SQ.FTS.B

,

Zero

Cpn

,

7/13/24

...

4,667

2,262

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6302668.SQ.FTS.B

,

Zero

Cpn

,

7/13/24

...

$

833

$

362

6303891.SQ.FTS.B

,

Zero

Cpn

,

7/14/24

...

12,228

6,767

6305775.SQ.FTS.B

,

Zero

Cpn

,

7/16/24

...

349

150

6306980.SQ.FTS.B

,

Zero

Cpn

,

7/17/24

...

5

4

6307502.SQ.FTS.B

,

Zero

Cpn

,

7/17/24

...

1,248

548

6308012.SQ.FTS.B

,

Zero

Cpn

,

7/17/24

...

1,338

348

6309341.SQ.FTS.B

,

Zero

Cpn

,

7/18/24

...

1,719

454

6314763.SQ.FTS.B

,

Zero

Cpn

,

7/19/24

...

982

234

6318268.SQ.FTS.B

,

Zero

Cpn

,

7/20/24

...

1,343

835

6319056.SQ.FTS.B

,

Zero

Cpn

,

7/21/24

...

2,790

2,644

6328683.SQ.FTS.B

,

Zero

Cpn

,

7/23/24

...

83

46

6331375.SQ.FTS.B

,

Zero

Cpn

,

7/23/24

...

608

374

6350485.SQ.FTS.B

,

Zero

Cpn

,

7/23/24

...

315

79

6351823.SQ.FTS.B

,

Zero

Cpn

,

7/24/24

...

2,008

485

6351975.SQ.FTS.B

,

Zero

Cpn

,

7/24/24

...

2,902

475

6353581.SQ.FTS.B

,

Zero

Cpn

,

7/24/24

...

916

484

6357497.SQ.FTS.B

,

Zero

Cpn

,

7/25/24

...

1,961

776

6357583.SQ.FTS.B

,

Zero

Cpn

,

7/25/24

...

1,401

778

6359468.SQ.FTS.B

,

Zero

Cpn

,

7/26/24

...

432

125

6368728.SQ.FTS.B

,

Zero

Cpn

,

7/30/24

...

676

548

6370285.SQ.FTS.B

,

Zero

Cpn

,

7/30/24

...

1,998

223

6371621.SQ.FTS.B

,

Zero

Cpn

,

7/31/24

...

5,626

2,447

6372693.SQ.FTS.B

,

Zero

Cpn

,

7/31/24

...

442

287

6372961.SQ.FTS.B

,

Zero

Cpn

,

7/31/24

...

60,000

14,959

6373735.SQ.FTS.B

,

Zero

Cpn

,

7/31/24

...

1,188

1,043

6373834.SQ.FTS.B

,

Zero

Cpn

,

7/31/24

...

1,494

596

6374394.SQ.FTS.B

,

Zero

Cpn

,

8/01/24

...

2,153

1,418

6378866.SQ.FTS.B

,

Zero

Cpn

,

8/02/24

...

1,238

215

6379092.SQ.FTS.B

,

Zero

Cpn

,

8/02/24

...

954

152

6382243.SQ.FTS.B

,

Zero

Cpn

,

8/03/24

...

45,586

14,379

6384023.SQ.FTS.B

,

Zero

Cpn

,

8/03/24

...

21,707

8,095

6384961.SQ.FTS.B

,

Zero

Cpn

,

8/03/24

...

707

216

6386181.SQ.FTS.B

,

Zero

Cpn

,

8/05/24

...

89

54

6386635.SQ.FTS.B

,

Zero

Cpn

,

8/05/24

...

1,423

445

6389202.SQ.FTS.B

,

Zero

Cpn

,

8/06/24

...

3,677

807

6389269.SQ.FTS.B

,

Zero

Cpn

,

8/06/24

...

5,130

600

6392793.SQ.FTS.B

,

Zero

Cpn

,

8/07/24

...

432

322

6392987.SQ.FTS.B

,

Zero

Cpn

,

8/07/24

...

7,102

967

6393441.SQ.FTS.B

,

Zero

Cpn

,

8/08/24

...

2,464

857

6395015.SQ.FTS.B

,

Zero

Cpn

,

8/08/24

...

281

96

6401621.SQ.FTS.B

,

Zero

Cpn

,

8/10/24

...

1,978

1,402

6402426.SQ.FTS.B

,

Zero

Cpn

,

8/10/24

...

19,748

7,677

6403789.SQ.FTS.B

,

Zero

Cpn

,

8/10/24

...

1,412

293

6404033.SQ.FTS.B

,

Zero

Cpn

,

8/11/24

...

2,159

663

6406913.SQ.FTS.B

,

Zero

Cpn

,

8/13/24

...

5,732

2,224

6407517.SQ.FTS.B

,

Zero

Cpn

,

8/13/24

...

438

207

6410608.SQ.FTS.B

,

Zero

Cpn

,

8/14/24

...

23,537

6,544

6412264.SQ.FTS.B

,

Zero

Cpn

,

8/15/24

...

342

215

6413090.SQ.FTS.B

,

Zero

Cpn

,

8/15/24

...

14,328

2,187

6419949.SQ.FTS.B

,

Zero

Cpn

,

8/16/24

...

10,641

8,335

6422493.SQ.FTS.B

,

Zero

Cpn

,

8/17/24

...

666

371

6424176.SQ.FTS.B

,

Zero

Cpn

,

8/18/24

...

22,930

6,975

6424759.SQ.FTS.B

,

Zero

Cpn

,

8/18/24

...

3,122

1,114

6427044.SQ.FTS.B

,

Zero

Cpn

,

8/21/24

...

637

545

6427394.SQ.FTS.B

,

Zero

Cpn

,

8/21/24

...

24,524

6,898

6430083.SQ.FTS.B

,

Zero

Cpn

,

8/22/24

...

2,936

1,491

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6431015.SQ.FTS.B

,

Zero

Cpn

,

8/22/24

...

$

3,821

$

1,567

6432973.SQ.FTS.B

,

Zero

Cpn

,

8/22/24

...

143

132

6436390.SQ.FTS.B

,

Zero

Cpn

,

8/23/24

...

3,413

698

6439581.SQ.FTS.B

,

Zero

Cpn

,

8/23/24

...

1,063

327

6439616.SQ.FTS.B

,

Zero

Cpn

,

8/23/24

...

2,924

1,457

6439850.SQ.FTS.B

,

Zero

Cpn

,

8/23/24

...

7,981

1,894

6440981.SQ.FTS.B

,

Zero

Cpn

,

8/24/24

...

6,505

4,027

6442480.SQ.FTS.B

,

Zero

Cpn

,

8/24/24

...

3,196

1,117

6443460.SQ.FTS.B

,

Zero

Cpn

,

8/24/24

...

4,211

2,501

6445636.SQ.FTS.B

,

Zero

Cpn

,

8/26/24

...

1,374

1,155

6446212.SQ.FTS.B

,

Zero

Cpn

,

8/27/24

...

185

121

6447783.SQ.FTS.B

,

Zero

Cpn

,

8/27/24

...

1,315

1,038

6448004.SQ.FTS.B

,

Zero

Cpn

,

8/27/24

...

1,305

863

6451217.SQ.FTS.B

,

Zero

Cpn

,

8/28/24

...

2,771

1,729

6451818.SQ.FTS.B

,

Zero

Cpn

,

8/28/24

...

32,683

12,199

6452723.SQ.FTS.B

,

Zero

Cpn

,

8/28/24

...

1,879

137

6452770.SQ.FTS.B

,

Zero

Cpn

,

8/28/24

...

1,857

1,344

6454314.SQ.FTS.B

,

Zero

Cpn

,

9/01/24

...

6,133

2,132

6457547.SQ.FTS.B

,

Zero

Cpn

,

9/02/24

...

37,157

11,380

6461434.SQ.FTS.B

,

Zero

Cpn

,

9/03/24

...

6,632

4,203

6463337.SQ.FTS.B

,

Zero

Cpn

,

9/03/24

...

2,921

2,606

6464039.SQ.FTS.B

,

Zero

Cpn

,

9/04/24

...

255

235

6464078.SQ.FTS.B

,

Zero

Cpn

,

9/04/24

...

1,363

694

6464558.SQ.FTS.B

,

Zero

Cpn

,

9/05/24

...

558

356

6465222.SQ.FTS.B

,

Zero

Cpn

,

9/05/24

...

741

658

6465421.SQ.FTS.B

,

Zero

Cpn

,

9/06/24

...

1,180

507

6467555.SQ.FTS.B

,

Zero

Cpn

,

9/06/24

...

3,596

1,468

6470092.SQ.FTS.B

,

Zero

Cpn

,

9/07/24

...

3,774

1,702

6472450.SQ.FTS.B

,

Zero

Cpn

,

9/07/24

...

3,048

2,459

6472645.SQ.FTS.B

,

Zero

Cpn

,

9/08/24

...

826

498

6475454.SQ.FTS.B

,

Zero

Cpn

,

9/08/24

...

2,557

808

6475554.SQ.FTS.B

,

Zero

Cpn

,

9/08/24

...

8,062

764

6477774.SQ.FTS.B

,

Zero

Cpn

,

9/09/24

...

37,795

13,112

6479577.SQ.FTS.B

,

Zero

Cpn

,

9/09/24

...

596

588

6481328.SQ.FTS.B

,

Zero

Cpn

,

9/09/24

...

7,563

2,922

6483513.SQ.FTS.B

,

Zero

Cpn

,

9/10/24

...

8,146

2,653

6483819.SQ.FTS.B

,

Zero

Cpn

,

9/10/24

...

4,423

3,909

6484336.SQ.FTS.B

,

Zero

Cpn

,

9/10/24

...

22,221

5,985

6484909.SQ.FTS.B

,

Zero

Cpn

,

9/10/24

...

2,394

1,042

6485101.SQ.FTS.B

,

Zero

Cpn

,

9/11/24

...

912

792

6486340.SQ.FTS.B

,

Zero

Cpn

,

9/12/24

...

755

281

6486448.SQ.FTS.B

,

Zero

Cpn

,

9/12/24

...

422

394

6488356.SQ.FTS.B

,

Zero

Cpn

,

9/13/24

...

3,633

1,603

6491686.SQ.FTS.B

,

Zero

Cpn

,

9/14/24

...

1,545

1,374

6493143.SQ.FTS.B

,

Zero

Cpn

,

9/14/24

...

2,769

1,603

6494266.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

6,203

4,224

6494926.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

1,511

1,376

6496050.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

2,621

280

6496082.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

4,893

3,258

6496235.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

209

192

6496559.SQ.FTS.B

,

Zero

Cpn

,

9/15/24

...

1,546

1,453

6503026.SQ.FTS.B

,

Zero

Cpn

,

9/17/24

...

174

147

6503133.SQ.FTS.B

,

Zero

Cpn

,

9/17/24

...

248

218

6503201.SQ.FTS.B

,

Zero

Cpn

,

9/17/24

...

1,828

545

6503671.SQ.FTS.B

,

Zero

Cpn

,

9/17/24

...

836

790

6506217.SQ.FTS.B

,

Zero

Cpn

,

9/18/24

...

919

145

6508186.SQ.FTS.B

,

Zero

Cpn

,

9/20/24

...

2,242

2,191

6508534.SQ.FTS.B

,

Zero

Cpn

,

9/20/24

...

3,125

859

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6508622.SQ.FTS.B

,

Zero

Cpn

,

9/20/24

...

$

1,405

$

1,033

6509173.SQ.FTS.B

,

Zero

Cpn

,

9/20/24

...

815

486

6514979.SQ.FTS.B

,

Zero

Cpn

,

9/22/24

...

2,212

1,830

6522552.SQ.FTS.B

,

Zero

Cpn

,

9/24/24

...

852

784

6523267.SQ.FTS.B

,

Zero

Cpn

,

9/24/24

...

5,923

2,175

6523516.SQ.FTS.B

,

Zero

Cpn

,

9/24/24

...

979

504

6523578.SQ.FTS.B

,

Zero

Cpn

,

9/24/24

...

3,893

1,724

6529284.SQ.FTS.B

,

Zero

Cpn

,

9/27/24

...

2,603

1,876

6529703.SQ.FTS.B

,

Zero

Cpn

,

9/27/24

...

116

108

6530839.SQ.FTS.B

,

Zero

Cpn

,

9/28/24

...

2,358

1,935

6531074.SQ.FTS.B

,

Zero

Cpn

,

9/28/24

...

24,833

5,742

6533670.SQ.FTS.B

,

Zero

Cpn

,

9/28/24

...

2,210

1,154

6534257.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

2,888

1,708

6534305.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

618

312

6535323.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

3,009

2,128

6535953.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

1,931

1,564

6537176.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

3,787

2,232

6537472.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

2,567

254

6537801.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

2,985

2,284

6537991.SQ.FTS.B

,

Zero

Cpn

,

9/29/24

...

120

105

6541353.SQ.FTS.B

,

Zero

Cpn

,

9/30/24

...

2,979

390

6544501.SQ.FTS.B

,

Zero

Cpn

,

9/30/24

...

10,651

5,095

6547411.SQ.FTS.B

,

Zero

Cpn

,

10/01/24

..

16,808

8,409

6549603.SQ.FTS.B

,

Zero

Cpn

,

10/03/24

..

996

575

6552110.SQ.FTS.B

,

Zero

Cpn

,

10/04/24

..

5,662

3,443

6552948.SQ.FTS.B

,

Zero

Cpn

,

10/04/24

..

1,811

475

6553144.SQ.FTS.B

,

Zero

Cpn

,

10/04/24

..

734

651

6554242.SQ.FTS.B

,

Zero

Cpn

,

10/04/24

..

851

844

6555041.SQ.FTS.B

,

Zero

Cpn

,

10/04/24

..

354

354

6555644.SQ.FTS.B

,

Zero

Cpn

,

10/05/24

..

1,151

610

6556395.SQ.FTS.B

,

Zero

Cpn

,

10/05/24

..

1,415

946

6556964.SQ.FTS.B

,

Zero

Cpn

,

10/05/24

..

1,034

742

6557603.SQ.FTS.B

,

Zero

Cpn

,

10/05/24

..

1,819

1,527

6560968.SQ.FTS.B

,

Zero

Cpn

,

10/06/24

..

749

451

6563116.SQ.FTS.B

,

Zero

Cpn

,

10/07/24

..

774

337

6564134.SQ.FTS.B

,

Zero

Cpn

,

10/07/24

..

128

120

6566178.SQ.FTS.B

,

Zero

Cpn

,

10/08/24

..

3,031

2,130

6566625.SQ.FTS.B

,

Zero

Cpn

,

10/08/24

..

10,420

4,431

6566816.SQ.FTS.B

,

Zero

Cpn

,

10/08/24

..

291

273

6566945.SQ.FTS.B

,

Zero

Cpn

,

10/09/24

..

1,174

545

6570679.SQ.FTS.B

,

Zero

Cpn

,

10/10/24

..

16,171

6,259

6572748.SQ.FTS.B

,

Zero

Cpn

,

10/11/24

..

344

307

6576266.SQ.FTS.B

,

Zero

Cpn

,

10/12/24

..

1,635

802

6577981.SQ.FTS.B

,

Zero

Cpn

,

10/12/24

..

10,021

4,464

6580068.SQ.FTS.B

,

Zero

Cpn

,

10/13/24

..

5,295

3,983

6581786.SQ.FTS.B

,

Zero

Cpn

,

10/13/24

..

965

767

6582337.SQ.FTS.B

,

Zero

Cpn

,

10/13/24

..

2,275

1,039

6582733.SQ.FTS.B

,

Zero

Cpn

,

10/13/24

..

728

511

6584141.SQ.FTS.B

,

Zero

Cpn

,

10/14/24

..

632

613

6585188.SQ.FTS.B

,

Zero

Cpn

,

10/14/24

..

12,064

4,083

6587135.SQ.FTS.B

,

Zero

Cpn

,

10/15/24

..

200

170

6589877.SQ.FTS.B

,

Zero

Cpn

,

10/17/24

..

621

567

6591444.SQ.FTS.B

,

Zero

Cpn

,

10/18/24

..

1,914

314

6592468.SQ.FTS.B

,

Zero

Cpn

,

10/18/24

..

26,389

4,718

6592890.SQ.FTS.B

,

Zero

Cpn

,

10/18/24

..

454

435

6594535.SQ.FTS.B

,

Zero

Cpn

,

10/19/24

..

9,708

5,416

6604282.SQ.FTS.B

,

Zero

Cpn

,

10/21/24

..

31

29

6605375.SQ.FTS.B

,

Zero

Cpn

,

10/23/24

..

1,263

410

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6607385.SQ.FTS.B

,

Zero

Cpn

,

10/24/24

..

$

2,320

$

1,744

6608364.SQ.FTS.B

,

Zero

Cpn

,

10/24/24

..

892

478

6608375.SQ.FTS.B

,

Zero

Cpn

,

10/24/24

..

1,568

797

6608563.SQ.FTS.B

,

Zero

Cpn

,

10/24/24

..

2,126

1,725

6609720.SQ.FTS.B

,

Zero

Cpn

,

10/25/24

..

3,414

3,108

6610854.SQ.FTS.B

,

Zero

Cpn

,

10/25/24

..

812

655

6612738.SQ.FTS.B

,

Zero

Cpn

,

10/26/24

..

3,406

2,351

6613071.SQ.FTS.B

,

Zero

Cpn

,

10/26/24

..

12,205

11,674

6614457.SQ.FTS.B

,

Zero

Cpn

,

10/26/24

..

2,216

1,506

6617414.SQ.FTS.B

,

Zero

Cpn

,

10/27/24

..

4,304

2,133

6619177.SQ.FTS.B

,

Zero

Cpn

,

10/27/24

..

3,180

2,443

6621487.SQ.FTS.B

,

Zero

Cpn

,

10/28/24

..

295

209

6623607.SQ.FTS.B

,

Zero

Cpn

,

10/28/24

..

2,737

551

6624688.SQ.FTS.B

,

Zero

Cpn

,

10/29/24

..

897

596

6624957.SQ.FTS.B

,

Zero

Cpn

,

10/30/24

..

3,183

589

6626404.SQ.FTS.B

,

Zero

Cpn

,

11/01/24

..

1,492

996

6627906.SQ.FTS.B

,

Zero

Cpn

,

11/01/24

..

5,573

3,070

6628104.SQ.FTS.B

,

Zero

Cpn

,

11/01/24

..

8,424

883

6628247.SQ.FTS.B

,

Zero

Cpn

,

11/01/24

..

4,651

3,906

6628906.SQ.FTS.B

,

Zero

Cpn

,

11/01/24

..

3,778

2,687

6629787.SQ.FTS.B

,

Zero

Cpn

,

11/02/24

..

7,692

2,220

6632388.SQ.FTS.B

,

Zero

Cpn

,

11/02/24

..

6,201

1,700

6633124.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

567

555

6633231.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

356

316

6634505.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

36

34

6634580.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

68

67

6635306.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

1,953

1,223

6635374.SQ.FTS.B

,

Zero

Cpn

,

11/03/24

..

584

431

6639032.SQ.FTS.B

,

Zero

Cpn

,

11/04/24

..

11,342

4,311

6639843.SQ.FTS.B

,

Zero

Cpn

,

11/04/24

..

1,573

618

6639899.SQ.FTS.B

,

Zero

Cpn

,

11/04/24

..

1,578

920

6640094.SQ.FTS.B

,

Zero

Cpn

,

11/04/24

..

1,982

787

6640162.SQ.FTS.B

,

Zero

Cpn

,

11/04/24

..

279

275

6641408.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

731

343

6641527.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

3,545

3,146

6641788.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

1,794

1,021

6641907.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

3,766

1,143

6642127.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

1,191

1,018

6643396.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

507

485

6644191.SQ.FTS.B

,

Zero

Cpn

,

11/05/24

..

32,363

27,831

6648033.SQ.FTS.B

,

Zero

Cpn

,

11/08/24

..

4,529

3,125

6649600.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

1,478

670

6649660.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

1,771

1,250

6649882.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

409

229

6649911.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

1,709

1,649

6650629.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

1,849

1,503

6650770.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

4,782

4,567

6651437.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

749

242

6651688.SQ.FTS.B

,

Zero

Cpn

,

11/09/24

..

53,478

27,356

6655130.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

974

295

6655176.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

1,183

1,079

6655279.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

692

675

6655452.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

374

365

6655499.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

18

16

6655538.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

3,180

2,334

6655894.SQ.FTS.B

,

Zero

Cpn

,

11/10/24

..

4,633

3,008

6657882.SQ.FTS.B

,

Zero

Cpn

,

11/11/24

..

45,243

27,341

6661587.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

2,009

1,713

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6662189.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

$

2,500

$

1,333

6662501.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

1,852

822

6662849.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

4,461

1,956

6662983.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

790

742

6663871.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

5,758

3,279

6664005.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

5,426

1,015

6664138.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

167

142

6664549.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

1,442

1,228

6664703.SQ.FTS.B

,

Zero

Cpn

,

11/12/24

..

1,778

791

6664793.SQ.FTS.B

,

Zero

Cpn

,

11/13/24

..

1,783

1,758

6665226.SQ.FTS.B

,

Zero

Cpn

,

11/13/24

..

4,523

3,937

6665514.SQ.FTS.B

,

Zero

Cpn

,

11/14/24

..

1,167

928

6665553.SQ.FTS.B

,

Zero

Cpn

,

11/14/24

..

1,858

1,140

6665779.SQ.FTS.B

,

Zero

Cpn

,

11/14/24

..

450

319

6665868.SQ.FTS.B

,

Zero

Cpn

,

11/14/24

..

1,798

1,113

6667637.SQ.FTS.B

,

Zero

Cpn

,

11/15/24

..

6,163

5,586

6668701.SQ.FTS.B

,

Zero

Cpn

,

11/15/24

..

15

15

6668780.SQ.FTS.B

,

Zero

Cpn

,

11/15/24

..

9,355

3,913

6669451.SQ.FTS.B

,

Zero

Cpn

,

11/15/24

..

269

263

6669508.SQ.FTS.B

,

Zero

Cpn

,

11/15/24

..

3,646

2,789

6670037.SQ.FTS.B

,

Zero

Cpn

,

11/16/24

..

6,805

1,664

6670357.SQ.FTS.B

,

Zero

Cpn

,

11/16/24

..

5,737

4,078

6672424.SQ.FTS.B

,

Zero

Cpn

,

11/16/24

..

35,716

20,393

6674961.SQ.FTS.B

,

Zero

Cpn

,

11/17/24

..

5,853

3,107

6675448.SQ.FTS.B

,

Zero

Cpn

,

11/17/24

..

291

282

6675558.SQ.FTS.B

,

Zero

Cpn

,

11/17/24

..

1,292

1,003

6675891.SQ.FTS.B

,

Zero

Cpn

,

11/17/24

..

1,071

490

6676401.SQ.FTS.B

,

Zero

Cpn

,

11/17/24

..

1,884

1,672

6678245.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

3,608

2,949

6678696.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

19,360

8,897

6679343.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

3,191

2,774

6680421.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

2,452

2,389

6681393.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

2,541

1,614

6681578.SQ.FTS.B

,

Zero

Cpn

,

11/18/24

..

10,776

6,270

6682519.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

1,247

1,090

6683849.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

603

249

6684387.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

1,197

252

6684507.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

262

205

6684513.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

3,993

2,782

6684869.SQ.FTS.B

,

Zero

Cpn

,

11/19/24

..

3,295

3,144

6685009.SQ.FTS.B

,

Zero

Cpn

,

11/20/24

..

3,724

2,836

6685425.SQ.FTS.B

,

Zero

Cpn

,

11/20/24

..

2,063

1,971

6685503.SQ.FTS.B

,

Zero

Cpn

,

11/20/24

..

59

57

6685907.SQ.FTS.B

,

Zero

Cpn

,

11/21/24

..

7,476

3,305

6686035.SQ.FTS.B

,

Zero

Cpn

,

11/21/24

..

1,698

1,190

6686170.SQ.FTS.B

,

Zero

Cpn

,

11/21/24

..

1,684

1,631

6686639.SQ.FTS.B

,

Zero

Cpn

,

11/22/24

..

1,131

688

6686940.SQ.FTS.B

,

Zero

Cpn

,

11/22/24

..

5,350

3,194

6688623.SQ.FTS.B

,

Zero

Cpn

,

11/22/24

..

493

460

6689856.SQ.FTS.B

,

Zero

Cpn

,

11/23/24

..

4,087

1,660

6689979.SQ.FTS.B

,

Zero

Cpn

,

11/23/24

..

16,788

10,076

6692002.SQ.FTS.B

,

Zero

Cpn

,

11/23/24

..

1,658

1,584

6692529.SQ.FTS.B

,

Zero

Cpn

,

11/23/24

..

6,099

3,277

6695705.SQ.FTS.B

,

Zero

Cpn

,

11/24/24

..

7,685

7,345

6696070.SQ.FTS.B

,

Zero

Cpn

,

11/24/24

..

4,915

4,588

6699675.SQ.FTS.B

,

Zero

Cpn

,

11/25/24

..

4,846

3,750

6706191.SQ.FTS.B

,

Zero

Cpn

,

11/26/24

..

912

864

6706675.SQ.FTS.B

,

Zero

Cpn

,

11/26/24

..

1,761

1,619

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6707223.SQ.FTS.B

,

Zero

Cpn

,

11/27/24

..

$

327

$

323

6708987.SQ.FTS.B

,

Zero

Cpn

,

11/29/24

..

1,832

1,795

6709316.SQ.FTS.B

,

Zero

Cpn

,

11/29/24

..

762

314

6714559.SQ.FTS.B

,

Zero

Cpn

,

11/30/24

..

559

407

6715622.SQ.FTS.B

,

Zero

Cpn

,

11/30/24

..

1,793

1,454

6715777.SQ.FTS.B

,

Zero

Cpn

,

11/30/24

..

60

56

6716198.SQ.FTS.B

,

Zero

Cpn

,

11/30/24

..

6,380

5,266

6718425.SQ.FTS.B

,

Zero

Cpn

,

12/01/24

..

1,820

1,515

6719669.SQ.FTS.B

,

Zero

Cpn

,

12/01/24

..

358

345

6719810.SQ.FTS.B

,

Zero

Cpn

,

12/01/24

..

1,688

273

6720355.SQ.FTS.B

,

Zero

Cpn

,

12/01/24

..

2,513

1,064

6720946.SQ.FTS.B

,

Zero

Cpn

,

12/01/24

..

5,544

5,132

6722689.SQ.FTS.B

,

Zero

Cpn

,

12/02/24

..

1,518

1,249

6723980.SQ.FTS.B

,

Zero

Cpn

,

12/02/24

..

756

735

6724464.SQ.FTS.B

,

Zero

Cpn

,

12/02/24

..

9,907

3,076

6725080.SQ.FTS.B

,

Zero

Cpn

,

12/02/24

..

1,156

1,127

6725712.SQ.FTS.B

,

Zero

Cpn

,

12/03/24

..

9,638

4,137

6726296.SQ.FTS.B

,

Zero

Cpn

,

12/04/24

..

46

45

6726510.SQ.FTS.B

,

Zero

Cpn

,

12/04/24

..

3,865

3,091

6727020.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

2,867

2,764

6727643.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

3,934

3,839

6728190.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

2,577

2,566

6729129.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

592

443

6729657.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

858

844

6729723.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

3,624

1,527

6729931.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

5,140

1,800

6730115.SQ.FTS.B

,

Zero

Cpn

,

12/05/24

..

2,159

2,051

6730198.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

5,464

5,396

6730881.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

9,287

3,957

6731255.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

2,288

2,190

6731838.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

11,017

10,122

6732866.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

1,586

1,532

6733136.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

692

643

6733215.SQ.FTS.B

,

Zero

Cpn

,

12/06/24

..

10,791

10,410

6733936.SQ.FTS.B

,

Zero

Cpn

,

12/07/24

..

296

278

6734359.SQ.FTS.B

,

Zero

Cpn

,

12/07/24

..

2,775

2,562

6736791.SQ.FTS.B

,

Zero

Cpn

,

12/07/24

..

4,328

4,256

6737164.SQ.FTS.B

,

Zero

Cpn

,

12/07/24

..

1,595

1,399

6737291.SQ.FTS.B

,

Zero

Cpn

,

12/07/24

..

1,511

870

6739517.SQ.FTS.B

,

Zero

Cpn

,

12/08/24

..

3,339

3,178

6742103.SQ.FTS.B

,

Zero

Cpn

,

12/08/24

..

1,137

539

6743834.SQ.FTS.B

,

Zero

Cpn

,

12/09/24

..

768

759

6745247.SQ.FTS.B

,

Zero

Cpn

,

12/09/24

..

775

411

6745298.SQ.FTS.B

,

Zero

Cpn

,

12/09/24

..

3,250

3,002

6746092.SQ.FTS.B

,

Zero

Cpn

,

12/09/24

..

1,222

1,165

6746243.SQ.FTS.B

,

Zero

Cpn

,

12/09/24

..

18

18

6746947.SQ.FTS.B

,

Zero

Cpn

,

12/10/24

..

100

98

6746977.SQ.FTS.B

,

Zero

Cpn

,

12/10/24

..

15,911

3,367

6747381.SQ.FTS.B

,

Zero

Cpn

,

12/11/24

..

1,263

1,185

6747900.SQ.FTS.B

,

Zero

Cpn

,

12/11/24

..

709

686

6747947.SQ.FTS.B

,

Zero

Cpn

,

12/11/24

..

2,364

2,091

6748908.SQ.FTS.B

,

Zero

Cpn

,

12/12/24

..

249

246

6750119.SQ.FTS.B

,

Zero

Cpn

,

12/12/24

..

741

717

6750803.SQ.FTS.B

,

Zero

Cpn

,

12/12/24

..

2,230

2,157

6751389.SQ.FTS.B

,

Zero

Cpn

,

12/12/24

..

332

312

6751424.SQ.FTS.B

,

Zero

Cpn

,

12/12/24

..

1,380

1,339

6753008.SQ.FTS.B

,

Zero

Cpn

,

12/13/24

..

6,164

2,346

6753247.SQ.FTS.B

,

Zero

Cpn

,

12/13/24

..

11,630

7,016

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6755643.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

$

1,482

$

1,153

6755759.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

243

235

6756228.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

1,113

746

6756294.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

4,548

2,655

6756782.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

930

789

6756818.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

691

677

6757140.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

1,778

1,756

6757268.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

3,605

3,037

6757454.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

1,045

1,000

6757541.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

4,924

3,487

6758068.SQ.FTS.B

,

Zero

Cpn

,

12/14/24

..

431

422

6762246.SQ.FTS.B

,

Zero

Cpn

,

12/15/24

..

1,513

827

6763242.SQ.FTS.B

,

Zero

Cpn

,

12/15/24

..

6,198

6,075

6764093.SQ.FTS.B

,

Zero

Cpn

,

12/15/24

..

2,840

2,798

6764489.SQ.FTS.B

,

Zero

Cpn

,

12/15/24

..

26,462

13,821

6765245.SQ.FTS.B

,

Zero

Cpn

,

12/15/24

..

29,009

24,569

6769042.SQ.FTS.B

,

Zero

Cpn

,

12/17/24

..

744

667

6769341.SQ.FTS.B

,

Zero

Cpn

,

12/17/24

..

3,393

3,052

6770530.SQ.FTS.B

,

Zero

Cpn

,

12/19/24

..

1,117

635

6770555.SQ.FTS.B

,

Zero

Cpn

,

12/19/24

..

3,381

3,165

6771134.SQ.FTS.B

,

Zero

Cpn

,

12/19/24

..

18,506

4,853

6771304.SQ.FTS.B

,

Zero

Cpn

,

12/19/24

..

6,394

6,307

6772311.SQ.FTS.B

,

Zero

Cpn

,

12/20/24

..

20,924

20,152

6773825.SQ.FTS.B

,

Zero

Cpn

,

12/20/24

..

2,963

2,584

6773883.SQ.FTS.B

,

Zero

Cpn

,

12/20/24

..

431

426

6774360.SQ.FTS.B

,

Zero

Cpn

,

12/20/24

..

2,420

2,377

6774551.SQ.FTS.B

,

Zero

Cpn

,

12/20/24

..

17,810

9,377

6774958.SQ.FTS.B

,

Zero

Cpn

,

12/21/24

..

522

516

6775668.SQ.FTS.B

,

Zero

Cpn

,

12/21/24

..

221

188

6775919.SQ.FTS.B

,

Zero

Cpn

,

12/21/24

..

17,857

11,476

6779448.SQ.FTS.B

,

Zero

Cpn

,

12/22/24

..

1,226

1,204

6781202.SQ.FTS.B

,

Zero

Cpn

,

12/22/24

..

82

79

6781272.SQ.FTS.B

,

Zero

Cpn

,

12/22/24

..

41,727

22,396

6783247.SQ.FTS.B

,

Zero

Cpn

,

12/23/24

..

246

242

6783369.SQ.FTS.B

,

Zero

Cpn

,

12/23/24

..

1,854

719

6783863.SQ.FTS.B

,

Zero

Cpn

,

12/23/24

..

1,053

633

6784214.SQ.FTS.B

,

Zero

Cpn

,

12/23/24

..

5,002

4,830

6788785.SQ.FTS.B

,

Zero

Cpn

,

12/26/24

..

1,671

1,643

6789025.SQ.FTS.B

,

Zero

Cpn

,

12/26/24

..

6,430

4,391

6789460.SQ.FTS.B

,

Zero

Cpn

,

12/26/24

..

2,934

2,828

6790701.SQ.FTS.B

,

Zero

Cpn

,

12/26/24

..

3,992

3,889

6791071.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

10,082

9,000

6791631.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

393

386

6791771.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

1,808

1,771

6792087.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

406

402

6792314.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

6,421

2,021

6793971.SQ.FTS.B

,

Zero

Cpn

,

12/27/24

..

8,527

8,311

6795315.SQ.FTS.B

,

Zero

Cpn

,

12/28/24

..

1,229

694

6796843.SQ.FTS.B

,

Zero

Cpn

,

12/28/24

..

6,510

6,384

6797114.SQ.FTS.B

,

Zero

Cpn

,

12/28/24

..

1,479

1,452

6797487.SQ.FTS.B

,

Zero

Cpn

,

12/28/24

..

2,794

2,727

6797675.SQ.FTS.B

,

Zero

Cpn

,

12/28/24

..

12,144

11,341

6800044.SQ.FTS.B

,

Zero

Cpn

,

12/29/24

..

4,937

1,118

6800374.SQ.FTS.B

,

Zero

Cpn

,

12/29/24

..

1,457

1,442

6801003.SQ.FTS.B

,

Zero

Cpn

,

12/29/24

..

5,192

5,021

6801988.SQ.FTS.B

,

Zero

Cpn

,

12/29/24

..

1,860

1,538

6802079.SQ.FTS.B

,

Zero

Cpn

,

12/29/24

..

1,641

1,608

6804745.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

1,247

700

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6804901.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

$

984

$

967

6805012.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

2,040

1,326

6805400.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

2,240

2,183

6805923.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

921

858

6806017.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

2,603

2,564

6806677.SQ.FTS.B

,

Zero

Cpn

,

12/30/24

..

3,293

804

6808256.SQ.FTS.B

,

Zero

Cpn

,

1/01/25

...

794

444

6808602.SQ.FTS.B

,

Zero

Cpn

,

1/01/25

...

1,072

1,017

6808928.SQ.FTS.B

,

Zero

Cpn

,

1/01/25

...

4,384

4,282

6809383.SQ.FTS.B

,

Zero

Cpn

,

1/02/25

...

5,414

4,738

6809623.SQ.FTS.B

,

Zero

Cpn

,

1/02/25

...

5,415

4,497

6810642.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

5,633

1,893

6810830.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

145

142

6811483.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

12,156

4,069

6811723.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

1,320

1,315

6812517.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

14,910

5,837

6812850.SQ.FTS.B

,

Zero

Cpn

,

1/03/25

...

1,848

1,316

6813347.SQ.FTS.B

,

Zero

Cpn

,

1/04/25

...

4,390

3,519

6813490.SQ.FTS.B

,

Zero

Cpn

,

1/04/25

...

1,141

1,022

6813615.SQ.FTS.B

,

Zero

Cpn

,

1/04/25

...

570

527

6813645.SQ.FTS.B

,

Zero

Cpn

,

1/04/25

...

3,640

3,604

6814760.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

481

462

6814971.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

1,826

1,533

6815092.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

200

198

6815367.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

1,775

1,130

6815433.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

667

559

6816368.SQ.FTS.B

,

Zero

Cpn

,

1/05/25

...

2,393

2,058

6818955.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

7,512

4,143

6819086.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

1,211

1,133

6819252.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

1,394

1,370

6820050.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

671

660

6820387.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

305

282

6822097.SQ.FTS.B

,

Zero

Cpn

,

1/06/25

...

1,805

1,487

6822497.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

1,192

1,144

6823276.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

1,339

1,322

6823439.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

11,886

8,334

6823811.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

1,006

975

6823890.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

1,849

1,832

6824908.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

4,918

4,766

6825473.SQ.FTS.B

,

Zero

Cpn

,

1/07/25

...

12,483

12,013

6826076.SQ.FTS.B

,

Zero

Cpn

,

1/08/25

...

4,348

4,180

6826532.SQ.FTS.B

,

Zero

Cpn

,

1/08/25

...

3,969

763

6826603.SQ.FTS.B

,

Zero

Cpn

,

1/08/25

...

6,798

6,333

6827373.SQ.FTS.B

,

Zero

Cpn

,

1/09/25

...

4,326

3,402

6828266.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

432

231

6828284.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

802

788

6828723.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

1,360

1,307

6828941.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

380

336

6829785.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

2,447

2,333

6830364.SQ.FTS.B

,

Zero

Cpn

,

1/10/25

...

22,892

15,267

6831458.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

23

23

6831517.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

2,816

2,756

6831725.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

889

454

6832118.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

2,259

2,176

6832371.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

2,739

2,662

6832546.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

5,873

5,318

6833319.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

292

290

6833356.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

21,472

9,132

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6833692.SQ.FTS.B

,

Zero

Cpn

,

1/11/25

...

$

4,766

$

4,353

6833875.SQ.FTS.B

,

Zero

Cpn

,

1/12/25

...

5,328

4,483

6834572.SQ.FTS.B

,

Zero

Cpn

,

1/12/25

...

778

774

6835014.SQ.FTS.B

,

Zero

Cpn

,

1/12/25

...

679

659

6836269.SQ.FTS.B

,

Zero

Cpn

,

1/12/25

...

758

631

6836478.SQ.FTS.B

,

Zero

Cpn

,

1/12/25

...

878

815

6838796.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

1,660

391

6838880.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

5,977

3,774

6839257.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

1,194

1,168

6839356.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

5,077

4,633

6839643.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

576

214

6839650.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

300

295

6839957.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

857

841

6840598.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

12,276

10,117

6841626.SQ.FTS.B

,

Zero

Cpn

,

1/13/25

...

5,625

1,628

6842431.SQ.FTS.B

,

Zero

Cpn

,

1/14/25

...

2,541

2,467

6843000.SQ.FTS.B

,

Zero

Cpn

,

1/14/25

...

309

281

6843667.SQ.FTS.B

,

Zero

Cpn

,

1/14/25

...

32,216

20,256

6845621.SQ.FTS.B

,

Zero

Cpn

,

1/15/25

...

4,041

3,976

6845960.SQ.FTS.B

,

Zero

Cpn

,

1/15/25

...

2,662

1,498

6846131.SQ.FTS.B

,

Zero

Cpn

,

1/15/25

...

1,624

1,107

6846652.SQ.FTS.B

,

Zero

Cpn

,

1/16/25

...

185

182

6846797.SQ.FTS.B

,

Zero

Cpn

,

1/16/25

...

3,774

3,205

6848265.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

1,144

579

6849119.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

4,913

3,010

6849233.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

4,507

4,099

6849498.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

5,530

5,106

6849679.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

226

224

6849711.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

628

248

6849735.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

332

324

6849785.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

2,227

2,205

6850198.SQ.FTS.B

,

Zero

Cpn

,

1/17/25

...

621

574

6852615.SQ.FTS.B

,

Zero

Cpn

,

1/18/25

...

1,041

409

6852644.SQ.FTS.B

,

Zero

Cpn

,

1/18/25

...

5,132

5,045

6853136.SQ.FTS.B

,

Zero

Cpn

,

1/18/25

...

4,160

3,885

6855301.SQ.FTS.B

,

Zero

Cpn

,

1/19/25

...

17,894

10,763

6855849.SQ.FTS.B

,

Zero

Cpn

,

1/19/25

...

4,401

3,366

6856022.SQ.FTS.B

,

Zero

Cpn

,

1/19/25

...

414

367

6856480.SQ.FTS.B

,

Zero

Cpn

,

1/19/25

...

432

332

6858689.SQ.FTS.B

,

Zero

Cpn

,

1/20/25

...

1,570

1,528

6859134.SQ.FTS.B

,

Zero

Cpn

,

1/20/25

...

3,363

3,248

6862863.SQ.FTS.B

,

Zero

Cpn

,

1/21/25

...

789

688

6862957.SQ.FTS.B

,

Zero

Cpn

,

1/21/25

...

4,888

2,284

6863147.SQ.FTS.B

,

Zero

Cpn

,

1/21/25

...

3,329

3,277

6863421.SQ.FTS.B

,

Zero

Cpn

,

1/21/25

...

6,468

3,457

6865428.SQ.FTS.B

,

Zero

Cpn

,

1/23/25

...

2,618

2,222

6865503.SQ.FTS.B

,

Zero

Cpn

,

1/23/25

...

107

104

6865537.SQ.FTS.B

,

Zero

Cpn

,

1/23/25

...

361

338

6866189.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

295

265

6866804.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

2,995

1,587

6866967.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

1,465

1,439

6867103.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

1,176

1,125

6867196.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

1,892

1,459

6867264.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

2,150

2,109

6867467.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

2,088

2,050

6867691.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

687

646

6867755.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

16,411

15,786

6868391.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

3,137

1,083

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6868587.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

$

5,614

$

5,439

6868847.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

1,102

1,059

6868908.SQ.FTS.B

,

Zero

Cpn

,

1/24/25

...

3,577

3,450

6869935.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

885

854

6869981.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

73

73

6870054.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

1,351

854

6870103.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

4,543

4,433

6870865.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

1,218

1,157

6871155.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

3,560

671

6871369.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

2,501

2,387

6871477.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

308

306

6871539.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

5,599

4,938

6871735.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

3,486

3,420

6872188.SQ.FTS.B

,

Zero

Cpn

,

1/25/25

...

481

473

6872654.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

1,632

1,604

6873383.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

698

501

6873530.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

3,816

3,087

6873680.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

70

67

6874616.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

705

653

6874679.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

339

319

6875037.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

2,424

2,337

6875105.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

3,590

3,536

6875459.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

66

66

6875569.SQ.FTS.B

,

Zero

Cpn

,

1/26/25

...

2,997

2,890

6877236.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

6,540

6,288

6877754.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

217

215

6878250.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

3,266

3,147

6878992.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

3,386

3,261

6879176.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

983

958

6879230.SQ.FTS.B

,

Zero

Cpn

,

1/27/25

...

2,486

2,160

6880856.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

1,870

1,316

6882976.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

5,067

4,752

6883232.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

786

653

6883510.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

7,331

5,264

6883690.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

855

768

6883907.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

636

294

6883923.SQ.FTS.B

,

Zero

Cpn

,

1/28/25

...

2,190

1,721

6884366.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

1,174

1,056

6884403.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

850

673

6884421.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

2,515

2,350

6884500.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

3,399

1,640

6884599.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

690

684

6884787.SQ.FTS.B

,

Zero

Cpn

,

1/29/25

...

3,067

2,497

6884939.SQ.FTS.B

,

Zero

Cpn

,

1/30/25

...

3,340

3,263

6885300.SQ.FTS.B

,

Zero

Cpn

,

1/30/25

...

2,695

2,122

6887470.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

2,992

2,943

6887745.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

1,847

1,576

6887828.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

1,058

1,022

6887898.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

25,877

20,318

6888667.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

6,584

6,416

6888979.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

4,584

3,595

6889109.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

1,622

775

6889119.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

3,513

1,285

6889240.SQ.FTS.B

,

Zero

Cpn

,

1/31/25

...

3,195

1,755

6889376.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

1,599

1,167

6889468.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

2,757

2,706

6890345.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

689

648

6890420.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

311

308

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6890486.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

$

1,089

$

1,070

6890641.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

1,184

812

6890783.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

4,947

4,862

6891067.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

5,566

2,717

6891310.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

4,801

4,672

6892473.SQ.FTS.B

,

Zero

Cpn

,

2/01/25

...

10,312

10,051

6892842.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

576

482

6893023.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

14,792

7,606

6893617.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

1,113

1,099

6894789.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

1,611

1,585

6895139.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

624

599

6895440.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

4,526

4,005

6895588.SQ.FTS.B

,

Zero

Cpn

,

2/02/25

...

10,603

6,550

6899194.SQ.FTS.B

,

Zero

Cpn

,

2/03/25

...

476

154

6899300.SQ.FTS.B

,

Zero

Cpn

,

2/03/25

...

1,843

1,450

6899394.SQ.FTS.B

,

Zero

Cpn

,

2/03/25

...

2,133

1,911

6899510.SQ.FTS.B

,

Zero

Cpn

,

2/03/25

...

121

120

6900884.SQ.FTS.B

,

Zero

Cpn

,

2/03/25

...

970

966

6901282.SQ.FTS.B

,

Zero

Cpn

,

2/04/25

...

1,123

1,096

6902071.SQ.FTS.B

,

Zero

Cpn

,

2/04/25

...

22,022

20,989

6903284.SQ.FTS.B

,

Zero

Cpn

,

2/04/25

...

3,163

1,736

6903366.SQ.FTS.B

,

Zero

Cpn

,

2/04/25

...

18,156

17,127

6904280.SQ.FTS.B

,

Zero

Cpn

,

2/05/25

...

6,351

5,720

6904508.SQ.FTS.B

,

Zero

Cpn

,

2/05/25

...

1,330

1,305

6904822.SQ.FTS.B

,

Zero

Cpn

,

2/05/25

...

1,313

883

6904989.SQ.FTS.B

,

Zero

Cpn

,

2/05/25

...

26,345

14,718

6907027.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

1,371

1,300

6907289.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

5,270

4,576

6907635.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

996

989

6908001.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

23,167

8,860

6908375.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

3,730

3,237

6908654.SQ.FTS.B

,

Zero

Cpn

,

2/07/25

...

2,242

2,184

6909057.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

1,884

1,459

6909141.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

19,068

10,041

6909618.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

699

675

6910466.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

599

583

6910503.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

2,558

2,460

6910940.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

8,302

7,527

6911295.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

3,322

3,292

6911614.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

1,562

1,508

6911745.SQ.FTS.B

,

Zero

Cpn

,

2/08/25

...

11,012

8,250

6912801.SQ.FTS.B

,

Zero

Cpn

,

2/09/25

...

383

279

6913052.SQ.FTS.B

,

Zero

Cpn

,

2/09/25

...

4,783

3,271

6913417.SQ.FTS.B

,

Zero

Cpn

,

2/09/25

...

2,595

2,447

6913498.SQ.FTS.B

,

Zero

Cpn

,

2/09/25

...

834

733

6914678.SQ.FTS.B

,

Zero

Cpn

,

2/09/25

...

4,287

1,871

6916076.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

2,544

1,777

6916173.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

561

540

6916577.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

451

438

6916947.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

671

633

6917130.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

3,199

3,144

6917414.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

1,545

1,509

6917911.SQ.FTS.B

,

Zero

Cpn

,

2/10/25

...

2,335

2,262

6919721.SQ.FTS.B

,

Zero

Cpn

,

2/11/25

...

991

965

6920131.SQ.FTS.B

,

Zero

Cpn

,

2/11/25

...

1,602

1,576

6920246.SQ.FTS.B

,

Zero

Cpn

,

2/11/25

...

4,934

4,824

6920447.SQ.FTS.B

,

Zero

Cpn

,

2/11/25

...

24,973

14,673

6920532.SQ.FTS.B

,

Zero

Cpn

,

2/12/25

...

2,684

2,648

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6920793.SQ.FTS.B

,

Zero

Cpn

,

2/12/25

...

$

1,860

$

1,823

6920966.SQ.FTS.B

,

Zero

Cpn

,

2/12/25

...

1,553

1,468

6921045.SQ.FTS.B

,

Zero

Cpn

,

2/13/25

...

1,461

1,415

6921229.SQ.FTS.B

,

Zero

Cpn

,

2/13/25

...

3,118

3,066

6921768.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

268

267

6922192.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

11,444

11,079

6922457.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

5,801

5,526

6922549.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

2,200

2,103

6922824.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

222

212

6923193.SQ.FTS.B

,

Zero

Cpn

,

2/14/25

...

6,065

5,880

6923318.SQ.FTS.B

,

Zero

Cpn

,

2/15/25

...

1,672

1,550

6923496.SQ.FTS.B

,

Zero

Cpn

,

2/15/25

...

15,692

8,269

6932504.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

5,016

4,988

6934259.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

1,625

1,593

6934329.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

13,710

4,926

6934833.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

5,339

5,033

6935014.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

838

820

6935049.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

5,833

4,427

6935196.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

11,871

11,489

6935755.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

3,012

2,784

6935856.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

873

732

6935910.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

3,118

2,320

6936001.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

6,680

6,368

6936426.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

1,754

986

6936532.SQ.FTS.B

,

Zero

Cpn

,

2/17/25

...

2,015

1,939

6936990.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

3,340

707

6937104.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

1,071

1,050

6937130.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

620

291

6937145.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

1,213

979

6937191.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

15,906

15,677

6938172.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

379

364

6938215.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

5,382

5,112

6938552.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

6,120

5,058

6938929.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

198

189

6940148.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

2,245

2,193

6940432.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

2,112

1,784

6940544.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

2,714

1,145

6940675.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

2,559

1,310

6940935.SQ.FTS.B

,

Zero

Cpn

,

2/18/25

...

4,804

4,562

6941120.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

10,384

9,926

6941562.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

856

405

6941695.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

283

214

6941712.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

3,028

2,755

6941840.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

352

277

6941851.SQ.FTS.B

,

Zero

Cpn

,

2/19/25

...

785

778

6942016.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

9,278

7,854

6942251.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

3,601

3,493

6942505.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

745

669

6942558.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

749

591

6942589.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

677

657

6942619.SQ.FTS.B

,

Zero

Cpn

,

2/20/25

...

2,074

2,025

6943017.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

3,357

3,302

6943720.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

10,588

9,668

6944161.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

1,792

1,527

6944232.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

29,502

28,186

6946078.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

3,059

2,157

6946120.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

10,031

6,032

6946261.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

2,707

2,627

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6946354.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

$

3,854

$

2,558

6946459.SQ.FTS.B

,

Zero

Cpn

,

2/21/25

...

5,936

5,840

6946597.SQ.FTS.B

,

Zero

Cpn

,

2/22/25

...

2,385

1,861

6946689.SQ.FTS.B

,

Zero

Cpn

,

2/22/25

...

777

547

6948739.SQ.FTS.B

,

Zero

Cpn

,

2/22/25

...

2,553

2,531

6949579.SQ.FTS.B

,

Zero

Cpn

,

2/22/25

...

44,053

33,152

6951456.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

400

382

6951493.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

3,243

3,212

6951799.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

1,234

1,211

6951848.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

268

262

6951871.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

3,568

3,330

6952076.SQ.FTS.B

,

Zero

Cpn

,

2/23/25

...

17,324

16,572

6955216.SQ.FTS.B

,

Zero

Cpn

,

2/24/25

...

8,556

8,451

6956076.SQ.FTS.B

,

Zero

Cpn

,

2/24/25

...

2,422

2,110

6956719.SQ.FTS.B

,

Zero

Cpn

,

2/24/25

...

6,896

6,775

6957149.SQ.FTS.B

,

Zero

Cpn

,

2/24/25

...

8,484

8,336

6957627.SQ.FTS.B

,

Zero

Cpn

,

2/24/25

...

3,540

3,243

6958838.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

8,801

8,548

6960042.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

2,554

2,429

6960223.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

3,121

3,062

6960346.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

1,717

1,685

6960562.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

1,403

1,385

6960761.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

16,413

15,683

6962127.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

1,291

1,112

6962173.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

693

606

6962188.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

510

503

6962288.SQ.FTS.B

,

Zero

Cpn

,

2/25/25

...

4,371

4,292

6962547.SQ.FTS.B

,

Zero

Cpn

,

2/26/25

...

1,268

1,020

6962568.SQ.FTS.B

,

Zero

Cpn

,

2/26/25

...

4,367

3,670

6962943.SQ.FTS.B

,

Zero

Cpn

,

2/26/25

...

2,970

2,902

6963512.SQ.FTS.B

,

Zero

Cpn

,

2/27/25

...

2,240

1,511

6963616.SQ.FTS.B

,

Zero

Cpn

,

2/27/25

...

3,025

2,827

6963691.SQ.FTS.B

,

Zero

Cpn

,

2/27/25

...

1,739

1,407

6964251.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

2,729

2,598

6964654.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

663

142

6964699.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

789

779

6964773.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,564

3,458

6964914.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,737

3,673

6965137.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

597

587

6965855.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,581

3,297

6965965.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,160

1,112

6966014.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

9,697

9,509

6966362.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,205

1,150

6966412.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

2,449

2,210

6966531.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,997

479

6966595.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

966

917

6966621.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,752

1,714

6966854.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

6,583

3,733

6967556.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,699

1,639

6967741.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,135

2,011

6967832.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,294

1,280

6968020.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,005

973

6968060.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,916

1,246

6968103.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

712

581

6968599.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

443

434

6969376.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,106

545

6969402.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

2,678

690

6969586.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

2,687

1,982

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6969662.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

$

668

$

662

6970442.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

4,322

4,258

6970646.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,921

1,716

6970716.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

6,983

6,015

6971087.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

6,432

6,227

6971351.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,708

1,678

6971755.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

353

319

6972492.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

2,326

2,271

6973388.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,758

1,730

6973520.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

13,686

13,423

6977572.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

6,615

5,758

6977996.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

988

972

6978269.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,849

1,580

6978418.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,258

504

6978456.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,032

322

6978496.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

1,392

1,329

6978718.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

3,599

3,501

6978952.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

52,983

37,093

6980002.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

9,259

3,568

6980331.SQ.FTS.B

,

Zero

Cpn

,

2/28/25

...

17,391

16,931

6981267.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

2,816

2,727

6981491.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

311

300

6981536.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

3,391

2,611

6981643.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

1,518

1,477

6981964.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

13,750

7,162

6982310.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

2,938

2,815

6982643.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

7,454

7,261

6983051.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

19,138

18,769

6984383.SQ.FTS.B

,

Zero

Cpn

,

3/01/25

...

3,971

3,893

6984708.SQ.FTS.B

,

Zero

Cpn

,

3/02/25

...

1,263

637

6984847.SQ.FTS.B

,

Zero

Cpn

,

3/02/25

...

5,375

5,123

6985048.SQ.FTS.B

,

Zero

Cpn

,

3/02/25

...

599

574

6985153.SQ.FTS.B

,

Zero

Cpn

,

3/02/25

...

12,340

11,786

6985703.SQ.FTS.B

,

Zero

Cpn

,

3/03/25

...

3,589

3,429

6985793.SQ.FTS.B

,

Zero

Cpn

,

3/03/25

...

1,178

1,123

6985841.SQ.FTS.B

,

Zero

Cpn

,

3/03/25

...

1,631

1,153

6986370.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

3,037

2,977

6986518.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

1,070

1,048

6986601.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

1,475

1,447

6986717.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

7,367

2,503

6986974.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

494

473

6986997.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

7,824

4,690

6987089.SQ.FTS.B

,

Zero

Cpn

,

3/04/25

...

6,307

6,188

6987501.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

1,220

1,179

6987569.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

3,671

1,839

6987650.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

1,064

1,051

6987935.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

2,024

1,945

6988751.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

4,603

4,184

6988943.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

308

302

6988983.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

881

862

6989741.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

7,686

7,539

6989891.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

2,033

1,849

6990177.SQ.FTS.B

,

Zero

Cpn

,

3/05/25

...

5,647

5,227

6990602.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

773

646

6990771.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

2,159

1,524

6990845.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

546

539

6991027.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

2,457

2,150

6991076.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

3,610

3,552

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6991229.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

$

12,154

$

11,060

6991581.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

4,940

4,425

6992584.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

16,860

16,438

6993089.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

1,791

738

6993405.SQ.FTS.B

,

Zero

Cpn

,

3/06/25

...

1,799

1,507

6995689.SQ.FTS.B

,

Zero

Cpn

,

3/07/25

...

162

160

6995742.SQ.FTS.B

,

Zero

Cpn

,

3/07/25

...

400

388

6995974.SQ.FTS.B

,

Zero

Cpn

,

3/07/25

...

2,644

1,500

6996026.SQ.FTS.B

,

Zero

Cpn

,

3/07/25

...

21,009

16,495

6997293.SQ.FTS.B

,

Zero

Cpn

,

3/07/25

...

5,558

5,393

7000460.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

847

830

7000516.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

6,902

6,509

7000748.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

5,078

4,888

7001065.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

1,714

1,631

7001131.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

65

64

7001137.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

4,860

3,456

7001238.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

1,842

1,550

7001417.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

2,280

2,216

7001643.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

1,064

1,047

7001717.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

7,260

5,421

7001805.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

8,707

4,574

7001926.SQ.FTS.B

,

Zero

Cpn

,

3/08/25

...

33,069

28,291

7002805.SQ.FTS.B

,

Zero

Cpn

,

3/09/25

...

720

698

7002839.SQ.FTS.B

,

Zero

Cpn

,

3/09/25

...

4,074

3,521

7003078.SQ.FTS.B

,

Zero

Cpn

,

3/09/25

...

6,520

4,368

7003487.SQ.FTS.B

,

Zero

Cpn

,

3/10/25

...

3,378

3,277

7003565.SQ.FTS.B

,

Zero

Cpn

,

3/10/25

...

2,365

2,308

7003833.SQ.FTS.B

,

Zero

Cpn

,

3/10/25

...

1,178

1,038

7003880.SQ.FTS.B

,

Zero

Cpn

,

3/10/25

...

19,501

18,636

7005388.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

6,803

6,633

7005638.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

7,461

4,438

7005777.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

581

574

7005973.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

8,218

7,987

7006240.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

2,132

2,068

7006290.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

4,319

3,797

7006737.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

872

777

7006776.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

3,011

2,158

7006910.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

3,951

3,610

7007003.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

4,864

4,520

7007140.SQ.FTS.B

,

Zero

Cpn

,

3/11/25

...

14,604

14,000

7007466.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

1,380

1,362

7008210.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

1,046

929

7008245.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

5,448

5,227

7008486.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

1,713

1,590

7008548.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

20,481

15,786

7008985.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

4,979

4,853

7009269.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

22,063

7,280

7009982.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

1,573

753

7010025.SQ.FTS.B

,

Zero

Cpn

,

3/12/25

...

38,212

33,919

7010932.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

1,748

1,438

7010971.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

958

769

7011082.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

1,378

1,221

7011133.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

14,858

13,571

7012242.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

5,358

5,135

7012593.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

2,606

2,100

7012891.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

1,064

1,028

7013036.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

3,591

3,415

7013377.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

2,538

2,457

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7013520.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

$

6,471

$

6,324

7014068.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

6,999

4,820

7014159.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

1,826

1,445

7014182.SQ.FTS.B

,

Zero

Cpn

,

3/13/25

...

2,473

2,429

7016320.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

5,263

5,153

7016702.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

7,537

7,471

7018206.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

1,931

1,792

7018355.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

3,601

3,514

7018517.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

3,225

3,122

7018665.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

13,318

7,254

7018946.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

703

695

7019048.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

6,650

6,579

7019564.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

2,908

1,967

7019615.SQ.FTS.B

,

Zero

Cpn

,

3/14/25

...

4,106

4,022

7020537.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,124

1,089

7020809.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,741

1,516

7020921.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

2,021

1,871

7021116.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,148

843

7021179.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

689

639

7021238.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

6,164

4,476

7021699.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,422

1,033

7021732.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

6,752

5,667

7022730.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

3,666

3,290

7023270.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

14,248

10,301

7023586.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

5,271

3,617

7023843.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,285

874

7023914.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

1,445

1,410

7023999.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

917

843

7024049.SQ.FTS.B

,

Zero

Cpn

,

3/15/25

...

9,455

9,283

7024634.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

4,483

3,898

7024745.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

2,492

1,338

7024788.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

3,998

3,702

7024912.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

662

649

7024944.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

3,161

3,021

7025010.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

1,940

1,867

7025130.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

660

597

7025173.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

2,964

2,906

7025279.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

713

701

7025304.SQ.FTS.B

,

Zero

Cpn

,

3/16/25

...

3,209

2,387

7025639.SQ.FTS.B

,

Zero

Cpn

,

3/17/25

...

439

435

7025751.SQ.FTS.B

,

Zero

Cpn

,

3/17/25

...

11,891

11,584

7026089.SQ.FTS.B

,

Zero

Cpn

,

3/17/25

...

2,009

1,880

7026651.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

1,006

993

7026779.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

2,877

2,714

7027109.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

2,516

2,126

7027218.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

3,909

2,168

7028020.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

8,769

8,622

7028500.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

1,495

1,332

7028537.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

66,996

37,684

7029537.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

2,997

2,426

7029578.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

2,816

2,763

7029879.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

3,130

2,938

7030059.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

3,638

2,736

7030353.SQ.FTS.B

,

Zero

Cpn

,

3/18/25

...

3,599

3,508

7030602.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

2,305

2,258

7030676.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

1,035

1,012

7030781.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

595

571

7031071.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

1,048

979

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7031577.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

$

1,398

$

1,336

7031775.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

671

645

7031810.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

2,041

1,880

7031973.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

1,450

1,421

7032279.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

5,575

3,190

7032344.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

32,681

31,410

7033222.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

16,689

12,595

7033411.SQ.FTS.B

,

Zero

Cpn

,

3/19/25

...

5

5

7034217.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

2,376

2,313

7034454.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

1,255

1,159

7034510.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

229

225

7035030.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

486

471

7035266.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

4,120

3,865

7035799.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

46,874

43,561

7036994.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

490

463

7037003.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

18,319

18,073

7037993.SQ.FTS.B

,

Zero

Cpn

,

3/20/25

...

2,267

2,110

7039842.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

3,035

2,997

7040179.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

11,048

6,366

7040643.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

5,728

5,645

7041176.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

3,343

2,771

7041966.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

217

214

7042023.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

1,657

1,592

7042110.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

36,817

35,700

7043444.SQ.FTS.B

,

Zero

Cpn

,

3/21/25

...

6,529

5,486

7043824.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

1,269

1,056

7043910.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

3,307

3,185

7044138.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

3,547

3,391

7044330.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

1,489

1,465

7044429.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

1,347

1,339

7045249.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

1,846

1,801

7045332.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

3,374

3,281

7045538.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

22,933

22,334

7046787.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

1,367

1,338

7046836.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

3,088

2,013

7046965.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

415

370

7046986.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

942

882

7047020.SQ.FTS.B

,

Zero

Cpn

,

3/22/25

...

480

463

7047074.SQ.FTS.B

,

Zero

Cpn

,

3/23/25

...

17,149

11,336

7047321.SQ.FTS.B

,

Zero

Cpn

,

3/23/25

...

3,328

3,251

7047454.SQ.FTS.B

,

Zero

Cpn

,

3/23/25

...

2,583

2,513

7047536.SQ.FTS.B

,

Zero

Cpn

,

3/23/25

...

721

709

7047583.SQ.FTS.B

,

Zero

Cpn

,

3/23/25

...

8,361

8,106

7048285.SQ.FTS.B

,

Zero

Cpn

,

3/24/25

...

4,530

4,452

7048466.SQ.FTS.B

,

Zero

Cpn

,

3/24/25

...

3,185

2,999

7048541.SQ.FTS.B

,

Zero

Cpn

,

3/24/25

...

1,139

1,130

7048672.SQ.FTS.B

,

Zero

Cpn

,

3/24/25

...

1,228

1,177

7048975.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

2,619

2,563

7049151.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

299

296

7049368.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

803

748

7049780.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

888

868

7049845.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

2,515

2,345

7049930.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

2,775

2,507

7050197.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

13,025

6,078

7050515.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

174

169

7050533.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

2,629

2,471

7050585.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

567

287

7050592.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

912

390

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7051230.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

$

2,717

$

2,681

7051387.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

8,388

8,138

7051616.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

1,886

1,862

7051781.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

5,662

4,241

7052092.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

20,486

11,344

7052443.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

5,328

5,123

7052564.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

3,495

2,307

7052668.SQ.FTS.B

,

Zero

Cpn

,

3/25/25

...

1,948

1,808

7052707.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

248

245

7052795.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

12,293

11,868

7053292.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

1,159

1,145

7053454.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

14,877

14,559

7054449.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

2,857

2,799

7054593.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

642

564

7054612.SQ.FTS.B

,

Zero

Cpn

,

3/26/25

...

5,385

2,425

7055882.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

900

881

7055934.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

6,148

3,192

7056018.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

1,249

1,231

7056251.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

1,167

1,091

7056845.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

768

725

7056959.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

857

758

7057013.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

5,699

5,526

7057720.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

4,678

4,495

7057972.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

4,315

3,908

7058120.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

8,597

8,244

7058367.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

434

431

7058652.SQ.FTS.B

,

Zero

Cpn

,

3/27/25

...

9,546

9,443

7061030.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

2,385

2,214

7061151.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

69

68

7061185.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

486

479

7061323.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

34,494

21,533

7062302.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

1,925

1,892

7062421.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

896

812

7062617.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

20,347

6,814

7062963.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

807

751

7062997.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

6,257

5,813

7063302.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

27,040

25,292

7063881.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

3,199

2,814

7064581.SQ.FTS.B

,

Zero

Cpn

,

3/28/25

...

663

619

7065240.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

3,869

3,495

7065573.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

13,691

9,119

7066061.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

1,339

1,298

7066163.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

35,851

34,993

7067737.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

1,735

1,700

7067874.SQ.FTS.B

,

Zero

Cpn

,

3/29/25

...

4,746

2,382

7068142.SQ.FTS.B

,

Zero

Cpn

,

3/30/25

...

2,141

2,093

7068321.SQ.FTS.B

,

Zero

Cpn

,

3/30/25

...

22,663

16,460

7068749.SQ.FTS.B

,

Zero

Cpn

,

3/30/25

...

6,352

5,911

7068882.SQ.FTS.B

,

Zero

Cpn

,

3/30/25

...

1,597

1,557

7069240.SQ.FTS.B

,

Zero

Cpn

,

4/01/25

...

1,169

976

7069264.SQ.FTS.B

,

Zero

Cpn

,

4/01/25

...

1,261

1,250

7069593.SQ.FTS.B

,

Zero

Cpn

,

4/01/25

...

3,322

3,278

7069692.SQ.FTS.B

,

Zero

Cpn

,

4/01/25

...

6,226

3,651

7069775.SQ.FTS.B

,

Zero

Cpn

,

4/01/25

...

5,149

5,019

7070173.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

1,762

1,709

7071000.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

645

310

7071024.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

2,257

2,167

7071207.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

494

331

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7071948.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

$

1,826

$

1,251

7073414.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

644

631

7073486.SQ.FTS.B

,

Zero

Cpn

,

4/02/25

...

144

142

7074005.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

6,695

6,334

7074171.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

1,421

1,368

7074204.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

5,096

3,346

7075287.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

3,058

2,959

7075529.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

39,344

38,338

7076876.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

7,313

7,190

7077192.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

963

944

7077298.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

7,269

7,163

7077653.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

245

234

7077760.SQ.FTS.B

,

Zero

Cpn

,

4/03/25

...

585

570

7078197.SQ.FTS.B

,

Zero

Cpn

,

4/04/25

...

344

327

7079133.SQ.FTS.B

,

Zero

Cpn

,

4/04/25

...

1,450

1,424

7079363.SQ.FTS.B

,

Zero

Cpn

,

4/04/25

...

1,290

1,267

7080510.SQ.FTS.B

,

Zero

Cpn

,

4/04/25

...

1,437

679

7080716.SQ.FTS.B

,

Zero

Cpn

,

4/04/25

...

23,781

23,180

7085121.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

7,373

7,164

7085433.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

2,121

1,454

7085620.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

9,416

4,535

7085934.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

574

558

7086382.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

39,794

27,086

7087303.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

13,074

12,697

7087718.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

3,078

3,008

7087819.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

1,050

980

7087837.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

18,994

17,740

7088677.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

1,010

927

7088734.SQ.FTS.B

,

Zero

Cpn

,

4/05/25

...

19,122

10,277

7089009.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

3,197

3,101

7089156.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

4,792

4,670

7089445.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

1,284

1,259

7089598.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

2,467

2,406

7089901.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

7,927

5,441

7090196.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

1,948

1,918

7090463.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

1,986

1,943

7090542.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

41,983

40,312

7091540.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

10,017

7,904

7091737.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

2,301

1,822

7092185.SQ.FTS.B

,

Zero

Cpn

,

4/06/25

...

1,729

1,707

7092397.SQ.FTS.B

,

Zero

Cpn

,

4/07/25

...

9,919

9,692

7092933.SQ.FTS.B

,

Zero

Cpn

,

4/07/25

...

2,295

2,038

7093625.SQ.FTS.B

,

Zero

Cpn

,

4/08/25

...

3,312

3,247

7093818.SQ.FTS.B

,

Zero

Cpn

,

4/08/25

...

3,720

3,623

7094118.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

1,813

1,599

7094198.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

2,681

2,604

7094290.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

3,611

2,257

7094417.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

358

351

7094476.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

8,057

7,585

7094784.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

720

690

7095051.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

4,161

4,009

7095396.SQ.FTS.B

,

Zero

Cpn

,

4/09/25

...

4,284

2,415

7095666.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

3,955

3,872

7095850.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

1,904

1,311

7096035.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

10,216

4,330

7096613.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

3,622

2,231

7096738.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

4,875

3,093

7096908.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

2,245

2,172

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7097071.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

$

3,827

$

3,645

7097309.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

3,864

3,630

7097449.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

333

329

7097492.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

3,262

3,167

7097638.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

241

228

7098792.SQ.FTS.B

,

Zero

Cpn

,

4/10/25

...

9,230

8,203

7099787.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

2,264

2,226

7099916.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

3,010

2,912

7099999.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

497

485

7100012.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

1,321

1,283

7100047.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

1,348

1,108

7100062.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

8,058

7,883

7100289.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

1,748

1,113

7100936.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

9,712

9,492

7101698.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

1,074

939

7101803.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

4,926

4,815

7102105.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

6,046

5,962

7102664.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

2,821

2,760

7102724.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

5,698

5,365

7102893.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

722

714

7102932.SQ.FTS.B

,

Zero

Cpn

,

4/11/25

...

2,414

1,697

7105121.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

4,020

3,775

7105271.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

1,500

893

7105293.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

806

790

7105455.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

18,132

17,351

7106350.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

596

552

7106370.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

209

206

7106451.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

12,270

10,799

7107269.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

2,618

2,518

7107331.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

138

136

7107343.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

3,105

2,990

7107406.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

4,931

4,824

7107539.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

34,470

30,705

7108215.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

4,658

4,544

7108350.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

2,916

2,648

7108477.SQ.FTS.B

,

Zero

Cpn

,

4/12/25

...

835

804

7108783.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

1,552

1,417

7108839.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

9,146

8,104

7109108.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

11,700

11,443

7109927.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

8,573

3,451

7110102.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

4,551

4,364

7110287.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

2,992

2,936

7110433.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

19,497

19,329

7111816.SQ.FTS.B

,

Zero

Cpn

,

4/13/25

...

3,243

3,199

7112026.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

474

470

7112255.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

2,398

882

7112304.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

7,783

7,589

7112626.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

1,831

1,768

7112706.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

2,464

2,410

7112817.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

2,127

1,877

7112878.SQ.FTS.B

,

Zero

Cpn

,

4/14/25

...

15,027

14,210

7114191.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

4,758

4,614

7114730.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

9,097

8,562

7115331.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

1,073

660

7115405.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

35,457

31,665

7116512.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

3,121

3,009

7116655.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

3,148

3,075

7116789.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

5,819

5,685

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7116937.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

$

799

$

516

7117157.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

1,020

987

7117174.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

1,671

1,648

7117443.SQ.FTS.B

,

Zero

Cpn

,

4/16/25

...

1,084

1,041

7117675.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

893

868

7117730.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

4,861

4,729

7118029.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

2,685

2,626

7118779.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

3,524

3,419

7118920.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

3,792

3,490

7118984.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

1,289

1,270

7119041.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

1,778

1,732

7119074.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

3,457

2,864

7120098.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

730

678

7120119.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

12,932

12,555

7120693.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

7,131

6,849

7120877.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

11,352

10,682

7121272.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

2,956

2,296

7121339.SQ.FTS.B

,

Zero

Cpn

,

4/17/25

...

1,069

1,044

7121521.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

6,277

6,024

7121775.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

12,507

11,740

7122345.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

541

515

7122434.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

1,228

1,102

7122509.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

3,100

3,029

7122628.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

4,824

4,716

7123005.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

5,932

5,859

7123229.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

535

532

7123343.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

12,594

11,014

7123668.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

7,742

7,499

7124218.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

817

790

7124312.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

14,137

13,871

7125266.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

940

914

7125329.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

2,282

1,775

7126005.SQ.FTS.B

,

Zero

Cpn

,

4/18/25

...

3,795

3,682

7128413.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

3,313

3,144

7128581.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

19,635

19,129

7132177.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

7,496

7,173

7132689.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

9,349

9,191

7133436.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

186

181

7133482.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

5,873

5,727

7133911.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

2,346

2,251

7134111.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

5,034

4,895

7134421.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

4,698

4,557

7134716.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

8,630

8,126

7134885.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

1,233

1,206

7134939.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

9,292

8,344

7135119.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

898

810

7135140.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

6,870

6,790

7135572.SQ.FTS.B

,

Zero

Cpn

,

4/19/25

...

3,636

3,510

7135856.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

14,376

13,337

7136509.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

16,063

11,540

7137083.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

1,795

1,775

7137247.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

1,796

1,775

7137611.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

14,881

14,552

7138552.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

11,942

11,729

7139071.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

35,421

33,982

7141030.SQ.FTS.B

,

Zero

Cpn

,

4/20/25

...

784

779

7141454.SQ.FTS.B

,

Zero

Cpn

,

4/21/25

...

2,522

2,475

7141663.SQ.FTS.B

,

Zero

Cpn

,

4/21/25

...

1,940

1,827

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7141745.SQ.FTS.B

,

Zero

Cpn

,

4/21/25

...

$

4,258

$

4,157

7141925.SQ.FTS.B

,

Zero

Cpn

,

4/21/25

...

18,263

11,721

7142834.SQ.FTS.B

,

Zero

Cpn

,

4/22/25

...

2,361

2,239

7142919.SQ.FTS.B

,

Zero

Cpn

,

4/22/25

...

1,734

1,427

7142960.SQ.FTS.B

,

Zero

Cpn

,

4/22/25

...

8,984

8,721

7143739.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

1,596

1,575

7143843.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

1,892

1,500

7144234.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

3,726

3,678

7144806.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

1,643

1,185

7145862.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

15,935

15,752

7146804.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

2,320

2,281

7146992.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

3,841

3,779

7147233.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

876

714

7147279.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

10,015

7,074

7147597.SQ.FTS.B

,

Zero

Cpn

,

4/23/25

...

1,988

1,360

7147952.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,501

1,477

7148314.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,065

1,043

7148524.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

13,000

12,480

7148927.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

934

903

7148960.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

4,747

4,546

7149069.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

6,764

6,497

7149252.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,494

1,839

7149510.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,433

2,352

7149585.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,048

954

7149622.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,090

1,054

7149658.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

4,976

4,502

7149774.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

5,112

4,977

7149920.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

564

548

7149937.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,647

2,590

7150018.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,696

1,960

7150045.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

5,037

4,912

7150158.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,672

2,630

7150613.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

2,475

2,423

7150727.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

6,346

6,144

7150936.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,346

1,330

7151035.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,149

1,071

7151063.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

1,063

949

7151096.SQ.FTS.B

,

Zero

Cpn

,

4/24/25

...

57

57

7151518.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

3,527

3,444

7151772.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

1,383

1,343

7151927.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

3,932

3,840

7152311.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

4,750

4,641

7152548.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

1,021

1,009

7152650.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

735

614

7152674.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

27,581

26,563

7153920.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

27,277

22,498

7154615.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

3,371

3,226

7154719.SQ.FTS.B

,

Zero

Cpn

,

4/25/25

...

6,577

4,047

7156861.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

4,126

4,069

7157024.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

1,075

1,011

7157392.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

285

204

7157411.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

2,713

2,682

7157658.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

4,257

4,173

7157788.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

1,787

1,066

7157899.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

6,196

5,868

7157975.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

4,177

3,762

7158066.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

8,684

6,146

7158189.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

2,385

1,237

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7158286.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

$

3,885

$

3,825

7158353.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

23,473

22,571

7159530.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

14,567

14,076

7160007.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

6,674

4,809

7160263.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

1,416

595

7160682.SQ.FTS.B

,

Zero

Cpn

,

4/26/25

...

1,411

1,132

7160721.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

2,113

2,073

7160797.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

40,338

36,410

7162257.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

3,675

3,534

7162767.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

23,482

22,764

7163217.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

1,189

764

7163242.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

3,494

3,395

7163307.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

79

77

7163317.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

5,011

4,959

7163642.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

7,736

7,513

7163900.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

6,805

4,885

7164006.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

877

841

7164020.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

1,707

1,580

7164038.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

4,973

4,492

7164127.SQ.FTS.B

,

Zero

Cpn

,

4/27/25

...

2,339

2,235

7164193.SQ.FTS.B

,

Zero

Cpn

,

4/28/25

...

5,624

3,913

7164275.SQ.FTS.B

,

Zero

Cpn

,

4/28/25

...

10,388

10,105

7164635.SQ.FTS.B

,

Zero

Cpn

,

4/28/25

...

5,800

5,621

7165289.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

1,722

1,617

7165357.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

610

605

7165413.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

519

510

7165454.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

13,113

12,696

7165931.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

1,875

1,683

7165983.SQ.FTS.B

,

Zero

Cpn

,

4/29/25

...

1,987

1,674

7166301.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

760

749

7166369.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,398

2,344

7166628.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

229

226

7166695.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

5,306

3,548

7166982.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

7,379

7,011

7167449.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

9,048

8,837

7167935.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

3,697

3,583

7168044.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,096

674

7168083.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,777

2,683

7168326.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

3,801

2,630

7168459.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

6,470

5,981

7168779.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

884

870

7168846.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

6,710

5,455

7169229.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

11,230

9,543

7169700.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,257

1,503

7169773.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

3,380

3,236

7169949.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

4,180

3,967

7170225.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

5,182

5,037

7170364.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

9,094

8,813

7170714.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

4,469

4,151

7170825.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,829

2,766

7171046.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

637

611

7171112.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,225

2,182

7171260.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

3,880

3,784

7171387.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

3,046

2,988

7171666.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

9,337

8,379

7171906.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

2,500

2,347

7172060.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

5,553

5,316

7172194.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

11,076

10,727

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7172526.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

$

7,961

$

4,393

7172648.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

4,337

4,279

7172795.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

24,889

23,663

7173268.SQ.FTS.B

,

Zero

Cpn

,

4/30/25

...

9,419

9,128

7173852.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

614

600

7173881.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

3,091

2,881

7173920.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

2,765

2,643

7174037.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

4,265

4,084

7174316.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

14,007

12,577

7174829.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

2,939

2,842

7174940.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

8,982

6,578

7175176.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

16,181

15,393

7175613.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

553

543

7175727.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

50,708

40,064

7176634.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

1,458

556

7176646.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

1,231

269

7176724.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

1,728

1,679

7176769.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

4,160

4,068

7176869.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

1,477

1,443

7176909.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

443

440

7176979.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

1,926

1,867

7177033.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

244

237

7177097.SQ.FTS.B

,

Zero

Cpn

,

5/01/25

...

7,682

7,447

7179247.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

2,324

1,470

7179318.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

15,272

14,210

7179631.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

3,157

3,084

7179825.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

4,849

4,028

7180029.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

2,612

2,555

7180140.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

703

571

7180158.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,152

1,095

7180190.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,100

1,065

7180217.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

8,736

8,196

7180390.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

5,192

5,026

7180490.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

2,274

2,225

7180531.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,185

1,149

7180645.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

8,937

8,551

7180768.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,516

1,491

7180807.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

6,257

5,578

7180850.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

2,462

2,315

7180897.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

26,593

24,317

7182975.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

4,562

4,467

7183216.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,025

1,003

7183251.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

2,147

2,121

7183311.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

3,826

2,950

7183657.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

1,426

836

7183698.SQ.FTS.B

,

Zero

Cpn

,

5/02/25

...

6,172

5,979

7184625.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

4,954

3,665

7184791.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

5,311

5,213

7185053.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

8,264

8,038

7185255.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

4,640

4,447

7185353.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

6,878

5,834

7185470.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

9,272

8,979

7185698.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

1,973

1,937

7186707.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

8,960

8,690

7187026.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

948

918

7187041.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

3,278

3,231

7187279.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

1,202

1,154

7187317.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

1,688

1,624

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7187368.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

$

3,513

$

3,405

7187560.SQ.FTS.B

,

Zero

Cpn

,

5/03/25

...

1,052

999

7187697.SQ.FTS.B

,

Zero

Cpn

,

5/04/25

...

3,631

3,549

7187956.SQ.FTS.B

,

Zero

Cpn

,

5/04/25

...

9,848

8,939

7188275.SQ.FTS.B

,

Zero

Cpn

,

5/04/25

...

633

603

7188313.SQ.FTS.B

,

Zero

Cpn

,

5/04/25

...

5,146

3,573

7188578.SQ.FTS.B

,

Zero

Cpn

,

5/05/25

...

1,464

1,291

7188629.SQ.FTS.B

,

Zero

Cpn

,

5/05/25

...

10,851

10,381

7189016.SQ.FTS.B

,

Zero

Cpn

,

5/05/25

...

3,697

3,580

7189152.SQ.FTS.B

,

Zero

Cpn

,

5/05/25

...

12,843

12,590

7191768.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

3,796

3,695

7191961.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

474

367

7192014.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

9,026

7,685

7192198.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

838

753

7192212.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

957

937

7192262.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

10,649

10,561

7193075.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

5,702

5,531

7193339.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

478

468

7193389.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

1,107

1,077

7193450.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

2,063

1,959

7193495.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

2,700

2,639

7193633.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

228

226

7193680.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

5,216

5,003

7193859.SQ.FTS.B

,

Zero

Cpn

,

5/06/25

...

351

346

7193922.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

3,819

3,600

7194026.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

703

698

7194337.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

11,436

11,132

7195186.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

735

718

7195210.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

1,607

1,577

7195692.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

816

790

7195724.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

429

385

7195729.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

11,781

11,496

7196096.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

8,216

4,439

7196183.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

26,589

25,832

7196710.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

732

718

7196728.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

1,848

1,811

7196820.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

6,060

5,817

7196917.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

2,628

2,555

7196964.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

16,966

16,440

7197418.SQ.FTS.B

,

Zero

Cpn

,

5/07/25

...

7,941

7,483

7197654.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

9,648

9,321

7198081.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

2,330

2,277

7198156.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,291

1,209

7198200.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

3,664

3,247

7198306.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

2,064

1,996

7198381.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,790

1,769

7198513.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

9,994

9,744

7199028.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

6,199

6,003

7199219.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

9,490

8,587

7199944.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

987

955

7200301.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

2,000

1,973

7200532.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

7,061

6,351

7200680.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,031

997

7200870.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

3,315

3,252

7200991.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,528

1,499

7201024.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,641

1,601

7201085.SQ.FTS.B

,

Zero

Cpn

,

5/08/25

...

1,946

1,860

7203214.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

12,151

9,144

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7203388.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

$

1,616

$

1,439

7203427.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

450

442

7203545.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

2,904

2,825

7203631.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

3,083

2,196

7203681.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

9,696

9,403

7204614.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

3,537

3,279

7204733.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

10,149

9,815

7204933.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

381

246

7205008.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

11,973

11,602

7205291.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

9,738

9,463

7205656.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

1,328

1,186

7205704.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

101

100

7205744.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

1,461

1,444

7206057.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

3,397

3,302

7206160.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

12,329

7,045

7206450.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

2,918

2,190

7206523.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

23,402

22,431

7207123.SQ.FTS.B

,

Zero

Cpn

,

5/09/25

...

5,169

5,030

7208077.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

51,163

49,896

7209921.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

943

928

7210042.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

500

494

7210072.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

1,321

1,267

7210101.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

3,142

3,083

7210220.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

4,684

4,525

7210297.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

2,842

2,758

7210379.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

1,799

1,600

7210410.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

1,307

1,290

7210480.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

1,356

972

7210517.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

918

865

7210558.SQ.FTS.B

,

Zero

Cpn

,

5/10/25

...

12,198

10,912

7211228.SQ.FTS.B

,

Zero

Cpn

,

5/11/25

...

446

397

7211292.SQ.FTS.B

,

Zero

Cpn

,

5/11/25

...

851

835

7211696.SQ.FTS.B

,

Zero

Cpn

,

5/11/25

...

815

580

7211740.SQ.FTS.B

,

Zero

Cpn

,

5/11/25

...

7,008

6,824

7212016.SQ.FTS.B

,

Zero

Cpn

,

5/12/25

...

2,001

1,779

7212092.SQ.FTS.B

,

Zero

Cpn

,

5/12/25

...

5,751

5,419

7212299.SQ.FTS.B

,

Zero

Cpn

,

5/12/25

...

1,329

1,267

7212387.SQ.FTS.B

,

Zero

Cpn

,

5/12/25

...

6,702

6,533

7212641.SQ.FTS.B

,

Zero

Cpn

,

5/12/25

...

3,206

3,073

7212928.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

7,856

7,685

7213877.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

846

811

7213917.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

1,386

1,349

7213980.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

1,013

965

7214032.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

236

223

7214998.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

1,286

1,265

7215055.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

481

466

7215122.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

4,518

3,728

7215237.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

2,325

2,170

7215280.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

796

775

7215305.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

10,375

10,201

7215743.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

808

765

7215775.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

1,231

1,098

7215803.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

3,887

3,758

7215930.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

14,074

11,019

7216267.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

5,481

5,314

7216451.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

921

889

7216486.SQ.FTS.B

,

Zero

Cpn

,

5/13/25

...

6,754

5,773

7216987.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

422

401

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7217017.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

$

1,096

$

726

7217040.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

21,923

21,589

7218216.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

590

558

7218241.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

11,075

10,911

7218589.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

1,141

1,051

7218608.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

4,501

4,347

7218697.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

11,914

11,502

7218862.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

5,221

4,061

7218894.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

2,236

2,212

7218944.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

25,632

24,841

7220144.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

1,909

1,870

7220210.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

10,165

9,887

7220530.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

384

377

7220659.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

3,158

2,865

7220748.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

1,445

1,375

7220791.SQ.FTS.B

,

Zero

Cpn

,

5/14/25

...

633

551

7220938.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

15,445

15,047

7221589.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

6,397

5,754

7221721.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

7,120

5,104

7222451.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

10,080

5,450

7222748.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

29,223

28,337

7223565.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

20,083

19,695

7224254.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

9,446

6,441

7224451.SQ.FTS.B

,

Zero

Cpn

,

5/15/25

...

2,276

2,217

7226970.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

2,445

2,358

7227987.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

3,092

2,910

7228147.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

1,571

1,518

7228255.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

4,517

4,261

7228516.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

1,716

1,645

7229528.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

3,701

3,372

7229579.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

1,085

1,026

7229627.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

1,224

1,187

7229674.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

2,439

2,385

7229840.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

6,954

6,799

7229967.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

2,388

2,337

7230002.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

20,412

19,913

7230277.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

352

342

7230282.SQ.FTS.B

,

Zero

Cpn

,

5/16/25

...

27,664

26,869

7231209.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

5,864

5,776

7231848.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

2,736

2,680

7232027.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

863

849

7232102.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

16,883

13,665

7232720.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

1,422

1,351

7232784.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

2,486

1,653

7232841.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

5,322

5,202

7233028.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

867

822

7233095.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

4,704

4,567

7233166.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

897

447

7233181.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

31,202

30,282

7234142.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

2,865

2,739

7234193.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

2,301

2,244

7234270.SQ.FTS.B

,

Zero

Cpn

,

5/17/25

...

13,872

13,479

7234706.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

3,061

2,806

7234781.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

1,764

1,710

7234817.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

4,713

4,638

7235006.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

1,504

1,450

7235049.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

3,661

3,502

7235145.SQ.FTS.B

,

Zero

Cpn

,

5/18/25

...

20,605

13,114

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

51

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7235604.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

$

215

$

208

7235614.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

2,882

2,833

7235756.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

3,800

3,745

7235913.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

6,057

5,873

7236217.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

3,786

3,695

7236330.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

1,494

1,451

7236389.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

877

828

7236424.SQ.FTS.B

,

Zero

Cpn

,

5/19/25

...

5,889

5,562

7236825.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

525

520

7237008.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

3,828

3,751

7237806.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

2,500

2,292

7237918.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

19,259

18,201

7238927.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

3,842

3,788

7239160.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

9,335

9,079

7239403.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

3,020

2,381

7239574.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

4,509

4,112

7239815.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

2,705

2,550

7239881.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

10,222

9,866

7240196.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

3,584

3,480

7240312.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

853

781

7240493.SQ.FTS.B

,

Zero

Cpn

,

5/20/25

...

2,092

1,687

7241895.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

2,595

2,525

7241973.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

3,072

2,903

7242128.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

3,424

3,364

7242205.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

5,531

5,369

7242328.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

1,224

1,045

7242370.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

2,245

2,146

7242435.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

34,124

32,926

7243236.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

8,746

4,902

7243308.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

2,467

2,406

7243413.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

2,404

1,880

7243437.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

26,010

25,344

7243786.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

13,447

11,806

7243864.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

3,667

3,587

7243973.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

2,576

2,488

7244026.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

11,947

11,656

7244247.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

3,433

3,219

7244368.SQ.FTS.B

,

Zero

Cpn

,

5/21/25

...

1,373

874

7247480.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

5,880

4,974

7247605.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,856

1,152

7247634.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,050

1,038

7247708.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

2,235

2,170

7247809.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

2,098

2,052

7247949.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

701

694

7248038.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

22,386

21,456

7248743.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

12,028

11,597

7248915.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

796

791

7248961.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,390

1,313

7248975.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

2,426

2,030

7249031.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

7,932

7,822

7249242.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

8,460

7,435

7249354.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,141

1,070

7249396.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

604

596

7249427.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

385

376

7249485.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

2,396

2,246

7249518.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

2,027

1,125

7249529.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

10,580

9,496

7249679.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,256

979

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7249708.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

$

1,138

$

1,114

7249940.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

5,078

4,616

7250673.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,423

1,389

7250948.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

1,475

1,347

7250987.SQ.FTS.B

,

Zero

Cpn

,

5/22/25

...

9,157

8,090

7251278.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

3,491

3,435

7251383.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

16,733

16,308

7251668.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

10,817

10,541

7251866.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

703

679

7251878.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

893

859

7251900.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

2,730

2,422

7251941.SQ.FTS.B

,

Zero

Cpn

,

5/23/25

...

9,182

8,555

7252092.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

2,457

2,405

7252317.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

10,418

9,984

7252834.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

4,847

2,427

7253237.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

1,069

977

7253390.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

3,991

3,730

7253723.SQ.FTS.B

,

Zero

Cpn

,

5/24/25

...

11,865

11,600

7254492.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

6,807

6,475

7254592.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

5,890

5,726

7254645.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

763

751

7254658.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

8,729

7,935

7254743.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

4,394

4,000

7254768.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

3,047

2,957

7254815.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

19,583

19,232

7255101.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

3,233

3,154

7255173.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

9,911

9,677

7255351.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

1,671

1,648

7255383.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

7,559

7,080

7255527.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

4,502

4,355

7255605.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

898

848

7255633.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

1,516

1,382

7255652.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

18,682

18,274

7256022.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

1,671

1,543

7256038.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

3,512

3,409

7256089.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

2,459

2,306

7256122.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

1,533

1,194

7256140.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

605

596

7256160.SQ.FTS.B

,

Zero

Cpn

,

5/25/25

...

2,796

2,617

7256206.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

8,849

8,600

7256358.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

3,345

3,288

7256449.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

1,144

1,127

7256482.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

6,293

5,936

7256570.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

12,460

9,723

7256670.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

3,443

3,358

7256711.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

2,555

1,821

7256732.SQ.FTS.B

,

Zero

Cpn

,

5/26/25

...

28,104

23,246

7257483.SQ.FTS.B

,

Zero

Cpn

,

5/27/25

...

931

903

7260903.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

1,952

1,849

7260963.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

849

807

7260989.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

5,551

5,316

7261056.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

5,301

4,653

7261245.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

35,397

33,905

7262220.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

3,091

2,952

7262283.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

1,892

1,788

7262313.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

2,661

2,576

7262347.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

8,223

8,003

7262532.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

3,443

1,449

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7262602.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

$

1,562

$

734

7262611.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

16,417

15,800

7262884.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

1,817

1,773

7262936.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

20,013

19,568

7263218.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

4,306

4,175

7263317.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

2,285

2,260

7263375.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

1,691

1,319

7263388.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

2,307

2,234

7263402.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

2,966

1,985

7263459.SQ.FTS.B

,

Zero

Cpn

,

5/28/25

...

208

205

7264204.SQ.FTS.B

,

Zero

Cpn

,

5/29/25

...

79,105

71,575

7266191.SQ.FTS.B

,

Zero

Cpn

,

5/29/25

...

55,660

43,423

7266972.SQ.FTS.B

,

Zero

Cpn

,

5/29/25

...

21,769

18,552

7267344.SQ.FTS.B

,

Zero

Cpn

,

5/29/25

...

27,691

25,174

7269885.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

1,869

1,797

7269992.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

6,408

6,078

7270194.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

2,655

1,932

7270377.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

4,013

3,900

7270870.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

2,693

2,634

7271021.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

3,263

3,062

7271171.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

35,244

34,647

7273383.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

17,496

16,487

7273743.SQ.FTS.B

,

Zero

Cpn

,

5/30/25

...

29,018

28,107

7273846.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

10,467

10,102

7274252.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

5,946

5,733

7274698.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

3,897

3,804

7274898.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

1,667

1,574

7274943.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

14,202

13,328

7275433.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

768

757

7275495.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

2,035

1,752

7275566.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

917

898

7275604.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

1,904

1,371

7275636.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

17,677

17,194

7276248.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

577

544

7276262.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

1,501

1,429

7276341.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

1,971

1,882

7276481.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

15,420

14,783

7276963.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

1,219

1,175

7277031.SQ.FTS.B

,

Zero

Cpn

,

6/01/25

...

39,816

26,265

7277474.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

23,678

23,030

7278047.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

8,694

8,439

7278294.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

7,945

7,273

7278441.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

130

128

7278460.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

473

448

7278476.SQ.FTS.B

,

Zero

Cpn

,

6/02/25

...

1,883

1,829

7278522.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

6,662

6,339

7278670.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

1,697

1,652

7278714.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

6,592

6,403

7278877.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

1,186

945

7278898.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

13,027

12,776

7279324.SQ.FTS.B

,

Zero

Cpn

,

6/03/25

...

14,367

13,711

7279999.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

462

437

7280027.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

3,623

3,327

7280108.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,888

1,799

7280198.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

4,842

4,723

7280563.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

5,434

5,248

7280873.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

5,514

5,368

7281092.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

3,075

2,974

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7281210.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

$

901

$

532

7281251.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,400

1,299

7281325.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

2,950

2,871

7281461.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

2,635

2,568

7281601.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,132

438

7281616.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,194

1,167

7281682.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,650

1,529

7282307.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

5,766

5,576

7282449.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,890

1,847

7282583.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

1,453

1,436

7282644.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

8,090

7,727

7282811.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

852

528

7282827.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

5,260

5,107

7282931.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

22,083

20,331

7283495.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

7,196

6,867

7283733.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

4,543

4,428

7283925.SQ.FTS.B

,

Zero

Cpn

,

6/04/25

...

5,507

5,363

7284030.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,026

1,877

7284096.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,779

2,707

7284167.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,793

1,733

7284208.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

15,131

14,161

7284570.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,019

1,983

7284674.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,414

1,224

7284693.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,583

1,456

7285190.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,207

2,003

7285398.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,752

1,346

7285451.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,297

2,257

7285629.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

9,277

8,486

7286088.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

15,378

13,491

7286507.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

6,950

6,724

7286647.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,106

1,088

7286703.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,004

984

7286725.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,985

1,955

7286762.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

4,785

4,620

7286913.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

3,631

3,506

7286986.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

3,968

3,820

7287069.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,665

1,634

7287144.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

2,501

1,581

7287176.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

5,152

3,532

7287258.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

5,352

5,227

7287515.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

4,191

4,083

7287612.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

3,144

3,095

7287697.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

1,104

1,076

7287732.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

578

449

7287743.SQ.FTS.B

,

Zero

Cpn

,

6/05/25

...

6,723

6,430

7287778.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

14,402

14,026

7288380.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

10,527

10,296

7289082.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

4,548

3,787

7289183.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

2,818

2,222

7289261.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

1,233

1,199

7289284.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

2,405

2,173

7289340.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

4,519

4,307

7289438.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

1,113

685

7289452.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

4,940

3,645

7289552.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

1,678

1,658

7290000.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

2,186

2,120

7290056.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

5,925

4,453

7290226.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

1,511

1,492

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7290751.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

$

8,977

$

8,756

7290996.SQ.FTS.B

,

Zero

Cpn

,

6/06/25

...

2,194

2,161

7293655.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

30,374

29,733

7295261.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

14,703

14,486

7295844.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

3,852

3,731

7296022.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

39,619

37,773

7296992.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

19,800

19,408

7297530.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

1,684

1,656

7297679.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

3,731

3,562

7297771.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

903

800

7297795.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

2,252

2,073

7297843.SQ.FTS.B

,

Zero

Cpn

,

6/07/25

...

1,619

1,594

7298021.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

17,272

15,006

7299136.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

919

880

7299156.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

5,572

5,404

7299515.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

619

592

7299522.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

5,764

5,490

7299621.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

47,264

41,248

7300176.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

3,223

2,967

7300300.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

4,454

4,287

7300620.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

27,615

26,474

7301398.SQ.FTS.B

,

Zero

Cpn

,

6/08/25

...

5,425

5,254

7301560.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

1,079

1,056

7301596.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

352

348

7301606.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

20,224

19,736

7302007.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

1,434

1,405

7302047.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

2,552

2,323

7302110.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

10,120

9,577

7302332.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

1,112

970

7302355.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

3,668

3,386

7302439.SQ.FTS.B

,

Zero

Cpn

,

6/09/25

...

8,113

7,789

7302709.SQ.FTS.B

,

Zero

Cpn

,

6/10/25

...

215

215

7303428.SQ.FTS.B

,

Zero

Cpn

,

6/10/25

...

2,524

2,477

7303522.SQ.FTS.B

,

Zero

Cpn

,

6/10/25

...

549

527

7303540.SQ.FTS.B

,

Zero

Cpn

,

6/10/25

...

1,023

1,014

7303671.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

15,654

15,081

7305005.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

5,762

5,638

7305358.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

5,199

4,964

7305520.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

5,232

4,177

7305662.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

6,334

6,058

7305898.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

4,157

3,991

7305963.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

2,022

1,994

7306246.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

5,957

5,775

7306482.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

9,634

9,331

7306789.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

28,892

27,380

7307445.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

1,896

1,838

7307517.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

596

586

7307570.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

13,371

12,861

7308019.SQ.FTS.B

,

Zero

Cpn

,

6/11/25

...

2,469

2,415

7308082.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

4,093

3,948

7308238.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

2,070

1,056

7308292.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

621

615

7308360.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

8,646

8,452

7308914.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

5,532

5,422

7309358.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

870

841

7309391.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

5,980

5,714

7309692.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

10,600

10,330

7309945.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

2,200

1,531

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7311219.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

$

5,812

$

5,247

7312994.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

1,331

1,305

7313057.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

222

217

7313069.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

54,632

53,221

7314146.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

4,720

4,600

7314233.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

6,426

6,207

7314341.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

3,110

2,903

7314424.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

5,550

5,350

7314543.SQ.FTS.B

,

Zero

Cpn

,

6/12/25

...

8,286

7,899

7314655.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

327

320

7314697.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

3,749

2,679

7314770.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

46,835

45,837

7316192.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

1,557

1,346

7316232.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

22,582

21,245

7316689.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

4,594

4,472

7316730.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

5,589

5,273

7316842.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

4,447

2,144

7316881.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

3,449

3,279

7316934.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

1,107

1,092

7316965.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

24,023

23,624

7317647.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

1,126

1,094

7317681.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

1,843

1,821

7317927.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

1,139

1,093

7317981.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

2,004

1,047

7318018.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

6,392

3,919

7318107.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

711

662

7318115.SQ.FTS.B

,

Zero

Cpn

,

6/13/25

...

3,153

2,560

7320321.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

322

304

7320378.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

19,767

19,093

7321061.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

5,565

4,029

7321193.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

3,169

3,084

7321334.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

686

662

7321344.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

3,139

2,769

7321422.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,580

1,491

7321557.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

4,723

4,528

7321731.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

2,573

2,426

7321802.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

31,828

30,953

7322629.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

19,933

18,297

7322995.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

3,915

3,839

7323102.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,614

1,296

7323185.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,038

939

7323332.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

5,941

4,590

7323529.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

8,561

8,302

7323669.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

783

754

7323686.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,933

1,883

7323718.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

5,023

4,346

7323794.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,096

1,050

7323847.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,651

1,578

7323905.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

5,655

5,073

7324071.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,468

1,431

7324084.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

3,565

3,496

7324318.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

1,540

1,343

7324341.SQ.FTS.B

,

Zero

Cpn

,

6/14/25

...

14,158

13,778

7324497.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

2,295

2,078

7324584.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

8,959

8,648

7324925.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,501

1,470

7324969.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

2,680

2,555

7325114.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,111

1,075

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7325161.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

$

7,361

$

7,064

7325539.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

11,169

10,676

7325882.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,285

1,242

7325926.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

6,048

5,791

7326209.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,139

1,031

7326254.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

5,459

5,271

7326332.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

3,680

2,952

7326356.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

5,901

5,724

7326444.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

4,992

3,093

7326520.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,419

1,324

7326588.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

4,333

4,095

7326771.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

650

623

7326822.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

14,627

14,106

7327074.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

8,903

8,564

7327281.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

5,990

5,828

7327383.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

874

856

7327448.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

2,019

1,945

7327571.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

6,589

6,403

7327754.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,792

1,752

7327791.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

8,993

7,362

7327950.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

883

870

7328003.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

395

382

7328018.SQ.FTS.B

,

Zero

Cpn

,

6/15/25

...

1,118

1,069

7328062.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

1,458

1,421

7328109.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

7,949

7,752

7328411.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

237

232

7328426.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

13,307

12,125

7328698.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

2,226

1,710

7328753.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

2,965

2,891

7328811.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

1,425

1,388

7328849.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

875

863

7328881.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

1,616

1,518

7328914.SQ.FTS.B

,

Zero

Cpn

,

6/16/25

...

11,888

9,103

7329210.SQ.FTS.B

,

Zero

Cpn

,

6/17/25

...

4,118

2,635

7329282.SQ.FTS.B

,

Zero

Cpn

,

6/17/25

...

994

954

7329306.SQ.FTS.B

,

Zero

Cpn

,

6/17/25

...

10,413

10,044

7329555.SQ.FTS.B

,

Zero

Cpn

,

6/17/25

...

18,416

17,942

7330422.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

1,904

1,052

7330449.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

2,696

2,661

7330937.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

6,383

6,067

7331383.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

4,919

4,619

7331562.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

33,070

31,426

7332515.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

4,610

4,250

7332668.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

3,138

3,068

7332947.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

12,388

11,958

7333297.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

14,881

14,444

7333816.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

7,718

7,421

7334014.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

1,143

982

7334072.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

5,418

5,286

7334308.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

4,079

3,919

7334419.SQ.FTS.B

,

Zero

Cpn

,

6/18/25

...

2,146

2,112

7334457.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

11,146

8,985

7334642.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

5,307

5,135

7334863.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

1,951

1,823

7334894.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

6,384

6,127

7335081.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

5,292

4,867

7335235.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

7,174

6,782

7335488.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

11,586

11,042

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7335932.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

$

10,367

$

10,067

7336119.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

4,416

4,167

7336185.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

1,173

903

7336202.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

3,756

3,646

7336277.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

18,749

15,309

7336528.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

110

108

7336535.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

2,199

2,117

7336581.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

54,651

43,402

7337052.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

623

603

7337065.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

6,957

6,729

7337190.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

6,085

5,896

7337363.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

3,759

3,427

7337431.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

4,606

4,445

7337601.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

3,768

3,676

7337995.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

1,357

732

7338036.SQ.FTS.B

,

Zero

Cpn

,

6/19/25

...

4,091

3,958

7338381.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

3,607

3,521

7338503.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

22,546

20,690

7338883.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

10,230

9,375

7339042.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

3,417

3,282

7339137.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

5,205

4,679

7339223.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

3,789

3,601

7339287.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

2,573

2,490

7339443.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

9,609

9,193

7339620.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

12,465

12,212

7339866.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

131

130

7339897.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

6,902

6,201

7339982.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

15,657

15,199

7340248.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

45,504

43,941

7340770.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

3,903

3,734

7340806.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

8,968

6,381

7340921.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

979

944

7341076.SQ.FTS.B

,

Zero

Cpn

,

6/20/25

...

513

485

7344575.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

4,599

4,263

7344708.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

708

689

7344752.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

1,525

1,494

7344795.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

307

295

7344960.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

27,772

26,533

7345521.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

3,992

3,577

7345565.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

10,259

9,857

7345737.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

4,174

3,529

7345805.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

8,187

7,867

7346393.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

62,612

35,756

7347471.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

1,502

1,471

7347498.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

15,933

14,839

7347743.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

2,788

2,665

7347948.SQ.FTS.B

,

Zero

Cpn

,

6/21/25

...

490

451

7348173.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

4,194

4,081

7348282.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

3,836

3,659

7348393.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

2,991

2,534

7348471.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

101

100

7348505.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

747

694

7348520.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

1,014

963

7348542.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

3,940

3,907

7348744.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

2,277

2,185

7348796.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

8,054

7,645

7348949.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

21,744

20,413

7349430.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

27,392

25,836

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7350262.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

$

2,231

$

2,152

7350353.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

15,481

15,207

7350929.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

4,867

4,697

7351089.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

11,959

11,754

7351482.SQ.FTS.B

,

Zero

Cpn

,

6/22/25

...

5,362

5,159

7351559.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

14,577

14,033

7351808.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

3,358

3,199

7351844.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

2,173

2,138

7351896.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

2,140

2,060

7351914.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

7,940

4,918

7351981.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

17,215

15,700

7352166.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

20,325

19,367

7352402.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

3,303

3,089

7352437.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

870

839

7352449.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

4,305

3,539

7352490.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

2,407

1,234

7352520.SQ.FTS.B

,

Zero

Cpn

,

6/23/25

...

10,897

10,503

7352656.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

7,642

7,430

7352769.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

4,960

4,818

7352850.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

12,934

8,609

7352997.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

7,651

6,134

7353063.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

13,180

11,697

7353193.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

1,497

1,139

7353212.SQ.FTS.B

,

Zero

Cpn

,

6/24/25

...

20,238

19,263

7353475.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

713

688

7353502.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

5,026

3,649

7353548.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

955

913

7353560.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

13,436

12,314

7353648.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

11,792

11,300

7353721.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

1,028

996

7353746.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

1,584

1,543

7353901.SQ.FTS.B

,

Zero

Cpn

,

6/25/25

...

4,761

2,736

7358628.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

14,835

10,848

7358898.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

1,890

1,824

7358948.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

873

852

7358976.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

1,970

1,931

7359006.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

3,682

3,377

7359145.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

5,518

5,344

7359262.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

9,927

9,722

7359642.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

20

20

7359660.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

3,133

2,976

7359726.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

719

307

7359736.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

928

904

7359785.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

6,298

6,092

7359929.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

897

867

7359939.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

4,839

4,662

7360007.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

40,559

37,622

7360294.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

5,782

5,644

7360326.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

3,139

3,089

7360511.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

417

411

7360523.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

2,354

2,305

7360585.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

2,690

2,532

7360618.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

4,222

4,122

7360681.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

13,712

13,041

7360839.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

5,045

4,931

7360937.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

7,320

6,385

7361055.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

699

681

7361104.SQ.FTS.B

,

Zero

Cpn

,

6/27/25

...

1,400

1,357

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7363977.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

$

6,201

$

5,976

7364111.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

633

610

7364129.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

7,585

5,214

7364293.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

2,719

2,674

7364420.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

970

915

7364449.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

5,232

5,066

7364817.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

7,227

6,835

7365009.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

12,932

12,618

7365309.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

8,099

7,721

7365538.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

69,670

66,313

7366833.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

4,934

4,817

7366982.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

10,774

10,059

7367226.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

4,652

4,560

7367371.SQ.FTS.B

,

Zero

Cpn

,

6/28/25

...

13,732

13,244

7367413.SQ.FTS.B

,

Zero

Cpn

,

6/29/25

...

32,469

31,126

7368831.SQ.FTS.B

,

Zero

Cpn

,

6/29/25

...

12,245

12,045

7369711.SQ.FTS.B

,

Zero

Cpn

,

6/29/25

...

1,920

1,866

7369800.SQ.FTS.B

,

Zero

Cpn

,

6/29/25

...

20,993

20,207

7370367.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

2,206

1,694

7370400.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

4,257

3,940

7370462.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

599

579

7370470.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

4,043

3,925

7370525.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

1,145

1,111

7370544.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

3,528

3,359

7370602.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

1,889

1,827

7370647.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

1,691

1,669

7370708.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

11,532

10,820

7370851.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

898

861

7370870.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

1,913

1,884

7370924.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

2,437

2,346

7370989.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

987

955

7371011.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

21,569

20,772

7371485.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

5,818

5,690

7371597.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

3,879

3,704

7371670.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

903

819

7371685.SQ.FTS.B

,

Zero

Cpn

,

6/30/25

...

3,619

3,378

7371780.SQ.FTS.B

,

Zero

Cpn

,

7/01/25

...

5,770

5,708

7372008.SQ.FTS.B

,

Zero

Cpn

,

7/01/25

...

17,818

17,196

7372379.SQ.FTS.B

,

Zero

Cpn

,

7/01/25

...

2,241

2,207

7372462.SQ.FTS.B

,

Zero

Cpn

,

7/01/25

...

357

347

7372474.SQ.FTS.B

,

Zero

Cpn

,

7/01/25

...

8,709

8,382

7372865.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

2,839

2,753

7372921.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

2,387

2,266

7373064.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

9,625

9,284

7373550.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

10,405

9,863

7373931.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

2,999

2,913

7374020.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

10,610

10,390

7374495.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

2,999

2,896

7374555.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

870

862

7374784.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

3,935

3,803

7374871.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

10,583

9,685

7375076.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

6,623

4,824

7375135.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

31,245

30,068

7375825.SQ.FTS.B

,

Zero

Cpn

,

7/02/25

...

15,608

14,862

7375989.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

3,649

3,545

7376071.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

60,060

56,073

7377407.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

4,683

4,530

7377517.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

13,033

12,653

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7377722.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

$

4,919

$

4,733

7377777.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

2,185

2,150

7377813.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

5,845

4,248

7377862.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

17,448

16,813

7378815.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

2,320

2,275

7378895.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

661

647

7378926.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

497

492

7378990.SQ.FTS.B

,

Zero

Cpn

,

7/03/25

...

13,892

13,544

7380831.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

3,007

2,929

7380963.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

12,853

12,424

7381271.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

2,119

1,919

7381311.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

1,283

1,255

7381360.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

5,283

4,922

7381648.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

4,602

4,488

7381820.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

14,684

13,871

7382189.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

3,060

2,914

7382281.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

2,288

2,212

7382370.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

1,754

1,734

7382495.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

3,375

3,286

7382710.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

24,612

23,717

7383268.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

4,347

4,194

7383406.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

4,669

4,453

7383572.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

1,166

1,100

7383605.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

7,814

6,123

7383805.SQ.FTS.B

,

Zero

Cpn

,

7/04/25

...

10,112

9,754

7384004.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

7,682

7,552

7384304.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

13,256

12,755

7384693.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

14,901

14,366

7385233.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

6,443

6,201

7385373.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

4,338

4,208

7385492.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

7,710

7,532

7385748.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

15,074

14,631

7386022.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

25,500

23,535

7386499.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

1,637

1,609

7386559.SQ.FTS.B

,

Zero

Cpn

,

7/05/25

...

718

693

7386935.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

5,593

5,350

7387029.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

30,700

29,590

7387509.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

726

713

7387529.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

1,325

1,285

7387561.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

1,190

649

7387580.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

3,802

3,458

7387649.SQ.FTS.B

,

Zero

Cpn

,

7/06/25

...

3,372

3,222

7387711.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

2,966

2,728

7387772.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

4,090

3,934

7388095.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

2,069

1,933

7388134.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

2,775

2,671

7388169.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

7,988

7,303

7388283.SQ.FTS.B

,

Zero

Cpn

,

7/07/25

...

6,605

6,358

7388607.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

1,030

811

7388638.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

740

733

7388706.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

6,024

5,832

7389022.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

2,884

2,835

7389300.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

2,350

2,263

7389384.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

2,390

1,801

7389427.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

19,899

19,002

7389892.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

6,021

5,752

7389966.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

2,137

1,136

7390095.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

46,662

44,580

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7390869.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

$

799

$

760

7390910.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

16,216

13,593

7391147.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

972

932

7391169.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

3,675

3,328

7391230.SQ.FTS.B

,

Zero

Cpn

,

7/08/25

...

14,466

14,152

7391591.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

2,887

2,694

7391674.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

38,161

36,433

7392524.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

3,050

2,620

7392590.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

546

537

7392643.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

24,318

23,604

7393197.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

1,384

1,162

7393274.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

35,277

34,042

7393901.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

18,284

17,764

7394356.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

1,753

1,703

7394416.SQ.FTS.B

,

Zero

Cpn

,

7/09/25

...

40,501

38,900

7394534.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

14,287

13,691

7394898.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

48,030

46,244

7396014.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

2,813

2,775

7396053.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

311

308

7396077.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

8,559

8,289

7396503.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

8,556

8,229

7396685.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

2,501

2,408

7397020.SQ.FTS.B

,

Zero

Cpn

,

7/10/25

...

18,766

17,859

7400533.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

1,850

1,775

7400596.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

2,875

2,787

7400645.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

9,321

9,125

7400926.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

3,884

3,791

7401076.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

4,251

3,986

7401342.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

25,907

20,680

7401939.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

671

618

7401994.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

1,377

1,336

7402047.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

5,039

4,710

7402121.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

13,520

12,912

7402633.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

1,478

1,437

7402674.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

760

576

7402695.SQ.FTS.B

,

Zero

Cpn

,

7/11/25

...

24,416

23,264

7403592.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

40,425

38,934

7405039.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

24,531

20,544

7405415.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

2,509

2,384

7405479.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

13,488

13,159

7405769.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

5,778

5,153

7405917.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

3,365

3,192

7405972.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

802

764

7406031.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

641

622

7406178.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

6,249

6,073

7406336.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

4,059

3,945

7406454.SQ.FTS.B

,

Zero

Cpn

,

7/12/25

...

1,749

1,715

7406483.SQ.FTS.B

,

Zero

Cpn

,

7/13/25

...

21,116

20,366

7406743.SQ.FTS.B

,

Zero

Cpn

,

7/13/25

...

13,049

12,453

7406962.SQ.FTS.B

,

Zero

Cpn

,

7/13/25

...

798

766

7406973.SQ.FTS.B

,

Zero

Cpn

,

7/13/25

...

6,184

6,044

7407169.SQ.FTS.B

,

Zero

Cpn

,

7/14/25

...

4,826

3,828

7407233.SQ.FTS.B

,

Zero

Cpn

,

7/14/25

...

9,790

9,503

7407465.SQ.FTS.B

,

Zero

Cpn

,

7/14/25

...

4,665

4,554

7407550.SQ.FTS.B

,

Zero

Cpn

,

7/14/25

...

5,692

5,493

7407666.SQ.FTS.B

,

Zero

Cpn

,

7/14/25

...

10,356

10,091

7407843.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

1,766

1,694

7407876.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

1,606

1,566

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

57

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7407928.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

$

2,730

$

2,606

7407981.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

42

41

7408278.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

2,226

2,150

7408312.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

8,826

8,379

7408443.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

6,900

6,498

7408510.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

21,376

20,662

7408844.SQ.FTS.B

,

Zero

Cpn

,

7/15/25

...

7,122

7,005

7409138.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

956

928

7409173.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

4,882

4,697

7409375.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

7,190

6,805

7409703.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

3,155

3,031

7409774.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

28,749

27,692

7410279.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

32,279

31,437

7410754.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

20,151

19,466

7411132.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

2,842

2,229

7411170.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

2,157

2,093

7411208.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

10,484

10,054

7411441.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

5,182

4,785

7411525.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

1,887

1,771

7411557.SQ.FTS.B

,

Zero

Cpn

,

7/16/25

...

5,583

5,463

7411657.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

787

776

7411762.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

4,424

4,204

7411864.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

3,897

3,687

7411951.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

3,693

3,509

7412123.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

2,072

2,056

7412344.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

532

409

7412366.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

25,098

22,758

7412972.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

39,177

37,526

7413602.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

23,078

22,519

7414145.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

9,541

9,159

7414309.SQ.FTS.B

,

Zero

Cpn

,

7/17/25

...

2,101

2,060

7416105.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

4,826

4,326

7416231.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

2,732

2,647

7416271.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

7,118

6,828

7416414.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

14,320

13,821

7417221.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

11,221

10,890

7417582.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

4,257

4,064

7417646.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

2,762

2,654

7417691.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

2,046

1,986

7417717.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

899

875

7417740.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

6,430

6,218

7417824.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

3,969

3,850

7417894.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

1,298

1,239

7417924.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

5,792

5,623

7418008.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

9,889

9,681

7418257.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

5,725

4,535

7418335.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

3,779

3,130

7418385.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

1,522

1,165

7418523.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

2,943

2,791

7418599.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

9,995

9,740

7418854.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

738

723

7418879.SQ.FTS.B

,

Zero

Cpn

,

7/18/25

...

10,298

10,197

7419611.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

3,318

3,190

7419723.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

7,639

7,357

7420137.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

2,367

2,238

7420356.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

2,607

2,418

7420456.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

14,809

14,199

7420767.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

60,918

54,544

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7422020.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

$

11,697

$

11,272

7422266.SQ.FTS.B

,

Zero

Cpn

,

7/19/25

...

41,283

39,076

7422446.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

1,376

1,073

7422475.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

4,153

4,062

7422537.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

1,725

1,655

7422558.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

11,596

11,067

7422721.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

7,136

6,892

7422868.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

3,335

3,251

7422940.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

3,181

3,075

7423008.SQ.FTS.B

,

Zero

Cpn

,

7/20/25

...

12,332

11,675

7423211.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

7,919

6,379

7423358.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

1,628

1,598

7423387.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

1,914

1,764

7423408.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

8,204

6,545

7423511.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

1,950

1,882

7423616.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

6,906

6,712

7423763.SQ.FTS.B

,

Zero

Cpn

,

7/21/25

...

7,327

7,015

7424195.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

4,359

4,150

7424605.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

4,626

4,438

7424919.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

6,079

5,788

7425257.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

3,096

2,418

7425370.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

569

552

7425403.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

354

349

7425410.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

448

437

7425417.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

7,070

6,607

7425547.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

313

311

7425587.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

28,704

27,211

7426171.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

2,030

1,944

7426220.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

2,208

2,146

7426279.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

2,806

2,715

7426378.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

3,342

3,301

7426532.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

6,507

6,259

7426644.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

3,188

2,685

7426731.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

179

175

7426750.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

1,835

1,675

7426798.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

7,054

6,840

7427031.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

2,305

2,191

7427054.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

1,184

1,176

7427156.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

1,858

1,835

7427280.SQ.FTS.B

,

Zero

Cpn

,

7/22/25

...

2,988

2,925

7427323.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

4,161

4,005

7427436.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

22,791

22,328

7428341.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

6,274

6,042

7428683.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

7,524

7,274

7428814.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

6,194

5,679

7428991.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

4,267

4,084

7429080.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

3,531

3,498

7429263.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

1,776

1,682

7429294.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

9,108

8,661

7429488.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

99

98

7429624.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

28,799

27,318

7430033.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

4,505

4,281

7430208.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

4,804

4,624

7430313.SQ.FTS.B

,

Zero

Cpn

,

7/23/25

...

8,319

8,095

7430504.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

68,115

53,947

7431885.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

33,215

31,444

7432399.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

1,405

1,309

7432425.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

11,247

11,045

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7432576.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

$

2,085

$

1,986

7432611.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

1,295

1,259

7432633.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

11,708

11,369

7432878.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

1,622

1,585

7432936.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

2,951

2,892

7433029.SQ.FTS.B

,

Zero

Cpn

,

7/24/25

...

21,246

20,145

7435515.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

47,541

45,731

7437318.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

277

272

7437332.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

1,088

1,043

7437401.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

4,645

4,548

7437622.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

18,935

18,112

7438053.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

10,156

8,361

7438490.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

10,412

10,059

7438816.SQ.FTS.B

,

Zero

Cpn

,

7/25/25

...

10,951

9,325

7438896.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

2,420

2,260

7439007.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

553

548

7439022.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

29,247

22,750

7439796.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

10,570

10,108

7440177.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

20,867

20,222

7440704.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

21,555

21,279

7441417.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

3,196

2,472

7441508.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

2,182

2,119

7441625.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

28,627

25,077

7442052.SQ.FTS.B

,

Zero

Cpn

,

7/26/25

...

17,780

17,357

7442091.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

2,572

2,495

7442151.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

1,993

1,919

7442178.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

11,253

11,057

7442409.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

2,363

2,267

7442461.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

3,781

3,619

7442526.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

4,017

3,805

7442597.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

4,323

4,253

7442700.SQ.FTS.B

,

Zero

Cpn

,

7/27/25

...

13,199

12,564

7442906.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

11,846

11,097

7443079.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

2,197

1,534

7443113.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

1,184

1,161

7443195.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

19,527

16,742

7443443.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

7,035

6,606

7443560.SQ.FTS.B

,

Zero

Cpn

,

7/28/25

...

9,695

9,353

7444301.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

1,301

1,280

7444391.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

20,893

20,068

7445512.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

5,540

5,275

7445619.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

6,255

6,035

7445822.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

8,131

7,732

7445935.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

4,988

4,800

7446017.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

11,866

11,337

7446298.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

26,771

25,599

7446590.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

12,360

11,907

7446852.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

10,674

10,105

7447048.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

43,825

18,353

7447555.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

1,200

1,179

7447604.SQ.FTS.B

,

Zero

Cpn

,

7/29/25

...

11,924

11,668

7447726.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

839

809

7447752.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

5,276

5,027

7447855.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

14,017

13,314

7448225.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

4,736

4,553

7448426.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

14,604

14,047

7449027.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

1,945

1,875

7449061.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

11,161

10,729

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7449319.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

$

7,093

$

6,863

7449511.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

3,770

3,631

7449554.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

5,306

5,061

7449612.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

13,530

13,004

7449746.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

13,527

12,983

7450028.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

6,377

6,133

7450140.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

16,977

16,338

7450390.SQ.FTS.B

,

Zero

Cpn

,

7/30/25

...

50,405

43,971

7451169.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

46,361

44,805

7452711.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

6,072

5,819

7452755.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

4,847

4,043

7452824.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

6,740

6,474

7452908.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

7,748

7,468

7453017.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

7,005

6,751

7453293.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

1,303

1,265

7453341.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

3,780

3,683

7453589.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

4,634

4,459

7453760.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

2,553

2,432

7453872.SQ.FTS.B

,

Zero

Cpn

,

7/31/25

...

79,470

72,662

7456228.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

9,951

9,590

7456637.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

2,757

2,678

7456811.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

2,808

2,708

7457087.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

4,262

4,111

7457423.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

4,546

4,369

7457614.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

19,580

17,907

7458111.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

10,216

9,548

7458295.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

7,252

6,962

7458520.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

732

677

7458740.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

11,611

11,220

7459076.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

1,320

1,102

7459098.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

13,140

12,654

7459524.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

4,559

4,395

7459816.SQ.FTS.B

,

Zero

Cpn

,

8/01/25

...

8,780

7,072

7459894.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

5,463

5,115

7460140.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

415

404

7460229.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,327

1,282

7460320.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,402

1,352

7460418.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

5,237

5,044

7460729.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

521

497

7460767.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

883

842

7460809.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,598

1,551

7461009.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

7,433

7,141

7461225.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

7,329

7,039

7461359.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

10,885

7,757

7461478.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,335

902

7461498.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,737

1,616

7461517.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,087

878

7461524.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

2,973

2,598

7461552.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

9,006

8,723

7461758.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,756

1,697

7461791.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

2,268

2,185

7461833.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

1,771

1,718

7461933.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

8,122

7,801

7462079.SQ.FTS.B

,

Zero

Cpn

,

8/02/25

...

46,501

44,306

7462734.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

949

908

7462768.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

10,800

9,619

7462898.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

3,519

3,351

7462934.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

7,646

7,357

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7463056.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

$

711

$

690

7463074.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

22,199

21,160

7463493.SQ.FTS.B

,

Zero

Cpn

,

8/03/25

...

8,586

8,153

7463636.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

1,080

955

7463656.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

1,477

1,353

7463682.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

10,088

9,616

7463882.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

520

498

7463900.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

2,872

2,408

7463948.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

13,410

12,681

7464150.SQ.FTS.B

,

Zero

Cpn

,

8/04/25

...

25,443

24,439

7464907.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

2,705

2,589

7464949.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

39,654

37,102

7466228.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

1,241

1,195

7466260.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

36,396

34,072

7466947.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

45,919

43,955

7467895.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

16,096

15,390

7468254.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

5,338

5,123

7468408.SQ.FTS.B

,

Zero

Cpn

,

8/05/25

...

9,421

9,043

7468484.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

27,792

26,005

7469125.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

7,641

7,317

7469531.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

401

385

7469578.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

7,125

6,870

7469866.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

4,474

4,199

7469997.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

1,019

983

7470030.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

3,513

3,383

7470184.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

3,330

3,237

7470470.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

28,182

27,232

7471310.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

4,820

4,608

7471403.SQ.FTS.B

,

Zero

Cpn

,

8/06/25

...

7,237

6,945

7471561.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

1,256

1,208

7471648.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

404

385

7471663.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

2,621

2,404

7471745.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

23,664

22,718

7472446.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

3,920

3,752

7472573.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

2,504

2,406

7472656.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

24,905

23,928

7473122.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

8,384

7,983

7473257.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

8,659

8,282

7473339.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

2,205

2,100

7473372.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

47,612

45,533

7473943.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

6,832

6,510

7474010.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

8,875

8,552

7474126.SQ.FTS.B

,

Zero

Cpn

,

8/07/25

...

38,462

36,953

7476687.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

14,359

13,435

7476873.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

1,794

1,738

7476915.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

5,245

5,104

7477148.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

1,250

1,200

7477182.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

5,919

4,830

7477370.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

1,096

1,051

7477397.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

628

609

7477476.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

621

608

7477549.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

6,145

5,927

7477749.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

1,198

1,140

7477779.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

2,839

2,754

7478061.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

5,913

5,695

7478189.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

3,697

3,560

7478257.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

35,746

34,046

7478938.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

55,533

50,949

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7479654.SQ.FTS.B

,

Zero

Cpn

,

8/08/25

...

$

24,672

$

23,659

7480224.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

1,708

1,558

7480253.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

2,060

1,928

7480323.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

506

491

7480472.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

354

345

7480526.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

14,801

14,253

7481180.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

4,730

4,553

7481366.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

569

466

7481496.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

292

284

7481530.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

2,751

2,648

7481641.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

2,667

2,505

7481718.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

34,507

33,139

7482265.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

6,669

6,404

7482438.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

6,928

5,840

7482534.SQ.FTS.B

,

Zero

Cpn

,

8/09/25

...

27,241

26,050

7483180.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

2,184

2,118

7483237.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

1,028

989

7483269.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

547

528

7483276.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

2,486

2,278

7483319.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

1,492

1,444

7483349.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

3,126

3,016

7483407.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

11,824

11,295

7483577.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

925

870

7483589.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

3,373

3,243

7483642.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

928

897

7483654.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

4,598

4,305

7483714.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

1,106

1,045

7483732.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

5,930

5,664

7483805.SQ.FTS.B

,

Zero

Cpn

,

8/10/25

...

8,225

7,887

7483959.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

3,791

3,204

7484021.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

4,781

4,463

7484088.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

668

644

7484095.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

4,770

4,606

7484183.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

9,329

8,837

7484313.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

1,067

941

7484325.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

4,573

4,377

7484399.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

801

774

7484428.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

12,505

11,832

7484593.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

2,838

2,727

7484629.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

8,969

8,641

7484772.SQ.FTS.B

,

Zero

Cpn

,

8/11/25

...

3,484

3,342

7485046.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

3,944

3,804

7485181.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

2,496

2,331

7485300.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

4,780

4,611

7485578.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

14,608

14,021

7486176.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

3,873

3,659

7486266.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

8,869

8,512

7486505.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

679

652

7486526.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

81,535

78,203

7487628.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

10,063

9,694

7487818.SQ.FTS.B

,

Zero

Cpn

,

8/12/25

...

41,340

39,740

7488366.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

2,604

2,480

7488451.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,280

1,232

7488512.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,934

1,869

7488557.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

2,208

2,115

7488630.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,674

1,610

7488673.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,266

1,225

7488800.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

2,213

2,123

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7488878.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

$

1,351

$

1,307

7489058.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,391

1,335

7489102.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

13,452

12,868

7489736.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

3,568

3,424

7489856.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,336

1,292

7489904.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,784

1,721

7489964.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

888

855

7489988.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,668

1,603

7490046.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

2,065

1,994

7490121.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

4,248

4,087

7490203.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

1,534

1,485

7490217.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

58,459

56,177

7491313.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

19,501

18,626

7491690.SQ.FTS.B

,

Zero

Cpn

,

8/13/25

...

45,622

43,755

7492035.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

969

643

7492075.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

332

321

7492106.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

1,366

1,301

7492175.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

1,783

1,712

7492228.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

848

813

7492252.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

18,473

17,724

7492792.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

2,089

2,017

7492868.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

32,528

31,182

7493805.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

362

351

7493832.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

46,036

44,149

7495008.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

11,145

9,612

7495374.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

5,478

5,239

7495473.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

854

825

7495547.SQ.FTS.B

,

Zero

Cpn

,

8/14/25

...

22,888

22,055

7500124.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

4,104

3,922

7500219.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

4,598

4,298

7500281.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

14,515

13,949

7500628.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

4,257

4,071

7500763.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

2,725

2,604

7500824.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

30,662

24,219

7501613.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

958

746

7501648.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,958

1,875

7501724.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

908

875

7501761.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

3,012

2,913

7501906.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

11,312

10,888

7502162.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,505

1,444

7502190.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

5,923

5,547

7502263.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,778

1,662

7502317.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

9,947

9,529

7502450.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

5,511

5,280

7502561.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

502

489

7502635.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,284

1,236

7502667.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,625

1,558

7502710.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

4,385

4,119

7502769.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

1,642

1,396

7502789.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

2,556

2,207

7502801.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

19,374

18,573

7503088.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

15,404

14,728

7503327.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

8,263

7,920

7503516.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

6,087

5,383

7503625.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

10,436

10,010

7503855.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

386

374

7503873.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

376

362

7503931.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

3,668

3,525

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7504039.SQ.FTS.B

,

Zero

Cpn

,

8/15/25

...

$

15,685

$

15,062

7504526.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

3,432

3,228

7504583.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

1,307

1,260

7504617.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

27,855

26,642

7505386.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

16,869

15,864

7506060.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

7,685

7,345

7506281.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

8,528

8,180

7506523.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

1,300

1,241

7506554.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

830

799

7506594.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

35,893

33,860

7507129.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

3,552

3,420

7507205.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

3,853

3,696

7507287.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

564

543

7507304.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

1,147

1,081

7507322.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

14,157

13,508

7507516.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

2,231

2,153

7507547.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

642

618

7507572.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

6,316

6,060

7507712.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

1,981

1,901

7507743.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

54,462

52,231

7508686.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

5,115

4,905

7508779.SQ.FTS.B

,

Zero

Cpn

,

8/16/25

...

7,336

7,058

7508856.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

4,195

4,023

7508929.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,637

1,556

7508964.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

4,902

4,756

7509099.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,594

1,498

7509113.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,518

1,419

7509159.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,754

1,669

7509197.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

5,374

5,159

7509324.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

4,645

4,415

7509412.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

5,761

5,117

7509474.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

5,104

4,856

7509541.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

9,263

8,005

7509663.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,722

1,671

7509714.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

19,720

18,892

7510016.SQ.FTS.B

,

Zero

Cpn

,

8/17/25

...

1,064

1,025

7510035.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

11,830

11,077

7510213.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

8,093

7,737

7510311.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

1,090

1,004

7510326.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

6,982

6,741

7510466.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

3,735

3,579

7510509.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

1,484

1,422

7510534.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

3,257

3,125

7510582.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

477

463

7510598.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

4,091

3,937

7510654.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

9,579

9,275

7510865.SQ.FTS.B

,

Zero

Cpn

,

8/18/25

...

25,414

24,350

7511241.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

3,328

3,205

7511303.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

10,110

9,311

7511467.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

19,002

18,162

7511680.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

5,986

5,637

7511743.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

618

595

7511756.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

2,277

2,193

7511795.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

2,674

2,544

7511818.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

2,311

2,207

7511854.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

2,289

1,983

7511878.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

43,420

41,680

7512365.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

11,746

10,557

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7512481.SQ.FTS.B

,

Zero

Cpn

,

8/19/25

...

$

21,756

$

20,586

7512881.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

9,595

9,191

7512993.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

15,323

14,648

7513399.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

6,740

6,317

7513631.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

3,702

3,481

7513718.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

27,448

26,435

7514196.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

7,095

6,302

7514308.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

4,221

4,055

7514385.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

9,085

8,724

7514520.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

967

929

7514547.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

6,861

6,607

7514652.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

8,549

8,265

7514835.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

1,536

1,460

7514844.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

1,809

1,718

7514860.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

722

520

7514863.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

10,600

9,932

7514967.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

3,399

3,250

7515017.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

17,412

16,676

7515221.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

9,495

8,967

7515335.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

33,556

32,248

7515846.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

22,672

21,662

7516387.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

1,808

1,733

7516409.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

1,612

1,537

7516419.SQ.FTS.B

,

Zero

Cpn

,

8/20/25

...

2,664

2,573

7516507.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

9,162

8,741

7516671.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

1,845

1,770

7516681.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

5,366

5,151

7516731.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

3,655

3,530

7516799.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

3,811

3,652

7516939.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

22,140

21,380

7517810.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

2,120

1,884

7517846.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

9,252

8,853

7518078.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

12,885

12,355

7518283.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

5,910

5,669

7518362.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

2,231

2,151

7518395.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

4,960

4,464

7518436.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

5,052

4,331

7518495.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

2,943

2,790

7518534.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

2,707

2,590

7518584.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

63,106

60,462

7519533.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

1,788

1,706

7519559.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

4,232

3,957

7519602.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

3,103

2,978

7519664.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

11,721

11,253

7519868.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

4,517

4,315

7519968.SQ.FTS.B

,

Zero

Cpn

,

8/21/25

...

21,426

19,593

7521804.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

12,696

12,163

7522148.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

1,818

1,743

7522180.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

5,008

4,757

7522299.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

11,975

11,501

7522961.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

15,234

14,618

7523682.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

3,131

3,004

7523805.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

5,503

5,316

7524068.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

29,142

28,039

7524632.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

20,031

19,245

7525019.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

36,597

34,679

7525637.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

3,357

2,440

7525697.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

12,509

12,020

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7526051.SQ.FTS.B

,

Zero

Cpn

,

8/22/25

...

$

887

$

833

7526085.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

2,026

1,946

7526215.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

11,750

11,290

7526613.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

3,225

3,096

7526839.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

3,695

3,507

7526916.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,768

4,512

7527110.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

1,105

1,060

7527171.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

1,583

1,320

7527267.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

780

735

7527301.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

15,722

14,761

7527775.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

3,445

3,303

7527856.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

7,962

7,608

7527982.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

6,632

6,338

7528456.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,861

4,626

7528519.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

8,254

7,900

7528640.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

1,539

1,484

7528668.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

22,580

21,583

7529157.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,321

4,089

7529211.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,642

4,482

7529394.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,092

3,968

7529577.SQ.FTS.B

,

Zero

Cpn

,

8/23/25

...

4,225

3,961

7529702.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

1,453

1,401

7529773.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

1,319

1,271

7529794.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

3,486

3,334

7529844.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

12,104

11,693

7530021.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

1,589

1,487

7530051.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

3,745

3,624

7530194.SQ.FTS.B

,

Zero

Cpn

,

8/24/25

...

18,216

17,464

7530426.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

4,665

4,442

7530487.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

10,995

10,430

7530640.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

5,388

5,197

7530736.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

5,330

5,124

7530817.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

1,588

1,527

7530833.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

1,215

1,016

7530845.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

3,672

3,536

7530896.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

2,334

2,214

7530927.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

1,782

1,683

7530954.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

9,038

8,732

7531128.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

3,326

3,179

7531165.SQ.FTS.B

,

Zero

Cpn

,

8/25/25

...

6,439

6,187

7531562.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

1,740

1,674

7531607.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

10,926

10,469

7531924.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

222

215

7531999.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

8,013

7,400

7532234.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

11,386

10,857

7532836.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

8,768

8,403

7533068.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

5,223

4,943

7533196.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

3,712

3,547

7533303.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

1,273

1,031

7533315.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

9,328

9,004

7533564.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

2,166

2,047

7533597.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

13,103

12,490

7533783.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

6,063

5,832

7533921.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

21,164

18,499

7534204.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

6,284

6,041

7534275.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

13,555

12,718

7534451.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

50,342

47,624

7535286.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

1,389

1,331

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7535311.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

$

3,614

$

3,425

7535396.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

1,928

1,802

7535438.SQ.FTS.B

,

Zero

Cpn

,

8/26/25

...

22,196

21,374

7535779.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

4,607

4,421

7535909.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

11,944

10,450

7536137.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

881

840

7536158.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

1,575

1,421

7536191.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

883

843

7536219.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,305

2,207

7536262.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

12,079

11,544

7536577.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

19,397

18,494

7537469.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,405

2,268

7537534.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

1,098

1,049

7537580.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

28,504

27,156

7538114.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,395

2,299

7538172.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

5,095

4,896

7538280.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,293

2,198

7538310.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

52,715

50,489

7539188.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

6,495

6,183

7539355.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,017

1,959

7539394.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

3,909

3,734

7539465.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

928

884

7539490.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

3,587

3,432

7539584.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

3,009

2,814

7539664.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

2,706

2,606

7539738.SQ.FTS.B

,

Zero

Cpn

,

8/27/25

...

25,426

22,246

7539849.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

6,688

6,408

7540113.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

3,453

2,985

7540193.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

31,893

30,565

7540992.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

855

821

7541133.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

5,135

4,920

7541258.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

6,796

6,067

7541351.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

1,889

1,794

7541385.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

7,699

7,309

7541531.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

18,958

18,245

7541849.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

9,067

8,647

7541957.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

771

741

7541976.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

7,028

6,701

7542074.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

49,470

46,379

7543164.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

3,951

3,528

7543284.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

2,478

2,371

7543362.SQ.FTS.B

,

Zero

Cpn

,

8/28/25

...

18,233

17,465

7546105.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

1,793

1,551

7546168.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

5,857

5,617

7546277.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

8,600

8,126

7546505.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

596

576

7546533.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

1,979

1,895

7546564.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

33,675

32,239

7547613.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

1,866

1,767

7547669.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

9,268

8,875

7548012.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

75,565

71,770

7549453.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

3,468

3,147

7549549.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

4,428

4,234

7549657.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

5,697

5,456

7549778.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

4,867

4,705

7549987.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

1,314

1,137

7550015.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

4,717

4,555

7550151.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

911

866

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7550177.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

$

2,323

$

2,231

7550201.SQ.FTS.B

,

Zero

Cpn

,

8/29/25

...

17,483

16,543

7550557.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

4,257

4,096

7550671.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

7,246

6,945

7550903.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

4,875

4,626

7551019.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

5,259

5,077

7551251.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

12,225

11,297

7551712.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

6,197

5,899

7551906.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

7,962

7,628

7552146.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

1,042

1,002

7552166.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

1,096

819

7552197.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

3,119

3,000

7552382.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

1,857

1,790

7552433.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

5,090

4,875

7552512.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

31,203

29,687

7552973.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

42,702

40,337

7553679.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

5,422

5,216

7553770.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

5,259

5,111

7553919.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

6,616

6,295

7554044.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

4,268

4,068

7554148.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

7,863

7,508

7554297.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

4,965

4,620

7554367.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

4,333

4,191

7554479.SQ.FTS.B

,

Zero

Cpn

,

9/01/25

...

122

118

7554507.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

6,331

6,060

7554615.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

5,840

5,583

7554697.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

713

689

7554717.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

2,651

2,505

7554960.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

9,689

9,204

7555148.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

631

597

7555163.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

3,064

2,932

7555250.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

1,272

1,211

7555284.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

430

412

7555298.SQ.FTS.B

,

Zero

Cpn

,

9/02/25

...

14,926

14,274

7555650.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

4,735

4,515

7555786.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

7,617

7,309

7555959.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

1,439

1,372

7555981.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

2,376

2,273

7556035.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

10,625

10,113

7556272.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

1,202

1,152

7556297.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

2,286

2,114

7556358.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

1,139

1,090

7556386.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

11,192

10,704

7556681.SQ.FTS.B

,

Zero

Cpn

,

9/03/25

...

23,873

22,816

7557196.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

1,097

1,025

7557219.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

5,712

4,835

7557715.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

8,897

8,519

7558126.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

5,167

4,496

7558287.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

30,784

28,480

7559051.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

26,199

25,097

7559566.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

2,098

2,007

7559634.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

7,520

7,196

7559825.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

7,054

6,756

7559961.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

745

724

7560015.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

4,499

4,284

7560129.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

10,521

10,124

7560334.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

7,113

6,826

7560634.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

4,623

4,353

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

63

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7560792.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

$

7,447

$

7,111

7560946.SQ.FTS.B

,

Zero

Cpn

,

9/04/25

...

402

392

7560995.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

15,228

14,537

7561322.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

5,471

5,222

7561461.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

3,691

3,557

7561625.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

5,821

5,569

7561757.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

11,189

10,773

7562114.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

2,720

2,565

7562185.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

14,175

13,495

7562656.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

34,372

32,389

7563273.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

1,155

1,083

7563329.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

5,677

5,348

7563421.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

2,258

2,194

7563464.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

3,197

3,090

7563511.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

2,308

2,216

7563524.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

10,338

9,780

7563685.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

1,087

1,052

7563704.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

20,807

19,905

7563961.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

840

814

7563968.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

11,006

10,560

7564132.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

15,292

14,286

7564378.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

14,523

13,895

7564607.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

20,353

19,560

7564952.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

724

707

7564992.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

600

579

7565002.SQ.FTS.B

,

Zero

Cpn

,

9/05/25

...

562

490

7565053.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

3,877

3,760

7565275.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

1,671

1,607

7565348.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

4,635

3,936

7565451.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

4,001

3,769

7565538.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

2,285

2,187

7565580.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

3,387

3,239

7565633.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

2,481

2,377

7565692.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

1,719

1,645

7565733.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

4,988

4,753

7565802.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

7,501

7,163

7565975.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

4,428

4,219

7566096.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

13,240

12,370

7566445.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

1,253

1,025

7566458.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

12,888

12,269

7566752.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

53,160

50,888

7567428.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

61,113

58,449

7568398.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

7,991

7,539

7568529.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

9,271

8,342

7568612.SQ.FTS.B

,

Zero

Cpn

,

9/06/25

...

7,039

6,763

7570947.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

2,403

2,157

7571002.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

1,890

1,782

7571045.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

3,532

3,301

7571117.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

2,416

2,314

7571198.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

21,479

18,767

7571502.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

907

830

7571507.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

5,001

4,565

7571558.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

791

761

7571567.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

12,746

12,184

7571666.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

5,301

5,079

7571785.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

6,428

6,109

7571980.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

10,276

9,640

7572328.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

6,858

6,563

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7572483.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

$

4,947

$

4,714

7572609.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

25,809

24,508

7573102.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

8,661

8,218

7573220.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

13,042

12,552

7573443.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

1,154

1,112

7573480.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

5,748

5,488

7573604.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

444

428

7573640.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

5,190

4,963

7573684.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

1,478

1,387

7573724.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

4,705

4,437

7573803.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

6,530

6,341

7573894.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

2,973

2,793

7573916.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

6,153

5,931

7573972.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

6,374

5,977

7574028.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

9,653

9,166

7574442.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

11,121

10,646

7574592.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

1,710

1,606

7574624.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

3,446

3,190

7574662.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

756

690

7574668.SQ.FTS.B

,

Zero

Cpn

,

9/07/25

...

5,988

5,723

7574768.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

9,400

8,989

7574863.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

5,388

5,152

7574932.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

8,602

8,070

7575058.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

3,104

2,847

7575095.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

40,008

37,988

7576257.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

7,892

7,493

7576434.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

3,549

3,417

7576536.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

11,834

11,435

7576835.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

6,893

6,570

7576912.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

46,486

44,490

7577451.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

11,073

10,054

7577627.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

7,845

7,469

7577716.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

994

951

7577744.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

18,523

16,818

7577980.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

13,937

13,179

7578140.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

6,329

6,074

7578276.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

695

663

7578286.SQ.FTS.B

,

Zero

Cpn

,

9/08/25

...

5,553

5,374

7578409.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

20,386

19,371

7578711.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

2,874

2,748

7578761.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

6,932

6,628

7578877.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

1,040

769

7578899.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

15,761

15,007

7579144.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

5,557

5,333

7579240.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

10,763

10,112

7579408.SQ.FTS.B

,

Zero

Cpn

,

9/09/25

...

8,274

7,766

7579524.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

6,386

6,082

7579649.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

2,032

1,909

7579700.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

4,826

4,602

7579776.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

2,427

2,330

7579842.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

5,792

5,542

7579942.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

7,626

6,857

7580066.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

1,448

1,359

7580089.SQ.FTS.B

,

Zero

Cpn

,

9/10/25

...

27,492

26,287

7580664.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

2,833

2,631

7580704.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

3,339

3,185

7580830.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

13,829

13,201

7581484.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

7,311

6,987

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7581718.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

$

1,255

$

1,200

7581762.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

4,232

4,043

7581869.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

2,242

2,123

7581921.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

6,542

6,286

7583214.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

11,522

11,035

7583633.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

9,234

8,810

7583759.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

4,346

4,158

7583841.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

7,341

7,029

7584059.SQ.FTS.B

,

Zero

Cpn

,

9/11/25

...

4,530

4,332

7584365.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

1,721

1,629

7584410.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

4,591

4,376

7584531.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

8,725

8,355

7584915.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

3,815

3,652

7585047.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

508

486

7585060.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

862

830

7585083.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

4,413

4,220

7585157.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

25,288

24,222

7585837.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

10,348

9,855

7586021.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

4,482

4,275

7586093.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

437

420

7586107.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

5,849

5,603

7586206.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

1,388

1,265

7586228.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

3,491

3,319

7586278.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

10,431

9,997

7586482.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

2,113

2,033

7586554.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

873

843

7586602.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

2,773

2,644

7586625.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

193

187

7586628.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

2,981

2,850

7586669.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

2,897

2,721

7586700.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

13,577

13,065

7586865.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

605

572

7586876.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

3,893

3,696

7586914.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

9,876

9,442

7587033.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

14,112

13,557

7587289.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

48,998

46,887

7587881.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

1,622

1,487

7587899.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

2,321

2,208

7587938.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

5,286

5,103

7588081.SQ.FTS.B

,

Zero

Cpn

,

9/12/25

...

7,181

6,868

7588140.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

5,028

4,598

7588197.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

1,978

1,903

7588218.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

3,536

3,282

7588356.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

6,632

6,337

7588448.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

10,064

8,925

7588665.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

11,521

11,028

7589050.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

3,285

3,142

7589125.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

15,202

14,391

7589411.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

9,226

8,804

7589505.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

57,546

55,078

7590210.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

2,292

2,178

7590230.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

4,797

4,368

7590284.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

2,355

2,246

7590298.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

7,104

6,805

7590339.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

6,197

5,845

7590365.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

2,399

2,323

7590419.SQ.FTS.B

,

Zero

Cpn

,

9/13/25

...

54,871

51,320

7593174.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

766

727

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7593298.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

$

1,754

$

1,668

7593394.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

6,806

6,487

7593442.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

3,767

3,609

7593527.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

16,844

16,210

7593939.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

12,958

12,445

7594426.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,004

961

7594477.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,538

1,353

7594511.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

10,177

9,732

7594701.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,375

1,311

7594732.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

10,006

9,512

7594949.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

2,210

2,118

7595019.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

9,653

9,129

7595222.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

5,155

4,944

7595284.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,620

1,556

7595314.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

15,053

14,370

7595485.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

5,264

4,991

7595525.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,397

1,342

7595532.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

2,316

1,746

7595549.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

29,896

25,725

7595997.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

652

618

7596003.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

6,770

6,437

7596084.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

10,232

9,486

7596204.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

1,135

1,097

7596235.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

28,830

27,407

7596687.SQ.FTS.B

,

Zero

Cpn

,

9/14/25

...

15,317

14,627

7597130.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

10,866

10,376

7597317.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

16,320

15,671

7597921.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

3,565

3,397

7598019.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

57,328

53,805

7598834.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

7,362

7,068

7598949.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

62,876

60,027

7599917.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

842

701

7599921.SQ.FTS.B

,

Zero

Cpn

,

9/15/25

...

2,087

2,011

7599946.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

8,437

8,083

7600072.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

4,612

4,320

7600104.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

4,367

4,174

7600162.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

14,635

13,969

7600338.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

12,425

11,835

7600486.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

645

571

7600492.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

1,355

1,282

7600506.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

17,688

16,900

7600735.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

15,661

14,928

7600919.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

2,250

2,144

7600945.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

1,053

835

7600965.SQ.FTS.B

,

Zero

Cpn

,

9/16/25

...

5,647

5,149

7601023.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

1,763

1,696

7601044.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

3,519

3,301

7601096.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

17,472

16,683

7601310.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

3,678

3,516

7601351.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

8,716

8,339

7601461.SQ.FTS.B

,

Zero

Cpn

,

9/17/25

...

37,344

34,990

7602249.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

7,572

7,227

7602494.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

2,325

1,972

7602834.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

1,685

1,616

7602907.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

1,932

1,846

7602968.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

3,681

3,531

7603085.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

5,500

4,856

7603156.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

6,157

5,869

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7603343.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

$

3,009

$

2,754

7603430.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

7,196

6,871

7603519.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

6,020

5,678

7603631.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

1,787

1,725

7603666.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

6,508

6,164

7603790.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

64,357

61,482

7604673.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

3,116

2,948

7604755.SQ.FTS.B

,

Zero

Cpn

,

9/18/25

...

2,491

2,375

7605863.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

30,495

29,180

7606602.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

3,616

3,474

7606775.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

740

706

7606805.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

880

843

7606824.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

27,102

25,731

7607301.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

7,941

7,034

7607440.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

16,330

15,605

7607656.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

5,420

5,205

7607715.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

10,393

9,831

7607807.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

12,541

11,966

7607956.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

3,943

3,734

7608006.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

4,469

4,270

7608067.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

23,149

22,147

7608442.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

11,823

11,261

7608568.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

6,214

5,944

7608655.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

998

954

7608678.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

1,597

1,494

7608715.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

32,955

31,364

7609040.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

2,931

2,811

7609063.SQ.FTS.B

,

Zero

Cpn

,

9/19/25

...

8,908

8,518

7609206.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

2,062

1,975

7609277.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

16,974

16,277

7609733.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

15,064

14,123

7610199.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

5,775

5,531

7610305.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

5,397

5,147

7610399.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

26,086

24,680

7610842.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

11,510

10,968

7610985.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

21,177

20,084

7611158.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

24,575

23,385

7611380.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

7,421

7,094

7611491.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

1,016

971

7611499.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

2,023

1,956

7611532.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

7,509

7,160

7611638.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

15,752

15,137

7611874.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

5,687

5,439

7611918.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

5,209

4,939

7611951.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

20,272

19,346

7612140.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

4,040

3,797

7612191.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

691

672

7612211.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

3,913

3,756

7612289.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

1,806

1,623

7612323.SQ.FTS.B

,

Zero

Cpn

,

9/20/25

...

4,749

4,558

7614486.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

7,216

6,898

7614756.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

19,040

18,289

7615456.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

1,257

1,163

7615488.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

1,946

1,857

7615540.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

9,396

8,969

7615760.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

1,934

1,850

7615805.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

12,186

11,761

7616238.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

49,929

47,740

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7616813.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

$

13,793

$

13,090

7616973.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

3,046

2,891

7617006.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

29,093

28,045

7617393.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

9,605

9,172

7617534.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

3,315

3,158

7617566.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

12,680

12,115

7617694.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

5,985

5,713

7617771.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

9,125

8,753

7617891.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

5,436

5,165

7617942.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

4,266

4,069

7618004.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

725

705

7618044.SQ.FTS.B

,

Zero

Cpn

,

9/21/25

...

1,429

1,372

7618116.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

14,487

13,742

7618310.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

2,404

2,295

7618347.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

655

621

7618353.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

20,008

19,120

7618751.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

19,509

18,543

7619264.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

5,942

5,657

7619409.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

6,362

6,066

7619530.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

945

901

7619548.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

2,421

2,179

7619619.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

14,161

13,488

7619852.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

2,045

1,945

7619875.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

6,361

6,074

7620023.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

4,108

3,917

7620106.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

50,802

48,058

7620858.SQ.FTS.B

,

Zero

Cpn

,

9/22/25

...

30,764

29,282

7621258.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

2,598

2,527

7621343.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

1,841

1,719

7621364.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

1,811

1,701

7621390.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

1,332

1,261

7621404.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

7,032

5,954

7621468.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

1,069

1,030

7621483.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

11,803

11,254

7621611.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

15,928

15,223

7621771.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

3,039

2,887

7621798.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

1,678

1,598

7621819.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

5,047

4,811

7621880.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

4,946

4,644

7621926.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

2,811

2,689

7621958.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

944

889

7621974.SQ.FTS.B

,

Zero

Cpn

,

9/23/25

...

20,055

19,030

7622213.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

11,660

10,966

7622327.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

2,635

2,470

7622362.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

6,880

6,562

7622461.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

2,818

2,694

7622501.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

1,458

1,398

7622518.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

2,251

2,146

7622539.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

2,798

2,670

7622578.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

9,115

8,167

7622686.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

1,035

988

7622701.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

16,943

15,694

7622867.SQ.FTS.B

,

Zero

Cpn

,

9/24/25

...

19,933

19,019

7623389.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

2,001

1,574

7623413.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

621

584

7623477.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

2,539

2,415

7623539.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

3,402

3,169

7623602.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

6,149

5,885

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7623781.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

$

2,722

$

2,475

7623850.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

13,430

12,692

7624159.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

975

841

7624168.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

2,869

2,762

7624234.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

5,098

4,856

7624325.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

3,466

2,990

7624359.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

16,798

14,696

7625499.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

19,521

18,178

7625822.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

17,260

15,817

7626107.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

7,750

7,335

7626239.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

7,969

7,624

7626458.SQ.FTS.B

,

Zero

Cpn

,

9/25/25

...

4,759

4,554

7626558.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

1,644

1,564

7626630.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

31,773

30,467

7627286.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

24,077

23,036

7627979.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

29,163

27,866

7628440.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

25,337

24,030

7628789.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

8,058

7,732

7628898.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

17,480

16,672

7629041.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

1,191

1,159

7629076.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

5,298

4,996

7629134.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

5,243

4,977

7629194.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

1,313

1,228

7629218.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

1,545

1,475

7629259.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

10,499

10,008

7629434.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

2,416

2,313

7629475.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

11,461

10,929

7629674.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

9,117

8,647

7629810.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

16,169

15,158

7630072.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

1,336

1,190

7630082.SQ.FTS.B

,

Zero

Cpn

,

9/26/25

...

15,932

15,243

7630314.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

7,117

6,675

7630441.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

1,320

1,211

7630481.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

16,942

15,760

7630717.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

724

657

7630737.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

8,206

7,663

7631003.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

5,808

5,227

7631194.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

7,606

6,932

7631333.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

88,594

83,087

7632995.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

4,491

4,141

7633043.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

5,876

5,409

7633131.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

5,085

4,629

7633206.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

10,903

10,090

7633326.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

3,749

3,481

7633381.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

4,992

4,629

7633449.SQ.FTS.B

,

Zero

Cpn

,

9/27/25

...

21,011

19,615

7635782.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

970

889

7635814.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

5,550

5,162

7635934.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

9,927

9,298

7636149.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

7,341

6,748

7636317.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

29,042

27,210

7637114.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

19,890

18,418

7637483.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

17,437

16,221

7637876.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

1,530

1,415

7637896.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

34,780

32,220

7638518.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

6,203

5,706

7638660.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

26,638

24,637

7639049.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

3,230

2,924

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7639102.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

$

16,718

$

15,639

7639378.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

2,926

2,691

7639451.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

6,539

6,008

7639571.SQ.FTS.B

,

Zero

Cpn

,

9/28/25

...

7,926

7,424

7639746.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

71,709

65,643

7641493.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

40,639

37,977

7642172.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

15,800

14,618

7642420.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

7,605

7,006

7642548.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

19,250

18,040

7642824.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

10,349

9,702

7643054.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

777

707

7643072.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

14,020

13,143

7643400.SQ.FTS.B

,

Zero

Cpn

,

9/29/25

...

6,115

5,637

7643469.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

2,127

1,946

7643520.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

6,276

5,702

7643615.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

593

533

7643618.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

8,393

7,659

7643762.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

3,729

3,470

7643816.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

5,011

4,580

7643916.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

7,602

7,028

7644065.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

5,525

5,139

7644158.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

5,885

5,496

7644260.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

11,264

10,368

7644510.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

2,317

2,118

7644544.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

5,763

5,359

7644633.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

4,310

4,031

7644697.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

3,377

3,133

7644751.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

4,131

3,871

7644811.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

1,159

1,057

7644837.SQ.FTS.B

,

Zero

Cpn

,

9/30/25

...

25,162

23,180

7645513.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

25,239

23,366

7646439.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

31,608

28,838

7647200.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

11,905

11,104

7647446.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

4,495

3,925

7647592.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

4,801

4,448

7647642.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

2,884

2,639

7647677.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

1,646

1,521

7647696.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

14,551

13,344

7648055.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

652

596

7648077.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

9,126

8,306

7648385.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

11,500

10,696

7648614.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

6,274

5,882

7648713.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

2,331

2,148

7648786.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

5,199

4,822

7648903.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

3,791

3,527

7648993.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

5,585

5,067

7649136.SQ.FTS.B

,

Zero

Cpn

,

10/01/25

..

13,166

12,185

7649638.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

1,547

1,416

7649681.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

4,848

4,515

7649834.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

9,142

8,529

7650087.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

8,040

7,369

7650342.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

2,805

2,556

7650429.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

30,980

29,023

7651523.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

5,529

5,019

7651646.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

3,313

2,953

7651716.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

13,803

12,758

7651905.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

12,001

11,228

7652109.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

2,384

2,209

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7652131.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

$

18,929

$

17,609

7652505.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

2,706

2,536

7652566.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

6,173

5,676

7652780.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

28,300

26,160

7653235.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

5,397

4,996

7653323.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

5,277

4,893

7653409.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

8,649

8,039

7653564.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

9,699

8,999

7653731.SQ.FTS.B

,

Zero

Cpn

,

10/02/25

..

21,394

19,947

7653915.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

8,934

8,286

7654130.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,140

1,047

7654148.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

7,762

7,271

7654369.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,602

1,484

7654433.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

2,510

2,314

7654523.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

5,805

5,394

7654750.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

762

683

7654781.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

19,897

18,380

7655252.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

2,066

1,923

7655297.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

3,165

2,954

7655349.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,671

1,541

7655370.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

5,462

5,097

7655459.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

8,447

7,858

7655546.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

3,388

3,094

7655563.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

2,214

1,996

7655578.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

5,505

5,032

7655630.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

7,358

6,822

7655753.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

4,961

4,524

7655831.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

2,161

1,975

7655880.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

53,450

49,687

7656840.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,866

1,722

7656864.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,245

1,149

7656890.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

6,429

5,892

7657005.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

4,523

4,120

7657112.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

6,431

5,990

7657189.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

7,128

6,546

7657282.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

6,260

5,688

7657391.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

1,898

1,757

7657424.SQ.FTS.B

,

Zero

Cpn

,

10/03/25

..

44,876

41,466

7659763.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

1,074

981

7659813.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

1,967

1,841

7659868.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

2,730

2,463

7659927.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

5,819

5,443

7660071.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

3,123

2,919

7660160.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

7,958

7,454

7660365.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

12,597

11,789

7660674.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

7,688

7,189

7661015.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

24,360

22,777

7661574.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

899

820

7661590.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

2,586

2,393

7661638.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

10,177

9,534

7661865.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

20,836

19,424

7662195.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

1,101

1,005

7662211.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

11,452

10,582

7662373.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

5,154

4,820

7662450.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

18,831

17,527

7662828.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

8,974

8,302

7663006.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

3,207

2,887

7663069.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

252

207

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7663077.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

$

20,456

$

19,070

7663325.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

2,961

2,721

7663380.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

14,705

13,757

7663563.SQ.FTS.B

,

Zero

Cpn

,

10/04/25

..

36,845

34,483

7664124.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

5,226

4,784

7664278.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

1,993

1,841

7664319.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

5,573

5,152

7664455.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

13,546

12,689

7664758.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

16,474

15,431

7665242.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

8,030

7,522

7665432.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

7,144

6,653

7665632.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

2,129

1,968

7665675.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

1,108

1,019

7665704.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

3,607

3,360

7665808.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

5,216

4,885

7665909.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

13,898

12,762

7666201.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

12,799

11,733

7666426.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

5,629

5,147

7666517.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

12,455

11,582

7666671.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

1,080

988

7666690.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

4,953

4,503

7666816.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

2,883

2,630

7666872.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

996

871

7666884.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

7,738

7,109

7666976.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

51,952

47,337

7667793.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

2,135

1,981

7667831.SQ.FTS.B

,

Zero

Cpn

,

10/05/25

..

16,714

15,554

7667876.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

937

849

7667902.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

2,820

2,596

7667947.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

1,854

1,715

7667969.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

1,854

1,713

7667993.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

4,297

3,943

7668132.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

5,755

5,292

7668263.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

14,497

13,355

7668578.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

6,392

5,974

7668726.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

1,146

1,052

7668750.SQ.FTS.B

,

Zero

Cpn

,

10/06/25

..

26,305

24,638

7669246.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

14,616

13,579

7669502.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

2,688

2,501

7669547.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

1,791

1,646

7669577.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

1,588

1,447

7669608.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

656

608

7669624.SQ.FTS.B

,

Zero

Cpn

,

10/07/25

..

11,372

10,476

7670124.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

5,481

5,088

7670320.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

1,128

1,048

7670335.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

18,822

17,239

7671138.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

860

769

7671175.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

2,417

2,213

7671234.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

18,249

17,065

7671635.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

29,116

27,124

7672190.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

4,264

3,993

7672268.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

1,953

1,778

7672299.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

2,715

2,498

7672346.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

13,541

12,665

7672672.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

39,966

37,283

7673568.SQ.FTS.B

,

Zero

Cpn

,

10/08/25

..

1,170

1,072

7673615.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

1,568

1,400

7673719.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

16,959

15,680

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7674082.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

$

5,814

$

5,421

7674219.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

2,268

2,094

7674285.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

2,940

2,740

7674361.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

5,255

4,840

7674523.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

8,566

7,840

7674752.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

853

717

7674831.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

2,127

1,983

7674874.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

21,237

19,884

7675329.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

1,849

1,695

7675347.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

21,928

20,322

7675618.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

43,988

40,100

7676193.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

55,811

51,452

7677032.SQ.FTS.B

,

Zero

Cpn

,

10/09/25

..

9,139

8,479

7677244.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

3,044

2,784

7677327.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

4,887

4,528

7677485.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

2,126

1,969

7677552.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

4,013

3,753

7677646.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

11,444

10,700

7677886.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

7,037

6,462

7678126.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

1,888

1,728

7678169.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

5,324

4,964

7678310.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

1,564

1,413

7678350.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

31,336

28,698

7678705.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

8,900

8,300

7678778.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

67,459

63,152

7679612.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

6,783

6,276

7679706.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

14,169

13,233

7679945.SQ.FTS.B

,

Zero

Cpn

,

10/10/25

..

68,624

64,173

7682291.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

1,367

1,261

7682366.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

8,660

8,026

7682516.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

4,773

4,401

7682681.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

4,289

3,927

7682805.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

1,098

996

7682838.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

13,753

12,732

7683369.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

10,308

9,649

7683662.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

9,657

9,024

7683888.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

8,583

7,877

7684028.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

37,458

34,739

7684473.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

11,781

11,026

7684725.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

5,252

4,897

7684838.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

5,988

5,605

7684952.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

5,739

5,300

7685071.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

5,334

4,956

7685188.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

2,668

2,478

7685236.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

4,324

3,990

7685318.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

2,092

1,866

7685365.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

8,169

7,615

7685516.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

4,111

3,815

7685569.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

2,701

2,481

7685628.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

6,767

6,195

7685699.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

1,779

1,627

7685711.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

6,023

5,629

7685777.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

2,499

2,313

7685830.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

3,053

2,853

7685923.SQ.FTS.B

,

Zero

Cpn

,

10/11/25

..

26,022

24,108

7686056.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

3,300

3,084

7686203.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

9,752

9,112

7686501.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

2,463

2,230

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7686580.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

$

3,045

$

2,823

7686665.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

4,092

3,780

7686805.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

1,705

1,559

7686897.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

8,856

8,228

7687270.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

2,083

1,940

7687342.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

4,007

3,733

7687433.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

42,349

38,834

7688416.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

20,994

19,185

7688640.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

1,282

1,168

7688661.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

15,490

14,132

7688956.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

6,070

5,637

7689093.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

1,089

986

7689134.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

5,815

5,420

7689200.SQ.FTS.B

,

Zero

Cpn

,

10/12/25

..

89,758

83,002

7689292.SQ.FTS.B

,

Zero

Cpn

,

10/13/25

..

1,554

1,444

7689328.SQ.FTS.B

,

Zero

Cpn

,

10/13/25

..

16,166

14,990

7689587.SQ.FTS.B

,

Zero

Cpn

,

10/13/25

..

1,539

1,423

7689612.SQ.FTS.B

,

Zero

Cpn

,

10/13/25

..

27,830

25,949

7690047.SQ.FTS.B

,

Zero

Cpn

,

10/13/25

..

7,794

7,150

7690191.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

3,762

3,450

7690287.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

17,605

16,115

7690536.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

12,050

11,234

7690710.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

2,965

2,751

7690742.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

3,792

3,499

7690797.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

1,799

1,667

7690844.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

2,830

2,613

7690892.SQ.FTS.B

,

Zero

Cpn

,

10/14/25

..

11,156

10,420

7691291.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

3,849

3,594

7691453.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

2,639

2,451

7691553.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

10,278

9,470

7691995.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

5,438

5,081

7692149.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

5,243

4,825

7692298.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

19,537

18,203

7692685.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

42,575

39,550

7693442.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

3,855

3,550

7693496.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

710

656

7693519.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

11,493

10,603

7693703.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

727

673

7693720.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

5,006

4,628

7693783.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

19,056

17,647

7694096.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

2,715

2,505

7694148.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

4,653

4,226

7694250.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

4,369

4,054

7694365.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

8,611

8,048

7694501.SQ.FTS.B

,

Zero

Cpn

,

10/15/25

..

2,799

2,605

7694583.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

7,558

7,035

7694762.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

10,363

9,554

7694996.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

3,339

3,066

7695118.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

3,377

3,089

7695245.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

1,101

1,022

7695276.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

2,173

2,008

7695312.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

3,266

2,983

7695422.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

10,026

9,290

7695636.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

1,989

1,813

7695657.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

23,290

21,788

7696123.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

2,144

1,969

7696155.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

955

868

7696160.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

1,060

987

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

7696170.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

$

9,909

$

9,258

7696274.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

2,089

1,888

7696300.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

6,349

5,830

7696383.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

4,997

4,643

7696444.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

5,266

4,911

7696524.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

3,243

2,954

7696545.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

32,771

30,288

7696985.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

6,005

5,549

7697049.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

6,401

5,938

7697124.SQ.FTS.B

,

Zero

Cpn

,

10/16/25

..

60,103

56,041

7697594.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

5,786

5,367

7697755.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

1,569

1,437

7697783.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

8,164

7,488

7697948.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

8,667

8,072

7698211.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

1,171

1,063

7698253.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

2,399

2,236

7698328.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

10,910

10,061

7698541.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

1,492

1,361

7698568.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

780

722

7698583.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

5,971

5,482

7698707.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

4,144

3,851

7698785.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

1,756

1,639

7698813.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

3,803

3,535

7698854.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

80,447

75,270

7699767.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

10,169

9,392

7699933.SQ.FTS.B

,

Zero

Cpn

,

10/17/25

..

28,357

26,383

7701610.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

1,570

1,454

7701673.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

2,503

2,288

7701707.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

1,684

1,547

7701751.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

20,913

19,087

7702153.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

6,968

6,479

7702430.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

4,944

4,542

7702511.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

9,050

8,450

7702777.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

9,519

8,838

7702967.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

7,101

6,629

7703086.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

2,733

2,541

7703141.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

31,772

29,423

7703746.SQ.FTS.B

,

Zero

Cpn

,

10/18/25

..

91,932

84,493

7704453.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

11,674

10,899

7704885.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

2,087

1,925

7704975.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

7,420

6,823

7705176.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

2,877

2,686

7705244.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

5,534

5,137

7705377.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

1,621

1,485

7705423.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

2,868

2,641

7705496.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

6,212

5,799

7705594.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

3,717

3,407

7705651.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

34,237

32,027

7706320.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

7,441

6,800

7706459.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

2,516

2,338

7706503.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

4,245

3,922

7706638.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

3,435

3,180

7706681.SQ.FTS.B

,

Zero

Cpn

,

10/19/25

..

5,413

5,005

7706764.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

1,612

1,475

7706803.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

5,097

4,711

7706853.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

9,279

8,647

7706959.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

3,391

3,118

7706994.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

4,596

4,199

Description

Principal

Amount

Value

Block,

Inc.

(continued)

7707051.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

$

7,790

$

7,164

7707125.SQ.FTS.B

,

Zero

Cpn

,

10/20/25

..

7,974

7,311

7707231.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

3,000

2,735

7707274.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

2,188

2,016

7707300.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

5,697

5,297

7707383.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

1,408

1,295

7707399.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

7,473

6,834

7707498.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

1,607

1,485

7707519.SQ.FTS.B

,

Zero

Cpn

,

10/21/25

..

19,745

18,145

7707960.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

2,294

2,142

7708038.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

863

788

7708060.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

38,988

36,409

7708727.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

11,286

10,471

7708833.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

24,580

22,644

7709068.SQ.FTS.B

,

Zero

Cpn

,

10/22/25

..

62,760

58,140

7709742.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

10,049

9,178

7709962.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

2,197

1,993

7710040.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

4,114

3,780

7710167.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

1,191

1,086

7710178.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

5,989

5,579

7710309.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

3,391

3,159

7710367.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

2,907

2,678

7710406.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

41,166

38,342

7711209.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

576

528

7711243.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

3,956

3,694

7711357.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

16,316

15,090

7712838.SQ.FTS.B

,

Zero

Cpn

,

10/23/25

..

106,537

99,464

7714659.SQ.FTS.B

,

Zero

Cpn

,

10/24/25

..

7,870

7,303

7721357.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

26,448

24,173

7722133.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

1,496

1,378

7722184.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

24,310

22,687

7722570.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

5,564

5,194

7722642.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

33,113

30,957

7723031.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

3,536

3,265

7723057.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

7,062

6,530

7723131.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

7,446

6,891

7723221.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

10,225

9,489

7723349.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

6,906

6,361

7723432.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

2,920

2,725

7723470.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

1,704

1,590

7723494.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

16,733

15,267

7723677.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

5,049

4,675

7723728.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

6,319

5,821

7723780.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

3,272

3,053

7723800.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

6,320

5,852

7723910.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

3,693

3,393

7723938.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

33,431

31,063

7724410.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

17,949

16,751

7724630.SQ.FTS.B

,

Zero

Cpn

,

10/25/25

..

8,610

7,952

4578615.SQ.FTS.B

,

Zero

Cpn

,

4/01/33

...

1,525

–

4580233.SQ.FTS.B

,

Zero

Cpn

,

4/01/33

...

536

–

4583983.SQ.FTS.B

,

Zero

Cpn

,

4/04/33

...

3,383

–

4585288.SQ.FTS.B

,

Zero

Cpn

,

4/04/33

...

13,554

–

4587010.SQ.FTS.B

,

Zero

Cpn

,

4/05/33

...

1,755

–

4588245.SQ.FTS.B

,

Zero

Cpn

,

4/05/33

...

3,204

–

4589702.SQ.FTS.B

,

Zero

Cpn

,

4/05/33

...

3,489

–

4590358.SQ.FTS.B

,

Zero

Cpn

,

4/05/33

...

226

–

4598182.SQ.FTS.B

,

Zero

Cpn

,

4/07/33

...

1,281

–

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4602285.SQ.FTS.B

,

Zero

Cpn

,

4/08/33

...

$

31,712

$

–

4604615.SQ.FTS.B

,

Zero

Cpn

,

4/09/33

...

13,726

–

4604886.SQ.FTS.B

,

Zero

Cpn

,

4/10/33

...

2,273

–

4606179.SQ.FTS.B

,

Zero

Cpn

,

4/11/33

...

10,364

–

4606335.SQ.FTS.B

,

Zero

Cpn

,

4/11/33

...

2,103

–

4606464.SQ.FTS.B

,

Zero

Cpn

,

4/11/33

...

12,284

1

4609551.SQ.FTS.B

,

Zero

Cpn

,

4/12/33

...

5,454

–

4610443.SQ.FTS.B

,

Zero

Cpn

,

4/13/33

...

10,147

1

4612920.SQ.FTS.B

,

Zero

Cpn

,

4/13/33

...

2,172

–

4622639.SQ.FTS.B

,

Zero

Cpn

,

4/15/33

...

3,183

–

4624403.SQ.FTS.B

,

Zero

Cpn

,

4/17/33

...

646

–

4624869.SQ.FTS.B

,

Zero

Cpn

,

4/17/33

...

1,488

–

4626298.SQ.FTS.B

,

Zero

Cpn

,

4/18/33

...

10,268

–

4626514.SQ.FTS.B

,

Zero

Cpn

,

4/18/33

...

2,949

–

4627586.SQ.FTS.B

,

Zero

Cpn

,

4/18/33

...

4,624

–

4629149.SQ.FTS.B

,

Zero

Cpn

,

4/19/33

...

6,425

–

4632596.SQ.FTS.B

,

Zero

Cpn

,

4/20/33

...

848

–

4635753.SQ.FTS.B

,

Zero

Cpn

,

4/21/33

...

11,156

–

4642502.SQ.FTS.B

,

Zero

Cpn

,

4/25/33

...

846

–

4643970.SQ.FTS.B

,

Zero

Cpn

,

4/26/33

...

2,081

–

4656958.SQ.FTS.B

,

Zero

Cpn

,

4/30/33

...

3,103

–

4657373.SQ.FTS.B

,

Zero

Cpn

,

4/30/33

...

3,122

–

4661015.SQ.FTS.B

,

Zero

Cpn

,

5/01/33

...

2,307

–

4661890.SQ.FTS.B

,

Zero

Cpn

,

5/02/33

...

2,289

–

4662184.SQ.FTS.B

,

Zero

Cpn

,

5/02/33

...

2,428

–

4663096.SQ.FTS.B

,

Zero

Cpn

,

5/02/33

...

27,120

–

4663916.SQ.FTS.B

,

Zero

Cpn

,

5/02/33

...

24,742

1

4665676.SQ.FTS.B

,

Zero

Cpn

,

5/03/33

...

4,625

–

4675799.SQ.FTS.B

,

Zero

Cpn

,

5/05/33

...

3,282

–

4677893.SQ.FTS.B

,

Zero

Cpn

,

5/06/33

...

2,173

–

4691756.SQ.FTS.B

,

Zero

Cpn

,

5/09/33

...

7,269

–

4692191.SQ.FTS.B

,

Zero

Cpn

,

5/09/33

...

9,113

–

4692982.SQ.FTS.B

,

Zero

Cpn

,

5/09/33

...

430

–

4693423.SQ.FTS.B

,

Zero

Cpn

,

5/09/33

...

8,730

1

4693941.SQ.FTS.B

,

Zero

Cpn

,

5/09/33

...

8,872

–

4701939.SQ.FTS.B

,

Zero

Cpn

,

5/10/33

...

1,446

–

4706450.SQ.FTS.B

,

Zero

Cpn

,

5/10/33

...

6,009

–

4706808.SQ.FTS.B

,

Zero

Cpn

,

5/10/33

...

5,406

–

4707248.SQ.FTS.B

,

Zero

Cpn

,

5/11/33

...

641

–

4711828.SQ.FTS.B

,

Zero

Cpn

,

5/12/33

...

3,618

–

4714060.SQ.FTS.B

,

Zero

Cpn

,

5/13/33

...

1,082

–

4714469.SQ.FTS.B

,

Zero

Cpn

,

5/14/33

...

828

–

4738688.SQ.FTS.B

,

Zero

Cpn

,

5/18/33

...

840

1

4747188.SQ.FTS.B

,

Zero

Cpn

,

5/19/33

...

553

–

4750103.SQ.FTS.B

,

Zero

Cpn

,

5/20/33

...

8,831

8

4750803.SQ.FTS.B

,

Zero

Cpn

,

5/21/33

...

3,382

2

4754132.SQ.FTS.B

,

Zero

Cpn

,

5/22/33

...

847

2

4764584.SQ.FTS.B

,

Zero

Cpn

,

5/23/33

...

523

1

4773604.SQ.FTS.B

,

Zero

Cpn

,

5/24/33

...

9,605

9

4774144.SQ.FTS.B

,

Zero

Cpn

,

5/24/33

...

1,718

3

4777853.SQ.FTS.B

,

Zero

Cpn

,

5/24/33

...

1,347

3

4779678.SQ.FTS.B

,

Zero

Cpn

,

5/25/33

...

1,257

3

4782528.SQ.FTS.B

,

Zero

Cpn

,

5/26/33

...

51

–

4789370.SQ.FTS.B

,

Zero

Cpn

,

5/29/33

...

896

1

4790824.SQ.FTS.B

,

Zero

Cpn

,

5/29/33

...

3,330

3

4796651.SQ.FTS.B

,

Zero

Cpn

,

6/01/33

...

3,524

5

4807880.SQ.FTS.B

,

Zero

Cpn

,

6/02/33

...

19,694

24

4808500.SQ.FTS.B

,

Zero

Cpn

,

6/02/33

...

7,711

22

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4815646.SQ.FTS.B

,

Zero

Cpn

,

6/05/33

...

$

5,300

$

19

4820091.SQ.FTS.B

,

Zero

Cpn

,

6/07/33

...

1,630

5

4820553.SQ.FTS.B

,

Zero

Cpn

,

6/07/33

...

10,164

19

4821904.SQ.FTS.B

,

Zero

Cpn

,

6/08/33

...

796

1

4830931.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

69

–

4831001.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

847

2

4831110.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

962

2

4831269.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

204

1

4831653.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

2,099

5

4832548.SQ.FTS.B

,

Zero

Cpn

,

6/10/33

...

1,545

3

4833520.SQ.FTS.B

,

Zero

Cpn

,

6/11/33

...

2,140

8

4834162.SQ.FTS.B

,

Zero

Cpn

,

6/12/33

...

208

1

4838333.SQ.FTS.B

,

Zero

Cpn

,

6/14/33

...

750

1

4839102.SQ.FTS.B

,

Zero

Cpn

,

6/14/33

...

1,596

4

4841116.SQ.FTS.B

,

Zero

Cpn

,

6/15/33

...

11,234

31

4842605.SQ.FTS.B

,

Zero

Cpn

,

6/15/33

...

4,000

8

4842631.SQ.FTS.B

,

Zero

Cpn

,

6/15/33

...

5,776

18

4848622.SQ.FTS.B

,

Zero

Cpn

,

6/16/33

...

2,069

12

4862341.SQ.FTS.B

,

Zero

Cpn

,

6/18/33

...

527

3

4862443.SQ.FTS.B

,

Zero

Cpn

,

6/18/33

...

7,578

30

4862938.SQ.FTS.B

,

Zero

Cpn

,

6/19/33

...

691

3

4862998.SQ.FTS.B

,

Zero

Cpn

,

6/19/33

...

1,298

5

4863062.SQ.FTS.B

,

Zero

Cpn

,

6/19/33

...

3,882

9

4863238.SQ.FTS.B

,

Zero

Cpn

,

6/19/33

...

2,993

17

4863412.SQ.FTS.B

,

Zero

Cpn

,

6/19/33

...

11,632

69

4867257.SQ.FTS.B

,

Zero

Cpn

,

6/20/33

...

607

1

4867843.SQ.FTS.B

,

Zero

Cpn

,

6/21/33

...

493

2

4868757.SQ.FTS.B

,

Zero

Cpn

,

6/21/33

...

3,219

17

4869815.SQ.FTS.B

,

Zero

Cpn

,

6/21/33

...

7,257

26

4871837.SQ.FTS.B

,

Zero

Cpn

,

6/22/33

...

1,490

7

4872072.SQ.FTS.B

,

Zero

Cpn

,

6/22/33

...

4,085

21

4873297.SQ.FTS.B

,

Zero

Cpn

,

6/22/33

...

113

1

4873313.SQ.FTS.B

,

Zero

Cpn

,

6/22/33

...

1,287

5

4873405.SQ.FTS.B

,

Zero

Cpn

,

6/22/33

...

5,886

41

4874157.SQ.FTS.B

,

Zero

Cpn

,

6/23/33

...

3,873

20

4874535.SQ.FTS.B

,

Zero

Cpn

,

6/23/33

...

977

4

4874544.SQ.FTS.B

,

Zero

Cpn

,

6/23/33

...

239

2

4874845.SQ.FTS.B

,

Zero

Cpn

,

6/23/33

...

3,811

28

4875940.SQ.FTS.B

,

Zero

Cpn

,

6/23/33

...

7,944

52

4877067.SQ.FTS.B

,

Zero

Cpn

,

6/24/33

...

1,174

2

4877254.SQ.FTS.B

,

Zero

Cpn

,

6/25/33

...

1,462

9

4877394.SQ.FTS.B

,

Zero

Cpn

,

6/25/33

...

4,239

29

4877534.SQ.FTS.B

,

Zero

Cpn

,

6/25/33

...

1,841

5

4878103.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

627

4

4878787.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

4,067

17

4879124.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

4,098

30

4879371.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

536

2

4879728.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

2,694

13

4879828.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

1,524

7

4880273.SQ.FTS.B

,

Zero

Cpn

,

6/27/33

...

32,499

175

4880840.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

1,746

6

4880881.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

274

2

4881595.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

1,106

9

4881625.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

1,074

3

4881632.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

5,202

21

4881933.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

502

2

4881967.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

786

4

4882127.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

35,043

214

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4882630.SQ.FTS.B

,

Zero

Cpn

,

6/28/33

...

$

5,042

$

40

4886903.SQ.FTS.B

,

Zero

Cpn

,

6/30/33

...

2,071

7

4886912.SQ.FTS.B

,

Zero

Cpn

,

6/30/33

...

2,287

3

4889268.SQ.FTS.B

,

Zero

Cpn

,

6/30/33

...

524

3

4889574.SQ.FTS.B

,

Zero

Cpn

,

7/01/33

...

2,850

10

4893066.SQ.FTS.B

,

Zero

Cpn

,

7/04/33

...

3,265

6

4894101.SQ.FTS.B

,

Zero

Cpn

,

7/04/33

...

12,955

90

4896547.SQ.FTS.B

,

Zero

Cpn

,

7/05/33

...

4,712

26

4898852.SQ.FTS.B

,

Zero

Cpn

,

7/06/33

...

2,213

13

4899151.SQ.FTS.B

,

Zero

Cpn

,

7/06/33

...

3,147

22

4907364.SQ.FTS.B

,

Zero

Cpn

,

7/11/33

...

1,373

5

4908064.SQ.FTS.B

,

Zero

Cpn

,

7/11/33

...

16,814

165

4916400.SQ.FTS.B

,

Zero

Cpn

,

7/14/33

...

955

9

4916673.SQ.FTS.B

,

Zero

Cpn

,

7/14/33

...

9,163

58

4922562.SQ.FTS.B

,

Zero

Cpn

,

7/14/33

...

6,112

59

4923493.SQ.FTS.B

,

Zero

Cpn

,

7/15/33

...

134

1

4925329.SQ.FTS.B

,

Zero

Cpn

,

7/18/33

...

1,389

5

4928876.SQ.FTS.B

,

Zero

Cpn

,

7/19/33

...

514

5

4930391.SQ.FTS.B

,

Zero

Cpn

,

7/20/33

...

69

1

4931020.SQ.FTS.B

,

Zero

Cpn

,

7/20/33

...

10,152

91

4935511.SQ.FTS.B

,

Zero

Cpn

,

7/22/33

...

450

5

4941224.SQ.FTS.B

,

Zero

Cpn

,

7/25/33

...

4,401

34

4947272.SQ.FTS.B

,

Zero

Cpn

,

7/27/33

...

1,224

10

4954105.SQ.FTS.B

,

Zero

Cpn

,

7/28/33

...

2,531

29

4961597.SQ.FTS.B

,

Zero

Cpn

,

7/31/33

...

6,826

97

4964338.SQ.FTS.B

,

Zero

Cpn

,

8/01/33

...

1,028

7

4975322.SQ.FTS.B

,

Zero

Cpn

,

8/05/33

...

1,106

4

4976561.SQ.FTS.B

,

Zero

Cpn

,

8/07/33

...

2,306

15

4977248.SQ.FTS.B

,

Zero

Cpn

,

8/07/33

...

23,393

266

4978982.SQ.FTS.B

,

Zero

Cpn

,

8/08/33

...

8,763

169

4979694.SQ.FTS.B

,

Zero

Cpn

,

8/08/33

...

7,423

39

4980976.SQ.FTS.B

,

Zero

Cpn

,

8/08/33

...

3,062

18

4981159.SQ.FTS.B

,

Zero

Cpn

,

8/09/33

...

3,162

17

4983108.SQ.FTS.B

,

Zero

Cpn

,

8/09/33

...

419

4

4989442.SQ.FTS.B

,

Zero

Cpn

,

8/11/33

...

717

8

4990668.SQ.FTS.B

,

Zero

Cpn

,

8/12/33

...

1,655

16

4995431.SQ.FTS.B

,

Zero

Cpn

,

8/15/33

...

6,247

35

5004424.SQ.FTS.B

,

Zero

Cpn

,

8/16/33

...

1,829

19

5016072.SQ.FTS.B

,

Zero

Cpn

,

8/17/33

...

5,014

53

5023148.SQ.FTS.B

,

Zero

Cpn

,

8/18/33

...

443

10

5025752.SQ.FTS.B

,

Zero

Cpn

,

8/19/33

...

6,406

22

5025882.SQ.FTS.B

,

Zero

Cpn

,

8/19/33

...

1,669

11

5027373.SQ.FTS.B

,

Zero

Cpn

,

8/21/33

...

8,844

38

5030831.SQ.FTS.B

,

Zero

Cpn

,

8/22/33

...

5,213

28

5031471.SQ.FTS.B

,

Zero

Cpn

,

8/22/33

...

5,258

44

5033148.SQ.FTS.B

,

Zero

Cpn

,

8/23/33

...

471

6

5035669.SQ.FTS.B

,

Zero

Cpn

,

8/23/33

...

3,399

17

5044258.SQ.FTS.B

,

Zero

Cpn

,

8/27/33

...

8,147

115

5044794.SQ.FTS.B

,

Zero

Cpn

,

8/28/33

...

5,731

70

5045662.SQ.FTS.B

,

Zero

Cpn

,

8/28/33

...

2,040

11

5047314.SQ.FTS.B

,

Zero

Cpn

,

8/28/33

...

460

6

5047321.SQ.FTS.B

,

Zero

Cpn

,

8/28/33

...

5,110

38

5059326.SQ.FTS.B

,

Zero

Cpn

,

9/04/33

...

13,048

64

5062340.SQ.FTS.B

,

Zero

Cpn

,

9/06/33

...

2,074

19

5062512.SQ.FTS.B

,

Zero

Cpn

,

9/06/33

...

3,648

43

5065404.SQ.FTS.B

,

Zero

Cpn

,

9/07/33

...

2,639

11

5067242.SQ.FTS.B

,

Zero

Cpn

,

9/08/33

...

5,386

108

5067403.SQ.FTS.B

,

Zero

Cpn

,

9/08/33

...

2,045

21

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5071139.SQ.FTS.B

,

Zero

Cpn

,

9/09/33

...

$

2,772

$

49

5072967.SQ.FTS.B

,

Zero

Cpn

,

9/10/33

...

542

6

5074442.SQ.FTS.B

,

Zero

Cpn

,

9/10/33

...

1,909

13

5075119.SQ.FTS.B

,

Zero

Cpn

,

9/10/33

...

1,106

28

5077583.SQ.FTS.B

,

Zero

Cpn

,

9/11/33

...

3,691

31

5080816.SQ.FTS.B

,

Zero

Cpn

,

9/14/33

...

477

10

5081612.SQ.FTS.B

,

Zero

Cpn

,

9/14/33

...

1,324

25

5084934.SQ.FTS.B

,

Zero

Cpn

,

9/16/33

...

33,929

405

5085858.SQ.FTS.B

,

Zero

Cpn

,

9/16/33

...

884

15

5090272.SQ.FTS.B

,

Zero

Cpn

,

9/17/33

...

4,187

52

5093863.SQ.FTS.B

,

Zero

Cpn

,

9/19/33

...

9,864

140

5094427.SQ.FTS.B

,

Zero

Cpn

,

9/20/33

...

2,121

48

5095917.SQ.FTS.B

,

Zero

Cpn

,

9/21/33

...

17,638

164

5096674.SQ.FTS.B

,

Zero

Cpn

,

9/21/33

...

13,763

115

5098275.SQ.FTS.B

,

Zero

Cpn

,

9/22/33

...

6,026

70

5100485.SQ.FTS.B

,

Zero

Cpn

,

9/23/33

...

4,264

38

5106538.SQ.FTS.B

,

Zero

Cpn

,

9/24/33

...

11,727

169

5107353.SQ.FTS.B

,

Zero

Cpn

,

9/24/33

...

1,383

29

5109145.SQ.FTS.B

,

Zero

Cpn

,

9/25/33

...

1,195

17

5110636.SQ.FTS.B

,

Zero

Cpn

,

9/26/33

...

242

6

5111024.SQ.FTS.B

,

Zero

Cpn

,

9/27/33

...

2,150

36

5112445.SQ.FTS.B

,

Zero

Cpn

,

9/28/33

...

344

11

5112955.SQ.FTS.B

,

Zero

Cpn

,

9/28/33

...

4,811

50

5113266.SQ.FTS.B

,

Zero

Cpn

,

9/28/33

...

1,765

37

5114206.SQ.FTS.B

,

Zero

Cpn

,

9/28/33

...

573

12

5119131.SQ.FTS.B

,

Zero

Cpn

,

9/30/33

...

2,302

47

5119221.SQ.FTS.B

,

Zero

Cpn

,

9/30/33

...

2,448

53

5119608.SQ.FTS.B

,

Zero

Cpn

,

9/30/33

...

2,049

66

5124518.SQ.FTS.B

,

Zero

Cpn

,

9/30/33

...

11,687

247

5126438.SQ.FTS.B

,

Zero

Cpn

,

10/01/33

..

22,782

548

5128413.SQ.FTS.B

,

Zero

Cpn

,

10/02/33

..

1,332

13

5131669.SQ.FTS.B

,

Zero

Cpn

,

10/04/33

..

22,967

446

5132006.SQ.FTS.B

,

Zero

Cpn

,

10/04/33

..

790

15

5138072.SQ.FTS.B

,

Zero

Cpn

,

10/06/33

..

4,185

85

5141482.SQ.FTS.B

,

Zero

Cpn

,

10/07/33

..

2,827

68

5142028.SQ.FTS.B

,

Zero

Cpn

,

10/07/33

..

612

7

5142049.SQ.FTS.B

,

Zero

Cpn

,

10/07/33

..

537

16

5149269.SQ.FTS.B

,

Zero

Cpn

,

10/10/33

..

941

9

5150453.SQ.FTS.B

,

Zero

Cpn

,

10/11/33

..

102

3

5152822.SQ.FTS.B

,

Zero

Cpn

,

10/11/33

..

8,504

224

5153369.SQ.FTS.B

,

Zero

Cpn

,

10/11/33

..

12,680

294

5153611.SQ.FTS.B

,

Zero

Cpn

,

10/12/33

..

418

12

5153956.SQ.FTS.B

,

Zero

Cpn

,

10/12/33

..

2,957

57

5154314.SQ.FTS.B

,

Zero

Cpn

,

10/12/33

..

2,780

42

5154612.SQ.FTS.B

,

Zero

Cpn

,

10/12/33

..

1,314

25

5157152.SQ.FTS.B

,

Zero

Cpn

,

10/12/33

..

4,186

124

5157821.SQ.FTS.B

,

Zero

Cpn

,

10/13/33

..

4,950

122

5159356.SQ.FTS.B

,

Zero

Cpn

,

10/13/33

..

1,343

44

5159643.SQ.FTS.B

,

Zero

Cpn

,

10/13/33

..

1,281

31

5162509.SQ.FTS.B

,

Zero

Cpn

,

10/14/33

..

55,221

1,294

5163000.SQ.FTS.B

,

Zero

Cpn

,

10/14/33

..

6,619

226

5165754.SQ.FTS.B

,

Zero

Cpn

,

10/14/33

..

1,218

15

5168750.SQ.FTS.B

,

Zero

Cpn

,

10/15/33

..

2,545

79

5170843.SQ.FTS.B

,

Zero

Cpn

,

10/15/33

..

14,553

403

5171656.SQ.FTS.B

,

Zero

Cpn

,

10/16/33

..

875

8

5172517.SQ.FTS.B

,

Zero

Cpn

,

10/17/33

..

3,231

32

5173148.SQ.FTS.B

,

Zero

Cpn

,

10/17/33

..

670

22

5175259.SQ.FTS.B

,

Zero

Cpn

,

10/18/33

..

69

1

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5175826.SQ.FTS.B

,

Zero

Cpn

,

10/18/33

..

$

3,657

$

94

5176617.SQ.FTS.B

,

Zero

Cpn

,

10/18/33

..

935

19

5176935.SQ.FTS.B

,

Zero

Cpn

,

10/18/33

..

489

6

5177078.SQ.FTS.B

,

Zero

Cpn

,

10/18/33

..

260

7

5184366.SQ.FTS.B

,

Zero

Cpn

,

10/19/33

..

3,564

97

5189604.SQ.FTS.B

,

Zero

Cpn

,

10/20/33

..

4,636

149

5203735.SQ.FTS.B

,

Zero

Cpn

,

10/21/33

..

6,108

176

5210519.SQ.FTS.B

,

Zero

Cpn

,

10/24/33

..

11,522

195

5223636.SQ.FTS.B

,

Zero

Cpn

,

10/27/33

..

2,509

87

5230330.SQ.FTS.B

,

Zero

Cpn

,

10/28/33

..

1,320

32

5230601.SQ.FTS.B

,

Zero

Cpn

,

10/28/33

..

5,805

147

5234006.SQ.FTS.B

,

Zero

Cpn

,

10/28/33

..

32,423

1,008

5238828.SQ.FTS.B

,

Zero

Cpn

,

10/29/33

..

19,166

534

5240481.SQ.FTS.B

,

Zero

Cpn

,

10/30/33

..

1,280

40

5240546.SQ.FTS.B

,

Zero

Cpn

,

10/30/33

..

1,371

12

5240561.SQ.FTS.B

,

Zero

Cpn

,

10/30/33

..

993

29

5240923.SQ.FTS.B

,

Zero

Cpn

,

11/01/33

..

7,658

107

5245023.SQ.FTS.B

,

Zero

Cpn

,

11/02/33

..

1,235

35

5246421.SQ.FTS.B

,

Zero

Cpn

,

11/02/33

..

1,521

23

5251953.SQ.FTS.B

,

Zero

Cpn

,

11/04/33

..

1,860

26

5252966.SQ.FTS.B

,

Zero

Cpn

,

11/04/33

..

2,234

41

5256925.SQ.FTS.B

,

Zero

Cpn

,

11/04/33

..

12,694

571

5267196.SQ.FTS.B

,

Zero

Cpn

,

11/06/33

..

2,396

77

5267302.SQ.FTS.B

,

Zero

Cpn

,

11/06/33

..

212

3

5270825.SQ.FTS.B

,

Zero

Cpn

,

11/06/33

..

4,533

71

5273714.SQ.FTS.B

,

Zero

Cpn

,

11/08/33

..

2,002

53

5276774.SQ.FTS.B

,

Zero

Cpn

,

11/09/33

..

3,264

109

5280986.SQ.FTS.B

,

Zero

Cpn

,

11/10/33

..

1,327

20

5284007.SQ.FTS.B

,

Zero

Cpn

,

11/11/33

..

1,049

54

5287039.SQ.FTS.B

,

Zero

Cpn

,

11/12/33

..

8,749

309

5288567.SQ.FTS.B

,

Zero

Cpn

,

11/12/33

..

487

14

5288588.SQ.FTS.B

,

Zero

Cpn

,

11/12/33

..

54,775

1,181

5289917.SQ.FTS.B

,

Zero

Cpn

,

11/12/33

..

702

6

5292026.SQ.FTS.B

,

Zero

Cpn

,

11/13/33

..

5,106

151

5293907.SQ.FTS.B

,

Zero

Cpn

,

11/14/33

..

2,714

61

5293955.SQ.FTS.B

,

Zero

Cpn

,

11/14/33

..

5,278

178

5295255.SQ.FTS.B

,

Zero

Cpn

,

11/16/33

..

1,890

34

5296246.SQ.FTS.B

,

Zero

Cpn

,

11/16/33

..

1,628

56

5300323.SQ.FTS.B

,

Zero

Cpn

,

11/17/33

..

1,387

31

5304517.SQ.FTS.B

,

Zero

Cpn

,

11/17/33

..

2,976

91

5311109.SQ.FTS.B

,

Zero

Cpn

,

11/18/33

..

5,700

222

5312373.SQ.FTS.B

,

Zero

Cpn

,

11/18/33

..

721

29

5317481.SQ.FTS.B

,

Zero

Cpn

,

11/19/33

..

593

18

5319057.SQ.FTS.B

,

Zero

Cpn

,

11/19/33

..

2,284

107

5324739.SQ.FTS.B

,

Zero

Cpn

,

11/21/33

..

1,240

39

5325009.SQ.FTS.B

,

Zero

Cpn

,

11/22/33

..

6,356

274

5325109.SQ.FTS.B

,

Zero

Cpn

,

11/22/33

..

3,741

39

5325953.SQ.FTS.B

,

Zero

Cpn

,

11/23/33

..

27,323

1,055

5331997.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

1,138

23

5332017.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

3,457

141

5332382.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

1,453

17

5333523.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

620

16

5333772.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

967

18

5334010.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

435

18

5334017.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

710

38

5334919.SQ.FTS.B

,

Zero

Cpn

,

11/24/33

..

1,216

17

5336258.SQ.FTS.B

,

Zero

Cpn

,

11/25/33

..

4,115

177

5337318.SQ.FTS.B

,

Zero

Cpn

,

11/25/33

..

1,470

87

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5364437.SQ.FTS.B

,

Zero

Cpn

,

11/26/33

..

$

251

$

12

5364900.SQ.FTS.B

,

Zero

Cpn

,

11/26/33

..

1,391

27

5365379.SQ.FTS.B

,

Zero

Cpn

,

11/26/33

..

768

41

5369148.SQ.FTS.B

,

Zero

Cpn

,

11/27/33

..

969

58

5377413.SQ.FTS.B

,

Zero

Cpn

,

11/27/33

..

944

19

5377620.SQ.FTS.B

,

Zero

Cpn

,

11/27/33

..

13,408

617

5378585.SQ.FTS.B

,

Zero

Cpn

,

11/27/33

..

392

8

5393796.SQ.FTS.B

,

Zero

Cpn

,

11/30/33

..

671

14

5397535.SQ.FTS.B

,

Zero

Cpn

,

11/30/33

..

5,543

214

5408127.SQ.FTS.B

,

Zero

Cpn

,

12/01/33

..

1,021

37

5411388.SQ.FTS.B

,

Zero

Cpn

,

12/01/33

..

563

18

5412734.SQ.FTS.B

,

Zero

Cpn

,

12/01/33

..

8,127

189

5413423.SQ.FTS.B

,

Zero

Cpn

,

12/01/33

..

2,550

115

5415130.SQ.FTS.B

,

Zero

Cpn

,

12/01/33

..

113

4

5447961.SQ.FTS.B

,

Zero

Cpn

,

12/02/33

..

697

33

5456242.SQ.FTS.B

,

Zero

Cpn

,

12/03/33

..

349

20

5472760.SQ.FTS.B

,

Zero

Cpn

,

12/04/33

..

3,648

205

5473353.SQ.FTS.B

,

Zero

Cpn

,

12/04/33

..

303

18

5475686.SQ.FTS.B

,

Zero

Cpn

,

12/06/33

..

2,736

88

5479438.SQ.FTS.B

,

Zero

Cpn

,

12/06/33

..

631

24

5480752.SQ.FTS.B

,

Zero

Cpn

,

12/06/33

..

3,098

120

5505930.SQ.FTS.B

,

Zero

Cpn

,

12/07/33

..

1,048

34

5507000.SQ.FTS.B

,

Zero

Cpn

,

12/08/33

..

38,614

1,270

5515187.SQ.FTS.B

,

Zero

Cpn

,

12/08/33

..

4,692

257

5516154.SQ.FTS.B

,

Zero

Cpn

,

12/08/33

..

12,489

303

5518310.SQ.FTS.B

,

Zero

Cpn

,

12/08/33

..

390

11

5533995.SQ.FTS.B

,

Zero

Cpn

,

12/09/33

..

813

63

5534121.SQ.FTS.B

,

Zero

Cpn

,

12/09/33

..

5,159

171

5534689.SQ.FTS.B

,

Zero

Cpn

,

12/10/33

..

11,280

472

5535547.SQ.FTS.B

,

Zero

Cpn

,

12/10/33

..

4,404

141

5537728.SQ.FTS.B

,

Zero

Cpn

,

12/10/33

..

2,668

80

5537817.SQ.FTS.B

,

Zero

Cpn

,

12/10/33

..

798

10

5537953.SQ.FTS.B

,

Zero

Cpn

,

12/10/33

..

4,030

80

5539822.SQ.FTS.B

,

Zero

Cpn

,

12/11/33

..

465

29

5539948.SQ.FTS.B

,

Zero

Cpn

,

12/11/33

..

1,314

67

5541083.SQ.FTS.B

,

Zero

Cpn

,

12/12/33

..

114

4

5541094.SQ.FTS.B

,

Zero

Cpn

,

12/12/33

..

5,085

233

5546515.SQ.FTS.B

,

Zero

Cpn

,

12/13/33

..

2,064

111

5547946.SQ.FTS.B

,

Zero

Cpn

,

12/14/33

..

1,134

54

5552344.SQ.FTS.B

,

Zero

Cpn

,

12/14/33

..

1,674

66

5554641.SQ.FTS.B

,

Zero

Cpn

,

12/15/33

..

62,255

2,857

5556696.SQ.FTS.B

,

Zero

Cpn

,

12/15/33

..

5,553

298

5562047.SQ.FTS.B

,

Zero

Cpn

,

12/16/33

..

3,095

87

5563038.SQ.FTS.B

,

Zero

Cpn

,

12/16/33

..

4,772

110

5564628.SQ.FTS.B

,

Zero

Cpn

,

12/17/33

..

3,239

269

5565992.SQ.FTS.B

,

Zero

Cpn

,

12/17/33

..

2,616

99

5568881.SQ.FTS.B

,

Zero

Cpn

,

12/19/33

..

1,314

56

5569070.SQ.FTS.B

,

Zero

Cpn

,

12/19/33

..

29,610

1,530

5572327.SQ.FTS.B

,

Zero

Cpn

,

12/20/33

..

243

11

5573406.SQ.FTS.B

,

Zero

Cpn

,

12/21/33

..

363

17

5574351.SQ.FTS.B

,

Zero

Cpn

,

12/21/33

..

10,696

722

5575886.SQ.FTS.B

,

Zero

Cpn

,

12/21/33

..

894

52

5585235.SQ.FTS.B

,

Zero

Cpn

,

12/24/33

..

2,198

126

5585522.SQ.FTS.B

,

Zero

Cpn

,

12/24/33

..

581

35

5586899.SQ.FTS.B

,

Zero

Cpn

,

12/24/33

..

2,468

67

5588173.SQ.FTS.B

,

Zero

Cpn

,

12/25/33

..

5,762

490

5588832.SQ.FTS.B

,

Zero

Cpn

,

12/26/33

..

7,140

507

5589322.SQ.FTS.B

,

Zero

Cpn

,

12/26/33

..

4,040

243

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5594180.SQ.FTS.B

,

Zero

Cpn

,

12/28/33

..

$

732

$

35

5595624.SQ.FTS.B

,

Zero

Cpn

,

12/28/33

..

789

19

5597497.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

1,451

93

5597681.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

1,000

67

5598844.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

204

20

5599728.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

4,867

365

5600496.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

419

32

5600526.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

1,008

15

5600632.SQ.FTS.B

,

Zero

Cpn

,

12/29/33

..

3,133

76

5611517.SQ.FTS.B

,

Zero

Cpn

,

12/30/33

..

2,001

153

5612507.SQ.FTS.B

,

Zero

Cpn

,

12/30/33

..

11,600

684

5614938.SQ.FTS.B

,

Zero

Cpn

,

1/01/34

...

2,379

102

5616046.SQ.FTS.B

,

Zero

Cpn

,

1/01/34

...

1,631

48

5616216.SQ.FTS.B

,

Zero

Cpn

,

1/01/34

...

5,841

179

5618116.SQ.FTS.B

,

Zero

Cpn

,

1/02/34

...

8,099

499

5618863.SQ.FTS.B

,

Zero

Cpn

,

1/03/34

...

1,492

80

5619464.SQ.FTS.B

,

Zero

Cpn

,

1/04/34

...

646

32

5619959.SQ.FTS.B

,

Zero

Cpn

,

1/04/34

...

2,374

188

5620066.SQ.FTS.B

,

Zero

Cpn

,

1/04/34

...

2,868

94

5623363.SQ.FTS.B

,

Zero

Cpn

,

1/05/34

...

10,990

720

5624299.SQ.FTS.B

,

Zero

Cpn

,

1/05/34

...

6,091

296

5630151.SQ.FTS.B

,

Zero

Cpn

,

1/06/34

...

506

48

5647775.SQ.FTS.B

,

Zero

Cpn

,

1/07/34

...

1,305

40

5652373.SQ.FTS.B

,

Zero

Cpn

,

1/08/34

...

122

13

5654133.SQ.FTS.B

,

Zero

Cpn

,

1/08/34

...

32,774

2,068

5655643.SQ.FTS.B

,

Zero

Cpn

,

1/09/34

...

4,363

114

5655850.SQ.FTS.B

,

Zero

Cpn

,

1/09/34

...

906

51

5656207.SQ.FTS.B

,

Zero

Cpn

,

1/09/34

...

8,733

467

5662691.SQ.FTS.B

,

Zero

Cpn

,

1/11/34

...

573

49

5663245.SQ.FTS.B

,

Zero

Cpn

,

1/11/34

...

500

35

5663983.SQ.FTS.B

,

Zero

Cpn

,

1/11/34

...

461

33

5666806.SQ.FTS.B

,

Zero

Cpn

,

1/12/34

...

13,430

884

5671581.SQ.FTS.B

,

Zero

Cpn

,

1/12/34

...

18,583

1,279

5672653.SQ.FTS.B

,

Zero

Cpn

,

1/13/34

...

6,038

490

5673210.SQ.FTS.B

,

Zero

Cpn

,

1/13/34

...

2,838

136

5675130.SQ.FTS.B

,

Zero

Cpn

,

1/13/34

...

490

37

5689248.SQ.FTS.B

,

Zero

Cpn

,

1/14/34

...

1,934

115

5694816.SQ.FTS.B

,

Zero

Cpn

,

1/14/34

...

1,074

36

5694969.SQ.FTS.B

,

Zero

Cpn

,

1/14/34

...

262

23

5695450.SQ.FTS.B

,

Zero

Cpn

,

1/14/34

...

26,182

1,689

5696963.SQ.FTS.B

,

Zero

Cpn

,

1/15/34

...

8,836

284

5700306.SQ.FTS.B

,

Zero

Cpn

,

1/15/34

...

461

16

5700432.SQ.FTS.B

,

Zero

Cpn

,

1/15/34

...

929

52

5703401.SQ.FTS.B

,

Zero

Cpn

,

1/17/34

...

1,653

61

5703743.SQ.FTS.B

,

Zero

Cpn

,

1/17/34

...

1,220

71

5706022.SQ.FTS.B

,

Zero

Cpn

,

1/18/34

...

194

18

5708392.SQ.FTS.B

,

Zero

Cpn

,

1/18/34

...

9,171

537

5708905.SQ.FTS.B

,

Zero

Cpn

,

1/18/34

...

553

18

5709449.SQ.FTS.B

,

Zero

Cpn

,

1/18/34

...

299

18

5709549.SQ.FTS.B

,

Zero

Cpn

,

1/18/34

...

12,160

320

5721102.SQ.FTS.B

,

Zero

Cpn

,

1/20/34

...

1,302

44

5728577.SQ.FTS.B

,

Zero

Cpn

,

1/21/34

...

3,241

118

5730277.SQ.FTS.B

,

Zero

Cpn

,

1/21/34

...

252

16

5731303.SQ.FTS.B

,

Zero

Cpn

,

1/22/34

...

1,418

104

5732624.SQ.FTS.B

,

Zero

Cpn

,

1/22/34

...

11,619

374

5735573.SQ.FTS.B

,

Zero

Cpn

,

1/24/34

...

5,816

297

5737632.SQ.FTS.B

,

Zero

Cpn

,

1/25/34

...

5,796

200

5741303.SQ.FTS.B

,

Zero

Cpn

,

1/26/34

...

2,044

203

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5741694.SQ.FTS.B

,

Zero

Cpn

,

1/26/34

...

$

735

$

76

5745113.SQ.FTS.B

,

Zero

Cpn

,

1/27/34

...

545

70

5751520.SQ.FTS.B

,

Zero

Cpn

,

1/28/34

...

2,991

58

5752156.SQ.FTS.B

,

Zero

Cpn

,

1/28/34

...

968

34

5754310.SQ.FTS.B

,

Zero

Cpn

,

1/29/34

...

1,070

86

5754783.SQ.FTS.B

,

Zero

Cpn

,

1/29/34

...

2,196

181

5755879.SQ.FTS.B

,

Zero

Cpn

,

1/29/34

...

3,639

313

5756610.SQ.FTS.B

,

Zero

Cpn

,

1/29/34

...

4,556

436

5757607.SQ.FTS.B

,

Zero

Cpn

,

1/31/34

...

9,346

183

5758291.SQ.FTS.B

,

Zero

Cpn

,

2/01/34

...

5,772

235

5759456.SQ.FTS.B

,

Zero

Cpn

,

2/01/34

...

508

37

5760954.SQ.FTS.B

,

Zero

Cpn

,

2/01/34

...

2,824

212

5763172.SQ.FTS.B

,

Zero

Cpn

,

2/02/34

...

3,259

206

5767488.SQ.FTS.B

,

Zero

Cpn

,

2/03/34

...

1,233

114

5771803.SQ.FTS.B

,

Zero

Cpn

,

2/04/34

...

173

13

5773116.SQ.FTS.B

,

Zero

Cpn

,

2/04/34

...

3,729

168

5777772.SQ.FTS.B

,

Zero

Cpn

,

2/05/34

...

8,178

496

5778008.SQ.FTS.B

,

Zero

Cpn

,

2/05/34

...

4,729

440

5780501.SQ.FTS.B

,

Zero

Cpn

,

2/07/34

...

397

44

5781951.SQ.FTS.B

,

Zero

Cpn

,

2/08/34

...

4,019

352

5784874.SQ.FTS.B

,

Zero

Cpn

,

2/09/34

...

3,818

148

5792518.SQ.FTS.B

,

Zero

Cpn

,

2/10/34

...

16,456

405

5802478.SQ.FTS.B

,

Zero

Cpn

,

2/11/34

...

7,637

644

5806252.SQ.FTS.B

,

Zero

Cpn

,

2/11/34

...

1,353

131

5809201.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

718

38

5810852.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

3,602

271

5812068.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

2,493

364

5812645.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

21,862

824

5813184.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

1,676

93

5813253.SQ.FTS.B

,

Zero

Cpn

,

2/12/34

...

7,311

653

5813462.SQ.FTS.B

,

Zero

Cpn

,

2/13/34

...

1,394

106

5814016.SQ.FTS.B

,

Zero

Cpn

,

2/13/34

...

2,868

273

5814576.SQ.FTS.B

,

Zero

Cpn

,

2/14/34

...

2,223

219

5815447.SQ.FTS.B

,

Zero

Cpn

,

2/15/34

...

3,680

166

5816945.SQ.FTS.B

,

Zero

Cpn

,

2/15/34

...

4,384

525

5817070.SQ.FTS.B

,

Zero

Cpn

,

2/15/34

...

30,140

2,047

5823030.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

595

73

5823283.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

18

1

5823345.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

1,884

125

5824742.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

3,323

146

5825002.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

35,998

1,449

5825354.SQ.FTS.B

,

Zero

Cpn

,

2/17/34

...

4,925

294

5827842.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

7,668

251

5828926.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

17,907

1,696

5829638.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

609

74

5830080.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

319

34

5830440.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

2,577

249

5830672.SQ.FTS.B

,

Zero

Cpn

,

2/18/34

...

2,417

305

5831833.SQ.FTS.B

,

Zero

Cpn

,

2/19/34

...

820

120

5832209.SQ.FTS.B

,

Zero

Cpn

,

2/19/34

...

26,120

1,367

5832576.SQ.FTS.B

,

Zero

Cpn

,

2/19/34

...

154

12

5832609.SQ.FTS.B

,

Zero

Cpn

,

2/19/34

...

2,194

214

5834294.SQ.FTS.B

,

Zero

Cpn

,

2/20/34

...

502

52

5834318.SQ.FTS.B

,

Zero

Cpn

,

2/20/34

...

8,185

809

5835079.SQ.FTS.B

,

Zero

Cpn

,

2/20/34

...

683

36

5837211.SQ.FTS.B

,

Zero

Cpn

,

2/22/34

...

2,901

345

5837252.SQ.FTS.B

,

Zero

Cpn

,

2/22/34

...

1,427

62

5837315.SQ.FTS.B

,

Zero

Cpn

,

2/22/34

...

4,547

133

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5839815.SQ.FTS.B

,

Zero

Cpn

,

2/23/34

...

$

615

$

51

5840394.SQ.FTS.B

,

Zero

Cpn

,

2/23/34

...

7,735

416

5840821.SQ.FTS.B

,

Zero

Cpn

,

2/23/34

...

732

83

5842093.SQ.FTS.B

,

Zero

Cpn

,

2/23/34

...

1,240

131

5842110.SQ.FTS.B

,

Zero

Cpn

,

2/23/34

...

218

13

5848551.SQ.FTS.B

,

Zero

Cpn

,

2/25/34

...

1,094

175

5850831.SQ.FTS.B

,

Zero

Cpn

,

2/25/34

...

1,937

221

5851647.SQ.FTS.B

,

Zero

Cpn

,

2/25/34

...

1,396

193

5852027.SQ.FTS.B

,

Zero

Cpn

,

2/26/34

...

1,600

108

5852610.SQ.FTS.B

,

Zero

Cpn

,

2/26/34

...

228

19

5853740.SQ.FTS.B

,

Zero

Cpn

,

2/26/34

...

2,104

108

5853859.SQ.FTS.B

,

Zero

Cpn

,

2/26/34

...

13,820

1,600

5854311.SQ.FTS.B

,

Zero

Cpn

,

2/26/34

...

1,493

174

5855240.SQ.FTS.B

,

Zero

Cpn

,

2/27/34

...

6,098

676

5855858.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

422

38

5855911.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

2,925

290

5856353.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

1,257

192

5856586.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

3,867

237

5857039.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

219

25

5861125.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

619

30

5861134.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

14,061

1,584

5862630.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

5,065

515

5862693.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

1,048

127

5866568.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

2,638

284

5866864.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

2,965

317

5866944.SQ.FTS.B

,

Zero

Cpn

,

2/28/34

...

4,540

804

5872494.SQ.FTS.B

,

Zero

Cpn

,

3/01/34

...

3,839

636

5872625.SQ.FTS.B

,

Zero

Cpn

,

3/01/34

...

213

18

5873189.SQ.FTS.B

,

Zero

Cpn

,

3/01/34

...

179

12

5873819.SQ.FTS.B

,

Zero

Cpn

,

3/01/34

...

1,232

131

5874329.SQ.FTS.B

,

Zero

Cpn

,

3/02/34

...

785

41

5874482.SQ.FTS.B

,

Zero

Cpn

,

3/02/34

...

657

31

5874516.SQ.FTS.B

,

Zero

Cpn

,

3/02/34

...

408

74

5877063.SQ.FTS.B

,

Zero

Cpn

,

3/02/34

...

173

21

5877776.SQ.FTS.B

,

Zero

Cpn

,

3/03/34

...

691

34

5878846.SQ.FTS.B

,

Zero

Cpn

,

3/05/34

...

356

44

5883334.SQ.FTS.B

,

Zero

Cpn

,

3/07/34

...

1,109

112

5884477.SQ.FTS.B

,

Zero

Cpn

,

3/07/34

...

988

88

5885192.SQ.FTS.B

,

Zero

Cpn

,

3/07/34

...

2,394

132

5888881.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

38

5

5889080.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

771

77

5889273.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

898

174

5889436.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

14,724

929

5889597.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

1,055

58

5889875.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

97

5

5889976.SQ.FTS.B

,

Zero

Cpn

,

3/08/34

...

1,829

219

5892624.SQ.FTS.B

,

Zero

Cpn

,

3/09/34

...

976

124

5893541.SQ.FTS.B

,

Zero

Cpn

,

3/09/34

...

4,112

196

5893815.SQ.FTS.B

,

Zero

Cpn

,

3/09/34

...

1,195

33

5893929.SQ.FTS.B

,

Zero

Cpn

,

3/09/34

...

788

41

5894091.SQ.FTS.B

,

Zero

Cpn

,

3/09/34

...

2,167

109

5898320.SQ.FTS.B

,

Zero

Cpn

,

3/12/34

...

8,262

926

5898769.SQ.FTS.B

,

Zero

Cpn

,

3/12/34

...

7,592

1,476

5900390.SQ.FTS.B

,

Zero

Cpn

,

3/13/34

...

13,495

2,347

5900600.SQ.FTS.B

,

Zero

Cpn

,

3/13/34

...

7,701

602

5900989.SQ.FTS.B

,

Zero

Cpn

,

3/13/34

...

5,386

584

5903864.SQ.FTS.B

,

Zero

Cpn

,

3/14/34

...

2,296

65

5910869.SQ.FTS.B

,

Zero

Cpn

,

3/16/34

...

2,202

299

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5911495.SQ.FTS.B

,

Zero

Cpn

,

3/16/34

...

$

40,359

$

7,855

5913989.SQ.FTS.B

,

Zero

Cpn

,

3/17/34

...

1,386

173

5914387.SQ.FTS.B

,

Zero

Cpn

,

3/18/34

...

64

6

5914396.SQ.FTS.B

,

Zero

Cpn

,

3/18/34

...

1,467

79

5915505.SQ.FTS.B

,

Zero

Cpn

,

3/19/34

...

16,318

1,976

5917707.SQ.FTS.B

,

Zero

Cpn

,

3/19/34

...

3,053

399

5918081.SQ.FTS.B

,

Zero

Cpn

,

3/19/34

...

621

85

5918534.SQ.FTS.B

,

Zero

Cpn

,

3/19/34

...

7,225

1,120

5921285.SQ.FTS.B

,

Zero

Cpn

,

3/20/34

...

2,698

442

5921918.SQ.FTS.B

,

Zero

Cpn

,

3/20/34

...

11,547

1,259

5923022.SQ.FTS.B

,

Zero

Cpn

,

3/21/34

...

1,435

189

5924262.SQ.FTS.B

,

Zero

Cpn

,

3/21/34

...

226

14

5928081.SQ.FTS.B

,

Zero

Cpn

,

3/22/34

...

215

45

5928628.SQ.FTS.B

,

Zero

Cpn

,

3/22/34

...

697

42

5930851.SQ.FTS.B

,

Zero

Cpn

,

3/23/34

...

2,960

600

5932633.SQ.FTS.B

,

Zero

Cpn

,

3/23/34

...

355

22

5934044.SQ.FTS.B

,

Zero

Cpn

,

3/24/34

...

265

56

5934059.SQ.FTS.B

,

Zero

Cpn

,

3/24/34

...

1,242

62

5934219.SQ.FTS.B

,

Zero

Cpn

,

3/24/34

...

22,371

4,347

5934701.SQ.FTS.B

,

Zero

Cpn

,

3/25/34

...

433

44

5934730.SQ.FTS.B

,

Zero

Cpn

,

3/25/34

...

2,564

81

5936923.SQ.FTS.B

,

Zero

Cpn

,

3/26/34

...

9,927

485

5937124.SQ.FTS.B

,

Zero

Cpn

,

3/26/34

...

181

11

5938584.SQ.FTS.B

,

Zero

Cpn

,

3/26/34

...

6,806

733

5940809.SQ.FTS.B

,

Zero

Cpn

,

3/27/34

...

233

15

5941367.SQ.FTS.B

,

Zero

Cpn

,

3/27/34

...

4,768

995

5943947.SQ.FTS.B

,

Zero

Cpn

,

3/28/34

...

1,308

82

5945082.SQ.FTS.B

,

Zero

Cpn

,

3/28/34

...

2,501

357

5945214.SQ.FTS.B

,

Zero

Cpn

,

3/28/34

...

656

113

5950686.SQ.FTS.B

,

Zero

Cpn

,

3/29/34

...

810

117

5950688.SQ.FTS.B

,

Zero

Cpn

,

3/29/34

...

4,990

1,029

5953097.SQ.FTS.B

,

Zero

Cpn

,

3/30/34

...

885

101

5954440.SQ.FTS.B

,

Zero

Cpn

,

3/30/34

...

7,514

861

5956268.SQ.FTS.B

,

Zero

Cpn

,

4/02/34

...

609

72

5956650.SQ.FTS.B

,

Zero

Cpn

,

4/02/34

...

619

86

5956888.SQ.FTS.B

,

Zero

Cpn

,

4/02/34

...

2,980

415

5959009.SQ.FTS.B

,

Zero

Cpn

,

4/03/34

...

256

39

5959931.SQ.FTS.B

,

Zero

Cpn

,

4/03/34

...

1,644

276

5959978.SQ.FTS.B

,

Zero

Cpn

,

4/03/34

...

1,679

238

5960434.SQ.FTS.B

,

Zero

Cpn

,

4/03/34

...

375

39

5962409.SQ.FTS.B

,

Zero

Cpn

,

4/04/34

...

274

45

5964109.SQ.FTS.B

,

Zero

Cpn

,

4/05/34

...

3,134

513

5964730.SQ.FTS.B

,

Zero

Cpn

,

4/05/34

...

225

38

5966156.SQ.FTS.B

,

Zero

Cpn

,

4/05/34

...

4,893

455

5975969.SQ.FTS.B

,

Zero

Cpn

,

4/07/34

...

2,042

136

5977024.SQ.FTS.B

,

Zero

Cpn

,

4/07/34

...

234

16

5977392.SQ.FTS.B

,

Zero

Cpn

,

4/07/34

...

141

21

5979619.SQ.FTS.B

,

Zero

Cpn

,

4/10/34

...

1,908

446

5980129.SQ.FTS.B

,

Zero

Cpn

,

4/10/34

...

695

78

5981924.SQ.FTS.B

,

Zero

Cpn

,

4/11/34

...

12,026

1,318

5983705.SQ.FTS.B

,

Zero

Cpn

,

4/11/34

...

4,402

446

5983869.SQ.FTS.B

,

Zero

Cpn

,

4/11/34

...

2,783

556

5986027.SQ.FTS.B

,

Zero

Cpn

,

4/12/34

...

3,601

196

5989473.SQ.FTS.B

,

Zero

Cpn

,

4/13/34

...

269

65

5991404.SQ.FTS.B

,

Zero

Cpn

,

4/13/34

...

5,944

1,230

5993795.SQ.FTS.B

,

Zero

Cpn

,

4/14/34

...

414

64

5995769.SQ.FTS.B

,

Zero

Cpn

,

4/14/34

...

4,698

359

5995853.SQ.FTS.B

,

Zero

Cpn

,

4/14/34

...

7,553

643

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

75

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5996582.SQ.FTS.B

,

Zero

Cpn

,

4/15/34

...

$

330

$

23

5996999.SQ.FTS.B

,

Zero

Cpn

,

4/15/34

...

278

56

6000328.SQ.FTS.B

,

Zero

Cpn

,

4/17/34

...

2,618

244

6001519.SQ.FTS.B

,

Zero

Cpn

,

4/18/34

...

1,070

189

6010572.SQ.FTS.B

,

Zero

Cpn

,

4/20/34

...

6,145

726

6010705.SQ.FTS.B

,

Zero

Cpn

,

4/20/34

...

4,090

709

6011639.SQ.FTS.B

,

Zero

Cpn

,

4/20/34

...

1,277

256

6012819.SQ.FTS.B

,

Zero

Cpn

,

4/21/34

...

648

132

6012841.SQ.FTS.B

,

Zero

Cpn

,

4/21/34

...

1,428

227

6015748.SQ.FTS.B

,

Zero

Cpn

,

4/21/34

...

3,151

139

6016109.SQ.FTS.B

,

Zero

Cpn

,

4/22/34

...

2,358

481

6021430.SQ.FTS.B

,

Zero

Cpn

,

4/25/34

...

7,187

1,124

6023977.SQ.FTS.B

,

Zero

Cpn

,

4/25/34

...

871

180

6024354.SQ.FTS.B

,

Zero

Cpn

,

4/26/34

...

13,543

3,201

6026339.SQ.FTS.B

,

Zero

Cpn

,

4/26/34

...

23,713

7,412

6027029.SQ.FTS.B

,

Zero

Cpn

,

4/26/34

...

6,624

1,248

6032854.SQ.FTS.B

,

Zero

Cpn

,

4/27/34

...

8,867

1,998

6037378.SQ.FTS.B

,

Zero

Cpn

,

4/29/34

...

732

72

6038361.SQ.FTS.B

,

Zero

Cpn

,

4/30/34

...

2,968

686

6043250.SQ.FTS.B

,

Zero

Cpn

,

5/01/34

...

653

65

6048065.SQ.FTS.B

,

Zero

Cpn

,

5/02/34

...

5,799

2,090

6052148.SQ.FTS.B

,

Zero

Cpn

,

5/03/34

...

92

10

6057823.SQ.FTS.B

,

Zero

Cpn

,

5/04/34

...

17,364

4,407

6058385.SQ.FTS.B

,

Zero

Cpn

,

5/05/34

...

8

2

6063087.SQ.FTS.B

,

Zero

Cpn

,

5/07/34

...

4,299

1,136

6064155.SQ.FTS.B

,

Zero

Cpn

,

5/08/34

...

1,041

226

6064260.SQ.FTS.B

,

Zero

Cpn

,

5/08/34

...

1,162

505

6064464.SQ.FTS.B

,

Zero

Cpn

,

5/08/34

...

3,001

343

6066945.SQ.FTS.B

,

Zero

Cpn

,

5/08/34

...

1,166

473

6111911.SQ.FTS.B

,

Zero

Cpn

,

5/09/34

...

1,257

317

6120978.SQ.FTS.B

,

Zero

Cpn

,

5/10/34

...

836

225

6122683.SQ.FTS.B

,

Zero

Cpn

,

5/10/34

...

9,407

690

6122851.SQ.FTS.B

,

Zero

Cpn

,

5/10/34

...

5,276

548

6123828.SQ.FTS.B

,

Zero

Cpn

,

5/10/34

...

15,343

4,126

6125411.SQ.FTS.B

,

Zero

Cpn

,

5/11/34

...

26,743

4,695

6126543.SQ.FTS.B

,

Zero

Cpn

,

5/12/34

...

678

86

6127052.SQ.FTS.B

,

Zero

Cpn

,

5/13/34

...

2,897

283

6127148.SQ.FTS.B

,

Zero

Cpn

,

5/13/34

...

2,149

846

6127262.SQ.FTS.B

,

Zero

Cpn

,

5/13/34

...

617

204

6134462.SQ.FTS.B

,

Zero

Cpn

,

5/15/34

...

5,519

1,557

6143084.SQ.FTS.B

,

Zero

Cpn

,

5/17/34

...

622

48

6143325.SQ.FTS.B

,

Zero

Cpn

,

5/18/34

...

313

148

6145383.SQ.FTS.B

,

Zero

Cpn

,

5/18/34

...

25,311

2,896

6145899.SQ.FTS.B

,

Zero

Cpn

,

5/18/34

...

830

557

6147104.SQ.FTS.B

,

Zero

Cpn

,

5/19/34

...

7,588

1,646

6147718.SQ.FTS.B

,

Zero

Cpn

,

5/20/34

...

3,362

658

6147775.SQ.FTS.B

,

Zero

Cpn

,

5/20/34

...

1,022

184

6147847.SQ.FTS.B

,

Zero

Cpn

,

5/20/34

...

146

76

6148142.SQ.FTS.B

,

Zero

Cpn

,

5/20/34

...

472

210

6149268.SQ.FTS.B

,

Zero

Cpn

,

5/21/34

...

3,411

487

6149657.SQ.FTS.B

,

Zero

Cpn

,

5/21/34

...

8,931

2,065

6153029.SQ.FTS.B

,

Zero

Cpn

,

5/22/34

...

97

45

6154074.SQ.FTS.B

,

Zero

Cpn

,

5/22/34

...

4,237

1,340

6155652.SQ.FTS.B

,

Zero

Cpn

,

5/22/34

...

1,007

509

6159444.SQ.FTS.B

,

Zero

Cpn

,

5/23/34

...

908

373

6159521.SQ.FTS.B

,

Zero

Cpn

,

5/23/34

...

2,207

673

6160108.SQ.FTS.B

,

Zero

Cpn

,

5/23/34

...

2,183

277

6160262.SQ.FTS.B

,

Zero

Cpn

,

5/23/34

...

4,566

1,607

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6161261.SQ.FTS.B

,

Zero

Cpn

,

5/24/34

...

$

1,545

$

138

6162505.SQ.FTS.B

,

Zero

Cpn

,

5/25/34

...

3,884

273

6163434.SQ.FTS.B

,

Zero

Cpn

,

5/25/34

...

1,152

404

6164819.SQ.FTS.B

,

Zero

Cpn

,

5/26/34

...

480

99

6164962.SQ.FTS.B

,

Zero

Cpn

,

5/26/34

...

3,150

599

6165709.SQ.FTS.B

,

Zero

Cpn

,

5/27/34

...

647

252

6168721.SQ.FTS.B

,

Zero

Cpn

,

5/28/34

...

15,167

5,728

6169262.SQ.FTS.B

,

Zero

Cpn

,

5/28/34

...

424

259

6169516.SQ.FTS.B

,

Zero

Cpn

,

5/28/34

...

841

303

6173073.SQ.FTS.B

,

Zero

Cpn

,

5/29/34

...

2,399

639

6173109.SQ.FTS.B

,

Zero

Cpn

,

5/29/34

...

2,315

1,025

23,955,327

Freedom

Financial

Asset

Management

LLC

APP-16681389.FP.FTS.B

,

5

.99

%

,

9/01/24

.

949

951

APP-16681827.FP.FTS.B

,

5

.99

%

,

9/01/24

.

1,750

1,755

APP-16688861.FP.FTS.B

,

5

.99

%

,

9/01/24

.

1,883

1,888

APP-16660226.FP.FTS.B

,

5

.99

%

,

9/14/24

.

899

901

APP-16682744.FP.FTS.B

,

11

.24

%

,

9/14/24

3,930

3,948

APP-16652913.FP.FTS.B

,

16

.24

%

,

9/14/24

8,047

8,115

APP-16473194.FP.FTS.B

,

10

.74

%

,

9/18/24

2,665

2,679

APP-17451429.FP.FTS.B

,

5

.99

%

,

9/24/24

.

2,443

2,458

APP-16336846.FP.FTS.B

,

14

.24

%

,

9/24/24

3,663

3,686

APP-17490514.FP.FTS.B

,

5

.99

%

,

9/27/24

.

935

939

APP-10901539.FP.FTS.B

,

15

.49

%

,

11/27/24

5,689

5,760

APP-10784743.FP.FTS.B

,

23

.99

%

,

11/28/24

1,273

1,287

APP-11694740.FP.FTS.B

,

7

.49

%

,

12/15/24

4,603

4,627

APP-11731526.FP.FTS.B

,

16

.49

%

,

12/21/24

3,508

3,554

APP-11798754.FP.FTS.B

,

6

.99

%

,

1/22/25

.

8,082

8,144

APP-12148090.FP.FTS.B

,

9

.74

%

,

1/22/25

.

4,987

5,024

APP-12179908.FP.FTS.B

,

18

.99

%

,

1/23/25

3,031

3,076

APP-12087415.FP.FTS.B

,

12

.99

%

,

1/25/25

7,555

7,664

APP-11924017.FP.FTS.B

,

15

.99

%

,

1/28/25

5,307

5,357

APP-11509368.FP.FTS.B

,

14

.99

%

,

1/29/25

6,750

6,845

APP-12414484.FP.FTS.B

,

17

.24

%

,

2/02/25

10,549

10,632

APP-12287483.FP.FTS.B

,

12

.99

%

,

2/03/25

7,239

7,291

APP-11733782.FP.FTS.B

,

15

.74

%

,

2/03/25

6,411

6,453

APP-12175602.FP.FTS.B

,

17

.49

%

,

2/25/25

4,158

4,224

APP-12029075.FP.FTS.B

,

15

.99

%

,

3/05/25

6,642

6,683

APP-12124683.FP.FTS.B

,

16

.99

%

,

3/06/25

3,944

3,961

APP-12172939.FP.FTS.B

,

9

.74

%

,

3/07/25

.

3,132

3,139

APP-10156554.FP.FTS.B

,

9

.49

%

,

3/08/25

.

7,942

7,994

APP-12168882.FP.FTS.B

,

17

.49

%

,

3/08/25

8,190

8,255

APP-12031531.FP.FTS.B

,

20

.99

%

,

3/08/25

5,455

5,483

APP-12139801.FP.FTS.B

,

9

.49

%

,

3/11/25

.

6,770

6,818

APP-11853561.FP.FTS.B

,

17

.99

%

,

3/18/25

5,098

5,156

APP-12413819.FP.FTS.B

,

16

.99

%

,

3/21/25

3,800

3,848

APP-12106203.FP.FTS.B

,

9

.74

%

,

3/22/25

.

6,058

6,108

APP-12270743.FP.FTS.B

,

16

.49

%

,

3/22/25

5,711

5,779

APP-12381356.FP.FTS.B

,

9

.74

%

,

3/24/25

.

4,893

4,932

APP-12414413.FP.FTS.B

,

17

.99

%

,

3/25/25

5,766

5,854

APP-12185763.FP.FTS.B

,

12

.99

%

,

5/08/25

11,173

3,939

APP-15099844.FP.FTS.B

,

19

.99

%

,

7/15/25

7,313

7,356

APP-15063599.FP.FTS.B

,

8

.24

%

,

7/23/25

.

10,733

10,831

APP-12210758.FP.FTS.B

,

22

.49

%

,

7/25/25

2,190

2,204

APP-15073908.FP.FTS.B

,

22

.74

%

,

7/25/25

2,460

2,454

APP-15052562.FP.FTS.B

,

10

.24

%

,

7/29/25

14,108

14,258

APP-17112174.FP.FTS.B

,

11

.74

%

,

8/12/25

6,179

6,226

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-10157776.FP.FTS.B

,

22

.49

%

,

8/13/25

$

9,415

$

9,682

APP-17041993.FP.FTS.B

,

13

.74

%

,

9/05/25

17,494

17,632

APP-17017611.FP.FTS.B

,

11

.99

%

,

9/06/25

20,389

20,534

APP-16692788.FP.FTS.B

,

10

.74

%

,

9/10/25

5,833

5,880

APP-16716169.FP.FTS.B

,

9

.49

%

,

9/14/25

.

7,590

7,657

APP-17284270.FP.FTS.B

,

13

.74

%

,

9/15/25

19,819

19,964

APP-16721812.FP.FTS.B

,

14

.24

%

,

9/15/25

6,879

6,938

APP-16622583.FP.FTS.B

,

15

.99

%

,

9/16/25

6,885

6,908

APP-17495714.FP.FTS.B

,

11

.74

%

,

9/26/25

7,385

7,461

APP-15077310.FP.FTS.B

,

25

.49

%

,

9/29/25

5,863

4,923

APP-10833798.FP.FTS.B

,

15

.99

%

,

10/18/25

9,006

9,281

APP-11579289.FP.FTS.B

,

10

.99

%

,

12/05/25

6,046

6,116

APP-10861885.FP.FTS.B

,

15

.49

%

,

12/17/25

10,493

10,678

APP-11737115.FP.FTS.B

,

12

.49

%

,

12/18/25

7,280

7,393

APP-11531737.FP.FTS.B

,

13

.99

%

,

12/22/25

6,487

6,596

APP-11442801.FP.FTS.B

,

16

.49

%

,

12/22/25

9,444

9,750

APP-10314724.FP.FTS.B

,

11

.74

%

,

1/08/26

9,569

9,652

APP-12165054.FP.FTS.B

,

10

.24

%

,

1/14/26

9,191

9,312

APP-12174416.FP.FTS.B

,

10

.24

%

,

1/22/26

9,984

10,146

APP-12171910.FP.FTS.B

,

12

.49

%

,

1/22/26

7,876

8,003

APP-11799040.FP.FTS.B

,

15

.74

%

,

1/22/26

19,465

20,004

APP-12006366.FP.FTS.B

,

20

.99

%

,

1/22/26

5,379

5,584

APP-11687753.FP.FTS.B

,

13

.49

%

,

1/25/26

10,988

11,202

APP-11595092.FP.FTS.B

,

19

.49

%

,

2/05/26

21,756

22,461

APP-12168235.FP.FTS.B

,

19

.49

%

,

2/23/26

4,908

5,072

APP-12139578.FP.FTS.B

,

15

.24

%

,

2/24/26

5,984

6,083

APP-12119897.FP.FTS.B

,

10

.24

%

,

2/28/26

10,900

11,083

APP-12176488.FP.FTS.B

,

14

.99

%

,

3/04/26

11,983

2,239

APP-12050179.FP.FTS.B

,

16

.49

%

,

3/07/26

9,195

9,364

APP-12128364.FP.FTS.B

,

13

.24

%

,

3/08/26

9,529

9,618

APP-12463162.FP.FTS.B

,

18

.49

%

,

3/10/26

8,799

9,035

APP-12209184.FP.FTS.B

,

19

.49

%

,

3/11/26

2,549

2,552

APP-12287014.FP.FTS.B

,

16

.99

%

,

3/15/26

8,542

8,768

APP-12397804.FP.FTS.B

,

16

.99

%

,

3/16/26

6,887

7,072

APP-12400371.FP.FTS.B

,

16

.99

%

,

3/16/26

8,580

8,730

APP-12431691.FP.FTS.B

,

9

.49

%

,

3/20/26

.

15,509

15,752

APP-12286988.FP.FTS.B

,

10

.99

%

,

3/21/26

24,641

25,029

APP-12443256.FP.FTS.B

,

16

.74

%

,

3/24/26

9,489

9,589

APP-12414591.FP.FTS.B

,

19

.49

%

,

3/24/26

5,412

5,593

APP-12414582.FP.FTS.B

,

18

.49

%

,

3/25/26

11,729

12,125

APP-12343526.FP.FTS.B

,

16

.99

%

,

5/21/26

15,743

16,190

APP-12199831.FP.FTS.B

,

16

.99

%

,

5/22/26

9,355

9,586

APP-15117837.FP.FTS.B

,

22

.24

%

,

7/15/26

9,742

10,035

APP-14891119.FP.FTS.B

,

18

.74

%

,

7/24/26

31,984

32,865

APP-15053612.FP.FTS.B

,

13

.99

%

,

7/26/26

7,182

7,312

APP-15053337.FP.FTS.B

,

17

.99

%

,

7/26/26

7,680

7,920

APP-15004884.FP.FTS.B

,

15

.99

%

,

7/27/26

16,931

17,279

APP-15119191.FP.FTS.B

,

18

.49

%

,

7/28/26

3,438

3,487

APP-14912105.FP.FTS.B

,

20

.99

%

,

7/29/26

13,547

1,995

APP-16636359.FP.FTS.B

,

14

.74

%

,

7/30/26

17,075

17,353

APP-16690474.FP.FTS.B

,

9

.24

%

,

8/01/26

.

18,821

19,077

APP-16637564.FP.FTS.B

,

15

.99

%

,

9/03/26

5,589

5,666

APP-16719236.FP.FTS.B

,

10

.49

%

,

9/04/26

11,397

11,557

APP-16676602.FP.FTS.B

,

11

.24

%

,

9/05/26

15,925

16,133

APP-10573456.FP.FTS.B

,

17

.49

%

,

9/10/26

9,660

5,516

APP-16630984.FP.FTS.B

,

14

.49

%

,

9/12/26

9,855

10,019

APP-17112604.FP.FTS.B

,

11

.74

%

,

9/15/26

16,134

16,353

APP-16335651.FP.FTS.B

,

14

.49

%

,

9/15/26

11,104

11,291

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-17464221.FP.FTS.B

,

16

.74

%

,

9/15/26

$

9,159

$

9,359

APP-17032039.FP.FTS.B

,

10

.49

%

,

9/16/26

16,472

16,728

APP-16710569.FP.FTS.B

,

15

.49

%

,

9/16/26

16,609

16,900

APP-10406165.FP.FTS.B

,

18

.99

%

,

9/20/26

10,020

10,326

APP-16275007.FP.FTS.B

,

12

.49

%

,

9/22/26

9,040

9,180

APP-17279512.FP.FTS.B

,

16

.74

%

,

9/22/26

9,954

10,175

APP-17112272.FP.FTS.B

,

14

.24

%

,

9/25/26

14,809

15,051

APP-17457461.FP.FTS.B

,

16

.74

%

,

9/27/26

9,442

9,676

APP-16632934.FP.FTS.B

,

14

.49

%

,

10/15/26

13,518

13,587

APP-11021919.FP.FTS.B

,

17

.99

%

,

11/03/26

11,241

11,618

APP-11381442.FP.FTS.B

,

20

.49

%

,

11/26/26

15,824

16,474

APP-11579549.FP.FTS.B

,

13

.49

%

,

12/15/26

28,695

29,205

APP-11737058.FP.FTS.B

,

22

.49

%

,

12/15/26

6,466

6,728

APP-11693245.FP.FTS.B

,

18

.49

%

,

12/18/26

13,343

13,927

APP-11719573.FP.FTS.B

,

19

.99

%

,

12/18/26

8,449

8,816

APP-11022370.FP.FTS.B

,

16

.49

%

,

12/20/26

6,616

6,749

APP-11733566.FP.FTS.B

,

19

.24

%

,

12/20/26

3,470

3,477

APP-11740523.FP.FTS.B

,

10

.99

%

,

12/21/26

14,760

15,023

APP-11694985.FP.FTS.B

,

12

.99

%

,

12/21/26

8,417

8,582

APP-11730592.FP.FTS.B

,

17

.99

%

,

12/21/26

26,916

27,906

APP-11723942.FP.FTS.B

,

19

.49

%

,

12/21/26

31,037

32,289

APP-11730543.FP.FTS.B

,

19

.99

%

,

12/22/26

9,183

9,516

APP-11401848.FP.FTS.B

,

15

.49

%

,

1/05/27

8,200

8,416

APP-12116526.FP.FTS.B

,

18

.99

%

,

1/05/27

9,711

9,954

APP-11146646.FP.FTS.B

,

12

.74

%

,

1/07/27

20,002

20,362

APP-11397497.FP.FTS.B

,

11

.99

%

,

1/10/27

14,533

14,817

APP-11410185.FP.FTS.B

,

22

.49

%

,

1/10/27

19,811

20,558

APP-11413059.FP.FTS.B

,

13

.74

%

,

1/11/27

8,187

8,344

APP-11946615.FP.FTS.B

,

16

.49

%

,

1/11/27

14,083

14,347

APP-12139980.FP.FTS.B

,

19

.99

%

,

1/15/27

1,904

1,909

APP-12032875.FP.FTS.B

,

11

.24

%

,

1/16/27

15,552

15,825

APP-12073890.FP.FTS.B

,

10

.99

%

,

1/20/27

13,529

13,757

APP-12132313.FP.FTS.B

,

11

.24

%

,

1/21/27

8,018

8,155

APP-12173162.FP.FTS.B

,

17

.49

%

,

1/21/27

10,563

10,866

APP-11798808.FP.FTS.B

,

10

.99

%

,

1/22/27

12,326

12,540

APP-12172519.FP.FTS.B

,

11

.24

%

,

1/22/27

9,258

9,418

APP-12154405.FP.FTS.B

,

14

.49

%

,

1/22/27

9,552

9,756

APP-12169743.FP.FTS.B

,

24

.24

%

,

1/22/27

20,349

21,191

APP-12186510.FP.FTS.B

,

9

.74

%

,

1/23/27

.

25,938

26,391

APP-12107351.FP.FTS.B

,

16

.49

%

,

1/23/27

14,234

14,745

APP-12105986.FP.FTS.B

,

10

.99

%

,

1/25/27

21,185

21,571

APP-12209707.FP.FTS.B

,

25

.49

%

,

1/25/27

7,618

7,953

APP-11595106.FP.FTS.B

,

13

.49

%

,

1/26/27

8,747

8,925

APP-11579435.FP.FTS.B

,

15

.49

%

,

1/28/27

12,082

12,505

APP-11694310.FP.FTS.B

,

16

.74

%

,

1/28/27

28,819

29,507

APP-11595260.FP.FTS.B

,

18

.99

%

,

1/29/27

9,737

10,114

APP-11700609.FP.FTS.B

,

19

.99

%

,

1/30/27

34,828

35,863

APP-12414657.FP.FTS.B

,

10

.99

%

,

2/01/27

22,862

23,196

APP-11705115.FP.FTS.B

,

21

.49

%

,

2/01/27

34,267

35,350

APP-11694211.FP.FTS.B

,

11

.99

%

,

2/04/27

31,825

32,511

APP-11724908.FP.FTS.B

,

12

.74

%

,

2/04/27

25,393

25,854

APP-11709701.FP.FTS.B

,

16

.49

%

,

2/04/27

9,691

9,883

APP-11725393.FP.FTS.B

,

17

.99

%

,

2/04/27

33,307

34,257

APP-11731565.FP.FTS.B

,

18

.99

%

,

2/04/27

15,337

9,752

APP-11732774.FP.FTS.B

,

19

.49

%

,

2/04/27

2,907

2,903

APP-11694359.FP.FTS.B

,

19

.99

%

,

2/04/27

7,858

4,509

APP-11660434.FP.FTS.B

,

20

.49

%

,

2/04/27

19,977

20,733

APP-11694079.FP.FTS.B

,

10

.99

%

,

2/05/27

13,699

13,936

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

77

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-11722179.FP.FTS.B

,

11

.99

%

,

2/05/27

$

17,592

$

17,901

APP-11740935.FP.FTS.B

,

13

.99

%

,

2/05/27

31,793

32,390

APP-11608429.FP.FTS.B

,

17

.49

%

,

2/05/27

26,547

27,113

APP-09759707.FP.FTS.B

,

18

.99

%

,

2/05/27

5,082

5,244

APP-11732543.FP.FTS.B

,

20

.99

%

,

2/05/27

4,658

1,199

APP-11742867.FP.FTS.B

,

23

.24

%

,

2/05/27

14,001

14,517

APP-12337990.FP.FTS.B

,

16

.49

%

,

2/07/27

5,303

5,394

APP-11738196.FP.FTS.B

,

21

.99

%

,

2/15/27

7,675

7,932

APP-12029572.FP.FTS.B

,

16

.99

%

,

2/24/27

12,564

12,986

APP-12159528.FP.FTS.B

,

18

.99

%

,

2/28/27

9,981

10,330

APP-12050224.FP.FTS.B

,

11

.74

%

,

3/01/27

27,077

27,505

APP-12168636.FP.FTS.B

,

13

.24

%

,

3/01/27

13,007

13,223

APP-12211243.FP.FTS.B

,

17

.24

%

,

3/01/27

24,351

24,917

APP-12107891.FP.FTS.B

,

17

.99

%

,

3/01/27

10,693

10,967

APP-12208717.FP.FTS.B

,

21

.74

%

,

3/01/27

17,333

17,828

APP-12150597.FP.FTS.B

,

25

.49

%

,

3/01/27

7,585

7,806

APP-12158633.FP.FTS.B

,

23

.24

%

,

3/02/27

14,177

14,602

APP-12005996.FP.FTS.B

,

15

.49

%

,

3/03/27

6,689

6,806

APP-12105218.FP.FTS.B

,

10

.99

%

,

3/05/27

16,865

4,847

APP-12214905.FP.FTS.B

,

16

.49

%

,

3/05/27

7,508

7,648

APP-12159801.FP.FTS.B

,

16

.99

%

,

3/05/27

18,551

19,095

APP-11741297.FP.FTS.B

,

19

.24

%

,

3/05/27

14,769

15,217

APP-12164096.FP.FTS.B

,

21

.49

%

,

3/05/27

9,870

10,204

APP-12050159.FP.FTS.B

,

13

.24

%

,

3/07/27

22,618

23,041

APP-12125835.FP.FTS.B

,

19

.99

%

,

3/07/27

3,930

3,926

APP-12140862.FP.FTS.B

,

8

.99

%

,

3/08/27

.

16,814

17,102

APP-12105970.FP.FTS.B

,

10

.99

%

,

3/08/27

14,361

14,610

APP-12155604.FP.FTS.B

,

11

.24

%

,

3/08/27

10,090

10,266

APP-12097459.FP.FTS.B

,

13

.24

%

,

3/08/27

16,347

16,654

APP-12106008.FP.FTS.B

,

13

.49

%

,

3/08/27

10,327

10,523

APP-12050743.FP.FTS.B

,

14

.99

%

,

3/08/27

9,038

9,165

APP-12432804.FP.FTS.B

,

13

.24

%

,

3/09/27

23,692

24,116

APP-11965580.FP.FTS.B

,

20

.49

%

,

3/09/27

20,000

6,589

APP-11508449.FP.FTS.B

,

8

.49

%

,

3/10/27

.

19,203

19,512

APP-12216897.FP.FTS.B

,

10

.99

%

,

3/10/27

25,318

25,726

APP-12203395.FP.FTS.B

,

22

.49

%

,

3/10/27

7,922

8,170

APP-12199670.FP.FTS.B

,

10

.99

%

,

3/11/27

20,565

20,882

APP-12459432.FP.FTS.B

,

13

.24

%

,

3/11/27

16,220

16,524

APP-12459441.FP.FTS.B

,

17

.49

%

,

3/11/27

11,405

11,702

APP-12210087.FP.FTS.B

,

18

.74

%

,

3/11/27

34,335

35,365

APP-12071137.FP.FTS.B

,

19

.99

%

,

3/11/27

18,851

19,448

APP-12460903.FP.FTS.B

,

10

.99

%

,

3/15/27

25,378

25,820

APP-12467297.FP.FTS.B

,

13

.24

%

,

3/15/27

20,379

20,779

APP-12291770.FP.FTS.B

,

16

.49

%

,

3/15/27

2,000

1,998

APP-12420649.FP.FTS.B

,

16

.74

%

,

3/15/27

28,587

29,183

APP-12379303.FP.FTS.B

,

13

.24

%

,

3/16/27

6,999

7,043

APP-12407602.FP.FTS.B

,

19

.99

%

,

3/16/27

3,596

3,596

APP-12462116.FP.FTS.B

,

17

.49

%

,

3/18/27

19,605

20,183

APP-11948900.FP.FTS.B

,

17

.74

%

,

3/18/27

29,801

30,680

APP-12418630.FP.FTS.B

,

17

.99

%

,

3/18/27

14,088

14,532

APP-12433361.FP.FTS.B

,

18

.49

%

,

3/18/27

12,817

13,291

APP-12461150.FP.FTS.B

,

18

.49

%

,

3/18/27

12,279

12,734

APP-12421799.FP.FTS.B

,

19

.74

%

,

3/18/27

17,859

18,324

APP-12463831.FP.FTS.B

,

19

.99

%

,

3/18/27

6,751

6,974

APP-12357813.FP.FTS.B

,

10

.99

%

,

3/20/27

20,375

20,755

APP-12287686.FP.FTS.B

,

11

.24

%

,

3/20/27

15,328

15,632

APP-12422648.FP.FTS.B

,

13

.24

%

,

3/20/27

15,073

15,380

APP-12380981.FP.FTS.B

,

13

.74

%

,

3/20/27

6,900

7,029

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12230901.FP.FTS.B

,

20

.24

%

,

3/20/27

$

36,114

$

37,242

APP-12412709.FP.FTS.B

,

20

.24

%

,

3/20/27

32,562

33,687

APP-12424835.FP.FTS.B

,

23

.99

%

,

3/20/27

23,294

24,266

APP-12459776.FP.FTS.B

,

10

.99

%

,

3/21/27

21,521

21,927

APP-12287335.FP.FTS.B

,

13

.24

%

,

3/21/27

14,116

14,404

APP-12450320.FP.FTS.B

,

19

.99

%

,

3/21/27

9,705

10,084

APP-12176796.FP.FTS.B

,

8

.99

%

,

3/22/27

.

17,524

17,823

APP-12345892.FP.FTS.B

,

13

.49

%

,

3/22/27

9,972

10,168

APP-12345261.FP.FTS.B

,

15

.49

%

,

3/22/27

16,331

16,831

APP-12270745.FP.FTS.B

,

17

.74

%

,

3/23/27

26,132

27,085

APP-12429877.FP.FTS.B

,

19

.74

%

,

3/23/27

20,846

21,620

APP-12435676.FP.FTS.B

,

20

.49

%

,

3/23/27

27,919

29,094

APP-12420863.FP.FTS.B

,

17

.49

%

,

3/24/27

12,992

13,412

APP-12468743.FP.FTS.B

,

18

.24

%

,

3/24/27

22,378

23,113

APP-12408200.FP.FTS.B

,

21

.74

%

,

3/24/27

6,230

6,260

APP-12468566.FP.FTS.B

,

19

.74

%

,

3/25/27

23,050

23,652

APP-11872544.FP.FTS.B

,

19

.99

%

,

3/25/27

9,542

9,939

APP-12175594.FP.FTS.B

,

18

.99

%

,

4/01/27

9,963

10,174

APP-11744076.FP.FTS.B

,

17

.49

%

,

4/05/27

18,478

2,294

APP-12172482.FP.FTS.B

,

20

.49

%

,

4/06/27

21,472

22,063

APP-12408935.FP.FTS.B

,

19

.99

%

,

4/17/27

4,488

4,517

APP-12033253.FP.FTS.B

,

17

.99

%

,

4/24/27

10,151

10,507

APP-12133804.FP.FTS.B

,

10

.99

%

,

4/30/27

14,652

14,895

APP-11709913.FP.FTS.B

,

21

.49

%

,

4/30/27

39,180

39,759

APP-12443158.FP.FTS.B

,

17

.49

%

,

5/22/27

8,780

9,014

APP-15016056.FP.FTS.B

,

19

.24

%

,

6/06/27

11,623

11,577

APP-14953646.FP.FTS.B

,

24

.24

%

,

7/06/27

33,053

33,696

APP-15007182.FP.FTS.B

,

16

.99

%

,

7/11/27

8,336

8,477

APP-15105817.FP.FTS.B

,

11

.74

%

,

7/15/27

15,392

15,634

APP-15110260.FP.FTS.B

,

13

.99

%

,

7/15/27

22,774

23,146

APP-15113452.FP.FTS.B

,

18

.49

%

,

7/15/27

9,482

9,679

APP-15103060.FP.FTS.B

,

19

.99

%

,

7/15/27

11,726

11,979

APP-14544639.FP.FTS.B

,

11

.99

%

,

7/21/27

10,548

10,731

APP-16662334.FP.FTS.B

,

15

.24

%

,

7/26/27

18,951

19,268

APP-15066733.FP.FTS.B

,

18

.99

%

,

7/26/27

10,523

10,849

APP-15116487.FP.FTS.B

,

21

.49

%

,

7/28/27

12,984

13,409

APP-16465567.FP.FTS.B

,

15

.49

%

,

7/30/27

11,198

11,394

APP-16645516.FP.FTS.B

,

10

.99

%

,

7/31/27

15,002

15,203

APP-12402250.FP.FTS.B

,

19

.99

%

,

7/31/27

19,747

20,128

APP-16640475.FP.FTS.B

,

12

.74

%

,

8/02/27

13,122

13,299

APP-16637899.FP.FTS.B

,

15

.49

%

,

8/02/27

14,140

14,333

APP-17319474.FP.FTS.B

,

16

.49

%

,

8/07/27

37,405

37,851

APP-17245315.FP.FTS.B

,

17

.74

%

,

8/09/27

7,946

8,074

APP-14523455.FP.FTS.B

,

17

.24

%

,

8/15/27

29,634

30,237

APP-15119411.FP.FTS.B

,

9

.74

%

,

8/28/27

.

16,801

17,117

APP-15106325.FP.FTS.B

,

23

.24

%

,

8/28/27

14,648

15,076

APP-16679044.FP.FTS.B

,

8

.99

%

,

9/01/27

.

9,665

9,805

APP-16632155.FP.FTS.B

,

11

.49

%

,

9/01/27

12,734

12,913

APP-16448250.FP.FTS.B

,

13

.49

%

,

9/01/27

5,163

5,237

APP-16676570.FP.FTS.B

,

15

.24

%

,

9/01/27

15,680

15,876

APP-16718578.FP.FTS.B

,

15

.74

%

,

9/02/27

8,241

8,352

APP-16852920.FP.FTS.B

,

10

.99

%

,

9/04/27

28,238

28,650

APP-16640455.FP.FTS.B

,

10

.99

%

,

9/05/27

16,364

16,594

APP-16800634.FP.FTS.B

,

15

.99

%

,

9/10/27

37,599

19,435

APP-16335596.FP.FTS.B

,

10

.99

%

,

9/12/27

19,412

19,726

APP-16627732.FP.FTS.B

,

12

.99

%

,

9/12/27

18,593

18,904

APP-16399010.FP.FTS.B

,

15

.24

%

,

9/12/27

15,858

16,130

APP-15052242.FP.FTS.B

,

11

.74

%

,

9/13/27

37,094

37,966

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-16664397.FP.FTS.B

,

12

.99

%

,

9/13/27

$

18,367

$

18,688

APP-17458875.FP.FTS.B

,

16

.49

%

,

9/13/27

3,758

3,811

APP-16687847.FP.FTS.B

,

9

.49

%

,

9/15/27

.

14,434

14,673

APP-17011228.FP.FTS.B

,

14

.74

%

,

9/15/27

37,695

38,365

APP-16720658.FP.FTS.B

,

15

.24

%

,

9/15/27

28,877

29,394

APP-17027051.FP.FTS.B

,

14

.49

%

,

9/16/27

10,633

10,826

APP-17010091.FP.FTS.B

,

15

.49

%

,

9/18/27

30,199

30,768

APP-16637461.FP.FTS.B

,

18

.49

%

,

9/20/27

14,558

14,805

APP-17497296.FP.FTS.B

,

17

.74

%

,

9/23/27

9,932

10,132

APP-17082038.FP.FTS.B

,

12

.49

%

,

9/26/27

22,581

22,982

APP-17490395.FP.FTS.B

,

15

.24

%

,

9/26/27

24,834

25,298

APP-17115062.FP.FTS.B

,

17

.99

%

,

9/26/27

14,965

15,291

APP-17461708.FP.FTS.B

,

12

.49

%

,

9/27/27

23,381

23,806

APP-17239533.FP.FTS.B

,

13

.74

%

,

9/27/27

14,899

15,172

APP-17504832.FP.FTS.B

,

13

.74

%

,

9/27/27

16,429

16,688

APP-17102136.FP.FTS.B

,

14

.24

%

,

9/27/27

37,162

37,842

APP-16677695.FP.FTS.B

,

12

.99

%

,

10/14/27

20,583

20,936

APP-15098807.FP.FTS.B

,

26

.99

%

,

10/28/27

10,010

10,148

APP-17485387.FP.FTS.B

,

15

.24

%

,

10/31/27

28,732

29,246

APP-11550730.FP.FTS.B

,

23

.99

%

,

5/03/34

410

412

4,008,379

LendingClub

Corp.

-

LCX

158981937.LC.FTS.B

,

16

.12

%

,

9/26/24

...

1,757

1,753

161888275.LC.FTS.B

,

15

.24

%

,

11/14/24

..

2,388

2,384

162030908.LC.FTS.B

,

12

.4

%

,

11/19/24

...

2,415

2,332

162266279.LC.FTS.B

,

11

.02

%

,

11/22/24

..

4,404

4,364

162318190.LC.FTS.B

,

13

.08

%

,

12/13/24

..

938

900

163479653.LC.FTS.B

,

20

.55

%

,

12/30/24

..

2,570

2,567

163615560.LC.FTS.B

,

20

.55

%

,

12/30/24

..

3,323

3,331

164050345.LC.FTS.B

,

13

.08

%

,

12/31/24

..

5,822

5,735

164586812.LC.FTS.B

,

8

.19

%

,

1/27/25

...

2,416

2,355

162966512.LC.FTS.B

,

11

.02

%

,

2/12/25

...

4,974

4,724

166880211.LC.FTS.B

,

8

.19

%

,

2/18/25

....

3,847

3,714

163292439.LC.FTS.B

,

8

.19

%

,

2/23/25

...

3,452

3,296

167466589.LC.FTS.B

,

8

.19

%

,

2/27/25

...

2,551

2,476

164067189.LC.FTS.B

,

13

.08

%

,

2/28/25

...

8,451

8,297

168296354.LC.FTS.B

,

13

.08

%

,

5/13/25

...

5,948

5,662

165441115.LC.FTS.B

,

8

.81

%

,

10/05/25

...

4,937

1,721

168006688.LC.FTS.B

,

8

.19

%

,

11/21/25

...

8,363

7,875

165032371.LC.FTS.B

,

Zero

Cpn

,

1/21/33

.

9,636

–

63,486

LendingClub

Corp.

-

LCX

PM

170431322.LC.FTS.B

,

18

.24

%

,

9/14/25

...

1,899

1,885

170592201.LC.FTS.B

,

14

.02

%

,

9/16/25

...

7,143

7,001

170055181.LC.FTS.B

,

16

.08

%

,

9/16/25

...

5,524

5,453

170639161.LC.FTS.B

,

19

.12

%

,

9/18/25

...

3,846

3,823

170786159.LC.FTS.B

,

14

.02

%

,

9/25/25

...

8,569

8,302

170163928.LC.FTS.B

,

15

.4

%

,

9/25/25

...

3,686

3,645

170812112.LC.FTS.B

,

14

.02

%

,

9/29/25

...

7,140

6,932

171032242.LC.FTS.B

,

19

.12

%

,

10/02/25

..

6,063

5,989

170941274.LC.FTS.B

,

16

.08

%

,

10/05/25

..

11,620

11,302

171264911.LC.FTS.B

,

19

.12

%

,

10/14/25

..

6,063

6,009

171461721.LC.FTS.B

,

16

.08

%

,

10/20/25

..

4,436

4,367

171322854.LC.FTS.B

,

16

.08

%

,

10/22/25

..

11,083

1,351

172156822.LC.FTS.B

,

14

.02

%

,

11/24/25

..

3,946

3,737

172665217.LC.FTS.B

,

15

.4

%

,

12/04/25

...

6,308

6,166

Description

Principal

Amount

Value

LendingClub

Corp.

-

LCX

PM

(continued)

172752552.LC.FTS.B

,

16

.08

%

,

12/10/25

..

$

5,099

$

5,029

173203429.LC.FTS.B

,

15

.4

%

,

12/23/25

...

14,690

14,437

173295643.LC.FTS.B

,

19

.12

%

,

12/28/25

..

5,309

5,235

173301532.LC.FTS.B

,

17

.3

%

,

1/06/26

...

13,514

13,255

173496629.LC.FTS.B

,

16

.08

%

,

1/14/26

...

12,759

9,650

172611713.LC.FTS.B

,

19

.12

%

,

1/14/26

...

7,506

7,424

173303101.LC.FTS.B

,

19

.95

%

,

1/15/26

...

7,231

7,171

173821408.LC.FTS.B

,

21

.49

%

,

1/19/26

...

7,407

7,463

173896730.LC.FTS.B

,

23

.99

%

,

1/19/26

...

4,893

5,005

173933933.LC.FTS.B

,

13

.49

%

,

1/20/26

...

8,563

8,298

173270899.LC.FTS.B

,

15

.4

%

,

1/20/26

...

18,007

17,451

173854798.LC.FTS.B

,

21

.49

%

,

1/20/26

...

4,795

4,809

173871807.LC.FTS.B

,

21

.99

%

,

1/20/26

...

5,804

5,909

174045948.LC.FTS.B

,

17

.44

%

,

1/22/26

...

8,574

8,536

174087634.LC.FTS.B

,

23

.99

%

,

1/22/26

...

7,339

7,518

172757520.LC.FTS.B

,

19

.12

%

,

1/24/26

...

6,443

–

173956639.LC.FTS.B

,

18

.19

%

,

1/25/26

...

3,037

3,004

173841383.LC.FTS.B

,

21

.49

%

,

1/25/26

...

14,456

14,546

173813936.LC.FTS.B

,

19

.74

%

,

1/27/26

...

11,155

11,128

173580706.LC.FTS.B

,

15

%

,

5/15/26

.....

12,083

9,495

170877107.LC.FTS.B

,

5

%

,

9/29/33

......

3,170

386

170963456.LC.FTS.B

,

19

.95

%

,

2/14/34

...

1,289

–

173826580.LC.FTS.B

,

16

.99

%

,

5/24/34

...

1,751

176

241,887

Prosper

Funding

LLC

1609512.PS.FTS.B

,

16

%

,

8/05/24

.......

1,244

1,234

1603741.PS.FTS.B

,

16

.6

%

,

8/06/24

.....

1,029

1,022

1611408.PS.FTS.B

,

15

.4

%

,

8/09/24

.....

1,352

1,344

1611363.PS.FTS.B

,

18

.24

%

,

8/09/24

....

2,803

1,955

1602197.PS.FTS.B

,

18

.41

%

,

8/14/24

....

636

634

1608881.PS.FTS.B

,

14

.7

%

,

8/23/24

.....

402

402

1610579.PS.FTS.B

,

15

%

,

8/25/24

.......

673

672

1620627.PS.FTS.B

,

16

.9

%

,

8/25/24

.....

2,266

823

1622424.PS.FTS.B

,

16

.1

%

,

8/27/24

.....

677

677

1634217.PS.FTS.B

,

24

.51

%

,

9/21/24

....

3,880

–

1623656.PS.FTS.B

,

25

.71

%

,

9/21/24

....

1,880

1,901

1628356.PS.FTS.B

,

11

.6

%

,

9/22/24

.....

401

399

1635063.PS.FTS.B

,

14

.56

%

,

9/22/24

....

1,914

1,902

1624643.PS.FTS.B

,

15

.12

%

,

9/22/24

....

507

506

1635060.PS.FTS.B

,

16

.64

%

,

9/22/24

....

2,550

2,551

1624646.PS.FTS.B

,

18

.4

%

,

9/22/24

.....

520

524

1635348.PS.FTS.B

,

26

.3

%

,

9/22/24

.....

378

383

1635768.PS.FTS.B

,

14

.89

%

,

9/23/24

....

1,523

1,523

1629058.PS.FTS.B

,

15

.7

%

,

9/23/24

.....

421

421

1636260.PS.FTS.B

,

12

.76

%

,

9/24/24

....

325

324

1636335.PS.FTS.B

,

13

%

,

9/24/24

.......

2,445

2,437

1636458.PS.FTS.B

,

13

.8

%

,

9/24/24

.....

740

738

1636308.PS.FTS.B

,

14

.56

%

,

9/24/24

....

498

496

1626602.PS.FTS.B

,

16

.1

%

,

9/24/24

.....

480

479

1625990.PS.FTS.B

,

16

.28

%

,

9/24/24

....

5,926

5,932

1629244.PS.FTS.B

,

17

.96

%

,

9/24/24

....

1,674

1,676

1636947.PS.FTS.B

,

20

.34

%

,

9/24/24

....

355

358

1630390.PS.FTS.B

,

11

.6

%

,

9/27/24

.....

1,914

1,909

1630750.PS.FTS.B

,

11

.7

%

,

9/27/24

.....

2,157

2,170

1637526.PS.FTS.B

,

12

.3

%

,

9/27/24

.....

2,912

2,897

1626884.PS.FTS.B

,

15

%

,

9/27/24

.......

1,592

1,595

1637235.PS.FTS.B

,

15

.1

%

,

9/27/24

.....

996

998

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

79

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1630384.PS.FTS.B

,

16

%

,

9/27/24

.......

$

2,005

$

2,009

1630396.PS.FTS.B

,

16

.43

%

,

9/27/24

....

3,861

3,869

1630414.PS.FTS.B

,

16

.43

%

,

9/27/24

....

404

405

1630936.PS.FTS.B

,

12

%

,

9/28/24

.......

1,616

1,612

1631188.PS.FTS.B

,

13

.36

%

,

9/28/24

....

2,051

2,046

1627706.PS.FTS.B

,

15

.1

%

,

9/28/24

.....

398

399

1628048.PS.FTS.B

,

15

.4

%

,

9/28/24

.....

1,086

1,085

1638306.PS.FTS.B

,

21

.56

%

,

9/28/24

....

1,015

1,020

1627514.PS.FTS.B

,

13

.5

%

,

10/02/24

....

2,025

2,012

1625708.PS.FTS.B

,

17

.8

%

,

10/10/24

....

2,555

2,568

1630822.PS.FTS.B

,

13

.86

%

,

10/16/24

...

3,261

3,255

1648597.PS.FTS.B

,

15

.5

%

,

10/27/24

....

2,319

2,313

1648606.PS.FTS.B

,

18

.11

%

,

10/27/24

....

717

715

1649488.PS.FTS.B

,

11

.7

%

,

10/28/24

....

2,450

2,435

1646303.PS.FTS.B

,

11

.89

%

,

10/28/24

....

3,348

3,327

1649524.PS.FTS.B

,

14

.39

%

,

10/28/24

...

444

444

1649797.PS.FTS.B

,

17

.05

%

,

10/28/24

...

3,208

3,201

1656462.PS.FTS.B

,

27

.62

%

,

10/28/24

...

3,950

3,996

1650016.PS.FTS.B

,

13

.5

%

,

10/29/24

....

4,544

4,589

1650046.PS.FTS.B

,

19

.41

%

,

10/29/24

...

5,412

5,545

1648730.PS.FTS.B

,

17

%

,

11/02/24

......

2,828

2,817

1661403.PS.FTS.B

,

14

.11

%

,

11/05/24

....

5,712

5,649

1653476.PS.FTS.B

,

10

.8

%

,

11/09/24

....

694

686

1652624.PS.FTS.B

,

12

.3

%

,

11/09/24

....

896

887

1653332.PS.FTS.B

,

12

.79

%

,

11/09/24

....

4,504

4,457

1659052.PS.FTS.B

,

15

.29

%

,

11/09/24

....

926

919

1659220.PS.FTS.B

,

16

.6

%

,

11/09/24

....

2,756

2,749

1659274.PS.FTS.B

,

19

.5

%

,

11/09/24

....

3,387

3,386

1654961.PS.FTS.B

,

11

.88

%

,

11/12/24

....

3,344

3,313

1654955.PS.FTS.B

,

15

.5

%

,

11/12/24

....

2,176

2,161

1635077.PS.FTS.B

,

20

.57

%

,

11/15/24

....

3,951

3,947

1654004.PS.FTS.B

,

15

.29

%

,

11/16/24

....

1,164

1,152

1486265.PS.FTS.B

,

19

.99

%

,

11/16/24

....

2,555

2,559

1658144.PS.FTS.B

,

14

.49

%

,

11/17/24

....

8,513

2,733

1650442.PS.FTS.B

,

16

.57

%

,

11/23/24

....

1,101

1,099

1503354.PS.FTS.B

,

20

.74

%

,

11/24/24

....

1,552

1,560

1660819.PS.FTS.B

,

17

%

,

11/26/24

......

848

847

1651990.PS.FTS.B

,

18

.41

%

,

12/01/24

...

9,335

1,191

1674119.PS.FTS.B

,

11

.6

%

,

12/16/24

.....

2,530

2,504

1674128.PS.FTS.B

,

12

.3

%

,

12/16/24

....

615

608

1687134.PS.FTS.B

,

12

.6

%

,

12/16/24

....

1,790

1,779

1687119.PS.FTS.B

,

13

.5

%

,

12/16/24

....

3,873

3,848

1680238.PS.FTS.B

,

13

.81

%

,

12/16/24

...

6,476

6,410

1680268.PS.FTS.B

,

19

.6

%

,

12/16/24

....

6,018

1,490

1689501.PS.FTS.B

,

15

.9

%

,

12/21/24

....

2,648

2,635

1676387.PS.FTS.B

,

16

.2

%

,

12/21/24

....

2,656

2,669

1674137.PS.FTS.B

,

18

.2

%

,

12/21/24

....

549

549

1689882.PS.FTS.B

,

15

.29

%

,

12/22/24

...

1,447

1,441

1683121.PS.FTS.B

,

16

.8

%

,

12/22/24

....

7,639

6,765

1689870.PS.FTS.B

,

18

.09

%

,

12/22/24

...

1,665

1,669

1683241.PS.FTS.B

,

22

.6

%

,

12/22/24

....

1,288

1,169

1686151.PS.FTS.B

,

14

.6

%

,

12/29/24

....

584

590

1679818.PS.FTS.B

,

17

.8

%

,

12/30/24

....

4,973

4,966

1693752.PS.FTS.B

,

23

.9

%

,

12/30/24

....

1,718

1,711

1686747.PS.FTS.B

,

16

.5

%

,

12/31/24

....

372

370

1683092.PS.FTS.B

,

24

.4

%

,

1/04/25

.....

1,766

1,178

1675928.PS.FTS.B

,

10

.97

%

,

1/05/25

....

2,849

2,812

1694922.PS.FTS.B

,

24

.11

%

,

1/06/25

....

1,156

317

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1697064.PS.FTS.B

,

24

.4

%

,

1/06/25

.....

$

676

$

675

1687799.PS.FTS.B

,

13

.41

%

,

1/12/25

....

6,339

320

1694614.PS.FTS.B

,

11

.4

%

,

1/13/25

.....

1,130

1,116

1694584.PS.FTS.B

,

12

.2

%

,

1/13/25

.....

5,696

5,623

1701780.PS.FTS.B

,

12

.3

%

,

1/13/25

.....

4,778

4,707

1688570.PS.FTS.B

,

13

.87

%

,

1/13/25

....

1,738

1,721

1688558.PS.FTS.B

,

16

.43

%

,

1/13/25

....

891

883

1701342.PS.FTS.B

,

17

.7

%

,

1/13/25

.....

7,523

7,521

1694587.PS.FTS.B

,

19

.6

%

,

1/13/25

.....

3,065

3,064

1689359.PS.FTS.B

,

12

.3

%

,

1/14/25

.....

1,478

1,456

1702149.PS.FTS.B

,

15

%

,

1/14/25

.......

2,976

2,940

1695340.PS.FTS.B

,

15

.7

%

,

1/14/25

.....

2,950

2,923

1689368.PS.FTS.B

,

16

.2

%

,

1/14/25

.....

1,307

1,304

1695364.PS.FTS.B

,

16

.8

%

,

1/14/25

.....

1,528

1,510

1695355.PS.FTS.B

,

18

.4

%

,

1/14/25

.....

1,515

1,515

1695982.PS.FTS.B

,

25

.4

%

,

1/14/25

.....

2,468

2,474

1696480.PS.FTS.B

,

18

.8

%

,

1/18/25

.....

1,521

1,524

1697491.PS.FTS.B

,

16

.7

%

,

1/19/25

.....

1,509

1,508

1704390.PS.FTS.B

,

17

.8

%

,

1/19/25

.....

680

681

1692221.PS.FTS.B

,

23

%

,

1/19/25

.......

2,172

2,190

1700809.PS.FTS.B

,

22

.6

%

,

1/24/25

.....

1,577

1,596

1696034.PS.FTS.B

,

13

.5

%

,

1/25/25

.....

527

524

1709424.PS.FTS.B

,

23

.4

%

,

1/26/25

.....

770

776

1684772.PS.FTS.B

,

24

.4

%

,

1/29/25

.....

1,863

1,900

1702809.PS.FTS.B

,

14

.89

%

,

1/31/25

....

8,144

8,039

1695688.PS.FTS.B

,

13

.96

%

,

2/07/25

....

2,117

2,081

1706807.PS.FTS.B

,

17

.8

%

,

2/11/25

.....

1,327

1,325

1715170.PS.FTS.B

,

10

.8

%

,

2/15/25

.....

931

918

1708031.PS.FTS.B

,

12

.9

%

,

2/15/25

.....

2,440

2,405

1708067.PS.FTS.B

,

13

%

,

2/15/25

.......

3,171

3,127

1715161.PS.FTS.B

,

14

.11

%

,

2/15/25

....

389

385

1708871.PS.FTS.B

,

14

.49

%

,

2/15/25

....

3,217

3,183

1715173.PS.FTS.B

,

16

.6

%

,

2/15/25

.....

1,237

1,223

1708904.PS.FTS.B

,

23

.4

%

,

2/15/25

.....

1,746

1,757

1708478.PS.FTS.B

,

24

.34

%

,

2/15/25

....

1,846

1,650

1708040.PS.FTS.B

,

26

.46

%

,

2/15/25

....

1,435

1,443

1716160.PS.FTS.B

,

11

.55

%

,

2/16/25

....

3,127

3,084

1716088.PS.FTS.B

,

17

.8

%

,

2/16/25

.....

1,659

1,660

1723593.PS.FTS.B

,

22

.6

%

,

2/18/25

.....

5,201

5,243

1721421.PS.FTS.B

,

16

.3

%

,

2/20/25

.....

6,164

6,147

1709597.PS.FTS.B

,

18

.5

%

,

2/20/25

.....

2,018

2,013

1708070.PS.FTS.B

,

14

.2

%

,

2/21/25

.....

3,172

3,139

1713806.PS.FTS.B

,

10

.07

%

,

2/23/25

....

12,326

12,166

1713725.PS.FTS.B

,

13

.9

%

,

2/23/25

.....

2,850

2,829

1721427.PS.FTS.B

,

17

.96

%

,

2/24/25

....

6,422

6,334

1652873.PS.FTS.B

,

19

.6

%

,

2/25/25

.....

5,404

1,527

1712954.PS.FTS.B

,

12

.4

%

,

2/26/25

.....

1,383

1,364

1715152.PS.FTS.B

,

21

%

,

2/28/25

.......

3,832

3,912

1708484.PS.FTS.B

,

22

.6

%

,

2/28/25

.....

1,564

1,599

1710380.PS.FTS.B

,

23

.59

%

,

2/28/25

....

879

880

1730775.PS.FTS.B

,

16

.3

%

,

3/03/25

.....

766

759

1603033.PS.FTS.B

,

24

.6

%

,

5/07/25

.....

1,918

1,918

1673705.PS.FTS.B

,

16

%

,

6/16/25

.......

4,296

4,208

1724859.PS.FTS.B

,

11

.4

%

,

6/18/25

.....

5,071

–

1683602.PS.FTS.B

,

23

.4

%

,

7/05/25

.....

980

974

1681405.PS.FTS.B

,

16

.9

%

,

10/12/25

....

8,520

4,931

1638183.PS.FTS.B

,

17

.71

%

,

10/26/25

...

5,810

5,696

1685272.PS.FTS.B

,

16

.7

%

,

11/28/25

....

13,480

8,269

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1692336.PS.FTS.B

,

21

.8

%

,

11/28/25

....

$

5,959

$

5,864

1716226.PS.FTS.B

,

13

.9

%

,

12/14/25

....

5,124

4,966

1485878.PS.FTS.B

,

11

.99

%

,

12/17/25

....

7,837

–

1690361.PS.FTS.B

,

18

.5

%

,

12/18/25

....

1,598

950

1708055.PS.FTS.B

,

20

.25

%

,

1/15/26

....

16,899

508

1709591.PS.FTS.B

,

22

.6

%

,

1/16/26

.....

10,674

6,944

1592846.PS.FTS.B

,

15

.9

%

,

7/23/26

.....

4,387

4,321

1599440.PS.FTS.B

,

26

.4

%

,

8/05/26

.....

1,270

1,303

1600460.PS.FTS.B

,

15

.2

%

,

8/06/26

.....

8,408

8,223

1603750.PS.FTS.B

,

15

.9

%

,

8/06/26

.....

4,518

4,419

1600466.PS.FTS.B

,

18

.73

%

,

8/06/26

....

8,727

8,530

1603759.PS.FTS.B

,

20

.59

%

,

8/06/26

....

5,928

5,940

1604551.PS.FTS.B

,

13

.74

%

,

8/09/26

....

11,976

11,709

1611384.PS.FTS.B

,

13

.88

%

,

8/09/26

....

5,526

5,391

1611387.PS.FTS.B

,

19

.33

%

,

8/09/26

....

5,268

5,287

1611390.PS.FTS.B

,

22

.8

%

,

8/09/26

.....

1,158

1,190

1611810.PS.FTS.B

,

13

%

,

8/10/26

.......

1,368

1,335

1606042.PS.FTS.B

,

14

.74

%

,

8/10/26

....

9,341

4,868

1611807.PS.FTS.B

,

19

.33

%

,

8/10/26

....

8,799

8,837

1602347.PS.FTS.B

,

20

.3

%

,

8/10/26

.....

1,182

1,187

1612149.PS.FTS.B

,

20

.7

%

,

8/10/26

.....

3,561

3,575

1612140.PS.FTS.B

,

23

.74

%

,

8/10/26

....

3,973

3,986

1606183.PS.FTS.B

,

12

.6

%

,

8/11/26

.....

8,171

7,977

1606945.PS.FTS.B

,

12

.5

%

,

8/12/26

.....

4,257

521

1607296.PS.FTS.B

,

13

.3

%

,

8/12/26

.....

3,436

1,796

1603532.PS.FTS.B

,

20

.5

%

,

8/12/26

.....

6,265

6,298

1612131.PS.FTS.B

,

19

.48

%

,

8/15/26

....

4,412

4,431

1611322.PS.FTS.B

,

12

.5

%

,

8/19/26

.....

19,045

18,625

1618149.PS.FTS.B

,

13

.7

%

,

8/19/26

.....

6,066

5,932

1611805.PS.FTS.B

,

16

.18

%

,

8/20/26

....

16,711

16,419

1602449.PS.FTS.B

,

25

%

,

8/21/26

.......

1,248

1,284

1615738.PS.FTS.B

,

13

.3

%

,

8/27/26

.....

2,262

2,216

1612100.PS.FTS.B

,

16

.3

%

,

8/27/26

.....

5,836

5,748

1604576.PS.FTS.B

,

18

.3

%

,

8/28/26

.....

6,018

6,054

1615636.PS.FTS.B

,

12

.5

%

,

8/30/26

.....

8,429

8,243

1612853.PS.FTS.B

,

13

%

,

8/30/26

.......

22,548

21,934

1611798.PS.FTS.B

,

25

.74

%

,

9/01/26

....

6,574

6,754

1622321.PS.FTS.B

,

19

.23

%

,

9/17/26

....

1,802

1,819

1634619.PS.FTS.B

,

19

%

,

9/21/26

.......

5,993

6,061

1624628.PS.FTS.B

,

12

.9

%

,

9/22/26

.....

14,074

13,777

1625300.PS.FTS.B

,

11

.79

%

,

9/23/26

....

3,894

3,813

1625246.PS.FTS.B

,

12

.5

%

,

9/23/26

.....

5,325

5,214

1630114.PS.FTS.B

,

11

.7

%

,

9/24/26

......

5,001

4,898

1626860.PS.FTS.B

,

15

%

,

9/27/26

.......

3,847

3,793

1631629.PS.FTS.B

,

11

.7

%

,

9/28/26

.....

895

885

1631647.PS.FTS.B

,

12

.7

%

,

9/28/26

.....

8,536

8,367

1638105.PS.FTS.B

,

13

.4

%

,

9/28/26

.....

3,785

3,710

1628072.PS.FTS.B

,

14

.53

%

,

9/28/26

....

11,840

11,604

1627559.PS.FTS.B

,

14

.89

%

,

9/28/26

....

10,050

9,912

1639041.PS.FTS.B

,

11

.7

%

,

9/29/26

.....

8,581

8,504

1629628.PS.FTS.B

,

14

.31

%

,

10/02/26

...

7,079

6,947

1646769.PS.FTS.B

,

11

.79

%

,

10/13/26

....

1,396

1,381

1626833.PS.FTS.B

,

14

.7

%

,

10/25/26

....

9,260

9,099

1648282.PS.FTS.B

,

14

%

,

10/26/26

......

9,036

8,874

1648288.PS.FTS.B

,

14

.96

%

,

10/26/26

...

7,601

7,464

1645223.PS.FTS.B

,

10

.5

%

,

10/27/26

....

5,232

5,115

1645646.PS.FTS.B

,

10

.8

%

,

10/27/26

....

8,748

8,551

1648582.PS.FTS.B

,

10

.9

%

,

10/27/26

....

5,838

5,707

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1655325.PS.FTS.B

,

13

.08

%

,

10/27/26

...

$

12,117

$

11,842

1648945.PS.FTS.B

,

14

.29

%

,

10/27/26

...

21,175

20,804

1648588.PS.FTS.B

,

14

.39

%

,

10/27/26

...

9,070

8,911

1648621.PS.FTS.B

,

15

.29

%

,

10/27/26

...

19,143

18,819

1646309.PS.FTS.B

,

9

.62

%

,

10/28/26

....

8,943

8,745

1649809.PS.FTS.B

,

11

.1

%

,

10/28/26

....

4,349

4,240

1646066.PS.FTS.B

,

16

.18

%

,

10/28/26

...

9,245

9,084

1645916.PS.FTS.B

,

16

.3

%

,

10/28/26

....

830

828

1646072.PS.FTS.B

,

28

.23

%

,

10/28/26

...

8,125

8,449

1650307.PS.FTS.B

,

10

.08

%

,

10/29/26

...

7,525

7,357

1647161.PS.FTS.B

,

10

.5

%

,

10/29/26

....

4,069

4,018

1657278.PS.FTS.B

,

10

.5

%

,

10/29/26

....

4,545

4,495

1646819.PS.FTS.B

,

11

.2

%

,

10/29/26

....

2,342

2,314

1650901.PS.FTS.B

,

11

.2

%

,

10/29/26

....

9,075

8,978

1650847.PS.FTS.B

,

13

.93

%

,

10/29/26

...

4,815

4,768

1650865.PS.FTS.B

,

15

.18

%

,

10/29/26

...

6,093

6,038

1489833.PS.FTS.B

,

16

.99

%

,

10/30/26

...

5,116

2,855

1656183.PS.FTS.B

,

14

.38

%

,

10/31/26

...

4,546

4,435

1649791.PS.FTS.B

,

15

.1

%

,

10/31/26

....

15,245

14,952

1655343.PS.FTS.B

,

16

.65

%

,

10/31/26

...

8,228

8,318

1648990.PS.FTS.B

,

18

.33

%

,

10/31/26

...

10,708

10,796

1649806.PS.FTS.B

,

12

.33

%

,

11/01/26

....

10,948

2,541

1648793.PS.FTS.B

,

26

.43

%

,

11/02/26

....

6,727

6,890

1650023.PS.FTS.B

,

14

.79

%

,

11/04/26

....

6,675

6,542

1661388.PS.FTS.B

,

11

.55

%

,

11/05/26

....

2,350

2,287

1654723.PS.FTS.B

,

18

.6

%

,

11/05/26

....

5,487

3,133

1651754.PS.FTS.B

,

10

.5

%

,

11/08/26

....

11,625

11,320

1658080.PS.FTS.B

,

14

.63

%

,

11/08/26

....

9,089

8,878

1652300.PS.FTS.B

,

21

.18

%

,

11/08/26

....

9,173

9,177

1666449.PS.FTS.B

,

14

.6

%

,

11/09/26

....

6,966

6,807

1658839.PS.FTS.B

,

14

.68

%

,

11/09/26

....

9,093

8,853

1658842.PS.FTS.B

,

17

%

,

11/09/26

......

7,747

7,767

1659079.PS.FTS.B

,

19

%

,

11/09/26

......

3,788

3,796

1654735.PS.FTS.B

,

18

.25

%

,

11/10/26

....

15,757

15,715

1660333.PS.FTS.B

,

21

.18

%

,

11/10/26

....

2,572

2,602

1667997.PS.FTS.B

,

11

.79

%

,

11/12/26

....

5,301

5,166

1655114.PS.FTS.B

,

12

.32

%

,

11/12/26

....

7,658

375

1667757.PS.FTS.B

,

18

.25

%

,

11/12/26

....

8,151

8,182

1667178.PS.FTS.B

,

13

.3

%

,

11/15/26

....

6,003

5,857

1661914.PS.FTS.B

,

13

.5

%

,

11/15/26

....

14,980

14,671

1661875.PS.FTS.B

,

18

.33

%

,

11/15/26

....

9,412

9,462

1661797.PS.FTS.B

,

21

%

,

11/15/26

......

1,319

1,356

1658339.PS.FTS.B

,

16

%

,

11/17/26

......

4,605

4,636

1650968.PS.FTS.B

,

16

.33

%

,

11/19/26

....

11,086

10,815

1653086.PS.FTS.B

,

18

.2

%

,

11/19/26

....

8,132

6,977

1664327.PS.FTS.B

,

13

.5

%

,

11/30/26

....

2,493

2,420

1687146.PS.FTS.B

,

11

.43

%

,

12/16/26

....

7,239

7,042

1687128.PS.FTS.B

,

12

.3

%

,

12/16/26

....

6,084

5,918

1680286.PS.FTS.B

,

12

.5

%

,

12/16/26

....

6,096

5,929

1687125.PS.FTS.B

,

13

.4

%

,

12/16/26

....

6,149

5,981

1680241.PS.FTS.B

,

14

.38

%

,

12/16/26

...

15,519

15,092

1680235.PS.FTS.B

,

14

.41

%

,

12/16/26

...

21,692

21,123

1674101.PS.FTS.B

,

14

.53

%

,

12/16/26

...

11,058

10,766

1687113.PS.FTS.B

,

15

.18

%

,

12/16/26

....

10,319

10,067

1680301.PS.FTS.B

,

18

.5

%

,

12/16/26

....

3,223

3,224

1675265.PS.FTS.B

,

10

.5

%

,

12/20/26

....

13,745

13,402

1681006.PS.FTS.B

,

15

.29

%

,

12/20/26

...

14,398

14,066

1676534.PS.FTS.B

,

6

%

,

12/21/26

.......

8,966

8,791

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

81

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1688964.PS.FTS.B

,

13

.93

%

,

12/21/26

...

$

9,271

$

9,026

1689036.PS.FTS.B

,

14

.6

%

,

12/21/26

....

12,440

12,158

1689054.PS.FTS.B

,

14

.89

%

,

12/21/26

...

9,130

8,939

1676819.PS.FTS.B

,

14

.68

%

,

12/22/26

...

19,918

19,395

1677269.PS.FTS.B

,

25

.9

%

,

12/22/26

....

4,115

4,243

1690638.PS.FTS.B

,

11

.1

%

,

12/23/26

....

5,712

5,565

1688076.PS.FTS.B

,

16

.4

%

,

12/24/26

....

8,784

8,592

1680116.PS.FTS.B

,

14

%

,

12/29/26

......

17,123

16,989

1690116.PS.FTS.B

,

23

.11

%

,

12/31/26

....

10,359

10,684

1686735.PS.FTS.B

,

25

.27

%

,

12/31/26

...

10,703

10,959

1694608.PS.FTS.B

,

10

.62

%

,

1/13/27

....

5,893

5,730

1701387.PS.FTS.B

,

11

.1

%

,

1/13/27

.....

4,936

4,799

1694572.PS.FTS.B

,

11

.6

%

,

1/13/27

.....

13,517

13,141

1695022.PS.FTS.B

,

11

.7

%

,

1/13/27

.....

9,181

8,926

1688996.PS.FTS.B

,

11

.79

%

,

1/13/27

....

15,219

14,795

1694605.PS.FTS.B

,

15

.2

%

,

1/13/27

.....

1,346

1,312

1694623.PS.FTS.B

,

18

.5

%

,

1/13/27

.....

4,617

4,617

1701375.PS.FTS.B

,

21

.69

%

,

1/13/27

....

6,751

6,944

1694593.PS.FTS.B

,

23

.4

%

,

1/13/27

.....

6,751

960

1701396.PS.FTS.B

,

27

.4

%

,

1/13/27

.....

3,585

3,672

1702062.PS.FTS.B

,

11

.79

%

,

1/14/27

....

3,714

3,623

1702152.PS.FTS.B

,

12

.87

%

,

1/14/27

....

3,765

3,660

1695343.PS.FTS.B

,

12

.9

%

,

1/14/27

.....

3,389

3,295

1702287.PS.FTS.B

,

15

.29

%

,

1/14/27

....

6,414

6,257

1689365.PS.FTS.B

,

15

.8

%

,

1/14/27

.....

12,887

12,569

1702137.PS.FTS.B

,

16

.2

%

,

1/14/27

.....

4,203

4,099

1702161.PS.FTS.B

,

18

.13

%

,

1/14/27

....

2,630

2,564

1689329.PS.FTS.B

,

18

.4

%

,

1/14/27

.....

6,458

6,461

1674146.PS.FTS.B

,

18

.78

%

,

1/14/27

....

6,778

6,746

1695361.PS.FTS.B

,

26

.13

%

,

1/14/27

....

10,510

10,805

1688534.PS.FTS.B

,

12

.9

%

,

1/16/27

.....

15,715

15,256

1703139.PS.FTS.B

,

25

.9

%

,

1/18/27

.....

1,511

30

1704984.PS.FTS.B

,

10

.29

%

,

1/19/27

....

7,960

7,750

1692188.PS.FTS.B

,

11

.2

%

,

1/19/27

.....

15,377

14,971

1691687.PS.FTS.B

,

12

.7

%

,

1/19/27

.....

18,795

18,294

1675340.PS.FTS.B

,

16

%

,

1/19/27

.......

8,884

8,894

1692281.PS.FTS.B

,

16

.5

%

,

1/19/27

.....

22,744

22,170

1704129.PS.FTS.B

,

21

.18

%

,

1/19/27

....

7,123

1,796

1692593.PS.FTS.B

,

10

.5

%

,

1/20/27

.....

12,272

11,950

1698709.PS.FTS.B

,

15

.2

%

,

1/20/27

.....

9,614

9,397

1695031.PS.FTS.B

,

15

.5

%

,

1/27/27

.....

6,637

6,459

1695725.PS.FTS.B

,

16

.1

%

,

1/30/27

.....

4,506

4,476

1708451.PS.FTS.B

,

10

.26

%

,

2/15/27

....

4,886

4,767

1721439.PS.FTS.B

,

12

%

,

2/15/27

.......

1,914

1,860

1708763.PS.FTS.B

,

15

.62

%

,

2/15/27

....

15,146

14,763

1708901.PS.FTS.B

,

18

.33

%

,

2/15/27

....

13,469

13,464

1720974.PS.FTS.B

,

18

.4

%

,

2/15/27

.....

13,183

13,132

1708466.PS.FTS.B

,

18

.6

%

,

2/15/27

.....

4,387

4,385

1708103.PS.FTS.B

,

18

.78

%

,

2/15/27

....

1,420

1,411

1721007.PS.FTS.B

,

22

%

,

2/15/27

.......

9,140

1,327

1715353.PS.FTS.B

,

25

.9

%

,

2/15/27

.....

1,426

1,466

1709507.PS.FTS.B

,

13

.5

%

,

2/16/27

.....

5,173

5,045

1709498.PS.FTS.B

,

25

.9

%

,

2/16/27

.....

7,132

7,336

1722801.PS.FTS.B

,

23

.31

%

,

2/17/27

....

3,240

3,314

1708907.PS.FTS.B

,

18

.13

%

,

2/20/27

....

10,710

8,840

1718479.PS.FTS.B

,

11

.1

%

,

2/22/27

.....

6,410

–

1724556.PS.FTS.B

,

17

.38

%

,

2/22/27

....

4,288

4,300

1611804.PS.FTS.B

,

18

%

,

2/22/27

.......

17,250

17,314

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1719415.PS.FTS.B

,

10

.8

%

,

2/23/27

.....

$

7,510

$

7,312

1719667.PS.FTS.B

,

12

.5

%

,

2/23/27

.....

9,613

9,359

1715149.PS.FTS.B

,

12

.62

%

,

2/27/27

....

16,501

16,018

1722171.PS.FTS.B

,

18

.78

%

,

2/28/27

....

5,238

5,208

1739157.PS.FTS.B

,

11

.5

%

,

3/18/27

.....

26,105

25,304

1749006.PS.FTS.B

,

19

.53

%

,

3/31/27

....

7,821

7,682

1749429.PS.FTS.B

,

25

.9

%

,

4/01/27

.....

4,465

4,499

1613553.PS.FTS.B

,

19

.78

%

,

6/15/27

....

6,821

6,843

1654196.PS.FTS.B

,

11

.6

%

,

9/03/27

.....

14,126

5,842

1682455.PS.FTS.B

,

11

.43

%

,

11/21/27

....

20,917

7,589

1,691,038

Upgrade,

Inc.

23712149.UG.FTS.B

,

29

.69

%

,

11/06/24

..

5,040

5,217

24415650.UG.FTS.B

,

26

.77

%

,

11/22/24

..

3,174

3,290

24468287.UG.FTS.B

,

29

.69

%

,

11/26/24

..

17,864

14,095

24606347.UG.FTS.B

,

30

.17

%

,

12/03/24

..

8,562

9,036

24618663.UG.FTS.B

,

29

.69

%

,

12/21/24

..

6,506

6,828

25721348.UG.FTS.B

,

28

.99

%

,

1/06/25

...

8,007

7,354

25684301.UG.FTS.B

,

29

.69

%

,

1/06/25

...

1,971

125

25595802.UG.FTS.B

,

28

.99

%

,

1/22/25

...

10,090

10,595

24508053.UG.FTS.B

,

22

.34

%

,

11/20/27

..

89

89

56,629

Upgrade,

Inc.

-

Card

991922854.UG.FTS.B

,

21

.46

%

,

3/07/24

..

12

11

991946691.UG.FTS.B

,

14

.98

%

,

5/08/24

..

13

12

991832099.UG.FTS.B

,

29

.49

%

,

5/23/24

..

28

25

991693378.UG.FTS.B

,

23

.44

%

,

6/03/24

..

16

8

991588559.UG.FTS.B

,

29

.46

%

,

6/17/24

..

30

31

991562352.UG.FTS.B

,

29

.49

%

,

6/17/24

..

36

3

991741014.UG.FTS.B

,

29

.49

%

,

6/24/24

..

136

24

991608248.UG.FTS.B

,

19

.99

%

,

7/21/24

..

17

17

991636176.UG.FTS.B

,

29

.49

%

,

7/23/24

..

107

103

991658433.UG.FTS.B

,

16

.49

%

,

7/30/24

..

290

20

991924883.UG.FTS.B

,

23

.95

%

,

8/05/24

..

17

17

991787803.UG.FTS.B

,

29

.46

%

,

8/20/24

..

38

38

991802395.UG.FTS.B

,

29

.49

%

,

10/06/24

.

87

88

991732331.UG.FTS.B

,

28

.48

%

,

10/15/24

.

29

29

991661636.UG.FTS.B

,

29

.49

%

,

10/20/24

.

46

–

991655876.UG.FTS.B

,

28

.48

%

,

10/21/24

.

121

123

991651616.UG.FTS.B

,

28

.98

%

,

12/24/24

.

32

28

991487037.UG.FTS.B

,

14

.98

%

,

1/13/25

..

500

503

991499314.UG.FTS.B

,

16

.99

%

,

1/14/25

..

126

128

991514741.UG.FTS.B

,

17

.99

%

,

1/15/25

..

338

339

991692788.UG.FTS.B

,

29

.49

%

,

1/15/25

..

2

2

991729446.UG.FTS.B

,

19

.99

%

,

1/16/25

..

5

5

991773734.UG.FTS.B

,

29

.49

%

,

1/16/25

..

1

1

991655284.UG.FTS.B

,

28

.98

%

,

1/17/25

..

21

2

991649368.UG.FTS.B

,

29

.46

%

,

1/17/25

..

18

18

991545817.UG.FTS.B

,

29

.49

%

,

1/17/25

..

5

–

991644250.UG.FTS.B

,

29

.49

%

,

1/17/25

..

14

2

991713284.UG.FTS.B

,

15

.97

%

,

1/18/25

..

28

29

991543349.UG.FTS.B

,

19

.99

%

,

1/18/25

..

397

411

991596625.UG.FTS.B

,

19

.99

%

,

1/18/25

..

95

98

991541397.UG.FTS.B

,

27

.95

%

,

1/18/25

..

99

101

991536394.UG.FTS.B

,

28

.98

%

,

1/18/25

..

4,143

292

991541730.UG.FTS.B

,

28

.98

%

,

1/18/25

..

168

169

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991547864.UG.FTS.B

,

28

.98

%

,

1/18/25

..

$

257

$

266

991564531.UG.FTS.B

,

28

.98

%

,

1/18/25

..

1

1

991586801.UG.FTS.B

,

28

.98

%

,

1/18/25

..

81

84

991633024.UG.FTS.B

,

28

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%

,

1/18/25

..

13

13

991643598.UG.FTS.B

,

28

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%

,

1/18/25

..

59

60

991662279.UG.FTS.B

,

28

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%

,

1/18/25

..

43

44

991669237.UG.FTS.B

,

28

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,

1/18/25

..

7

7

991766780.UG.FTS.B

,

29

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%

,

1/18/25

..

57

58

991567035.UG.FTS.B

,

29

.48

%

,

1/18/25

..

210

218

991535459.UG.FTS.B

,

29

.49

%

,

1/18/25

..

90

94

991535708.UG.FTS.B

,

29

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%

,

1/18/25

..

7

7

991536072.UG.FTS.B

,

29

.49

%

,

1/18/25

..

163

165

991536876.UG.FTS.B

,

29

.49

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,

1/18/25

..

103

107

991536929.UG.FTS.B

,

29

.49

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,

1/18/25

..

419

428

991537021.UG.FTS.B

,

29

.49

%

,

1/18/25

..

2

2

991540546.UG.FTS.B

,

29

.49

%

,

1/18/25

..

37

38

991543638.UG.FTS.B

,

29

.49

%

,

1/18/25

..

78

7

991544799.UG.FTS.B

,

29

.49

%

,

1/18/25

..

91

94

991545277.UG.FTS.B

,

29

.49

%

,

1/18/25

..

214

15

991563278.UG.FTS.B

,

29

.49

%

,

1/18/25

..

65

67

991678184.UG.FTS.B

,

29

.49

%

,

1/18/25

..

6

6

991714196.UG.FTS.B

,

29

.49

%

,

1/18/25

..

3

3

991736128.UG.FTS.B

,

29

.49

%

,

1/18/25

..

10

10

991755790.UG.FTS.B

,

29

.49

%

,

1/18/25

..

20

20

991765962.UG.FTS.B

,

29

.49

%

,

1/18/25

..

35

3

991768700.UG.FTS.B

,

29

.49

%

,

1/18/25

..

58

59

991713909.UG.FTS.B

,

18

.97

%

,

1/19/25

..

95

96

991593524.UG.FTS.B

,

19

.99

%

,

1/19/25

..

17

17

991617879.UG.FTS.B

,

19

.99

%

,

1/19/25

..

472

488

991640553.UG.FTS.B

,

19

.99

%

,

1/19/25

..

26

26

991650417.UG.FTS.B

,

19

.99

%

,

1/19/25

..

92

95

991690575.UG.FTS.B

,

25

.95

%

,

1/19/25

..

196

201

991779529.UG.FTS.B

,

27

.99

%

,

1/19/25

..

131

135

991544331.UG.FTS.B

,

28

.98

%

,

1/19/25

..

232

239

991547565.UG.FTS.B

,

28

.98

%

,

1/19/25

..

56

57

991556346.UG.FTS.B

,

28

.98

%

,

1/19/25

..

108

16

991580652.UG.FTS.B

,

28

.98

%

,

1/19/25

..

36

37

991655297.UG.FTS.B

,

28

.98

%

,

1/19/25

..

5

5

991680250.UG.FTS.B

,

28

.98

%

,

1/19/25

..

158

160

991694508.UG.FTS.B

,

28

.98

%

,

1/19/25

..

111

115

991734745.UG.FTS.B

,

28

.98

%

,

1/19/25

..

126

129

991746200.UG.FTS.B

,

28

.98

%

,

1/19/25

..

181

187

991746728.UG.FTS.B

,

28

.98

%

,

1/19/25

..

35

36

991748030.UG.FTS.B

,

28

.98

%

,

1/19/25

..

54

55

991783620.UG.FTS.B

,

28

.98

%

,

1/19/25

..

133

137

991616379.UG.FTS.B

,

29

.45

%

,

1/19/25

..

51

51

991547157.UG.FTS.B

,

29

.46

%

,

1/19/25

..

208

211

991550875.UG.FTS.B

,

29

.47

%

,

1/19/25

..

683

711

991767247.UG.FTS.B

,

29

.47

%

,

1/19/25

..

210

217

991551878.UG.FTS.B

,

29

.48

%

,

1/19/25

..

80

80

991542015.UG.FTS.B

,

29

.49

%

,

1/19/25

..

125

130

991547832.UG.FTS.B

,

29

.49

%

,

1/19/25

..

77

78

991556769.UG.FTS.B

,

29

.49

%

,

1/19/25

..

57

58

991559196.UG.FTS.B

,

29

.49

%

,

1/19/25

..

1,497

1,520

991567620.UG.FTS.B

,

29

.49

%

,

1/19/25

..

100

103

991575387.UG.FTS.B

,

29

.49

%

,

1/19/25

..

81

85

991587154.UG.FTS.B

,

29

.49

%

,

1/19/25

..

100

15

991589395.UG.FTS.B

,

29

.49

%

,

1/19/25

..

186

191

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991710813.UG.FTS.B

,

29

.49

%

,

1/19/25

..

$

4

$

4

991719174.UG.FTS.B

,

29

.49

%

,

1/19/25

..

464

476

991721350.UG.FTS.B

,

29

.49

%

,

1/19/25

..

936

974

991769796.UG.FTS.B

,

29

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,

1/19/25

..

49

51

991771466.UG.FTS.B

,

29

.49

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,

1/19/25

..

64

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991773161.UG.FTS.B

,

29

.49

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,

1/19/25

..

167

173

991782580.UG.FTS.B

,

29

.49

%

,

1/19/25

..

40

41

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,

14

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%

,

1/20/25

..

81

5

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,

19

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%

,

1/20/25

..

162

13

991558664.UG.FTS.B

,

19

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%

,

1/20/25

..

143

147

991560098.UG.FTS.B

,

19

.99

%

,

1/20/25

..

69

71

991563863.UG.FTS.B

,

19

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%

,

1/20/25

..

124

128

991567021.UG.FTS.B

,

19

.99

%

,

1/20/25

..

166

172

991575551.UG.FTS.B

,

19

.99

%

,

1/20/25

..

359

370

991579154.UG.FTS.B

,

19

.99

%

,

1/20/25

..

61

63

991580969.UG.FTS.B

,

19

.99

%

,

1/20/25

..

424

437

991591112.UG.FTS.B

,

19

.99

%

,

1/20/25

..

118

121

991613122.UG.FTS.B

,

19

.99

%

,

1/20/25

..

84

87

991615000.UG.FTS.B

,

19

.99

%

,

1/20/25

..

162

168

991635746.UG.FTS.B

,

19

.99

%

,

1/20/25

..

103

103

991642370.UG.FTS.B

,

19

.99

%

,

1/20/25

..

102

106

991650312.UG.FTS.B

,

19

.99

%

,

1/20/25

..

104

106

991666023.UG.FTS.B

,

19

.99

%

,

1/20/25

..

87

90

991699684.UG.FTS.B

,

19

.99

%

,

1/20/25

..

52

54

991751909.UG.FTS.B

,

19

.99

%

,

1/20/25

..

60

62

991674160.UG.FTS.B

,

25

.95

%

,

1/20/25

..

136

19

991693406.UG.FTS.B

,

27

.95

%

,

1/20/25

..

442

445

991567052.UG.FTS.B

,

27

.99

%

,

1/20/25

..

27

28

991682363.UG.FTS.B

,

27

.99

%

,

1/20/25

..

612

627

991544408.UG.FTS.B

,

28

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%

,

1/20/25

..

44

45

991545892.UG.FTS.B

,

28

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%

,

1/20/25

..

6

6

991546136.UG.FTS.B

,

28

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%

,

1/20/25

..

21

21

991547592.UG.FTS.B

,

28

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%

,

1/20/25

..

5,159

354

991547593.UG.FTS.B

,

28

.98

%

,

1/20/25

..

119

124

991552893.UG.FTS.B

,

28

.98

%

,

1/20/25

..

164

169

991553649.UG.FTS.B

,

28

.98

%

,

1/20/25

..

511

530

991556261.UG.FTS.B

,

28

.98

%

,

1/20/25

..

372

382

991558522.UG.FTS.B

,

28

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%

,

1/20/25

..

9

9

991559055.UG.FTS.B

,

28

.98

%

,

1/20/25

..

1,393

1,415

991559725.UG.FTS.B

,

28

.98

%

,

1/20/25

..

289

300

991561334.UG.FTS.B

,

28

.98

%

,

1/20/25

..

181

188

991562380.UG.FTS.B

,

28

.98

%

,

1/20/25

..

85

88

991564330.UG.FTS.B

,

28

.98

%

,

1/20/25

..

49

51

991566285.UG.FTS.B

,

28

.98

%

,

1/20/25

..

100

104

991568849.UG.FTS.B

,

28

.98

%

,

1/20/25

..

63

65

991568936.UG.FTS.B

,

28

.98

%

,

1/20/25

..

119

123

991570565.UG.FTS.B

,

28

.98

%

,

1/20/25

..

75

1

991571433.UG.FTS.B

,

28

.98

%

,

1/20/25

..

68

70

991572223.UG.FTS.B

,

28

.98

%

,

1/20/25

..

723

50

991575019.UG.FTS.B

,

28

.98

%

,

1/20/25

..

203

211

991579033.UG.FTS.B

,

28

.98

%

,

1/20/25

..

62

64

991580751.UG.FTS.B

,

28

.98

%

,

1/20/25

..

132

134

991581464.UG.FTS.B

,

28

.98

%

,

1/20/25

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65

66

991583574.UG.FTS.B

,

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%

,

1/20/25

..

19

19

991584117.UG.FTS.B

,

28

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,

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..

217

223

991589534.UG.FTS.B

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28

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201

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150

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337

348

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991602891.UG.FTS.B

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65

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421

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68

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152

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28

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,

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146

150

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28

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165

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193

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28

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,

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..

110

114

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28

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,

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31

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82

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28

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64

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28

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,

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..

139

143

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17

17

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28

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..

13

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19

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75

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12

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30

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36

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424

Description

Principal

Amount

Value

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Inc.

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(continued)

991544749.UG.FTS.B

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105

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189

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58

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30

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124

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4

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213

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338

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176

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29

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,

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..

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29

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..

83

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,

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..

41

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,

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..

107

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..

41

42

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29

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,

1/20/25

..

40

42

991706369.UG.FTS.B

,

29

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%

,

1/20/25

..

44

46

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

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Principal

Amount

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991709703.UG.FTS.B

,

29

.49

%

,

1/20/25

..

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336

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167

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2

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27

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105

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..

127

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8

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..

28

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,

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..

251

254

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..

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..

349

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,

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114

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206

213

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301

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329

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..

174

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220

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216

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..

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41

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71

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,

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376

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,

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..

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,

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Description

Principal

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163

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37

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109

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46

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36

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129

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174

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112

Franklin

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Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

85

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

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Card

(continued)

991684874.UG.FTS.B

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24

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70

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65

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113

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451

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42

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..

138

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64

66

Description

Principal

Amount

Value

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(continued)

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,

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366

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189

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149

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166

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39

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21

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4

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110

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201

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..

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..

259

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219

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449

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115

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..

124

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70

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138

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212

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,

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..

52

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,

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..

286

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..

127

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,

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155

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,

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,

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45

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27

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39

40

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173

Description

Principal

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Value

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23

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110

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53

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78

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72

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,

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..

72

73

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

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(continued)

franklintempleton.com

The

accompanying

notes

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integral

part

of

these

financial

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Annual

Report

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991637756.UG.FTS.B

,

29

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Franklin

Strategic

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(continued)

franklintempleton.com

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88

Description

Principal

Amount

Value

Marketplace

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(continued)

Upgrade,

Inc.

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(continued)

991683132.UG.FTS.B

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163

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Description

Principal

Amount

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%

,

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114

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991809198.UG.FTS.B

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Description

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18

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75

76

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

Description

Principal

Amount

Value

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(continued)

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Inc.

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991727032.UG.FTS.B

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Description

Principal

Amount

Value

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,

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86

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137

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1,754

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675

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353

360

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22

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2,881

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454

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431

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504

514

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27

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..

119

123

991851167.UG.FTS.B

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27

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..

5

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28

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48

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991700313.UG.FTS.B

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28

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,

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..

42

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46

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991701698.UG.FTS.B

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28

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,

2/06/25

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98

100

991703634.UG.FTS.B

,

28

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,

2/06/25

..

105

107

991706049.UG.FTS.B

,

28

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,

2/06/25

..

67

67

991706891.UG.FTS.B

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28

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,

2/06/25

..

41

42

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28

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,

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..

118

121

991710098.UG.FTS.B

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28

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2/06/25

..

58

59

991717052.UG.FTS.B

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28

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,

2/06/25

..

208

214

991718507.UG.FTS.B

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28

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,

2/06/25

..

74

75

991718999.UG.FTS.B

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28

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,

2/06/25

..

15

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991725784.UG.FTS.B

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28

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,

2/06/25

..

78

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991725860.UG.FTS.B

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..

37

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991728916.UG.FTS.B

,

28

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,

2/06/25

..

53

53

991729721.UG.FTS.B

,

28

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,

2/06/25

..

165

168

991732224.UG.FTS.B

,

28

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,

2/06/25

..

84

84

991734751.UG.FTS.B

,

28

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,

2/06/25

..

196

196

991734815.UG.FTS.B

,

28

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,

2/06/25

..

110

113

991739880.UG.FTS.B

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28

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,

2/06/25

..

61

62

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28

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,

2/06/25

..

82

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991749171.UG.FTS.B

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28

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,

2/06/25

..

375

380

991752424.UG.FTS.B

,

28

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,

2/06/25

..

78

5

991756884.UG.FTS.B

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28

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,

2/06/25

..

128

133

991762162.UG.FTS.B

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28

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,

2/06/25

..

122

126

991766105.UG.FTS.B

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28

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,

2/06/25

..

244

33

991766305.UG.FTS.B

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28

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,

2/06/25

..

195

201

991770800.UG.FTS.B

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28

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,

2/06/25

..

60

62

991787293.UG.FTS.B

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28

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,

2/06/25

..

57

58

991794977.UG.FTS.B

,

28

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,

2/06/25

..

40

13

991813823.UG.FTS.B

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28

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,

2/06/25

..

93

6

991817047.UG.FTS.B

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28

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..

329

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991823294.UG.FTS.B

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28

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..

99

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28

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,

2/06/25

..

743

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991826493.UG.FTS.B

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28

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,

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..

49

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991832752.UG.FTS.B

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28

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,

2/06/25

..

277

286

991836050.UG.FTS.B

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28

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,

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..

111

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991837625.UG.FTS.B

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28

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,

2/06/25

..

39

39

991842664.UG.FTS.B

,

28

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%

,

2/06/25

..

72

74

991852569.UG.FTS.B

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28

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%

,

2/06/25

..

14

14

991855239.UG.FTS.B

,

28

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,

2/06/25

..

315

322

991862866.UG.FTS.B

,

28

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,

2/06/25

..

1,462

1,501

991868227.UG.FTS.B

,

28

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,

2/06/25

..

348

107

991868577.UG.FTS.B

,

28

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,

2/06/25

..

102

105

991896380.UG.FTS.B

,

28

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%

,

2/06/25

..

2,791

2,855

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991930551.UG.FTS.B

,

28

.98

%

,

2/06/25

..

$

162

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166

991934063.UG.FTS.B

,

28

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,

2/06/25

..

23

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991712510.UG.FTS.B

,

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,

2/06/25

..

129

134

991690486.UG.FTS.B

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29

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,

2/06/25

..

58

58

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29

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,

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..

560

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29

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..

86

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29

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..

127

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..

46

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,

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..

94

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29

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..

97

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29

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..

41

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..

70

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,

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..

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,

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..

54

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,

2/06/25

..

57

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991715596.UG.FTS.B

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29

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..

479

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..

110

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29

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,

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..

142

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29

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,

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..

145

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,

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..

107

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29

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,

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..

106

110

991738035.UG.FTS.B

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29

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,

2/06/25

..

44

46

991738990.UG.FTS.B

,

29

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,

2/06/25

..

278

279

991746112.UG.FTS.B

,

29

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,

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..

33

33

991746952.UG.FTS.B

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29

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,

2/06/25

..

111

113

991749942.UG.FTS.B

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29

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,

2/06/25

..

184

192

991759741.UG.FTS.B

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29

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,

2/06/25

..

133

138

991767120.UG.FTS.B

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29

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,

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..

13

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991767728.UG.FTS.B

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29

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,

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..

86

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991769688.UG.FTS.B

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29

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,

2/06/25

..

168

173

991769928.UG.FTS.B

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29

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,

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..

66

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991798596.UG.FTS.B

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29

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,

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..

13

13

991800849.UG.FTS.B

,

29

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,

2/06/25

..

31

11

991812212.UG.FTS.B

,

29

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,

2/06/25

..

69

30

991815674.UG.FTS.B

,

29

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,

2/06/25

..

188

192

991816101.UG.FTS.B

,

29

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,

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..

83

86

991821554.UG.FTS.B

,

29

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,

2/06/25

..

53

55

991826917.UG.FTS.B

,

29

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%

,

2/06/25

..

226

233

991852176.UG.FTS.B

,

29

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,

2/06/25

..

56

58

991862795.UG.FTS.B

,

29

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,

2/06/25

..

563

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991869807.UG.FTS.B

,

29

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,

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..

63

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991886716.UG.FTS.B

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29

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,

2/06/25

..

53

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29

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,

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..

8

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991914065.UG.FTS.B

,

29

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,

2/06/25

..

70

72

991736213.UG.FTS.B

,

14

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,

2/07/25

..

163

165

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,

18

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,

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..

50

50

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18

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,

2/07/25

..

55

56

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,

19

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,

2/07/25

..

188

189

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19

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,

2/07/25

..

128

130

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,

19

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,

2/07/25

..

43

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,

19

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,

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..

150

155

991929766.UG.FTS.B

,

19

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,

2/07/25

..

73

75

991843735.UG.FTS.B

,

21

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,

2/07/25

..

237

72

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,

22

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,

2/07/25

..

163

166

991762975.UG.FTS.B

,

25

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,

2/07/25

..

158

161

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,

27

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%

,

2/07/25

..

166

173

991800353.UG.FTS.B

,

27

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%

,

2/07/25

..

39

40

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991880949.UG.FTS.B

,

27

.99

%

,

2/07/25

..

$

11

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991697103.UG.FTS.B

,

28

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,

2/07/25

..

244

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,

28

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,

2/07/25

..

202

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,

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..

89

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205

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..

81

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28

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,

2/07/25

..

49

51

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28

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,

2/07/25

..

131

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28

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,

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..

597

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991724529.UG.FTS.B

,

28

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,

2/07/25

..

670

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,

28

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,

2/07/25

..

168

171

991740286.UG.FTS.B

,

28

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%

,

2/07/25

..

373

385

991743968.UG.FTS.B

,

28

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%

,

2/07/25

..

213

220

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,

28

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%

,

2/07/25

..

49

51

991772287.UG.FTS.B

,

28

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%

,

2/07/25

..

186

192

991784791.UG.FTS.B

,

28

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,

2/07/25

..

104

106

991799326.UG.FTS.B

,

28

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,

2/07/25

..

249

255

991803039.UG.FTS.B

,

28

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%

,

2/07/25

..

340

350

991806653.UG.FTS.B

,

28

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%

,

2/07/25

..

128

133

991807039.UG.FTS.B

,

28

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%

,

2/07/25

..

120

123

991807123.UG.FTS.B

,

28

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%

,

2/07/25

..

240

243

991811191.UG.FTS.B

,

28

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%

,

2/07/25

..

221

222

991814223.UG.FTS.B

,

28

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%

,

2/07/25

..

67

69

991830675.UG.FTS.B

,

28

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%

,

2/07/25

..

93

13

991835648.UG.FTS.B

,

28

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%

,

2/07/25

..

74

76

991849419.UG.FTS.B

,

28

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%

,

2/07/25

..

191

196

991854543.UG.FTS.B

,

28

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%

,

2/07/25

..

132

–

991882872.UG.FTS.B

,

28

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%

,

2/07/25

..

135

138

991922608.UG.FTS.B

,

28

.98

%

,

2/07/25

..

114

115

991935487.UG.FTS.B

,

28

.98

%

,

2/07/25

..

59

19

991709575.UG.FTS.B

,

29

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%

,

2/07/25

..

132

137

991705974.UG.FTS.B

,

29

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%

,

2/07/25

..

174

175

991712449.UG.FTS.B

,

29

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%

,

2/07/25

..

67

68

991712892.UG.FTS.B

,

29

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%

,

2/07/25

..

108

108

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,

29

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%

,

2/07/25

..

75

78

991718167.UG.FTS.B

,

29

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%

,

2/07/25

..

56

59

991720150.UG.FTS.B

,

29

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%

,

2/07/25

..

48

48

991721040.UG.FTS.B

,

29

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%

,

2/07/25

..

55

57

991721496.UG.FTS.B

,

29

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%

,

2/07/25

..

68

–

991723604.UG.FTS.B

,

29

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%

,

2/07/25

..

30

2

991728336.UG.FTS.B

,

29

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%

,

2/07/25

..

18

18

991729210.UG.FTS.B

,

29

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%

,

2/07/25

..

289

296

991729445.UG.FTS.B

,

29

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,

2/07/25

..

43

6

991729898.UG.FTS.B

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29

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%

,

2/07/25

..

26

27

991730072.UG.FTS.B

,

29

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%

,

2/07/25

..

142

143

991730418.UG.FTS.B

,

29

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%

,

2/07/25

..

622

629

991733135.UG.FTS.B

,

29

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%

,

2/07/25

..

1,048

1,062

991734242.UG.FTS.B

,

29

.49

%

,

2/07/25

..

102

7

991734975.UG.FTS.B

,

29

.49

%

,

2/07/25

..

28

29

991735915.UG.FTS.B

,

29

.49

%

,

2/07/25

..

143

148

991736857.UG.FTS.B

,

29

.49

%

,

2/07/25

..

631

653

991737666.UG.FTS.B

,

29

.49

%

,

2/07/25

..

37

37

991738244.UG.FTS.B

,

29

.49

%

,

2/07/25

..

58

58

991741355.UG.FTS.B

,

29

.49

%

,

2/07/25

..

10

10

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

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92

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Amount

Value

Marketplace

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991745513.UG.FTS.B

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$

125

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,

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12

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74

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265

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75

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80

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29

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..

56

57

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29

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,

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..

48

48

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29

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,

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..

167

172

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29

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,

2/07/25

..

209

211

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29

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,

2/07/25

..

70

–

991799844.UG.FTS.B

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29

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,

2/07/25

..

14

15

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29

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..

6

5

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,

29

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,

2/07/25

..

67

67

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29

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,

2/07/25

..

115

117

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29

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,

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..

62

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,

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..

19

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29

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,

2/07/25

..

135

136

991827340.UG.FTS.B

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29

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,

2/07/25

..

489

503

991832087.UG.FTS.B

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29

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,

2/07/25

..

62

20

991837440.UG.FTS.B

,

29

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,

2/07/25

..

417

28

991842138.UG.FTS.B

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29

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,

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..

90

93

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29

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,

2/07/25

..

89

92

991843151.UG.FTS.B

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29

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%

,

2/07/25

..

342

349

991843726.UG.FTS.B

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29

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,

2/07/25

..

144

146

991843750.UG.FTS.B

,

29

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,

2/07/25

..

18

18

991848794.UG.FTS.B

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29

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,

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..

12

12

991852346.UG.FTS.B

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29

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,

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..

93

96

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29

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,

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..

7

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29

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,

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..

108

113

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29

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,

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..

68

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29

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,

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..

37

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29

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..

396

407

991914240.UG.FTS.B

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29

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..

141

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,

2/07/25

..

159

164

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29

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..

71

73

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29

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..

370

385

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14

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640

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164

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..

110

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162

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164

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53

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414

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.....

100

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475

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,

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.....

964

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.....

13

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..

100

102

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..

11

11

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%

,

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..

332

338

Description

Principal

Amount

Value

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Card

(continued)

991863273.UG.FTS.B

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16

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,

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$

722

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51

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331

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172

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..

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..

56

50

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28

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,

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14

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,

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..

496

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,

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..

64

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29

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,

4/20/25

..

59

62

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,

20

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%

,

4/21/25

..

204

165

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29

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,

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..

48

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29

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,

4/21/25

..

106

7

991742865.UG.FTS.B

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29

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,

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..

331

267

991697266.UG.FTS.B

,

21

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,

4/22/25

..

144

148

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,

21

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,

4/22/25

..

855

868

991617012.UG.FTS.B

,

29

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,

4/22/25

..

151

–

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,

4/23/25

..

121

8

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28

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,

4/23/25

..

108

111

991609616.UG.FTS.B

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28

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,

4/24/25

..

190

152

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,

29

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,

4/24/25

..

392

314

991838313.UG.FTS.B

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15

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%

,

4/25/25

..

797

814

991724571.UG.FTS.B

,

28

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,

5/05/25

..

102

106

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29

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%

,

5/05/25

..

635

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28

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,

5/06/25

..

568

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28

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,

5/06/25

..

68

71

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28

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,

5/06/25

..

251

197

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29

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,

5/06/25

..

40

37

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28

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,

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173

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29

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,

5/07/25

..

180

153

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..

47

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29

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,

5/07/25

..

276

227

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28

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,

5/16/25

..

132

138

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,

19

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,

5/17/25

..

812

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991740124.UG.FTS.B

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,

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..

62

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29

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,

5/17/25

..

128

134

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28

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%

,

5/18/25

..

380

398

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,

29

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%

,

5/20/25

..

611

638

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,

29

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%

,

5/21/25

..

101

15

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28

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,

5/22/25

..

435

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29

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,

5/22/25

..

96

14

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29

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%

,

5/24/25

..

30

31

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,

29

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%

,

6/03/25

..

267

276

991772904.UG.FTS.B

,

19

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%

,

6/05/25

..

87

89

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,

28

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%

,

6/05/25

..

117

121

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,

28

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%

,

6/05/25

..

109

113

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,

28

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,

6/05/25

..

136

140

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,

22

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,

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..

3,282

–

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,

29

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%

,

6/07/25

..

123

17

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,

29

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%

,

6/07/25

..

227

8

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

93

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991784176.UG.FTS.B

,

28

.98

%

,

6/16/25

..

$

188

$

13

991579317.UG.FTS.B

,

29

.49

%

,

6/16/25

..

87

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6/23/25

..

151

21

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7/05/25

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108

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..

722

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,

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7/24/25

..

133

114

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8/04/25

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116

119

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,

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825

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,

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8/18/25

..

77

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,

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,

8/20/25

..

317

323

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,

8/22/25

..

396

306

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,

19

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%

,

8/24/25

..

523

69

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,

17

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%

,

9/02/25

..

105

77

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,

27

.99

%

,

9/05/25

..

185

13

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,

29

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%

,

9/05/25

..

61

64

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,

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,

9/16/25

..

66

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,

29

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,

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910

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19

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%

,

9/17/25

..

196

26

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19

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9/17/25

..

347

46

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,

27

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%

,

9/17/25

..

352

366

991656357.UG.FTS.B

,

29

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,

9/17/25

..

280

292

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,

28

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%

,

9/21/25

..

441

461

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,

29

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%

,

9/24/25

..

151

159

991754815.UG.FTS.B

,

29

.49

%

,

9/24/25

..

75

80

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,

20

.46

%

,

10/04/25

.

144

11

991693967.UG.FTS.B

,

19

.99

%

,

10/05/25

.

152

118

991853603.UG.FTS.B

,

28

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%

,

10/05/25

.

263

18

991728473.UG.FTS.B

,

29

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%

,

10/06/25

.

900

691

991734435.UG.FTS.B

,

29

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%

,

10/06/25

.

95

24

991601320.UG.FTS.B

,

28

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%

,

10/17/25

.

535

416

991731697.UG.FTS.B

,

29

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%

,

11/05/25

.

192

13

991820976.UG.FTS.B

,

29

.49

%

,

11/05/25

.

407

428

991657177.UG.FTS.B

,

28

.98

%

,

11/17/25

.

1,888

1,963

991723599.UG.FTS.B

,

29

.49

%

,

12/06/25

.

86

11

991786433.UG.FTS.B

,

20

.46

%

,

12/21/25

.

104

106

991730761.UG.FTS.B

,

28

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%

,

12/24/25

.

125

131

991933771.UG.FTS.B

,

29

.49

%

,

1/06/26

..

200

145

991726248.UG.FTS.B

,

21

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%

,

1/08/26

..

117

88

991555378.UG.FTS.B

,

29

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%

,

1/17/26

..

111

113

991579988.UG.FTS.B

,

29

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%

,

1/17/26

..

117

124

991595841.UG.FTS.B

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29

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,

1/17/26

..

135

141

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29

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,

1/17/26

..

1,345

1,393

991659287.UG.FTS.B

,

29

.49

%

,

1/24/26

..

125

132

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,

17

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%

,

1/25/26

..

677

5

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,

28

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,

2/05/26

..

773

52

991814320.UG.FTS.B

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29

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,

2/05/26

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303

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,

2/16/26

..

823

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,

29

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%

,

2/23/26

..

116

121

991695320.UG.FTS.B

,

29

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%

,

3/05/26

..

93

70

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28

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%

,

4/06/26

..

98

–

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,

29

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,

4/06/26

..

90

92

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,

29

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%

,

4/17/26

..

94

68

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,

29

.49

%

,

5/04/26

..

668

–

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,

22

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%

,

5/08/26

..

365

252

991802598.UG.FTS.B

,

21

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%

,

7/07/26

..

2,023

2,040

991735485.UG.FTS.B

,

28

.98

%

,

7/07/26

..

134

93

991576855.UG.FTS.B

,

28

.98

%

,

7/17/26

..

1,959

135

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

991788566.UG.FTS.B

,

29

.49

%

,

7/21/26

..

$

94

$

67

991656796.UG.FTS.B

,

29

.49

%

,

8/22/26

..

350

361

991783713.UG.FTS.B

,

29

.49

%

,

9/05/26

..

378

256

991571658.UG.FTS.B

,

28

.98

%

,

9/15/26

..

160

165

991648967.UG.FTS.B

,

29

.49

%

,

10/24/26

.

108

78

991730563.UG.FTS.B

,

29

.49

%

,

12/06/26

.

418

28

991735384.UG.FTS.B

,

29

.49

%

,

1/06/27

..

360

238

991658250.UG.FTS.B

,

16

.99

%

,

1/20/27

..

1,069

1,092

991607046.UG.FTS.B

,

21

.99

%

,

1/20/27

..

3,128

3,284

991624113.UG.FTS.B

,

17

.99

%

,

1/29/27

..

188

190

991664785.UG.FTS.B

,

18

.98

%

,

1/29/27

..

220

232

991721939.UG.FTS.B

,

16

.99

%

,

2/02/27

..

940

982

991734117.UG.FTS.B

,

17

.99

%

,

2/02/27

..

295

304

991894965.UG.FTS.B

,

16

.99

%

,

2/03/27

..

3,987

4,147

991663324.UG.FTS.B

,

22

.36

%

,

5/29/27

..

99

103

991757545.UG.FTS.B

,

28

.98

%

,

11/06/27

.

191

118

991678457.UG.FTS.B

,

19

.99

%

,

11/30/27

.

480

494

991646401.UG.FTS.B

,

29

.49

%

,

1/20/28

..

41

43

991858699.UG.FTS.B

,

29

.49

%

,

3/07/28

..

43

14

991759963.UG.FTS.B

,

29

.49

%

,

3/18/28

..

21

3

991719643.UG.FTS.B

,

29

.49

%

,

9/22/28

..

150

89

991704902.UG.FTS.B

,

28

.98

%

,

10/18/28

.

1

1

991817987.UG.FTS.B

,

29

.49

%

,

1/07/29

..

1

–

991782434.UG.FTS.B

,

19

.3

%

,

1/17/29

...

59

–

991572409.UG.FTS.B

,

19

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%

,

1/17/29

..

3

–

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,

19

.99

%

,

1/23/29

..

17

1

991660260.UG.FTS.B

,

28

.48

%

,

1/23/29

..

31

–

991599536.UG.FTS.B

,

29

.49

%

,

1/23/29

..

57

4

991618299.UG.FTS.B

,

29

.49

%

,

1/23/29

..

3

3

991642061.UG.FTS.B

,

29

.49

%

,

1/23/29

..

10

–

991801395.UG.FTS.B

,

28

.48

%

,

1/24/29

..

18

1

991688029.UG.FTS.B

,

29

.49

%

,

1/24/29

..

47

3

991807161.UG.FTS.B

,

16

.49

%

,

2/01/29

..

9

–

991681257.UG.FTS.B

,

17

.49

%

,

2/03/29

..

7

–

991827774.UG.FTS.B

,

28

.98

%

,

2/03/29

..

2

2

991726705.UG.FTS.B

,

29

.49

%

,

2/04/29

..

12

–

991797219.UG.FTS.B

,

29

.48

%

,

2/05/29

..

37

36

991801405.UG.FTS.B

,

29

.49

%

,

2/05/29

..

125

9

991718257.UG.FTS.B

,

20

.96

%

,

2/06/29

..

26

2

991760581.UG.FTS.B

,

29

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%

,

2/06/29

..

16

–

991845179.UG.FTS.B

,

29

.49

%

,

2/06/29

..

21

–

991864157.UG.FTS.B

,

29

.49

%

,

2/06/29

..

1

–

991913163.UG.FTS.B

,

29

.49

%

,

2/06/29

..

11

–

991724940.UG.FTS.B

,

29

.49

%

,

2/07/29

..

21

–

991767246.UG.FTS.B

,

29

.49

%

,

2/07/29

..

1

–

991794751.UG.FTS.B

,

29

.49

%

,

2/07/29

..

30

–

991842041.UG.FTS.B

,

29

.49

%

,

2/07/29

..

13

–

991844653.UG.FTS.B

,

29

.49

%

,

2/07/29

..

15

–

991663176.UG.FTS.B

,

29

.49

%

,

3/17/29

..

2

2

991812847.UG.FTS.B

,

29

.49

%

,

3/22/29

..

1

1

991670873.UG.FTS.B

,

16

.99

%

,

3/26/29

..

2

–

991712564.UG.FTS.B

,

29

.48

%

,

4/17/29

..

23

23

991575505.UG.FTS.B

,

29

.49

%

,

4/17/29

..

269

19

991689800.UG.FTS.B

,

29

.49

%

,

4/18/29

..

15

15

991716207.UG.FTS.B

,

29

.49

%

,

4/18/29

..

6

6

991717854.UG.FTS.B

,

29

.49

%

,

4/18/29

..

15

1

991721326.UG.FTS.B

,

29

.49

%

,

4/22/29

..

5

5

991676577.UG.FTS.B

,

29

.49

%

,

4/23/29

..

1

1

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

991781162.UG.FTS.B

,

29

.49

%

,

4/23/29

..

$

28

$

5

991601477.UG.FTS.B

,

28

.48

%

,

4/24/29

..

4

4

991831913.UG.FTS.B

,

14

.98

%

,

4/30/29

..

2

2

991734377.UG.FTS.B

,

17

.99

%

,

5/02/29

..

2

2

991723913.UG.FTS.B

,

29

.49

%

,

5/05/29

..

1

1

991827302.UG.FTS.B

,

29

.49

%

,

5/05/29

..

28

2

991896635.UG.FTS.B

,

21

.48

%

,

5/06/29

..

60

11

991894974.UG.FTS.B

,

29

.49

%

,

5/06/29

..

176

13

991896068.UG.FTS.B

,

29

.49

%

,

5/06/29

..

3

3

991805595.UG.FTS.B

,

28

.98

%

,

5/07/29

..

2

2

991809459.UG.FTS.B

,

28

.98

%

,

5/07/29

..

4

3

991736572.UG.FTS.B

,

29

.48

%

,

5/07/29

..

54

22

991738742.UG.FTS.B

,

29

.49

%

,

5/07/29

..

5

5

991552817.UG.FTS.B

,

29

.49

%

,

5/15/29

..

21

4

991721576.UG.FTS.B

,

29

.49

%

,

5/18/29

..

4

4

991676736.UG.FTS.B

,

27

.99

%

,

5/22/29

..

17

1

991638937.UG.FTS.B

,

29

.49

%

,

5/22/29

..

5

5

991716555.UG.FTS.B

,

28

.98

%

,

5/24/29

..

10

10

991796141.UG.FTS.B

,

28

.98

%

,

5/24/29

..

2

2

991715282.UG.FTS.B

,

29

.49

%

,

3/06/32

..

3

4

991763220.UG.FTS.B

,

29

.49

%

,

3/07/32

..

15

15

258,873

Upstart

Network,

Inc.

L1668275.UP.FTS.B

,

5

.93

%

,

9/14/24

....

479

476

L1708965.UP.FTS.B

,

6

.03

%

,

9/14/24

....

255

253

L1711338.UP.FTS.B

,

7

.31

%

,

9/14/24

.....

930

926

FW1711179.UP.FTS.B

,

8

.08

%

,

9/14/24

...

1,306

1,303

L1710349.UP.FTS.B

,

8

.75

%

,

9/14/24

....

775

773

L1709609.UP.FTS.B

,

9

.38

%

,

9/14/24

....

832

829

L1709151.UP.FTS.B

,

12

.24

%

,

9/14/24

....

2,906

2,905

L1709421.UP.FTS.B

,

13

.37

%

,

9/14/24

....

628

628

L1709684.UP.FTS.B

,

13

.76

%

,

9/14/24

....

376

363

L1709128.UP.FTS.B

,

16

.69

%

,

9/14/24

....

154

155

L1710058.UP.FTS.B

,

17

.29

%

,

9/14/24

....

509

511

L1708735.UP.FTS.B

,

18

.16

%

,

9/14/24

....

869

872

L1712571.UP.FTS.B

,

19

.22

%

,

9/14/24

....

264

265

L1710755.UP.FTS.B

,

19

.46

%

,

9/14/24

....

879

883

L1711631.UP.FTS.B

,

20

.05

%

,

9/14/24

....

372

374

L1701584.UP.FTS.B

,

21

.4

%

,

9/14/24

....

330

331

L1709086.UP.FTS.B

,

21

.87

%

,

9/14/24

....

1,241

1,250

L1712071.UP.FTS.B

,

22

.99

%

,

9/14/24

....

403

405

L1711537.UP.FTS.B

,

23

.1

%

,

9/14/24

.....

329

331

L1711075.UP.FTS.B

,

23

.16

%

,

9/14/24

....

274

276

L1709547.UP.FTS.B

,

23

.36

%

,

9/14/24

....

2,678

194

L1709631.UP.FTS.B

,

24

.23

%

,

9/14/24

....

1,109

1,117

FW1709118.UP.FTS.B

,

27

.71

%

,

9/14/24

..

384

387

FW1710694.UP.FTS.B

,

29

.46

%

,

9/14/24

..

3,909

3,937

FW1710062.UP.FTS.B

,

30

.06

%

,

9/14/24

..

356

357

L1873274.UP.FTS.B

,

6

.44

%

,

10/18/24

....

858

852

FW1874507.UP.FTS.B

,

7

.36

%

,

10/18/24

..

547

546

L1873016.UP.FTS.B

,

8

.3

%

,

10/18/24

....

738

735

L1873876.UP.FTS.B

,

8

.87

%

,

10/18/24

....

3,334

3,207

FW1874503.UP.FTS.B

,

9

.4

%

,

10/18/24

...

1,630

1,626

L1873457.UP.FTS.B

,

9

.58

%

,

10/18/24

....

187

187

L1872565.UP.FTS.B

,

13

.63

%

,

10/18/24

...

1,138

1,098

L1873890.UP.FTS.B

,

14

.95

%

,

10/18/24

...

438

441

L1873908.UP.FTS.B

,

15

.55

%

,

10/18/24

...

301

303

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1873474.UP.FTS.B

,

16

.06

%

,

10/18/24

...

$

565

$

568

L1873316.UP.FTS.B

,

16

.33

%

,

10/18/24

...

665

671

FW1873590.UP.FTS.B

,

17

.67

%

,

10/18/24

.

2,144

2,083

FW1874334.UP.FTS.B

,

18

.25

%

,

10/18/24

.

1,756

1,767

L1869487.UP.FTS.B

,

18

.66

%

,

10/18/24

...

1,247

1,254

L1874319.UP.FTS.B

,

19

.26

%

,

10/18/24

...

1,461

1,419

FW1859012.UP.FTS.B

,

19

.54

%

,

10/18/24

.

3,143

3,162

L1873264.UP.FTS.B

,

20

.49

%

,

10/18/24

...

381

384

L1873242.UP.FTS.B

,

21

.35

%

,

10/18/24

...

536

539

L1872932.UP.FTS.B

,

21

.9

%

,

10/18/24

....

3,875

3,904

L1873736.UP.FTS.B

,

22

.12

%

,

10/18/24

...

2,155

2,168

L1873171.UP.FTS.B

,

22

.25

%

,

10/18/24

...

432

435

FW1873087.UP.FTS.B

,

22

.36

%

,

10/18/24

.

432

435

L1873179.UP.FTS.B

,

22

.76

%

,

10/18/24

...

366

368

L1874136.UP.FTS.B

,

23

.45

%

,

10/18/24

...

694

698

FW1873053.UP.FTS.B

,

23

.65

%

,

10/18/24

.

482

485

L1872590.UP.FTS.B

,

23

.91

%

,

10/18/24

...

603

608

FW1874061.UP.FTS.B

,

24

.44

%

,

10/18/24

.

80

80

FW1866558.UP.FTS.B

,

27

.33

%

,

10/18/24

.

1,312

1,278

FW1873200.UP.FTS.B

,

28

.1

%

,

10/18/24

..

1,072

76

FW1870326.UP.FTS.B

,

28

.36

%

,

10/18/24

.

3,045

972

FW1874036.UP.FTS.B

,

28

.84

%

,

10/18/24

.

647

629

FW1873386.UP.FTS.B

,

29

.18

%

,

10/18/24

.

232

233

L1874133.UP.FTS.B

,

16

.04

%

,

10/21/24

...

1,009

1,015

L2009164.UP.FTS.B

,

7

.47

%

,

11/09/24

....

2,122

2,107

L2007742.UP.FTS.B

,

8

.31

%

,

11/09/24

....

536

534

FW2006255.UP.FTS.B

,

8

.72

%

,

11/09/24

..

559

558

L2006429.UP.FTS.B

,

9

.93

%

,

11/09/24

....

10,905

10,880

FW2005536.UP.FTS.B

,

10

.27

%

,

11/09/24

.

881

878

L2009057.UP.FTS.B

,

10

.3

%

,

11/09/24

....

2,389

2,382

FW2006816.UP.FTS.B

,

10

.79

%

,

11/09/24

.

1,589

1,586

L2007022.UP.FTS.B

,

11

.29

%

,

11/09/24

...

443

443

L2000304.UP.FTS.B

,

13

.97

%

,

11/09/24

...

935

934

L2009600.UP.FTS.B

,

14

.49

%

,

11/09/24

...

692

691

FW2004099.UP.FTS.B

,

15

.18

%

,

11/09/24

.

694

698

L2009870.UP.FTS.B

,

15

.75

%

,

11/09/24

...

697

697

L2005874.UP.FTS.B

,

15

.93

%

,

11/09/24

...

3,961

3,988

L1964575.UP.FTS.B

,

16

.42

%

,

11/09/24

...

469

472

L2006407.UP.FTS.B

,

16

.56

%

,

11/09/24

...

1,878

1,890

L2009557.UP.FTS.B

,

16

.56

%

,

11/09/24

...

1,407

1,417

FW2006915.UP.FTS.B

,

17

.05

%

,

11/09/24

.

471

475

L2009227.UP.FTS.B

,

17

.41

%

,

11/09/24

...

829

834

FW2006977.UP.FTS.B

,

17

.62

%

,

11/09/24

.

1,186

1,194

FW2009194.UP.FTS.B

,

19

.65

%

,

11/09/24

.

727

732

L2007765.UP.FTS.B

,

19

.9

%

,

11/09/24

....

1,678

1,686

L2009435.UP.FTS.B

,

20

.15

%

,

11/09/24

...

4,018

4,044

L2004417.UP.FTS.B

,

20

.16

%

,

11/09/24

...

722

726

L2008874.UP.FTS.B

,

20

.27

%

,

11/09/24

...

2,404

2,419

L2007505.UP.FTS.B

,

20

.32

%

,

11/09/24

...

781

786

L2008398.UP.FTS.B

,

20

.91

%

,

11/09/24

...

736

741

L2009328.UP.FTS.B

,

21

.06

%

,

11/09/24

...

418

421

L2008922.UP.FTS.B

,

22

.21

%

,

11/09/24

...

498

501

L2009367.UP.FTS.B

,

22

.33

%

,

11/09/24

...

2,242

2,257

L2009655.UP.FTS.B

,

22

.54

%

,

11/09/24

...

849

852

L2010143.UP.FTS.B

,

22

.58

%

,

11/09/24

...

544

547

FW2003014.UP.FTS.B

,

22

.75

%

,

11/09/24

.

4,379

4,407

FW2009937.UP.FTS.B

,

26

.34

%

,

11/09/24

.

603

599

FW2005316.UP.FTS.B

,

26

.93

%

,

11/09/24

.

261

262

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

95

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2008048.UP.FTS.B

,

28

.27

%

,

11/09/24

.

$

264

$

266

FW2008565.UP.FTS.B

,

28

.92

%

,

11/09/24

.

1,096

1,100

L2077512.UP.FTS.B

,

6

.51

%

,

11/19/24

....

1,049

1,043

L2077314.UP.FTS.B

,

7

.63

%

,

11/19/24

....

1,252

1,244

L2079482.UP.FTS.B

,

7

.7

%

,

11/19/24

.....

1,383

1,381

FW2078418.UP.FTS.B

,

7

.82

%

,

11/19/24

..

10,629

10,614

L2077413.UP.FTS.B

,

8

.09

%

,

11/19/24

....

791

788

L2077593.UP.FTS.B

,

8

.69

%

,

11/19/24

....

1,063

1,062

L2077781.UP.FTS.B

,

10

.54

%

,

11/19/24

...

469

468

L2077816.UP.FTS.B

,

11

%

,

11/19/24

.....

265

264

L2077041.UP.FTS.B

,

11

.38

%

,

11/19/24

...

1,090

1,091

L2077920.UP.FTS.B

,

15

.31

%

,

11/19/24

...

1,155

1,166

FW2076817.UP.FTS.B

,

16

.69

%

,

11/19/24

.

352

356

FW2078600.UP.FTS.B

,

18

.83

%

,

11/19/24

.

240

243

FW2076493.UP.FTS.B

,

20

.14

%

,

11/19/24

.

609

614

L2070757.UP.FTS.B

,

20

.15

%

,

11/19/24

...

438

443

L2077506.UP.FTS.B

,

20

.58

%

,

11/19/24

...

1,397

1,410

L2080270.UP.FTS.B

,

21

.47

%

,

11/19/24

...

988

997

FW2078088.UP.FTS.B

,

22

.1

%

,

11/19/24

..

81

81

FW2079771.UP.FTS.B

,

22

.21

%

,

11/19/24

.

1,243

1,255

L2074944.UP.FTS.B

,

23

.05

%

,

11/19/24

...

1,575

75

FW2078990.UP.FTS.B

,

23

.53

%

,

11/19/24

.

1,176

1,184

L2197817.UP.FTS.B

,

6

.54

%

,

12/07/24

....

1,063

1,054

FW2196231.UP.FTS.B

,

11

.5

%

,

12/07/24

..

3,034

3,026

L2196723.UP.FTS.B

,

12

.12

%

,

12/07/24

...

1,654

1,652

L2196919.UP.FTS.B

,

12

.98

%

,

12/07/24

...

977

626

L2199259.UP.FTS.B

,

13

.19

%

,

12/07/24

...

1,158

1,157

FW2199236.UP.FTS.B

,

13

.4

%

,

12/07/24

..

387

386

L2199973.UP.FTS.B

,

16

.17

%

,

12/07/24

...

983

297

L2197668.UP.FTS.B

,

17

.17

%

,

12/07/24

...

670

675

L2199581.UP.FTS.B

,

19

.33

%

,

12/07/24

...

494

497

FW2199717.UP.FTS.B

,

20

.13

%

,

12/07/24

.

1,383

1,390

L2198118.UP.FTS.B

,

20

.43

%

,

12/07/24

...

554

558

L2199295.UP.FTS.B

,

21

.7

%

,

12/07/24

....

702

706

L2199073.UP.FTS.B

,

21

.87

%

,

12/07/24

...

704

706

L2197271.UP.FTS.B

,

22

.76

%

,

12/07/24

...

3,194

950

L2196613.UP.FTS.B

,

23

.35

%

,

12/07/24

...

1,882

1,891

FW2195695.UP.FTS.B

,

24

.83

%

,

12/07/24

.

1,390

1,396

FW2195888.UP.FTS.B

,

24

.84

%

,

12/07/24

.

166

165

L2201298.UP.FTS.B

,

6

.04

%

,

12/08/24

....

362

359

L2203520.UP.FTS.B

,

6

.61

%

,

12/08/24

....

4,407

4,376

FW2201265.UP.FTS.B

,

7

.44

%

,

12/08/24

..

1,693

1,689

L2200896.UP.FTS.B

,

7

.68

%

,

12/08/24

....

1,698

1,691

L2202574.UP.FTS.B

,

9

.1

%

,

12/08/24

....

1,847

1,841

FW2206887.UP.FTS.B

,

9

.22

%

,

12/08/24

..

2,484

2,476

L2202371.UP.FTS.B

,

9

.29

%

,

12/08/24

....

370

369

L2201633.UP.FTS.B

,

10

.05

%

,

12/08/24

...

2,413

2,407

L2202275.UP.FTS.B

,

10

.28

%

,

12/08/24

...

4,990

4,973

L2206909.UP.FTS.B

,

11

.8

%

,

12/08/24

....

760

759

L2205399.UP.FTS.B

,

11

.81

%

,

12/08/24

...

252

252

L2201373.UP.FTS.B

,

12

.48

%

,

12/08/24

...

766

765

L2200458.UP.FTS.B

,

12

.89

%

,

12/08/24

...

1,614

1,612

L2202863.UP.FTS.B

,

13

.37

%

,

12/08/24

...

2,433

177

L2204453.UP.FTS.B

,

13

.74

%

,

12/08/24

...

776

776

L2204038.UP.FTS.B

,

14

.23

%

,

12/08/24

...

2,564

2,562

L2201794.UP.FTS.B

,

14

.37

%

,

12/08/24

...

2,859

423

L2204310.UP.FTS.B

,

14

.38

%

,

12/08/24

...

261

260

L2203131.UP.FTS.B

,

15

.07

%

,

12/08/24

...

675

673

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2198905.UP.FTS.B

,

15

.38

%

,

12/08/24

.

$

1,312

$

1,321

L2192030.UP.FTS.B

,

15

.79

%

,

12/08/24

...

2,010

2,023

L2201862.UP.FTS.B

,

17

%

,

12/08/24

.....

1,331

1,339

L2202850.UP.FTS.B

,

17

.99

%

,

12/08/24

...

867

63

L2202296.UP.FTS.B

,

18

.33

%

,

12/08/24

...

655

199

FW2201612.UP.FTS.B

,

18

.99

%

,

12/08/24

.

487

489

L2206681.UP.FTS.B

,

19

.32

%

,

12/08/24

...

376

373

L2204182.UP.FTS.B

,

19

.36

%

,

12/08/24

...

2,469

2,486

L2203811.UP.FTS.B

,

19

.85

%

,

12/08/24

...

845

848

L2201390.UP.FTS.B

,

19

.92

%

,

12/08/24

...

5,262

378

L2201524.UP.FTS.B

,

19

.94

%

,

12/08/24

...

2,794

204

FW2201750.UP.FTS.B

,

20

.37

%

,

12/08/24

.

554

558

L2202392.UP.FTS.B

,

21

.41

%

,

12/08/24

...

1,260

1,268

FW2201886.UP.FTS.B

,

21

.86

%

,

12/08/24

.

289

288

FW2206827.UP.FTS.B

,

22

.71

%

,

12/08/24

.

1,419

1,427

L2202398.UP.FTS.B

,

23

.19

%

,

12/08/24

...

1,995

2,007

FW2176932.UP.FTS.B

,

25

.88

%

,

12/08/24

.

739

741

FW2201104.UP.FTS.B

,

26

.62

%

,

12/08/24

.

296

296

FW2201792.UP.FTS.B

,

27

.21

%

,

12/08/24

.

1,037

1,043

FW2201560.UP.FTS.B

,

28

.51

%

,

12/08/24

.

630

634

FW2204026.UP.FTS.B

,

28

.52

%

,

12/08/24

.

2,399

2,413

FW2205439.UP.FTS.B

,

29

.01

%

,

12/08/24

.

809

811

L2195358.UP.FTS.B

,

20

.15

%

,

12/16/24

...

277

279

L2202614.UP.FTS.B

,

12

.88

%

,

12/19/24

...

2,060

2,055

FW2198017.UP.FTS.B

,

23

.08

%

,

12/20/24

.

861

863

FW2203151.UP.FTS.B

,

21

.13

%

,

12/22/24

.

1,182

1,185

L2180897.UP.FTS.B

,

21

.81

%

,

12/23/24

...

2,266

2,279

FW2203707.UP.FTS.B

,

26

.53

%

,

12/23/24

.

1,088

1,092

L2413126.UP.FTS.B

,

5

.21

%

,

1/11/25

.....

1,059

1,051

L2411924.UP.FTS.B

,

5

.26

%

,

1/11/25

.....

1,589

1,577

L2411777.UP.FTS.B

,

5

.56

%

,

1/11/25

.....

2,394

2,375

L2411090.UP.FTS.B

,

5

.74

%

,

1/11/25

.....

1,863

1,850

L2412107.UP.FTS.B

,

6

.11

%

,

1/11/25

.....

1,034

159

L2412917.UP.FTS.B

,

6

.87

%

,

1/11/25

.....

808

802

L2412167.UP.FTS.B

,

7

.12

%

,

1/11/25

.....

1,081

1,073

L2410776.UP.FTS.B

,

7

.38

%

,

1/11/25

.....

1,626

1,622

FW2408203.UP.FTS.B

,

8

.04

%

,

1/11/25

...

817

815

L2407274.UP.FTS.B

,

8

.11

%

,

1/11/25

.....

563

561

FW2413171.UP.FTS.B

,

8

.15

%

,

1/11/25

...

819

817

L2412008.UP.FTS.B

,

8

.58

%

,

1/11/25

.....

2,746

2,737

L2410161.UP.FTS.B

,

9

.06

%

,

1/11/25

.....

552

550

L2407027.UP.FTS.B

,

9

.18

%

,

1/11/25

.....

1,242

1,240

L2411609.UP.FTS.B

,

9

.19

%

,

1/11/25

.....

552

551

L2408028.UP.FTS.B

,

9

.2

%

,

1/11/25

......

956

954

FW2412135.UP.FTS.B

,

10

.19

%

,

1/11/25

..

624

391

L2413510.UP.FTS.B

,

10

.29

%

,

1/11/25

....

4,608

4,598

L2411555.UP.FTS.B

,

10

.32

%

,

1/11/25

....

1,264

1,259

L2411669.UP.FTS.B

,

10

.84

%

,

1/11/25

....

562

562

FW2410432.UP.FTS.B

,

10

.89

%

,

1/11/25

..

1,405

1,404

L2411242.UP.FTS.B

,

10

.89

%

,

1/11/25

....

1,244

76

L2413320.UP.FTS.B

,

11

.28

%

,

1/11/25

....

5,642

5,629

FW2409055.UP.FTS.B

,

12

.38

%

,

1/11/25

..

311

311

L2412366.UP.FTS.B

,

12

.6

%

,

1/11/25

.....

286

286

L2408103.UP.FTS.B

,

12

.61

%

,

1/11/25

....

715

715

FW2412082.UP.FTS.B

,

12

.62

%

,

1/11/25

..

1,342

1,338

L2410850.UP.FTS.B

,

13

.07

%

,

1/11/25

....

431

431

L2410120.UP.FTS.B

,

14

.05

%

,

1/11/25

....

581

580

FW2412033.UP.FTS.B

,

14

.09

%

,

1/11/25

..

875

873

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2410413.UP.FTS.B

,

14

.16

%

,

1/11/25

....

$

7,057

$

519

L2410798.UP.FTS.B

,

15

.99

%

,

1/11/25

....

2,959

2,980

FW2413492.UP.FTS.B

,

16

.11

%

,

1/11/25

..

438

441

L2407096.UP.FTS.B

,

16

.55

%

,

1/11/25

....

6,981

7,032

L2409614.UP.FTS.B

,

17

.29

%

,

1/11/25

....

1,598

1,605

L2411442.UP.FTS.B

,

17

.42

%

,

1/11/25

....

5,733

5,759

L2409234.UP.FTS.B

,

17

.51

%

,

1/11/25

....

901

907

L2407062.UP.FTS.B

,

17

.52

%

,

1/11/25

....

511

514

L2411946.UP.FTS.B

,

17

.59

%

,

1/11/25

....

2,615

2,634

L2412506.UP.FTS.B

,

19

.8

%

,

1/11/25

.....

2,906

2,919

L2407256.UP.FTS.B

,

20

.21

%

,

1/11/25

....

2,157

2,170

FW2407665.UP.FTS.B

,

20

.61

%

,

1/11/25

..

7,737

7,782

FW2388641.UP.FTS.B

,

21

.09

%

,

1/11/25

..

311

313

L2413329.UP.FTS.B

,

21

.38

%

,

1/11/25

....

6,229

946

L2410058.UP.FTS.B

,

22

.27

%

,

1/11/25

....

3,193

3,212

L2407636.UP.FTS.B

,

23

.33

%

,

1/11/25

....

329

329

FW2408676.UP.FTS.B

,

24

.16

%

,

1/11/25

..

1,419

1,423

FW2411482.UP.FTS.B

,

24

.41

%

,

1/11/25

..

2,368

2,380

FW2410949.UP.FTS.B

,

25

.16

%

,

1/11/25

..

486

487

FW2411088.UP.FTS.B

,

28

.45

%

,

1/11/25

..

665

669

FW2412871.UP.FTS.B

,

28

.66

%

,

1/11/25

..

981

69

FW2408892.UP.FTS.B

,

33

.73

%

,

1/11/25

..

1,671

1,675

L2415563.UP.FTS.B

,

5

.17

%

,

1/12/25

....

1,733

1,720

L2415408.UP.FTS.B

,

5

.38

%

,

1/12/25

....

2,321

2,304

L2418369.UP.FTS.B

,

5

.69

%

,

1/12/25

....

399

396

FW2419630.UP.FTS.B

,

6

.3

%

,

1/12/25

....

111

110

L2420304.UP.FTS.B

,

6

.48

%

,

1/12/25

....

677

672

L2419347.UP.FTS.B

,

6

.78

%

,

1/12/25

....

2,548

1,588

L2416428.UP.FTS.B

,

6

.81

%

,

1/12/25

....

539

535

L2418759.UP.FTS.B

,

6

.94

%

,

1/12/25

....

2,252

2,236

L2419328.UP.FTS.B

,

7

.52

%

,

1/12/25

....

1,899

1,886

L2415914.UP.FTS.B

,

7

.64

%

,

1/12/25

....

952

949

FW2418816.UP.FTS.B

,

7

.73

%

,

1/12/25

...

1,633

1,627

L2419589.UP.FTS.B

,

7

.74

%

,

1/12/25

....

4,087

4,075

FW2416518.UP.FTS.B

,

8

.11

%

,

1/12/25

...

1,365

1,362

L2417943.UP.FTS.B

,

8

.11

%

,

1/12/25

.....

1,803

253

L2414073.UP.FTS.B

,

8

.79

%

,

1/12/25

....

598

596

L2415019.UP.FTS.B

,

8

.85

%

,

1/12/25

....

550

549

L2414074.UP.FTS.B

,

9

.04

%

,

1/12/25

....

4,137

4,129

L2417145.UP.FTS.B

,

9

.34

%

,

1/12/25

....

304

304

L2415812.UP.FTS.B

,

9

.44

%

,

1/12/25

....

1,481

1,478

FW2413836.UP.FTS.B

,

10

.39

%

,

1/12/25

..

690

689

L2396686.UP.FTS.B

,

10

.42

%

,

1/12/25

....

1,398

1,396

FW2416931.UP.FTS.B

,

10

.8

%

,

1/12/25

...

3,088

3,088

L2414847.UP.FTS.B

,

11

.02

%

,

1/12/25

....

3,111

3,106

L2414221.UP.FTS.B

,

11

.17

%

,

1/12/25

....

1,409

1,409

L2420369.UP.FTS.B

,

11

.76

%

,

1/12/25

....

3,326

3,308

FW2417716.UP.FTS.B

,

18

.03

%

,

1/12/25

..

751

757

L2418715.UP.FTS.B

,

19

.25

%

,

1/12/25

....

1,530

1,542

L2417349.UP.FTS.B

,

20

.05

%

,

1/12/25

....

597

601

L2414519.UP.FTS.B

,

22

.88

%

,

1/12/25

....

1,043

1,050

L2414032.UP.FTS.B

,

23

.21

%

,

1/12/25

....

856

862

L2352635.UP.FTS.B

,

23

.27

%

,

1/12/25

....

2,323

2,337

L2412538.UP.FTS.B

,

23

.48

%

,

1/12/25

....

1,320

1,325

FW2414041.UP.FTS.B

,

23

.78

%

,

1/12/25

..

1,275

1,284

FW2416686.UP.FTS.B

,

24

.84

%

,

1/12/25

..

792

795

FW2414437.UP.FTS.B

,

27

.76

%

,

1/12/25

..

992

998

L2410557.UP.FTS.B

,

26

.28

%

,

1/14/25

....

818

823

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2402281.UP.FTS.B

,

7

.89

%

,

1/15/25

....

$

4,778

$

4,741

FW2412560.UP.FTS.B

,

28

.48

%

,

1/26/25

..

2,804

200

L1711024.UP.FTS.B

,

12

.98

%

,

2/14/25

....

987

985

L1710277.UP.FTS.B

,

18

.02

%

,

2/14/25

....

4,750

4,591

L1711489.UP.FTS.B

,

18

.07

%

,

2/14/25

....

2,039

128

L2631679.UP.FTS.B

,

6

.61

%

,

2/15/25

....

1,483

1,472

L2632890.UP.FTS.B

,

6

.77

%

,

2/15/25

....

2,973

2,951

L2634175.UP.FTS.B

,

6

.95

%

,

2/15/25

....

2,700

2,679

L2634533.UP.FTS.B

,

8

.5

%

,

2/15/25

.....

6,068

6,056

L2633581.UP.FTS.B

,

9

.23

%

,

2/15/25

....

822

114

FW2634377.UP.FTS.B

,

10

%

,

2/15/25

....

308

307

L2634177.UP.FTS.B

,

15

.21

%

,

2/15/25

....

974

45

L2636760.UP.FTS.B

,

15

.98

%

,

2/15/25

....

4,359

4,385

FW2634284.UP.FTS.B

,

16

.22

%

,

2/15/25

..

3,270

3,296

L2634751.UP.FTS.B

,

16

.31

%

,

2/15/25

....

622

622

L2634161.UP.FTS.B

,

18

.39

%

,

2/15/25

....

1,387

1,397

L2632627.UP.FTS.B

,

20

.79

%

,

2/15/25

....

3,411

3,433

L2634669.UP.FTS.B

,

20

.85

%

,

2/15/25

....

4,418

657

L2631763.UP.FTS.B

,

20

.93

%

,

2/15/25

....

3,326

1,024

FW2633708.UP.FTS.B

,

25

.99

%

,

2/15/25

..

2,321

2,336

FW2631136.UP.FTS.B

,

27

.13

%

,

2/15/25

..

476

474

FW2631651.UP.FTS.B

,

27

.52

%

,

2/15/25

..

2,352

2,366

FW2631826.UP.FTS.B

,

31

.23

%

,

2/15/25

..

1,901

1,909

L2639657.UP.FTS.B

,

5

.92

%

,

2/16/25

....

443

440

FW2638680.UP.FTS.B

,

7

.01

%

,

2/16/25

...

657

653

L2642308.UP.FTS.B

,

10

.18

%

,

2/16/25

....

4,250

262

FW2644636.UP.FTS.B

,

10

.31

%

,

2/16/25

..

337

322

L2640736.UP.FTS.B

,

10

.49

%

,

2/16/25

....

464

463

FW2640049.UP.FTS.B

,

13

.66

%

,

2/16/25

..

3,420

3,421

L2639914.UP.FTS.B

,

14

.3

%

,

2/16/25

....

2,247

2,267

L2573704.UP.FTS.B

,

14

.5

%

,

2/16/25

....

1,287

1,298

L2640305.UP.FTS.B

,

16

.68

%

,

2/16/25

....

3,285

240

FW2644294.UP.FTS.B

,

16

.92

%

,

2/16/25

..

1,082

1,091

FW2639338.UP.FTS.B

,

17

.66

%

,

2/16/25

..

3,306

3,334

L2641019.UP.FTS.B

,

18

.97

%

,

2/16/25

....

5,031

5,075

L2639930.UP.FTS.B

,

19

.1

%

,

2/16/25

....

741

747

FW2639706.UP.FTS.B

,

19

.94

%

,

2/16/25

..

2,165

2,181

L2641952.UP.FTS.B

,

19

.98

%

,

2/16/25

....

1,761

511

FW2639697.UP.FTS.B

,

24

.32

%

,

2/16/25

..

599

603

FW2643827.UP.FTS.B

,

25

.41

%

,

2/16/25

..

1,808

1,816

L2627901.UP.FTS.B

,

28

.31

%

,

2/16/25

....

5,197

5,219

L2644671.UP.FTS.B

,

5

.08

%

,

2/17/25

....

2,922

2,902

L2604120.UP.FTS.B

,

17

.7

%

,

2/17/25

....

3,329

3,349

L1871398.UP.FTS.B

,

22

.03

%

,

3/18/25

....

891

896

FW1872890.UP.FTS.B

,

24

.47

%

,

3/18/25

..

391

376

L2076313.UP.FTS.B

,

15

.86

%

,

4/19/25

....

464

466

L2077669.UP.FTS.B

,

19

.72

%

,

4/19/25

....

302

305

L2077765.UP.FTS.B

,

21

.13

%

,

4/19/25

....

370

372

L2078933.UP.FTS.B

,

22

.16

%

,

4/19/25

....

5,152

4,953

FW2200254.UP.FTS.B

,

19

.34

%

,

5/07/25

..

774

775

L2196647.UP.FTS.B

,

21

.51

%

,

5/07/25

....

2,949

819

FW2199208.UP.FTS.B

,

25

.58

%

,

5/07/25

..

754

750

FW2202524.UP.FTS.B

,

28

.64

%

,

5/08/25

..

1,084

157

FW2201579.UP.FTS.B

,

28

.82

%

,

5/08/25

..

1,647

464

L2405109.UP.FTS.B

,

11

.47

%

,

6/11/25

....

700

697

FW2410127.UP.FTS.B

,

20

.85

%

,

6/11/25

..

486

484

FW2411559.UP.FTS.B

,

21

.14

%

,

6/11/25

..

920

926

L2414544.UP.FTS.B

,

14

.43

%

,

6/12/25

....

1,157

1,152

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

97

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2402983.UP.FTS.B

,

8

.56

%

,

6/21/25

....

$

1,016

$

1,010

L2639542.UP.FTS.B

,

8

.21

%

,

7/16/25

....

1,023

1,017

FW2639899.UP.FTS.B

,

18

.71

%

,

7/16/25

..

7,162

520

FW1872459.UP.FTS.B

,

28

.31

%

,

9/01/25

..

140

140

L2007014.UP.FTS.B

,

20

.64

%

,

9/09/25

....

3,059

219

L2195122.UP.FTS.B

,

20

.26

%

,

10/07/25

...

3,860

279

L2206982.UP.FTS.B

,

9

.5

%

,

10/08/25

....

396

393

FW2414692.UP.FTS.B

,

6

.84

%

,

11/12/25

..

714

708

FW2418164.UP.FTS.B

,

9

.41

%

,

11/12/25

..

983

979

FW2411155.UP.FTS.B

,

7

.59

%

,

11/26/25

..

1,450

1,438

L1711804.UP.FTS.B

,

9

.08

%

,

9/14/26

.....

5,396

5,366

L1709773.UP.FTS.B

,

9

.1

%

,

9/14/26

.....

1,079

1,073

L1709466.UP.FTS.B

,

9

.12

%

,

9/14/26

....

5,932

5,899

L1711063.UP.FTS.B

,

9

.57

%

,

9/14/26

.....

7,597

7,554

L1710250.UP.FTS.B

,

9

.72

%

,

9/14/26

....

4,349

4,335

L1710722.UP.FTS.B

,

9

.73

%

,

9/14/26

....

10,665

10,604

L1709358.UP.FTS.B

,

10

.97

%

,

9/14/26

....

22,808

22,727

L1711112.UP.FTS.B

,

12

.03

%

,

9/14/26

....

11,156

11,111

FW1709227.UP.FTS.B

,

12

.04

%

,

9/14/26

..

783

777

L1711960.UP.FTS.B

,

12

.48

%

,

9/14/26

....

1,681

1,676

L1708544.UP.FTS.B

,

12

.57

%

,

9/14/26

....

2,231

2,224

L1709990.UP.FTS.B

,

12

.82

%

,

9/14/26

....

1,113

1,106

L1709442.UP.FTS.B

,

13

.19

%

,

9/14/26

....

28,231

28,146

L1711626.UP.FTS.B

,

13

.98

%

,

9/14/26

....

11,389

11,355

L1705354.UP.FTS.B

,

14

.33

%

,

9/14/26

....

13,764

13,711

FW1711888.UP.FTS.B

,

15

.29

%

,

9/14/26

..

5,774

5,780

L1711759.UP.FTS.B

,

15

.35

%

,

9/14/26

....

5,875

5,595

FW1710596.UP.FTS.B

,

15

.85

%

,

9/14/26

..

2,903

2,906

FW1711241.UP.FTS.B

,

16

.08

%

,

9/14/26

..

2,328

2,330

L1707201.UP.FTS.B

,

16

.24

%

,

9/14/26

....

8,745

8,754

L1708577.UP.FTS.B

,

16

.66

%

,

9/14/26

....

4,564

215

L1709613.UP.FTS.B

,

17

.03

%

,

9/14/26

....

2,046

148

L1711610.UP.FTS.B

,

17

.32

%

,

9/14/26

....

14,731

14,776

L1708807.UP.FTS.B

,

17

.72

%

,

9/14/26

....

5,916

5,923

L1710981.UP.FTS.B

,

17

.81

%

,

9/14/26

....

5,999

6,008

FW1709424.UP.FTS.B

,

18

.79

%

,

9/14/26

..

8,971

8,980

FW1709134.UP.FTS.B

,

18

.89

%

,

9/14/26

..

6,344

1,756

L1710731.UP.FTS.B

,

18

.91

%

,

9/14/26

....

1,893

519

L1712201.UP.FTS.B

,

18

.94

%

,

9/14/26

....

1,358

1,358

L1709877.UP.FTS.B

,

19

.26

%

,

9/14/26

....

2,922

2,928

L1711904.UP.FTS.B

,

19

.49

%

,

9/14/26

....

11,937

12,078

L1709643.UP.FTS.B

,

20

.04

%

,

9/14/26

....

2,421

2,428

L1708842.UP.FTS.B

,

20

.24

%

,

9/14/26

....

5,190

136

L1708429.UP.FTS.B

,

20

.63

%

,

9/14/26

....

1,826

1,849

L1710126.UP.FTS.B

,

20

.84

%

,

9/14/26

....

4,701

127

FW1711817.UP.FTS.B

,

20

.95

%

,

9/14/26

..

2,930

2,967

L1707499.UP.FTS.B

,

22

.03

%

,

9/14/26

....

6,158

6,233

L1710829.UP.FTS.B

,

22

.11

%

,

9/14/26

....

3,087

3,090

FW1708581.UP.FTS.B

,

23

.53

%

,

9/14/26

..

5,644

5,626

L1709924.UP.FTS.B

,

24

.74

%

,

9/14/26

....

967

978

L1710379.UP.FTS.B

,

24

.83

%

,

9/14/26

....

822

832

L1710592.UP.FTS.B

,

25

.03

%

,

9/14/26

....

824

834

L1706788.UP.FTS.B

,

25

.12

%

,

9/14/26

....

1,142

1,156

L1710759.UP.FTS.B

,

25

.29

%

,

9/14/26

....

699

708

L1712021.UP.FTS.B

,

25

.29

%

,

9/14/26

....

2,039

2,059

L1712014.UP.FTS.B

,

25

.46

%

,

9/14/26

....

1,082

1,095

L1710375.UP.FTS.B

,

25

.49

%

,

9/14/26

....

1,270

1,285

L1711582.UP.FTS.B

,

25

.87

%

,

9/14/26

....

17,038

17,192

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1709668.UP.FTS.B

,

25

.91

%

,

9/14/26

....

$

958

$

961

L1711668.UP.FTS.B

,

26

.18

%

,

9/14/26

....

3,010

3,046

L1704675.UP.FTS.B

,

26

.55

%

,

9/14/26

....

4,490

1,283

FW1701558.UP.FTS.B

,

29

.38

%

,

9/14/26

..

7,873

7,967

FW1708159.UP.FTS.B

,

30

.6

%

,

9/14/26

...

1,179

1,187

FW1710725.UP.FTS.B

,

30

.72

%

,

9/14/26

..

2,094

601

FW1708283.UP.FTS.B

,

30

.95

%

,

9/14/26

..

2,668

2,694

FW1709045.UP.FTS.B

,

31

.04

%

,

9/14/26

..

2,001

2,025

FW1711778.UP.FTS.B

,

31

.18

%

,

9/14/26

..

2,585

180

FW1709237.UP.FTS.B

,

31

.24

%

,

9/14/26

..

3,339

3,379

FW1712567.UP.FTS.B

,

31

.44

%

,

9/14/26

..

1,940

1,963

FW1708897.UP.FTS.B

,

32

.27

%

,

9/14/26

..

1,783

1,797

L1709686.UP.FTS.B

,

14

.5

%

,

9/16/26

....

11,465

11,420

L1873953.UP.FTS.B

,

6

.89

%

,

10/18/26

....

27,075

26,927

FW1872946.UP.FTS.B

,

7

.02

%

,

10/18/26

..

3,534

3,513

L1874550.UP.FTS.B

,

10

.94

%

,

10/18/26

...

4,525

4,512

L1873178.UP.FTS.B

,

11

.12

%

,

10/18/26

...

4,493

4,476

L1873001.UP.FTS.B

,

11

.14

%

,

10/18/26

...

4,433

4,195

L1872155.UP.FTS.B

,

11

.36

%

,

10/18/26

...

1,118

1,114

L1873842.UP.FTS.B

,

11

.7

%

,

10/18/26

....

9,957

9,929

L1873090.UP.FTS.B

,

11

.9

%

,

10/18/26

....

860

857

L1873798.UP.FTS.B

,

12

.44

%

,

10/18/26

...

2,307

2,298

L1874099.UP.FTS.B

,

12

.59

%

,

10/18/26

...

10,377

10,348

L1872876.UP.FTS.B

,

13

.07

%

,

10/18/26

...

1,451

1,447

L1874284.UP.FTS.B

,

13

.39

%

,

10/18/26

...

4,660

4,647

L1873434.UP.FTS.B

,

13

.54

%

,

10/18/26

...

1,673

1,667

FW1873975.UP.FTS.B

,

13

.55

%

,

10/18/26

.

3,792

3,782

FW1874302.UP.FTS.B

,

13

.81

%

,

10/18/26

.

29,182

29,101

L1873174.UP.FTS.B

,

13

.86

%

,

10/18/26

...

8,312

8,262

L1874369.UP.FTS.B

,

14

.32

%

,

10/18/26

...

4,712

4,711

L1874287.UP.FTS.B

,

14

.37

%

,

10/18/26

...

9,416

9,380

FW1874328.UP.FTS.B

,

14

.8

%

,

10/18/26

..

5,910

5,908

L1860167.UP.FTS.B

,

14

.86

%

,

10/18/26

...

1,005

1,005

L1873835.UP.FTS.B

,

15

.93

%

,

10/18/26

...

5,754

5,756

L1873166.UP.FTS.B

,

16

.01

%

,

10/18/26

...

11,964

11,959

L1872550.UP.FTS.B

,

16

.04

%

,

10/18/26

...

2,992

2,991

L1872814.UP.FTS.B

,

16

.38

%

,

10/18/26

...

8,962

8,972

L1873320.UP.FTS.B

,

16

.64

%

,

10/18/26

...

1,204

1,203

L1873808.UP.FTS.B

,

16

.88

%

,

10/18/26

...

3,318

3,322

L1874262.UP.FTS.B

,

17

.04

%

,

10/18/26

...

3,725

3,719

L1873707.UP.FTS.B

,

17

.21

%

,

10/18/26

...

7,434

7,078

FW1869707.UP.FTS.B

,

17

.52

%

,

10/18/26

.

9,106

9,116

FW1873390.UP.FTS.B

,

17

.6

%

,

10/18/26

..

7,290

7,313

L1873345.UP.FTS.B

,

17

.63

%

,

10/18/26

...

3,560

3,568

FW1874335.UP.FTS.B

,

17

.64

%

,

10/18/26

.

24,234

24,163

L1874163.UP.FTS.B

,

17

.64

%

,

10/18/26

...

4,231

4,244

FW1874438.UP.FTS.B

,

18

.01

%

,

10/18/26

.

1,481

1,464

L1868602.UP.FTS.B

,

18

.18

%

,

10/18/26

...

2,250

627

FW1873109.UP.FTS.B

,

18

.49

%

,

10/18/26

.

5,821

5,828

L1872626.UP.FTS.B

,

19

.06

%

,

10/18/26

...

4,437

4,442

L1873648.UP.FTS.B

,

19

.32

%

,

10/18/26

...

2,786

2,789

L1873350.UP.FTS.B

,

19

.42

%

,

10/18/26

...

7,016

7,026

L1873155.UP.FTS.B

,

19

.56

%

,

10/18/26

...

1,300

368

L1873356.UP.FTS.B

,

19

.63

%

,

10/18/26

...

1,080

1,042

L1873176.UP.FTS.B

,

19

.77

%

,

10/18/26

...

9,306

9,404

FW1873722.UP.FTS.B

,

19

.81

%

,

10/18/26

.

4,989

358

L1872983.UP.FTS.B

,

19

.88

%

,

10/18/26

...

3,747

3,752

FW1873856.UP.FTS.B

,

20

.15

%

,

10/18/26

.

3,735

3,739

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L1873825.UP.FTS.B

,

20

.43

%

,

10/18/26

...

$

31,204

$

31,532

L1873221.UP.FTS.B

,

20

.79

%

,

10/18/26

...

1,295

1,235

L1874536.UP.FTS.B

,

21

.47

%

,

10/18/26

...

3,639

998

L1873820.UP.FTS.B

,

21

.93

%

,

10/18/26

...

2,151

2,174

L1872738.UP.FTS.B

,

21

.97

%

,

10/18/26

...

950

960

L1873278.UP.FTS.B

,

21

.98

%

,

10/18/26

...

3,734

3,782

L1873489.UP.FTS.B

,

22

.12

%

,

10/18/26

...

9,508

9,608

L1872904.UP.FTS.B

,

22

.48

%

,

10/18/26

...

3,484

82

L1873504.UP.FTS.B

,

22

.55

%

,

10/18/26

...

754

759

L1874352.UP.FTS.B

,

22

.6

%

,

10/18/26

....

20,813

21,031

L1874034.UP.FTS.B

,

22

.67

%

,

10/18/26

...

1,401

1,416

L1873496.UP.FTS.B

,

22

.72

%

,

10/18/26

...

11,378

1,716

L1873741.UP.FTS.B

,

22

.96

%

,

10/18/26

...

1,127

321

L1873307.UP.FTS.B

,

23

.79

%

,

10/18/26

...

965

976

L1874063.UP.FTS.B

,

24

.01

%

,

10/18/26

...

4,512

4,559

L1873180.UP.FTS.B

,

24

.02

%

,

10/18/26

...

644

651

L1872601.UP.FTS.B

,

24

.04

%

,

10/18/26

...

3,329

3,207

L1873408.UP.FTS.B

,

24

.34

%

,

10/18/26

...

1,939

1,960

L1870381.UP.FTS.B

,

24

.72

%

,

10/18/26

...

4,457

4,510

L1873373.UP.FTS.B

,

24

.83

%

,

10/18/26

...

3,250

3,284

L1868887.UP.FTS.B

,

24

.97

%

,

10/18/26

...

9,469

9,575

L1872784.UP.FTS.B

,

25

.04

%

,

10/18/26

...

4,227

4,272

L1873877.UP.FTS.B

,

25

.05

%

,

10/18/26

...

2,936

2,968

L1872998.UP.FTS.B

,

25

.1

%

,

10/18/26

....

740

52

FW1874269.UP.FTS.B

,

25

.11

%

,

10/18/26

.

3,329

3,212

L1873308.UP.FTS.B

,

25

.11

%

,

10/18/26

...

1,068

–

L1873304.UP.FTS.B

,

25

.15

%

,

10/18/26

...

1,042

1,053

FW1873516.UP.FTS.B

,

25

.23

%

,

10/18/26

.

9,864

9,973

FW1873077.UP.FTS.B

,

25

.29

%

,

10/18/26

.

1,955

1,975

L1873627.UP.FTS.B

,

25

.33

%

,

10/18/26

...

527

529

L1805232.UP.FTS.B

,

25

.36

%

,

10/18/26

...

3,586

3,624

L1872764.UP.FTS.B

,

25

.4

%

,

10/18/26

....

979

989

L1873079.UP.FTS.B

,

25

.43

%

,

10/18/26

...

898

905

L1874416.UP.FTS.B

,

25

.46

%

,

10/18/26

...

19,241

19,471

L1874151.UP.FTS.B

,

25

.48

%

,

10/18/26

...

718

727

L1874395.UP.FTS.B

,

25

.5

%

,

10/18/26

....

6,129

485

L1874370.UP.FTS.B

,

25

.71

%

,

10/18/26

...

3,456

3,496

L1874041.UP.FTS.B

,

26

.01

%

,

10/18/26

...

4,832

4,885

L1870887.UP.FTS.B

,

26

.18

%

,

10/18/26

...

1,116

1,128

FW1874049.UP.FTS.B

,

26

.74

%

,

10/18/26

.

7,931

559

FW1874429.UP.FTS.B

,

27

.19

%

,

10/18/26

.

2,518

2,544

FW1873145.UP.FTS.B

,

27

.24

%

,

10/18/26

.

6,539

6,617

FW1873344.UP.FTS.B

,

27

.72

%

,

10/18/26

.

9,310

9,407

FW1873866.UP.FTS.B

,

28

.25

%

,

10/18/26

.

647

654

FW1872622.UP.FTS.B

,

28

.59

%

,

10/18/26

.

2,081

2,006

FW1874251.UP.FTS.B

,

29

.26

%

,

10/18/26

.

3,369

3,404

FW1874208.UP.FTS.B

,

29

.47

%

,

10/18/26

.

2,361

2,385

FW1873160.UP.FTS.B

,

30

.04

%

,

10/18/26

.

1,502

1,518

FW1873268.UP.FTS.B

,

30

.52

%

,

10/18/26

.

1,224

1,237

FW1872558.UP.FTS.B

,

30

.55

%

,

10/18/26

.

884

893

FW1872779.UP.FTS.B

,

30

.59

%

,

10/18/26

.

829

827

FW1873577.UP.FTS.B

,

30

.59

%

,

10/18/26

.

4,082

4,125

FW1872937.UP.FTS.B

,

30

.6

%

,

10/18/26

..

2,972

10

FW1873018.UP.FTS.B

,

31

%

,

10/18/26

...

751

759

FW1874435.UP.FTS.B

,

31

.05

%

,

10/18/26

.

1,238

1,252

FW1873234.UP.FTS.B

,

31

.11

%

,

10/18/26

.

2,988

3,024

FW1874112.UP.FTS.B

,

31

.18

%

,

10/18/26

.

3,350

3,385

FW1872966.UP.FTS.B

,

31

.83

%

,

10/18/26

.

3,544

249

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW1872975.UP.FTS.B

,

32

.03

%

,

10/18/26

.

$

2,133

$

2,155

L1873049.UP.FTS.B

,

25

.47

%

,

10/22/26

...

3,362

971

FW1873980.UP.FTS.B

,

31

.12

%

,

10/28/26

.

1,763

1,779

L1874280.UP.FTS.B

,

15

.62

%

,

11/01/26

...

18,464

18,466

L1873419.UP.FTS.B

,

17

.21

%

,

11/02/26

...

3,145

3,141

FW2008579.UP.FTS.B

,

5

.93

%

,

11/09/26

..

27,650

27,440

L2010047.UP.FTS.B

,

7

.23

%

,

11/09/26

....

5,426

5,392

L1947969.UP.FTS.B

,

8

.25

%

,

11/09/26

....

1,760

1,748

L2004931.UP.FTS.B

,

8

.92

%

,

11/09/26

....

10,862

10,798

FW2005584.UP.FTS.B

,

8

.98

%

,

11/09/26

..

9,153

9,094

L2009940.UP.FTS.B

,

9

.06

%

,

11/09/26

....

19,463

19,349

L2009771.UP.FTS.B

,

9

.73

%

,

11/09/26

....

2,883

2,872

L2010120.UP.FTS.B

,

9

.74

%

,

11/09/26

....

12,860

806

L1982018.UP.FTS.B

,

9

.85

%

,

11/09/26

....

2,886

2,869

L2005005.UP.FTS.B

,

9

.85

%

,

11/09/26

....

13,565

996

L2008329.UP.FTS.B

,

10

.3

%

,

11/09/26

....

3,480

3,460

L2008701.UP.FTS.B

,

10

.48

%

,

11/09/26

...

3,827

3,808

L2009188.UP.FTS.B

,

10

.68

%

,

11/09/26

...

15,028

14,958

L2009665.UP.FTS.B

,

10

.88

%

,

11/09/26

...

4,959

4,940

L2006261.UP.FTS.B

,

10

.9

%

,

11/09/26

....

3,210

3,197

L2009417.UP.FTS.B

,

11

.04

%

,

11/09/26

...

2,794

2,781

L2004983.UP.FTS.B

,

11

.09

%

,

11/09/26

...

4,311

4,268

L2006518.UP.FTS.B

,

11

.38

%

,

11/09/26

...

1,955

1,946

L1977043.UP.FTS.B

,

11

.43

%

,

11/09/26

...

3,168

3,156

FW2006974.UP.FTS.B

,

11

.44

%

,

11/09/26

.

7,335

7,306

L2008088.UP.FTS.B

,

12

.1

%

,

11/09/26

....

6,203

6,179

L2007707.UP.FTS.B

,

12

.19

%

,

11/09/26

...

8,741

8,704

L1991534.UP.FTS.B

,

12

.48

%

,

11/09/26

...

3,643

3,622

L2005066.UP.FTS.B

,

12

.51

%

,

11/09/26

...

8,899

8,864

L2007649.UP.FTS.B

,

12

.88

%

,

11/09/26

...

5,809

5,784

FW2009636.UP.FTS.B

,

13

.06

%

,

11/09/26

.

3,461

3,446

FW2004957.UP.FTS.B

,

13

.66

%

,

11/09/26

.

1,500

1,494

L2006397.UP.FTS.B

,

13

.66

%

,

11/09/26

...

6,001

5,978

L2008524.UP.FTS.B

,

14

.03

%

,

11/09/26

...

11,959

11,911

L2008113.UP.FTS.B

,

14

.06

%

,

11/09/26

...

12,956

12,906

L2009683.UP.FTS.B

,

14

.08

%

,

11/09/26

...

3,613

3,599

L2009234.UP.FTS.B

,

14

.43

%

,

11/09/26

...

9,069

9,034

L2008618.UP.FTS.B

,

14

.73

%

,

11/09/26

...

3,638

3,624

L2009287.UP.FTS.B

,

14

.91

%

,

11/09/26

...

3,523

3,510

L2009277.UP.FTS.B

,

15

.37

%

,

11/09/26

...

4,578

4,546

L2008691.UP.FTS.B

,

15

.38

%

,

11/09/26

...

3,035

3,024

L2008772.UP.FTS.B

,

15

.55

%

,

11/09/26

...

6,112

6,107

L2007900.UP.FTS.B

,

15

.91

%

,

11/09/26

...

1,840

1,838

L2009243.UP.FTS.B

,

15

.94

%

,

11/09/26

...

6,136

6,130

FW2006940.UP.FTS.B

,

15

.96

%

,

11/09/26

.

1,195

1,181

L2005019.UP.FTS.B

,

16

.29

%

,

11/09/26

...

7,345

1,036

L2009814.UP.FTS.B

,

16

.29

%

,

11/09/26

...

5,662

5,633

L2006713.UP.FTS.B

,

16

.47

%

,

11/09/26

...

7,400

7,372

L2009219.UP.FTS.B

,

16

.5

%

,

11/09/26

....

14,889

14,861

FW2010280.UP.FTS.B

,

16

.52

%

,

11/09/26

.

9,872

9,863

FW2010216.UP.FTS.B

,

16

.55

%

,

11/09/26

.

5,548

5,527

L2008001.UP.FTS.B

,

16

.67

%

,

11/09/26

...

9,267

9,233

FW2009372.UP.FTS.B

,

16

.77

%

,

11/09/26

.

9,275

9,267

L2010173.UP.FTS.B

,

16

.8

%

,

11/09/26

....

4,949

4,945

L2009631.UP.FTS.B

,

16

.91

%

,

11/09/26

...

4,358

4,348

L2008272.UP.FTS.B

,

17

.06

%

,

11/09/26

...

12,403

12,392

L2008918.UP.FTS.B

,

17

.09

%

,

11/09/26

...

4,590

4,586

FW2008938.UP.FTS.B

,

17

.12

%

,

11/09/26

.

4,749

4,740

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

99

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2005207.UP.FTS.B

,

17

.16

%

,

11/09/26

...

$

8,343

$

602

L2006918.UP.FTS.B

,

18

.03

%

,

11/09/26

...

20,848

20,850

L2008937.UP.FTS.B

,

18

.22

%

,

11/09/26

...

3,857

2,170

L2008467.UP.FTS.B

,

18

.23

%

,

11/09/26

...

6,305

6,291

L2009319.UP.FTS.B

,

18

.37

%

,

11/09/26

...

1,197

86

FW2005538.UP.FTS.B

,

18

.4

%

,

11/09/26

..

3,798

3,793

FW2005908.UP.FTS.B

,

18

.71

%

,

11/09/26

.

2,833

2,834

L2006524.UP.FTS.B

,

18

.79

%

,

11/09/26

...

3,088

3,087

FW2009511.UP.FTS.B

,

18

.82

%

,

11/09/26

.

3,779

3,780

L2006460.UP.FTS.B

,

18

.86

%

,

11/09/26

...

2,234

2,230

FW2002309.UP.FTS.B

,

18

.9

%

,

11/09/26

..

1,388

1,387

L2004618.UP.FTS.B

,

18

.96

%

,

11/09/26

...

3,786

3,788

L2007966.UP.FTS.B

,

18

.98

%

,

11/09/26

...

1,262

1,263

L2007377.UP.FTS.B

,

19

.06

%

,

11/09/26

...

10,738

10,729

L2008422.UP.FTS.B

,

19

.84

%

,

11/09/26

...

3,548

3,544

L2007099.UP.FTS.B

,

20

.26

%

,

11/09/26

...

21,189

21,383

L2008551.UP.FTS.B

,

20

.27

%

,

11/09/26

...

13,791

13,925

L2009017.UP.FTS.B

,

20

.52

%

,

11/09/26

...

4,360

4,346

FW2004995.UP.FTS.B

,

21

%

,

11/09/26

...

3,727

3,729

FW2006513.UP.FTS.B

,

21

.09

%

,

11/09/26

.

1,243

1,242

FW2008076.UP.FTS.B

,

21

.13

%

,

11/09/26

.

1,102

1,092

L2009584.UP.FTS.B

,

21

.3

%

,

11/09/26

....

7,314

7,383

L2006375.UP.FTS.B

,

21

.38

%

,

11/09/26

...

2,322

2,334

L2008251.UP.FTS.B

,

21

.4

%

,

11/09/26

....

3,225

3,226

FW2004906.UP.FTS.B

,

21

.42

%

,

11/09/26

.

8,088

579

FW2008069.UP.FTS.B

,

21

.82

%

,

11/09/26

.

7,063

7,115

L2007361.UP.FTS.B

,

21

.89

%

,

11/09/26

...

2,699

2,713

L2008476.UP.FTS.B

,

21

.9

%

,

11/09/26

....

10,688

206

L2008042.UP.FTS.B

,

22

%

,

11/09/26

.....

7,655

547

L2005261.UP.FTS.B

,

22

.11

%

,

11/09/26

...

6,105

6,148

FW2009886.UP.FTS.B

,

22

.16

%

,

11/09/26

.

2,596

2,597

L2009468.UP.FTS.B

,

22

.18

%

,

11/09/26

...

8,439

8,521

L2009034.UP.FTS.B

,

22

.22

%

,

11/09/26

...

4,099

4,120

L2008599.UP.FTS.B

,

22

.35

%

,

11/09/26

...

1,301

1,301

L2008480.UP.FTS.B

,

22

.94

%

,

11/09/26

...

9,802

9,898

L2009304.UP.FTS.B

,

23

.03

%

,

11/09/26

...

2,229

2,223

L2007937.UP.FTS.B

,

23

.09

%

,

11/09/26

...

9,815

9,819

L2007056.UP.FTS.B

,

24

.37

%

,

11/09/26

...

1,604

1,617

FW2009608.UP.FTS.B

,

24

.41

%

,

11/09/26

.

13,891

14,027

L2008806.UP.FTS.B

,

24

.53

%

,

11/09/26

...

5,218

3,080

L2009932.UP.FTS.B

,

24

.83

%

,

11/09/26

...

823

59

L2009896.UP.FTS.B

,

24

.89

%

,

11/09/26

...

1,992

2,012

L2010117.UP.FTS.B

,

24

.96

%

,

11/09/26

...

2,658

2,684

FW2006718.UP.FTS.B

,

24

.97

%

,

11/09/26

.

3,324

3,356

L2008356.UP.FTS.B

,

25

.02

%

,

11/09/26

...

458

451

L2007001.UP.FTS.B

,

25

.04

%

,

11/09/26

...

998

998

L2009837.UP.FTS.B

,

25

.1

%

,

11/09/26

....

1,000

1,007

L2006519.UP.FTS.B

,

25

.11

%

,

11/09/26

...

1,464

1,478

L1992164.UP.FTS.B

,

25

.12

%

,

11/09/26

...

2,556

184

L2008646.UP.FTS.B

,

25

.12

%

,

11/09/26

...

865

873

L2005357.UP.FTS.B

,

25

.2

%

,

11/09/26

....

3,329

3,362

L2006252.UP.FTS.B

,

25

.33

%

,

11/09/26

...

4,912

4,941

L2007046.UP.FTS.B

,

25

.34

%

,

11/09/26

...

1,200

1,212

FW2009941.UP.FTS.B

,

25

.35

%

,

11/09/26

.

5,532

5,582

L2009460.UP.FTS.B

,

25

.35

%

,

11/09/26

...

2,067

2,087

L2005437.UP.FTS.B

,

25

.37

%

,

11/09/26

...

667

673

L2007026.UP.FTS.B

,

25

.44

%

,

11/09/26

...

1,201

1,213

L1976857.UP.FTS.B

,

25

.45

%

,

11/09/26

...

5,338

5,390

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2008185.UP.FTS.B

,

25

.45

%

,

11/09/26

...

$

2,669

$

2,695

L2005075.UP.FTS.B

,

25

.48

%

,

11/09/26

...

1,374

1,377

L2009842.UP.FTS.B

,

25

.48

%

,

11/09/26

...

1,955

1,966

L2004971.UP.FTS.B

,

25

.6

%

,

11/09/26

....

6,623

6,684

L2007383.UP.FTS.B

,

25

.64

%

,

11/09/26

...

2,607

2,632

L2008285.UP.FTS.B

,

25

.92

%

,

11/09/26

...

3,750

3,787

FW2007576.UP.FTS.B

,

26

.1

%

,

11/09/26

..

4,695

4,741

L2009167.UP.FTS.B

,

26

.14

%

,

11/09/26

...

6,710

6,776

L2005548.UP.FTS.B

,

26

.19

%

,

11/09/26

...

4,430

4,473

FW1993820.UP.FTS.B

,

26

.38

%

,

11/09/26

.

4,034

4,073

FW2006658.UP.FTS.B

,

26

.38

%

,

11/09/26

.

4,034

4,035

FW2006782.UP.FTS.B

,

26

.4

%

,

11/09/26

..

13,449

13,581

FW2008080.UP.FTS.B

,

27

.3

%

,

11/09/26

..

1,016

1,026

FW2009450.UP.FTS.B

,

27

.39

%

,

11/09/26

.

5,731

5,782

FW2007457.UP.FTS.B

,

27

.58

%

,

11/09/26

.

2,197

625

FW2007864.UP.FTS.B

,

27

.83

%

,

11/09/26

.

3,400

3,433

FW2006870.UP.FTS.B

,

27

.89

%

,

11/09/26

.

4,399

4,441

FW2005768.UP.FTS.B

,

27

.98

%

,

11/09/26

.

1,023

1,030

FW2006392.UP.FTS.B

,

28

.34

%

,

11/09/26

.

1,139

1,134

FW2005859.UP.FTS.B

,

28

.42

%

,

11/09/26

.

8,976

9,050

FW2009975.UP.FTS.B

,

28

.52

%

,

11/09/26

.

602

601

FW2009473.UP.FTS.B

,

29

.09

%

,

11/09/26

.

4,299

1,220

FW2005194.UP.FTS.B

,

29

.14

%

,

11/09/26

.

4,178

4,213

FW2009687.UP.FTS.B

,

29

.61

%

,

11/09/26

.

3,948

3,978

FW2009414.UP.FTS.B

,

30

.01

%

,

11/09/26

.

8,435

8,518

FW2005675.UP.FTS.B

,

30

.41

%

,

11/09/26

.

1,081

77

FW2007884.UP.FTS.B

,

30

.51

%

,

11/09/26

.

2,089

2,105

FW2008923.UP.FTS.B

,

30

.84

%

,

11/09/26

.

2,037

2,054

FW2007936.UP.FTS.B

,

30

.89

%

,

11/09/26

.

2,854

2,882

FW1985263.UP.FTS.B

,

31

.02

%

,

11/09/26

.

1,108

1,119

FW2005025.UP.FTS.B

,

31

.15

%

,

11/09/26

.

5,173

5,213

FW2008432.UP.FTS.B

,

31

.3

%

,

11/09/26

..

3,104

3,130

FW2008400.UP.FTS.B

,

31

.31

%

,

11/09/26

.

2,367

2,390

FW2009323.UP.FTS.B

,

31

.47

%

,

11/09/26

.

4,213

4,247

FW2009592.UP.FTS.B

,

31

.5

%

,

11/09/26

..

1,915

1,915

FW2007089.UP.FTS.B

,

31

.52

%

,

11/09/26

.

5,678

1,635

FW2009221.UP.FTS.B

,

30

.79

%

,

11/12/26

.

9,366

9,460

L2005604.UP.FTS.B

,

7

.24

%

,

11/15/26

....

13,491

13,402

L2009697.UP.FTS.B

,

20

.69

%

,

11/15/26

...

3,215

3,210

L2009364.UP.FTS.B

,

25

.41

%

,

11/15/26

...

3,336

3,368

FW2006841.UP.FTS.B

,

29

.42

%

,

11/16/26

.

2,908

2,930

L2076555.UP.FTS.B

,

9

.38

%

,

11/19/26

....

4,021

4,001

FW2075880.UP.FTS.B

,

9

.48

%

,

11/19/26

..

9,045

1,229

L2077362.UP.FTS.B

,

10

.03

%

,

11/19/26

...

11,568

11,508

L2077278.UP.FTS.B

,

10

.24

%

,

11/19/26

...

1,210

1,203

L2079683.UP.FTS.B

,

10

.46

%

,

11/19/26

...

2,585

2,577

L2078817.UP.FTS.B

,

10

.96

%

,

11/19/26

...

26,866

26,791

L2077229.UP.FTS.B

,

11

.22

%

,

11/19/26

...

11,710

11,677

L2079790.UP.FTS.B

,

11

.54

%

,

11/19/26

...

5,424

754

L2078831.UP.FTS.B

,

11

.67

%

,

11/19/26

...

1,119

1,115

L2075431.UP.FTS.B

,

11

.87

%

,

11/19/26

...

13,556

13,518

L2077619.UP.FTS.B

,

12

.17

%

,

11/19/26

...

646

644

L2077342.UP.FTS.B

,

12

.81

%

,

11/19/26

...

2,380

2,374

L2069545.UP.FTS.B

,

12

.88

%

,

11/19/26

...

3,573

3,563

FW2076618.UP.FTS.B

,

13

.72

%

,

11/19/26

.

13,812

13,775

L2077586.UP.FTS.B

,

13

.74

%

,

11/19/26

...

3,275

3,266

L2078387.UP.FTS.B

,

14

.26

%

,

11/19/26

...

1,693

1,687

L2080759.UP.FTS.B

,

14

.39

%

,

11/19/26

...

8,952

8,925

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2078825.UP.FTS.B

,

14

.72

%

,

11/19/26

.

$

12,735

$

12,701

L2077934.UP.FTS.B

,

15

.05

%

,

11/19/26

...

4,563

4,551

L2079762.UP.FTS.B

,

15

.07

%

,

11/19/26

...

2,913

2,913

L2080377.UP.FTS.B

,

15

.37

%

,

11/19/26

...

5,491

5,498

L2078013.UP.FTS.B

,

15

.44

%

,

11/19/26

...

7,823

7,796

L2078858.UP.FTS.B

,

16

.1

%

,

11/19/26

....

12,577

914

L2080949.UP.FTS.B

,

16

.51

%

,

11/19/26

...

3,941

3,925

L2077345.UP.FTS.B

,

16

.52

%

,

11/19/26

...

1,812

256

L2078556.UP.FTS.B

,

16

.55

%

,

11/19/26

...

2,842

2,839

L2077136.UP.FTS.B

,

16

.73

%

,

11/19/26

...

6,181

6,188

FW2080998.UP.FTS.B

,

16

.87

%

,

11/19/26

.

586

586

FW2078513.UP.FTS.B

,

16

.88

%

,

11/19/26

.

11,143

11,156

L2079147.UP.FTS.B

,

16

.93

%

,

11/19/26

...

10,475

10,485

L2073789.UP.FTS.B

,

17

.39

%

,

11/19/26

...

1,867

1,869

L2078785.UP.FTS.B

,

17

.53

%

,

11/19/26

...

6,228

6,246

FW2077194.UP.FTS.B

,

17

.96

%

,

11/19/26

.

1,467

1,450

L2079526.UP.FTS.B

,

17

.98

%

,

11/19/26

...

2,377

2,371

L2078320.UP.FTS.B

,

18

.26

%

,

11/19/26

...

1,793

1,780

L2078541.UP.FTS.B

,

18

.53

%

,

11/19/26

...

2,200

2,206

L2078767.UP.FTS.B

,

18

.54

%

,

11/19/26

...

629

629

FW2080677.UP.FTS.B

,

18

.72

%

,

11/19/26

.

10,707

10,720

FW2078252.UP.FTS.B

,

19

.1

%

,

11/19/26

..

1,074

1,072

L2079089.UP.FTS.B

,

19

.11

%

,

11/19/26

...

3,771

3,775

L2077889.UP.FTS.B

,

19

.41

%

,

11/19/26

...

4,685

4,698

L2079136.UP.FTS.B

,

19

.7

%

,

11/19/26

....

10,481

10,615

FW2078808.UP.FTS.B

,

19

.87

%

,

11/19/26

.

16,325

15,558

L2077834.UP.FTS.B

,

19

.87

%

,

11/19/26

...

9,567

9,575

FW2076082.UP.FTS.B

,

20

.04

%

,

11/19/26

.

12,438

12,463

L2078706.UP.FTS.B

,

20

.11

%

,

11/19/26

...

5,118

5,123

L2080653.UP.FTS.B

,

20

.24

%

,

11/19/26

...

3,276

237

L2077864.UP.FTS.B

,

20

.33

%

,

11/19/26

...

14,054

14,095

L2077767.UP.FTS.B

,

20

.73

%

,

11/19/26

...

6,411

6,493

FW2079399.UP.FTS.B

,

20

.8

%

,

11/19/26

..

11,513

11,659

FW2080860.UP.FTS.B

,

21

.93

%

,

11/19/26

.

12,676

12,823

FW2076510.UP.FTS.B

,

22

.17

%

,

11/19/26

.

25,965

26,041

L2080597.UP.FTS.B

,

22

.59

%

,

11/19/26

...

1,433

1,452

L2078431.UP.FTS.B

,

23

.7

%

,

11/19/26

....

1,949

1,973

L2079001.UP.FTS.B

,

24

.08

%

,

11/19/26

...

9,277

9,343

FW2076263.UP.FTS.B

,

24

.18

%

,

11/19/26

.

2,047

2,050

L2051923.UP.FTS.B

,

24

.73

%

,

11/19/26

...

974

975

FW2078837.UP.FTS.B

,

25

.18

%

,

11/19/26

.

1,731

1,736

L2080819.UP.FTS.B

,

25

.23

%

,

11/19/26

...

1,133

1,147

L2080514.UP.FTS.B

,

25

.27

%

,

11/19/26

...

1,466

1,485

L2079636.UP.FTS.B

,

25

.5

%

,

11/19/26

....

1,603

1,621

L2080879.UP.FTS.B

,

25

.51

%

,

11/19/26

...

2,803

2,839

L2080301.UP.FTS.B

,

25

.61

%

,

11/19/26

...

2,484

2,507

L2076428.UP.FTS.B

,

25

.82

%

,

11/19/26

...

5,675

5,737

L2077747.UP.FTS.B

,

25

.84

%

,

11/19/26

...

4,707

4,761

L2076862.UP.FTS.B

,

25

.93

%

,

11/19/26

...

4,357

4,196

FW2080275.UP.FTS.B

,

26

.15

%

,

11/19/26

.

2,348

2,378

L2080156.UP.FTS.B

,

26

.56

%

,

11/19/26

...

2,020

2,046

FW2076617.UP.FTS.B

,

26

.67

%

,

11/19/26

.

19,675

19,927

FW2070515.UP.FTS.B

,

26

.89

%

,

11/19/26

.

3,038

3,076

L2075827.UP.FTS.B

,

27

%

,

11/19/26

.....

6,283

6,364

FW2076319.UP.FTS.B

,

27

.45

%

,

11/19/26

.

2,712

2,746

FW2079921.UP.FTS.B

,

29

.67

%

,

11/19/26

.

2,023

2,046

FW2078839.UP.FTS.B

,

30

.61

%

,

11/19/26

.

496

496

FW2076598.UP.FTS.B

,

31

.11

%

,

11/19/26

.

546

548

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2078364.UP.FTS.B

,

15

.16

%

,

11/20/26

...

$

3,656

$

3,653

L2008862.UP.FTS.B

,

25

.44

%

,

11/21/26

...

2,594

134

L2008677.UP.FTS.B

,

10

.77

%

,

11/23/26

...

5,844

5,815

FW2003971.UP.FTS.B

,

17

.71

%

,

11/24/26

.

17,714

17,680

FW2007433.UP.FTS.B

,

21

.02

%

,

11/24/26

.

4,852

4,900

FW2005949.UP.FTS.B

,

25

.57

%

,

11/24/26

.

5,180

5,198

L2079956.UP.FTS.B

,

14

.89

%

,

12/01/26

...

4,388

4,380

L2198358.UP.FTS.B

,

7

.09

%

,

12/07/26

....

1,721

1,705

L2196810.UP.FTS.B

,

7

.42

%

,

12/07/26

....

3,474

3,451

L2198501.UP.FTS.B

,

8

.94

%

,

12/07/26

....

2,337

2,322

L2195995.UP.FTS.B

,

9

.12

%

,

12/07/26

....

2,534

2,516

L2199695.UP.FTS.B

,

9

.66

%

,

12/07/26

....

3,555

3,532

L2199924.UP.FTS.B

,

9

.76

%

,

12/07/26

....

4,152

4,125

L2198890.UP.FTS.B

,

10

.21

%

,

12/07/26

...

894

888

FW2200013.UP.FTS.B

,

10

.26

%

,

12/07/26

.

8,347

8,296

L2198751.UP.FTS.B

,

10

.42

%

,

12/07/26

...

4,778

4,748

L2199240.UP.FTS.B

,

10

.7

%

,

12/07/26

....

4,910

4,876

L2196100.UP.FTS.B

,

10

.99

%

,

12/07/26

...

961

955

L2197856.UP.FTS.B

,

11

.23

%

,

12/07/26

...

3,254

3,234

L2197172.UP.FTS.B

,

11

.42

%

,

12/07/26

...

5,953

5,921

L2196592.UP.FTS.B

,

11

.62

%

,

12/07/26

...

3,263

3,246

FW2199260.UP.FTS.B

,

12

.51

%

,

12/07/26

.

14,933

14,857

L2200204.UP.FTS.B

,

12

.79

%

,

12/07/26

...

7,954

7,905

L2200250.UP.FTS.B

,

13

.28

%

,

12/07/26

...

3,071

3,052

L2197658.UP.FTS.B

,

13

.72

%

,

12/07/26

...

3,084

3,068

FW2198593.UP.FTS.B

,

14

.12

%

,

12/07/26

.

3,715

3,692

L2197131.UP.FTS.B

,

14

.14

%

,

12/07/26

...

681

678

L2199997.UP.FTS.B

,

14

.15

%

,

12/07/26

...

2,291

2,279

L2196035.UP.FTS.B

,

14

.38

%

,

12/07/26

...

3,643

496

L2198350.UP.FTS.B

,

15

.19

%

,

12/07/26

...

594

591

L2199860.UP.FTS.B

,

16

.1

%

,

12/07/26

....

9,436

9,408

L2199879.UP.FTS.B

,

16

.31

%

,

12/07/26

...

9,583

5,208

L2198446.UP.FTS.B

,

16

.58

%

,

12/07/26

...

31,240

31,144

L2198880.UP.FTS.B

,

16

.74

%

,

12/07/26

...

2,235

2,222

L2198467.UP.FTS.B

,

16

.99

%

,

12/07/26

...

14,651

1,071

FW2197380.UP.FTS.B

,

17

.12

%

,

12/07/26

.

1,910

1,901

L2198345.UP.FTS.B

,

17

.18

%

,

12/07/26

...

15,155

15,112

L2198376.UP.FTS.B

,

17

.42

%

,

12/07/26

...

14,105

14,049

L2194879.UP.FTS.B

,

17

.51

%

,

12/07/26

...

12,590

12,540

L2192178.UP.FTS.B

,

17

.53

%

,

12/07/26

...

4,792

4,778

FW2196193.UP.FTS.B

,

17

.59

%

,

12/07/26

.

16,399

9,194

L2199819.UP.FTS.B

,

17

.72

%

,

12/07/26

...

11,535

11,465

L2200255.UP.FTS.B

,

17

.89

%

,

12/07/26

...

5,203

5,185

L2199726.UP.FTS.B

,

18

.1

%

,

12/07/26

....

3,852

3,841

L2195959.UP.FTS.B

,

18

.12

%

,

12/07/26

...

8,054

1,115

L2196412.UP.FTS.B

,

18

.83

%

,

12/07/26

...

1,163

1,160

L2199248.UP.FTS.B

,

19

.04

%

,

12/07/26

...

10,250

2,731

L2199663.UP.FTS.B

,

19

.69

%

,

12/07/26

...

3,906

3,898

L2169437.UP.FTS.B

,

19

.73

%

,

12/07/26

...

6,685

3,829

L2199129.UP.FTS.B

,

20

.12

%

,

12/07/26

...

1,438

1,431

L2198874.UP.FTS.B

,

20

.19

%

,

12/07/26

...

2,913

208

L2199523.UP.FTS.B

,

20

.46

%

,

12/07/26

...

2,021

2,003

L2196447.UP.FTS.B

,

20

.62

%

,

12/07/26

...

4,267

4,247

L2197655.UP.FTS.B

,

20

.75

%

,

12/07/26

...

3,291

3,308

L2196680.UP.FTS.B

,

21

.47

%

,

12/07/26

...

4,080

4,071

L2197631.UP.FTS.B

,

21

.55

%

,

12/07/26

...

2,981

2,969

L2196775.UP.FTS.B

,

22

.04

%

,

12/07/26

...

664

661

L2191085.UP.FTS.B

,

22

.33

%

,

12/07/26

...

2,498

181

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

101

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2199874.UP.FTS.B

,

22

.34

%

,

12/07/26

...

$

5,463

$

5,490

L2192706.UP.FTS.B

,

22

.47

%

,

12/07/26

...

6,660

6,707

L2197670.UP.FTS.B

,

22

.54

%

,

12/07/26

...

2,490

2,500

L2185222.UP.FTS.B

,

23

.13

%

,

12/07/26

...

3,946

3,971

FW2196522.UP.FTS.B

,

23

.26

%

,

12/07/26

.

4,025

4,054

L2195799.UP.FTS.B

,

23

.37

%

,

12/07/26

...

5,582

5,544

FW2192438.UP.FTS.B

,

23

.66

%

,

12/07/26

.

8,077

8,134

FW2195703.UP.FTS.B

,

24

.25

%

,

12/07/26

.

1,217

1,226

FW2200190.UP.FTS.B

,

24

.4

%

,

12/07/26

..

1,693

1,705

L2200210.UP.FTS.B

,

24

.56

%

,

12/07/26

...

13,571

13,512

L2197090.UP.FTS.B

,

24

.84

%

,

12/07/26

...

3,369

3,379

L2200145.UP.FTS.B

,

24

.91

%

,

12/07/26

...

458

455

L2196714.UP.FTS.B

,

25

.02

%

,

12/07/26

...

1,818

1,817

L2195912.UP.FTS.B

,

25

.21

%

,

12/07/26

...

5,590

5,616

L2198146.UP.FTS.B

,

25

.25

%

,

12/07/26

...

1,432

1,442

L2196219.UP.FTS.B

,

25

.27

%

,

12/07/26

...

6,410

6,455

L2198546.UP.FTS.B

,

25

.32

%

,

12/07/26

...

1,023

1,030

L2199586.UP.FTS.B

,

25

.33

%

,

12/07/26

...

623

623

L2198050.UP.FTS.B

,

25

.44

%

,

12/07/26

...

3,738

2,207

L2197183.UP.FTS.B

,

25

.46

%

,

12/07/26

...

1,162

1,167

L2197844.UP.FTS.B

,

25

.47

%

,

12/07/26

...

3,430

3,439

L2198441.UP.FTS.B

,

25

.48

%

,

12/07/26

...

10,372

1,477

L2199814.UP.FTS.B

,

25

.68

%

,

12/07/26

...

4,104

4,133

FW2199793.UP.FTS.B

,

25

.9

%

,

12/07/26

..

5,482

5,520

FW2196103.UP.FTS.B

,

26

.48

%

,

12/07/26

.

389

384

FW2195998.UP.FTS.B

,

26

.86

%

,

12/07/26

.

13,328

85

FW2200076.UP.FTS.B

,

28

.24

%

,

12/07/26

.

34,883

35,124

FW2200069.UP.FTS.B

,

28

.54

%

,

12/07/26

.

2,865

2,872

FW2198176.UP.FTS.B

,

29

.22

%

,

12/07/26

.

2,759

1,617

FW2198601.UP.FTS.B

,

30

.14

%

,

12/07/26

.

3,538

3,554

FW2199215.UP.FTS.B

,

30

.27

%

,

12/07/26

.

2,548

178

FW2198672.UP.FTS.B

,

30

.42

%

,

12/07/26

.

4,253

4,282

FW2198825.UP.FTS.B

,

30

.6

%

,

12/07/26

..

2,513

2,527

FW2197604.UP.FTS.B

,

30

.64

%

,

12/07/26

.

2,343

2,359

FW2198098.UP.FTS.B

,

31

%

,

12/07/26

...

4,217

4,237

FW2199153.UP.FTS.B

,

32

.29

%

,

12/07/26

.

3,769

262

FW2199632.UP.FTS.B

,

32

.42

%

,

12/07/26

.

3,523

3,547

L2201511.UP.FTS.B

,

5

.03

%

,

12/08/26

....

5,753

5,705

L2201100.UP.FTS.B

,

5

.82

%

,

12/08/26

....

5,693

5,649

FW2201687.UP.FTS.B

,

5

.98

%

,

12/08/26

..

2,579

2,558

L2203382.UP.FTS.B

,

6

.5

%

,

12/08/26

....

5,734

5,689

L2206413.UP.FTS.B

,

7

.44

%

,

12/08/26

....

5,213

5,177

L2201126.UP.FTS.B

,

7

.87

%

,

12/08/26

....

12,347

12,265

L2200918.UP.FTS.B

,

8

.74

%

,

12/08/26

....

2,525

2,507

L2201288.UP.FTS.B

,

9

.13

%

,

12/08/26

....

1,945

1,932

FW2202215.UP.FTS.B

,

9

.76

%

,

12/08/26

..

25,153

25,012

L2202140.UP.FTS.B

,

10

.05

%

,

12/08/26

...

2,254

2,244

L2202043.UP.FTS.B

,

10

.08

%

,

12/08/26

...

11,901

11,828

L2205692.UP.FTS.B

,

10

.33

%

,

12/08/26

...

9,846

9,780

L2203887.UP.FTS.B

,

10

.82

%

,

12/08/26

...

4,796

4,774

L2205258.UP.FTS.B

,

10

.97

%

,

12/08/26

...

2,176

2,164

L2202707.UP.FTS.B

,

11

.01

%

,

12/08/26

...

6,008

5,973

L2200873.UP.FTS.B

,

11

.09

%

,

12/08/26

...

5,410

5,385

L2205661.UP.FTS.B

,

11

.13

%

,

12/08/26

...

7,216

7,182

FW2202691.UP.FTS.B

,

11

.21

%

,

12/08/26

.

1,805

1,794

L2204932.UP.FTS.B

,

11

.21

%

,

12/08/26

...

9,630

9,585

L2201522.UP.FTS.B

,

11

.25

%

,

12/08/26

...

12,041

11,985

L2205067.UP.FTS.B

,

11

.79

%

,

12/08/26

...

7,264

7,230

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2201210.UP.FTS.B

,

12

.48

%

,

12/08/26

.

$

1,223

$

1,217

L2201683.UP.FTS.B

,

13

.05

%

,

12/08/26

...

1,838

1,830

L2203910.UP.FTS.B

,

13

.18

%

,

12/08/26

...

7,057

7,017

L2202867.UP.FTS.B

,

13

.27

%

,

12/08/26

...

2,756

2,739

L2206744.UP.FTS.B

,

13

.51

%

,

12/08/26

...

18,463

18,379

L2202534.UP.FTS.B

,

13

.68

%

,

12/08/26

...

9,248

9,206

L2203497.UP.FTS.B

,

13

.78

%

,

12/08/26

...

3,986

540

L2200884.UP.FTS.B

,

13

.99

%

,

12/08/26

...

4,576

4,555

L2204734.UP.FTS.B

,

13

.99

%

,

12/08/26

...

2,211

2,199

L2189789.UP.FTS.B

,

14

.09

%

,

12/08/26

...

1,329

1,315

L2201701.UP.FTS.B

,

14

.19

%

,

12/08/26

...

4,337

4,317

L2200543.UP.FTS.B

,

14

.23

%

,

12/08/26

...

3,315

854

FW2206534.UP.FTS.B

,

14

.38

%

,

12/08/26

.

1,984

1,975

FW2201365.UP.FTS.B

,

14

.41

%

,

12/08/26

.

9,001

8,960

L2205095.UP.FTS.B

,

14

.72

%

,

12/08/26

...

1,363

99

L2205970.UP.FTS.B

,

14

.78

%

,

12/08/26

...

1,672

1,665

L2203172.UP.FTS.B

,

14

.86

%

,

12/08/26

...

6,234

6,206

FW2203636.UP.FTS.B

,

14

.99

%

,

12/08/26

.

3,454

221

L2206751.UP.FTS.B

,

15

.19

%

,

12/08/26

...

6,254

6,200

L2201429.UP.FTS.B

,

15

.27

%

,

12/08/26

...

7,461

7,426

L2201509.UP.FTS.B

,

15

.29

%

,

12/08/26

...

1,188

1,174

L2203888.UP.FTS.B

,

15

.35

%

,

12/08/26

...

1,879

1,870

L2202058.UP.FTS.B

,

15

.4

%

,

12/08/26

....

2,154

157

L2201650.UP.FTS.B

,

15

.45

%

,

12/08/26

...

2,508

2,494

L2205307.UP.FTS.B

,

15

.66

%

,

12/08/26

...

1,265

1,260

L2193881.UP.FTS.B

,

15

.75

%

,

12/08/26

...

2,766

2,755

L2200487.UP.FTS.B

,

15

.87

%

,

12/08/26

...

4,048

4,026

L2205432.UP.FTS.B

,

15

.94

%

,

12/08/26

...

15,526

15,489

L2206448.UP.FTS.B

,

16

%

,

12/08/26

.....

6,616

6,586

L2195672.UP.FTS.B

,

16

.2

%

,

12/08/26

....

8,079

8,062

L2201272.UP.FTS.B

,

16

.5

%

,

12/08/26

....

3,038

3,023

L2202979.UP.FTS.B

,

16

.63

%

,

12/08/26

...

1,267

1,262

L2203269.UP.FTS.B

,

16

.66

%

,

12/08/26

...

2,853

2,842

L2205691.UP.FTS.B

,

16

.93

%

,

12/08/26

...

30,505

30,388

L2206760.UP.FTS.B

,

17

.01

%

,

12/08/26

...

29,016

28,920

L2200739.UP.FTS.B

,

17

.06

%

,

12/08/26

...

1,718

1,714

L2200406.UP.FTS.B

,

17

.28

%

,

12/08/26

...

2,805

2,794

L2204275.UP.FTS.B

,

17

.48

%

,

12/08/26

...

3,591

3,578

L2203876.UP.FTS.B

,

17

.53

%

,

12/08/26

...

14,073

14,020

L2202653.UP.FTS.B

,

17

.59

%

,

12/08/26

...

7,927

7,897

L2203323.UP.FTS.B

,

17

.63

%

,

12/08/26

...

256

253

L2200437.UP.FTS.B

,

17

.72

%

,

12/08/26

...

1,599

1,598

L2206114.UP.FTS.B

,

17

.92

%

,

12/08/26

...

1,282

1,280

L2201870.UP.FTS.B

,

17

.98

%

,

12/08/26

...

1,924

1,922

L2198222.UP.FTS.B

,

18

.15

%

,

12/08/26

...

2,636

192

FW2200514.UP.FTS.B

,

18

.68

%

,

12/08/26

.

6,805

1,856

L2202316.UP.FTS.B

,

18

.78

%

,

12/08/26

...

1,616

1,611

L2203614.UP.FTS.B

,

18

.9

%

,

12/08/26

....

9,972

5,726

FW2204149.UP.FTS.B

,

19

.13

%

,

12/08/26

.

3,249

3,238

FW2201703.UP.FTS.B

,

19

.15

%

,

12/08/26

.

2,252

2,249

L2171699.UP.FTS.B

,

19

.26

%

,

12/08/26

...

6,491

6,529

FW2201480.UP.FTS.B

,

19

.28

%

,

12/08/26

.

4,544

4,527

L2204805.UP.FTS.B

,

19

.42

%

,

12/08/26

...

6,950

6,942

L2204012.UP.FTS.B

,

19

.62

%

,

12/08/26

...

2,176

582

L2201833.UP.FTS.B

,

19

.78

%

,

12/08/26

...

3,254

3,250

L2203346.UP.FTS.B

,

19

.86

%

,

12/08/26

...

4,174

4,158

L2203970.UP.FTS.B

,

19

.89

%

,

12/08/26

...

1,436

1,431

L2203336.UP.FTS.B

,

19

.94

%

,

12/08/26

...

2,187

1,253

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2185665.UP.FTS.B

,

20

.17

%

,

12/08/26

.

$

9,763

$

9,741

L2200446.UP.FTS.B

,

20

.19

%

,

12/08/26

...

719

718

FW2202220.UP.FTS.B

,

20

.45

%

,

12/08/26

.

13,738

8,107

L2200528.UP.FTS.B

,

20

.47

%

,

12/08/26

...

2,295

2,287

L2201790.UP.FTS.B

,

20

.6

%

,

12/08/26

....

1,838

1,832

FW2201844.UP.FTS.B

,

20

.97

%

,

12/08/26

.

1,811

131

L2202584.UP.FTS.B

,

20

.98

%

,

12/08/26

...

5,437

162

FW2205623.UP.FTS.B

,

21

.01

%

,

12/08/26

.

7,244

7,303

L2203340.UP.FTS.B

,

21

.11

%

,

12/08/26

...

3,299

3,319

L2201499.UP.FTS.B

,

21

.34

%

,

12/08/26

...

7,264

7,323

L2203266.UP.FTS.B

,

21

.37

%

,

12/08/26

...

3,357

3,379

L2203685.UP.FTS.B

,

21

.52

%

,

12/08/26

...

2,315

2,329

L2206634.UP.FTS.B

,

21

.58

%

,

12/08/26

...

1,456

1,468

FW2200309.UP.FTS.B

,

21

.86

%

,

12/08/26

.

2,377

2,396

L2204816.UP.FTS.B

,

22

.27

%

,

12/08/26

...

6,201

6,179

FW2202543.UP.FTS.B

,

22

.46

%

,

12/08/26

.

1,267

1,263

L2200624.UP.FTS.B

,

22

.5

%

,

12/08/26

....

1,334

1,332

L2201275.UP.FTS.B

,

22

.92

%

,

12/08/26

...

2,490

2,502

L2203293.UP.FTS.B

,

22

.93

%

,

12/08/26

...

1,138

1,136

FW2203667.UP.FTS.B

,

23

.01

%

,

12/08/26

.

10,046

10,104

L2203557.UP.FTS.B

,

23

.55

%

,

12/08/26

...

1,077

1,080

L2200929.UP.FTS.B

,

23

.61

%

,

12/08/26

...

1,683

1,693

L2205223.UP.FTS.B

,

23

.62

%

,

12/08/26

...

3,344

3,369

L2197277.UP.FTS.B

,

23

.68

%

,

12/08/26

...

4,411

4,439

L2205882.UP.FTS.B

,

23

.83

%

,

12/08/26

...

2,023

2,015

FW2200085.UP.FTS.B

,

23

.88

%

,

12/08/26

.

2,023

2,040

L2205789.UP.FTS.B

,

24

.11

%

,

12/08/26

...

4,234

1,190

L2201603.UP.FTS.B

,

24

.38

%

,

12/08/26

...

3,390

3,410

L2204440.UP.FTS.B

,

24

.51

%

,

12/08/26

...

813

820

L2200752.UP.FTS.B

,

24

.63

%

,

12/08/26

...

679

683

FW2200668.UP.FTS.B

,

24

.66

%

,

12/08/26

.

8,483

8,553

L2205953.UP.FTS.B

,

24

.83

%

,

12/08/26

...

526

401

L2201876.UP.FTS.B

,

24

.84

%

,

12/08/26

...

748

752

L2200418.UP.FTS.B

,

24

.91

%

,

12/08/26

...

5,180

5,171

L2201388.UP.FTS.B

,

24

.93

%

,

12/08/26

...

1,981

1,994

L2201658.UP.FTS.B

,

24

.93

%

,

12/08/26

...

884

881

L2200868.UP.FTS.B

,

24

.96

%

,

12/08/26

...

1,868

134

L2203217.UP.FTS.B

,

25

.16

%

,

12/08/26

...

767

450

L2205039.UP.FTS.B

,

25

.2

%

,

12/08/26

....

2,532

360

L2202422.UP.FTS.B

,

25

.21

%

,

12/08/26

...

2,485

2,504

L2201763.UP.FTS.B

,

25

.22

%

,

12/08/26

...

4,693

4,683

L2203014.UP.FTS.B

,

25

.25

%

,

12/08/26

...

3,409

3,437

L2204236.UP.FTS.B

,

25

.3

%

,

12/08/26

....

3,771

3,780

L2201267.UP.FTS.B

,

25

.35

%

,

12/08/26

...

774

457

L2207019.UP.FTS.B

,

25

.36

%

,

12/08/26

...

1,072

1,074

L2203473.UP.FTS.B

,

25

.37

%

,

12/08/26

...

1,502

1,497

L2206798.UP.FTS.B

,

25

.37

%

,

12/08/26

...

890

879

L2204385.UP.FTS.B

,

25

.38

%

,

12/08/26

...

819

824

L2204272.UP.FTS.B

,

25

.42

%

,

12/08/26

...

1,053

1,057

L2200539.UP.FTS.B

,

25

.48

%

,

12/08/26

...

3,696

3,718

L2200596.UP.FTS.B

,

25

.49

%

,

12/08/26

...

7,172

7,219

L2202382.UP.FTS.B

,

25

.5

%

,

12/08/26

....

1,230

1,240

L2204469.UP.FTS.B

,

25

.55

%

,

12/08/26

...

2,151

2,166

L2206619.UP.FTS.B

,

25

.63

%

,

12/08/26

...

5,129

5,171

L2201626.UP.FTS.B

,

25

.65

%

,

12/08/26

...

4,378

4,413

FW2202207.UP.FTS.B

,

25

.82

%

,

12/08/26

.

4,517

4,485

L2200110.UP.FTS.B

,

25

.93

%

,

12/08/26

...

5,144

5,174

L2205529.UP.FTS.B

,

25

.96

%

,

12/08/26

...

4,799

4,838

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2200501.UP.FTS.B

,

26

.06

%

,

12/08/26

...

$

1,510

$

1,519

FW2204619.UP.FTS.B

,

26

.36

%

,

12/08/26

.

1,828

261

L2200760.UP.FTS.B

,

26

.49

%

,

12/08/26

...

7,574

7,618

FW2205293.UP.FTS.B

,

26

.73

%

,

12/08/26

.

1,637

1,624

FW2205802.UP.FTS.B

,

27

%

,

12/08/26

...

2,471

2,483

FW2200840.UP.FTS.B

,

27

.39

%

,

12/08/26

.

5,823

5,871

FW2205131.UP.FTS.B

,

27

.64

%

,

12/08/26

.

2,153

2,171

FW2206331.UP.FTS.B

,

28

.09

%

,

12/08/26

.

7,319

7,363

FW2200263.UP.FTS.B

,

28

.29

%

,

12/08/26

.

12,586

12,661

FW2202084.UP.FTS.B

,

28

.33

%

,

12/08/26

.

1,013

1,019

FW2206080.UP.FTS.B

,

28

.43

%

,

12/08/26

.

2,182

2,189

FW2202420.UP.FTS.B

,

28

.72

%

,

12/08/26

.

3,373

1,987

FW2203128.UP.FTS.B

,

28

.72

%

,

12/08/26

.

704

709

FW2200463.UP.FTS.B

,

28

.91

%

,

12/08/26

.

842

846

FW2201925.UP.FTS.B

,

29

.05

%

,

12/08/26

.

856

858

FW2204212.UP.FTS.B

,

29

.48

%

,

12/08/26

.

12,167

1,725

FW2201641.UP.FTS.B

,

29

.67

%

,

12/08/26

.

5,781

5,828

FW2206862.UP.FTS.B

,

29

.87

%

,

12/08/26

.

3,390

3,410

FW2204427.UP.FTS.B

,

30

.34

%

,

12/08/26

.

5,667

5,713

FW2202866.UP.FTS.B

,

30

.6

%

,

12/08/26

..

863

125

FW2203290.UP.FTS.B

,

31

.07

%

,

12/08/26

.

997

1,005

FW2206683.UP.FTS.B

,

31

.07

%

,

12/08/26

.

1,471

1,481

FW2201843.UP.FTS.B

,

31

.08

%

,

12/08/26

.

1,228

1,237

FW2205002.UP.FTS.B

,

31

.08

%

,

12/08/26

.

2,208

2,226

FW2200524.UP.FTS.B

,

31

.14

%

,

12/08/26

.

4,579

4,594

FW2199311.UP.FTS.B

,

31

.18

%

,

12/08/26

.

998

1,004

FW2203562.UP.FTS.B

,

32

.34

%

,

12/08/26

.

4,596

1,322

FW2199186.UP.FTS.B

,

25

.95

%

,

12/09/26

.

1,733

1,743

L2197561.UP.FTS.B

,

20

.81

%

,

12/11/26

...

3,734

272

FW2201142.UP.FTS.B

,

31

.05

%

,

12/12/26

.

715

721

L2202911.UP.FTS.B

,

21

.13

%

,

12/14/26

...

4,265

4,259

L2196899.UP.FTS.B

,

24

.65

%

,

12/15/26

...

3,957

3,977

FW2199479.UP.FTS.B

,

28

.66

%

,

12/15/26

.

11,599

816

FW2199126.UP.FTS.B

,

31

.54

%

,

12/15/26

.

4,457

4,485

FW2198165.UP.FTS.B

,

14

.07

%

,

12/16/26

.

869

864

L2203118.UP.FTS.B

,

8

.78

%

,

12/17/26

....

4,689

4,660

L2203117.UP.FTS.B

,

13

.79

%

,

12/17/26

...

5,325

5,296

FW2198942.UP.FTS.B

,

24

.77

%

,

12/18/26

.

13,440

12,919

FW2205704.UP.FTS.B

,

28

.05

%

,

12/18/26

.

3,511

3,533

FW2197646.UP.FTS.B

,

16

.34

%

,

12/22/26

.

5,193

5,152

L2195329.UP.FTS.B

,

17

.11

%

,

12/22/26

...

3,406

3,230

FW2198520.UP.FTS.B

,

20

.07

%

,

12/22/26

.

6,548

6,535

L2196637.UP.FTS.B

,

24

.42

%

,

12/22/26

...

10,191

10,244

FW2195399.UP.FTS.B

,

29

.81

%

,

12/22/26

.

1,643

1,651

L2203381.UP.FTS.B

,

18

.04

%

,

12/23/26

...

6,788

6,764

FW2206855.UP.FTS.B

,

19

.38

%

,

12/23/26

.

3,272

3,256

L2200814.UP.FTS.B

,

19

.64

%

,

12/23/26

...

4,124

299

FW2411209.UP.FTS.B

,

5

.24

%

,

1/11/27

...

12,942

985

L2411009.UP.FTS.B

,

5

.26

%

,

1/11/27

.....

20,376

20,220

FW2412321.UP.FTS.B

,

5

.36

%

,

1/11/27

...

29,142

28,911

L2402399.UP.FTS.B

,

6

.09

%

,

1/11/27

.....

15,913

15,791

FW2408524.UP.FTS.B

,

6

.18

%

,

1/11/27

...

6,348

6,300

L2413519.UP.FTS.B

,

6

.19

%

,

1/11/27

.....

14,731

14,615

FW2411884.UP.FTS.B

,

6

.2

%

,

1/11/27

....

14,697

14,585

L2411160.UP.FTS.B

,

7

.26

%

,

1/11/27

.....

8,913

8,846

FW2406810.UP.FTS.B

,

7

.3

%

,

1/11/27

....

3,642

3,613

L2408660.UP.FTS.B

,

7

.61

%

,

1/11/27

.....

4,115

4,088

L2412785.UP.FTS.B

,

7

.81

%

,

1/11/27

.....

1,195

1,187

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

103

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2412559.UP.FTS.B

,

7

.83

%

,

1/11/27

.....

$

2,789

$

2,768

L2408557.UP.FTS.B

,

7

.86

%

,

1/11/27

.....

2,996

2,974

L2407811.UP.FTS.B

,

7

.94

%

,

1/11/27

.....

2,920

2,893

L2413039.UP.FTS.B

,

8

.03

%

,

1/11/27

.....

10,180

743

FW2413850.UP.FTS.B

,

8

.58

%

,

1/11/27

...

6,445

6,403

L2413727.UP.FTS.B

,

8

.61

%

,

1/11/27

.....

2,590

2,573

L2412142.UP.FTS.B

,

8

.74

%

,

1/11/27

.....

10,191

10,125

FW2410081.UP.FTS.B

,

8

.78

%

,

1/11/27

...

10,861

10,791

L2407187.UP.FTS.B

,

8

.85

%

,

1/11/27

.....

3,015

2,996

L2413316.UP.FTS.B

,

8

.98

%

,

1/11/27

.....

7,264

7,213

FW2411415.UP.FTS.B

,

9

.04

%

,

1/11/27

...

4,099

4,071

FW2413111.UP.FTS.B

,

9

.07

%

,

1/11/27

...

4,817

4,785

FW2411385.UP.FTS.B

,

9

.23

%

,

1/11/27

...

5,744

418

FW2413046.UP.FTS.B

,

9

.47

%

,

1/11/27

...

3,889

3,859

L2410685.UP.FTS.B

,

9

.48

%

,

1/11/27

.....

5,987

809

FW2406985.UP.FTS.B

,

9

.83

%

,

1/11/27

...

1,828

1,817

L2412433.UP.FTS.B

,

9

.93

%

,

1/11/27

.....

5,460

1,383

L2404630.UP.FTS.B

,

10

.03

%

,

1/11/27

....

30,541

30,344

L2411458.UP.FTS.B

,

10

.12

%

,

1/11/27

....

1,345

1,336

L2411928.UP.FTS.B

,

10

.18

%

,

1/11/27

....

3,058

3,042

L2408600.UP.FTS.B

,

10

.21

%

,

1/11/27

....

2,618

2,605

L2413945.UP.FTS.B

,

10

.53

%

,

1/11/27

....

13,500

13,431

L2411297.UP.FTS.B

,

10

.9

%

,

1/11/27

.....

5,904

805

L2413322.UP.FTS.B

,

10

.93

%

,

1/11/27

....

6,473

6,439

L2413229.UP.FTS.B

,

11

.26

%

,

1/11/27

....

11,461

6,202

L2411571.UP.FTS.B

,

11

.47

%

,

1/11/27

....

4,744

4,717

L2413044.UP.FTS.B

,

11

.78

%

,

1/11/27

....

5,176

2,801

FW2408471.UP.FTS.B

,

11

.94

%

,

1/11/27

..

3,604

3,584

L2405206.UP.FTS.B

,

12

.1

%

,

1/11/27

.....

15,021

14,930

L2370107.UP.FTS.B

,

12

.85

%

,

1/11/27

....

3,074

3,058

L2412100.UP.FTS.B

,

13

.07

%

,

1/11/27

....

4,098

4,073

L2411596.UP.FTS.B

,

13

.42

%

,

1/11/27

....

3,153

3,137

FW2412293.UP.FTS.B

,

13

.57

%

,

1/11/27

..

3,308

3,290

FW2412839.UP.FTS.B

,

13

.8

%

,

1/11/27

...

6,799

6,758

FW2407206.UP.FTS.B

,

13

.82

%

,

1/11/27

..

3,797

3,778

FW2410061.UP.FTS.B

,

13

.89

%

,

1/11/27

..

12,665

12,601

L2409821.UP.FTS.B

,

14

.42

%

,

1/11/27

....

3,436

3,419

L2410324.UP.FTS.B

,

14

.46

%

,

1/11/27

....

12,651

6,844

L2405215.UP.FTS.B

,

14

.48

%

,

1/11/27

....

16,107

15,987

L2408774.UP.FTS.B

,

14

.55

%

,

1/11/27

....

2,548

2,541

L2410681.UP.FTS.B

,

14

.74

%

,

1/11/27

....

1,605

1,595

L2408843.UP.FTS.B

,

14

.84

%

,

1/11/27

....

1,875

1,863

L2408436.UP.FTS.B

,

15

.99

%

,

1/11/27

....

25,911

25,796

L2379748.UP.FTS.B

,

16

.06

%

,

1/11/27

....

2,755

2,745

L2413797.UP.FTS.B

,

16

.41

%

,

1/11/27

....

6,442

6,422

L2406986.UP.FTS.B

,

16

.62

%

,

1/11/27

....

3,245

3,235

L2412621.UP.FTS.B

,

16

.62

%

,

1/11/27

....

2,596

2,588

L2407022.UP.FTS.B

,

16

.96

%

,

1/11/27

....

3,254

3,245

FW2411635.UP.FTS.B

,

17

.05

%

,

1/11/27

..

3,322

3,315

L2411840.UP.FTS.B

,

17

.48

%

,

1/11/27

....

18,632

18,534

L2406982.UP.FTS.B

,

17

.53

%

,

1/11/27

....

5,957

5,932

L2412808.UP.FTS.B

,

17

.54

%

,

1/11/27

....

6,541

6,522

FW2411466.UP.FTS.B

,

17

.75

%

,

1/11/27

..

1,311

1,307

L2407285.UP.FTS.B

,

17

.96

%

,

1/11/27

....

3,315

1,911

FW2407640.UP.FTS.B

,

18

.05

%

,

1/11/27

..

7,226

7,190

L2410765.UP.FTS.B

,

18

.19

%

,

1/11/27

....

4,878

4,861

L2410306.UP.FTS.B

,

18

.23

%

,

1/11/27

....

4,731

2,571

FW2413451.UP.FTS.B

,

18

.29

%

,

1/11/27

..

1,811

261

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2413233.UP.FTS.B

,

18

.45

%

,

1/11/27

....

$

1,648

$

1,643

L2412345.UP.FTS.B

,

18

.51

%

,

1/11/27

....

2,198

2,192

L2413035.UP.FTS.B

,

18

.66

%

,

1/11/27

....

1,925

1,919

FW2406958.UP.FTS.B

,

18

.83

%

,

1/11/27

..

1,508

1,500

L2407160.UP.FTS.B

,

18

.83

%

,

1/11/27

....

11,573

11,538

FW2406995.UP.FTS.B

,

18

.92

%

,

1/11/27

..

7,627

7,582

L2413429.UP.FTS.B

,

19

.09

%

,

1/11/27

....

380

376

L2412374.UP.FTS.B

,

19

.25

%

,

1/11/27

....

8,007

8,050

FW2410395.UP.FTS.B

,

20

.34

%

,

1/11/27

..

3,348

3,341

FW2412607.UP.FTS.B

,

20

.39

%

,

1/11/27

..

3,633

263

FW2410858.UP.FTS.B

,

20

.48

%

,

1/11/27

..

1,482

1,475

FW2412890.UP.FTS.B

,

20

.68

%

,

1/11/27

..

6,776

6,813

FW2410350.UP.FTS.B

,

20

.75

%

,

1/11/27

..

6,760

6,796

L2407644.UP.FTS.B

,

21

.08

%

,

1/11/27

....

2,694

2,714

L2410907.UP.FTS.B

,

21

.6

%

,

1/11/27

.....

2,465

1,454

FW2413140.UP.FTS.B

,

22

.12

%

,

1/11/27

..

3,396

3,421

L2413585.UP.FTS.B

,

22

.13

%

,

1/11/27

....

5,488

5,518

L2413345.UP.FTS.B

,

22

.45

%

,

1/11/27

....

4,111

4,133

L2410843.UP.FTS.B

,

22

.81

%

,

1/11/27

....

3,455

250

FW2412276.UP.FTS.B

,

22

.84

%

,

1/11/27

..

2,620

2,634

L2410796.UP.FTS.B

,

23

%

,

1/11/27

......

4,976

2,920

L2410622.UP.FTS.B

,

23

.11

%

,

1/11/27

....

3,286

3,310

L2413027.UP.FTS.B

,

23

.16

%

,

1/11/27

....

5,595

3,287

FW2412083.UP.FTS.B

,

23

.34

%

,

1/11/27

..

3,154

3,177

L2408703.UP.FTS.B

,

23

.63

%

,

1/11/27

....

4,000

4,023

FW2413529.UP.FTS.B

,

23

.86

%

,

1/11/27

..

1,545

111

L2409471.UP.FTS.B

,

23

.96

%

,

1/11/27

....

4,136

4,165

L2412292.UP.FTS.B

,

24

.03

%

,

1/11/27

....

13,321

3,766

L2413379.UP.FTS.B

,

24

.03

%

,

1/11/27

....

13,795

13,894

FW2412786.UP.FTS.B

,

24

.26

%

,

1/11/27

..

5,872

5,914

FW2409686.UP.FTS.B

,

24

.48

%

,

1/11/27

..

5,432

391

FW2407461.UP.FTS.B

,

25

.01

%

,

1/11/27

..

3,474

3,499

L2407824.UP.FTS.B

,

25

.08

%

,

1/11/27

....

2,850

2,870

L2410276.UP.FTS.B

,

25

.16

%

,

1/11/27

....

639

641

L2412631.UP.FTS.B

,

25

.16

%

,

1/11/27

....

904

910

FW2412505.UP.FTS.B

,

25

.22

%

,

1/11/27

..

3,270

3,293

L2406959.UP.FTS.B

,

25

.22

%

,

1/11/27

....

6,789

6,780

L2413560.UP.FTS.B

,

25

.29

%

,

1/11/27

....

2,453

2,466

FW2411982.UP.FTS.B

,

25

.34

%

,

1/11/27

..

3,488

3,505

L2411780.UP.FTS.B

,

25

.37

%

,

1/11/27

....

2,156

2,147

L2413809.UP.FTS.B

,

25

.37

%

,

1/11/27

....

5,505

5,545

L2409900.UP.FTS.B

,

25

.4

%

,

1/11/27

.....

699

702

L2411491.UP.FTS.B

,

25

.4

%

,

1/11/27

.....

1,572

1,563

L2412889.UP.FTS.B

,

25

.46

%

,

1/11/27

....

1,515

109

L2411973.UP.FTS.B

,

25

.47

%

,

1/11/27

....

906

912

L2411979.UP.FTS.B

,

25

.48

%

,

1/11/27

....

723

726

L2412081.UP.FTS.B

,

25

.48

%

,

1/11/27

....

3,438

3,430

L2411173.UP.FTS.B

,

25

.49

%

,

1/11/27

....

1,025

291

L2413595.UP.FTS.B

,

25

.51

%

,

1/11/27

....

2,169

2,178

FW2412928.UP.FTS.B

,

25

.61

%

,

1/11/27

..

1,396

1,406

L2412410.UP.FTS.B

,

26

.21

%

,

1/11/27

....

5,295

5,322

FW2411046.UP.FTS.B

,

26

.47

%

,

1/11/27

..

6,318

6,364

L2409231.UP.FTS.B

,

26

.66

%

,

1/11/27

....

3,296

3,310

L2410155.UP.FTS.B

,

26

.8

%

,

1/11/27

.....

6,184

437

FW2408955.UP.FTS.B

,

27

.26

%

,

1/11/27

..

1,771

1,780

FW2410353.UP.FTS.B

,

27

.55

%

,

1/11/27

..

7,141

510

FW2412354.UP.FTS.B

,

27

.69

%

,

1/11/27

..

709

714

FW2406988.UP.FTS.B

,

27

.86

%

,

1/11/27

..

3,547

3,572

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2410159.UP.FTS.B

,

27

.94

%

,

1/11/27

..

$

3,133

$

3,152

FW2411293.UP.FTS.B

,

29

.42

%

,

1/11/27

..

1,148

1,156

FW2407567.UP.FTS.B

,

29

.43

%

,

1/11/27

..

2,871

2,890

FW2407055.UP.FTS.B

,

29

.46

%

,

1/11/27

..

3,330

3,341

FW2408568.UP.FTS.B

,

29

.5

%

,

1/11/27

...

3,229

3,251

FW2403902.UP.FTS.B

,

29

.51

%

,

1/11/27

..

1,499

1,506

FW2407473.UP.FTS.B

,

30

.14

%

,

1/11/27

..

691

681

FW2412942.UP.FTS.B

,

30

.18

%

,

1/11/27

..

2,787

2,803

FW2413390.UP.FTS.B

,

30

.33

%

,

1/11/27

..

3,134

3,153

FW2407748.UP.FTS.B

,

30

.43

%

,

1/11/27

..

1,734

1,746

FW2413147.UP.FTS.B

,

30

.55

%

,

1/11/27

..

3,115

898

FW2412502.UP.FTS.B

,

30

.76

%

,

1/11/27

..

10,857

10,931

FW2410401.UP.FTS.B

,

30

.79

%

,

1/11/27

..

959

965

FW2411299.UP.FTS.B

,

30

.92

%

,

1/11/27

..

1,236

1,242

FW2392367.UP.FTS.B

,

30

.94

%

,

1/11/27

..

1,630

1,639

FW2411172.UP.FTS.B

,

30

.96

%

,

1/11/27

..

4,589

320

FW2411010.UP.FTS.B

,

31

.02

%

,

1/11/27

..

3,265

3,287

FW2409966.UP.FTS.B

,

31

.03

%

,

1/11/27

..

2,393

2,409

FW2407947.UP.FTS.B

,

31

.05

%

,

1/11/27

..

2,611

2,629

FW2411701.UP.FTS.B

,

31

.06

%

,

1/11/27

..

1,258

1,251

FW2411738.UP.FTS.B

,

31

.08

%

,

1/11/27

..

1,291

1,299

FW2413942.UP.FTS.B

,

31

.15

%

,

1/11/27

..

593

589

FW2410271.UP.FTS.B

,

31

.19

%

,

1/11/27

..

1,389

1,396

FW2411062.UP.FTS.B

,

32

.46

%

,

1/11/27

..

5,125

5,160

FW2410751.UP.FTS.B

,

34

.47

%

,

1/11/27

..

3,635

3,659

L2414458.UP.FTS.B

,

5

.96

%

,

1/12/27

....

17,591

17,461

L2414801.UP.FTS.B

,

6

.11

%

,

1/12/27

.....

6,463

6,414

L2419361.UP.FTS.B

,

6

.41

%

,

1/12/27

....

884

877

L2402757.UP.FTS.B

,

6

.51

%

,

1/12/27

....

4,128

4,098

L2416784.UP.FTS.B

,

6

.53

%

,

1/12/27

....

1,180

1,171

L2418799.UP.FTS.B

,

6

.56

%

,

1/12/27

....

7,303

3,794

L2417049.UP.FTS.B

,

6

.6

%

,

1/12/27

.....

3,015

2,990

FW2414856.UP.FTS.B

,

6

.64

%

,

1/12/27

...

591

586

L2415375.UP.FTS.B

,

6

.85

%

,

1/12/27

....

3,553

3,527

L2416695.UP.FTS.B

,

6

.86

%

,

1/12/27

....

2,664

2,644

L2414595.UP.FTS.B

,

7

.05

%

,

1/12/27

....

4,448

4,420

L2419333.UP.FTS.B

,

7

.27

%

,

1/12/27

....

8,311

8,260

FW2415988.UP.FTS.B

,

7

.29

%

,

1/12/27

...

10,523

10,449

L2410292.UP.FTS.B

,

7

.3

%

,

1/12/27

.....

2,495

2,477

L2417990.UP.FTS.B

,

7

.34

%

,

1/12/27

....

29,735

29,553

L2417199.UP.FTS.B

,

7

.43

%

,

1/12/27

....

26,133

25,963

FW2419541.UP.FTS.B

,

7

.5

%

,

1/12/27

....

8,935

8,880

L2414153.UP.FTS.B

,

7

.51

%

,

1/12/27

....

1,489

1,478

L2417691.UP.FTS.B

,

7

.69

%

,

1/12/27

....

13,140

13,043

L2414031.UP.FTS.B

,

7

.78

%

,

1/12/27

....

9,557

9,499

L2417969.UP.FTS.B

,

8

.13

%

,

1/12/27

....

4,436

4,409

FW2416734.UP.FTS.B

,

8

.22

%

,

1/12/27

...

2,174

2,156

L2416137.UP.FTS.B

,

8

.26

%

,

1/12/27

....

6,242

6,204

FW2415662.UP.FTS.B

,

8

.6

%

,

1/12/27

....

4,217

4,192

FW2416458.UP.FTS.B

,

9

.06

%

,

1/12/27

...

2,043

507

L2416545.UP.FTS.B

,

9

.07

%

,

1/12/27

....

7,985

7,929

L2418009.UP.FTS.B

,

9

.08

%

,

1/12/27

....

7,261

7,218

L2414926.UP.FTS.B

,

9

.43

%

,

1/12/27

....

18,923

18,800

L2413887.UP.FTS.B

,

9

.49

%

,

1/12/27

....

3,652

3,632

FW2419389.UP.FTS.B

,

9

.58

%

,

1/12/27

...

430

426

FW2415990.UP.FTS.B

,

9

.9

%

,

1/12/27

....

18,347

18,246

L2414275.UP.FTS.B

,

9

.91

%

,

1/12/27

....

24,399

24,254

L2417012.UP.FTS.B

,

10

.17

%

,

1/12/27

....

1,223

1,216

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2415942.UP.FTS.B

,

10

.21

%

,

1/12/27

....

$

9,177

$

9,123

FW2417548.UP.FTS.B

,

10

.24

%

,

1/12/27

..

9,179

9,125

FW2417403.UP.FTS.B

,

10

.31

%

,

1/12/27

..

4,289

4,265

L2415901.UP.FTS.B

,

10

.41

%

,

1/12/27

....

9,809

9,765

L2414718.UP.FTS.B

,

10

.85

%

,

1/12/27

....

2,462

2,451

L2418788.UP.FTS.B

,

10

.88

%

,

1/12/27

....

3,595

3,561

FW2419104.UP.FTS.B

,

11

.58

%

,

1/12/27

..

4,959

4,938

L2415315.UP.FTS.B

,

11

.71

%

,

1/12/27

....

9,196

9,154

L2414779.UP.FTS.B

,

11

.77

%

,

1/12/27

....

2,484

2,473

L2414313.UP.FTS.B

,

12

.04

%

,

1/12/27

....

6,697

489

L2415035.UP.FTS.B

,

12

.36

%

,

1/12/27

....

6,284

6,240

L2419353.UP.FTS.B

,

12

.95

%

,

1/12/27

....

20,469

20,380

L2418973.UP.FTS.B

,

13

.17

%

,

1/12/27

....

13,212

13,155

L2419419.UP.FTS.B

,

13

.25

%

,

1/12/27

....

4,408

4,389

L2419716.UP.FTS.B

,

13

.82

%

,

1/12/27

....

6,013

5,988

FW2417958.UP.FTS.B

,

14

.2

%

,

1/12/27

...

5,792

1,510

L2414553.UP.FTS.B

,

14

.38

%

,

1/12/27

....

12,937

12,880

L2417256.UP.FTS.B

,

14

.46

%

,

1/12/27

....

21,874

2,994

L2418826.UP.FTS.B

,

14

.49

%

,

1/12/27

....

2,821

2,794

L2416103.UP.FTS.B

,

14

.61

%

,

1/12/27

....

6,375

6,348

L2419563.UP.FTS.B

,

14

.64

%

,

1/12/27

....

18,929

18,844

L2419336.UP.FTS.B

,

14

.72

%

,

1/12/27

....

14,039

13,980

FW2417528.UP.FTS.B

,

14

.86

%

,

1/12/27

..

3,349

1,817

FW2414824.UP.FTS.B

,

15

.13

%

,

1/12/27

..

22,459

22,342

L2418818.UP.FTS.B

,

15

.34

%

,

1/12/27

....

4,447

4,427

L2418960.UP.FTS.B

,

15

.54

%

,

1/12/27

....

12,855

12,831

L2416354.UP.FTS.B

,

15

.71

%

,

1/12/27

....

3,218

3,204

FW2418121.UP.FTS.B

,

15

.9

%

,

1/12/27

...

25,850

25,758

L2414253.UP.FTS.B

,

16

.15

%

,

1/12/27

....

5,171

5,161

L2414062.UP.FTS.B

,

16

.39

%

,

1/12/27

....

3,433

3,426

L2414473.UP.FTS.B

,

16

.4

%

,

1/12/27

....

648

646

L2415142.UP.FTS.B

,

16

.59

%

,

1/12/27

....

1,262

1,253

L2420474.UP.FTS.B

,

16

.75

%

,

1/12/27

....

9,744

9,704

L2420206.UP.FTS.B

,

16

.98

%

,

1/12/27

....

8,035

579

L2416327.UP.FTS.B

,

17

.17

%

,

1/12/27

....

16,384

16,301

L2417581.UP.FTS.B

,

17

.27

%

,

1/12/27

....

2,871

2,866

L2415513.UP.FTS.B

,

17

.29

%

,

1/12/27

....

2,051

2,036

FW2414008.UP.FTS.B

,

17

.55

%

,

1/12/27

..

2,073

2,063

FW2394068.UP.FTS.B

,

18

.18

%

,

1/12/27

..

5,261

5,256

FW2415024.UP.FTS.B

,

19

.94

%

,

1/12/27

..

5,808

5,858

FW2414368.UP.FTS.B

,

20

.45

%

,

1/12/27

..

1,865

38

L2418100.UP.FTS.B

,

20

.74

%

,

1/12/27

....

12,161

12,149

L2416916.UP.FTS.B

,

21

.22

%

,

1/12/27

....

3,400

3,423

L2416598.UP.FTS.B

,

21

.42

%

,

1/12/27

....

4,994

5,035

L2389418.UP.FTS.B

,

22

.12

%

,

1/12/27

....

4,222

4,250

L2415799.UP.FTS.B

,

22

.22

%

,

1/12/27

....

3,184

3,202

FW2408502.UP.FTS.B

,

22

.28

%

,

1/12/27

..

4,400

4,431

L2416737.UP.FTS.B

,

23

.4

%

,

1/12/27

....

1,857

1,869

FW2416362.UP.FTS.B

,

23

.42

%

,

1/12/27

..

3,433

3,462

L2409743.UP.FTS.B

,

23

.49

%

,

1/12/27

....

7,706

4,179

FW2414282.UP.FTS.B

,

23

.79

%

,

1/12/27

..

1,376

1,388

L2415306.UP.FTS.B

,

24

.21

%

,

1/12/27

....

7,457

7,522

L2414849.UP.FTS.B

,

24

.57

%

,

1/12/27

....

2,623

115

L2417607.UP.FTS.B

,

24

.68

%

,

1/12/27

....

3,845

3,853

L2418700.UP.FTS.B

,

25

.3

%

,

1/12/27

....

879

873

L2414994.UP.FTS.B

,

25

.32

%

,

1/12/27

....

1,493

1,488

L2411740.UP.FTS.B

,

25

.36

%

,

1/12/27

....

1,114

1,124

L2418717.UP.FTS.B

,

25

.38

%

,

1/12/27

....

2,370

2,391

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

105

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2414777.UP.FTS.B

,

25

.43

%

,

1/12/27

....

$

962

$

970

L2417967.UP.FTS.B

,

25

.45

%

,

1/12/27

....

4,440

646

L2417114.UP.FTS.B

,

25

.49

%

,

1/12/27

....

1,324

1,336

L2418684.UP.FTS.B

,

25

.49

%

,

1/12/27

....

2,084

309

FW2418617.UP.FTS.B

,

25

.69

%

,

1/12/27

..

8,894

8,960

FW2418174.UP.FTS.B

,

25

.89

%

,

1/12/27

..

6,918

6,974

L2413654.UP.FTS.B

,

25

.91

%

,

1/12/27

....

4,228

1,187

L2414249.UP.FTS.B

,

26

.35

%

,

1/12/27

....

2,807

2,832

FW2419574.UP.FTS.B

,

26

.43

%

,

1/12/27

..

13,417

13,518

FW2415999.UP.FTS.B

,

26

.93

%

,

1/12/27

..

6,483

6,540

L2414422.UP.FTS.B

,

27

.95

%

,

1/12/27

....

2,325

347

FW2411493.UP.FTS.B

,

28

.18

%

,

1/12/27

..

9,841

9,889

FW2417708.UP.FTS.B

,

28

.27

%

,

1/12/27

..

7,115

7,178

FW2418008.UP.FTS.B

,

28

.88

%

,

1/12/27

..

1,215

1,225

FW2418306.UP.FTS.B

,

29

.61

%

,

1/12/27

..

5,030

5,074

FW2415348.UP.FTS.B

,

30

.45

%

,

1/12/27

..

15,330

15,440

FW2419466.UP.FTS.B

,

30

.59

%

,

1/12/27

..

3,923

3,950

FW2415122.UP.FTS.B

,

30

.76

%

,

1/12/27

..

1,860

132

FW2417562.UP.FTS.B

,

30

.84

%

,

1/12/27

..

724

731

FW2418392.UP.FTS.B

,

30

.87

%

,

1/12/27

..

1,569

1,581

FW2416140.UP.FTS.B

,

30

.99

%

,

1/12/27

..

1,595

1,609

FW2417415.UP.FTS.B

,

31

.03

%

,

1/12/27

..

1,306

1,317

FW2417950.UP.FTS.B

,

31

.11

%

,

1/12/27

..

266

18

FW2414984.UP.FTS.B

,

31

.12

%

,

1/12/27

..

2,812

2,834

FW2416377.UP.FTS.B

,

31

.22

%

,

1/12/27

..

3,558

3,589

FW2419527.UP.FTS.B

,

33

.12

%

,

1/12/27

..

976

981

L2419307.UP.FTS.B

,

7

.34

%

,

1/15/27

....

24,222

24,041

L2410860.UP.FTS.B

,

23

.88

%

,

1/15/27

....

4,428

4,453

L2418737.UP.FTS.B

,

5

.93

%

,

1/16/27

....

2,346

2,329

L2410494.UP.FTS.B

,

17

.56

%

,

1/16/27

....

13,147

13,088

FW2415097.UP.FTS.B

,

23

.87

%

,

1/16/27

..

1,497

1,492

L2414012.UP.FTS.B

,

9

.06

%

,

1/20/27

....

7,011

511

L2408655.UP.FTS.B

,

5

.7

%

,

1/26/27

.....

12,370

12,272

L2409264.UP.FTS.B

,

16

.99

%

,

1/26/27

....

6,556

6,528

L2417088.UP.FTS.B

,

15

.78

%

,

1/27/27

....

5,068

5,045

L2416370.UP.FTS.B

,

25

.03

%

,

1/27/27

....

10,933

11,021

FW2418991.UP.FTS.B

,

31

.12

%

,

1/27/27

..

3,967

–

L1711260.UP.FTS.B

,

11

.26

%

,

2/14/27

....

1,278

1,269

L1710000.UP.FTS.B

,

16

.05

%

,

2/14/27

....

13,483

13,408

FW1709115.UP.FTS.B

,

20

.14

%

,

2/14/27

..

3,826

3,821

L1709217.UP.FTS.B

,

25

.78

%

,

2/14/27

....

19,617

19,753

FW1711280.UP.FTS.B

,

28

.58

%

,

2/14/27

..

16,512

16,697

FW1710082.UP.FTS.B

,

31

.29

%

,

2/14/27

..

588

571

FW1687516.UP.FTS.B

,

31

.34

%

,

2/14/27

..

26,772

3,690

FW1709995.UP.FTS.B

,

32

.33

%

,

2/14/27

..

13,146

911

L2632551.UP.FTS.B

,

5

.37

%

,

2/15/27

....

7,190

7,136

L2632779.UP.FTS.B

,

5

.63

%

,

2/15/27

....

4,204

4,173

L2633842.UP.FTS.B

,

6

.31

%

,

2/15/27

....

2,322

2,217

L2633588.UP.FTS.B

,

6

.56

%

,

2/15/27

....

20,004

19,854

L2631314.UP.FTS.B

,

6

.7

%

,

2/15/27

.....

12,747

12,652

FW2631935.UP.FTS.B

,

8

.55

%

,

2/15/27

...

25,515

2,118

L2630774.UP.FTS.B

,

8

.69

%

,

2/15/27

....

2,475

2,457

L2635638.UP.FTS.B

,

9

.41

%

,

2/15/27

....

5,644

5,604

L2631278.UP.FTS.B

,

9

.42

%

,

2/15/27

....

3,115

3,095

FW2633029.UP.FTS.B

,

9

.57

%

,

2/15/27

...

936

930

FW2633295.UP.FTS.B

,

9

.71

%

,

2/15/27

...

11,557

11,483

FW2635362.UP.FTS.B

,

9

.75

%

,

2/15/27

...

7,499

7,451

L2633022.UP.FTS.B

,

9

.86

%

,

2/15/27

....

9,369

9,309

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2635247.UP.FTS.B

,

10

.37

%

,

2/15/27

..

$

5,372

$

5,344

L2632143.UP.FTS.B

,

10

.83

%

,

2/15/27

....

3,474

3,447

L2632232.UP.FTS.B

,

11

.83

%

,

2/15/27

....

5,071

5,031

L2633836.UP.FTS.B

,

12

%

,

2/15/27

......

7,012

6,617

FW2636201.UP.FTS.B

,

12

.12

%

,

2/15/27

..

4,471

4,448

L2630147.UP.FTS.B

,

12

.15

%

,

2/15/27

....

25,551

25,422

L2635861.UP.FTS.B

,

12

.41

%

,

2/15/27

....

5,442

5,414

L2628202.UP.FTS.B

,

13

.1

%

,

2/15/27

....

4,767

346

L2637042.UP.FTS.B

,

13

.14

%

,

2/15/27

....

5,156

5,130

L2631332.UP.FTS.B

,

13

.22

%

,

2/15/27

....

3,225

3,208

FW2633237.UP.FTS.B

,

13

.24

%

,

2/15/27

..

2,580

2,567

L2631964.UP.FTS.B

,

14

%

,

2/15/27

......

4,877

4,847

L2632724.UP.FTS.B

,

14

.48

%

,

2/15/27

....

3,457

3,439

L2637603.UP.FTS.B

,

14

.83

%

,

2/15/27

....

4,178

4,156

FW2631558.UP.FTS.B

,

15

.18

%

,

2/15/27

..

9,838

9,788

L2635221.UP.FTS.B

,

15

.45

%

,

2/15/27

....

4,865

4,840

FW2633986.UP.FTS.B

,

15

.46

%

,

2/15/27

..

16,860

15,911

FW2631951.UP.FTS.B

,

15

.91

%

,

2/15/27

..

5,930

5,614

FW2634727.UP.FTS.B

,

16

.18

%

,

2/15/27

..

4,366

4,354

L2635424.UP.FTS.B

,

16

.37

%

,

2/15/27

....

26,503

26,425

L2610013.UP.FTS.B

,

16

.95

%

,

2/15/27

....

2,958

213

L2630011.UP.FTS.B

,

16

.96

%

,

2/15/27

....

3,330

3,313

FW2635945.UP.FTS.B

,

17

.32

%

,

2/15/27

..

3,672

3,664

FW2635531.UP.FTS.B

,

18

.53

%

,

2/15/27

..

7,958

7,933

FW2632933.UP.FTS.B

,

18

.59

%

,

2/15/27

..

6,748

6,727

L2634353.UP.FTS.B

,

19

.06

%

,

2/15/27

....

6,654

6,634

L2632256.UP.FTS.B

,

19

.82

%

,

2/15/27

....

711

192

L2635013.UP.FTS.B

,

20

.25

%

,

2/15/27

....

4,033

4,020

L2633648.UP.FTS.B

,

20

.29

%

,

2/15/27

....

6,949

6,924

FW2632574.UP.FTS.B

,

20

.97

%

,

2/15/27

..

3,294

3,246

L2632212.UP.FTS.B

,

21

.09

%

,

2/15/27

....

2,741

2,734

L2630116.UP.FTS.B

,

21

.26

%

,

2/15/27

....

4,312

1,194

L2637476.UP.FTS.B

,

21

.48

%

,

2/15/27

....

7,569

7,540

FW2631142.UP.FTS.B

,

21

.84

%

,

2/15/27

..

2,184

2,198

FW2634641.UP.FTS.B

,

22

.06

%

,

2/15/27

..

4,303

4,257

L2636740.UP.FTS.B

,

22

.15

%

,

2/15/27

....

694

699

L2633500.UP.FTS.B

,

22

.28

%

,

2/15/27

....

3,494

3,512

L2632041.UP.FTS.B

,

23

.26

%

,

2/15/27

....

8,399

8,377

L2631781.UP.FTS.B

,

23

.47

%

,

2/15/27

....

1,732

1,714

FW2633249.UP.FTS.B

,

23

.49

%

,

2/15/27

..

3,866

3,886

L2629665.UP.FTS.B

,

24

.47

%

,

2/15/27

....

5,018

5,047

FW2634252.UP.FTS.B

,

24

.49

%

,

2/15/27

..

4,522

4,555

L2636078.UP.FTS.B

,

24

.6

%

,

2/15/27

....

12,021

864

FW2632893.UP.FTS.B

,

24

.67

%

,

2/15/27

..

17,188

1,235

L2631848.UP.FTS.B

,

24

.9

%

,

2/15/27

....

4,766

342

L2634268.UP.FTS.B

,

25

.05

%

,

2/15/27

....

1,678

1,688

FW2635941.UP.FTS.B

,

25

.09

%

,

2/15/27

..

3,900

3,928

L2634539.UP.FTS.B

,

25

.3

%

,

2/15/27

....

1,349

1,359

L2632154.UP.FTS.B

,

25

.31

%

,

2/15/27

....

16,688

16,808

L2636370.UP.FTS.B

,

25

.4

%

,

2/15/27

....

2,131

2,147

L2631893.UP.FTS.B

,

25

.41

%

,

2/15/27

....

2,540

2,557

L2634591.UP.FTS.B

,

25

.45

%

,

2/15/27

....

782

787

FW2631141.UP.FTS.B

,

25

.72

%

,

2/15/27

..

9,333

9,399

L2634677.UP.FTS.B

,

25

.78

%

,

2/15/27

....

2,850

2,871

FW2635210.UP.FTS.B

,

25

.81

%

,

2/15/27

..

4,527

666

L2636195.UP.FTS.B

,

25

.92

%

,

2/15/27

....

10,697

10,774

L2635199.UP.FTS.B

,

26

.23

%

,

2/15/27

....

4,502

4,534

FW2635628.UP.FTS.B

,

26

.36

%

,

2/15/27

..

1,871

1,861

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2634760.UP.FTS.B

,

26

.38

%

,

2/15/27

..

$

4,221

$

4,251

L2634070.UP.FTS.B

,

26

.45

%

,

2/15/27

....

19,939

1,409

L2635219.UP.FTS.B

,

26

.59

%

,

2/15/27

....

3,010

3,031

FW2637086.UP.FTS.B

,

26

.68

%

,

2/15/27

..

2,366

2,383

FW2637044.UP.FTS.B

,

27

.28

%

,

2/15/27

..

855

–

FW2634310.UP.FTS.B

,

27

.59

%

,

2/15/27

..

5,395

5,424

FW2632183.UP.FTS.B

,

27

.72

%

,

2/15/27

..

5,055

5,091

FW2634627.UP.FTS.B

,

28

.11

%

,

2/15/27

..

4,344

4,374

FW2634087.UP.FTS.B

,

29

.37

%

,

2/15/27

..

3,260

3,248

FW2632506.UP.FTS.B

,

29

.8

%

,

2/15/27

...

3,823

3,833

FW2631008.UP.FTS.B

,

30

.31

%

,

2/15/27

..

278

275

FW2636372.UP.FTS.B

,

30

.35

%

,

2/15/27

..

4,409

4,439

FW2632070.UP.FTS.B

,

30

.58

%

,

2/15/27

..

2,350

2,365

FW2631994.UP.FTS.B

,

30

.71

%

,

2/15/27

..

3,795

3,814

FW2631494.UP.FTS.B

,

30

.85

%

,

2/15/27

..

3,317

3,340

FW2629864.UP.FTS.B

,

30

.9

%

,

2/15/27

...

1,727

1,736

FW2633675.UP.FTS.B

,

30

.91

%

,

2/15/27

..

812

817

FW2634617.UP.FTS.B

,

30

.93

%

,

2/15/27

..

2,773

2,659

FW2631968.UP.FTS.B

,

30

.98

%

,

2/15/27

..

4,817

4,821

FW2633314.UP.FTS.B

,

31

.08

%

,

2/15/27

..

674

674

FW2637419.UP.FTS.B

,

31

.1

%

,

2/15/27

...

1,773

1,764

FW2633604.UP.FTS.B

,

31

.13

%

,

2/15/27

..

1,922

1,935

FW2637089.UP.FTS.B

,

31

.23

%

,

2/15/27

..

6,207

6,249

L2640422.UP.FTS.B

,

7

.19

%

,

2/16/27

....

3,642

3,620

L2638196.UP.FTS.B

,

7

.54

%

,

2/16/27

....

11,220

11,139

L2644170.UP.FTS.B

,

8

.74

%

,

2/16/27

....

17,022

16,922

L2644467.UP.FTS.B

,

8

.99

%

,

2/16/27

....

1,034

1,024

L2641249.UP.FTS.B

,

9

.09

%

,

2/16/27

....

9,130

9,076

FW2640044.UP.FTS.B

,

9

.77

%

,

2/16/27

...

3,628

3,606

FW2639996.UP.FTS.B

,

9

.85

%

,

2/16/27

...

4,158

4,129

L2628258.UP.FTS.B

,

10

.4

%

,

2/16/27

....

10,247

10,202

L2639939.UP.FTS.B

,

10

.73

%

,

2/16/27

....

9,118

9,077

L2642767.UP.FTS.B

,

10

.84

%

,

2/16/27

....

8,422

7,952

L2642462.UP.FTS.B

,

10

.86

%

,

2/16/27

....

4,420

4,400

L2640107.UP.FTS.B

,

11

.57

%

,

2/16/27

....

6,800

6,770

L2642580.UP.FTS.B

,

11

.66

%

,

2/16/27

....

2,226

2,216

FW2644262.UP.FTS.B

,

11

.83

%

,

2/16/27

..

6,370

6,343

L2642829.UP.FTS.B

,

11

.96

%

,

2/16/27

....

13,647

13,588

L2643133.UP.FTS.B

,

12

.13

%

,

2/16/27

....

6,963

6,931

L2640589.UP.FTS.B

,

12

.31

%

,

2/16/27

....

31,983

31,844

L2637999.UP.FTS.B

,

12

.45

%

,

2/16/27

....

7,171

7,140

FW2641042.UP.FTS.B

,

12

.73

%

,

2/16/27

..

770

767

L2641626.UP.FTS.B

,

13

.94

%

,

2/16/27

....

649

646

L2639543.UP.FTS.B

,

14

.06

%

,

2/16/27

....

6,497

6,469

FW2641444.UP.FTS.B

,

14

.17

%

,

2/16/27

..

4,227

4,209

FW2637881.UP.FTS.B

,

14

.54

%

,

2/16/27

..

3,908

3,891

L2637807.UP.FTS.B

,

14

.59

%

,

2/16/27

....

9,706

9,663

L2643572.UP.FTS.B

,

14

.72

%

,

2/16/27

....

1,307

1,301

FW2640160.UP.FTS.B

,

14

.88

%

,

2/16/27

..

15,048

14,985

L2644502.UP.FTS.B

,

15

.74

%

,

2/16/27

....

11,772

11,692

L2643245.UP.FTS.B

,

15

.83

%

,

2/16/27

....

14,313

14,253

L2642945.UP.FTS.B

,

15

.91

%

,

2/16/27

....

990

986

FW2637690.UP.FTS.B

,

16

.3

%

,

2/16/27

...

4,316

4,294

FW2643607.UP.FTS.B

,

16

.31

%

,

2/16/27

..

33,108

33,044

FW2638305.UP.FTS.B

,

16

.48

%

,

2/16/27

..

7,137

7,112

L2641861.UP.FTS.B

,

16

.53

%

,

2/16/27

....

13,157

13,097

L2639711.UP.FTS.B

,

16

.7

%

,

2/16/27

.....

1,063

1,061

FW2641664.UP.FTS.B

,

17

.29

%

,

2/16/27

..

3,796

3,785

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2643228.UP.FTS.B

,

17

.64

%

,

2/16/27

....

$

3,348

$

3,341

L2641429.UP.FTS.B

,

17

.81

%

,

2/16/27

....

8,716

8,699

FW2643031.UP.FTS.B

,

17

.82

%

,

2/16/27

..

28,001

3,935

L2641792.UP.FTS.B

,

17

.85

%

,

2/16/27

....

3,380

3,364

FW2641155.UP.FTS.B

,

18

.14

%

,

2/16/27

..

3,723

3,712

L2638277.UP.FTS.B

,

18

.32

%

,

2/16/27

....

3,371

3,359

L2607183.UP.FTS.B

,

19

.09

%

,

2/16/27

....

13,388

13,360

L2640102.UP.FTS.B

,

19

.59

%

,

2/16/27

....

17,356

17,314

L2642912.UP.FTS.B

,

19

.59

%

,

2/16/27

....

14,092

1,015

L2644725.UP.FTS.B

,

19

.78

%

,

2/16/27

....

6,667

6,654

L2643324.UP.FTS.B

,

19

.84

%

,

2/16/27

....

31,661

31,560

L2639587.UP.FTS.B

,

20

.1

%

,

2/16/27

....

2,731

2,728

FW2640938.UP.FTS.B

,

20

.16

%

,

2/16/27

..

7,449

7,515

L2643431.UP.FTS.B

,

20

.38

%

,

2/16/27

....

9,944

9,444

FW2644103.UP.FTS.B

,

20

.8

%

,

2/16/27

...

5,131

5,121

FW2639130.UP.FTS.B

,

21

.01

%

,

2/16/27

..

2,751

2,775

L2640498.UP.FTS.B

,

21

.39

%

,

2/16/27

....

6,941

6,989

FW2638136.UP.FTS.B

,

21

.78

%

,

2/16/27

..

5,537

5,586

L2641584.UP.FTS.B

,

21

.92

%

,

2/16/27

....

36,481

34,607

L2637535.UP.FTS.B

,

21

.95

%

,

2/16/27

....

22,041

540

L2631819.UP.FTS.B

,

22

.11

%

,

2/16/27

....

18,901

18,986

L2637903.UP.FTS.B

,

22

.13

%

,

2/16/27

....

8,241

8,229

FW2640578.UP.FTS.B

,

22

.42

%

,

2/16/27

..

612

614

L2639752.UP.FTS.B

,

22

.85

%

,

2/16/27

....

34,870

34,831

L2644478.UP.FTS.B

,

23

.24

%

,

2/16/27

....

13,999

14,123

FW2641930.UP.FTS.B

,

23

.25

%

,

2/16/27

..

7,270

7,262

FW2640017.UP.FTS.B

,

23

.28

%

,

2/16/27

..

34,683

34,969

L2636952.UP.FTS.B

,

23

.58

%

,

2/16/27

....

7,014

7,076

FW2639691.UP.FTS.B

,

23

.69

%

,

2/16/27

..

12,772

12,885

FW2643737.UP.FTS.B

,

23

.79

%

,

2/16/27

..

11,067

11,151

L2644184.UP.FTS.B

,

24

.14

%

,

2/16/27

....

6,569

6,223

L2638887.UP.FTS.B

,

24

.84

%

,

2/16/27

....

1,415

1,428

L2643360.UP.FTS.B

,

24

.93

%

,

2/16/27

....

2,589

184

L2642235.UP.FTS.B

,

24

.97

%

,

2/16/27

....

1,063

1,073

FW2642257.UP.FTS.B

,

25

.15

%

,

2/16/27

..

7,071

7,132

L2642246.UP.FTS.B

,

25

.42

%

,

2/16/27

....

1,564

1,578

L2637328.UP.FTS.B

,

25

.43

%

,

2/16/27

....

3,080

3,071

L2643718.UP.FTS.B

,

25

.45

%

,

2/16/27

....

1,054

156

L2644251.UP.FTS.B

,

25

.49

%

,

2/16/27

....

858

864

L2643938.UP.FTS.B

,

25

.5

%

,

2/16/27

....

1,078

1,086

L2638794.UP.FTS.B

,

25

.6

%

,

2/16/27

....

9,623

2,761

L2638678.UP.FTS.B

,

25

.84

%

,

2/16/27

....

7,127

7,190

FW2642963.UP.FTS.B

,

25

.88

%

,

2/16/27

..

3,422

3,452

L2640846.UP.FTS.B

,

26

.29

%

,

2/16/27

....

17,882

18,040

FW2641067.UP.FTS.B

,

27

.08

%

,

2/16/27

..

4,996

5,038

FW2638017.UP.FTS.B

,

27

.09

%

,

2/16/27

..

6,184

6,238

FW2636711.UP.FTS.B

,

27

.4

%

,

2/16/27

...

7,206

7,269

FW2643525.UP.FTS.B

,

28

.34

%

,

2/16/27

..

8,878

16

FW2644630.UP.FTS.B

,

28

.55

%

,

2/16/27

..

7,315

7,365

FW2642505.UP.FTS.B

,

29

.14

%

,

2/16/27

..

1,500

1,511

FW2638733.UP.FTS.B

,

29

.69

%

,

2/16/27

..

3,147

3,175

FW2639696.UP.FTS.B

,

30

.14

%

,

2/16/27

..

734

740

FW2640894.UP.FTS.B

,

30

.14

%

,

2/16/27

..

19,963

20,138

FW2642574.UP.FTS.B

,

30

.52

%

,

2/16/27

..

12,819

3,691

FW2639097.UP.FTS.B

,

30

.54

%

,

2/16/27

..

737

744

FW2632545.UP.FTS.B

,

30

.71

%

,

2/16/27

..

612

603

FW2644847.UP.FTS.B

,

30

.77

%

,

2/16/27

..

1,010

1,012

FW2643800.UP.FTS.B

,

31

.1

%

,

2/16/27

...

1,094

1,071

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

107

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2638255.UP.FTS.B

,

31

.12

%

,

2/16/27

..

$

1,204

$

1,200

FW2610188.UP.FTS.B

,

31

.13

%

,

2/16/27

..

7,930

1,194

FW2641269.UP.FTS.B

,

31

.13

%

,

2/16/27

..

8,661

8,320

FW2642792.UP.FTS.B

,

31

.15

%

,

2/16/27

..

883

891

FW2639361.UP.FTS.B

,

31

.17

%

,

2/16/27

..

1,034

1,043

FW2638060.UP.FTS.B

,

31

.21

%

,

2/16/27

..

1,922

1,939

FW2645630.UP.FTS.B

,

12

.87

%

,

2/17/27

..

8,152

8,115

L2644980.UP.FTS.B

,

12

.95

%

,

2/17/27

....

1,225

1,219

L2645342.UP.FTS.B

,

13

.93

%

,

2/17/27

....

19,416

19,335

FW2645588.UP.FTS.B

,

15

.61

%

,

2/17/27

..

2,592

2,586

FW2645675.UP.FTS.B

,

15

.8

%

,

2/17/27

...

17,936

17,906

FW2645832.UP.FTS.B

,

18

.88

%

,

2/17/27

..

10,146

10,129

L2645010.UP.FTS.B

,

20

.52

%

,

2/17/27

....

7,537

7,531

FW2642053.UP.FTS.B

,

21

.61

%

,

2/17/27

..

2,894

2,921

L2645135.UP.FTS.B

,

21

.7

%

,

2/17/27

....

1,521

1,535

L2645558.UP.FTS.B

,

22

.43

%

,

2/17/27

....

2,041

1,940

L2645378.UP.FTS.B

,

22

.72

%

,

2/17/27

....

3,625

3,658

L2645573.UP.FTS.B

,

22

.94

%

,

2/17/27

....

1,420

1,351

L2645131.UP.FTS.B

,

25

.45

%

,

2/17/27

....

1,055

305

FW2645900.UP.FTS.B

,

26

.25

%

,

2/17/27

..

1,430

1,443

FW2645472.UP.FTS.B

,

26

.31

%

,

2/17/27

..

13,056

3,790

FW2645571.UP.FTS.B

,

26

.48

%

,

2/17/27

..

2,864

2,890

FW2645165.UP.FTS.B

,

26

.81

%

,

2/17/27

..

261

258

FW2644973.UP.FTS.B

,

28

.39

%

,

2/17/27

..

6,226

6,278

FW2645842.UP.FTS.B

,

30

.86

%

,

2/17/27

..

2,288

2,304

L2633374.UP.FTS.B

,

7

.21

%

,

2/18/27

....

11,598

11,509

FW2635428.UP.FTS.B

,

22

.3

%

,

2/19/27

...

11,444

11,530

FW2639867.UP.FTS.B

,

26

.3

%

,

2/19/27

...

1,448

1,458

L2640308.UP.FTS.B

,

18

.76

%

,

2/22/27

....

471

465

L2638208.UP.FTS.B

,

25

.18

%

,

2/22/27

....

1,782

1,794

L2642691.UP.FTS.B

,

8

.69

%

,

2/23/27

....

20,316

20,195

L2644708.UP.FTS.B

,

25

.19

%

,

2/25/27

....

3,285

3,308

L1710004.UP.FTS.B

,

26

.05

%

,

2/25/27

....

9,183

658

L2631928.UP.FTS.B

,

22

.74

%

,

2/28/27

....

5,890

425

L2633254.UP.FTS.B

,

24

.29

%

,

2/28/27

....

15,507

15,439

L2643974.UP.FTS.B

,

25

.5

%

,

2/28/27

....

2,595

2,614

L2645397.UP.FTS.B

,

26

.19

%

,

2/28/27

....

1,799

1,816

L2640994.UP.FTS.B

,

27

.05

%

,

2/28/27

....

15,077

4,348

FW2644598.UP.FTS.B

,

29

.38

%

,

3/01/27

..

8,226

8,287

L1874238.UP.FTS.B

,

17

.32

%

,

3/18/27

....

3,425

3,406

L1873745.UP.FTS.B

,

17

.46

%

,

3/18/27

....

7,765

2,144

L1872889.UP.FTS.B

,

18

.38

%

,

3/18/27

....

13,687

13,609

L1872381.UP.FTS.B

,

22

.4

%

,

3/18/27

....

1,762

1,773

L1873838.UP.FTS.B

,

26

.46

%

,

3/18/27

....

3,806

1,103

FW1873640.UP.FTS.B

,

27

.67

%

,

3/18/27

..

28,702

8,119

FW1874126.UP.FTS.B

,

27

.94

%

,

3/18/27

..

3,947

1,141

FW1873950.UP.FTS.B

,

28

.68

%

,

3/18/27

..

1,534

1,549

L1873977.UP.FTS.B

,

12

.66

%

,

3/23/27

....

8,143

8,084

L1874548.UP.FTS.B

,

26

.04

%

,

3/26/27

....

5,035

5,068

L1873528.UP.FTS.B

,

25

.71

%

,

3/28/27

....

6,008

1,741

FW1873464.UP.FTS.B

,

22

.91

%

,

4/03/27

..

2,049

2,066

L2008435.UP.FTS.B

,

14

.4

%

,

4/09/27

....

6,089

828

L2005313.UP.FTS.B

,

17

.04

%

,

4/09/27

....

40,192

39,946

L2006384.UP.FTS.B

,

18

.95

%

,

4/09/27

....

8,337

8,313

L2004674.UP.FTS.B

,

22

.44

%

,

4/09/27

....

5,930

5,975

L2006933.UP.FTS.B

,

23

.7

%

,

4/09/27

....

4,349

4,371

L2006560.UP.FTS.B

,

24

.67

%

,

4/09/27

....

6,071

6,105

L2008993.UP.FTS.B

,

25

.21

%

,

4/09/27

....

6,868

6,896

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2009664.UP.FTS.B

,

25

.29

%

,

4/09/27

....

$

1,241

$

1,249

FW2007255.UP.FTS.B

,

28

.65

%

,

4/09/27

..

4,542

4,555

FW2008122.UP.FTS.B

,

29

.26

%

,

4/09/27

..

311

1

FW2009107.UP.FTS.B

,

29

.81

%

,

4/09/27

..

2,672

1,571

FW2009466.UP.FTS.B

,

29

.96

%

,

4/09/27

..

1,566

1,575

FW2007277.UP.FTS.B

,

30

.98

%

,

4/09/27

..

841

846

FW2008461.UP.FTS.B

,

31

.23

%

,

4/09/27

..

1,350

1,353

L2009332.UP.FTS.B

,

18

.58

%

,

4/15/27

....

1,750

1,742

FW2008777.UP.FTS.B

,

28

.16

%

,

4/15/27

..

2,713

194

L2077624.UP.FTS.B

,

16

.62

%

,

4/19/27

....

30,978

30,790

L2077275.UP.FTS.B

,

17

.44

%

,

4/19/27

....

5,817

475

L2078117.UP.FTS.B

,

17

.47

%

,

4/19/27

....

2,197

2,187

L2080091.UP.FTS.B

,

20

.35

%

,

4/19/27

....

1,807

1,797

L2075161.UP.FTS.B

,

20

.64

%

,

4/19/27

....

24,640

24,493

L2076557.UP.FTS.B

,

21

.86

%

,

4/19/27

....

21,049

21,334

L2078089.UP.FTS.B

,

22

.76

%

,

4/19/27

....

15,398

4,301

FW2078029.UP.FTS.B

,

23

.15

%

,

4/19/27

..

3,457

3,472

FW2077484.UP.FTS.B

,

23

.29

%

,

4/19/27

..

12,691

12,191

L2075052.UP.FTS.B

,

25

.99

%

,

4/19/27

....

3,694

3,719

L2077173.UP.FTS.B

,

26

.59

%

,

4/19/27

....

10,081

720

FW2076494.UP.FTS.B

,

27

.89

%

,

4/19/27

..

4,533

4,570

FW2079282.UP.FTS.B

,

30

.4

%

,

4/19/27

...

924

928

FW2076836.UP.FTS.B

,

31

.47

%

,

4/19/27

..

5,885

5,920

FW2076209.UP.FTS.B

,

31

.48

%

,

4/19/27

..

2,725

189

FW2079511.UP.FTS.B

,

9

.94

%

,

5/01/27

...

4,528

4,495

L2079161.UP.FTS.B

,

17

.64

%

,

5/01/27

....

4,895

2,744

L2199199.UP.FTS.B

,

10

.28

%

,

5/07/27

....

6,051

5,995

FW2195774.UP.FTS.B

,

11

.53

%

,

5/07/27

..

22,675

22,416

L2196990.UP.FTS.B

,

14

.16

%

,

5/07/27

....

4,162

302

L2196542.UP.FTS.B

,

14

.21

%

,

5/07/27

....

5,787

3,097

L2197143.UP.FTS.B

,

15

.39

%

,

5/07/27

....

8,708

636

FW2198673.UP.FTS.B

,

15

.71

%

,

5/07/27

..

15,824

15,750

L2199844.UP.FTS.B

,

16

.94

%

,

5/07/27

....

7,150

7,090

L2197174.UP.FTS.B

,

17

.08

%

,

5/07/27

....

10,585

10,479

L2200120.UP.FTS.B

,

19

.52

%

,

5/07/27

....

8,765

8,681

FW2198237.UP.FTS.B

,

21

.87

%

,

5/07/27

..

3,676

3,677

L2197891.UP.FTS.B

,

23

.8

%

,

5/07/27

....

2,793

2,810

L2199876.UP.FTS.B

,

25

.33

%

,

5/07/27

....

1,086

604

L2199661.UP.FTS.B

,

25

.4

%

,

5/07/27

....

2,131

2,127

FW2198564.UP.FTS.B

,

27

.96

%

,

5/07/27

..

3,702

3,710

FW2197220.UP.FTS.B

,

29

.81

%

,

5/07/27

..

2,066

1,209

FW2196279.UP.FTS.B

,

31

.01

%

,

5/07/27

..

2,779

2,780

FW2199111.UP.FTS.B

,

31

.05

%

,

5/07/27

..

1,517

895

L2203856.UP.FTS.B

,

13

.82

%

,

5/08/27

....

20,196

20,032

L2205206.UP.FTS.B

,

15

.97

%

,

5/08/27

....

23,467

23,321

L2205436.UP.FTS.B

,

16

.02

%

,

5/08/27

....

19,532

19,344

L2203740.UP.FTS.B

,

19

.62

%

,

5/08/27

....

1,731

1,716

L2198053.UP.FTS.B

,

20

.47

%

,

5/08/27

....

2,762

2,734

L2201398.UP.FTS.B

,

22

.49

%

,

5/08/27

....

10,168

5,821

L2202315.UP.FTS.B

,

23

.12

%

,

5/08/27

....

3,004

850

L2204624.UP.FTS.B

,

23

.54

%

,

5/08/27

....

15,993

16,128

L2204118.UP.FTS.B

,

23

.56

%

,

5/08/27

....

12,889

12,888

FW2205649.UP.FTS.B

,

23

.84

%

,

5/08/27

..

3,130

888

L2204897.UP.FTS.B

,

23

.87

%

,

5/08/27

....

18,296

18,230

L2169986.UP.FTS.B

,

24

.03

%

,

5/08/27

....

11,016

11,005

FW2202542.UP.FTS.B

,

24

.64

%

,

5/08/27

..

3,676

3,706

L2205328.UP.FTS.B

,

24

.68

%

,

5/08/27

....

1,536

901

FW2201944.UP.FTS.B

,

25

.52

%

,

5/08/27

..

4,672

2,747

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2204916.UP.FTS.B

,

25

.63

%

,

5/08/27

....

$

9,209

$

9,244

L2206165.UP.FTS.B

,

26

.19

%

,

5/08/27

....

7,247

4,296

FW2206860.UP.FTS.B

,

28

.2

%

,

5/08/27

...

2,767

2,769

FW2199020.UP.FTS.B

,

29

.97

%

,

5/08/27

..

8,984

639

FW2199475.UP.FTS.B

,

30

.86

%

,

5/08/27

..

3,935

26

FW2202450.UP.FTS.B

,

31

.05

%

,

5/08/27

..

2,339

1,381

FW2201216.UP.FTS.B

,

31

.06

%

,

5/08/27

..

2,277

161

FW2200444.UP.FTS.B

,

31

.21

%

,

5/08/27

..

3,309

473

FW2200188.UP.FTS.B

,

28

.66

%

,

5/12/27

..

4,512

1,284

L2199654.UP.FTS.B

,

12

.66

%

,

5/13/27

....

3,964

3,929

L2195192.UP.FTS.B

,

17

.22

%

,

5/15/27

....

2,382

1,327

L2197038.UP.FTS.B

,

12

.26

%

,

5/16/27

....

2,612

2,586

L2203741.UP.FTS.B

,

7

.33

%

,

5/23/27

....

12,206

12,091

FW2199867.UP.FTS.B

,

13

.82

%

,

5/23/27

..

10,886

10,804

FW2204874.UP.FTS.B

,

17

.03

%

,

5/23/27

..

6,903

6,830

L2169853.UP.FTS.B

,

22

.52

%

,

5/23/27

....

3,998

3,815

L2412468.UP.FTS.B

,

7

.67

%

,

6/11/27

.....

32,685

17,024

L2412874.UP.FTS.B

,

8

.03

%

,

6/11/27

.....

4,737

2,467

L2412901.UP.FTS.B

,

8

.44

%

,

6/11/27

.....

9,927

9,840

L2408994.UP.FTS.B

,

9

.47

%

,

6/11/27

.....

5,638

412

L2408318.UP.FTS.B

,

10

.27

%

,

6/11/27

....

2,512

2,498

L2412970.UP.FTS.B

,

14

.15

%

,

6/11/27

....

25,334

–

L2410725.UP.FTS.B

,

15

.84

%

,

6/11/27

....

13,737

13,613

FW2407472.UP.FTS.B

,

18

.08

%

,

6/11/27

..

18,563

18,420

L2412214.UP.FTS.B

,

18

.34

%

,

6/11/27

....

2,341

599

L2402977.UP.FTS.B

,

20

.95

%

,

6/11/27

....

1,228

1,231

FW2406392.UP.FTS.B

,

23

.41

%

,

6/11/27

..

8,278

8,331

L2413373.UP.FTS.B

,

23

.72

%

,

6/11/27

....

27,179

27,251

FW2409812.UP.FTS.B

,

24

.81

%

,

6/11/27

..

2,258

2,258

L2406611.UP.FTS.B

,

25

.32

%

,

6/11/27

....

20,626

12,114

FW2410079.UP.FTS.B

,

25

.81

%

,

6/11/27

..

2,695

2,701

FW2411228.UP.FTS.B

,

26

.37

%

,

6/11/27

..

3,225

3,230

L2407955.UP.FTS.B

,

27

%

,

6/11/27

......

7,398

7,416

FW2413018.UP.FTS.B

,

30

.69

%

,

6/11/27

..

688

679

FW2410302.UP.FTS.B

,

30

.97

%

,

6/11/27

..

1,505

1,510

FW2412394.UP.FTS.B

,

31

.05

%

,

6/11/27

..

1,931

137

FW2411177.UP.FTS.B

,

31

.23

%

,

6/11/27

..

2,880

2,895

FW2408747.UP.FTS.B

,

31

.68

%

,

6/11/27

..

11,206

792

L2417948.UP.FTS.B

,

8

.36

%

,

6/12/27

....

716

710

L2415490.UP.FTS.B

,

12

.71

%

,

6/12/27

....

10,994

10,908

L2418555.UP.FTS.B

,

15

.62

%

,

6/12/27

....

11,527

11,430

FW2417755.UP.FTS.B

,

18

.05

%

,

6/12/27

..

13,439

13,355

L2415568.UP.FTS.B

,

19

.57

%

,

6/12/27

....

2,584

2,604

L2415810.UP.FTS.B

,

22

.13

%

,

6/12/27

....

3,679

3,699

L2418697.UP.FTS.B

,

22

.86

%

,

6/12/27

....

3,421

3,395

L2417411.UP.FTS.B

,

24

%

,

6/12/27

......

8,762

8,849

FW2415852.UP.FTS.B

,

25

.19

%

,

6/12/27

..

7,001

32

FW2415078.UP.FTS.B

,

25

.67

%

,

6/12/27

..

2,855

2,867

FW2414026.UP.FTS.B

,

30

.61

%

,

6/12/27

..

907

909

FW2418950.UP.FTS.B

,

30

.94

%

,

6/12/27

..

1,540

1,542

FW2418092.UP.FTS.B

,

30

.98

%

,

6/12/27

..

1,142

1,147

FW2420156.UP.FTS.B

,

31

.98

%

,

6/12/27

..

2,616

2,646

L2412701.UP.FTS.B

,

25

.09

%

,

6/15/27

....

821

821

FW2410113.UP.FTS.B

,

29

.34

%

,

6/25/27

..

2,822

2,827

FW2411936.UP.FTS.B

,

13

.61

%

,

6/26/27

..

5,405

5,360

L1708948.UP.FTS.B

,

7

.47

%

,

7/14/27

....

5,358

5,319

L1708685.UP.FTS.B

,

16

.63

%

,

7/14/27

....

1,470

1,462

FW1706254.UP.FTS.B

,

26

.93

%

,

7/14/27

..

26,073

1,839

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2633603.UP.FTS.B

,

8

.38

%

,

7/15/27

....

$

12,100

$

12,000

FW2637564.UP.FTS.B

,

8

.54

%

,

7/15/27

...

11,027

2,717

L2636245.UP.FTS.B

,

12

.68

%

,

7/15/27

....

28,117

27,885

L2633537.UP.FTS.B

,

17

.39

%

,

7/15/27

....

8,623

625

L2633453.UP.FTS.B

,

19

.72

%

,

7/15/27

....

13,199

12,482

L2636132.UP.FTS.B

,

21

.91

%

,

7/15/27

....

9,021

–

FW2636073.UP.FTS.B

,

23

.1

%

,

7/15/27

...

3,891

3,886

FW2632915.UP.FTS.B

,

24

.46

%

,

7/15/27

..

11,591

11,563

L2633167.UP.FTS.B

,

24

.54

%

,

7/15/27

....

4,670

4,623

L2605748.UP.FTS.B

,

25

.45

%

,

7/15/27

....

1,433

1,434

FW2634423.UP.FTS.B

,

28

.99

%

,

7/15/27

..

17,030

17,168

FW2636841.UP.FTS.B

,

30

.04

%

,

7/15/27

..

24,352

–

L2638227.UP.FTS.B

,

10

.2

%

,

7/16/27

....

11,005

10,917

FW2639288.UP.FTS.B

,

14

.3

%

,

7/16/27

...

11,375

11,284

L2641778.UP.FTS.B

,

14

.87

%

,

7/16/27

....

33,350

4,571

FW2644039.UP.FTS.B

,

16

.97

%

,

7/16/27

..

6,187

6,158

L2640734.UP.FTS.B

,

17

.15

%

,

7/16/27

....

35,927

35,640

L2640760.UP.FTS.B

,

19

.65

%

,

7/16/27

....

4,252

1,177

L2631654.UP.FTS.B

,

20

.62

%

,

7/16/27

....

16,026

16,018

L2639355.UP.FTS.B

,

21

.49

%

,

7/16/27

....

2,870

2,851

L2641233.UP.FTS.B

,

22

.03

%

,

7/16/27

....

15,461

1,253

FW2644724.UP.FTS.B

,

28

.24

%

,

7/16/27

..

45,088

12,812

FW2641475.UP.FTS.B

,

30

.33

%

,

7/16/27

..

1,309

1,256

FW2641207.UP.FTS.B

,

30

.9

%

,

7/16/27

...

2,767

–

FW2642662.UP.FTS.B

,

30

.94

%

,

7/16/27

..

4,584

319

FW2641809.UP.FTS.B

,

33

.83

%

,

7/16/27

..

1,864

128

L2645113.UP.FTS.B

,

10

.21

%

,

7/17/27

....

5,716

5,673

L2645909.UP.FTS.B

,

19

.06

%

,

7/17/27

....

3,688

3,653

L2642277.UP.FTS.B

,

22

.82

%

,

7/17/27

....

4,806

4,765

FW2644628.UP.FTS.B

,

30

.88

%

,

7/24/27

..

1,341

1,350

L2631220.UP.FTS.B

,

25

.21

%

,

7/28/27

....

2,461

2,457

FW1873026.UP.FTS.B

,

30

.69

%

,

8/18/27

..

433

429

L2006623.UP.FTS.B

,

15

.18

%

,

9/09/27

....

8,385

612

L2005978.UP.FTS.B

,

17

.84

%

,

9/09/27

....

2,853

2,811

L2005478.UP.FTS.B

,

23

.62

%

,

9/09/27

....

13,732

196

L2004813.UP.FTS.B

,

23

.68

%

,

9/09/27

....

4,331

4,343

FW2007802.UP.FTS.B

,

23

.93

%

,

9/09/27

..

26,226

26,019

FW2079138.UP.FTS.B

,

24

.71

%

,

9/19/27

..

10,530

10,024

FW2077874.UP.FTS.B

,

30

.42

%

,

9/19/27

..

5,645

5,675

L2004302.UP.FTS.B

,

21

.93

%

,

9/24/27

....

2,355

2,357

FW2199121.UP.FTS.B

,

15

.58

%

,

10/07/27

.

16,137

4,099

L2199767.UP.FTS.B

,

25

.65

%

,

10/07/27

...

4,929

4,888

FW2199624.UP.FTS.B

,

25

.75

%

,

10/07/27

.

8,490

4,932

L2200600.UP.FTS.B

,

11

.71

%

,

10/08/27

...

3,298

3,273

L2202159.UP.FTS.B

,

13

.54

%

,

10/08/27

...

17,277

17,141

L2206074.UP.FTS.B

,

15

.01

%

,

10/08/27

...

6,250

1,594

FW2202576.UP.FTS.B

,

22

.89

%

,

10/08/27

.

7,058

4,112

L2203589.UP.FTS.B

,

24

.35

%

,

10/08/27

...

3,892

281

L2206615.UP.FTS.B

,

25

.87

%

,

10/08/27

...

12,966

7,632

FW2206016.UP.FTS.B

,

28

.92

%

,

10/08/27

.

820

808

FW2203404.UP.FTS.B

,

29

.65

%

,

10/08/27

.

1,500

107

FW2202975.UP.FTS.B

,

30

.2

%

,

10/08/27

..

3,173

458

FW2205386.UP.FTS.B

,

30

.87

%

,

10/08/27

.

7,770

2,229

FW2411932.UP.FTS.B

,

22

.38

%

,

11/11/27

.

4,142

4,090

L2413593.UP.FTS.B

,

23

.06

%

,

11/11/27

...

6,695

6,636

FW2410499.UP.FTS.B

,

31

.67

%

,

11/11/27

.

1,293

1,293

L2414318.UP.FTS.B

,

8

.81

%

,

11/12/27

....

11,297

2,855

FW2414721.UP.FTS.B

,

28

.43

%

,

11/12/27

.

5,162

5,152

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

109

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2415964.UP.FTS.B

,

31

.16

%

,

11/12/27

.

$

986

$

990

FW2634082.UP.FTS.B

,

24

.01

%

,

12/15/27

.

4,781

1,368

L2644100.UP.FTS.B

,

5

.16

%

,

12/16/27

....

3,300

3,275

L2638486.UP.FTS.B

,

25

.48

%

,

12/16/27

...

7,369

7,419

FW2643411.UP.FTS.B

,

29

.58

%

,

12/16/27

.

4,646

4,626

L1710242.UP.FTS.B

,

16

.42

%

,

9/14/28

....

2,238

2,238

L2008544.UP.FTS.B

,

14

.54

%

,

11/09/28

...

3,805

3,795

L1973640.UP.FTS.B

,

20

.1

%

,

11/09/28

....

8,276

8,279

L2009558.UP.FTS.B

,

26

.34

%

,

11/09/28

...

14,853

15,007

L2195991.UP.FTS.B

,

26

.01

%

,

12/07/28

...

7,568

7,640

L2197007.UP.FTS.B

,

26

.07

%

,

12/07/28

...

2,178

2,181

L2204377.UP.FTS.B

,

25

.94

%

,

12/08/28

...

3,683

3,689

L2635238.UP.FTS.B

,

13

.81

%

,

2/15/29

....

11,760

11,718

L2631621.UP.FTS.B

,

15

.64

%

,

2/15/29

....

17,154

17,128

L2633434.UP.FTS.B

,

17

.36

%

,

2/15/29

....

3,707

3,693

L2634808.UP.FTS.B

,

26

.03

%

,

2/15/29

....

1,702

1,706

L2635317.UP.FTS.B

,

27

.28

%

,

2/15/29

....

2,027

284

L2637431.UP.FTS.B

,

26

.27

%

,

7/15/29

....

6,563

6,558

L2633894.UP.FTS.B

,

26

.42

%

,

7/15/29

....

4,185

3,983

7,720,068

Total

Marketplace

Loans

(Cost

$

43,396,973

)

.....

$37,995,687

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2024

Franklin

Strategic

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

At

April

30,

2024

,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

d

). 

At

April

30,

2024

,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1

(

d

). 

At

April

30,

2024

,

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

673

$

72,305,438

6/18/24

$

(

1,835,932

)

U.S.

Treasury

10

Year

Ultra

Notes

................

Short

479

52,794,781

6/18/24

1,718,505

U.S.

Treasury

2

Year

Notes

.....................

Long

157

31,817,031

6/28/24

(

303,904

)

U.S.

Treasury

5

Year

Notes

.....................

Long

1,235

129,356,602

6/28/24

(

2,529,459

)

U.S.

Treasury

Long

Bonds

.....................

Short

210

23,900,625

6/18/24

1,154,687

U.S.

Treasury

Ultra

Bonds

......................

Long

101

12,075,812

6/18/24

(

745,033

)

Total

Futures

Contracts

......................................................................

$(2,541,136)

*

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

Euro

.............

JPHQ

Buy

765,000

820,806

5/22/24

$

—

$

(

3,648

)

Euro

.............

JPHQ

Sell

3,200,000

3,503,668

5/22/24

85,492

—

Euro

.............

JPHQ

Sell

3,200,000

3,423,802

7/22/24

—

(

3,988

)

Columbian

Peso

....

JPHQ

Sell

56,500,000,000

14,012,480

8/20/24

—

(

135,403

)

Japanese

Yen

......

JPHQ

Buy

1,002,000,000

6,792,765

10/04/24

—

(

284,747

)

Total

Forward

Exchange

Contracts

...................................................

$85,492

$(427,786)

Net

unrealized

appreciation

(depreciation)

............................................

$(342,294)

*

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

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Sell

Protection

(c)

(d)

Traded

Index

CDX.NA.HY.41

.

5.00%

Quarterly

12/20/28

22,950,000

$

1,526,883

$

(

7,681

)

$

1,534,564

Non-

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$1,526,883

$(7,681)

$1,534,564

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

111

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)

(d)

Single

Name

Carnival

Corp.

..

1.00%

Quarterly

CITI

6/20/27

11,220,000

$

(

117,828

)

$

(

1,275,293

)

$

1,157,465

BB-

Traded

Index

CDX.NA.HY.33

.

5.00%

Quarterly

CITI

12/20/24

15,800,000

560,992

(

120,169

)

681,161

Non-

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$443,164

$(1,395,462)

$1,838,626

Total

Credit

Default

Swap

Contracts

....................................

$1,970,047

$

(

1,403,143

)

$3,373,190

(a)

In

U.S.

dollars

unless

otherwise

indicated.

For

contracts

to

sell

protection,

the

notional

amount

is

equal

to

the

maximum

potential

amount

of

the

future

payments

and

no

recourse

provisions

have

been

entered

into

in

association

with

the

contracts.

(b)

Based

on

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

on

mapping

into

equivalent

ratings

from

external

vendors.

(c)

Performance

triggers

for

settlement

of

contract

include

default,

bankruptcy

or

restructuring

for

single

name

swaps,

and

failure

to

pay

or

bankruptcy

of

the

underlying

securities

for

traded

index

swaps.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

See

Note 10 regarding

other

derivative

information.

See

Abbreviations

on

page

136.

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

Franklin

Strategic

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,872,162,909

Cost

-

Non-controlled

affiliates

(Note

3f

and

11)

...................................................

17,475,027

Value

-

Unaffiliated

issuers

..................................................................

$2,668,154,542

Value

-

Non-controlled

affiliates

(Note

3f

and

11)

..................................................

17,475,027

Cash

....................................................................................

5,179,310

Receivables:

Investment

securities

sold

...................................................................

5,613,680

Capital

shares

sold

........................................................................

839,889

Dividends

and

interest

.....................................................................

27,555,936

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

260,000

TBA

transactions

........................................................................

3,391,109

Futures

contracts

........................................................................

2,536,495

Centrally

cleared

swap

contracts

............................................................

1,591,527

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

85,492

Unrealized

appreciation

on

OTC

swap

contracts

....................................................

1,838,626

Deferred

tax

benefit

.........................................................................

287,971

Total

assets

..........................................................................

2,734,809,604

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

140,563,746

Capital

shares

redeemed

...................................................................

3,395,022

Management

fees

.........................................................................

976,084

Distribution

fees

..........................................................................

480,604

Transfer

agent

fees

........................................................................

962,191

Trustees'

fees

and

expenses

.................................................................

77

Variation

margin

on

futures

contracts

...........................................................

466,071

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

124,255

OTC

swap

contracts

(upfront

receipts

$2,467,550)

..................................................

1,395,462

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

427,786

Accrued

expenses

and

other

liabilities

...........................................................

631,187

Total

liabilities

.........................................................................

149,422,485

Net

assets,

at

value

.................................................................

$2,585,387,119

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$3,801,883,311

Total

distributable

earnings

(losses)

.............................................................

(1,216,496,192)

Net

assets,

at

value

.................................................................

$2,585,387,119

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

April

30,

2024

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

113

Franklin

Strategic

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,079,060,214

Shares

outstanding

........................................................................

256,747,835

Net

asset

value

per

share

a,b

..................................................................

$8.10

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

b

................................

$8.42

Class

C:

Net

assets,

at

value

.......................................................................

$64,893,554

Shares

outstanding

........................................................................

8,004,961

Net

asset

value

and

maximum

offering

price

per

share

a,b

............................................

$8.11

Class

R:

Net

assets,

at

value

.......................................................................

$36,033,656

Shares

outstanding

........................................................................

4,471,513

Net

asset

value

and

maximum

offering

price

per

share

b

.............................................

$8.06

Class

R6:

Net

assets,

at

value

.......................................................................

$133,098,438

Shares

outstanding

........................................................................

16,406,243

Net

asset

value

and

maximum

offering

price

per

share

b

.............................................

$8.11

Advisor

Class:

Net

assets,

at

value

.......................................................................

$272,301,257

Shares

outstanding

........................................................................

33,575,400

Net

asset

value

and

maximum

offering

price

per

share

b

.............................................

$8.11

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

b

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Franklin

Strategic

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

April

30,

2024

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Franklin

Strategic

Income

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3f

and

11)

........................................................

$12,296,858

Interest:

(net

of

foreign

taxes

of

$39,868)

Unaffiliated

issuers

........................................................................

135,932,566

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

45,710

Total

investment

income

...................................................................

148,275,134

Expenses:

Management

fees

(Note

3

a

)

...................................................................

12,459,672

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

5,439,889

    Class

C

................................................................................

514,944

    Class

R

................................................................................

189,750

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

3,250,418

    Class

C

................................................................................

118,528

    Class

R

................................................................................

56,700

    Class

R6

...............................................................................

55,528

    Advisor

Class

............................................................................

429,263

Custodian

fees

(Note

4)

......................................................................

13,260

Reports

to

shareholders

fees

..................................................................

287,796

Registration

and

filing

fees

....................................................................

178,723

Professional

fees

...........................................................................

202,010

Trustees'

fees

and

expenses

..................................................................

33,047

Marketplace

lending

fees

(Note

1

f

)

..............................................................

996,399

Other

....................................................................................

406,940

Total

expenses

.........................................................................

24,632,867

Expense

reductions

(Note

4)

...............................................................

(1,863)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

..............................................

(622,792)

Net

expenses

.........................................................................

24,008,212

Net

investment

income

................................................................

124,266,922

Franklin

Strategic

Series

Financial

Statements

Statement

of

Operations

(continued)

for

the

year

ended

April

30,

2024

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

115

Franklin

Strategic

Income

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

*

Unaffiliated

issuers

......................................................................

(42,596,835)

Non-controlled

affiliates

(Note

3

f

and

11

)

......................................................

(32,078,611)

Foreign

currency

transactions

................................................................

24,725

Forward

exchange

contracts

.................................................................

(6,485,897)

Futures

contracts

.........................................................................

(4,025,188)

TBA

sale

commitments

.....................................................................

(538,390)

Swap

contracts

...........................................................................

(3,112,715)

Net

realized

gain

(loss)

..................................................................

(88,812,911)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

15,845,332

Non-controlled

affiliates

(Note

3

f

and

11

)

......................................................

28,454,505

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(2,427)

Forward

exchange

contracts

.................................................................

1,136,241

Futures

contracts

.........................................................................

(8,918,564)

Swap

contracts

...........................................................................

9,845,264

Net

change

in

unrealized

appreciation

(depreciation)

............................................

46,360,351

Net

realized

and

unrealized

gain

(loss)

............................................................

(42,452,560)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$81,814,362

*

Includes

losses

from

redemption

in-kind

(Note

13

).

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

Franklin

Strategic

Income

Fund

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$124,266,922

$131,667,390

Net

realized

gain

(loss)

.................................................

(88,812,911)

(235,838,604)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

46,360,351

111,730,544

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

81,814,362

7,559,330

Distributions

to

shareholders:

Class

A

.............................................................

(100,911,285)

(106,771,149)

Class

C

.............................................................

(3,286,225)

(5,088,448)

Class

R

.............................................................

(1,669,519)

(1,845,783)

Class

R6

............................................................

(6,651,004)

(6,146,385)

Advisor

Class

........................................................

(13,984,391)

(16,190,187)

Total

distributions

to

shareholders

..........................................

(126,502,424)

(136,041,952)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(170,995,824)

(224,634,715)

Class

C

.............................................................

(33,695,036)

(64,606,419)

Class

R

.............................................................

(4,271,750)

(5,595,004)

Class

R6

............................................................

2,246,105

1,832,985

Advisor

Class

........................................................

(33,649,591)

(64,076,114)

Total

capital

share

transactions

............................................

(240,366,096)

(357,079,267)

Net

increase

(decrease)

in

net

assets

...................................

(285,054,158)

(485,561,889)

Net

assets:

Beginning

of

year

.......................................................

2,870,441,277

3,356,003,166

End

of

year

...........................................................

$2,585,387,119

$2,870,441,277

Franklin

Strategic

Series

117

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

Franklin

Strategic

Income

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of ten

separate

funds.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

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

Franklin

Strategic

Series

Notes

to

Financial

Statements

118

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

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.

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.

Securities

Purchased

on

a

When-Issued,

Forward Commitment or

Delayed

Delivery

Basis

and

TBA

Basis

The

Fund

may

purchase

securities

on

a when-issued,

forward

commitment

or

delayed

delivery

and to-be-

announced

(TBA)

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities, it

may

sell

the

securities

before

the

settlement

date.

Collateral

has

been

pledged

and/or

received

for

open

TBA

trades.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

119

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

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.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

120

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

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.

At

April

30,

2024,

the

Fund

had

no

total

return

swap

contracts.

See

Note

10 regarding

other

derivative

information.

e.

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. The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the Statement of

Operations.

The

Fund

bears

the

market

risk

with

respect

to

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

April

30,

2024,

the

Fund

had

no

securities

on

loan.

f.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

121

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

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.

g.

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.

h.

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), or

the

Secured

Overnight

Financing

Rate

(SOFR).

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.

i.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

April

30,

2024, 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.

j.

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

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income

in

the

Statement

of

Operations.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

The

Fund

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Fund.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Marketplace

Lending

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

122

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

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.

k.

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.

l.

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.

2.

Shares

of

Beneficial

Interest

At

April

30,

2024,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

23,437,662

$190,706,248

23,791,924

$194,624,798

Shares

issued

in

reinvestment

of

distributions

..........

11,794,890

95,599,096

12,422,561

101,065,569

Shares

redeemed

...............................

(56,252,438)

(457,301,168)

(63,688,712)

(520,325,082)

Net

increase

(decrease)

..........................

(21,019,886)

$(170,995,824)

(27,474,227)

$(224,634,715)

1.

Organization

and

Significant

Accounting

Policies

(continued)

j.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

123

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the Trust are

also

officers

and/or

directors

of

the

following

subsidiaries:

Year

Ended

April

30,

2024

Year

Ended

April

30,

2023

Shares

Amount

Shares

Amount

Class

C

Shares:

Shares

sold

...................................

1,329,931

$10,821,894

1,064,169

$8,724,896

Shares

issued

in

reinvestment

of

distributions

..........

390,222

3,164,988

605,456

4,931,255

Shares

redeemed

a

..............................

(5,865,539)

(47,681,918)

(9,555,676)

(78,262,570)

Net

increase

(decrease)

..........................

(4,145,386)

$(33,695,036)

(7,886,051)

$(64,606,419)

Class

R

Shares:

Shares

sold

...................................

1,092,028

$8,854,611

728,664

$5,945,032

Shares

issued

in

reinvestment

of

distributions

..........

206,286

1,664,051

226,920

1,837,872

Shares

redeemed

...............................

(1,825,805)

(14,790,412)

(1,648,826)

(13,377,908)

Net

increase

(decrease)

..........................

(527,491)

$(4,271,750)

(693,242)

$(5,595,004)

Class

R6

Shares:

Shares

sold

...................................

3,992,186

$32,535,782

3,982,344

$32,673,110

Shares

issued

in

reinvestment

of

distributions

..........

698,322

5,671,757

632,664

5,157,406

Shares

redeemed

...............................

(4,414,945)

(35,961,434)

(4,387,632)

(35,997,531)

Net

increase

(decrease)

..........................

275,563

$2,246,105

227,376

$1,832,985

Advisor

Class

Shares:

Shares

sold

...................................

5,739,585

$46,782,268

7,495,412

$61,389,999

Shares

issued

in

reinvestment

of

distributions

..........

1,223,635

9,933,617

1,560,308

12,733,375

Shares

redeemed

...............................

(11,151,327)

(90,365,476)

(16,904,453)

(138,199,488)

Net

increase

(decrease)

..........................

(4,188,107)

$(33,649,591)

(7,848,733)

$(64,076,114)

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

124

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management fee,

calculated

daily and

paid

monthly,

to

Advisers based

on the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

April

30,

2024,

the

gross

effective

investment

management

fee

rate

was 0.459%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund's

Class

C

and

R compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

Over

$20

billion,

up

to

and

including

$35

billion

0.355%

Over

$35

billion,

up

to

and

including

$50

billion

0.350%

In

excess

of

$50

billion

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

0.65%

Class

R

....................................................................................

0.50%

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

125

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations. Effective

October

1,

2023,

the

fees

are based

on

a

fixed

margin

earned

by

Investor

Services

and

are allocated

to

the Fund

based

upon

relative

assets

and

relative

transactions.

Prior

to

October

1,

2023,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.016%

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

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated

specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

April

30,

2024,

the Fund

paid

transfer

agent

fees

as

noted

in

the

Statement of

Operations,

of

which

$1,533,905

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

April

30,

2024,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Transfer

agent

fees

on

Class

R6

shares

of

the

Fund have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

August

31,

2024.

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$42,927

CDSC

retained

..............................................................................

$13,614

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Strategic

Income

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

..................

$145,949,688

$—

$(142,011,524)

a

$(32,392,669)

$28,454,505

$—

—

$9,213,756

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

5.006%

37,364,960

75,011,870

(94,901,803)

—

—

17,475,027

17,475,027

1,694,352

Total

Affiliated

Securities

...

$183,314,648

$75,011,870

$(236,913,327)

$(32,392,669)

$28,454,505

$17,475,027

$10,908,108

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

a

Includes

in-kind

activity.

See

Note

13

.

Franklin

Strategic

Series

Notes

to

Financial

Statements

126

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

4.

Expense

Offset

Arrangement

The Fund has

previously

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

April

30,

2024,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

Effective July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2024,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2024

and

2023,

was

as

follows:

At

April

30,

2024,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income 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,

paydown

losses,

payments-in-kind,

bond

discounts

and

premiums

and

derivative

financial

instruments.

6.

Investment

Transactions

Purchases

and

sales

of

investments (excluding

short

term

securities

and

in-kind

transactions) for

the

year

ended

April

30,

2024,

aggregated

$1,875,907,555 and

$1,733,919,669,

respectively.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$164,152,877

Long

term

................................................................................

828,540,547

Total

capital

loss

carryforwards

...............................................................

$992,693,424

2024

2023

Distributions

paid

from:

Ordinary

income

..........................................................

$126,502,424

$136,041,952

Cost

of

investments

..........................................................................

$2,908,953,419

Unrealized

appreciation

........................................................................

$18,278,168

Unrealized

depreciation

........................................................................

(242,515,401)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(224,237,233)

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$1,128,298

Franklin

Strategic

Series

Notes

to

Financial

Statements

127

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

7.

Credit

Risk

and

Defaulted

Securities

At

April

30,

2024,

the

Fund

had 32.5% of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

April

30,

2024,

the

aggregate

value

of

these

securities represents less

than

0.1%

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.

Concentration

of

Risk

Certain

investments

in

Chinese

companies

are

made

through

a

special

structure

known

as

a

VIE.

In

a

VIE

structure,

foreign

investors,

such

as

the

Fund,

will

only

own

stock

in

a

shell

company

rather

than

directly

in

the

VIE,

which

must

be

owned

by

Chinese

nationals

(and/or

Chinese

companies)

to

obtain

the

licenses

and/or

assets

required

to

operate

in

a

restricted

or

prohibited

sector

in

China.

The

value

of

the

shell

company

is

derived

from

its

ability

to

consolidate

the

VIE

into

its

financials

pursuant

to

contractual

arrangements

that

allow

the

shell

company

to

exert

a

degree

of

control

over,

and

obtain

economic

benefits

arising

from,

the

VIE

without

formal

legal

ownership.

While

VIEs

are

a

longstanding

industry

practice

and

are

well

known

by

Chinese

officials

and

regulators,

the

structure

historically

has

not

been

formally

recognized

under

Chinese

law

and

it

is

uncertain

whether

Chinese

officials

or

regulators

will

withdraw

their

implicit

acceptance

of

the

structure.

It

is

also

uncertain

whether

the

contractual

arrangements,

which

may

be

subject

to

conflicts

of

interest

between

the

legal

owners

of

the

VIE

and

foreign

investors,

would

be

enforced

by

Chinese

courts

or

arbitration

bodies.

Prohibitions

of

these

structures

by

the

Chinese

government,

or

the

inability

to

enforce

such

contracts,

from

which

the

shell

company

derives

its

value,

would

likely

cause

the

VIE-structured

holding(s)

to

suffer

significant,

detrimental,

and

possibly

permanent

losses,

and

in

turn,

adversely

affect

the

Fund’s

returns

and

net

asset

value.

9.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

April

30,

2024,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Principal

Amount

*

/

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Strategic

Income

Fund

125,940,079

a

K2016470219

South

Africa

Ltd.,

A

...............

2/08/13

-

2/01/17

$

977,123

$

—

12,532,821

a

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

9,307

—

271,085

Talos

Energy,

Inc.

............................

3/04/24

3,591,876

3,537,988

6,000,000

WorkCapital

BSD

SARL,

2/13/26

................

2/15/19

750,000

—

20,000,000

WorkCapital

BSD

SARL,

Term

Loan,

6.5%,

1/01/38

..

2/13/19

19,530,078

—

Total

Restricted

Securities

(Value

is

0.1%

of

Net

Assets)

..............

$24,858,384

$3,537,988

Franklin

Strategic

Series

Notes

to

Financial

Statements

128

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

10.

Other

Derivative

Information

At

April

30,

2024,

investments

in

derivative

contracts

are

reflected

in

the Statement of

Assets

and

Liabilities

as

follows:

For

the

year

ended

April

30,

2024,

the

effect

of

derivative

contracts

in

the Statement

of

Operations

was

as

follows:

*

In

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$—

as

of

April

30,

2024.

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

$

2,873,192

a

Variation

margin

on

futures

contracts

$

5,414,328

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

85,492

Unrealized

depreciation

on

OTC

forward

exchange

contracts

427,786

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

1,534,564

b

Variation

margin

on

centrally

cleared

swap

contracts

—

OTC

swap

contracts

(upfront

payments)

—

OTC

swap

contracts

(upfront

receipts)

1,395,462

Unrealized

appreciation

on

OTC

swap

contracts

1,838,626

Unrealized

depreciation

on

OTC

swap

contracts

—

Total

....................

$6,331,874

$7,237,576

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

b

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

swap

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Strategic

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

$(4,025,188)

Futures

contracts

$(8,918,564)

Foreign

exchange

contracts

.....

Forward

exchange

contracts

(6,485,897)

Forward

exchange

contracts

1,136,241

Credit

contracts

...............

Swap

contracts

(3,112,715)

Swap

contracts

9,845,264

Total

.......................

$(13,623,800)

$2,062,941

9.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

129

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

For

the

year

ended

April

30,

2024,

the

average

month

end

notional

amount

of

futures

contracts

and

swap

contracts

represented

$379,557,305

and

$116,060,504,

respectively. The

average

month

end

contract

value

of

forward

exchange

contracts

was

$39,304,725.

At

April

30,

2024,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

At

April

30,

2024,

OTC

derivative

assets,

which

may

be

offset

against

the

Fund's

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Strategic

Income

Fund

Forward

Exchange

Contracts

.............................

$

85,492

$

427,786

Swap

Contracts

.......................................

1,838,626

1,395,462

Total

.............................................

$1,924,118

$1,823,248

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

a

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

CITI

.....................

$1,838,626

$(1,395,462)

$—

$(370,000)

$73,164

JPHQ

...................

85,492

(85,492)

—

—

—

Total

...................

$1,924,118

$(1,480,954)

$

—

$(370,000)

$73,164

$

1

10.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

130

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

At

April

30,

2024,

OTC

derivative

liabilities,

which

may

be

offset

against

the

Fund's

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(d) regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

136

.

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2024,

investments

in

“affiliated

companies”

were

as

follows:

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

a

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

CITI

.....................

$1,395,462

$(1,395,462)

$—

$—

$—

JPHQ

...................

427,786

(85,492)

—

(342,294)

—

Total

...................

$1,823,248

$(1,480,954)

$—

$(342,294)

$—

a

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.

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Strategic

Income

Fund

Non-Controlled

Affiliates

Dividends

Birch

Permian

Holdings,

Inc.

............

$

6,731,505

$

—

$

(3,862,970)

$

314,058

$

—

a

$

—

a

—

a

$

1,388,750

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

..........

$6,731,505

$—

$(3,862,970)

$314,058

$—

$—

$1,388,750

a

As

of

April

30,

2024,

no

longer

an

affiliate.

10.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

131

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

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

January

31,

2025.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

April

30,

2024,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Redemption

In-Kind

During

the

year ended

April

30,

2024,

the

Fund

realized

$20,660,421

of

net

losses

resulting

from

in-kind

transactions

in

which

the

Fund

redeemed

shares

of

the

Franklin

Floating

Rate

Income

Fund,

a

series

of Franklin Floating

Rate

Master

Trust,

for

securities

held by

the

underlying

fund

rather

than

for

cash.

14.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

April

30,

2024,

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

:

Broadline

Retail

.......................

$

—

$

—

$

—

a

$

—

Hotels,

Restaurants

&

Leisure

.............

—

8,274

—

8,274

Machinery

............................

—

864,582

—

864,582

Oil,

Gas

&

Consumable

Fuels

.............

37,333

388,179

3,537,988

3,963,500

Preferred

Stocks

.........................

—

1,610

—

1,610

Warrants

...............................

—

—

268

a

268

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

11,962,852

—

11,962,852

Air

Freight

&

Logistics

...................

—

3,169,635

—

3,169,635

Automobile

Components

.................

—

33,880,841

—

33,880,841

Automobiles

..........................

—

7,871,565

—

7,871,565

Franklin

Strategic

Series

Notes

to

Financial

Statements

132

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Banks

...............................

$

—

$

161,051,946

$

—

$

161,051,946

Beverages

...........................

—

8,223,190

—

8,223,190

Biotechnology

.........................

—

11,699,675

—

11,699,675

Broadline

Retail

.......................

—

—

—

a

—

Building

Products

......................

—

26,170,959

—

26,170,959

Capital

Markets

........................

—

78,619,739

—

78,619,739

Chemicals

...........................

—

42,189,634

—

42,189,634

Commercial

Services

&

Supplies

...........

—

30,499,317

—

30,499,317

Communications

Equipment

..............

—

4,366,118

—

4,366,118

Construction

&

Engineering

...............

—

5,103,887

—

5,103,887

Construction

Materials

..................

—

7,277,473

—

7,277,473

Consumer

Finance

.....................

—

26,176,980

—

26,176,980

Consumer

Staples

Distribution

&

Retail

......

—

12,707,679

—

12,707,679

Containers

&

Packaging

.................

—

40,456,060

—

40,456,060

Distributors

...........................

—

4,319,662

—

4,319,662

Diversified

Consumer

Services

............

—

10,762,932

—

10,762,932

Diversified

REITs

......................

—

13,510,025

—

13,510,025

Diversified

Telecommunication

Services

.....

—

35,662,782

—

35,662,782

Electric

Utilities

........................

—

62,808,089

—

62,808,089

Electrical

Equipment

....................

—

9,627,525

—

9,627,525

Electronic

Equipment,

Instruments

&

Components

........................

—

11,199,981

—

11,199,981

Energy

Equipment

&

Services

.............

—

5,040,332

—

5,040,332

Entertainment

.........................

—

5,374,123

—

5,374,123

Financial

Services

......................

—

27,821,972

—

a

27,821,972

Food

Products

........................

—

18,228,389

—

18,228,389

Gas

Utilities

..........................

—

1,784,772

—

1,784,772

Ground

Transportation

..................

—

14,315,789

—

14,315,789

Health

Care

Equipment

&

Supplies

.........

—

26,849,903

—

26,849,903

Health

Care

Providers

&

Services

..........

—

67,304,219

—

67,304,219

Health

Care

REITs

.....................

—

5,143,244

—

5,143,244

Health

Care

Technology

.................

—

7,241,666

—

7,241,666

Hotel

&

Resort

REITs

...................

—

10,357,314

—

10,357,314

Hotels,

Restaurants

&

Leisure

.............

—

50,986,451

—

50,986,451

Household

Durables

....................

—

11,752,393

—

11,752,393

Household

Products

....................

—

8,545,916

—

8,545,916

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

30,808,719

—

30,808,719

Insurance

............................

—

52,997,063

—

52,997,063

Interactive

Media

&

Services

..............

—

7,647,700

—

7,647,700

IT

Services

...........................

—

29,140,015

—

29,140,015

Life

Sciences

Tools

&

Services

............

—

3,938,896

—

3,938,896

Machinery

............................

—

14,048,038

—

14,048,038

Media

...............................

—

57,873,171

—

57,873,171

Metals

&

Mining

.......................

—

28,247,313

—

28,247,313

Mortgage

Real

Estate

Investment

Trusts

(REITs)

............................

—

8,932,679

—

8,932,679

Multi-Utilities

..........................

—

15,377,124

—

15,377,124

Office

REITs

..........................

—

2,070,093

—

2,070,093

Oil,

Gas

&

Consumable

Fuels

.............

—

162,074,848

—

162,074,848

Paper

&

Forest

Products

.................

—

9,668,743

—

9,668,743

Passenger

Airlines

.....................

—

14,895,507

—

14,895,507

Personal

Care

Products

.................

—

25,247,072

—

25,247,072

Pharmaceuticals

.......................

—

36,227,651

—

36,227,651

14.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

133

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

April

30,

2024,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Real

Estate

Management

&

Development

....

$

—

$

3,999,599

$

—

$

3,999,599

Software

.............................

—

7,417,724

—

7,417,724

Specialized

REITs

......................

—

8,253,972

—

8,253,972

Specialty

Retail

........................

—

4,917,990

—

4,917,990

Technology

Hardware,

Storage

&

Peripherals

.

—

9,309,741

—

9,309,741

Textiles,

Apparel

&

Luxury

Goods

..........

—

17,188,809

—

17,188,809

Tobacco

.............................

—

22,826,239

—

22,826,239

Trading

Companies

&

Distributors

..........

—

30,768,953

—

30,768,953

Transportation

Infrastructure

..............

—

678,059

—

678,059

Wireless

Telecommunication

Services

.......

—

16,067,909

—

16,067,909

Senior

Floating

Rate

Interests

...............

—

67,480,766

—

a

67,480,766

Marketplace

Loans

.......................

—

—

37,995,687

37,995,687

Foreign

Government

and

Agency

Securities

....

—

56,964,323

—

56,964,323

U.S.

Government

and

Agency

Securities

.......

—

462,730,270

—

462,730,270

Asset-Backed

Securities

...................

—

96,203,754

—

96,203,754

Commercial

Mortgage-Backed

Securities

......

—

14,423,879

—

14,423,879

Mortgage-Backed

Securities

................

—

317,103,781

—

317,103,781

Residential

Mortgage-Backed

Securities

.......

—

69,380,192

—

69,380,192

Escrows

and

Litigation

Trusts

...............

—

345,000

—

a

345,000

Short

Term

Investments

...................

17,475,027

—

—

17,475,027

Total

Investments

in

Securities

...........

$17,512,360

$2,626,583,266

$41,533,943

$2,685,629,569

Other

Financial

Instruments:

Forward

Exchange

Contracts

...............

$—

$85,492

$—

$85,492

Futures

Contracts

.......................

2,873,192

—

—

2,873,192

Swap

Contracts

.........................

—

3,373,190

—

3,373,190

Total

Other

Financial

Instruments

.........

$2,873,192

$3,458,682

$—

$6,331,874

Liabilities:

Other

Financial

Instruments:

Forward

Exchange

Contracts

...............

$—

$427,786

$—

$427,786

Futures

Contracts

........................

5,414,328

—

—

5,414,328

Total

Other

Financial

Instruments

.........

$5,414,328

$427,786

$—

$5,842,114

a

Includes

financial

instruments

determined

to

have

no

value.

14.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

134

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

April

30,

2024,

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Broadline

Retail

.....

$

—

c

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

c

$

—

Oil,

Gas

&

Consumable

Fuels

..........

—

3,591,876

—

—

—

—

—

(53,888)

3,537,988

(53,888)

Warrants

:

Machinery

.........

—

1,272

—

—

—

—

—

(1,004)

268

(1,004)

Oil,

Gas

&

Consumable

Fuels

..........

—

c

—

—

—

—

—

—

—

—

c

—

Software

..........

—

c

—

—

—

—

—

—

—

—

c

—

Corporate

Bonds

:

Broadline

Retail

.....

—

c

—

—

—

—

—

—

—

—

c

—

Financial

Services

...

1,421,613

—

(1,294,615)

—

—

(1,656)

(228,563)

103,221

—

c

(1,285,353)

Senior

Floating

Rate

Interests

:

Software

..........

—

c

—

—

—

—

—

—

—

—

c

—

Marketplace

Loans

:

Financial

Services

...

54,177,465

16,074,036

(31,961,806)

—

—

—

(837,725)

543,717

37,995,687

(1,398,313)

Escrows

and

Litigation

Trusts

...........

—

c

—

—

—

—

—

—

—

—

c

—

Total

Investments

in

Securities

............

$55,599,078

$19,667,184

$(33,256,421)

$—

$—

$(1,656)

$(1,066,288)

$592,046

$41,533,943

$(2,738,558)

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.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Marketplace

Loans:

Financial

Services

$37,995,687

Discounted

cash

flow

Loss-adjusted

discount

rate

2.0%

–

19.0%

(9.7%)

Decrease

Projected

loss

rate

3.9%

–

83.4%

(16.8%)

Decrease

All

Other

Investments

.

.

.

.

.

.

.

3,538,256

c,d

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$41,533,943

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

14.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

135

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

15.

New

Accounting

Pronouncements

In

March

2020,

the 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

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

LIBOR and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2024.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

16.

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.

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

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

c

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

d

Includes

financial

instruments

determined

to

have

no

value.

14.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

136

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Abbreviations

Counterparty

CITI

Citibank

NA

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

BRL

Brazilian

Real

COP

Colombian

Peso

EUR

Euro

USD

United

States

Dollar

Index

CDX.NA.HY.

Series

number

CDX

North

America

High

Yield

Index

Selected

Portfolio

BZDIOVRA

Brazil

Inter-Bank

Deposit

Rate

CLO

Collateralized

Loan

Obligation

CME

Chicago

Mercantile

Exchange

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

FFCB

Federal

Farm

Credit

Banks

Funding

Corp.

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Interbank

Offered

Rate

MBS

Mortgage-Backed

Security

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

STACR

Structured

Agency

Credit

Risk

TBA

To-Be-Announced

T-Note

Treasury

Note

Franklin

Strategic

Series

137

franklintempleton.com

Annual

Report

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Strategic

Income

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Strategic

Income

Fund

(one

of

the

funds

constituting

Franklin

Strategic

Series,

referred

to

hereafter

as

the

"Fund")

as

of

April

30,

2024,

the

related

statement

of

operations

for

the

year

ended

April

30,

2024,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

April

30,

2024,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2024

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2024

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2024

by

correspondence

with

the

custodian,

transfer

agent,

brokers

and

agent

banks;

when

replies

were

not

received

from

brokers

or

agent

banks,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

June

20,

2024

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

138

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2024:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$1,388,750

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$1,388,750

Section

163(j)

Interest

Earned

§163(j)

$118,740,152

Interest

Earned

from

Federal

Obligations

Note

(1)

$22,997,506

Franklin

Strategic

Series

Board

Members

and

Officers

139

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

117

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

117

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

117

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

140

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

117

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-2023),

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

117

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

The

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

117

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

141

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

107

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016)

and

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Gregory

E.

Johnson

2

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

2023

and

Trustee

since

2013

126

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

Rupert

H.

Johnson,

Jr.

3

(1940)

Trustee

Since

1991

117

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Franklin

Templeton

Fund

Adviser,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006-2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005-2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

142

franklintempleton.com

Annual

Report

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

1.

Information

is

for

the

calendar

year

ended

December

31,

2023,

unless

otherwise

noted.

We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

2.

Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

3.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

a

major

shareholder

of

Resources,

which

is

the

parent

company

of

the

Fund's

investment

manager

and

distributor.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

1

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

Franklin

Distributors,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Christopher

Kings

(1974)

Chief

Executive

Officer

–

Finance

and

Administration

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

and

officer

of

certain

funds

in

the

Franklin

Templeton

fund

complex.

Jeffrey

W.

White

(1971)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

January

2024

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Financial

Officer,

Chief

Accounting

Officer

&

Treasurer

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Director

and

Assistant

Treasurer

within

Franklin

Templeton

Global

Fund

Tax

and

Fund

Administration

and

Financial

Reporting

(2017-2023).

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

143

franklintempleton.com

Annual

Report

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

144

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

STRATEGIC

SERIES

Franklin

Strategic

Income

Fund

(Fund)

At

an

in-person

meeting

held

on

April

16,

2024

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters,

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined,

through

the

exercise

of

its

business

judgment,

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

the

ongoing

integration

of

the

Putnam

family

of

funds

into

the

FT

family

of

funds

and

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

continued

reassessment

of

the

fund

offerings

in

response

to

FT

acquisitions

and

the

market

environment,

as

well

as

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement,

including

its

initiative

to

create

a

new

enterprise-wide

artificial

intelligence

platform.

Franklin

Strategic

Series

Shareholder

Information

145

franklintempleton.com

Annual

Report

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

December

31,

2023.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-sector

income

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

The

Board

also

noted

that

the

Fund’s

annualized

income

return

was

positive

for

all

reporting

periods.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

each

other

fund

in

its

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

13

other

multi-sector

income

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

its

Expense

Group

with

the

Management

Rate

in

the

first

quintile

(least

expensive).

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2023,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

an

independent

registered

public

accounting

firm

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

Franklin

Strategic

Series

Shareholder

Information

146

franklintempleton.com

Annual

Report

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Fund

had

experienced

a

significant

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

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)

Franklin

Strategic

Series

Shareholder

Information

147

franklintempleton.com

Annual

Report

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.

Franklin

Strategic

Series

GOF-SA6

05/24

149

franklintempleton.com

Annual

Report

FRANKLIN

STRATEGIC

SERIES

FRANKLIN

TEMPLETON

VARIABLE

INSURANCE

PRODUCTS

TRUST

SUPPLEMENT

DATED

MAY

31,

2024

TO

THE

STATEMENT

OF

ADDITIONAL

INFORMATION

(“SAI”),

OF

EACH

FUND

LISTED

IN

SCHEDULE

A

Effective

May

31,

2024,

the

funds

listed

in

Schedule

A

may

invest

in

business

development

companies

(BDCs)

and

the

following

is

added

to

the

section

titled

“Glossary

of

Investments,

Techniques,

Strategies

and

Their

Risks”

as

it

pertains

to

the

funds:

Business

development

companies

(BDCs).

BDCs

are

a

less

common

type

of

closed-end

fund

regulated

under

the

1940

Act.

BDCs

more

closely

resemble

operating

companies

than

closed-end

investment

companies

and

may

use

leverage.

BDCs

typically

invest

in

small,

developing,

financially

troubled,

private

companies

or

other

companies

that

may

have

value

that

can

be

realized

over

time,

often

with

managerial

assistance.

BDCs

realize

operating

income

when

their

investments

are

sold

off,

and

therefore

maintain

complex

organizational,

operational,

tax

and

compliance

requirements.

Additionally,

a

BDC’s

expenses

are

not

direct

expenses

paid

by

Fund

shareholders

and

are

not

used

to

calculate

a

fund’s

net

asset

value.

SEC

rules

nevertheless

require

that

any

expenses

incurred

by

a

BDC

be

included

in

a

fund’s

expense

ratio

as

“Acquired

Fund

Fees

and

Expenses.”

The

expense

ratio

of

a

fund

that

holds

a

BDC

will

thus

overstate

what

the

fund

actually

spends

on

portfolio

management,

administrative

services,

and

other

shareholder

services

by

an

amount

equal

to

these

Acquired

Fund

Fees

and

Expenses.

Shareholders

would

also

be

exposed

to

the

risks

associated

not

only

with

the

investments

of

the

fund

but

also

with

the

portfolio

investments

of

the

underlying

investment

companies.

SCHEDULE

A

Please

retain

this

supplement

for

future

reference.

Fund

Date

of

SAI

FRANKLIN

STRATEGIC

SERIES

Franklin

Strategic

Income

Fund

........................................................

September

1,

2023

FRANKLIN

TEMPLETON

VARIABLE

INSURANCE

PRODUCTS

TRUST

Franklin

Strategic

Income

VIP

Fund

.....................................................

May

1,

2024

194

A

06/24

©

2024

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $399,408 for the fiscal year ended April 30, 2024 and $359,100 for the fiscal year ended April 30, 2023.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended April 30, 2024 and $7,000 for the fiscal year ended April 30, 2023. The services for which these fees were paid included preparation of tax returns in relation to the liquidation of previously consolidated entities.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $140,000 for the fiscal year ended April 30, 2024, and $70,000 for the fiscal year ended April 30, 2023. The services for which these fees were paid included global access to tax platform International Tax View. 

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4
were $0 for the fiscal year ended April 30, 2024 and $6,958 for the fiscal year ended April 30, 2023.
The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $158,426 for the fiscal year ended April 30, 2024 and $75,711 for the fiscal year ended April 30, 2023. The services for which these fees were paid included professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge, fees in connection with a license for accounting and business knowledge platform Viewpoint, professional fees relating to security counts  and professional fees in connection with SOC 1 Reports.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

        (i)     pre-approval of all audit and audit related services;

        (ii)    pre-approval of all non-audit related services to be provided to the Fund by the auditors;

        (iii)   pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

        (iv)    establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $298,426 for the fiscal year ended April 30, 2024 and $159,669 for the fiscal year ended April 30, 2023.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) 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. Recovery of Erroneously Awarded Compensation.

(a) N/A

(b) N/A

Item 14. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, 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 Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, 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\CHRISTOPHER KINGS _________________

Christopher Kings

      Chief Executive Officer - Finance and Administration

Date  June 27, 2024

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\CHRISTOPHER KINGS _________________

Christopher Kings

      Chief Executive Officer - Finance and Administration

Date  June 27, 2024

By S\JEFFREY WHITE______________________

      Jeffrey White

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  June 27, 2024