Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

FSS4-Q3PH

1

Schedules

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

2

Franklin

Templeton

SMACS:

Series

CP

11

Notes

to

Schedules

of

Investments

23

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

September

30,

2025

Franklin

Templeton

SMACS:

Series

C

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

2

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

33.9%

Aerospace

&

Defense

1.3%

Boeing

Co.

(The)

,

Senior

Bond,

2.95%,

2/01/30

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

$

8,000

$

7,535

Senior

Bond,

6.125%,

2/15/33

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

11,000

11,863

Senior

Bond,

6.875%,

3/15/39

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

10,000

11,332

Senior

Bond,

3.375%,

6/15/46

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

12,000

8,558

Senior

Bond,

3.9%,

5/01/49

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

11,000

8,321

Senior

Bond,

6.858%,

5/01/54

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

7,000

7,990

Senior

Note,

2.196%,

2/04/26

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

20,000

19,851

Howmet

Aerospace,

Inc.

,

Senior

Bond,

6.75%,

1/15/28

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

8,000

8,467

Senior

Bond,

5.95%,

2/01/37

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

11,000

11,919

Senior

Note,

3%,

1/15/29

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

8,000

7,721

103,557

Automobiles

0.5%

a

Hyundai

Capital

America

,

Senior

Note

,

144A,

6.5

%

,

1/16/29

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

38,000

40,294

Banks

3.8%

Bank

of

America

Corp.

,

Senior

Bond,

5.468%

to

1/22/34,

FRN

thereafter,

1/23/35

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

8,000

8,359

Senior

Note,

2.551%

to

2/03/27,

FRN

thereafter,

2/04/28

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

12,000

11,754

Sub.

Bond,

5.425%

to

8/14/34,

FRN

thereafter,

8/15/35

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

15,000

15,307

Sub.

Bond,

3.846%

to

3/07/32,

FRN

thereafter,

3/08/37

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

35,000

32,712

Citigroup,

Inc.

,

Sub.

Bond,

4.45%,

9/29/27

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

31,000

31,134

Sub.

Bond,

6.174%

to

5/24/33,

FRN

thereafter,

5/25/34

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

8,000

8,515

Fifth

Third

Bancorp

,

Senior

Note

,

6.339%

to

7/26/28,

FRN

thereafter

,

7/27/29

......

11,000

11,593

JPMorgan

Chase

&

Co.

,

b

KK,

Junior

Sub.

Bond,

3.65%

to

5/31/26,

FRN

thereafter,

Perpetual

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

7,000

6,932

Senior

Bond,

3.782%

to

1/31/27,

FRN

thereafter,

2/01/28

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

31,000

30,869

Senior

Bond,

5.502%

to

1/23/35,

FRN

thereafter,

1/24/36

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

8,000

8,374

Sub.

Bond,

5.717%

to

9/13/32,

FRN

thereafter,

9/14/33

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

16,000

16,927

PNC

Financial

Services

Group,

Inc.

(The)

,

Sub.

Bond

,

4.626%

to

6/05/32,

FRN

thereafter

,

6/06/33

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

28,000

27,800

Royal

Bank

of

Canada

,

Senior

Note

,

5.2

%

,

8/01/28

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

20,000

20,631

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.108

%

,

6/08/27

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

20,000

20,038

US

Bancorp

,

Sub.

Bond

,

2.491%

to

11/02/31,

FRN

thereafter

,

11/03/36

...........

14,000

12,073

Wells

Fargo

&

Co.

,

b

BB,

Junior

Sub.

Bond,

3.9%

to

3/14/26,

FRN

thereafter,

Perpetual

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

12,000

11,898

Senior

Bond,

2.879%

to

10/29/29,

FRN

thereafter,

10/30/30

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

43,000

40,722

315,638

Biotechnology

0.8%

AbbVie,

Inc.

,

Senior

Bond

,

5.05

%

,

3/15/34

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

40,000

41,175

Amgen,

Inc.

,

Senior

Bond,

5.65%,

3/02/53

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

7,000

6,987

Senior

Note,

5.25%,

3/02/30

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

8,000

8,294

a

CSL

Finance

plc

,

Senior

Bond

,

144A,

4.625

%

,

4/27/42

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

14,000

12,779

69,235

Capital

Markets

2.3%

Ares

Capital

Corp.

,

Senior

Note,

3.875%,

1/15/26

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

8,000

7,987

Senior

Note,

7%,

1/15/27

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

8,000

8,237

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

3

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Capital

Markets

(continued)

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

4.223%

to

4/30/28,

FRN

thereafter

,

5/01/29

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

$

20,000

$

20,028

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

1.85

%

,

9/15/32

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

29,000

24,540

Jefferies

Financial

Group,

Inc.

,

Senior

Note

,

6.2

%

,

4/14/34

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

8,000

8,509

a

KKR

Group

Finance

Co.

VI

LLC

,

Senior

Bond

,

144A,

3.75

%

,

7/01/29

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

12,000

11,792

LPL

Holdings,

Inc.

,

Senior

Note

,

5.2

%

,

3/15/30

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

20,000

20,450

Morgan

Stanley

,

Senior

Note,

5.123%

to

1/31/28,

FRN

thereafter,

2/01/29

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

20,000

20,433

Senior

Note,

5.23%

to

1/14/30,

FRN

thereafter,

1/15/31

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

16,000

16,517

Sub.

Bond,

5.942%

to

2/06/34,

FRN

thereafter,

2/07/39

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

8,000

8,379

a

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.625

%

,

9/01/30

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

22,000

21,007

S&P

Global,

Inc.

,

Senior

Bond

,

2.5

%

,

12/01/29

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

22,000

20,654

188,533

Chemicals

0.1%

FMC

Corp.

,

Senior

Bond

,

3.45

%

,

10/01/29

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

13,000

12,282

Commercial

Services

&

Supplies

0.6%

Republic

Services,

Inc.

,

Senior

Note

,

5

%

,

11/15/29

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

20,000

20,660

Waste

Connections,

Inc.

,

Senior

Bond,

4.25%,

12/01/28

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

8,000

8,053

Senior

Bond,

5%,

3/01/34

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

16,000

16,346

Waste

Management,

Inc.

,

Senior

Note

,

4.875

%

,

2/15/29

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

8,000

8,218

53,277

Communications

Equipment

0.6%

Cisco

Systems,

Inc.

,

Senior

Bond

,

5.05

%

,

2/26/34

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

20,000

20,696

Motorola

Solutions,

Inc.

,

Senior

Bond,

2.3%,

11/15/30

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

7,000

6,329

Senior

Note,

4.85%,

8/15/30

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

8,000

8,156

Senior

Note,

5.2%,

8/15/32

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

11,000

11,342

46,523

Consumer

Finance

0.9%

Ally

Financial,

Inc.

,

Senior

Bond

,

8

%

,

11/01/31

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

11,000

12,545

Capital

One

Financial

Corp.

,

Senior

Note

,

7.624%

to

10/29/30,

FRN

thereafter

,

10/30/31

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

18,000

20,363

General

Motors

Financial

Co.,

Inc.

,

Senior

Note

,

4.9

%

,

10/06/29

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

16,000

16,190

a

Macquarie

Airfinance

Holdings

Ltd.

,

Senior

Note

,

144A,

5.15

%

,

3/17/30

...........

24,000

24,345

73,443

Consumer

Staples

Distribution

&

Retail

0.3%

a

7-Eleven,

Inc.

,

Senior

Bond,

144A,

1.8%,

2/10/31

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

2,000

1,739

Senior

Note,

144A,

1.3%,

2/10/28

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

11,000

10,288

a

Alimentation

Couche-Tard,

Inc.

,

Senior

Bond

,

144A,

2.95

%

,

1/25/30

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

13,000

12,284

24,311

Containers

&

Packaging

0.3%

Berry

Global,

Inc.

,

Senior

Secured

Note

,

1.65

%

,

1/15/27

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

11,000

10,660

WestRock

MWV

LLC

,

Senior

Bond

,

7.95

%

,

2/15/31

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

12,000

13,879

24,539

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

4

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

REITs

0.5%

GLP

Capital

LP

/

GLP

Financing

II,

Inc.

,

Senior

Bond

,

3.25

%

,

1/15/32

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

$

12,000

$

10,806

VICI

Properties

LP

,

Senior

Bond

,

5.75

%

,

4/01/34

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

8,000

8,317

a

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

2/15/29

......

21,000

20,516

39,639

Diversified

Telecommunication

Services

1.1%

AT&T,

Inc.

,

Senior

Bond,

2.25%,

2/01/32

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

11,000

9,633

Senior

Bond,

2.55%,

12/01/33

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

16,000

13,631

Senior

Bond,

4.75%,

5/15/46

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

7,000

6,255

Sprint

Capital

Corp.

,

Senior

Bond

,

6.875

%

,

11/15/28

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

45,000

48,413

Verizon

Communications,

Inc.

,

Senior

Note

,

2.355

%

,

3/15/32

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

14,000

12,281

90,213

Electric

Utilities

3.4%

a

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65

%

,

1/15/32

........

23,000

20,647

Appalachian

Power

Co.

,

L

,

Senior

Bond

,

5.8

%

,

10/01/35

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

12,000

12,415

Commonwealth

Edison

Co.

,

Senior

Bond

,

5.875

%

,

2/01/33

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

8,000

8,580

Duke

Energy

Carolinas

LLC

,

Senior

Bond

,

4.25

%

,

12/15/41

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

8,000

7,088

Duke

Energy

Corp.

,

Senior

Bond,

5.45%,

6/15/34

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

12,000

12,490

Senior

Note,

4.85%,

1/05/29

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

8,000

8,156

Exelon

Corp.

,

Senior

Bond,

5.625%,

6/15/35

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

12,000

12,531

Senior

Note,

5.15%,

3/15/29

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

12,000

12,349

Georgia

Power

Co.

,

Senior

Bond

,

5.25

%

,

3/15/34

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

40,000

41,281

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Bond,

5.9%,

3/15/55

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

8,000

8,254

Senior

Note,

5.3%,

3/15/32

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

20,000

20,783

a

NRG

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

2.45

%

,

12/02/27

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

21,000

20,136

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

5.9%,

6/15/32

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

8,000

8,369

Senior

Bond,

6.75%,

1/15/53

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

4,000

4,313

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

5.05

%

,

8/15/34

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

31,000

31,443

a

Vistra

Operations

Co.

LLC

,

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

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

12,000

11,913

Senior

Secured

Bond,

144A,

6.95%,

10/15/33

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

11,000

12,277

Xcel

Energy,

Inc.

,

Senior

Bond

,

5.6

%

,

4/15/35

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

24,000

24,899

277,924

Entertainment

0.1%

Netflix,

Inc.

,

Senior

Bond

,

5.4

%

,

8/15/54

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

8,000

8,063

Financial

Services

0.3%

Corebridge

Financial,

Inc.

,

Senior

Note

,

3.85

%

,

4/05/29

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

21,000

20,689

Food

Products

1.4%

a

JBS

USA

LUX

SARL

/

JBS

USA

Food

Co.

/

JBS

USA

Foods

Group,

Inc.

,

Senior

Bond

,

144A,

5.95

%

,

4/20/35

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

14,000

14,721

Kellanova

,

Senior

Bond,

2.1%,

6/01/30

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

22,000

19,954

Senior

Bond,

4.5%,

4/01/46

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

19,000

16,665

Senior

Bond,

5.75%,

5/16/54

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

8,000

8,103

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

5

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Food

Products

(continued)

Kellanova,

(continued)

B,

Senior

Bond,

7.45%,

4/01/31

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

$

8,000

$

9,170

a

Mars,

Inc.

,

Senior

Note

,

144A,

5.2

%

,

3/01/35

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

16,000

16,363

Pilgrim's

Pride

Corp.

,

Senior

Bond,

6.25%,

7/01/33

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

19,000

20,305

Senior

Note,

3.5%,

3/01/32

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

8,000

7,329

112,610

Ground

Transportation

0.1%

a

Penske

Truck

Leasing

Co.

LP

/

PTL

Finance

Corp.

,

Senior

Note

,

144A,

4.4

%

,

7/01/27

12,000

12,034

Health

Care

Providers

&

Services

1.2%

Centene

Corp.

,

Senior

Note

,

2.625

%

,

8/01/31

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

12,000

10,316

CVS

Health

Corp.

,

Senior

Bond

,

4.78

%

,

3/25/38

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

22,000

20,629

HCA,

Inc.

,

Senior

Note

,

3.625

%

,

3/15/32

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

33,000

30,968

UnitedHealth

Group,

Inc.

,

Senior

Bond,

5.8%,

3/15/36

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

12,000

12,858

Senior

Note,

5.3%,

2/15/30

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

8,000

8,330

Universal

Health

Services,

Inc.

,

Senior

Secured

Note

,

4.625

%

,

10/15/29

..........

12,000

11,992

95,093

Hotels,

Restaurants

&

Leisure

0.6%

a

Carnival

Corp.

,

Senior

Secured

Note

,

144A,

4

%

,

8/01/28

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

21,000

20,713

Hyatt

Hotels

Corp.

,

Senior

Note

,

5.25

%

,

6/30/29

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

28,000

28,728

49,441

Household

Durables

0.4%

DR

Horton,

Inc.

,

Senior

Bond,

5%,

10/15/34

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

9,000

9,107

Senior

Bond,

5.5%,

10/15/35

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

14,000

14,525

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

4.35

%

,

2/15/28

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

12,000

12,038

35,670

Independent

Power

and

Renewable

Electricity

Producers

0.5%

Constellation

Energy

Generation

LLC

,

Senior

Bond,

6.125%,

1/15/34

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

8,000

8,712

Senior

Bond,

6.5%,

10/01/53

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

11,000

12,272

Senior

Note,

5.6%,

3/01/28

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

16,000

16,541

37,525

Industrial

REITs

0.1%

Prologis

LP

,

Senior

Bond

,

5

%

,

3/15/34

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

12,000

12,201

Insurance

1.1%

Arthur

J

Gallagher

&

Co.

,

Senior

Note

,

4.85

%

,

12/15/29

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

20,000

20,425

a

Athene

Global

Funding

,

Secured

Note

,

144A,

5.322

%

,

11/13/31

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

24,000

24,576

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond

,

4.3

%

,

5/15/43

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

7,000

6,320

Brown

&

Brown,

Inc.

,

Senior

Bond

,

2.375

%

,

3/15/31

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

32,000

28,496

Fairfax

Financial

Holdings

Ltd.

,

Senior

Note

,

4.85

%

,

4/17/28

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

12,000

12,163

91,980

Interactive

Media

&

Services

0.2%

Meta

Platforms,

Inc.

,

Senior

Bond

,

5.4

%

,

8/15/54

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

17,000

16,809

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

6

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

IT

Services

0.2%

a

Gartner,

Inc.

,

Senior

Note

,

144A,

3.625

%

,

6/15/29

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

$

13,000

$

12,459

Leisure

Products

0.1%

Brunswick

Corp.

,

Senior

Bond

,

2.4

%

,

8/18/31

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

14,000

12,178

Media

0.8%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

Corp.

,

Senior

Secured

Bond,

3.5%,

6/01/41

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

22,000

16,060

Senior

Secured

Note,

2.25%,

1/15/29

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

22,000

20,465

Paramount

Global

,

Senior

Bond,

4.2%,

6/01/29

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

7,000

6,883

Senior

Bond,

4.2%,

5/19/32

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

8,000

7,456

Time

Warner

Cable

Enterprises

LLC

,

Senior

Secured

Bond

,

8.375

%

,

7/15/33

......

14,000

16,430

67,294

Metals

&

Mining

0.1%

a

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

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

13,000

11,866

Multi-Utilities

0.7%

DTE

Energy

Co.

,

Senior

Bond,

5.85%,

6/01/34

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

12,000

12,757

Senior

Note,

4.95%,

7/01/27

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

8,000

8,104

NiSource,

Inc.

,

Senior

Note

,

5.2

%

,

7/01/29

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

12,000

12,383

Southern

Co.

Gas

Capital

Corp.

,

Senior

Bond,

5.15%,

9/15/32

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

16,000

16,432

Senior

Bond,

4.95%,

9/15/34

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

7,000

7,026

56,702

Oil,

Gas

&

Consumable

Fuels

2.0%

Cheniere

Energy

Partners

LP

,

Senior

Bond,

3.25%,

1/31/32

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

8,000

7,291

Senior

Note,

4.5%,

10/01/29

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

16,000

15,954

a

Columbia

Pipelines

Operating

Co.

LLC

,

Senior

Note

,

144A,

5.927

%

,

8/15/30

.......

11,000

11,643

a

DT

Midstream,

Inc.

,

Senior

Secured

Bond

,

144A,

5.8

%

,

12/15/34

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

12,000

12,381

Eastern

Energy

Gas

Holdings

LLC

,

Senior

Bond,

5.8%,

1/15/35

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

16,000

16,844

Senior

Bond,

5.65%,

10/15/54

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

12,000

11,838

El

Paso

Natural

Gas

Co.

LLC

,

Senior

Bond

,

8.375

%

,

6/15/32

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

20,000

24,011

Energy

Transfer

LP

,

Senior

Bond,

6.5%,

2/01/42

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

8,000

8,478

Senior

Note,

5.2%,

4/01/30

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

12,000

12,378

ONEOK,

Inc.

,

Senior

Note

,

4.75

%

,

10/15/31

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

20,000

20,017

Targa

Resources

Partners

LP

/

Targa

Resources

Partners

Finance

Corp.

,

Senior

Bond

,

4.875

%

,

2/01/31

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

12,000

12,038

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

5.6

%

,

3/15/35

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

12,000

12,460

165,333

Paper

&

Forest

Products

0.5%

a

Georgia-Pacific

LLC

,

Senior

Note

,

144A,

4.95

%

,

6/30/32

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

40,000

41,060

Passenger

Airlines

0.1%

a

AS

Mileage

Plan

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.021

%

,

10/20/29

..........

12,000

12,012

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

7

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Personal

Care

Products

0.4%

Kenvue

,

Inc.

,

Senior

Note

,

4.85

%

,

5/22/32

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

$

30,000

$

30,447

Pharmaceuticals

0.6%

Royalty

Pharma

plc

,

Senior

Bond,

5.4%,

9/02/34

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

12,000

12,260

Senior

Note,

5.15%,

9/02/29

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

12,000

12,316

Zoetis,

Inc.

,

Senior

Bond

,

2

%

,

5/15/30

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

23,000

20,923

45,499

Professional

Services

0.2%

Paychex,

Inc.

,

Senior

Note

,

5.1

%

,

4/15/30

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

12,000

12,353

Semiconductors

&

Semiconductor

Equipment

0.9%

Analog

Devices,

Inc.

,

Senior

Note

,

5.05

%

,

4/01/34

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

12,000

12,454

a

Broadcom,

Inc.

,

Senior

Bond

,

144A,

4.926

%

,

5/15/37

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

42,000

41,906

Marvell

Technology,

Inc.

,

Senior

Note,

5.75%,

2/15/29

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

8,000

8,349

Senior

Note,

5.95%,

9/15/33

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

8,000

8,587

71,296

Software

0.7%

Oracle

Corp.

,

Senior

Bond

,

3.65

%

,

3/25/41

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

24,000

19,232

ServiceNow,

Inc.

,

Senior

Bond

,

1.4

%

,

9/01/30

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

23,000

20,148

Synopsys,

Inc.

,

Senior

Bond

,

5.15

%

,

4/01/35

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

20,000

20,353

59,733

Specialized

REITs

1.5%

American

Tower

Corp.

,

Senior

Bond,

3.125%,

1/15/27

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

27,000

26,636

Senior

Bond,

2.7%,

4/15/31

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

31,000

28,300

Crown

Castle,

Inc.

,

Senior

Bond,

3.65%,

9/01/27

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

12,000

11,878

Senior

Bond,

4.75%,

5/15/47

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

6,000

5,307

Senior

Note,

4.9%,

9/01/29

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

8,000

8,118

EPR

Properties

,

Senior

Bond

,

4.5

%

,

6/01/27

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

20,000

20,020

Equinix,

Inc.

,

Senior

Bond

,

3.2

%

,

11/18/29

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

20,000

19,161

119,420

Specialty

Retail

0.2%

Dick's

Sporting

Goods,

Inc.

,

Senior

Bond

,

3.15

%

,

1/15/32

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

14,000

12,831

Technology

Hardware,

Storage

&

Peripherals

0.3%

Hewlett

Packard

Enterprise

Co.

,

Senior

Note

,

4.55

%

,

10/15/29

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

27,000

27,154

Textiles,

Apparel

&

Luxury

Goods

0.3%

Tapestry,

Inc.

,

Senior

Bond,

5.5%,

3/11/35

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

8,000

8,177

Senior

Note,

5.1%,

3/11/30

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

20,000

20,464

28,641

Tobacco

0.6%

Philip

Morris

International,

Inc.

,

Senior

Note,

5.125%,

2/15/30

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

20,000

20,678

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

8

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Tobacco

(continued)

Philip

Morris

International,

Inc.,

(continued)

Senior

Note,

4.75%,

11/01/31

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

$

30,000

$

30,532

51,210

Trading

Companies

&

Distributors

0.5%

Air

Lease

Corp.

,

Senior

Bond

,

3.25

%

,

10/01/29

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

26,000

24,700

a

Aviation

Capital

Group

LLC

,

Senior

Note

,

144A,

5.125

%

,

4/10/30

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

20,000

20,325

45,025

Wireless

Telecommunication

Services

0.7%

Rogers

Communications,

Inc.

,

Senior

Note,

5%,

2/15/29

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

16,000

16,309

Senior

Note,

3.8%,

3/15/32

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

8,000

7,560

T-Mobile

USA,

Inc.

,

Senior

Bond,

5.05%,

7/15/33

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

8,000

8,174

Senior

Note,

3.75%,

4/15/27

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

24,000

23,868

55,911

Total

Corporate

Bonds

(Cost

$2,731,050)

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

2,789,947

Foreign

Government

and

Agency

Securities

0.2%

a

Electricite

de

France

SA,

Senior

Bond,

144A,

4.75%,

10/13/35

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

13,000

12,877

Total

Foreign

Government

and

Agency

Securities

(Cost

$12,284)

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

12,877

U.S.

Government

and

Agency

Securities

7.3%

U.S.

Treasury

Bonds

,

1.25%,

5/15/50

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

80,000

39,264

4.75%,

5/15/55

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

70,000

70,240

U.S.

Treasury

Notes

,

0.5%,

6/30/27

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

205,000

194,218

4.25%,

2/15/28

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

95,000

96,358

0.625%,

5/15/30

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

180,000

156,505

4.25%,

5/15/35

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

40,000

40,375

Total

U.S.

Government

and

Agency

Securities

(Cost

$595,899)

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

596,960

Commercial

Mortgage-Backed

Securities

1.6%

Financial

Services

1.6%

c,d

BANK5

Trust

,

2025-5YR17

,

AS

,

FRN

,

5.626

%

,

11/15/58

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

10,000

10,324

BBCMS

Mortgage

Trust

,

2025-5C37

,

AS

,

5.382

%

,

9/15/58

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

12,000

12,288

Benchmark

Mortgage

Trust

,

2025-V17,

AM,

5.425%,

9/15/58

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

10,000

10,253

c,e

2025-V17,

XA,

IO,

FRN,

1.511%,

9/15/58

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

70,000

4,542

c

BMO

Mortgage

Trust

,

2024-5C8

,

AS

,

FRN

,

5.94

%

,

12/15/57

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

10,000

10,410

c

GS

Mortgage

Securities

Trust

,

2014-GC24

,

AS

,

FRN

,

4.162

%

,

9/10/47

...........

9,051

8,820

JPMBB

Commercial

Mortgage

Securities

Trust

,

2014-C25

,

AS

,

4.065

%

,

11/15/47

...

10,000

9,732

c

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

,

2013-C9,

B,

FRN,

3.708%,

5/15/46

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

12,549

12,164

2013-C10,

B,

FRN,

4.085%,

7/15/46

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

9,252

8,776

Morgan

Stanley

Capital

I

Trust

,

2015-UBS8

,

AS

,

4.114

%

,

12/15/48

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

10,000

9,894

Wells

Fargo

Commercial

Mortgage

Trust

,

2016-LC24,

AS,

3.367%,

10/15/49

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

15,000

14,754

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

9

a

a

Principal

Amount

a

Value

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

Wells

Fargo

Commercial

Mortgage

Trust,

(continued)

c

2015-P2,

C,

FRN,

4.816%,

12/15/48

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

$

20,000

$

19,764

131,721

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$131,606)

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

131,721

Mortgage-Backed

Securities

50.6%

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

36.0%

FNMA,

30

Year,

2%,

5/01/52

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

1,522,736

1,234,099

FNMA,

30

Year,

4.5%,

7/01/53

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

800,638

779,715

FNMA,

30

Year,

5.5%,

12/01/54

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

938,185

946,830

2,960,644

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

14.6%

GNMA

II,

Single-family,

30

Year,

2%,

2/20/52

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

373,207

308,795

GNMA

II,

Single-family,

30

Year,

4.5%,

10/20/52

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

564,767

552,021

GNMA

II,

Single-family,

30

Year,

6%,

6/20/55

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

336,994

343,493

1,204,309

Total

Mortgage-Backed

Securities

(Cost

$4,067,459)

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

4,164,953

Residential

Mortgage-Backed

Securities

3.4%

Financial

Services

3.4%

a

Cross

Mortgage

Trust

,

2024-H1

,

A1

,

144A,

6.085

%

,

12/25/68

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

78,518

79,325

a

J.P.

Morgan

Mortgage

Trust

,

2024-VIS2

,

A1

,

144A,

5.853

%

,

11/25/64

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

43,684

44,173

a

OBX

Trust

,

2023-NQM7

,

A1

,

144A,

6.844

%

,

4/25/63

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

59,877

60,704

a,f

Radian

Mortgage

Capital

Trust

,

2025-J3

,

A25

,

144A,

FRN

,

5.856

%

,

(

30-day

SOFR

Average

+

1.5

%

),

12/25/55

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

98,698

99,164

283,366

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$282,518)

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

283,366

Total

Long

Term

Investments

(Cost

$7,820,816)

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

7,979,824

a

a

a

a

a

Short

Term

Investments

2.5%

Shares

a

Money

Market

Funds

2.5%

g,h

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

4.094%

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

208,192

208,192

Total

Money

Market

Funds

(Cost

$208,192)

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

208,192

Total

Short

Term

Investments

(Cost

$208,192)

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

208,192

a

Total

Investments

(Cost

$8,029,008)

99.5%

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

$8,188,016

Other

Assets,

less

Liabilities

0.5%

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

42,634

Net

Assets

100.0%

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

$8,230,650

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

C

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

10

At

September

30,

2025,

the

Fund

had

the

following futures

contracts

outstanding. 

See

Abbreviations

on

page

26.

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

September

30,

2025,

the

aggregate

value

of

these

securities

was

$768,319,

representing

9.3%

of

net

assets.

b

Perpetual

security

with

no

stated

maturity

date.

c

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.

d

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

e

Investment

in

an

interest-only

security

entitles

holders

to

receive

only

the

interest

payment

on

the

underlying

instruments.

The

principal

amount

shown

is

the

notional

amount

of

the

underlying

instruments.

f

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

g

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Ultra

Notes

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

Long

3

$

345,234

12/19/25

$

1,589

U.S.

Treasury

2

Year

Notes

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

Long

2

416,797

12/31/25

(268)

U.S.

Treasury

5

Year

Notes

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

Long

4

436,781

12/31/25

(1,818)

Total

Futures

Contracts

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

$(497)

*

As

of

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

September

30,

2025

Franklin

Templeton

SMACS:

Series

CP

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

11

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

60.6%

Aerospace

&

Defense

2.7%

ATI,

Inc.

,

Senior

Note

,

7.25

%

,

8/15/30

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

$

50,000

$

52,524

a

Axon

Enterprise,

Inc.

,

Senior

Note

,

144A,

6.125

%

,

3/15/30

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

25,000

25,738

Boeing

Co.

(The)

,

Senior

Bond,

2.95%,

2/01/30

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

9,000

8,477

Senior

Bond,

6.125%,

2/15/33

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

13,000

14,020

Senior

Bond,

6.875%,

3/15/39

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

10,000

11,332

Senior

Bond,

3.375%,

6/15/46

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

13,000

9,271

Senior

Bond,

3.9%,

5/01/49

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

13,000

9,834

Senior

Bond,

6.858%,

5/01/54

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

8,000

9,132

Senior

Note,

2.196%,

2/04/26

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

22,000

21,836

a

Bombardier,

Inc.

,

Senior

Note

,

144A,

7

%

,

6/01/32

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

25,000

26,161

Howmet

Aerospace,

Inc.

,

Senior

Bond,

6.75%,

1/15/28

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

9,000

9,525

Senior

Bond,

5.95%,

2/01/37

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

13,000

14,086

Senior

Note,

3%,

1/15/29

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

8,000

7,721

219,657

Automobiles

0.6%

a

Hyundai

Capital

America

,

Senior

Note

,

144A,

6.5

%

,

1/16/29

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

43,000

45,596

Banks

4.3%

Bank

of

America

Corp.

,

Senior

Bond,

5.468%

to

1/22/34,

FRN

thereafter,

1/23/35

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

9,000

9,404

Senior

Note,

2.551%

to

2/03/27,

FRN

thereafter,

2/04/28

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

13,000

12,734

Sub.

Bond,

5.425%

to

8/14/34,

FRN

thereafter,

8/15/35

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

17,000

17,348

Sub.

Bond,

3.846%

to

3/07/32,

FRN

thereafter,

3/08/37

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

39,000

36,450

Citigroup,

Inc.

,

Sub.

Bond,

4.45%,

9/29/27

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

35,000

35,152

Sub.

Bond,

6.174%

to

5/24/33,

FRN

thereafter,

5/25/34

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

9,000

9,579

Fifth

Third

Bancorp

,

Senior

Note

,

6.339%

to

7/26/28,

FRN

thereafter

,

7/27/29

......

13,000

13,700

JPMorgan

Chase

&

Co.

,

b

KK,

Junior

Sub.

Bond,

3.65%

to

5/31/26,

FRN

thereafter,

Perpetual

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

8,000

7,922

Senior

Bond,

3.782%

to

1/31/27,

FRN

thereafter,

2/01/28

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

34,000

33,856

Senior

Bond,

5.502%

to

1/23/35,

FRN

thereafter,

1/24/36

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

9,000

9,421

Sub.

Bond,

5.717%

to

9/13/32,

FRN

thereafter,

9/14/33

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

17,000

17,986

PNC

Financial

Services

Group,

Inc.

(The)

,

Sub.

Bond

,

4.626%

to

6/05/32,

FRN

thereafter

,

6/06/33

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

31,000

30,779

Royal

Bank

of

Canada

,

Senior

Note

,

5.2

%

,

8/01/28

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

22,000

22,695

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.108

%

,

6/08/27

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

23,000

23,043

US

Bancorp

,

Sub.

Bond

,

2.491%

to

11/02/31,

FRN

thereafter

,

11/03/36

...........

16,000

13,797

Wells

Fargo

&

Co.

,

b

BB,

Junior

Sub.

Bond,

3.9%

to

3/14/26,

FRN

thereafter,

Perpetual

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

14,000

13,880

Senior

Bond,

2.879%

to

10/29/29,

FRN

thereafter,

10/30/30

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

48,000

45,458

353,204

Biotechnology

0.9%

AbbVie,

Inc.

,

Senior

Bond

,

5.05

%

,

3/15/34

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

45,000

46,322

Amgen,

Inc.

,

Senior

Bond,

5.65%,

3/02/53

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

8,000

7,985

Senior

Note,

5.25%,

3/02/30

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

9,000

9,331

a

CSL

Finance

plc

,

Senior

Bond

,

144A,

4.625

%

,

4/27/42

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

15,000

13,692

77,330

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

12

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Building

Products

0.6%

a

Quikrete

Holdings,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

3/01/33

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

$

50,000

$

52,022

Capital

Markets

3.2%

Ares

Capital

Corp.

,

Senior

Note,

3.875%,

1/15/26

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

9,000

8,985

Senior

Note,

7%,

1/15/27

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

9,000

9,267

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

4.223%

to

4/30/28,

FRN

thereafter

,

5/01/29

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

23,000

23,032

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

1.85

%

,

9/15/32

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

33,000

27,925

a

Jane

Street

Group

/

JSG

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

6.125

%

,

11/01/32

50,000

50,716

Jefferies

Financial

Group,

Inc.

,

Senior

Note

,

6.2

%

,

4/14/34

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

9,000

9,572

a

KKR

Group

Finance

Co.

VI

LLC

,

Senior

Bond

,

144A,

3.75

%

,

7/01/29

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

14,000

13,758

LPL

Holdings,

Inc.

,

Senior

Note

,

5.2

%

,

3/15/30

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

22,000

22,495

Morgan

Stanley

,

Senior

Note,

5.123%

to

1/31/28,

FRN

thereafter,

2/01/29

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

22,000

22,477

Senior

Note,

5.23%

to

1/14/30,

FRN

thereafter,

1/15/31

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

18,000

18,582

Sub.

Bond,

5.942%

to

2/06/34,

FRN

thereafter,

2/07/39

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

9,000

9,426

a

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.625

%

,

9/01/30

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

24,000

22,917

S&P

Global,

Inc.

,

Senior

Bond

,

2.5

%

,

12/01/29

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

24,000

22,531

261,683

Chemicals

0.8%

a

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

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

25,000

24,250

FMC

Corp.

,

Senior

Bond

,

3.45

%

,

10/01/29

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

15,000

14,171

a

Rain

Carbon,

Inc.

,

Senior

Secured

Note

,

144A,

12.25

%

,

9/01/29

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

25,000

26,803

65,224

Commercial

Services

&

Supplies

1.0%

Republic

Services,

Inc.

,

Senior

Note

,

5

%

,

11/15/29

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

22,000

22,726

Waste

Connections,

Inc.

,

Senior

Bond,

4.25%,

12/01/28

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

9,000

9,060

Senior

Bond,

5%,

3/01/34

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

18,000

18,389

Waste

Management,

Inc.

,

Senior

Note

,

4.875

%

,

2/15/29

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

9,000

9,245

a

Waste

Pro

USA,

Inc.

,

Senior

Note

,

144A,

7

%

,

2/01/33

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

25,000

25,957

85,377

Communications

Equipment

0.6%

Cisco

Systems,

Inc.

,

Senior

Bond

,

5.05

%

,

2/26/34

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

22,000

22,766

Motorola

Solutions,

Inc.

,

Senior

Bond,

2.3%,

11/15/30

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

8,000

7,234

Senior

Note,

4.85%,

8/15/30

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

9,000

9,175

Senior

Note,

5.2%,

8/15/32

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

13,000

13,404

52,579

Construction

&

Engineering

0.3%

a

Arcosa,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

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

25,000

24,331

Consumer

Finance

1.6%

Ally

Financial,

Inc.

,

Senior

Bond

,

8

%

,

11/01/31

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

13,000

14,826

Capital

One

Financial

Corp.

,

Senior

Note

,

7.624%

to

10/29/30,

FRN

thereafter

,

10/30/31

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

20,000

22,625

a

FirstCash,

Inc.

,

Senior

Note

,

144A,

6.875

%

,

3/01/32

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

50,000

51,743

General

Motors

Financial

Co.,

Inc.

,

Senior

Note

,

4.9

%

,

10/06/29

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

18,000

18,214

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

13

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

(continued)

a

Macquarie

Airfinance

Holdings

Ltd.

,

Senior

Note

,

144A,

5.15

%

,

3/17/30

...........

$

27,000

$

27,388

134,796

Consumer

Staples

Distribution

&

Retail

0.6%

a

7-Eleven,

Inc.

,

Senior

Bond,

144A,

1.8%,

2/10/31

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

2,000

1,739

Senior

Note,

144A,

1.3%,

2/10/28

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

13,000

12,158

a

Alimentation

Couche-Tard,

Inc.

,

Senior

Bond

,

144A,

2.95

%

,

1/25/30

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

15,000

14,174

a

US

Foods,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

4/15/33

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

25,000

25,194

53,265

Containers

&

Packaging

0.9%

Berry

Global,

Inc.

,

Senior

Secured

Note

,

1.65

%

,

1/15/27

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

12,000

11,629

a

Clydesdale

Acquisition

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

6.75

%

,

4/15/32

..

50,000

51,329

WestRock

MWV

LLC

,

Senior

Bond

,

7.95

%

,

2/15/31

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

13,000

15,036

77,994

Distributors

0.3%

a

Gates

Corp.

,

Senior

Note

,

144A,

6.875

%

,

7/01/29

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

25,000

25,973

Diversified

REITs

0.8%

a

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

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

25,000

24,287

GLP

Capital

LP

/

GLP

Financing

II,

Inc.

,

Senior

Bond

,

3.25

%

,

1/15/32

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

13,000

11,706

VICI

Properties

LP

,

Senior

Bond

,

5.75

%

,

4/01/34

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

9,000

9,357

a

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

2/15/29

......

23,000

22,470

67,820

Diversified

Telecommunication

Services

1.8%

AT&T,

Inc.

,

Senior

Bond,

2.25%,

2/01/32

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

13,000

11,385

Senior

Bond,

2.55%,

12/01/33

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

17,000

14,482

Senior

Bond,

4.75%,

5/15/46

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

8,000

7,149

a

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

4.25

%

,

2/01/31

50,000

46,093

Sprint

Capital

Corp.

,

Senior

Bond

,

6.875

%

,

11/15/28

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

50,000

53,792

Verizon

Communications,

Inc.

,

Senior

Note

,

2.355

%

,

3/15/32

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

16,000

14,036

146,937

Electric

Utilities

4.4%

a

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65

%

,

1/15/32

........

26,000

23,340

Appalachian

Power

Co.

,

L

,

Senior

Bond

,

5.8

%

,

10/01/35

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

13,000

13,449

Commonwealth

Edison

Co.

,

Senior

Bond

,

5.875

%

,

2/01/33

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

9,000

9,653

Duke

Energy

Carolinas

LLC

,

Senior

Bond

,

4.25

%

,

12/15/41

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

8,000

7,088

Duke

Energy

Corp.

,

Senior

Bond,

5.45%,

6/15/34

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

13,000

13,531

Senior

Note,

4.85%,

1/05/29

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

9,000

9,175

Exelon

Corp.

,

Senior

Bond,

5.625%,

6/15/35

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

13,000

13,575

Senior

Note,

5.15%,

3/15/29

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

13,000

13,378

Georgia

Power

Co.

,

Senior

Bond

,

5.25

%

,

3/15/34

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

44,000

45,409

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Bond,

5.9%,

3/15/55

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

9,000

9,286

Senior

Note,

5.3%,

3/15/32

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

22,000

22,861

a

NRG

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

2.45

%

,

12/02/27

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

24,000

23,013

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

14

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

5.9%,

6/15/32

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

$

9,000

$

9,416

Senior

Bond,

6.75%,

1/15/53

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

5,000

5,391

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

5.05

%

,

8/15/34

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

34,000

34,486

a

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

6.875%,

4/15/32

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

50,000

52,331

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

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

14,000

13,898

Senior

Secured

Bond,

144A,

6.95%,

10/15/33

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

12,000

13,393

Xcel

Energy,

Inc.

,

Senior

Bond

,

5.6

%

,

4/15/35

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

27,000

28,011

360,684

Energy

Equipment

&

Services

0.6%

a

Kodiak

Gas

Services

LLC

,

Senior

Note

,

144A,

7.25

%

,

2/15/29

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

25,000

25,959

a

Transocean

Titan

Financing

Ltd.

,

Senior

Secured

Note

,

144A,

8.375

%

,

2/01/28

.....

20,238

20,791

46,750

Entertainment

0.1%

Netflix,

Inc.

,

Senior

Bond

,

5.4

%

,

8/15/54

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

9,000

9,071

Financial

Services

1.5%

Corebridge

Financial,

Inc.

,

Senior

Note

,

3.85

%

,

4/05/29

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

23,000

22,660

a

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

8.25

%

,

5/15/30

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

50,000

52,335

a

Rocket

Cos.,

Inc.

,

Senior

Note

,

144A,

6.375

%

,

8/01/33

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

50,000

51,668

126,663

Food

Products

1.5%

a

JBS

USA

LUX

SARL

/

JBS

USA

Food

Co.

/

JBS

USA

Foods

Group,

Inc.

,

Senior

Bond

,

144A,

5.95

%

,

4/20/35

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

16,000

16,824

Kellanova

,

Senior

Bond,

2.1%,

6/01/30

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

25,000

22,675

Senior

Bond,

4.5%,

4/01/46

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

21,000

18,419

Senior

Bond,

5.75%,

5/16/54

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

9,000

9,116

B,

Senior

Bond,

7.45%,

4/01/31

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

9,000

10,316

a

Mars,

Inc.

,

Senior

Note

,

144A,

5.2

%

,

3/01/35

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

18,000

18,408

Pilgrim's

Pride

Corp.

,

Senior

Bond,

6.25%,

7/01/33

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

21,000

22,443

Senior

Note,

3.5%,

3/01/32

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

9,000

8,245

126,446

Ground

Transportation

0.8%

a

Penske

Truck

Leasing

Co.

LP

/

PTL

Finance

Corp.

,

Senior

Note

,

144A,

4.4

%

,

7/01/27

14,000

14,040

a

Watco

Cos.

LLC

/

Watco

Finance

Corp.

,

Senior

Note

,

144A,

7.125

%

,

8/01/32

......

25,000

25,898

a

XPO,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

2/01/32

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

25,000

26,315

66,253

Health

Care

Equipment

&

Supplies

0.3%

a

Bausch

+

Lomb

Corp.

,

Senior

Secured

Note

,

144A,

8.375

%

,

10/01/28

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

25,000

26,086

Health

Care

Providers

&

Services

1.9%

Centene

Corp.

,

Senior

Note

,

2.625

%

,

8/01/31

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

14,000

12,036

CVS

Health

Corp.

,

Senior

Bond

,

4.78

%

,

3/25/38

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

25,000

23,442

a

DaVita,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

2/15/31

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

50,000

45,830

HCA,

Inc.

,

Senior

Note

,

3.625

%

,

3/15/32

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

37,000

34,721

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Providers

&

Services

(continued)

UnitedHealth

Group,

Inc.

,

Senior

Bond,

5.8%,

3/15/36

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

$

13,000

$

13,930

Senior

Note,

5.3%,

2/15/30

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

9,000

9,371

Universal

Health

Services,

Inc.

,

Senior

Secured

Note

,

4.625

%

,

10/15/29

..........

14,000

13,991

153,321

Health

Care

Technology

0.6%

a

IQVIA,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

6/01/32

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

50,000

51,470

Hotel

&

Resort

REITs

0.6%

a

RHP

Hotel

Properties

LP

/

RHP

Finance

Corp.

,

Senior

Note

,

144A,

6.5

%

,

6/15/33

...

25,000

25,764

a

XHR

LP

,

Senior

Note

,

144A,

6.625

%

,

5/15/30

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

25,000

25,718

51,482

Hotels,

Restaurants

&

Leisure

2.5%

a

1011778

BC

ULC

/

New

Red

Finance,

Inc.

,

Secured

Bond

,

144A,

4

%

,

10/15/30

.....

25,000

23,587

a

Caesars

Entertainment,

Inc.

,

Senior

Note

,

144A,

6

%

,

10/15/32

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

50,000

49,279

a

Carnival

Corp.

,

Senior

Note,

144A,

5.75%,

3/15/30

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

25,000

25,541

Senior

Secured

Note,

144A,

4%,

8/01/28

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

23,000

22,686

a

Great

Canadian

Gaming

Corp.

/

Raptor

LLC

,

Senior

Secured

Note

,

144A,

8.75

%

,

11/15/29

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

25,000

24,740

Hyatt

Hotels

Corp.

,

Senior

Note

,

5.25

%

,

6/30/29

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

31,000

31,806

a

Viking

Cruises

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

9/15/27

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

25,000

25,026

202,665

Household

Durables

1.7%

DR

Horton,

Inc.

,

Senior

Bond,

5%,

10/15/34

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

10,000

10,119

Senior

Bond,

5.5%,

10/15/35

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

16,000

16,599

Newell

Brands,

Inc.

,

Senior

Note

,

6.625

%

,

5/15/32

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

50,000

49,470

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

4.35

%

,

2/15/28

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

14,000

14,045

a

Weekley

Homes

LLC

/

Weekley

Finance

Corp.

,

Senior

Note

,

144A,

4.875

%

,

9/15/28

.

50,000

49,002

139,235

Independent

Power

and

Renewable

Electricity

Producers

1.1%

a

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

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

50,000

45,935

Constellation

Energy

Generation

LLC

,

Senior

Bond,

6.125%,

1/15/34

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

8,000

8,712

Senior

Bond,

6.5%,

10/01/53

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

13,000

14,503

Senior

Note,

5.6%,

3/01/28

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

17,000

17,575

86,725

Industrial

REITs

0.2%

Prologis

LP

,

Senior

Bond

,

5

%

,

3/15/34

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

14,000

14,234

Insurance

1.9%

a

Alliant

Holdings

Intermediate

LLC

/

Alliant

Holdings

Co-Issuer

,

Senior

Secured

Note

,

144A,

7

%

,

1/15/31

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

50,000

51,701

Arthur

J

Gallagher

&

Co.

,

Senior

Note

,

4.85

%

,

12/15/29

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

22,000

22,467

a

Athene

Global

Funding

,

Secured

Note

,

144A,

5.322

%

,

11/13/31

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

27,000

27,648

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond

,

4.3

%

,

5/15/43

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

8,000

7,223

Brown

&

Brown,

Inc.

,

Senior

Bond

,

2.375

%

,

3/15/31

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

36,000

32,058

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Insurance

(continued)

Fairfax

Financial

Holdings

Ltd.

,

Senior

Note

,

4.85

%

,

4/17/28

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

$

13,000

$

13,176

154,273

Interactive

Media

&

Services

0.2%

Meta

Platforms,

Inc.

,

Senior

Bond

,

5.4

%

,

8/15/54

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

19,000

18,787

IT

Services

1.7%

a

Cogent

Communications

Group

LLC

/

Cogent

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

6.5

%

,

7/01/32

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

75,000

72,955

a

Fortress

Intermediate

3,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

6/01/31

..........

50,000

52,415

a

Gartner,

Inc.

,

Senior

Note

,

144A,

3.625

%

,

6/15/29

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

14,000

13,417

138,787

Leisure

Products

0.2%

Brunswick

Corp.

,

Senior

Bond

,

2.4

%

,

8/18/31

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

16,000

13,917

Media

1.2%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

Corp.

,

Senior

Secured

Bond,

3.5%,

6/01/41

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

25,000

18,250

Senior

Secured

Note,

2.25%,

1/15/29

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

24,000

22,325

Paramount

Global

,

Senior

Bond,

4.2%,

6/01/29

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

8,000

7,866

Senior

Bond,

4.2%,

5/19/32

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

9,000

8,388

a

Sinclair

Television

Group,

Inc.

,

Senior

Secured

Note

,

144A,

8.125

%

,

2/15/33

.......

25,000

25,677

Time

Warner

Cable

Enterprises

LLC

,

Senior

Secured

Bond

,

8.375

%

,

7/15/33

......

16,000

18,778

101,284

Metals

&

Mining

0.2%

a

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

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

15,000

13,692

Multi-Utilities

0.8%

DTE

Energy

Co.

,

Senior

Bond,

5.85%,

6/01/34

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

13,000

13,820

Senior

Note,

4.95%,

7/01/27

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

9,000

9,117

NiSource,

Inc.

,

Senior

Note

,

5.2

%

,

7/01/29

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

13,000

13,414

Southern

Co.

Gas

Capital

Corp.

,

Senior

Bond,

5.15%,

9/15/32

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

18,000

18,486

Senior

Bond,

4.95%,

9/15/34

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

8,000

8,030

62,867

Oil,

Gas

&

Consumable

Fuels

4.7%

Cheniere

Energy

Partners

LP

,

Senior

Bond,

3.25%,

1/31/32

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

9,000

8,203

Senior

Note,

4.5%,

10/01/29

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

17,000

16,950

a

Columbia

Pipelines

Operating

Co.

LLC

,

Senior

Note

,

144A,

5.927

%

,

8/15/30

.......

13,000

13,760

a

Crescent

Energy

Finance

LLC

,

Senior

Note

,

144A,

7.375

%

,

1/15/33

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

50,000

48,723

a

DT

Midstream,

Inc.

,

Senior

Secured

Bond

,

144A,

5.8

%

,

12/15/34

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

13,000

13,412

Eastern

Energy

Gas

Holdings

LLC

,

Senior

Bond,

5.8%,

1/15/35

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

17,000

17,897

Senior

Bond,

5.65%,

10/15/54

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

13,000

12,825

El

Paso

Natural

Gas

Co.

LLC

,

Senior

Bond

,

8.375

%

,

6/15/32

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

22,000

26,413

Energy

Transfer

LP

,

Senior

Bond,

6.5%,

2/01/42

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

9,000

9,538

Senior

Note,

5.2%,

4/01/30

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

13,000

13,410

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

a

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond

,

144A,

6.25

%

,

4/15/32

......

$

50,000

$

48,002

a

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

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

50,000

50,328

ONEOK,

Inc.

,

Senior

Note

,

4.75

%

,

10/15/31

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

23,000

23,019

Targa

Resources

Partners

LP

/

Targa

Resources

Partners

Finance

Corp.

,

Senior

Bond

,

4.875

%

,

2/01/31

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

14,000

14,044

a

Venture

Global

Plaquemines

LNG

LLC

,

Senior

Secured

Note

,

144A,

7.5

%

,

5/01/33

..

50,000

55,282

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

5.6

%

,

3/15/35

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

13,000

13,499

385,305

Paper

&

Forest

Products

0.6%

a

Georgia-Pacific

LLC

,

Senior

Note

,

144A,

4.95

%

,

6/30/32

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

45,000

46,193

Passenger

Airlines

0.5%

a

AS

Mileage

Plan

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.021

%

,

10/20/29

..........

14,000

14,013

a

OneSky

Flight

LLC

,

Senior

Note

,

144A,

8.875

%

,

12/15/29

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

25,000

26,313

40,326

Personal

Care

Products

0.4%

Kenvue,

Inc.

,

Senior

Note

,

4.85

%

,

5/22/32

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

34,000

34,507

Pharmaceuticals

1.2%

a

Endo

Finance

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

8.5

%

,

4/15/31

..........

50,000

53,706

Royalty

Pharma

plc

,

Senior

Bond,

5.4%,

9/02/34

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

13,000

13,282

Senior

Note,

5.15%,

9/02/29

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

13,000

13,343

Zoetis,

Inc.

,

Senior

Bond

,

2

%

,

5/15/30

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

25,000

22,742

103,073

Professional

Services

0.2%

Paychex,

Inc.

,

Senior

Note

,

5.1

%

,

4/15/30

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

13,000

13,383

Semiconductors

&

Semiconductor

Equipment

1.0%

Analog

Devices,

Inc.

,

Senior

Note

,

5.05

%

,

4/01/34

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

13,000

13,492

a

Broadcom,

Inc.

,

Senior

Bond

,

144A,

4.926

%

,

5/15/37

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

47,000

46,894

Marvell

Technology,

Inc.

,

Senior

Note,

5.75%,

2/15/29

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

9,000

9,392

Senior

Note,

5.95%,

9/15/33

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

9,000

9,661

79,439

Software

1.4%

a

Gen

Digital,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

4/01/33

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

50,000

51,169

Oracle

Corp.

,

Senior

Bond

,

3.65

%

,

3/25/41

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

27,000

21,636

ServiceNow,

Inc.

,

Senior

Bond

,

1.4

%

,

9/01/30

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

26,000

22,776

Synopsys,

Inc.

,

Senior

Bond

,

5.15

%

,

4/01/35

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

22,000

22,388

117,969

Specialized

REITs

1.6%

American

Tower

Corp.

,

Senior

Bond,

3.125%,

1/15/27

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

30,000

29,596

Senior

Bond,

2.7%,

4/15/31

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

34,000

31,038

Crown

Castle,

Inc.

,

Senior

Bond,

3.65%,

9/01/27

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

14,000

13,858

Senior

Bond,

4.75%,

5/15/47

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

6,000

5,307

Senior

Note,

4.9%,

9/01/29

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

9,000

9,133

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

18

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Specialized

REITs

(continued)

EPR

Properties

,

Senior

Bond

,

4.5

%

,

6/01/27

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

$

23,000

$

23,023

Equinix,

Inc.

,

Senior

Bond

,

3.2

%

,

11/18/29

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

22,000

21,077

133,032

Specialty

Retail

0.2%

Dick's

Sporting

Goods,

Inc.

,

Senior

Bond

,

3.15

%

,

1/15/32

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

15,000

13,748

Technology

Hardware,

Storage

&

Peripherals

0.7%

Hewlett

Packard

Enterprise

Co.

,

Senior

Note

,

4.55

%

,

10/15/29

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

31,000

31,177

a

Seagate

Data

Storage

Technology

Pte.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

7/15/30

...

25,000

25,498

56,675

Textiles,

Apparel

&

Luxury

Goods

0.4%

Tapestry,

Inc.

,

Senior

Bond,

5.5%,

3/11/35

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

9,000

9,199

Senior

Note,

5.1%,

3/11/30

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

22,000

22,510

31,709

Tobacco

0.7%

Philip

Morris

International,

Inc.

,

Senior

Note,

5.125%,

2/15/30

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

22,000

22,745

Senior

Note,

4.75%,

11/01/31

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

34,000

34,603

57,348

Trading

Companies

&

Distributors

1.2%

Air

Lease

Corp.

,

Senior

Bond

,

3.25

%

,

10/01/29

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

29,000

27,550

a

Aviation

Capital

Group

LLC

,

Senior

Note

,

144A,

5.125

%

,

4/10/30

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

22,000

22,358

a

EquipmentShare.com,

Inc.

,

Secured

Note

,

144A,

8.625

%

,

5/15/32

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

25,000

27,022

a

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

7

%

,

6/15/30

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

25,000

25,988

102,918

Wireless

Telecommunication

Services

0.8%

Rogers

Communications,

Inc.

,

Senior

Note,

5%,

2/15/29

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

18,000

18,347

Senior

Note,

3.8%,

3/15/32

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

9,000

8,505

T-Mobile

USA,

Inc.

,

Senior

Bond,

5.05%,

7/15/33

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

9,000

9,196

Senior

Note,

3.75%,

4/15/27

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

27,000

26,851

62,899

Total

Corporate

Bonds

(Cost

$4,899,401)

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

4,987,004

Foreign

Government

and

Agency

Securities

0.2%

a

Electricite

de

France

SA,

Senior

Bond,

144A,

4.75%,

10/13/35

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

14,000

13,867

Total

Foreign

Government

and

Agency

Securities

(Cost

$13,228)

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

13,867

U.S.

Government

and

Agency

Securities

4.5%

U.S.

Treasury

Bonds

,

1.25%,

5/15/50

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

130,000

63,804

4.75%,

5/15/55

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

85,000

85,293

U.S.

Treasury

Notes

,

0.5%,

6/30/27

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

45,000

42,633

0.625%,

5/15/30

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

145,000

126,073

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

19

a

a

Principal

Amount

a

Value

a

a

a

a

a

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Notes,

(continued)

4.25%,

5/15/35

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

$

55,000

$

55,516

Total

U.S.

Government

and

Agency

Securities

(Cost

$373,359)

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

373,319

Commercial

Mortgage-Backed

Securities

1.5%

Financial

Services

1.5%

BBCMS

Mortgage

Trust

,

2025-5C37

,

AS

,

5.382

%

,

9/15/58

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

12,000

12,288

c,d

Benchmark

Mortgage

Trust

,

2025-V17

,

XA

,

IO,

FRN

,

1.511

%

,

9/15/58

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

61,000

3,958

d

Citigroup

Commercial

Mortgage

Trust

,

2014-GC21

,

C

,

FRN

,

4.78

%

,

5/10/47

.......

3,386

3,319

d

GS

Mortgage

Securities

Trust

,

2014-GC24

,

AS

,

FRN

,

4.162

%

,

9/10/47

...........

9,051

8,820

J.P.

Morgan

Chase

Commercial

Mortgage

Securities

Trust

,

2016-JP2

,

B

,

3.46

%

,

8/15/49

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

10,000

9,248

JPMBB

Commercial

Mortgage

Securities

Trust

,

2014-C25

,

AS

,

4.065

%

,

11/15/47

...

17,000

16,545

d

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

,

2013-C9,

B,

FRN,

3.708%,

5/15/46

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

10,588

10,264

2013-C10,

B,

FRN,

4.085%,

7/15/46

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

12,028

11,408

2013-C10,

C,

FRN,

4.085%,

7/15/46

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

23,000

21,203

Morgan

Stanley

Capital

I

Trust

,

2015-UBS8

,

AS

,

4.114

%

,

12/15/48

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

10,000

9,894

d

Wells

Fargo

Commercial

Mortgage

Trust

,

2015-P2

,

C

,

FRN

,

4.816

%

,

12/15/48

.....

20,000

19,764

126,711

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$125,425)

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

126,711

Mortgage-Backed

Securities

28.0%

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

24.3%

FNMA,

30

Year,

2%,

5/01/52

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

757,208

613,677

FNMA,

30

Year,

2.5%,

5/01/52

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

845,384

719,874

FNMA,

30

Year,

4.5%,

7/01/53

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

452,534

440,709

FNMA,

30

Year,

5.5%,

12/01/54

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

222,935

224,989

1,999,249

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

3.7%

GNMA

II,

Single-family,

30

Year,

5.5%,

10/20/54

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

121,986

123,072

GNMA

II,

Single-family,

30

Year,

6%,

6/20/55

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

178,409

181,849

304,921

Total

Mortgage-Backed

Securities

(Cost

$2,239,334)

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

2,304,170

Residential

Mortgage-Backed

Securities

3.4%

Financial

Services

3.4%

a

Cross

Mortgage

Trust

,

2024-H1

,

A1

,

144A,

6.085

%

,

12/25/68

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

78,518

79,325

a

J.P.

Morgan

Mortgage

Trust

,

2024-VIS2

,

A1

,

144A,

5.853

%

,

11/25/64

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

43,684

44,173

a

OBX

Trust

,

2023-NQM7

,

A1

,

144A,

6.844

%

,

4/25/63

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

59,877

60,704

a,e

Radian

Mortgage

Capital

Trust

,

2025-J3

,

A25

,

144A,

FRN

,

5.856

%

,

(

30-day

SOFR

Average

+

1.5

%

),

12/25/55

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

97,721

98,183

282,385

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$281,541)

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

282,385

Total

Long

Term

Investments

(Cost

$7,932,288)

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

8,087,456

a

a

a

a

a

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

20

Short

Term

Investments

0.1%

a

a

Shares

a

Value

a

Money

Market

Funds

0.1%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

4.094%

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

10,648

$

10,648

Total

Money

Market

Funds

(Cost

$10,648)

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

10,648

Total

Short

Term

Investments

(Cost

$10,648)

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

10,648

a

Total

Investments

(Cost

$7,942,936)

98.3%

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

$8,098,104

Other

Assets,

less

Liabilities

1.7%

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

138,814

Net

Assets

100.0%

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

$8,236,918

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

September

30,

2025,

the

aggregate

value

of

these

securities

was

$2,595,784,

representing

31.5%

of

net

assets.

b

Perpetual

security

with

no

stated

maturity

date.

c

Investment

in

an

interest-only

security

entitles

holders

to

receive

only

the

interest

payment

on

the

underlying

instruments.

The

principal

amount

shown

is

the

notional

amount

of

the

underlying

instruments.

d

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.

e

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

f

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedule

of

Investments

21

At

September

30,

2025,

the

Fund

had

the

following futures

contracts

outstanding.

At

September

30,

2025,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

U.S.

Treasury

10

Year

Ultra

Notes

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

Long

2

$

230,156

12/19/25

$

1,138

U.S.

Treasury

2

Year

Notes

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

Long

2

416,797

12/31/25

(268)

U.S.

Treasury

5

Year

Notes

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

Long

5

545,977

12/31/25

(2,413)

Total

Futures

Contracts

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

$(1,543)

*

As

of

period

end.

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

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.EM.43

...

1.00%

Quarterly

6/20/30

480,000

$

(7,303)

$

(11,763)

$

4,460

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

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

$(7,303)

$(11,763)

$4,460

Total

Credit

Default

Swap

Contracts

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

$(7,303)

$

(11,763)

$4,460

(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.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CP

(continued)

Quarterly

Schedule

of

Investments

See

Notes

to

Schedules

of

Investments.

22

At

September

30,

2025,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Abbreviations

on

page

26.

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Long

(a)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

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

1-day

SOFR

Quarterly

JPHQ

3/20/26

415,000

$

8,542

Total

Return

Swap

Contracts

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

$8,542

*

In

U.S.

dollars

unless

otherwise

indicated.

(a)

The

Fund

receives

the

total

return

on

the

underlying

instrument

and

pays

a

variable

financing

rate.

Franklin

Strategic

Series

23

Quarterly

Schedule

of

Investments

Notes

to

Schedules

of

Investments

(unaudited)

1.

Organization

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twelve

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.

Effective June

20,

2025,

the

Trust

began

offering

shares

of

Franklin

Templeton

SMACS:

Series

C

and

Franklin

Templeton

SMACS:

Series

CP.

2. Financial

Instrument

Valuation

The

Funds’

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Funds

calculate

the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds'

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the

Over-the-counter

(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.

Derivative

financial

instruments

listed

on

an

exchange

are

valued

at

the

official

closing

price

of

the

day.

Certain

derivative

financial

instruments

are

centrally

cleared

or trade

in

the

OTC

market.

The Funds'

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The Funds'

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Funds

have procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed. 

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

24

Quarterly

Schedule

of

Investments

3.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

During

the

period

ended

September

30,

2025,

investments

in

affiliated

management

investment

companies

were

as

follows: 

4. Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Templeton

SMACS:

Series

C

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

4.094%

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

$—

$1,333,935

$(1,125,743)

$—

$—

$208,192

208,192

$3,506

Total

Affiliated

Securities

...

$—

$1,333,935

$(1,125,743)

$—

$—

$208,192

$3,506

Franklin

Templeton

SMACS:

Series

CP

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

4.094%

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

$—

$1,098,167

$(1,087,519)

$—

$—

$10,648

10,648

$3,204

Total

Affiliated

Securities

...

$—

$1,098,167

$(1,087,519)

$—

$—

$10,648

$3,204

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

25

Quarterly

Schedule

of

Investments

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

September

30,

2025,

in

valuing

the

Funds'

assets

and

liabilities carried

at

fair

value,

is

as

follows:

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Level

1

Level

2

Level

3

Total

Franklin

Templeton

SMACS:

Series

C

Assets:

Investments

in

Securities:

Corporate

Bonds

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

$

—

$

2,789,947

$

—

$

2,789,947

Foreign

Government

and

Agency

Securities

....

—

12,877

—

12,877

U.S.

Government

and

Agency

Securities

.......

—

596,960

—

596,960

Commercial

Mortgage-Backed

Securities

......

—

131,721

—

131,721

Mortgage-Backed

Securities

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

—

4,164,953

—

4,164,953

Residential

Mortgage-Backed

Securities

.......

—

283,366

—

283,366

Short

Term

Investments

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

208,192

—

—

208,192

Total

Investments

in

Securities

...........

$208,192

$7,979,824

$—

$8,188,016

Other

Financial

Instruments:

Futures

Contracts

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

$1,589

$—

$—

$1,589

Total

Other

Financial

Instruments

.........

$1,589

$—

$—

$1,589

Liabilities:

Other

Financial

Instruments:

Futures

Contracts

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

2,086

—

—

2,086

Total

Other

Financial

Instruments

.........

$2,086

$—

$—

$2,086

Franklin

Templeton

SMACS:

Series

CP

Assets:

Investments

in

Securities:

Corporate

Bonds

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

—

4,987,004

—

4,987,004

Foreign

Government

and

Agency

Securities

....

—

13,867

—

13,867

U.S.

Government

and

Agency

Securities

.......

—

373,319

—

373,319

Commercial

Mortgage-Backed

Securities

......

—

126,711

—

126,711

Mortgage-Backed

Securities

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

—

2,304,170

—

2,304,170

Residential

Mortgage-Backed

Securities

.......

—

282,385

—

282,385

Short

Term

Investments

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

10,648

—

—

10,648

Total

Investments

in

Securities

...........

$10,648

$8,087,456

$—

$8,098,104

Other

Financial

Instruments:

Futures

Contracts

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

$1,138

$—

$—

$1,138

Swap

Contracts

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

—

13,002

—

13,002

Total

Other

Financial

Instruments

.........

$1,138

$13,002

$—

$14,140

Liabilities:

Other

Financial

Instruments:

Futures

Contracts

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

2,681

—

—

2,681

Total

Other

Financial

Instruments

.........

$2,681

$—

$—

$2,681

4. Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

26

Quarterly

Schedule

of

Investments

Abbreviations

Index

CDX.NA.EM.

Series

number

CDX

North

America

Emerging

Markets

Index

Selected

Portfolio

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

IO

Interest

Only

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1-day

SOFR

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

4.24%

For

additional

information

on

the

Funds'

significant

accounting

policies,

please

refer

to

the Funds'

most

recent

semiannual

or

annual

shareholder

report.