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Schedules
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
2
Franklin
Templeton
SMACS:
Series
E
6
Franklin
Templeton
SMACS:
Series
H
12
Franklin
Templeton
SMACS:
Series
I
23
Notes
to
Schedules
of
Investments
31
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2026
Franklin
Templeton
SMACS:
Series
CH
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
2
a
a
Warrants
a
Value
a
a
a
a
a
Warrants
0.0%
Financial
Services
0.0%
a,b
Brightline
Train
Holdings
West
LLC
,
11/26/35
..............................
1,710
$
—
Total
Warrants
(Cost
$
–
)
......................................................
—
Principal
Amount
Corporate
Bonds
0.6%
Diversified
Consumer
Services
0.6%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
$
250,000
248,298
Total
Corporate
Bonds
(Cost
$
236,664
)
........................................
248,298
Municipal
Bonds
97.2%
Arizona
1.4%
c
Maricopa
County
Industrial
Development
Authority
,
Grand
Canyon
University
Obligated
Group
,
Revenue
,
144A,
2024
,
7.375
%
,
10/01/29
..........................
505,000
528,308
California
95.5%
c
California
Community
College
Financing
Authority
,
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
A
,
5.75
%
,
7/01/60
................................
500,000
342,679
c
California
Community
Housing
Agency
,
Annadel
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
..................
1,200,000
938,805
Arbors
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
8/01/50
....................
600,000
567,814
Brio
Apartments
&
Next
on
Lex
Apartments
,
Revenue,
Sub.
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
....................................................
200,000
157,708
Mira
Vista
Hills
Apartments
,
Revenue
,
144A,
2021
A
,
4
%
,
2/01/56
.............
300,000
147,189
Serenity
at
Larkspur
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
2/01/50
.........
219,959
4,179
d
Twin
Creek
Apartments
,
Revenue,
Senior
Lien
,
144A,
2022
A-2
,
8.064
%,
8/01/65
..
1,250,000
50,093
California
Educational
Facilities
Authority
,
St.
Mary's
College
of
California
,
Revenue
,
2023
A
,
Refunding
,
5.5
%
,
10/01/53
....................................
1,000,000
991,317
c
California
Enterprise
Development
Authority
,
Real
Journey
Academies
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/54
.............................
500,000
479,821
California
Municipal
Finance
Authority
,
a
8
%
,
12/01/42
.....................................................
600,000
599,716
c
Revenue
,
144A,
2025
B
,
7.375
%
,
8/01/37
...............................
300,000
310,000
Revenue
,
2025
B
,
7.1
%
,
12/01/37
.....................................
250,000
251,635
Special
Tax
,
2025
C
,
5
%
,
9/01/55
......................................
500,000
501,422
c,e
4252
Crenshaw
Preservation
LLC
,
Revenue
,
144A,
2025
B-2
,
Mandatory
Put
,
9
%
,
6/01/36
........................................................
300,000
301,475
c
Ascent
613
,
Revenue
,
144A,
2025
A
,
5.375
%
,
1/01/55
......................
500,000
502,694
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6
%
,
9/01/52
................
150,000
157,921
BOLD
Program
,
Special
Tax
,
2022
C
,
6.25
%
,
9/01/52
.......................
150,000
159,361
BOLD
Program
,
Special
Tax
,
2022
D
,
6.125
%
,
9/01/52
......................
150,000
158,805
BOLD
Program
,
Special
Tax
,
2023
A
,
5.5
%
,
9/01/53
........................
100,000
104,191
BOLD
Program
,
Special
Tax
,
2023
C
,
5.25
%
,
9/01/53
.......................
1,000,000
1,021,241
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/48
.........................
100,000
101,576
c
CHF-Aptos
LLC
,
Revenue
,
144A,
2025
A
,
5.5
%
,
7/01/57
....................
250,000
251,324
c
CHF-Aptos
LLC
,
Revenue
,
144A,
2025
B
,
7.5
%
,
7/01/57
....................
250,000
251,205
c
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/49
.
125,000
118,163
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
6
%
,
9/01/52
....................................................
150,000
157,921
Community
Facilities
District
No.
2022-6
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.375
%
,
9/01/55
.................................................
200,000
206,527
Community
Facilities
District
No.
2023-11
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.25
%
,
9/01/60
.............................................
500,000
508,584
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.8
%
,
9/01/53
........................................................
1,000,000
1,054,460
Gateways
Hospital
and
Mental
Health
Center
,
Revenue
,
2026
A
,
5.25
%
,
9/01/55
..
250,000
254,739
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
3
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
c,d
IH
Parkside
Fairfield
LLC
,
Revenue,
Sub.
Lien
,
144A,
2023
B
,
2.617
%,
9/01/43
...
$
250,000
$
199,770
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
4
%
,
12/31/47
70,000
63,397
c,e
Palmdale
Family
Housing
LP
,
Revenue
,
144A,
2025
A-S
,
Mandatory
Put
,
8.125
%
,
8/01/44
........................................................
200,000
200,608
Porter
1107
LLC
,
Revenue
,
2025
B
,
7.2
%
,
11/01/37
........................
300,000
304,937
c
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.75
%
,
5/01/54
.
200,000
201,633
c
Verner
6430
LLC
,
Revenue
,
144A,
2026
B
,
7.1
%
,
6/01/38
...................
250,000
251,661
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5.9
%
,
6/15/44
..........
150,000
160,247
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.375
%
,
6/15/64
........
250,000
263,331
c
California
Public
Finance
Authority
,
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/46
.................................
1,250,000
1,186,830
c
California
School
Finance
Authority
,
Larchmont
Schools
,
Revenue
,
144A,
2026
,
6
%
,
6/01/56
.....................
300,000
310,437
Magnolia
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2026
A
,
5.375
%
,
7/01/65
250,000
247,581
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.875
%
,
6/01/53
.................................................
100,000
100,909
Orange
Springs
Obligated
Group
,
Revenue
,
144A,
2026
A
,
6
%
,
7/01/61
.........
250,000
249,815
California
Statewide
Communities
Development
Authority
,
c,f
Revenue
,
144A,
2026
E-2
,
II
,
6.85
%
,
6/01/36
.............................
250,000
246,718
Special
Tax
,
2023
A
,
5.25
%
,
9/01/51
...................................
100,000
102,726
Special
Tax
,
2025
B
,
5
%
,
9/02/55
......................................
500,000
506,608
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........
150,000
150,558
Community
Facilities
District
No.
2022-03
,
Special
Tax
,
2023
,
5
%
,
9/01/53
.......
150,000
150,558
Community
Facilities
District
No.
2022-07
Improvement
Area
No.
1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
................................................
150,000
151,468
Community
Facilities
District
No.
2023-08
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
.............................................
300,000
303,697
Community
Facilities
District
No.
2024-9
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........
100,000
100,345
Community
Infrastructure
Program
Assessment
District
No.
20-02
,
Special
Assessment
,
2023
,
5.75
%
,
9/02/53
...................................
985,000
1,024,104
e
Foothill
Oak
Park
Apartments
LLC
,
Revenue
,
2025
H-S-A
,
Mandatory
Put
,
7.5
%
,
3/01/36
........................................................
300,000
304,613
c
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5.25
%
,
12/01/56
.................................................
250,000
250,003
c
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/49
.............
100,000
100,292
c
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/52
.............
200,000
198,723
c
PACE
Assessments
,
Revenue
,
144A,
2026
,
5.25
%
,
9/02/61
..................
250,000
252,852
Chino
Community
Facilities
District
,
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
..........................................
1,000,000
1,050,737
c
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2
,
Special
Tax
,
144A,
2023
A
,
5.25
%
,
9/01/48
............................................
965,000
987,731
District
No.
2020-1
Shoreline
Tax
Zone
1
,
Special
Tax
,
144A,
2023
C
,
5.75
%
,
9/01/53
1,500,000
1,567,852
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
5
,
Special
Tax
,
2023
,
5.375
%
,
9/01/51
....................................
1,250,000
1,287,018
City
of
Lake
Elsinore
,
Community
Facilities
District
No.
2006-8
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........
150,000
151,132
Community
Facilities
District
No.
2015-4
,
Special
Tax
,
2026
,
5
%
,
9/01/55
........
650,000
655,208
City
of
Manteca
,
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/57
250,000
248,235
f
City
of
Menifee
,
Community
Facilities
District
No.
2022-3
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/56
......................................
250,000
251,921
City
of
Rancho
Cordova
,
Arista
Del
Sol
Community
Facilities
District
No.
2022-1
Improvement
Area
No.
1
,
Special
Tax
,
2023
,
5.375
%
,
9/01/53
...................................
200,000
205,727
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
4
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Rancho
Cordova,
(continued)
Preserve
(The)
Community
Facilities
District
No.
2025-1
Improvement
Area
,
Special
Tax
,
2026
,
5
%
,
9/01/55
............................................
$
650,000
$
652,327
City
of
Rialto
,
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
,
5
%
,
9/01/55
500,000
504,748
c
CSCDA
Community
Improvement
Authority
,
CTR
City
Anaheim
,
Revenue
,
144A,
2020
A
,
5
%
,
1/01/54
....................
400,000
354,045
Dublin
,
Revenue
,
144A,
2021
B
,
4
%
,
2/01/57
.............................
140,000
106,600
Eastern
Municipal
Water
District
,
Community
Facilities
District
No.
2018-81
Improvement
Area
B
,
Special
Tax
,
2026
B
,
5
%
,
9/01/55
....................................................
200,000
201,751
Community
Facilities
District
No.
2022-97
Improvement
Area
A
,
Special
Tax
,
2026
,
5
%
,
9/01/55
....................................................
500,000
502,158
Galt
Community
Facilities
District
,
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
6
%
,
9/01/53
..................
1,500,000
1,594,167
c
Golden
State
Connect
Authority
,
Revenue
,
144A,
2025
,
6.5
%
,
12/01/60
...........
300,000
297,364
Hemet
Unified
School
District
,
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2026
,
5
%
,
9/01/56
..............................
500,000
504,956
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
.....................................
250,000
258,111
Lompoc
Valley
Medical
Center
,
Revenue
,
2026
,
5
%
,
2/01/46
...................
250,000
249,659
c
Los
Angeles
Housing
Authority
,
Housing
Pathways,
Inc.
,
Revenue
,
144A,
2024
B
,
6
%
,
12/01/62
........................................................
600,000
576,492
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2022-1
,
Special
Tax
,
2025
,
5.125
%
,
9/01/55
.....
250,000
251,899
Community
Facilities
District
No.
2023-1
,
Special
Tax
,
2025
,
5
%
,
9/01/55
........
250,000
251,151
Mountain
House
Community
Facilities
District
,
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
3
,
Special
Tax
,
2026
,
5
%
,
9/01/56
.........................................................
500,000
499,602
Orange
County
Community
Facilities
District
,
Community
Facilities
District
No.
2023-1
,
Special
Tax
,
2023
A
,
5.5
%
,
8/15/53
....................................
1,000,000
1,037,385
River
Islands
Public
Financing
Authority
,
d
Special
Tax
,
2026
A
,
AG
Insured
,
5.43
%,
9/01/65
..........................
2,000,000
250,679
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
995,000
1,017,946
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
Refunding
,
5
%
,
9/01/55
............................................
400,000
387,412
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
....................................................
670,000
650,464
Root
Creek
Water
District
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
................................
225,000
230,117
c,d
Santa
Barbara
Housing
Authority
,
Revenue
,
144A,
2025
A-S
,
7.99
%,
5/01/44
......
900,000
227,110
Stockton
Community
Facilities
District
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
4
,
Special
Tax
,
2025
,
5
%
,
9/01/55
....................
400,000
400,549
Washington
Township
Health
Care
District
,
Revenue
,
2023
A
,
5.75
%
,
7/01/48
......
150,000
158,287
35,807,526
U.S.
Territories
0.3%
Puerto
Rico
0.3%
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
127,651
125,262
Total
Municipal
Bonds
(Cost
$
35,797,249
)
......................................
36,461,096
Total
Long
Term
Investments
(Cost
$
36,033,913
)
................................
36,709,394
a
a
a
a
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
5
See
Abbreviations
on
page
37
.
Short
Term
Investments
1.9%
a
a
Principal
Amount
a
Value
Municipal
Bonds
1.9%
California
1.9%
g
California
Municipal
Finance
Authority
,
Boone
534
LLC
,
Revenue
,
2026
B
,
Daily
VRDN
and
Put
,
7.1
%
,
2/01/38
..............................................
$
500,000
$
498,402
g
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
2.3
%
,
5/15/48
...
200,000
200,000
698,402
Total
Municipal
Bonds
(Cost
$
700,000
)
.........................................
698,402
Total
Short
Term
Investments
(Cost
$
700,000
)
..................................
698,402
a
Total
Investments
(Cost
$
36,733,913
)
99.7
%
....................................
$37,407,796
Other
Assets,
less
Liabilities
0.3
%
.............................................
110,940
Net
Assets
100.0%
...........................................................
$37,518,736
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
5
regarding
fair
value
measurements.
b
Non-income
producing.
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2026,
the
aggregate
value
of
these
securities
was
$13,490,061,
representing
36.0%
of
net
assets.
d
The
rate
shown
represents
the
yield
at
period
end.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
f
Security
purchased
on
a
when-issued
basis.
g
Variable
rate
demand
notes
(VRDN)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
pay-
ment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2026
Franklin
Templeton
SMACS:
Series
E
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
34.8%
Aerospace
&
Defense
1.5%
a
Boeing
Co.
(The)
...................................
United
States
15,000
$
3,467,250
Northrop
Grumman
Corp.
.............................
United
States
10,000
5,636,800
9,104,050
Air
Freight
&
Logistics
0.7%
United
Parcel
Service,
Inc.
,
B
..........................
United
States
44,000
4,694,360
Banks
2.3%
Bank
of
America
Corp.
...............................
United
States
26,000
1,341,600
Fifth
Third
Bancorp
..................................
United
States
135,000
6,740,550
Truist
Financial
Corp.
................................
United
States
69,000
3,326,490
US
Bancorp
.......................................
United
States
50,000
2,742,500
14,151,140
Biotechnology
0.9%
AbbVie,
Inc.
.......................................
United
States
25,000
5,443,000
Broadline
Retail
1.5%
a
Amazon.com,
Inc.
...................................
United
States
35,256
9,541,684
Capital
Markets
1.3%
BlackRock,
Inc.
.....................................
United
States
8,000
8,375,040
Diversified
Telecommunication
Services
0.7%
Comcast
Corp.
,
A
...................................
United
States
175,000
4,352,250
Electric
Utilities
0.8%
Xcel
Energy,
Inc.
....................................
United
States
65,000
5,167,500
Energy
Equipment
&
Services
1.3%
SLB
Ltd.
..........................................
United
States
150,000
8,182,500
Food
Products
1.8%
Nestle
SA
.........................................
Switzerland
60,000
6,087,842
Nestle
SA
,
ADR
....................................
Switzerland
50,000
5,072,000
11,159,842
Ground
Transportation
0.7%
Norfolk
Southern
Corp.
...............................
United
States
15,000
4,574,400
Health
Care
Equipment
&
Supplies
2.4%
Medtronic
plc
......................................
United
States
200,000
14,762,000
Health
Care
Providers
&
Services
2.6%
CVS
Health
Corp.
...................................
United
States
32,981
3,000,611
UnitedHealth
Group,
Inc.
..............................
United
States
35,000
13,310,850
16,311,461
Hotels,
Restaurants
&
Leisure
2.3%
McDonald's
Corp.
...................................
United
States
40,000
11,168,000
Starbucks
Corp.
....................................
United
States
30,000
2,974,800
14,142,800
IT
Services
0.7%
Accenture
plc
,
A
....................................
United
States
25,000
4,676,750
Machinery
0.8%
Caterpillar,
Inc.
.....................................
United
States
6,000
5,255,220
Metals
&
Mining
0.2%
Freeport-McMoRan,
Inc.
..............................
United
States
19,962
1,311,703
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
4.8%
Shell
plc
..........................................
United
States
450,000
$
19,014,928
TotalEnergies
SE
...................................
France
130,000
11,351,600
30,366,528
Pharmaceuticals
1.0%
Bristol-Myers
Squibb
Co.
..............................
United
States
36,987
2,114,917
Pfizer,
Inc.
.........................................
United
States
150,000
3,927,000
6,041,917
Semiconductors
&
Semiconductor
Equipment
2.8%
Analog
Devices,
Inc.
.................................
United
States
21,200
8,773,620
Broadcom,
Inc.
.....................................
United
States
20,000
8,935,400
17,709,020
Software
1.4%
Oracle
Corp.
.......................................
United
States
25,000
5,644,500
Salesforce,
Inc.
.....................................
United
States
16,200
3,095,820
8,740,320
Textiles,
Apparel
&
Luxury
Goods
0.4%
NIKE,
Inc.
,
B
.......................................
United
States
50,000
2,311,500
Tobacco
1.9%
Philip
Morris
International,
Inc.
.........................
United
States
67,500
11,973,150
Total
Common
Stocks
(Cost
$
180,917,197
)
...................................
218,348,135
Equity-Linked
Securities
48.1%
Air
Freight
&
Logistics
0.2%
b
Toronto-Dominion
Bank
(The)
into
United
Parcel
Service,
Inc.
,
144A,
10
%
,
8/05/26
................................
United
States
10,000
1,073,977
Banks
1.1%
b
Morgan
Stanley
Finance
LLC
into
JPMorgan
Chase
&
Co.
,
144A,
8
%
,
3/30/27
......................................
United
States
23,000
6,766,264
Biotechnology
1.6%
b
Barclays
Bank
plc
into
AbbVie,
Inc.
,
144A,
8.5
%
,
12/11/26
.....
United
States
11,000
2,401,867
b
Mizuho
Markets
Cayman
LP
into
Amgen,
Inc.
,
144A,
10
%
,
6/15/26
.........................................
United
States
10,400
3,243,840
b
Morgan
Stanley
Finance
LLC
into
Amgen,
Inc.
,
144A,
8
%
,
12/16/26
........................................
United
States
12,500
4,177,328
9,823,035
Broadline
Retail
2.1%
b
Goldman
Sachs
Bank
USA
into
Amazon.com,
Inc.
,
144A,
10
%
,
4/16/27
.........................................
United
States
26,000
6,114,531
b
Toronto-Dominion
Bank
(The)
into
Amazon.com,
Inc.
,
144A,
10
%
,
10/13/26
........................................
United
States
5,500
1,295,552
b
Wells
Fargo
Bank
NA
into
Amazon.com,
Inc.
,
144A,
9
%
,
2/26/27
United
States
25,000
5,660,521
13,070,604
Capital
Markets
0.6%
b
Merrill
Lynch
BV
into
Charles
Schwab
Corp.
(The)
,
144A,
8
%
,
3/03/27
.........................................
United
States
39,000
3,494,954
Chemicals
0.2%
b
BofA
Finance
LLC
into
Albemarle
Corp.
,
144A,
12.5
%
,
8/28/26
.
United
States
5,000
529,089
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Chemicals
(continued)
b
Toronto-Dominion
Bank
(The)
into
Albemarle
Corp.
,
144A,
15
%
,
12/23/26
........................................
United
States
6,884
$
1,038,683
1,567,772
Communications
Equipment
0.8%
b
Morgan
Stanley
Finance
LLC
into
Cisco
Systems,
Inc.
,
144A,
10
%
,
11/23/27
....................................
United
States
45,000
5,301,718
Consumer
Finance
1.0%
b
Barclays
Bank
plc
into
Capital
One
Financial
Corp.
,
144A,
8
%
,
3/10/27
.........................................
United
States
32,000
6,126,392
Consumer
Staples
Distribution
&
Retail
0.7%
b
BNP
Paribas
Issuance
BV
into
Target
Corp.
,
144A,
11
%
,
10/07/26
United
States
16,000
1,707,134
b
Toronto-Dominion
Bank
(The)
into
Target
Corp.
,
144A,
12
%
,
6/30/26
.........................................
United
States
25,000
2,873,281
4,580,415
Diversified
Telecommunication
Services
0.3%
b
Merrill
Lynch
BV
into
Comcast
Corp.
,
144A,
8.5
%
,
6/22/26
.....
United
States
64,923
1,625,373
Electric
Utilities
1.6%
b
BNP
Paribas
Issuance
BV
into
NextEra
Energy,
Inc.
,
144A,
8
%
,
2/10/27
.........................................
United
States
48,000
4,126,974
b
Citigroup
Global
Markets
Holdings,
Inc.
into
NextEra
Energy,
Inc.
,
144A,
9
%
,
10/05/26
................................
United
States
65,000
4,990,573
b
Wells
Fargo
Bank
NA
into
NextEra
Energy,
Inc.
,
144A,
9.5
%
,
10/22/26
........................................
United
States
12,000
1,026,521
10,144,068
Energy
Equipment
&
Services
1.6%
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Halliburton
Co.
,
144A,
10
%
,
1/21/27
................................
United
States
50,000
1,785,605
b
UBS
AG
into
Schlumberger
NV
,
144A,
10
%
,
2/11/27
.........
United
States
55,000
2,844,159
b
Wells
Fargo
Bank
NA
into
Schlumberger
NV
,
144A,
9
%
,
10/02/26
United
States
130,000
5,491,228
10,120,992
Health
Care
Equipment
&
Supplies
0.6%
b
BNP
Paribas
Issuance
BV
into
Medtronic
plc
,
144A,
7.25
%
,
4/27/27
.........................................
United
States
52,266
3,921,010
Health
Care
Providers
&
Services
0.1%
b
Merrill
Lynch
BV
into
UnitedHealth
Group,
Inc.
,
144A,
10
%
,
7/01/26
.........................................
United
States
1,854
694,426
Hotels,
Restaurants
&
Leisure
1.3%
b
Toronto-Dominion
Bank
(The)
into
Starbucks
Corp.
,
144A,
9
%
,
1/27/27
.........................................
United
States
60,000
5,771,944
b
Wells
Fargo
Bank
NA
into
Starbucks
Corp.
,
144A,
9
%
,
8/10/26
.
United
States
25,500
2,528,150
8,300,094
Interactive
Media
&
Services
3.7%
b
BNP
Paribas
Issuance
BV
into
Meta
Platforms,
Inc.
,
144A,
10
%
,
12/29/26
........................................
United
States
8,000
5,069,626
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Alphabet,
Inc.
,
144A,
9
%
,
12/23/26
.....................................
United
States
16,800
5,871,669
b
Merrill
Lynch
BV
into
Alphabet,
Inc.
,
144A,
9
%
,
12/23/26
......
United
States
17,200
6,036,861
b
Mizuho
Markets
Cayman
LP
into
Meta
Platforms,
Inc.
,
144A,
10
%
,
12/07/26
....................................
United
States
1,500
922,929
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Interactive
Media
&
Services
(continued)
b
National
Bank
of
Canada
into
Meta
Platforms,
Inc.
,
144A,
10
%
,
12/29/26
........................................
United
States
8,000
$
5,075,580
22,976,665
IT
Services
5.7%
b
Barclays
Bank
plc
into
Snowflake,
Inc.
,
144A,
12.5
%
,
4/27/27
..
United
States
34,000
5,861,608
b
Citigroup
Global
Markets
Holdings,
Inc.
into
International
Business
Machines
Corp.
,
144A,
8.5
%
,
8/21/26
...........
United
States
13,500
3,587,815
b
J.P.
Morgan
Structured
Products
BV
into
Accenture
plc
,
144A,
10
%
,
4/05/27
.....................................
United
States
4,000
742,251
b
J.P.
Morgan
Structured
Products
BV
into
Accenture
plc
,
144A,
11
%
,
6/02/27
.....................................
United
States
50,000
9,054,556
b
Morgan
Stanley
Finance
LLC
into
International
Business
Machines
Corp.
,
144A,
8
%
,
4/08/27
....................
United
States
30,000
8,154,021
b
UBS
AG
into
Accenture
plc
,
144A,
8
%
,
7/13/26
.............
United
States
12,400
2,352,041
b
Wells
Fargo
Bank
NA
into
International
Business
Machines
Corp.
,
144A,
11
%
,
5/06/27
................................
United
States
25,000
6,184,401
35,936,693
Metals
&
Mining
2.4%
b
Barclays
Bank
plc
into
Freeport-McMoRan,
Inc.
,
144A,
10
%
,
1/27/27
.........................................
United
States
17,000
979,184
b
BNP
Paribas
Issuance
BV
into
Freeport-McMoRan,
Inc.
,
144A,
10
%
,
8/28/26
.....................................
United
States
19,000
922,637
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Freeport-McMoRan,
Inc.
,
144A,
12
%
,
6/09/26
............................
United
States
149,300
6,772,934
b
Morgan
Stanley
Finance
LLC
into
Freeport-McMoRan,
Inc.
,
144A,
10
%
,
11/18/26
....................................
United
States
142,593
6,401,643
15,076,398
Oil,
Gas
&
Consumable
Fuels
0.6%
b
Royal
Bank
of
Canada
into
BP
plc
,
144A,
10
%
,
10/07/26
......
United
States
100,000
3,756,883
Passenger
Airlines
1.2%
b
Goldman
Sachs
Bank
USA
into
Delta
Air
Lines,
Inc.
,
144A,
11
%
,
3/31/27
.........................................
United
States
100,000
7,318,165
Pharmaceuticals
0.4%
b
Barclays
Bank
plc
into
Merck
&
Co.,
Inc.
,
144A,
8.5
%
,
10/02/26
.
United
States
29,000
2,828,486
Semiconductors
&
Semiconductor
Equipment
6.8%
b
Bank
of
America
NA
into
Microchip
Technology,
Inc.
,
144A,
11
%
,
9/03/26
.........................................
United
States
19,651
1,527,922
b
Barclays
Bank
plc
into
Microchip
Technology,
Inc.
,
144A,
10
%
,
6/23/26
.........................................
United
States
16,000
1,361,486
b
Barclays
Bank
plc
into
Micron
Technology,
Inc.
,
144A,
10
%
,
9/08/26
.........................................
United
States
32,500
4,906,087
b
JPMorgan
Chase
Bank
NA
into
Marvell
Technology,
Inc.
,
144A,
12
%
,
1/07/27
.....................................
United
States
55,000
6,097,856
b
Royal
Bank
of
Canada
into
Texas
Instruments,
Inc.
,
144A,
8.5
%
,
8/20/26
.........................................
United
States
12,500
2,689,376
b
Royal
Bank
of
Canada
into
Texas
Instruments,
Inc.
,
144A,
9
%
,
7/21/26
.........................................
United
States
7,000
1,730,036
b
Toronto-Dominion
Bank
(The)
into
Intel
Corp.
,
144A,
10.5
%
,
9/01/26
.........................................
United
States
23,000
733,279
b
Toronto-Dominion
Bank
(The)
into
QUALCOMM,
Inc.
,
144A,
10
%
,
11/25/26
........................................
United
States
4,500
851,130
b
Toronto-Dominion
Bank
(The)
into
QUALCOMM,
Inc.
,
144A,
10
%
,
3/24/27
.........................................
United
States
50,000
7,727,529
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
10
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
b
UBS
AG
into
Marvell
Technology,
Inc.
,
144A,
12
%
,
12/16/26
...
United
States
78,000
$
9,470,237
b
UBS
AG
into
Texas
Instruments,
Inc.
,
144A,
10
%
,
2/24/27
.....
United
States
22,500
5,499,167
42,594,105
Software
8.5%
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Microsoft
Corp.
,
144A,
9
%
,
3/25/27
.................................
United
States
8,000
3,405,187
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Workday,
Inc.
,
144A,
10
%
,
2/24/27
.....................................
United
States
9,450
1,333,077
b
J.P.
Morgan
Structured
Products
BV
into
Microsoft
Corp.
,
144A,
7
%
,
10/15/26
.....................................
United
States
8,000
3,642,770
b
Merrill
Lynch
BV
into
Salesforce,
Inc.
,
144A,
9
%
,
5/19/27
......
United
States
55,000
10,332,508
b
Mizuho
Markets
Cayman
LP
into
Microsoft
Corp.
,
144A,
7.25
%
,
1/11/27
.........................................
United
States
8,500
3,835,987
b
Mizuho
Markets
Cayman
LP
into
Palo
Alto
Networks,
Inc.
,
144A,
10
%
,
4/28/27
.....................................
United
States
45,000
8,729,407
b
Royal
Bank
of
Canada
into
Microsoft
Corp.
,
144A,
8
%
,
4/05/27
.
United
States
6,600
2,758,606
b
Royal
Bank
of
Canada
into
Oracle
Corp.
,
144A,
12.5
%
,
5/12/27
.
United
States
46,000
8,811,579
b
Toronto-Dominion
Bank
(The)
into
Workday,
Inc.
,
144A,
12.5
%
,
6/02/27
.........................................
United
States
60,000
8,362,575
b
Wells
Fargo
Bank
NA
into
Salesforce,
Inc.
,
144A,
9
%
,
6/15/26
..
United
States
12,000
2,306,011
53,517,707
Specialty
Retail
1.2%
b
Goldman
Sachs
Bank
USA
into
Home
Depot,
Inc.
(The)
,
144A,
8.25
%
,
10/19/27
...................................
United
States
13,500
4,315,867
b
J.P.
Morgan
Structured
Products
BV
into
Home
Depot,
Inc.
(The)
,
144A,
8
%
,
10/20/26
................................
United
States
9,000
2,907,659
7,223,526
Technology
Hardware,
Storage
&
Peripherals
2.5%
b
Goldman
Sachs
Bank
USA
into
Dell
Technologies,
Inc.
,
144A,
12.5
%
,
4/14/27
...................................
United
States
38,000
7,972,065
b
Mizuho
Markets
Cayman
LP
into
Dell
Technologies,
Inc.
,
144A,
12
%
,
11/09/26
....................................
United
States
39,000
7,680,371
15,652,436
Textiles,
Apparel
&
Luxury
Goods
1.3%
b
Merrill
Lynch
BV
into
NIKE,
Inc.
,
144A,
10
%
,
2/02/27
.........
United
States
50,000
2,428,562
b
Royal
Bank
of
Canada
into
NIKE,
Inc.
,
144A,
9
%
,
3/19/27
.....
United
States
115,000
5,498,061
7,926,623
Total
Equity-Linked
Securities
(Cost
$
283,032,223
)
............................
301,418,781
Convertible
Preferred
Stocks
15.1%
Aerospace
&
Defense
3.6%
Boeing
Co.
(The)
,
6
%
................................
United
States
315,000
22,717,800
Capital
Markets
4.4%
Ares
Management
Corp.
,
B
,
6.75
%
......................
United
States
650,000
27,254,500
Chemicals
2.5%
Albemarle
Corp.
,
7.25
%
..............................
United
States
225,000
15,567,750
Electric
Utilities
3.6%
NextEra
Energy,
Inc.
,
7.234
%
..........................
United
States
400,000
19,812,000
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
11
See
Abbreviations
on
page
37
.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
(continued)
Electric
Utilities
(continued)
PPL
Corp.
,
7
%
.....................................
United
States
50,000
$
2,395,500
22,207,500
Trading
Companies
&
Distributors
1.0%
a,c,d
QXO,
Inc.
,
C
.......................................
United
States
600
6,529,121
Total
Convertible
Preferred
Stocks
(Cost
$
80,776,217
)
.........................
94,276,671
Total
Long
Term
Investments
(Cost
$
544,725,637
)
.............................
614,043,587
a
Short
Term
Investments
1.2%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
1.2%
e,f
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.579
%
.........................................
United
States
7,620,725
7,620,725
Total
Money
Market
Funds
(Cost
$
7,620,725
)
.................................
7,620,725
Total
Short
Term
Investments
(Cost
$
7,620,725
)
...............................
7,620,725
a
Total
Investments
(Cost
$
552,346,362
)
99.2
%
.................................
$621,664,312
Other
Assets,
less
Liabilities
0.8
%
...........................................
5,024,857
Net
Assets
100.0%
.........................................................
$626,689,169
a
a
a
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2026,
the
aggregate
value
of
these
securities
was
$301,418,781,
representing
48.1%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
5
regarding
fair
value
measurements.
d
See
Note
3
regarding
restricted
securities.
e
See
Note
4
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2026
Franklin
Templeton
SMACS:
Series
H
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
12
a
a
Shares
a
Value
a
Management
Investment
Companies
9.2%
Capital
Markets
9.2%
a
Franklin
Dynamic
Municipal
Bond
ETF
...................................
175,000
$
4,387,250
Total
Management
Investment
Companies
(Cost
$
4,323,956
)
.....................
4,387,250
Warrants
a
a
a
a
Warrants
0.0%
Financial
Services
0.0%
b,c
Brightline
Train
Holdings
West
LLC
,
11/26/35
..............................
1,290
—
Total
Warrants
(Cost
$
–
)
......................................................
—
Principal
Amount
Corporate
Bonds
0.5%
Diversified
Consumer
Services
0.5%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
$
250,000
248,297
Total
Corporate
Bonds
(Cost
$
236,664
)
........................................
248,297
Municipal
Bonds
88.9%
Alabama
3.0%
Black
Belt
Energy
Gas
District
,
Revenue
,
2025
G
,
5
%
,
10/01/35
................
100,000
105,756
Homewood
Educational
Building
Authority
,
CHF
-
Horizons
II
LLC
,
Revenue
,
2024
C
,
5
%
,
10/01/56
.....................................................
555,000
529,599
MidCity
Improvement
District
,
Assessment
Area
,
Special
Assessment
,
2022
,
4.5
%
,
11/01/42
................
150,000
141,001
Assessment
Area
,
Special
Assessment
,
2022
,
4.75
%
,
11/01/49
...............
100,000
89,960
Mobile
County
Industrial
Development
Authority
,
AM/NS
Calvert
LLC
,
Revenue
,
2024
B
,
4.75
%
,
12/01/54
................................................
160,000
150,856
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue
,
2024
A
,
5
%
,
11/01/35
..
405,000
423,011
1,440,183
Arizona
2.6%
d
Maricopa
County
Industrial
Development
Authority
,
Grand
Canyon
University
Obligated
Group
,
Revenue
,
144A,
2024
,
7.375
%
,
10/01/29
..........................
405,000
423,693
d
Sierra
Vista
Industrial
Development
Authority
,
American
Leadership
Academy,
Inc.
,
Revenue
,
144A,
2023
,
5.75
%
,
6/15/58
......
150,000
144,384
Georgetown
Community
Development
Authority
,
Revenue
,
144A,
2021
A
,
5.375
%
,
10/01/56
.......................................................
250,000
199,278
Tempe
Industrial
Development
Authority
,
Tempe
Life
Care
Village
Obligated
Group
,
Revenue
,
2019
,
5
%
,
12/01/50
........
250,000
233,885
Tempe
Life
Care
Village
Obligated
Group
,
Revenue
,
2025
A
,
5.625
%
,
12/01/55
...
250,000
256,989
1,258,229
Arkansas
0.6%
Arkansas
Development
Finance
Authority
,
United
States
Steel
Corp.
,
Revenue
,
2023
,
5.7
%
,
5/01/53
....................................................
150,000
153,954
Fayetteville
Public
Facilities
Board
,
Butterfield
Trail
Village,
Inc.
,
Revenue
,
2026
,
5.5
%
,
12/01/60
........................................................
115,000
116,699
270,653
California
4.2%
e
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
...................................................
130,000
138,079
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
d
California
Community
Housing
Agency
,
Arbors
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
8/01/50
....................
$
275,000
$
260,248
Aster
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
2/01/43
..........
230,000
216,829
Fountains
at
Emerald
Park
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/46
...
195,000
170,411
Verdant
at
Green
Valley
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
8/01/49
.......
105,000
98,188
d,f
California
Municipal
Finance
Authority
,
IH
Parkside
Fairfield
LLC
,
Revenue,
Sub.
Lien
,
144A,
2023
B
,
2.617
%,
9/01/43
.......................................
150,000
119,862
d
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
100,000
90,509
d
CMFA
Special
Finance
Agency
VII
,
Breakwater
Apartments
(The)
,
Revenue
,
144A,
2021
A-2
,
4
%
,
8/01/47
..............................................
195,000
182,944
d
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
125,000
117,264
d
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
100,000
82,868
d
CSCDA
Community
Improvement
Authority
,
Renaissance
at
City
Center
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/51
.............
230,000
220,074
Waterscape
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
9/01/46
................
135,000
115,483
d
Golden
State
Connect
Authority
,
Revenue
,
144A,
2025
,
6.5
%
,
12/01/60
...........
200,000
198,243
2,011,002
Colorado
1.1%
Colorado
Health
Facilities
Authority
,
BSLC
II
Obligated
Group
,
Revenue,
Second
Tier
,
2025
,
5.25
%
,
9/15/45
.........
195,000
200,394
Christian
Living
Neighborhoods
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/38
........................................................
100,000
100,237
Denver
Health
&
Hospital
Authority
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
12/01/39
....
250,000
234,482
535,113
Connecticut
0.2%
Stamford
Housing
Authority
,
TJH
Senior
Living
LLC
Obligated
Group
,
Revenue
,
2025
A
,
Refunding
,
6.5
%
,
10/01/55
.........................................
100,000
103,861
Florida
26.9%
Acacia
Fields
Community
Development
District
,
Special
Assessment
,
2026
,
5.7
%
,
6/15/56
.........................................................
130,000
130,147
Angeline
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.75
%
,
5/01/56
...............................................
130,000
130,616
Avenir
Community
Development
District
,
Parcel
A-18
,
Special
Assessment
,
2024
A
,
6
%
,
5/01/55
......................................................
100,000
101,128
d
Babcock
Ranch
Community
Independent
Special
District
,
Assessment
Area
,
Special
Assessment
,
144A,
2024
,
5.25
%
,
5/01/55
...............................
150,000
148,687
Bella
Tara
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
6.125
%
,
5/01/56
..............................................
100,000
103,106
Big
Cypress
Stewardship
District
,
Assessment
Area
1
,
Special
Assessment
,
2026
,
5.75
%
,
5/01/55
...................................................
150,000
150,675
Bridle
Creek
Community
Development
District
,
Special
Assessment
,
2025
,
6.375
%
,
5/01/56
.........................................................
160,000
164,715
Brightshore
Community
Development
District
,
Assessments
,
Special
Assessment
,
2026
,
5.7
%
,
5/01/57
................................................
145,000
143,440
Buena
Lago
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.55
%
,
5/01/54
....................................
75,000
74,820
d
Capital
Projects
Finance
Authority
,
PRG
-
UnionWest
Properties
LLC
,
Revenue,
Senior
Lien
,
144A,
2024
A-1
,
5
%
,
6/01/58
.....................................
250,000
208,331
Caymas
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2026
,
5.625
%
,
5/01/56
..............................................
160,000
158,879
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
d
Center
Lake
Ranch
West
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2025
,
5.6
%
,
5/01/55
..........................
$
135,000
$
135,306
Chaparral
Palm
Bay
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.5
%
,
5/01/55
.....................................
80,000
79,774
Charlotte
County
Industrial
Development
Authority
,
MSKP
Town
&
Country
Utility
LLC
,
Revenue
,
2025
,
6.125
%
,
10/01/55
.....................................
150,000
155,078
d
County
of
Okaloosa
,
AIR
Force
Enlisted
Village,
Inc.
Obligated
Group
,
Revenue
,
144A,
2025
,
5.75
%
,
5/15/60
...............................................
185,000
187,517
Creekside
Community
Development
District
,
Assessment
Area
2
-
Parcel
C
and
D
,
Special
Assessment
,
2026
,
5.6
%
,
5/01/56
...............................
120,000
119,587
Cypress
Bluff
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.55
%
,
5/01/55
....................................
100,000
100,069
Deering
Park
Stewardship
District
,
DPSD
JV1
No.
1
Assessment
Area
,
Special
Assessment
,
2025
,
6
%
,
5/01/45
.......................................
115,000
121,161
d
East
Ridge
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2026
,
6
%
,
5/01/57
............................................
115,000
115,571
Edgewater
West
Community
Development
District
,
Master
Infrastructure
Bond
Area
,
Special
Assessment
,
2026
,
6
%
,
5/01/41
.................................
150,000
150,024
Epperson
North
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
2024
,
5.6
%
,
5/01/55
.....................................
110,000
109,693
Esplanade
at
Wellen
Park
Community
Development
District
,
Special
Assessment
,
2026
,
5.7
%
,
5/01/56
................................................
100,000
100,268
d
Everlands
Community
Development
District
,
Assessment
Area
2
Phase
2
,
Special
Assessment
,
144A,
2024
,
5.5
%
,
6/15/54
................................
150,000
150,421
Feed
Mill
Community
Development
District
,
Parcel
1
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.875
%
,
5/01/56
...................................
100,000
100,625
Florida
Development
Finance
Corp.
,
d
Mayflower
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/55
............................................
100,000
74,648
Shands
Jacksonville
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
2/01/52
....................................................
85,000
80,370
Fox
Branch
Ranch
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.4
%
,
5/01/55
.....................................
100,000
99,138
d
Gas
Worx
Community
Development
District
,
Special
Assessment
,
144A,
2025
,
6
%
,
5/01/57
.........................................................
150,000
153,294
GIR
East
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.5
%
,
5/01/55
................................................
100,000
97,325
d
Governors
Park
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2026
,
5.8
%
,
5/01/56
................................
150,000
149,917
d
Grace
Groves
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2026
,
5.8
%
,
5/01/57
................................
145,000
146,067
Hammock
Oaks
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.85
%
,
5/01/44
....................................
110,000
113,606
Harvest
Hills
South
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
5.75
%
,
5/01/56
....................................
165,000
163,744
Highland
Park
Community
Development
District
,
Assessments
,
Special
Assessment
,
2026
,
6.125
%
,
5/01/56
..............................................
125,000
127,424
Highland
Trails
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2025
,
5.85
%
,
5/01/56
....................................
100,000
99,945
d
Hillcrest
Preserve
Community
Development
District
,
Special
Assessment
,
144A,
2024
,
5.3
%
,
5/01/54
....................................................
180,000
174,220
Hunt
Club
Grove
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.625
%
,
6/15/54
...................................
75,000
75,852
d
K-Bar
Ranch
III
Community
Development
District
,
Special
Assessment
,
144A,
2025
,
6.125
%
,
5/01/55
...................................................
110,000
114,345
Kindred
Community
Development
District
II
,
Special
Assessment
,
2021
,
3.125
%
,
5/01/41
.........................................................
100,000
89,180
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Kings
Creek
I
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
6
%
,
5/01/55
.......................................
$
100,000
$
101,944
Kingston
One
Community
Development
District
,
Assessment
Area
1
-
2025
Project
,
Special
Assessment
,
2025
,
6
%
,
5/01/57
.................................
130,000
133,045
Kissimmee
Park
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2025
,
6.125
%
,
5/01/56
...................................
100,000
103,106
d
Knightsbridge
Community
Development
District
,
Special
Assessment
,
144A,
2024
,
5.5
%
,
6/15/54
....................................................
175,000
177,513
Lake
Flores
Community
Development
District
,
Assessment
Area
,
Special
Assessment
,
2026
,
5.75
%
,
5/01/56
...............................................
100,000
100,493
Lakeside
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.375
%
,
5/01/54
...................................................
95,000
99,486
Langley
South
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.4
%
,
5/01/55
.....................................
65,000
64,627
Lecanto
Preserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2026
,
5.7
%
,
5/01/56
.....................................
105,000
105,129
Lee
County
Industrial
Development
Authority
,
Shell
Point
Obligated
Group
,
Revenue
,
2024
C
,
5
%
,
11/15/54
...............................................
500,000
489,333
LT
Ranch
Community
Development
District
,
Phase
IIA
Assessment
Area
,
Special
Assessment
,
2022-2
,
5.7
%
,
5/01/53
....................................
100,000
102,227
Marion
Ranch
Community
Development
District
,
Special
Assessment
,
2024
,
5.7
%
,
5/01/44
.........................................................
85,000
87,857
North
AR-1
Pasco
Community
Development
District
,
Assessment
Area
3
,
Special
Assessment
,
2023
,
6
%
,
5/01/54
.......................................
70,000
71,718
North
Loop
Community
Development
District
,
Special
Assessment
,
2023
,
6.625
%
,
5/01/54
.........................................................
130,000
138,790
Northlake
Stewardship
District
,
Rye
Ranch
Pod
B
-
Assessment
Area
2
,
Special
Assessment
,
2026
,
5.7
%
,
5/01/56
.....................................
100,000
100,279
Pacific
Ace
Community
Development
District
,
Special
Assessment
,
2024
,
5.5
%
,
5/01/55
.........................................................
125,000
125,788
Palermo
Community
Development
District
,
Special
Assessment
,
2023
,
5
%
,
6/15/43
.................................
100,000
102,993
Assessment
Area
2
,
Special
Assessment
,
2025
,
5.5
%
,
6/15/55
................
100,000
102,277
Palm
Beach
County
Health
Facilities
Authority
,
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2026
B
,
5.625
%
,
5/15/61
...............................
515,000
518,959
Palm
Coast
Park
Community
Development
District
,
Special
Assessment
,
2023
,
5.6
%
,
5/01/53
.........................................................
100,000
101,217
Parker
Pointe
Community
Development
District
,
Special
Assessment
,
2024
,
5.5
%
,
5/01/44
.........................................................
100,000
102,208
Parkside
Trails
Community
Development
District
,
2025
Project
Area
,
Special
Assessment
,
2025
,
5.55
%
,
5/01/55
....................................
145,000
143,565
Parrish
Lakes
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2023
A
,
5.625
%
,
5/01/53
..................................
90,000
91,327
Pasadena
Ridge
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.375
%
,
5/01/55
...................................
130,000
127,483
Preserve
at
Savannah
Lakes
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.45
%
,
5/01/44
..............................
140,000
144,844
Prosperity
Lakes
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
...................................
160,000
169,920
Quail
Roost
Community
Development
District
,
Expansion
Area
,
Special
Assessment
,
2021
,
4
%
,
12/15/51
................................................
70,000
60,568
Reflection
Bay
Community
Development
District
,
Special
Assessment
,
2025
,
5.875
%
,
5/01/55
.........................................................
160,000
162,718
Regal
Village
Community
Development
District
,
Special
Assessment
,
2024
,
5.5
%
,
5/01/54
.........................................................
145,000
145,300
Ridge
at
Apopka
Community
Development
District
,
Parcel
2
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
...............................................
100,000
100,981
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
River
Hall
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
2023
A
,
6.5
%
,
5/01/54
..............................................
$
105,000
$
110,925
River
Landing
Community
Development
District
,
Assessments
,
Special
Assessment
,
2025
,
5.45
%
,
5/01/55
...............................................
100,000
99,429
d
Saltleaf
Community
Development
District
,
Assessments
,
Special
Assessment
,
144A,
2026
,
6.05
%
,
5/01/57
...............................................
145,000
147,974
d
Saltmeadows
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2025
,
6
%
,
5/01/55
..................................
150,000
154,345
Savanna
Lakes
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.5
%
,
6/15/54
.....................................
135,000
135,561
Sawgrass
Village
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
...............
100,000
101,439
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.375
%
,
11/01/53
.............
155,000
161,995
Schaller
Preserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2026
,
5.625
%
,
5/01/56
...................................
100,000
100,534
d
Seaton
Creek
Reserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2023
,
5.5
%
,
6/15/53
................................
100,000
101,879
Seminole
Palms
Community
Development
District
,
Special
Assessment
,
2023
,
5.5
%
,
5/01/43
.........................................................
80,000
83,349
Solaeris
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2026
,
5.8
%
,
5/01/57
................................................
120,000
120,415
Somerset
Bay
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2026
,
5.8
%
,
5/01/56
.....................................
100,000
100,417
Southern
Groves
Community
Development
District
No.
5
,
Assessment
Area
,
Special
Assessment
,
2026
,
5.7
%
,
5/01/52
.....................................
140,000
140,619
Springs
at
Lake
Alfred
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.6
%
,
5/01/54
.....................................
145,000
145,023
Stonegate
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
.............................
150,000
159,493
Special
Assessment
,
2025
,
5.875
%
,
6/15/55
.............................
125,000
127,756
d
Stuart
Crossing
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2024
,
5.5
%
,
5/01/54
................................
100,000
99,477
d
Sugarloaf
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2026
,
5.625
%
,
12/15/55
........................................
100,000
99,667
Terra
Lago
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2025
,
5.75
%
,
5/01/56
...............................................
100,000
99,379
Tranquility
Community
Development
District
,
Special
Assessment
,
2025
,
5.625
%
,
5/01/55
.........................................................
150,000
148,632
Twisted
Oaks
Pointe
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
5.375
%
,
5/01/43
..............
100,000
104,294
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.125
%
,
5/01/54
..............
75,000
77,761
Two
Rivers
West
Community
Development
District
,
Special
Assessment
,
2024
,
5.875
%
,
5/01/54
...................................................
75,000
76,173
V-Dana
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2025
,
5.55
%
,
5/01/55
...............................................
90,000
90,125
Waterset
South
Community
Development
District
,
Assessment
Area
,
Special
Assessment
,
2026
,
5.65
%
,
5/01/56
....................................
175,000
176,930
Wellness
Ridge
Community
Development
District
,
d
Assessment
Area
2
,
Special
Assessment
,
144A,
2024
,
5.2
%
,
6/15/55
...........
100,000
98,510
Assessment
Area
3
,
Special
Assessment
,
2026
,
5.625
%
,
6/15/56
..............
120,000
121,007
d
West
Port
East
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2025
,
6
%
,
5/01/55
..................................
120,000
122,946
d
West
Villages
Improvement
District
,
Special
Assessment
,
144A,
2025
,
5.5
%
,
5/01/55
..........................
145,000
142,942
Unit
of
Development
No.
12
Assessment
Area
2
,
Special
Assessment
,
144A,
2026
,
5.65
%
,
5/01/56
..................................................
100,000
99,944
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Westwood
of
Pasco
Community
Development
District
,
Assessments
,
Special
Assessment
,
2023
,
5.625
%
,
5/01/53
...................................
$
130,000
$
132,518
Winding
Oaks
Community
Development
District
,
Special
Assessment
,
2024
,
5.7
%
,
5/01/55
.........................................................
100,000
99,999
d
Woodland
Preserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2025
,
5.5
%
,
5/01/55
................................
100,000
99,718
12,855,583
Georgia
0.2%
Georgia
Housing
&
Finance
Authority
,
Revenue
,
2025
C
,
5.125
%
,
12/01/50
........
100,000
102,503
Illinois
7.8%
Chicago
Board
of
Education
,
GO
,
2023
A
,
5.875
%
,
12/01/47
........................................
250,000
254,621
GO
,
2025
A
,
5.75
%
,
12/01/50
.........................................
250,000
252,161
GO
,
2025
A
,
6.25
%
,
12/01/50
.........................................
100,000
105,331
GO
,
2025
B
,
Refunding
,
6
%
,
12/01/44
..................................
315,000
333,879
Dedicated
Capital
Improvement
Tax
,
Revenue
,
2023
,
5.75
%
,
4/01/48
...........
225,000
235,480
City
of
Chicago
,
GO
,
2025
A
,
6
%
,
1/01/50
.................................
350,000
368,337
Illinois
Finance
Authority
,
Westminster
Village,
Inc.
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
5/01/48
.............................................
100,000
87,847
Metropolitan
Pier
&
Exposition
Authority
,
State
of
Illinois
McCormick
Place
Expansion
Project
Fund
,
Revenue
,
2024
B
,
Refunding
,
5
%
,
6/15/53
....................
500,000
504,351
State
of
Illinois
,
GO
,
2024
B
,
5.25
%
,
5/01/47
...............................
1,500,000
1,560,684
3,702,691
Indiana
1.2%
d
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
A
,
5
%
,
8/01/41
..
100,000
88,490
Indiana
Finance
Authority
,
CHF
-
Tippecanoe
LLC
,
Revenue
,
2023
A
,
5.375
%
,
6/01/64
350,000
350,411
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
Senior
Lien
,
2023
E
,
6.125
%
,
3/01/57
...................................................
110,000
114,863
553,764
Iowa
1.3%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC
,
Revenue
,
2022
,
Pre-Refunded
,
5
%
,
12/01/50
..........
235,000
266,316
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
5/15/36
....
100,000
100,035
Presbyterian
Homes
Mill
Pond
Apartment,
Inc.
,
Revenue
,
2025
,
5.875
%
,
10/01/65
.
125,000
127,465
Iowa
Higher
Education
Loan
Authority
,
University
of
Dubuque
,
Revenue
,
2025
,
6
%
,
10/01/55
........................................................
130,000
135,646
629,462
Louisiana
2.2%
Calcasieu
Parish
Memorial
Hospital
Service
District
,
Southwest
Louisiana
Healthcare
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/39
............
100,000
96,822
Lakeshore
Villages
Master
Community
Development
District
,
Special
Assessment
,
2025
,
6
%
,
6/01/54
.................................................
170,000
176,123
d
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
Parish
of
St.
Martin
,
Revenue
,
144A,
2019
,
4.4
%
,
11/01/44
...........
135,000
131,612
Louisiana
Public
Facilities
Authority
,
d
Acadiana
Renaissance
Charter
Academy
,
Revenue
,
144A,
2025
,
6
%
,
6/15/59
....
100,000
100,982
Calcasieu
Bridge
Partners
LLC
,
Revenue,
Senior
Lien
,
2024
,
5.5
%
,
9/01/59
......
195,000
198,736
Calcasieu
Bridge
Partners
LLC
,
Revenue,
Senior
Lien
,
2024
,
5.75
%
,
9/01/64
.....
330,000
341,685
1,045,960
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
0.9%
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2020
,
4.25
%
,
7/01/50
$
170,000
$
151,970
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2022
A
,
6
%
,
7/01/58
75,000
79,434
d
Town
of
La
Plata
,
Heritage
Green
Special
Taxing
District
,
Special
Tax
,
144A,
2023
A
,
6.5
%
,
2/15/53
....................................................
190,000
192,692
424,096
Michigan
1.0%
City
of
Detroit
,
GO
,
2023
C
,
6
%
,
5/01/43
..................................
100,000
111,457
Grand
Rapids
Economic
Development
Corp.
,
Michigan
Christian
Home
Obligated
Group
,
Revenue
,
2025
A
,
Refunding
,
6
%
,
11/01/50
........................
100,000
100,577
Michigan
Finance
Authority
,
Provident
Group
-
HFH
Energy
LLC
,
Revenue
,
2024
,
4.375
%
,
2/28/54
...................................................
150,000
138,651
Michigan
State
Housing
Development
Authority
,
Revenue
,
2025
C
,
5.05
%
,
6/01/51
..
150,000
152,251
502,936
Minnesota
0.2%
City
of
Apple
Valley
,
PHS
Apple
Valley
Senior
Housing,
Inc.
,
Revenue
,
2021
,
4
%
,
9/01/36
.........................................................
105,000
103,437
Nevada
0.5%
City
of
Las
Vegas
,
Special
Improvement
District
No.
819
,
Special
Assessment
,
2025
,
5.5
%
,
6/01/55
....................................................
150,000
153,414
Henderson
Local
Improvement
Districts
,
Local
Improvement
District
No.
T-22
,
Special
Assessment
,
2023
,
5.25
%
,
3/01/53
....................................
95,000
95,400
248,814
New
Hampshire
1.8%
New
Hampshire
Business
Finance
Authority
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
C
,
5.25
%
,
7/01/49
355,000
355,663
Greater
Raleigh
Area
Christian
Education,
Inc.
,
Revenue
,
2025
,
6
%
,
8/01/65
.....
250,000
250,768
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
A
,
5.25
%
,
7/01/48
........
250,000
253,586
860,017
New
York
5.3%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-2
,
4
%
,
11/15/41
..........
475,000
465,390
New
York
City
Housing
Development
Corp.
,
8
Spruce
NY
Owner
LLC
,
Revenue
,
2024
,
F
,
Refunding
,
5.25
%
,
12/15/31
........................................
250,000
257,765
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4
%
,
10/01/30
.........................
100,000
101,960
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4.375
%
,
10/01/45
.....................
465,000
445,347
JFK
International
Air
Terminal
LLC
,
Revenue
,
2022
,
5
%
,
12/01/41
.............
185,000
192,714
JFK
NTO
LLC
,
Revenue
,
2023
,
6
%
,
6/30/54
..............................
35,000
36,492
JFK
NTO
LLC
,
Revenue
,
2024
,
5.5
%
,
6/30/60
............................
910,000
921,943
d
Oneida
Indian
Nation
of
New
York
,
Revenue
,
144A,
2024
B
,
6
%
,
9/01/43
..........
100,000
108,385
2,529,996
Ohio
0.9%
Ohio
Higher
Educational
Facility
Commission
,
Cleveland
Institute
of
Art
(The)
,
Revenue
,
5.5
%
,
12/01/53
............................................
200,000
183,542
Ohio
Housing
Finance
Agency
,
Revenue,
Sub.
Lien
,
2023
C
,
8
%
,
8/01/34
.........
100,000
104,829
Summit
County
Development
Finance
Authority
,
UAkronPark,
Inc.
,
Revenue
,
2023
,
6
%
,
12/01/58
........................................................
125,000
133,183
421,554
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oklahoma
0.3%
Tulsa
Municipal
Airport
Trust
Trustees
,
American
Airlines,
Inc.
,
Revenue
,
2025
,
Refunding
,
6.25
%
,
12/01/40
..........................................
$
135,000
$
149,143
Pennsylvania
2.4%
d
Allentown
Commercial
and
Industrial
Development
Authority
,
Executive
Education
Academy
Charter
School
,
Revenue
,
144A,
2024
,
Refunding
,
5
%
,
7/01/59
........
250,000
227,350
Berks
County
Municipal
Authority
(The)
,
Tower
Health
Obligated
Group
,
Revenue
,
2024
A-1
,
8
%
,
6/30/34
..............
18,000
18,340
Tower
Health
Obligated
Group
,
Revenue
,
2024
A-2
,
6
%
,
6/30/34
..............
8,000
8,489
Tower
Health
Obligated
Group
,
Revenue
,
2024
A-3
,
5
%
,
6/30/39
..............
120,000
112,428
f
Tower
Health
Obligated
Group
,
Revenue
,
2024
B-1
,
1.354
%,
6/30/44
...........
59,000
44,455
Montgomery
County
Higher
Education
and
Health
Authority
,
Thomas
Jefferson
University
Obligated
Group
,
Revenue
,
2022
B
,
Refunding
,
5
%
,
5/01/57
.........
720,000
722,359
1,133,421
Rhode
Island
0.8%
Rhode
Island
Health
and
Educational
Building
Corp.
,
PRG
-
RI
Properties
LLC
,
Revenue
,
2025
A
,
AG
Insured
,
5
%
,
7/01/55
..........
230,000
230,819
PRG
-
RI
Properties
LLC
,
Revenue
,
2025
B
,
AG
Insured
,
5.625
%
,
7/01/65
.......
150,000
152,988
383,807
Texas
11.8%
d
Arlington
Higher
Education
Finance
Corp.
,
BASIS
Texas
Charter
Schools,
Inc.
,
Revenue
,
144A,
2024
,
4.875
%
,
6/15/59
......
100,000
89,903
BASIS
Texas
Charter
Schools,
Inc.
,
Revenue
,
144A,
2025
,
Refunding
,
5.875
%
,
6/15/65
........................................................
150,000
151,893
d
City
of
Anna
,
Woods
at
Lindsey
Place
(The)
Public
Improvement
District
Area
1
,
Special
Assessment
,
144A,
2023
,
5.875
%
,
9/15/53
.........................
116,000
119,785
d
City
of
Aransas
Pass
,
Aransas
Oaks
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2026
,
6
%
,
9/01/56
.......................
100,000
100,257
d
City
of
Austin
,
Whisper
Valley
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2022
,
5.5
%
,
11/01/51
..........................
100,000
101,516
d
City
of
Celina
,
Lakes
at
Mustang
Ranch
Public
Improvement
District
Phases
8-9
,
Special
Assessment
,
144A,
2025
,
5.625
%
,
9/01/55
.............................
150,000
150,150
Pravin
Public
Improvement
District
,
Special
Assessment
,
144A,
2023
,
6.75
%
,
9/01/53
100,000
100,836
d
City
of
Dayton
,
Special
Assessment
,
144A,
2025
,
5.5
%
,
9/01/55
................
102,000
102,633
City
of
Dripping
Springs
,
Special
Assessment
,
2025
,
5.625
%
,
9/01/55
............
125,000
125,217
d
City
of
Ennis
,
Special
Assessment
,
144A,
2025
,
5.5
%
,
9/15/55
.................
100,000
101,100
d
City
of
Fate
,
Williamsburg
Public
Improvement
District
No.
1
Phase
3B
,
Special
Assessment
,
144A,
2023
,
5.375
%
,
8/15/53
...............................
100,000
101,147
City
of
Houston
Airport
System
,
United
Airlines,
Inc.
,
Revenue
,
2024
B
,
5.5
%
,
7/15/39
350,000
372,397
d
City
of
Hutto
,
Cottonwood
Creek
Public
Improvement
District
Improvement
Area
No.
3
,
Special
Assessment
,
144A,
2026
,
5.625
%
,
9/01/56
.............................
138,000
136,804
Emory
Crossing
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.625
%
,
9/01/58
.............................
115,000
116,606
Prairie
Winds
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2026
,
5.75
%
,
9/01/61
..............................
100,000
100,080
d
City
of
Josephine
,
Public
Improvement
District
No.
1
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2026
,
5.75
%
,
9/15/56
...............................
107,000
107,307
d
City
of
Kyle
,
6
Creeks
Public
Improvement
District
Improvement
Area
No.
5
,
Special
Assessment
,
144A,
2025
,
5.375
%
,
9/01/50
...............................
141,000
142,020
City
of
Lavon
,
Elevon
Public
Improvement
District
Improvement
Area
No.
3-5
,
Special
Assessment
,
2025
,
5.75
%
,
9/15/55
.............................................
100,000
100,673
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
City
of
Lavon,
(continued)
d
Lakepointe
Public
Improvement
District
,
Special
Assessment
,
144A,
2022
,
6.125
%
,
9/15/52
........................................................
$
200,000
$
208,731
City
of
Liberty
,
Liberty
Ranch
Public
Improvement
District
,
Special
Assessment
,
2026
,
5.875
%
,
9/01/56
...................................................
128,000
128,675
City
of
Lockhart
,
Seawillow
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
2026
,
6.125
%
,
9/01/56
.............................
100,000
100,824
d
City
of
Manor
,
EntradenGlen
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2025
,
7
%
,
9/15/55
............................
100,000
105,540
d
City
of
Mclendon-Chisholm
,
Sonoma
Public
Improvement
District
Improvement
Area
No.
4
,
Special
Assessment
,
144A,
2022
,
5.75
%
,
9/15/52
....................
135,000
136,348
City
of
Mesquite
,
Solterra
Public
Improvement
District
Improvement
Area
A-2-A-4
,
Special
Assessment
,
2025
,
5.75
%
,
9/01/55
..............................
143,000
143,658
City
of
Princeton
,
d
Special
Assessment
,
144A,
2026
,
5.625
%
,
9/01/56
.........................
100,000
99,992
d
Southbridge
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2024
,
5.5
%
,
9/01/54
...............................
132,000
131,786
Windmore
Public
Improvement
District
Improvement
Area
No.
3
,
Special
Assessment
,
2025
,
5.625
%
,
9/01/55
..................................
195,000
196,725
d
City
of
Rowlett
,
Trails
at
Cottonwood
Creek
Public
Improvement
District
Neighborhood
Improvement
No.
2-3
,
Special
Assessment
,
144A,
2026
,
5.75
%
,
9/15/56
........
111,000
110,915
d
City
of
Sachse
,
Sachse
Public
Improvement
District
No.
1
,
Special
Assessment
,
144A,
2022
,
7
%
,
9/15/52
.................................................
200,000
215,660
d
City
of
Tomball
,
Raburn
Reserve
Public
Improvement
District
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.75
%
,
9/15/52
...............................
112,000
114,794
d
County
of
Bastrop
,
Double
Eagle
Ranch
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2024
,
5.25
%
,
9/01/44
....................
105,000
107,906
d
County
of
Denton
,
Green
Meadows
Public
Improvement
District
Major
Improvement
Area
,
Special
Assessment
,
144A,
2025
,
6.125
%
,
12/31/55
............................
100,000
103,481
Tabor
Ranch
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment,
Senior
Lien
,
144A,
2024
A
,
5.625
%
,
12/31/54
.................
106,000
106,805
d
County
of
Hays
,
La
Cima
Public
Improvement
District
,
Special
Assessment
,
144A,
2020
,
3.25
%
,
9/15/30
...............................................
100,000
94,984
County
of
Medina
,
Viera
Public
Improvement
District
1
Improvement
Area
No.
1
Project
,
Special
Assessment
,
2026
,
5.75
%
,
9/01/56
........................
150,000
150,277
County
of
Montgomery
,
Crockett
Meadows
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
2025
,
5.5
%
,
9/15/54
......................
123,000
123,272
d
East
Waller
County
Management
District
,
Sofi
Lakes
Sections
1
&
2
Assessments
,
Special
Assessment
,
144A,
2025
,
6.25
%
,
9/15/55
.........................
131,000
134,846
EP
Cimarron
Ventanas
PFC
,
Revenue
,
2024
,
Refunding
,
4.125
%
,
12/01/39
........
150,000
149,183
Harris
County
Municipal
Utility
District
No.
540
,
GO
,
2022
,
5.5
%
,
9/01/49
..........
100,000
95,798
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-College
Station
Properties
LLC
,
Revenue
,
A
,
5
%
,
7/01/47
..............
90,000
86,513
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/39
.......................................................
85,000
85,438
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue,
Second
Tier,
Sub.
Lien
,
2019
B
,
5.5
%
,
12/01/54
.......................................
180,000
169,559
d,g
Travis
County
Development
Authority
,
Turner's
Crossing
Public
Improvement
District
Improvement
Area
No.
3
,
Special
Assessment
,
144A,
2026
,
5.75
%
,
9/01/56
......
145,000
145,413
Walden
Pond
Fresh
Water
Supply
District
,
GO
,
2022
,
6.25
%
,
9/01/47
............
45,000
45,517
5,612,964
Utah
0.8%
Utah
Infrastructure
Agency
,
Revenue
,
2025
,
5.25
%
,
10/15/49
..................
375,000
375,208
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
0.4%
Washington
State
Housing
Finance
Commission
,
Eastside
Retirement
Association
Obligated
Group
,
Revenue
,
2023
A
,
Refunding
,
5
%
,
7/01/48
........................................................
$
120,000
$
120,038
d
Presbyterian
Retirement
Communities
Northwest
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
1/01/55
..............................................
100,000
92,225
212,263
Wisconsin
4.2%
Public
Finance
Authority
,
Campus
Real
Estate
Holding
Corp.
LLC
,
Revenue
,
2025
A
,
Refunding
,
5.5
%
,
6/01/55
310,000
312,187
d
Foundation
Academy
Charter
School
A
NJ
Nonprofit
Corp.
,
Revenue
,
144A,
2024
,
5
%
,
7/01/60
....................................................
300,000
270,446
d
Friends
Homes
Obligated
Group
,
Revenue
,
144A,
2019
,
Refunding
,
5
%
,
9/01/49
..
125,000
121,778
KSU
Bixby
Real
Estate
Foundation
LLC
,
Revenue,
Sub.
Lien
,
2025
B
,
5.5
%
,
6/15/55
100,000
103,376
NC
A&T
Real
Estate
Foundation
LLC
,
Revenue
,
2024
A
,
5.25
%
,
6/01/54
........
200,000
200,292
RED
River
Valley
Alliance
LLC
,
Revenue
,
2021
,
4
%
,
9/30/51
.................
345,000
290,954
SR
400
Peach
Partners
LLC
,
Revenue,
Senior
Lien
,
2025
,
6.5
%
,
12/31/65
.......
100,000
111,067
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2025
,
Refunding
,
5.5
%
,
6/15/55
...
100,000
96,475
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2025
,
Refunding
,
5.25
%
,
6/15/65
..
100,000
91,038
Wisconsin
Health
&
Educational
Facilities
Authority
,
PHW
Menomonee
Falls,
Inc.
,
Revenue
,
2024
,
6.125
%
,
10/01/59
..............
100,000
104,025
Wisconsin
Masonic
Home
Obligated
Group
,
Revenue
,
2024
A
,
5.75
%
,
8/15/54
....
275,000
284,971
1,986,609
U.S.
Territories
6.3%
District
of
Columbia
0.5%
District
of
Columbia
,
International
School
Obligated
Group
,
Revenue
,
2019
,
5
%
,
7/01/49
............
140,000
140,031
Plenary
Infrastructure
DC
LLC
,
Revenue
,
2022
A
,
5.5
%
,
8/31/33
..............
100,000
111,521
251,552
Puerto
Rico
5.8%
Commonwealth
of
Puerto
Rico
,
GO
,
2022
A-1
,
4
%
,
7/01/41
..........................................
350,382
333,946
GO
,
2022
A-1
,
4
%
,
7/01/46
..........................................
296,826
263,261
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
79,782
78,289
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
2,102,000
2,077,184
2,752,680
Total
U.S.
Territories
....................................................................
3,004,232
Total
Municipal
Bonds
(Cost
$
41,797,557
)
......................................
42,457,501
Total
Long
Term
Investments
(Cost
$
46,358,177
)
................................
47,093,048
a
a
a
a
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
22
See
Abbreviations
on
page
37
.
Short
Term
Investments
1.0%
a
a
Principal
Amount
a
Value
Municipal
Bonds
1.0%
New
York
1.0%
h
City
of
New
York
,
GO
,
2014
I-3
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.75
%
,
3/01/44
.........................................................
$
500,000
$
500,000
Total
Municipal
Bonds
(Cost
$
500,000
)
.........................................
500,000
Total
Short
Term
Investments
(Cost
$
500,000
)
..................................
500,000
a
Total
Investments
(Cost
$
46,858,177
)
99.6
%
....................................
$47,593,048
Other
Assets,
less
Liabilities
0.4
%
.............................................
149,548
Net
Assets
100.0%
...........................................................
$47,742,596
a
See
Note
4
regarding
investments
in
affiliated
management
investment
companies.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
5
regarding
fair
value
measurements.
c
Non-income
producing.
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
May
31,
2026,
the
aggregate
value
of
these
securities
was
$10,616,715,
representing
22.2%
of
net
assets.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
f
The
rate
shown
represents
the
yield
at
period
end.
g
Security
purchased
on
a
when-issued
basis.
h
Variable
rate
demand
notes
(VRDN)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
pay-
ment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2026
Franklin
Templeton
SMACS:
Series
I
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
23
a
a
Shares
a
Value
a
Common
Stocks
0.3%
Banks
0.3%
Bank
of
America
Corp.
...............................................
45,000
$
2,322,000
Total
Common
Stocks
(Cost
$
1,242,963
)
.......................................
2,322,000
a
Equity-Linked
Securities
0.0%
†
Energy
Equipment
&
Services
0.0%
†
a
Citigroup
Global
Markets
Holdings,
Inc.
into
Halliburton
Co.
,
144A,
10
%
,
1/21/27
....
6,000
214,272
Total
Equity-Linked
Securities
(Cost
$
196,320
)
..................................
214,272
Principal
Amount
a
a
a
a
Corporate
Bonds
79.6%
Aerospace
&
Defense
1.9%
a
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
8/15/28
..............................
$
1,500,000
1,520,391
Senior
Secured
Note
,
144A,
6.875
%
,
12/15/30
............................
2,500,000
2,579,062
Senior
Secured
Note
,
144A,
6.625
%
,
3/01/32
.............................
8,000,000
8,238,265
Senior
Sub.
Note
,
144A,
6.75
%
,
1/31/34
.................................
4,250,000
4,360,288
16,698,006
Automobile
Components
0.7%
a
Dexko
Global,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
4/15/32
........................
7,000,000
6,058,080
Automobiles
0.2%
a
Rivian
Holdings
LLC
/
Rivian
LLC
/
Rivian
Automotive
LLC
,
Senior
Secured
Note
,
144A,
10
%
,
1/15/31
................................................
2,000,000
1,973,391
Banks
1.8%
Bank
of
America
Corp.
,
b
Junior
Sub.
Bond
,
6.25%
to
7/25/30,
FRN
thereafter
,
Perpetual
...............
4,000,000
4,062,639
Sub.
Bond
,
5.425%
to
8/14/34,
FRN
thereafter
,
8/15/35
.....................
50,000
50,244
Barclays
plc
,
b
Junior
Sub.
Bond
,
7.625%
to
9/14/35,
FRN
thereafter
,
Perpetual
...............
2,000,000
2,107,930
Sub.
Bond
,
7.119%
to
6/26/33,
FRN
thereafter
,
6/27/34
.....................
200,000
218,990
b
Citigroup,
Inc.
,
GG
,
Junior
Sub.
Bond
,
6.875%
to
8/14/30,
FRN
thereafter
,
Perpetual
.
5,000,000
5,103,725
Fifth
Third
Bancorp
,
Senior
Note
,
6.339%
to
7/26/28,
FRN
thereafter
,
7/27/29
......
50,000
51,779
Wells
Fargo
&
Co.
,
b
Junior
Sub.
Bond
,
6.85%
to
9/14/29,
FRN
thereafter
,
Perpetual
...............
4,000,000
4,148,092
Senior
Bond
,
6.491%
to
10/22/33,
FRN
thereafter
,
10/23/34
..................
100,000
108,309
15,851,708
Biotechnology
0.5%
a
Genmab
A/S
/
Genmab
Finance
LLC
,
Senior
Note
,
144A,
7.25
%
,
12/15/33
....................................
1,250,000
1,302,326
Senior
Secured
Note
,
144A,
6.25
%
,
12/15/32
.............................
2,750,000
2,803,609
4,105,935
Building
Products
0.6%
a
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
........................................................
2,000,000
2,047,207
a
Quikrete
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.375
%
,
3/01/32
............
3,000,000
3,056,787
5,103,994
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Capital
Markets
1.2%
Blackstone
Private
Credit
Fund
,
Senior
Note
,
6
%
,
1/29/32
.....................
$
5,000,000
$
4,943,388
Charles
Schwab
Corp.
(The)
,
Senior
Note
,
5.643%
to
5/18/28,
FRN
thereafter
,
5/19/29
50,000
51,157
b
Goldman
Sachs
Group,
Inc.
(The)
,
Z
,
Junior
Sub.
Bond
,
6.85%
to
2/09/30,
FRN
thereafter
,
Perpetual
...............................................
5,000,000
5,131,300
Morgan
Stanley
,
Senior
Bond
,
6.627%
to
10/31/33,
FRN
thereafter
,
11/01/34
..................
100,000
109,226
Sub.
Bond
,
5.948%
to
1/18/33,
FRN
thereafter
,
1/19/38
.....................
50,000
51,750
10,286,821
Chemicals
4.8%
a
ARC
Falcon
I,
Inc.
/
Arclin
USA
LLC
/
New
Arclin
US
Holding
Corp.
,
Senior
Secured
Note
,
144A,
9.75
%
,
3/01/33
..........................................
4,000,000
3,870,100
Celanese
US
Holdings
LLC
,
Senior
Bond
,
7.379
%
,
7/15/32
........................................
2,000,000
2,103,912
Senior
Bond
,
7.7
%
,
11/15/33
.........................................
3,500,000
3,761,744
Senior
Note
,
7.55
%
,
11/15/30
.........................................
1,000,000
1,064,584
a
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
................
3,500,000
3,723,216
a
SCIH
Salt
Holdings,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
5/01/29
..................
6,000,000
5,942,391
a
Tronox,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
3/15/29
....................................
15,000,000
11,959,918
Senior
Secured
Note
,
144A,
9.125
%
,
9/30/30
.............................
10,000,000
10,115,660
42,541,525
Commercial
Services
&
Supplies
0.7%
c
,d
BX
Frontier
Member
II
LLC
,
6.1
%
,
12/31/60
................................
3,808,177
3,808,177
a
RR
Donnelley
&
Sons
Co.
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/01/29
...........
2,500,000
2,594,050
6,402,227
Consumer
Finance
0.4%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond
,
5.3
%
,
1/19/34
.........................................................
200,000
200,188
Ford
Motor
Credit
Co.
LLC
,
Senior
Note
,
7.2
%
,
6/10/30
.......................
3,000,000
3,181,838
a
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note
,
144A,
6.4
%
,
3/26/29
............
50,000
51,626
3,433,652
Containers
&
Packaging
4.7%
a
Ardagh
Group
SA
,
e
Secured
Note
,
144A,
PIK,
12
%
,
12/01/30
................................
6,000,000
5,383,550
Senior
Secured
Note
,
144A,
9.5
%
,
12/01/30
..............................
7,315,000
7,815,346
a
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note
,
144A,
4
%
,
9/01/29
.......................................
1,000,000
949,360
a
Clydesdale
Acquisition
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/15/32
..
3,500,000
3,367,620
a
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note
,
144A,
9.25
%
,
4/15/30
...................................
12,000,000
11,508,938
Senior
Secured
Note
,
144A,
7.875
%
,
4/15/30
.............................
5,500,000
5,559,658
a
Sword
Purchaser
LLC
,
Senior
Secured
Note
,
144A,
8.25
%
,
4/15/33
.............
7,500,000
7,730,572
42,315,044
Diversified
REITs
0.0%
†
a
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Bond
,
144A,
4.625
%
,
12/01/29
.....
50,000
49,205
Diversified
Telecommunication
Services
5.7%
a
APLD
ComputeCo
LLC
,
Senior
Secured
Note
,
144A,
9.25
%
,
12/15/30
............
3,500,000
3,780,081
a
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
144A,
5.125
%
,
5/01/27
...................................
1,538,000
1,537,762
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Telecommunication
Services
(continued)
a
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.,
(continued)
Senior
Note
,
144A,
7
%
,
2/01/33
.......................................
$
18,000,000
$
17,606,339
a
Cipher
Compute
LLC
,
Senior
Secured
Note
,
144A,
7.125
%
,
11/15/30
............
3,500,000
3,652,954
a
Connect
Holding
II
LLC
,
Senior
Secured
Note
,
144A,
10.5
%
,
4/03/31
.............
5,500,000
5,603,411
a
PR
RNO
Property
Owner
1
LLC
,
Senior
Secured
Note
,
144A,
6.5
%
,
5/01/31
.......
7,000,000
7,013,650
a
RD
Michigan
Property
Owner
I
LLC
,
Senior
Secured
Bond
,
144A,
7.5
%
,
3/30/45
....
5,000,000
5,012,553
Verizon
Communications,
Inc.
,
Junior
Sub.
Bond
,
6.2%
to
5/13/36,
FRN
thereafter
,
5/14/56
.........................................................
3,000,000
3,046,761
a
WULF
Compute
LLC
,
Senior
Secured
Note
,
144A,
7.75
%
,
10/15/30
.............
3,500,000
3,679,708
50,933,219
Electric
Utilities
4.3%
a
NRG
Energy,
Inc.
,
Senior
Bond
,
144A,
6.25
%
,
11/01/34
...................................
3,000,000
3,027,555
Senior
Bond
,
144A,
6
%
,
1/15/36
.......................................
10,000,000
9,939,721
Senior
Bond
,
144A,
6.125
%
,
5/15/36
...................................
10,000,000
9,983,746
Senior
Note
,
144A,
6
%
,
2/01/33
.......................................
3,000,000
3,023,899
Senior
Secured
Bond
,
144A,
7
%
,
3/15/33
................................
50,000
54,300
Pacific
Gas
and
Electric
Co.
,
Senior
Bond
,
6.4
%
,
6/15/33
.....................
50,000
53,225
PG&E
Corp.
,
Senior
Secured
Note
,
5
%
,
7/01/28
............................
50,000
49,786
Southern
Co.
(The)
,
Junior
Sub.
Bond
,
6%
to
3/31/33,
FRN
thereafter
,
4/01/58
.....
7,500,000
7,553,640
a
Vistra
Operations
Co.
LLC
,
Senior
Bond
,
144A,
6.95
%
,
10/15/33
...................................
50,000
54,452
Senior
Note
,
144A,
6.875
%
,
4/15/32
....................................
4,000,000
4,164,341
37,904,665
Electrical
Equipment
0.0%
†
Regal
Rexnord
Corp.
,
Senior
Note
,
6.05
%
,
4/15/28
..........................
50,000
51,148
Energy
Equipment
&
Services
0.8%
a
Transocean
International
Ltd.
,
Senior
Note
,
144A,
8.5
%
,
5/15/31
................
2,500,000
2,642,388
a
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
....................................
2,384,000
2,427,696
Senior
Note
,
144A,
6.75
%
,
10/15/33
....................................
2,000,000
2,059,082
7,129,166
Entertainment
0.0%
†
a
Netflix,
Inc.
,
Senior
Bond
,
144A,
5.375
%
,
11/15/29
..........................
100,000
102,964
Food
Products
0.2%
JBS
NV
/
JBS
USA
Foods
Group
Holdings,
Inc.
/
JBS
USA
Food
Co.
Holdings
,
Senior
Note
,
5.75
%
,
4/01/33
...............................................
50,000
51,445
a
Post
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
2/15/32
................
2,000,000
2,034,278
2,085,723
Ground
Transportation
0.0%
†
a
Ashtead
Capital,
Inc.
,
Senior
Bond
,
144A,
5.95
%
,
10/15/33
....................
200,000
208,046
Health
Care
Equipment
&
Supplies
0.6%
a
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....................
5,000,000
4,994,131
Health
Care
Providers
&
Services
16.7%
a
CHS/Community
Health
Systems,
Inc.
,
144A,
10.75
%
,
6/15/33
..............................................
17,500,000
18,735,797
Secured
Note
,
144A,
6.875
%
,
4/15/29
..................................
15,000,000
14,852,502
Secured
Note
,
144A,
6.125
%
,
4/01/30
..................................
35,000,000
31,857,563
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
Providers
&
Services
(continued)
a
CHS/Community
Health
Systems,
Inc.,
(continued)
Senior
Secured
Note
,
144A,
10.875
%
,
1/15/32
............................
$
12,800,000
$
13,807,898
Senior
Secured
Note
,
144A,
9.75
%
,
1/15/34
..............................
12,500,000
13,127,125
CVS
Health
Corp.
,
Junior
Sub.
Bond
,
6.75%
to
12/09/34,
FRN
thereafter
,
12/10/54
...............
2,500,000
2,608,150
Junior
Sub.
Bond
,
7%
to
3/09/30,
FRN
thereafter
,
3/10/55
...................
5,000,000
5,213,297
a
DaVita,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
2/15/31
....................................
6,000,000
5,581,918
Senior
Note
,
144A,
6.875
%
,
9/01/32
....................................
3,000,000
3,109,136
Senior
Note
,
144A,
6.75
%
,
7/15/33
.....................................
500,000
517,166
a
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......................
1,000,000
987,388
Tenet
Healthcare
Corp.
,
Senior
Note
,
6.125
%
,
10/01/28
........................................
12,000,000
12,036,744
Senior
Secured
Note
,
6.125
%
,
6/15/30
..................................
11,000,000
11,117,425
Senior
Secured
Note
,
6.75
%
,
5/15/31
...................................
15,000,000
15,456,585
149,008,694
Hotels,
Restaurants
&
Leisure
6.8%
a
Caesars
Entertainment,
Inc.
,
Senior
Note
,
144A,
6
%
,
10/15/32
......................................
10,000,000
8,962,619
Senior
Secured
Note
,
144A,
7
%
,
2/15/30
................................
4,500,000
4,556,627
Senior
Secured
Note
,
144A,
6.5
%
,
2/15/32
...............................
10,000,000
9,758,481
a
Carnival
Corp.
Ltd.
,
Senior
Note
,
144A,
6.125
%
,
2/15/33
......................
8,500,000
8,616,135
a
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
...............................................
15,000,000
14,647,801
a
Mohegan
Tribal
Gaming
Authority
/
MS
Digital
Entertainment
Holdings
LLC
,
Senior
Secured
Note
,
144A,
8.25
%
,
4/15/30
...................................
3,000,000
3,133,239
a
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
6.75
%
,
2/01/32
..........................
750,000
743,966
a
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
.........................................................
10,000,000
10,568,360
60,987,228
Household
Durables
0.8%
Newell
Brands,
Inc.
,
a
Senior
Note
,
144A,
8.5
%
,
6/01/28
.....................................
5,000,000
5,223,610
Senior
Note
,
6.375
%
,
5/15/30
.........................................
2,000,000
1,975,134
7,198,744
Independent
Power
and
Renewable
Electricity
Producers
1.8%
a
Talen
Energy
Supply
LLC
,
Senior
Note
,
144A,
6.125
%
,
5/01/31
.................
6,000,000
6,001,781
a
,b
Vistra
Corp.
,
Junior
Sub.
Bond
,
144A,
8%
to
10/14/26,
FRN
thereafter
,
Perpetual
....
10,000,000
10,086,810
16,088,591
Insurance
1.2%
a
Asurion
LLC
/
Asurion
Co-Issuer,
Inc.
,
Secured
Note
,
144A,
8.375
%
,
2/01/34
..................................
7,000,000
6,846,642
Senior
Secured
Note
,
144A,
8
%
,
12/31/32
...............................
4,000,000
4,173,911
11,020,553
IT
Services
1.4%
a
Beignet
Investor
LLC
,
Senior
Secured
Bond
,
144A,
6.581
%
,
5/30/49
.............
5,000,000
5,157,130
a
CoreWeave,
Inc.
,
Senior
Note
,
144A,
9.25
%
,
6/01/30
........................
7,500,000
7,657,219
12,814,349
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
1.1%
a
Stagwell
Global
LLC
,
Senior
Note
,
144A,
5.625
%
,
8/15/29
.....................
$
200,000
$
194,795
a
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
9.375
%
,
8/01/32
.....
2,500,000
2,562,383
a
VZ
Secured
Financing
BV
,
Senior
Secured
Note
,
144A,
7.5
%
,
1/15/33
............
7,000,000
6,737,795
9,494,973
Metals
&
Mining
2.2%
a
Alcoa
Nederland
Holding
BV
,
Senior
Note
,
144A,
4.125
%
,
3/31/29
...............
750,000
732,111
ArcelorMittal
SA
,
Senior
Bond
,
6.8
%
,
11/29/32
..............................
50,000
55,166
a
Cleveland-Cliffs,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
5/01/33
....................................
8,000,000
8,221,333
Senior
Note
,
144A,
7.625
%
,
1/15/34
....................................
3,250,000
3,347,009
a
Fortescue
Treasury
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...................................
800,000
764,468
Senior
Bond
,
144A,
6.125
%
,
4/15/32
...................................
6,000,000
6,217,798
a
Mineral
Resources
Ltd.
,
Senior
Note
,
144A,
8.5
%
,
5/01/30
....................
550,000
568,372
19,906,257
Oil,
Gas
&
Consumable
Fuels
9.2%
a
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
9.75
%
,
7/15/28
.....................................
3,000,000
3,080,100
Senior
Note
,
144A,
9.75
%
,
2/15/31
.....................................
4,000,000
4,237,804
Senior
Secured
Note
,
144A,
9.25
%
,
7/15/29
..............................
3,000,000
3,052,500
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note
,
3.7
%
,
11/15/29
......
100,000
97,132
Energy
Transfer
LP
,
Senior
Bond
,
6.55
%
,
12/01/33
..........................
50,000
54,373
a
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond
,
144A,
7.25
%
,
2/15/35
....................................
7,000,000
7,106,526
Senior
Note
,
144A,
6
%
,
4/15/30
.......................................
1,000,000
994,730
a
Matador
Resources
Co.
,
Senior
Note
,
144A,
6.5
%
,
4/15/32
....................
4,000,000
4,055,208
Occidental
Petroleum
Corp.
,
Senior
Note
,
8.875
%
,
7/15/30
....................
50,000
56,876
a
Venture
Global
LNG,
Inc.
,
b
Junior
Sub.
Bond
,
144A,
9%
to
9/29/29,
FRN
thereafter
,
Perpetual
.............
20,000,000
19,761,748
Senior
Secured
Note
,
144A,
8.125
%
,
6/01/28
.............................
10,000,000
10,226,540
Senior
Secured
Note
,
144A,
9.875
%
,
2/01/32
.............................
20,000,000
21,394,513
a
Venture
Global
Plaquemines
LNG
LLC
,
Senior
Secured
Bond
,
144A,
7.75
%
,
5/01/35
.............................
2,000,000
2,246,298
Senior
Secured
Note
,
144A,
6.125
%
,
12/15/30
............................
2,000,000
2,055,267
Senior
Secured
Note
,
144A,
6.5
%
,
6/15/34
...............................
3,000,000
3,132,429
Williams
Cos.,
Inc.
(The)
,
Senior
Bond
,
5.65
%
,
3/15/33
.......................
100,000
103,414
81,655,458
Passenger
Airlines
1.0%
a
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.
41,667
41,709
a
JetBlue
Airways
Corp.
/
JetBlue
Loyalty
LP
,
Senior
Secured
Note
,
144A,
9.875
%
,
9/20/31
.........................................................
10,000,000
9,210,865
9,252,574
Personal
Care
Products
0.3%
a
Opal
Bidco
SAS
,
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/32
...................
3,000,000
3,058,659
Pharmaceuticals
3.5%
a
1261229
BC
Ltd.
,
Senior
Secured
Note
,
144A,
10
%
,
4/15/32
...................
13,000,000
13,321,908
a
Endo
Finance
Holdings
LP
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/15/31
...........
2,000,000
2,132,892
a
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Bond
,
144A,
5.125
%
,
4/30/31
...................................
2,500,000
2,479,398
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Pharmaceuticals
(continued)
a
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV,
(continued)
Senior
Note
,
144A,
7.875
%
,
5/15/34
....................................
$
10,000,000
$
10,745,885
Senior
Secured
Note
,
144A,
4.125
%
,
4/30/28
.............................
3,000,000
2,965,007
31,645,090
Semiconductors
&
Semiconductor
Equipment
0.3%
a
Qnity
Electronics,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
8/15/33
.....................................
1,000,000
1,020,974
Senior
Secured
Note
,
144A,
5.75
%
,
8/15/32
..............................
1,500,000
1,511,645
2,532,619
Software
2.1%
a
Cloud
Software
Group,
Inc.
,
Secured
Note
,
144A,
9
%
,
9/30/29
.....................................
6,000,000
5,933,885
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/29
...............................
7,500,000
7,446,887
a
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........................
6,000,000
5,136,332
18,517,104
Specialized
REITs
0.3%
American
Tower
Corp.
,
Senior
Note
,
4.05
%
,
3/15/32
.........................
50,000
48,088
a
Millrose
Properties,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
8/01/30
..................
2,500,000
2,536,910
2,584,998
Specialty
Retail
0.0%
†
Lowe's
Cos.,
Inc.
,
Senior
Bond
,
5
%
,
4/15/33
...............................
60,000
60,458
Technology
Hardware,
Storage
&
Peripherals
0.0%
†
Hewlett
Packard
Enterprise
Co.
,
Senior
Bond
,
5
%
,
10/15/34
...................
50,000
49,064
HP,
Inc.
,
Senior
Bond
,
5.5
%
,
1/15/33
.....................................
80,000
82,023
131,087
Textiles,
Apparel
&
Luxury
Goods
1.6%
a
,e
Beach
Acquisition
Bidco
LLC
,
Senior
Note
,
144A,
PIK,
10
%
,
7/15/33
.............
13,175,607
14,041,976
Tobacco
0.0%
†
BAT
Capital
Corp.
,
Senior
Bond
,
6.421
%
,
8/02/33
...........................
50,000
54,229
Trading
Companies
&
Distributors
0.2%
a
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
7
%
,
6/15/30
.........................
2,000,000
2,079,346
a
United
Rentals
North
America,
Inc.
,
Senior
Secured
Note
,
144A,
6
%
,
12/15/29
.....
50,000
50,902
2,130,248
Total
Corporate
Bonds
(Cost
$
687,290,599
)
.....................................
710,412,539
Senior
Floating
Rate
Interests
3.7%
Containers
&
Packaging
0.3%
f
Clydesdale
Acquisition
Holdings,
Inc.,
First
Lien,
2025
Incremental
Closing
Date
CME
Term
Loan,
B
,
6.87
%
,
(
1-month
SOFR
+
3.25
%
),
4/01/32
....................
2,474,233
2,344,497
Health
Care
Equipment
&
Supplies
1.1%
f
Hologic,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
5.924
%
,
(
3-month
SOFR
+
2.25
%
),
4/07/33
.........................................................
3,000,000
2,973,360
f
Hologic,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.679
%
,
(
3-month
SOFR
+
5
%
),
4/07/34
.....................................................
7,000,000
6,973,750
9,947,110
a
a
a
a
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Senior
Floating
Rate
Interests
(continued)
Health
Care
Providers
&
Services
0.1%
f
MPH
Acquisition
Holdings
LLC,
First
Lien,
Exchange
First
Out
CME
Term
Loan
,
7.675
%
,
(
3-month
SOFR
+
3.75
%
),
12/31/30
.............................
$
532,027
$
530,982
Oil,
Gas
&
Consumable
Fuels
0.8%
f
Venture
Global
Calcasieu
Pass
LLC,
First
Lien,
Initial
CME
Term
Loan
,
6.954
%
,
(
6-month
SOFR
+
3.25
%
),
4/11/33
.....................................
7,500,000
7,534,387
Passenger
Airlines
1.2%
f
,g
American
Airlines,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
6.707
%
,
(
12-month
SOFR
+
3
%
),
5/20/33
.....................................................
11,000,000
10,913,375
Personal
Care
Products
0.2%
f
OPAL
US
LLC,
First
Lien,
CME
Term
Loan,
B4
,
6.7
%
,
(
3-month
SOFR
+
3
%
),
4/28/32
1,990,000
1,993,910
Total
Senior
Floating
Rate
Interests
(Cost
$
33,172,657
)
..........................
33,264,261
Mortgage-Backed
Securities
15.0%
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
5.2%
FHLMC
Pool,
30
Year
,
5
%,
5/01/53
-
11/01/54
..............................
5,862,886
5,793,726
FHLMC
Pool,
30
Year
,
5
%,
12/01/54
.....................................
9,851,065
9,706,903
FHLMC
Pool,
30
Year
,
5.5
%,
12/01/54
....................................
8,769,968
8,818,611
FHLMC
Pool,
30
Year
,
5.5
%,
7/01/53
-
2/01/55
.............................
14,110,706
14,205,320
FHLMC
Pool,
30
Year
,
6
%,
6/01/53
-
9/01/55
...............................
7,329,311
7,499,207
46,023,767
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
3.1%
FNMA,
30
Year
,
5
%,
5/01/53
-
11/01/53
...................................
5,676,495
5,620,332
FNMA,
30
Year
,
5.5
%,
11/01/54
-
1/01/56
.................................
17,186,144
17,278,172
FNMA,
30
Year
,
6
%,
8/01/55
...........................................
4,497,542
4,597,647
27,496,151
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
6.7%
GNMA
II,
Single-family,
30
Year
,
5.5
%,
5/20/55
.............................
7,201,389
7,263,752
GNMA
II,
Single-family,
30
Year
,
5.5
%,
6/20/55
-
8/20/55
......................
8,377,341
8,442,392
GNMA
II,
Single-family,
30
Year
,
5.5
%,
10/20/55
............................
21,457,764
21,619,358
GNMA
II,
Single-family,
30
Year
,
5.5
%,
12/20/55
............................
10,585,758
10,665,477
GNMA
II,
Single-family,
30
Year
,
6
%,
8/20/55
...............................
6,024,560
6,145,721
GNMA
II,
Single-family,
30
Year
,
6
%,
1/20/56
...............................
5,820,824
5,939,346
60,076,046
Total
Mortgage-Backed
Securities
(Cost
$
132,901,374
)
...........................
133,595,964
Total
Long
Term
Investments
(Cost
$
854,803,913
)
...............................
879,809,036
a
a
a
a
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
30
See
Abbreviations
on
page
37
.
Short
Term
Investments
0.9%
a
a
Shares
a
Value
a
Money
Market
Funds
0.9%
h,i
Franklin
Institutional
U.S.
Government
Money
Market
Fund
,
3.579
%
.............
8,136,101
$
8,136,101
Total
Money
Market
Funds
(Cost
$
8,136,101
)
...................................
8,136,101
Total
Short
Term
Investments
(Cost
$
8,136,101
)
.................................
8,136,101
a
Total
Investments
(Cost
$
862,940,014
)
99.5
%
...................................
$887,945,137
Other
Assets,
less
Liabilities
0.5
%
.............................................
4,542,215
Net
Assets
100.0%
...........................................................
$892,487,352
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2026,
the
aggregate
value
of
these
securities
was
$610,493,676,
representing
68.4%
of
net
assets.
b
Perpetual
security
with
no
stated
maturity
date.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
5
regarding
fair
value
measurements.
d
See
Note
3
regarding
restricted
securities.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
g
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
h
See
Note
4
regarding
investments
in
affiliated
management
investment
companies.
i
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
31
Quarterly
Schedules
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, four
of
which
are
included
in
this
report
(Funds).
The Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
2. Financial
Instrument
Valuation
The
Funds’
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Funds
calculate
the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds'
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price
of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m. Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds’
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
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. 
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’
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
32
Quarterly
Schedules
of
Investments
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
May
31,
2026,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2 within
the
fair
value
hierarchy
(referred
to
as
"market
level
fair
value").
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds’
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds’
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
3.
Restricted
Securities
At
May
31,
2026,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
Securities
Act
of
1933,
were
as
follows:
4.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
During
the
period
ended
May
31,
2026,
investments
in
affiliated
management
investment
companies
were
as
follows: 
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Templeton
SMACS:
Series
E
600
QXO,
Inc.,
C
...............................
3/23/26
$
6,000,000
$
6,529,121
Total
Restricted
Securities
(Value
is
1.0%
of
Net
Assets)
...............
$6,000,000
$6,529,121
Principal
Amount
*
Issuer
Acquisition
Date
Cost
Value
Franklin
Templeton
SMACS:
Series
I
3,808,177
BX
Frontier
Member
II
LLC,
6.1%,
12/31/60
........
3/17/26
$
3,808,177
$
3,808,177
Total
Restricted
Securities
(Value
is
0.4%
of
Net
Assets)
...............
$3,808,177
$3,808,177
*
In
U.S.
dollars
unless
otherwise
indicated.
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Templeton
SMACS:
Series
E
Non-Controlled
Affiliates
Dividends
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.579%
............
$2,925,813
$255,127,745
$(250,432,833)
$—
$—
$7,620,725
7,620,725
$174,593
Total
Affiliated
Securities
...
$2,925,813
$255,127,745
$(250,432,833)
$—
$—
$7,620,725
$174,593
2. Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
33
Quarterly
Schedules
of
Investments
5. Fair
Value
Measurements
The
Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Funds’
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
• Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
• Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
• Level
3
–
significant
unobservable
inputs
(including
the
Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level. 
A
summary
of
inputs
used
as
of
May
31,
2026,
in
valuing
the
Funds’
assets
carried
at
fair
value,
is
as
follows:  
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Templeton
SMACS:
Series
H
Non-Controlled
Affiliates
Dividends
Franklin
Dynamic
Municipal
Bond
ETF
...................
$531,300
$4,724,500
$(921,752)
$292
$52,910
$4,387,250
175,000
$78,140
Total
Affiliated
Securities
...
$531,300
$4,724,500
$(921,752)
$292
$52,910
$4,387,250
$78,140
Franklin
Templeton
SMACS:
Series
I
Non-Controlled
Affiliates
Dividends
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.579%
............
$2,921,629
$320,061,615
$(314,847,143)
$—
$—
$8,136,101
8,136,101
$223,082
Total
Affiliated
Securities
...
$2,921,629
$320,061,615
$(314,847,143)
$—
$—
$8,136,101
$223,082
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
a
Warrants
...............................
$
—
$
—
$
—
b
$
—
Corporate
Bonds
........................
—
248,298
—
248,298
Municipal
Bonds
:
Arizona
..............................
—
528,308
—
528,308
California
.............................
—
35,207,810
599,716
35,807,526
U.S.
Territories
..........................
Puerto
Rico
...........................
—
125,262
—
125,262
Short
Term
Investments
...................
—
698,402
—
698,402
Total
Investments
in
Securities
...........
$—
$36,808,080
$599,716
$37,407,796
4.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
34
Quarterly
Schedules
of
Investments
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Aerospace
&
Defense
...................
$
9,104,050
$
—
$
—
$
9,104,050
Air
Freight
&
Logistics
...................
4,694,360
—
—
4,694,360
Banks
...............................
14,151,140
—
—
14,151,140
Biotechnology
.........................
5,443,000
—
—
5,443,000
Broadline
Retail
.......................
9,541,684
—
—
9,541,684
Capital
Markets
........................
8,375,040
—
—
8,375,040
Diversified
Telecommunication
Services
.....
4,352,250
—
—
4,352,250
Electric
Utilities
........................
5,167,500
—
—
5,167,500
Energy
Equipment
&
Services
.............
8,182,500
—
—
8,182,500
Food
Products
........................
5,072,000
6,087,842
—
11,159,842
Ground
Transportation
..................
4,574,400
—
—
4,574,400
Health
Care
Equipment
&
Supplies
.........
14,762,000
—
—
14,762,000
Health
Care
Providers
&
Services
..........
16,311,461
—
—
16,311,461
Hotels,
Restaurants
&
Leisure
.............
14,142,800
—
—
14,142,800
IT
Services
...........................
4,676,750
—
—
4,676,750
Machinery
............................
5,255,220
—
—
5,255,220
Metals
&
Mining
.......................
1,311,703
—
—
1,311,703
Oil,
Gas
&
Consumable
Fuels
.............
11,351,600
19,014,928
—
30,366,528
Pharmaceuticals
.......................
6,041,917
—
—
6,041,917
Semiconductors
&
Semiconductor
Equipment
.
17,709,020
—
—
17,709,020
Software
.............................
8,740,320
—
—
8,740,320
Textiles,
Apparel
&
Luxury
Goods
..........
2,311,500
—
—
2,311,500
Tobacco
.............................
11,973,150
—
—
11,973,150
Equity-Linked
Securities
...................
—
301,418,781
—
301,418,781
Convertible
Preferred
Stocks
:
Aerospace
&
Defense
...................
22,717,800
—
—
22,717,800
Capital
Markets
........................
27,254,500
—
—
27,254,500
Chemicals
...........................
15,567,750
—
—
15,567,750
Electric
Utilities
........................
22,207,500
—
—
22,207,500
Trading
Companies
&
Distributors
..........
—
—
6,529,121
6,529,121
Short
Term
Investments
...................
7,620,725
—
—
7,620,725
Total
Investments
in
Securities
...........
$288,613,640
$326,521,551
c
$6,529,121
$621,664,312
Franklin
Templeton
SMACS:
Series
H
Assets:
Investments
in
Securities:
a
Management
Investment
Companies
.........
4,387,250
—
—
4,387,250
Warrants
...............................
—
—
—
b
—
Corporate
Bonds
........................
—
248,297
—
248,297
Municipal
Bonds
.........................
—
42,457,501
—
42,457,501
Short
Term
Investments
...................
—
500,000
—
500,000
Total
Investments
in
Securities
...........
$4,387,250
$43,205,798
$—
$47,593,048
Franklin
Templeton
SMACS:
Series
I
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
2,322,000
—
—
2,322,000
Equity-Linked
Securities
...................
—
214,272
—
214,272
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
16,698,006
—
16,698,006
Automobile
Components
.................
—
6,058,080
—
6,058,080
Automobiles
..........................
—
1,973,391
—
1,973,391
Banks
...............................
—
15,851,708
—
15,851,708
Biotechnology
.........................
—
4,105,935
—
4,105,935
5. Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
35
Quarterly
Schedules
of
Investments
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
At May
31,
2026,
the
reconciliations
are
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
I
(continued)
Assets:
(continued)
Investments
in
Securities:
a
(continued)
Corporate
Bonds:
(continued)
Building
Products
......................
$
—
$
5,103,994
$
—
$
5,103,994
Capital
Markets
........................
—
10,286,821
—
10,286,821
Chemicals
...........................
—
42,541,525
—
42,541,525
Commercial
Services
&
Supplies
...........
—
2,594,050
3,808,177
6,402,227
Consumer
Finance
.....................
—
3,433,652
—
3,433,652
Containers
&
Packaging
.................
—
42,315,044
—
42,315,044
Diversified
REITs
......................
—
49,205
—
49,205
Diversified
Telecommunication
Services
.....
—
50,933,219
—
50,933,219
Electric
Utilities
........................
—
37,904,665
—
37,904,665
Electrical
Equipment
....................
—
51,148
—
51,148
Energy
Equipment
&
Services
.............
—
7,129,166
—
7,129,166
Entertainment
.........................
—
102,964
—
102,964
Food
Products
........................
—
2,085,723
—
2,085,723
Ground
Transportation
..................
—
208,046
—
208,046
Health
Care
Equipment
&
Supplies
.........
—
4,994,131
—
4,994,131
Health
Care
Providers
&
Services
..........
—
149,008,694
—
149,008,694
Hotels,
Restaurants
&
Leisure
.............
—
60,987,228
—
60,987,228
Household
Durables
....................
—
7,198,744
—
7,198,744
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
16,088,591
—
16,088,591
Insurance
............................
—
11,020,553
—
11,020,553
IT
Services
...........................
—
12,814,349
—
12,814,349
Media
...............................
—
9,494,973
—
9,494,973
Metals
&
Mining
.......................
—
19,906,257
—
19,906,257
Oil,
Gas
&
Consumable
Fuels
.............
—
81,655,458
—
81,655,458
Passenger
Airlines
.....................
—
9,252,574
—
9,252,574
Personal
Care
Products
.................
—
3,058,659
—
3,058,659
Pharmaceuticals
.......................
—
31,645,090
—
31,645,090
Semiconductors
&
Semiconductor
Equipment
.
—
2,532,619
—
2,532,619
Software
.............................
—
18,517,104
—
18,517,104
Specialized
REITs
......................
—
2,584,998
—
2,584,998
Specialty
Retail
........................
—
60,458
—
60,458
Technology
Hardware,
Storage
&
Peripherals
.
—
131,087
—
131,087
Textiles,
Apparel
&
Luxury
Goods
..........
—
14,041,976
—
14,041,976
Tobacco
.............................
—
54,229
—
54,229
Trading
Companies
&
Distributors
..........
—
2,130,248
—
2,130,248
Senior
Floating
Rate
Interests
...............
—
33,264,261
—
33,264,261
Mortgage-Backed
Securities
................
—
133,595,964
—
133,595,964
Short
Term
Investments
...................
8,136,101
—
—
8,136,101
Total
Investments
in
Securities
...........
$10,458,101
$873,678,859
$3,808,177
$887,945,137
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
financial
instruments
determined
to
have
no
value.
c
Includes
foreign
securities
valued
at
$25,102,770,
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.
5. Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
36
Quarterly
Schedules
of
Investments
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
May
31,
2026,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
Warrants
:
United
States
.
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
a
$
—
Municipal
Bonds
:
United
States
.
603,985
—
—
—
—
—
—
(4,269)
599,716
(4,269)
Total
Investments
in
Securities
.......
$603,985
$—
$—
$—
$—
$—
$—
$(4,269)
$599,716
$(4,269)
Balance
at
Beginning
of
Period
Purchases
b
Sales
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
Convertible
Preferred
Stocks
:
Trading
Companies
&
Distributors
......
$
—
$
6,000,000
$
—
$
—
$
—
$
—
$
—
$
529,121
$
6,529,121
$
529,121
Total
Investments
in
Securities
............
$—
$6,000,000
$—
$—
$—
$—
$—
$529,121
$6,529,121
$529,121
a
Includes
financial
instruments
determined
to
have
no
value.
b
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
Municipal
Bonds
California
.....................
$599,716
Discounted
cash
flow
Discount
rate
8.3%
Decrease
All
Other
Investments
.............
—
b
Total
$599,716
5. Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
37
Quarterly
Schedules
of
Investments
Abbreviations
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
Convertible
Preferred
Stocks:
Trading
Companies
&
Distributors
....
$6,529,121
Warrant
pricing
model
Asset
price
17.3%
Increase
Discount
for
lack
of
marketability
12.7%
Decrease
Expected
term
0.9
years
Increase
Volatility
61.5%
Increase
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$6,529,121
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
financial
instruments
determined
to
have
no
value.
Selected
Portfolio
ADR
American
Depositary
Receipt
AG
Assured
Guaranty,
Inc.
CME
Chicago
Mercantile
Exchange
ETF
Exchange-Traded
Fund
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
5. Fair
Value
Measurements
(continued)
For
additional
information
on
the
Funds'
significant
accounting
policies,
please
refer
to
the Funds'
most
recent
semiannual
or
annual
shareholder
report.