UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06243
Franklin Strategic Series
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant’s telephone number, including area code: 650 312-2000
Date of fiscal year end: 4/30
Date of reporting period: 10/31/24
Item 1. Reports to Stockholders.
| a.) | The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1). |
| | |
| b.) | Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule. |
Not Applicable.
| | |
Franklin Growth Opportunities Fund | |
| Class A [FGRAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $48 | 0.89% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $4,588,362,911 |
Total Number of Portfolio Holdings* | 88 |
Portfolio Turnover Rate | 8.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Growth Opportunities Fund | PAGE 1 | 462-STSR-1224 |
40.413.511.711.010.96.42.92.30.50.00.4
| | |
Franklin Growth Opportunities Fund | |
| Class C [FKACX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $88 | 1.64% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $4,588,362,911 |
Total Number of Portfolio Holdings* | 88 |
Portfolio Turnover Rate | 8.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Growth Opportunities Fund | PAGE 1 | 562-STSR-1224 |
40.413.511.711.010.96.42.92.30.50.00.4
| | |
Franklin Growth Opportunities Fund | |
| Class R [FKARX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R | $61 | 1.14% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $4,588,362,911 |
Total Number of Portfolio Holdings* | 88 |
Portfolio Turnover Rate | 8.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Growth Opportunities Fund | PAGE 1 | 862-STSR-1224 |
40.413.511.711.010.96.42.92.30.50.00.4
| | |
Franklin Growth Opportunities Fund | |
| Class R6 [FOPPX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $31 | 0.57% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $4,588,362,911 |
Total Number of Portfolio Holdings* | 88 |
Portfolio Turnover Rate | 8.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Growth Opportunities Fund | PAGE 1 | 352-STSR-1224 |
40.413.511.711.010.96.42.92.30.50.00.4
| | |
Franklin Growth Opportunities Fund | |
| Advisor Class [FRAAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $34 | 0.64% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $4,588,362,911 |
Total Number of Portfolio Holdings* | 88 |
Portfolio Turnover Rate | 8.96% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Growth Opportunities Fund | PAGE 1 | 662-STSR-1224 |
40.413.511.711.010.96.42.92.30.50.00.4
| | |
Franklin Small Cap Growth Fund | |
| Class A [FSGRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $54 | 1.04% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,758,042,092 |
Total Number of Portfolio Holdings* | 125 |
Portfolio Turnover Rate | 9.15% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small Cap Growth Fund | PAGE 1 | 465-STSR-1224 |
23.120.819.113.210.26.52.72.31.30.00.8
| | |
Franklin Small Cap Growth Fund | |
| Class C [FCSGX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $93 | 1.79% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,758,042,092 |
Total Number of Portfolio Holdings* | 125 |
Portfolio Turnover Rate | 9.15% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small Cap Growth Fund | PAGE 1 | 565-STSR-1224 |
23.120.819.113.210.26.52.72.31.30.00.8
| | |
Franklin Small Cap Growth Fund | |
| Class R [FSSRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R | $67 | 1.29% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,758,042,092 |
Total Number of Portfolio Holdings* | 125 |
Portfolio Turnover Rate | 9.15% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small Cap Growth Fund | PAGE 1 | 865-STSR-1224 |
23.120.819.113.210.26.52.72.31.30.00.8
| | |
Franklin Small Cap Growth Fund | |
| Class R6 [FSMLX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $34 | 0.65% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,758,042,092 |
Total Number of Portfolio Holdings* | 125 |
Portfolio Turnover Rate | 9.15% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small Cap Growth Fund | PAGE 1 | 335-STSR-1224 |
23.120.819.113.210.26.52.72.31.30.00.8
| | |
Franklin Small Cap Growth Fund | |
| Advisor Class [FSSAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $41 | 0.79% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,758,042,092 |
Total Number of Portfolio Holdings* | 125 |
Portfolio Turnover Rate | 9.15% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small Cap Growth Fund | PAGE 1 | 665-STSR-1224 |
23.120.819.113.210.26.52.72.31.30.00.8
| | |
Franklin Small-Mid Cap Growth Fund | |
| Class A [FRSGX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $45 | 0.85% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $3,961,125,238 |
Total Number of Portfolio Holdings* | 105 |
Portfolio Turnover Rate | 21.22% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small-Mid Cap Growth Fund | PAGE 1 | 198-STSR-1224 |
25.519.314.712.412.05.73.42.31.61.21.9
| | |
Franklin Small-Mid Cap Growth Fund | |
| Class C [FRSIX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $83 | 1.59% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $3,961,125,238 |
Total Number of Portfolio Holdings* | 105 |
Portfolio Turnover Rate | 21.22% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small-Mid Cap Growth Fund | PAGE 1 | 298-STSR-1224 |
25.519.314.712.412.05.73.42.31.61.21.9
| | |
Franklin Small-Mid Cap Growth Fund | |
| Class R [FSMRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R | $57 | 1.09% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $3,961,125,238 |
Total Number of Portfolio Holdings* | 105 |
Portfolio Turnover Rate | 21.22% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small-Mid Cap Growth Fund | PAGE 1 | 898-STSR-1224 |
25.519.314.712.412.05.73.42.31.61.21.9
| | |
Franklin Small-Mid Cap Growth Fund | |
| Class R6 [FMGGX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $26 | 0.50% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $3,961,125,238 |
Total Number of Portfolio Holdings* | 105 |
Portfolio Turnover Rate | 21.22% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small-Mid Cap Growth Fund | PAGE 1 | 318-STSR-1224 |
25.519.314.712.412.05.73.42.31.61.21.9
| | |
Franklin Small-Mid Cap Growth Fund | |
| Advisor Class [FSGAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $31 | 0.60% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $3,961,125,238 |
Total Number of Portfolio Holdings* | 105 |
Portfolio Turnover Rate | 21.22% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Small-Mid Cap Growth Fund | PAGE 1 | 698-STSR-1224 |
25.519.314.712.412.05.73.42.31.61.21.9
| | |
Franklin Biotechnology Discovery Fund | |
| Class A [FBDIX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Biotechnology Discovery Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $53 | 1.01% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $896,599,561 |
Total Number of Portfolio Holdings* | 98 |
Portfolio Turnover Rate | 11.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Biotechnology Discovery Fund | PAGE 1 | 402-STSR-1224 |
96.30.20.23.3
| | |
Franklin Biotechnology Discovery Fund | |
| Class C [FBTDX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Biotechnology Discovery Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $93 | 1.76% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $896,599,561 |
Total Number of Portfolio Holdings* | 98 |
Portfolio Turnover Rate | 11.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Biotechnology Discovery Fund | PAGE 1 | 242-STSR-1224 |
96.30.20.23.3
| | |
Franklin Biotechnology Discovery Fund | |
| Class R6 [FRBRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Biotechnology Discovery Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $35 | 0.66% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $896,599,561 |
Total Number of Portfolio Holdings* | 98 |
Portfolio Turnover Rate | 11.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Biotechnology Discovery Fund | PAGE 1 | 342-STSR-1224 |
96.30.20.23.3
| | |
Franklin Biotechnology Discovery Fund | |
| Advisor Class [FTDZX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Biotechnology Discovery Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $40 | 0.76% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $896,599,561 |
Total Number of Portfolio Holdings* | 98 |
Portfolio Turnover Rate | 11.92% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Biotechnology Discovery Fund | PAGE 1 | 42-STSR-1224 |
96.30.20.23.3
| | |
Franklin Natural Resources Fund | |
| Class A [FRNRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Natural Resources Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $49 | 0.99% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $337,872,240 |
Total Number of Portfolio Holdings* | 93 |
Portfolio Turnover Rate | 5.20% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Natural Resources Fund | PAGE 1 | 403-STSR-1224 |
58.032.02.80.86.4
| | |
Franklin Natural Resources Fund | |
| Class C [FNCRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Natural Resources Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $87 | 1.74% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $337,872,240 |
Total Number of Portfolio Holdings* | 93 |
Portfolio Turnover Rate | 5.20% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Natural Resources Fund | PAGE 1 | 503-STSR-1224 |
58.032.02.80.86.4
| | |
Franklin Natural Resources Fund | |
| Class R6 [FNCSX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Natural Resources Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $30 | 0.61% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $337,872,240 |
Total Number of Portfolio Holdings* | 93 |
Portfolio Turnover Rate | 5.20% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Natural Resources Fund | PAGE 1 | 803-STSR-1224 |
58.032.02.80.86.4
| | |
Franklin Natural Resources Fund | |
| Advisor Class [FNRAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Natural Resources Fund for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $37 | 0.74% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $337,872,240 |
Total Number of Portfolio Holdings* | 93 |
Portfolio Turnover Rate | 5.20% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Natural Resources Fund | PAGE 1 | 613-STSR-1224 |
58.032.02.80.86.4
| | |
Franklin Core Plus Bond Fund | |
| Class A [FRSTX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Core Plus Bond Fund (previously known as Franklin Strategic Income Fund) for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class A | $48 | 0.93% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,569,415,815 |
Total Number of Portfolio Holdings* | 701 |
Portfolio Turnover Rate | 53.06% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Core Plus Bond Fund | PAGE 1 | 194-STSR-1224 |
56.716.212.22.62.52.32.21.21.10.50.00.00.00.02.5
| | |
Franklin Core Plus Bond Fund | |
| Class C [FSGCX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Core Plus Bond Fund (previously known as Franklin Strategic Income Fund) for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class C | $69 | 1.33% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,569,415,815 |
Total Number of Portfolio Holdings* | 701 |
Portfolio Turnover Rate | 53.06% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Core Plus Bond Fund | PAGE 1 | 294-STSR-1224 |
56.716.212.22.62.52.32.21.21.10.50.00.00.00.02.5
| | |
Franklin Core Plus Bond Fund | |
| Class R [FKSRX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Core Plus Bond Fund (previously known as Franklin Strategic Income Fund) for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R | $61 | 1.18% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,569,415,815 |
Total Number of Portfolio Holdings* | 701 |
Portfolio Turnover Rate | 53.06% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Core Plus Bond Fund | PAGE 1 | 894-STSR-1224 |
56.716.212.22.62.52.32.21.21.10.50.00.00.00.02.5
| | |
Franklin Core Plus Bond Fund | |
| Class R6 [FGKNX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Core Plus Bond Fund (previously known as Franklin Strategic Income Fund) for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Class R6 | $29 | 0.56% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,569,415,815 |
Total Number of Portfolio Holdings* | 701 |
Portfolio Turnover Rate | 53.06% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Core Plus Bond Fund | PAGE 1 | 314-STSR-1224 |
56.716.212.22.62.52.32.21.21.10.50.00.00.00.02.5
| | |
Franklin Core Plus Bond Fund | |
| Advisor Class [FKSAX] |
| Semi-Annual Shareholder Report | October 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin Core Plus Bond Fund (previously known as Franklin Strategic Income Fund) for the period May 1, 2024, to October 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment*,† |
| Advisor Class | $35 | 0.68% |
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
KEY FUND STATISTICS (as of October 31, 2024)
| |
Total Net Assets | $2,569,415,815 |
Total Number of Portfolio Holdings* | 701 |
Portfolio Turnover Rate | 53.06% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of October 31, 2024)
Portfolio Composition*,† (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| † | Certain categories may represent less than 0.1%. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin Core Plus Bond Fund | PAGE 1 | 694-STSR-1224 |
56.716.212.22.62.52.32.21.21.10.50.00.00.00.02.5
Item 2. Code of Ethics. N/A
Item 3. Audit Committee Financial Expert. N/A
Item 4. Principal Accountant Fees and Services. N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments.
(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.
(b) N/A
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Franklin
Strategic
Series
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
October
31,
2024
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
Financial
Statements
and
Other
Important
Information—Semiannual
Financial
Highlights
and
Schedules
of
Investments
2
Financial
Statements
31
Notes
to
Financial
Statements
36
Changes
In
and
Disagreements
with
Accountants
58
Results
of
Meeting(s)
of
Shareholders
58
Remuneration
Paid
to
Directors,
Officers
and
Others
58
Board
Approval
of
Management
and
Subadvisory
Agreements
58
Financial
Highlights
Franklin
Growth
Opportunities
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$45.99
$39.15
$43.14
$56.25
$39.60
$39.57
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.05)
(0.20)
(0.12)
(0.28)
(0.26)
(0.14)
Net
realized
and
unrealized
gains
(losses)
6.16
12.81
(2.19)
(7.76)
20.03
3.59
Total
from
investment
operations
........
6.11
12.61
(2.31)
(8.04)
19.77
3.45
Less
distributions
from:
Net
realized
gains
.................
—
(5.77)
(1.68)
(5.07)
(3.12)
(3.42)
Net
asset
value,
end
of
period
..........
$52.10
$45.99
$39.15
$43.14
$56.25
$39.60
Total
return
c
.......................
13.29%
33.49%
(4.98)%
(16.57)%
50.64%
8.90%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.89%
0.91%
0.95%
0.90%
0.91%
0.95%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.89%
e
0.91%
e,f
0.94%
f
0.89%
f
0.91%
e,f
0.95%
e,f
Net
investment
(loss)
................
(0.18)%
(0.45)%
(0.30)%
(0.49)%
(0.51)%
(0.35)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$3,727,092
$3,453,647
$2,765,017
$3,215,834
$4,203,693
$2,883,392
Portfolio
turnover
rate
................
8.96%
27.49%
16.52%
g
17.20%
17.54%
19.47%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$31.99
$28.86
$32.55
$43.87
$31.61
$32.47
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.17)
(0.38)
(0.30)
(0.54)
(0.50)
(0.35)
Net
realized
and
unrealized
gains
(losses)
4.28
9.28
(1.71)
(5.71)
15.88
2.91
Total
from
investment
operations
........
4.11
8.90
(2.01)
(6.25)
15.38
2.56
Less
distributions
from:
Net
realized
gains
.................
—
(5.77)
(1.68)
(5.07)
(3.12)
(3.42)
Net
asset
value,
end
of
period
..........
$36.10
$31.99
$28.86
$32.55
$43.87
$31.61
Total
return
c
.......................
12.85%
32.52%
(5.69)%
(17.20)%
49.47%
8.10%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.64%
1.66%
1.70%
1.65%
1.66%
1.70%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.64%
e
1.66%
e,f
1.69%
f
1.64%
f
1.66%
e,f
1.70%
e,f
Net
investment
(loss)
................
(0.93)%
(1.18)%
(1.05)%
(1.23)%
(1.26)%
(1.10)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$90,627
$87,686
$119,070
$158,895
$278,804
$216,757
Portfolio
turnover
rate
................
8.96%
27.49%
16.52%
g
17.20%
17.54%
19.47%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$41.85
$36.13
$40.06
$52.69
$37.32
$37.57
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.10)
(0.29)
(0.20)
(0.39)
(0.36)
(0.22)
Net
realized
and
unrealized
gains
(losses)
5.59
11.78
(2.05)
(7.17)
18.85
3.39
Total
from
investment
operations
........
5.49
11.49
(2.25)
(7.56)
18.49
3.17
Less
distributions
from:
Net
realized
gains
.................
—
(5.77)
(1.68)
(5.07)
(3.12)
(3.42)
Net
asset
value,
end
of
period
..........
$47.34
$41.85
$36.13
$40.06
$52.69
$37.32
Total
return
c
.......................
13.12%
33.18%
(5.21)%
(16.79)%
50.26%
8.64%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.14%
1.16%
1.20%
1.15%
1.15%
1.20%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.14%
e
1.16%
e,f
1.19%
f
1.14%
f
1.15%
e,f
1.20%
e,f
Net
investment
(loss)
................
(0.43)%
(0.70)%
(0.55)%
(0.73)%
(0.75)%
(0.60)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$31,719
$28,933
$22,664
$27,009
$40,396
$31,060
Portfolio
turnover
rate
................
8.96%
27.49%
16.52%
g
17.20%
17.54%
19.47%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$53.82
$44.87
$48.98
$63.06
$43.97
$43.42
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.04
(0.05)
0.02
(0.10)
(0.10)
0.01
Net
realized
and
unrealized
gains
(losses)
7.20
14.77
(2.45)
(8.91)
22.31
3.96
Total
from
investment
operations
........
7.24
14.72
(2.43)
(9.01)
22.21
3.97
Less
distributions
from:
Net
realized
gains
.................
—
(5.77)
(1.68)
(5.07)
(3.12)
(3.42)
Net
asset
value,
end
of
period
..........
$61.06
$53.82
$44.87
$48.98
$63.06
$43.97
Total
return
c
.......................
13.46%
33.94%
(4.62)%
(16.32)%
51.13%
9.34%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.57%
0.58%
0.59%
0.57%
0.57%
0.59%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.57%
e
0.58%
e,f
0.58%
f
0.57%
e,f
0.57%
e,f
0.59%
e,f
Net
investment
income
(loss)
..........
0.14%
(0.11)%
0.05%
(0.16)%
(0.17)%
0.01%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$410,720
$375,777
$449,119
$461,475
$563,918
$383,208
Portfolio
turnover
rate
................
8.96%
27.49%
16.52%
g
17.20%
17.54%
19.47%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$52.54
$43.96
$48.07
$62.01
$43.31
$42.87
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.02
(0.10)
(0.02)
(0.15)
(0.14)
(0.04)
Net
realized
and
unrealized
gains
(losses)
7.03
14.45
(2.41)
(8.72)
21.96
3.90
Total
from
investment
operations
........
7.05
14.35
(2.43)
(8.87)
21.82
3.86
Less
distributions
from:
Net
realized
gains
.................
—
(5.77)
(1.68)
(5.07)
(3.12)
(3.42)
Net
asset
value,
end
of
period
..........
$59.59
$52.54
$43.96
$48.07
$62.01
$43.31
Total
return
c
.......................
13.42%
33.80%
(4.71)%
(16.37)%
51.01%
9.20%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.64%
0.66%
0.69%
0.65%
0.66%
0.70%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.64%
e
0.66%
e,f
0.68%
f
0.64%
f
0.66%
e,f
0.70%
e,f
Net
investment
income
(loss)
..........
0.06%
(0.19)%
(0.05)%
(0.24)%
(0.26)%
(0.10)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$328,205
$291,914
$325,234
$636,524
$643,449
$467,727
Portfolio
turnover
rate
................
8.96%
27.49%
16.52%
g
17.20%
17.54%
19.47%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Growth
Opportunities
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.7%
Aerospace
&
Defense
2.7%
a
Axon
Enterprise,
Inc.
.................................
United
States
218,188
$
92,402,618
a,b,c
Space
Exploration
Technologies
Corp.
,
A
..................
United
States
142,857
15,999,984
a
Standardaero,
Inc.
..................................
United
States
500,100
14,427,885
122,830,487
Beverages
0.5%
a
Monster
Beverage
Corp.
..............................
United
States
409,808
21,588,685
Biotechnology
1.1%
a
Vaxcyte,
Inc.
.......................................
United
States
480,843
51,137,653
Broadline
Retail
6.3%
a
Amazon.com,
Inc.
...................................
United
States
1,547,369
288,429,582
Building
Products
1.4%
Trane
Technologies
plc
...............................
United
States
169,034
62,569,625
Capital
Markets
3.6%
Ares
Management
Corp.
,
A
............................
United
States
505,173
84,707,409
MSCI,
Inc.
,
A
.......................................
United
States
55,681
31,804,987
S&P
Global,
Inc.
....................................
United
States
100,764
48,402,995
164,915,391
Chemicals
1.6%
Linde
plc
..........................................
United
States
156,596
71,431,265
Commercial
Services
&
Supplies
1.4%
a,b,c
Celonis
SE
........................................
Germany
4,619
1,271,159
a,b,c
Celonis
SE
,
D
......................................
Germany
25,571
7,037,195
Republic
Services,
Inc.
,
A
.............................
United
States
288,276
57,078,648
65,387,002
Construction
Materials
0.7%
Martin
Marietta
Materials,
Inc.
..........................
United
States
57,275
33,926,274
Electrical
Equipment
0.8%
Eaton
Corp.
plc
.....................................
United
States
112,746
37,384,319
Entertainment
2.3%
a
Netflix,
Inc.
........................................
United
States
83,501
63,129,261
a
ROBLOX
Corp.
,
A
...................................
United
States
805,883
41,680,269
104,809,530
Financial
Services
2.9%
Mastercard,
Inc.
,
A
..................................
United
States
263,399
131,591,506
Food
Products
0.8%
a
Freshpet,
Inc.
......................................
United
States
292,059
38,709,500
Ground
Transportation
1.4%
a
Uber
Technologies,
Inc.
...............................
United
States
912,045
65,712,842
Health
Care
Equipment
&
Supplies
2.8%
a
Dexcom,
Inc.
.......................................
United
States
278,303
19,614,795
a
IDEXX
Laboratories,
Inc.
..............................
United
States
71,447
29,073,213
a
Intuitive
Surgical,
Inc.
................................
United
States
156,165
78,682,174
127,370,182
Health
Care
Providers
&
Services
2.8%
McKesson
Corp.
....................................
United
States
71,346
35,715,094
UnitedHealth
Group,
Inc.
..............................
United
States
167,952
94,808,904
130,523,998
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Hotels,
Restaurants
&
Leisure
2.9%
a
Chipotle
Mexican
Grill,
Inc.
,
A
..........................
United
States
1,476,013
$
82,317,245
Wingstop,
Inc.
......................................
United
States
176,407
50,750,530
133,067,775
Household
Durables
0.6%
DR
Horton,
Inc.
.....................................
United
States
153,236
25,896,884
Interactive
Media
&
Services
8.7%
Alphabet,
Inc.
,
C
....................................
United
States
511,217
88,282,064
Meta
Platforms,
Inc.
,
A
...............................
United
States
488,509
277,267,938
a
Pinterest,
Inc.
,
A
....................................
United
States
1,107,612
35,210,985
400,760,987
IT
Services
2.2%
a,b,c
Canva,
Inc.
,
A
......................................
Australia
3,094
4,160,421
a,b,c
Canva,
Inc.
,
B
......................................
Australia
11,829
15,906,148
a
Gartner,
Inc.
.......................................
United
States
105,333
52,929,833
a
MongoDB,
Inc.
,
A
...................................
United
States
102,361
27,678,414
100,674,816
Leisure
Products
1.4%
a,b,c
Fanatics
Holdings,
Inc.
...............................
United
States
1,029,939
65,918,424
Life
Sciences
Tools
&
Services
3.4%
Danaher
Corp.
.....................................
United
States
171,885
42,225,269
a
Tempus
AI,
Inc.
.....................................
United
States
784,529
35,005,684
a,d
Tempus
AI,
Inc.
,
A
...................................
United
States
71,700
3,199,254
Thermo
Fisher
Scientific,
Inc.
..........................
United
States
59,271
32,380,933
West
Pharmaceutical
Services,
Inc.
......................
United
States
139,817
43,053,849
155,864,989
Machinery
0.7%
Parker-Hannifin
Corp.
................................
United
States
49,926
31,656,579
Personal
Care
Products
1.6%
a
BellRing
Brands,
Inc.
.................................
United
States
671,117
44,179,632
a
Oddity
Tech
Ltd.
,
A
..................................
Israel
761,401
29,230,184
73,409,816
Pharmaceuticals
3.4%
AstraZeneca
plc
,
ADR
................................
United
Kingdom
345,357
24,572,150
Eli
Lilly
&
Co.
......................................
United
States
156,270
129,663,470
154,235,620
Professional
Services
2.3%
TransUnion
........................................
United
States
603,718
61,156,634
Verisk
Analytics,
Inc.
,
A
...............................
United
States
168,999
46,427,405
107,584,039
Real
Estate
Management
&
Development
0.5%
a
CoStar
Group,
Inc.
..................................
United
States
314,183
22,869,381
Semiconductors
&
Semiconductor
Equipment
15.2%
Analog
Devices,
Inc.
.................................
United
States
170,129
37,957,481
a
ARM
Holdings
plc
,
ADR
..............................
United
States
189,618
26,793,023
ASML
Holding
NV
,
ADR
..............................
Netherlands
16,593
11,159,622
Broadcom,
Inc.
.....................................
United
States
429,392
72,897,880
a
Lattice
Semiconductor
Corp.
...........................
United
States
508,181
25,744,450
Monolithic
Power
Systems,
Inc.
.........................
United
States
123,201
93,546,519
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
NVIDIA
Corp.
......................................
United
States
3,240,130
$
430,159,659
698,258,634
Software
17.0%
a
Adobe,
Inc.
........................................
United
States
36,985
17,681,789
a,b,c
ClearMotion,
Inc.
....................................
United
States
6,309,366
582,884
a
Confluent,
Inc.
,
A
....................................
United
States
299,634
7,841,422
a
Crowdstrike
Holdings,
Inc.
,
A
...........................
United
States
162,671
48,292,140
a
Datadog,
Inc.
,
A
....................................
United
States
105,681
13,256,625
a
Fair
Isaac
Corp.
....................................
United
States
43,192
86,086,407
a,b
Fortinet,
Inc.
.......................................
United
States
810,440
—
a
HubSpot,
Inc.
......................................
United
States
22,973
12,745,191
Intuit,
Inc.
.........................................
United
States
49,534
30,230,600
Microsoft
Corp.
.....................................
United
States
538,088
218,652,059
a
Monday.com
Ltd.
....................................
United
States
110,435
32,453,533
Oracle
Corp.
.......................................
United
States
299,904
50,335,887
Roper
Technologies,
Inc.
..............................
United
States
43,938
23,626,781
Salesforce,
Inc.
.....................................
United
States
117,529
34,244,425
a
ServiceNow,
Inc.
....................................
United
States
104,088
97,113,063
a
Synopsys,
Inc.
.....................................
United
States
116,156
59,658,883
a
Tyler
Technologies,
Inc.
...............................
United
States
75,967
46,004,855
778,806,544
Specialty
Retail
0.5%
a
AutoZone,
Inc.
.....................................
United
States
7,878
23,704,902
Technology
Hardware,
Storage
&
Peripherals
5.2%
Apple,
Inc.
........................................
United
States
1,054,760
238,280,832
Total
Common
Stocks
(Cost
$
1,812,535,256
)
..................................
4,529,308,063
Convertible
Preferred
Stocks
0.7%
Software
0.7%
a,b,c
Databricks,
Inc.
,
G
..................................
United
States
338,280
24,863,580
a,b,c
OneTrust
LLC
,
C
....................................
United
States
517,056
8,236,707
33,100,287
Total
Convertible
Preferred
Stocks
(Cost
$
30,139,628
)
.........................
33,100,287
Preferred
Stocks
0.4%
Commercial
Services
&
Supplies
0.2%
a,b,c
Optoro,
Inc.
,
E
.....................................
United
States
556,026
9,048,668
a
Software
0.2%
a,b,c
ClearMotion,
Inc.
,
A-3
................................
United
States
417,667
51,553
a,b,c
ClearMotion,
Inc.
,
A-4
................................
United
States
2,606,463
299,483
a,b,c
Tanium,
Inc.
,
G
.....................................
United
States
805,800
6,839,559
7,190,595
Total
Preferred
Stocks
(Cost
$
15,194,325
)
....................................
16,239,263
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.0%
a,b
Wheels
Up
Experience,
Inc.,
Escrow
Account
..............
United
States
10,278
$
—
Total
Escrows
and
Litigation
Trusts
(Cost
$
–
)
.................................
—
Total
Long
Term
Investments
(Cost
$
1,857,869,209
)
...........................
4,578,647,613
a
Short
Term
Investments
0.4%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.3%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
15,990,327
15,990,327
Total
Money
Market
Funds
(Cost
$
15,990,327
)
................................
15,990,327
g
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
3,166,650
3,166,650
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
3,166,650
)
..........................................................
3,166,650
Total
Short
Term
Investments
(Cost
$
19,156,977
)
..............................
19,156,977
a
Total
Investments
(Cost
$
1,877,026,186
)
100.2
%
..............................
$4,597,804,590
Other
Assets,
less
Liabilities
(
0.2
)
%
.........................................
(9,441,679)
Net
Assets
100.0%
.........................................................
$4,588,362,911
a
a
a
See
Abbreviations
on
page
57
.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
c
See
Note
6
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2024.
See
Note
1(c).
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
g
See
Note
1(c)
regarding
securities
on
loan.
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.93
$17.19
$17.78
$30.08
$18.85
$21.46
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.07)
(0.09)
(0.09)
(0.14)
(0.18)
(0.11)
Net
realized
and
unrealized
gains
(losses)
1.64
3.83
(0.40)
(7.89)
14.24
(1.07)
Total
from
investment
operations
........
1.57
3.74
(0.49)
(8.03)
14.06
(1.18)
Less
distributions
from:
Net
realized
gains
.................
—
—
(0.10)
(4.27)
(2.83)
(1.43)
Net
asset
value,
end
of
period
..........
$22.50
$20.93
$17.19
$17.78
$30.08
$18.85
Total
return
c
.......................
7.50%
21.76%
(2.73)%
(29.53)%
76.43%
(6.25)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.05%
1.08%
1.11%
1.03%
1.03%
1.07%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.04%
1.07%
e
1.10%
e
1.03%
e,f
1.02%
e
1.06%
e
Net
investment
(loss)
................
(0.62)%
(0.48)%
(0.54)%
(0.54)%
(0.69)%
(0.51)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$921,696
$881,445
$763,871
$860,536
$1,244,591
$686,791
Portfolio
turnover
rate
................
9.15%
g
15.99%
16.86%
30.88%
47.80%
35.29%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$14.32
$11.84
$12.37
$22.57
$14.69
$17.15
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.10)
(0.16)
(0.15)
(0.25)
(0.29)
(0.21)
Net
realized
and
unrealized
gains
(losses)
1.12
2.64
(0.28)
(5.68)
11.00
(0.82)
Total
from
investment
operations
........
1.02
2.48
(0.43)
(5.93)
10.71
(1.03)
Less
distributions
from:
Net
realized
gains
.................
—
—
(0.10)
(4.27)
(2.83)
(1.43)
Net
asset
value,
end
of
period
..........
$15.34
$14.32
$11.84
$12.37
$22.57
$14.69
Total
return
c
.......................
7.12%
20.95%
(3.44)%
(30.07)%
75.13%
(6.97)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.80%
1.83%
1.86%
1.78%
1.78%
1.82%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.79%
1.82%
e
1.84%
e
1.78%
e,f
1.77%
e
1.81%
e
Net
investment
(loss)
................
(1.37)%
(1.23)%
(1.28)%
(1.31)%
(1.43)%
(1.26)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$22,775
$22,351
$20,551
$32,755
$86,394
$66,269
Portfolio
turnover
rate
................
9.15%
g
15.99%
16.86%
30.88%
47.80%
35.29%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$18.85
$15.52
$16.10
$27.76
$17.58
$20.15
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.09)
(0.12)
(0.12)
(0.19)
(0.23)
(0.15)
Net
realized
and
unrealized
gains
(losses)
1.47
3.45
(0.36)
(7.20)
13.24
(0.99)
Total
from
investment
operations
........
1.38
3.33
(0.48)
(7.39)
13.01
(1.14)
Less
distributions
from:
Net
realized
gains
.................
—
—
(0.10)
(4.27)
(2.83)
(1.43)
Net
asset
value,
end
of
period
..........
$20.23
$18.85
$15.52
$16.10
$27.76
$17.58
Total
return
c
.......................
7.32%
21.46%
(2.95)%
(29.71)%
75.96%
(6.47)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.30%
1.33%
1.36%
1.28%
1.28%
1.32%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.29%
1.32%
e
1.35%
e
1.28%
e,f
1.27%
e
1.31%
e
Net
investment
(loss)
................
(0.87)%
(0.73)%
(0.79)%
(0.79)%
(0.93)%
(0.76)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$39,759
$39,963
$39,777
$50,324
$79,314
$54,369
Portfolio
turnover
rate
................
9.15%
g
15.99%
16.86%
30.88%
47.80%
35.29%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$24.63
$20.15
$20.73
$34.14
$21.07
$23.73
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.03)
(0.02)
(0.02)
(0.04)
(0.09)
(0.02)
Net
realized
and
unrealized
gains
(losses)
1.93
4.50
(0.46)
(9.10)
15.99
(1.21)
Total
from
investment
operations
........
1.90
4.48
(0.48)
(9.14)
15.90
(1.23)
Less
distributions
from:
Net
realized
gains
.................
—
—
(0.10)
(4.27)
(2.83)
(1.43)
Net
asset
value,
end
of
period
..........
$26.53
$24.63
$20.15
$20.73
$34.14
$21.07
Total
return
c
.......................
7.71%
22.23%
(2.29)%
(29.26)%
77.13%
(5.86)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.66%
0.67%
0.68%
0.65%
0.65%
0.67%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.65%
0.66%
e
0.66%
e
0.64%
e
0.64%
e
0.64%
e
Net
investment
(loss)
................
(0.23)%
(0.07)%
(0.10)%
(0.15)%
(0.31)%
(0.09)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$1,383,641
$1,458,516
$1,345,064
$1,529,170
$2,149,795
$1,136,759
Portfolio
turnover
rate
................
9.15%
f
15.99%
16.86%
30.88%
47.80%
35.29%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$23.91
$19.59
$20.19
$33.43
$20.70
$23.37
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.05)
(0.05)
(0.05)
(0.08)
(0.13)
(0.06)
Net
realized
and
unrealized
gains
(losses)
1.88
4.37
(0.45)
(8.89)
15.69
(1.18)
Total
from
investment
operations
........
1.83
4.32
(0.50)
(8.97)
15.56
(1.24)
Less
distributions
from:
Net
realized
gains
.................
—
—
(0.10)
(4.27)
(2.83)
(1.43)
Net
asset
value,
end
of
period
..........
$25.74
$23.91
$19.59
$20.19
$33.43
$20.70
Total
return
c
.......................
7.61%
22.10%
(2.50)%
(29.34)%
76.86%
(5.99)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.80%
0.83%
0.86%
0.78%
0.78%
0.82%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.79%
0.82%
e
0.85%
e
0.77%
e
0.77%
e
0.81%
e
Net
investment
(loss)
................
(0.37)%
(0.23)%
(0.29)%
(0.29)%
(0.44)%
(0.26)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$390,171
$390,099
$341,973
$433,191
$739,985
$428,155
Portfolio
turnover
rate
................
9.15%
f
15.99%
16.86%
30.88%
47.80%
35.29%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Small
Cap
Growth
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.0%
Aerospace
&
Defense
6.6%
a
AAR
Corp.
........................................
United
States
820,927
$
48,188,415
BWX
Technologies,
Inc.
..............................
United
States
654,676
79,706,803
a
Kratos
Defense
&
Security
Solutions,
Inc.
.................
United
States
1,687,578
38,341,772
a
Loar
Holdings,
Inc.
..................................
United
States
170,927
14,730,489
180,967,479
Banks
2.1%
Pinnacle
Financial
Partners,
Inc.
........................
United
States
313,681
33,077,662
Western
Alliance
Bancorp
.............................
United
States
286,700
23,856,307
56,933,969
Biotechnology
8.6%
a
Acumen
Pharmaceuticals,
Inc.
.........................
United
States
896,191
2,581,030
a
Apogee
Therapeutics,
Inc.
.............................
United
States
385,736
20,073,701
a
Ascendis
Pharma
A/S
,
ADR
...........................
Denmark
195,591
24,022,487
a,b
Centessa
Pharmaceuticals
plc
,
ADR
.....................
United
States
428,600
6,446,144
a
CG
oncology,
Inc.
...................................
United
States
260,325
9,249,347
a
Cullinan
Therapeutics,
Inc.
............................
United
States
791,566
12,308,851
a
Cytokinetics,
Inc.
....................................
United
States
148,673
7,582,323
a
Day
One
Biopharmaceuticals,
Inc.
.......................
United
States
1,395,794
20,546,088
a
Dyne
Therapeutics,
Inc.
..............................
United
States
487,887
14,080,419
a
Insmed,
Inc.
.......................................
United
States
627,103
42,191,490
a
Kura
Oncology,
Inc.
..................................
United
States
621,521
10,391,831
a
Merus
NV
.........................................
Netherlands
529,063
26,416,116
a
Syndax
Pharmaceuticals,
Inc.
..........................
United
States
566,578
10,685,661
a
Twist
Bioscience
Corp.
...............................
United
States
94,143
3,799,611
a
Vaxcyte,
Inc.
.......................................
United
States
259,434
27,590,806
237,965,905
Building
Products
1.2%
AAON,
Inc.
........................................
United
States
302,690
34,573,252
Capital
Markets
3.5%
Bridge
Investment
Group
Holdings,
Inc.
,
A
.................
United
States
1,198,286
13,037,352
Evercore,
Inc.
,
A
....................................
United
States
153,424
40,530,018
Houlihan
Lokey,
Inc.
,
A
...............................
United
States
250,922
43,351,794
96,919,164
Communications
Equipment
0.4%
a
Viavi
Solutions,
Inc.
..................................
United
States
1,211,902
11,173,736
Construction
&
Engineering
4.2%
Arcosa,
Inc.
.......................................
United
States
705,117
66,027,156
Granite
Construction,
Inc.
.............................
United
States
585,306
49,194,969
115,222,125
Consumer
Staples
Distribution
&
Retail
0.6%
a
Performance
Food
Group
Co.
..........................
United
States
200,342
16,277,788
Diversified
Consumer
Services
0.1%
a
Nerdy,
Inc.
........................................
United
States
3,286,884
2,971,343
Electronic
Equipment,
Instruments
&
Components
1.7%
Vontier
Corp.
.......................................
United
States
1,296,325
48,067,731
Energy
Equipment
&
Services
1.4%
Liberty
Energy,
Inc.
,
A
................................
United
States
2,192,568
37,427,136
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Financial
Services
4.6%
a
Flywire
Corp.
......................................
United
States
1,792,067
$
31,217,807
a
Paymentus
Holdings,
Inc.
,
A
...........................
United
States
1,868,115
45,974,310
a
Repay
Holdings
Corp.
,
A
..............................
United
States
1,166,041
9,275,856
a
Shift4
Payments,
Inc.
,
A
..............................
United
States
451,397
40,824,345
127,292,318
Food
Products
3.1%
a
Freshpet,
Inc.
......................................
United
States
410,581
54,418,406
a
Simply
Good
Foods
Co.
(The)
..........................
United
States
909,345
30,608,552
85,026,958
Health
Care
Equipment
&
Supplies
5.6%
a
Ceribell,
Inc.
.......................................
United
States
453,200
11,914,628
a
Haemonetics
Corp.
..................................
United
States
480,661
34,203,837
a
Inari
Medical,
Inc.
...................................
United
States
182,822
8,848,585
a
Inspire
Medical
Systems,
Inc.
..........................
United
States
181,360
35,372,454
a
Integer
Holdings
Corp.
...............................
United
States
391,277
48,616,167
a
Neogen
Corp.
......................................
United
States
811,493
11,588,120
a
Pulmonx
Corp.
.....................................
United
States
509,935
3,187,094
153,730,885
Health
Care
Providers
&
Services
3.5%
a
HealthEquity,
Inc.
...................................
United
States
557,388
47,517,327
a
Hims
&
Hers
Health,
Inc.
..............................
United
States
511,200
9,625,896
a
NeoGenomics,
Inc.
..................................
United
States
1,257,478
17,089,126
a
Privia
Health
Group,
Inc.
..............................
United
States
1,183,736
21,733,393
95,965,742
Health
Care
Technology
0.8%
a
Phreesia,
Inc.
......................................
United
States
1,289,332
23,581,882
Hotel
&
Resort
REITs
0.4%
Pebblebrook
Hotel
Trust
..............................
United
States
912,850
10,935,943
Hotels,
Restaurants
&
Leisure
6.9%
a
Cava
Group,
Inc.
....................................
United
States
370,800
49,524,048
a
Portillo's,
Inc.
,
A
....................................
United
States
1,176,015
15,205,874
Red
Rock
Resorts,
Inc.
,
A
.............................
United
States
850,362
43,759,628
Texas
Roadhouse,
Inc.
,
A
.............................
United
States
246,963
47,199,569
Wingstop,
Inc.
......................................
United
States
117,055
33,675,553
189,364,672
Household
Durables
2.2%
a
M/I
Homes,
Inc.
.....................................
United
States
192,667
29,206,391
a
Sonos,
Inc.
........................................
United
States
575,557
7,211,729
a
Tri
Pointe
Homes,
Inc.
................................
United
States
585,880
23,687,128
60,105,248
Industrial
REITs
0.9%
Rexford
Industrial
Realty,
Inc.
..........................
United
States
582,415
24,979,779
Interactive
Media
&
Services
0.7%
a
ZoomInfo
Technologies,
Inc.
,
A
.........................
United
States
1,740,082
19,227,906
IT
Services
1.2%
a
BigCommerce
Holdings,
Inc.
,
1
.........................
United
States
1,434,010
7,514,212
a
Couchbase,
Inc.
....................................
United
States
1,663,567
26,733,522
34,247,734
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
0.1%
a
CryoPort,
Inc.
......................................
United
States
326,941
$
2,177,427
Machinery
1.0%
a
RBC
Bearings,
Inc.
..................................
United
States
94,207
26,410,932
Media
1.6%
New
York
Times
Co.
(The)
,
A
...........................
United
States
790,721
44,153,861
Oil,
Gas
&
Consumable
Fuels
1.3%
Matador
Resources
Co.
..............................
United
States
711,687
37,086,010
Passenger
Airlines
2.2%
a
Alaska
Air
Group,
Inc.
................................
United
States
562,817
26,964,562
Allegiant
Travel
Co.
..................................
United
States
542,375
35,259,799
62,224,361
Personal
Care
Products
2.9%
a
BellRing
Brands,
Inc.
.................................
United
States
1,002,036
65,964,030
a
Oddity
Tech
Ltd.
,
A
..................................
Israel
347,085
13,324,593
79,288,623
Pharmaceuticals
2.2%
a
EyePoint
Pharmaceuticals,
Inc.
.........................
United
States
1,180,568
13,883,479
a
Intra-Cellular
Therapies,
Inc.
...........................
United
States
296,448
25,123,968
a
Pliant
Therapeutics,
Inc.
..............................
United
States
515,800
7,257,306
a
Revance
Therapeutics,
Inc.
............................
United
States
1,020,863
6,023,092
a
Structure
Therapeutics,
Inc.
,
ADR
.......................
United
States
193,612
7,967,134
60,254,979
Professional
Services
1.5%
a
Legalzoom.com,
Inc.
.................................
United
States
2,653,709
19,053,631
a
Paycor
HCM,
Inc.
...................................
United
States
1,437,260
21,688,253
40,741,884
Semiconductors
&
Semiconductor
Equipment
6.3%
a
Lattice
Semiconductor
Corp.
...........................
United
States
820,073
41,544,898
a
Onto
Innovation,
Inc.
.................................
United
States
304,302
60,352,216
a
Silicon
Laboratories,
Inc.
..............................
United
States
184,999
19,213,996
a
SiTime
Corp.
.......................................
United
States
313,384
52,965,030
174,076,140
Software
11.8%
a
Alkami
Technology,
Inc.
...............................
United
States
664,224
24,317,240
a
AvePoint,
Inc.
......................................
United
States
895,549
10,871,965
a,c,d
ClearMotion,
Inc.
....................................
United
States
3,698,772
341,707
a
Confluent,
Inc.
,
A
....................................
United
States
949,200
24,840,564
a
CS
Disco,
Inc.
......................................
United
States
1,496,253
8,797,968
a
Freshworks,
Inc.
,
A
..................................
United
States
1,969,857
23,047,327
a
Gitlab,
Inc.
,
A
......................................
United
States
873,919
46,973,146
a
LiveRamp
Holdings,
Inc.
..............................
United
States
1,323,322
33,122,750
a
Monday.com
Ltd.
....................................
United
States
195,824
57,546,799
a
nCino,
Inc.
........................................
United
States
1,010,497
37,691,538
a
Onestream,
Inc.
,
A
..................................
United
States
98,389
2,904,443
a
Procore
Technologies,
Inc.
............................
United
States
457,260
30,019,119
a,c,d
ServiceTitan,
Inc.
...................................
United
States
148,478
11,674,652
a
SPS
Commerce,
Inc.
.................................
United
States
88,200
14,553,000
326,702,218
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Specialty
Retail
2.0%
American
Eagle
Outfitters,
Inc.
.........................
United
States
537,576
$
10,531,114
a
Boot
Barn
Holdings,
Inc.
..............................
United
States
183,603
22,867,754
Lithia
Motors,
Inc.
,
A
.................................
United
States
69,017
22,939,180
56,338,048
Textiles,
Apparel
&
Luxury
Goods
0.6%
a
Figs,
Inc.
,
A
........................................
United
States
853,759
5,335,994
Steven
Madden
Ltd.
.................................
United
States
235,301
10,581,486
15,917,480
Trading
Companies
&
Distributors
2.2%
a
Beacon
Roofing
Supply,
Inc.
...........................
United
States
446,413
41,101,245
Herc
Holdings,
Inc.
..................................
United
States
88,000
18,404,320
59,505,565
Total
Common
Stocks
(Cost
$
1,823,699,337
)
..................................
2,647,836,223
Convertible
Preferred
Stocks
2.8%
Automobile
Components
0.5%
a,c,d
Flock
Group,
Inc.
,
G
.................................
United
States
98,754
13,927,374
a
Diversified
Consumer
Services
0.5%
a,c,d
Newsela,
Inc.
,
D
....................................
United
States
709,046
13,670,013
a
Software
1.5%
a,c,d
Benchling,
Inc.
,
F
...................................
United
States
382,306
6,440,837
a,c,d
Checkr,
Inc.
,
E
.....................................
United
States
1,388,889
22,284,092
a,c,d
OneTrust
LLC
,
A
....................................
United
States
625,361
9,962,007
a,c,d
OneTrust
LLC
,
A-1
..................................
United
States
56,457
899,361
a,c,d
Smule,
Inc.
,
J
......................................
United
States
162,712
2,310,829
41,897,126
Specialty
Retail
0.3%
a,c,d
1661,
Inc.
,
F
.......................................
United
States
3,436,485
6,349,930
a
Total
Convertible
Preferred
Stocks
(Cost
$
90,764,293
)
.........................
75,844,443
Preferred
Stocks
0.6%
Automobile
Components
0.2%
a,c,d
Tula
eTechnology,
Inc.
................................
United
States
361,111
—
a,c,d
Tula
eTechnology,
Inc.
,
E
.............................
United
States
3,611,111
6,872,612
6,872,612
Commercial
Services
&
Supplies
0.3%
a,c,d
Optoro,
Inc.
,
E
.....................................
United
States
554,878
9,029,985
a
Software
0.1%
a,c,d
ClearMotion,
Inc.
,
A-3
................................
United
States
1,037,942
128,114
a,c,d
ClearMotion,
Inc.
,
A-4
................................
United
States
6,477,294
744,241
a,c,d
Smule,
Inc.
,
144A
,
G
.................................
United
States
1,542,673
604,234
a,c,d
Smule,
Inc.
,
144A
,
H
.................................
United
States
352,675
163,307
1,639,896
Total
Preferred
Stocks
(Cost
$
32,144,989
)
....................................
17,542,493
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
See
Abbreviations
on
page
57
.
a
a
Country
Rights
a
Value
a
a
a
a
a
a
Rights
0.0%
†
Biotechnology
0.0%
†
a,c,d
Chinook
Therapeutics,
Inc.,
CVR
,
6/30/30
.................
United
States
410,500
$
442,931
Total
Rights
(Cost
$
160,095
)
................................................
442,931
Shares
Escrows
and
Litigation
Trusts
0.0%
a,c
Wheels
Up
Experience,
Inc.,
Escrow
Account
..............
United
States
8,808
—
Total
Escrows
and
Litigation
Trusts
(Cost
$
–
)
.................................
—
Total
Long
Term
Investments
(Cost
$
1,946,768,714
)
...........................
2,741,666,090
a
Short
Term
Investments
0.8%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.8%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
20,434,264
20,434,264
Total
Money
Market
Funds
(Cost
$
20,434,264
)
................................
20,434,264
g
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.0%
†
Money
Market
Funds
0.0%
†
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
810,650
810,650
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
810,650
)
...........................................................
810,650
Total
Short
Term
Investments
(Cost
$
21,244,914
)
..............................
21,244,914
a
Total
Investments
(Cost
$
1,968,013,628
)
100.2
%
..............................
$2,762,911,004
Other
Assets,
less
Liabilities
(
0.2
)
%
.........................................
(4,868,912)
Net
Assets
100.0%
.........................................................
$2,758,042,092
a
a
a
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2024.
See
Note
1(c).
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
d
See
Note
6
regarding
restricted
securities.
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
g
See
Note
1(c)
regarding
securities
on
loan.
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$35.22
$29.75
$33.07
$49.66
$32.15
$37.17
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(—)
c
(0.01)
(0.05)
(0.25)
(0.24)
(0.07)
Net
realized
and
unrealized
gains
(losses)
2.78
5.48
(1.39)
(9.42)
21.89
1.24
Total
from
investment
operations
........
2.78
5.47
(1.44)
(9.67)
21.65
1.17
Less
distributions
from:
Net
realized
gains
.................
—
—
(1.88)
(6.92)
(4.14)
(6.19)
Net
asset
value,
end
of
period
..........
$38.00
$35.22
$29.75
$33.07
$49.66
$32.15
Total
return
d
.......................
7.90%
18.39%
(4.07)%
(22.83)%
68.37%
2.97%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.85%
0.87%
0.90%
0.85%
0.86%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.85%
0.85%
f
0.88%
f
0.84%
f
0.85%
f
0.87%
f
Net
investment
(loss)
................
(—)%
g
(0.02)%
(0.17)%
(0.54)%
(0.54)%
(0.21)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$2,885,426
$2,822,866
$2,578,199
$3,019,703
$4,217,167
$2,515,801
Portfolio
turnover
rate
................
21.22%
h
37.02%
27.75%
48.89%
53.69%
52.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.80
$13.45
$16.20
$27.98
$19.41
$24.98
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.06)
(0.11)
(0.13)
(0.32)
(0.33)
(0.22)
Net
realized
and
unrealized
gains
(losses)
1.25
2.46
(0.74)
(4.54)
13.04
0.84
Total
from
investment
operations
........
1.19
2.35
(0.87)
(4.86)
12.71
0.62
Less
distributions
from:
Net
realized
gains
.................
—
—
(1.88)
(6.92)
(4.14)
(6.19)
Net
asset
value,
end
of
period
..........
$16.99
$15.80
$13.45
$16.20
$27.98
$19.41
Total
return
c
.......................
7.53%
17.47%
(4.76)%
(23.43)%
67.11%
2.14%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.60%
1.62%
1.65%
1.60%
1.61%
1.63%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.59%
1.60%
e
1.63%
e
1.59%
e
1.60%
e
1.62%
e
Net
investment
(loss)
................
(0.75)%
(0.77)%
(0.92)%
(1.29)%
(1.28)%
(0.96)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$57,889
$60,281
$82,982
$110,596
$198,713
$138,940
Portfolio
turnover
rate
................
21.22%
f
37.02%
27.75%
48.89%
53.69%
52.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$29.44
$24.93
$28.11
$43.32
$28.45
$33.66
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.04)
(0.07)
(0.11)
(0.32)
(0.30)
(0.14)
Net
realized
and
unrealized
gains
(losses)
2.33
4.58
(1.19)
(7.97)
19.31
1.12
Total
from
investment
operations
........
2.29
4.51
(1.30)
(8.29)
19.01
0.98
Less
distributions
from:
Net
realized
gains
.................
—
—
(1.88)
(6.92)
(4.14)
(6.19)
Net
asset
value,
end
of
period
..........
$31.73
$29.44
$24.93
$28.11
$43.32
$28.45
Total
return
c
.......................
7.78%
18.09%
(4.30)%
(23.00)%
67.96%
2.69%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.10%
1.12%
1.15%
1.10%
1.10%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.09%
1.10%
e
1.13%
e
1.09%
e
1.09%
e
1.11%
e
Net
investment
(loss)
................
(0.25)%
(0.27)%
(0.42)%
(0.79)%
(0.78)%
(0.45)%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$37,060
$37,276
$34,371
$38,761
$60,264
$40,997
Portfolio
turnover
rate
................
21.22%
f
37.02%
27.75%
48.89%
53.69%
52.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$43.23
$36.39
$39.84
$58.24
$37.12
$41.83
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.08
0.14
0.08
(0.10)
(0.10)
0.07
Net
realized
and
unrealized
gains
(losses)
3.42
6.70
(1.65)
(11.38)
25.36
1.41
Total
from
investment
operations
........
3.50
6.84
(1.57)
(11.48)
25.26
1.48
Less
distributions
from:
Net
realized
gains
.................
—
—
(1.88)
(6.92)
(4.14)
(6.19)
Net
asset
value,
end
of
period
..........
$46.73
$43.23
$36.39
$39.84
$58.24
$37.12
Total
return
c
.......................
8.07%
18.82%
(3.70)%
(22.57)%
68.95%
3.40%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.51%
0.51%
0.53%
0.51%
0.51%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.50%
0.49%
e
0.49%
e
0.50%
e
0.49%
e
0.48%
e
Net
investment
income
(loss)
..........
0.34%
0.34%
0.23%
(0.19)%
(0.19)%
0.18%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$519,842
$539,962
$451,447
$540,509
$648,078
$224,341
Portfolio
turnover
rate
................
21.22%
f
37.02%
27.75%
48.89%
53.69%
52.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$41.79
$35.22
$38.68
$56.79
$36.30
$41.09
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.05
0.09
0.03
(0.15)
(0.14)
0.02
Net
realized
and
unrealized
gains
(losses)
3.31
6.48
(1.61)
(11.04)
24.77
1.38
Total
from
investment
operations
........
3.36
6.57
(1.58)
(11.19)
24.63
1.40
Less
distributions
from:
Net
realized
gains
.................
—
—
(1.88)
(6.92)
(4.14)
(6.19)
Net
asset
value,
end
of
period
..........
$45.15
$41.79
$35.22
$38.68
$56.79
$36.30
Total
return
c
.......................
8.01%
18.68%
(3.81)%
(22.65)%
68.77%
3.26%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.61%
0.62%
0.65%
0.60%
0.61%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.60%
0.60%
e
0.63%
e
0.59%
e
0.60%
e
0.62%
e
Net
investment
income
(loss)
..........
0.25%
0.23%
0.08%
(0.28)%
(0.29)%
0.04%
Supplemental
data
Net
assets
,
end
of
period
(000’s)
........
$460,908
$435,671
$469,050
$532,573
$552,987
$302,329
Portfolio
turnover
rate
................
21.22%
f
37.02%
27.75%
48.89%
53.69%
52.98%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
9
for
current
period
information.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Small-Mid
Cap
Growth
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.5%
Aerospace
&
Defense
2.8%
a
Axon
Enterprise,
Inc.
.................................
United
States
210,642
$
89,206,887
BWX
Technologies,
Inc.
..............................
United
States
96,400
11,736,700
a
Standardaero,
Inc.
..................................
United
States
378,943
10,932,506
111,876,093
Banks
0.5%
Fifth
Third
Bancorp
..................................
United
States
462,400
20,197,632
Beverages
0.5%
a
Celsius
Holdings,
Inc.
................................
United
States
664,566
19,990,145
Biotechnology
2.5%
a
Alnylam
Pharmaceuticals,
Inc.
..........................
United
States
151,487
40,384,919
a
Ascendis
Pharma
A/S
,
ADR
...........................
Denmark
56,964
6,996,318
a
CG
oncology,
Inc.
...................................
United
States
347,371
12,342,092
a
Natera,
Inc.
........................................
United
States
174,300
21,083,328
a
Vaxcyte,
Inc.
.......................................
United
States
176,610
18,782,474
99,589,131
Building
Products
1.9%
Trane
Technologies
plc
...............................
United
States
198,095
73,326,845
Capital
Markets
9.1%
Ares
Management
Corp.
,
A
............................
United
States
604,136
101,301,524
Blue
Owl
Capital,
Inc.
,
A
..............................
United
States
2,606,949
58,291,380
LPL
Financial
Holdings,
Inc.
...........................
United
States
128,548
36,273,675
MSCI,
Inc.
,
A
.......................................
United
States
128,302
73,286,102
Nasdaq,
Inc.
.......................................
United
States
667,136
49,314,693
Tradeweb
Markets,
Inc.
,
A
.............................
United
States
338,776
43,024,552
361,491,926
Containers
&
Packaging
1.2%
Avery
Dennison
Corp.
................................
United
States
225,003
46,582,371
Electrical
Equipment
2.4%
AMETEK,
Inc.
......................................
United
States
248,306
45,524,422
Vertiv
Holdings
Co.
,
A
................................
United
States
442,400
48,349,896
93,874,318
Energy
Equipment
&
Services
0.7%
Halliburton
Co.
.....................................
United
States
1,036,119
28,741,941
Entertainment
1.8%
a
ROBLOX
Corp.
,
A
...................................
United
States
1,362,728
70,480,292
Financial
Services
1.5%
a
Block,
Inc.
,
A
.......................................
United
States
815,392
58,969,149
Food
Products
1.0%
a
Freshpet,
Inc.
......................................
United
States
287,998
38,171,255
Ground
Transportation
2.0%
Old
Dominion
Freight
Line,
Inc.
.........................
United
States
392,083
78,934,150
Health
Care
Equipment
&
Supplies
4.0%
a
Dexcom,
Inc.
.......................................
United
States
940,900
66,314,632
a
IDEXX
Laboratories,
Inc.
..............................
United
States
90,092
36,660,237
a
Penumbra,
Inc.
.....................................
United
States
245,262
56,133,114
159,107,983
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Providers
&
Services
0.7%
a
HealthEquity,
Inc.
...................................
United
States
329,439
$
28,084,675
Health
Care
Technology
1.6%
a
Veeva
Systems,
Inc.
,
A
...............................
United
States
304,677
63,625,698
Hotels,
Restaurants
&
Leisure
6.5%
a
Cava
Group,
Inc.
....................................
United
States
463,364
61,886,896
a
DoorDash,
Inc.
,
A
...................................
United
States
528,476
82,812,189
Texas
Roadhouse,
Inc.
,
A
.............................
United
States
267,700
51,162,824
Wingstop,
Inc.
......................................
United
States
147,583
42,458,153
Wynn
Resorts
Ltd.
..................................
United
States
218,001
20,932,456
259,252,518
Household
Durables
1.2%
a
NVR,
Inc.
.........................................
United
States
5,278
48,308,531
Industrial
REITs
0.8%
Terreno
Realty
Corp.
.................................
United
States
536,495
32,162,875
Insurance
1.3%
Arthur
J
Gallagher
&
Co.
..............................
United
States
188,152
52,908,342
Interactive
Media
&
Services
1.4%
a
Pinterest,
Inc.
,
A
....................................
United
States
1,710,179
54,366,590
IT
Services
4.9%
a
Cloudflare,
Inc.
,
A
...................................
United
States
558,956
49,026,031
a
Gartner,
Inc.
.......................................
United
States
166,859
83,846,647
a
MongoDB,
Inc.
,
A
...................................
United
States
223,945
60,554,728
193,427,406
Leisure
Products
1.3%
a,b,c
Fanatics
Holdings,
Inc.
...............................
United
States
793,714
50,799,490
Life
Sciences
Tools
&
Services
2.2%
Agilent
Technologies,
Inc.
.............................
United
States
362,943
47,295,102
a
Repligen
Corp.
.....................................
United
States
293,819
39,451,077
86,746,179
Machinery
2.0%
IDEX
Corp.
........................................
United
States
174,945
37,550,195
Xylem,
Inc.
........................................
United
States
353,508
43,050,204
80,600,399
Media
2.5%
New
York
Times
Co.
(The)
,
A
...........................
United
States
708,328
39,553,036
a
Trade
Desk,
Inc.
(The)
,
A
..............................
United
States
501,000
60,225,210
99,778,246
Oil,
Gas
&
Consumable
Fuels
2.7%
Cheniere
Energy,
Inc.
................................
United
States
216,374
41,409,656
Hess
Corp.
........................................
United
States
276,317
37,159,110
Targa
Resources
Corp.
...............................
United
States
176,520
29,471,780
108,040,546
Personal
Care
Products
0.9%
a
BellRing
Brands,
Inc.
.................................
United
States
530,031
34,891,941
Pharmaceuticals
1.0%
a
Jazz
Pharmaceuticals
plc
.............................
United
States
354,577
39,014,107
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Professional
Services
5.3%
Paychex,
Inc.
......................................
United
States
566,609
$
78,945,632
TransUnion
........................................
United
States
426,734
43,228,154
Verisk
Analytics,
Inc.
,
A
...............................
United
States
313,834
86,216,477
208,390,263
Residential
REITs
0.8%
Equity
LifeStyle
Properties,
Inc.
.........................
United
States
451,313
31,646,068
Semiconductors
&
Semiconductor
Equipment
5.0%
ASM
International
NV
................................
Netherlands
47,500
26,529,093
a
Astera
Labs,
Inc.
....................................
United
States
81,900
5,746,104
a
Lattice
Semiconductor
Corp.
...........................
United
States
947,246
47,987,482
Monolithic
Power
Systems,
Inc.
.........................
United
States
65,472
49,712,890
a
Onto
Innovation,
Inc.
.................................
United
States
128,529
25,491,156
a
SiTime
Corp.
.......................................
United
States
251,170
42,450,242
197,916,967
Software
14.2%
a
Alkami
Technology,
Inc.
...............................
United
States
885,772
32,428,113
a
ANSYS,
Inc.
.......................................
United
States
122,891
39,375,505
a
Arteris,
Inc.
........................................
United
States
1,328,254
9,045,410
a
Confluent,
Inc.
,
A
....................................
United
States
1,356,385
35,496,595
a
Crowdstrike
Holdings,
Inc.
,
A
...........................
United
States
172,486
51,205,919
a
Datadog,
Inc.
,
A
....................................
United
States
493,168
61,862,994
a
Fair
Isaac
Corp.
....................................
United
States
42,268
84,244,773
a
HubSpot,
Inc.
......................................
United
States
126,890
70,397,303
a
Manhattan
Associates,
Inc.
............................
United
States
130,900
34,473,824
a
Monday.com
Ltd.
....................................
United
States
106,801
31,385,610
a
Procore
Technologies,
Inc.
............................
United
States
402,161
26,401,870
a
Synopsys,
Inc.
.....................................
United
States
89,760
46,101,634
a
Tyler
Technologies,
Inc.
...............................
United
States
67,800
41,059,002
563,478,552
Specialty
Retail
5.5%
a
AutoZone,
Inc.
.....................................
United
States
12,200
36,709,800
a
Burlington
Stores,
Inc.
................................
United
States
237,867
58,936,306
Ross
Stores,
Inc.
...................................
United
States
425,987
59,518,904
Tractor
Supply
Co.
..................................
United
States
228,016
60,540,528
215,705,538
Trading
Companies
&
Distributors
2.8%
Fastenal
Co.
.......................................
United
States
982,147
76,784,252
United
Rentals,
Inc.
..................................
United
States
42,246
34,337,549
111,121,801
Total
Common
Stocks
(Cost
$
2,589,190,093
)
..................................
3,821,599,963
Convertible
Preferred
Stocks
1.8%
Diversified
Consumer
Services
0.2%
a,b,c
Newsela,
Inc.
,
D
....................................
United
States
423,782
8,170,281
a
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,b,c
Phononic
Devices,
Inc.
,
F-S
...........................
United
States
2,970,061
458
a
Software
1.4%
a,b,c
Benchling,
Inc.
,
F
...................................
United
States
347,106
5,847,811
a,b,c
Blaize,
Inc.
,
D
......................................
United
States
1,948,384
11,660,901
a,b,c
Blaize,
Inc.
,
D-2
....................................
United
States
1,467,659
6,776,488
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
(continued)
Software
(continued)
a,b,c
Databricks,
Inc.
,
G
..................................
United
States
227,829
$
16,745,431
a,b,c
OneTrust
LLC
,
C
....................................
United
States
767,526
12,226,697
53,257,328
Trading
Companies
&
Distributors
0.2%
a,b,c
Anduril
Industries,
Inc.
,
F
..............................
United
States
414,483
9,009,451
a
Total
Convertible
Preferred
Stocks
(Cost
$
92,790,994
)
.........................
70,437,518
Preferred
Stocks
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,b,c
Phononic
Devices,
Inc.
,
G-2-S
..........................
United
States
513,050
2,069
a,b,c
Phononic,
Inc.
,
H-S
..................................
United
States
117,763
354,198
356,267
Total
Preferred
Stocks
(Cost
$
460,692
)
.......................................
356,267
Warrants
Warrants
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,b,c
Phononic,
Inc.
,
H-S
,
12/31/29
..........................
United
States
15,980
—
a,b,c
Phononic,
Inc.
,
H-S-X
,
12/31/29
........................
United
States
47,104
4,887
4,887
Software
0.0%
†
a,b,c
Blaize,
Inc.
,
9/19/25
.................................
United
States
146,765
130,391
a,b,c
Blaize,
Inc.
,
12/09/25
.................................
United
States
1
—
a,b,c
Blaize,
Inc.
,
8/23/33
.................................
United
States
1
—
130,391
Total
Warrants
(Cost
$
44,091
)
...............................................
135,278
Principal
Amount
*
Convertible
Bonds
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
b
,c
Phononic,
Inc.
,
H-S
,
5.31%,
11/30/27
..............................
United
States
66,235
66,235
H-S
,
S
,
5.31%,
11/30/27
............................
United
States
66,235
66,235
132,470
Software
0.0%
†
b
,c
Blaize,
Inc.
,
10%,
12/31/25
............................
United
States
1,804,600
1,804,600
Total
Convertible
Bonds
(Cost
$
1,937,070
)
...................................
1,937,070
Corporate
Bonds
0.0%
†
Software
0.0%
†
b
,c
Blaize,
Inc.
,
10%,
12/31/25
............................
United
States
570,121
570,178
Total
Corporate
Bonds
(Cost
$
570,121
)
......................................
570,178
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
d
Senior
Floating
Rate
Interests
0.1%
Semiconductors
&
Semiconductor
Equipment
0.1%
b,c,e,f
Phononic,
Inc.,
First
Lien,
Term
Loan,
B
,
PIK,
12
%
,
(
1-month
SOFR
+
2.251
%
),
6/30/25
...........................
United
States
981,020
$
906,303
Total
Senior
Floating
Rate
Interests
(Cost
$
949,519
)
...........................
906,303
Total
Long
Term
Investments
(Cost
$
2,685,942,580
)
...........................
3,895,942,577
a
Short
Term
Investments
1.9%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
1.9%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
76,259,854
76,259,854
Total
Money
Market
Funds
(Cost
$
76,259,854
)
................................
76,259,854
Total
Short
Term
Investments
(Cost
$
76,259,854
)
..............................
76,259,854
a
Total
Investments
(Cost
$
2,762,202,434
)
100.3
%
..............................
$3,972,202,431
Other
Assets,
less
Liabilities
(
0.3
)
%
.........................................
(11,077,193)
Net
Assets
100.0%
.........................................................
$3,961,125,238
a
a
a
See
Abbreviations
on
page
57
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
c
See
Note
6
regarding
restricted
securities.
d
See
Note
1(d)
regarding
senior
floating
rate
interests.
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
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
October
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$1,857,869,209
$1,946,768,714
$2,685,942,580
Cost
-
Non-controlled
affiliates
(Note
3f)
......................
19,156,977
21,244,914
76,259,854
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$3,038,622,
$786,592
and
$—,
respectively)
............................
$4,578,647,613
$2,741,666,090
$3,895,942,577
Value
-
Non-controlled
affiliates
(Note
3f)
......................
19,156,977
21,244,914
76,259,854
Foreign
currency,
at
value
(cost
$–,
$–
and
$157,
respectively)
.......
—
—
159
Receivables:
Investment
securities
sold
.................................
—
—
6,623,174
Capital
shares
sold
......................................
514,045
933,184
929,000
Dividends
and
interest
...................................
317,508
1,425
883,084
Total
assets
........................................
4,598,636,143
2,763,845,613
3,980,637,848
Liabilities:
Payables:
Investment
securities
purchased
............................
—
—
12,242,279
Capital
shares
redeemed
.................................
2,824,132
2,369,803
3,400,094
Management
fees
.......................................
2,154,895
1,449,114
1,528,272
Distribution
fees
........................................
911,835
234,392
686,679
Transfer
agent
fees
......................................
911,136
658,897
1,271,661
Trustees'
fees
and
expenses
...............................
270
62
51
Payable
upon
return
of
securities
loaned
(Note
1
c
)
................
3,166,650
810,650
—
Accrued
expenses
and
other
liabilities
.........................
304,314
280,603
383,574
Total
liabilities
.......................................
10,273,232
5,803,521
19,512,610
Net
assets,
at
value
...............................
$4,588,362,911
$2,758,042,092
$3,961,125,238
Net
assets
consist
of:
Paid-in
capital
...........................................
$1,418,615,825
$1,919,572,303
$2,809,934,198
Total
distributable
earnings
(losses)
...........................
3,169,747,086
838,469,789
1,151,191,040
Net
assets,
at
value
...............................
$4,588,362,911
$2,758,042,092
$3,961,125,238
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
October
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Class
A:
Net
assets,
at
value
.....................................
$3,727,091,957
$921,696,408
$2,885,425,525
Shares
outstanding
......................................
71,538,404
40,964,796
75,934,536
Net
asset
value
per
share
a,b
................................
$52.10
$22.50
$38.00
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
b
..............................................
$55.13
$23.81
$40.21
Class
C:
Net
assets,
at
value
.....................................
$90,627,050
$22,774,638
$57,889,179
Shares
outstanding
......................................
2,510,668
1,484,762
3,407,698
Net
asset
value
and
maximum
offering
price
per
share
a,b
..........
$36.10
$15.34
$16.99
Class
R:
Net
assets,
at
value
.....................................
$31,719,180
$39,758,581
$37,059,652
Shares
outstanding
......................................
670,056
1,965,136
1,168,115
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$47.34
$20.23
$31.73
Class
R6:
Net
assets,
at
value
.....................................
$410,720,068
$1,383,641,390
$519,842,427
Shares
outstanding
......................................
6,726,242
52,157,620
11,123,648
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$61.06
$26.53
$46.73
Advisor
Class:
Net
assets,
at
value
.....................................
$328,204,656
$390,171,075
$460,908,455
Shares
outstanding
......................................
5,507,399
15,159,324
10,207,473
Net
asset
value
and
maximum
offering
price
per
share
b
...........
$59.59
$25.74
$45.15
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
October
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$12,762,
$–
and
$–,
respectively)
Unaffiliated
issuers
......................................
$15,251,219
$4,979,599
$13,844,464
Non-controlled
affiliates
(Note
3f)
...........................
451,492
732,654
2,507,465
Interest:
Unaffiliated
issuers
......................................
—
—
232,860
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
19,809
(299,895)
(224,988)
Non-controlled
affiliates
(Note
3f)
...........................
514,315
403,555
230,668
Total
investment
income
.................................
16,236,835
5,815,913
16,590,469
Expenses:
Management
fees
(Note
3
a
)
.................................
12,393,059
8,547,003
9,009,736
Distribution
fees:
(Note
3c
)
Class
A
..............................................
4,687,340
1,135,822
3,582,258
Class
C
..............................................
462,274
112,921
297,712
Class
R
..............................................
79,329
100,051
93,355
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
1,641,030
732,835
1,858,909
Class
C
..............................................
40,463
18,208
38,584
Class
R
..............................................
13,886
32,238
24,203
Class
R6
.............................................
34,694
177,524
86,959
Advisor
Class
..........................................
140,441
316,952
292,753
Custodian
fees
..........................................
12,171
8,202
11,771
Reports
to
shareholders
fees
................................
118,409
99,559
161,774
Registration
and
filing
fees
..................................
96,452
69,959
70,268
Professional
fees
.........................................
63,716
50,234
48,333
Trustees'
fees
and
expenses
................................
24,764
15,309
21,403
Other
..................................................
63,759
49,841
58,974
Total
expenses
.......................................
19,871,787
11,466,658
15,656,992
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(62,354)
(78,786)
(200,235)
Net
expenses
.......................................
19,809,433
11,387,872
15,456,757
Net
investment
income
(loss)
..........................
(3,572,598)
(5,571,959)
1,133,712
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
*
Unaffiliated
issuers
....................................
272,197,462
19,154,513
143,510,424
Foreign
currency
transactions
..............................
—
—
10,038
Net
realized
gain
(loss)
................................
272,197,462
19,154,513
143,520,462
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
290,224,481
189,244,117
154,593,286
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
—
—
464
Net
change
in
unrealized
appreciation
(depreciation)
..........
290,224,481
189,244,117
154,593,750
Net
realized
and
unrealized
gain
(loss)
..........................
562,421,943
208,398,630
298,114,212
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$558,849,345
$202,826,671
$299,247,924
*
Includes
gains
from
redemption
in-kind
(Note
9
).
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(3,572,598)
$(16,863,060)
$(5,571,959)
$(6,260,414)
Net
realized
gain
(loss)
............
272,197,462
708,606,111
19,154,513
73,856,614
Net
change
in
unrealized
appreciation
(depreciation)
.................
290,224,481
444,926,647
189,244,117
450,397,076
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
558,849,345
1,136,669,698
202,826,671
517,993,276
Distributions
to
shareholders:
Class
A
........................
—
(394,865,139)
—
—
Class
C
........................
—
(14,781,504)
—
—
Class
R
........................
—
(3,514,792)
—
—
Class
R6
.......................
—
(40,009,371)
—
—
Advisor
Class
...................
—
(29,305,757)
—
—
Total
distributions
to
shareholders
.....
—
(482,476,563)
—
—
Capital
share
transactions:
(Note
2
)
Class
A
........................
(181,508,676)
180,676,777
(25,051,595)
(39,879,038)
Class
C
........................
(8,032,239)
(45,526,143)
(1,113,199)
(2,202,373)
Class
R
........................
(1,011,002)
2,433,373
(3,021,908)
(7,631,504)
Class
R6
.......................
(15,197,033)
(148,900,791)
(179,324,313)
(161,659,325)
Advisor
Class
...................
(2,694,551)
(86,022,379)
(28,648,281)
(25,481,258)
Total
capital
share
transactions
.......
(208,443,501)
(97,339,163)
(237,159,296)
(236,853,498)
Net
increase
(decrease)
in
net
assets
.....................
350,405,844
556,853,972
(34,332,625)
281,139,778
Net
assets:
Beginning
of
period
................
4,237,957,067
3,681,103,095
2,792,374,717
2,511,234,939
End
of
period
.....................
$4,588,362,911
$4,237,957,067
$2,758,042,092
$2,792,374,717
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Small-Mid
Cap
Growth
Fund
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$1,133,712
$1,660,684
Net
realized
gain
(loss)
.................................................
143,520,462
252,555,823
Net
change
in
unrealized
appreciation
(depreciation)
...........................
154,593,750
377,194,123
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
299,247,924
631,410,630
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(153,699,983)
(213,650,350)
Class
C
.............................................................
(6,652,097)
(33,720,039)
Class
R
.............................................................
(2,979,791)
(3,141,034)
Class
R6
............................................................
(61,486,159)
4,476,222
Advisor
Class
........................................................
(9,359,735)
(105,370,472)
Total
capital
share
transactions
............................................
(234,177,765)
(351,405,673)
Net
increase
(decrease)
in
net
assets
...................................
65,070,159
280,004,957
Net
assets:
Beginning
of
period
.....................................................
3,896,055,079
3,616,050,122
End
of
period
..........................................................
$3,961,125,238
$3,896,055,079
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
ten separate
funds,
three
of
which
are
included
in
this
report
(Funds).
The
Funds follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer five
classes
of shares: Class
A,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
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
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statements of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
October
31,
2024,
Franklin
Small-Mid
Cap
Growth
Fund
had
no
securities
on
loan.
d.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
e.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2024, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income. Certain
or
all
Funds
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Funds.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Senior
Floating
Rate
Interests
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
h.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Funds, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
a
...................................
2,143,427
$108,299,690
2,659,091
$57,246,755
Shares
redeemed
...............................
(5,695,026)
(289,808,366)
(3,802,497)
(82,298,350)
Net
increase
(decrease)
..........................
(3,551,599)
$(181,508,676)
(1,143,406)
$(25,051,595)
Year
ended
April
30,
2024
Shares
sold
a
...................................
8,574,980
$371,585,582
6,835,765
$132,067,556
Shares
issued
in
reinvestment
of
distributions
..........
9,108,435
385,104,617
—
—
Shares
redeemed
...............................
(13,213,422)
(576,013,422)
(9,161,615)
(171,946,594)
Net
increase
(decrease)
..........................
4,469,993
$180,676,777
(2,325,850)
$(39,879,038)
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
156,493
$5,498,506
94,948
$1,404,848
Shares
redeemed
a
..............................
(387,232)
(13,530,745)
(170,497)
(2,518,047)
Net
increase
(decrease)
..........................
(230,739)
$(8,032,239)
(75,549)
$(1,113,199)
Year
ended
April
30,
2024
Shares
sold
...................................
719,169
$22,451,781
457,804
$5,960,896
Shares
issued
in
reinvestment
of
distributions
..........
495,660
14,612,070
—
—
Shares
redeemed
a
..............................
(2,598,622)
(82,589,994)
(632,873)
(8,163,269)
Net
increase
(decrease)
..........................
(1,383,793)
$(45,526,143)
(175,069)
$(2,202,373)
Class
R
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
43,156
$1,960,600
142,327
$2,782,239
Shares
redeemed
...............................
(64,498)
(2,971,602)
(297,602)
(5,804,147)
Net
increase
(decrease)
..........................
(21,342)
$(1,011,002)
(155,275)
$(3,021,908)
Year
ended
April
30,
2024
Shares
sold
...................................
139,079
$5,560,362
524,963
$9,001,348
Shares
issued
in
reinvestment
of
distributions
..........
91,293
3,514,792
—
—
Shares
redeemed
...............................
(166,218)
(6,641,781)
(968,141)
(16,632,852)
Net
increase
(decrease)
..........................
64,154
$2,433,373
(443,178)
$(7,631,504)
Class
R6
Class
R6
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
219,819
$13,098,267
3,863,491
$98,315,613
Shares
redeemed
in-kind
(Note
9
)
...................
—
—
(1,184,245)
(29,890,347)
Shares
redeemed
...............................
(475,786)
(28,295,300)
(9,732,156)
(247,749,579)
Net
increase
(decrease)
..........................
(255,967)
$(15,197,033)
(7,052,910)
$(179,324,313)
Year
ended
April
30,
2024
Shares
sold
...................................
548,608
$27,946,401
12,060,415
$272,225,636
Shares
issued
in
reinvestment
of
distributions
..........
809,267
39,985,905
—
—
Shares
redeemed
...............................
(4,383,961)
(216,833,097)
(19,610,255)
(433,884,961)
Net
increase
(decrease)
..........................
(3,026,086)
$(148,900,791)
(7,549,840)
$(161,659,325)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
394,140
$22,753,287
1,093,872
$26,986,102
Shares
redeemed
...............................
(442,428)
(25,447,838)
(2,246,472)
(55,634,383)
Net
increase
(decrease)
..........................
(48,288)
$(2,694,551)
(1,152,600)
$(28,648,281)
Year
ended
April
30,
2024
Shares
sold
...................................
879,399
$44,142,934
3,950,917
$86,229,902
Shares
issued
in
reinvestment
of
distributions
..........
586,399
28,293,747
—
—
Shares
redeemed
...............................
(3,309,049)
(158,459,060)
(5,094,739)
(111,711,160)
Net
increase
(decrease)
..........................
(1,843,251)
$(86,022,379)
(1,143,822)
$(25,481,258)
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
a
...................................
2,496,143
$91,277,357
Shares
redeemed
...............................
(6,721,131)
(244,977,340)
Net
increase
(decrease)
..........................
(4,224,988)
$(153,699,983)
Year
ended
April
30,
2024
Shares
sold
a
...................................
9,519,937
$306,620,601
Shares
redeemed
...............................
(16,016,549)
(520,270,951)
Net
increase
(decrease)
..........................
(6,496,612)
$(213,650,350)
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
176,327
$2,871,871
Shares
redeemed
a
..............................
(583,110)
(9,523,968)
Net
increase
(decrease)
..........................
(406,783)
$(6,652,097)
Year
ended
April
30,
2024
Shares
sold
...................................
983,081
$14,050,780
Shares
redeemed
a
..............................
(3,337,470)
(47,770,819)
Net
increase
(decrease)
..........................
(2,354,389)
$(33,720,039)
Class
R
Class
R
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
93,434
$2,831,308
Shares
redeemed
...............................
(191,516)
(5,811,099)
Net
increase
(decrease)
..........................
(98,082)
$(2,979,791)
Year
ended
April
30,
2024
Shares
sold
...................................
245,626
$6,647,839
Shares
redeemed
...............................
(357,889)
(9,788,873)
Net
increase
(decrease)
..........................
(112,263)
$(3,141,034)
Class
R6
Class
R6
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
1,095,438
$49,028,737
Shares
redeemed
in-kind
(Note
9
)
...................
(530,869)
(23,798,846)
Shares
redeemed
...............................
(1,930,258)
(86,716,050)
Net
increase
(decrease)
..........................
(1,365,689)
$(61,486,159)
Year
ended
April
30,
2024
Shares
sold
...................................
3,418,440
$139,416,104
Shares
redeemed
...............................
(3,333,237)
(134,939,882)
Net
increase
(decrease)
..........................
85,203
$4,476,222
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
3
.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Franklin
Growth
Opportunities
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
749,571
$32,449,523
Shares
redeemed
...............................
(966,346)
(41,809,258)
Net
increase
(decrease)
..........................
(216,775)
$(9,359,735)
Year
ended
April
30,
2024
Shares
sold
...................................
2,112,661
$81,831,488
Shares
redeemed
...............................
(5,005,566)
(187,201,960)
Net
increase
(decrease)
..........................
(2,892,905)
$(105,370,472)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.700%
Up
to
and
including
$500
million
0.600%
Over
$500
million,
up
to
and
including
$1
billion
0.550%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.500%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.475%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.450%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.440%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.430%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.420%
In
excess
of
$21.5
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Small
Cap
Growth
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small-Mid
Cap
Growth
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2024,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds'
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds'
Class
C
and
R compensation
distribution
plans,
Annualized
Fee
Rate
Net
Assets
0.750%
Up
to
and
including
$500
million
0.650%
Over
$500
million,
up
to
and
including
$1
billion
0.600%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.550%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.525%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.500%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.490%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.480%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.470%
In
excess
of
$21.5
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Gross
effective
investment
management
fee
rate
........
0.538%
0.613%
0.456%
3
.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
For
Franklin
Growth
Opportunities
Fund
and
Franklin
Small
Cap
Growth
Fund,
the
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Funds
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2024,
the Funds
paid
transfer
agent
fees
as
noted
in
the
Statements of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Class
A
...............................
0.35%
0.35%
0.25%
Class
C
...............................
1.00%
1.00%
1.00%
Class
R
...............................
0.50%
0.50%
0.50%
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$132,710
$47,750
$109,527
CDSC
retained
...........................
$4,245
$2,637
$6,627
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Transfer
agent
fees
........................
$564,189
$466,665
$640,324
3
.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2024,
investments
in
affiliated
management
investment
companies
were
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
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$5,778,248
$389,882,980
$(379,670,901)
$—
$—
$15,990,327
15,990,327
$451,492
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$24,049,725
$97,992,755
$(118,875,830)
$—
$—
$3,166,650
3,166,650
$514,315
Total
Affiliated
Securities
...
$29,827,973
$487,875,735
$(498,546,731)
$—
$—
$19,156,977
$965,807
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$90,555,123
$270,762,292
$(340,883,151)
$—
$—
$20,434,264
20,434,264
$732,654
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$16,408,075
$139,728,020
$(155,325,445)
$—
$—
$810,650
810,650
$403,555
Total
Affiliated
Securities
...
$106,963,198
$410,490,312
$(496,208,596)
$—
$—
$21,244,914
$1,136,209
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$112,627,227
$363,270,501
$(399,637,874)
$—
$—
$76,259,854
76,259,854
$2,507,465
3
.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2025.
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2024,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At April
30,
2024,
the
deferred
losses
were
as
follows:
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
Small-Mid
Cap
Growth
Fund
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$19,901,900
$56,373,253
$(76,275,153)
$—
$—
$—
—
$230,668
Total
Affiliated
Securities
...
$132,529,127
$419,643,754
$(475,913,027)
$—
$—
$76,259,854
$2,738,133
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
—
$
186,402,631
Long
term
.............................
21,532,759
—
Total
capital
loss
carryforwards
............
$21,532,759
$186,402,631
Franklin
Small
Cap
Growth
Fund
Late-year
ordinary
loss
...........................
$2,482,673
3
.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
At
October
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales
and
net
operating
losses.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities
and
in-kind
transactions)
for
the
period
ended
October
31,
2024,
were
as
follows:
At
October
31,
2024,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
6.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
a
a
a
a
Cost
of
investments
.......................
$1,877,914,472
$1,974,992,801
$2,787,714,961
Unrealized
appreciation
.....................
$2,769,075,384
$1,114,449,378
$1,292,496,765
Unrealized
depreciation
.....................
(49,185,266)
(326,531,175)
(108,009,295)
Net
unrealized
appreciation
(depreciation)
.......
$2,719,890,118
$787,918,203
$1,184,487,470
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Purchases
..............................
$403,533,472
$251,615,443
$810,551,344
Sales
..................................
$637,749,497
$398,165,702
$991,973,136
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$3,166,650
$810,650
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
At
October
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Opportunities
Fund
3,094
Canva,
Inc.,
A
..............................
3/18/24
$
3,300,249
$
4,160,421
11,829
Canva,
Inc.,
B
..............................
12/22/21
20,158,531
15,906,148
4,619
Celonis
SE
.................................
6/16/21
1,708,060
1,271,159
25,571
Celonis
SE,
D
..............................
6/16/21
-
10/04/22
9,427,681
7,037,195
6,309,366
ClearMotion
,
Inc.
............................
11/06/17
-
12/21/18
15,500,000
582,884
417,667
ClearMotion
,
Inc.,
A-3
.........................
3/23/23
—
51,553
2,606,463
ClearMotion
,
Inc.,
A-4
.........................
12/21/21
251,500
299,483
338,280
Databricks,
Inc.,
G
...........................
2/01/21
20,000,005
24,863,580
1,029,939
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
19,730,229
65,918,424
517,056
OneTrust
LLC,
C
............................
4/01/21
10,139,623
8,236,707
556,026
Optoro
,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,942,592
9,048,668
142,857
Space
Exploration
Technologies
Corp.,
A
..........
5/25/22
9,999,990
15,999,984
805,800
Tanium,
Inc.,
G
..............................
9/14/15
4,000,233
6,839,559
Total
Restricted
Securities
(Value
is
3.5%
of
Net
Assets)
...............
$125,158,693
$160,215,765
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
3,436,485
1661,
Inc.,
F
................................
5/28/21
$
19,999,999
$
6,349,930
382,306
Benchling
,
Inc.,
F
............................
10/20/21
12,499,992
6,440,837
1,388,889
Checkr
,
Inc.,
E
..............................
8/24/21
25,000,002
22,284,092
410,500
Chinook
Therapeutics,
Inc.,
CVR,
6/30/30
.........
8/14/23
160,095
442,931
3,698,772
ClearMotion
,
Inc.
............................
12/21/18
10,000,000
341,707
1,037,942
ClearMotion
,
Inc.,
A-3
.........................
3/23/23
—
128,114
6,477,294
ClearMotion
,
Inc.,
A-4
.........................
12/21/21
625,000
744,241
98,754
Flock
Group,
Inc.,
G
..........................
3/08/24
9,999,899
13,927,374
709,046
Newsela,
Inc.,
D
.............................
1/21/21
15,000,010
13,670,013
625,361
OneTrust
LLC,
A
............................
3/10/23
6,878,971
9,962,007
56,457
OneTrust
LLC,
A-1
...........................
3/10/23
621,027
899,361
554,878
Optoro
,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,919,999
9,029,985
148,478
ServiceTitan
,
Inc.
............................
2/28/24
10,096,504
11,674,652
1,542,673
Smule
,
Inc.,
G,
144A
.........................
5/31/16
11,099,995
604,234
352,675
Smule
,
Inc.,
H,
144A
.........................
4/27/17
2,999,995
163,307
162,712
Smule
,
Inc.,
J
...............................
8/05/22
-
11/28/22
764,393
2,310,829
361,111
Tula
eTechnology
,
Inc.
........................
11/01/18
—
—
3,611,111
Tula
eTechnology
,
Inc.,
E
......................
9/08/17
6,500,000
6,872,612
Total
Restricted
Securities
(Value
is
3.8%
of
Net
Assets)
...............
$143,165,881
$105,846,226
6.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
7.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
October
31,
2024,
investments
in
“affiliated
companies”
were
as
follows:
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small-Mid
Cap
Growth
Fund
414,483
Anduril
Industries,
Inc.,
F
......................
7/17/24
$
9,009,451
$
9,009,451
347,106
Benchling
,
Inc.,
F
............................
10/20/21
11,349,082
5,847,811
2,374,721
Blaize
,
Inc.,
10%,
12/31/25
.....................
1/19/23
2,374,721
2,374,778
1
Blaize
,
Inc.,
12/09/25
.........................
1/19/23
57
—
1
Blaize
,
Inc.,
8/23/33
..........................
8/23/23
—
—
146,765
Blaize
,
Inc.,
9/19/25
..........................
9/20/22
-
9/22/22
5
130,391
1,948,384
Blaize
,
Inc.,
D
..............................
3/02/21
-
11/09/21
20,346,009
11,660,901
1,467,659
Blaize
,
Inc.,
D-2
.............................
4/01/22
-
9/20/22
7,099,996
6,776,488
227,829
Databricks,
Inc.,
G
...........................
2/01/21
13,469,850
16,745,431
793,714
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
14,052,061
50,799,490
423,782
Newsela,
Inc.,
D
.............................
1/21/21
8,965,193
8,170,281
767,526
OneTrust
LLC,
C
............................
4/01/21
15,051,415
12,226,697
2,970,061
Phononic
Devices,
Inc.,
F-S
....................
6/06/19
7,499,998
458
513,050
Phononic
Devices,
Inc.,
G-2-S
..................
1/17/20
-
11/03/20
47
2,069
66,235
Phononic
Inc.,
H-S,
S,
5.31%,
11/30/27
...........
10/01/24
66,235
66,235
981,020
Phononic
,
Inc.,
First
Lien,
Term
Loan,
B,
PIK,
12%,
(1-month
SOFR
+
2.251%),
6/30/25
............
10/17/22
-
10/01/24
949,519
906,303
117,763
Phononic
,
Inc.,
H-S
..........................
10/17/22
460,645
354,198
15,980
Phononic
,
Inc.,
H-S,
12/31/29
...................
5/15/24
-
10/01/24
—
—
66,235
Phononic
,
Inc.,
H-S,
5.31%,
11/30/27
.............
5/15/24
66,235
66,235
47,104
Phononic
,
Inc.,
H-S-X,
12/31/29
.................
10/17/22
44,029
4,887
Total
Restricted
Securities
(Value
is
3.2%
of
Net
Assets)
...............
$110,804,548
$125,142,104
*
In
U.S.
dollars
unless
otherwise
indicated.
6.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
8.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
October
31,
2024,
the
Funds
did
not
use
the
Global
Credit
Facility.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Warrants/
Principal
Amount*
Held
at
End
of
Period
Investment
Income
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
1661,
Inc.,
F
........
$
7,235,237
$
—
$
—
$
—
$
—
a
$
—
a
—
a
$
—
Benchling
,
Inc.,
F
.....
5,363,582
—
—
—
—
a
—
a
—
a
—
Total
Affiliated
Securities
(Value
is
—%
of
Net
Assets)
..........
$12,598,819
$—
$—
$—
$—
$—
$—
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Benchling
,
Inc.,
F
.....
4,869,742
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
9/19/25
...
130,391
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
12/09/25
..
—
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
8/23/33
...
—
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
D
.......
11,660,901
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
D-2
......
6,776,488
—
—
—
—
a
—
a
—
a
—
Interest
Blaize
,
Inc.,
10%,
12/31/25
570,178
—
—
—
—
a
—
a
—
a
—
Blaize
,
Inc.,
10%,
12/31/25.
........
1,804,600
—
—
—
—
a
—
a
—
a
—
Total
Affiliated
Securities
(Value
is
—%
of
Net
Assets)
..........
$25,812,300
$—
$—
$—
$—
$—
$—
a
As
of
October
31,
2024,
no
longer
an
affiliate.
7.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
9.
Redemption
In-Kind
During
the
period
ended
October
31,
2024,
Franklin
Small
Cap
Growth
Fund
realized
$6,707,980
of
net
gains
resulting
from
a
redemption in-kind
in
which
a shareholder
redeemed
fund
shares
for
cash
and
securities
held
by
the
Fund.
Because
such
gains
are
not
taxable
to
the
Fund,
and
are
not
distributed
to
remaining
shareholders,
they
are
reclassified
from
accumulated
net
realized
gains
to
paid-in
capital.
During
the
period
ended
October
31,
2024,
Franklin
Small-Mid
Cap
Growth
Fund
realized
$5,735,544
of
net
gains
resulting
from
a
redemption in-kind
in
which
a shareholder
redeemed
fund
shares
for
cash
and
securities
held
by
the
Fund.
Because
such
gains
are
not
taxable
to
the
Fund,
and
are
not
distributed
to
remaining
shareholders,
they
are
reclassified
from
accumulated
net
realized
gains
to
paid-in
capital.
10.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2024,
in
valuing
the
Funds'
assets carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
106,830,503
$
—
$
15,999,984
$
122,830,487
Beverages
...........................
21,588,685
—
—
21,588,685
Biotechnology
.........................
51,137,653
—
—
51,137,653
Broadline
Retail
.......................
288,429,582
—
—
288,429,582
Building
Products
......................
62,569,625
—
—
62,569,625
Capital
Markets
........................
164,915,391
—
—
164,915,391
Chemicals
...........................
71,431,265
—
—
71,431,265
Commercial
Services
&
Supplies
...........
57,078,648
—
8,308,354
65,387,002
Construction
Materials
..................
33,926,274
—
—
33,926,274
Electrical
Equipment
....................
37,384,319
—
—
37,384,319
Entertainment
.........................
104,809,530
—
—
104,809,530
Financial
Services
......................
131,591,506
—
—
131,591,506
Food
Products
........................
38,709,500
—
—
38,709,500
Ground
Transportation
..................
65,712,842
—
—
65,712,842
Health
Care
Equipment
&
Supplies
.........
127,370,182
—
—
127,370,182
Health
Care
Providers
&
Services
..........
130,523,998
—
—
130,523,998
Hotels,
Restaurants
&
Leisure
.............
133,067,775
—
—
133,067,775
Household
Durables
....................
25,896,884
—
—
25,896,884
Interactive
Media
&
Services
..............
400,760,987
—
—
400,760,987
IT
Services
...........................
80,608,247
—
20,066,569
100,674,816
Leisure
Products
.......................
—
—
65,918,424
65,918,424
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Common
Stocks:
(continued)
Life
Sciences
Tools
&
Services
............
$
120,859,305
$
35,005,684
$
—
$
155,864,989
Machinery
............................
31,656,579
—
—
31,656,579
Personal
Care
Products
.................
73,409,816
—
—
73,409,816
Pharmaceuticals
.......................
154,235,620
—
—
154,235,620
Professional
Services
...................
107,584,039
—
—
107,584,039
Real
Estate
Management
&
Development
....
22,869,381
—
—
22,869,381
Semiconductors
&
Semiconductor
Equipment
.
698,258,634
—
—
698,258,634
Software
.............................
778,223,660
—
582,884
a
778,806,544
Specialty
Retail
........................
23,704,902
—
—
23,704,902
Technology
Hardware,
Storage
&
Peripherals
.
238,280,832
—
—
238,280,832
Convertible
Preferred
Stocks
................
—
—
33,100,287
33,100,287
Preferred
Stocks
.........................
—
—
16,239,263
16,239,263
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
19,156,977
—
—
19,156,977
Total
Investments
in
Securities
...........
$4,402,583,141
$35,005,684
$160,215,765
$4,597,804,590
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
180,967,479
—
—
180,967,479
Banks
...............................
56,933,969
—
—
56,933,969
Biotechnology
.........................
237,965,905
—
—
237,965,905
Building
Products
......................
34,573,252
—
—
34,573,252
Capital
Markets
........................
96,919,164
—
—
96,919,164
Communications
Equipment
..............
11,173,736
—
—
11,173,736
Construction
&
Engineering
...............
115,222,125
—
—
115,222,125
Consumer
Staples
Distribution
&
Retail
......
16,277,788
—
—
16,277,788
Diversified
Consumer
Services
............
2,971,343
—
—
2,971,343
Electronic
Equipment,
Instruments
&
Components
........................
48,067,731
—
—
48,067,731
Energy
Equipment
&
Services
.............
37,427,136
—
—
37,427,136
Financial
Services
......................
127,292,318
—
—
127,292,318
Food
Products
........................
85,026,958
—
—
85,026,958
Health
Care
Equipment
&
Supplies
.........
153,730,885
—
—
153,730,885
Health
Care
Providers
&
Services
..........
95,965,742
—
—
95,965,742
Health
Care
Technology
.................
23,581,882
—
—
23,581,882
Hotel
&
Resort
REITs
...................
10,935,943
—
—
10,935,943
Hotels,
Restaurants
&
Leisure
.............
189,364,672
—
—
189,364,672
Household
Durables
....................
60,105,248
—
—
60,105,248
Industrial
REITs
.......................
24,979,779
—
—
24,979,779
Interactive
Media
&
Services
..............
19,227,906
—
—
19,227,906
IT
Services
...........................
34,247,734
—
—
34,247,734
Life
Sciences
Tools
&
Services
............
2,177,427
—
—
2,177,427
Machinery
............................
26,410,932
—
—
26,410,932
Media
...............................
44,153,861
—
—
44,153,861
Oil,
Gas
&
Consumable
Fuels
.............
37,086,010
—
—
37,086,010
Passenger
Airlines
.....................
62,224,361
—
—
62,224,361
Personal
Care
Products
.................
79,288,623
—
—
79,288,623
Pharmaceuticals
.......................
60,254,979
—
—
60,254,979
Professional
Services
...................
40,741,884
—
—
40,741,884
Semiconductors
&
Semiconductor
Equipment
.
174,076,140
—
—
174,076,140
Software
.............................
314,685,859
—
12,016,359
326,702,218
Specialty
Retail
........................
56,338,048
—
—
56,338,048
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Common
Stocks:
(continued)
Textiles,
Apparel
&
Luxury
Goods
..........
$
15,917,480
$
—
$
—
$
15,917,480
Trading
Companies
&
Distributors
..........
59,505,565
—
—
59,505,565
Convertible
Preferred
Stocks
................
—
—
75,844,443
75,844,443
Preferred
Stocks
.........................
—
—
17,542,493
a
17,542,493
Rights
.................................
—
—
442,931
442,931
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
21,244,914
—
—
21,244,914
Total
Investments
in
Securities
...........
$2,657,064,778
$—
$105,846,226
$2,762,911,004
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
111,876,093
—
—
111,876,093
Banks
...............................
20,197,632
—
—
20,197,632
Beverages
...........................
19,990,145
—
—
19,990,145
Biotechnology
.........................
99,589,131
—
—
99,589,131
Building
Products
......................
73,326,845
—
—
73,326,845
Capital
Markets
........................
361,491,926
—
—
361,491,926
Containers
&
Packaging
.................
46,582,371
—
—
46,582,371
Electrical
Equipment
....................
93,874,318
—
—
93,874,318
Energy
Equipment
&
Services
.............
28,741,941
—
—
28,741,941
Entertainment
.........................
70,480,292
—
—
70,480,292
Financial
Services
......................
58,969,149
—
—
58,969,149
Food
Products
........................
38,171,255
—
—
38,171,255
Ground
Transportation
..................
78,934,150
—
—
78,934,150
Health
Care
Equipment
&
Supplies
.........
159,107,983
—
—
159,107,983
Health
Care
Providers
&
Services
..........
28,084,675
—
—
28,084,675
Health
Care
Technology
.................
63,625,698
—
—
63,625,698
Hotels,
Restaurants
&
Leisure
.............
259,252,518
—
—
259,252,518
Household
Durables
....................
48,308,531
—
—
48,308,531
Industrial
REITs
.......................
32,162,875
—
—
32,162,875
Insurance
............................
52,908,342
—
—
52,908,342
Interactive
Media
&
Services
..............
54,366,590
—
—
54,366,590
IT
Services
...........................
193,427,406
—
—
193,427,406
Leisure
Products
.......................
—
—
50,799,490
50,799,490
Life
Sciences
Tools
&
Services
............
86,746,179
—
—
86,746,179
Machinery
............................
80,600,399
—
—
80,600,399
Media
...............................
99,778,246
—
—
99,778,246
Oil,
Gas
&
Consumable
Fuels
.............
108,040,546
—
—
108,040,546
Personal
Care
Products
.................
34,891,941
—
—
34,891,941
Pharmaceuticals
.......................
39,014,107
—
—
39,014,107
Professional
Services
...................
208,390,263
—
—
208,390,263
Residential
REITs
......................
31,646,068
—
—
31,646,068
Semiconductors
&
Semiconductor
Equipment
.
171,387,874
26,529,093
—
197,916,967
Software
.............................
563,478,552
—
—
563,478,552
Specialty
Retail
........................
215,705,538
—
—
215,705,538
Trading
Companies
&
Distributors
..........
111,121,801
—
—
111,121,801
Convertible
Preferred
Stocks
................
—
—
70,437,518
70,437,518
Preferred
Stocks
.........................
—
—
356,267
356,267
Warrants
...............................
—
—
135,278
a
135,278
Convertible
Bonds
.......................
—
—
1,937,070
1,937,070
Corporate
Bonds
........................
—
—
570,178
570,178
Senior
Floating
Rate
Interests
...............
—
—
906,303
906,303
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period
.
At
October
31,
2024
,
the
reconciliations
are
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Short
Term
Investments
...................
$
76,259,854
$
—
$
—
$
76,259,854
Total
Investments
in
Securities
...........
$3,820,531,234
$26,529,093
b
$125,142,104
$3,972,202,431
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$26,529,093,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
.
$
13,857,129
$
—
$
—
$
—
$
—
$
—
$
—
$
2,142,855
$
15,999,984
$
2,142,855
Commercial
Services
&
Supplies
........
8,661,941
—
—
—
—
—
—
(
353,587)
8,308,354
(353,587)
IT
Services
........
15,917,783
—
—
—
—
—
—
4,148,786
20,066,569
4,148,786
Leisure
Products
....
75,342,166
—
—
—
—
—
—
(9,423,742)
65,918,424
(9,423,742)
Software
..........
651,101
—
c
—
—
—
—
—
(68,217)
582,884
c
(68,217)
Convertible
Preferred
Stocks
:
Software
..........
45,207,350
—
(2,010,964)
—
—
—
(18,319,507)
8,223,408
33,100,287
(146,559)
Preferred
Stocks
:
Commercial
Services
&
Supplies
........
9,017,603
—
—
—
—
—
—
31,065
9,048,668
31,065
Health
Care
Providers
&
Services
........
20,363,384
—
(17,337,410)
—
—
—
—
(3,025,974)
—
—
Software
..........
15,536,986
—
(7,625,811)
—
—
—
(3,892,144)
3,171,564
7,190,595
224,797
Escrows
and
Litigation
Trusts
:
—
c
—
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$204,555,443
$—
$(26,974,185)
$—
$—
$—
$(22,211,651)
$4,846,158
$160,215,765
$(3,444,602)
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Software
..........
10,381,691
—
—
—
—
—
—
1,634,668
12,016,359
1,634,668
Convertible
Preferred
Stocks
:
Automobile
Components
9,999,899
—
—
—
—
—
—
3,927,475
13,927,374
3,927,475
Diversified
Consumer
Services
........
12,915,705
—
—
—
—
—
—
754,308
13,670,013
754,308
Software
..........
39,224,845
—
—
—
—
—
—
2,672,281
41,897,126
2,672,281
Specialty
Retail
.....
7,235,237
—
—
—
—
—
—
(885,307)
6,349,930
(885,307)
Preferred
Stocks
:
Automobile
Components
6,478,900
c
—
—
—
—
—
—
393,712
6,872,612
c
393,712
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Preferred
Stocks:
(continued)
Commercial
Services
&
Supplies
........
$
8,998,985
$
—
$
—
$
—
$
—
$
—
$
—
$
31,000
$
9,029,985
$
31,000
Software
..........
2,228,339
—
—
—
—
—
—
(588,443)
1,639,896
(588,443)
Rights
:
Biotechnology
......
395,806
—
—
—
—
—
—
47,125
442,931
47,125
Escrows
and
Litigation
Trusts
...........
—
c
—
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$97,859,407
$—
$—
$—
$—
$—
$—
$7,986,819
$105,846,226
$7,986,819
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Leisure
Products
....
58,061,819
—
—
—
—
—
—
(7,262,329)
50,799,490
(7,262,329)
Convertible
Preferred
Stocks
:
Diversified
Consumer
Services
........
7,719,448
—
—
—
—
—
—
450,833
8,170,281
450,833
Semiconductors
&
Semiconductor
Equipment
.......
42,101
—
—
—
—
—
—
(41,643)
458
(41,643)
Software
..........
52,032,311
—
—
—
—
—
—
1,225,017
53,257,328
1,225,017
Trading
Companies
&
Distributors
......
—
9,009,451
—
—
—
—
—
—
9,009,451
—
Preferred
Stocks
:
Semiconductors
&
Semiconductor
Equipment
.......
429,965
—
—
—
—
—
—
(73,698)
356,267
(73,698)
Warrants
:
Semiconductors
&
Semiconductor
Equipment
.......
12,474
—
c
—
—
—
—
—
(7,587)
4,887
c
(7,587)
Software
..........
130,391
c
—
—
—
—
—
—
—
130,391
c
—
Convertible
Bonds
:
Semiconductors
&
Semiconductor
Equipment
.......
—
132,470
—
—
—
—
—
—
132,470
—
Software
..........
1,804,600
—
—
—
—
—
—
—
1,804,600
—
Corporate
Bonds
:
Software
..........
570,178
—
—
—
—
—
—
—
570,178
—
Senior
Floating
Rate
Interests
:
Semiconductors
&
Semiconductor
Equipment
.......
813,040
52,098
—
—
—
19,868
—
21,297
906,303
21,297
Total
Investments
in
Securities
............
$121,616,327
$9,194,019
$—
$—
$—
$19,868
$—
$(5,688,110)
$125,142,104
$(5,688,110)
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
October
31,
2024,
are
as
follows:
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Includes
financial
instruments
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Leisure
Products.
.
.
.
.
.
.
$65,918,424
Market
comparables
Discount
for
lack
of
marketability
8.5%
Decrease
EV
/
revenue
multiple
3.8x
Increase
All
Other
Investments.
.
.
.
94,297,341
b,c
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$160,215,765
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Convertible
Preferred
Stocks:
Automobile
Components.
.
.
.
.
.
.
.
.
.
$13,927,374
Market
comparables
Discount
for
lack
of
marketability
6.1%
Decrease
Estimated
Revenue
$228.8
mil
Increase
EV
/
revenue
multiple
29.5x
Increase
Software
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$22,284,092
Market
comparables
Discount
for
lack
of
marketability
7.1%
Decrease
EV
/
revenue
multiple
6.7x
Increase
All
Other
Investments.
.
.
.
69,634,760
b,c
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$105,846,226
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
11.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Leisure
Products
............
$50,799,490
Market
comparables
Discount
for
lack
of
marketability
8.5%
Decrease
EV
/
revenue
multiple
3.8x
Increase
All
Other
Investments.
.
.
.
.
.
.
.
.
74,342,614
b,c
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$125,142,104
a
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
b
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
c
Includes
financial
instruments
determined
to
have
no
value.
Abbreviations
List
EV
-
Enterprise
value
Selected
Portfolio
ADR
American
Depositary
Receipt
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
10.
Fair
Value
Measurements
(continued)
FRANKLIN
STRATEGIC
SERIES
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
FT
family
of
funds
and
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
December
31,
2023.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Growth
Opportunities
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-cap
growth
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Small
Cap
Growth
Fund
and
Franklin
Small-Mid
Cap
Growth
Fund
-
The
Performance
Universe
for
the
Franklin
Small
Cap
Growth
Fund
included
the
Fund
and
all
retail
and
institutional
small-cap
growth
funds.
The
Performance
Universe
for
Franklin
Small-Mid
Cap
Growth
Fund
included
the
Fund
and
all
retail
and
institutional
mid-cap
growth
funds.
The
Board
noted
that
each
Fund’s
annualized
total
return
for
the
one-
and
five-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
three-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
that
each
Fund’s
one-year
annualized
total
return
was
in
the
first
quintile.
The
Board
concluded
that
each
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
each
Fund
and
for
each
of
the
other
funds
in
each
Fund’s
respective
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Franklin
Growth
Opportunities
Fund
included
the
Fund,
12
other
multi-cap
growth
funds
and
one
mid-cap
growth
fund.
The
Expense
Group
for
the
Franklin
Small
Cap
Growth
Fund
included
the
Fund
and
14
other
small-
cap
growth
funds.
The
Expense
Group
for
the
Franklin
Small-Mid
Cap
Growth
Fund
included
the
Fund
and
11
other
mid-cap
growth
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
these
Funds
were
below
the
medians
and
in
the
first
quintile
(least
expensive)
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
these
Funds
are
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
each
Fund
had
experienced
a
significant
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
©
2024
Franklin
Templeton.
All
rights
reserved.
Franklin
Strategic
Series
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
October
31,
2024
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Financial
Statements
and
Other
Important
Information—Semiannual
Financial
Highlights
and
Schedules
of
Investments
2
Financial
Statements
18
Notes
to
Financial
Statements
22
Changes
In
and
Disagreements
with
Accountants
35
Results
of
Meeting(s)
of
Shareholders
35
Remuneration
Paid
to
Directors,
Officers
and
Others
35
Board
Approval
of
Management
and
Subadvisory
Agreements
35
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$132.38
$112.50
$101.90
$163.50
$150.48
$138.85
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.25)
(0.48)
(0.47)
(0.75)
(0.99)
(0.69)
Net
realized
and
unrealized
gains
(losses)
12.45
20.36
11.21
(43.17)
38.85
26.48
Total
from
investment
operations
........
12.20
19.88
10.74
(43.92)
37.86
25.79
Less
distributions
from:
Net
investment
income
..............
—
—
(0.14)
(1.01)
—
—
Net
realized
gains
.................
—
—
—
(16.67)
(24.84)
(14.16)
Total
distributions
...................
—
—
(0.14)
(17.68)
(24.84)
(14.16)
Net
asset
value,
end
of
period
..........
$144.58
$132.38
$112.50
$101.90
$163.50
$150.48
Total
return
c
.......................
9.22%
17.67%
10.58%
(28.56)%
24.26%
18.52%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.02%
1.05%
1.06%
1.04%
0.98%
1.03%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.01%
1.04%
e
1.06%
f
1.04%
e,f
0.97%
e
1.01%
e
Net
investment
(loss)
................
(0.34)%
(0.41)%
(0.45)%
(0.54)%
(0.58)%
(0.49)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$727,678
$705,301
$686,534
$705,915
$1,160,451
$960,305
Portfolio
turnover
rate
................
11.92%
35.87%
24.08%
26.25%
47.30%
32.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$121.21
$103.78
$94.59
$152.95
$143.00
$133.51
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.72)
(1.26)
(1.16)
(1.51)
(2.16)
(1.70)
Net
realized
and
unrealized
gains
(losses)
11.40
18.69
10.35
(40.18)
36.95
25.35
Total
from
investment
operations
........
10.68
17.43
9.19
(41.69)
34.79
23.65
Less
distributions
from:
Net
realized
gains
.................
—
—
—
(16.67)
(24.84)
(14.16)
Net
asset
value,
end
of
period
..........
$131.89
$121.21
$103.78
$94.59
$152.95
$143.00
Total
return
c
.......................
8.82%
16.80%
9.75%
(29.00)%
23.33%
17.62%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.77%
1.80%
1.81%
1.66%
1.73%
1.78%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.76%
1.79%
e
1.81%
f
1.66%
e,f
1.72%
e
1.76%
e
Net
investment
(loss)
................
(1.09)%
(1.16)%
(1.20)%
(1.16)%
(1.32)%
(1.24)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$24,832
$27,332
$29,573
$33,905
$64,801
$48,363
Portfolio
turnover
rate
................
11.92%
35.87%
24.08%
26.25%
47.30%
32.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$140.93
$119.33
$108.06
$172.21
$156.99
$143.83
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.01
(0.06)
(0.08)
(0.23)
(0.45)
(0.18)
Net
realized
and
unrealized
gains
(losses)
13.24
21.66
11.94
(45.64)
40.51
27.50
Total
from
investment
operations
........
13.25
21.60
11.86
(45.87)
40.06
27.32
Less
distributions
from:
Net
investment
income
..............
—
—
(0.59)
(1.61)
—
—
Net
realized
gains
.................
—
—
—
(16.67)
(24.84)
(14.16)
Total
distributions
...................
—
—
(0.59)
(18.28)
(24.84)
(14.16)
Net
asset
value,
end
of
period
..........
$154.18
$140.93
$119.33
$108.06
$172.21
$156.99
Total
return
c
.......................
9.40%
18.10%
11.03%
(28.29)%
24.67%
18.95%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.75%
0.76%
0.80%
0.74%
0.71%
0.74%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.66%
0.68%
e
0.65%
0.66%
e
0.64%
e
0.64%
e
Net
investment
income
(loss)
..........
0.01%
(0.05)%
(0.08)%
(0.16)%
(0.25)%
(0.12)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$9,289
$10,333
$11,692
$9,614
$16,721
$9,484
Portfolio
turnover
rate
................
11.92%
35.87%
24.08%
26.25%
47.30%
32.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$138.67
$117.54
$106.46
$169.95
$155.30
$142.56
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.07)
(0.19)
(0.22)
(0.42)
(0.59)
(0.34)
Net
realized
and
unrealized
gains
(losses)
13.03
21.32
11.72
(44.99)
40.08
27.24
Total
from
investment
operations
........
12.96
21.13
11.50
(45.41)
39.49
26.90
Less
distributions
from:
Net
investment
income
..............
—
—
(0.42)
(1.41)
—
—
Net
realized
gains
.................
—
—
—
(16.67)
(24.84)
(14.16)
Total
distributions
...................
—
—
(0.42)
(18.08)
(24.84)
(14.16)
Net
asset
value,
end
of
period
..........
$151.63
$138.67
$117.54
$106.46
$169.95
$155.30
Total
return
c
.......................
9.35%
17.98%
10.86%
(28.39)%
24.56%
18.82%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.77%
0.80%
0.81%
0.79%
0.73%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.76%
0.79%
e
0.81%
f
0.79%
e,f
0.72%
e
0.76%
e
Net
investment
(loss)
................
(0.09)%
(0.15)%
(0.20)%
(0.29)%
(0.33)%
(0.24)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$134,800
$131,350
$110,607
$110,726
$206,375
$159,348
Portfolio
turnover
rate
................
11.92%
35.87%
24.08%
26.25%
47.30%
32.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Biotechnology
Discovery
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
1
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
96.5%
Biotechnology
77.6%
a
Abivax
SA
,
ADR
....................................
France
480,300
$
4,956,696
a,b
Achieve
Life
Sciences,
Inc.
............................
United
States
2,181,025
10,207,197
a
Acumen
Pharmaceuticals,
Inc.
.........................
United
States
826,400
2,380,032
a
Adverum
Biotechnologies,
Inc.
.........................
United
States
624,737
4,557,456
a
Alector,
Inc.
........................................
United
States
303,345
1,492,457
a
Alnylam
Pharmaceuticals,
Inc.
..........................
United
States
41,596
11,089,078
Amgen,
Inc.
.......................................
United
States
186,911
59,841,426
a
AnaptysBio,
Inc.
....................................
United
States
128,979
2,789,816
a
Apogee
Therapeutics,
Inc.
.............................
United
States
155,539
8,094,250
a
Applied
Therapeutics,
Inc.
.............................
United
States
1,536,500
13,582,660
a
Arcutis
Biotherapeutics,
Inc.
...........................
United
States
1,525,545
12,677,279
a
Argenx
SE
,
ADR
....................................
Netherlands
44,485
26,081,556
a
ARS
Pharmaceuticals,
Inc.
............................
United
States
956,989
14,086,878
a
Artiva
Biotherapeutics,
Inc.
............................
South
Korea
43,205
438,099
a,c
Artiva
Biotherapeutics,
Inc.
............................
South
Korea
149,666
1,517,613
a
Ascendis
Pharma
A/S
,
ADR
...........................
Denmark
136,974
16,823,147
a
Aura
Biosciences,
Inc.
................................
United
States
619,986
6,472,654
a,b
Benitec
Biopharma,
Inc.
..............................
Australia
1,297,015
13,631,628
a
Biogen,
Inc.
.......................................
United
States
129,344
22,505,856
a
CAMP4
Therapeutics
Corp.
............................
United
States
233,700
2,484,231
a,d
Carmot
Therapeutics,
Inc.
.............................
United
States
83,100
412,080
a
Centessa
Pharmaceuticals
plc
,
ADR
.....................
United
States
189,736
2,853,630
a,c
Centessa
Pharmaceuticals
plc
,
ADR
.....................
United
States
489,229
7,358,004
a
CG
oncology,
Inc.
...................................
United
States
195,100
6,931,903
a
Cogent
Biosciences,
Inc.
,
B
............................
United
States
340,448
3,911,748
a
Crinetics
Pharmaceuticals,
Inc.
.........................
United
States
228,926
12,810,699
a
Cullinan
Therapeutics,
Inc.
............................
United
States
483,951
7,525,438
a
Cytokinetics,
Inc.
....................................
United
States
41,200
2,101,200
a
Day
One
Biopharmaceuticals,
Inc.
.......................
United
States
843,949
12,422,929
a
Dyne
Therapeutics,
Inc.
..............................
United
States
268,934
7,761,435
a,c
Engene
Holdings,
Inc.
................................
Canada
141,900
1,255,815
a
Engene
Holdings,
Inc.
................................
Canada
272,359
2,410,377
Gilead
Sciences,
Inc.
................................
United
States
489,543
43,481,209
a,c
HilleVax,
Inc.
.......................................
United
States
691,356
1,251,354
a
Immunovant,
Inc.
...................................
United
States
357,713
10,466,682
a,d,e
IN8bio,
Inc.
........................................
United
States
2,090,200
503,621
a
Insmed,
Inc.
.......................................
United
States
379,040
25,501,811
a,c
Jasper
Therapeutics,
Inc.
.............................
United
States
212,241
4,495,264
a
Keros
Therapeutics,
Inc.
..............................
United
States
100,750
5,847,530
a,c
Korro
Bio,
Inc.
......................................
United
States
33,800
1,943,500
a
Kura
Oncology,
Inc.
..................................
United
States
281,882
4,713,067
a
Kyverna
Therapeutics,
Inc.
............................
United
States
244,900
1,170,622
a
Merus
NV
.........................................
Netherlands
499,698
24,949,921
a
Mineralys
Therapeutics,
Inc.
...........................
United
States
637,832
8,534,192
a
Mirum
Pharmaceuticals,
Inc.
...........................
United
States
215,190
8,276,207
a
Neurocrine
Biosciences,
Inc.
...........................
United
States
166,630
20,040,590
a
Neurogene,
Inc.
....................................
United
States
55,200
2,429,352
a
Nuvalent,
Inc.
,
A
....................................
United
States
56,254
4,977,917
a
ORIC
Pharmaceuticals,
Inc.
...........................
United
States
338,301
3,173,263
c
Oruka
Therapeutics,
Inc.
..............................
United
States
249,964
6,998,992
a
Praxis
Precision
Medicines,
Inc.
........................
United
States
164,404
11,506,636
a
PTC
Therapeutics,
Inc.
...............................
United
States
480,611
19,185,991
a
Regeneron
Pharmaceuticals,
Inc.
.......................
United
States
62,222
52,154,480
a
Relay
Therapeutics,
Inc.
..............................
United
States
510,000
2,873,850
a
Rocket
Pharmaceuticals,
Inc.
..........................
United
States
284,733
4,740,804
a
Sarepta
Therapeutics,
Inc.
............................
United
States
83,578
10,530,828
a
Spyre
Therapeutics,
Inc.
..............................
United
States
273,800
8,906,714
a
Syndax
Pharmaceuticals,
Inc.
..........................
United
States
406,551
7,667,552
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Biotechnology
(continued)
a
Ultragenyx
Pharmaceutical,
Inc.
........................
United
States
63,321
$
3,228,738
a,c
uniQure
NV
........................................
Netherlands
733,500
4,195,620
a
Vaxcyte,
Inc.
.......................................
United
States
210,139
22,348,283
a
Vertex
Pharmaceuticals,
Inc.
...........................
United
States
114,726
54,607,282
a
Xenon
Pharmaceuticals,
Inc.
...........................
Canada
93,364
3,838,194
a
Zealand
Pharma
A/S
,
A
...............................
Denmark
69,700
8,046,341
696,051,674
Health
Care
Providers
&
Services
0.8%
a
Guardant
Health,
Inc.
................................
United
States
323,366
7,075,248
Life
Sciences
Tools
&
Services
3.0%
a
Avantor,
Inc.
.......................................
United
States
383,929
8,588,492
a
Illumina,
Inc.
.......................................
United
States
79,688
11,486,228
Sartorius
Stedim
Biotech
..............................
France
10,100
2,026,089
Thermo
Fisher
Scientific,
Inc.
..........................
United
States
8,579
4,686,879
26,787,688
Pharmaceuticals
14.9%
a
Alto
Neuroscience,
Inc.
...............................
United
States
165,070
642,122
a,c
Alto
Neuroscience,
Inc.
...............................
United
States
263,900
1,026,571
a
Aquestive
Therapeutics,
Inc.
...........................
United
States
828,900
4,550,661
AstraZeneca
plc
,
ADR
................................
United
Kingdom
336,408
23,935,429
a
Context
Therapeutics,
Inc.
.............................
United
States
1,238,800
2,700,584
a,c
Contineum
Therapeutics,
Inc.
,
A
........................
United
States
216,967
3,636,367
a
Contineum
Therapeutics,
Inc.
,
A
........................
United
States
295,058
4,945,172
a
EyePoint
Pharmaceuticals,
Inc.
.........................
United
States
1,036,229
12,186,053
a
Intra-Cellular
Therapies,
Inc.
...........................
United
States
355,209
30,103,963
a
Jazz
Pharmaceuticals
plc
.............................
United
States
216,363
23,806,421
a,c
MBX
Biosciences,
Inc.
...............................
United
States
164,500
3,767,050
a
Ocular
Therapeutix,
Inc.
..............................
United
States
410,100
4,318,353
a
Pliant
Therapeutics,
Inc.
..............................
United
States
158,900
2,235,723
a
Relmada
Therapeutics,
Inc.
............................
United
States
456,400
1,588,272
a
Revance
Therapeutics,
Inc.
............................
United
States
1,125,484
6,640,355
a
Structure
Therapeutics,
Inc.
,
ADR
.......................
United
States
176,064
7,245,034
133,328,130
Real
Estate
Management
&
Development
0.2%
a,d,e
Lycia
LLC
,
C
.......................................
Japan
859,370
1,966,252
Total
Common
Stocks
(Cost
$
511,741,623
)
...................................
865,208,992
Convertible
Preferred
Stocks
0.2%
Household
Products
0.2%
a,d,e
Candid,
Inc.
,
B
.....................................
United
States
1,519,609
1,823,531
a
Total
Convertible
Preferred
Stocks
(Cost
$
1,823,531
)
..........................
1,823,531
Preferred
Stocks
0.2%
Life
Sciences
Tools
&
Services
0.2%
f
Sartorius
AG
,
0.31
%
.................................
Germany
9,200
2,383,316
Total
Preferred
Stocks
(Cost
$
4,184,034
)
.....................................
2,383,316
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
0.5%
Biotechnology
0.5%
a,b,d,e
Achieve
Life
Sciences,
Inc.
,
8/31/27
.....................
United
States
2,181,025
$
1,042,388
a,b
Benitec
Biopharma,
Inc.
,
2/20/49
........................
Australia
310,881
3,267,328
a,d,e
IN8bio,
Inc.
,
10/04/27
................................
United
States
2,090,200
369,978
4,679,694
Pharmaceuticals
0.0%
†
a
Nuvation
Bio,
Inc.
,
7/07/27
............................
United
States
115,266
9,602
Total
Warrants
(Cost
$
599,960
)
..............................................
4,689,296
Principal
Amount
*
Convertible
Bonds
0.6%
Biotechnology
0.6%
Jade
Biosciences
GmbH
,
12
%
,
12/31/26
..................
Germany
5,000,000
5,000,000
Total
Convertible
Bonds
(Cost
$
5,000,000
)
...................................
5,000,000
Shares
a
Escrows
and
Litigation
Trusts
0.0%
a,d
Sanofi
SA,
Escrow
Account
............................
France
2,333,755
—
Total
Escrows
and
Litigation
Trusts
(Cost
$
–
)
.................................
—
Total
Long
Term
Investments
(Cost
$
523,349,148
)
.............................
879,105,135
a
Short
Term
Investments
3.4%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.0%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
18,115,719
18,115,719
Total
Money
Market
Funds
(Cost
$
18,115,719
)
................................
18,115,719
i
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.4%
Money
Market
Funds
1.4%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
11,962,765
11,962,765
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
11,962,765
)
.........................................................
11,962,765
Total
Short
Term
Investments
(Cost
$
30,078,484
)
..............................
30,078,484
a
Total
Investments
(Cost
$
553,427,632
)
101.4
%
................................
$909,183,619
Other
Assets,
less
Liabilities
(
1.4
)
%
.........................................
(12,584,058)
Net
Assets
100.0%
.........................................................
$896,599,561
a
a
a
See
Abbreviations
on
page
34.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
7
regarding
holdings
of
5%
voting
securities.
c
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2024.
See
Note
1
(
c
).
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
e
See
Note
6
regarding
restricted
securities.
f
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
g
See
Note
3
(
f
)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
i
See
Note
1
(
c
)
regarding
securities
on
loan.
Financial
Highlights
Franklin
Natural
Resources
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$30.98
$28.10
$27.01
$20.02
$13.60
$23.58
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.27
0.55
0.68
0.50
0.28
0.34
Net
realized
and
unrealized
gains
(losses)
(0.85)
2.90
1.09
6.77
6.54
(9.96)
Total
from
investment
operations
........
(0.58)
3.45
1.77
7.27
6.82
(9.62)
Less
distributions
from:
Net
investment
income
..............
—
(0.57)
(0.68)
(0.28)
(0.40)
(0.36)
Net
asset
value,
end
of
period
..........
$30.40
$30.98
$28.10
$27.01
$20.02
$13.60
Total
return
c
.......................
(1.81)%
12.41%
6.56%
36.63%
50.55%
(41.30)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.00%
1.02%
0.97%
1.10%
1.24%
1.17%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.99%
1.01%
e
0.96%
e
1.10%
f
1.24%
e,f
1.17%
e,f
Net
investment
income
...............
1.75%
1.90%
2.45%
2.17%
1.71%
1.75%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$250,094
$272,081
$301,153
$289,403
$176,127
$123,467
Portfolio
turnover
rate
................
5.20%
11.86%
23.76%
27.45%
49.23%
25.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$30.12
$27.43
$26.45
$19.58
$13.25
$22.82
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.15
0.33
0.46
0.32
0.15
0.19
Net
realized
and
unrealized
gains
(losses)
(0.81)
2.82
1.06
6.63
6.38
(9.70)
Total
from
investment
operations
........
(0.66)
3.15
1.52
6.95
6.53
(9.51)
Less
distributions
from:
Net
investment
income
..............
—
(0.46)
(0.54)
(0.08)
(0.20)
(0.06)
Net
asset
value,
end
of
period
..........
$29.46
$30.12
$27.43
$26.45
$19.58
$13.25
Total
return
c
.......................
(2.19)%
11.60%
5.75%
35.59%
49.42%
(41.71)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.75%
1.77%
1.72%
1.86%
1.99%
1.92%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.74%
1.76%
e
1.71%
e
1.86%
f
1.99%
e,f
1.92%
e,f
Net
investment
income
...............
1.01%
1.16%
1.72%
1.41%
0.93%
1.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$14,954
$17,371
$25,090
$30,427
$27,753
$23,391
Portfolio
turnover
rate
................
5.20%
11.86%
23.76%
27.45%
49.23%
25.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$33.71
$30.45
$29.17
$21.58
$14.63
$25.22
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.36
0.73
0.79
0.64
0.39
0.54
Net
realized
and
unrealized
gains
(losses)
(0.92)
3.15
1.24
7.31
7.05
(10.76)
Total
from
investment
operations
........
(0.56)
3.88
2.03
7.95
7.44
(10.22)
Less
distributions
from:
Net
investment
income
..............
—
(0.62)
(0.75)
(0.36)
(0.49)
(0.37)
Net
asset
value,
end
of
period
..........
$33.15
$33.71
$30.45
$29.17
$21.58
$14.63
Total
return
c
.......................
(1.66)%
12.90%
6.99%
37.24%
51.43%
(41.02)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.66%
0.67%
0.65%
0.80%
0.89%
0.72%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.61%
0.61%
e
0.56%
e
0.65%
0.72%
e
0.66%
e
Net
investment
income
...............
2.12%
2.34%
2.65%
2.53%
2.22%
2.26%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$7,911
$7,995
$12,387
$4,943
$1,722
$839
Portfolio
turnover
rate
................
5.20%
11.86%
23.76%
27.45%
49.23%
25.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$33.43
$30.23
$28.97
$21.44
$14.54
$25.20
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.34
0.67
0.80
0.60
0.33
0.41
Net
realized
and
unrealized
gains
(losses)
(0.92)
3.13
1.18
7.24
7.01
(10.64)
Total
from
investment
operations
........
(0.58)
3.80
1.98
7.84
7.34
(10.23)
Less
distributions
from:
Net
investment
income
..............
—
(0.60)
(0.72)
(0.31)
(0.44)
(0.43)
Net
asset
value,
end
of
period
..........
$32.85
$33.43
$30.23
$28.97
$21.44
$14.54
Total
return
c
.......................
(1.74)%
12.72%
6.86%
36.93%
50.95%
(41.15)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.75%
0.77%
0.72%
0.85%
1.00%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.74%
0.76%
e
0.71%
e
0.85%
f
1.00%
e,f
0.92%
e,f
Net
investment
income
...............
2.00%
2.15%
2.71%
2.39%
1.93%
2.00%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$64,913
$76,028
$82,840
$87,707
$39,562
$28,334
Portfolio
turnover
rate
................
5.20%
11.86%
23.76%
27.45%
49.23%
25.60%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Natural
Resources
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
Common
Stocks
95.6%
Agricultural
Products
&
Services
0.6%
Bunge
Global
SA
.....................................
United
States
23,700
$
1,991,274
Construction
&
Engineering
1.0%
a
Cadeler
A/S
,
ADR
.....................................
Denmark
124,324
3,343,072
a
Construction
Materials
1.4%
Martin
Marietta
Materials,
Inc.
............................
United
States
7,800
4,620,252
Copper
5.6%
Antofagasta
plc
.......................................
Chile
98,300
2,195,344
a
Capstone
Copper
Corp.
................................
Canada
359,500
2,486,433
a
ERO
Copper
Corp.
....................................
Brazil
132,200
2,427,805
Freeport-McMoRan,
Inc.
................................
United
States
198,300
8,927,466
Lundin
Mining
Corp.
...................................
Chile
239,200
2,326,116
18,363,164
Diversified
Chemicals
1.0%
Huntsman
Corp.
......................................
United
States
151,400
3,330,800
Diversified
Metals
&
Mining
6.6%
a
Aclara
Resources,
Inc.
.................................
United
Kingdom
489,200
163,377
a,b
Aclara
Resources,
Inc.
,
144A
............................
United
Kingdom
510,754
170,575
Anglo
American
plc
....................................
South
Africa
58,100
1,800,845
c
BHP
Group
Ltd.
,
ADR
..................................
Australia
110,600
6,133,876
Glencore
plc
.........................................
Australia
334,000
1,751,438
a,c
MP
Materials
Corp.
....................................
United
States
90,000
1,619,100
Rio
Tinto
plc
,
ADR
.....................................
Australia
79,500
5,158,755
South32
Ltd.
.........................................
Australia
565,300
1,355,471
Teck
Resources
Ltd.
,
B
.................................
Canada
97,000
4,509,530
22,662,967
Electrical
Components
&
Equipment
1.2%
a,c
Fluence
Energy,
Inc.
...................................
United
States
74,000
1,609,500
a
Freyr
Battery,
Inc.
.....................................
Norway
513,600
498,192
a
NEXTracker,
Inc.
,
A
....................................
United
States
25,500
1,015,410
a
Shoals
Technologies
Group,
Inc.
,
A
........................
United
States
155,200
839,632
3,962,734
Fertilizers
&
Agricultural
Chemicals
2.6%
Corteva,
Inc.
.........................................
United
States
82,200
5,007,624
Nutrien
Ltd.
..........................................
Canada
76,000
3,623,680
8,631,304
Gold
8.1%
Agnico
Eagle
Mines
Ltd.
................................
Canada
75,500
6,516,745
Alamos
Gold,
Inc.
,
A
...................................
Canada
278,700
5,630,647
B2Gold
Corp.
........................................
Canada
326,200
1,077,689
Barrick
Gold
Corp.
....................................
Canada
301,400
5,823,048
Newmont
Corp.
.......................................
United
States
185,200
8,415,488
27,463,617
Heavy
Electrical
Equipment
0.1%
a
TPI
Composites,
Inc.
...................................
United
States
116,500
396,683
a
Industrial
Gases
3.1%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
18,300
5,682,699
Linde
plc
............................................
United
States
10,800
4,926,420
10,609,119
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Industrial
Machinery
&
Supplies
&
Components
0.6%
Xylem,
Inc.
..........................................
United
States
17,900
$
2,179,862
Integrated
Oil
&
Gas
13.8%
Chevron
Corp.
.......................................
United
States
67,900
10,104,878
Exxon
Mobil
Corp.
.....................................
United
States
129,206
15,088,677
Occidental
Petroleum
Corp.
.............................
United
States
90,000
4,509,900
Shell
plc
,
ADR
........................................
United
States
103,800
7,011,690
Suncor
Energy,
Inc.
....................................
Canada
133,600
5,043,284
TotalEnergies
SE
,
ADR
.................................
France
74,410
4,655,090
46,413,519
Metal,
Glass
&
Plastic
Containers
1.4%
Ball
Corp.
...........................................
United
States
42,300
2,506,275
Crown
Holdings,
Inc.
...................................
United
States
22,100
2,067,455
4,573,730
Oil
&
Gas
Drilling
1.1%
Patterson-UTI
Energy,
Inc.
..............................
United
States
214,724
1,646,933
a
Precision
Drilling
Corp.
.................................
Canada
33,300
1,999,665
3,646,598
Oil
&
Gas
Equipment
&
Services
10.8%
Baker
Hughes
Co.
,
A
...................................
United
States
108,000
4,112,640
Cactus,
Inc.
,
A
........................................
United
States
14,700
871,563
ChampionX
Corp.
.....................................
United
States
50,700
1,430,754
Halliburton
Co.
.......................................
United
States
161,200
4,471,688
Liberty
Energy,
Inc.
,
A
..................................
United
States
86,900
1,483,383
a
Oceaneering
International,
Inc.
...........................
United
States
67,600
1,649,440
a
Oil
States
International,
Inc.
.............................
United
States
103,700
490,501
Ranger
Energy
Services,
Inc.
,
A
..........................
United
States
209,600
2,720,608
Schlumberger
NV
.....................................
United
States
189,200
7,581,244
Select
Water
Solutions,
Inc.
,
A
............................
United
States
153,500
1,627,100
Technip
Energies
NV
...................................
France
72,799
1,817,597
TechnipFMC
plc
......................................
United
Kingdom
260,000
6,939,400
Trican
Well
Service
Ltd.
.................................
Canada
415,400
1,378,352
36,574,270
Oil
&
Gas
Exploration
&
Production
19.7%
Aker
BP
ASA
.........................................
Norway
106,000
2,267,835
Canadian
Natural
Resources
Ltd.
.........................
Canada
242,100
8,233,156
ConocoPhillips
.......................................
United
States
132,700
14,535,958
Coterra
Energy,
Inc.
...................................
United
States
290,000
6,936,800
Devon
Energy
Corp.
...................................
United
States
129,600
5,012,928
EOG
Resources,
Inc.
..................................
United
States
69,600
8,488,416
EQT
Corp.
..........................................
United
States
71,600
2,616,264
Hess
Corp.
..........................................
United
States
55,200
7,423,296
Matador
Resources
Co.
................................
United
States
58,600
3,053,646
Ovintiv,
Inc.
..........................................
United
States
49,100
1,924,720
Permian
Resources
Corp.
,
A
.............................
United
States
239,000
3,257,570
Tourmaline
Oil
Corp.
...................................
Canada
51,700
2,383,469
66,134,058
Oil
&
Gas
Refining
&
Marketing
4.4%
Marathon
Petroleum
Corp.
..............................
United
States
30,600
4,451,382
Phillips
66
...........................................
United
States
50,200
6,115,364
Valero
Energy
Corp.
...................................
United
States
33,900
4,398,864
14,965,610
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Oil
&
Gas
Storage
&
Transportation
9.4%
Cheniere
Energy,
Inc.
..................................
United
States
16,300
$
3,119,494
Enbridge,
Inc.
........................................
Canada
66,600
2,690,640
Kinder
Morgan,
Inc.
....................................
United
States
245,500
6,017,205
c
New
Fortress
Energy,
Inc.
...............................
United
States
86,600
728,306
a
South
Bow
Corp.
......................................
Canada
26,840
669,926
Targa
Resources
Corp.
.................................
United
States
31,100
5,192,456
TC
Energy
Corp.
......................................
Canada
134,200
6,241,642
Williams
Cos.,
Inc.
(The)
................................
United
States
143,600
7,520,332
32,180,001
Packaged
Foods
&
Meats
0.2%
Lamb
Weston
Holdings,
Inc.
.............................
United
States
11,400
885,666
Paper
&
Plastic
Packaging
Products
&
Materials
0.8%
Packaging
Corp.
of
America
.............................
United
States
12,000
2,747,280
Precious
Metals
&
Minerals
0.3%
a
IperionX
Ltd.
.........................................
Australia
449,250
967,988
a
Specialty
Chemicals
0.9%
Albemarle
Corp.
......................................
United
States
26,200
2,481,926
Neo
Performance
Materials,
Inc.
..........................
Canada
23,600
133,225
b
Neo
Performance
Materials,
Inc.
,
144A
.....................
Canada
85,000
479,836
3,094,987
Steel
0.9%
Reliance,
Inc.
........................................
United
States
3,500
1,002,190
Vale
SA
,
ADR
,
B
......................................
Brazil
199,400
2,133,580
3,135,770
Total
Common
Stocks
(Cost
$
193,772,546
)
.....................................
322,874,325
a
Convertible
Preferred
Stocks
0.4%
Specialty
Chemicals
0.4%
Albemarle
Corp.
,
7.25
%
................................
United
States
30,800
1,378,300
Total
Convertible
Preferred
Stocks
(Cost
$
1,540,000
)
............................
1,378,300
Warrants
a
a
a
a
a
Warrants
0.1%
Integrated
Oil
&
Gas
0.1%
a
Occidental
Petroleum
Corp.
,
8/03/27
.......................
United
States
17,900
509,255
Total
Warrants
(Cost
$
88,605
)
.................................................
509,255
Principal
Amount
*
Convertible
Bonds
0.4%
Oil
&
Gas
Equipment
&
Services
0.4%
Oil
States
International,
Inc.
,
Senior
Note
,
4.75
%
,
4/01/26
.......
United
States
1,200,000
1,173,600
Total
Convertible
(Cost
$
1,200,000
)
.....................................
1,173,600
Total
Long
Term
Investments
(Cost
$
196,601,151
)
...............................
325,935,480
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Short
Term
Investments
6.6%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
3.9%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
....
United
States
13,243,713
$
13,243,713
Total
Money
Market
Funds
(Cost
$
13,243,713
)
..................................
13,243,713
f
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
2.7%
Money
Market
Funds
2.7%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
....
United
States
9,133,385
9,133,385
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$
9,133,385
)
.................................................................
9,133,385
Total
Short
Term
Investments
(Cost
$
22,377,098
)
................................
22,377,098
a
Total
Investments
(Cost
$
218,978,249
)
103.1
%
..................................
$348,312,578
Other
Assets,
less
Liabilities
(
3.1
)
%
...........................................
(10,440,338)
Net
Assets
100.0%
...........................................................
$337,872,240
See
Abbreviations
on
page
34
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2024,
the
aggregate
value
of
these
securities
was
$650,411,
representing
0.2%
of
net
assets.
c
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2024.
See
Note
1(c).
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
f
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
October
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$506,030,312
$196,601,151
Cost
-
Non-controlled
affiliates
(Note
3
f
and
7
)
...................................
47,397,320
22,377,098
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
11,295,072
and
$
8,697,503
,
respectively)
............................................................
$850,956,594
$325,935,480
Value
-
Non-controlled
affiliates
(Note
3
f
and
7
)
..................................
58,227,025
22,377,098
Cash
...................................................................
128,426
40,291
Foreign
currency,
at
value
(cost
$
108
and
$
78,649
,
respectively)
......................
108
78,649
Receivables:
Investment
securities
sold
..................................................
81,462
—
Capital
shares
sold
.......................................................
678,854
34,569
Dividends
and
interest
....................................................
355,597
238,099
European
Union
tax
reclaims
(Note
1
d
)
........................................
—
90,860
Total
assets
.........................................................
910,428,066
348,795,046
Liabilities:
Payables:
Investment
securities
purchased
.............................................
59,695
1,074,263
Capital
shares
redeemed
..................................................
793,392
241,473
Management
fees
........................................................
465,991
152,001
Distribution
fees
.........................................................
180,556
68,162
Transfer
agent
fees
.......................................................
214,673
161,049
Trustees'
fees
and
expenses
................................................
93
22
Payable
upon
return
of
securities
loaned
(Note
1
c
)
.................................
11,962,765
9,133,385
Accrued
expenses
and
other
liabilities
..........................................
151,340
92,451
Total
liabilities
........................................................
13,828,505
10,922,806
Net
assets,
at
value
................................................
$896,599,561
$337,872,240
Net
assets
consist
of:
Paid-in
capital
............................................................
$467,225,999
$375,007,330
Total
distributable
earnings
(losses)
............................................
429,373,562
(37,135,090)
Net
assets,
at
value
................................................
$896,599,561
$337,872,240
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
October
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Class
A:
Net
assets,
at
value
......................................................
$727,678,117
$250,093,950
Shares
outstanding
.......................................................
5,033,067
8,225,429
Net
asset
value
per
share
a
,b
.................................................
$144.58
$30.40
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.50
%
)
b
...............
$152.99
$32.17
Class
C:
Net
assets,
at
value
......................................................
$24,832,374
$14,954,196
Shares
outstanding
.......................................................
188,288
507,687
Net
asset
value
and
maximum
offering
price
per
share
a
,b
...........................
$131.89
$29.46
Class
R6:
Net
assets,
at
value
......................................................
$9,288,986
$7,910,612
Shares
outstanding
.......................................................
60,246
238,620
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$154.18
$33.15
Advisor
Class:
Net
assets,
at
value
......................................................
$134,800,084
$64,913,482
Shares
outstanding
.......................................................
888,983
1,975,875
Net
asset
value
and
maximum
offering
price
per
share
b
............................
$151.63
$32.85
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
October
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$–
and
$220,839,
respectively)
Unaffiliated
issuers
.......................................................
$1,844,785
$4,724,770
Non-controlled
affiliates
(Note
3
f
and
7
)
........................................
448,687
152,005
Interest:
Unaffiliated
issuers
.......................................................
164,384
28,500
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
213,644
(88,683)
Non-controlled
affiliates
(Note
3
f
)
............................................
394,706
106,576
Other
income
(Note
1
d
)
.....................................................
—
4,500
Total
investment
income
..................................................
3,066,206
4,927,668
Expenses:
Management
fees
(Note
3
a
)
..................................................
2,795,712
934,006
Distribution
fees:
(Note
3c
)
Class
A
...............................................................
932,907
330,600
Class
C
...............................................................
136,979
81,115
Transfer
agent
fees:
(Note
3e
)
Class
A
...............................................................
468,574
217,886
Class
C
...............................................................
17,183
13,390
Class
R6
..............................................................
5,503
2,978
Advisor
Class
...........................................................
85,764
58,118
Custodian
fees
...........................................................
2,026
3,140
Reports
to
shareholders
fees
.................................................
53,134
29,114
Registration
and
filing
fees
...................................................
45,989
43,821
Professional
fees
..........................................................
40,815
27,860
Trustees'
fees
and
expenses
.................................................
5,248
2,242
Interest
expense
..........................................................
—
2,465
Other
...................................................................
21,950
13,971
Total
expenses
........................................................
4,611,784
1,760,706
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(61,049)
(19,101)
Net
expenses
........................................................
4,550,735
1,741,605
Net
investment
income
(loss)
...........................................
(1,484,529)
3,186,063
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
37,589,096
19,293,666
Foreign
currency
transactions
...............................................
1,422
(4,061)
Net
realized
gain
(loss)
.................................................
37,590,518
19,289,605
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
34,527,591
(29,030,386)
Non-controlled
affiliates
(Note
3
f
and
7
)
......................................
9,002,094
—
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
31
1,808
Net
change
in
unrealized
appreciation
(depreciation)
...........................
43,529,716
(29,028,578)
Net
realized
and
unrealized
gain
(loss)
...........................................
81,120,234
(9,738,973)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$79,635,705
$(6,552,910)
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
T
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(1,484,529)
$(3,257,149)
$3,186,063
$7,327,841
Net
realized
gain
(loss)
............
37,590,518
70,270,543
19,289,605
6,155,538
Net
change
in
unrealized
appreciation
(depreciation)
.................
43,529,716
65,328,352
(29,028,578)
28,205,159
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
79,635,705
132,341,746
(6,552,910)
41,688,538
Distributions
to
shareholders:
Class
A
........................
—
—
—
(5,286,235)
Class
C
........................
—
—
—
(316,747)
Class
R6
.......................
—
—
—
(165,584)
Advisor
Class
...................
—
—
—
(1,479,563)
Total
distributions
to
shareholders
.....
—
—
—
(7,248,129)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(42,147,607)
(90,765,519)
(17,174,948)
(54,180,676)
Class
C
........................
(4,871,998)
(6,308,260)
(2,051,291)
(9,396,377)
Class
R6
.......................
(1,979,215)
(2,922,785)
46,483
(5,139,233)
Advisor
Class
...................
(8,353,227)
3,565,328
(9,869,843)
(13,718,926)
Total
capital
share
transactions
.......
(57,352,047)
(96,431,236)
(29,049,599)
(82,435,212)
Net
increase
(decrease)
in
net
assets
.....................
22,283,658
35,910,510
(35,602,509)
(47,994,803)
Net
assets:
Beginning
of
period
................
874,315,903
838,405,393
373,474,749
421,469,552
End
of
period
.....................
$896,599,561
$874,315,903
$337,872,240
$373,474,749
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
ten separate
funds,
two
of
which
are
included
in
this
report
(Funds).
The
Funds follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer four
classes
of shares: Class
A,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier. Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
and
certain
preferred
securities
generally
trade
in
the
OTC
market rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
October
31,
2024,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statements of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
d.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2024, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Funds, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
a
...................................
147,192
$21,068,956
369,632
$11,385,888
Shares
redeemed
...............................
(441,853)
(63,216,563)
(927,979)
(28,560,836)
Net
increase
(decrease)
..........................
(294,661)
$(42,147,607)
(558,347)
$(17,174,948)
Year
ended
April
30,
2024
Shares
sold
a
...................................
527,209
$62,920,528
1,264,920
$36,259,069
Shares
issued
in
reinvestment
of
distributions
..........
—
—
182,021
5,214,902
Shares
redeemed
...............................
(1,302,203)
(153,686,047)
(3,381,617)
(95,654,647)
Net
increase
(decrease)
..........................
(774,994)
$(90,765,519)
(1,934,676)
$(54,180,676)
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
9,501
$1,249,277
30,990
$924,768
Shares
redeemed
a
..............................
(46,698)
(6,121,275)
(100,008)
(2,976,059)
Net
increase
(decrease)
..........................
(37,197)
$(4,871,998)
(69,018)
$(2,051,291)
Year
ended
April
30,
2024
Shares
sold
...................................
41,225
$4,441,865
110,262
$3,039,841
Shares
issued
in
reinvestment
of
distributions
..........
—
—
11,174
312,200
Shares
redeemed
a
..............................
(100,695)
(10,750,125)
(459,372)
(12,748,418)
Net
increase
(decrease)
..........................
(59,470)
$(6,308,260)
(337,936)
$(9,396,377)
Class
R6
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
3
.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
8,499
$1,290,404
30,384
$1,015,737
Shares
redeemed
...............................
(21,576)
(3,269,619)
(28,944)
(969,254)
Net
increase
(decrease)
..........................
(13,077)
$(1,979,215)
1,440
$46,483
Year
ended
April
30,
2024
Shares
sold
...................................
17,791
$2,320,133
78,008
$2,420,818
Shares
issued
in
reinvestment
of
distributions
..........
—
—
5,317
165,584
Shares
redeemed
...............................
(42,450)
(5,242,918)
(252,929)
(7,725,635)
Net
increase
(decrease)
..........................
(24,659)
$(2,922,785)
(169,604)
$(5,139,233)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
October
31,
2024
Shares
sold
...................................
107,750
$15,950,119
162,767
$5,435,744
Shares
redeemed
...............................
(165,989)
(24,303,346)
(461,345)
(15,305,587)
Net
increase
(decrease)
..........................
(58,239)
$(8,353,227)
(298,578)
$(9,869,843)
Year
ended
April
30,
2024
Shares
sold
...................................
290,098
$38,622,153
654,979
$20,559,328
Shares
issued
in
reinvestment
of
distributions
..........
—
—
47,545
1,468,672
Shares
redeemed
...............................
(283,878)
(35,056,825)
(1,168,531)
(35,746,926)
Net
increase
(decrease)
..........................
6,220
$3,565,328
(466,007)
$(13,718,926)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
a.
Management
Fees
Franklin
Biotechnology
Discovery
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Natural
Resources
Fund pays
an
investment
management fee,
calculated
daily
and
paid
monthly,
to Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2024,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds'
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds'
Class
C
compensation
distribution
plans,
the
Annualized
Fee
Rate
Net
Assets
0.775%
Up
to
and
including
$100
million
0.650%
Over
$100
million,
up
to
and
including
$200
million
0.635%
Over
$200
million,
up
to
and
including
$250
million
0.585%
Over
$250
million,
up
to
and
including
$700
million
0.550%
Over
$700
billion,
up
to
and
including
$1.2
billion
0.525%
Over
$1.2
billion,
up
to
and
including
$7.5
billion
0.515%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.505%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.495%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.475%
In
excess
of
$15
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Gross
effective
investment
management
fee
rate
........
0.608%
0.520%
3
.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Funds
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2024,
the Funds
paid
transfer
agent
fees
as
noted
in
the
Statements of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Class
A
...............................
0.35%
0.35%
Class
C
...............................
1.00%
1.00%
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$22,750
$9,672
CDSC
retained
...........................
$1,490
$712
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Transfer
agent
fees
........................
$159,261
$93,057
3
.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2024,
investments
in
affiliated
management
investment
companies
were
as
follows:
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2025.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$27,497,723
$104,952,637
$(114,334,641)
$—
$—
$18,115,719
18,115,719
$448,687
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$7,029,635
$86,028,864
$(81,095,734)
$—
$—
$11,962,765
11,962,765
$394,706
Total
Affiliated
Securities
...
$34,527,358
$190,981,501
$(195,430,375)
$—
$—
$30,078,484
$843,393
Franklin
Natural
Resources
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$996,110
$51,557,886
$(39,310,283)
$—
$—
$13,243,713
13,243,713
$152,005
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
$5,847,240
$72,535,839
$(69,249,694)
$—
$—
$9,133,385
9,133,385
$106,576
Total
Affiliated
Securities
...
$6,843,350
$124,093,725
$(108,559,977)
$—
$—
$22,377,098
$258,581
3
.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2024,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales,
passive
foreign
investment
company
shares,
corporate
actions
and
net
operating
losses.
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
October
31,
2024,
were
as
follows:
At
October
31,
2024,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
Franklin
Natural
Resources
Fund
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
2,943,242
Long
term
.............................
188,124,991
Total
capital
loss
carryforwards
............
$191,068,233
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
a
a
a
Cost
of
investments
.......................
$559,267,746
$226,457,939
Unrealized
appreciation
.....................
$418,364,081
$146,223,896
Unrealized
depreciation
.....................
(68,448,208)
(24,369,257)
Net
unrealized
appreciation
(depreciation)
.......
$349,915,873
$121,854,639
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Purchases
..............................
$106,420,387
$18,318,489
Sales
..................................
$159,385,908
$54,345,062
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$11,962,765
$9,133,385
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
6.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
October
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
7.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
October
31,
2024,
investments
in
“affiliated
companies”
were
as
follows:
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Biotechnology
Discovery
Fund
2,181,025
a
Achieve
Life
Sciences,
Inc.,
8/31/27
..............
2/29/24
$
22
$
1,042,388
1,519,609
Candid,
Inc.,
B
..............................
8/19/24
1,823,531
1,823,531
2,090,200
IN8bio
Inc
.................................
9/30/24
825,629
503,621
2,090,200
IN8bio,
Inc.,
10/04/27
.........................
10/10/24
—
369,978
859,370
Lycia
LLC,
C
...............................
4/26/24
1,754,576
1,966,252
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$4,403,758
$5,705,770
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$10,207,197
as
of
October
31,
2024.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Warrants/
Principal
Amount*
Held
at
End
of
Period
Investment
Income
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Achieve
Life
Sciences
Inc
$
9,574,700
$
—
$
—
$
—
$
632,497
$
10,207,197
2,181,025
$
—
Achieve
Life
Sciences,
Inc.,
8/31/27
......
863,880
—
—
—
178,508
1,042,388
2,181,025
—
Benitec
Biopharma,
Inc
.
3,083,295
2,997,659
a
—
—
7,550,674
13,631,628
1,297,015
—
Benitec
Biopharma,
Inc.,
2/20/49
..........
2,626,913
—
—
—
640,415
3,267,328
310,881
—
Total
Affiliated
Securities
(Value
is
3.1%
of
Net
Assets)
..........
$16,148,788
$2,997,659
$—
$—
$9,002,094
$28,148,541
$—
a
May
include
accretion,
amortization,
and/or
other
cost
basis
adjustments.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
8.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
October
31,
2024,
the
Funds
did
not
use
the
Global
Credit
Facility.
9.
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
October
31,
2024,
in
valuing
the
Funds'
assets carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
.........................
$
686,651,533
$
8,484,440
$
915,701
$
696,051,674
Health
Care
Providers
&
Services
..........
7,075,248
—
—
7,075,248
Life
Sciences
Tools
&
Services
............
24,761,599
2,026,089
—
26,787,688
Pharmaceuticals
.......................
133,328,130
—
—
133,328,130
Real
Estate
Management
&
Development
....
—
—
1,966,252
1,966,252
Convertible
Preferred
Stocks
................
—
—
1,823,531
1,823,531
Preferred
Stocks
.........................
—
2,383,316
—
2,383,316
Warrants
:
Biotechnology
.........................
—
3,267,328
1,412,366
4,679,694
Pharmaceuticals
.......................
9,602
—
—
9,602
Convertible
Bonds
.......................
—
5,000,000
—
5,000,000
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
30,078,484
—
—
30,078,484
Total
Investments
in
Securities
...........
$881,904,596
$21,161,173
b
$6,117,850
$909,183,619
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Level
1
Level
2
Level
3
Total
Franklin
Natural
Resources
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Agricultural
Products
&
Services
...........
$
1,991,274
$
—
$
—
$
1,991,274
Construction
&
Engineering
...............
3,343,072
—
—
3,343,072
Construction
Materials
..................
4,620,252
—
—
4,620,252
Copper
..............................
16,167,820
2,195,344
—
18,363,164
Diversified
Chemicals
...................
3,330,800
—
—
3,330,800
Diversified
Metals
&
Mining
...............
17,755,213
4,907,754
—
22,662,967
Electrical
Components
&
Equipment
........
3,962,734
—
—
3,962,734
Fertilizers
&
Agricultural
Chemicals
.........
8,631,304
—
—
8,631,304
Gold
................................
27,463,617
—
—
27,463,617
Heavy
Electrical
Equipment
..............
396,683
—
—
396,683
Industrial
Gases
.......................
10,609,119
—
—
10,609,119
Industrial
Machinery
&
Supplies
&
Components
2,179,862
—
—
2,179,862
Integrated
Oil
&
Gas
....................
46,413,519
—
—
46,413,519
Metal,
Glass
&
Plastic
Containers
..........
4,573,730
—
—
4,573,730
Oil
&
Gas
Drilling
......................
3,646,598
—
—
3,646,598
Oil
&
Gas
Equipment
&
Services
...........
34,756,673
1,817,597
—
36,574,270
Oil
&
Gas
Exploration
&
Production
.........
63,866,223
2,267,835
—
66,134,058
Oil
&
Gas
Refining
&
Marketing
............
14,965,610
—
—
14,965,610
Oil
&
Gas
Storage
&
Transportation
.........
32,180,001
—
—
32,180,001
Packaged
Foods
&
Meats
................
885,666
—
—
885,666
Paper
&
Plastic
Packaging
Products
&
Materials
2,747,280
—
—
2,747,280
Precious
Metals
&
Minerals
...............
—
967,988
—
967,988
Specialty
Chemicals
....................
3,094,987
—
—
3,094,987
Steel
................................
3,135,770
—
—
3,135,770
Convertible
Preferred
Stocks
...............
1,378,300
—
—
1,378,300
Warrants
..............................
509,255
—
—
509,255
Convertible
Bonds
.......................
—
1,173,600
—
1,173,600
Short
Term
Investments
...................
22,377,098
—
—
22,377,098
Total
Investments
in
Securities
...........
$334,982,460
$13,330,118
c
$—
$348,312,578
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$12,455,746,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$12,156,518,
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.
9.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period
.
At
October
31,
2024
,
the
reconciliation
is
as
follows:
Level
3
financial
instruments,
for
the
Franklin
Biotechnology
Discovery
Fund,
include
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
10.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
......
$
8,131,983
$
824,698
$
(3,428,442)
$
—
$
—
$
—
$
—
$
(4,612,538)
$
915,701
$
(311,272)
Real
Estate
Management
&
Development
.....
1,754,576
—
—
—
—
—
—
211,676
1,966,252
211,676
Convertible
Preferred
Stocks
:
Household
Products
..
—
1,823,531
—
—
—
—
—
—
1,823,531
—
Preferred
Stocks
:
Health
Care
Providers
&
Services
........
946,196
—
(2,084,489)
—
—
—
—
1,138,293
—
—
Warrants
:
Biotechnology
......
3,992,630
—
c
(733)
—
—
—
—
(2,579,531)
1,412,366
548,486
Escrows
and
Litigation
Trusts
:
—
c
—
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$14,825,385
$2,648,229
$(5,513,664)
$—
$—
$—
$—
$(5,842,100)
$6,117,850
$448,890
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Includes
financial
instruments
determined
to
have
no
value.
Selected
Portfolio
ADR
American
Depositary
Receipt
9.
Fair
Value
Measurements
(continued)
FRANKLIN
STRATEGIC
SERIES
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
FT
family
of
funds
and
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
December
31,
2023.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Biotechnology
Discovery
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
health/biotechnology
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-year
period
was
above
the
median
and
in
the
first
(best)
quintile
of
its
Performance
Universe,
but
for
the
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
explained
that
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
biotechnology
companies
and
discovery
research
firms,
while
the
Performance
Universe
is
comprised
mostly
of
general
healthcare
funds,
noting
that
healthcare
securities
outperformed
biotechnology
securities
during
the
reporting
periods.
Management
also
noted
that
the
Fund
outperformed
its
benchmark
and
narrow
peer
group
of
biotechnology-only
sector
funds
in
the
one-
and
five-year
periods
ending
December
31,
2023.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-year
period
ending
December
31,
2023
was
18.40%.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Natural
Resources
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
global
natural
resources
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
three-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
each
Fund
and
for
each
of
the
other
funds
in
each
Fund’s
respective
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Franklin
Biotechnology
Discovery
Fund
included
the
Fund
and
eight
other
health/biotechnology
funds.
The
Expense
Group
for
the
Franklin
Natural
Resources
Fund
included
the
Fund,
five
other
global
natural
resources
funds
and
three
natural
resources
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
the
Funds
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Franklin
Biotechnology
Discovery
Fund
had
experienced
a
significant
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
©
2024
Franklin
Templeton.
All
rights
reserved.
Franklin
Strategic
Income
Fund
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
October
31,
2024
Financial
Statements
and
Other
Important
Information—Semiannual
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
97
Notes
to
Financial
Statements
101
Changes
In
and
Disagreements
with
Accountants
120
Results
of
Meeting(s)
of
Shareholders
120
Remuneration
Paid
to
Directors,
Officers
and
Others
120
Board
Approval
of
Management
and
Subadvisory
Agreements
120
Financial
Highlights
Franklin
Strategic
Income
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021*
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.10
$8.23
$8.55
$9.44
$8.67
$9.61
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.20
0.37
0.36
0.29
0.37
0.38
Net
realized
and
unrealized
gains
(losses)
0.20
(0.12)
(0.31)
(0.84)
0.75
(0.90)
Total
from
investment
operations
........
0.40
0.25
0.05
(0.55)
1.12
(0.52)
Less
distributions
from:
Net
investment
income
..............
(0.19)
(0.38)
(0.37)
(0.34)
(0.35)
(0.42)
Net
asset
value,
end
of
period
..........
$8.31
$8.10
$8.23
$8.55
$9.44
$8.67
Total
return
d
.......................
5.08%
3.12%
0.73%
(6.07)%
13.05%
(5.72)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.93%
0.94%
0.94%
0.90%
0.88%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.93%
f
0.91%
g
0.89%
g
0.84%
g
0.86%
g
0.86%
g
Net
investment
income
...............
4.65%
4.55%
4.34%
3.11%
3.93%
4.01%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,064,958
$2,079,060
$2,285,374
$2,609,533
$2,862,068
$2,686,523
Portfolio
turnover
rate
................
53.06%
65.73%
h
69.77%
52.98%
111.72%
h
118.64%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
.......................
24.81%
55.51%
h
69.77%
41.46%
54.21%
h
86.69%
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
12
for
prior
year
information.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021*
2020
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.11
$8.23
$8.55
$9.44
$8.67
$9.61
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.34
0.32
0.25
0.33
0.34
Net
realized
and
unrealized
gains
(losses)
0.20
(0.12)
(0.30)
(0.84)
0.75
(0.90)
Total
from
investment
operations
........
0.38
0.22
0.02
(0.59)
1.08
(0.56)
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.34)
(0.34)
(0.30)
(0.31)
(0.38)
Net
asset
value,
end
of
period
..........
$8.32
$8.11
$8.23
$8.55
$9.44
$8.67
Total
return
d
.......................
4.86%
2.80%
0.30%
(6.48)%
12.58%
(6.11)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.33%
1.34%
1.34%
1.29%
1.28%
1.28%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.33%
f
1.31%
g
1.29%
g
1.24%
g
1.26%
g
1.26%
g
Net
investment
income
...............
4.26%
4.14%
3.92%
2.70%
3.51%
3.61%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$58,015
$64,894
$100,037
$171,374
$387,589
$518,795
Portfolio
turnover
rate
................
53.06%
65.73%
h
69.77%
52.98%
111.72%
h
118.64%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
.......................
24.81%
55.51%
h
69.77%
41.46%
54.21%
h
86.69%
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
12
for
prior
year
information.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021*
2020
a
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.06
$8.19
$8.51
$9.40
$8.63
$9.57
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.35
0.33
0.27
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
0.21
(0.12)
(0.30)
(0.85)
0.76
(0.91)
Total
from
investment
operations
........
0.39
0.23
0.03
(0.58)
1.10
(0.55)
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.36)
(0.35)
(0.31)
(0.33)
(0.39)
Net
asset
value,
end
of
period
..........
$8.27
$8.06
$8.19
$8.51
$9.40
$8.63
Total
return
d
.......................
4.85%
2.87%
0.48%
(6.33)%
12.83%
(5.98)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
1.18%
1.19%
1.19%
1.15%
1.13%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
1.18%
f
1.16%
g
1.14%
g
1.09%
g
1.11%
g
1.11%
g
Net
investment
income
...............
4.40%
4.30%
4.09%
2.86%
3.68%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$36,987
$36,034
$40,939
$48,447
$59,366
$62,063
Portfolio
turnover
rate
................
53.06%
65.73%
h
69.77%
52.98%
111.72%
h
118.64%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
.......................
24.81%
55.51%
h
69.77%
41.46%
54.21%
h
86.69%
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
12
for
prior
year
information.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021*
2020
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.11
$8.24
$8.56
$9.45
$8.68
$9.63
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.21
0.40
0.39
0.32
0.40
0.43
Net
realized
and
unrealized
gains
(losses)
0.22
(0.12)
(0.31)
(0.84)
0.75
(0.93)
Total
from
investment
operations
........
0.43
0.28
0.08
(0.52)
1.15
(0.50)
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.41)
(0.40)
(0.37)
(0.38)
(0.45)
Net
asset
value,
end
of
period
..........
$8.33
$8.11
$8.24
$8.56
$9.45
$8.68
Total
return
d
.......................
5.27%
3.49%
1.12%
(5.72)%
13.45%
(5.46)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.57%
0.58%
0.58%
0.55%
0.54%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.56%
0.55%
f
0.51%
f
0.48%
f
0.50%
f
0.49%
f
Net
investment
income
...............
5.02%
4.92%
4.73%
3.47%
4.30%
4.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$133,510
$133,098
$132,950
$136,184
$132,736
$133,575
Portfolio
turnover
rate
................
53.06%
65.73%
g
69.77%
52.98%
111.72%
g
118.64%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
h
.......................
24.81%
55.51%
g
69.77%
41.46%
54.21%
g
86.69%
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
12
for
prior
year
information.
h
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
2023
2022
2021*
2020
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.11
$8.24
$8.56
$9.45
$8.68
$9.62
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.21
0.39
0.38
0.31
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
0.21
(0.12)
(0.31)
(0.84)
0.75
(0.90)
Total
from
investment
operations
........
0.42
0.27
0.07
(0.53)
1.14
(0.50)
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.40)
(0.39)
(0.36)
(0.37)
(0.44)
Net
asset
value,
end
of
period
..........
$8.33
$8.11
$8.24
$8.56
$9.45
$8.68
Total
return
d
.......................
5.21%
3.37%
0.98%
(5.83)%
13.32%
(5.47)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
.........................
0.68%
0.69%
0.69%
0.65%
0.63%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
.........................
0.68%
f
0.66%
g
0.64%
g
0.59%
g
0.61%
g
0.61%
g
Net
investment
income
...............
4.90%
4.80%
4.59%
3.36%
4.18%
4.26%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$275,946
$272,301
$311,142
$390,465
$462,624
$517,522
Portfolio
turnover
rate
................
53.06%
65.73%
h
69.77%
52.98%
111.72%
h
118.64%
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
.......................
24.81%
55.51%
h
69.77%
41.46%
54.21%
h
86.69%
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
12
for
prior
year
information.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Strategic
Income
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.0%
†
Broadline
Retail
0.0%
a,b,c
K2016470219
South
Africa
Ltd.
,
A
.......................
South
Africa
125,940,079
$
—
a,b,c
K2016470219
South
Africa
Ltd.
,
B
.......................
South
Africa
12,532,821
—
—
Hotels,
Restaurants
&
Leisure
0.0%
†
b
24
Hour
Fitness
Worldwide,
Inc.
........................
United
States
45,334
1,360
Machinery
0.0%
†
UTEX
Industries,
Inc.
................................
United
States
16,788
663,126
Oil,
Gas
&
Consumable
Fuels
0.0%
†
b
Amplify
Energy
Corp.
................................
United
States
5,288
35,007
Birch
Permian
Holdings,
Inc.
...........................
United
States
46,176
312,842
347,849
Total
Common
Stocks
(Cost
$
12,354,962
)
....................................
1,012,335
Management
Investment
Companies
0.5%
Capital
Markets
0.5%
a,b,d,e
Franklin
BSP
Real
Estate
Credit
BDC
....................
United
States
489,644
12,671,987
b
Total
Management
Investment
Companies
(Cost
$
12,470,323
)
..................
12,671,987
Preferred
Stocks
0.0%
†
Hotels,
Restaurants
&
Leisure
0.0%
†
b
24
Hour
Fitness
Worldwide,
Inc.
........................
United
States
107,362
16,104
b
Total
Preferred
Stocks
(Cost
$
1,610
)
.........................................
16,104
Warrants
Warrants
0.0%
†
Machinery
0.0%
†
a,b
UTEX
Industries,
Inc.
,
2/20/49
..........................
United
States
1,440
5
Oil,
Gas
&
Consumable
Fuels
0.0%
a,b
Canvas
Energy,
Inc.
,
10/01/25
..........................
United
States
9
—
Software
0.0%
a,b,c
WorkCapital
BSD
SARL
,
2/13/26
........................
Luxembourg
6,000,000
—
Total
Warrants
(Cost
$
751,272
)
..............................................
5
Principal
Amount
*
Corporate
Bonds
57.7%
Aerospace
&
Defense
1.1%
Boeing
Co.
(The)
,
Senior
Bond
,
3.625%,
2/01/31
........................
United
States
5,000,000
4,518,722
Senior
Note
,
5.15%,
5/01/30
.........................
United
States
8,100,000
7,998,108
f
Bombardier,
Inc.
,
Senior
Note
,
144A,
7%,
6/01/32
...........
Canada
5,100,000
5,227,757
Howmet
Aerospace,
Inc.
,
Senior
Note
,
4.85%,
10/15/31
.......
United
States
2,100,000
2,085,998
f
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6%,
1/15/33
.....
United
States
8,000,000
7,935,635
27,766,220
Air
Freight
&
Logistics
0.0%
†
FedEx
Corp.
,
Senior
Bond
,
4.05%,
2/15/48
................
United
States
1,200,000
952,969
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Automobile
Components
1.0%
f
Adient
Global
Holdings
Ltd.
,
Senior
Note
,
144A,
8.25%,
4/15/31
....................
United
States
5,300,000
$
5,494,695
Senior
Secured
Note
,
144A,
7%,
4/15/28
................
United
States
2,000,000
2,034,970
f
Allison
Transmission,
Inc.
,
Senior
Bond
,
144A,
5.875%,
6/01/29
...................
United
States
7,000,000
6,981,909
Senior
Bond
,
144A,
3.75%,
1/30/31
....................
United
States
3,400,000
3,020,109
f
Garrett
Motion
Holdings,
Inc.
/
Garrett
LX
I
SARL
,
Senior
Note
,
144A,
7.75%,
5/31/32
...............................
United
States
3,600,000
3,595,631
f
ZF
North
America
Capital,
Inc.
,
Senior
Note
,
144A,
6.75%,
4/23/30
.........................................
Germany
3,600,000
3,551,630
24,678,944
Automobiles
0.3%
f
Hyundai
Capital
America
,
Senior
Note
,
144A,
5.35%,
3/19/29
..
United
States
1,300,000
1,313,285
f
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5%,
7/15/29
.........................................
United
Kingdom
7,000,000
6,836,996
8,150,281
Banks
6.4%
f
ABN
AMRO
Bank
NV
,
Senior
Non-Preferred
Note
,
144A,
6.339%
to
9/17/26,
FRN
thereafter
,
9/18/27
.....................
Netherlands
2,100,000
2,154,745
Banco
Santander
SA
,
Sub.
Bond
,
2.749%,
12/03/30
.........
Spain
3,000,000
2,575,874
Bank
of
America
Corp.
,
Senior
Bond
,
2.299%
to
7/20/31,
FRN
thereafter
,
7/21/32
...
United
States
3,500,000
2,941,229
Senior
Bond
,
4.571%
to
4/26/32,
FRN
thereafter
,
4/27/33
...
United
States
8,000,000
7,710,783
Senior
Note
,
4.376%
to
4/26/27,
FRN
thereafter
,
4/27/28
....
United
States
9,500,000
9,407,449
f
BNP
Paribas
SA
,
Senior
Non-Preferred
Note
,
144A,
2.819%
to
11/18/24,
FRN
thereafter
,
11/19/25
................................
France
4,400,000
4,394,846
Senior
Preferred
Note
,
144A,
5.176%
to
1/08/29,
FRN
thereafter
,
1/09/30
.................................
France
6,500,000
6,535,624
f
BPCE
SA
,
Senior
Non-Preferred
Note
,
144A,
2.045%
to
10/18/26,
FRN
thereafter
,
10/19/27
............................
France
7,900,000
7,455,160
Citigroup,
Inc.
,
Senior
Note
,
5.61%
to
9/28/25,
FRN
thereafter
,
9/29/26
.........................................
United
States
15,500,000
15,588,427
HSBC
Holdings
plc
,
Senior
Bond
,
2.848%
to
6/03/30,
FRN
thereafter
,
6/04/31
...
United
Kingdom
8,300,000
7,361,712
Senior
Note
,
4.18%
to
12/08/24,
FRN
thereafter
,
12/09/25
...
United
Kingdom
9,100,000
9,087,200
Senior
Note
,
5.21%
to
8/10/27,
FRN
thereafter
,
8/11/28
.....
United
Kingdom
5,850,000
5,894,691
JPMorgan
Chase
&
Co.
,
Senior
Bond
,
2.522%
to
4/21/30,
FRN
thereafter
,
4/22/31
...
United
States
9,400,000
8,313,471
Senior
Bond
,
1.953%
to
2/03/31,
FRN
thereafter
,
2/04/32
...
United
States
3,400,000
2,845,152
Senior
Bond
,
5.336%
to
1/22/34,
FRN
thereafter
,
1/23/35
...
United
States
2,500,000
2,522,459
KeyBank
NA
,
Senior
Note
,
4.15%,
8/08/25
................
United
States
5,000,000
4,965,162
Mizuho
Financial
Group,
Inc.
,
Senior
Note
,
5.778%
to
7/05/28,
FRN
thereafter
,
7/06/29
.............................
Japan
5,100,000
5,245,601
Royal
Bank
of
Canada
,
Senior
Note
,
5.2%,
8/01/28
..........
Canada
1,800,000
1,829,565
Santander
UK
Group
Holdings
plc
,
Senior
Note
,
1.673%
to
6/23/26,
FRN
thereafter
,
6/14/27
......................
United
Kingdom
6,700,000
6,344,180
f
Societe
Generale
SA
,
Senior
Non-Preferred
Bond
,
144A,
2.889%
to
6/08/31,
FRN
thereafter
,
6/09/32
.................................
France
7,500,000
6,370,759
Senior
Non-Preferred
Note
,
144A,
1.792%
to
6/08/26,
FRN
thereafter
,
6/09/27
.................................
France
7,200,000
6,815,936
Toronto-Dominion
Bank
(The)
,
Senior
Note
,
4.693%,
9/15/27
...
Canada
9,900,000
9,886,684
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Banks
(continued)
Truist
Financial
Corp.
,
Senior
Note
,
5.9%
to
10/27/25,
FRN
thereafter
,
10/28/26
................................
United
States
7,900,000
$
7,973,507
f
UniCredit
SpA
,
Senior
Preferred
Bond
,
144A,
3.127%
to
6/02/31,
FRN
thereafter
,
6/03/32
.............................
Italy
5,300,000
4,641,629
Wells
Fargo
&
Co.
,
Senior
Note
,
4.54%
to
8/14/25,
FRN
thereafter
,
8/15/26
.....
United
States
4,700,000
4,681,902
Senior
Note
,
6.303%
to
10/22/28,
FRN
thereafter
,
10/23/29
..
United
States
7,400,000
7,756,567
Senior
Note
,
5.198%
to
1/22/29,
FRN
thereafter
,
1/23/30
....
United
States
4,400,000
4,444,667
165,744,981
Beverages
0.3%
f
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375%,
4/30/29
Canada
9,000,000
8,488,164
Biotechnology
0.4%
Amgen,
Inc.
,
Senior
Bond
,
4.2%,
3/01/33
..........................
United
States
4,000,000
3,763,411
Senior
Bond
,
5.25%,
3/02/33
.........................
United
States
6,600,000
6,670,540
10,433,951
Broadline
Retail
0.2%
a
,f
,g
,h
K2016470219
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
3%,
12/31/22
.....................................
South
Africa
10,914,248
—
a
,f
,g
,h
K2016470260
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
25%,
12/31/22
....................................
South
Africa
4,807,777
—
f
Wayfair
LLC
,
Senior
Secured
Note
,
144A,
7.25%,
10/31/29
....
United
States
4,500,000
4,564,855
4,564,855
Building
Products
0.9%
f
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75%,
8/01/28
...................................
United
States
3,300,000
3,318,916
f
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625%,
12/15/30
........................
United
States
8,500,000
8,655,320
f
Miter
Brands
Acquisition
Holdco,
Inc.
/
MIWD
Borrower
LLC
,
Senior
Secured
Note
,
144A,
6.75%,
4/01/32
..............
United
States
2,900,000
2,951,835
f
Standard
Industries,
Inc.
,
Senior
Bond
,
144A,
4.75%,
1/15/28
....................
United
States
4,800,000
4,633,924
Senior
Bond
,
144A,
4.375%,
7/15/30
...................
United
States
1,000,000
919,693
Senior
Bond
,
144A,
3.375%,
1/15/31
...................
United
States
1,400,000
1,216,614
Senior
Note
,
144A,
6.5%,
8/15/32
.....................
United
States
300,000
302,144
21,998,446
Capital
Markets
2.8%
Deutsche
Bank
AG
,
Senior
Preferred
Note
,
5.371%,
9/09/27
...
Germany
7,800,000
7,960,798
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond
,
2.383%
to
7/20/31,
FRN
thereafter
,
7/21/32
...
United
States
6,500,000
5,481,106
Senior
Note
,
5.7%,
11/01/24
.........................
United
States
6,200,000
6,200,000
Senior
Note
,
4.387%
to
6/14/26,
FRN
thereafter
,
6/15/27
....
United
States
3,400,000
3,382,413
Senior
Note
,
1.948%
to
10/20/26,
FRN
thereafter
,
10/21/27
..
United
States
3,000,000
2,837,240
f
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
6.125%,
11/01/32
.............................
United
States
4,200,000
4,205,344
Morgan
Stanley
,
Senior
Bond
,
3.591%,
7/22/28
........................
United
States
10,000,000
9,694,921
Senior
Bond
,
5.466%
to
1/17/34,
FRN
thereafter
,
1/18/35
...
United
States
1,900,000
1,925,477
f
MSCI,
Inc.
,
Senior
Bond
,
144A,
3.25%,
8/15/33
.............
United
States
11,800,000
10,095,065
f
Prologis
Targeted
US
Logistics
Fund
LP
,
Senior
Note
,
144A,
5.25%,
4/01/29
...................................
United
States
2,400,000
2,433,763
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Capital
Markets
(continued)
f
StoneX
Group,
Inc.
,
Senior
Secured
Note
,
144A,
7.875%,
3/01/31
United
States
2,600,000
$
2,737,725
UBS
Group
AG
,
Senior
Note
,
4.55%,
4/17/26
.........................
Switzerland
4,000,000
3,984,548
f
Senior
Note
,
144A,
2.193%
to
6/04/25,
FRN
thereafter
,
6/05/26
Switzerland
1,000,000
982,076
f
Senior
Note
,
144A,
6.373%
to
7/14/25,
FRN
thereafter
,
7/15/26
Switzerland
3,050,000
3,074,042
f
Senior
Note
,
144A,
5.711%
to
1/11/26,
FRN
thereafter
,
1/12/27
Switzerland
8,150,000
8,213,134
73,207,652
Chemicals
1.3%
f
Avient
Corp.
,
Senior
Note
,
144A,
6.25%,
11/01/31
...........
United
States
1,500,000
1,505,377
f
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99%,
2/20/32
.........................................
Mexico
3,500,000
2,601,921
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.165%,
7/15/27
....
United
States
4,850,000
4,962,023
f
Cerdia
Finanz
GmbH
,
Senior
Secured
Note
,
144A,
9.375%,
10/03/31
........................................
Germany
2,000,000
2,061,900
f
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625%,
10/15/28
........................................
Switzerland
3,600,000
2,937,546
f
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875%,
9/01/28
...
United
States
6,600,000
6,364,488
Nutrien
Ltd.
,
Senior
Note
,
4.9%,
3/27/28
..................
Canada
1,150,000
1,158,828
f
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25%,
9/01/29
United
States
2,800,000
2,988,846
f
Syngenta
Finance
NV
,
Senior
Note
,
144A,
4.892%,
4/24/25
....
Switzerland
6,385,000
6,365,812
Westlake
Corp.
,
Senior
Bond
,
3.375%,
6/15/30
.............
United
States
2,500,000
2,307,635
f
Yara
International
ASA
,
Senior
Bond
,
144A,
3.148%,
6/04/30
...
Brazil
1,400,000
1,256,830
34,511,206
Commercial
Services
&
Supplies
1.2%
f
Allied
Universal
Holdco
LLC
,
Senior
Secured
Note
,
144A,
7.875%,
2/15/31
...................................
United
States
2,900,000
2,953,760
f
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375%,
8/31/27
.............
United
States
11,000,000
10,363,024
f
RR
Donnelley
&
Sons
Co.
,
Senior
Secured
Note
,
144A,
9.5%,
8/01/29
.........................................
United
States
3,000,000
3,023,640
f
Stericycle,
Inc.
,
Senior
Note
,
144A,
3.875%,
1/15/29
.........
United
States
9,500,000
9,352,156
f
Wrangler
Holdco
Corp.
,
Senior
Note
,
144A,
6.625%,
4/01/32
...
Canada
4,600,000
4,701,881
30,394,461
Communications
Equipment
0.2%
f
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6%,
6/15/25
United
States
5,518,000
5,414,537
Construction
&
Engineering
0.2%
f
Arcosa,
Inc.
,
Senior
Note
,
144A,
4.375%,
4/15/29
...................
United
States
5,600,000
5,289,421
Senior
Note
,
144A,
6.875%,
8/15/32
...................
United
States
400,000
410,923
5,700,344
Construction
Materials
0.3%
f
Knife
River
Corp.
,
Senior
Note
,
144A,
7.75%,
5/01/31
........
United
States
7,000,000
7,339,612
Consumer
Finance
1.2%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond
,
3.4%,
10/29/33
.........................
Ireland
7,700,000
6,605,961
f
FirstCash,
Inc.
,
Senior
Note
,
144A,
6.875%,
3/01/32
.........
United
States
6,000,000
6,075,870
General
Motors
Financial
Co.,
Inc.
,
Senior
Bond
,
5.45%,
9/06/34
United
States
2,550,000
2,510,964
OneMain
Finance
Corp.
,
Senior
Note
,
9%,
1/15/29
..........
United
States
6,900,000
7,315,670
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Consumer
Finance
(continued)
f
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6%,
11/15/29
.......
United
States
7,300,000
$
7,063,425
29,571,890
Consumer
Staples
Distribution
&
Retail
0.2%
f
Cencosud
SA
,
Senior
Note
,
144A,
5.95%,
5/28/31
...........
Chile
600,000
607,935
f
US
Foods,
Inc.
,
Senior
Note
,
144A,
6.875%,
9/15/28
...................
United
States
3,300,000
3,396,228
Senior
Note
,
144A,
5.75%,
4/15/33
....................
United
States
1,400,000
1,382,193
5,386,356
Containers
&
Packaging
1.1%
f
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Secured
Note
,
144A,
2.125%,
8/15/26
.............
United
States
2,500,000
EUR
2,310,595
f
OI
European
Group
BV
,
Senior
Note
,
144A,
4.75%,
2/15/30
....
United
States
3,600,000
3,264,593
f
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note
,
144A,
7.25%,
5/15/31
...................................
United
States
3,000,000
2,954,325
f
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375%,
10/15/28
...
United
States
6,100,000
5,742,942
f
Sealed
Air
Corp.
,
Senior
Note
,
144A,
6.125%,
2/01/28
........
United
States
8,000,000
8,090,656
f
Trivium
Packaging
Finance
BV
,
Senior
Secured
Note
,
144A,
5.5%,
8/15/26
....................................
Netherlands
2,000,000
1,984,263
WRKCo,
Inc.
,
Senior
Bond
,
3%,
6/15/33
..................
United
States
3,600,000
3,056,086
27,403,460
Distributors
0.2%
f
Ritchie
Bros
Holdings,
Inc.
,
Senior
Note
,
144A,
7.75%,
3/15/31
....................
Canada
2,700,000
2,848,071
Senior
Secured
Note
,
144A,
6.75%,
3/15/28
.............
Canada
1,500,000
1,540,005
4,388,076
Diversified
Consumer
Services
0.3%
Grand
Canyon
University
,
Secured
Note
,
5.125%,
10/01/28
....
United
States
7,500,000
7,039,830
Diversified
REITs
0.3%
f
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75%,
12/15/27
.................
United
States
7,700,000
7,069,062
Diversified
Telecommunication
Services
0.8%
AT&T,
Inc.
,
Senior
Bond
,
2.55%,
12/01/33
........................
United
States
8,000,000
6,510,166
Senior
Bond
,
3.65%,
9/15/59
.........................
United
States
4,000,000
2,747,002
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
4.5%,
5/01/32
....................................
United
States
3,000,000
2,554,942
f
Iliad
Holding
SASU
,
Senior
Secured
Note
,
144A,
7%,
10/15/28
.
France
2,000,000
2,027,411
Verizon
Communications,
Inc.
,
Senior
Note
,
2.355%,
3/15/32
..
United
States
8,400,000
7,005,804
20,845,325
Electric
Utilities
2.5%
f
,i
California
Buyer
Ltd.
/
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
6.375%,
2/15/32
....................
Spain
1,400,000
1,391,200
Duke
Energy
Corp.
,
Senior
Bond
,
2.45%,
6/01/30
.........................
United
States
6,200,000
5,454,053
Senior
Bond
,
3.75%,
9/01/46
.........................
United
States
1,600,000
1,203,666
Duke
Energy
Ohio,
Inc.
,
Senior
Bond
,
5.25%,
4/01/33
........
United
States
1,000,000
1,015,401
Exelon
Corp.
,
Senior
Bond
,
4.05%,
4/15/30
.........................
United
States
13,400,000
12,866,597
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electric
Utilities
(continued)
Exelon
Corp.,
(continued)
Senior
Bond
,
4.45%,
4/15/46
.........................
United
States
1,400,000
$
1,194,560
NextEra
Energy
Capital
Holdings,
Inc.
,
Senior
Note
,
6.051%,
3/01/25
.........................................
United
States
3,300,000
3,311,067
f
NRG
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
5.75%,
7/15/29
.
United
States
6,000,000
5,938,098
Southern
Co.
(The)
,
Senior
Bond
,
4.4%,
7/01/46
..........................
United
States
5,000,000
4,247,240
Senior
Note
,
5.5%,
3/15/29
..........................
United
States
6,100,000
6,276,881
Virginia
Electric
and
Power
Co.
,
Senior
Bond
,
6.35%,
11/30/37
.
United
States
820,000
891,802
f
Vistra
Operations
Co.
LLC
,
Senior
Note
,
144A,
4.375%,
5/01/29
...................
United
States
11,000,000
10,479,670
Senior
Secured
Bond
,
144A,
4.3%,
7/15/29
..............
United
States
6,000,000
5,758,796
Xcel
Energy,
Inc.
,
Senior
Bond
,
5.45%,
8/15/33
.............
United
States
4,500,000
4,541,372
64,570,403
Electrical
Equipment
0.3%
Eaton
Corp.
,
Senior
Bond
,
4.15%,
3/15/33
.................
United
States
1,900,000
1,818,226
f
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125%,
11/15/28
........................................
United
States
7,000,000
6,667,823
8,486,049
Electronic
Equipment,
Instruments
&
Components
0.6%
CDW
LLC
/
CDW
Finance
Corp.
,
Senior
Note
,
3.25%,
2/15/29
..
United
States
5,000,000
4,621,540
Flex
Ltd.
,
Senior
Bond
,
4.875%,
5/12/30
..................
United
States
7,100,000
6,951,784
f
Zebra
Technologies
Corp.
,
Senior
Note
,
144A,
6.5%,
6/01/32
..
United
States
3,400,000
3,481,195
15,054,519
Energy
Equipment
&
Services
0.4%
f
Kodiak
Gas
Services
LLC
,
Senior
Note
,
144A,
7.25%,
2/15/29
..
United
States
5,000,000
5,143,615
f
Transocean,
Inc.
,
Senior
Secured
Note
,
144A,
8.75%,
2/15/30
..
United
States
4,250,000
4,406,332
9,549,947
Entertainment
0.2%
f
Banijay
Entertainment
SAS
,
Senior
Secured
Note
,
144A,
7%,
5/01/29
................
France
2,800,000
EUR
3,196,687
Senior
Secured
Note
,
144A,
8.125%,
5/01/29
............
France
308,809
320,499
Warnermedia
Holdings,
Inc.
,
Senior
Note
,
4.054%,
3/15/29
....
United
States
2,100,000
1,962,548
5,479,734
Financial
Services
1.1%
a
,h
,j
Cia
Securitizadora
de
Creditos
Financeiros
Vert-Fintech
,
12
,
Senior
Secured
Note
,
FRN
,
14.9%,
(
BZDIOVRA
+
5.75
%
),
2/14/24
.........................................
Brazil
11,513,000
BRL
—
Corebridge
Financial,
Inc.
,
Senior
Note
,
6.05%,
9/15/33
.......
United
States
4,900,000
5,088,244
f
GGAM
Finance
Ltd.
,
Senior
Note
,
144A,
8%,
6/15/28
......................
Ireland
4,000,000
4,219,872
Senior
Note
,
144A,
5.875%,
3/15/30
...................
Ireland
2,000,000
1,977,500
f
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6%,
8/15/26
United
States
7,000,000
6,982,428
f
Nationstar
Mortgage
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.75%,
11/15/31
........................................
United
States
5,800,000
5,553,073
f
PRA
Group,
Inc.
,
Senior
Note
,
144A,
5%,
10/01/29
..........
United
States
4,000,000
3,623,149
27,444,266
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Food
Products
1.1%
f
Bimbo
Bakeries
USA,
Inc.
,
Senior
Bond
,
144A,
4%,
5/17/51
...
Mexico
2,000,000
$
1,533,595
f
,g
Chobani
Holdco
II
LLC
,
Senior
Note
,
144A,
PIK,
8.75%,
10/01/29
United
States
800,000
825,206
f
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6%,
6/15/30
.....
United
States
9,000,000
8,945,588
General
Mills,
Inc.
,
Senior
Note
,
5.241%,
11/18/25
...........
United
States
1,550,000
1,550,188
JBS
USA
Holding
Lux
SARL
/
JBS
USA
Food
Co.
/
JBS
Lux
Co.
SARL
,
Senior
Note
,
2.5%,
1/15/27
..........................
United
States
4,800,000
4,554,918
Senior
Note
,
3%,
2/02/29
...........................
United
States
1,500,000
1,379,180
Senior
Note
,
3.625%,
1/15/32
........................
United
States
3,500,000
3,091,715
Mondelez
International,
Inc.
,
Senior
Bond
,
4.75%,
8/28/34
.....
United
States
4,400,000
4,276,512
f
Post
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.25%,
2/15/32
United
States
3,100,000
3,138,310
29,295,212
Gas
Utilities
0.1%
Piedmont
Natural
Gas
Co.,
Inc.
,
Senior
Bond
,
3.35%,
6/01/50
..
United
States
2,800,000
1,948,447
Ground
Transportation
0.8%
f
Ashtead
Capital,
Inc.
,
Senior
Bond
,
144A,
5.8%,
4/15/34
......
United
Kingdom
900,000
912,400
f
Avis
Budget
Car
Rental
LLC
/
Avis
Budget
Finance,
Inc.
,
Senior
Note
,
144A,
8.25%,
1/15/30
..........................
United
States
6,600,000
6,747,748
CSX
Corp.
,
Senior
Bond
,
4.1%,
3/15/44
..................
United
States
1,600,000
1,355,769
f
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4%,
7/31/29
.....................
United
States
4,000,000
3,686,212
f
Watco
Cos.
LLC
/
Watco
Finance
Corp.
,
Senior
Note
,
144A,
7.125%,
8/01/32
...................................
United
States
2,800,000
2,889,152
f
XPO,
Inc.
,
Senior
Note
,
144A,
7.125%,
2/01/32
.............
United
States
5,600,000
5,822,712
21,413,993
Health
Care
Equipment
&
Supplies
0.9%
f
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375%,
10/01/28
........................................
United
States
7,000,000
7,352,940
Baxter
International,
Inc.
,
Senior
Note
,
2.272%,
12/01/28
......
United
States
4,700,000
4,233,371
GE
HealthCare
Technologies,
Inc.
,
Senior
Note
,
5.6%,
11/15/25
United
States
4,700,000
4,739,586
f
Neogen
Food
Safety
Corp.
,
Senior
Note
,
144A,
8.625%,
7/20/30
United
States
5,600,000
6,065,931
22,391,828
Health
Care
Providers
&
Services
2.7%
Centene
Corp.
,
Senior
Note
,
4.25%,
12/15/27
........................
United
States
3,000,000
2,904,507
Senior
Note
,
2.45%,
7/15/28
.........................
United
States
2,300,000
2,071,978
Senior
Note
,
4.625%,
12/15/29
.......................
United
States
2,300,000
2,199,600
Senior
Note
,
3.375%,
2/15/30
........................
United
States
1,400,000
1,256,076
Senior
Note
,
2.625%,
8/01/31
........................
United
States
5,300,000
4,413,537
f
CHS/Community
Health
Systems,
Inc.
,
Senior
Secured
Note
,
144A,
5.625%,
3/15/27
............
United
States
3,700,000
3,611,688
Senior
Secured
Note
,
144A,
6%,
1/15/29
................
United
States
3,300,000
3,111,195
Senior
Secured
Note
,
144A,
10.875%,
1/15/32
...........
United
States
1,000,000
1,072,964
f
Concentra
Escrow
Issuer
Corp.
,
Senior
Note
,
144A,
6.875%,
7/15/32
.........................................
United
States
1,500,000
1,541,140
CVS
Health
Corp.
,
Senior
Bond
,
1.75%,
8/21/30
.........................
United
States
4,000,000
3,298,557
Senior
Bond
,
5.3%,
6/01/33
..........................
United
States
3,000,000
2,942,846
Senior
Bond
,
2.7%,
8/21/40
..........................
United
States
6,300,000
4,197,883
f
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625%,
6/01/30
...........
United
States
9,000,000
8,291,193
Elevance
Health,
Inc.
,
Senior
Bond
,
3.7%,
9/15/49
..........
United
States
1,400,000
1,038,387
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
Providers
&
Services
(continued)
HCA,
Inc.
,
Senior
Bond
,
3.5%,
9/01/30
...................
United
States
11,900,000
$
10,918,431
Icon
Investments
Six
DAC
,
Senior
Secured
Bond
,
6%,
5/08/34
.
United
States
460,000
471,423
f
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5%,
9/01/29
......
Italy
5,000,000
4,723,188
f
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75%,
11/01/28
........................................
United
States
4,900,000
2,259,562
Quest
Diagnostics,
Inc.
,
Senior
Bond
,
2.8%,
6/30/31
.........
United
States
2,100,000
1,844,212
Tenet
Healthcare
Corp.
,
Senior
Secured
Note
,
6.125%,
6/15/30
.
United
States
8,000,000
8,047,456
70,215,823
Health
Care
REITs
0.2%
Alexandria
Real
Estate
Equities,
Inc.
,
Senior
Bond
,
5.25%,
5/15/36
.........................................
United
States
2,200,000
2,168,112
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
3.5%,
3/15/31
...............................
United
States
4,000,000
2,836,977
5,005,089
Health
Care
Technology
0.3%
f
IQVIA,
Inc.
,
Senior
Note
,
144A,
6.5%,
5/15/30
..............
United
States
7,200,000
7,402,637
Hotel
&
Resort
REITs
0.4%
f
Pebblebrook
Hotel
LP
/
PEB
Finance
Corp.
,
Senior
Note
,
144A,
6.375%,
10/15/29
..................................
United
States
2,000,000
1,999,005
f
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note
,
144A,
6.5%,
4/01/32
...............................
United
States
7,300,000
7,391,812
9,390,817
Hotels,
Restaurants
&
Leisure
2.1%
f
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4%,
10/15/30
.....................................
Canada
6,000,000
5,424,778
f
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875%,
4/30/29
..............................
Czech
Republic
6,000,000
6,219,030
f
Caesars
Entertainment,
Inc.
,
Senior
Note
,
144A,
4.625%,
10/15/29
..................
United
States
8,500,000
7,974,410
Senior
Note
,
144A,
6%,
10/15/32
.....................
United
States
600,000
585,650
f
Great
Canadian
Gaming
Corp.
,
Senior
Secured
Note
,
144A,
8.75%,
11/15/29
...................................
Canada
2,300,000
2,300,000
Marriott
International,
Inc.
,
Senior
Bond
,
5.3%,
5/15/34
.......
United
States
2,200,000
2,199,997
f
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875%,
9/15/29
.........................................
United
States
3,600,000
3,287,052
f
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note
,
144A,
5.625%,
9/30/31
...................
United
States
1,500,000
1,494,810
Senior
Note
,
144A,
6%,
2/01/33
......................
United
States
5,500,000
5,537,209
f
Six
Flags
Entertainment
Corp.
/
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
6.625%,
5/01/32
.............
United
States
5,200,000
5,302,180
f
Viking
Cruises
Ltd.
,
Senior
Note
,
144A,
5.875%,
9/15/27
...................
United
States
2,800,000
2,784,073
Senior
Note
,
144A,
7%,
2/15/29
......................
United
States
2,400,000
2,420,568
f
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Bond
,
144A,
5.125%,
10/01/29
..................
United
States
6,300,000
6,121,275
Senior
Note
,
144A,
7.125%,
2/15/31
...................
United
States
1,700,000
1,789,649
53,440,681
Household
Durables
0.6%
f
LGI
Homes,
Inc.
,
Senior
Note
,
144A,
8.75%,
12/15/28
........
United
States
7,000,000
7,378,819
Toll
Brothers
Finance
Corp.
,
Senior
Bond
,
3.8%,
11/01/29
.....
United
States
4,900,000
4,655,925
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Household
Durables
(continued)
f
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
Senior
Note
,
144A,
4.875%,
9/15/28
..............................
United
States
2,300,000
$
2,200,003
14,234,747
Household
Products
0.3%
f
Central
Garden
&
Pet
Co.
,
Senior
Bond
,
144A,
4.125%,
4/30/31
United
States
5,000,000
4,492,088
f
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375%,
3/31/29
..
United
States
2,300,000
2,153,488
6,645,576
Independent
Power
and
Renewable
Electricity
Producers
1.1%
f
AES
Andes
SA
,
Senior
Note
,
144A,
6.3%,
3/15/29
...........
Chile
4,600,000
4,701,536
f
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
4.125%,
6/15/28
...................................
Spain
5,000,000
4,771,103
f
Clearway
Energy
Operating
LLC
,
Senior
Note
,
144A,
3.75%,
2/15/31
.........................................
United
States
5,300,000
4,736,734
Constellation
Energy
Generation
LLC
,
Senior
Bond
,
6.125%,
1/15/34
.........................................
United
States
2,000,000
2,135,466
f
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25%,
7/01/29
...................................
United
States
4,300,000
4,026,921
f
Talen
Energy
Supply
LLC
,
Senior
Secured
Note
,
144A,
8.625%,
6/01/30
.........................................
United
States
7,200,000
7,772,400
28,144,160
Insurance
2.2%
f
Acrisure
LLC
/
Acrisure
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
7.5%,
11/06/30
....................................
United
States
4,500,000
4,579,276
f
AIA
Group
Ltd.
,
Senior
Bond
,
144A,
4.95%,
4/04/33
.........
Hong
Kong
3,100,000
3,105,302
f
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Secured
Note
,
144A,
6.75%,
4/15/28
.............
United
States
6,000,000
6,032,700
Senior
Secured
Note
,
144A,
7%,
1/15/31
................
United
States
1,900,000
1,914,370
Arch
Capital
Group
Ltd.
,
Senior
Bond
,
3.635%,
6/30/50
.......
United
States
10,000,000
7,396,273
f
Corebridge
Global
Funding
,
Secured
Note
,
144A,
5.9%,
9/19/28
United
States
2,100,000
2,169,899
F&G
Annuities
&
Life,
Inc.
,
Senior
Note
,
6.5%,
6/04/29
.......
United
States
2,200,000
2,230,681
f
Metropolitan
Life
Global
Funding
I
,
Secured
Note
,
144A,
5.05%,
1/06/28
...................
United
States
9,600,000
9,691,596
Secured
Note
,
144A,
4.3%,
8/25/29
....................
United
States
3,000,000
2,934,296
f
Northwestern
Mutual
Global
Funding
,
Secured
Note
,
144A,
4.9%,
6/12/28
.........................................
United
States
5,600,000
5,637,674
f
RGA
Global
Funding
,
Secured
Note
,
144A,
5.5%,
1/11/31
.....
United
States
6,400,000
6,531,823
f
Sammons
Financial
Group,
Inc.
,
Senior
Bond
,
144A,
6.875%,
4/15/34
.........................................
United
States
3,700,000
3,887,740
56,111,630
Interactive
Media
&
Services
0.3%
f
,k
Tencent
Holdings
Ltd.
,
Senior
Note
,
144A,
2.39%,
6/03/30
.....
China
9,100,000
8,023,410
IT
Services
0.9%
f
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875%,
9/15/27
.........................................
United
States
9,200,000
8,782,216
f
Fortress
Intermediate
3,
Inc.
,
Senior
Secured
Note
,
144A,
7.5%,
6/01/31
.........................................
United
States
3,100,000
3,226,579
f
Gartner,
Inc.
,
Senior
Note
,
144A,
4.5%,
7/01/28
.....................
United
States
7,000,000
6,836,560
Senior
Note
,
144A,
3.625%,
6/15/29
...................
United
States
3,800,000
3,549,977
22,395,332
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Life
Sciences
Tools
&
Services
0.1%
f
Fortrea
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
7.5%,
7/01/30
United
States
2,800,000
$
2,756,900
Machinery
0.6%
f
Esab
Corp.
,
Senior
Note
,
144A,
6.25%,
4/15/29
.............
United
States
3,400,000
3,464,119
Hillenbrand,
Inc.
,
Senior
Note
,
6.25%,
2/15/29
..............
United
States
3,000,000
3,015,069
f
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9.25%,
10/01/31
United
States
2,700,000
2,744,955
Parker-Hannifin
Corp.
,
Senior
Note
,
4.25%,
9/15/27
.........
United
States
3,700,000
3,668,176
f
Terex
Corp.
,
Senior
Note
,
144A,
6.25%,
10/15/32
...........
United
States
2,900,000
2,888,851
15,781,170
Media
1.9%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
Corp.
,
Senior
Secured
Bond
,
2.8%,
4/01/31
...............................
United
States
15,900,000
13,380,595
f
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.125%,
8/15/27
............
United
States
2,400,000
2,329,131
Senior
Secured
Note
,
144A,
7.875%,
4/01/30
............
United
States
300,000
306,135
Comcast
Corp.
,
Senior
Bond
,
4.8%,
5/15/33
...............
United
States
5,200,000
5,139,207
f
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875%,
8/15/27
..................
United
States
6,000,000
5,783,651
Fox
Corp.
,
Senior
Bond
,
3.5%,
4/08/30
..........................
United
States
1,400,000
1,302,932
Senior
Bond
,
6.5%,
10/13/33
.........................
United
States
11,500,000
12,249,737
f
McGraw-Hill
Education,
Inc.
,
Senior
Secured
Note
,
144A,
7.375%,
9/01/31
...................................
United
States
4,400,000
4,510,409
f
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Bond
,
144A,
4.625%,
3/15/30
...................
United
States
2,500,000
2,327,443
Senior
Secured
Note
,
144A,
7.375%,
2/15/31
............
United
States
2,200,000
2,325,301
49,654,541
Metals
&
Mining
1.2%
f
Cleveland-Cliffs,
Inc.
,
Senior
Note
,
144A,
7%,
3/15/32
......................
United
States
3,200,000
3,207,617
Senior
Note
,
144A,
7.375%,
5/01/33
...................
United
States
1,200,000
1,209,972
f
Constellium
SE
,
Senior
Note
,
144A,
3.75%,
4/15/29
....................
United
States
6,200,000
5,615,993
Senior
Note
,
144A,
6.375%,
8/15/32
...................
United
States
900,000
886,816
f
Indonesia
Asahan
Aluminium
PT
/
Mineral
Industri
Indonesia
Persero
PT
,
Senior
Bond
,
144A,
5.45%,
5/15/30
...........
Indonesia
6,900,000
6,925,889
f
Novelis
Corp.
,
Senior
Bond
,
144A,
4.75%,
1/30/30
....................
United
States
3,200,000
3,000,440
Senior
Note
,
144A,
3.25%,
11/15/26
...................
United
States
2,700,000
2,599,678
f
POSCO
,
Senior
Note
,
144A,
5.625%,
1/17/26
..............
South
Korea
7,950,000
8,003,972
31,450,377
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.0%
†
f
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75%,
6/15/29
...............
United
States
1,000,000
953,670
Multi-Utilities
0.6%
Dominion
Energy,
Inc.
,
A
,
Senior
Note
,
4.35%,
8/15/32
.......................
United
States
3,200,000
3,043,797
C
,
Senior
Note
,
3.375%,
4/01/30
......................
United
States
7,800,000
7,227,018
DTE
Energy
Co.
,
Senior
Note
,
4.875%,
6/01/28
.............
United
States
5,700,000
5,711,560
15,982,375
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
5.6%
f
Aker
BP
ASA
,
Senior
Bond
,
144A,
3.1%,
7/15/31
............
Norway
8,700,000
$
7,618,840
f
Antero
Resources
Corp.
,
Senior
Note
,
144A,
7.625%,
2/01/29
..
United
States
4,969,000
5,099,317
f
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Secured
Note
,
144A,
9.25%,
7/15/29
..............
United
States
4,400,000
4,559,064
Canadian
Natural
Resources
Ltd.
,
Senior
Bond
,
2.95%,
7/15/30
Canada
8,200,000
7,337,951
Cheniere
Energy,
Inc.
,
Senior
Note
,
5.65%,
4/15/34
..........
United
States
1,600,000
1,611,421
f
Civitas
Resources,
Inc.
,
Senior
Note
,
144A,
8.375%,
7/01/28
...................
United
States
3,300,000
3,414,576
Senior
Note
,
144A,
8.625%,
11/01/30
..................
United
States
1,000,000
1,051,412
Senior
Note
,
144A,
8.75%,
7/01/31
....................
United
States
3,300,000
3,460,413
f
Coronado
Finance
Pty.
Ltd.
,
Senior
Secured
Note
,
144A,
9.25%,
10/01/29
........................................
Australia
1,700,000
1,740,367
f
DT
Midstream,
Inc.
,
Senior
Bond
,
144A,
4.375%,
6/15/31
.....
United
States
6,600,000
6,076,503
Energy
Transfer
LP
,
Senior
Bond
,
3.75%,
5/15/30
.........................
United
States
7,300,000
6,811,738
f
Senior
Note
,
144A,
6%,
2/01/29
......................
United
States
4,000,000
4,065,120
EnLink
Midstream
LLC
,
Senior
Bond
,
5.375%,
6/01/29
........................
United
States
10,900,000
10,995,593
f
Senior
Note
,
144A,
5.625%,
1/15/28
...................
United
States
1,700,000
1,721,947
f
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5%,
6/01/27
United
States
800,000
818,563
f
Galaxy
Pipeline
Assets
Bidco
Ltd.
,
Senior
Secured
Bond
,
144A,
2.16%,
3/31/34
...................................
United
Arab
Emirates
2,322,870
2,017,245
f
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5%,
10/15/26
......
United
Kingdom
2,500,000
2,492,108
f
Hess
Midstream
Operations
LP
,
Senior
Note
,
144A,
6.5%,
6/01/29
United
States
2,700,000
2,746,842
f
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond
,
144A,
6%,
2/01/31
......................
United
States
4,900,000
4,651,112
Senior
Bond
,
144A,
6.25%,
4/15/32
....................
United
States
1,700,000
1,596,545
f
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875%,
6/15/30
......
United
States
5,000,000
4,965,783
f
Matador
Resources
Co.
,
Senior
Note
,
144A,
6.5%,
4/15/32
.....................
United
States
5,400,000
5,351,999
Senior
Note
,
144A,
6.25%,
4/15/33
....................
United
States
2,100,000
2,060,371
MPLX
LP
,
Senior
Note
,
2.65%,
8/15/30
...................
United
States
15,000,000
13,205,285
Sabine
Pass
Liquefaction
LLC
,
Senior
Secured
Note
,
4.5%,
5/15/30
.........................................
United
States
10,000,000
9,730,254
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note
,
4.5%,
5/15/29
United
States
8,000,000
7,612,396
f
Var
Energi
ASA
,
Senior
Bond
,
144A,
8%,
11/15/32
..........
Norway
9,000,000
10,244,483
f
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond
,
144A,
4.125%,
8/15/31
...................................
United
States
2,600,000
2,371,398
f
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note
,
144A,
8.375%,
6/01/31
.........................................
United
States
5,500,000
5,716,947
f
Viper
Energy,
Inc.
,
Senior
Note
,
144A,
7.375%,
11/01/31
......
United
States
3,600,000
3,743,507
144,889,100
Paper
&
Forest
Products
0.4%
Suzano
Austria
GmbH
,
Senior
Bond
,
3.75%,
1/15/31
.........................
Brazil
7,100,000
6,336,658
DM3N
,
Senior
Bond
,
3.125%,
1/15/32
..................
Brazil
4,400,000
3,692,830
10,029,488
Passenger
Airlines
0.5%
f
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.75%,
4/20/29
...................
United
States
8,000,000
7,928,459
f
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.5%,
10/20/25
...............................
United
States
3,467,000
3,450,847
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Passenger
Airlines
(continued)
f
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.375%,
4/15/26
United
States
2,111,746
$
2,076,596
13,455,902
Personal
Care
Products
0.9%
f
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7%,
3/15/30
.......
United
States
4,000,000
4,167,096
f
Coty,
Inc.
/
HFC
Prestige
Products,
Inc.
/
HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
4.75%,
1/15/29
.........................................
United
States
8,000,000
7,725,015
Estee
Lauder
Cos.,
Inc.
(The)
,
Senior
Bond
,
4.65%,
5/15/33
...
United
States
8,800,000
8,522,543
f
Prestige
Brands,
Inc.
,
Senior
Bond
,
144A,
3.75%,
4/01/31
.....
United
States
3,700,000
3,301,034
23,715,688
Pharmaceuticals
1.5%
f
Bayer
US
Finance
II
LLC
,
Senior
Bond
,
144A,
4.375%,
12/15/28
Germany
11,700,000
11,313,857
f
Endo
Finance
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
8.5%,
4/15/31
.........................................
United
States
3,200,000
3,425,511
f
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Secured
Note
,
144A,
4.125%,
4/30/28
..................
United
States
7,000,000
6,638,742
Pfizer
Investment
Enterprises
Pte.
Ltd.
,
Senior
Bond
,
4.75%,
5/19/33
.........................................
United
States
3,500,000
3,449,406
Royalty
Pharma
plc
,
Senior
Bond
,
3.3%,
9/02/40
............
United
States
5,300,000
3,925,472
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
5.125%,
5/09/29
...................................
Israel
9,100,000
8,844,636
37,597,624
Specialized
REITs
0.3%
f
Iron
Mountain,
Inc.
,
Senior
Note
,
144A,
7%,
2/15/29
.........
United
States
8,200,000
8,439,276
Specialty
Retail
0.1%
AutoNation,
Inc.
,
Senior
Bond
,
4.75%,
6/01/30
.............
United
States
1,900,000
1,851,781
Technology
Hardware,
Storage
&
Peripherals
0.6%
Dell
International
LLC
/
EMC
Corp.
,
Senior
Bond
,
5.4%,
4/15/34
United
States
7,800,000
7,895,949
Hewlett
Packard
Enterprise
Co.
,
Senior
Note
,
4.85%,
10/15/31
.
United
States
4,500,000
4,412,275
Teledyne
FLIR
LLC
,
Senior
Note
,
2.5%,
8/01/30
............
United
States
2,100,000
1,845,557
14,153,781
Textiles,
Apparel
&
Luxury
Goods
0.5%
f
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9%,
2/15/31
..........
United
States
3,400,000
3,645,895
Tapestry,
Inc.
,
Senior
Bond
,
7.85%,
11/27/33
...............
United
States
9,300,000
9,506,086
13,151,981
Tobacco
0.8%
Altria
Group,
Inc.
,
Senior
Bond
,
3.4%,
5/06/30
..............
United
States
12,400,000
11,452,904
f
Imperial
Brands
Finance
plc
,
Senior
Bond
,
144A,
4.25%,
7/21/25
....................
United
Kingdom
289,000
287,181
Senior
Bond
,
144A,
3.875%,
7/26/29
...................
United
Kingdom
2,200,000
2,085,031
Philip
Morris
International,
Inc.
,
Senior
Bond
,
5.375%,
2/15/33
..
United
States
7,200,000
7,300,731
21,125,847
Trading
Companies
&
Distributors
1.3%
f
EquipmentShare.com,
Inc.
,
Secured
Note
,
144A,
8.625%,
5/15/32
United
States
7,100,000
7,333,327
f
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875%,
12/15/28
........................................
United
States
8,500,000
7,856,502
f
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
6.625%,
6/15/29
......
United
States
4,600,000
4,710,698
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Trading
Companies
&
Distributors
(continued)
f
United
Rentals
North
America,
Inc.
,
Senior
Bond
,
144A,
6.125%,
3/15/34
.........................................
United
States
4,900,000
$
4,947,016
f
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
6.375%,
3/15/29
...................
United
States
7,000,000
7,151,459
Senior
Note
,
144A,
6.625%,
3/15/32
...................
United
States
1,000,000
1,025,995
33,024,997
Transportation
Infrastructure
0.0%
†
f
Rutas
2
and
7
Finance
Ltd.
,
Senior
Secured
Bond
,
144A,
Zero
Cpn.,
9/30/36
.....................................
United
States
960,000
685,304
Wireless
Telecommunication
Services
1.0%
f
Connect
Finco
SARL
/
Connect
US
Finco
LLC
,
Senior
Secured
Note
,
144A,
9%,
9/15/29
............................
United
Kingdom
4,500,000
4,279,942
a
Digicel
Group
Holdings
Ltd.
,
Zero
Cpn.,
11/17/33
...............................
Bermuda
679,815
19,040
Zero
Cpn.,
11/17/33
...............................
Bermuda
5,534
3,646
Zero
Cpn.,
11/17/33
...............................
Bermuda
79,853
3,111
T-Mobile
USA,
Inc.
,
Senior
Bond
,
3.3%,
2/15/51
..........................
United
States
4,800,000
3,317,599
Senior
Note
,
3.875%,
4/15/30
........................
United
States
13,400,000
12,730,537
f
Zegona
Finance
plc
,
Senior
Secured
Note
,
144A,
8.625%,
7/15/29
.........................................
United
Kingdom
5,600,000
5,929,000
26,282,875
Total
Corporate
Bonds
(Cost
$
1,539,045,607
)
.................................
1,482,677,599
l
Senior
Floating
Rate
Interests
2.6%
Air
Freight
&
Logistics
0.1%
i,m
Rand
Parent
LLC,
First
Lien,
CME
Term
Loan,
B
,
8.354
%
,
(
3-month
SOFR
+
3.75
%
),
3/18/30
.....................
United
States
1,256,921
1,263,130
m
Automobile
Components
0.1%
DexKo
Global,
Inc.,
First
Lien,
Closing
Date
Dollar
CME
Term
Loan
,
8.615
%
,
(
3-month
SOFR
+
3.75
%
),
10/04/28
........
United
States
351,538
337,514
First
Brands
Group
LLC,
First
Lien,
2021
CME
Term
Loan
,
9.847
%
,
(
3-month
SOFR
+
5
%
),
3/30/27
................
United
States
727,810
709,731
First
Brands
Group
LLC,
Second
Lien,
2021
CME
Term
Loan
,
13.347
%
,
(
3-month
SOFR
+
8.5
%
),
3/30/28
..............
United
States
1,029,361
963,739
Highline
Aftermarket
Acquisition
LLC,
First
Lien,
2024-1
Refinancing
CME
Term
Loan
,
8.685
%
,
(
1-month
SOFR
+
4
%
),
11/09/27
........................................
United
States
436,779
438,963
TI
Group
Automotive
Systems
LLC,
First
Lien,
2021
Refinancing
CME
Term
Loan,
B
,
8.05
%
,
(
1-month
SOFR
+
3.25
%
),
12/16/26
United
States
294,510
295,247
2,745,194
a
a
a
a
a
a
Automobiles
0.0%
†
m
American
Trailer
World
Corp.,
First
Lien,
CME
Term
Loan,
B
,
8.535
%
,
(
1-month
SOFR
+
3.75
%
),
3/03/28
..............
United
States
752,173
674,902
Beverages
0.0%
†
m
Triton
Water
Holdings,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.115
%
,
(
3-month
SOFR
+
3.25
%
),
3/31/28
..............
United
States
534,986
536,019
Broadline
Retail
0.0%
†
m
Peer
Holding
III
BV,
First
Lien,
CME
Term
Loan,
B5
,
7.604
%
,
(
3-month
SOFR
+
3
%
),
7/01/31
.......................
Netherlands
320,239
321,141
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
m
Building
Products
0.1%
AZZ,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
7.185
%
,
(
1-month
SOFR
+
2.5
%
),
5/14/29
.............................
United
States
617,201
$
620,062
Cornerstone
Building
Brands,
Inc.,
First
Lien,
CME
Term
Loan,
C
,
9.304
%
,
(
1-month
SOFR
+
4.5
%
),
5/15/31
...............
United
States
1,150,685
1,145,858
EMRLD
Borrower
LP,
First
Lien,
Second
Amendment
Incremental
CME
Term
Loan
,
7.557
%
,
(
3-month
SOFR
+
2.5
%
),
8/04/31
..
United
States
221,893
221,992
Quikrete
Holdings,
Inc.,
First
Lien,
CME
Term
Loan,
B2
,
6.935
%
,
(
1-month
SOFR
+
2.25
%
),
3/19/29
.....................
United
States
406,241
406,728
Summit
Materials
LLC,
First
Lien,
CME
Term
Loan,
B2
,
6.554
%
,
(
1-month
SOFR
+
1.75
%
),
1/12/29
.....................
United
States
185,101
185,652
2,580,292
a
a
a
a
a
a
m
Capital
Markets
0.1%
AAL
Delaware
Holdco,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.185
%
,
(
1-month
SOFR
+
3.5
%
),
7/30/31
...............
United
States
162,338
163,454
AI
Aqua
Merger
Sub,
Inc.,
First
Lien,
Initial
CME
Term
Loan,
B
,
8.357
%
,
(
1-month
SOFR
+
3.5
%
),
7/31/28
...............
United
States
575,380
577,057
Citadel
Securities
LP,
First
Lien,
CME
Term
Loan
,
6.718
%
,
(
1-month
SOFR
+
2
%
),
7/29/30
.......................
United
States
705,543
706,316
Edelman
Financial
Engines
Center
LLC
(The),
First
Lien,
2024
Refinancing
CME
Term
Loan
,
7.935
%
,
(
1-month
SOFR
+
3.25
%
),
4/07/28
...................................
United
States
247,066
247,355
First
Eagle
Holdings,
Inc.,
First
Lien,
CME
Term
Loan,
B2
,
8.33
%
,
(
3-month
SOFR
+
3
%
),
3/05/29
.......................
United
States
746,250
743,578
Jane
Street
Group
LLC,
First
Lien,
2021
CME
Term
Loan
,
7.46
%
,
(
1-month
SOFR
+
2.5
%
),
1/26/28
......................
United
States
405,174
405,209
2,842,969
a
a
a
a
a
a
m
Chemicals
0.2%
A-AP
Buyer,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
7.854
%
,
(
3-month
SOFR
+
3.25
%
),
9/09/31
.....................
United
States
309,983
311,533
i
Albaugh
LLC,
First
Lien,
Initial
CME
Term
Loan
,
8.446
%
,
(
1-month
SOFR
+
3.75
%
),
4/06/29
.....................
United
States
379,028
377,372
Hexion
Holdings
Corp.,
First
Lien,
Initial
CME
Term
Loan
,
9.771
%
,
(
3-month
SOFR
+
4.5
%
),
3/15/29
......................
United
States
725,533
726,374
Hexion
Holdings
Corp.,
Second
Lien,
Initial
CME
Term
Loan
,
12.223
%
,
(
1-month
SOFR
+
7.438
%
),
3/15/30
............
United
States
682,252
623,579
INEOS
US
Finance
LLC,
First
Lien,
2030
Dollar
Term
Loan
,
8.497
%
,
(
1-month
SOFR
+
3.25
%
),
2/18/30
..............
Luxembourg
805,760
807,525
INEOS
US
Petrochem
LLC,
First
Lien,
New
CME
Term
Loan,
B1
,
9.035
%
,
(
1-month
SOFR
+
4.25
%
),
4/02/29
..............
United
States
402,043
400,788
LSF11
A5
Holdco
LLC,
First
Lien,
2024
Refinancing
CME
Term
Loan
,
8.3
%
,
(
1-month
SOFR
+
3.5
%
),
10/16/28
...........
United
States
629,218
632,430
i
Lummus
Technology
Holdings
V
LLC,
First
Lien,
2024
CME
Term
Loan,
B
,
8.3
%
,
(
1-month
SOFR
+
3.5
%
),
12/31/29
.........
United
States
186,782
187,234
Nouryon
Finance
BV,
First
Lien,
2024
Dollar
CME
Term
Loan,
B2
,
7.784
%
,
(
6-month
SOFR
+
3.5
%
),
4/03/28
...............
Netherlands
497,602
500,247
PMHC
II,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
9.058
%
,
(
3-month
SOFR
+
4.25
%
),
4/23/29
.....................
United
States
1,049,287
1,037,293
SCIH
Salt
Holdings,
Inc.,
First
Lien,
Incremental
CME
Term
Loan,
B1
,
8.085
%
,
(
3-month
SOFR
+
3.5
%
),
3/16/27
............
United
States
404,131
405,624
6,009,999
a
a
a
a
a
a
m
Commercial
Services
&
Supplies
0.1%
Allied
Universal
Holdco
LLC,
First
Lien,
Initial
US
Dollar
CME
Term
Loan
,
8.535
%
,
(
1-month
SOFR
+
3.75
%
),
5/12/28
.....
United
States
637,569
637,027
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
m
Commercial
Services
&
Supplies
(continued)
CCI
Buyer,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.604
%
,
(
3-month
SOFR
+
4
%
),
12/17/27
......................
United
States
832,106
$
833,520
Pitney
Bowes,
Inc.,
First
Lien,
Refinancing
CME
Term
Loan,
B
,
8.8
%
,
(
1-month
SOFR
+
4
%
),
3/17/28
..................
United
States
1,172,272
1,177,770
Spin
Holdco,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
9.256
%
,
(
3-month
SOFR
+
4
%
),
3/06/28
.......................
United
States
1,044,273
912,147
3,560,464
a
a
a
a
a
a
Communications
Equipment
0.0%
†
m
CommScope,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.05
%
,
(
1-month
SOFR
+
3.25
%
),
4/06/26
.....................
United
States
439,889
431,201
Construction
&
Engineering
0.0%
†
m
Chromalloy
Corp.,
First
Lien,
CME
Term
Loan
,
8.354
%
,
(
3-month
SOFR
+
3.75
%
),
3/27/31
............................
United
States
374,063
367,797
i,n
Construction
Partners,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
TBD,
10/01/31
........................................
United
States
63,993
63,833
m
Radar
Bidco
SARL,
First
Lien,
USD
CME
Term
Loan,
B
,
8.84
%
,
(
3-month
SOFR
+
4.25
%
),
3/27/31
.....................
Luxembourg
293,125
294,409
726,039
a
a
a
a
a
a
m
Consumer
Finance
0.1%
i
Neon
Maple
US
Debt
Mergersub,
Inc.,
First
Lien,
CME
Term
Loan
,
8.153
%
,
(
12-month
SOFR
+
3
%
),
7/18/31
...........
United
States
755,961
754,544
Nuvei
Technologies
Corp.,
First
Lien,
Initial
CME
Term
Loan
,
7.785
%
,
(
1-month
SOFR
+
3
%
),
12/19/30
................
Canada
269,296
269,044
1,023,588
a
a
a
a
a
a
m
Containers
&
Packaging
0.1%
Berlin
Packaging
LLC,
First
Lien,
2024
Replacement
CME
Term
Loan
,
8.415
%
,
(
3-month
SOFR
+
3.75
%
),
6/09/31
.........
United
States
748,125
750,530
Charter
Next
Generation,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
7.685
%
,
(
1-month
SOFR
+
3
%
),
12/01/27
................
United
States
402,289
402,815
Klockner
Pentaplast
of
America,
Inc.,
First
Lien,
USD
CME
Term
Loan,
B
,
9.723
%
,
(
6-month
SOFR
+
4.725
%
),
2/09/26
......
Luxembourg
1,401,866
1,315,805
Pactiv
Evergreen
Group
Holdings,
Inc.,
First
Lien,
CME
Term
Loan,
B4
,
7.185
%
,
(
1-month
SOFR
+
2.5
%
),
9/25/28
.......
United
States
267,786
268,332
2,737,482
a
a
a
a
a
a
Distributors
0.0%
†
m
Core
&
Main
LP,
First
Lien,
CME
Term
Loan,
D
,
6.718
%
,
(
1-month
SOFR
+
2
%
),
7/27/28
...............................
United
States
533,689
533,577
Diversified
Consumer
Services
0.0%
†
m
WW
International,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.3
%
,
(
1-month
SOFR
+
3.5
%
),
4/13/28
......................
United
States
617,618
154,686
Diversified
Telecommunication
Services
0.0%
†
m
Altice
France
SA,
First
Lien,
CME
Term
Loan,
B14
,
10.156
%
,
(
3-month
SOFR
+
5.5
%
),
8/15/28
......................
France
251,817
202,353
Electrical
Equipment
0.0%
†
m
Indicor
LLC,
First
Lien,
CME
Term
Loan,
C
,
7.854
%
,
(
3-month
SOFR
+
3.25
%
),
11/22/29
...........................
United
States
547,485
548,210
Entertainment
0.0%
†
m
Playtika
Holding
Corp.,
First
Lien,
CME
Term
Loan,
B1
,
7.55
%
,
(
1-month
SOFR
+
2.75
%
),
3/13/28
.....................
United
States
418,499
418,518
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
m
Food
Products
0.1%
i
Aspire
Bakeries
Holdings
LLC,
First
Lien,
Initial
CME
Term
Loan
,
8.968
%
,
(
1-month
SOFR
+
4.25
%
),
12/22/30
.............
United
States
275,735
$
276,080
i
Froneri
US,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
6.745
%
,
(
12-month
SOFR
+
2
%
),
9/17/31
......................
United
States
729,927
727,485
Primary
Products
Finance
LLC,
First
Lien,
CME
Term
Loan,
B
,
8.248
%
,
(
3-month
SOFR
+
3.5
%
),
4/02/29
...............
United
States
664,377
666,689
Simply
Good
Foods
USA,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
7.318
%
,
(
1-month
SOFR
+
2.5
%
),
3/17/27
...............
United
States
46,589
46,880
1,717,134
a
a
a
a
a
a
m
Ground
Transportation
0.0%
†
Albion
Financing
3
SARL,
First
Lien,
2024
Amended
USD
Term
Loan
,
9.826
%
,
(
3-month
SOFR
+
4.75
%
),
8/17/29
.........
Luxembourg
88,640
89,047
First
Student
Bidco,
Inc.,
First
Lien,
Initial
CME
Term
Loan,
B
,
7.865
%
,
(
3-month
SOFR
+
3
%
),
7/21/28
................
United
States
208,965
209,369
First
Student
Bidco,
Inc.,
First
Lien,
Initial
CME
Term
Loan,
C
,
7.865
%
,
(
3-month
SOFR
+
3
%
),
7/21/28
................
United
States
63,879
64,003
362,419
a
a
a
a
a
a
m
Health
Care
Equipment
&
Supplies
0.1%
Medline
Borrower
LP,
First
Lien,
Dollar
Incremental
CME
Term
Loan
,
6.935
%
,
(
1-month
SOFR
+
2.25
%
),
10/23/28
........
United
States
102,599
102,704
Medline
Borrower
LP,
First
Lien,
Initial
CME
Term
Loan
,
7.435
%
,
(
1-month
SOFR
+
2.75
%
),
10/23/28
....................
United
States
597,226
598,453
US
Radiology
Specialists,
Inc.
(US
Outpatient
Imaging
Services,
Inc.),
First
Lien,
CME
Term
Loan
,
9.354
%
,
(
3-month
SOFR
+
4.75
%
),
12/15/27
..................................
United
States
380,231
382,252
1,083,409
a
a
a
a
a
a
m
Health
Care
Providers
&
Services
0.2%
ADMI
Corp.,
First
Lien,
Amendment
No.
4
Refinancing
CME
Term
Loan
,
8.175
%
,
(
1-month
SOFR
+
3.375
%
),
12/23/27
.......
United
States
1,004,200
986,210
Charlotte
Buyer,
Inc.,
First
Lien,
First
Refinancing
CME
Term
Loan
,
9.573
%
,
(
1-month
SOFR
+
4.75
%
),
2/11/28
.........
United
States
626,887
632,921
CNT
Holdings
I
Corp.,
First
Lien,
Initial
CME
Term
Loan
,
8.085
%
,
(
3-month
SOFR
+
3.5
%
),
11/08/27
.....................
United
States
266,913
267,847
Medical
Solutions
Holdings,
Inc.,
First
Lien,
CME
Term
Loan
,
8.185
%
,
(
3-month
SOFR
+
3.5
%
),
11/01/28
..............
United
States
646,720
487,536
Pacific
Dental
Services
LLC,
First
Lien,
CME
Term
Loan
,
7.536
%
,
(
1-month
SOFR
+
2.75
%
),
3/17/31
.....................
United
States
406,822
407,363
Phoenix
Guarantor,
Inc.,
First
Lien,
CME
Term
Loan,
B4
,
7.935
%
,
(
1-month
SOFR
+
3.25
%
),
2/21/31
.....................
United
States
349,123
349,589
g
Radiology
Partners,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
PIK,
8.883
%
,
(
3-month
SOFR
+
3.5
%
),
1/31/29
...............
United
States
955,484
940,714
Surgery
Center
Holdings,
Inc.,
First
Lien,
2024
Refinancing
CME
Term
Loan
,
7.495
%
,
(
1-month
SOFR
+
2.75
%
),
12/19/30
....
United
States
58,361
58,562
US
Anesthesia
Partners,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
9.036
%
,
(
1-month
SOFR
+
4.25
%
),
10/02/28
.............
United
States
984,936
972,196
Waystar
Technologies,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
7.435
%
,
(
1-month
SOFR
+
2.75
%
),
10/22/29
.............
United
States
189,700
190,668
5,293,606
a
a
a
a
a
a
m
Hotels,
Restaurants
&
Leisure
0.2%
g
24
Hour
Fitness
Worldwide,
Inc.,
First
Lien,
Exit
CME
Term
Loan
,
PIK,
9.865
%
,
(
3-month
SOFR
+
5
%
),
12/29/25
............
United
States
2,367,445
982,490
Bally's
Corp.,
First
Lien,
CME
Term
Loan,
B
,
8.143
%
,
(
3-month
SOFR
+
3.25
%
),
10/02/28
...........................
United
States
750,599
725,735
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
m
Hotels,
Restaurants
&
Leisure
(continued)
Caesars
Entertainment,
Inc.,
First
Lien,
2023
Incremental
CME
Term
Loan,
B
,
7.435
%
,
(
1-month
SOFR
+
2.75
%
),
2/06/30
...
United
States
349,077
$
349,876
Dave
&
Buster's,
Inc.,
First
Lien,
2024
Refinancing
CME
Term
Loan,
B
,
7.875
%
,
(
3-month
SOFR
+
3.25
%
),
6/29/29
.......
United
States
414,478
413,910
Entain
plc,
First
Lien,
CME
Term
Loan,
B3
,
8.014
%
,
(
6-month
SOFR
+
2.75
%
),
10/31/29
...........................
United
Kingdom
249,375
249,370
i
Golden
State
Foods
LLC,
First
Lien,
CME
Term
Loan,
B
,
8.447
%
,
(
12-month
SOFR
+
4.25
%
),
10/03/31
...................
United
States
211,864
212,262
Hilton
Grand
Vacations
Borrower
LLC,
First
Lien,
Initial
CME
Term
Loan
,
7.185
%
,
(
1-month
SOFR
+
2.5
%
),
8/02/28
..........
United
States
248,291
247,825
IRB
Holding
Corp.,
First
Lien,
CME
Term
Loan,
B
,
7.535
%
,
(
1-month
SOFR
+
2.75
%
),
12/15/27
....................
United
States
299,248
299,553
Ontario
Gaming
GTA
LP,
First
Lien,
CME
Term
Loan,
B
,
8.893
%
,
(
3-month
SOFR
+
4.25
%
),
8/01/30
.....................
Canada
201,355
201,642
Raptor
Acquisition
Corp.,
First
Lien,
CME
Term
Loan,
B
,
9.015
%
,
(
3-month
SOFR
+
4
%
),
11/01/26
......................
United
States
542,050
542,253
Scientific
Games
Holdings
LP,
First
Lien,
2024
Refinancing
Dollar
CME
Term
Loan
,
8.318
%
,
(
3-month
SOFR
+
3
%
),
4/04/29
...
United
States
751,962
749,763
Whatabrands
LLC,
First
Lien,
2024
CME
Term
Loan,
B
,
7.435
%
,
(
1-month
SOFR
+
2.75
%
),
8/03/28
.....................
United
States
176,836
177,018
5,151,697
a
a
a
a
a
a
Household
Durables
0.0%
†
m
Hunter
Douglas,
Inc.,
First
Lien,
CME
Term
Loan,
B1
,
8.571
%
,
(
3-month
SOFR
+
3.5
%
),
2/25/29
......................
Netherlands
201,995
201,668
m
Independent
Power
and
Renewable
Electricity
Producers
0.0%
†
Calpine
Construction
Finance
Co.
LP,
First
Lien,
Refinancing
CME
Term
Loan
,
6.685
%
,
(
1-month
SOFR
+
2
%
),
7/19/30
...
United
States
300,000
298,663
Calpine
Corp.,
First
Lien,
CME
Term
Loan
,
6.685
%
,
(
1-month
SOFR
+
2
%
),
1/31/31
...............................
United
States
498,747
497,897
796,560
a
a
a
a
a
a
m
Insurance
0.2%
Acrisure
LLC,
First
Lien,
CME
Term
Loan,
B6
,
8.009
%
,
(
1-month
SOFR
+
3.25
%
),
11/06/30
...........................
United
States
283,124
283,037
AssuredPartners,
Inc.,
First
Lien,
2024
CME
Term
Loan
,
8.185
%
,
(
1-month
SOFR
+
3.5
%
),
2/14/31
......................
United
States
786,532
788,553
Asurion
LLC,
First
Lien,
New
CME
Term
Loan,
B10
,
8.785
%
,
(
1-month
SOFR
+
4
%
),
8/21/28
.......................
United
States
239,585
237,810
Asurion
LLC,
First
Lien,
New
CME
Term
Loan,
B11
,
9.035
%
,
(
1-month
SOFR
+
4.25
%
),
8/21/28
.....................
United
States
87,408
87,026
Asurion
LLC,
Second
Lien,
New
CME
Term
Loan,
B4
,
10.05
%
,
(
1-month
SOFR
+
5.25
%
),
1/19/29
.....................
United
States
2,300,693
2,202,511
i
Broadstreet
Partners,
Inc.,
First
Lien,
2024
CME
Term
Loan,
B
,
7.935
%
,
(
1-month
SOFR
+
3.25
%
),
6/16/31
..............
United
States
748,828
749,116
Sedgwick
Claims
Management
Services,
Inc.,
First
Lien,
2024
CME
Term
Loan
,
7.585
%
,
(
3-month
SOFR
+
3
%
),
7/31/31
...
United
States
434,468
435,102
4,783,155
a
a
a
a
a
a
IT
Services
0.0%
†
m
Fortress
Intermediate
3,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.435
%
,
(
1-month
SOFR
+
3.75
%
),
6/27/31
..............
United
States
137,274
137,303
Leisure
Products
0.0%
†
m
GBT
US
III
LLC,
First
Lien,
Restatement
Date
CME
Term
Loan
,
7.626
%
,
(
3-month
SOFR
+
3
%
),
7/28/31
................
United
States
507,756
508,482
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
m
Machinery
0.1%
CPM
Holdings,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
9.172
%
,
(
1-month
SOFR
+
4.5
%
),
9/28/28
......................
United
States
746,241
$
732,648
SunSource
Borrower,
Inc.,
First
Lien,
First
Refinancing
CME
Term
Loan
,
8.785
%
,
(
1-month
SOFR
+
4
%
),
3/25/31
............
United
States
362,725
362,271
1,094,919
a
a
a
a
a
a
m
Media
0.1%
Cengage
Learning,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
9.538
%
,
(
6-month
SOFR
+
4.25
%
),
3/24/31
.....................
United
States
497,500
500,132
Gray
Television,
Inc.,
First
Lien,
CME
Term
Loan,
D
,
7.786
%
,
(
1-month
SOFR
+
3
%
),
12/01/28
......................
United
States
775,546
731,813
MH
Sub
I
LLC
(Micro
Holding
Corp.),
First
Lien,
CME
Term
Loan
,
8.935
%
,
(
1-month
SOFR
+
4.25
%
),
5/03/28
..............
United
States
254,761
253,463
1,485,408
a
a
a
a
a
a
m
Oil,
Gas
&
Consumable
Fuels
0.1%
EPIC
Crude
Services
LP,
First
Lien,
CME
Term
Loan
,
7.656
%
,
(
3-month
SOFR
+
3
%
),
10/15/31
......................
United
States
467,290
467,708
UGI
Energy
Services
LLC,
First
Lien,
Initial
CME
Term
Loan
,
7.844
%
,
(
1-month
SOFR
+
2.5
%
),
2/22/30
...............
United
States
525,495
526,527
994,235
a
a
a
a
a
a
m
Passenger
Airlines
0.1%
AAdvantage
Loyalty
IP
Ltd.,
First
Lien,
Initial
CME
Term
Loan
,
9.629
%
,
(
3-month
SOFR
+
4.75
%
),
4/20/28
..............
United
States
316,623
326,139
American
Airlines,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
7.209
%
,
(
6-month
SOFR
+
2.5
%
),
6/04/29
......................
United
States
617,618
616,074
i
AS
Mileage
Plan
IP
Ltd.,
First
Lien,
Initial
CME
Term
Loan
,
6.656
%
,
(
3-month
SOFR
+
2
%
),
10/01/31
................
United
States
427,960
427,425
United
Airlines,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
7.385
%
,
(
3-month
SOFR
+
2.75
%
),
2/22/31
.....................
United
States
316,366
317,467
1,687,105
a
a
a
a
a
a
m
Pharmaceuticals
0.0%
†
Jazz
Financing
Lux
SARL,
First
Lien,
Dollar
CME
Term
Loan,
B2
,
6.935
%
,
(
1-month
SOFR
+
2.25
%
),
5/05/28
..............
United
States
625,027
625,808
Organon
&
Co.,
First
Lien,
Dollar
CME
Term
Loan
,
7.259
%
,
(
1-month
SOFR
+
2.5
%
),
5/19/31
......................
United
States
297,370
297,742
923,550
a
a
a
a
a
a
m
Professional
Services
0.1%
EAB
Global,
Inc.,
First
Lien,
CME
Term
Loan
,
7.935
%
,
(
1-month
SOFR
+
3.25
%
),
8/16/28
............................
United
States
746,250
744,504
Maximus,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
6.604
%
,
(
3-month
SOFR
+
2
%
),
5/30/31
...............................
United
States
282,525
284,173
Soliant
Lower
Intermediate
LLC,
First
Lien,
Initial
CME
Term
Loan
,
8.435
%
,
(
1-month
SOFR
+
3.75
%
),
7/18/31
.........
United
States
264,784
266,605
1,295,282
a
a
a
a
a
a
Software
0.2%
m
Adeia,
Inc.,
First
Lien,
CME
Term
Loan,
B
,
7.759
%
,
(
1-month
SOFR
+
3
%
),
6/08/28
...............................
United
States
717,884
719,381
m
AppLovin
Corp.,
First
Lien,
Amendment
No.
1
Replacement
CME
Term
Loan,
10-I
,
7.185
%
,
(
1-month
SOFR
+
2.5
%
),
10/25/28
.
United
States
498,747
500,098
m
Central
Parent
LLC,
First
Lien,
CME
Term
Loan,
B
,
7.854
%
,
(
3-month
SOFR
+
3.25
%
),
7/06/29
.....................
United
States
375,000
372,720
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
l
Senior
Floating
Rate
Interests
(continued)
Software
(continued)
m
ConnectWise
LLC,
First
Lien,
Initial
CME
Term
Loan
,
8.365
%
,
(
3-month
SOFR
+
3.5
%
),
9/29/28
......................
United
States
283,362
$
283,666
m
Genesys
Cloud
Services
Holdings
II
LLC,
First
Lien,
Dollar
CME
Term
Loan,
B4
,
8.345
%
,
(
1-month
SOFR
+
3.5
%
),
12/01/27
..
United
States
596,119
598,214
m
Imprivata,
Inc.,
First
Lien,
2024
Refinancing
CME
Term
Loan
,
8.085
%
,
(
3-month
SOFR
+
3.5
%
),
12/01/27
..............
United
States
119,986
120,637
m
McAfee
Corp.,
First
Lien,
CME
Term
Loan,
B1
,
8.1
%
,
(
1-month
SOFR
+
3.25
%
),
3/01/29
............................
United
States
639,217
639,262
m
Polaris
Newco
LLC,
First
Lien,
Dollar
CME
Term
Loan
,
8.847
%
,
(
3-month
SOFR
+
4
%
),
6/02/28
.......................
United
States
154,859
153,993
m
Rocket
Software,
Inc.,
First
Lien,
CME
Term
Loan
,
8.935
%
,
(
1-month
SOFR
+
4.75
%
),
11/28/28
....................
United
States
409,930
411,129
a,c,h
WorkCapital
BSD
SARL,
Term
Loan
,
6.5
%
,
1/01/38
..........
Luxembourg
20,000,000
—
3,799,100
a
a
a
a
a
a
m
Specialty
Retail
0.2%
Evergreen
Acqco
1
LP,
First
Lien,
Initial
CME
Term
Loan
,
8.393
%
,
(
3-month
SOFR
+
3.75
%
),
4/26/28
.....................
United
States
421,605
423,408
GNC
Holdings,
Inc.,
Second
Lien,
CME
Term
Loan
,
10.785
%
,
(
1-month
SOFR
+
6
%
),
10/07/26
......................
United
States
2,973,896
2,089,162
Great
Outdoors
Group
LLC,
First
Lien,
CME
Term
Loan,
B1
,
8.55
%
,
(
1-month
SOFR
+
3.75
%
),
3/06/28
...............
United
States
446,164
447,725
Johnstone
Supply
LLC,
First
Lien,
Initial
CME
Term
Loan
,
7.851
%
,
(
1-month
SOFR
+
3
%
),
5/16/31
................
United
States
621,547
621,547
RealTruck
Group,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
8.3
%
,
(
1-month
SOFR
+
3.5
%
),
1/31/28
......................
United
States
623,266
615,952
Restoration
Hardware,
Inc.,
First
Lien,
2022
Incremental
CME
Term
Loan
,
8.035
%
,
(
1-month
SOFR
+
3.25
%
),
10/20/28
....
United
States
853,647
833,373
White
Cap
Supply
Holdings
LLC,
First
Lien,
CME
Term
Loan,
C
,
7.935
%
,
(
1-month
SOFR
+
3.25
%
),
10/19/29
.............
United
States
526,616
526,144
5,557,311
a
a
a
a
a
a
m
Textiles,
Apparel
&
Luxury
Goods
0.0%
†
Flash
Charm,
Inc.,
First
Lien,
CME
Term
Loan,
B2
,
8.071
%
,
(
3-month
SOFR
+
3.5
%
),
3/02/28
......................
United
States
573,592
564,928
Hanesbrands,
Inc.,
First
Lien,
Initial
CME
Term
Loan,
B
,
8.435
%
,
(
1-month
SOFR
+
3.75
%
),
3/08/30
.....................
United
States
349,780
352,841
917,769
a
a
a
a
a
a
Transportation
Infrastructure
0.0%
†
m
LaserShip,
Inc.,
First
Lien,
Initial
CME
Term
Loan
,
9.365
%
,
(
3-month
SOFR
+
4.5
%
),
5/08/28
......................
United
States
675,656
292,221
Total
Senior
Floating
Rate
Interests
(Cost
$
86,253,999
)
........................
65,392,097
o
Marketplace
Loans
1.3%
a
Financial
Services
1.3%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$
38,205,275
)
..................................
31,848,157
Foreign
Government
and
Agency
Securities
2.2%
f
African
Export-Import
Bank
(The)
,
Senior
Bond
,
144A,
3.994%,
9/21/29
.........................................
Supranational
p
13,600,000
12,664,065
f
Banque
Ouest
Africaine
de
Developpement
,
Senior
Bond
,
144A,
5%,
7/27/27
......................................
Supranational
p
11,500,000
11,275,727
Colombia
Government
Bond
,
Senior
Bond
,
9.85%,
6/28/27
....
Colombia
55,750,000,000
COP
12,348,216
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
f
Comision
Federal
de
Electricidad
,
Senior
Bond
,
144A,
3.348%,
2/09/31
.........................................
Mexico
9,500,000
$
8,015,911
f
Electricite
de
France
SA
,
Senior
Note
,
144A,
5.7%,
5/23/28
....
France
1,700,000
1,743,876
f
Korea
Electric
Power
Corp.
,
Senior
Note
,
144A,
5.375%,
4/06/26
South
Korea
3,400,000
3,430,572
Petroleos
Mexicanos
,
Senior
Note
,
10%,
2/07/33
............
Mexico
3,200,000
3,394,108
f
Romania
Government
Bond
,
Senior
Bond
,
144A,
6.125%,
1/22/44
Romania
4,700,000
4,431,652
Total
Foreign
Government
and
Agency
Securities
(Cost
$
68,941,302
)
............
57,304,127
U.S.
Government
and
Agency
Securities
16.5%
FFCB
,
2.1%,
2/25/36
.................................
United
States
7,700,000
5,864,835
U.S.
Treasury
Bonds
,
6.875
%,
8/15/25
...................................
United
States
1,000,000
1,022,058
4.125
%,
8/15/44
...................................
United
States
50,000,000
46,960,937
2.875
%,
5/15/49
...................................
United
States
13,400,000
9,979,336
4.25
%,
8/15/54
...................................
United
States
125,000,000
120,302,735
U.S.
Treasury
Notes
,
q
Index
Linked,
0.625
%,
1/15/26
........................
United
States
27,000,000
35,095,159
3.875
%,
1/15/26
...................................
United
States
32,500,000
32,359,082
4
%,
2/15/26
......................................
United
States
60,000,000
59,826,563
2.375
%,
4/30/26
...................................
United
States
100,000
97,377
%,
5/15/26
...................................
United
States
3,500,000
3,469,306
4.375
%,
8/15/26
...................................
United
States
12,100,000
12,140,412
2.75
%,
7/31/27
...................................
United
States
39,000,000
37,611,387
3.875
%,
11/30/27
..................................
United
States
43,700,000
43,376,518
2.875
%,
5/15/28
...................................
United
States
17,000,000
16,290,781
Total
U.S.
Government
and
Agency
Securities
(Cost
$
424,647,349
)
..............
424,396,486
Asset-Backed
Securities
2.7%
Commercial
Services
&
Supplies
0.2%
f
,m
Galaxy
XXVIII
CLO
Ltd.
,
2018-28A
,
C
,
144A,
FRN
,
6.868%,
(
3-month
SOFR
+
2.212
%
),
7/15/31
.
...................
United
States
3,070,000
3,078,238
Financial
Services
2.5%
f
,m
Carlyle
Global
Market
Strategies
CLO
Ltd.
,
2013-3A
,
BR
,
144A,
FRN
,
6.618%,
(
3-month
SOFR
+
1.962
%
),
10/15/30
........................................
United
States
300,000
300,738
2014-2RA
,
B
,
144A,
FRN
,
7.205%,
(
3-month
SOFR
+
2.087
%
),
5/15/31
.........................................
United
States
580,000
582,219
f
,r
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2019-26
,
PT
,
144A,
FRN
,
2.845%,
8/15/44
...............
United
States
19,096
18,664
2019-31
,
PT
,
144A,
FRN
,
3.907%,
9/15/44
...............
United
States
22,583
22,274
2019-37
,
PT
,
144A,
FRN
,
6.625%,
10/17/44
..............
United
States
34,663
23,115
2019-42
,
PT
,
144A,
FRN
,
7.796%,
11/15/44
..............
United
States
26,267
20,542
2019-51
,
PT
,
144A,
FRN
,
12.126%,
1/15/45
..............
United
States
63,565
61,604
2019-52
,
PT
,
144A,
FRN
,
11.92%,
1/15/45
...............
United
States
62,369
55,721
2019-S5
,
PT
,
144A,
FRN
,
13.393%,
9/15/44
..............
United
States
12,113
10,095
2019-S6
,
PT
,
144A,
FRN
,
0.215%,
10/17/44
..............
United
States
23,769
19,418
2019-S7
,
PT
,
144A,
FRN
,
11.04%,
12/15/44
..............
United
States
10,820
10,602
2019-S8
,
PT
,
144A,
FRN
,
4.521%,
1/15/45
...............
United
States
21,650
21,067
2020-2
,
PT
,
144A,
FRN
,
11.794%,
3/15/45
...............
United
States
79,320
78,455
2020-7
,
PT
,
144A,
FRN
,
12.31%,
4/17/45
................
United
States
52,936
49,243
f
,m
Dryden
75
CLO
Ltd.
,
2019-75A
,
AR2
,
144A,
FRN
,
5.958%,
(
3-month
SOFR
+
1.302
%
),
4/15/34
.
...................
United
States
30,321,000
30,378,558
f
Home
Partners
of
America
Trust
,
2021-2
,
B
,
144A,
2.302%,
12/17/26
....................
United
States
11,882,155
11,211,244
2021-3
,
B
,
144A,
2.649%,
1/17/41
.....................
United
States
4,331,732
3,926,462
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
(continued)
Financial
Services
(continued)
f
,m
LCM
XVII
LP
,
17A
,
BRR
,
144A,
FRN
,
6.518%,
(
3-month
SOFR
+
1.862
%
),
10/15/31
.
.................................
United
States
4,590,000
$
4,598,495
f
,m
Octagon
Investment
Partners
36
Ltd.
,
2018-1A
,
A1
,
144A,
FRN
,
5.888%,
(
3-month
SOFR
+
1.232
%
),
4/15/31
.
.............
United
States
4,614,839
4,621,795
f
,r
Prosper
Pass-Thru
Trust
III
,
2020-PT1
,
A
,
144A,
FRN
,
8.796%,
3/15/26
...............
United
States
44,950
37,629
2020-PT2
,
A
,
144A,
FRN
,
0.51%,
4/15/26
................
United
States
59,700
53,013
2020-PT3
,
A
,
144A,
FRN
,
7.183%,
5/15/26
...............
United
States
16,657
13,931
f
,r
Upgrade
Master
Pass-Thru
Trust
,
2019-PT2
,
A
,
144A,
FRN
,
10.66%,
2/15/26
.
..................................
United
States
25,996
25,194
f
,m
Voya
CLO
Ltd.
,
2013-2A
,
A2AR
,
144A,
FRN
,
6.287%,
(
3-month
SOFR
+
1.662
%
),
4/25/31
..................................
United
States
2,200,000
2,208,109
2013-2A
,
BR
,
144A,
FRN
,
6.737%,
(
3-month
SOFR
+
2.112
%
),
4/25/31
.........................................
United
States
5,770,000
5,800,980
2016-1A
,
BR
,
144A,
FRN
,
6.679%,
(
3-month
SOFR
+
2.062
%
),
1/20/31
.........................................
United
States
590,000
592,807
64,741,974
a
a
a
a
a
a
Passenger
Airlines
0.0%
†
United
Airlines
Pass-Through
Trust
,
2020-1
,
B
,
4.875%,
7/15/27
.
United
States
480,000
476,000
Total
Asset-Backed
Securities
(Cost
$
69,195,846
)
.............................
68,296,212
Commercial
Mortgage-Backed
Securities
1.1%
Financial
Services
1.1%
r
Benchmark
Mortgage
Trust
,
2023-V3
,
A3
,
FRN
,
6.363%,
7/15/56
United
States
640,000
666,799
f
,m
BX
Commercial
Mortgage
Trust
,
2021-VOLT
,
A
,
144A,
FRN
,
5.618%,
(
1-month
SOFR
+
0.814
%
),
9/15/36
.........................................
United
States
2,480,000
2,467,282
2021-VOLT
,
B
,
144A,
FRN
,
5.868%,
(
1-month
SOFR
+
1.064
%
),
9/15/36
..................................
United
States
3,890,000
3,860,978
2022-LP2
,
A
,
144A,
FRN
,
5.817%,
(
1-month
SOFR
+
1.013
%
),
2/15/39
.........................................
United
States
7,098,389
7,078,429
CFCRE
Commercial
Mortgage
Trust
,
2016-C7
,
A3
,
3.839%,
12/10/54
........................................
United
States
2,540,000
2,467,007
Citigroup
Commercial
Mortgage
Trust
,
2016-P4
,
A2
,
2.45%,
7/10/49
.........................................
United
States
1,618,597
1,570,615
CSAIL
Commercial
Mortgage
Trust
,
2015-C3
,
A4
,
3.718%,
8/15/48
.........................................
United
States
1,980,000
1,957,193
GS
Mortgage
Securities
Trust
,
2016-GS2
,
A4
,
3.05%,
5/10/49
..
United
States
1,150,000
1,119,265
JPMBB
Commercial
Mortgage
Securities
Trust
,
2015-C31
,
A3
,
3.801%,
8/15/48
.......................
United
States
2,937,051
2,897,331
2016-C1
,
A5
,
3.576%,
3/17/49
........................
United
States
3,761,000
3,694,506
Wells
Fargo
Commercial
Mortgage
Trust
,
2015-C31
,
A4
,
3.695%,
11/15/48
........................................
United
States
1,360,000
1,342,979
29,122,384
a
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$
28,995,736
)
..............
29,122,384
Mortgage-Backed
Securities
12.4%
s
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Adjustable
Rate
0.0%
†
FHLMC
,
6.348
%,
(
1-year
CMT
T-Note
+/-
MBS
Margin),
1/01/33
United
States
7,702
7,811
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
5.3%
FHLMC
Gold
Pool,
20
Year
,
5
%,
5/01/27
-
5/01/30
...........
United
States
65,353
65,548
FHLMC
Gold
Pool,
30
Year
,
4.5
%,
10/01/40
...............
United
States
32,523
31,862
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
(continued)
FHLMC
Gold
Pool,
30
Year
,
5
%,
3/01/34
-
2/01/38
...........
United
States
201,600
$
202,287
FHLMC
Gold
Pool,
30
Year
,
5.5
%,
6/01/33
-
6/01/36
.........
United
States
303,482
307,619
FHLMC
Gold
Pool,
30
Year
,
6
%,
6/01/33
-
6/01/37
...........
United
States
136,816
140,221
FHLMC
Gold
Pool,
30
Year
,
6.5
%,
12/01/25
-
6/01/36
........
United
States
28,291
29,393
FHLMC
Gold
Pool,
30
Year
,
7
%,
8/01/32
..................
United
States
1,425
1,483
FHLMC
Gold
Pool,
30
Year
,
7.5
%,
1/01/26
-
1/01/31
.........
United
States
1,396
1,444
FHLMC
Gold
Pool,
30
Year
,
8
%,
11/01/25
.................
United
States
7
7
FHLMC
Pool,
30
Year
,
2
%,
3/01/52
......................
United
States
33,334,066
26,505,777
FHLMC
Pool,
30
Year
,
4
%,
6/01/52
......................
United
States
35,238,278
32,601,573
FHLMC
Pool,
30
Year
,
4.5
%,
8/01/52
.....................
United
States
54,110,798
51,410,590
FHLMC
Pool,
30
Year
,
5.5
%,
11/01/52
....................
United
States
25,412,814
25,187,977
136,485,781
s
Federal
National
Mortgage
Association
(FNMA)
Adjustable
Rate
0.0%
†
FNMA
,
6.892
%,
(
1-year
CMT
T-Note
+/-
MBS
Margin),
12/01/34
United
States
38,098
39,167
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
6.1%
FNMA,
15
Year
,
2.5
%,
7/01/27
.........................
United
States
34,263
33,420
FNMA,
20
Year
,
4.5
%,
3/01/28
.........................
United
States
9,989
9,907
FNMA,
20
Year
,
5
%,
1/01/26
-
6/01/31
....................
United
States
95,155
95,222
FNMA,
30
Year
,
3
%,
9/01/48
-
9/01/51
....................
United
States
14,904,944
13,019,291
FNMA,
30
Year
,
4
%,
2/01/49
...........................
United
States
7,425,336
7,006,081
FNMA,
30
Year
,
4.5
%,
2/01/41
.........................
United
States
116,195
113,692
FNMA,
30
Year
,
5
%,
10/01/35
..........................
United
States
239,616
239,335
FNMA,
30
Year
,
5.5
%,
9/01/33
-
12/01/35
.................
United
States
362,082
367,010
FNMA,
30
Year
,
6
%,
6/01/34
-
5/01/38
....................
United
States
665,008
678,978
FNMA,
30
Year
,
6
%,
8/01/53
...........................
United
States
24,496,632
24,665,781
FNMA,
30
Year
,
6.5
%,
3/01/28
-
10/01/37
.................
United
States
102,115
105,568
FNMA,
30
Year
,
7.5
%,
10/01/29
.........................
United
States
1,522
1,562
FNMA,
30
Year
,
8
%,
1/01/25
-
12/01/25
...................
United
States
98
99
t
FNMA,
Single-family,
30
Year
,
2
%,
11/25/54
...............
United
States
97,140,000
77,012,154
t
FNMA,
Single-family,
30
Year
,
5
%,
11/25/54
...............
United
States
33,890,000
32,933,859
156,281,959
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
1.0%
GNMA
I,
Single-family,
30
Year
,
5
%,
6/15/34
-
7/15/34
........
United
States
32,882
32,856
GNMA
I,
Single-family,
30
Year
,
5.5
%,
2/15/33
-
6/15/36
......
United
States
146,743
149,475
GNMA
I,
Single-family,
30
Year
,
6
%,
8/15/36
...............
United
States
9,679
10,066
GNMA
I,
Single-family,
30
Year
,
6.5
%,
2/15/29
..............
United
States
542
545
GNMA
I,
Single-family,
30
Year
,
7
%,
5/15/28
...............
United
States
19
19
GNMA
I,
Single-family,
30
Year
,
7.5
%,
1/15/26
-
5/15/27
......
United
States
144
144
GNMA
I,
Single-family,
30
Year
,
8
%,
7/15/26
-
9/15/27
........
United
States
663
665
GNMA
I,
Single-family,
30
Year
,
9.5
%,
6/15/25
..............
United
States
33
33
GNMA
II,
Single-family,
30
Year
,
5
%,
9/20/33
-
11/20/33
.......
United
States
63,156
62,986
t
GNMA
II,
Single-family,
30
Year
,
5
%,
11/15/54
..............
United
States
26,230,000
25,623,231
GNMA
II,
Single-family,
30
Year
,
5.5
%,
6/20/34
.............
United
States
33,676
34,588
GNMA
II,
Single-family,
30
Year
,
6
%,
11/20/34
..............
United
States
36,104
37,547
GNMA
II,
Single-family,
30
Year
,
6.5
%,
7/20/28
-
12/20/31
.....
United
States
19,789
20,407
GNMA
II,
Single-family,
30
Year
,
7.5
%,
4/20/32
.............
United
States
5,542
5,693
25,978,255
Total
Mortgage-Backed
Securities
(Cost
$
328,848,027
)
.........................
318,792,973
Residential
Mortgage-Backed
Securities
2.3%
Financial
Services
2.3%
f
BRAVO
Residential
Funding
Trust
,
2019-1
,
A1C
,
144A,
3.5%,
3/25/58
.....................
United
States
109,774
109,333
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Residential
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
f
BRAVO
Residential
Funding
Trust,
(continued)
r
2019-2
,
A3
,
144A,
FRN
,
3.5%,
10/25/44
.................
United
States
2,476,841
$
2,345,381
f
,r
CIM
Trust
,
2019-INV1
,
A1
,
144A,
FRN
,
4%,
2/25/49
................
United
States
597,240
566,230
2019-INV2
,
A3
,
144A,
FRN
,
4%,
5/25/49
................
United
States
1,387,924
1,291,834
f
,r
COLT
Mortgage
Loan
Trust
,
2022-4
,
A1
,
144A,
FRN
,
4.301%,
3/25/67
.........................................
United
States
3,236,745
3,153,091
m
FHLMC
STACR
Debt
Notes
,
2015-DNA1
,
M3
,
FRN
,
8.271%,
(
30-
day
SOFR
Average
+
3.414
%
),
10/25/27
................
United
States
32,396
32,399
m
FNMA
Connecticut
Avenue
Securities
,
2015-C01
,
1M2
,
FRN
,
9.271%,
(
30-day
SOFR
Average
+
4.414
%
),
2/25/25
..................................
United
States
794,688
800,864
2015-C02
,
1M2
,
FRN
,
8.971%,
(
30-day
SOFR
Average
+
4.114
%
),
5/25/25
..................................
United
States
3,486,142
3,541,265
2015-C03
,
1M2
,
FRN
,
9.971%,
(
30-day
SOFR
Average
+
5.114
%
),
7/25/25
..................................
United
States
4,169,334
4,264,030
2016-C01
,
1M2
,
FRN
,
11.721%,
(
30-day
SOFR
Average
+
6.864
%
),
8/25/28
..................................
United
States
558,687
583,998
2017-C04
,
2M2
,
FRN
,
7.821%,
(
30-day
SOFR
Average
+
2.964
%
),
11/25/29
.................................
United
States
3,368,512
3,472,158
f
,r
J.P.
Morgan
Mortgage
Trust
,
2021-13
,
A4
,
144A,
FRN
,
2.5%,
4/25/52
.................
United
States
11,033,250
9,725,579
2021-15
,
A4
,
144A,
FRN
,
2.5%,
6/25/52
.................
United
States
3,573,353
3,124,769
f
,r
Mill
City
Mortgage
Loan
Trust
,
2018-4
,
A1B
,
144A,
FRN
,
3.5%,
4/25/66
.........................................
United
States
4,909,423
4,783,460
f
,r
OBX
Trust
,
2021-J3
,
A4
,
144A,
FRN
,
2.5%,
10/25/51
.........
United
States
2,293,949
2,014,918
f
,r
Provident
Funding
Associates
LLP
,
2021-J1
,
A3
,
144A,
FRN
,
2.5%,
2/20/49
....................................
United
States
7,765,012
6,796,122
f
,r
Provident
Funding
Mortgage
Trust
,
2019-1
,
A2
,
144A,
FRN
,
3%,
12/25/49
........................................
United
States
1,378,863
1,174,250
f
,r
PSMC
Trust
,
2021-3
,
A3
,
144A,
FRN
,
2.5%,
8/25/51
.........
United
States
13,311,490
11,820,534
59,600,215
a
a
a
a
a
a
Total
Residential
Mortgage-Backed
Securities
(Cost
$
66,179,286
)
...............
59,600,215
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,b
K2016470219
South
Africa
Ltd.,
Escrow
Account
............
South
Africa
620,001
—
b
Mesquite
Energy,
Inc.,
Escrow
Account
...................
United
States
6,000,000
120,000
Total
Escrows
and
Litigation
Trusts
(Cost
$
5,707,489
)
.........................
120,000
Total
Long
Term
Investments
(Cost
$
2,681,598,083
)
...........................
2,551,250,681
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Short
Term
Investments
2.5%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.5%
d,u
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
4.582
%
..
United
States
65,067,554
$
65,067,554
Total
Money
Market
Funds
(Cost
$
65,067,554
)
................................
65,067,554
Total
Short
Term
Investments
(Cost
$
65,067,554
)
..............................
65,067,554
a
Total
Investments
(Cost
$
2,746,665,637
)
101.8
%
..............................
$2,616,318,235
Other
Assets,
less
Liabilities
(
1.8
)
%
.........................................
(46,902,420)
Net
Assets
100.0%
.........................................................
$2,569,415,815
a
a
a
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
8
regarding
restricted
securities.
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
Security
is
a
business
development
company.
See
Note
1(f).
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2024,
the
aggregate
value
of
these
securities
was
$1,038,807,879,
representing
40.4%
of
net
assets.
g
Income
may
be
received
in
additional
securities
and/or
cash.
h
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
6.
i
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
j
The
coupon
rate
shown
represents
the
rate
at
period
end.
k
Variable
interest
entity
(VIE).
See
Note
7
regarding
investments
made
through
a
VIE
structure.
At
October
31,
2024,
the
value
of
this
security
was
$8,023,410,
representing
0.3%
of
net
assets.
l
See
Note
1(i)
regarding
senior
floating
rate
interests.
m
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
n
A
portion
or
all
of
the
security
represents
an
unsettled
loan
commitment.
The
coupon
rate
is
to-be
determined
(TBD)
at
the
time
of
the
settlement
and
will
be
based
upon
a
reference
index/floor
plus
a
spread.
o
See
Note
1(g)
regarding
Marketplace
Lending.
See
full
breakdown
of
marketplace
loans
holdings
in
the
table
at
the
end
of
this
schedule.
p
A
supranational
organization
is
an
entity
formed
by
two
or
more
central
governments
through
international
treaties.
q
Principal
amount
of
security,
redemption
price
at
maturity,
and/or
coupon
payments
are
adjusted
for
inflation.
See
Note
1(k).
r
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
s
Adjustable
Rate
Mortgage-Backed
Security
(ARM);
the
rate
shown
is
the
effective
rate
at
period
end.
ARM
rates
are
not
based
on
a
published
reference
rate
and
spread,
but
instead
pass-through
weighted
average
interest
income
inclusive
of
any
caps
or
floors,
if
applicable,
from
the
underlying
mortgage
loans
in
which
the
majority
of
mortgages
pay
interest
based
on
the
index
shown
at
their
designated
reset
dates
plus
a
spread,
less
the
applicable
servicing
and
guaranty
fee
(MBS
margin).
t
Security
purchased
on
a
to-be-announced
(TBA)
basis.
See
Note
1(c).
u
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Strategic
Income
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
At
October
31,
2024,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(g).
Description
Principal
Amount
Value
Marketplace
Loans
-
1.3%
Block,
Inc.
6716198.SQ.FTS.B
,
Zero
Cpn
,
11/30/24
..
$
2,658
$
1,754
6719810.SQ.FTS.B
,
Zero
Cpn
,
12/01/24
..
1,571
456
6720355.SQ.FTS.B
,
Zero
Cpn
,
12/01/24
..
706
475
6720946.SQ.FTS.B
,
Zero
Cpn
,
12/01/24
..
3,204
2,297
6722689.SQ.FTS.B
,
Zero
Cpn
,
12/02/24
..
767
614
6724464.SQ.FTS.B
,
Zero
Cpn
,
12/02/24
..
9,907
298
6725712.SQ.FTS.B
,
Zero
Cpn
,
12/03/24
..
5,519
4,131
6729723.SQ.FTS.B
,
Zero
Cpn
,
12/05/24
..
2,723
1,955
6729931.SQ.FTS.B
,
Zero
Cpn
,
12/05/24
..
5,140
160
6730881.SQ.FTS.B
,
Zero
Cpn
,
12/06/24
..
7,925
4,946
6731255.SQ.FTS.B
,
Zero
Cpn
,
12/06/24
..
1,286
420
6731838.SQ.FTS.B
,
Zero
Cpn
,
12/06/24
..
5,855
2,400
6733936.SQ.FTS.B
,
Zero
Cpn
,
12/07/24
..
271
112
6737164.SQ.FTS.B
,
Zero
Cpn
,
12/07/24
..
626
521
6737291.SQ.FTS.B
,
Zero
Cpn
,
12/07/24
..
1,511
52
6742103.SQ.FTS.B
,
Zero
Cpn
,
12/08/24
..
970
629
6745247.SQ.FTS.B
,
Zero
Cpn
,
12/09/24
..
775
19
6746092.SQ.FTS.B
,
Zero
Cpn
,
12/09/24
..
1,222
113
6746977.SQ.FTS.B
,
Zero
Cpn
,
12/10/24
..
15,911
182
6753008.SQ.FTS.B
,
Zero
Cpn
,
12/13/24
..
6,085
101
6753247.SQ.FTS.B
,
Zero
Cpn
,
12/13/24
..
9,841
3,863
6756228.SQ.FTS.B
,
Zero
Cpn
,
12/14/24
..
613
466
6756294.SQ.FTS.B
,
Zero
Cpn
,
12/14/24
..
3,338
2,374
6756782.SQ.FTS.B
,
Zero
Cpn
,
12/14/24
..
380
323
6757268.SQ.FTS.B
,
Zero
Cpn
,
12/14/24
..
2,048
1,456
6757541.SQ.FTS.B
,
Zero
Cpn
,
12/14/24
..
2,249
1,585
6762246.SQ.FTS.B
,
Zero
Cpn
,
12/15/24
..
975
614
6764489.SQ.FTS.B
,
Zero
Cpn
,
12/15/24
..
21,402
1,985
6770530.SQ.FTS.B
,
Zero
Cpn
,
12/19/24
..
1,117
34
6771134.SQ.FTS.B
,
Zero
Cpn
,
12/19/24
..
18,506
379
6773825.SQ.FTS.B
,
Zero
Cpn
,
12/20/24
..
497
486
6774551.SQ.FTS.B
,
Zero
Cpn
,
12/20/24
..
17,810
703
6775919.SQ.FTS.B
,
Zero
Cpn
,
12/21/24
..
11,208
8,562
6781272.SQ.FTS.B
,
Zero
Cpn
,
12/22/24
..
37,439
1,951
6783369.SQ.FTS.B
,
Zero
Cpn
,
12/23/24
..
1,854
64
6783863.SQ.FTS.B
,
Zero
Cpn
,
12/23/24
..
598
433
6789025.SQ.FTS.B
,
Zero
Cpn
,
12/26/24
..
4,067
3,219
6792314.SQ.FTS.B
,
Zero
Cpn
,
12/27/24
..
6,421
219
6795315.SQ.FTS.B
,
Zero
Cpn
,
12/28/24
..
1,229
40
6800044.SQ.FTS.B
,
Zero
Cpn
,
12/29/24
..
4,878
1,183
6804745.SQ.FTS.B
,
Zero
Cpn
,
12/30/24
..
565
381
6806677.SQ.FTS.B
,
Zero
Cpn
,
12/30/24
..
3,293
54
6808256.SQ.FTS.B
,
Zero
Cpn
,
1/01/25
...
794
31
6809383.SQ.FTS.B
,
Zero
Cpn
,
1/02/25
...
1,605
1,429
6810642.SQ.FTS.B
,
Zero
Cpn
,
1/03/25
...
5,633
130
6811483.SQ.FTS.B
,
Zero
Cpn
,
1/03/25
...
8,588
6,000
6812517.SQ.FTS.B
,
Zero
Cpn
,
1/03/25
...
14,910
378
6812850.SQ.FTS.B
,
Zero
Cpn
,
1/03/25
...
1,848
185
6815367.SQ.FTS.B
,
Zero
Cpn
,
1/05/25
...
1,775
127
6818955.SQ.FTS.B
,
Zero
Cpn
,
1/06/25
...
7,512
180
6822097.SQ.FTS.B
,
Zero
Cpn
,
1/06/25
...
1,805
51
6826532.SQ.FTS.B
,
Zero
Cpn
,
1/08/25
...
3,960
1,029
6827373.SQ.FTS.B
,
Zero
Cpn
,
1/09/25
...
2,626
1,986
6828266.SQ.FTS.B
,
Zero
Cpn
,
1/10/25
...
273
126
6829785.SQ.FTS.B
,
Zero
Cpn
,
1/10/25
...
1,621
1,408
6830364.SQ.FTS.B
,
Zero
Cpn
,
1/10/25
...
15,959
11,954
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6832546.SQ.FTS.B
,
Zero
Cpn
,
1/11/25
...
$
2,349
$
2,074
6833356.SQ.FTS.B
,
Zero
Cpn
,
1/11/25
...
16,871
8,167
6833692.SQ.FTS.B
,
Zero
Cpn
,
1/11/25
...
2,163
1,815
6833875.SQ.FTS.B
,
Zero
Cpn
,
1/12/25
...
2,921
1,924
6836269.SQ.FTS.B
,
Zero
Cpn
,
1/12/25
...
758
50
6836478.SQ.FTS.B
,
Zero
Cpn
,
1/12/25
...
673
319
6838796.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
1,295
552
6838880.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
702
647
6839356.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
2,231
1,876
6839643.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
576
19
6840598.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
9,338
2,109
6841626.SQ.FTS.B
,
Zero
Cpn
,
1/13/25
...
5,625
73
6843667.SQ.FTS.B
,
Zero
Cpn
,
1/14/25
...
32,216
882
6845960.SQ.FTS.B
,
Zero
Cpn
,
1/15/25
...
2,479
51
6846131.SQ.FTS.B
,
Zero
Cpn
,
1/15/25
...
1,468
751
6846652.SQ.FTS.B
,
Zero
Cpn
,
1/16/25
...
185
6
6846797.SQ.FTS.B
,
Zero
Cpn
,
1/16/25
...
2,345
1,720
6848265.SQ.FTS.B
,
Zero
Cpn
,
1/17/25
...
1,144
37
6849119.SQ.FTS.B
,
Zero
Cpn
,
1/17/25
...
3,456
2,478
6849498.SQ.FTS.B
,
Zero
Cpn
,
1/17/25
...
5,530
707
6849711.SQ.FTS.B
,
Zero
Cpn
,
1/17/25
...
628
15
6850198.SQ.FTS.B
,
Zero
Cpn
,
1/17/25
...
130
81
6852615.SQ.FTS.B
,
Zero
Cpn
,
1/18/25
...
1,041
26
6855849.SQ.FTS.B
,
Zero
Cpn
,
1/19/25
...
3,478
2,716
6856480.SQ.FTS.B
,
Zero
Cpn
,
1/19/25
...
234
144
6862957.SQ.FTS.B
,
Zero
Cpn
,
1/21/25
...
4,171
2,161
6865428.SQ.FTS.B
,
Zero
Cpn
,
1/23/25
...
415
373
6865537.SQ.FTS.B
,
Zero
Cpn
,
1/23/25
...
30
28
6866189.SQ.FTS.B
,
Zero
Cpn
,
1/24/25
...
166
120
6866804.SQ.FTS.B
,
Zero
Cpn
,
1/24/25
...
1,942
1,378
6867755.SQ.FTS.B
,
Zero
Cpn
,
1/24/25
...
7,155
6,157
6868391.SQ.FTS.B
,
Zero
Cpn
,
1/24/25
...
2,413
1,180
6869935.SQ.FTS.B
,
Zero
Cpn
,
1/25/25
...
170
169
6870054.SQ.FTS.B
,
Zero
Cpn
,
1/25/25
...
1,004
531
6871155.SQ.FTS.B
,
Zero
Cpn
,
1/25/25
...
3,560
42
6871369.SQ.FTS.B
,
Zero
Cpn
,
1/25/25
...
1,038
953
6873383.SQ.FTS.B
,
Zero
Cpn
,
1/26/25
...
433
257
6880856.SQ.FTS.B
,
Zero
Cpn
,
1/28/25
...
1,568
710
6882976.SQ.FTS.B
,
Zero
Cpn
,
1/28/25
...
282
280
6883232.SQ.FTS.B
,
Zero
Cpn
,
1/28/25
...
472
324
6883510.SQ.FTS.B
,
Zero
Cpn
,
1/28/25
...
1,274
1,177
6883907.SQ.FTS.B
,
Zero
Cpn
,
1/28/25
...
455
171
6884403.SQ.FTS.B
,
Zero
Cpn
,
1/29/25
...
405
285
6884421.SQ.FTS.B
,
Zero
Cpn
,
1/29/25
...
487
479
6884500.SQ.FTS.B
,
Zero
Cpn
,
1/29/25
...
2,363
1,153
6884787.SQ.FTS.B
,
Zero
Cpn
,
1/29/25
...
3,067
264
6885300.SQ.FTS.B
,
Zero
Cpn
,
1/30/25
...
895
794
6887745.SQ.FTS.B
,
Zero
Cpn
,
1/31/25
...
546
498
6888979.SQ.FTS.B
,
Zero
Cpn
,
1/31/25
...
988
905
6889109.SQ.FTS.B
,
Zero
Cpn
,
1/31/25
...
1,622
25
6889119.SQ.FTS.B
,
Zero
Cpn
,
1/31/25
...
3,513
72
6891067.SQ.FTS.B
,
Zero
Cpn
,
2/01/25
...
5,566
147
6893023.SQ.FTS.B
,
Zero
Cpn
,
2/02/25
...
14,273
860
6895440.SQ.FTS.B
,
Zero
Cpn
,
2/02/25
...
2,716
2,148
6895588.SQ.FTS.B
,
Zero
Cpn
,
2/02/25
...
10,603
168
6899194.SQ.FTS.B
,
Zero
Cpn
,
2/03/25
...
463
8
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6899300.SQ.FTS.B
,
Zero
Cpn
,
2/03/25
...
$
1,361
$
1,006
6903284.SQ.FTS.B
,
Zero
Cpn
,
2/04/25
...
3,163
44
6904280.SQ.FTS.B
,
Zero
Cpn
,
2/05/25
...
1,731
1,620
6904822.SQ.FTS.B
,
Zero
Cpn
,
2/05/25
...
1,084
339
6904989.SQ.FTS.B
,
Zero
Cpn
,
2/05/25
...
22,426
15,538
6908001.SQ.FTS.B
,
Zero
Cpn
,
2/07/25
...
23,167
426
6908375.SQ.FTS.B
,
Zero
Cpn
,
2/07/25
...
3,730
466
6909057.SQ.FTS.B
,
Zero
Cpn
,
2/08/25
...
887
720
6909141.SQ.FTS.B
,
Zero
Cpn
,
2/08/25
...
19,068
400
6912801.SQ.FTS.B
,
Zero
Cpn
,
2/09/25
...
169
43
6913052.SQ.FTS.B
,
Zero
Cpn
,
2/09/25
...
3,481
2,722
6914678.SQ.FTS.B
,
Zero
Cpn
,
2/09/25
...
3,614
900
6916076.SQ.FTS.B
,
Zero
Cpn
,
2/10/25
...
1,779
1,142
6916173.SQ.FTS.B
,
Zero
Cpn
,
2/10/25
...
512
292
6920447.SQ.FTS.B
,
Zero
Cpn
,
2/11/25
...
24,973
528
6920966.SQ.FTS.B
,
Zero
Cpn
,
2/12/25
...
704
623
6923496.SQ.FTS.B
,
Zero
Cpn
,
2/15/25
...
11,827
8,020
6934329.SQ.FTS.B
,
Zero
Cpn
,
2/17/25
...
12,367
2,547
6934833.SQ.FTS.B
,
Zero
Cpn
,
2/17/25
...
4,744
2,603
6935049.SQ.FTS.B
,
Zero
Cpn
,
2/17/25
...
4,605
1,332
6935755.SQ.FTS.B
,
Zero
Cpn
,
2/17/25
...
1,592
1,468
6935910.SQ.FTS.B
,
Zero
Cpn
,
2/17/25
...
1,646
1,404
6936990.SQ.FTS.B
,
Zero
Cpn
,
2/18/25
...
3,340
43
6937130.SQ.FTS.B
,
Zero
Cpn
,
2/18/25
...
620
13
6938552.SQ.FTS.B
,
Zero
Cpn
,
2/18/25
...
6,233
406
6940432.SQ.FTS.B
,
Zero
Cpn
,
2/18/25
...
41
40
6940544.SQ.FTS.B
,
Zero
Cpn
,
2/18/25
...
1,499
1,010
6941562.SQ.FTS.B
,
Zero
Cpn
,
2/19/25
...
208
152
6941695.SQ.FTS.B
,
Zero
Cpn
,
2/19/25
...
154
110
6941712.SQ.FTS.B
,
Zero
Cpn
,
2/19/25
...
1,002
922
6942251.SQ.FTS.B
,
Zero
Cpn
,
2/20/25
...
3,601
1,022
6943720.SQ.FTS.B
,
Zero
Cpn
,
2/21/25
...
5,972
5,399
6944161.SQ.FTS.B
,
Zero
Cpn
,
2/21/25
...
1,713
209
6946078.SQ.FTS.B
,
Zero
Cpn
,
2/21/25
...
2,300
1,656
6946120.SQ.FTS.B
,
Zero
Cpn
,
2/21/25
...
10,031
296
6946597.SQ.FTS.B
,
Zero
Cpn
,
2/22/25
...
925
821
6946689.SQ.FTS.B
,
Zero
Cpn
,
2/22/25
...
104
97
6962127.SQ.FTS.B
,
Zero
Cpn
,
2/25/25
...
826
630
6962568.SQ.FTS.B
,
Zero
Cpn
,
2/26/25
...
2,123
1,920
6963512.SQ.FTS.B
,
Zero
Cpn
,
2/27/25
...
1,408
1,096
6964654.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
663
10
6966362.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
673
619
6966412.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
2,449
677
6966531.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
3,997
31
6966621.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
1,752
1,111
6966854.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
3,823
2,831
6967741.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
1,982
1,513
6968020.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
633
551
6968103.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
537
122
6969376.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
92
63
6969402.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
2,133
684
6969586.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
1,041
886
6970716.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
4,080
3,315
6971755.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
353
61
6978418.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
1,258
26
6978456.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
799
261
6978952.SQ.FTS.B
,
Zero
Cpn
,
2/28/25
...
51,491
22,275
6981536.SQ.FTS.B
,
Zero
Cpn
,
3/01/25
...
2,690
1,325
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6981964.SQ.FTS.B
,
Zero
Cpn
,
3/01/25
...
$
13,283
$
6,858
6984708.SQ.FTS.B
,
Zero
Cpn
,
3/02/25
...
1,263
16
6986717.SQ.FTS.B
,
Zero
Cpn
,
3/04/25
...
5,828
2,240
6986997.SQ.FTS.B
,
Zero
Cpn
,
3/04/25
...
2,666
2,315
6987569.SQ.FTS.B
,
Zero
Cpn
,
3/05/25
...
3,671
72
6988751.SQ.FTS.B
,
Zero
Cpn
,
3/05/25
...
1,227
1,192
6990602.SQ.FTS.B
,
Zero
Cpn
,
3/06/25
...
290
188
6990771.SQ.FTS.B
,
Zero
Cpn
,
3/06/25
...
972
774
6993089.SQ.FTS.B
,
Zero
Cpn
,
3/06/25
...
1,782
562
7000516.SQ.FTS.B
,
Zero
Cpn
,
3/08/25
...
784
772
7001717.SQ.FTS.B
,
Zero
Cpn
,
3/08/25
...
2,266
2,055
7002839.SQ.FTS.B
,
Zero
Cpn
,
3/09/25
...
1,376
1,337
7003078.SQ.FTS.B
,
Zero
Cpn
,
3/09/25
...
1,861
1,641
7003880.SQ.FTS.B
,
Zero
Cpn
,
3/10/25
...
5,783
5,611
7005638.SQ.FTS.B
,
Zero
Cpn
,
3/11/25
...
2,714
2,363
7006776.SQ.FTS.B
,
Zero
Cpn
,
3/11/25
...
1,933
1,182
7008210.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
697
610
7008486.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
1,169
947
7008548.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
5,665
5,439
7009269.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
22,063
406
7009982.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
1,216
436
7010025.SQ.FTS.B
,
Zero
Cpn
,
3/12/25
...
7,193
7,006
7010932.SQ.FTS.B
,
Zero
Cpn
,
3/13/25
...
227
217
7012593.SQ.FTS.B
,
Zero
Cpn
,
3/13/25
...
1,267
1,037
7014068.SQ.FTS.B
,
Zero
Cpn
,
3/13/25
...
5,025
2,449
7014159.SQ.FTS.B
,
Zero
Cpn
,
3/13/25
...
1,629
990
7018665.SQ.FTS.B
,
Zero
Cpn
,
3/14/25
...
8,215
6,412
7019564.SQ.FTS.B
,
Zero
Cpn
,
3/14/25
...
2,136
1,587
7020809.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
677
652
7020921.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
1,195
665
7021179.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
486
311
7021238.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
2,176
1,930
7021699.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
1,095
716
7021732.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
2,813
2,377
7022730.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
3,666
822
7023270.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
11,499
6,777
7023586.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
3,017
2,276
7023843.SQ.FTS.B
,
Zero
Cpn
,
3/15/25
...
909
695
7024634.SQ.FTS.B
,
Zero
Cpn
,
3/16/25
...
1,292
1,242
7024745.SQ.FTS.B
,
Zero
Cpn
,
3/16/25
...
1,297
889
7025304.SQ.FTS.B
,
Zero
Cpn
,
3/16/25
...
2,115
1,545
7027109.SQ.FTS.B
,
Zero
Cpn
,
3/18/25
...
1,587
1,253
7028537.SQ.FTS.B
,
Zero
Cpn
,
3/18/25
...
66,996
1,125
7029537.SQ.FTS.B
,
Zero
Cpn
,
3/18/25
...
2,176
1,596
7029879.SQ.FTS.B
,
Zero
Cpn
,
3/18/25
...
1,058
977
7031071.SQ.FTS.B
,
Zero
Cpn
,
3/19/25
...
546
475
7031577.SQ.FTS.B
,
Zero
Cpn
,
3/19/25
...
722
532
7032279.SQ.FTS.B
,
Zero
Cpn
,
3/19/25
...
3,698
1,569
7033222.SQ.FTS.B
,
Zero
Cpn
,
3/19/25
...
13,869
6,665
7035266.SQ.FTS.B
,
Zero
Cpn
,
3/20/25
...
2,593
2,217
7035799.SQ.FTS.B
,
Zero
Cpn
,
3/20/25
...
15,890
15,389
7040179.SQ.FTS.B
,
Zero
Cpn
,
3/21/25
...
10,895
5,592
7041176.SQ.FTS.B
,
Zero
Cpn
,
3/21/25
...
1,646
1,414
7043444.SQ.FTS.B
,
Zero
Cpn
,
3/21/25
...
6,529
330
7043824.SQ.FTS.B
,
Zero
Cpn
,
3/22/25
...
773
417
7046836.SQ.FTS.B
,
Zero
Cpn
,
3/22/25
...
2,252
1,660
7046986.SQ.FTS.B
,
Zero
Cpn
,
3/22/25
...
657
446
7050197.SQ.FTS.B
,
Zero
Cpn
,
3/25/25
...
13,025
211
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7050592.SQ.FTS.B
,
Zero
Cpn
,
3/25/25
...
$
912
$
11
7051781.SQ.FTS.B
,
Zero
Cpn
,
3/25/25
...
4,166
3,001
7052092.SQ.FTS.B
,
Zero
Cpn
,
3/25/25
...
16,534
6,221
7052668.SQ.FTS.B
,
Zero
Cpn
,
3/25/25
...
1,948
207
7052795.SQ.FTS.B
,
Zero
Cpn
,
3/26/25
...
2,132
2,082
7054612.SQ.FTS.B
,
Zero
Cpn
,
3/26/25
...
5,385
85
7056251.SQ.FTS.B
,
Zero
Cpn
,
3/27/25
...
344
329
7061323.SQ.FTS.B
,
Zero
Cpn
,
3/28/25
...
34,494
604
7062421.SQ.FTS.B
,
Zero
Cpn
,
3/28/25
...
896
117
7062617.SQ.FTS.B
,
Zero
Cpn
,
3/28/25
...
20,347
316
7062963.SQ.FTS.B
,
Zero
Cpn
,
3/28/25
...
377
349
7065240.SQ.FTS.B
,
Zero
Cpn
,
3/29/25
...
2,451
2,037
7065573.SQ.FTS.B
,
Zero
Cpn
,
3/29/25
...
13,691
325
7067874.SQ.FTS.B
,
Zero
Cpn
,
3/29/25
...
3,756
2,025
7068749.SQ.FTS.B
,
Zero
Cpn
,
3/30/25
...
1,624
1,589
7069240.SQ.FTS.B
,
Zero
Cpn
,
4/01/25
...
447
413
7071000.SQ.FTS.B
,
Zero
Cpn
,
4/02/25
...
645
9
7071207.SQ.FTS.B
,
Zero
Cpn
,
4/02/25
...
351
224
7071948.SQ.FTS.B
,
Zero
Cpn
,
4/02/25
...
1,299
778
7074171.SQ.FTS.B
,
Zero
Cpn
,
4/03/25
...
759
631
7074204.SQ.FTS.B
,
Zero
Cpn
,
4/03/25
...
3,779
2,426
7075529.SQ.FTS.B
,
Zero
Cpn
,
4/03/25
...
3,835
3,809
7077653.SQ.FTS.B
,
Zero
Cpn
,
4/03/25
...
79
56
7080510.SQ.FTS.B
,
Zero
Cpn
,
4/04/25
...
1,437
27
7085620.SQ.FTS.B
,
Zero
Cpn
,
4/05/25
...
8,877
178
7089901.SQ.FTS.B
,
Zero
Cpn
,
4/06/25
...
7,927
198
7090542.SQ.FTS.B
,
Zero
Cpn
,
4/06/25
...
187
187
7091540.SQ.FTS.B
,
Zero
Cpn
,
4/06/25
...
10,017
1,236
7091737.SQ.FTS.B
,
Zero
Cpn
,
4/06/25
...
2,024
1,255
7092933.SQ.FTS.B
,
Zero
Cpn
,
4/07/25
...
1,566
1,173
7094290.SQ.FTS.B
,
Zero
Cpn
,
4/09/25
...
2,793
1,747
7095396.SQ.FTS.B
,
Zero
Cpn
,
4/09/25
...
3,291
1,781
7095850.SQ.FTS.B
,
Zero
Cpn
,
4/10/25
...
227
214
7096738.SQ.FTS.B
,
Zero
Cpn
,
4/10/25
...
2,957
1,520
7096908.SQ.FTS.B
,
Zero
Cpn
,
4/10/25
...
829
814
7098792.SQ.FTS.B
,
Zero
Cpn
,
4/10/25
...
3,756
3,551
7100047.SQ.FTS.B
,
Zero
Cpn
,
4/11/25
...
472
450
7100289.SQ.FTS.B
,
Zero
Cpn
,
4/11/25
...
850
685
7101698.SQ.FTS.B
,
Zero
Cpn
,
4/11/25
...
1,018
245
7102724.SQ.FTS.B
,
Zero
Cpn
,
4/11/25
...
4,584
2,024
7102932.SQ.FTS.B
,
Zero
Cpn
,
4/11/25
...
1,991
338
7105121.SQ.FTS.B
,
Zero
Cpn
,
4/12/25
...
1,174
1,139
7105271.SQ.FTS.B
,
Zero
Cpn
,
4/12/25
...
384
334
7106451.SQ.FTS.B
,
Zero
Cpn
,
4/12/25
...
11,957
3,483
7108839.SQ.FTS.B
,
Zero
Cpn
,
4/13/25
...
6,764
5,701
7109927.SQ.FTS.B
,
Zero
Cpn
,
4/13/25
...
8,573
131
7112255.SQ.FTS.B
,
Zero
Cpn
,
4/14/25
...
2,398
38
7112817.SQ.FTS.B
,
Zero
Cpn
,
4/14/25
...
1,926
233
7112878.SQ.FTS.B
,
Zero
Cpn
,
4/14/25
...
5,134
4,990
7115331.SQ.FTS.B
,
Zero
Cpn
,
4/16/25
...
842
504
7115405.SQ.FTS.B
,
Zero
Cpn
,
4/16/25
...
35,457
4,831
7117443.SQ.FTS.B
,
Zero
Cpn
,
4/16/25
...
719
667
7117675.SQ.FTS.B
,
Zero
Cpn
,
4/17/25
...
189
172
7118029.SQ.FTS.B
,
Zero
Cpn
,
4/17/25
...
1,064
902
7118920.SQ.FTS.B
,
Zero
Cpn
,
4/17/25
...
874
782
7119074.SQ.FTS.B
,
Zero
Cpn
,
4/17/25
...
2,427
1,898
7121272.SQ.FTS.B
,
Zero
Cpn
,
4/17/25
...
2,783
65
7121775.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
1,704
1,686
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7122345.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
$
402
$
56
7122628.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
415
412
7123343.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
12,449
7,891
7123668.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
2,461
2,423
7125329.SQ.FTS.B
,
Zero
Cpn
,
4/18/25
...
1,273
847
7134939.SQ.FTS.B
,
Zero
Cpn
,
4/19/25
...
9,292
222
7137611.SQ.FTS.B
,
Zero
Cpn
,
4/20/25
...
10,916
8,650
7141925.SQ.FTS.B
,
Zero
Cpn
,
4/21/25
...
4,149
3,968
7142834.SQ.FTS.B
,
Zero
Cpn
,
4/22/25
...
930
814
7142919.SQ.FTS.B
,
Zero
Cpn
,
4/22/25
...
1,348
976
7147279.SQ.FTS.B
,
Zero
Cpn
,
4/23/25
...
8,391
5,746
7147597.SQ.FTS.B
,
Zero
Cpn
,
4/23/25
...
1,926
41
7148524.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
2,045
2,033
7148927.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
222
218
7149585.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
618
293
7149622.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
497
465
7150018.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
1,871
1,395
7151063.SQ.FTS.B
,
Zero
Cpn
,
4/24/25
...
562
64
7154719.SQ.FTS.B
,
Zero
Cpn
,
4/25/25
...
6,577
143
7157899.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
1,305
1,270
7157975.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
428
418
7158066.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
1,124
956
7158189.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
1,756
1,136
7160263.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
1,049
544
7160682.SQ.FTS.B
,
Zero
Cpn
,
4/26/25
...
302
272
7160797.SQ.FTS.B
,
Zero
Cpn
,
4/27/25
...
5,999
5,918
7163217.SQ.FTS.B
,
Zero
Cpn
,
4/27/25
...
892
522
7163900.SQ.FTS.B
,
Zero
Cpn
,
4/27/25
...
6,093
3,954
7164006.SQ.FTS.B
,
Zero
Cpn
,
4/27/25
...
294
282
7164127.SQ.FTS.B
,
Zero
Cpn
,
4/27/25
...
910
860
7164193.SQ.FTS.B
,
Zero
Cpn
,
4/28/25
...
5,624
82
7165931.SQ.FTS.B
,
Zero
Cpn
,
4/29/25
...
1,875
274
7165983.SQ.FTS.B
,
Zero
Cpn
,
4/29/25
...
1,292
912
7166695.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
2,610
2,044
7166982.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
819
801
7168044.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
2,096
561
7168326.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
1,692
1,380
7169229.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
1,234
1,204
7169700.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
1,035
801
7171906.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
1,821
798
7172060.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
427
425
7172526.SQ.FTS.B
,
Zero
Cpn
,
4/30/25
...
6,247
1,715
7173881.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
2,005
1,038
7173920.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
1,140
1,022
7174037.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
703
689
7174316.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
5,483
5,311
7175176.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
2,766
2,719
7176634.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
1,458
20
7176646.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
1,231
9
7177033.SQ.FTS.B
,
Zero
Cpn
,
5/01/25
...
18
18
7179318.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
11,376
7,630
7180217.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
2,973
2,920
7180390.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
1,480
1,424
7180807.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
3,021
2,804
7180850.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
2,462
373
7183657.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
889
556
7183698.SQ.FTS.B
,
Zero
Cpn
,
5/02/25
...
1,727
1,704
7184625.SQ.FTS.B
,
Zero
Cpn
,
5/03/25
...
1,958
1,593
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7185255.SQ.FTS.B
,
Zero
Cpn
,
5/03/25
...
$
1,618
$
1,590
7185353.SQ.FTS.B
,
Zero
Cpn
,
5/03/25
...
1,906
1,862
7187279.SQ.FTS.B
,
Zero
Cpn
,
5/03/25
...
1,202
251
7187317.SQ.FTS.B
,
Zero
Cpn
,
5/03/25
...
1,054
518
7187956.SQ.FTS.B
,
Zero
Cpn
,
5/04/25
...
234
232
7191961.SQ.FTS.B
,
Zero
Cpn
,
5/06/25
...
385
236
7192014.SQ.FTS.B
,
Zero
Cpn
,
5/06/25
...
2,796
2,745
7192198.SQ.FTS.B
,
Zero
Cpn
,
5/06/25
...
317
251
7195692.SQ.FTS.B
,
Zero
Cpn
,
5/07/25
...
444
388
7196096.SQ.FTS.B
,
Zero
Cpn
,
5/07/25
...
8,216
100
7197418.SQ.FTS.B
,
Zero
Cpn
,
5/07/25
...
1,715
1,693
7198081.SQ.FTS.B
,
Zero
Cpn
,
5/08/25
...
1,060
831
7198156.SQ.FTS.B
,
Zero
Cpn
,
5/08/25
...
402
338
7200532.SQ.FTS.B
,
Zero
Cpn
,
5/08/25
...
1,402
1,388
7200680.SQ.FTS.B
,
Zero
Cpn
,
5/08/25
...
329
322
7201085.SQ.FTS.B
,
Zero
Cpn
,
5/08/25
...
1,847
1,036
7203214.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
4,792
4,374
7203388.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
58
55
7203631.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
1,674
963
7204614.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
3,537
112
7204933.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
381
78
7205656.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
248
240
7206160.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
12,329
194
7206450.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
2,250
888
7206523.SQ.FTS.B
,
Zero
Cpn
,
5/09/25
...
9,822
9,608
7210379.SQ.FTS.B
,
Zero
Cpn
,
5/10/25
...
1,437
645
7211696.SQ.FTS.B
,
Zero
Cpn
,
5/11/25
...
153
150
7212016.SQ.FTS.B
,
Zero
Cpn
,
5/12/25
...
1,004
819
7212092.SQ.FTS.B
,
Zero
Cpn
,
5/12/25
...
2,306
2,156
7212299.SQ.FTS.B
,
Zero
Cpn
,
5/12/25
...
358
346
7212641.SQ.FTS.B
,
Zero
Cpn
,
5/12/25
...
938
926
7213877.SQ.FTS.B
,
Zero
Cpn
,
5/13/25
...
58
58
7213980.SQ.FTS.B
,
Zero
Cpn
,
5/13/25
...
266
242
7215803.SQ.FTS.B
,
Zero
Cpn
,
5/13/25
...
3,486
2,351
7215930.SQ.FTS.B
,
Zero
Cpn
,
5/13/25
...
13,761
613
7216987.SQ.FTS.B
,
Zero
Cpn
,
5/14/25
...
230
140
7218608.SQ.FTS.B
,
Zero
Cpn
,
5/14/25
...
1,614
1,585
7218697.SQ.FTS.B
,
Zero
Cpn
,
5/14/25
...
3,482
3,427
7218862.SQ.FTS.B
,
Zero
Cpn
,
5/14/25
...
4,385
2,308
7220791.SQ.FTS.B
,
Zero
Cpn
,
5/14/25
...
464
32
7221721.SQ.FTS.B
,
Zero
Cpn
,
5/15/25
...
3,110
2,753
7222451.SQ.FTS.B
,
Zero
Cpn
,
5/15/25
...
8,157
2,302
7223565.SQ.FTS.B
,
Zero
Cpn
,
5/15/25
...
9,133
8,871
7224254.SQ.FTS.B
,
Zero
Cpn
,
5/15/25
...
7,393
4,908
7227987.SQ.FTS.B
,
Zero
Cpn
,
5/16/25
...
1,332
1,252
7229528.SQ.FTS.B
,
Zero
Cpn
,
5/16/25
...
1,169
1,152
7232102.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
6,981
6,682
7232784.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
2,041
623
7233028.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
579
284
7233095.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
507
504
7233166.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
189
152
7234142.SQ.FTS.B
,
Zero
Cpn
,
5/17/25
...
1,080
1,060
7234781.SQ.FTS.B
,
Zero
Cpn
,
5/18/25
...
321
319
7235145.SQ.FTS.B
,
Zero
Cpn
,
5/18/25
...
20,605
395
7237806.SQ.FTS.B
,
Zero
Cpn
,
5/20/25
...
1,179
1,060
7240312.SQ.FTS.B
,
Zero
Cpn
,
5/20/25
...
486
345
7242328.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
851
554
7242370.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
1,075
974
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7243236.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
$
8,746
$
121
7243413.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
2,270
48
7243786.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
10,477
7,473
7243973.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
410
372
7244368.SQ.FTS.B
,
Zero
Cpn
,
5/21/25
...
1,032
336
7247605.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
1,856
22
7248975.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
1,145
1,001
7249354.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
283
261
7249518.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
2,027
25
7249529.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
4,992
4,716
7249679.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
1,048
273
7249940.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
2,030
1,978
7250948.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
817
433
7250987.SQ.FTS.B
,
Zero
Cpn
,
5/22/25
...
3,282
2,063
7251900.SQ.FTS.B
,
Zero
Cpn
,
5/23/25
...
1,646
1,145
7252092.SQ.FTS.B
,
Zero
Cpn
,
5/24/25
...
1,179
1,016
7252834.SQ.FTS.B
,
Zero
Cpn
,
5/24/25
...
4,847
60
7253237.SQ.FTS.B
,
Zero
Cpn
,
5/24/25
...
829
339
7253390.SQ.FTS.B
,
Zero
Cpn
,
5/24/25
...
149
147
7254492.SQ.FTS.B
,
Zero
Cpn
,
5/25/25
...
1,668
1,593
7254658.SQ.FTS.B
,
Zero
Cpn
,
5/25/25
...
3,733
3,616
7254743.SQ.FTS.B
,
Zero
Cpn
,
5/25/25
...
2,563
2,333
7256122.SQ.FTS.B
,
Zero
Cpn
,
5/25/25
...
1,533
195
7256570.SQ.FTS.B
,
Zero
Cpn
,
5/26/25
...
8,505
2,955
7256711.SQ.FTS.B
,
Zero
Cpn
,
5/26/25
...
1,914
779
7256732.SQ.FTS.B
,
Zero
Cpn
,
5/26/25
...
21,091
14,443
7261056.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
3,170
2,111
7262532.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
3,144
677
7262602.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
1,015
545
7263218.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
934
926
7263375.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
597
566
7263388.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
543
537
7263402.SQ.FTS.B
,
Zero
Cpn
,
5/28/25
...
933
821
7264204.SQ.FTS.B
,
Zero
Cpn
,
5/29/25
...
38,498
36,775
7266191.SQ.FTS.B
,
Zero
Cpn
,
5/29/25
...
44,928
29,008
7266972.SQ.FTS.B
,
Zero
Cpn
,
5/29/25
...
12,173
10,282
7267344.SQ.FTS.B
,
Zero
Cpn
,
5/29/25
...
11,923
11,577
7270377.SQ.FTS.B
,
Zero
Cpn
,
5/30/25
...
2,285
2,142
7273383.SQ.FTS.B
,
Zero
Cpn
,
5/30/25
...
6,358
6,237
7273846.SQ.FTS.B
,
Zero
Cpn
,
6/01/25
...
2,268
2,250
7275495.SQ.FTS.B
,
Zero
Cpn
,
6/01/25
...
1,021
757
7275604.SQ.FTS.B
,
Zero
Cpn
,
6/01/25
...
1,547
872
7276341.SQ.FTS.B
,
Zero
Cpn
,
6/01/25
...
588
579
7277031.SQ.FTS.B
,
Zero
Cpn
,
6/01/25
...
30,816
5,892
7278294.SQ.FTS.B
,
Zero
Cpn
,
6/02/25
...
2,444
2,412
7278522.SQ.FTS.B
,
Zero
Cpn
,
6/03/25
...
451
445
7278877.SQ.FTS.B
,
Zero
Cpn
,
6/03/25
...
922
509
7279324.SQ.FTS.B
,
Zero
Cpn
,
6/03/25
...
6,664
6,464
7280027.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
1,097
1,083
7280108.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
478
473
7280873.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
5,514
778
7281210.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
901
16
7281601.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
1,132
10
7282644.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
2,730
2,692
7282811.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
794
13
7282931.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
12,938
12,036
7283495.SQ.FTS.B
,
Zero
Cpn
,
6/04/25
...
1,766
1,730
7284208.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
6,919
6,694
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7284674.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
$
582
$
515
7284693.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
1,404
365
7285398.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
2,213
1,195
7286088.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
10,385
7,155
7286507.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
5,042
3,959
7286703.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
63
60
7287069.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
660
640
7287144.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
1,960
1,136
7287176.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
5,152
84
7287612.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
781
769
7287732.SQ.FTS.B
,
Zero
Cpn
,
6/05/25
...
439
251
7289183.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
2,121
1,412
7289261.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
1,039
318
7289438.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
466
363
7289452.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
1,213
1,176
7290000.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
281
280
7290056.SQ.FTS.B
,
Zero
Cpn
,
6/06/25
...
5,162
85
7297771.SQ.FTS.B
,
Zero
Cpn
,
6/07/25
...
409
359
7297795.SQ.FTS.B
,
Zero
Cpn
,
6/07/25
...
919
875
7299136.SQ.FTS.B
,
Zero
Cpn
,
6/08/25
...
20
20
7299621.SQ.FTS.B
,
Zero
Cpn
,
6/08/25
...
35,878
26,090
7300176.SQ.FTS.B
,
Zero
Cpn
,
6/08/25
...
2,592
1,755
7300300.SQ.FTS.B
,
Zero
Cpn
,
6/08/25
...
718
713
7302047.SQ.FTS.B
,
Zero
Cpn
,
6/09/25
...
1,868
929
7303522.SQ.FTS.B
,
Zero
Cpn
,
6/10/25
...
402
223
7303540.SQ.FTS.B
,
Zero
Cpn
,
6/10/25
...
1,343
983
7305520.SQ.FTS.B
,
Zero
Cpn
,
6/11/25
...
1,626
1,576
7309945.SQ.FTS.B
,
Zero
Cpn
,
6/12/25
...
1,381
909
7314341.SQ.FTS.B
,
Zero
Cpn
,
6/12/25
...
1,739
1,568
7314424.SQ.FTS.B
,
Zero
Cpn
,
6/12/25
...
1,905
1,879
7314543.SQ.FTS.B
,
Zero
Cpn
,
6/12/25
...
4,922
4,437
7314697.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
3,749
45
7316192.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
760
587
7316232.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
16,732
14,277
7316730.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
3,983
3,187
7316842.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
4,406
323
7317981.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
1,570
122
7318018.SQ.FTS.B
,
Zero
Cpn
,
6/13/25
...
6,392
62
7320378.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
4,513
4,434
7321061.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
1,467
1,402
7321344.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
1,674
1,597
7321422.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
160
157
7321802.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
9,071
8,974
7322629.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
6,737
6,564
7323102.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
1,402
206
7323332.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
3,983
2,776
7323718.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
4,254
375
7324318.SQ.FTS.B
,
Zero
Cpn
,
6/14/25
...
576
496
7324925.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
1,334
671
7325539.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
754
751
7325926.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
1,446
1,424
7326332.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
2,083
1,235
7326520.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
231
228
7326822.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
1,967
1,955
7327074.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
2,484
2,455
7327383.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
307
298
7327791.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
8,988
682
7328003.SQ.FTS.B
,
Zero
Cpn
,
6/15/25
...
187
171
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7328426.SQ.FTS.B
,
Zero
Cpn
,
6/16/25
...
$
7,355
$
6,396
7328881.SQ.FTS.B
,
Zero
Cpn
,
6/16/25
...
565
525
7328914.SQ.FTS.B
,
Zero
Cpn
,
6/16/25
...
10,422
994
7329210.SQ.FTS.B
,
Zero
Cpn
,
6/17/25
...
3,315
71
7330422.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
1,181
611
7330937.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
2,858
2,796
7331383.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
157
157
7331562.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
10,141
10,006
7332515.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
1,790
1,653
7332668.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
1,690
1,625
7332947.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
2,728
2,695
7333816.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
4,235
4,065
7334014.SQ.FTS.B
,
Zero
Cpn
,
6/18/25
...
1,044
21
7334863.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
1,799
602
7335081.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
1,470
1,433
7335932.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
8,474
3,602
7336119.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
2,267
2,008
7336277.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
8,083
7,681
7336581.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
49,530
8,018
7337995.SQ.FTS.B
,
Zero
Cpn
,
6/19/25
...
818
506
7338503.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
9,318
9,064
7338883.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
7,252
5,709
7339042.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
1,348
1,321
7339137.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
2,144
2,062
7339223.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
1,556
1,524
7339443.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
2,978
2,940
7339897.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
4,271
3,343
7340770.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
966
909
7340806.SQ.FTS.B
,
Zero
Cpn
,
6/20/25
...
3,592
2,606
7344575.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
4,105
889
7345521.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
2,304
2,029
7345737.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
1,453
1,414
7346393.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
62,612
879
7347498.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
6,681
6,185
7347743.SQ.FTS.B
,
Zero
Cpn
,
6/21/25
...
74
74
7348282.SQ.FTS.B
,
Zero
Cpn
,
6/22/25
...
1,408
1,384
7348505.SQ.FTS.B
,
Zero
Cpn
,
6/22/25
...
667
396
7348520.SQ.FTS.B
,
Zero
Cpn
,
6/22/25
...
462
399
7348949.SQ.FTS.B
,
Zero
Cpn
,
6/22/25
...
10,454
10,022
7351559.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
3,755
3,718
7351914.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
2,635
2,216
7351981.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
17,215
4,518
7352166.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
6,281
6,199
7352449.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
2,037
1,734
7352490.SQ.FTS.B
,
Zero
Cpn
,
6/23/25
...
2,066
1,005
7352850.SQ.FTS.B
,
Zero
Cpn
,
6/24/25
...
12,690
154
7352997.SQ.FTS.B
,
Zero
Cpn
,
6/24/25
...
3,214
3,061
7353063.SQ.FTS.B
,
Zero
Cpn
,
6/24/25
...
7,030
6,265
7353502.SQ.FTS.B
,
Zero
Cpn
,
6/25/25
...
1,480
1,346
7353560.SQ.FTS.B
,
Zero
Cpn
,
6/25/25
...
8,738
7,799
7353648.SQ.FTS.B
,
Zero
Cpn
,
6/25/25
...
1,882
1,855
7353721.SQ.FTS.B
,
Zero
Cpn
,
6/25/25
...
796
644
7353901.SQ.FTS.B
,
Zero
Cpn
,
6/25/25
...
4,759
53
7358898.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
606
597
7359006.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
2,767
711
7359660.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
1,022
1,007
7359726.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
550
235
7359785.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
2,155
2,122
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7360681.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
$
1,335
$
1,329
7360937.SQ.FTS.B
,
Zero
Cpn
,
6/27/25
...
5,354
4,248
7365009.SQ.FTS.B
,
Zero
Cpn
,
6/28/25
...
4,810
4,750
7365309.SQ.FTS.B
,
Zero
Cpn
,
6/28/25
...
2,771
2,727
7365538.SQ.FTS.B
,
Zero
Cpn
,
6/28/25
...
37,441
35,285
7366982.SQ.FTS.B
,
Zero
Cpn
,
6/28/25
...
4,667
4,529
7369711.SQ.FTS.B
,
Zero
Cpn
,
6/29/25
...
1,514
735
7369800.SQ.FTS.B
,
Zero
Cpn
,
6/29/25
...
10,217
9,877
7370367.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
1,817
458
7370470.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
1,330
1,313
7370544.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
1,217
1,198
7370708.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
3,479
3,382
7370851.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
664
357
7371011.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
6,734
6,649
7371485.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
3,505
3,193
7371597.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
1,669
1,626
7371685.SQ.FTS.B
,
Zero
Cpn
,
6/30/25
...
3,480
1,166
7372474.SQ.FTS.B
,
Zero
Cpn
,
7/01/25
...
2,773
2,737
7372921.SQ.FTS.B
,
Zero
Cpn
,
7/02/25
...
1,557
1,449
7374871.SQ.FTS.B
,
Zero
Cpn
,
7/02/25
...
5,617
5,324
7375076.SQ.FTS.B
,
Zero
Cpn
,
7/02/25
...
6,468
1,421
7375135.SQ.FTS.B
,
Zero
Cpn
,
7/02/25
...
10,443
10,303
7375825.SQ.FTS.B
,
Zero
Cpn
,
7/02/25
...
6,501
6,027
7375989.SQ.FTS.B
,
Zero
Cpn
,
7/03/25
...
2,111
2,023
7377517.SQ.FTS.B
,
Zero
Cpn
,
7/03/25
...
2,960
2,876
7377722.SQ.FTS.B
,
Zero
Cpn
,
7/03/25
...
1,329
1,300
7377813.SQ.FTS.B
,
Zero
Cpn
,
7/03/25
...
5,830
61
7377862.SQ.FTS.B
,
Zero
Cpn
,
7/03/25
...
6,349
6,202
7381271.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
383
366
7381311.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
44
44
7381360.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
1,560
1,495
7381648.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
1,138
1,099
7381820.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
4,154
4,084
7382710.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
352
352
7383406.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
2,392
2,215
7383572.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
438
418
7383605.SQ.FTS.B
,
Zero
Cpn
,
7/04/25
...
3,816
3,212
7384304.SQ.FTS.B
,
Zero
Cpn
,
7/05/25
...
3,754
3,710
7384693.SQ.FTS.B
,
Zero
Cpn
,
7/05/25
...
1,183
1,162
7385233.SQ.FTS.B
,
Zero
Cpn
,
7/05/25
...
2,078
2,052
7385373.SQ.FTS.B
,
Zero
Cpn
,
7/05/25
...
814
804
7386559.SQ.FTS.B
,
Zero
Cpn
,
7/05/25
...
234
224
7386935.SQ.FTS.B
,
Zero
Cpn
,
7/06/25
...
1,811
1,782
7387529.SQ.FTS.B
,
Zero
Cpn
,
7/06/25
...
631
538
7387561.SQ.FTS.B
,
Zero
Cpn
,
7/06/25
...
483
320
7387580.SQ.FTS.B
,
Zero
Cpn
,
7/06/25
...
2,091
1,973
7387772.SQ.FTS.B
,
Zero
Cpn
,
7/07/25
...
1,461
1,439
7388169.SQ.FTS.B
,
Zero
Cpn
,
7/07/25
...
4,351
4,110
7388706.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
2,229
2,198
7389300.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
739
730
7389384.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
989
815
7389427.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
8,676
8,382
7389892.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
2,857
2,711
7389966.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
1,358
822
7390869.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
13
13
7391169.SQ.FTS.B
,
Zero
Cpn
,
7/08/25
...
2,378
1,863
7391591.SQ.FTS.B
,
Zero
Cpn
,
7/09/25
...
1,066
1,046
7391674.SQ.FTS.B
,
Zero
Cpn
,
7/09/25
...
11,714
11,439
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7392524.SQ.FTS.B
,
Zero
Cpn
,
7/09/25
...
$
1,602
$
1,453
7393197.SQ.FTS.B
,
Zero
Cpn
,
7/09/25
...
528
514
7394534.SQ.FTS.B
,
Zero
Cpn
,
7/10/25
...
3,380
3,322
7396503.SQ.FTS.B
,
Zero
Cpn
,
7/10/25
...
1,738
1,724
7400645.SQ.FTS.B
,
Zero
Cpn
,
7/11/25
...
5,645
5,395
7401076.SQ.FTS.B
,
Zero
Cpn
,
7/11/25
...
4,234
471
7401342.SQ.FTS.B
,
Zero
Cpn
,
7/11/25
...
12,922
10,445
7401939.SQ.FTS.B
,
Zero
Cpn
,
7/11/25
...
456
182
7402047.SQ.FTS.B
,
Zero
Cpn
,
7/11/25
...
5,039
648
7403592.SQ.FTS.B
,
Zero
Cpn
,
7/12/25
...
14,165
13,969
7405039.SQ.FTS.B
,
Zero
Cpn
,
7/12/25
...
15,037
12,937
7405769.SQ.FTS.B
,
Zero
Cpn
,
7/12/25
...
3,275
3,000
7405917.SQ.FTS.B
,
Zero
Cpn
,
7/12/25
...
2,429
1,968
7406336.SQ.FTS.B
,
Zero
Cpn
,
7/12/25
...
793
788
7407169.SQ.FTS.B
,
Zero
Cpn
,
7/14/25
...
2,025
1,872
7407928.SQ.FTS.B
,
Zero
Cpn
,
7/15/25
...
1,112
1,090
7408312.SQ.FTS.B
,
Zero
Cpn
,
7/15/25
...
3,518
3,213
7408443.SQ.FTS.B
,
Zero
Cpn
,
7/15/25
...
3,324
2,917
7408510.SQ.FTS.B
,
Zero
Cpn
,
7/15/25
...
10,021
9,709
7409173.SQ.FTS.B
,
Zero
Cpn
,
7/16/25
...
1,876
1,845
7409774.SQ.FTS.B
,
Zero
Cpn
,
7/16/25
...
16,914
15,786
7411525.SQ.FTS.B
,
Zero
Cpn
,
7/16/25
...
1,740
1,143
7411864.SQ.FTS.B
,
Zero
Cpn
,
7/17/25
...
1,727
1,662
7412344.SQ.FTS.B
,
Zero
Cpn
,
7/17/25
...
378
167
7412366.SQ.FTS.B
,
Zero
Cpn
,
7/17/25
...
15,021
12,415
7412972.SQ.FTS.B
,
Zero
Cpn
,
7/17/25
...
8,844
8,562
7416105.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
3,745
2,800
7416414.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
5,309
5,121
7417582.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
1,677
1,647
7417924.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
5,269
88
7418257.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
4,944
1,053
7418385.SQ.FTS.B
,
Zero
Cpn
,
7/18/25
...
942
767
7420137.SQ.FTS.B
,
Zero
Cpn
,
7/19/25
...
149
149
7420767.SQ.FTS.B
,
Zero
Cpn
,
7/19/25
...
30,817
28,601
7422020.SQ.FTS.B
,
Zero
Cpn
,
7/19/25
...
2,924
2,895
7422266.SQ.FTS.B
,
Zero
Cpn
,
7/19/25
...
10,746
10,269
7422446.SQ.FTS.B
,
Zero
Cpn
,
7/20/25
...
1,376
22
7422558.SQ.FTS.B
,
Zero
Cpn
,
7/20/25
...
3,469
3,427
7423008.SQ.FTS.B
,
Zero
Cpn
,
7/20/25
...
3,006
2,976
7423387.SQ.FTS.B
,
Zero
Cpn
,
7/21/25
...
1,914
33
7423408.SQ.FTS.B
,
Zero
Cpn
,
7/21/25
...
6,524
2,134
7424195.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
2,708
2,574
7424605.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
1,535
1,513
7425257.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
1,800
1,498
7425417.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
2,511
2,465
7425587.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
11,700
10,734
7426220.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
507
486
7426532.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
1,576
1,560
7426750.SQ.FTS.B
,
Zero
Cpn
,
7/22/25
...
1,835
24
7427323.SQ.FTS.B
,
Zero
Cpn
,
7/23/25
...
412
410
7428683.SQ.FTS.B
,
Zero
Cpn
,
7/23/25
...
2,456
2,425
7428814.SQ.FTS.B
,
Zero
Cpn
,
7/23/25
...
3,586
3,376
7428991.SQ.FTS.B
,
Zero
Cpn
,
7/23/25
...
1,562
1,538
7429263.SQ.FTS.B
,
Zero
Cpn
,
7/23/25
...
97
96
7430504.SQ.FTS.B
,
Zero
Cpn
,
7/24/25
...
68,115
712
7432399.SQ.FTS.B
,
Zero
Cpn
,
7/24/25
...
1,119
604
7432611.SQ.FTS.B
,
Zero
Cpn
,
7/24/25
...
857
600
7433029.SQ.FTS.B
,
Zero
Cpn
,
7/24/25
...
717
711
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7435515.SQ.FTS.B
,
Zero
Cpn
,
7/25/25
...
$
7,603
$
7,549
7437622.SQ.FTS.B
,
Zero
Cpn
,
7/25/25
...
5,896
5,738
7438053.SQ.FTS.B
,
Zero
Cpn
,
7/25/25
...
9,004
2,752
7439796.SQ.FTS.B
,
Zero
Cpn
,
7/26/25
...
3,108
3,072
7440704.SQ.FTS.B
,
Zero
Cpn
,
7/26/25
...
4,791
4,754
7441417.SQ.FTS.B
,
Zero
Cpn
,
7/26/25
...
1,584
1,270
7441508.SQ.FTS.B
,
Zero
Cpn
,
7/26/25
...
1,257
1,040
7441625.SQ.FTS.B
,
Zero
Cpn
,
7/26/25
...
28,393
16,088
7442151.SQ.FTS.B
,
Zero
Cpn
,
7/27/25
...
601
594
7442906.SQ.FTS.B
,
Zero
Cpn
,
7/28/25
...
4,906
4,770
7443079.SQ.FTS.B
,
Zero
Cpn
,
7/28/25
...
1,790
710
7443195.SQ.FTS.B
,
Zero
Cpn
,
7/28/25
...
4,287
4,243
7445512.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
2,435
2,376
7445619.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
954
946
7445822.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
1,806
1,789
7446298.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
10,590
10,380
7446590.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
9,088
7,756
7446852.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
2,868
2,663
7447048.SQ.FTS.B
,
Zero
Cpn
,
7/29/25
...
43,825
371
7447752.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
1,624
1,600
7447855.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
1,355
1,348
7448225.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
145
143
7448426.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
4,305
4,252
7449061.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
2,502
2,480
7450028.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
3,087
2,992
7450140.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
6,207
6,091
7450390.SQ.FTS.B
,
Zero
Cpn
,
7/30/25
...
27,926
25,395
7452711.SQ.FTS.B
,
Zero
Cpn
,
7/31/25
...
2,453
2,395
7452755.SQ.FTS.B
,
Zero
Cpn
,
7/31/25
...
1,035
1,015
7452824.SQ.FTS.B
,
Zero
Cpn
,
7/31/25
...
1,779
1,760
7453872.SQ.FTS.B
,
Zero
Cpn
,
7/31/25
...
32,926
32,047
7457087.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
1,329
1,310
7457423.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
1,463
1,442
7457614.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
6,139
6,047
7458111.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
5,709
5,400
7458520.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
126
119
7459076.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
1,045
638
7459098.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
3,423
3,330
7459816.SQ.FTS.B
,
Zero
Cpn
,
8/01/25
...
6,836
4,035
7459894.SQ.FTS.B
,
Zero
Cpn
,
8/02/25
...
1,099
1,076
7461359.SQ.FTS.B
,
Zero
Cpn
,
8/02/25
...
10,885
70
7461517.SQ.FTS.B
,
Zero
Cpn
,
8/02/25
...
718
508
7462079.SQ.FTS.B
,
Zero
Cpn
,
8/02/25
...
21,490
20,941
7462768.SQ.FTS.B
,
Zero
Cpn
,
8/03/25
...
8,154
6,266
7462898.SQ.FTS.B
,
Zero
Cpn
,
8/03/25
...
1,231
1,207
7462934.SQ.FTS.B
,
Zero
Cpn
,
8/03/25
...
929
924
7463948.SQ.FTS.B
,
Zero
Cpn
,
8/04/25
...
4,840
4,703
7464907.SQ.FTS.B
,
Zero
Cpn
,
8/05/25
...
1,300
1,260
7464949.SQ.FTS.B
,
Zero
Cpn
,
8/05/25
...
27,333
22,371
7466260.SQ.FTS.B
,
Zero
Cpn
,
8/05/25
...
24,979
10,330
7466947.SQ.FTS.B
,
Zero
Cpn
,
8/05/25
...
17,136
16,844
7468408.SQ.FTS.B
,
Zero
Cpn
,
8/05/25
...
3,844
3,769
7468484.SQ.FTS.B
,
Zero
Cpn
,
8/06/25
...
27,792
5,468
7469866.SQ.FTS.B
,
Zero
Cpn
,
8/06/25
...
1,343
1,299
7470030.SQ.FTS.B
,
Zero
Cpn
,
8/06/25
...
2,010
1,935
7471403.SQ.FTS.B
,
Zero
Cpn
,
8/06/25
...
3,422
3,338
7471663.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
799
783
7471745.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
8,925
8,781
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7472446.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
$
1,142
$
1,128
7472573.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
728
719
7473257.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
2,503
2,450
7473372.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
20,137
19,395
7473943.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
3,102
2,798
7474010.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
2,315
2,294
7474126.SQ.FTS.B
,
Zero
Cpn
,
8/07/25
...
8,249
8,146
7476687.SQ.FTS.B
,
Zero
Cpn
,
8/08/25
...
10,342
7,532
7477182.SQ.FTS.B
,
Zero
Cpn
,
8/08/25
...
4,293
2,893
7478257.SQ.FTS.B
,
Zero
Cpn
,
8/08/25
...
11,412
11,156
7478938.SQ.FTS.B
,
Zero
Cpn
,
8/08/25
...
21,080
20,682
7479654.SQ.FTS.B
,
Zero
Cpn
,
8/08/25
...
10,921
10,654
7480253.SQ.FTS.B
,
Zero
Cpn
,
8/09/25
...
977
946
7481366.SQ.FTS.B
,
Zero
Cpn
,
8/09/25
...
237
210
7481641.SQ.FTS.B
,
Zero
Cpn
,
8/09/25
...
948
902
7482265.SQ.FTS.B
,
Zero
Cpn
,
8/09/25
...
2,208
2,178
7482438.SQ.FTS.B
,
Zero
Cpn
,
8/09/25
...
2,074
1,961
7483269.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
322
258
7483349.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
2,003
1,785
7483407.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
2,858
2,823
7483714.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
635
347
7483732.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
2,300
2,258
7483805.SQ.FTS.B
,
Zero
Cpn
,
8/10/25
...
2,960
2,910
7483959.SQ.FTS.B
,
Zero
Cpn
,
8/11/25
...
2,817
552
7484313.SQ.FTS.B
,
Zero
Cpn
,
8/11/25
...
302
248
7484428.SQ.FTS.B
,
Zero
Cpn
,
8/11/25
...
5,482
5,347
7485181.SQ.FTS.B
,
Zero
Cpn
,
8/12/25
...
1,200
1,081
7485578.SQ.FTS.B
,
Zero
Cpn
,
8/12/25
...
4,939
4,867
7486526.SQ.FTS.B
,
Zero
Cpn
,
8/12/25
...
26,580
26,183
7488366.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
1,355
1,283
7488630.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
1,248
921
7488673.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
805
581
7488800.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
444
440
7488878.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
704
643
7489102.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
8,156
7,702
7489736.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
1,121
1,106
7490121.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
1,799
1,735
7490203.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
823
708
7491313.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
5,316
5,257
7491690.SQ.FTS.B
,
Zero
Cpn
,
8/13/25
...
5,188
5,160
7492035.SQ.FTS.B
,
Zero
Cpn
,
8/14/25
...
622
396
7492175.SQ.FTS.B
,
Zero
Cpn
,
8/14/25
...
798
781
7492252.SQ.FTS.B
,
Zero
Cpn
,
8/14/25
...
6,060
5,976
7495008.SQ.FTS.B
,
Zero
Cpn
,
8/14/25
...
6,399
5,911
7495374.SQ.FTS.B
,
Zero
Cpn
,
8/14/25
...
1,746
1,722
7500219.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
1,835
1,759
7500281.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
3,831
3,771
7500824.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
27,055
1,314
7501613.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
835
184
7502190.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
2,577
2,499
7502263.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
752
716
7502317.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
3,623
3,565
7502710.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
192
188
7502769.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
1,237
749
7502801.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
5,312
5,205
7503088.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
9,265
8,789
7503516.SQ.FTS.B
,
Zero
Cpn
,
8/15/25
...
2,885
2,631
7504617.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
8,431
8,188
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7505386.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
$
6,487
$
6,300
7506060.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
3,518
3,431
7506281.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
2,184
2,144
7506554.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
300
274
7506594.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
6,776
6,679
7507205.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
1,218
1,202
7507322.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
5,078
4,996
7507572.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
2,041
2,014
7507743.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
23,858
22,633
7508686.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
2,765
2,674
7508779.SQ.FTS.B
,
Zero
Cpn
,
8/16/25
...
790
778
7508856.SQ.FTS.B
,
Zero
Cpn
,
8/17/25
...
3,854
93
7508964.SQ.FTS.B
,
Zero
Cpn
,
8/17/25
...
570
560
7509099.SQ.FTS.B
,
Zero
Cpn
,
8/17/25
...
1,042
850
7509474.SQ.FTS.B
,
Zero
Cpn
,
8/17/25
...
1,759
1,720
7509541.SQ.FTS.B
,
Zero
Cpn
,
8/17/25
...
3,598
3,413
7510035.SQ.FTS.B
,
Zero
Cpn
,
8/18/25
...
3,019
2,930
7510213.SQ.FTS.B
,
Zero
Cpn
,
8/18/25
...
3,868
3,749
7510466.SQ.FTS.B
,
Zero
Cpn
,
8/18/25
...
1,218
1,200
7511241.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
2,760
1,560
7511303.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
7,109
5,813
7511467.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
9,505
9,241
7511680.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
5,184
415
7511795.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
2,165
419
7511854.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
1,210
1,131
7511878.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
14,709
14,514
7512365.SQ.FTS.B
,
Zero
Cpn
,
8/19/25
...
5,319
5,024
7512993.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
6,253
6,127
7513399.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
3,467
3,352
7513718.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
541
541
7514196.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
2,521
2,459
7514547.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
2,755
2,687
7514844.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
218
198
7514860.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
343
219
7514863.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
9,340
871
7514967.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
1,609
1,484
7515017.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
4,376
4,330
7515221.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
4,317
4,121
7515335.SQ.FTS.B
,
Zero
Cpn
,
8/20/25
...
11,956
11,778
7516507.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
4,317
4,167
7516671.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
448
444
7517810.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
572
557
7518078.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
8,591
7,598
7518283.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
2,411
2,111
7518436.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
1,529
1,459
7518534.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
143
142
7518584.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
22,299
21,970
7519559.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
1,171
1,098
7519968.SQ.FTS.B
,
Zero
Cpn
,
8/21/25
...
10,143
6,651
7522180.SQ.FTS.B
,
Zero
Cpn
,
8/22/25
...
1,823
1,792
7522961.SQ.FTS.B
,
Zero
Cpn
,
8/22/25
...
5,798
5,709
7525637.SQ.FTS.B
,
Zero
Cpn
,
8/22/25
...
459
446
7526085.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
940
909
7526613.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
1,375
1,327
7526839.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
1,229
1,209
7527110.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
650
500
7527171.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
603
560
7527301.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
7,218
6,569
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7527856.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
$
3,028
$
2,977
7528668.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
11,574
10,897
7529157.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
1,447
1,424
7529577.SQ.FTS.B
,
Zero
Cpn
,
8/23/25
...
1,410
1,321
7529702.SQ.FTS.B
,
Zero
Cpn
,
8/24/25
...
228
224
7530051.SQ.FTS.B
,
Zero
Cpn
,
8/24/25
...
835
831
7530194.SQ.FTS.B
,
Zero
Cpn
,
8/24/25
...
3,673
3,640
7530426.SQ.FTS.B
,
Zero
Cpn
,
8/25/25
...
2,286
2,058
7530736.SQ.FTS.B
,
Zero
Cpn
,
8/25/25
...
1,360
1,342
7530845.SQ.FTS.B
,
Zero
Cpn
,
8/25/25
...
2,695
2,152
7530927.SQ.FTS.B
,
Zero
Cpn
,
8/25/25
...
578
565
7531562.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
959
882
7531999.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
5,627
4,385
7532836.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
2,455
2,426
7533068.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
2,765
2,542
7533921.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
14,758
10,572
7534275.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
6,810
6,566
7535311.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
1,685
1,520
7535396.SQ.FTS.B
,
Zero
Cpn
,
8/26/25
...
794
747
7535779.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
3,761
2,136
7535909.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
3,456
3,410
7536158.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
787
730
7536219.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
760
746
7536262.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
5,756
5,604
7537469.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
553
533
7537580.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
25,953
1,013
7538114.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
913
899
7538280.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
427
424
7538310.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
7,440
7,370
7539394.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
1,849
1,799
7539738.SQ.FTS.B
,
Zero
Cpn
,
8/27/25
...
20,217
5,694
7540113.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
1,021
1,006
7540193.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
14,217
13,895
7541133.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
2,154
2,111
7541258.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
3,135
2,904
7541385.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
2,356
2,326
7542074.SQ.FTS.B
,
Zero
Cpn
,
8/28/25
...
34,067
28,219
7546105.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
1,097
517
7546564.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
12,790
12,575
7547669.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
156
148
7549453.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
1,464
1,144
7549987.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
1,052
707
7550201.SQ.FTS.B
,
Zero
Cpn
,
8/29/25
...
5,057
4,962
7551251.SQ.FTS.B
,
Zero
Cpn
,
9/01/25
...
6,429
6,099
7551712.SQ.FTS.B
,
Zero
Cpn
,
9/01/25
...
1,728
1,707
7552166.SQ.FTS.B
,
Zero
Cpn
,
9/01/25
...
717
116
7552433.SQ.FTS.B
,
Zero
Cpn
,
9/01/25
...
2,124
2,083
7554148.SQ.FTS.B
,
Zero
Cpn
,
9/01/25
...
3,312
3,244
7554507.SQ.FTS.B
,
Zero
Cpn
,
9/02/25
...
2,235
2,203
7554615.SQ.FTS.B
,
Zero
Cpn
,
9/02/25
...
1,309
1,293
7554960.SQ.FTS.B
,
Zero
Cpn
,
9/02/25
...
3,388
3,335
7555163.SQ.FTS.B
,
Zero
Cpn
,
9/02/25
...
820
811
7555284.SQ.FTS.B
,
Zero
Cpn
,
9/02/25
...
20
19
7555786.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
3,383
3,318
7555959.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
727
701
7555981.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
804
784
7556035.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
4,485
4,394
7556272.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
463
455
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7556297.SQ.FTS.B
,
Zero
Cpn
,
9/03/25
...
$
844
$
827
7557715.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
345
343
7558126.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
1,512
1,444
7558287.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
8,835
8,725
7559634.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
3,051
2,949
7559825.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
3,261
3,172
7560015.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
1,932
1,364
7560334.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
4,440
4,352
7560792.SQ.FTS.B
,
Zero
Cpn
,
9/04/25
...
859
854
7560995.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
4,763
4,689
7561322.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
2,574
2,016
7562114.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
462
411
7562185.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
7,181
6,756
7562656.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
10,974
10,763
7563273.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
159
157
7563329.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
1,793
1,755
7563524.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
7,575
5,926
7563704.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
6,074
5,980
7563968.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
925
920
7564132.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
3,766
3,639
7564378.SQ.FTS.B
,
Zero
Cpn
,
9/05/25
...
5,393
5,311
7565275.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
80
80
7565348.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
3,230
2,136
7565451.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
1,671
1,597
7565580.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
2,790
1,947
7565802.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
3,241
3,171
7566096.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
3,589
3,512
7566458.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
8,515
7,020
7566752.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
20,497
20,105
7567428.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
26,959
25,016
7568398.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
3,330
3,020
7568612.SQ.FTS.B
,
Zero
Cpn
,
9/06/25
...
1,590
1,562
7570947.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
809
793
7571045.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
1,713
1,581
7571507.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,989
1,628
7571567.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
5,609
5,489
7571666.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
746
740
7571785.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,636
2,585
7571980.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,173
2,152
7572328.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,484
2,446
7572483.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
1,051
1,027
7572609.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
11,856
11,404
7573480.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
4,138
2,470
7573640.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
3,544
1,520
7573684.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
481
446
7573724.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,086
1,840
7573894.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
1,421
1,355
7573972.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
5,371
1,148
7574028.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
6,309
5,637
7574592.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
833
794
7574624.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,025
1,758
7574668.SQ.FTS.B
,
Zero
Cpn
,
9/07/25
...
2,292
2,251
7574768.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
3,157
3,112
7574863.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
1,806
1,780
7574932.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
3,121
2,910
7575095.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
15,994
15,709
7576257.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
2,735
2,693
7576536.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
8,617
7,387
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7577627.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
$
4,169
$
3,956
7577744.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
11,174
10,388
7577980.SQ.FTS.B
,
Zero
Cpn
,
9/08/25
...
8,339
7,961
7578409.SQ.FTS.B
,
Zero
Cpn
,
9/09/25
...
10,780
9,963
7578761.SQ.FTS.B
,
Zero
Cpn
,
9/09/25
...
2,359
2,326
7578877.SQ.FTS.B
,
Zero
Cpn
,
9/09/25
...
452
178
7578899.SQ.FTS.B
,
Zero
Cpn
,
9/09/25
...
7,510
7,289
7579408.SQ.FTS.B
,
Zero
Cpn
,
9/09/25
...
4,195
4,055
7579524.SQ.FTS.B
,
Zero
Cpn
,
9/10/25
...
3,056
2,966
7579649.SQ.FTS.B
,
Zero
Cpn
,
9/10/25
...
1,031
979
7579942.SQ.FTS.B
,
Zero
Cpn
,
9/10/25
...
3,293
3,197
7580066.SQ.FTS.B
,
Zero
Cpn
,
9/10/25
...
1,167
314
7580089.SQ.FTS.B
,
Zero
Cpn
,
9/10/25
...
13,831
13,459
7580704.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
1,716
1,655
7580830.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
9,705
7,881
7581484.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
4,007
3,824
7581718.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
402
396
7581762.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
411
378
7581869.SQ.FTS.B
,
Zero
Cpn
,
9/11/25
...
1,493
723
7584365.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,116
882
7584410.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
271
269
7584915.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,205
1,190
7585083.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,424
1,401
7585157.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
2,405
2,390
7585837.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
4,359
4,227
7586206.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,145
714
7586228.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,225
1,207
7586278.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
8,025
2,013
7586669.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,331
1,292
7586876.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,453
1,426
7586914.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
9,130
1,570
7587033.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
1,640
1,630
7587289.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
14,277
14,106
7587881.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
966
621
7587899.SQ.FTS.B
,
Zero
Cpn
,
9/12/25
...
560
490
7588140.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
3,032
2,270
7588356.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
3,028
2,955
7589411.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
3,232
3,183
7590230.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
2,697
2,488
7590339.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
1,447
1,415
7590419.SQ.FTS.B
,
Zero
Cpn
,
9/13/25
...
21,397
12,816
7593174.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
268
260
7593394.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
3,367
3,274
7593442.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
1,177
1,163
7593939.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
5,439
5,329
7594426.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
80
79
7594477.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
1,260
724
7594732.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
4,863
4,716
7594949.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
1,221
1,164
7595019.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
4,414
4,289
7595222.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
1,719
1,695
7595525.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
309
300
7595549.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
8,292
8,111
7596003.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
3,356
3,191
7596084.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
8,019
2,655
7596235.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
14,335
13,216
7596687.SQ.FTS.B
,
Zero
Cpn
,
9/14/25
...
7,162
6,987
7597130.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
4,566
4,472
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7597921.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
$
1,260
$
1,184
7598019.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
22,706
22,289
7598834.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
4,352
4,129
7598949.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
31,934
30,724
7599917.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
625
350
7599921.SQ.FTS.B
,
Zero
Cpn
,
9/15/25
...
1,983
1,881
7600104.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
3,189
1,498
7600162.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
7,879
7,559
7600338.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
1,110
1,100
7600486.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
645
7
7600492.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
718
618
7600506.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
6,462
6,363
7600919.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
957
921
7600945.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
461
400
7600965.SQ.FTS.B
,
Zero
Cpn
,
9/16/25
...
2,710
2,593
7601044.SQ.FTS.B
,
Zero
Cpn
,
9/17/25
...
1,010
984
7601096.SQ.FTS.B
,
Zero
Cpn
,
9/17/25
...
12,879
7,225
7601310.SQ.FTS.B
,
Zero
Cpn
,
9/17/25
...
1,642
1,606
7601351.SQ.FTS.B
,
Zero
Cpn
,
9/17/25
...
3,273
3,222
7602249.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
4,414
4,217
7602494.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
2,210
25
7603156.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
3,069
2,971
7603343.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
1,395
1,280
7603430.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
6,166
3,728
7603519.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
3,793
3,254
7603790.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
34,650
33,481
7604673.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
162
161
7604755.SQ.FTS.B
,
Zero
Cpn
,
9/18/25
...
1,132
1,099
7605863.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
13,766
13,466
7607807.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
6,524
6,316
7607956.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
616
610
7608006.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
1,913
1,873
7608067.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
10,171
9,961
7608442.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
5,919
5,397
7608678.SQ.FTS.B
,
Zero
Cpn
,
9/19/25
...
491
476
7609206.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
986
946
7610842.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
5,228
5,047
7610985.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
4,126
4,090
7611158.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
11,806
11,446
7611380.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
2,005
1,984
7611532.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
2,223
2,182
7611874.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
1,903
1,850
7611918.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
1,833
1,789
7611951.SQ.FTS.B
,
Zero
Cpn
,
9/20/25
...
9,684
9,157
7615540.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
5,329
4,897
7615760.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
474
468
7616238.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
24,707
24,067
7616813.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
4,741
4,644
7617694.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
1,129
1,120
7617771.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
8,518
4,989
7617891.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
517
508
7617942.SQ.FTS.B
,
Zero
Cpn
,
9/21/25
...
2,823
2,124
7618116.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
7,040
6,626
7618751.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
3,234
3,203
7619264.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
2,286
2,246
7619409.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
3,111
2,974
7619619.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
6,172
5,980
7619852.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
861
841
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7620023.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
$
1,718
$
1,685
7620106.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
18,820
18,346
7620858.SQ.FTS.B
,
Zero
Cpn
,
9/22/25
...
22,361
15,291
7621343.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
564
541
7621364.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
360
354
7621404.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
5,060
2,917
7621483.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
5,329
5,174
7621926.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
1,441
1,363
7621974.SQ.FTS.B
,
Zero
Cpn
,
9/23/25
...
8,612
8,410
7622213.SQ.FTS.B
,
Zero
Cpn
,
9/24/25
...
4,244
4,173
7622362.SQ.FTS.B
,
Zero
Cpn
,
9/24/25
...
1,037
1,030
7622539.SQ.FTS.B
,
Zero
Cpn
,
9/24/25
...
1,113
1,093
7622578.SQ.FTS.B
,
Zero
Cpn
,
9/24/25
...
5,051
4,525
7623389.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
1,474
712
7623413.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
328
170
7623477.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
826
799
7623539.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
1,120
1,102
7623781.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
1,952
762
7623850.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
8,205
7,416
7624159.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
860
78
7624359.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
7,091
6,693
7625499.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
16,619
7,195
7625822.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
7,085
6,772
7626239.SQ.FTS.B
,
Zero
Cpn
,
9/25/25
...
2,741
2,491
7626558.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
1,004
860
7627979.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
15,339
14,157
7628789.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
5,324
1,765
7628898.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
5,966
5,880
7629134.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
4,696
203
7629259.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
5,396
4,908
7629674.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
7,987
264
7629810.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
9,852
9,071
7630072.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
821
587
7630082.SQ.FTS.B
,
Zero
Cpn
,
9/26/25
...
3,963
3,923
7630314.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
3,428
3,337
7630481.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
11,930
9,565
7631333.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
40,044
39,132
7632995.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
1,466
1,401
7633043.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
1,354
1,334
7633131.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
767
745
7633326.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
2,001
1,572
7633381.SQ.FTS.B
,
Zero
Cpn
,
9/27/25
...
2,735
2,332
7635782.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
662
86
7635814.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
1,957
1,927
7635934.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
2,665
2,636
7636149.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
2,491
2,358
7636317.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
9,571
9,435
7637876.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
593
575
7637896.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
5,873
5,829
7639049.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
982
942
7639102.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
4,620
4,567
7639378.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
1,602
1,112
7639571.SQ.FTS.B
,
Zero
Cpn
,
9/28/25
...
1,019
1,013
7639746.SQ.FTS.B
,
Zero
Cpn
,
9/29/25
...
63,645
8,581
7642548.SQ.FTS.B
,
Zero
Cpn
,
9/29/25
...
9,314
9,021
7642824.SQ.FTS.B
,
Zero
Cpn
,
9/29/25
...
5,308
5,080
7643054.SQ.FTS.B
,
Zero
Cpn
,
9/29/25
...
365
228
7643072.SQ.FTS.B
,
Zero
Cpn
,
9/29/25
...
5,622
5,517
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7643469.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
$
566
$
549
7643615.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
212
156
7643762.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
1,391
1,327
7644065.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
1,590
1,569
7644260.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
6,221
5,872
7644633.SQ.FTS.B
,
Zero
Cpn
,
9/30/25
...
1,594
1,568
7647200.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
6,207
5,907
7647642.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
1,093
995
7647696.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
11,385
141
7648077.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
6,098
901
7648385.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
3,314
3,273
7648614.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
2,955
2,876
7648786.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
1,990
1,852
7648903.SQ.FTS.B
,
Zero
Cpn
,
10/01/25
..
2,075
1,900
7649638.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
831
703
7649681.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
3,136
2,652
7650429.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
15,509
15,085
7651905.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
2,337
2,312
7652109.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
906
856
7652131.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
6,413
6,319
7652505.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
1,453
1,393
7652780.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
11,135
10,556
7653235.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
3,331
2,476
7653323.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
959
951
7653409.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
1,932
1,910
7653564.SQ.FTS.B
,
Zero
Cpn
,
10/02/25
..
3,724
3,631
7653915.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
4,286
4,123
7654130.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
732
504
7654148.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
2,399
2,368
7654369.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
702
512
7654433.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
1,494
780
7654781.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
10,934
9,443
7655252.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
865
842
7655297.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
1,273
1,248
7655370.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
2,330
2,278
7655459.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
226
225
7655546.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
1,728
1,180
7657189.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
2,889
2,789
7657424.SQ.FTS.B
,
Zero
Cpn
,
10/03/25
..
16,664
16,210
7659813.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
1,038
1,002
7659927.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
3,553
3,058
7660160.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
2,416
2,384
7660365.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
5,977
5,775
7660674.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
4,116
3,977
7661015.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
10,450
10,229
7661638.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
4,366
4,277
7661865.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
4,916
4,868
7662211.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
931
925
7662373.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
4,309
1,474
7663069.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
43
38
7663077.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
6,765
6,671
7663380.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
5,036
4,957
7663563.SQ.FTS.B
,
Zero
Cpn
,
10/04/25
..
23,489
20,086
7664319.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
2,160
2,103
7664455.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
4,472
4,407
7664758.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
6,006
5,908
7665242.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
3,774
3,670
7665432.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
3,697
3,526
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7665632.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
$
1,227
$
1,121
7665675.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
203
200
7665704.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
2,733
2,180
7665808.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
2,375
2,297
7665909.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
2,845
2,740
7666201.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
3,063
2,983
7666517.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
6,625
6,321
7666816.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
632
609
7667831.SQ.FTS.B
,
Zero
Cpn
,
10/05/25
..
8,226
7,939
7667947.SQ.FTS.B
,
Zero
Cpn
,
10/06/25
..
843
796
7668132.SQ.FTS.B
,
Zero
Cpn
,
10/06/25
..
3,142
2,240
7668578.SQ.FTS.B
,
Zero
Cpn
,
10/06/25
..
4,284
3,309
7668726.SQ.FTS.B
,
Zero
Cpn
,
10/06/25
..
574
488
7668750.SQ.FTS.B
,
Zero
Cpn
,
10/06/25
..
12,466
12,159
7669246.SQ.FTS.B
,
Zero
Cpn
,
10/07/25
..
3,654
3,607
7669502.SQ.FTS.B
,
Zero
Cpn
,
10/07/25
..
639
633
7669547.SQ.FTS.B
,
Zero
Cpn
,
10/07/25
..
1,190
783
7670335.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
10,779
9,201
7671175.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
1,441
1,186
7671234.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
7,311
7,174
7671635.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
7,520
7,431
7672190.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
1,944
1,899
7672346.SQ.FTS.B
,
Zero
Cpn
,
10/08/25
..
3,901
3,850
7673615.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
864
782
7673719.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
8,612
7,717
7674082.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
1,717
1,693
7674361.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
3,749
2,788
7674523.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
6,180
3,165
7674874.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
5,530
5,467
7675618.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
38,440
985
7676193.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
34,527
29,639
7677032.SQ.FTS.B
,
Zero
Cpn
,
10/09/25
..
2,626
2,586
7677244.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
1,626
1,336
7677646.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
3,983
3,921
7678169.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
2,225
2,168
7678350.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
9,238
9,059
7678705.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
3,809
3,732
7678778.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
22,947
22,476
7679612.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
2,925
2,770
7679945.SQ.FTS.B
,
Zero
Cpn
,
10/10/25
..
28,128
27,534
7682366.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
5,376
4,751
7682516.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
2,233
2,060
7683369.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
5,324
5,150
7683662.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
3,679
3,616
7684028.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
15,355
15,006
7684473.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
4,412
4,338
7684725.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
1,681
1,657
7684838.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
3,461
3,306
7684952.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
2,617
2,505
7685071.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
2,388
2,324
7685236.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
3,984
1,629
7685365.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
3,436
3,364
7685628.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
1,809
1,691
7685699.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
968
552
7685711.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
1,737
1,715
7685777.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
383
379
7685923.SQ.FTS.B
,
Zero
Cpn
,
10/11/25
..
12,813
12,145
7686056.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
1,302
1,278
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7686203.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
$
3,467
$
3,412
7686580.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
1,101
1,077
7686665.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
2,104
1,742
7686897.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
3,254
3,183
7687342.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
677
669
7688416.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
3,188
3,115
7688661.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
3,407
3,361
7688956.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
760
754
7689134.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
2,867
2,750
7689200.SQ.FTS.B
,
Zero
Cpn
,
10/12/25
..
37,140
36,182
7689292.SQ.FTS.B
,
Zero
Cpn
,
10/13/25
..
860
631
7689612.SQ.FTS.B
,
Zero
Cpn
,
10/13/25
..
16,495
14,019
7690536.SQ.FTS.B
,
Zero
Cpn
,
10/14/25
..
4,686
4,602
7690710.SQ.FTS.B
,
Zero
Cpn
,
10/14/25
..
1,744
1,614
7690892.SQ.FTS.B
,
Zero
Cpn
,
10/14/25
..
3,984
3,919
7691291.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
1,351
1,328
7691453.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
981
966
7691995.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
1,771
1,745
7692298.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
5,028
4,912
7692685.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
12,624
12,460
7693519.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
3,904
3,850
7693720.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
2,347
2,270
7693783.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
11,907
8,904
7694250.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
1,693
1,404
7694365.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
2,418
2,387
7694501.SQ.FTS.B
,
Zero
Cpn
,
10/15/25
..
1,726
1,585
7694583.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
4,362
4,041
7694762.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
3,979
3,841
7695245.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
306
301
7695312.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
755
735
7695636.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
784
740
7696123.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
1,887
1,208
7696300.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
5,341
3,309
7696383.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
1,087
1,076
7696444.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
2,186
2,140
7697124.SQ.FTS.B
,
Zero
Cpn
,
10/16/25
..
33,205
31,773
7697594.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
2,661
2,555
7697755.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
859
509
7697783.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
2,871
2,692
7697948.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
6,198
3,520
7698568.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
339
262
7698813.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
1,267
1,245
7698854.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
14,832
14,704
7699767.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
1,570
1,533
7699933.SQ.FTS.B
,
Zero
Cpn
,
10/17/25
..
24,056
16,011
7701610.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
527
518
7701707.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
971
861
7702153.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
5,623
3,786
7702511.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
4,247
4,146
7702967.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
1,435
1,422
7703086.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
1,624
1,481
7703746.SQ.FTS.B
,
Zero
Cpn
,
10/18/25
..
27,343
26,906
7704453.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
4,655
4,570
7705176.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
1,080
1,061
7705244.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
1,664
1,643
7705496.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
2,109
2,078
7705594.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
1,978
1,792
7705651.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
26,598
21,217
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7706459.SQ.FTS.B
,
Zero
Cpn
,
10/19/25
..
$
1,148
$
1,112
7706764.SQ.FTS.B
,
Zero
Cpn
,
10/20/25
..
1,152
707
7706803.SQ.FTS.B
,
Zero
Cpn
,
10/20/25
..
3,532
2,936
7706853.SQ.FTS.B
,
Zero
Cpn
,
10/20/25
..
4,482
4,361
7706959.SQ.FTS.B
,
Zero
Cpn
,
10/20/25
..
1,878
1,639
7707051.SQ.FTS.B
,
Zero
Cpn
,
10/20/25
..
2,950
2,839
7707274.SQ.FTS.B
,
Zero
Cpn
,
10/21/25
..
92
90
7707383.SQ.FTS.B
,
Zero
Cpn
,
10/21/25
..
485
474
7707960.SQ.FTS.B
,
Zero
Cpn
,
10/22/25
..
961
942
7708060.SQ.FTS.B
,
Zero
Cpn
,
10/22/25
..
22,251
21,236
7709068.SQ.FTS.B
,
Zero
Cpn
,
10/22/25
..
31,247
29,564
7710178.SQ.FTS.B
,
Zero
Cpn
,
10/23/25
..
2,401
2,356
7710309.SQ.FTS.B
,
Zero
Cpn
,
10/23/25
..
1,966
1,827
7710406.SQ.FTS.B
,
Zero
Cpn
,
10/23/25
..
11,966
11,795
7711243.SQ.FTS.B
,
Zero
Cpn
,
10/23/25
..
2,173
2,078
7712838.SQ.FTS.B
,
Zero
Cpn
,
10/23/25
..
41,094
40,359
7714659.SQ.FTS.B
,
Zero
Cpn
,
10/24/25
..
6,561
4,704
7722184.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
10,243
10,037
7722642.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
4,847
4,811
7723031.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
1,682
1,608
7723131.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
4,315
3,655
7723221.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
4,184
4,101
7723432.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
814
804
7723470.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
1,048
995
7723494.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
1,275
1,269
7723677.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
2,615
2,498
7723780.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
1,505
1,470
7723938.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
12,288
12,083
7724410.SQ.FTS.B
,
Zero
Cpn
,
10/25/25
..
6,519
6,413
7724737.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,309
1,290
7724834.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,256
1,233
7724896.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
20,486
17,713
7725398.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
3,637
1,604
7725481.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
7,606
7,380
7725739.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
595
572
7725775.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
3,004
2,930
7725893.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
4,269
4,202
7726167.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
672
398
7726185.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,114
1,017
7726734.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
8,213
6,483
7726890.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
5,118
2,232
7726969.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
2,040
2,002
7727028.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
8,192
8,023
7727858.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
29,489
28,472
7728564.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
7,135
6,976
7728766.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
5,450
5,239
7728874.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,588
1,531
7728951.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
3,849
3,764
7729059.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
13,362
1,706
7729325.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
954
907
7729346.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,931
1,864
7729412.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
667
590
7729433.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
22,086
21,645
7730107.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
7,200
7,025
7730334.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
1,953
1,916
7730390.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
4,709
4,602
7730466.SQ.FTS.B
,
Zero
Cpn
,
10/26/25
..
2,026
1,963
7730551.SQ.FTS.B
,
Zero
Cpn
,
10/27/25
..
3,444
3,392
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7730621.SQ.FTS.B
,
Zero
Cpn
,
10/27/25
..
$
14,262
$
13,956
7732561.SQ.FTS.B
,
Zero
Cpn
,
10/28/25
..
5,945
4,255
7732860.SQ.FTS.B
,
Zero
Cpn
,
10/28/25
..
441
429
7734507.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
4,115
4,040
7735985.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
2,250
2,057
7736223.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
1,065
686
7736266.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
3,984
3,803
7736455.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
23,243
20,183
7737403.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
4,167
4,108
7738028.SQ.FTS.B
,
Zero
Cpn
,
10/29/25
..
3,036
2,984
7738357.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
36,309
34,848
7739867.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
198
195
7739895.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
1,525
1,480
7740608.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
2,131
2,104
7740921.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
13,400
10,820
7741160.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
1,973
291
7741721.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
12,446
12,188
7742204.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
1,701
1,689
7742386.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
92
86
7742551.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
1,041
1,015
7742607.SQ.FTS.B
,
Zero
Cpn
,
10/30/25
..
3,341
3,308
7742677.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
8,841
7,072
7742967.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
3,718
55
7744056.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
1,541
1,518
7744447.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
9,592
9,380
7745102.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
10,403
10,107
7745356.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
2,289
2,234
7745413.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
1,092
1,019
7745454.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
4,651
3,921
7745541.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
2,863
2,510
7745617.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
5,746
4,549
7745711.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
32,225
31,560
7746621.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
2,157
2,122
7746711.SQ.FTS.B
,
Zero
Cpn
,
11/01/25
..
1,612
1,531
7749358.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
635
537
7749381.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
956
390
7749435.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
833
823
7749516.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
2,242
2,129
7749671.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
3,938
3,873
7749876.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
10,263
10,044
7750547.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
11,579
10,073
7750861.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
2,124
2,068
7750977.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
264
249
7751021.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
18,360
17,736
7751602.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
5,624
5,357
7751779.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
1,524
335
7751810.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
373
369
7751880.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
4,241
4,142
7752060.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
615
600
7752094.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
2,876
2,752
7752171.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
1,749
1,699
7752226.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
2,135
2,059
7752402.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
20,428
20,080
7753269.SQ.FTS.B
,
Zero
Cpn
,
11/02/25
..
4,186
4,061
7753428.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
16,216
16,057
7755060.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
11,859
7,923
7755332.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
783
772
7755383.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
2,624
2,474
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7755489.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
$
3,514
$
3,033
7755574.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
2,742
2,680
7755718.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
1,732
1,278
7755761.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
8,935
8,361
7756169.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
7,889
7,715
7756479.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
7,505
6,956
7756617.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
2,697
1,862
7756989.SQ.FTS.B
,
Zero
Cpn
,
11/03/25
..
12,573
12,249
7757553.SQ.FTS.B
,
Zero
Cpn
,
11/04/25
..
4,840
4,621
7757725.SQ.FTS.B
,
Zero
Cpn
,
11/04/25
..
708
699
7757758.SQ.FTS.B
,
Zero
Cpn
,
11/04/25
..
4,294
4,178
7757965.SQ.FTS.B
,
Zero
Cpn
,
11/04/25
..
9,652
9,256
7758825.SQ.FTS.B
,
Zero
Cpn
,
11/05/25
..
7,795
7,677
7759248.SQ.FTS.B
,
Zero
Cpn
,
11/05/25
..
2,635
2,547
7759333.SQ.FTS.B
,
Zero
Cpn
,
11/05/25
..
6,204
6,071
7759579.SQ.FTS.B
,
Zero
Cpn
,
11/05/25
..
895
864
7759614.SQ.FTS.B
,
Zero
Cpn
,
11/05/25
..
3,853
3,781
7760192.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
1,792
1,755
7760300.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
2,595
2,540
7760635.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
6,103
5,994
7761614.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
6,393
5,085
7761795.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
763
727
7761819.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
184
183
7761854.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
11,254
10,423
7762221.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
377
373
7762261.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
1,057
1,037
7762378.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
10,177
9,881
7762887.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
2,489
2,449
7763048.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
2,000
1,981
7763863.SQ.FTS.B
,
Zero
Cpn
,
11/06/25
..
441
315
7763978.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
3,057
2,676
7764093.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,545
174
7764120.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,145
245
7764356.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
2,507
2,477
7764605.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
7,935
7,569
7764884.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
5,532
4,872
7765192.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
4,901
4,488
7765499.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
2,207
1,841
7765591.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
7,221
5,923
7765925.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
20,106
19,201
7766396.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
2,910
2,809
7766481.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
12,718
12,115
7766785.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
680
628
7766817.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
894
834
7766845.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
3,464
3,387
7766993.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
16,732
15,954
7767411.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,717
851
7767464.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,676
1,645
7767567.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,806
1,658
7767615.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
6,463
6,202
7767834.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,952
1,909
7767923.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
1,408
1,376
7767974.SQ.FTS.B
,
Zero
Cpn
,
11/07/25
..
13,704
12,321
7768040.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
1,941
1,626
7768155.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,323
2,268
7768268.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,255
2,198
7768355.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
4,379
4,296
7768791.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
4,940
4,726
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7769040.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
$
2,601
$
2,240
7769154.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,191
1,968
7769300.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,049
2,007
7769430.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
3,681
3,204
7769490.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,523
686
7769539.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
94
93
7769552.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
3,532
2,593
7769643.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
1,249
514
7770018.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
1,964
1,719
7770045.SQ.FTS.B
,
Zero
Cpn
,
11/08/25
..
2,009
1,987
7773805.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
4,581
4,429
7774047.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
4,057
4,000
7774316.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
1,831
1,795
7774424.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
236
231
7774612.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
6,233
6,079
7775074.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
2,709
2,495
7775215.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
3,491
3,381
7775480.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
1,187
1,152
7775543.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
8,860
8,737
7775962.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
19,411
19,012
7776623.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
832
822
7776723.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
8,098
7,143
7776922.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
2,013
1,959
7776984.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
7,899
7,700
7777288.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
6,333
6,160
7777604.SQ.FTS.B
,
Zero
Cpn
,
11/09/25
..
32,641
31,967
7777984.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
892
875
7778191.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
14,815
14,097
7778978.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
11,943
11,569
7779549.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
9,736
9,445
7779892.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
405
401
7779968.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
710
657
7780011.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
10,252
9,901
7780597.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
20,995
18,608
7781183.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
12,217
1,637
7781376.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
1,501
1,424
7781421.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
3,967
3,916
7781560.SQ.FTS.B
,
Zero
Cpn
,
11/10/25
..
1,654
1,615
7781647.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
2,625
2,548
7781728.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
3,308
3,209
7781843.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
1,013
439
7781854.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
1,639
1,591
7781904.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
2,248
2,212
7782087.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
4,031
3,893
7782207.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
2,837
1,303
7782258.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
1,879
1,836
7782424.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
712
633
7782462.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
419
387
7782479.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
1,198
874
7782513.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
1,726
627
7782558.SQ.FTS.B
,
Zero
Cpn
,
11/11/25
..
945
916
7782795.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
1,301
1,269
7782836.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
1,154
31
7782916.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
1,011
999
7782965.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
3,915
3,827
7783169.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
8,575
8,359
7783430.SQ.FTS.B
,
Zero
Cpn
,
11/12/25
..
807
786
7783989.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
2,358
2,324
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7784085.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
$
469
$
447
7784267.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
1,304
1,281
7784392.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
1,787
1,666
7784728.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
11,497
4,082
7785371.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
5,487
5,394
7785674.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
7,974
7,783
7786042.SQ.FTS.B
,
Zero
Cpn
,
11/13/25
..
7,212
5,450
7787838.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
2,663
1,701
7788202.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
7,795
7,605
7788521.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
2,951
2,796
7789390.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
2,190
2,118
7789481.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
6,573
6,163
7789742.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
3,694
3,597
7789847.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
9,613
9,302
7790161.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
5,951
3,094
7790524.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
2,565
1,651
7790579.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
9,503
9,101
7790707.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
1,121
1,067
7790733.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
3,137
3,096
7790830.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
13,334
12,728
7791005.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
183
174
7791011.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
829
808
7791025.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
7,199
5,531
7791073.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
726
710
7791085.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
7,755
7,442
7791321.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
677
621
7791339.SQ.FTS.B
,
Zero
Cpn
,
11/14/25
..
1,561
1,537
7791405.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
6,235
96
7791517.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
1,205
1,170
7791568.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
2,467
2,350
7791672.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
729
673
7791708.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
7,074
3,006
7792442.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
752
718
7792817.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
5,732
5,630
7793111.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
911
892
7793136.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
7,017
6,124
7793326.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
7,441
7,361
7794198.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
4,555
3,177
7794291.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
2,015
1,809
7794434.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
6,526
61
7794564.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
774
483
7794575.SQ.FTS.B
,
Zero
Cpn
,
11/15/25
..
17,650
17,251
7797035.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
4,202
4,122
7797269.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
4,074
4,021
7797570.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
4,967
4,614
7797828.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
1,259
1,214
7798052.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
5,497
5,407
7798327.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
1,408
1,301
7798363.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
24,831
24,398
7799195.SQ.FTS.B
,
Zero
Cpn
,
11/16/25
..
3,020
2,668
7800563.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
10,023
8,802
7800731.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
1,959
1,927
7800792.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
1,713
1,614
7800921.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
1,973
1,911
7800953.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
4,384
4,247
7801170.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
3,438
3,382
7801520.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
4,565
4,417
7801830.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
8,475
8,212
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7802126.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
$
7,535
$
6,185
7803721.SQ.FTS.B
,
Zero
Cpn
,
11/17/25
..
5,441
5,372
7803966.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
2,166
2,131
7804088.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
15,046
14,567
7804461.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
10,492
10,113
7804699.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
2,136
2,091
7804764.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
2,745
2,693
7804849.SQ.FTS.B
,
Zero
Cpn
,
11/18/25
..
2,774
2,729
7804953.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
3,453
3,387
7805035.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
15,079
14,712
7805378.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
1,974
1,913
7805442.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
854
830
7805453.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
6,903
6,571
7805584.SQ.FTS.B
,
Zero
Cpn
,
11/19/25
..
2,016
1,520
7805760.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
1,213
1,151
7805798.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
3,575
3,465
7806188.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
2,137
2,096
7806470.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
643
610
7806537.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
2,939
2,734
7806672.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
22,857
22,052
7807588.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
1,014
944
7807614.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
18,347
18,098
7808559.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
2,341
2,278
7808746.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
18,026
15,967
7809197.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
409
406
7809229.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
257
256
7809323.SQ.FTS.B
,
Zero
Cpn
,
11/20/25
..
1,255
1,231
7809532.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
913
907
7809697.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
3,508
3,376
7809800.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
5,898
5,680
7810149.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
723
710
7810235.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,342
1,318
7810514.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,907
2,860
7810773.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
830
552
7810803.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,015
1,899
7810902.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,138
1,107
7811029.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,885
1,708
7811201.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
13,291
12,974
7811692.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,807
2,703
7811796.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,091
1,006
7811856.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,893
1,847
7811911.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
225
223
7811927.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,131
1,037
7811957.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
4,416
3,628
7812101.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,591
1,459
7812202.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
3,970
3,843
7812319.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,073
1,992
7812395.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
959
925
7812431.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,440
1,403
7812497.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
5,038
4,863
7812624.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
4,725
4,663
7812737.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,893
2,751
7812879.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,192
1,991
7812943.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
1,105
704
7812973.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
2,477
2,388
7813074.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
3,561
3,382
7813160.SQ.FTS.B
,
Zero
Cpn
,
11/21/25
..
8,807
8,541
7813280.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
2,122
1,336
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7813463.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
$
745
$
728
7813545.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
2,882
1,343
7813617.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
9,222
8,158
7814136.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
3,900
3,622
7814375.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
2,419
2,301
7814581.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
3,858
3,766
7814720.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
8,287
8,092
7815015.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
5,835
4,089
7815167.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
16,575
15,933
7815795.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
49,574
47,236
7816821.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
3,508
2,095
7816946.SQ.FTS.B
,
Zero
Cpn
,
11/22/25
..
17,404
5,011
7821100.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
1,399
1,365
7821159.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
10,506
10,128
7821693.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
3,731
3,552
7821943.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
4,934
4,739
7822313.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
2,945
2,833
7822474.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
3,787
3,301
7822598.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
7,927
6,948
7822921.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
5,903
5,821
7823187.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
17,676
16,798
7823831.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
2,312
2,263
7824062.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
1,618
1,597
7824243.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
1,368
1,333
7824272.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
2,596
2,562
7824428.SQ.FTS.B
,
Zero
Cpn
,
11/23/25
..
20,169
19,883
7825440.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
550
541
7825590.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
26,019
24,393
7826201.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
6,224
5,695
7826487.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
3,461
3,329
7826745.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
16,388
13,548
7827137.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
15,741
15,185
7827650.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
22,071
21,613
7828592.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
4,098
3,633
7829173.SQ.FTS.B
,
Zero
Cpn
,
11/24/25
..
11,263
10,613
7829326.SQ.FTS.B
,
Zero
Cpn
,
11/25/25
..
16,748
16,377
7829892.SQ.FTS.B
,
Zero
Cpn
,
11/25/25
..
3,937
3,792
7830023.SQ.FTS.B
,
Zero
Cpn
,
11/25/25
..
13,703
13,169
7830429.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
1,897
1,825
7830496.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
754
591
7830511.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
487
481
7830539.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
3,078
2,704
7830792.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
2,160
2,081
7830867.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
6,162
5,988
7831063.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
5,081
4,971
7831277.SQ.FTS.B
,
Zero
Cpn
,
11/26/25
..
3,535
3,463
7831708.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
3,027
2,109
7831778.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
857
846
7831916.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
883
575
7831942.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
774
726
7832037.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
13,278
12,576
7832297.SQ.FTS.B
,
Zero
Cpn
,
11/27/25
..
2,448
2,334
7833045.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
1,883
1,724
7833266.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
3,993
3,927
7833710.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
7,667
7,470
7834147.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
331
294
7834170.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
443
291
7834727.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
8,130
7,738
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7835021.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
$
959
$
941
7835086.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
1,971
1,884
7835215.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
429
417
7835280.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
3,528
3,453
7835424.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
17,516
3,973
7835773.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
4,421
3,813
7835887.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
1,602
1,560
7835976.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
639
631
7836024.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
2,533
2,447
7836267.SQ.FTS.B
,
Zero
Cpn
,
11/28/25
..
1,074
1,035
7836558.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
16,197
15,639
7836996.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
4,702
3,400
7837132.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
1,674
1,655
7837446.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
7,347
7,140
7837744.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
3,549
3,291
7837905.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
8,743
6,711
7838086.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
10,886
10,576
7838445.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
30,671
29,422
7839137.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
2,423
2,123
7839256.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
1,863
1,813
7839579.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
1,024
967
7839803.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
13,757
13,372
7840090.SQ.FTS.B
,
Zero
Cpn
,
11/29/25
..
1,654
1,604
7842361.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
8,548
8,485
7843746.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,441
1,259
7844442.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
731
717
7844476.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
7,427
4,059
7844585.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,613
1,594
7844680.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
30,832
29,632
7845424.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,603
1,576
7845511.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
2,090
1,837
7845571.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
2,122
1,999
7845841.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
2,915
1,904
7845868.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
2,992
2,863
7845907.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
22,834
21,704
7846405.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
16,261
15,719
7846535.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,174
1,139
7846609.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
495
454
7846633.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
5,625
2,191
7846814.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
13,443
13,148
7847485.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,300
1,282
7847708.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
2,571
2,350
7847801.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
1,049
994
7847818.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
9,570
8,876
7848334.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
13,165
12,959
7848760.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
3,934
3,709
7848895.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
929
878
7848928.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
774
761
7848953.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
16,394
15,631
7849403.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
11,121
10,582
7849584.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
537
524
7849623.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
25,843
23,689
7850227.SQ.FTS.B
,
Zero
Cpn
,
11/30/25
..
5,145
4,846
7850420.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
7,613
5,682
7850616.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
10,137
9,892
7850878.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
4,134
4,069
7851001.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
11,143
10,865
7851295.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
1,041
1,023
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7851376.SQ.FTS.B
,
Zero
Cpn
,
12/01/25
..
$
3,955
$
3,849
7851469.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
3,422
3,210
7851550.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
188
183
7851559.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
1,307
1,255
7851585.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
2,003
1,433
7851705.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
1,435
693
7851948.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
1,914
1,860
7852147.SQ.FTS.B
,
Zero
Cpn
,
12/02/25
..
10,428
10,012
7852710.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
5,974
5,718
7852848.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
1,286
1,081
7852930.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
767
757
7852976.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
2,188
2,139
7853143.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
3,577
3,426
7853428.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
5,986
5,831
7853709.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
1,503
1,281
7853790.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
3,401
3,146
7853918.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
2,630
2,594
7854047.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
6,412
5,245
7854215.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
2,272
1,914
7855419.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
7,741
7,593
7855676.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
13,800
13,244
7856314.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
2,021
1,942
7856381.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
1,059
1,037
7856432.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
5,463
5,177
7856526.SQ.FTS.B
,
Zero
Cpn
,
12/03/25
..
4,438
4,305
7856673.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
12,255
11,857
7857128.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
19,791
19,090
7857953.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
9,004
8,842
7858294.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
2,847
2,818
7858486.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
814
142
7858494.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
4,227
3,296
7858606.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
11,300
10,765
7858914.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
555
536
7858954.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
11,767
11,338
7859202.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
1,658
1,612
7859227.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
2,604
2,454
7859288.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
18,192
17,407
7859727.SQ.FTS.B
,
Zero
Cpn
,
12/04/25
..
42,166
40,781
7861344.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
2,768
2,605
7861428.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
3,557
2,419
7861597.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
554
547
7861877.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
11,895
11,693
7862288.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
16,398
16,119
7862743.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
9,452
9,129
7862954.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
1,331
1,302
7863110.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
37,754
36,433
7863944.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
1,218
1,159
7864015.SQ.FTS.B
,
Zero
Cpn
,
12/05/25
..
20,961
19,952
7866569.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
1,797
1,759
7866654.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
634
609
7866671.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
5,469
5,107
7866837.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
4,599
4,472
7867018.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
417
384
7867041.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
2,765
2,729
7867381.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
10,339
7,389
7867762.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
977
954
7867807.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
2,092
1,986
7868085.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
281
278
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7868093.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
$
12,018
$
10,982
7868297.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
4,370
4,292
7868490.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
1,551
1,520
7868520.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
1,124
1,112
7868573.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
6,808
6,461
7868765.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
5,339
5,122
7868908.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
10,539
10,019
7869186.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
2,908
2,412
7869257.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
4,105
4,020
7869614.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
2,020
1,959
7869657.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
2,888
2,824
7869739.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
827
799
7870001.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
921
884
7870033.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
5,579
4,944
7870141.SQ.FTS.B
,
Zero
Cpn
,
12/06/25
..
6,141
6,022
7870300.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
7,069
6,866
7870506.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
5,243
5,096
7870701.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
5,009
4,875
7870903.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
4,561
4,368
7871198.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
4,368
4,309
7871505.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
5,227
5,091
7871648.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
3,812
3,742
7871823.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
1,367
1,345
7871902.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
1,893
1,823
7871970.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
6,317
6,129
7872111.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
2,820
2,732
7872278.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
8,191
7,761
7872422.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
2,454
2,393
7872484.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
7,754
7,585
7872661.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
843
815
7872677.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
32,092
30,799
7873459.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
5,827
5,773
7873748.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
2,148
2,074
7873829.SQ.FTS.B
,
Zero
Cpn
,
12/07/25
..
10,301
10,097
7873952.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
8,053
7,751
7874099.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
3,138
2,980
7874170.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
2,764
2,462
7874215.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
12,254
12,034
7874634.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
1,687
1,636
7874673.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
8,974
8,444
7874816.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
1,602
1,545
7874855.SQ.FTS.B
,
Zero
Cpn
,
12/08/25
..
14,602
13,339
7875298.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
4,301
2,462
7875351.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
3,121
3,070
7875450.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
4,487
4,373
7875569.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
7,184
6,882
7875686.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
2,392
2,324
7875728.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
1,277
1,248
7875752.SQ.FTS.B
,
Zero
Cpn
,
12/09/25
..
13,287
12,064
7876109.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
6,064
5,724
7876414.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
1,691
1,415
7876499.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
887
863
7876546.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
16,570
14,667
7877110.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
2,579
2,542
7877194.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
1,614
1,389
7877250.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
21,073
20,573
7877855.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
919
905
7877970.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
2,308
2,234
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7878012.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
$
1,139
$
1,055
7878057.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
5,595
5,113
7878218.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
6,671
6,461
7878383.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
10,534
8,423
7878622.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
3,715
3,555
7878765.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
2,611
2,561
7878861.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
5,144
5,014
7879086.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
1,167
1,051
7879438.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
754
737
7879467.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
2,634
2,538
7879537.SQ.FTS.B
,
Zero
Cpn
,
12/10/25
..
4,834
4,725
7879826.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
1,839
1,778
7879941.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
2,740
2,671
7880092.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
1,066
1,002
7880155.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
1,544
171
7880173.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
5,795
5,606
7880743.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
12,915
12,424
7881209.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
2,085
2,035
7881341.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
2,122
2,104
7881492.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
1,367
1,060
7881518.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
6,438
6,146
7881788.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
10,082
9,835
7882093.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
357
349
7882098.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
23,338
22,805
7882524.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
714
627
7882536.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
2,472
2,362
7882617.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
10,608
10,155
7882947.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
10,633
7,215
7883146.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
7,837
3,844
7883342.SQ.FTS.B
,
Zero
Cpn
,
12/11/25
..
9,886
9,722
7883523.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
4,174
4,090
7883696.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
3,476
3,342
7883777.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
726
717
7883810.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
7,263
6,934
7883978.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
4,499
4,385
7885147.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
1,178
1,129
7885173.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
1,075
958
7885206.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
145
142
7885225.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
1,049
926
7885255.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
9,653
9,394
7885639.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
41,712
27,827
7886251.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
17,885
4,904
7886682.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
2,957
2,849
7886726.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
2,886
2,814
7886840.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
511
152
7886872.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
1,121
1,065
7886913.SQ.FTS.B
,
Zero
Cpn
,
12/12/25
..
7,319
6,807
7889235.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,645
2,604
7889459.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,221
2,151
7889527.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
5,271
5,152
7889782.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
5,791
5,128
7889998.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
4,417
1,827
7890338.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,630
2,495
7890461.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
1,145
1,097
7890498.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
4,112
4,000
7890643.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
1,095
1,080
7890762.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
8,662
8,389
7891042.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
52,455
50,219
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7892128.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
$
386
$
345
7892136.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,668
2,609
7892192.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
6,072
5,520
7892374.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,167
1,904
7892396.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
3,235
3,141
7892457.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
3,675
3,565
7892543.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
6,404
6,134
7892808.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
2,959
2,647
7892891.SQ.FTS.B
,
Zero
Cpn
,
12/13/25
..
1,364
1,327
7893084.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
1,168
1,060
7893153.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
1,286
1,253
7893196.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
1,242
1,185
7893635.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
3,151
2,966
7893834.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
1,388
1,356
7893956.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
18,011
17,234
7894598.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
4,321
4,166
7894731.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
3,700
3,434
7894822.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
5,945
5,300
7894910.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
2,708
2,692
7895266.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
4,743
4,401
7895307.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
20,024
12,058
7895588.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
5,455
5,346
7895723.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
4,584
4,461
7895825.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
14,731
13,547
7896117.SQ.FTS.B
,
Zero
Cpn
,
12/14/25
..
48,238
46,273
7898689.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
13,200
10,380
7898884.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
5,104
4,885
7898977.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
4,431
4,109
7899066.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
13,056
12,508
7899279.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
2,847
2,176
7899340.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
811
785
7899357.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
17,623
16,582
7899676.SQ.FTS.B
,
Zero
Cpn
,
12/15/25
..
184
181
7899725.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
4,194
4,040
7899791.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
3,516
3,403
7899843.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
2,139
1,584
7899874.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
6,984
6,017
7899976.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
12,556
12,193
7900211.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
1,260
917
7900247.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
4,487
4,396
7900358.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
6,954
6,693
7900482.SQ.FTS.B
,
Zero
Cpn
,
12/16/25
..
6,297
6,230
7900789.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
5,269
4,756
7901133.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
4,726
4,476
7901344.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
9,476
9,196
7901651.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
4,536
4,343
7901791.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
41,878
40,976
7902820.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
4,959
4,811
7903865.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
2,403
2,332
7903964.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
4,361
4,267
7904167.SQ.FTS.B
,
Zero
Cpn
,
12/17/25
..
1,582
1,241
7904290.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
24,497
22,510
7904941.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
1,644
1,562
7904988.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
1,288
1,252
7905405.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
3,451
3,331
7905542.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
831
806
7905602.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
2,453
2,417
7905723.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
5,044
4,824
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7905838.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
$
29,811
$
28,206
7906380.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
5,612
5,462
7906502.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
3,722
3,579
7906583.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
406
397
7906618.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
1,073
1,037
7906625.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
29,006
27,914
7907391.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
2,599
2,515
7907473.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
344
340
7907498.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
5,022
4,753
7907624.SQ.FTS.B
,
Zero
Cpn
,
12/18/25
..
40,314
36,971
7909850.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
3,668
3,584
7910087.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
10,724
10,375
7910267.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
885
844
7910282.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
12,416
11,741
7910474.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
3,683
3,543
7910537.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
17,583
17,221
7910892.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
2,949
2,862
7910935.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
4,683
4,557
7910994.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
1,292
1,262
7911019.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
2,057
2,010
7911054.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
2,187
2,119
7911087.SQ.FTS.B
,
Zero
Cpn
,
12/19/25
..
15,441
14,504
7911482.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
13,530
13,065
7912235.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
54,778
52,133
7913638.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
11,321
10,880
7913838.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,812
1,588
7913888.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,551
1,482
7913933.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,317
474
7913967.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,375
1,348
7913994.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,679
1,315
7914015.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
2,232
1,762
7914075.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,723
1,649
7914153.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
5,956
1,026
7914226.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
1,104
1,010
7914260.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
2,513
2,408
7914317.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
4,098
3,982
7914440.SQ.FTS.B
,
Zero
Cpn
,
12/20/25
..
16,163
15,625
7914885.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
7,560
7,265
7915212.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
3,926
3,772
7915420.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
12,706
12,382
7915978.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
36,680
15,066
7916641.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
11,174
10,564
7916789.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
15,977
14,238
7917504.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
8,865
8,657
7917745.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
1,249
1,235
7917792.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
6,606
5,163
7918050.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
5,432
5,316
7918176.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
5,228
5,067
7918420.SQ.FTS.B
,
Zero
Cpn
,
12/21/25
..
36,580
34,097
7918868.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
4,092
3,955
7919078.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
3,024
2,945
7919163.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
2,478
1,960
7919189.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
2,377
2,248
7919230.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
1,617
1,572
7919264.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
7,118
6,941
7919418.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
1,592
1,560
7919471.SQ.FTS.B
,
Zero
Cpn
,
12/22/25
..
11,716
11,403
7919979.SQ.FTS.B
,
Zero
Cpn
,
12/23/25
..
1,482
1,373
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7920013.SQ.FTS.B
,
Zero
Cpn
,
12/23/25
..
$
10,739
$
10,313
7920291.SQ.FTS.B
,
Zero
Cpn
,
12/23/25
..
8,248
7,966
7920499.SQ.FTS.B
,
Zero
Cpn
,
12/23/25
..
5,947
5,791
7920634.SQ.FTS.B
,
Zero
Cpn
,
12/23/25
..
7,904
7,715
7921120.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
4,348
4,146
7921307.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,511
1,452
7921377.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
3,870
3,754
7921653.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,883
1,757
7921818.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
3,086
2,943
7922053.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,951
1,746
7922196.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
3,701
3,596
7922324.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,646
1,604
7922389.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
5,348
5,204
7922573.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
2,820
2,780
7922714.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,262
941
7922735.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,936
1,818
7922783.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
7,115
6,948
7923000.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
3,750
3,606
7923129.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
14,214
12,483
7923488.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
2,214
2,165
7923587.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
100
98
7923632.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
3,010
2,918
7923729.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
2,118
2,053
7923767.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
5,442
5,318
7923973.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
1,233
869
7924029.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
16,301
15,590
7924387.SQ.FTS.B
,
Zero
Cpn
,
12/24/25
..
4,571
4,492
7924602.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
18,257
17,418
7925127.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
502
485
7925165.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
4,412
4,238
7925268.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
11,025
10,493
7925726.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
2,529
2,440
7925893.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
4,412
4,325
7926089.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
1,775
1,733
7926169.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
1,904
1,829
7926228.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
17,864
17,215
7926597.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
7,318
6,542
7926714.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
1,298
1,268
7926733.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
2,078
2,008
7926878.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
42,615
41,453
7927748.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
2,367
2,245
7927799.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
17,183
15,730
7928118.SQ.FTS.B
,
Zero
Cpn
,
12/25/25
..
18,016
16,819
7928341.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
3,418
3,374
7928472.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
22,657
21,803
7929420.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
2,523
1,725
7929462.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
13,255
12,937
7930175.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
2,165
975
7930226.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
1,226
1,185
7930369.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
4,536
4,361
7930578.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
3,891
3,770
7930770.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
1,905
1,860
7930804.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
6,608
6,425
7931221.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
13,044
12,711
7931571.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
4,118
4,031
7931741.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
1,148
1,125
7931768.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
5,295
5,168
7931961.SQ.FTS.B
,
Zero
Cpn
,
12/26/25
..
9,781
2,047
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7934195.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
$
17,704
$
17,007
7934790.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
5,046
4,882
7935066.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
575
539
7935179.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
6,156
5,915
7935527.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
7,415
7,083
7935729.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
1,923
378
7935761.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
6,245
6,079
7935985.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
23,360
22,601
7936525.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
5,134
5,009
7936845.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
26,205
25,296
7937527.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
3,282
3,177
7937567.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
996
971
7937581.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
9,376
9,089
7937842.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
1,045
996
7937880.SQ.FTS.B
,
Zero
Cpn
,
12/27/25
..
15,814
15,448
7938157.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
1,174
1,136
7938306.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
7,565
7,259
7938570.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
4,292
4,175
7938792.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
9,106
8,828
7939433.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
3,120
2,995
7939755.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
4,616
4,391
7939840.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
698
685
7939914.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
53,766
52,540
7941616.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
3,743
3,564
7941765.SQ.FTS.B
,
Zero
Cpn
,
12/28/25
..
288
280
7941864.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
2,357
2,296
7941951.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
903
873
7941973.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
4,082
3,859
7942057.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
3,066
1,300
7942116.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
837
809
7942145.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
1,706
1,563
7942180.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
3,080
1,503
7942230.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
1,743
1,696
7942360.SQ.FTS.B
,
Zero
Cpn
,
12/29/25
..
14,318
13,945
7942981.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
1,285
1,223
7943014.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
1,438
1,405
7943129.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
6,169
5,756
7943271.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
906
877
7943292.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
6,174
5,966
7943463.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
4,170
3,951
7943598.SQ.FTS.B
,
Zero
Cpn
,
12/30/25
..
30,126
27,625
7944955.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
24,782
11,694
7945625.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
9,018
4,282
7945868.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
2,024
1,979
7945929.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
2,573
2,467
7945991.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
5,861
5,674
7946108.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
26,786
26,348
7947285.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
1,723
1,637
7947322.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
1,302
1,242
7947383.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
7,671
7,308
7947590.SQ.FTS.B
,
Zero
Cpn
,
1/01/26
...
13,555
11,962
7949405.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
9,096
8,805
7949670.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
5,383
5,188
7949809.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
4,351
1,306
7949923.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
13,516
13,044
7950515.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
1,304
215
7950572.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
9,728
9,380
7950936.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
10,658
8,130
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7951118.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
$
5,376
$
4,978
7951188.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
3,291
2,104
7951382.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
2,673
2,576
7951446.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
3,188
2,568
7951514.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
6,637
6,532
7951644.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
1,793
1,723
7951666.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
1,889
1,768
7951698.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
28,407
27,372
7952260.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
1,735
1,677
7952354.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
397
388
7952405.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
9,427
9,231
7952679.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
4,462
4,310
7952900.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
645
636
7953019.SQ.FTS.B
,
Zero
Cpn
,
1/02/26
...
5,082
4,848
7955230.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
4,961
4,781
7955452.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,336
1,295
7955509.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,622
1,594
7955594.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,933
1,899
7955776.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
3,324
3,255
7955992.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
3,240
3,188
7956235.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
319
317
7956361.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,819
1,801
7956516.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
15,097
14,544
7956861.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,242
1,195
7956894.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
11,184
10,783
7957083.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
696
665
7957107.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
3,043
2,953
7957152.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
64,851
62,596
7958490.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
493
356
7958493.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
5,984
5,798
7958609.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
5,882
5,703
7958766.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,271
1,246
7958809.SQ.FTS.B
,
Zero
Cpn
,
1/03/26
...
1,099
1,074
7958846.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
2,638
2,455
7958937.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
6,670
6,425
7959042.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
3,460
3,338
7959102.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
9,602
9,355
7959271.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
7,966
7,732
7959423.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
4,724
4,487
7959475.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
1,485
1,424
7959509.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
3,979
3,209
7959550.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
1,130
1,109
7959665.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
718
630
7959671.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
4,143
3,940
7959717.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
5,198
4,921
7959781.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
1,230
1,115
7959798.SQ.FTS.B
,
Zero
Cpn
,
1/04/26
...
1,794
1,761
7959854.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
1,412
1,368
7959892.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
10,285
9,975
7960559.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
4,206
3,795
7960726.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
2,547
2,431
7960785.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
7,644
7,363
7960932.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
12,226
11,749
7961298.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
2,969
2,861
7961343.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
2,080
1,891
7961400.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
2,181
1,997
7961488.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
41,625
40,227
7962436.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
892
843
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7962453.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
$
907
$
551
7962505.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
25,737
17,811
7963149.SQ.FTS.B
,
Zero
Cpn
,
1/05/26
...
1,055
1,020
7963181.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
3,993
3,909
7963313.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
2,245
2,140
7963454.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
4,894
4,706
7963603.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
6,228
5,889
7963762.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
12,524
11,436
7964034.SQ.FTS.B
,
Zero
Cpn
,
1/06/26
...
5,124
4,994
7964179.SQ.FTS.B
,
Zero
Cpn
,
1/07/26
...
8,620
8,198
7964402.SQ.FTS.B
,
Zero
Cpn
,
1/07/26
...
1,273
1,227
7964468.SQ.FTS.B
,
Zero
Cpn
,
1/07/26
...
13,102
12,000
7964764.SQ.FTS.B
,
Zero
Cpn
,
1/07/26
...
1,606
854
7964799.SQ.FTS.B
,
Zero
Cpn
,
1/07/26
...
10,426
8,592
7965263.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
4,092
4,006
7965549.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
542
481
7965591.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
6,411
5,927
7966029.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
4,994
4,899
7966452.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
528
516
7966471.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
20,461
19,603
7967131.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
3,124
3,061
7967223.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
2,441
2,371
7967330.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
2,854
2,635
7967430.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
1,177
1,154
7967592.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
4,925
4,666
7967754.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
8,598
8,328
7968075.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
972
946
7968118.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
3,847
3,745
7968280.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
1,748
1,674
7968325.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
1,184
1,155
7968350.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
1,919
1,815
7968511.SQ.FTS.B
,
Zero
Cpn
,
1/08/26
...
4,632
1,842
7968648.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
9,650
9,321
7969091.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
1,641
1,606
7969237.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
6,696
6,572
7969663.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
5,279
5,137
7969752.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
4,882
4,704
7969833.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
15,916
14,971
7970441.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
4,018
3,852
7970501.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
4,684
4,512
7970690.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
11,442
11,052
7970839.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
4,734
4,298
7970944.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
2,294
2,195
7970980.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
1,396
1,352
7971017.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
1,161
1,121
7971046.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
3,075
2,901
7971102.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
10,725
10,158
7971313.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
869
546
7971333.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
1,448
1,387
7971372.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
1,085
984
7971410.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
19,959
19,469
7971880.SQ.FTS.B
,
Zero
Cpn
,
1/09/26
...
12,064
11,459
7972001.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
17,608
16,923
7972908.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
2,604
2,517
7973064.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
14,369
10,209
7973273.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
34,555
33,758
7973824.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
7,437
7,086
7974041.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
17,478
16,853
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7974442.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
$
7,407
$
7,184
7974594.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
2,771
2,717
7974628.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
12,133
11,688
7974851.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
6,711
6,468
7975042.SQ.FTS.B
,
Zero
Cpn
,
1/10/26
...
4,933
4,646
7977115.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,819
1,746
7977434.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
14,864
14,410
7978058.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,040
1,027
7978140.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
2,481
2,371
7978500.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
994
723
7978527.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
10,592
10,222
7978810.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
27,531
26,683
7979545.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,071
1,023
7979576.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
10,576
10,342
7980032.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
2,396
2,205
7980106.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
10,018
9,786
7980356.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
16,312
15,488
7980649.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,323
1,275
7980692.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,429
1,398
7980752.SQ.FTS.B
,
Zero
Cpn
,
1/11/26
...
1,044
745
7980828.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
1,783
1,701
7980971.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
6,445
6,246
7981253.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
2,558
2,466
7981339.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
30,031
29,007
7982369.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
7,589
7,277
7982539.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
9,654
9,353
7982911.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
1,625
1,582
7982963.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
7,192
5,814
7983089.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
15,230
14,901
7983558.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
5,021
4,908
7983663.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
12,154
11,790
7983953.SQ.FTS.B
,
Zero
Cpn
,
1/12/26
...
11,179
10,861
7984097.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
3,922
3,756
7984169.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
32,804
24,175
7984645.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
871
852
7984675.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
1,134
650
7984687.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
608
500
7984701.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
2,396
2,295
7984842.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
3,283
1,640
7984893.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
2,000
1,944
7984936.SQ.FTS.B
,
Zero
Cpn
,
1/13/26
...
10,007
9,788
7985142.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
5,633
5,455
7985267.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
10,407
10,073
7985451.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
4,401
4,277
7985528.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
2,330
2,172
7985560.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
7,177
6,940
7985702.SQ.FTS.B
,
Zero
Cpn
,
1/14/26
...
8,557
8,260
7986086.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
653
647
7986170.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
9,136
8,732
7986602.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
2,924
2,783
7986712.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
4,429
1,701
7986842.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
1,543
1,476
7986879.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
17,806
17,242
7987316.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
17,953
15,260
7987638.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
50,313
47,177
7988550.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
898
803
7988566.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
9,532
9,107
7988744.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
2,261
2,240
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7988830.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
$
3,556
$
3,125
7988900.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
9,963
9,619
7989063.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
5,502
5,357
7989353.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
9,813
9,310
7989548.SQ.FTS.B
,
Zero
Cpn
,
1/15/26
...
8,089
7,925
7989701.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
3,041
2,719
7989820.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
2,728
2,283
7989875.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
3,144
3,034
7989962.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
620
570
7989998.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
6,533
6,265
7990229.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
1,237
1,170
7990281.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
11,201
10,981
7990944.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
7,061
6,730
7991134.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
3,630
3,465
7991209.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
4,646
4,215
7991279.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
845
825
7991304.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
4,365
3,761
7991384.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
1,727
1,643
7991416.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
418
410
7991427.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
6,832
6,602
7991579.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
5,682
5,346
7991621.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
1,591
1,534
7991634.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
27,514
26,203
7992099.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
4,390
4,267
7992241.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
1,678
1,620
7992311.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
34,871
33,153
7992867.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
1,826
1,683
7992929.SQ.FTS.B
,
Zero
Cpn
,
1/16/26
...
10,663
10,140
7993239.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
1,004
977
7993294.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
1,425
1,380
7993386.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
744
730
7993548.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
699
670
7993582.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
2,531
2,496
7993753.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
8,592
8,257
7994296.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
4,435
4,268
7994399.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
9,273
8,871
7994628.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
4,834
4,545
7997671.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
5,112
4,367
7999305.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
1,291
1,261
7999359.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
1,083
1,064
7999412.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
2,136
2,054
7999455.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
10,518
10,274
7999659.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
36,409
35,023
8000517.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
3,166
3,037
8000592.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
7,182
6,692
8000708.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
3,173
3,060
8000772.SQ.FTS.B
,
Zero
Cpn
,
1/17/26
...
683
671
8002813.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
3,101
3,039
8003046.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
3,222
3,132
8003178.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
3,206
3,035
8003278.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
5,891
5,727
8003641.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
2,712
2,594
8003744.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
1,764
1,423
8003810.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
1,073
1,040
8003922.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
4,897
4,764
8004096.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
66,607
38,784
8005254.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
19,974
19,061
8005714.SQ.FTS.B
,
Zero
Cpn
,
1/18/26
...
28,890
28,058
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8006786.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
$
12,505
$
11,736
8007161.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
11,703
11,327
8007709.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
1,122
1,052
8007730.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
5,061
4,807
8007865.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
970
950
8007925.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
4,431
4,122
8008048.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
8,847
8,503
8008266.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
678
639
8008289.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
14,450
13,838
8008554.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
1,999
1,929
8008601.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
6,525
5,587
8008734.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
7,872
7,250
8008965.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
9,221
8,979
8009142.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
2,876
2,809
8009195.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
2,802
2,758
8009308.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
12,115
11,643
8009685.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
2,080
2,016
8009771.SQ.FTS.B
,
Zero
Cpn
,
1/19/26
...
4,259
4,108
8009826.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
1,975
1,889
8009871.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
8,503
7,597
8009956.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
9,060
8,780
8010127.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
1,011
983
8010141.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
1,862
1,367
8010158.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
550
462
8010171.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
7,136
6,937
8010295.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
13,906
5,494
8010459.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
1,241
1,090
8010484.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
2,022
1,915
8010520.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
615
539
8010531.SQ.FTS.B
,
Zero
Cpn
,
1/20/26
...
14,211
13,738
8010733.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
2,331
1,958
8010773.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
1,746
1,664
8010802.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
2,207
2,134
8010866.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
1,575
1,530
8010904.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
1,645
1,585
8010925.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
1,736
1,649
8010948.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
15,104
14,619
8011235.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
1,524
1,490
8011298.SQ.FTS.B
,
Zero
Cpn
,
1/21/26
...
11,771
10,861
8011493.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
2,887
2,769
8011797.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
3,228
3,025
8011849.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
13,697
13,287
8012515.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
503
495
8012526.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
2,786
2,626
8012604.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
7,009
6,731
8012825.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
3,238
3,059
8013271.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
14,053
13,701
8013485.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
2,871
2,775
8013542.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
47,397
45,380
8014459.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
1,839
1,770
8014533.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
9,740
8,928
8014697.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
9,316
6,284
8014813.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
4,463
4,296
8015018.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
4,718
4,546
8015166.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
1,888
1,687
8015221.SQ.FTS.B
,
Zero
Cpn
,
1/22/26
...
3,563
3,261
8015255.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
7,451
7,144
8015629.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
9,452
9,224
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8016257.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
$
9,867
$
9,156
8016541.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
4,399
3,317
8016630.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
1,417
443
8016674.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,431
2,279
8016736.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,867
2,803
8016839.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
1,724
1,661
8016881.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,374
2,319
8016966.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
4,125
3,939
8017092.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,237
2,106
8017129.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
6,318
6,057
8017258.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,063
1,781
8017284.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
5,355
5,149
8017367.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
2,505
2,442
8017433.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
31,639
30,639
8018158.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
7,540
7,269
8018305.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
3,936
3,775
8018479.SQ.FTS.B
,
Zero
Cpn
,
1/23/26
...
15,589
14,755
8018753.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
15,795
15,635
8019872.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
4,234
4,097
8020017.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
1,230
1,169
8020102.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
7,474
6,660
8020304.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
638
597
8020378.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
463
448
8020391.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
2,405
2,356
8020498.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
4,785
4,619
8020588.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
1,865
1,743
8020603.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
4,239
4,000
8020710.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
10,724
10,539
8021079.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
8,944
8,635
8021249.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
1,131
1,093
8021335.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
5,127
4,917
8021419.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
2,912
1,562
8021477.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
1,046
775
8021556.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
1,932
1,860
8021589.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
192
190
8021596.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
7,609
6,513
8021695.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
2,010
1,948
8021730.SQ.FTS.B
,
Zero
Cpn
,
1/24/26
...
12,930
12,233
8024079.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
5,187
5,008
8024363.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
893
766
8024460.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
17,005
16,324
8025074.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
7,838
7,568
8025374.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
980
945
8025452.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
5,357
5,077
8025631.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
398
211
8025651.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
7,255
6,845
8025840.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
4,165
3,944
8025963.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
2,041
1,986
8025995.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
962
864
8026030.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
4,037
3,328
8026082.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
26,027
24,873
8026645.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
1,360
1,297
8026675.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
9,471
9,098
8026785.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
32,533
30,235
8027296.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
1,730
1,676
8027331.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
1,255
1,206
8027367.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
2,265
2,012
8027405.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
2,158
2,003
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8027455.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
$
5,138
$
4,836
8027580.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
1,574
1,053
8027623.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
10,165
9,793
8027762.SQ.FTS.B
,
Zero
Cpn
,
1/25/26
...
17,099
16,705
8027835.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
6,097
5,809
8028077.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
3,552
3,470
8028279.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
3,227
3,142
8028638.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
10,368
10,020
8029080.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
9,386
9,058
8029352.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
1,314
1,260
8029393.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
3,827
3,658
8029495.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
1,065
1,007
8029522.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
10,353
9,947
8029715.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
57,004
55,082
8031161.SQ.FTS.B
,
Zero
Cpn
,
1/26/26
...
6,244
5,582
8031391.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
3,341
3,247
8031468.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
396
321
8031473.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
3,904
3,123
8031552.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
998
883
8031570.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
3,038
2,750
8031599.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
3,377
3,288
8031670.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
20,299
19,580
8032057.SQ.FTS.B
,
Zero
Cpn
,
1/27/26
...
4,283
4,082
8032129.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
1,317
1,202
8032155.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
9,353
8,984
8032318.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
944
846
8032327.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
7,458
7,201
8032445.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
4,384
4,135
8032498.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
19,074
18,271
8032775.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
1,164
1,145
8032797.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
3,159
2,969
8032837.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
7,142
6,759
8032927.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
3,088
2,956
8033005.SQ.FTS.B
,
Zero
Cpn
,
1/28/26
...
4,194
4,071
8033377.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
10,606
10,241
8033788.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
13,688
13,244
8034356.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
9,174
8,714
8034645.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
5,148
4,999
8034748.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
1,614
1,558
8034808.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
5,898
5,749
8034986.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
34,407
33,161
8035580.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
2,542
2,440
8035635.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
1,081
1,050
8035724.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
2,603
2,510
8035784.SQ.FTS.B
,
Zero
Cpn
,
1/29/26
...
63,488
60,075
8037056.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
5,596
5,269
8037317.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
6,517
6,305
8037711.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
6,779
6,553
8038114.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
8,210
8,023
8038433.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
882
852
8038474.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
1,732
1,644
8038511.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
7,061
6,839
8038659.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
1,701
1,643
8038703.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
873
838
8038747.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
6,189
6,046
8038900.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
8,773
8,277
8039025.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,366
2,309
8039075.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
4,107
4,019
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8039140.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
$
439
$
431
8039151.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
15,831
15,103
8039563.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
23,632
22,769
8040116.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,971
2,878
8040220.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,404
1,881
8040290.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
6,655
6,383
8040463.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
610
423
8040495.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,211
2,058
8040547.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
4,516
4,313
8040660.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
5,191
4,762
8040742.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,378
2,296
8040759.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
2,325
2,242
8040782.SQ.FTS.B
,
Zero
Cpn
,
1/30/26
...
6,065
5,758
8040858.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
14,436
14,002
8041460.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
12,029
11,521
8041956.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
8,709
8,411
8042266.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
798
784
8042286.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
12,545
12,148
8042719.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
1,483
1,426
8042742.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
26,217
24,789
8043196.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
12,875
12,259
8043473.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
10,081
9,379
8043690.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
3,731
3,550
8043761.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
4,413
4,202
8043875.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
1,413
1,344
8043893.SQ.FTS.B
,
Zero
Cpn
,
1/31/26
...
49,392
46,792
8046580.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
470
452
8046629.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
1,758
1,682
8046701.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
12,425
11,341
8047184.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
8,734
8,362
8047506.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
10,240
9,667
8048058.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
2,800
2,694
8048159.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
1,876
1,803
8048220.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
2,379
2,288
8048854.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
7,181
6,873
8048988.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
14,969
14,350
8049441.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
11,312
10,872
8049654.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
1,350
1,286
8049692.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
1,002
960
8049740.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
1,712
1,614
8049786.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
2,410
2,224
8049828.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
10,794
10,396
8050429.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
2,066
1,887
8050450.SQ.FTS.B
,
Zero
Cpn
,
2/01/26
...
12,005
11,487
8050565.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
12,255
11,717
8051191.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
913
863
8051242.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
2,685
2,508
8051402.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
10,261
9,842
8051888.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
2,638
2,399
8052007.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
9,513
9,153
8052271.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
10,236
9,787
8052597.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
1,883
1,824
8052677.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
8,238
7,866
8052855.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
7,813
7,484
8053011.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
7,680
7,165
8053145.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
9,622
9,208
8053308.SQ.FTS.B
,
Zero
Cpn
,
2/02/26
...
77,334
62,733
8054231.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
887
861
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8054278.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
$
672
$
625
8054298.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
3,893
3,734
8054387.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
4,603
4,422
8054476.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
8,469
8,112
8054631.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
3,895
3,026
8054701.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
18,314
17,417
8055075.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
1,688
1,634
8055120.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
2,900
2,759
8055181.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
919
892
8055206.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
506
460
8055212.SQ.FTS.B
,
Zero
Cpn
,
2/03/26
...
841
805
8055237.SQ.FTS.B
,
Zero
Cpn
,
2/04/26
...
1,184
1,127
8055273.SQ.FTS.B
,
Zero
Cpn
,
2/04/26
...
2,119
2,053
8055348.SQ.FTS.B
,
Zero
Cpn
,
2/04/26
...
34,538
32,565
8055981.SQ.FTS.B
,
Zero
Cpn
,
2/04/26
...
7,841
7,558
8056195.SQ.FTS.B
,
Zero
Cpn
,
2/04/26
...
4,648
4,465
8056533.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
2,256
2,163
8056576.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
669
650
8056596.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
986
958
8056626.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
1,951
1,817
8056678.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
20,019
18,295
8057356.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
1,907
1,845
8057466.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
1,802
1,733
8057564.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
9,427
9,059
8057849.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
19,925
18,209
8058331.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
14,953
14,305
8058629.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
18,473
17,073
8058885.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
410
398
8059014.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
949
919
8059030.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
5,208
4,932
8059113.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
17,927
17,148
8059550.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
6,718
5,945
8059687.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
580
560
8059701.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
1,304
1,249
8059733.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
1,900
1,827
8059762.SQ.FTS.B
,
Zero
Cpn
,
2/05/26
...
16,752
16,036
8060137.SQ.FTS.B
,
Zero
Cpn
,
2/06/26
...
7,018
6,728
8060441.SQ.FTS.B
,
Zero
Cpn
,
2/06/26
...
1,484
1,424
8060499.SQ.FTS.B
,
Zero
Cpn
,
2/06/26
...
34,395
32,766
8061716.SQ.FTS.B
,
Zero
Cpn
,
2/06/26
...
31,584
30,296
8062345.SQ.FTS.B
,
Zero
Cpn
,
2/06/26
...
67,054
64,600
8063865.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
22,254
21,030
8064742.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
776
752
8064768.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
1,286
1,229
8064804.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
1,240
1,190
8064844.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
3,550
3,409
8065009.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
4,969
4,751
8065133.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
1,912
1,840
8065179.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
29,167
27,998
8065648.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
23,681
22,858
8065938.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
2,630
2,502
8066050.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
5,224
4,970
8066149.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
2,247
1,805
8066177.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
1,130
1,097
8066199.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
7,489
7,214
8066274.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
12,638
12,077
8066446.SQ.FTS.B
,
Zero
Cpn
,
2/07/26
...
24,168
21,952
8069013.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
906
867
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8069069.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
$
15,064
$
14,453
8069595.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
4,311
3,688
8070073.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
5,308
5,095
8070315.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
2,202
1,795
8070361.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
2,798
2,690
8070499.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
1,621
1,192
8070521.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
3,977
3,829
8070664.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
1,015
967
8070702.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
1,609
1,520
8070742.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
20,317
19,461
8071458.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
3,417
2,935
8071591.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
20,669
19,864
8072064.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
14,232
13,706
8072353.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
7,628
7,308
8072469.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
1,404
1,196
8072491.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
18,239
16,669
8072806.SQ.FTS.B
,
Zero
Cpn
,
2/08/26
...
11,232
10,831
8072910.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
6,519
6,261
8073193.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
6,296
6,016
8073409.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
1,599
1,510
8073475.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
1,527
1,466
8073562.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
8,070
7,739
8073909.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
4,116
3,918
8074028.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
12,248
11,500
8074271.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
9,078
8,709
8074449.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
4,667
4,423
8074535.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
58,216
55,626
8075822.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
1,558
1,496
8075879.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
1,684
1,583
8075935.SQ.FTS.B
,
Zero
Cpn
,
2/09/26
...
2,825
2,735
8076022.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
15,915
15,124
8076271.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
3,311
3,168
8076339.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
2,441
2,350
8076408.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
3,165
3,057
8076492.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
8,047
7,689
8076636.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
547
440
8076650.SQ.FTS.B
,
Zero
Cpn
,
2/10/26
...
23,179
22,260
8077077.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
13,413
9,942
8077240.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
4,450
4,274
8077333.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
4,342
4,145
8077416.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
1,089
1,025
8077435.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
5,331
5,052
8077544.SQ.FTS.B
,
Zero
Cpn
,
2/11/26
...
3,646
3,445
8077961.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
4,147
3,978
8078020.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
7,734
7,423
8078243.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
3,563
2,473
8078364.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
28,085
26,976
8079404.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
5,402
5,140
8079477.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
3,831
3,474
8079556.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
43,217
41,186
8080348.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
33,286
31,883
8081249.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
1,709
1,626
8081277.SQ.FTS.B
,
Zero
Cpn
,
2/12/26
...
7,650
7,351
8081572.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
8,189
7,912
8082159.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
6,833
6,528
8082423.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
2,893
2,732
8082523.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
9,194
8,814
8082833.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
1,681
1,605
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8082926.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
$
7,053
$
6,669
8083071.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
1,509
1,453
8083106.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
3,751
3,492
8083171.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
774
698
8083180.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
1,133
1,066
8083196.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
10,485
9,764
8083370.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
74,354
71,186
8084732.SQ.FTS.B
,
Zero
Cpn
,
2/13/26
...
7,464
7,227
8084846.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
5,681
5,174
8085032.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
9,808
9,458
8085571.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
469
447
8085601.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
14,004
12,822
8085971.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
10,264
9,851
8086242.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
808
767
8086284.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
2,370
1,702
8086335.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
1,376
1,335
8086401.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
40,513
38,641
8087114.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
38,685
36,856
8087686.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
2,108
2,022
8087713.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
550
533
8087728.SQ.FTS.B
,
Zero
Cpn
,
2/14/26
...
38,100
36,631
8090012.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
225
214
8090027.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
2,514
2,062
8090121.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
666
647
8090178.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
2,792
2,637
8090285.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
13,167
12,628
8090932.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
5,280
5,089
8091360.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
2,834
2,514
8091464.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
11,758
11,247
8091732.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
4,766
4,589
8091892.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
4,802
4,607
8092045.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
18,615
17,868
8092426.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
5,937
5,678
8092538.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
12,943
12,360
8092751.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
19,922
18,929
8093178.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
5,732
5,485
8093337.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
4,796
4,577
8093500.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
2,156
1,615
8093559.SQ.FTS.B
,
Zero
Cpn
,
2/15/26
...
7,544
7,220
8093625.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
2,380
2,273
8093790.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
1,423
1,321
8093884.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
891
852
8093903.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
22,059
20,940
8094706.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
4,452
4,226
8094844.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
921
884
8094892.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
5,255
4,964
8095020.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
24,280
23,211
8095598.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
259
250
8095603.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
6,648
6,275
8095806.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
8,940
8,532
8095985.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
5,920
5,662
8096104.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
16,680
16,013
8096694.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
2,612
2,477
8096821.SQ.FTS.B
,
Zero
Cpn
,
2/16/26
...
24,465
23,466
8096998.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
1,678
1,600
8097051.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
1,598
1,501
8097069.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
3,564
3,378
8097128.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
3,968
3,524
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8097211.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
$
3,517
$
2,889
8097276.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
965
930
8097302.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
9,290
8,915
8097460.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
11,709
11,084
8097670.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
4,847
4,600
8097744.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
2,484
2,374
8097794.SQ.FTS.B
,
Zero
Cpn
,
2/17/26
...
2,032
1,961
8097883.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
5,583
5,328
8097963.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
1,722
1,630
8097993.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
4,981
4,765
8098050.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
9,999
9,595
8098241.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
5,461
5,199
8098336.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
6,256
5,978
8098468.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
3,248
2,008
8098527.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
5,825
4,976
8098639.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
1,174
1,131
8098680.SQ.FTS.B
,
Zero
Cpn
,
2/18/26
...
19,034
16,919
8099289.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
1,374
1,323
8099364.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
5,464
5,131
8099593.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
8,906
8,531
8099959.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
3,139
3,011
8100066.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
1,100
1,040
8100096.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
7,029
6,743
8100268.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
4,121
3,962
8100394.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
1,689
1,564
8100424.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
286
275
8100440.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
1,550
1,425
8100484.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
379
370
8100523.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
3,474
3,331
8100592.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
26,875
25,442
8101054.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
12,962
12,401
8101188.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
563
545
8101224.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
18,705
17,944
8101689.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
2,983
2,252
8101779.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
21,589
12,730
8102185.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
3,060
2,945
8102325.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
5,739
5,536
8102535.SQ.FTS.B
,
Zero
Cpn
,
2/19/26
...
1,255
1,149
8102570.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
2,759
2,637
8102699.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
1,901
1,781
8102815.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
5,850
5,586
8103156.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
1,435
1,371
8103231.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
4,275
4,066
8103367.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
25,050
24,077
8104275.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
1,976
1,884
8104313.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
1,449
1,393
8104356.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
4,980
4,685
8104468.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
4,881
4,677
8104527.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
394
371
8104543.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
448
435
8104564.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
1,747
1,683
8104579.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
3,145
2,806
8104606.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
51,083
48,624
8105362.SQ.FTS.B
,
Zero
Cpn
,
2/20/26
...
64,039
61,144
8106607.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
2,483
2,392
8106736.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
18,055
16,799
8107377.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
20,300
19,468
8107806.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
17,452
16,728
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8108099.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
$
40,638
$
38,209
8108839.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
4,555
4,335
8108969.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
32,425
31,100
8111412.SQ.FTS.B
,
Zero
Cpn
,
2/21/26
...
6,745
6,459
8111792.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
3,944
3,616
8111948.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
3,006
2,840
8112121.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
6,204
5,949
8112490.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
947
717
8112530.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
2,613
2,150
8112596.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
22,840
21,808
8113190.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
3,297
3,191
8113289.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
3,961
3,789
8113377.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
44,036
42,027
8114304.SQ.FTS.B
,
Zero
Cpn
,
2/22/26
...
54,398
52,150
8115327.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
21,423
20,508
8116242.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
2,429
2,283
8116336.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
715
685
8116348.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
13,763
12,959
8116722.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
985
940
8116774.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
1,619
1,572
8116876.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
1,063
1,014
8116909.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
7,873
7,482
8117071.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
4,653
4,329
8117156.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
39,752
36,643
8118066.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
4,267
4,053
8118283.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
1,745
1,673
8118334.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
1,396
1,320
8118368.SQ.FTS.B
,
Zero
Cpn
,
2/23/26
...
39,876
38,158
8118658.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
8,292
7,946
8118786.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
4,035
3,878
8118872.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
4,318
4,116
8118946.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
8,176
7,816
8119065.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
7,482
6,897
8119177.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
13,990
13,396
8119418.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
1,848
1,644
8119443.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
2,144
2,052
8119488.SQ.FTS.B
,
Zero
Cpn
,
2/24/26
...
4,761
4,502
8119612.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
3,368
3,221
8119694.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
13,863
13,107
8119932.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
2,705
2,594
8119975.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
2,191
2,101
8120018.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
5,899
5,638
8120122.SQ.FTS.B
,
Zero
Cpn
,
2/25/26
...
19,885
18,734
8120943.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
14,849
14,069
8121649.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
15,964
15,260
8122041.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
5,909
4,776
8122110.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
2,613
2,481
8122177.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
8,038
7,708
8122416.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
1,852
1,778
8122481.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
36,625
33,621
8123226.SQ.FTS.B
,
Zero
Cpn
,
2/26/26
...
71,471
68,536
8124450.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
6,003
5,745
8124817.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
1,938
1,357
8124889.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
6,965
6,637
8125247.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
4,747
4,459
8125929.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
18,975
18,049
8126364.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
943
899
8126390.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
24,277
23,274
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8126879.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
$
27,800
$
26,614
8127458.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
2,397
2,267
8127537.SQ.FTS.B
,
Zero
Cpn
,
2/27/26
...
36,893
35,409
8128112.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
7,228
6,908
8128415.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
35,769
34,232
8129631.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
2,618
2,505
8129699.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
51,215
49,102
8130505.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
3,787
3,603
8130552.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
5,043
4,848
8130665.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
6,766
6,404
8130754.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
27,106
25,945
8131155.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
14,203
13,591
8134957.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
81,911
78,284
8137228.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
4,628
4,000
8137296.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
5,633
5,387
8137455.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
1,027
985
8137482.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
1,042
996
8137495.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
6,259
5,942
8137603.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
9,728
9,245
8137741.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
3,984
3,812
8137845.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
19,158
18,209
8138201.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
37,343
35,057
8139068.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
5,300
5,069
8139332.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
1,815
1,718
8139400.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
1,600
1,490
8139474.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
3,088
2,955
8139604.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
19,151
18,256
8140262.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
7,688
7,276
8140581.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
2,681
2,466
8140628.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
92,224
88,216
8142514.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
27
26
8142549.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
4,638
4,154
8142637.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
22,300
21,231
8143023.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
832
804
8143061.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
6,543
6,155
8143192.SQ.FTS.B
,
Zero
Cpn
,
2/28/26
...
26,922
25,505
8143641.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
3,464
3,003
8143690.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
7,311
6,992
8143816.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
1,445
1,384
8143858.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
3,548
3,396
8143927.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
14,749
14,013
8144185.SQ.FTS.B
,
Zero
Cpn
,
3/01/26
...
10,700
10,232
8144352.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
5,352
5,105
8144464.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
2,114
2,021
8144518.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
2,093
2,002
8144568.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
3,337
3,131
8144631.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
10,248
9,793
8144688.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
923
891
8144707.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
2,883
2,753
8144737.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
2,961
2,816
8144773.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
1,344
1,287
8144789.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
12,565
11,939
8144915.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
6,246
5,858
8145016.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
2,364
2,264
8145056.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
673
643
8145075.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
1,742
1,648
8145091.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
10,496
9,977
8145239.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
4,532
4,318
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8145315.SQ.FTS.B
,
Zero
Cpn
,
3/02/26
...
$
26,667
$
25,292
8146231.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
6,572
6,350
8146554.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
9,763
9,298
8146855.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
4,014
3,850
8147040.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
8,110
7,764
8147240.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
5,816
5,539
8147390.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
35,521
33,077
8148045.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
4,630
4,433
8148149.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
6,289
5,985
8148249.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
3,760
3,598
8148343.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
16,349
15,649
8148738.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
12,391
11,851
8148983.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
1,545
1,495
8149024.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
1,438
1,374
8149055.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
1,721
1,624
8149082.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
8,572
8,185
8149284.SQ.FTS.B
,
Zero
Cpn
,
3/03/26
...
8,473
7,551
8149469.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
88,436
84,647
8151780.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
13,828
13,237
8151992.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
25,242
24,201
8152425.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
2,360
2,257
8152476.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
15,910
15,169
8152742.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
14,913
14,259
8152971.SQ.FTS.B
,
Zero
Cpn
,
3/04/26
...
9,245
8,783
8155026.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
11,404
10,757
8155408.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
1,754
1,659
8155465.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
7,799
7,440
8155710.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
4,252
4,079
8155880.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
1,221
960
8155930.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
18,414
17,611
8156604.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
2,681
2,561
8156663.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
3,084
2,953
8156729.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
54,315
51,865
8157783.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
36,975
35,335
8158265.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
18,631
17,842
8158568.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
5,337
5,151
8158709.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
13,801
13,179
8158885.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
1,976
1,822
8158896.SQ.FTS.B
,
Zero
Cpn
,
3/05/26
...
9,647
9,215
8159145.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
12,307
11,526
8159478.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
5,106
4,439
8159653.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
1,070
960
8159704.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
21,939
19,078
8160326.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
4,983
4,744
8160480.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
19,985
19,065
8160802.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
52,924
50,564
8161785.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
10,523
10,065
8161994.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
2,007
1,831
8162069.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
1,050
984
8162107.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
1,944
1,844
8162148.SQ.FTS.B
,
Zero
Cpn
,
3/06/26
...
4,185
3,995
8162241.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
8,501
8,117
8162394.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
3,182
3,014
8162440.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
13,352
12,399
8162648.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
3,716
3,550
8162699.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
15,563
14,726
8162974.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
1,696
1,587
8162998.SQ.FTS.B
,
Zero
Cpn
,
3/07/26
...
35,281
33,351
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8163507.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
$
1,431
$
1,346
8163527.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
5,988
5,711
8163620.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
13,528
12,661
8163826.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
1,372
1,253
8163854.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
2,512
2,381
8163891.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
4,518
4,284
8163975.SQ.FTS.B
,
Zero
Cpn
,
3/08/26
...
21,034
20,114
8164934.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
1,355
1,291
8165043.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
1,356
1,023
8165084.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
11,792
10,281
8165389.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
4,934
4,709
8165476.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
670
567
8165492.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
14,220
13,501
8165774.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
8,185
7,813
8166039.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
2,111
2,008
8166083.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
4,312
4,116
8166162.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
1,965
1,847
8166189.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
1,348
1,288
8166222.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
5,990
5,703
8166313.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
2,970
2,834
8166378.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
4,804
4,631
8166471.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
11,809
11,206
8166633.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
838
792
8166640.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
10,637
10,138
8166826.SQ.FTS.B
,
Zero
Cpn
,
3/09/26
...
84,234
80,278
8167762.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
1,707
1,614
8167907.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
5,749
5,497
8168187.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
2,817
2,649
8168375.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
19,904
18,898
8169199.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
67,489
64,475
8170828.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
1,637
1,551
8170878.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
10,193
9,604
8171092.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
1,947
1,837
8171151.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
3,824
3,659
8171274.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
1,913
1,721
8171317.SQ.FTS.B
,
Zero
Cpn
,
3/10/26
...
19,058
18,173
8171482.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
10,884
10,305
8171974.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
19,722
18,230
8172685.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
3,023
2,865
8172765.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
5,678
5,074
8172905.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
20,832
20,046
8173310.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
52,712
50,171
8174181.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
3,923
3,770
8174563.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
2,834
2,738
8174639.SQ.FTS.B
,
Zero
Cpn
,
3/11/26
...
5,468
5,270
8176747.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
9,588
9,163
8177107.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
6,114
5,844
8177307.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
3,604
3,243
8177398.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
20,895
19,953
8178145.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
10,260
9,875
8178539.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
16,043
15,177
8178839.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
65,396
61,845
8179981.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
8,768
8,216
8180118.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
5,976
5,696
8180242.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
5,465
5,036
8180367.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
2,455
2,330
8180403.SQ.FTS.B
,
Zero
Cpn
,
3/12/26
...
34,105
32,090
8180860.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
1,251
1,206
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8180916.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
$
1,808
$
923
8180951.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
3,881
3,710
8181041.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
890
847
8181078.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
1,077
1,026
8181148.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
3,512
3,309
8181282.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
17,663
16,756
8181974.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
6,113
5,345
8182120.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
15,157
14,406
8182460.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
1,069
1,014
8182507.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
5,145
4,880
8182649.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
64,685
61,970
8184238.SQ.FTS.B
,
Zero
Cpn
,
3/13/26
...
9,988
9,518
8184254.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
3,436
3,273
8184316.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
9,596
8,807
8184484.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
3,235
3,088
8184535.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
2,516
2,421
8184581.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
8,056
7,550
8184701.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
1,653
1,575
8184741.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
19,570
18,657
8185115.SQ.FTS.B
,
Zero
Cpn
,
3/14/26
...
9,272
8,831
8185295.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
970
875
8185313.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
8,120
7,753
8185456.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
6,065
5,781
8185551.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
748
706
8185556.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
1,475
1,389
8185592.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
18,176
17,279
8185861.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
2,172
2,055
8185910.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
5,723
4,473
8186007.SQ.FTS.B
,
Zero
Cpn
,
3/15/26
...
1,812
1,733
8186234.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
2,012
1,921
8186264.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
15,817
15,155
8186644.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
10,425
9,917
8187056.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
53,645
51,255
8188013.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
45,427
43,372
8188825.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
40,048
38,494
8189536.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
17,607
16,559
8189766.SQ.FTS.B
,
Zero
Cpn
,
3/16/26
...
9,784
9,173
8190000.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
10,321
9,831
8190366.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
5,141
4,856
8190551.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
5,711
5,450
8190913.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
2,437
2,258
8191003.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
80,148
76,773
8192588.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
4,956
4,700
8192641.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
16,566
15,520
8192800.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
14,506
13,828
8192961.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
3,812
3,585
8192987.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
5,136
4,895
8193067.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
9,735
9,311
8193236.SQ.FTS.B
,
Zero
Cpn
,
3/17/26
...
12,860
12,235
8193577.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
4,390
4,180
8193711.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
1,012
939
8193726.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
17,365
16,536
8194217.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
4,275
4,089
8194420.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
959
913
8194434.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
20,279
19,173
8194923.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
2,041
1,954
8194976.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
48,830
46,294
8195724.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
5,560
5,296
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8195879.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
$
6,190
$
5,790
8196041.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
32,420
31,097
8196578.SQ.FTS.B
,
Zero
Cpn
,
3/18/26
...
47,620
44,821
8198920.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
89,409
85,765
8201219.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
4,364
4,120
8201286.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
4,816
4,562
8201378.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
697
663
8201400.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
34,388
32,918
8202392.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
718
672
8202398.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
2,664
2,480
8202425.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
5,763
5,505
8202534.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
2,661
2,538
8202573.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
1,779
1,578
8202600.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
1,753
1,640
8202617.SQ.FTS.B
,
Zero
Cpn
,
3/19/26
...
5,448
5,124
8202730.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
3,613
3,390
8202864.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
5,179
4,926
8203009.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
9,020
8,451
8203270.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
4,602
4,045
8203431.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
5,534
5,178
8203655.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
20,253
19,360
8204088.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
7,099
6,751
8204187.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
13,588
12,916
8204430.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
1,699
1,633
8204473.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
5,498
5,198
8204610.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
3,482
2,777
8204771.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
27,301
25,994
8205269.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
1,304
1,220
8205287.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
297
282
8205291.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
5,148
4,895
8205369.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
1,746
1,372
8205397.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
6,759
6,120
8205504.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
1,000
959
8205517.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
5,001
4,761
8205642.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
10,206
9,602
8205825.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
1,321
1,232
8205847.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
10,040
9,545
8205976.SQ.FTS.B
,
Zero
Cpn
,
3/20/26
...
6,318
5,832
8206121.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
10,008
9,515
8206253.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
2,327
2,228
8206289.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
4,123
3,936
8206343.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
4,392
4,158
8206399.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
12,302
11,404
8206532.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
2,202
2,102
8206560.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
4,022
3,775
8206612.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
6,554
6,245
8206700.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
3,921
3,686
8206836.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
2,545
2,412
8206878.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
2,757
2,655
8206934.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
4,271
4,019
8206989.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
5,532
5,175
8207064.SQ.FTS.B
,
Zero
Cpn
,
3/21/26
...
21,013
20,147
8207402.SQ.FTS.B
,
Zero
Cpn
,
3/22/26
...
34,932
33,377
8207912.SQ.FTS.B
,
Zero
Cpn
,
3/22/26
...
11,913
11,392
8208463.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
2,030
1,921
8208532.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
2,763
2,618
8208609.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
6,277
5,994
8208973.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
4,402
4,062
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8209089.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
$
3,554
$
3,267
8209177.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
6,824
5,896
8209280.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
4,414
4,184
8209363.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
2,544
2,454
8209440.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
4,394
4,193
8209555.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
5,296
5,023
8209660.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
654
556
8209672.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
17,217
15,234
8209922.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
2,631
2,369
8209977.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
4,120
3,940
8210085.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
9,940
9,365
8210256.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
14,650
14,033
8210538.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
6,483
4,817
8210603.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
51,745
48,851
8211306.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
1,894
1,755
8211344.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
5,126
4,892
8211466.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
6,118
5,830
8211599.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
2,153
2,038
8211626.SQ.FTS.B
,
Zero
Cpn
,
3/23/26
...
6,017
5,688
8211762.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
2,232
2,070
8211829.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
1,529
1,465
8211919.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
1,435
1,243
8211986.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
3,001
2,863
8212106.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
4,512
4,296
8212293.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
2,494
2,346
8212410.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
6,577
6,261
8212682.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
3,921
3,738
8212827.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
18,692
17,799
8213218.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
578
560
8213246.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
1,379
1,324
8213268.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
7,201
6,808
8213438.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
718
691
8213447.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
22,440
21,291
8213869.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
23,819
22,429
8214310.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
18,200
17,249
8214668.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
7,256
6,861
8214789.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
2,811
2,706
8214819.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
10,995
10,158
8214941.SQ.FTS.B
,
Zero
Cpn
,
3/24/26
...
46,322
44,276
8214983.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
15,596
14,925
8215375.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
4,728
4,316
8215471.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
361
344
8215485.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
1,576
1,497
8215553.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
1,195
1,131
8215602.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
2,226
2,105
8215659.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
8,600
8,143
8215951.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
2,114
1,835
8216001.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
16,457
15,682
8216354.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
3,333
3,181
8216444.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
5,716
5,326
8216590.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
1,884
1,795
8216643.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
1,938
1,816
8216680.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
3,277
3,148
8216733.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
6,356
6,041
8216798.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
4,249
3,991
8216869.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
1,176
1,080
8216882.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
9,789
8,760
8217076.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
7,263
6,913
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8217217.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
$
2,047
$
1,941
8217271.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
3,724
3,521
8217313.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
11,091
10,505
8217705.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
5,191
4,873
8217860.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
30,026
27,868
8218210.SQ.FTS.B
,
Zero
Cpn
,
3/25/26
...
27,084
25,905
8220604.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
15,466
14,303
8221088.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
8,266
7,543
8221556.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
4,143
3,724
8221773.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
9,050
8,472
8221986.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
1,527
1,398
8221997.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
1,003
914
8222040.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
32,431
30,379
8222983.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
4,132
3,820
8223096.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
6,702
6,275
8223240.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
2,441
2,238
8223346.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
5,058
4,735
8223600.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
4,715
4,294
8223823.SQ.FTS.B
,
Zero
Cpn
,
3/26/26
...
9,919
9,037
8224195.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
2,660
2,448
8224309.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
3,265
3,055
8224480.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
19,544
18,273
8225424.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
3,429
3,163
8225563.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
2,797
2,529
8225675.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
2,021
1,891
8225769.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
18,400
16,959
8226308.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
4,626
4,298
8226398.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
1,921
1,767
8226412.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
585
531
8226419.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
1,754
1,600
8226448.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
31,240
29,241
8226864.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
2,270
2,091
8226908.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
4,272
3,936
8227008.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
14,809
13,856
8227182.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
32,101
29,895
8227883.SQ.FTS.B
,
Zero
Cpn
,
3/27/26
...
27,683
25,525
8228042.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
19,119
17,895
8228286.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
11,943
10,944
8228481.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
8,945
8,047
8228833.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
4,308
3,940
8228910.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
2,735
2,450
8228975.SQ.FTS.B
,
Zero
Cpn
,
3/28/26
...
31,369
29,115
8229550.SQ.FTS.B
,
Zero
Cpn
,
3/29/26
...
22,626
20,774
8230226.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
3,718
3,479
8230300.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
14,001
12,648
8231122.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
1,522
1,411
8231192.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
48,295
44,841
8232751.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
1,069
968
8232774.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
60,729
55,731
8233929.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
10,546
9,788
8234119.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
3,396
3,179
8234250.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
2,087
1,908
8234319.SQ.FTS.B
,
Zero
Cpn
,
3/30/26
...
2,635
2,384
8234582.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
17,617
16,406
8235030.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
10,635
9,726
8235313.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
1,182
1,077
8235348.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
20,258
18,869
8236119.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
4,238
3,967
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8236210.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
$
3,154
$
2,937
8236305.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
2,166
1,959
8236342.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
2,088
1,916
8236377.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
4,788
4,355
8236507.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
523
490
8236525.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
8,271
7,559
8236670.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
6,965
6,313
8236780.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
606
564
8236797.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
41,448
38,781
8237577.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
8,112
7,393
8237680.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
34,552
32,048
8238282.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
4,051
3,768
8238428.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
1,704
1,565
8238464.SQ.FTS.B
,
Zero
Cpn
,
4/01/26
...
22,463
21,028
8238750.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
3,968
3,608
8238866.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
8,216
7,553
8238995.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
2,180
2,011
8239025.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
533
496
8239054.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
16,761
15,497
8239718.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
976
906
8239762.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
4,274
3,904
8239892.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
2,411
2,199
8239966.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
1,576
1,475
8240006.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
1,363
1,250
8240040.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
86,453
79,901
8241352.SQ.FTS.B
,
Zero
Cpn
,
4/02/26
...
98,437
91,709
8244618.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
20,697
19,370
8245361.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
10,379
9,718
8245765.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
1,995
1,827
8245869.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
1,497
1,361
8245947.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
6,268
5,811
8246157.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
2,115
1,978
8246212.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
21,457
20,057
8246875.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
2,158
2,020
8246946.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
27,905
25,920
8247535.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
3,333
3,034
8247568.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
6,334
5,785
8247665.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
2,578
2,410
8247695.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
2,268
2,105
8247768.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
1,680
1,525
8247794.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
55,590
51,184
8248493.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
14,862
13,443
8248769.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
6,746
6,166
8248806.SQ.FTS.B
,
Zero
Cpn
,
4/03/26
...
20,437
18,585
8248923.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
16,029
14,926
8249450.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
1,884
1,738
8249538.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
594
540
8249550.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
2,898
2,623
8249656.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
16,179
15,129
8250191.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
958
878
8250208.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
9,383
8,614
8250376.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
7,817
7,215
8250480.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
10,827
10,126
8250709.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
2,362
2,172
8250756.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
13,194
12,232
8250977.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
7,025
6,574
8251137.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
8,127
7,570
8251328.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
37,157
34,586
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8251982.SQ.FTS.B
,
Zero
Cpn
,
4/04/26
...
$
71,670
$
66,675
8252565.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
4,363
3,948
8252642.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
3,376
3,112
8252691.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
3,165
2,961
8252744.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
10,612
9,926
8252899.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
745
676
8252910.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
2,152
1,964
8252937.SQ.FTS.B
,
Zero
Cpn
,
4/05/26
...
43,168
40,055
8253601.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
3,555
3,324
8253659.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
897
823
8253676.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
2,174
2,016
8253717.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
2,236
2,063
8253754.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
7,464
6,946
8253883.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
7,046
6,532
8253968.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
25,382
23,625
8254363.SQ.FTS.B
,
Zero
Cpn
,
4/06/26
...
7,939
7,388
8254812.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
966
873
8254825.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
3,227
2,955
8254966.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
5,516
5,159
8255180.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
5,138
4,748
8255354.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
1,173
1,093
8255421.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
18,510
17,174
8255929.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
6,633
6,060
8256099.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
1,645
1,503
8256149.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
1,146
1,033
8256206.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
9,153
8,372
8256384.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
11,643
10,728
8256593.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
3,024
2,768
8256652.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
3,619
3,349
8256755.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
9,444
8,787
8256969.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
49,069
44,683
8257850.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
27,489
25,463
8258217.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
867
789
8258232.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
5,473
5,005
8258334.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
933
691
8258449.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
1,868
1,703
8258502.SQ.FTS.B
,
Zero
Cpn
,
4/07/26
...
5,412
5,014
8258562.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
724
665
8258586.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
3,219
3,011
8258689.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
33,924
31,379
8259815.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
4,505
4,093
8259927.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
315
295
8259944.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
21,548
20,043
8260322.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
64,944
60,743
8261170.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
2,112
1,936
8261191.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
1,338
1,224
8261206.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
11,791
10,824
8261349.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
2,629
2,425
8261394.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
4,099
3,764
8261467.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
14,929
13,650
8261789.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
5,947
5,491
8261930.SQ.FTS.B
,
Zero
Cpn
,
4/08/26
...
20,986
19,368
8262152.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
3,345
3,060
8262263.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
2,917
2,647
8262349.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
32,259
29,583
8263337.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
1,135
1,029
8263370.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
1,314
1,205
8263419.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
9,425
8,813
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8263605.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
$
2,894
$
2,644
8263641.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
5,486
5,018
8263745.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
16,939
15,841
8264170.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
10,626
9,935
8264370.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
2,270
2,107
8264409.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
1,000
919
8264430.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
3,520
3,278
8264550.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
15,670
14,592
8264838.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
8,469
7,848
8265059.SQ.FTS.B
,
Zero
Cpn
,
4/09/26
...
53,160
49,079
8269620.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
1,884
1,724
8269697.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
2,467
2,306
8269756.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
9,567
8,831
8270048.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
2,510
2,316
8270129.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
3,763
3,453
8270250.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
4,019
3,591
8270552.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
22,054
20,615
8271289.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
3,485
3,194
8271343.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
2,763
2,544
8271380.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
14,706
13,746
8271652.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
934
860
8271679.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
6,916
6,464
8271869.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
6,268
5,827
8272063.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
7,576
7,048
8272231.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
14,511
13,210
8272588.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
30,504
27,967
8273128.SQ.FTS.B
,
Zero
Cpn
,
4/10/26
...
33,068
30,306
8273623.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
7,113
6,562
8273922.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
77,152
72,127
8275947.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
1,591
1,455
8275956.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
50,849
47,530
8276746.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
9,965
9,139
8276869.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
27,770
25,842
8277202.SQ.FTS.B
,
Zero
Cpn
,
4/11/26
...
9,443
8,772
8277446.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
1,877
1,725
8277477.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
33,589
30,913
8277930.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
1,044
958
8277957.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
906
840
8277973.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
17,163
15,893
8278232.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
4,574
4,238
8278299.SQ.FTS.B
,
Zero
Cpn
,
4/12/26
...
5,460
4,981
8278391.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
12,955
12,051
8278582.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
7,002
6,423
8278695.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
1,246
1,137
8278723.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
5,789
5,411
8278822.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
3,788
3,437
8278895.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
2,070
1,872
8278916.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
16,566
15,418
8279177.SQ.FTS.B
,
Zero
Cpn
,
4/13/26
...
7,297
6,816
8279290.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
1,828
1,688
8279326.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
5,460
5,103
8279393.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
2,465
2,242
8279441.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
3,384
3,163
8279483.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
7,729
7,223
8279601.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
23,000
21,256
8279907.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
1,025
936
8279926.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
1,003
903
8279933.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
6,975
6,348
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8280006.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
$
1,309
$
1,189
8280017.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
30,996
28,969
8280371.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
2,135
1,942
8280386.SQ.FTS.B
,
Zero
Cpn
,
4/14/26
...
71,656
66,993
8281860.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
7,041
6,524
8282041.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
28,676
26,464
8282628.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
3,850
3,598
8282720.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
5,466
5,083
8282795.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
2,697
2,522
8282849.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
10,948
10,157
8283179.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
9,093
8,461
8283355.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
21,806
20,282
8283700.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
7,912
7,360
8283828.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
2,866
2,622
8283879.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
43,920
41,044
8284632.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
7,728
7,070
8284699.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
4,051
3,731
8284751.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
4,649
4,286
8284791.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
2,271
2,097
8284829.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
1,714
1,588
8284852.SQ.FTS.B
,
Zero
Cpn
,
4/15/26
...
8,459
7,905
8284942.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
70,553
64,125
8286574.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
8,514
7,951
8286678.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
558
511
8286690.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
2,449
2,234
8286722.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
7,759
7,188
8286845.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
1,768
1,617
8286857.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
26,241
24,405
8287243.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
16,069
14,877
8287420.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
7,601
6,990
8287565.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
4,486
4,093
8287641.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
11,325
10,535
8287823.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
11,115
10,204
8287959.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
5,617
5,249
8288049.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
29,382
27,189
8288479.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
7,774
7,104
8288529.SQ.FTS.B
,
Zero
Cpn
,
4/16/26
...
11,303
10,340
8290901.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
94,678
88,435
8293348.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
27,712
25,683
8293933.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
18,835
17,594
8294297.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
8,068
7,393
8294417.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
5,207
4,720
8294550.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
1,624
1,493
8294565.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
3,814
3,469
8294653.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
1,221
1,092
8294683.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
6,650
6,212
8294806.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
4,003
3,646
8294883.SQ.FTS.B
,
Zero
Cpn
,
4/17/26
...
37,997
35,051
8295012.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
1,875
1,729
8295071.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
2,478
2,251
8295116.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
42,095
38,514
8296579.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
1,242
1,146
8296606.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
1,117
1,014
8296631.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
18,534
17,230
8296998.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
4,474
4,179
8297057.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
49,696
46,418
8298055.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
3,071
2,869
8298108.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
1,447
1,328
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8298131.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
$
3,104
$
2,845
8298170.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
15,003
14,016
8298447.SQ.FTS.B
,
Zero
Cpn
,
4/18/26
...
26,531
24,396
8298581.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
16,165
14,918
8298827.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
9,353
8,660
8298976.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
1,130
1,026
8298996.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
2,408
2,221
8299034.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
29,164
27,240
8299473.SQ.FTS.B
,
Zero
Cpn
,
4/19/26
...
2,895
2,629
8299512.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
3,311
3,054
8299550.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
7,802
7,171
8299665.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
1,539
1,398
8299689.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
9,577
8,707
8299830.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
3,838
3,554
8299881.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
14,569
13,610
8300107.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
11,200
10,461
8300261.SQ.FTS.B
,
Zero
Cpn
,
4/20/26
...
17,429
15,955
8300914.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
16,591
15,493
8301584.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,271
2,096
8301718.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,274
2,077
8301755.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
5,923
5,413
8301895.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
3,168
2,898
8301956.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
3,796
3,514
8302044.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
6,750
6,303
8302242.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
10,823
10,108
8302399.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
39,591
36,660
8303071.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
17,579
16,417
8303301.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
1,262
1,153
8303323.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
15,520
14,366
8303508.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
10,106
9,439
8303656.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
18,998
17,744
8303872.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
3,608
3,367
8303922.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
844
768
8303944.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,998
2,746
8303970.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
12,144
11,129
8304120.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,175
2,030
8304151.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
4,746
4,321
8304208.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
4,767
4,319
8304270.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
4,109
3,789
8304334.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
9,025
8,357
8304472.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,356
2,155
8304513.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
3,103
2,884
8304595.SQ.FTS.B
,
Zero
Cpn
,
4/21/26
...
2,051
1,900
8304649.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
9,819
8,962
8305027.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
21,363
19,569
8305771.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
5,507
5,141
8305906.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
30,660
28,628
8306524.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
6,333
5,775
8306625.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
21,223
19,293
8306964.SQ.FTS.B
,
Zero
Cpn
,
4/22/26
...
85,189
79,574
8308031.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
5,628
5,253
8308182.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
2,329
2,120
8308237.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
8,740
8,162
8308558.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
9,039
8,403
8308934.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
30,400
28,381
8309591.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
2,495
2,279
8309618.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
1,126
1,051
8309637.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
36,907
34,465
Description
Principal
Amount
Value
Block,
Inc.
(continued)
8310230.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
$
60,542
$
56,515
8311186.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
1,511
1,375
8311220.SQ.FTS.B
,
Zero
Cpn
,
4/23/26
...
16,284
15,076
8313509.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
97,232
90,350
8316104.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
7,599
7,092
8316235.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
33,970
31,561
8316951.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
8,720
8,042
8317134.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
3,059
2,821
8317207.SQ.FTS.B
,
Zero
Cpn
,
4/24/26
...
9,840
9,103
8317414.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
3,807
3,468
8317620.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
14,148
13,143
8318218.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
672
626
8318235.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
2,495
2,301
8318289.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
14,766
13,520
8318666.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
18,525
16,967
8319061.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
2,246
2,052
8319131.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
4,504
4,204
8319265.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
6,732
6,185
8319410.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
7,790
7,248
8319597.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
3,032
2,757
8319657.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
21,025
19,386
8320034.SQ.FTS.B
,
Zero
Cpn
,
4/25/26
...
65,722
60,808
8321018.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
1,625
1,484
8321043.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
4,796
4,380
8321081.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
6,751
6,181
8321167.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
1,139
1,060
8321183.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
27,927
25,657
8321464.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
1,345
1,241
8321485.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
16,777
15,585
8321681.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
3,940
3,668
8321734.SQ.FTS.B
,
Zero
Cpn
,
4/26/26
...
14,115
13,171
8321877.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
16,525
15,350
8322081.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
2,726
2,544
8322107.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
3,620
3,297
8322145.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
8,336
7,634
8322242.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
5,392
4,919
8322318.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
4,602
4,199
8322373.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
1,174
1,071
8322385.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
4,223
3,940
8322441.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
4,272
3,912
8322500.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
14,822
13,567
8322680.SQ.FTS.B
,
Zero
Cpn
,
4/27/26
...
13,861
12,778
8323377.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
6,376
5,805
8323623.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
2,096
1,919
8323662.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
1,535
1,410
8323711.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
37,321
34,668
8324693.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
5,680
5,301
8324769.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
2,322
2,134
8324800.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
2,188
2,004
8324830.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
2,988
2,788
8325680.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
17,040
15,902
8326120.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
1,925
1,792
8326172.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
571
530
8326179.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
6,252
5,725
8326359.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
4,090
3,817
8326484.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
8,674
8,057
8326653.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
8,959
8,322
8326870.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
12,383
11,503
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
8327086.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
$
1,730
$
1,601
8327123.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
2,876
2,661
8327173.SQ.FTS.B
,
Zero
Cpn
,
4/28/26
...
3,155
2,873
4578615.SQ.FTS.B
,
Zero
Cpn
,
4/01/33
...
1,525
–
4580233.SQ.FTS.B
,
Zero
Cpn
,
4/01/33
...
233
–
4583983.SQ.FTS.B
,
Zero
Cpn
,
4/04/33
...
3,383
–
4585288.SQ.FTS.B
,
Zero
Cpn
,
4/04/33
...
13,554
–
4587010.SQ.FTS.B
,
Zero
Cpn
,
4/05/33
...
1,755
–
4588245.SQ.FTS.B
,
Zero
Cpn
,
4/05/33
...
3,204
–
4589702.SQ.FTS.B
,
Zero
Cpn
,
4/05/33
...
3,489
–
4590358.SQ.FTS.B
,
Zero
Cpn
,
4/05/33
...
226
–
4598182.SQ.FTS.B
,
Zero
Cpn
,
4/07/33
...
1,281
–
4602285.SQ.FTS.B
,
Zero
Cpn
,
4/08/33
...
31,712
–
4604615.SQ.FTS.B
,
Zero
Cpn
,
4/09/33
...
13,726
–
4604886.SQ.FTS.B
,
Zero
Cpn
,
4/10/33
...
2,273
–
4606179.SQ.FTS.B
,
Zero
Cpn
,
4/11/33
...
10,364
–
4606335.SQ.FTS.B
,
Zero
Cpn
,
4/11/33
...
2,103
–
4606464.SQ.FTS.B
,
Zero
Cpn
,
4/11/33
...
12,284
1
4609551.SQ.FTS.B
,
Zero
Cpn
,
4/12/33
...
5,454
–
4610443.SQ.FTS.B
,
Zero
Cpn
,
4/13/33
...
10,147
1
4612920.SQ.FTS.B
,
Zero
Cpn
,
4/13/33
...
2,172
–
4622639.SQ.FTS.B
,
Zero
Cpn
,
4/15/33
...
3,183
–
4624403.SQ.FTS.B
,
Zero
Cpn
,
4/17/33
...
646
–
4624869.SQ.FTS.B
,
Zero
Cpn
,
4/17/33
...
1,488
–
4626298.SQ.FTS.B
,
Zero
Cpn
,
4/18/33
...
10,268
–
4626514.SQ.FTS.B
,
Zero
Cpn
,
4/18/33
...
2,949
1
4627586.SQ.FTS.B
,
Zero
Cpn
,
4/18/33
...
4,624
–
4629149.SQ.FTS.B
,
Zero
Cpn
,
4/19/33
...
6,425
–
4632596.SQ.FTS.B
,
Zero
Cpn
,
4/20/33
...
848
–
4635753.SQ.FTS.B
,
Zero
Cpn
,
4/21/33
...
11,156
–
4642502.SQ.FTS.B
,
Zero
Cpn
,
4/25/33
...
757
–
4643970.SQ.FTS.B
,
Zero
Cpn
,
4/26/33
...
2,081
–
4656958.SQ.FTS.B
,
Zero
Cpn
,
4/30/33
...
3,103
–
4657373.SQ.FTS.B
,
Zero
Cpn
,
4/30/33
...
3,122
–
4661015.SQ.FTS.B
,
Zero
Cpn
,
5/01/33
...
2,307
–
4661890.SQ.FTS.B
,
Zero
Cpn
,
5/02/33
...
2,289
–
4662184.SQ.FTS.B
,
Zero
Cpn
,
5/02/33
...
2,428
–
4663096.SQ.FTS.B
,
Zero
Cpn
,
5/02/33
...
27,120
–
4663916.SQ.FTS.B
,
Zero
Cpn
,
5/02/33
...
24,742
1
4665676.SQ.FTS.B
,
Zero
Cpn
,
5/03/33
...
4,624
–
4675799.SQ.FTS.B
,
Zero
Cpn
,
5/05/33
...
3,282
–
4677893.SQ.FTS.B
,
Zero
Cpn
,
5/06/33
...
2,173
–
4691756.SQ.FTS.B
,
Zero
Cpn
,
5/09/33
...
7,269
–
4692191.SQ.FTS.B
,
Zero
Cpn
,
5/09/33
...
9,113
–
4692982.SQ.FTS.B
,
Zero
Cpn
,
5/09/33
...
430
–
4693423.SQ.FTS.B
,
Zero
Cpn
,
5/09/33
...
7,605
1
4693941.SQ.FTS.B
,
Zero
Cpn
,
5/09/33
...
8,872
–
4701939.SQ.FTS.B
,
Zero
Cpn
,
5/10/33
...
1,446
–
4706450.SQ.FTS.B
,
Zero
Cpn
,
5/10/33
...
6,009
–
4706808.SQ.FTS.B
,
Zero
Cpn
,
5/10/33
...
5,406
–
4707248.SQ.FTS.B
,
Zero
Cpn
,
5/11/33
...
641
–
4711828.SQ.FTS.B
,
Zero
Cpn
,
5/12/33
...
3,618
–
4714060.SQ.FTS.B
,
Zero
Cpn
,
5/13/33
...
1,082
–
4714469.SQ.FTS.B
,
Zero
Cpn
,
5/14/33
...
828
–
4738688.SQ.FTS.B
,
Zero
Cpn
,
5/18/33
...
840
–
4747188.SQ.FTS.B
,
Zero
Cpn
,
5/19/33
...
553
–
4750103.SQ.FTS.B
,
Zero
Cpn
,
5/20/33
...
8,831
–
4750803.SQ.FTS.B
,
Zero
Cpn
,
5/21/33
...
3,382
–
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4754132.SQ.FTS.B
,
Zero
Cpn
,
5/22/33
...
$
847
$
–
4764584.SQ.FTS.B
,
Zero
Cpn
,
5/23/33
...
523
–
4773604.SQ.FTS.B
,
Zero
Cpn
,
5/24/33
...
9,605
–
4774144.SQ.FTS.B
,
Zero
Cpn
,
5/24/33
...
1,718
–
4777853.SQ.FTS.B
,
Zero
Cpn
,
5/24/33
...
1,347
–
4779678.SQ.FTS.B
,
Zero
Cpn
,
5/25/33
...
1,115
–
4782528.SQ.FTS.B
,
Zero
Cpn
,
5/26/33
...
51
–
4790824.SQ.FTS.B
,
Zero
Cpn
,
5/29/33
...
3,330
–
4796651.SQ.FTS.B
,
Zero
Cpn
,
6/01/33
...
3,524
–
4807880.SQ.FTS.B
,
Zero
Cpn
,
6/02/33
...
19,691
2
4808500.SQ.FTS.B
,
Zero
Cpn
,
6/02/33
...
7,711
–
4815646.SQ.FTS.B
,
Zero
Cpn
,
6/05/33
...
5,300
–
4820091.SQ.FTS.B
,
Zero
Cpn
,
6/07/33
...
1,630
–
4820553.SQ.FTS.B
,
Zero
Cpn
,
6/07/33
...
10,164
–
4821904.SQ.FTS.B
,
Zero
Cpn
,
6/08/33
...
796
–
4830931.SQ.FTS.B
,
Zero
Cpn
,
6/10/33
...
53
–
4831001.SQ.FTS.B
,
Zero
Cpn
,
6/10/33
...
847
–
4831110.SQ.FTS.B
,
Zero
Cpn
,
6/10/33
...
962
–
4831653.SQ.FTS.B
,
Zero
Cpn
,
6/10/33
...
2,099
–
4834162.SQ.FTS.B
,
Zero
Cpn
,
6/12/33
...
208
–
4838333.SQ.FTS.B
,
Zero
Cpn
,
6/14/33
...
750
–
4839102.SQ.FTS.B
,
Zero
Cpn
,
6/14/33
...
1,596
–
4841116.SQ.FTS.B
,
Zero
Cpn
,
6/15/33
...
11,234
–
4842605.SQ.FTS.B
,
Zero
Cpn
,
6/15/33
...
4,000
–
4842631.SQ.FTS.B
,
Zero
Cpn
,
6/15/33
...
5,776
–
4848622.SQ.FTS.B
,
Zero
Cpn
,
6/16/33
...
2,069
–
4862341.SQ.FTS.B
,
Zero
Cpn
,
6/18/33
...
527
–
4862443.SQ.FTS.B
,
Zero
Cpn
,
6/18/33
...
7,578
–
4862938.SQ.FTS.B
,
Zero
Cpn
,
6/19/33
...
691
–
4862998.SQ.FTS.B
,
Zero
Cpn
,
6/19/33
...
1,298
–
4863062.SQ.FTS.B
,
Zero
Cpn
,
6/19/33
...
3,882
–
4863238.SQ.FTS.B
,
Zero
Cpn
,
6/19/33
...
2,993
–
4863412.SQ.FTS.B
,
Zero
Cpn
,
6/19/33
...
11,632
–
4867257.SQ.FTS.B
,
Zero
Cpn
,
6/20/33
...
607
–
4867843.SQ.FTS.B
,
Zero
Cpn
,
6/21/33
...
493
–
4868757.SQ.FTS.B
,
Zero
Cpn
,
6/21/33
...
3,219
1
4869815.SQ.FTS.B
,
Zero
Cpn
,
6/21/33
...
7,257
–
4871837.SQ.FTS.B
,
Zero
Cpn
,
6/22/33
...
1,490
–
4872072.SQ.FTS.B
,
Zero
Cpn
,
6/22/33
...
4,085
–
4873297.SQ.FTS.B
,
Zero
Cpn
,
6/22/33
...
113
–
4873313.SQ.FTS.B
,
Zero
Cpn
,
6/22/33
...
1,287
–
4873405.SQ.FTS.B
,
Zero
Cpn
,
6/22/33
...
5,886
–
4874157.SQ.FTS.B
,
Zero
Cpn
,
6/23/33
...
3,873
–
4874535.SQ.FTS.B
,
Zero
Cpn
,
6/23/33
...
977
–
4874845.SQ.FTS.B
,
Zero
Cpn
,
6/23/33
...
3,811
–
4875940.SQ.FTS.B
,
Zero
Cpn
,
6/23/33
...
7,944
1
4877067.SQ.FTS.B
,
Zero
Cpn
,
6/24/33
...
1,174
–
4877254.SQ.FTS.B
,
Zero
Cpn
,
6/25/33
...
1,462
–
4877394.SQ.FTS.B
,
Zero
Cpn
,
6/25/33
...
4,239
–
4877534.SQ.FTS.B
,
Zero
Cpn
,
6/25/33
...
1,841
–
4878103.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
627
–
4878787.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
4,067
–
4879124.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
4,098
–
4879371.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
536
–
4879728.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
2,694
–
4879828.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
1,496
–
4880273.SQ.FTS.B
,
Zero
Cpn
,
6/27/33
...
32,499
1
4880840.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
1,208
–
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4880881.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
$
274
$
–
4881595.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
1,106
–
4881625.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
1,074
–
4881632.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
5,202
–
4881933.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
502
–
4881967.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
780
–
4882127.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
35,043
–
4882630.SQ.FTS.B
,
Zero
Cpn
,
6/28/33
...
5,042
1
4886903.SQ.FTS.B
,
Zero
Cpn
,
6/30/33
...
2,071
–
4886912.SQ.FTS.B
,
Zero
Cpn
,
6/30/33
...
2,287
–
4889268.SQ.FTS.B
,
Zero
Cpn
,
6/30/33
...
524
–
4889574.SQ.FTS.B
,
Zero
Cpn
,
7/01/33
...
2,601
–
4893066.SQ.FTS.B
,
Zero
Cpn
,
7/04/33
...
3,265
–
4894101.SQ.FTS.B
,
Zero
Cpn
,
7/04/33
...
12,955
1
4896547.SQ.FTS.B
,
Zero
Cpn
,
7/05/33
...
4,712
–
4898852.SQ.FTS.B
,
Zero
Cpn
,
7/06/33
...
2,213
–
4899151.SQ.FTS.B
,
Zero
Cpn
,
7/06/33
...
3,147
–
4907364.SQ.FTS.B
,
Zero
Cpn
,
7/11/33
...
1,373
–
4908064.SQ.FTS.B
,
Zero
Cpn
,
7/11/33
...
16,814
1
4916400.SQ.FTS.B
,
Zero
Cpn
,
7/14/33
...
955
–
4916673.SQ.FTS.B
,
Zero
Cpn
,
7/14/33
...
9,163
–
4922562.SQ.FTS.B
,
Zero
Cpn
,
7/14/33
...
6,112
–
4923493.SQ.FTS.B
,
Zero
Cpn
,
7/15/33
...
134
–
4925329.SQ.FTS.B
,
Zero
Cpn
,
7/18/33
...
1,389
–
4928876.SQ.FTS.B
,
Zero
Cpn
,
7/19/33
...
514
–
4931020.SQ.FTS.B
,
Zero
Cpn
,
7/20/33
...
10,152
–
4935511.SQ.FTS.B
,
Zero
Cpn
,
7/22/33
...
450
–
4941224.SQ.FTS.B
,
Zero
Cpn
,
7/25/33
...
4,401
–
4947272.SQ.FTS.B
,
Zero
Cpn
,
7/27/33
...
1,224
–
4954105.SQ.FTS.B
,
Zero
Cpn
,
7/28/33
...
2,531
–
4961597.SQ.FTS.B
,
Zero
Cpn
,
7/31/33
...
6,826
–
4964338.SQ.FTS.B
,
Zero
Cpn
,
8/01/33
...
1,028
–
4975322.SQ.FTS.B
,
Zero
Cpn
,
8/05/33
...
1,106
–
4976561.SQ.FTS.B
,
Zero
Cpn
,
8/07/33
...
2,306
–
4977248.SQ.FTS.B
,
Zero
Cpn
,
8/07/33
...
23,393
1
4978982.SQ.FTS.B
,
Zero
Cpn
,
8/08/33
...
8,763
1
4979694.SQ.FTS.B
,
Zero
Cpn
,
8/08/33
...
7,423
–
4980976.SQ.FTS.B
,
Zero
Cpn
,
8/08/33
...
3,062
–
4981159.SQ.FTS.B
,
Zero
Cpn
,
8/09/33
...
3,162
–
4983108.SQ.FTS.B
,
Zero
Cpn
,
8/09/33
...
419
–
4989442.SQ.FTS.B
,
Zero
Cpn
,
8/11/33
...
717
–
4990668.SQ.FTS.B
,
Zero
Cpn
,
8/12/33
...
1,655
–
4995431.SQ.FTS.B
,
Zero
Cpn
,
8/15/33
...
6,247
–
5004424.SQ.FTS.B
,
Zero
Cpn
,
8/16/33
...
1,829
–
5016072.SQ.FTS.B
,
Zero
Cpn
,
8/17/33
...
5,014
–
5025752.SQ.FTS.B
,
Zero
Cpn
,
8/19/33
...
6,406
–
5025882.SQ.FTS.B
,
Zero
Cpn
,
8/19/33
...
1,669
–
5027373.SQ.FTS.B
,
Zero
Cpn
,
8/21/33
...
8,844
–
5030831.SQ.FTS.B
,
Zero
Cpn
,
8/22/33
...
5,213
–
5031471.SQ.FTS.B
,
Zero
Cpn
,
8/22/33
...
5,258
–
5033148.SQ.FTS.B
,
Zero
Cpn
,
8/23/33
...
471
–
5035669.SQ.FTS.B
,
Zero
Cpn
,
8/23/33
...
3,399
–
5044258.SQ.FTS.B
,
Zero
Cpn
,
8/27/33
...
8,147
2
5044794.SQ.FTS.B
,
Zero
Cpn
,
8/28/33
...
5,731
–
5045662.SQ.FTS.B
,
Zero
Cpn
,
8/28/33
...
2,040
–
5047314.SQ.FTS.B
,
Zero
Cpn
,
8/28/33
...
460
–
5047321.SQ.FTS.B
,
Zero
Cpn
,
8/28/33
...
5,110
–
5059326.SQ.FTS.B
,
Zero
Cpn
,
9/04/33
...
13,048
–
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5062340.SQ.FTS.B
,
Zero
Cpn
,
9/06/33
...
$
2,074
$
–
5062512.SQ.FTS.B
,
Zero
Cpn
,
9/06/33
...
3,648
–
5065404.SQ.FTS.B
,
Zero
Cpn
,
9/07/33
...
2,639
–
5067242.SQ.FTS.B
,
Zero
Cpn
,
9/08/33
...
5,386
–
5067403.SQ.FTS.B
,
Zero
Cpn
,
9/08/33
...
2,045
–
5071139.SQ.FTS.B
,
Zero
Cpn
,
9/09/33
...
2,742
1
5072967.SQ.FTS.B
,
Zero
Cpn
,
9/10/33
...
542
–
5074442.SQ.FTS.B
,
Zero
Cpn
,
9/10/33
...
1,909
–
5075119.SQ.FTS.B
,
Zero
Cpn
,
9/10/33
...
1,106
–
5077583.SQ.FTS.B
,
Zero
Cpn
,
9/11/33
...
3,691
–
5081612.SQ.FTS.B
,
Zero
Cpn
,
9/14/33
...
1,324
–
5084934.SQ.FTS.B
,
Zero
Cpn
,
9/16/33
...
33,929
–
5085858.SQ.FTS.B
,
Zero
Cpn
,
9/16/33
...
884
–
5090272.SQ.FTS.B
,
Zero
Cpn
,
9/17/33
...
4,187
–
5093863.SQ.FTS.B
,
Zero
Cpn
,
9/19/33
...
9,864
–
5094427.SQ.FTS.B
,
Zero
Cpn
,
9/20/33
...
2,121
–
5095917.SQ.FTS.B
,
Zero
Cpn
,
9/21/33
...
17,638
–
5096674.SQ.FTS.B
,
Zero
Cpn
,
9/21/33
...
13,763
1
5098275.SQ.FTS.B
,
Zero
Cpn
,
9/22/33
...
6,026
–
5100485.SQ.FTS.B
,
Zero
Cpn
,
9/23/33
...
4,264
–
5106538.SQ.FTS.B
,
Zero
Cpn
,
9/24/33
...
11,727
–
5107353.SQ.FTS.B
,
Zero
Cpn
,
9/24/33
...
1,383
–
5109145.SQ.FTS.B
,
Zero
Cpn
,
9/25/33
...
1,195
–
5111024.SQ.FTS.B
,
Zero
Cpn
,
9/27/33
...
1,787
–
5112445.SQ.FTS.B
,
Zero
Cpn
,
9/28/33
...
344
–
5112955.SQ.FTS.B
,
Zero
Cpn
,
9/28/33
...
4,811
–
5113266.SQ.FTS.B
,
Zero
Cpn
,
9/28/33
...
1,765
–
5114206.SQ.FTS.B
,
Zero
Cpn
,
9/28/33
...
573
–
5119131.SQ.FTS.B
,
Zero
Cpn
,
9/30/33
...
2,277
–
5119221.SQ.FTS.B
,
Zero
Cpn
,
9/30/33
...
2,448
–
5124518.SQ.FTS.B
,
Zero
Cpn
,
9/30/33
...
11,687
–
5126438.SQ.FTS.B
,
Zero
Cpn
,
10/01/33
..
22,782
1
5128413.SQ.FTS.B
,
Zero
Cpn
,
10/02/33
..
1,332
–
5131669.SQ.FTS.B
,
Zero
Cpn
,
10/04/33
..
22,967
–
5132006.SQ.FTS.B
,
Zero
Cpn
,
10/04/33
..
790
–
5138072.SQ.FTS.B
,
Zero
Cpn
,
10/06/33
..
4,185
–
5141482.SQ.FTS.B
,
Zero
Cpn
,
10/07/33
..
2,827
–
5142028.SQ.FTS.B
,
Zero
Cpn
,
10/07/33
..
612
–
5142049.SQ.FTS.B
,
Zero
Cpn
,
10/07/33
..
537
–
5149269.SQ.FTS.B
,
Zero
Cpn
,
10/10/33
..
941
–
5150453.SQ.FTS.B
,
Zero
Cpn
,
10/11/33
..
102
–
5152822.SQ.FTS.B
,
Zero
Cpn
,
10/11/33
..
2,430
–
5153369.SQ.FTS.B
,
Zero
Cpn
,
10/11/33
..
12,680
–
5153956.SQ.FTS.B
,
Zero
Cpn
,
10/12/33
..
2,957
–
5154314.SQ.FTS.B
,
Zero
Cpn
,
10/12/33
..
2,780
–
5154612.SQ.FTS.B
,
Zero
Cpn
,
10/12/33
..
1,314
–
5157152.SQ.FTS.B
,
Zero
Cpn
,
10/12/33
..
4,186
–
5157821.SQ.FTS.B
,
Zero
Cpn
,
10/13/33
..
4,950
–
5159643.SQ.FTS.B
,
Zero
Cpn
,
10/13/33
..
1,281
–
5162509.SQ.FTS.B
,
Zero
Cpn
,
10/14/33
..
55,221
–
5163000.SQ.FTS.B
,
Zero
Cpn
,
10/14/33
..
6,619
–
5165754.SQ.FTS.B
,
Zero
Cpn
,
10/14/33
..
1,218
–
5168750.SQ.FTS.B
,
Zero
Cpn
,
10/15/33
..
2,545
–
5170843.SQ.FTS.B
,
Zero
Cpn
,
10/15/33
..
14,553
–
5171656.SQ.FTS.B
,
Zero
Cpn
,
10/16/33
..
875
–
5172517.SQ.FTS.B
,
Zero
Cpn
,
10/17/33
..
3,231
–
5173148.SQ.FTS.B
,
Zero
Cpn
,
10/17/33
..
670
–
5175259.SQ.FTS.B
,
Zero
Cpn
,
10/18/33
..
69
–
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5175826.SQ.FTS.B
,
Zero
Cpn
,
10/18/33
..
$
3,657
$
–
5176617.SQ.FTS.B
,
Zero
Cpn
,
10/18/33
..
935
–
5176935.SQ.FTS.B
,
Zero
Cpn
,
10/18/33
..
489
–
5177078.SQ.FTS.B
,
Zero
Cpn
,
10/18/33
..
260
–
5184366.SQ.FTS.B
,
Zero
Cpn
,
10/19/33
..
3,564
–
5189604.SQ.FTS.B
,
Zero
Cpn
,
10/20/33
..
4,636
–
5203735.SQ.FTS.B
,
Zero
Cpn
,
10/21/33
..
6,108
–
5210519.SQ.FTS.B
,
Zero
Cpn
,
10/24/33
..
11,522
–
5223636.SQ.FTS.B
,
Zero
Cpn
,
10/27/33
..
2,509
–
5230330.SQ.FTS.B
,
Zero
Cpn
,
10/28/33
..
1,320
–
5230601.SQ.FTS.B
,
Zero
Cpn
,
10/28/33
..
5,805
–
5234006.SQ.FTS.B
,
Zero
Cpn
,
10/28/33
..
25,481
2
5238828.SQ.FTS.B
,
Zero
Cpn
,
10/29/33
..
19,166
–
5240481.SQ.FTS.B
,
Zero
Cpn
,
10/30/33
..
1,280
–
5240546.SQ.FTS.B
,
Zero
Cpn
,
10/30/33
..
1,371
–
5240561.SQ.FTS.B
,
Zero
Cpn
,
10/30/33
..
993
–
5240923.SQ.FTS.B
,
Zero
Cpn
,
11/01/33
..
7,658
–
5245023.SQ.FTS.B
,
Zero
Cpn
,
11/02/33
..
1,235
–
5251953.SQ.FTS.B
,
Zero
Cpn
,
11/04/33
..
1,860
–
5252966.SQ.FTS.B
,
Zero
Cpn
,
11/04/33
..
2,234
–
5256925.SQ.FTS.B
,
Zero
Cpn
,
11/04/33
..
12,594
1
5267196.SQ.FTS.B
,
Zero
Cpn
,
11/06/33
..
2,396
–
5267302.SQ.FTS.B
,
Zero
Cpn
,
11/06/33
..
212
–
5270825.SQ.FTS.B
,
Zero
Cpn
,
11/06/33
..
4,533
–
5273714.SQ.FTS.B
,
Zero
Cpn
,
11/08/33
..
2,002
–
5276774.SQ.FTS.B
,
Zero
Cpn
,
11/09/33
..
3,264
–
5280986.SQ.FTS.B
,
Zero
Cpn
,
11/10/33
..
1,327
–
5284007.SQ.FTS.B
,
Zero
Cpn
,
11/11/33
..
1,049
–
5287039.SQ.FTS.B
,
Zero
Cpn
,
11/12/33
..
8,749
–
5288567.SQ.FTS.B
,
Zero
Cpn
,
11/12/33
..
487
–
5288588.SQ.FTS.B
,
Zero
Cpn
,
11/12/33
..
54,775
–
5289917.SQ.FTS.B
,
Zero
Cpn
,
11/12/33
..
702
–
5292026.SQ.FTS.B
,
Zero
Cpn
,
11/13/33
..
5,106
–
5293907.SQ.FTS.B
,
Zero
Cpn
,
11/14/33
..
2,714
–
5293955.SQ.FTS.B
,
Zero
Cpn
,
11/14/33
..
5,278
–
5295255.SQ.FTS.B
,
Zero
Cpn
,
11/16/33
..
1,890
1
5296246.SQ.FTS.B
,
Zero
Cpn
,
11/16/33
..
1,628
–
5300323.SQ.FTS.B
,
Zero
Cpn
,
11/17/33
..
1,387
–
5304517.SQ.FTS.B
,
Zero
Cpn
,
11/17/33
..
2,328
3
5311109.SQ.FTS.B
,
Zero
Cpn
,
11/18/33
..
3,166
13
5312373.SQ.FTS.B
,
Zero
Cpn
,
11/18/33
..
721
–
5317481.SQ.FTS.B
,
Zero
Cpn
,
11/19/33
..
593
–
5319057.SQ.FTS.B
,
Zero
Cpn
,
11/19/33
..
2,284
–
5324739.SQ.FTS.B
,
Zero
Cpn
,
11/21/33
..
310
2
5325009.SQ.FTS.B
,
Zero
Cpn
,
11/22/33
..
6,356
1
5325109.SQ.FTS.B
,
Zero
Cpn
,
11/22/33
..
3,741
–
5325953.SQ.FTS.B
,
Zero
Cpn
,
11/23/33
..
27,323
2
5331997.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
1,138
–
5332017.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
3,457
1
5332382.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
1,453
–
5333523.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
620
–
5333772.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
967
–
5334010.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
435
–
5334017.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
710
–
5334919.SQ.FTS.B
,
Zero
Cpn
,
11/24/33
..
1,216
–
5336258.SQ.FTS.B
,
Zero
Cpn
,
11/25/33
..
4,115
–
5337318.SQ.FTS.B
,
Zero
Cpn
,
11/25/33
..
1,470
–
5364900.SQ.FTS.B
,
Zero
Cpn
,
11/26/33
..
1,391
–
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5365379.SQ.FTS.B
,
Zero
Cpn
,
11/26/33
..
$
768
$
–
5369148.SQ.FTS.B
,
Zero
Cpn
,
11/27/33
..
969
–
5377413.SQ.FTS.B
,
Zero
Cpn
,
11/27/33
..
944
–
5377620.SQ.FTS.B
,
Zero
Cpn
,
11/27/33
..
13,408
32
5378585.SQ.FTS.B
,
Zero
Cpn
,
11/27/33
..
392
1
5393796.SQ.FTS.B
,
Zero
Cpn
,
11/30/33
..
209
5
5397535.SQ.FTS.B
,
Zero
Cpn
,
11/30/33
..
5,543
1
5408127.SQ.FTS.B
,
Zero
Cpn
,
12/01/33
..
1,021
1
5411388.SQ.FTS.B
,
Zero
Cpn
,
12/01/33
..
563
1
5412734.SQ.FTS.B
,
Zero
Cpn
,
12/01/33
..
8,127
–
5413423.SQ.FTS.B
,
Zero
Cpn
,
12/01/33
..
2,550
1
5447961.SQ.FTS.B
,
Zero
Cpn
,
12/02/33
..
697
–
5472760.SQ.FTS.B
,
Zero
Cpn
,
12/04/33
..
3,648
9
5475686.SQ.FTS.B
,
Zero
Cpn
,
12/06/33
..
2,736
–
5479438.SQ.FTS.B
,
Zero
Cpn
,
12/06/33
..
631
–
5480752.SQ.FTS.B
,
Zero
Cpn
,
12/06/33
..
3,098
1
5505930.SQ.FTS.B
,
Zero
Cpn
,
12/07/33
..
1,048
1
5507000.SQ.FTS.B
,
Zero
Cpn
,
12/08/33
..
38,614
1
5515187.SQ.FTS.B
,
Zero
Cpn
,
12/08/33
..
4,692
–
5516154.SQ.FTS.B
,
Zero
Cpn
,
12/08/33
..
12,489
17
5518310.SQ.FTS.B
,
Zero
Cpn
,
12/08/33
..
390
–
5533995.SQ.FTS.B
,
Zero
Cpn
,
12/09/33
..
813
–
5534121.SQ.FTS.B
,
Zero
Cpn
,
12/09/33
..
5,159
2
5534689.SQ.FTS.B
,
Zero
Cpn
,
12/10/33
..
3,849
146
5535547.SQ.FTS.B
,
Zero
Cpn
,
12/10/33
..
4,404
1
5537728.SQ.FTS.B
,
Zero
Cpn
,
12/10/33
..
2,668
–
5537817.SQ.FTS.B
,
Zero
Cpn
,
12/10/33
..
798
–
5537953.SQ.FTS.B
,
Zero
Cpn
,
12/10/33
..
4,030
1
5539948.SQ.FTS.B
,
Zero
Cpn
,
12/11/33
..
1,314
–
5541083.SQ.FTS.B
,
Zero
Cpn
,
12/12/33
..
114
–
5541094.SQ.FTS.B
,
Zero
Cpn
,
12/12/33
..
5,085
1
5546515.SQ.FTS.B
,
Zero
Cpn
,
12/13/33
..
2,064
1
5547946.SQ.FTS.B
,
Zero
Cpn
,
12/14/33
..
1,134
1
5552344.SQ.FTS.B
,
Zero
Cpn
,
12/14/33
..
1,674
–
5554641.SQ.FTS.B
,
Zero
Cpn
,
12/15/33
..
62,255
21
5556696.SQ.FTS.B
,
Zero
Cpn
,
12/15/33
..
5,553
15
5562047.SQ.FTS.B
,
Zero
Cpn
,
12/16/33
..
3,095
4
5563038.SQ.FTS.B
,
Zero
Cpn
,
12/16/33
..
4,772
1
5564628.SQ.FTS.B
,
Zero
Cpn
,
12/17/33
..
2,787
1
5565992.SQ.FTS.B
,
Zero
Cpn
,
12/17/33
..
2,616
7
5568881.SQ.FTS.B
,
Zero
Cpn
,
12/19/33
..
1,314
1
5569070.SQ.FTS.B
,
Zero
Cpn
,
12/19/33
..
29,610
8
5572327.SQ.FTS.B
,
Zero
Cpn
,
12/20/33
..
243
–
5573406.SQ.FTS.B
,
Zero
Cpn
,
12/21/33
..
363
–
5574351.SQ.FTS.B
,
Zero
Cpn
,
12/21/33
..
10,696
14
5575886.SQ.FTS.B
,
Zero
Cpn
,
12/21/33
..
894
1
5585522.SQ.FTS.B
,
Zero
Cpn
,
12/24/33
..
520
9
5586899.SQ.FTS.B
,
Zero
Cpn
,
12/24/33
..
2,468
2
5588173.SQ.FTS.B
,
Zero
Cpn
,
12/25/33
..
5,033
293
5588832.SQ.FTS.B
,
Zero
Cpn
,
12/26/33
..
7,140
3
5589322.SQ.FTS.B
,
Zero
Cpn
,
12/26/33
..
4,040
6
5594180.SQ.FTS.B
,
Zero
Cpn
,
12/28/33
..
732
1
5595624.SQ.FTS.B
,
Zero
Cpn
,
12/28/33
..
789
–
5597497.SQ.FTS.B
,
Zero
Cpn
,
12/29/33
..
1,451
1
5599728.SQ.FTS.B
,
Zero
Cpn
,
12/29/33
..
4,867
3
5600496.SQ.FTS.B
,
Zero
Cpn
,
12/29/33
..
371
–
5600526.SQ.FTS.B
,
Zero
Cpn
,
12/29/33
..
1,008
–
5600632.SQ.FTS.B
,
Zero
Cpn
,
12/29/33
..
3,133
1
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5611517.SQ.FTS.B
,
Zero
Cpn
,
12/30/33
..
$
2,001
$
1
5612507.SQ.FTS.B
,
Zero
Cpn
,
12/30/33
..
11,600
6
5614938.SQ.FTS.B
,
Zero
Cpn
,
1/01/34
...
2,341
72
5616046.SQ.FTS.B
,
Zero
Cpn
,
1/01/34
...
1,631
3
5616216.SQ.FTS.B
,
Zero
Cpn
,
1/01/34
...
5,841
5
5618116.SQ.FTS.B
,
Zero
Cpn
,
1/02/34
...
8,099
4
5618863.SQ.FTS.B
,
Zero
Cpn
,
1/03/34
...
1,492
1
5619464.SQ.FTS.B
,
Zero
Cpn
,
1/04/34
...
646
1
5619959.SQ.FTS.B
,
Zero
Cpn
,
1/04/34
...
2,374
2
5620066.SQ.FTS.B
,
Zero
Cpn
,
1/04/34
...
2,868
3
5623363.SQ.FTS.B
,
Zero
Cpn
,
1/05/34
...
10,990
8
5624299.SQ.FTS.B
,
Zero
Cpn
,
1/05/34
...
6,091
6
5630151.SQ.FTS.B
,
Zero
Cpn
,
1/06/34
...
506
1
5647775.SQ.FTS.B
,
Zero
Cpn
,
1/07/34
...
1,305
1
5654133.SQ.FTS.B
,
Zero
Cpn
,
1/08/34
...
32,774
31
5655643.SQ.FTS.B
,
Zero
Cpn
,
1/09/34
...
4,363
3
5655850.SQ.FTS.B
,
Zero
Cpn
,
1/09/34
...
906
2
5656207.SQ.FTS.B
,
Zero
Cpn
,
1/09/34
...
8,733
11
5662691.SQ.FTS.B
,
Zero
Cpn
,
1/11/34
...
573
2
5663245.SQ.FTS.B
,
Zero
Cpn
,
1/11/34
...
500
–
5663983.SQ.FTS.B
,
Zero
Cpn
,
1/11/34
...
461
2
5666806.SQ.FTS.B
,
Zero
Cpn
,
1/12/34
...
13,430
13
5671581.SQ.FTS.B
,
Zero
Cpn
,
1/12/34
...
18,583
21
5672653.SQ.FTS.B
,
Zero
Cpn
,
1/13/34
...
4,272
353
5673210.SQ.FTS.B
,
Zero
Cpn
,
1/13/34
...
2,838
3
5675130.SQ.FTS.B
,
Zero
Cpn
,
1/13/34
...
490
1
5689248.SQ.FTS.B
,
Zero
Cpn
,
1/14/34
...
1,934
2
5694816.SQ.FTS.B
,
Zero
Cpn
,
1/14/34
...
1,074
1
5695450.SQ.FTS.B
,
Zero
Cpn
,
1/14/34
...
26,182
28
5696963.SQ.FTS.B
,
Zero
Cpn
,
1/15/34
...
8,836
17
5700306.SQ.FTS.B
,
Zero
Cpn
,
1/15/34
...
435
28
5700432.SQ.FTS.B
,
Zero
Cpn
,
1/15/34
...
929
1
5703401.SQ.FTS.B
,
Zero
Cpn
,
1/17/34
...
1,653
4
5703743.SQ.FTS.B
,
Zero
Cpn
,
1/17/34
...
1,220
2
5706022.SQ.FTS.B
,
Zero
Cpn
,
1/18/34
...
194
1
5708392.SQ.FTS.B
,
Zero
Cpn
,
1/18/34
...
9,171
20
5708905.SQ.FTS.B
,
Zero
Cpn
,
1/18/34
...
553
–
5709549.SQ.FTS.B
,
Zero
Cpn
,
1/18/34
...
12,160
11
5721102.SQ.FTS.B
,
Zero
Cpn
,
1/20/34
...
1,302
1
5728577.SQ.FTS.B
,
Zero
Cpn
,
1/21/34
...
3,241
6
5731303.SQ.FTS.B
,
Zero
Cpn
,
1/22/34
...
1,418
2
5732624.SQ.FTS.B
,
Zero
Cpn
,
1/22/34
...
11,619
13
5735573.SQ.FTS.B
,
Zero
Cpn
,
1/24/34
...
5,816
11
5737632.SQ.FTS.B
,
Zero
Cpn
,
1/25/34
...
5,796
8
5741303.SQ.FTS.B
,
Zero
Cpn
,
1/26/34
...
2,044
5
5751520.SQ.FTS.B
,
Zero
Cpn
,
1/28/34
...
2,991
3
5752156.SQ.FTS.B
,
Zero
Cpn
,
1/28/34
...
968
2
5754310.SQ.FTS.B
,
Zero
Cpn
,
1/29/34
...
1,070
2
5754783.SQ.FTS.B
,
Zero
Cpn
,
1/29/34
...
2,120
3
5755879.SQ.FTS.B
,
Zero
Cpn
,
1/29/34
...
3,359
287
5756610.SQ.FTS.B
,
Zero
Cpn
,
1/29/34
...
4,556
6
5757607.SQ.FTS.B
,
Zero
Cpn
,
1/31/34
...
9,346
8
5758291.SQ.FTS.B
,
Zero
Cpn
,
2/01/34
...
5,772
2
5759456.SQ.FTS.B
,
Zero
Cpn
,
2/01/34
...
282
31
5760954.SQ.FTS.B
,
Zero
Cpn
,
2/01/34
...
2,824
5
5767488.SQ.FTS.B
,
Zero
Cpn
,
2/03/34
...
1,233
1
5773116.SQ.FTS.B
,
Zero
Cpn
,
2/04/34
...
3,729
4
5777772.SQ.FTS.B
,
Zero
Cpn
,
2/05/34
...
8,178
16
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5778008.SQ.FTS.B
,
Zero
Cpn
,
2/05/34
...
$
4,729
$
6
5781951.SQ.FTS.B
,
Zero
Cpn
,
2/08/34
...
4,019
8
5784874.SQ.FTS.B
,
Zero
Cpn
,
2/09/34
...
3,818
5
5792518.SQ.FTS.B
,
Zero
Cpn
,
2/10/34
...
16,456
19
5802478.SQ.FTS.B
,
Zero
Cpn
,
2/11/34
...
7,637
14
5809201.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
718
1
5810852.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
3,602
7
5812068.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
2,493
12
5812645.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
18,332
1,534
5813184.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
1,676
4
5813253.SQ.FTS.B
,
Zero
Cpn
,
2/12/34
...
7,311
17
5813462.SQ.FTS.B
,
Zero
Cpn
,
2/13/34
...
1,394
2
5814016.SQ.FTS.B
,
Zero
Cpn
,
2/13/34
...
2,868
3
5814576.SQ.FTS.B
,
Zero
Cpn
,
2/14/34
...
2,223
4
5815447.SQ.FTS.B
,
Zero
Cpn
,
2/15/34
...
1,840
123
5816945.SQ.FTS.B
,
Zero
Cpn
,
2/15/34
...
4,384
9
5817070.SQ.FTS.B
,
Zero
Cpn
,
2/15/34
...
30,140
41
5823283.SQ.FTS.B
,
Zero
Cpn
,
2/17/34
...
18
–
5823345.SQ.FTS.B
,
Zero
Cpn
,
2/17/34
...
1,884
3
5824742.SQ.FTS.B
,
Zero
Cpn
,
2/17/34
...
3,323
8
5825002.SQ.FTS.B
,
Zero
Cpn
,
2/17/34
...
35,998
59
5825354.SQ.FTS.B
,
Zero
Cpn
,
2/17/34
...
4,925
18
5827842.SQ.FTS.B
,
Zero
Cpn
,
2/18/34
...
7,668
21
5828926.SQ.FTS.B
,
Zero
Cpn
,
2/18/34
...
17,907
87
5830440.SQ.FTS.B
,
Zero
Cpn
,
2/18/34
...
2,577
4
5831833.SQ.FTS.B
,
Zero
Cpn
,
2/19/34
...
117
18
5832209.SQ.FTS.B
,
Zero
Cpn
,
2/19/34
...
26,120
61
5832576.SQ.FTS.B
,
Zero
Cpn
,
2/19/34
...
132
1
5832609.SQ.FTS.B
,
Zero
Cpn
,
2/19/34
...
2,194
7
5834294.SQ.FTS.B
,
Zero
Cpn
,
2/20/34
...
502
–
5834318.SQ.FTS.B
,
Zero
Cpn
,
2/20/34
...
8,185
32
5835079.SQ.FTS.B
,
Zero
Cpn
,
2/20/34
...
683
1
5837211.SQ.FTS.B
,
Zero
Cpn
,
2/22/34
...
2,901
13
5837252.SQ.FTS.B
,
Zero
Cpn
,
2/22/34
...
1,427
2
5837315.SQ.FTS.B
,
Zero
Cpn
,
2/22/34
...
4,547
3
5839815.SQ.FTS.B
,
Zero
Cpn
,
2/23/34
...
615
1
5840394.SQ.FTS.B
,
Zero
Cpn
,
2/23/34
...
7,735
4
5842093.SQ.FTS.B
,
Zero
Cpn
,
2/23/34
...
1,240
3
5848551.SQ.FTS.B
,
Zero
Cpn
,
2/25/34
...
1,094
6
5851647.SQ.FTS.B
,
Zero
Cpn
,
2/25/34
...
1,396
2
5852027.SQ.FTS.B
,
Zero
Cpn
,
2/26/34
...
1,229
54
5853740.SQ.FTS.B
,
Zero
Cpn
,
2/26/34
...
2,104
2
5854311.SQ.FTS.B
,
Zero
Cpn
,
2/26/34
...
829
76
5855240.SQ.FTS.B
,
Zero
Cpn
,
2/27/34
...
6,098
7
5855911.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
2,925
6
5856353.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
535
38
5856586.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
3,737
308
5857039.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
219
1
5861125.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
619
1
5861134.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
14,061
28
5862630.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
5,065
8
5866568.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
2,638
7
5866864.SQ.FTS.B
,
Zero
Cpn
,
2/28/34
...
2,965
15
5873819.SQ.FTS.B
,
Zero
Cpn
,
3/01/34
...
1,232
1
5874329.SQ.FTS.B
,
Zero
Cpn
,
3/02/34
...
422
1
5874482.SQ.FTS.B
,
Zero
Cpn
,
3/02/34
...
657
1
5877776.SQ.FTS.B
,
Zero
Cpn
,
3/03/34
...
691
2
5878846.SQ.FTS.B
,
Zero
Cpn
,
3/05/34
...
356
1
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5883334.SQ.FTS.B
,
Zero
Cpn
,
3/07/34
...
$
1,109
$
2
5884477.SQ.FTS.B
,
Zero
Cpn
,
3/07/34
...
988
3
5885192.SQ.FTS.B
,
Zero
Cpn
,
3/07/34
...
2,394
4
5889080.SQ.FTS.B
,
Zero
Cpn
,
3/08/34
...
771
1
5889436.SQ.FTS.B
,
Zero
Cpn
,
3/08/34
...
14,724
30
5889597.SQ.FTS.B
,
Zero
Cpn
,
3/08/34
...
1,085
6
5889875.SQ.FTS.B
,
Zero
Cpn
,
3/08/34
...
97
–
5893541.SQ.FTS.B
,
Zero
Cpn
,
3/09/34
...
4,112
18
5893815.SQ.FTS.B
,
Zero
Cpn
,
3/09/34
...
1,195
1
5893929.SQ.FTS.B
,
Zero
Cpn
,
3/09/34
...
788
1
5894091.SQ.FTS.B
,
Zero
Cpn
,
3/09/34
...
2,167
4
5898320.SQ.FTS.B
,
Zero
Cpn
,
3/12/34
...
8,262
39
5898769.SQ.FTS.B
,
Zero
Cpn
,
3/12/34
...
2,169
460
5900390.SQ.FTS.B
,
Zero
Cpn
,
3/13/34
...
13,495
56
5900600.SQ.FTS.B
,
Zero
Cpn
,
3/13/34
...
7,701
21
5900989.SQ.FTS.B
,
Zero
Cpn
,
3/13/34
...
5,386
9
5903864.SQ.FTS.B
,
Zero
Cpn
,
3/14/34
...
2,296
4
5910869.SQ.FTS.B
,
Zero
Cpn
,
3/16/34
...
2,092
9
5911495.SQ.FTS.B
,
Zero
Cpn
,
3/16/34
...
40,359
81
5913989.SQ.FTS.B
,
Zero
Cpn
,
3/17/34
...
1,336
87
5914396.SQ.FTS.B
,
Zero
Cpn
,
3/18/34
...
1,467
3
5915505.SQ.FTS.B
,
Zero
Cpn
,
3/19/34
...
16,318
80
5917707.SQ.FTS.B
,
Zero
Cpn
,
3/19/34
...
3,053
6
5918534.SQ.FTS.B
,
Zero
Cpn
,
3/19/34
...
1,806
264
5921285.SQ.FTS.B
,
Zero
Cpn
,
3/20/34
...
2,698
9
5921918.SQ.FTS.B
,
Zero
Cpn
,
3/20/34
...
11,547
43
5923022.SQ.FTS.B
,
Zero
Cpn
,
3/21/34
...
1,435
4
5930851.SQ.FTS.B
,
Zero
Cpn
,
3/23/34
...
1,076
111
5932633.SQ.FTS.B
,
Zero
Cpn
,
3/23/34
...
93
18
5934059.SQ.FTS.B
,
Zero
Cpn
,
3/24/34
...
1,242
2
5934219.SQ.FTS.B
,
Zero
Cpn
,
3/24/34
...
22,371
58
5934730.SQ.FTS.B
,
Zero
Cpn
,
3/25/34
...
2,564
4
5936923.SQ.FTS.B
,
Zero
Cpn
,
3/26/34
...
9,927
48
5937124.SQ.FTS.B
,
Zero
Cpn
,
3/26/34
...
181
1
5938584.SQ.FTS.B
,
Zero
Cpn
,
3/26/34
...
6,806
19
5941367.SQ.FTS.B
,
Zero
Cpn
,
3/27/34
...
4,768
7
5943947.SQ.FTS.B
,
Zero
Cpn
,
3/28/34
...
1,308
3
5945082.SQ.FTS.B
,
Zero
Cpn
,
3/28/34
...
2,501
16
5945214.SQ.FTS.B
,
Zero
Cpn
,
3/28/34
...
656
4
5950686.SQ.FTS.B
,
Zero
Cpn
,
3/29/34
...
810
7
5953097.SQ.FTS.B
,
Zero
Cpn
,
3/30/34
...
885
2
5954440.SQ.FTS.B
,
Zero
Cpn
,
3/30/34
...
7,514
49
5956268.SQ.FTS.B
,
Zero
Cpn
,
4/02/34
...
609
4
5956650.SQ.FTS.B
,
Zero
Cpn
,
4/02/34
...
619
2
5956888.SQ.FTS.B
,
Zero
Cpn
,
4/02/34
...
2,980
6
5959931.SQ.FTS.B
,
Zero
Cpn
,
4/03/34
...
1,644
5
5959978.SQ.FTS.B
,
Zero
Cpn
,
4/03/34
...
1,182
7
5960434.SQ.FTS.B
,
Zero
Cpn
,
4/03/34
...
375
2
5964109.SQ.FTS.B
,
Zero
Cpn
,
4/05/34
...
3,134
22
5966156.SQ.FTS.B
,
Zero
Cpn
,
4/05/34
...
4,893
23
5980129.SQ.FTS.B
,
Zero
Cpn
,
4/10/34
...
695
2
5981924.SQ.FTS.B
,
Zero
Cpn
,
4/11/34
...
12,026
32
5983705.SQ.FTS.B
,
Zero
Cpn
,
4/11/34
...
4,402
18
5983869.SQ.FTS.B
,
Zero
Cpn
,
4/11/34
...
1,928
266
5986027.SQ.FTS.B
,
Zero
Cpn
,
4/12/34
...
3,601
6
5991404.SQ.FTS.B
,
Zero
Cpn
,
4/13/34
...
2,818
713
5995769.SQ.FTS.B
,
Zero
Cpn
,
4/14/34
...
4,698
15
5995853.SQ.FTS.B
,
Zero
Cpn
,
4/14/34
...
7,553
17
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5996582.SQ.FTS.B
,
Zero
Cpn
,
4/15/34
...
$
330
$
1
6000328.SQ.FTS.B
,
Zero
Cpn
,
4/17/34
...
2,618
5
6001519.SQ.FTS.B
,
Zero
Cpn
,
4/18/34
...
505
64
6010572.SQ.FTS.B
,
Zero
Cpn
,
4/20/34
...
6,145
26
6010705.SQ.FTS.B
,
Zero
Cpn
,
4/20/34
...
4,090
22
6015748.SQ.FTS.B
,
Zero
Cpn
,
4/21/34
...
3,151
5
6023977.SQ.FTS.B
,
Zero
Cpn
,
4/25/34
...
871
5
6024354.SQ.FTS.B
,
Zero
Cpn
,
4/26/34
...
13,543
52
6032854.SQ.FTS.B
,
Zero
Cpn
,
4/27/34
...
1,302
334
6037378.SQ.FTS.B
,
Zero
Cpn
,
4/29/34
...
732
4
6038361.SQ.FTS.B
,
Zero
Cpn
,
4/30/34
...
2,968
12
6057823.SQ.FTS.B
,
Zero
Cpn
,
5/04/34
...
17,364
111
6063087.SQ.FTS.B
,
Zero
Cpn
,
5/07/34
...
4,299
11
6064155.SQ.FTS.B
,
Zero
Cpn
,
5/08/34
...
694
3
6064464.SQ.FTS.B
,
Zero
Cpn
,
5/08/34
...
3,001
10
6111911.SQ.FTS.B
,
Zero
Cpn
,
5/09/34
...
1,257
8
6120978.SQ.FTS.B
,
Zero
Cpn
,
5/10/34
...
836
5
6122683.SQ.FTS.B
,
Zero
Cpn
,
5/10/34
...
9,407
26
6122851.SQ.FTS.B
,
Zero
Cpn
,
5/10/34
...
5,276
22
6123828.SQ.FTS.B
,
Zero
Cpn
,
5/10/34
...
15,343
83
6126543.SQ.FTS.B
,
Zero
Cpn
,
5/12/34
...
452
2
6127052.SQ.FTS.B
,
Zero
Cpn
,
5/13/34
...
2,897
12
6127262.SQ.FTS.B
,
Zero
Cpn
,
5/13/34
...
268
76
6134462.SQ.FTS.B
,
Zero
Cpn
,
5/15/34
...
5,519
25
6143084.SQ.FTS.B
,
Zero
Cpn
,
5/17/34
...
622
2
6145383.SQ.FTS.B
,
Zero
Cpn
,
5/18/34
...
25,311
96
6147104.SQ.FTS.B
,
Zero
Cpn
,
5/19/34
...
7,588
69
6147718.SQ.FTS.B
,
Zero
Cpn
,
5/20/34
...
3,339
21
6147775.SQ.FTS.B
,
Zero
Cpn
,
5/20/34
...
1,022
6
6149268.SQ.FTS.B
,
Zero
Cpn
,
5/21/34
...
3,411
10
6149657.SQ.FTS.B
,
Zero
Cpn
,
5/21/34
...
8,931
86
6154074.SQ.FTS.B
,
Zero
Cpn
,
5/22/34
...
4,237
32
6159444.SQ.FTS.B
,
Zero
Cpn
,
5/23/34
...
605
11
6159521.SQ.FTS.B
,
Zero
Cpn
,
5/23/34
...
1,684
455
6160262.SQ.FTS.B
,
Zero
Cpn
,
5/23/34
...
4,566
78
6161261.SQ.FTS.B
,
Zero
Cpn
,
5/24/34
...
1,545
6
6162505.SQ.FTS.B
,
Zero
Cpn
,
5/25/34
...
3,884
12
6164819.SQ.FTS.B
,
Zero
Cpn
,
5/26/34
...
480
4
6164962.SQ.FTS.B
,
Zero
Cpn
,
5/26/34
...
3,092
261
6165709.SQ.FTS.B
,
Zero
Cpn
,
5/27/34
...
375
130
6168721.SQ.FTS.B
,
Zero
Cpn
,
5/28/34
...
11,684
3,648
6169262.SQ.FTS.B
,
Zero
Cpn
,
5/28/34
...
142
19
6173073.SQ.FTS.B
,
Zero
Cpn
,
5/29/34
...
1,600
20
6173109.SQ.FTS.B
,
Zero
Cpn
,
5/29/34
...
732
153
6185770.SQ.FTS.B
,
Zero
Cpn
,
6/03/34
...
2,564
18
6185954.SQ.FTS.B
,
Zero
Cpn
,
6/03/34
...
1,743
6
6190982.SQ.FTS.B
,
Zero
Cpn
,
6/05/34
...
4,546
67
6191154.SQ.FTS.B
,
Zero
Cpn
,
6/06/34
...
2,148
13
6209210.SQ.FTS.B
,
Zero
Cpn
,
6/09/34
...
6,712
141
6209706.SQ.FTS.B
,
Zero
Cpn
,
6/10/34
...
2,538
33
6211694.SQ.FTS.B
,
Zero
Cpn
,
6/12/34
...
3,075
895
6217315.SQ.FTS.B
,
Zero
Cpn
,
6/13/34
...
687
5
6217699.SQ.FTS.B
,
Zero
Cpn
,
6/13/34
...
3,192
559
6220586.SQ.FTS.B
,
Zero
Cpn
,
6/14/34
...
3,429
433
6220625.SQ.FTS.B
,
Zero
Cpn
,
6/14/34
...
8,814
51
6227194.SQ.FTS.B
,
Zero
Cpn
,
6/16/34
...
2,188
15
6236255.SQ.FTS.B
,
Zero
Cpn
,
6/18/34
...
2,023
19
6237088.SQ.FTS.B
,
Zero
Cpn
,
6/19/34
...
1,309
8
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6237213.SQ.FTS.B
,
Zero
Cpn
,
6/19/34
...
$
994
$
8
6243468.SQ.FTS.B
,
Zero
Cpn
,
6/20/34
...
12,676
161
6243792.SQ.FTS.B
,
Zero
Cpn
,
6/21/34
...
2,999
23
6245571.SQ.FTS.B
,
Zero
Cpn
,
6/21/34
...
533
4
6254361.SQ.FTS.B
,
Zero
Cpn
,
6/23/34
...
1,745
13
6254473.SQ.FTS.B
,
Zero
Cpn
,
6/23/34
...
15,036
89
6254841.SQ.FTS.B
,
Zero
Cpn
,
6/23/34
...
5,554
803
6259695.SQ.FTS.B
,
Zero
Cpn
,
6/27/34
...
2,225
10
6265153.SQ.FTS.B
,
Zero
Cpn
,
6/29/34
...
11,421
188
6266370.SQ.FTS.B
,
Zero
Cpn
,
6/29/34
...
15,076
6,541
6272382.SQ.FTS.B
,
Zero
Cpn
,
7/02/34
...
4,791
1,934
6275326.SQ.FTS.B
,
Zero
Cpn
,
7/03/34
...
2,114
28
6277033.SQ.FTS.B
,
Zero
Cpn
,
7/04/34
...
3,011
39
6278139.SQ.FTS.B
,
Zero
Cpn
,
7/04/34
...
931
24
6282812.SQ.FTS.B
,
Zero
Cpn
,
7/06/34
...
15,894
174
6285291.SQ.FTS.B
,
Zero
Cpn
,
7/06/34
...
21,510
329
6285821.SQ.FTS.B
,
Zero
Cpn
,
7/07/34
...
1,998
30
6300866.SQ.FTS.B
,
Zero
Cpn
,
7/13/34
...
274
53
6308012.SQ.FTS.B
,
Zero
Cpn
,
7/17/34
...
672
244
6309341.SQ.FTS.B
,
Zero
Cpn
,
7/18/34
...
1,719
19
6314763.SQ.FTS.B
,
Zero
Cpn
,
7/19/34
...
982
15
6319056.SQ.FTS.B
,
Zero
Cpn
,
7/21/34
...
573
274
6351823.SQ.FTS.B
,
Zero
Cpn
,
7/24/34
...
2,008
30
6351975.SQ.FTS.B
,
Zero
Cpn
,
7/24/34
...
2,638
43
6353581.SQ.FTS.B
,
Zero
Cpn
,
7/24/34
...
916
15
6357497.SQ.FTS.B
,
Zero
Cpn
,
7/25/34
...
790
455
6359468.SQ.FTS.B
,
Zero
Cpn
,
7/26/34
...
432
6
6370285.SQ.FTS.B
,
Zero
Cpn
,
7/30/34
...
1,998
41
6372961.SQ.FTS.B
,
Zero
Cpn
,
7/31/34
...
57,137
836
6374394.SQ.FTS.B
,
Zero
Cpn
,
8/01/34
...
541
326
6378866.SQ.FTS.B
,
Zero
Cpn
,
8/02/34
...
1,238
24
6379092.SQ.FTS.B
,
Zero
Cpn
,
8/02/34
...
954
11
6382243.SQ.FTS.B
,
Zero
Cpn
,
8/03/34
...
40,502
10,109
6384961.SQ.FTS.B
,
Zero
Cpn
,
8/03/34
...
200
21
6386635.SQ.FTS.B
,
Zero
Cpn
,
8/05/34
...
1,423
23
6389202.SQ.FTS.B
,
Zero
Cpn
,
8/06/34
...
3,677
84
6389269.SQ.FTS.B
,
Zero
Cpn
,
8/06/34
...
5,046
59
6392793.SQ.FTS.B
,
Zero
Cpn
,
8/07/34
...
432
8
6392987.SQ.FTS.B
,
Zero
Cpn
,
8/07/34
...
7,102
113
6393441.SQ.FTS.B
,
Zero
Cpn
,
8/08/34
...
2,464
40
6404033.SQ.FTS.B
,
Zero
Cpn
,
8/11/34
...
2,159
35
6410608.SQ.FTS.B
,
Zero
Cpn
,
8/14/34
...
23,537
456
6412264.SQ.FTS.B
,
Zero
Cpn
,
8/15/34
...
69
30
6413090.SQ.FTS.B
,
Zero
Cpn
,
8/15/34
...
14,328
188
6422493.SQ.FTS.B
,
Zero
Cpn
,
8/17/34
...
666
15
6424176.SQ.FTS.B
,
Zero
Cpn
,
8/18/34
...
22,930
586
6427044.SQ.FTS.B
,
Zero
Cpn
,
8/21/34
...
637
11
6427394.SQ.FTS.B
,
Zero
Cpn
,
8/21/34
...
24,524
826
6431015.SQ.FTS.B
,
Zero
Cpn
,
8/22/34
...
3,234
885
6436390.SQ.FTS.B
,
Zero
Cpn
,
8/23/34
...
3,413
48
6439616.SQ.FTS.B
,
Zero
Cpn
,
8/23/34
...
2,924
93
6439850.SQ.FTS.B
,
Zero
Cpn
,
8/23/34
...
7,981
153
6442480.SQ.FTS.B
,
Zero
Cpn
,
8/24/34
...
1,933
440
6448004.SQ.FTS.B
,
Zero
Cpn
,
8/27/34
...
283
186
6451217.SQ.FTS.B
,
Zero
Cpn
,
8/28/34
...
929
607
6451818.SQ.FTS.B
,
Zero
Cpn
,
8/28/34
...
32,683
565
6452723.SQ.FTS.B
,
Zero
Cpn
,
8/28/34
...
1,879
16
6454314.SQ.FTS.B
,
Zero
Cpn
,
9/01/34
...
6,133
104
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6461434.SQ.FTS.B
,
Zero
Cpn
,
9/03/34
...
$
6,632
$
195
6463337.SQ.FTS.B
,
Zero
Cpn
,
9/03/34
...
578
383
6464078.SQ.FTS.B
,
Zero
Cpn
,
9/04/34
...
1,363
28
6465421.SQ.FTS.B
,
Zero
Cpn
,
9/06/34
...
1,180
28
6467555.SQ.FTS.B
,
Zero
Cpn
,
9/06/34
...
3,596
85
6470092.SQ.FTS.B
,
Zero
Cpn
,
9/07/34
...
3,576
586
6472450.SQ.FTS.B
,
Zero
Cpn
,
9/07/34
...
762
504
6472645.SQ.FTS.B
,
Zero
Cpn
,
9/08/34
...
99
58
6475454.SQ.FTS.B
,
Zero
Cpn
,
9/08/34
...
2,557
66
6475554.SQ.FTS.B
,
Zero
Cpn
,
9/08/34
...
8,062
51
6477774.SQ.FTS.B
,
Zero
Cpn
,
9/09/34
...
9,073
5,036
6481328.SQ.FTS.B
,
Zero
Cpn
,
9/09/34
...
6,302
1,290
6483513.SQ.FTS.B
,
Zero
Cpn
,
9/10/34
...
8,146
246
6484336.SQ.FTS.B
,
Zero
Cpn
,
9/10/34
...
22,221
361
6484909.SQ.FTS.B
,
Zero
Cpn
,
9/10/34
...
1,450
892
6486340.SQ.FTS.B
,
Zero
Cpn
,
9/12/34
...
200
135
6488356.SQ.FTS.B
,
Zero
Cpn
,
9/13/34
...
3,633
46
6493143.SQ.FTS.B
,
Zero
Cpn
,
9/14/34
...
643
439
6496050.SQ.FTS.B
,
Zero
Cpn
,
9/15/34
...
2,621
28
6503201.SQ.FTS.B
,
Zero
Cpn
,
9/17/34
...
1,828
41
6506217.SQ.FTS.B
,
Zero
Cpn
,
9/18/34
...
255
121
6508534.SQ.FTS.B
,
Zero
Cpn
,
9/20/34
...
3,125
80
6523267.SQ.FTS.B
,
Zero
Cpn
,
9/24/34
...
5,923
142
6523516.SQ.FTS.B
,
Zero
Cpn
,
9/24/34
...
473
309
6523578.SQ.FTS.B
,
Zero
Cpn
,
9/24/34
...
2,970
2,006
6531074.SQ.FTS.B
,
Zero
Cpn
,
9/28/34
...
24,833
255
6533670.SQ.FTS.B
,
Zero
Cpn
,
9/28/34
...
2,210
55
6534257.SQ.FTS.B
,
Zero
Cpn
,
9/29/34
...
2,166
671
6534305.SQ.FTS.B
,
Zero
Cpn
,
9/29/34
...
292
148
6535323.SQ.FTS.B
,
Zero
Cpn
,
9/29/34
...
1,498
732
6537176.SQ.FTS.B
,
Zero
Cpn
,
9/29/34
...
1,224
872
6537472.SQ.FTS.B
,
Zero
Cpn
,
9/29/34
...
2,567
19
6541353.SQ.FTS.B
,
Zero
Cpn
,
9/30/34
...
1,652
1,021
6544501.SQ.FTS.B
,
Zero
Cpn
,
9/30/34
...
5,785
3,788
6547411.SQ.FTS.B
,
Zero
Cpn
,
10/01/34
..
14,177
477
6549603.SQ.FTS.B
,
Zero
Cpn
,
10/03/34
..
446
279
6552110.SQ.FTS.B
,
Zero
Cpn
,
10/04/34
..
2,240
1,521
6552948.SQ.FTS.B
,
Zero
Cpn
,
10/04/34
..
1,758
427
6553144.SQ.FTS.B
,
Zero
Cpn
,
10/04/34
..
734
27
6556395.SQ.FTS.B
,
Zero
Cpn
,
10/05/34
..
596
396
6556964.SQ.FTS.B
,
Zero
Cpn
,
10/05/34
..
189
118
6560968.SQ.FTS.B
,
Zero
Cpn
,
10/06/34
..
320
207
6563116.SQ.FTS.B
,
Zero
Cpn
,
10/07/34
..
626
178
6566625.SQ.FTS.B
,
Zero
Cpn
,
10/08/34
..
10,420
266
6566945.SQ.FTS.B
,
Zero
Cpn
,
10/09/34
..
253
75
6570679.SQ.FTS.B
,
Zero
Cpn
,
10/10/34
..
15,812
250
6576266.SQ.FTS.B
,
Zero
Cpn
,
10/12/34
..
1,374
471
6577981.SQ.FTS.B
,
Zero
Cpn
,
10/12/34
..
10,021
452
6581786.SQ.FTS.B
,
Zero
Cpn
,
10/13/34
..
584
33
6582337.SQ.FTS.B
,
Zero
Cpn
,
10/13/34
..
1,327
792
6585188.SQ.FTS.B
,
Zero
Cpn
,
10/14/34
..
6,600
4,622
6589877.SQ.FTS.B
,
Zero
Cpn
,
10/17/34
..
19
11
6591444.SQ.FTS.B
,
Zero
Cpn
,
10/18/34
..
1,914
71
6592468.SQ.FTS.B
,
Zero
Cpn
,
10/18/34
..
26,389
396
6594535.SQ.FTS.B
,
Zero
Cpn
,
10/19/34
..
4,172
2,550
6605375.SQ.FTS.B
,
Zero
Cpn
,
10/23/34
..
1,053
314
6608364.SQ.FTS.B
,
Zero
Cpn
,
10/24/34
..
529
309
6608375.SQ.FTS.B
,
Zero
Cpn
,
10/24/34
..
1,568
59
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6608563.SQ.FTS.B
,
Zero
Cpn
,
10/24/34
..
$
1,619
$
62
6610854.SQ.FTS.B
,
Zero
Cpn
,
10/25/34
..
84
62
6614457.SQ.FTS.B
,
Zero
Cpn
,
10/26/34
..
2,216
85
6617414.SQ.FTS.B
,
Zero
Cpn
,
10/27/34
..
3,108
2,184
6623607.SQ.FTS.B
,
Zero
Cpn
,
10/28/34
..
2,737
93
6624957.SQ.FTS.B
,
Zero
Cpn
,
10/30/34
..
3,183
77
6626404.SQ.FTS.B
,
Zero
Cpn
,
11/01/34
..
693
415
6627906.SQ.FTS.B
,
Zero
Cpn
,
11/01/34
..
2,300
1,618
6628104.SQ.FTS.B
,
Zero
Cpn
,
11/01/34
..
8,424
126
6628247.SQ.FTS.B
,
Zero
Cpn
,
11/01/34
..
3,665
150
6628906.SQ.FTS.B
,
Zero
Cpn
,
11/01/34
..
421
283
6629787.SQ.FTS.B
,
Zero
Cpn
,
11/02/34
..
7,692
240
6632388.SQ.FTS.B
,
Zero
Cpn
,
11/02/34
..
6,201
243
6633231.SQ.FTS.B
,
Zero
Cpn
,
11/03/34
..
356
6
6635306.SQ.FTS.B
,
Zero
Cpn
,
11/03/34
..
523
336
6639032.SQ.FTS.B
,
Zero
Cpn
,
11/04/34
..
11,342
406
6639843.SQ.FTS.B
,
Zero
Cpn
,
11/04/34
..
1,075
469
6639899.SQ.FTS.B
,
Zero
Cpn
,
11/04/34
..
842
440
6640094.SQ.FTS.B
,
Zero
Cpn
,
11/04/34
..
1,511
758
6641788.SQ.FTS.B
,
Zero
Cpn
,
11/05/34
..
1,794
74
6641907.SQ.FTS.B
,
Zero
Cpn
,
11/05/34
..
3,766
120
6642127.SQ.FTS.B
,
Zero
Cpn
,
11/05/34
..
417
270
6644191.SQ.FTS.B
,
Zero
Cpn
,
11/05/34
..
32,363
1,308
6649600.SQ.FTS.B
,
Zero
Cpn
,
11/09/34
..
963
435
6649660.SQ.FTS.B
,
Zero
Cpn
,
11/09/34
..
461
330
6651437.SQ.FTS.B
,
Zero
Cpn
,
11/09/34
..
749
12
6651688.SQ.FTS.B
,
Zero
Cpn
,
11/09/34
..
53,478
2,464
6655130.SQ.FTS.B
,
Zero
Cpn
,
11/10/34
..
974
15
6655176.SQ.FTS.B
,
Zero
Cpn
,
11/10/34
..
799
564
6655538.SQ.FTS.B
,
Zero
Cpn
,
11/10/34
..
2,734
1,439
6655894.SQ.FTS.B
,
Zero
Cpn
,
11/10/34
..
2,000
1,317
6657882.SQ.FTS.B
,
Zero
Cpn
,
11/11/34
..
29,733
22,640
6662189.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
1,287
628
6662849.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
4,461
232
6663871.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
5,758
236
6664005.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
5,426
133
6664549.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
275
207
6664703.SQ.FTS.B
,
Zero
Cpn
,
11/12/34
..
1,196
806
6665226.SQ.FTS.B
,
Zero
Cpn
,
11/13/34
..
1,354
944
6665514.SQ.FTS.B
,
Zero
Cpn
,
11/14/34
..
584
346
6665553.SQ.FTS.B
,
Zero
Cpn
,
11/14/34
..
1,151
771
6665779.SQ.FTS.B
,
Zero
Cpn
,
11/14/34
..
29
15
6668780.SQ.FTS.B
,
Zero
Cpn
,
11/15/34
..
9,273
5,034
6670037.SQ.FTS.B
,
Zero
Cpn
,
11/16/34
..
6,805
183
6670357.SQ.FTS.B
,
Zero
Cpn
,
11/16/34
..
2,195
1,581
6672424.SQ.FTS.B
,
Zero
Cpn
,
11/16/34
..
21,606
14,453
6674961.SQ.FTS.B
,
Zero
Cpn
,
11/17/34
..
5,853
128
6675891.SQ.FTS.B
,
Zero
Cpn
,
11/17/34
..
315
183
6678245.SQ.FTS.B
,
Zero
Cpn
,
11/18/34
..
831
667
6678696.SQ.FTS.B
,
Zero
Cpn
,
11/18/34
..
19,360
676
6679343.SQ.FTS.B
,
Zero
Cpn
,
11/18/34
..
3,191
216
6681393.SQ.FTS.B
,
Zero
Cpn
,
11/18/34
..
1,498
1,044
6681578.SQ.FTS.B
,
Zero
Cpn
,
11/18/34
..
10,776
321
6682519.SQ.FTS.B
,
Zero
Cpn
,
11/19/34
..
771
435
6684387.SQ.FTS.B
,
Zero
Cpn
,
11/19/34
..
1,197
22
6684507.SQ.FTS.B
,
Zero
Cpn
,
11/19/34
..
98
65
6684513.SQ.FTS.B
,
Zero
Cpn
,
11/19/34
..
2,007
1,252
6685009.SQ.FTS.B
,
Zero
Cpn
,
11/20/34
..
2,633
1,728
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6685907.SQ.FTS.B
,
Zero
Cpn
,
11/21/34
..
$
6,966
$
4,188
6686035.SQ.FTS.B
,
Zero
Cpn
,
11/21/34
..
441
333
6686639.SQ.FTS.B
,
Zero
Cpn
,
11/22/34
..
1,131
40
6686940.SQ.FTS.B
,
Zero
Cpn
,
11/22/34
..
3,980
2,635
6689856.SQ.FTS.B
,
Zero
Cpn
,
11/23/34
..
4,087
141
6689979.SQ.FTS.B
,
Zero
Cpn
,
11/23/34
..
12,919
7,666
6692002.SQ.FTS.B
,
Zero
Cpn
,
11/23/34
..
446
363
6692529.SQ.FTS.B
,
Zero
Cpn
,
11/23/34
..
6,099
299
6699675.SQ.FTS.B
,
Zero
Cpn
,
11/25/34
..
2,304
1,512
6709316.SQ.FTS.B
,
Zero
Cpn
,
11/29/34
..
564
311
22,850,541
Freedom
Financial
Asset
Management
LLC
APP-11731526.FP.FTS.B
,
16
.49
%
,
12/21/24
906
912
APP-12148090.FP.FTS.B
,
9
.74
%
,
1/22/25
.
1,692
1,698
APP-12179908.FP.FTS.B
,
18
.99
%
,
1/23/25
1,043
1,053
APP-12087415.FP.FTS.B
,
12
.99
%
,
1/25/25
2,602
2,626
APP-11924017.FP.FTS.B
,
15
.99
%
,
1/28/25
1,743
1,753
APP-11509368.FP.FTS.B
,
14
.99
%
,
1/29/25
1,834
1,849
APP-12287483.FP.FTS.B
,
12
.99
%
,
2/03/25
2,947
2,958
APP-11733782.FP.FTS.B
,
15
.74
%
,
2/03/25
2,329
2,335
APP-12175602.FP.FTS.B
,
17
.49
%
,
2/25/25
1,442
1,458
APP-12029075.FP.FTS.B
,
15
.99
%
,
3/05/25
2,824
2,835
APP-12124683.FP.FTS.B
,
16
.99
%
,
3/06/25
1,010
1,008
APP-10156554.FP.FTS.B
,
9
.49
%
,
3/08/25
.
3,319
3,329
APP-12031531.FP.FTS.B
,
20
.99
%
,
3/08/25
1,413
1,408
APP-12139801.FP.FTS.B
,
9
.49
%
,
3/11/25
.
2,842
2,852
APP-11853561.FP.FTS.B
,
17
.99
%
,
3/18/25
2,744
2,773
APP-12413819.FP.FTS.B
,
16
.99
%
,
3/21/25
1,644
1,661
APP-12106203.FP.FTS.B
,
9
.74
%
,
3/22/25
.
2,538
2,550
APP-12270743.FP.FTS.B
,
16
.49
%
,
3/22/25
2,080
2,101
APP-12381356.FP.FTS.B
,
9
.74
%
,
3/24/25
.
2,020
2,029
APP-12414413.FP.FTS.B
,
17
.99
%
,
3/25/25
2,918
2,956
APP-15099844.FP.FTS.B
,
19
.99
%
,
7/15/25
4,396
4,451
APP-15063599.FP.FTS.B
,
8
.24
%
,
7/23/25
.
6,289
6,334
APP-12210758.FP.FTS.B
,
22
.49
%
,
7/25/25
1,314
1,319
APP-15052562.FP.FTS.B
,
10
.24
%
,
7/29/25
1,348
1,350
APP-17112174.FP.FTS.B
,
11
.74
%
,
8/12/25
3,969
3,995
APP-10157776.FP.FTS.B
,
22
.49
%
,
8/13/25
4,018
4,093
APP-17041993.FP.FTS.B
,
13
.74
%
,
9/05/25
11,375
11,457
APP-17017611.FP.FTS.B
,
11
.99
%
,
9/06/25
13,133
13,209
APP-16692788.FP.FTS.B
,
10
.74
%
,
9/10/25
3,753
3,777
APP-16716169.FP.FTS.B
,
9
.49
%
,
9/14/25
.
4,881
4,916
APP-17284270.FP.FTS.B
,
13
.74
%
,
9/15/25
12,813
12,899
APP-16721812.FP.FTS.B
,
14
.24
%
,
9/15/25
4,489
4,528
APP-16622583.FP.FTS.B
,
15
.99
%
,
9/16/25
4,511
4,568
APP-17495714.FP.FTS.B
,
11
.74
%
,
9/26/25
4,778
4,820
APP-10833798.FP.FTS.B
,
15
.99
%
,
10/18/25
6,237
6,413
APP-15077310.FP.FTS.B
,
25
.49
%
,
10/21/25
4,893
4,970
APP-11579289.FP.FTS.B
,
10
.99
%
,
12/05/25
4,318
4,362
APP-10861885.FP.FTS.B
,
15
.49
%
,
12/17/25
8,320
8,467
APP-11737115.FP.FTS.B
,
12
.49
%
,
12/18/25
5,243
5,317
APP-11531737.FP.FTS.B
,
13
.99
%
,
12/22/25
4,814
4,890
APP-11442801.FP.FTS.B
,
16
.49
%
,
12/22/25
6,879
7,109
APP-10314724.FP.FTS.B
,
11
.74
%
,
1/08/26
4,539
4,562
APP-12165054.FP.FTS.B
,
10
.24
%
,
1/14/26
6,709
6,788
APP-12174416.FP.FTS.B
,
10
.24
%
,
1/22/26
7,306
7,415
APP-12171910.FP.FTS.B
,
12
.49
%
,
1/22/26
5,797
5,883
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12006366.FP.FTS.B
,
20
.99
%
,
1/22/26
$
4,029
$
4,195
APP-11687753.FP.FTS.B
,
13
.49
%
,
1/25/26
7,959
8,105
APP-11595092.FP.FTS.B
,
19
.49
%
,
2/05/26
16,430
17,020
APP-12139578.FP.FTS.B
,
15
.24
%
,
2/24/26
4,430
4,498
APP-12119897.FP.FTS.B
,
10
.24
%
,
2/28/26
7,989
8,113
APP-12050179.FP.FTS.B
,
16
.49
%
,
3/07/26
6,999
7,124
APP-12463162.FP.FTS.B
,
18
.49
%
,
3/10/26
6,712
6,915
APP-12209184.FP.FTS.B
,
19
.49
%
,
3/11/26
1,274
1,277
APP-12287014.FP.FTS.B
,
16
.99
%
,
3/15/26
6,489
6,676
APP-12397804.FP.FTS.B
,
16
.99
%
,
3/16/26
5,235
5,388
APP-12400371.FP.FTS.B
,
16
.99
%
,
3/16/26
4,986
5,060
APP-12431691.FP.FTS.B
,
9
.49
%
,
3/20/26
.
11,573
11,737
APP-12286988.FP.FTS.B
,
10
.99
%
,
3/21/26
18,099
18,351
APP-12168235.FP.FTS.B
,
19
.49
%
,
3/23/26
4,508
921
APP-12443256.FP.FTS.B
,
16
.74
%
,
3/24/26
5,799
5,864
APP-12414591.FP.FTS.B
,
19
.49
%
,
3/24/26
3,885
4,026
APP-12414582.FP.FTS.B
,
18
.49
%
,
3/25/26
9,153
9,502
APP-12128364.FP.FTS.B
,
13
.24
%
,
5/08/26
7,893
3,072
APP-12199831.FP.FTS.B
,
16
.99
%
,
5/22/26
7,455
7,677
APP-15117837.FP.FTS.B
,
22
.24
%
,
7/15/26
7,897
8,241
APP-12343526.FP.FTS.B
,
16
.99
%
,
7/21/26
14,061
14,509
APP-14891119.FP.FTS.B
,
18
.74
%
,
7/24/26
25,823
26,716
APP-15053612.FP.FTS.B
,
13
.99
%
,
7/26/26
5,725
5,828
APP-15053337.FP.FTS.B
,
17
.99
%
,
7/26/26
6,193
6,444
APP-15004884.FP.FTS.B
,
15
.99
%
,
7/27/26
13,588
13,881
APP-15119191.FP.FTS.B
,
18
.49
%
,
7/28/26
2,795
994
APP-16690474.FP.FTS.B
,
9
.24
%
,
8/01/26
.
15,122
15,338
APP-16637564.FP.FTS.B
,
15
.99
%
,
9/03/26
4,563
4,634
APP-16719236.FP.FTS.B
,
10
.49
%
,
9/04/26
9,184
9,319
APP-16676602.FP.FTS.B
,
11
.24
%
,
9/05/26
13,899
4,197
APP-10573456.FP.FTS.B
,
17
.49
%
,
9/10/26
7,998
4,628
APP-16630984.FP.FTS.B
,
14
.49
%
,
9/12/26
8,035
8,183
APP-17112604.FP.FTS.B
,
11
.74
%
,
9/15/26
13,041
13,220
APP-16335651.FP.FTS.B
,
14
.49
%
,
9/15/26
9,060
9,216
APP-17464221.FP.FTS.B
,
16
.74
%
,
9/15/26
7,425
7,645
APP-17032039.FP.FTS.B
,
10
.49
%
,
9/16/26
13,300
13,505
APP-16710569.FP.FTS.B
,
15
.49
%
,
9/16/26
13,498
13,735
APP-10406165.FP.FTS.B
,
18
.99
%
,
9/20/26
7,584
7,794
APP-16275007.FP.FTS.B
,
12
.49
%
,
9/22/26
8,482
949
APP-17279512.FP.FTS.B
,
16
.74
%
,
9/22/26
8,182
8,434
APP-17112272.FP.FTS.B
,
14
.24
%
,
9/25/26
11,894
12,092
APP-16632934.FP.FTS.B
,
14
.49
%
,
10/15/26
9,012
9,049
APP-11021919.FP.FTS.B
,
17
.99
%
,
11/03/26
9,431
9,775
APP-11381442.FP.FTS.B
,
20
.49
%
,
11/26/26
13,319
13,908
APP-11579549.FP.FTS.B
,
13
.49
%
,
12/15/26
24,034
24,455
APP-11693245.FP.FTS.B
,
18
.49
%
,
12/18/26
11,299
11,853
APP-11719573.FP.FTS.B
,
19
.99
%
,
12/18/26
7,745
2,623
APP-11022370.FP.FTS.B
,
16
.49
%
,
12/20/26
5,497
5,603
APP-11733566.FP.FTS.B
,
19
.24
%
,
12/20/26
1,577
1,579
APP-11740523.FP.FTS.B
,
10
.99
%
,
12/21/26
12,310
12,520
APP-11694985.FP.FTS.B
,
12
.99
%
,
12/21/26
7,053
7,188
APP-11730592.FP.FTS.B
,
17
.99
%
,
12/21/26
22,794
23,708
APP-11723942.FP.FTS.B
,
19
.49
%
,
12/21/26
27,638
28,827
APP-11730543.FP.FTS.B
,
19
.99
%
,
12/22/26
7,657
7,960
APP-11401848.FP.FTS.B
,
15
.49
%
,
1/05/27
6,920
7,126
APP-12116526.FP.FTS.B
,
18
.99
%
,
1/05/27
8,244
8,488
APP-11146646.FP.FTS.B
,
12
.74
%
,
1/07/27
16,885
17,188
APP-11410185.FP.FTS.B
,
22
.49
%
,
1/10/27
17,064
17,853
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11413059.FP.FTS.B
,
13
.74
%
,
1/11/27
$
6,891
$
7,021
APP-11946615.FP.FTS.B
,
16
.49
%
,
1/11/27
11,889
12,123
APP-12139980.FP.FTS.B
,
19
.99
%
,
1/15/27
1,232
1,237
APP-12032875.FP.FTS.B
,
11
.24
%
,
1/16/27
13,052
13,283
APP-12073890.FP.FTS.B
,
10
.99
%
,
1/20/27
11,356
11,543
APP-12132313.FP.FTS.B
,
11
.24
%
,
1/21/27
6,735
6,847
APP-11798808.FP.FTS.B
,
10
.99
%
,
1/22/27
10,349
10,525
APP-12172519.FP.FTS.B
,
11
.24
%
,
1/22/27
7,777
7,909
APP-12154405.FP.FTS.B
,
14
.49
%
,
1/22/27
7,985
8,158
APP-12169743.FP.FTS.B
,
24
.24
%
,
1/22/27
17,585
18,476
APP-12186510.FP.FTS.B
,
9
.74
%
,
1/23/27
.
21,192
21,556
APP-12107351.FP.FTS.B
,
16
.49
%
,
1/23/27
12,093
12,580
APP-11595106.FP.FTS.B
,
13
.49
%
,
1/26/27
7,344
7,492
APP-11579435.FP.FTS.B
,
15
.49
%
,
1/28/27
10,215
10,606
APP-11595260.FP.FTS.B
,
18
.99
%
,
1/30/27
3,819
3,885
APP-11705115.FP.FTS.B
,
21
.49
%
,
2/01/27
29,553
30,717
APP-11694211.FP.FTS.B
,
11
.99
%
,
2/04/27
26,945
27,527
APP-11724908.FP.FTS.B
,
12
.74
%
,
2/04/27
20,896
21,258
APP-11709701.FP.FTS.B
,
16
.49
%
,
2/04/27
8,134
8,297
APP-11725393.FP.FTS.B
,
17
.99
%
,
2/04/27
28,518
29,475
APP-11694359.FP.FTS.B
,
19
.99
%
,
2/04/27
2,675
2,689
APP-11660434.FP.FTS.B
,
20
.49
%
,
2/04/27
17,291
18,070
APP-11694079.FP.FTS.B
,
10
.99
%
,
2/05/27
11,419
11,608
APP-11722179.FP.FTS.B
,
11
.99
%
,
2/05/27
14,846
15,098
APP-11740935.FP.FTS.B
,
13
.99
%
,
2/05/27
28,420
8,394
APP-11608429.FP.FTS.B
,
17
.49
%
,
2/05/27
24,664
4,561
APP-09759707.FP.FTS.B
,
18
.99
%
,
2/05/27
4,371
4,529
APP-11742867.FP.FTS.B
,
23
.24
%
,
2/05/27
12,144
12,705
APP-12337990.FP.FTS.B
,
16
.49
%
,
2/07/27
4,544
4,623
APP-11738196.FP.FTS.B
,
21
.99
%
,
2/15/27
6,666
6,938
APP-12173162.FP.FTS.B
,
17
.49
%
,
2/21/27
9,141
9,445
APP-12029572.FP.FTS.B
,
16
.99
%
,
2/24/27
11,431
2,341
APP-12105986.FP.FTS.B
,
10
.99
%
,
2/28/27
18,980
19,322
APP-12159528.FP.FTS.B
,
18
.99
%
,
2/28/27
9,276
1,924
APP-12050224.FP.FTS.B
,
11
.74
%
,
3/01/27
22,953
23,312
APP-12168636.FP.FTS.B
,
13
.24
%
,
3/01/27
11,071
11,260
APP-12107891.FP.FTS.B
,
17
.99
%
,
3/01/27
198
195
APP-12208717.FP.FTS.B
,
21
.74
%
,
3/01/27
14,589
15,166
APP-12158633.FP.FTS.B
,
23
.24
%
,
3/02/27
12,342
12,845
APP-12005996.FP.FTS.B
,
15
.49
%
,
3/03/27
5,151
5,245
APP-12214905.FP.FTS.B
,
16
.49
%
,
3/05/27
6,319
6,439
APP-12164096.FP.FTS.B
,
21
.49
%
,
3/05/27
8,822
5,375
APP-12050159.FP.FTS.B
,
13
.24
%
,
3/07/27
19,212
19,576
APP-12125835.FP.FTS.B
,
19
.99
%
,
3/07/27
2,689
2,694
APP-12140862.FP.FTS.B
,
8
.99
%
,
3/08/27
.
13,857
14,127
APP-12105970.FP.FTS.B
,
10
.99
%
,
3/08/27
12,168
12,376
APP-12155604.FP.FTS.B
,
11
.24
%
,
3/08/27
8,551
8,699
APP-12097459.FP.FTS.B
,
13
.24
%
,
3/08/27
13,924
14,189
APP-12106008.FP.FTS.B
,
13
.49
%
,
3/08/27
8,801
8,971
APP-12050743.FP.FTS.B
,
14
.99
%
,
3/08/27
958
956
APP-12432804.FP.FTS.B
,
13
.24
%
,
3/09/27
20,130
20,482
APP-11508449.FP.FTS.B
,
8
.49
%
,
3/10/27
.
16,144
16,401
APP-12216897.FP.FTS.B
,
10
.99
%
,
3/10/27
21,407
21,750
APP-12203395.FP.FTS.B
,
22
.49
%
,
3/10/27
7,036
4,255
APP-12199670.FP.FTS.B
,
10
.99
%
,
3/11/27
16,874
17,122
APP-12459432.FP.FTS.B
,
13
.24
%
,
3/11/27
14,717
2,855
APP-12459441.FP.FTS.B
,
17
.49
%
,
3/11/27
9,785
10,089
APP-12210087.FP.FTS.B
,
18
.74
%
,
3/11/27
29,662
30,733
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12071137.FP.FTS.B
,
19
.99
%
,
3/11/27
$
16,380
$
17,025
APP-12460903.FP.FTS.B
,
10
.99
%
,
3/15/27
21,471
21,840
APP-12467297.FP.FTS.B
,
13
.24
%
,
3/15/27
17,298
17,639
APP-12420649.FP.FTS.B
,
16
.74
%
,
3/15/27
27,266
2,809
APP-12379303.FP.FTS.B
,
13
.24
%
,
3/16/27
4,999
5,027
APP-11948900.FP.FTS.B
,
17
.74
%
,
3/18/27
22,994
23,700
APP-12418630.FP.FTS.B
,
17
.99
%
,
3/18/27
12,088
12,566
APP-12433361.FP.FTS.B
,
18
.49
%
,
3/18/27
11,043
11,551
APP-12461150.FP.FTS.B
,
18
.49
%
,
3/18/27
10,614
11,106
APP-12421799.FP.FTS.B
,
19
.74
%
,
3/18/27
13,945
14,334
APP-12463831.FP.FTS.B
,
19
.99
%
,
3/18/27
5,996
6,223
APP-11397497.FP.FTS.B
,
11
.99
%
,
3/19/27
13,003
13,251
APP-12357813.FP.FTS.B
,
10
.99
%
,
3/20/27
17,253
17,571
APP-12422648.FP.FTS.B
,
13
.24
%
,
3/20/27
12,833
13,098
APP-12380981.FP.FTS.B
,
13
.74
%
,
3/20/27
5,817
5,922
APP-12230901.FP.FTS.B
,
20
.24
%
,
3/20/27
30,039
31,321
APP-12424835.FP.FTS.B
,
23
.99
%
,
3/20/27
20,333
21,399
APP-12459776.FP.FTS.B
,
10
.99
%
,
3/21/27
18,226
18,565
APP-12287335.FP.FTS.B
,
13
.24
%
,
3/21/27
12,109
12,364
APP-12176796.FP.FTS.B
,
8
.99
%
,
3/22/27
.
14,773
15,024
APP-12345892.FP.FTS.B
,
13
.49
%
,
3/22/27
8,185
8,339
APP-12345261.FP.FTS.B
,
15
.49
%
,
3/22/27
13,990
14,489
APP-12270745.FP.FTS.B
,
17
.74
%
,
3/23/27
22,508
23,494
APP-12429877.FP.FTS.B
,
19
.74
%
,
3/23/27
18,647
19,415
APP-12468743.FP.FTS.B
,
18
.24
%
,
3/24/27
7,932
8,035
APP-12408200.FP.FTS.B
,
21
.74
%
,
3/24/27
3,738
3,763
APP-12468566.FP.FTS.B
,
19
.74
%
,
3/25/27
20,305
21,084
APP-11872544.FP.FTS.B
,
19
.99
%
,
3/25/27
8,220
8,633
APP-12175594.FP.FTS.B
,
18
.99
%
,
4/01/27
8,683
8,936
APP-11741297.FP.FTS.B
,
19
.24
%
,
4/05/27
13,443
13,960
APP-12408935.FP.FTS.B
,
19
.99
%
,
4/17/27
3,264
3,297
APP-12033253.FP.FTS.B
,
17
.99
%
,
4/24/27
8,835
9,247
APP-12133804.FP.FTS.B
,
10
.99
%
,
4/30/27
12,976
13,197
APP-11709913.FP.FTS.B
,
21
.49
%
,
4/30/27
34,164
35,580
APP-12287686.FP.FTS.B
,
11
.24
%
,
5/20/27
13,784
14,061
APP-15016056.FP.FTS.B
,
19
.24
%
,
6/06/27
8,086
8,086
APP-12172482.FP.FTS.B
,
20
.49
%
,
6/06/27
20,124
20,830
APP-12443158.FP.FTS.B
,
17
.49
%
,
6/22/27
8,205
8,502
APP-14953646.FP.FTS.B
,
24
.24
%
,
7/06/27
32,510
3,257
APP-15007182.FP.FTS.B
,
16
.99
%
,
7/11/27
7,295
7,440
APP-15105817.FP.FTS.B
,
11
.74
%
,
7/15/27
13,329
13,552
APP-15110260.FP.FTS.B
,
13
.99
%
,
7/15/27
19,819
20,180
APP-15113452.FP.FTS.B
,
18
.49
%
,
7/15/27
8,332
8,576
APP-15103060.FP.FTS.B
,
19
.99
%
,
7/15/27
10,335
10,661
APP-14544639.FP.FTS.B
,
11
.99
%
,
7/21/27
9,149
9,317
APP-16662334.FP.FTS.B
,
15
.24
%
,
7/26/27
16,594
16,906
APP-15066733.FP.FTS.B
,
18
.99
%
,
7/26/27
9,280
9,701
APP-15116487.FP.FTS.B
,
21
.49
%
,
7/28/27
11,523
12,067
APP-16465567.FP.FTS.B
,
15
.49
%
,
7/30/27
9,630
9,825
APP-16645516.FP.FTS.B
,
10
.99
%
,
7/31/27
12,509
12,739
APP-16640475.FP.FTS.B
,
12
.74
%
,
8/02/27
11,492
11,664
APP-16637899.FP.FTS.B
,
15
.49
%
,
8/02/27
12,485
12,687
APP-17319474.FP.FTS.B
,
16
.49
%
,
8/07/27
32,973
33,421
APP-12159801.FP.FTS.B
,
16
.99
%
,
8/15/27
17,290
11,701
APP-14523455.FP.FTS.B
,
17
.24
%
,
8/15/27
28,665
3,166
APP-15119411.FP.FTS.B
,
9
.74
%
,
8/28/27
.
14,600
14,890
APP-15106325.FP.FTS.B
,
23
.24
%
,
8/28/27
5,387
5,458
APP-16679044.FP.FTS.B
,
8
.99
%
,
9/01/27
.
8,393
8,533
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-16632155.FP.FTS.B
,
11
.49
%
,
9/01/27
$
11,120
$
11,292
APP-16448250.FP.FTS.B
,
13
.49
%
,
9/01/27
4,529
4,603
APP-16676570.FP.FTS.B
,
15
.24
%
,
9/01/27
13,813
14,123
APP-16718578.FP.FTS.B
,
15
.74
%
,
9/02/27
7,263
7,372
APP-16852920.FP.FTS.B
,
10
.99
%
,
9/04/27
24,633
25,025
APP-16640455.FP.FTS.B
,
10
.99
%
,
9/05/27
14,276
14,497
APP-16335596.FP.FTS.B
,
10
.99
%
,
9/12/27
16,953
17,250
APP-15052242.FP.FTS.B
,
11
.74
%
,
9/13/27
32,125
32,897
APP-16664397.FP.FTS.B
,
12
.99
%
,
9/13/27
15,487
15,760
APP-17458875.FP.FTS.B
,
16
.49
%
,
9/13/27
3,316
3,368
APP-16687847.FP.FTS.B
,
9
.49
%
,
9/15/27
.
12,564
12,789
APP-17011228.FP.FTS.B
,
14
.74
%
,
9/15/27
33,242
33,909
APP-17027051.FP.FTS.B
,
14
.49
%
,
9/16/27
9,363
9,567
APP-16399010.FP.FTS.B
,
15
.24
%
,
9/16/27
13,990
14,269
APP-17010091.FP.FTS.B
,
15
.49
%
,
9/18/27
26,661
27,222
APP-16637461.FP.FTS.B
,
18
.49
%
,
9/20/27
12,918
13,187
APP-17497296.FP.FTS.B
,
17
.74
%
,
9/23/27
8,997
9,255
APP-17082038.FP.FTS.B
,
12
.49
%
,
9/26/27
19,740
20,115
APP-17490395.FP.FTS.B
,
15
.24
%
,
9/26/27
21,904
22,363
APP-17115062.FP.FTS.B
,
17
.99
%
,
9/26/27
13,282
13,704
APP-17461708.FP.FTS.B
,
12
.49
%
,
9/27/27
20,496
20,895
APP-17239533.FP.FTS.B
,
13
.74
%
,
9/27/27
13,098
13,356
APP-17504832.FP.FTS.B
,
13
.74
%
,
9/27/27
14,841
7,721
APP-17102136.FP.FTS.B
,
14
.24
%
,
9/27/27
32,667
33,306
APP-16627732.FP.FTS.B
,
12
.99
%
,
10/25/27
17,401
17,729
APP-16800634.FP.FTS.B
,
15
.99
%
,
10/28/27
34,611
35,321
APP-16677695.FP.FTS.B
,
12
.99
%
,
11/14/27
18,535
18,874
APP-15098807.FP.FTS.B
,
26
.99
%
,
11/28/27
9,846
3,498
2,666,927
LendingClub
Corp.
-
LCX
162318190.LC.FTS.B
,
13
.08
%
,
12/13/24
..
242
240
163479653.LC.FTS.B
,
20
.55
%
,
12/30/24
..
618
622
163615560.LC.FTS.B
,
20
.55
%
,
12/30/24
..
780
789
164050345.LC.FTS.B
,
13
.08
%
,
12/31/24
..
1,995
1,986
164586812.LC.FTS.B
,
8
.19
%
,
1/27/25
...
777
771
162966512.LC.FTS.B
,
11
.02
%
,
2/12/25
...
2,413
2,353
163292439.LC.FTS.B
,
8
.19
%
,
2/23/25
...
1,607
1,572
167466589.LC.FTS.B
,
8
.19
%
,
2/27/25
...
1,041
1,028
164067189.LC.FTS.B
,
13
.08
%
,
2/28/25
...
3,957
3,923
168296354.LC.FTS.B
,
13
.08
%
,
5/13/25
...
3,649
3,545
168006688.LC.FTS.B
,
8
.19
%
,
11/21/25
...
5,728
5,497
165032371.LC.FTS.B
,
Zero
Cpn
,
1/21/33
.
8,375
–
162030908.LC.FTS.B
,
12
.4
%
,
11/19/34
...
357
355
162266279.LC.FTS.B
,
11
.02
%
,
11/22/34
..
646
646
23,327
LendingClub
Corp.
-
LCX
PM
170431322.LC.FTS.B
,
18
.24
%
,
9/14/25
...
1,598
193
170055181.LC.FTS.B
,
16
.08
%
,
9/16/25
...
3,716
3,692
170786159.LC.FTS.B
,
14
.02
%
,
9/25/25
...
5,736
5,630
170812112.LC.FTS.B
,
14
.02
%
,
9/29/25
...
4,781
4,709
171032242.LC.FTS.B
,
19
.12
%
,
10/02/25
..
4,230
4,214
171264911.LC.FTS.B
,
19
.12
%
,
10/14/25
..
4,230
4,228
171461721.LC.FTS.B
,
16
.08
%
,
10/20/25
..
3,188
3,161
172156822.LC.FTS.B
,
14
.02
%
,
11/24/25
..
2,792
2,695
172665217.LC.FTS.B
,
15
.4
%
,
12/04/25
...
5,025
4,957
172752552.LC.FTS.B
,
16
.08
%
,
12/10/25
..
3,709
3,684
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
PM
(continued)
173203429.LC.FTS.B
,
15
.4
%
,
12/23/25
...
$
10,951
$
10,842
173295643.LC.FTS.B
,
19
.12
%
,
12/28/25
..
3,889
3,906
173301532.LC.FTS.B
,
17
.3
%
,
1/06/26
...
10,057
9,968
172611713.LC.FTS.B
,
19
.12
%
,
1/14/26
...
5,655
5,640
173303101.LC.FTS.B
,
19
.95
%
,
1/15/26
...
5,499
5,487
173821408.LC.FTS.B
,
21
.49
%
,
1/19/26
...
5,564
5,660
173896730.LC.FTS.B
,
23
.99
%
,
1/19/26
...
3,695
3,809
173933933.LC.FTS.B
,
13
.49
%
,
1/20/26
...
6,318
6,230
174045948.LC.FTS.B
,
17
.44
%
,
1/22/26
...
6,383
6,421
174087634.LC.FTS.B
,
23
.99
%
,
1/22/26
...
5,543
5,722
172757520.LC.FTS.B
,
19
.12
%
,
1/24/26
...
5,407
–
173956639.LC.FTS.B
,
18
.19
%
,
1/25/26
...
2,275
2,277
173841383.LC.FTS.B
,
21
.49
%
,
1/25/26
...
10,936
11,119
173813936.LC.FTS.B
,
19
.74
%
,
2/01/26
...
9,314
3,488
173496629.LC.FTS.B
,
16
.08
%
,
2/14/26
...
8,597
8,352
170941274.LC.FTS.B
,
16
.08
%
,
4/20/26
...
10,077
8,011
173580706.LC.FTS.B
,
17
.3
%
,
7/15/26
...
10,456
10,372
171023190.LC.FTS.B
,
10
.81
%
,
10/06/33
..
5,004
–
173826580.LC.FTS.B
,
16
.99
%
,
7/24/34
...
1,562
–
170877107.LC.FTS.B
,
5
%
,
11/02/34
.....
431
79
144,546
Prosper
Funding
LLC
1674119.PS.FTS.B
,
11
.6
%
,
12/16/24
.....
651
652
1687134.PS.FTS.B
,
12
.6
%
,
12/16/24
....
462
461
1687119.PS.FTS.B
,
13
.5
%
,
12/16/24
....
1,001
999
1680238.PS.FTS.B
,
13
.81
%
,
12/16/24
...
1,675
1,678
1680268.PS.FTS.B
,
19
.6
%
,
12/16/24
....
4,264
1,079
1676387.PS.FTS.B
,
16
.2
%
,
12/21/24
....
691
699
1689882.PS.FTS.B
,
15
.29
%
,
12/22/24
...
392
392
1689870.PS.FTS.B
,
18
.09
%
,
12/22/24
...
468
470
1686151.PS.FTS.B
,
14
.6
%
,
12/29/24
....
202
204
1675928.PS.FTS.B
,
10
.97
%
,
1/05/25
....
2,550
–
1697064.PS.FTS.B
,
24
.4
%
,
1/06/25
.....
309
308
1694614.PS.FTS.B
,
11
.4
%
,
1/13/25
.....
387
386
1694584.PS.FTS.B
,
12
.2
%
,
1/13/25
.....
1,953
1,949
1701780.PS.FTS.B
,
12
.3
%
,
1/13/25
.....
1,493
1,485
1701342.PS.FTS.B
,
17
.7
%
,
1/13/25
.....
2,611
2,622
1689359.PS.FTS.B
,
12
.3
%
,
1/14/25
.....
545
542
1695340.PS.FTS.B
,
15
.7
%
,
1/14/25
.....
1,020
1,020
1689368.PS.FTS.B
,
16
.2
%
,
1/14/25
.....
685
303
1695364.PS.FTS.B
,
16
.8
%
,
1/14/25
.....
589
587
1695355.PS.FTS.B
,
18
.4
%
,
1/14/25
.....
526
529
1695982.PS.FTS.B
,
25
.4
%
,
1/14/25
.....
902
904
1700809.PS.FTS.B
,
22
.6
%
,
1/24/25
.....
553
560
1696034.PS.FTS.B
,
13
.5
%
,
1/25/25
.....
140
140
1692221.PS.FTS.B
,
23
%
,
1/25/25
.......
740
747
1709424.PS.FTS.B
,
23
.4
%
,
1/26/25
.....
578
18
1696480.PS.FTS.B
,
18
.8
%
,
1/27/25
.....
536
537
1702809.PS.FTS.B
,
14
.89
%
,
1/31/25
....
3,415
3,403
1695688.PS.FTS.B
,
13
.96
%
,
2/07/25
....
1,582
509
1706807.PS.FTS.B
,
17
.8
%
,
2/11/25
.....
552
553
1715170.PS.FTS.B
,
10
.8
%
,
2/15/25
.....
382
380
1708031.PS.FTS.B
,
12
.9
%
,
2/15/25
.....
1,005
1,001
1708067.PS.FTS.B
,
13
%
,
2/15/25
.......
1,306
1,301
1715173.PS.FTS.B
,
16
.6
%
,
2/15/25
.....
419
417
1708478.PS.FTS.B
,
24
.34
%
,
2/15/25
....
1,221
193
1716088.PS.FTS.B
,
17
.8
%
,
2/16/25
.....
691
694
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1721421.PS.FTS.B
,
16
.3
%
,
2/20/25
.....
$
2,631
$
2,632
1709597.PS.FTS.B
,
18
.5
%
,
2/20/25
.....
850
851
1708070.PS.FTS.B
,
14
.2
%
,
2/21/25
.....
1,286
1,285
1708871.PS.FTS.B
,
14
.49
%
,
2/22/25
....
1,346
1,340
1684772.PS.FTS.B
,
24
.4
%
,
2/22/25
.....
890
891
1712954.PS.FTS.B
,
12
.4
%
,
2/26/25
.....
522
520
1708484.PS.FTS.B
,
22
.6
%
,
2/28/25
.....
781
785
1723593.PS.FTS.B
,
22
.6
%
,
2/28/25
.....
2,209
2,220
1730775.PS.FTS.B
,
16
.3
%
,
3/03/25
.....
427
425
1603033.PS.FTS.B
,
24
.6
%
,
5/07/25
.....
1,731
1,365
1673705.PS.FTS.B
,
16
%
,
6/16/25
.......
3,050
2,676
1683121.PS.FTS.B
,
16
.8
%
,
6/22/25
.....
4,710
3,660
1683602.PS.FTS.B
,
23
.4
%
,
7/05/25
.....
544
544
1683241.PS.FTS.B
,
22
.6
%
,
9/22/25
.....
892
626
1681405.PS.FTS.B
,
16
.9
%
,
10/12/25
....
7,600
1,075
1704390.PS.FTS.B
,
17
.8
%
,
10/19/25
....
632
561
1638183.PS.FTS.B
,
17
.71
%
,
10/26/25
...
3,510
3,488
1692336.PS.FTS.B
,
21
.8
%
,
11/28/25
....
4,115
4,095
1716226.PS.FTS.B
,
13
.9
%
,
12/14/25
....
4,714
329
1690361.PS.FTS.B
,
18
.5
%
,
12/18/25
....
1,559
1,133
1709591.PS.FTS.B
,
22
.6
%
,
1/16/26
.....
52
–
1592846.PS.FTS.B
,
15
.9
%
,
7/23/26
.....
3,545
3,529
1599440.PS.FTS.B
,
26
.4
%
,
8/05/26
.....
1,064
1,099
1600460.PS.FTS.B
,
15
.2
%
,
8/06/26
.....
6,850
6,771
1603750.PS.FTS.B
,
15
.9
%
,
8/06/26
.....
3,687
3,644
1600466.PS.FTS.B
,
18
.73
%
,
8/06/26
....
7,165
7,079
1603759.PS.FTS.B
,
20
.59
%
,
8/06/26
....
4,887
4,936
1604551.PS.FTS.B
,
13
.74
%
,
8/09/26
....
9,124
9,010
1611384.PS.FTS.B
,
13
.88
%
,
8/09/26
....
4,488
4,426
1611387.PS.FTS.B
,
19
.33
%
,
8/09/26
....
4,331
4,382
1611390.PS.FTS.B
,
22
.8
%
,
8/09/26
.....
839
861
1611810.PS.FTS.B
,
13
%
,
8/10/26
.......
1,109
1,094
1606042.PS.FTS.B
,
14
.74
%
,
8/10/26
....
7,738
4,170
1611807.PS.FTS.B
,
19
.33
%
,
8/10/26
....
7,239
7,329
1612149.PS.FTS.B
,
20
.7
%
,
8/10/26
.....
2,936
2,971
1612140.PS.FTS.B
,
23
.74
%
,
8/10/26
....
3,297
3,335
1606183.PS.FTS.B
,
12
.6
%
,
8/11/26
.....
6,618
6,530
1603532.PS.FTS.B
,
20
.5
%
,
8/12/26
.....
5,177
5,247
1612131.PS.FTS.B
,
19
.48
%
,
8/15/26
....
3,633
3,677
1611322.PS.FTS.B
,
12
.5
%
,
8/19/26
.....
15,420
15,244
1618149.PS.FTS.B
,
13
.7
%
,
8/19/26
.....
4,925
4,868
1611805.PS.FTS.B
,
16
.18
%
,
8/20/26
....
13,644
13,550
1602449.PS.FTS.B
,
25
%
,
8/21/26
.......
1,042
1,078
1615738.PS.FTS.B
,
13
.3
%
,
8/27/26
.....
1,781
1,764
1612100.PS.FTS.B
,
16
.3
%
,
8/27/26
.....
5,351
251
1604576.PS.FTS.B
,
18
.3
%
,
8/28/26
.....
4,821
4,889
1615636.PS.FTS.B
,
12
.5
%
,
8/30/26
.....
7,431
7,324
1612853.PS.FTS.B
,
13
%
,
8/30/26
.......
18,454
18,520
1611798.PS.FTS.B
,
25
.74
%
,
9/01/26
....
5,583
5,774
1622321.PS.FTS.B
,
19
.23
%
,
9/17/26
....
1,495
1,518
1634619.PS.FTS.B
,
19
%
,
9/21/26
.......
4,968
5,066
1625300.PS.FTS.B
,
11
.79
%
,
9/23/26
....
3,176
3,144
1625246.PS.FTS.B
,
12
.5
%
,
9/23/26
.....
4,351
4,300
1626860.PS.FTS.B
,
15
%
,
9/27/26
.......
3,075
3,058
1631647.PS.FTS.B
,
12
.7
%
,
9/28/26
.....
6,743
6,681
1638105.PS.FTS.B
,
13
.4
%
,
9/28/26
.....
3,012
2,985
1628072.PS.FTS.B
,
14
.53
%
,
9/28/26
....
9,451
9,347
1627559.PS.FTS.B
,
14
.89
%
,
9/28/26
....
8,029
8,006
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1639041.PS.FTS.B
,
11
.7
%
,
9/29/26
.....
$
7,062
$
6,999
1624628.PS.FTS.B
,
12
.9
%
,
9/30/26
.....
13,655
–
1629628.PS.FTS.B
,
14
.31
%
,
10/02/26
...
6,074
3,349
1648282.PS.FTS.B
,
14
%
,
10/26/26
......
7,273
7,221
1648288.PS.FTS.B
,
14
.96
%
,
10/26/26
...
6,133
6,089
1645223.PS.FTS.B
,
10
.5
%
,
10/27/26
....
4,173
4,121
1645646.PS.FTS.B
,
10
.8
%
,
10/27/26
....
6,982
6,896
1648582.PS.FTS.B
,
10
.9
%
,
10/27/26
....
5,005
1,123
1648588.PS.FTS.B
,
14
.39
%
,
10/27/26
...
7,309
7,258
1648621.PS.FTS.B
,
15
.29
%
,
10/27/26
...
14,831
14,722
1646309.PS.FTS.B
,
9
.62
%
,
10/28/26
....
7,115
7,030
1649809.PS.FTS.B
,
11
.1
%
,
10/28/26
....
3,510
3,453
1646066.PS.FTS.B
,
16
.18
%
,
10/28/26
...
7,489
7,438
1646072.PS.FTS.B
,
28
.23
%
,
10/28/26
...
6,779
7,092
1647161.PS.FTS.B
,
10
.5
%
,
10/29/26
....
3,367
3,327
1657278.PS.FTS.B
,
10
.5
%
,
10/29/26
....
3,802
3,763
1646819.PS.FTS.B
,
11
.2
%
,
10/29/26
....
1,941
1,918
1650901.PS.FTS.B
,
11
.2
%
,
10/29/26
....
7,546
7,456
1650847.PS.FTS.B
,
13
.93
%
,
10/29/26
...
4,015
3,966
1489833.PS.FTS.B
,
16
.99
%
,
10/30/26
...
4,446
4,484
1656183.PS.FTS.B
,
14
.38
%
,
10/31/26
...
3,795
3,742
1649791.PS.FTS.B
,
15
.1
%
,
10/31/26
....
12,745
12,643
1655343.PS.FTS.B
,
16
.65
%
,
10/31/26
...
6,870
7,018
1648990.PS.FTS.B
,
18
.33
%
,
10/31/26
...
9,020
9,199
1649806.PS.FTS.B
,
12
.33
%
,
11/01/26
....
9,128
1,825
1648793.PS.FTS.B
,
26
.43
%
,
11/02/26
....
5,754
5,932
1650023.PS.FTS.B
,
14
.79
%
,
11/04/26
....
5,574
5,512
1654723.PS.FTS.B
,
18
.6
%
,
11/05/26
....
3,987
4,016
1651754.PS.FTS.B
,
10
.5
%
,
11/08/26
....
9,614
9,460
1658080.PS.FTS.B
,
14
.63
%
,
11/08/26
....
7,586
7,493
1652300.PS.FTS.B
,
21
.18
%
,
11/08/26
....
7,721
7,804
1666449.PS.FTS.B
,
14
.6
%
,
11/09/26
....
5,814
5,744
1658839.PS.FTS.B
,
14
.68
%
,
11/09/26
....
7,591
7,468
1658842.PS.FTS.B
,
17
%
,
11/09/26
......
6,540
6,609
1659079.PS.FTS.B
,
19
%
,
11/09/26
......
3,192
3,232
1654735.PS.FTS.B
,
18
.25
%
,
11/10/26
....
13,276
13,389
1660333.PS.FTS.B
,
21
.18
%
,
11/10/26
....
2,165
2,192
1667997.PS.FTS.B
,
11
.79
%
,
11/12/26
....
4,397
4,330
1667757.PS.FTS.B
,
18
.25
%
,
11/12/26
....
6,857
6,954
1661914.PS.FTS.B
,
13
.5
%
,
11/15/26
....
12,473
12,350
1661875.PS.FTS.B
,
18
.33
%
,
11/15/26
....
7,919
8,044
1661797.PS.FTS.B
,
21
%
,
11/15/26
......
1,125
1,166
1658339.PS.FTS.B
,
16
%
,
11/17/26
......
3,855
3,921
1650968.PS.FTS.B
,
16
.33
%
,
11/19/26
....
9,362
9,216
1664327.PS.FTS.B
,
13
.5
%
,
11/30/26
....
2,130
2,146
1687146.PS.FTS.B
,
11
.43
%
,
12/16/26
....
6,044
5,940
1687128.PS.FTS.B
,
12
.3
%
,
12/16/26
....
5,090
5,002
1680286.PS.FTS.B
,
12
.5
%
,
12/16/26
....
5,934
–
1687125.PS.FTS.B
,
13
.4
%
,
12/16/26
....
5,158
5,067
1680241.PS.FTS.B
,
14
.38
%
,
12/16/26
...
13,044
12,814
1674101.PS.FTS.B
,
14
.53
%
,
12/16/26
...
9,268
9,117
1680301.PS.FTS.B
,
18
.5
%
,
12/16/26
....
2,733
2,768
1653086.PS.FTS.B
,
18
.2
%
,
12/18/26
....
7,052
7,107
1675265.PS.FTS.B
,
10
.5
%
,
12/20/26
....
11,453
11,265
1688964.PS.FTS.B
,
13
.93
%
,
12/21/26
...
7,785
7,656
1689036.PS.FTS.B
,
14
.6
%
,
12/21/26
....
10,477
10,357
1689054.PS.FTS.B
,
14
.89
%
,
12/21/26
...
7,629
7,552
1676534.PS.FTS.B
,
15
.29
%
,
12/21/26
...
7,488
7,402
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1676819.PS.FTS.B
,
14
.68
%
,
12/22/26
...
$
16,753
$
16,480
1677269.PS.FTS.B
,
25
.9
%
,
12/22/26
....
3,594
3,741
1690638.PS.FTS.B
,
11
.1
%
,
12/23/26
....
4,766
4,691
1680116.PS.FTS.B
,
14
%
,
12/29/26
......
14,485
14,354
1688076.PS.FTS.B
,
16
.4
%
,
12/31/26
....
7,550
7,465
1690116.PS.FTS.B
,
23
.11
%
,
12/31/26
....
8,949
9,325
1686735.PS.FTS.B
,
25
.27
%
,
12/31/26
...
9,576
5,791
1694608.PS.FTS.B
,
10
.62
%
,
1/13/27
....
4,892
4,804
1694572.PS.FTS.B
,
11
.6
%
,
1/13/27
.....
11,369
11,166
1695022.PS.FTS.B
,
11
.7
%
,
1/13/27
.....
8,695
1,715
1688996.PS.FTS.B
,
11
.79
%
,
1/13/27
....
12,805
12,576
1694605.PS.FTS.B
,
15
.2
%
,
1/13/27
.....
1,141
1,125
1701375.PS.FTS.B
,
21
.69
%
,
1/13/27
....
5,788
6,003
1694593.PS.FTS.B
,
23
.4
%
,
1/13/27
.....
6,226
–
1701396.PS.FTS.B
,
27
.4
%
,
1/13/27
.....
3,512
–
1702152.PS.FTS.B
,
12
.87
%
,
1/14/27
....
3,180
3,119
1695343.PS.FTS.B
,
12
.9
%
,
1/14/27
.....
2,859
2,875
1702137.PS.FTS.B
,
16
.2
%
,
1/14/27
.....
3,571
3,523
1702161.PS.FTS.B
,
18
.13
%
,
1/14/27
....
2,243
2,213
1689329.PS.FTS.B
,
18
.4
%
,
1/14/27
.....
5,512
5,585
1688534.PS.FTS.B
,
12
.9
%
,
1/16/27
.....
13,261
13,004
1704984.PS.FTS.B
,
10
.29
%
,
1/19/27
....
6,675
6,566
1692188.PS.FTS.B
,
11
.2
%
,
1/19/27
.....
12,890
12,677
1689365.PS.FTS.B
,
15
.8
%
,
1/19/27
.....
10,963
10,795
1704129.PS.FTS.B
,
21
.18
%
,
1/19/27
....
6,627
–
1692593.PS.FTS.B
,
10
.5
%
,
1/20/27
.....
10,295
10,129
1698709.PS.FTS.B
,
15
.2
%
,
1/20/27
.....
8,150
8,058
1674146.PS.FTS.B
,
18
.78
%
,
1/20/27
....
5,851
5,910
1692281.PS.FTS.B
,
16
.5
%
,
1/24/27
.....
20,031
16,786
1701387.PS.FTS.B
,
11
.1
%
,
1/27/27
.....
4,282
4,203
1695031.PS.FTS.B
,
15
.5
%
,
1/27/27
.....
5,514
5,428
1708451.PS.FTS.B
,
10
.26
%
,
2/15/27
....
3,570
3,512
1721439.PS.FTS.B
,
12
%
,
2/15/27
.......
1,622
1,592
1708901.PS.FTS.B
,
18
.33
%
,
2/15/27
....
11,566
11,719
1720974.PS.FTS.B
,
18
.4
%
,
2/15/27
.....
11,333
11,454
1708466.PS.FTS.B
,
18
.6
%
,
2/15/27
.....
3,769
3,819
1721007.PS.FTS.B
,
22
%
,
2/15/27
.......
8,890
1,291
1709507.PS.FTS.B
,
13
.5
%
,
2/16/27
.....
4,396
4,339
1709498.PS.FTS.B
,
25
.9
%
,
2/16/27
.....
6,217
6,459
1722801.PS.FTS.B
,
23
.31
%
,
2/17/27
....
2,955
3,129
1611804.PS.FTS.B
,
18
%
,
2/22/27
.......
15,039
15,138
1719415.PS.FTS.B
,
10
.8
%
,
2/23/27
.....
6,345
6,241
1715149.PS.FTS.B
,
12
.62
%
,
2/27/27
....
13,686
13,418
1722171.PS.FTS.B
,
18
.78
%
,
2/28/27
....
4,543
4,589
1739157.PS.FTS.B
,
11
.5
%
,
3/18/27
.....
22,240
21,774
1749006.PS.FTS.B
,
19
.53
%
,
3/31/27
....
6,816
6,917
1749429.PS.FTS.B
,
25
.9
%
,
4/01/27
.....
3,942
4,118
1626833.PS.FTS.B
,
14
.7
%
,
7/25/27
.....
8,523
3,807
1654196.PS.FTS.B
,
11
.6
%
,
9/03/27
.....
14,126
13,707
1650307.PS.FTS.B
,
10
.08
%
,
9/29/27
....
7,454
3,957
1708907.PS.FTS.B
,
18
.13
%
,
11/20/27
....
10,710
4,737
1682455.PS.FTS.B
,
11
.43
%
,
11/21/27
....
20,917
9,501
1611363.PS.FTS.B
,
18
.24
%
,
8/09/34
....
1,894
1,438
1630396.PS.FTS.B
,
16
.43
%
,
9/27/34
....
2,485
–
1648597.PS.FTS.B
,
15
.5
%
,
10/27/34
....
20
–
1646303.PS.FTS.B
,
11
.89
%
,
10/28/34
....
30
31
1649524.PS.FTS.B
,
14
.39
%
,
10/28/34
...
114
114
1649797.PS.FTS.B
,
17
.05
%
,
10/28/34
...
22
23
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1650016.PS.FTS.B
,
13
.5
%
,
10/29/34
....
$
672
$
–
1648730.PS.FTS.B
,
17
%
,
11/02/34
......
418
418
1661403.PS.FTS.B
,
14
.11
%
,
11/05/34
....
840
840
1653476.PS.FTS.B
,
10
.8
%
,
11/09/34
....
147
147
1652624.PS.FTS.B
,
12
.3
%
,
11/09/34
....
131
131
1653332.PS.FTS.B
,
12
.79
%
,
11/09/34
....
660
661
1659052.PS.FTS.B
,
15
.29
%
,
11/09/34
....
136
137
1659220.PS.FTS.B
,
16
.6
%
,
11/09/34
....
1,568
277
1659274.PS.FTS.B
,
19
.5
%
,
11/09/34
....
503
505
1654961.PS.FTS.B
,
11
.88
%
,
11/12/34
....
489
490
1654004.PS.FTS.B
,
15
.29
%
,
11/16/34
....
178
178
1503354.PS.FTS.B
,
20
.74
%
,
11/24/34
....
752
783
1660819.PS.FTS.B
,
17
%
,
11/26/34
......
171
173
988,508
Upgrade,
Inc.
24606347.UG.FTS.B
,
30
.17
%
,
12/03/24
..
6,882
7,277
24618663.UG.FTS.B
,
29
.69
%
,
12/21/24
..
4,541
387
25595802.UG.FTS.B
,
28
.99
%
,
1/22/25
...
8,610
9,124
24508053.UG.FTS.B
,
22
.34
%
,
11/20/27
..
89
89
23712149.UG.FTS.B
,
29
.69
%
,
11/06/29
..
659
660
24468287.UG.FTS.B
,
29
.69
%
,
11/26/29
..
17,864
18,686
36,223
Upgrade,
Inc.
-
Card
991487037.UG.FTS.B
,
14
.98
%
,
1/13/25
..
173
173
991499314.UG.FTS.B
,
16
.99
%
,
1/14/25
..
40
40
991692788.UG.FTS.B
,
29
.49
%
,
1/15/25
..
1
1
991729446.UG.FTS.B
,
19
.99
%
,
1/16/25
..
2
2
991649368.UG.FTS.B
,
29
.46
%
,
1/17/25
..
6
6
991713284.UG.FTS.B
,
15
.97
%
,
1/18/25
..
6
6
991543349.UG.FTS.B
,
19
.99
%
,
1/18/25
..
129
131
991596625.UG.FTS.B
,
19
.99
%
,
1/18/25
..
15
15
991541397.UG.FTS.B
,
27
.95
%
,
1/18/25
..
47
25
991536394.UG.FTS.B
,
28
.98
%
,
1/18/25
..
4,143
292
991541730.UG.FTS.B
,
28
.98
%
,
1/18/25
..
16
16
991547864.UG.FTS.B
,
28
.98
%
,
1/18/25
..
84
85
991586801.UG.FTS.B
,
28
.98
%
,
1/18/25
..
63
–
991643598.UG.FTS.B
,
28
.98
%
,
1/18/25
..
28
11
991662279.UG.FTS.B
,
28
.98
%
,
1/18/25
..
11
11
991766780.UG.FTS.B
,
29
.45
%
,
1/18/25
..
19
19
991535459.UG.FTS.B
,
29
.49
%
,
1/18/25
..
30
30
991536072.UG.FTS.B
,
29
.49
%
,
1/18/25
..
49
50
991536876.UG.FTS.B
,
29
.49
%
,
1/18/25
..
33
34
991536929.UG.FTS.B
,
29
.49
%
,
1/18/25
..
43
43
991537021.UG.FTS.B
,
29
.49
%
,
1/18/25
..
1
1
991540546.UG.FTS.B
,
29
.49
%
,
1/18/25
..
11
11
991544799.UG.FTS.B
,
29
.49
%
,
1/18/25
..
30
30
991563278.UG.FTS.B
,
29
.49
%
,
1/18/25
..
21
21
991678184.UG.FTS.B
,
29
.49
%
,
1/18/25
..
2
2
991714196.UG.FTS.B
,
29
.49
%
,
1/18/25
..
1
1
991736128.UG.FTS.B
,
29
.49
%
,
1/18/25
..
4
4
991755790.UG.FTS.B
,
29
.49
%
,
1/18/25
..
3
3
991713909.UG.FTS.B
,
18
.97
%
,
1/19/25
..
31
32
991617879.UG.FTS.B
,
19
.99
%
,
1/19/25
..
148
151
991640553.UG.FTS.B
,
19
.99
%
,
1/19/25
..
9
9
991650417.UG.FTS.B
,
19
.99
%
,
1/19/25
..
30
31
991690575.UG.FTS.B
,
25
.95
%
,
1/19/25
..
178
12
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991779529.UG.FTS.B
,
27
.99
%
,
1/19/25
..
$
42
$
42
991544331.UG.FTS.B
,
28
.98
%
,
1/19/25
..
76
77
991580652.UG.FTS.B
,
28
.98
%
,
1/19/25
..
7
7
991655297.UG.FTS.B
,
28
.98
%
,
1/19/25
..
1
1
991680250.UG.FTS.B
,
28
.98
%
,
1/19/25
..
47
47
991734745.UG.FTS.B
,
28
.98
%
,
1/19/25
..
51
51
991746200.UG.FTS.B
,
28
.98
%
,
1/19/25
..
65
66
991746728.UG.FTS.B
,
28
.98
%
,
1/19/25
..
13
13
991748030.UG.FTS.B
,
28
.98
%
,
1/19/25
..
19
20
991783620.UG.FTS.B
,
28
.98
%
,
1/19/25
..
47
48
991616379.UG.FTS.B
,
29
.45
%
,
1/19/25
..
17
17
991547157.UG.FTS.B
,
29
.46
%
,
1/19/25
..
37
37
991550875.UG.FTS.B
,
29
.47
%
,
1/19/25
..
244
249
991767247.UG.FTS.B
,
29
.47
%
,
1/19/25
..
145
10
991551878.UG.FTS.B
,
29
.48
%
,
1/19/25
..
23
23
991542015.UG.FTS.B
,
29
.49
%
,
1/19/25
..
44
45
991547832.UG.FTS.B
,
29
.49
%
,
1/19/25
..
27
27
991556769.UG.FTS.B
,
29
.49
%
,
1/19/25
..
18
19
991559196.UG.FTS.B
,
29
.49
%
,
1/19/25
..
1,289
92
991567620.UG.FTS.B
,
29
.49
%
,
1/19/25
..
33
33
991589395.UG.FTS.B
,
29
.49
%
,
1/19/25
..
129
9
991719174.UG.FTS.B
,
29
.49
%
,
1/19/25
..
95
96
991769796.UG.FTS.B
,
29
.49
%
,
1/19/25
..
14
15
991771466.UG.FTS.B
,
29
.49
%
,
1/19/25
..
21
21
991773161.UG.FTS.B
,
29
.49
%
,
1/19/25
..
79
80
991782580.UG.FTS.B
,
29
.49
%
,
1/19/25
..
14
15
991558664.UG.FTS.B
,
19
.99
%
,
1/20/25
..
48
49
991560098.UG.FTS.B
,
19
.99
%
,
1/20/25
..
24
24
991563863.UG.FTS.B
,
19
.99
%
,
1/20/25
..
40
40
991567021.UG.FTS.B
,
19
.99
%
,
1/20/25
..
54
55
991575551.UG.FTS.B
,
19
.99
%
,
1/20/25
..
126
128
991579154.UG.FTS.B
,
19
.99
%
,
1/20/25
..
19
20
991580969.UG.FTS.B
,
19
.99
%
,
1/20/25
..
142
144
991591112.UG.FTS.B
,
19
.99
%
,
1/20/25
..
38
38
991613122.UG.FTS.B
,
19
.99
%
,
1/20/25
..
84
6
991615000.UG.FTS.B
,
19
.99
%
,
1/20/25
..
55
56
991635746.UG.FTS.B
,
19
.99
%
,
1/20/25
..
34
34
991642370.UG.FTS.B
,
19
.99
%
,
1/20/25
..
36
36
991650312.UG.FTS.B
,
19
.99
%
,
1/20/25
..
33
34
991666023.UG.FTS.B
,
19
.99
%
,
1/20/25
..
40
41
991699684.UG.FTS.B
,
19
.99
%
,
1/20/25
..
17
17
991693406.UG.FTS.B
,
27
.95
%
,
1/20/25
..
148
150
991682363.UG.FTS.B
,
27
.99
%
,
1/20/25
..
480
5
991547593.UG.FTS.B
,
28
.98
%
,
1/20/25
..
43
43
991552893.UG.FTS.B
,
28
.98
%
,
1/20/25
..
21
21
991553649.UG.FTS.B
,
28
.98
%
,
1/20/25
..
183
186
991558522.UG.FTS.B
,
28
.98
%
,
1/20/25
..
3
3
991559055.UG.FTS.B
,
28
.98
%
,
1/20/25
..
706
715
991559725.UG.FTS.B
,
28
.98
%
,
1/20/25
..
103
105
991561334.UG.FTS.B
,
28
.98
%
,
1/20/25
..
144
–
991562380.UG.FTS.B
,
28
.98
%
,
1/20/25
..
30
30
991564330.UG.FTS.B
,
28
.98
%
,
1/20/25
..
18
18
991568936.UG.FTS.B
,
28
.98
%
,
1/20/25
..
42
43
991571433.UG.FTS.B
,
28
.98
%
,
1/20/25
..
22
23
991575019.UG.FTS.B
,
28
.98
%
,
1/20/25
..
68
69
991579033.UG.FTS.B
,
28
.98
%
,
1/20/25
..
7
7
991580751.UG.FTS.B
,
28
.98
%
,
1/20/25
..
47
48
991581464.UG.FTS.B
,
28
.98
%
,
1/20/25
..
23
23
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991584117.UG.FTS.B
,
28
.98
%
,
1/20/25
..
$
61
$
62
991590552.UG.FTS.B
,
28
.98
%
,
1/20/25
..
50
51
991594115.UG.FTS.B
,
28
.98
%
,
1/20/25
..
88
89
991602891.UG.FTS.B
,
28
.98
%
,
1/20/25
..
15
15
991603854.UG.FTS.B
,
28
.98
%
,
1/20/25
..
41
42
991604665.UG.FTS.B
,
28
.98
%
,
1/20/25
..
28
28
991606337.UG.FTS.B
,
28
.98
%
,
1/20/25
..
8
8
991609515.UG.FTS.B
,
28
.98
%
,
1/20/25
..
60
61
991613998.UG.FTS.B
,
28
.98
%
,
1/20/25
..
72
74
991616232.UG.FTS.B
,
28
.98
%
,
1/20/25
..
18
18
991617883.UG.FTS.B
,
28
.98
%
,
1/20/25
..
177
180
991628122.UG.FTS.B
,
28
.98
%
,
1/20/25
..
14
15
991634258.UG.FTS.B
,
28
.98
%
,
1/20/25
..
19
19
991643294.UG.FTS.B
,
28
.98
%
,
1/20/25
..
21
21
991645700.UG.FTS.B
,
28
.98
%
,
1/20/25
..
150
152
991655177.UG.FTS.B
,
28
.98
%
,
1/20/25
..
24
24
991661646.UG.FTS.B
,
28
.98
%
,
1/20/25
..
52
53
991665002.UG.FTS.B
,
28
.98
%
,
1/20/25
..
152
154
991668194.UG.FTS.B
,
28
.98
%
,
1/20/25
..
61
61
991672473.UG.FTS.B
,
28
.98
%
,
1/20/25
..
38
38
991688152.UG.FTS.B
,
28
.98
%
,
1/20/25
..
20
20
991688819.UG.FTS.B
,
28
.98
%
,
1/20/25
..
43
43
991727362.UG.FTS.B
,
28
.98
%
,
1/20/25
..
22
23
991773470.UG.FTS.B
,
28
.98
%
,
1/20/25
..
10
10
991773912.UG.FTS.B
,
28
.98
%
,
1/20/25
..
25
25
991775579.UG.FTS.B
,
28
.98
%
,
1/20/25
..
24
24
991544892.UG.FTS.B
,
29
.45
%
,
1/20/25
..
109
111
991546469.UG.FTS.B
,
29
.45
%
,
1/20/25
..
43
44
991590390.UG.FTS.B
,
29
.45
%
,
1/20/25
..
37
3
991749201.UG.FTS.B
,
29
.45
%
,
1/20/25
..
95
96
991546140.UG.FTS.B
,
29
.46
%
,
1/20/25
..
88
90
991554451.UG.FTS.B
,
29
.46
%
,
1/20/25
..
174
16
991556833.UG.FTS.B
,
29
.46
%
,
1/20/25
..
42
42
991572725.UG.FTS.B
,
29
.46
%
,
1/20/25
..
23
23
991607542.UG.FTS.B
,
29
.46
%
,
1/20/25
..
80
81
991638849.UG.FTS.B
,
29
.46
%
,
1/20/25
..
25
26
991666110.UG.FTS.B
,
29
.46
%
,
1/20/25
..
5
5
991559050.UG.FTS.B
,
29
.47
%
,
1/20/25
..
349
24
991584440.UG.FTS.B
,
29
.47
%
,
1/20/25
..
28
28
991658968.UG.FTS.B
,
29
.47
%
,
1/20/25
..
10
10
991546168.UG.FTS.B
,
29
.48
%
,
1/20/25
..
30
30
991555928.UG.FTS.B
,
29
.48
%
,
1/20/25
..
43
45
991674255.UG.FTS.B
,
29
.48
%
,
1/20/25
..
142
144
991544749.UG.FTS.B
,
29
.49
%
,
1/20/25
..
172
29
991546174.UG.FTS.B
,
29
.49
%
,
1/20/25
..
165
167
991546669.UG.FTS.B
,
29
.49
%
,
1/20/25
..
14
14
991547049.UG.FTS.B
,
29
.49
%
,
1/20/25
..
19
19
991547440.UG.FTS.B
,
29
.49
%
,
1/20/25
..
16
16
991549454.UG.FTS.B
,
29
.49
%
,
1/20/25
..
85
87
991555165.UG.FTS.B
,
29
.49
%
,
1/20/25
..
27
27
991556819.UG.FTS.B
,
29
.49
%
,
1/20/25
..
21
22
991557327.UG.FTS.B
,
29
.49
%
,
1/20/25
..
121
124
991559863.UG.FTS.B
,
29
.49
%
,
1/20/25
..
43
43
991561412.UG.FTS.B
,
29
.49
%
,
1/20/25
..
143
145
991565868.UG.FTS.B
,
29
.49
%
,
1/20/25
..
63
63
991570228.UG.FTS.B
,
29
.49
%
,
1/20/25
..
21
22
991571176.UG.FTS.B
,
29
.49
%
,
1/20/25
..
17
17
991576324.UG.FTS.B
,
29
.49
%
,
1/20/25
..
239
242
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991578455.UG.FTS.B
,
29
.49
%
,
1/20/25
..
$
59
$
60
991578944.UG.FTS.B
,
29
.49
%
,
1/20/25
..
23
23
991582174.UG.FTS.B
,
29
.49
%
,
1/20/25
..
13
13
991582980.UG.FTS.B
,
29
.49
%
,
1/20/25
..
7
7
991583340.UG.FTS.B
,
29
.49
%
,
1/20/25
..
17
17
991583430.UG.FTS.B
,
29
.49
%
,
1/20/25
..
47
48
991584191.UG.FTS.B
,
29
.49
%
,
1/20/25
..
133
135
991587677.UG.FTS.B
,
29
.49
%
,
1/20/25
..
575
601
991588325.UG.FTS.B
,
29
.49
%
,
1/20/25
..
22
23
991591834.UG.FTS.B
,
29
.49
%
,
1/20/25
..
26
26
991592214.UG.FTS.B
,
29
.49
%
,
1/20/25
..
24
24
991598790.UG.FTS.B
,
29
.49
%
,
1/20/25
..
33
33
991605866.UG.FTS.B
,
29
.49
%
,
1/20/25
..
49
50
991614076.UG.FTS.B
,
29
.49
%
,
1/20/25
..
142
144
991616553.UG.FTS.B
,
29
.49
%
,
1/20/25
..
2
2
991617793.UG.FTS.B
,
29
.49
%
,
1/20/25
..
20
21
991621352.UG.FTS.B
,
29
.49
%
,
1/20/25
..
36
37
991633281.UG.FTS.B
,
29
.49
%
,
1/20/25
..
7
7
991650076.UG.FTS.B
,
29
.49
%
,
1/20/25
..
1
1
991655092.UG.FTS.B
,
29
.49
%
,
1/20/25
..
13
13
991655877.UG.FTS.B
,
29
.49
%
,
1/20/25
..
16
16
991657357.UG.FTS.B
,
29
.49
%
,
1/20/25
..
230
235
991666604.UG.FTS.B
,
29
.49
%
,
1/20/25
..
121
123
991670103.UG.FTS.B
,
29
.49
%
,
1/20/25
..
111
113
991672222.UG.FTS.B
,
29
.49
%
,
1/20/25
..
51
52
991679088.UG.FTS.B
,
29
.49
%
,
1/20/25
..
33
33
991704174.UG.FTS.B
,
29
.49
%
,
1/20/25
..
15
15
991704331.UG.FTS.B
,
29
.49
%
,
1/20/25
..
13
13
991709703.UG.FTS.B
,
29
.49
%
,
1/20/25
..
10
10
991726589.UG.FTS.B
,
29
.49
%
,
1/20/25
..
11
11
991733097.UG.FTS.B
,
29
.49
%
,
1/20/25
..
15
15
991736419.UG.FTS.B
,
29
.49
%
,
1/20/25
..
13
13
991737012.UG.FTS.B
,
29
.49
%
,
1/20/25
..
29
29
991745338.UG.FTS.B
,
29
.49
%
,
1/20/25
..
26
5
991749746.UG.FTS.B
,
29
.49
%
,
1/20/25
..
121
122
991753458.UG.FTS.B
,
29
.49
%
,
1/20/25
..
23
24
991766938.UG.FTS.B
,
29
.49
%
,
1/20/25
..
29
29
991771215.UG.FTS.B
,
29
.49
%
,
1/20/25
..
25
26
991771844.UG.FTS.B
,
29
.49
%
,
1/20/25
..
15
16
991772908.UG.FTS.B
,
29
.49
%
,
1/20/25
..
156
22
991783396.UG.FTS.B
,
29
.49
%
,
1/20/25
..
60
61
991791018.UG.FTS.B
,
29
.49
%
,
1/20/25
..
1
1
991636992.UG.FTS.B
,
16
.99
%
,
1/21/25
..
3
3
991793260.UG.FTS.B
,
17
.99
%
,
1/21/25
..
2,374
10
991764938.UG.FTS.B
,
18
.97
%
,
1/21/25
..
29
29
991749978.UG.FTS.B
,
19
.8
%
,
1/21/25
...
36
36
991716662.UG.FTS.B
,
19
.99
%
,
1/21/25
..
45
45
991813869.UG.FTS.B
,
19
.99
%
,
1/21/25
..
3
3
991762170.UG.FTS.B
,
20
.46
%
,
1/21/25
..
88
89
991748280.UG.FTS.B
,
21
.98
%
,
1/21/25
..
9
9
991741785.UG.FTS.B
,
27
.99
%
,
1/21/25
..
27
28
991642567.UG.FTS.B
,
28
.98
%
,
1/21/25
..
51
52
991662823.UG.FTS.B
,
28
.98
%
,
1/21/25
..
40
40
991665576.UG.FTS.B
,
28
.98
%
,
1/21/25
..
78
79
991673929.UG.FTS.B
,
28
.98
%
,
1/21/25
..
3
3
991675079.UG.FTS.B
,
28
.98
%
,
1/21/25
..
107
109
991681791.UG.FTS.B
,
28
.98
%
,
1/21/25
..
111
113
991682680.UG.FTS.B
,
28
.98
%
,
1/21/25
..
41
42
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991694207.UG.FTS.B
,
28
.98
%
,
1/21/25
..
$
1
$
1
991698062.UG.FTS.B
,
28
.98
%
,
1/21/25
..
24
24
991701470.UG.FTS.B
,
28
.98
%
,
1/21/25
..
34
34
991705300.UG.FTS.B
,
28
.98
%
,
1/21/25
..
99
100
991706808.UG.FTS.B
,
28
.98
%
,
1/21/25
..
74
75
991708246.UG.FTS.B
,
28
.98
%
,
1/21/25
..
21
21
991733515.UG.FTS.B
,
28
.98
%
,
1/21/25
..
30
3
991740862.UG.FTS.B
,
28
.98
%
,
1/21/25
..
30
30
991761552.UG.FTS.B
,
28
.98
%
,
1/21/25
..
19
20
991761801.UG.FTS.B
,
28
.98
%
,
1/21/25
..
25
26
991665122.UG.FTS.B
,
29
.49
%
,
1/21/25
..
277
24
991666036.UG.FTS.B
,
29
.49
%
,
1/21/25
..
143
146
991669205.UG.FTS.B
,
29
.49
%
,
1/21/25
..
24
25
991690832.UG.FTS.B
,
29
.49
%
,
1/21/25
..
17
17
991691912.UG.FTS.B
,
29
.49
%
,
1/21/25
..
62
64
991694190.UG.FTS.B
,
29
.49
%
,
1/21/25
..
32
33
991717859.UG.FTS.B
,
29
.49
%
,
1/21/25
..
34
35
991717914.UG.FTS.B
,
29
.49
%
,
1/21/25
..
64
65
991741010.UG.FTS.B
,
29
.49
%
,
1/21/25
..
23
23
991758421.UG.FTS.B
,
29
.49
%
,
1/21/25
..
22
22
991773655.UG.FTS.B
,
29
.49
%
,
1/21/25
..
36
37
991718275.UG.FTS.B
,
14
.98
%
,
1/22/25
..
203
205
991737948.UG.FTS.B
,
14
.98
%
,
1/22/25
..
63
63
991790203.UG.FTS.B
,
14
.98
%
,
1/22/25
..
19
19
991756518.UG.FTS.B
,
15
%
,
1/22/25
.....
24
24
991754215.UG.FTS.B
,
15
.97
%
,
1/22/25
..
4
4
991775455.UG.FTS.B
,
16
.99
%
,
1/22/25
..
145
146
991698551.UG.FTS.B
,
17
.99
%
,
1/22/25
..
68
69
991718040.UG.FTS.B
,
18
.97
%
,
1/22/25
..
66
67
991789966.UG.FTS.B
,
19
.8
%
,
1/22/25
...
22
23
991643928.UG.FTS.B
,
19
.97
%
,
1/22/25
..
15
16
991639253.UG.FTS.B
,
19
.99
%
,
1/22/25
..
1
1
991788027.UG.FTS.B
,
19
.99
%
,
1/22/25
..
82
7
991695092.UG.FTS.B
,
21
.46
%
,
1/22/25
..
9
9
991672498.UG.FTS.B
,
23
.95
%
,
1/22/25
..
9
9
991632809.UG.FTS.B
,
28
.98
%
,
1/22/25
..
16
16
991655233.UG.FTS.B
,
28
.98
%
,
1/22/25
..
32
32
991657460.UG.FTS.B
,
28
.98
%
,
1/22/25
..
52
52
991694072.UG.FTS.B
,
28
.98
%
,
1/22/25
..
100
102
991722351.UG.FTS.B
,
28
.98
%
,
1/22/25
..
118
120
991646259.UG.FTS.B
,
29
.49
%
,
1/22/25
..
75
76
991688247.UG.FTS.B
,
29
.49
%
,
1/22/25
..
18
18
991746532.UG.FTS.B
,
29
.49
%
,
1/22/25
..
174
177
991751645.UG.FTS.B
,
29
.49
%
,
1/22/25
..
12
12
991758788.UG.FTS.B
,
29
.49
%
,
1/22/25
..
39
40
991765455.UG.FTS.B
,
29
.49
%
,
1/22/25
..
37
37
991779420.UG.FTS.B
,
29
.49
%
,
1/22/25
..
30
30
991792431.UG.FTS.B
,
29
.49
%
,
1/22/25
..
96
97
991802876.UG.FTS.B
,
29
.49
%
,
1/22/25
..
60
61
991636779.UG.FTS.B
,
14
.98
%
,
1/23/25
..
16
16
991673294.UG.FTS.B
,
14
.98
%
,
1/23/25
..
817
822
991810697.UG.FTS.B
,
14
.98
%
,
1/23/25
..
148
150
991720270.UG.FTS.B
,
16
.99
%
,
1/23/25
..
51
51
991713762.UG.FTS.B
,
18
.21
%
,
1/23/25
..
10
10
991652563.UG.FTS.B
,
18
.97
%
,
1/23/25
..
183
185
991654901.UG.FTS.B
,
18
.97
%
,
1/23/25
..
1,070
1,083
991655628.UG.FTS.B
,
19
.21
%
,
1/23/25
..
42
43
991700455.UG.FTS.B
,
19
.21
%
,
1/23/25
..
43
43
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991632705.UG.FTS.B
,
19
.99
%
,
1/23/25
..
$
237
$
–
991655150.UG.FTS.B
,
19
.99
%
,
1/23/25
..
117
8
991684874.UG.FTS.B
,
19
.99
%
,
1/23/25
..
1
1
991665786.UG.FTS.B
,
20
.46
%
,
1/23/25
..
30
30
991701667.UG.FTS.B
,
20
.46
%
,
1/23/25
..
19
20
991722899.UG.FTS.B
,
20
.46
%
,
1/23/25
..
31
31
991700214.UG.FTS.B
,
21
.46
%
,
1/23/25
..
33
34
991710233.UG.FTS.B
,
21
.46
%
,
1/23/25
..
66
67
991641726.UG.FTS.B
,
21
.98
%
,
1/23/25
..
54
54
991636074.UG.FTS.B
,
28
.98
%
,
1/23/25
..
82
6
991644719.UG.FTS.B
,
28
.98
%
,
1/23/25
..
111
113
991665490.UG.FTS.B
,
28
.98
%
,
1/23/25
..
60
61
991667605.UG.FTS.B
,
28
.98
%
,
1/23/25
..
81
82
991671791.UG.FTS.B
,
28
.98
%
,
1/23/25
..
2
2
991675411.UG.FTS.B
,
28
.98
%
,
1/23/25
..
48
49
991693333.UG.FTS.B
,
28
.98
%
,
1/23/25
..
34
34
991759756.UG.FTS.B
,
28
.98
%
,
1/23/25
..
8
8
991774877.UG.FTS.B
,
28
.98
%
,
1/23/25
..
23
23
991635514.UG.FTS.B
,
29
.49
%
,
1/23/25
..
327
331
991640354.UG.FTS.B
,
29
.49
%
,
1/23/25
..
19
19
991648051.UG.FTS.B
,
29
.49
%
,
1/23/25
..
54
55
991651099.UG.FTS.B
,
29
.49
%
,
1/23/25
..
21
22
991655169.UG.FTS.B
,
29
.49
%
,
1/23/25
..
24
25
991662010.UG.FTS.B
,
29
.49
%
,
1/23/25
..
11
11
991669828.UG.FTS.B
,
29
.49
%
,
1/23/25
..
37
38
991670618.UG.FTS.B
,
29
.49
%
,
1/23/25
..
25
26
991688858.UG.FTS.B
,
29
.49
%
,
1/23/25
..
22
22
991694241.UG.FTS.B
,
29
.49
%
,
1/23/25
..
15
15
991710464.UG.FTS.B
,
29
.49
%
,
1/23/25
..
17
17
991711068.UG.FTS.B
,
29
.49
%
,
1/23/25
..
1
1
991740952.UG.FTS.B
,
29
.49
%
,
1/23/25
..
20
21
991763398.UG.FTS.B
,
29
.49
%
,
1/23/25
..
13
13
991764778.UG.FTS.B
,
29
.49
%
,
1/23/25
..
17
18
991781870.UG.FTS.B
,
29
.49
%
,
1/23/25
..
14
14
991792329.UG.FTS.B
,
29
.49
%
,
1/23/25
..
43
44
991798958.UG.FTS.B
,
29
.49
%
,
1/23/25
..
25
25
991648853.UG.FTS.B
,
15
%
,
1/24/25
.....
479
484
991800979.UG.FTS.B
,
15
.97
%
,
1/24/25
..
716
723
991746840.UG.FTS.B
,
17
.99
%
,
1/24/25
..
197
199
991699954.UG.FTS.B
,
18
.97
%
,
1/24/25
..
15
15
991642292.UG.FTS.B
,
19
.99
%
,
1/24/25
..
22
22
991653352.UG.FTS.B
,
19
.99
%
,
1/24/25
..
11
11
991670504.UG.FTS.B
,
19
.99
%
,
1/24/25
..
8
8
991742004.UG.FTS.B
,
19
.99
%
,
1/24/25
..
3
3
991805637.UG.FTS.B
,
19
.99
%
,
1/24/25
..
35
35
991722377.UG.FTS.B
,
20
.46
%
,
1/24/25
..
326
330
991631506.UG.FTS.B
,
21
.46
%
,
1/24/25
..
49
50
991706518.UG.FTS.B
,
24
.95
%
,
1/24/25
..
138
141
991575802.UG.FTS.B
,
28
.98
%
,
1/24/25
..
102
103
991577230.UG.FTS.B
,
28
.98
%
,
1/24/25
..
54
–
991577662.UG.FTS.B
,
28
.98
%
,
1/24/25
..
28
28
991578656.UG.FTS.B
,
28
.98
%
,
1/24/25
..
29
29
991605311.UG.FTS.B
,
28
.98
%
,
1/24/25
..
9
9
991659856.UG.FTS.B
,
28
.98
%
,
1/24/25
..
15
16
991667154.UG.FTS.B
,
28
.98
%
,
1/24/25
..
54
54
991670648.UG.FTS.B
,
28
.98
%
,
1/24/25
..
13
13
991685641.UG.FTS.B
,
28
.98
%
,
1/24/25
..
30
30
991689399.UG.FTS.B
,
28
.98
%
,
1/24/25
..
19
20
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991713017.UG.FTS.B
,
28
.98
%
,
1/24/25
..
$
24
$
24
991722576.UG.FTS.B
,
28
.98
%
,
1/24/25
..
6
7
991725390.UG.FTS.B
,
28
.98
%
,
1/24/25
..
1
1
991725698.UG.FTS.B
,
28
.98
%
,
1/24/25
..
37
38
991780591.UG.FTS.B
,
28
.98
%
,
1/24/25
..
26
26
991783742.UG.FTS.B
,
28
.98
%
,
1/24/25
..
85
86
991785319.UG.FTS.B
,
28
.98
%
,
1/24/25
..
77
78
991789793.UG.FTS.B
,
28
.98
%
,
1/24/25
..
152
155
991789906.UG.FTS.B
,
28
.98
%
,
1/24/25
..
33
34
991791199.UG.FTS.B
,
28
.98
%
,
1/24/25
..
24
25
991598092.UG.FTS.B
,
29
.49
%
,
1/24/25
..
20
20
991598173.UG.FTS.B
,
29
.49
%
,
1/24/25
..
39
39
991604802.UG.FTS.B
,
29
.49
%
,
1/24/25
..
4
4
991637080.UG.FTS.B
,
29
.49
%
,
1/24/25
..
16
17
991650579.UG.FTS.B
,
29
.49
%
,
1/24/25
..
25
25
991658664.UG.FTS.B
,
29
.49
%
,
1/24/25
..
23
23
991660665.UG.FTS.B
,
29
.49
%
,
1/24/25
..
51
52
991678623.UG.FTS.B
,
29
.49
%
,
1/24/25
..
6
6
991679445.UG.FTS.B
,
29
.49
%
,
1/24/25
..
19
19
991684181.UG.FTS.B
,
29
.49
%
,
1/24/25
..
97
99
991700205.UG.FTS.B
,
29
.49
%
,
1/24/25
..
50
51
991714607.UG.FTS.B
,
29
.49
%
,
1/24/25
..
31
32
991714762.UG.FTS.B
,
29
.49
%
,
1/24/25
..
15
16
991717964.UG.FTS.B
,
29
.49
%
,
1/24/25
..
22
–
991736234.UG.FTS.B
,
29
.49
%
,
1/24/25
..
41
41
991799040.UG.FTS.B
,
29
.49
%
,
1/24/25
..
23
24
991722200.UG.FTS.B
,
14
.98
%
,
1/25/25
..
41
41
991685938.UG.FTS.B
,
15
.97
%
,
1/25/25
..
15
16
991719427.UG.FTS.B
,
15
.97
%
,
1/25/25
..
89
2
991749481.UG.FTS.B
,
18
.97
%
,
1/25/25
..
81
81
991667139.UG.FTS.B
,
19
.21
%
,
1/25/25
..
52
53
991690379.UG.FTS.B
,
19
.21
%
,
1/25/25
..
35
36
991811906.UG.FTS.B
,
19
.46
%
,
1/25/25
..
18
18
991598409.UG.FTS.B
,
19
.99
%
,
1/25/25
..
18
18
991647962.UG.FTS.B
,
19
.99
%
,
1/25/25
..
38
39
991671306.UG.FTS.B
,
19
.99
%
,
1/25/25
..
13
13
991751611.UG.FTS.B
,
19
.99
%
,
1/25/25
..
23
24
991754276.UG.FTS.B
,
19
.99
%
,
1/25/25
..
31
31
991810011.UG.FTS.B
,
19
.99
%
,
1/25/25
..
141
21
991701511.UG.FTS.B
,
20
.46
%
,
1/25/25
..
25
25
991735068.UG.FTS.B
,
20
.97
%
,
1/25/25
..
53
53
991659246.UG.FTS.B
,
21
.46
%
,
1/25/25
..
15
15
991781998.UG.FTS.B
,
21
.98
%
,
1/25/25
..
10
10
991643275.UG.FTS.B
,
22
.97
%
,
1/25/25
..
45
45
991629093.UG.FTS.B
,
28
.98
%
,
1/25/25
..
15
15
991632477.UG.FTS.B
,
28
.98
%
,
1/25/25
..
2
2
991645264.UG.FTS.B
,
28
.98
%
,
1/25/25
..
18
18
991666507.UG.FTS.B
,
28
.98
%
,
1/25/25
..
25
26
991684431.UG.FTS.B
,
28
.98
%
,
1/25/25
..
49
50
991700250.UG.FTS.B
,
28
.98
%
,
1/25/25
..
40
41
991708850.UG.FTS.B
,
28
.98
%
,
1/25/25
..
12
12
991717265.UG.FTS.B
,
28
.98
%
,
1/25/25
..
4
4
991782809.UG.FTS.B
,
28
.98
%
,
1/25/25
..
16
16
991801847.UG.FTS.B
,
28
.98
%
,
1/25/25
..
19
19
991813711.UG.FTS.B
,
28
.98
%
,
1/25/25
..
75
76
991816486.UG.FTS.B
,
28
.98
%
,
1/25/25
..
51
52
991586667.UG.FTS.B
,
29
.49
%
,
1/25/25
..
79
7
991588873.UG.FTS.B
,
29
.49
%
,
1/25/25
..
54
55
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991592156.UG.FTS.B
,
29
.49
%
,
1/25/25
..
$
10
$
10
991595877.UG.FTS.B
,
29
.49
%
,
1/25/25
..
7
7
991598369.UG.FTS.B
,
29
.49
%
,
1/25/25
..
23
24
991611906.UG.FTS.B
,
29
.49
%
,
1/25/25
..
43
44
991625116.UG.FTS.B
,
29
.49
%
,
1/25/25
..
147
150
991642788.UG.FTS.B
,
29
.49
%
,
1/25/25
..
21
22
991645432.UG.FTS.B
,
29
.49
%
,
1/25/25
..
24
2
991670995.UG.FTS.B
,
29
.49
%
,
1/25/25
..
32
5
991686520.UG.FTS.B
,
29
.49
%
,
1/25/25
..
68
69
991727305.UG.FTS.B
,
29
.49
%
,
1/25/25
..
121
124
991734934.UG.FTS.B
,
29
.49
%
,
1/25/25
..
25
26
991742823.UG.FTS.B
,
29
.49
%
,
1/25/25
..
36
37
991758553.UG.FTS.B
,
29
.49
%
,
1/25/25
..
26
26
991781861.UG.FTS.B
,
29
.49
%
,
1/25/25
..
89
90
991789248.UG.FTS.B
,
29
.49
%
,
1/25/25
..
30
31
991789795.UG.FTS.B
,
29
.49
%
,
1/25/25
..
62
63
991803714.UG.FTS.B
,
29
.49
%
,
1/25/25
..
5
5
991819908.UG.FTS.B
,
29
.49
%
,
1/25/25
..
52
54
991705574.UG.FTS.B
,
14
.98
%
,
1/26/25
..
73
73
991588990.UG.FTS.B
,
16
.99
%
,
1/26/25
..
230
232
991693301.UG.FTS.B
,
19
.8
%
,
1/26/25
...
22
22
991815429.UG.FTS.B
,
19
.99
%
,
1/26/25
..
154
157
991722451.UG.FTS.B
,
20
.46
%
,
1/26/25
..
102
103
991691649.UG.FTS.B
,
20
.97
%
,
1/26/25
..
78
79
991689234.UG.FTS.B
,
21
.46
%
,
1/26/25
..
23
23
991644445.UG.FTS.B
,
27
.99
%
,
1/26/25
..
16
16
991665705.UG.FTS.B
,
27
.99
%
,
1/26/25
..
19
19
991593526.UG.FTS.B
,
28
.98
%
,
1/26/25
..
15
16
991594391.UG.FTS.B
,
28
.98
%
,
1/26/25
..
31
31
991604950.UG.FTS.B
,
28
.98
%
,
1/26/25
..
18
18
991629035.UG.FTS.B
,
28
.98
%
,
1/26/25
..
30
30
991634636.UG.FTS.B
,
28
.98
%
,
1/26/25
..
60
61
991641894.UG.FTS.B
,
28
.98
%
,
1/26/25
..
19
20
991653899.UG.FTS.B
,
28
.98
%
,
1/26/25
..
16
16
991664416.UG.FTS.B
,
28
.98
%
,
1/26/25
..
47
48
991678461.UG.FTS.B
,
28
.98
%
,
1/26/25
..
17
17
991698131.UG.FTS.B
,
28
.98
%
,
1/26/25
..
49
50
991703821.UG.FTS.B
,
28
.98
%
,
1/26/25
..
29
30
991743995.UG.FTS.B
,
28
.98
%
,
1/26/25
..
73
–
991804080.UG.FTS.B
,
28
.98
%
,
1/26/25
..
7
7
991818761.UG.FTS.B
,
28
.98
%
,
1/26/25
..
18
18
991826236.UG.FTS.B
,
28
.98
%
,
1/26/25
..
98
100
991712881.UG.FTS.B
,
29
.46
%
,
1/26/25
..
87
89
991606181.UG.FTS.B
,
29
.49
%
,
1/26/25
..
61
12
991612147.UG.FTS.B
,
29
.49
%
,
1/26/25
..
16
16
991616526.UG.FTS.B
,
29
.49
%
,
1/26/25
..
63
2
991637756.UG.FTS.B
,
29
.49
%
,
1/26/25
..
237
242
991638709.UG.FTS.B
,
29
.49
%
,
1/26/25
..
26
26
991640808.UG.FTS.B
,
29
.49
%
,
1/26/25
..
1
1
991641553.UG.FTS.B
,
29
.49
%
,
1/26/25
..
22
23
991664371.UG.FTS.B
,
29
.49
%
,
1/26/25
..
23
23
991668328.UG.FTS.B
,
29
.49
%
,
1/26/25
..
29
30
991673737.UG.FTS.B
,
29
.49
%
,
1/26/25
..
433
440
991674552.UG.FTS.B
,
29
.49
%
,
1/26/25
..
33
34
991682957.UG.FTS.B
,
29
.49
%
,
1/26/25
..
208
213
991686882.UG.FTS.B
,
29
.49
%
,
1/26/25
..
37
38
991688387.UG.FTS.B
,
29
.49
%
,
1/26/25
..
412
29
991695946.UG.FTS.B
,
29
.49
%
,
1/26/25
..
73
74
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991698577.UG.FTS.B
,
29
.49
%
,
1/26/25
..
$
52
$
53
991727832.UG.FTS.B
,
29
.49
%
,
1/26/25
..
39
39
991779497.UG.FTS.B
,
29
.49
%
,
1/26/25
..
37
37
991820442.UG.FTS.B
,
29
.49
%
,
1/26/25
..
26
26
991827132.UG.FTS.B
,
29
.49
%
,
1/26/25
..
18
18
991835985.UG.FTS.B
,
29
.49
%
,
1/26/25
..
191
195
991681455.UG.FTS.B
,
15
%
,
1/27/25
.....
66
67
991653768.UG.FTS.B
,
16
.99
%
,
1/27/25
..
22
22
991603461.UG.FTS.B
,
19
.99
%
,
1/27/25
..
90
92
991604987.UG.FTS.B
,
19
.99
%
,
1/27/25
..
36
37
991606626.UG.FTS.B
,
19
.99
%
,
1/27/25
..
55
56
991610646.UG.FTS.B
,
19
.99
%
,
1/27/25
..
37
6
991613609.UG.FTS.B
,
19
.99
%
,
1/27/25
..
12
12
991665857.UG.FTS.B
,
19
.99
%
,
1/27/25
..
23
23
991598032.UG.FTS.B
,
27
.99
%
,
1/27/25
..
28
29
991593724.UG.FTS.B
,
28
.98
%
,
1/27/25
..
16
16
991594933.UG.FTS.B
,
28
.98
%
,
1/27/25
..
22
23
991598602.UG.FTS.B
,
28
.98
%
,
1/27/25
..
25
25
991602821.UG.FTS.B
,
28
.98
%
,
1/27/25
..
194
197
991602932.UG.FTS.B
,
28
.98
%
,
1/27/25
..
34
–
991603572.UG.FTS.B
,
28
.98
%
,
1/27/25
..
147
150
991604001.UG.FTS.B
,
28
.98
%
,
1/27/25
..
79
5
991608665.UG.FTS.B
,
28
.98
%
,
1/27/25
..
78
80
991613097.UG.FTS.B
,
28
.98
%
,
1/27/25
..
25
26
991615892.UG.FTS.B
,
28
.98
%
,
1/27/25
..
89
91
991623357.UG.FTS.B
,
28
.98
%
,
1/27/25
..
45
46
991632093.UG.FTS.B
,
28
.98
%
,
1/27/25
..
49
50
991632344.UG.FTS.B
,
28
.98
%
,
1/27/25
..
16
16
991634644.UG.FTS.B
,
28
.98
%
,
1/27/25
..
12
12
991635049.UG.FTS.B
,
28
.98
%
,
1/27/25
..
59
60
991636408.UG.FTS.B
,
28
.98
%
,
1/27/25
..
48
49
991643120.UG.FTS.B
,
28
.98
%
,
1/27/25
..
65
66
991645234.UG.FTS.B
,
28
.98
%
,
1/27/25
..
20
20
991645498.UG.FTS.B
,
28
.98
%
,
1/27/25
..
57
58
991654856.UG.FTS.B
,
28
.98
%
,
1/27/25
..
72
74
991657182.UG.FTS.B
,
28
.98
%
,
1/27/25
..
242
247
991659335.UG.FTS.B
,
28
.98
%
,
1/27/25
..
53
54
991663420.UG.FTS.B
,
28
.98
%
,
1/27/25
..
275
281
991664621.UG.FTS.B
,
28
.98
%
,
1/27/25
..
26
27
991666634.UG.FTS.B
,
28
.98
%
,
1/27/25
..
20
21
991670133.UG.FTS.B
,
28
.98
%
,
1/27/25
..
28
29
991679811.UG.FTS.B
,
28
.98
%
,
1/27/25
..
7
7
991684799.UG.FTS.B
,
28
.98
%
,
1/27/25
..
27
12
991684873.UG.FTS.B
,
28
.98
%
,
1/27/25
..
12
12
991693530.UG.FTS.B
,
28
.98
%
,
1/27/25
..
23
23
991699112.UG.FTS.B
,
28
.98
%
,
1/27/25
..
12
12
991747891.UG.FTS.B
,
28
.98
%
,
1/27/25
..
18
18
991772279.UG.FTS.B
,
28
.98
%
,
1/27/25
..
182
187
991785235.UG.FTS.B
,
28
.98
%
,
1/27/25
..
143
10
991811211.UG.FTS.B
,
28
.98
%
,
1/27/25
..
35
36
991598580.UG.FTS.B
,
29
.49
%
,
1/27/25
..
20
20
991600440.UG.FTS.B
,
29
.49
%
,
1/27/25
..
8
8
991600674.UG.FTS.B
,
29
.49
%
,
1/27/25
..
31
1
991608526.UG.FTS.B
,
29
.49
%
,
1/27/25
..
44
45
991609655.UG.FTS.B
,
29
.49
%
,
1/27/25
..
18
18
991611049.UG.FTS.B
,
29
.49
%
,
1/27/25
..
34
34
991611862.UG.FTS.B
,
29
.49
%
,
1/27/25
..
24
24
991616915.UG.FTS.B
,
29
.49
%
,
1/27/25
..
28
28
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991627621.UG.FTS.B
,
29
.49
%
,
1/27/25
..
$
14
$
14
991636506.UG.FTS.B
,
29
.49
%
,
1/27/25
..
114
116
991637168.UG.FTS.B
,
29
.49
%
,
1/27/25
..
19
19
991668359.UG.FTS.B
,
29
.49
%
,
1/27/25
..
102
19
991672322.UG.FTS.B
,
29
.49
%
,
1/27/25
..
25
25
991683132.UG.FTS.B
,
29
.49
%
,
1/27/25
..
216
222
991689965.UG.FTS.B
,
29
.49
%
,
1/27/25
..
39
40
991691306.UG.FTS.B
,
29
.49
%
,
1/27/25
..
25
25
991698507.UG.FTS.B
,
29
.49
%
,
1/27/25
..
29
30
991703342.UG.FTS.B
,
29
.49
%
,
1/27/25
..
11
11
991709075.UG.FTS.B
,
29
.49
%
,
1/27/25
..
22
5
991718575.UG.FTS.B
,
29
.49
%
,
1/27/25
..
21
22
991720299.UG.FTS.B
,
29
.49
%
,
1/27/25
..
155
159
991732661.UG.FTS.B
,
29
.49
%
,
1/27/25
..
11
12
991737584.UG.FTS.B
,
29
.49
%
,
1/27/25
..
15
16
991752239.UG.FTS.B
,
29
.49
%
,
1/27/25
..
57
58
991759684.UG.FTS.B
,
29
.49
%
,
1/27/25
..
148
151
991784000.UG.FTS.B
,
29
.49
%
,
1/27/25
..
28
28
991812381.UG.FTS.B
,
29
.49
%
,
1/27/25
..
1
1
991606397.UG.FTS.B
,
15
.97
%
,
1/28/25
..
64
65
991800530.UG.FTS.B
,
15
.97
%
,
1/28/25
..
120
20
991617374.UG.FTS.B
,
16
.99
%
,
1/28/25
..
363
368
991762445.UG.FTS.B
,
16
.99
%
,
1/28/25
..
2
2
991854471.UG.FTS.B
,
16
.99
%
,
1/28/25
..
878
887
991720766.UG.FTS.B
,
17
.99
%
,
1/28/25
..
105
106
991727531.UG.FTS.B
,
17
.99
%
,
1/28/25
..
19
20
991864236.UG.FTS.B
,
14
.98
%
,
1/29/25
..
1,003
1,014
991716164.UG.FTS.B
,
15
.97
%
,
1/29/25
..
54
54
991748418.UG.FTS.B
,
16
.99
%
,
1/29/25
..
79
79
991842042.UG.FTS.B
,
17
.99
%
,
1/29/25
..
495
35
991667796.UG.FTS.B
,
19
.21
%
,
1/29/25
..
36
36
991748200.UG.FTS.B
,
14
.98
%
,
1/30/25
..
18
19
991627597.UG.FTS.B
,
18
.97
%
,
1/30/25
..
41
42
991620571.UG.FTS.B
,
22
.97
%
,
1/30/25
..
70
71
991685973.UG.FTS.B
,
14
.98
%
,
1/31/25
..
263
42
991718191.UG.FTS.B
,
14
.98
%
,
1/31/25
..
65
66
991726744.UG.FTS.B
,
14
.98
%
,
1/31/25
..
34
34
991853717.UG.FTS.B
,
15
%
,
1/31/25
.....
284
26
991638888.UG.FTS.B
,
15
.97
%
,
1/31/25
..
13
14
991809317.UG.FTS.B
,
15
.97
%
,
1/31/25
..
33
33
991815664.UG.FTS.B
,
15
.97
%
,
1/31/25
..
87
88
991638718.UG.FTS.B
,
16
.99
%
,
1/31/25
..
35
36
991662857.UG.FTS.B
,
16
.99
%
,
1/31/25
..
33
33
991704534.UG.FTS.B
,
16
.99
%
,
1/31/25
..
188
35
991757606.UG.FTS.B
,
16
.99
%
,
1/31/25
..
34
34
991675482.UG.FTS.B
,
17
.97
%
,
1/31/25
..
60
60
991642242.UG.FTS.B
,
17
.99
%
,
1/31/25
..
21
22
991682270.UG.FTS.B
,
17
.99
%
,
1/31/25
..
30
30
991709244.UG.FTS.B
,
17
.99
%
,
1/31/25
..
16
16
991712841.UG.FTS.B
,
17
.99
%
,
1/31/25
..
55
56
991754758.UG.FTS.B
,
17
.99
%
,
1/31/25
..
125
127
991772768.UG.FTS.B
,
17
.99
%
,
1/31/25
..
13
13
991639577.UG.FTS.B
,
19
.21
%
,
1/31/25
..
28
29
991663410.UG.FTS.B
,
19
.8
%
,
1/31/25
...
426
430
991648537.UG.FTS.B
,
20
.97
%
,
1/31/25
..
30
31
991661887.UG.FTS.B
,
20
.97
%
,
1/31/25
..
34
35
991693835.UG.FTS.B
,
21
.46
%
,
1/31/25
..
162
25
991883831.UG.FTS.B
,
14
%
,
2/01/25
.....
1
1
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991693291.UG.FTS.B
,
14
%
,
2/02/25
.....
$
28
$
28
991771266.UG.FTS.B
,
14
%
,
2/02/25
.....
29
29
991834440.UG.FTS.B
,
14
%
,
2/02/25
.....
36
36
991658184.UG.FTS.B
,
15
%
,
2/02/25
.....
648
653
991760625.UG.FTS.B
,
15
.97
%
,
2/02/25
..
47
47
991650925.UG.FTS.B
,
16
.99
%
,
2/02/25
..
34
34
991781369.UG.FTS.B
,
16
.99
%
,
2/02/25
..
133
134
991868233.UG.FTS.B
,
16
.99
%
,
2/02/25
..
531
534
991689544.UG.FTS.B
,
17
.97
%
,
2/02/25
..
19
19
991731323.UG.FTS.B
,
17
.99
%
,
2/02/25
..
47
47
991880297.UG.FTS.B
,
17
.99
%
,
2/02/25
..
63
63
991878726.UG.FTS.B
,
14
.98
%
,
2/03/25
..
83
83
991907914.UG.FTS.B
,
17
.99
%
,
2/03/25
..
27
27
991689885.UG.FTS.B
,
19
.99
%
,
2/03/25
..
101
101
991714434.UG.FTS.B
,
19
.99
%
,
2/03/25
..
50
51
991688155.UG.FTS.B
,
28
.98
%
,
2/03/25
..
25
25
991699673.UG.FTS.B
,
28
.98
%
,
2/03/25
..
40
41
991700745.UG.FTS.B
,
28
.98
%
,
2/03/25
..
709
716
991713626.UG.FTS.B
,
28
.98
%
,
2/03/25
..
39
40
991777700.UG.FTS.B
,
28
.98
%
,
2/03/25
..
131
132
991882827.UG.FTS.B
,
28
.98
%
,
2/03/25
..
37
37
991910619.UG.FTS.B
,
28
.98
%
,
2/03/25
..
81
82
991916599.UG.FTS.B
,
28
.98
%
,
2/03/25
..
19
19
991722488.UG.FTS.B
,
29
.49
%
,
2/03/25
..
31
32
991747483.UG.FTS.B
,
29
.49
%
,
2/03/25
..
62
62
991756506.UG.FTS.B
,
29
.49
%
,
2/03/25
..
29
30
991770245.UG.FTS.B
,
29
.49
%
,
2/03/25
..
88
90
991917239.UG.FTS.B
,
29
.49
%
,
2/03/25
..
50
50
991871765.UG.FTS.B
,
14
.98
%
,
2/04/25
..
47
47
991700340.UG.FTS.B
,
16
.99
%
,
2/04/25
..
30
30
991741062.UG.FTS.B
,
16
.99
%
,
2/04/25
..
36
37
991809198.UG.FTS.B
,
16
.99
%
,
2/04/25
..
193
14
991752793.UG.FTS.B
,
18
.97
%
,
2/04/25
..
108
1
991729245.UG.FTS.B
,
19
.8
%
,
2/04/25
...
20
20
991696574.UG.FTS.B
,
28
.98
%
,
2/04/25
..
27
28
991700907.UG.FTS.B
,
28
.98
%
,
2/04/25
..
37
37
991714934.UG.FTS.B
,
28
.98
%
,
2/04/25
..
30
30
991786787.UG.FTS.B
,
28
.98
%
,
2/04/25
..
32
32
991824710.UG.FTS.B
,
28
.98
%
,
2/04/25
..
75
75
991900572.UG.FTS.B
,
28
.98
%
,
2/04/25
..
42
3
991911859.UG.FTS.B
,
28
.98
%
,
2/04/25
..
19
19
991926669.UG.FTS.B
,
28
.98
%
,
2/04/25
..
9
9
991686783.UG.FTS.B
,
29
.49
%
,
2/04/25
..
15
7
991687371.UG.FTS.B
,
29
.49
%
,
2/04/25
..
25
25
991693725.UG.FTS.B
,
29
.49
%
,
2/04/25
..
57
58
991694653.UG.FTS.B
,
29
.49
%
,
2/04/25
..
106
108
991707526.UG.FTS.B
,
29
.49
%
,
2/04/25
..
6
6
991717208.UG.FTS.B
,
29
.49
%
,
2/04/25
..
48
48
991737055.UG.FTS.B
,
29
.49
%
,
2/04/25
..
191
27
991758842.UG.FTS.B
,
29
.49
%
,
2/04/25
..
83
84
991763796.UG.FTS.B
,
29
.49
%
,
2/04/25
..
20
20
991807327.UG.FTS.B
,
29
.49
%
,
2/04/25
..
22
22
991867247.UG.FTS.B
,
29
.49
%
,
2/04/25
..
13
12
991879607.UG.FTS.B
,
29
.49
%
,
2/04/25
..
41
41
991861184.UG.FTS.B
,
19
.21
%
,
2/05/25
..
34
34
991682958.UG.FTS.B
,
19
.99
%
,
2/05/25
..
9
9
991710161.UG.FTS.B
,
19
.99
%
,
2/05/25
..
5
5
991725525.UG.FTS.B
,
19
.99
%
,
2/05/25
..
16
16
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991735635.UG.FTS.B
,
19
.99
%
,
2/05/25
..
$
19
$
19
991739604.UG.FTS.B
,
19
.99
%
,
2/05/25
..
227
231
991832671.UG.FTS.B
,
19
.99
%
,
2/05/25
..
52
8
991915152.UG.FTS.B
,
19
.99
%
,
2/05/25
..
41
41
991841527.UG.FTS.B
,
20
.46
%
,
2/05/25
..
69
69
991707903.UG.FTS.B
,
20
.97
%
,
2/05/25
..
2
–
991715412.UG.FTS.B
,
20
.97
%
,
2/05/25
..
48
49
991840414.UG.FTS.B
,
21
.46
%
,
2/05/25
..
71
71
991869250.UG.FTS.B
,
21
.46
%
,
2/05/25
..
271
270
991910043.UG.FTS.B
,
21
.46
%
,
2/05/25
..
246
245
991911356.UG.FTS.B
,
21
.98
%
,
2/05/25
..
61
–
991743501.UG.FTS.B
,
22
.97
%
,
2/05/25
..
89
90
991703789.UG.FTS.B
,
24
.95
%
,
2/05/25
..
33
34
991717022.UG.FTS.B
,
27
.99
%
,
2/05/25
..
39
40
991700269.UG.FTS.B
,
28
.98
%
,
2/05/25
..
27
27
991706300.UG.FTS.B
,
28
.98
%
,
2/05/25
..
49
50
991706343.UG.FTS.B
,
28
.98
%
,
2/05/25
..
17
8
991716179.UG.FTS.B
,
28
.98
%
,
2/05/25
..
40
40
991718944.UG.FTS.B
,
28
.98
%
,
2/05/25
..
156
158
991724730.UG.FTS.B
,
28
.98
%
,
2/05/25
..
152
155
991732989.UG.FTS.B
,
28
.98
%
,
2/05/25
..
59
60
991737214.UG.FTS.B
,
28
.98
%
,
2/05/25
..
32
32
991739154.UG.FTS.B
,
28
.98
%
,
2/05/25
..
527
535
991739980.UG.FTS.B
,
28
.98
%
,
2/05/25
..
62
63
991745601.UG.FTS.B
,
28
.98
%
,
2/05/25
..
6
6
991746873.UG.FTS.B
,
28
.98
%
,
2/05/25
..
30
31
991747299.UG.FTS.B
,
28
.98
%
,
2/05/25
..
12
12
991755981.UG.FTS.B
,
28
.98
%
,
2/05/25
..
51
51
991759687.UG.FTS.B
,
28
.98
%
,
2/05/25
..
55
55
991762144.UG.FTS.B
,
28
.98
%
,
2/05/25
..
28
29
991762262.UG.FTS.B
,
28
.98
%
,
2/05/25
..
27
27
991776821.UG.FTS.B
,
28
.98
%
,
2/05/25
..
42
3
991776933.UG.FTS.B
,
28
.98
%
,
2/05/25
..
63
64
991789109.UG.FTS.B
,
28
.98
%
,
2/05/25
..
49
49
991790367.UG.FTS.B
,
28
.98
%
,
2/05/25
..
269
273
991807068.UG.FTS.B
,
28
.98
%
,
2/05/25
..
53
54
991829108.UG.FTS.B
,
28
.98
%
,
2/05/25
..
181
185
991836188.UG.FTS.B
,
28
.98
%
,
2/05/25
..
31
31
991842297.UG.FTS.B
,
28
.98
%
,
2/05/25
..
18
19
991842364.UG.FTS.B
,
28
.98
%
,
2/05/25
..
220
223
991855938.UG.FTS.B
,
28
.98
%
,
2/05/25
..
52
52
991884917.UG.FTS.B
,
28
.98
%
,
2/05/25
..
89
90
991886335.UG.FTS.B
,
28
.98
%
,
2/05/25
..
62
63
991894894.UG.FTS.B
,
28
.98
%
,
2/05/25
..
415
58
991897007.UG.FTS.B
,
28
.98
%
,
2/05/25
..
18
18
991901365.UG.FTS.B
,
28
.98
%
,
2/05/25
..
189
192
991937493.UG.FTS.B
,
28
.98
%
,
2/05/25
..
49
49
991938119.UG.FTS.B
,
28
.98
%
,
2/05/25
..
279
282
991697402.UG.FTS.B
,
29
.49
%
,
2/05/25
..
32
33
991700153.UG.FTS.B
,
29
.49
%
,
2/05/25
..
35
35
991703611.UG.FTS.B
,
29
.49
%
,
2/05/25
..
17
17
991715444.UG.FTS.B
,
29
.49
%
,
2/05/25
..
8
8
991722812.UG.FTS.B
,
29
.49
%
,
2/05/25
..
45
46
991725800.UG.FTS.B
,
29
.49
%
,
2/05/25
..
35
36
991727032.UG.FTS.B
,
29
.49
%
,
2/05/25
..
31
32
991728509.UG.FTS.B
,
29
.49
%
,
2/05/25
..
6
6
991732282.UG.FTS.B
,
29
.49
%
,
2/05/25
..
22
23
991732719.UG.FTS.B
,
29
.49
%
,
2/05/25
..
41
41
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991745294.UG.FTS.B
,
29
.49
%
,
2/05/25
..
$
59
$
4
991747447.UG.FTS.B
,
29
.49
%
,
2/05/25
..
123
125
991748448.UG.FTS.B
,
29
.49
%
,
2/05/25
..
133
133
991750763.UG.FTS.B
,
29
.49
%
,
2/05/25
..
21
21
991752383.UG.FTS.B
,
29
.49
%
,
2/05/25
..
31
32
991754108.UG.FTS.B
,
29
.49
%
,
2/05/25
..
27
28
991757533.UG.FTS.B
,
29
.49
%
,
2/05/25
..
12
12
991767013.UG.FTS.B
,
29
.49
%
,
2/05/25
..
29
29
991770008.UG.FTS.B
,
29
.49
%
,
2/05/25
..
16
16
991770513.UG.FTS.B
,
29
.49
%
,
2/05/25
..
18
19
991790182.UG.FTS.B
,
29
.49
%
,
2/05/25
..
23
23
991792427.UG.FTS.B
,
29
.49
%
,
2/05/25
..
22
22
991811197.UG.FTS.B
,
29
.49
%
,
2/05/25
..
54
55
991815312.UG.FTS.B
,
29
.49
%
,
2/05/25
..
55
56
991842723.UG.FTS.B
,
29
.49
%
,
2/05/25
..
27
27
991850751.UG.FTS.B
,
29
.49
%
,
2/05/25
..
41
42
991853314.UG.FTS.B
,
29
.49
%
,
2/05/25
..
25
25
991857355.UG.FTS.B
,
29
.49
%
,
2/05/25
..
18
18
991857915.UG.FTS.B
,
29
.49
%
,
2/05/25
..
93
94
991902591.UG.FTS.B
,
29
.49
%
,
2/05/25
..
53
54
991919187.UG.FTS.B
,
29
.49
%
,
2/05/25
..
33
33
991938113.UG.FTS.B
,
29
.49
%
,
2/05/25
..
59
59
991700171.UG.FTS.B
,
18
.97
%
,
2/06/25
..
92
93
991716319.UG.FTS.B
,
19
.21
%
,
2/06/25
..
97
98
991786750.UG.FTS.B
,
19
.21
%
,
2/06/25
..
37
37
991710752.UG.FTS.B
,
19
.8
%
,
2/06/25
...
70
71
991724990.UG.FTS.B
,
19
.8
%
,
2/06/25
...
10
10
991698898.UG.FTS.B
,
19
.99
%
,
2/06/25
..
162
163
991755348.UG.FTS.B
,
19
.99
%
,
2/06/25
..
19
20
991802156.UG.FTS.B
,
19
.99
%
,
2/06/25
..
144
146
991714002.UG.FTS.B
,
20
.46
%
,
2/06/25
..
157
159
991754233.UG.FTS.B
,
20
.46
%
,
2/06/25
..
15
15
991801256.UG.FTS.B
,
20
.46
%
,
2/06/25
..
82
83
991829259.UG.FTS.B
,
20
.46
%
,
2/06/25
..
35
36
991863415.UG.FTS.B
,
20
.46
%
,
2/06/25
..
156
157
991726288.UG.FTS.B
,
21
.98
%
,
2/06/25
..
33
33
991741410.UG.FTS.B
,
21
.98
%
,
2/06/25
..
55
56
991792953.UG.FTS.B
,
21
.98
%
,
2/06/25
..
925
401
991807809.UG.FTS.B
,
21
.98
%
,
2/06/25
..
279
280
991845918.UG.FTS.B
,
21
.98
%
,
2/06/25
..
36
36
991869067.UG.FTS.B
,
21
.98
%
,
2/06/25
..
149
150
991769602.UG.FTS.B
,
23
.95
%
,
2/06/25
..
179
181
991733615.UG.FTS.B
,
27
.95
%
,
2/06/25
..
213
215
991759445.UG.FTS.B
,
27
.99
%
,
2/06/25
..
48
48
991700105.UG.FTS.B
,
28
.98
%
,
2/06/25
..
18
18
991701200.UG.FTS.B
,
28
.98
%
,
2/06/25
..
18
19
991701698.UG.FTS.B
,
28
.98
%
,
2/06/25
..
51
52
991703634.UG.FTS.B
,
28
.98
%
,
2/06/25
..
35
35
991706049.UG.FTS.B
,
28
.98
%
,
2/06/25
..
41
7
991706891.UG.FTS.B
,
28
.98
%
,
2/06/25
..
15
15
991708571.UG.FTS.B
,
28
.98
%
,
2/06/25
..
47
48
991710098.UG.FTS.B
,
28
.98
%
,
2/06/25
..
25
25
991717052.UG.FTS.B
,
28
.98
%
,
2/06/25
..
89
91
991718999.UG.FTS.B
,
28
.98
%
,
2/06/25
..
5
5
991725784.UG.FTS.B
,
28
.98
%
,
2/06/25
..
64
4
991725860.UG.FTS.B
,
28
.98
%
,
2/06/25
..
11
11
991729721.UG.FTS.B
,
28
.98
%
,
2/06/25
..
66
67
991732224.UG.FTS.B
,
28
.98
%
,
2/06/25
..
34
34
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991734815.UG.FTS.B
,
28
.98
%
,
2/06/25
..
$
47
$
48
991739880.UG.FTS.B
,
28
.98
%
,
2/06/25
..
30
14
991748713.UG.FTS.B
,
28
.98
%
,
2/06/25
..
35
35
991749171.UG.FTS.B
,
28
.98
%
,
2/06/25
..
156
157
991756884.UG.FTS.B
,
28
.98
%
,
2/06/25
..
53
53
991762162.UG.FTS.B
,
28
.98
%
,
2/06/25
..
53
54
991766305.UG.FTS.B
,
28
.98
%
,
2/06/25
..
78
79
991770800.UG.FTS.B
,
28
.98
%
,
2/06/25
..
25
26
991787293.UG.FTS.B
,
28
.98
%
,
2/06/25
..
23
23
991817047.UG.FTS.B
,
28
.98
%
,
2/06/25
..
130
132
991823324.UG.FTS.B
,
28
.98
%
,
2/06/25
..
395
401
991826493.UG.FTS.B
,
28
.98
%
,
2/06/25
..
21
21
991832752.UG.FTS.B
,
28
.98
%
,
2/06/25
..
119
121
991862866.UG.FTS.B
,
28
.98
%
,
2/06/25
..
628
636
991868227.UG.FTS.B
,
28
.98
%
,
2/06/25
..
130
132
991868577.UG.FTS.B
,
28
.98
%
,
2/06/25
..
43
43
991896380.UG.FTS.B
,
28
.98
%
,
2/06/25
..
1,531
647
991930551.UG.FTS.B
,
28
.98
%
,
2/06/25
..
67
68
991712510.UG.FTS.B
,
29
.47
%
,
2/06/25
..
52
53
991690939.UG.FTS.B
,
29
.49
%
,
2/06/25
..
237
242
991700095.UG.FTS.B
,
29
.49
%
,
2/06/25
..
77
1
991704419.UG.FTS.B
,
29
.49
%
,
2/06/25
..
54
55
991707381.UG.FTS.B
,
29
.49
%
,
2/06/25
..
38
38
991708109.UG.FTS.B
,
29
.49
%
,
2/06/25
..
34
35
991708283.UG.FTS.B
,
29
.49
%
,
2/06/25
..
11
11
991709656.UG.FTS.B
,
29
.49
%
,
2/06/25
..
159
23
991712333.UG.FTS.B
,
29
.49
%
,
2/06/25
..
21
22
991712745.UG.FTS.B
,
29
.49
%
,
2/06/25
..
24
25
991715596.UG.FTS.B
,
29
.49
%
,
2/06/25
..
155
156
991721139.UG.FTS.B
,
29
.49
%
,
2/06/25
..
46
47
991725507.UG.FTS.B
,
29
.49
%
,
2/06/25
..
58
59
991729831.UG.FTS.B
,
29
.49
%
,
2/06/25
..
6
6
991730113.UG.FTS.B
,
29
.49
%
,
2/06/25
..
43
43
991738035.UG.FTS.B
,
29
.49
%
,
2/06/25
..
17
18
991738990.UG.FTS.B
,
29
.49
%
,
2/06/25
..
97
49
991746112.UG.FTS.B
,
29
.49
%
,
2/06/25
..
14
14
991746952.UG.FTS.B
,
29
.49
%
,
2/06/25
..
39
39
991749942.UG.FTS.B
,
29
.49
%
,
2/06/25
..
77
79
991759741.UG.FTS.B
,
29
.49
%
,
2/06/25
..
57
58
991767120.UG.FTS.B
,
29
.49
%
,
2/06/25
..
6
6
991767728.UG.FTS.B
,
29
.49
%
,
2/06/25
..
34
34
991769688.UG.FTS.B
,
29
.49
%
,
2/06/25
..
72
73
991798596.UG.FTS.B
,
29
.49
%
,
2/06/25
..
4
4
991800849.UG.FTS.B
,
29
.49
%
,
2/06/25
..
15
6
991815674.UG.FTS.B
,
29
.49
%
,
2/06/25
..
77
77
991816101.UG.FTS.B
,
29
.49
%
,
2/06/25
..
36
36
991821554.UG.FTS.B
,
29
.49
%
,
2/06/25
..
23
23
991826917.UG.FTS.B
,
29
.49
%
,
2/06/25
..
89
90
991852176.UG.FTS.B
,
29
.49
%
,
2/06/25
..
24
24
991862795.UG.FTS.B
,
29
.49
%
,
2/06/25
..
230
234
991869807.UG.FTS.B
,
29
.49
%
,
2/06/25
..
24
24
991886716.UG.FTS.B
,
29
.49
%
,
2/06/25
..
23
23
991914065.UG.FTS.B
,
29
.49
%
,
2/06/25
..
28
29
991736213.UG.FTS.B
,
14
.98
%
,
2/07/25
..
61
61
991827281.UG.FTS.B
,
18
.97
%
,
2/07/25
..
20
20
991905123.UG.FTS.B
,
18
.97
%
,
2/07/25
..
21
21
991748413.UG.FTS.B
,
19
.21
%
,
2/07/25
..
169
12
991783290.UG.FTS.B
,
19
.21
%
,
2/07/25
..
49
49
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991924115.UG.FTS.B
,
19
.21
%
,
2/07/25
..
$
17
$
17
991856601.UG.FTS.B
,
19
.99
%
,
2/07/25
..
59
60
991929766.UG.FTS.B
,
19
.99
%
,
2/07/25
..
30
31
991843735.UG.FTS.B
,
21
.98
%
,
2/07/25
..
123
21
991736467.UG.FTS.B
,
22
.97
%
,
2/07/25
..
68
68
991762975.UG.FTS.B
,
25
.95
%
,
2/07/25
..
72
72
991748191.UG.FTS.B
,
27
.99
%
,
2/07/25
..
117
121
991800353.UG.FTS.B
,
27
.99
%
,
2/07/25
..
13
13
991705793.UG.FTS.B
,
28
.98
%
,
2/07/25
..
87
88
991705973.UG.FTS.B
,
28
.98
%
,
2/07/25
..
38
39
991707358.UG.FTS.B
,
28
.98
%
,
2/07/25
..
20
21
991708937.UG.FTS.B
,
28
.98
%
,
2/07/25
..
41
42
991708989.UG.FTS.B
,
28
.98
%
,
2/07/25
..
41
41
991710379.UG.FTS.B
,
28
.98
%
,
2/07/25
..
51
52
991712303.UG.FTS.B
,
28
.98
%
,
2/07/25
..
35
35
991712922.UG.FTS.B
,
28
.98
%
,
2/07/25
..
23
23
991717771.UG.FTS.B
,
28
.98
%
,
2/07/25
..
54
55
991724273.UG.FTS.B
,
28
.98
%
,
2/07/25
..
243
247
991724529.UG.FTS.B
,
28
.98
%
,
2/07/25
..
283
284
991728955.UG.FTS.B
,
28
.98
%
,
2/07/25
..
72
73
991740286.UG.FTS.B
,
28
.98
%
,
2/07/25
..
339
23
991743968.UG.FTS.B
,
28
.98
%
,
2/07/25
..
91
93
991755398.UG.FTS.B
,
28
.98
%
,
2/07/25
..
21
21
991772287.UG.FTS.B
,
28
.98
%
,
2/07/25
..
80
81
991784791.UG.FTS.B
,
28
.98
%
,
2/07/25
..
44
45
991799326.UG.FTS.B
,
28
.98
%
,
2/07/25
..
105
106
991803039.UG.FTS.B
,
28
.98
%
,
2/07/25
..
129
131
991806653.UG.FTS.B
,
28
.98
%
,
2/07/25
..
81
11
991807123.UG.FTS.B
,
28
.98
%
,
2/07/25
..
103
103
991811191.UG.FTS.B
,
28
.98
%
,
2/07/25
..
26
26
991814223.UG.FTS.B
,
28
.98
%
,
2/07/25
..
29
29
991849419.UG.FTS.B
,
28
.98
%
,
2/07/25
..
82
83
991882872.UG.FTS.B
,
28
.98
%
,
2/07/25
..
52
53
991922608.UG.FTS.B
,
28
.98
%
,
2/07/25
..
3
3
991935487.UG.FTS.B
,
28
.98
%
,
2/07/25
..
29
11
991709575.UG.FTS.B
,
29
.48
%
,
2/07/25
..
57
58
991712449.UG.FTS.B
,
29
.49
%
,
2/07/25
..
32
32
991712892.UG.FTS.B
,
29
.49
%
,
2/07/25
..
35
35
991717543.UG.FTS.B
,
29
.49
%
,
2/07/25
..
29
29
991718167.UG.FTS.B
,
29
.49
%
,
2/07/25
..
24
25
991721040.UG.FTS.B
,
29
.49
%
,
2/07/25
..
22
23
991729210.UG.FTS.B
,
29
.49
%
,
2/07/25
..
91
92
991730418.UG.FTS.B
,
29
.49
%
,
2/07/25
..
264
265
991734975.UG.FTS.B
,
29
.49
%
,
2/07/25
..
16
7
991735915.UG.FTS.B
,
29
.49
%
,
2/07/25
..
61
62
991736857.UG.FTS.B
,
29
.49
%
,
2/07/25
..
335
148
991738244.UG.FTS.B
,
29
.49
%
,
2/07/25
..
25
25
991747860.UG.FTS.B
,
29
.49
%
,
2/07/25
..
5
5
991754591.UG.FTS.B
,
29
.49
%
,
2/07/25
..
38
39
991759641.UG.FTS.B
,
29
.49
%
,
2/07/25
..
32
33
991759993.UG.FTS.B
,
29
.49
%
,
2/07/25
..
47
48
991760081.UG.FTS.B
,
29
.49
%
,
2/07/25
..
29
29
991761633.UG.FTS.B
,
29
.49
%
,
2/07/25
..
26
26
991778741.UG.FTS.B
,
29
.49
%
,
2/07/25
..
20
20
991788685.UG.FTS.B
,
29
.49
%
,
2/07/25
..
89
89
991809318.UG.FTS.B
,
29
.49
%
,
2/07/25
..
26
26
991813864.UG.FTS.B
,
29
.49
%
,
2/07/25
..
9
9
991815263.UG.FTS.B
,
29
.49
%
,
2/07/25
..
56
56
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991842816.UG.FTS.B
,
29
.49
%
,
2/07/25
..
$
35
$
35
991843151.UG.FTS.B
,
29
.49
%
,
2/07/25
..
152
154
991843750.UG.FTS.B
,
29
.49
%
,
2/07/25
..
7
7
991848794.UG.FTS.B
,
29
.49
%
,
2/07/25
..
3
3
991852346.UG.FTS.B
,
29
.49
%
,
2/07/25
..
40
40
991858094.UG.FTS.B
,
29
.49
%
,
2/07/25
..
44
45
991868612.UG.FTS.B
,
29
.49
%
,
2/07/25
..
15
15
991887497.UG.FTS.B
,
29
.49
%
,
2/07/25
..
158
160
991918574.UG.FTS.B
,
29
.49
%
,
2/07/25
..
68
69
991924888.UG.FTS.B
,
29
.49
%
,
2/07/25
..
41
7
991930808.UG.FTS.B
,
29
.49
%
,
2/07/25
..
192
197
991783643.UG.FTS.B
,
14
.98
%
,
2/08/25
..
257
259
991802379.UG.FTS.B
,
15
.97
%
,
2/08/25
..
65
65
991904951.UG.FTS.B
,
15
.97
%
,
2/08/25
..
44
44
991908489.UG.FTS.B
,
15
.97
%
,
2/08/25
..
65
66
991771363.UG.FTS.B
,
16
.99
%
,
2/08/25
..
101
101
991717470.UG.FTS.B
,
19
.21
%
,
2/08/25
..
35
35
991724869.UG.FTS.B
,
15
%
,
2/09/25
.....
375
27
991746108.UG.FTS.B
,
15
%
,
2/09/25
.....
39
39
991746306.UG.FTS.B
,
15
%
,
2/09/25
.....
228
229
991908452.UG.FTS.B
,
15
%
,
2/09/25
.....
872
62
991929779.UG.FTS.B
,
15
%
,
2/09/25
.....
5
5
991719973.UG.FTS.B
,
16
.99
%
,
2/09/25
..
90
6
991778289.UG.FTS.B
,
16
.99
%
,
2/09/25
..
5
5
991783787.UG.FTS.B
,
16
.99
%
,
2/09/25
..
211
34
991741247.UG.FTS.B
,
17
.97
%
,
2/09/25
..
133
134
991764270.UG.FTS.B
,
17
.99
%
,
2/09/25
..
72
72
991867276.UG.FTS.B
,
17
.99
%
,
2/09/25
..
36
36
991766510.UG.FTS.B
,
29
.49
%
,
2/17/25
..
19
20
991655876.UG.FTS.B
,
28
.48
%
,
2/21/25
..
55
55
991710560.UG.FTS.B
,
28
.98
%
,
3/05/25
..
91
91
991814933.UG.FTS.B
,
29
.49
%
,
3/05/25
..
75
5
991547565.UG.FTS.B
,
28
.98
%
,
3/16/25
..
27
25
991544408.UG.FTS.B
,
28
.98
%
,
3/17/25
..
14
13
991711288.UG.FTS.B
,
21
.98
%
,
4/07/25
..
101
7
991778724.UG.FTS.B
,
29
.49
%
,
4/07/25
..
29
27
991587154.UG.FTS.B
,
29
.49
%
,
4/16/25
..
57
10
991721350.UG.FTS.B
,
29
.49
%
,
4/16/25
..
765
657
991588111.UG.FTS.B
,
28
.98
%
,
4/17/25
..
33
34
991718290.UG.FTS.B
,
29
.49
%
,
4/19/25
..
30
31
991749787.UG.FTS.B
,
29
.49
%
,
4/19/25
..
108
111
991685301.UG.FTS.B
,
14
.98
%
,
4/20/25
..
479
8
991811950.UG.FTS.B
,
19
.99
%
,
4/20/25
..
35
36
991772947.UG.FTS.B
,
28
.98
%
,
4/20/25
..
261
–
991762816.UG.FTS.B
,
29
.49
%
,
4/20/25
..
41
4
991745755.UG.FTS.B
,
20
.46
%
,
4/21/25
..
204
14
991738330.UG.FTS.B
,
29
.49
%
,
4/21/25
..
28
28
991697266.UG.FTS.B
,
21
.46
%
,
4/22/25
..
76
12
991638710.UG.FTS.B
,
28
.98
%
,
4/23/25
..
57
58
991688671.UG.FTS.B
,
28
.98
%
,
4/23/25
..
58
52
991832099.UG.FTS.B
,
29
.49
%
,
4/23/25
..
23
21
991838313.UG.FTS.B
,
15
.97
%
,
4/25/25
..
443
452
991666265.UG.FTS.B
,
16
.99
%
,
5/01/25
..
144
128
991724571.UG.FTS.B
,
28
.98
%
,
5/05/25
..
58
59
991813874.UG.FTS.B
,
28
.98
%
,
5/05/25
..
50
51
991694154.UG.FTS.B
,
29
.49
%
,
5/05/25
..
635
43
991941061.UG.FTS.B
,
17
.99
%
,
5/06/25
..
145
147
991691439.UG.FTS.B
,
28
.98
%
,
5/06/25
..
325
330
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991912584.UG.FTS.B
,
28
.98
%
,
5/06/25
..
$
166
$
171
991757332.UG.FTS.B
,
29
.49
%
,
5/06/25
..
39
3
991707574.UG.FTS.B
,
29
.49
%
,
5/07/25
..
35
6
991550463.UG.FTS.B
,
19
.99
%
,
5/17/25
..
427
438
991740124.UG.FTS.B
,
28
.98
%
,
5/17/25
..
39
40
991686463.UG.FTS.B
,
28
.98
%
,
5/18/25
..
265
276
991674428.UG.FTS.B
,
29
.49
%
,
5/20/25
..
391
405
991776695.UG.FTS.B
,
29
.49
%
,
5/21/25
..
82
4
991665672.UG.FTS.B
,
28
.98
%
,
5/22/25
..
372
–
991770465.UG.FTS.B
,
29
.49
%
,
5/24/25
..
9
9
991805657.UG.FTS.B
,
29
.49
%
,
6/03/25
..
157
161
991772904.UG.FTS.B
,
19
.99
%
,
6/05/25
..
49
50
991705736.UG.FTS.B
,
28
.98
%
,
6/05/25
..
97
7
991708239.UG.FTS.B
,
28
.98
%
,
6/05/25
..
66
68
991736771.UG.FTS.B
,
28
.98
%
,
6/05/25
..
82
84
991739566.UG.FTS.B
,
29
.49
%
,
6/23/25
..
465
33
991694848.UG.FTS.B
,
29
.49
%
,
7/05/25
..
406
416
991718934.UG.FTS.B
,
20
.97
%
,
7/06/25
..
98
99
991894974.UG.FTS.B
,
29
.49
%
,
7/06/25
..
170
153
991588559.UG.FTS.B
,
29
.46
%
,
7/17/25
..
24
21
991922928.UG.FTS.B
,
28
.98
%
,
8/04/25
..
70
71
991702178.UG.FTS.B
,
28
.98
%
,
8/06/25
..
67
19
991883200.UG.FTS.B
,
29
.49
%
,
8/07/25
..
221
190
991758368.UG.FTS.B
,
29
.49
%
,
8/20/25
..
176
184
991814652.UG.FTS.B
,
29
.49
%
,
9/05/25
..
49
3
991688747.UG.FTS.B
,
28
.98
%
,
9/16/25
..
44
46
991579317.UG.FTS.B
,
29
.49
%
,
9/16/25
..
87
–
991656357.UG.FTS.B
,
29
.49
%
,
9/17/25
..
186
193
991628863.UG.FTS.B
,
28
.98
%
,
9/21/25
..
376
29
991645022.UG.FTS.B
,
29
.49
%
,
9/21/25
..
45
38
991609616.UG.FTS.B
,
28
.98
%
,
9/24/25
..
157
160
991596886.UG.FTS.B
,
29
.49
%
,
9/24/25
..
104
109
991728473.UG.FTS.B
,
29
.49
%
,
10/06/25
.
806
232
991771961.UG.FTS.B
,
29
.49
%
,
11/07/25
.
97
79
991657177.UG.FTS.B
,
28
.98
%
,
11/17/25
.
1,631
117
991699882.UG.FTS.B
,
19
.99
%
,
11/18/25
.
68
71
991687274.UG.FTS.B
,
19
.99
%
,
11/23/25
.
144
150
991543638.UG.FTS.B
,
29
.49
%
,
12/15/25
.
78
61
991545568.UG.FTS.B
,
29
.49
%
,
12/16/25
.
769
812
991786433.UG.FTS.B
,
20
.46
%
,
12/21/25
.
88
7
991730761.UG.FTS.B
,
28
.98
%
,
12/24/25
.
102
108
991734435.UG.FTS.B
,
29
.49
%
,
1/06/26
..
95
6
991933771.UG.FTS.B
,
29
.49
%
,
1/06/26
..
185
48
991579043.UG.FTS.B
,
19
.99
%
,
1/17/26
..
1,407
1,083
991601320.UG.FTS.B
,
28
.98
%
,
1/17/26
..
535
558
991555378.UG.FTS.B
,
29
.49
%
,
1/17/26
..
96
99
991742865.UG.FTS.B
,
29
.49
%
,
1/21/26
..
331
264
991640216.UG.FTS.B
,
29
.49
%
,
1/22/26
..
309
245
991659287.UG.FTS.B
,
29
.49
%
,
1/24/26
..
125
99
991667408.UG.FTS.B
,
17
.97
%
,
2/02/26
..
105
78
991814320.UG.FTS.B
,
29
.49
%
,
2/05/26
..
256
–
991585964.UG.FTS.B
,
28
.98
%
,
2/22/26
..
353
280
991647827.UG.FTS.B
,
29
.49
%
,
2/23/26
..
95
100
991754815.UG.FTS.B
,
29
.49
%
,
2/24/26
..
73
77
991693967.UG.FTS.B
,
19
.99
%
,
3/05/26
..
148
116
991695320.UG.FTS.B
,
29
.49
%
,
3/05/26
..
82
21
991755928.UG.FTS.B
,
29
.49
%
,
4/06/26
..
44
44
991727635.UG.FTS.B
,
28
.98
%
,
4/07/26
..
173
10
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991726248.UG.FTS.B
,
21
.46
%
,
4/08/26
..
$
90
$
71
991693097.UG.FTS.B
,
26
.94
%
,
4/20/26
..
317
239
991783713.UG.FTS.B
,
29
.49
%
,
9/05/26
..
378
85
991573331.UG.FTS.B
,
29
.49
%
,
9/17/26
..
94
66
991788566.UG.FTS.B
,
29
.49
%
,
11/21/26
.
94
4
991735485.UG.FTS.B
,
28
.98
%
,
12/07/26
.
134
9
991658250.UG.FTS.B
,
16
.99
%
,
1/20/27
..
661
672
991607046.UG.FTS.B
,
21
.99
%
,
1/20/27
..
3,103
215
991624113.UG.FTS.B
,
17
.99
%
,
1/29/27
..
151
152
991664785.UG.FTS.B
,
18
.98
%
,
1/29/27
..
196
207
991721939.UG.FTS.B
,
16
.99
%
,
2/02/27
..
805
842
991894965.UG.FTS.B
,
16
.99
%
,
2/03/27
..
3,413
3,555
991571658.UG.FTS.B
,
28
.98
%
,
2/15/27
..
145
102
991716805.UG.FTS.B
,
22
.97
%
,
3/08/27
..
365
248
991663324.UG.FTS.B
,
22
.36
%
,
5/29/27
..
86
91
991735384.UG.FTS.B
,
29
.49
%
,
6/06/27
..
360
42
991648967.UG.FTS.B
,
29
.49
%
,
10/24/27
.
104
7
991646401.UG.FTS.B
,
29
.49
%
,
1/20/28
..
41
43
991759963.UG.FTS.B
,
29
.49
%
,
3/18/28
..
11
11
991757545.UG.FTS.B
,
28
.98
%
,
8/06/28
..
191
114
991719643.UG.FTS.B
,
29
.49
%
,
9/22/28
..
150
155
991678457.UG.FTS.B
,
19
.99
%
,
10/30/28
.
480
266
991946691.UG.FTS.B
,
14
.98
%
,
7/08/29
..
10
9
991636176.UG.FTS.B
,
29
.49
%
,
7/23/29
..
8
8
991924883.UG.FTS.B
,
23
.95
%
,
8/05/29
..
9
–
991922854.UG.FTS.B
,
21
.46
%
,
9/07/29
..
7
7
991802395.UG.FTS.B
,
29
.49
%
,
10/06/29
.
20
20
991732331.UG.FTS.B
,
28
.48
%
,
10/15/29
.
2
1
991715735.UG.FTS.B
,
28
.98
%
,
11/05/29
.
1
1
991767533.UG.FTS.B
,
19
.99
%
,
11/06/29
.
1
1
991760438.UG.FTS.B
,
28
.98
%
,
11/17/29
.
2
2
991620217.UG.FTS.B
,
29
.49
%
,
11/17/29
.
3
3
991589741.UG.FTS.B
,
29
.49
%
,
11/23/29
.
1
1
991763220.UG.FTS.B
,
29
.49
%
,
3/07/32
..
15
15
72,883
Upstart
Network,
Inc.
L2196723.UP.FTS.B
,
12
.12
%
,
12/07/24
...
426
419
L2196919.UP.FTS.B
,
12
.98
%
,
12/07/24
...
691
76
L2199259.UP.FTS.B
,
13
.19
%
,
12/07/24
...
299
294
L2197668.UP.FTS.B
,
17
.17
%
,
12/07/24
...
510
26
L2199581.UP.FTS.B
,
19
.33
%
,
12/07/24
...
82
80
FW2199717.UP.FTS.B
,
20
.13
%
,
12/07/24
.
363
357
L2198118.UP.FTS.B
,
20
.43
%
,
12/07/24
...
490
35
L2197271.UP.FTS.B
,
22
.76
%
,
12/07/24
...
772
758
L2196613.UP.FTS.B
,
23
.35
%
,
12/07/24
...
472
465
FW2195888.UP.FTS.B
,
24
.84
%
,
12/07/24
.
16
13
L2203520.UP.FTS.B
,
6
.61
%
,
12/08/24
....
1,119
1,106
FW2201265.UP.FTS.B
,
7
.44
%
,
12/08/24
..
431
425
L2200896.UP.FTS.B
,
7
.68
%
,
12/08/24
....
433
427
FW2206887.UP.FTS.B
,
9
.22
%
,
12/08/24
..
649
640
L2201633.UP.FTS.B
,
10
.05
%
,
12/08/24
...
618
610
L2206909.UP.FTS.B
,
11
.8
%
,
12/08/24
....
195
192
L2205399.UP.FTS.B
,
11
.81
%
,
12/08/24
...
64
63
L2201373.UP.FTS.B
,
12
.48
%
,
12/08/24
...
197
194
L2200458.UP.FTS.B
,
12
.89
%
,
12/08/24
...
388
382
L2204453.UP.FTS.B
,
13
.74
%
,
12/08/24
...
200
197
L2204038.UP.FTS.B
,
14
.23
%
,
12/08/24
...
632
623
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2204310.UP.FTS.B
,
14
.38
%
,
12/08/24
...
$
68
$
67
FW2198905.UP.FTS.B
,
15
.38
%
,
12/08/24
.
336
331
L2201862.UP.FTS.B
,
17
%
,
12/08/24
.....
353
347
L2202296.UP.FTS.B
,
18
.33
%
,
12/08/24
...
92
90
L2204182.UP.FTS.B
,
19
.36
%
,
12/08/24
...
647
636
L2203811.UP.FTS.B
,
19
.85
%
,
12/08/24
...
236
232
FW2201750.UP.FTS.B
,
20
.37
%
,
12/08/24
.
145
143
L2202392.UP.FTS.B
,
21
.41
%
,
12/08/24
...
332
326
FW2206827.UP.FTS.B
,
22
.71
%
,
12/08/24
.
375
369
L2202398.UP.FTS.B
,
23
.19
%
,
12/08/24
...
527
518
FW2176932.UP.FTS.B
,
25
.88
%
,
12/08/24
.
203
199
FW2201104.UP.FTS.B
,
26
.62
%
,
12/08/24
.
79
78
FW2201792.UP.FTS.B
,
27
.21
%
,
12/08/24
.
276
272
FW2201560.UP.FTS.B
,
28
.51
%
,
12/08/24
.
169
166
FW2204026.UP.FTS.B
,
28
.52
%
,
12/08/24
.
1,550
327
FW2205439.UP.FTS.B
,
29
.01
%
,
12/08/24
.
81
80
L2195358.UP.FTS.B
,
20
.15
%
,
12/16/24
...
72
71
L2202614.UP.FTS.B
,
12
.88
%
,
12/19/24
...
533
525
FW2198017.UP.FTS.B
,
23
.08
%
,
12/20/24
.
228
224
FW2203151.UP.FTS.B
,
21
.13
%
,
12/22/24
.
311
306
L2180897.UP.FTS.B
,
21
.81
%
,
12/23/24
...
600
590
FW2203707.UP.FTS.B
,
26
.53
%
,
12/23/24
.
181
178
L2411924.UP.FTS.B
,
5
.26
%
,
1/11/25
.....
536
529
L2411777.UP.FTS.B
,
5
.56
%
,
1/11/25
.....
811
800
L2411090.UP.FTS.B
,
5
.74
%
,
1/11/25
.....
629
622
L2412917.UP.FTS.B
,
6
.87
%
,
1/11/25
.....
274
270
L2410776.UP.FTS.B
,
7
.38
%
,
1/11/25
.....
551
544
FW2408203.UP.FTS.B
,
8
.04
%
,
1/11/25
...
279
275
L2407274.UP.FTS.B
,
8
.11
%
,
1/11/25
.....
432
36
FW2413171.UP.FTS.B
,
8
.15
%
,
1/11/25
...
278
274
L2412008.UP.FTS.B
,
8
.58
%
,
1/11/25
.....
936
922
L2410161.UP.FTS.B
,
9
.06
%
,
1/11/25
.....
188
185
L2408028.UP.FTS.B
,
9
.2
%
,
1/11/25
......
318
314
FW2412135.UP.FTS.B
,
10
.19
%
,
1/11/25
..
259
225
L2413510.UP.FTS.B
,
10
.29
%
,
1/11/25
....
1,573
1,551
L2411555.UP.FTS.B
,
10
.32
%
,
1/11/25
....
431
425
L2411669.UP.FTS.B
,
10
.84
%
,
1/11/25
....
192
189
FW2410432.UP.FTS.B
,
10
.89
%
,
1/11/25
..
480
472
L2413320.UP.FTS.B
,
11
.28
%
,
1/11/25
....
1,929
1,902
L2408103.UP.FTS.B
,
12
.61
%
,
1/11/25
....
245
241
FW2412082.UP.FTS.B
,
12
.62
%
,
1/11/25
..
293
289
L2410850.UP.FTS.B
,
13
.07
%
,
1/11/25
....
148
146
L2410120.UP.FTS.B
,
14
.05
%
,
1/11/25
....
200
197
FW2412033.UP.FTS.B
,
14
.09
%
,
1/11/25
..
198
195
L2410798.UP.FTS.B
,
15
.99
%
,
1/11/25
....
1,023
1,006
FW2413492.UP.FTS.B
,
16
.11
%
,
1/11/25
..
146
144
L2407096.UP.FTS.B
,
16
.55
%
,
1/11/25
....
2,442
2,403
L2409614.UP.FTS.B
,
17
.29
%
,
1/11/25
....
601
591
L2411442.UP.FTS.B
,
17
.42
%
,
1/11/25
....
2,723
2,380
L2409234.UP.FTS.B
,
17
.51
%
,
1/11/25
....
312
307
L2407062.UP.FTS.B
,
17
.52
%
,
1/11/25
....
177
174
L2411946.UP.FTS.B
,
17
.59
%
,
1/11/25
....
909
894
L2412506.UP.FTS.B
,
19
.8
%
,
1/11/25
.....
1,027
1,011
L2407256.UP.FTS.B
,
20
.21
%
,
1/11/25
....
751
740
FW2407665.UP.FTS.B
,
20
.61
%
,
1/11/25
..
2,701
2,658
FW2388641.UP.FTS.B
,
21
.09
%
,
1/11/25
..
109
107
L2413329.UP.FTS.B
,
21
.38
%
,
1/11/25
....
4,860
353
L2410058.UP.FTS.B
,
22
.27
%
,
1/11/25
....
1,198
1,119
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2407636.UP.FTS.B
,
23
.33
%
,
1/11/25
....
$
75
$
74
FW2410949.UP.FTS.B
,
25
.16
%
,
1/11/25
..
173
170
FW2411088.UP.FTS.B
,
28
.45
%
,
1/11/25
..
236
232
L2415408.UP.FTS.B
,
5
.38
%
,
1/12/25
....
858
847
L2418369.UP.FTS.B
,
5
.69
%
,
1/12/25
....
135
133
L2420304.UP.FTS.B
,
6
.48
%
,
1/12/25
....
234
231
L2419347.UP.FTS.B
,
6
.78
%
,
1/12/25
....
792
781
L2416428.UP.FTS.B
,
6
.81
%
,
1/12/25
....
182
180
L2418759.UP.FTS.B
,
6
.94
%
,
1/12/25
....
672
664
L2419328.UP.FTS.B
,
7
.52
%
,
1/12/25
....
644
636
L2415914.UP.FTS.B
,
7
.64
%
,
1/12/25
....
324
319
FW2418816.UP.FTS.B
,
7
.73
%
,
1/12/25
...
555
547
L2419589.UP.FTS.B
,
7
.74
%
,
1/12/25
....
1,860
1,630
L2414073.UP.FTS.B
,
8
.79
%
,
1/12/25
....
198
195
L2415019.UP.FTS.B
,
8
.85
%
,
1/12/25
....
187
185
L2414074.UP.FTS.B
,
9
.04
%
,
1/12/25
....
1,406
1,387
L2417145.UP.FTS.B
,
9
.34
%
,
1/12/25
....
104
102
L2415812.UP.FTS.B
,
9
.44
%
,
1/12/25
....
495
488
FW2413836.UP.FTS.B
,
10
.39
%
,
1/12/25
..
229
226
L2396686.UP.FTS.B
,
10
.42
%
,
1/12/25
....
477
471
FW2416931.UP.FTS.B
,
10
.8
%
,
1/12/25
...
1,049
1,031
L2414847.UP.FTS.B
,
11
.02
%
,
1/12/25
....
1,075
1,057
L2414221.UP.FTS.B
,
11
.17
%
,
1/12/25
....
482
474
FW2417716.UP.FTS.B
,
18
.03
%
,
1/12/25
..
258
254
L2418715.UP.FTS.B
,
19
.25
%
,
1/12/25
....
534
526
L2417349.UP.FTS.B
,
20
.05
%
,
1/12/25
....
194
191
L2414032.UP.FTS.B
,
23
.21
%
,
1/12/25
....
276
271
L2352635.UP.FTS.B
,
23
.27
%
,
1/12/25
....
766
755
L2412538.UP.FTS.B
,
23
.48
%
,
1/12/25
....
654
559
FW2414041.UP.FTS.B
,
23
.78
%
,
1/12/25
..
448
441
FW2416686.UP.FTS.B
,
24
.84
%
,
1/12/25
..
384
334
FW2414437.UP.FTS.B
,
27
.76
%
,
1/12/25
..
351
346
L2410557.UP.FTS.B
,
26
.28
%
,
1/14/25
....
818
59
FW2408676.UP.FTS.B
,
24
.16
%
,
1/22/25
..
508
500
L2420369.UP.FTS.B
,
11
.76
%
,
1/27/25
....
1,025
1,010
L1711024.UP.FTS.B
,
12
.98
%
,
2/14/25
....
409
402
L1710277.UP.FTS.B
,
18
.02
%
,
2/14/25
....
3,624
867
L2631679.UP.FTS.B
,
6
.61
%
,
2/15/25
....
599
590
L2632890.UP.FTS.B
,
6
.77
%
,
2/15/25
....
1,202
1,185
L2634175.UP.FTS.B
,
6
.95
%
,
2/15/25
....
1,110
1,094
L2634533.UP.FTS.B
,
8
.5
%
,
2/15/25
.....
2,475
2,437
L2636760.UP.FTS.B
,
15
.98
%
,
2/15/25
....
1,880
1,850
FW2634284.UP.FTS.B
,
16
.22
%
,
2/15/25
..
1,355
1,333
L2634751.UP.FTS.B
,
16
.31
%
,
2/15/25
....
258
253
L2634161.UP.FTS.B
,
18
.39
%
,
2/15/25
....
567
558
L2632627.UP.FTS.B
,
20
.79
%
,
2/15/25
....
1,427
1,405
L2631763.UP.FTS.B
,
20
.93
%
,
2/15/25
....
1,247
1,228
FW2633708.UP.FTS.B
,
25
.99
%
,
2/15/25
..
981
966
L2639657.UP.FTS.B
,
5
.92
%
,
2/16/25
....
180
177
FW2638680.UP.FTS.B
,
7
.01
%
,
2/16/25
...
267
263
FW2644636.UP.FTS.B
,
10
.31
%
,
2/16/25
..
124
122
L2640736.UP.FTS.B
,
10
.49
%
,
2/16/25
....
190
187
FW2640049.UP.FTS.B
,
13
.66
%
,
2/16/25
..
1,413
1,389
L2639914.UP.FTS.B
,
14
.3
%
,
2/16/25
....
928
913
L2573704.UP.FTS.B
,
14
.5
%
,
2/16/25
....
531
523
FW2644294.UP.FTS.B
,
16
.92
%
,
2/16/25
..
446
439
FW2639338.UP.FTS.B
,
17
.66
%
,
2/16/25
..
1,367
1,346
L2641019.UP.FTS.B
,
18
.97
%
,
2/16/25
....
2,096
2,064
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2639930.UP.FTS.B
,
19
.1
%
,
2/16/25
....
$
310
$
305
FW2639706.UP.FTS.B
,
19
.94
%
,
2/16/25
..
904
890
FW2639697.UP.FTS.B
,
24
.32
%
,
2/16/25
..
324
290
FW2643827.UP.FTS.B
,
25
.41
%
,
2/16/25
..
785
773
L2627901.UP.FTS.B
,
28
.31
%
,
2/16/25
....
2,205
2,174
L2644671.UP.FTS.B
,
5
.08
%
,
2/17/25
....
1,176
1,159
L2604120.UP.FTS.B
,
17
.7
%
,
2/17/25
....
1,393
1,372
L1871398.UP.FTS.B
,
22
.03
%
,
3/18/25
....
439
433
FW1872890.UP.FTS.B
,
24
.47
%
,
3/18/25
..
114
113
L2077669.UP.FTS.B
,
19
.72
%
,
4/19/25
....
155
153
L2077765.UP.FTS.B
,
21
.13
%
,
4/19/25
....
187
184
L2078933.UP.FTS.B
,
22
.16
%
,
4/19/25
....
3,068
2,541
FW2200254.UP.FTS.B
,
19
.34
%
,
5/07/25
..
420
412
L2202275.UP.FTS.B
,
10
.28
%
,
5/08/25
....
4,914
355
FW2202524.UP.FTS.B
,
28
.64
%
,
5/08/25
..
548
538
L2405109.UP.FTS.B
,
11
.47
%
,
6/11/25
....
463
325
FW2410127.UP.FTS.B
,
20
.85
%
,
6/11/25
..
312
115
FW2411559.UP.FTS.B
,
21
.14
%
,
6/11/25
..
553
543
L2414544.UP.FTS.B
,
14
.43
%
,
6/12/25
....
688
671
L2402983.UP.FTS.B
,
8
.56
%
,
6/21/25
....
583
570
FW2009937.UP.FTS.B
,
26
.34
%
,
9/09/25
..
430
423
L2206982.UP.FTS.B
,
9
.5
%
,
10/08/25
....
294
199
FW2414692.UP.FTS.B
,
6
.84
%
,
11/12/25
..
498
488
FW2418164.UP.FTS.B
,
9
.41
%
,
11/12/25
..
627
614
FW2411155.UP.FTS.B
,
7
.59
%
,
11/26/25
..
999
979
L1711804.UP.FTS.B
,
9
.08
%
,
9/14/26
.....
4,374
4,253
L1709773.UP.FTS.B
,
9
.1
%
,
9/14/26
.....
875
851
L1709466.UP.FTS.B
,
9
.12
%
,
9/14/26
....
4,808
4,674
L1711063.UP.FTS.B
,
9
.57
%
,
9/14/26
.....
6,165
5,994
L1710250.UP.FTS.B
,
9
.72
%
,
9/14/26
....
3,530
3,439
L1709358.UP.FTS.B
,
10
.97
%
,
9/14/26
....
18,418
17,960
L1711112.UP.FTS.B
,
12
.03
%
,
9/14/26
....
9,105
8,874
FW1709227.UP.FTS.B
,
12
.04
%
,
9/14/26
..
603
349
L1711960.UP.FTS.B
,
12
.48
%
,
9/14/26
....
1,373
1,339
L1708544.UP.FTS.B
,
12
.57
%
,
9/14/26
....
1,819
1,774
L1709990.UP.FTS.B
,
12
.82
%
,
9/14/26
....
837
819
L1709442.UP.FTS.B
,
13
.19
%
,
9/14/26
....
23,098
22,527
L1711626.UP.FTS.B
,
13
.98
%
,
9/14/26
....
9,335
9,107
FW1711888.UP.FTS.B
,
15
.29
%
,
9/14/26
..
4,724
4,653
FW1710596.UP.FTS.B
,
15
.85
%
,
9/14/26
..
2,389
2,354
FW1711241.UP.FTS.B
,
16
.08
%
,
9/14/26
..
1,917
1,888
L1707201.UP.FTS.B
,
16
.24
%
,
9/14/26
....
7,203
7,096
L1711610.UP.FTS.B
,
17
.32
%
,
9/14/26
....
12,161
11,895
L1708807.UP.FTS.B
,
17
.72
%
,
9/14/26
....
4,889
4,818
L1710981.UP.FTS.B
,
17
.81
%
,
9/14/26
....
4,973
4,863
FW1709424.UP.FTS.B
,
18
.79
%
,
9/14/26
..
7,430
7,325
FW1709134.UP.FTS.B
,
18
.89
%
,
9/14/26
..
5,562
121
L1712201.UP.FTS.B
,
18
.94
%
,
9/14/26
....
1,145
1,121
L1711904.UP.FTS.B
,
19
.49
%
,
9/14/26
....
9,872
9,649
L1709643.UP.FTS.B
,
20
.04
%
,
9/14/26
....
2,010
1,968
L1708429.UP.FTS.B
,
20
.63
%
,
9/14/26
....
1,518
1,485
FW1711817.UP.FTS.B
,
20
.95
%
,
9/14/26
..
2,438
2,385
L1707499.UP.FTS.B
,
22
.03
%
,
9/14/26
....
5,113
5,003
L1710829.UP.FTS.B
,
22
.11
%
,
9/14/26
....
246
243
FW1708581.UP.FTS.B
,
23
.53
%
,
9/14/26
..
2,875
2,823
L1709924.UP.FTS.B
,
24
.74
%
,
9/14/26
....
810
794
L1710379.UP.FTS.B
,
24
.83
%
,
9/14/26
....
690
676
L1710592.UP.FTS.B
,
25
.03
%
,
9/14/26
....
691
677
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1706788.UP.FTS.B
,
25
.12
%
,
9/14/26
....
$
959
$
940
L1710759.UP.FTS.B
,
25
.29
%
,
9/14/26
....
587
575
L1712021.UP.FTS.B
,
25
.29
%
,
9/14/26
....
1,403
1,376
L1712014.UP.FTS.B
,
25
.46
%
,
9/14/26
....
909
890
L1710375.UP.FTS.B
,
25
.49
%
,
9/14/26
....
1,066
1,044
L1711582.UP.FTS.B
,
25
.87
%
,
9/14/26
....
14,433
14,154
L1709668.UP.FTS.B
,
25
.91
%
,
9/14/26
....
805
789
L1711668.UP.FTS.B
,
26
.18
%
,
9/14/26
....
2,532
2,482
FW1701558.UP.FTS.B
,
29
.38
%
,
9/14/26
..
6,655
6,532
FW1708159.UP.FTS.B
,
30
.6
%
,
9/14/26
...
953
935
FW1708283.UP.FTS.B
,
30
.95
%
,
9/14/26
..
2,265
2,225
FW1709045.UP.FTS.B
,
31
.04
%
,
9/14/26
..
1,700
1,670
FW1709237.UP.FTS.B
,
31
.24
%
,
9/14/26
..
2,835
2,785
FW1712567.UP.FTS.B
,
31
.44
%
,
9/14/26
..
1,647
1,618
FW1708897.UP.FTS.B
,
32
.27
%
,
9/14/26
..
1,439
1,413
L1709686.UP.FTS.B
,
14
.5
%
,
9/16/26
....
9,409
9,178
L1705354.UP.FTS.B
,
14
.33
%
,
9/28/26
....
13,396
962
L1873953.UP.FTS.B
,
6
.89
%
,
10/18/26
....
22,044
21,421
FW1872946.UP.FTS.B
,
7
.02
%
,
10/18/26
..
2,876
2,796
L1874550.UP.FTS.B
,
10
.94
%
,
10/18/26
...
3,726
3,631
L1873178.UP.FTS.B
,
11
.12
%
,
10/18/26
...
3,964
877
L1873001.UP.FTS.B
,
11
.14
%
,
10/18/26
...
3,794
842
L1872155.UP.FTS.B
,
11
.36
%
,
10/18/26
...
901
879
L1873842.UP.FTS.B
,
11
.7
%
,
10/18/26
....
8,190
7,984
L1873090.UP.FTS.B
,
11
.9
%
,
10/18/26
....
708
690
L1873798.UP.FTS.B
,
12
.44
%
,
10/18/26
...
1,901
1,853
L1874099.UP.FTS.B
,
12
.59
%
,
10/18/26
...
8,591
8,375
L1872876.UP.FTS.B
,
13
.07
%
,
10/18/26
...
1,197
1,168
L1874284.UP.FTS.B
,
13
.39
%
,
10/18/26
...
3,847
3,753
L1873434.UP.FTS.B
,
13
.54
%
,
10/18/26
...
1,590
114
FW1873975.UP.FTS.B
,
13
.55
%
,
10/18/26
.
3,132
3,055
L1873174.UP.FTS.B
,
13
.86
%
,
10/18/26
...
5,988
5,862
L1874369.UP.FTS.B
,
14
.32
%
,
10/18/26
...
3,898
3,839
FW1874328.UP.FTS.B
,
14
.8
%
,
10/18/26
..
4,896
4,821
L1860167.UP.FTS.B
,
14
.86
%
,
10/18/26
...
833
821
L1873835.UP.FTS.B
,
15
.93
%
,
10/18/26
...
4,723
4,656
L1873166.UP.FTS.B
,
16
.01
%
,
10/18/26
...
10,288
6,510
L1872550.UP.FTS.B
,
16
.04
%
,
10/18/26
...
2,828
124
L1872814.UP.FTS.B
,
16
.38
%
,
10/18/26
...
7,445
7,340
L1873320.UP.FTS.B
,
16
.64
%
,
10/18/26
...
1,001
986
L1873808.UP.FTS.B
,
16
.88
%
,
10/18/26
...
2,761
2,702
L1874262.UP.FTS.B
,
17
.04
%
,
10/18/26
...
3,240
2,376
L1873707.UP.FTS.B
,
17
.21
%
,
10/18/26
...
5,722
5,642
FW1869707.UP.FTS.B
,
17
.52
%
,
10/18/26
.
7,587
7,428
FW1873390.UP.FTS.B
,
17
.6
%
,
10/18/26
..
6,075
5,948
L1873345.UP.FTS.B
,
17
.63
%
,
10/18/26
...
2,906
2,846
FW1874335.UP.FTS.B
,
17
.64
%
,
10/18/26
.
20,099
19,634
L1874163.UP.FTS.B
,
17
.64
%
,
10/18/26
...
3,518
3,444
L1868602.UP.FTS.B
,
18
.18
%
,
10/18/26
...
1,723
1,687
FW1873109.UP.FTS.B
,
18
.49
%
,
10/18/26
.
4,860
4,760
L1872626.UP.FTS.B
,
19
.06
%
,
10/18/26
...
4,083
580
L1873648.UP.FTS.B
,
19
.32
%
,
10/18/26
...
2,564
186
L1873350.UP.FTS.B
,
19
.42
%
,
10/18/26
...
5,763
5,648
L1873155.UP.FTS.B
,
19
.56
%
,
10/18/26
...
820
693
L1873356.UP.FTS.B
,
19
.63
%
,
10/18/26
...
849
832
L1873176.UP.FTS.B
,
19
.77
%
,
10/18/26
...
7,792
7,632
L1872983.UP.FTS.B
,
19
.88
%
,
10/18/26
...
3,374
776
FW1873856.UP.FTS.B
,
20
.15
%
,
10/18/26
.
3,130
3,066
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1873825.UP.FTS.B
,
20
.43
%
,
10/18/26
...
$
26,160
$
25,632
L1873221.UP.FTS.B
,
20
.79
%
,
10/18/26
...
1,052
1,031
L1874536.UP.FTS.B
,
21
.47
%
,
10/18/26
...
2,879
2,841
L1873820.UP.FTS.B
,
21
.93
%
,
10/18/26
...
1,808
1,773
L1872738.UP.FTS.B
,
21
.97
%
,
10/18/26
...
799
783
L1873278.UP.FTS.B
,
21
.98
%
,
10/18/26
...
3,140
3,079
L1873489.UP.FTS.B
,
22
.12
%
,
10/18/26
...
8,854
1,307
L1873504.UP.FTS.B
,
22
.55
%
,
10/18/26
...
597
586
L1874352.UP.FTS.B
,
22
.6
%
,
10/18/26
....
17,527
17,191
L1874034.UP.FTS.B
,
22
.67
%
,
10/18/26
...
1,180
1,158
L1873496.UP.FTS.B
,
22
.72
%
,
10/18/26
...
9,982
1,480
L1873307.UP.FTS.B
,
23
.79
%
,
10/18/26
...
815
800
L1874063.UP.FTS.B
,
24
.01
%
,
10/18/26
...
3,811
3,740
L1873180.UP.FTS.B
,
24
.02
%
,
10/18/26
...
544
534
L1873408.UP.FTS.B
,
24
.34
%
,
10/18/26
...
1,639
1,609
L1870381.UP.FTS.B
,
24
.72
%
,
10/18/26
...
3,747
3,678
L1873373.UP.FTS.B
,
24
.83
%
,
10/18/26
...
2,751
2,701
L1868887.UP.FTS.B
,
24
.97
%
,
10/18/26
...
7,934
7,787
L1872784.UP.FTS.B
,
25
.04
%
,
10/18/26
...
3,579
3,515
L1873877.UP.FTS.B
,
25
.05
%
,
10/18/26
...
2,863
430
FW1874269.UP.FTS.B
,
25
.11
%
,
10/18/26
.
2,748
2,697
L1873304.UP.FTS.B
,
25
.15
%
,
10/18/26
...
864
848
FW1873516.UP.FTS.B
,
25
.23
%
,
10/18/26
.
9,389
194
FW1873077.UP.FTS.B
,
25
.29
%
,
10/18/26
.
1,655
1,625
L1873627.UP.FTS.B
,
25
.33
%
,
10/18/26
...
411
403
L1805232.UP.FTS.B
,
25
.36
%
,
10/18/26
...
3,037
2,983
L1872764.UP.FTS.B
,
25
.4
%
,
10/18/26
....
829
814
L1873079.UP.FTS.B
,
25
.43
%
,
10/18/26
...
898
65
L1874416.UP.FTS.B
,
25
.46
%
,
10/18/26
...
16,129
15,838
L1874151.UP.FTS.B
,
25
.48
%
,
10/18/26
...
608
597
L1874395.UP.FTS.B
,
25
.5
%
,
10/18/26
....
5,517
427
L1874041.UP.FTS.B
,
26
.01
%
,
10/18/26
...
4,053
3,980
L1870887.UP.FTS.B
,
26
.18
%
,
10/18/26
...
947
930
FW1874429.UP.FTS.B
,
27
.19
%
,
10/18/26
.
2,140
2,104
FW1873344.UP.FTS.B
,
27
.72
%
,
10/18/26
.
7,921
7,787
FW1873866.UP.FTS.B
,
28
.25
%
,
10/18/26
.
548
539
FW1872622.UP.FTS.B
,
28
.59
%
,
10/18/26
.
1,795
1,172
FW1874251.UP.FTS.B
,
29
.26
%
,
10/18/26
.
2,875
2,829
FW1874208.UP.FTS.B
,
29
.47
%
,
10/18/26
.
2,015
1,983
FW1873160.UP.FTS.B
,
30
.04
%
,
10/18/26
.
1,502
107
FW1873268.UP.FTS.B
,
30
.52
%
,
10/18/26
.
1,047
1,031
FW1872558.UP.FTS.B
,
30
.55
%
,
10/18/26
.
756
745
FW1872779.UP.FTS.B
,
30
.59
%
,
10/18/26
.
656
118
FW1873577.UP.FTS.B
,
30
.59
%
,
10/18/26
.
3,495
3,440
FW1873018.UP.FTS.B
,
31
%
,
10/18/26
...
751
54
FW1874435.UP.FTS.B
,
31
.05
%
,
10/18/26
.
1,085
714
FW1873234.UP.FTS.B
,
31
.11
%
,
10/18/26
.
2,562
2,522
FW1874112.UP.FTS.B
,
31
.18
%
,
10/18/26
.
2,869
2,825
FW1872975.UP.FTS.B
,
32
.03
%
,
10/18/26
.
1,830
1,765
FW1873980.UP.FTS.B
,
31
.12
%
,
10/28/26
.
1,532
1,510
L1874280.UP.FTS.B
,
15
.62
%
,
11/01/26
...
15,398
15,169
FW2008579.UP.FTS.B
,
5
.93
%
,
11/09/26
..
22,617
21,775
L2010047.UP.FTS.B
,
7
.23
%
,
11/09/26
....
4,600
4,469
L2004931.UP.FTS.B
,
8
.92
%
,
11/09/26
....
10,862
792
FW2005584.UP.FTS.B
,
8
.98
%
,
11/09/26
..
7,543
7,336
L2009940.UP.FTS.B
,
9
.06
%
,
11/09/26
....
16,040
15,592
L2009771.UP.FTS.B
,
9
.73
%
,
11/09/26
....
2,380
2,315
L1982018.UP.FTS.B
,
9
.85
%
,
11/09/26
....
2,383
2,317
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2008329.UP.FTS.B
,
10
.3
%
,
11/09/26
....
$
2,877
$
2,797
L2008701.UP.FTS.B
,
10
.48
%
,
11/09/26
...
3,243
3,157
L2009188.UP.FTS.B
,
10
.68
%
,
11/09/26
...
12,273
11,952
L2009665.UP.FTS.B
,
10
.88
%
,
11/09/26
...
4,104
3,994
L2006261.UP.FTS.B
,
10
.9
%
,
11/09/26
....
1,557
1,524
L2009417.UP.FTS.B
,
11
.04
%
,
11/09/26
...
2,378
2,315
L2006518.UP.FTS.B
,
11
.38
%
,
11/09/26
...
1,597
1,556
L1977043.UP.FTS.B
,
11
.43
%
,
11/09/26
...
2,625
2,555
FW2006974.UP.FTS.B
,
11
.44
%
,
11/09/26
.
6,078
5,916
L2008088.UP.FTS.B
,
12
.1
%
,
11/09/26
....
6,203
452
L2007707.UP.FTS.B
,
12
.19
%
,
11/09/26
...
7,224
7,035
L1991534.UP.FTS.B
,
12
.48
%
,
11/09/26
...
3,013
2,939
L2005066.UP.FTS.B
,
12
.51
%
,
11/09/26
...
7,436
7,239
L2007649.UP.FTS.B
,
12
.88
%
,
11/09/26
...
4,194
4,092
FW2009636.UP.FTS.B
,
13
.06
%
,
11/09/26
.
2,932
2,856
FW2004957.UP.FTS.B
,
13
.66
%
,
11/09/26
.
1,249
1,217
L2006397.UP.FTS.B
,
13
.66
%
,
11/09/26
...
4,998
4,869
L2008524.UP.FTS.B
,
14
.03
%
,
11/09/26
...
9,945
9,690
L2008113.UP.FTS.B
,
14
.06
%
,
11/09/26
...
10,798
10,521
L2009683.UP.FTS.B
,
14
.08
%
,
11/09/26
...
3,007
2,930
L2009234.UP.FTS.B
,
14
.43
%
,
11/09/26
...
7,320
7,136
L2008618.UP.FTS.B
,
14
.73
%
,
11/09/26
...
3,037
2,959
L2009287.UP.FTS.B
,
14
.91
%
,
11/09/26
...
2,942
2,867
L2008691.UP.FTS.B
,
15
.38
%
,
11/09/26
...
2,533
2,470
L2008772.UP.FTS.B
,
15
.55
%
,
11/09/26
...
5,111
5,027
L2007900.UP.FTS.B
,
15
.91
%
,
11/09/26
...
1,539
1,514
L2009243.UP.FTS.B
,
15
.94
%
,
11/09/26
...
5,135
5,051
FW2006940.UP.FTS.B
,
15
.96
%
,
11/09/26
.
690
679
L2006713.UP.FTS.B
,
16
.47
%
,
11/09/26
...
6,610
1,401
L2009219.UP.FTS.B
,
16
.5
%
,
11/09/26
....
12,254
12,055
FW2010280.UP.FTS.B
,
16
.52
%
,
11/09/26
.
8,272
8,139
FW2010216.UP.FTS.B
,
16
.55
%
,
11/09/26
.
4,651
4,536
L2008001.UP.FTS.B
,
16
.67
%
,
11/09/26
...
8,531
1,103
FW2009372.UP.FTS.B
,
16
.77
%
,
11/09/26
.
7,775
7,651
L2010173.UP.FTS.B
,
16
.8
%
,
11/09/26
....
4,150
4,083
L2008272.UP.FTS.B
,
17
.06
%
,
11/09/26
...
10,405
10,239
L2008918.UP.FTS.B
,
17
.09
%
,
11/09/26
...
3,851
3,789
FW2008938.UP.FTS.B
,
17
.12
%
,
11/09/26
.
3,928
3,865
L2006918.UP.FTS.B
,
18
.03
%
,
11/09/26
...
17,453
17,051
L2008937.UP.FTS.B
,
18
.22
%
,
11/09/26
...
3,857
280
L2008467.UP.FTS.B
,
18
.23
%
,
11/09/26
...
5,339
2,439
FW2005538.UP.FTS.B
,
18
.4
%
,
11/09/26
..
3,178
3,106
FW2005908.UP.FTS.B
,
18
.71
%
,
11/09/26
.
2,385
2,330
L2006524.UP.FTS.B
,
18
.79
%
,
11/09/26
...
2,540
2,483
FW2009511.UP.FTS.B
,
18
.82
%
,
11/09/26
.
3,179
3,106
L2004618.UP.FTS.B
,
18
.96
%
,
11/09/26
...
3,494
476
L2007966.UP.FTS.B
,
18
.98
%
,
11/09/26
...
1,063
1,039
L2007377.UP.FTS.B
,
19
.06
%
,
11/09/26
...
9,046
8,907
L2007099.UP.FTS.B
,
20
.26
%
,
11/09/26
...
17,856
17,436
L2008551.UP.FTS.B
,
20
.27
%
,
11/09/26
...
11,652
11,380
L2009017.UP.FTS.B
,
20
.52
%
,
11/09/26
...
3,904
1,699
FW2004995.UP.FTS.B
,
21
%
,
11/09/26
...
3,152
3,082
FW2006513.UP.FTS.B
,
21
.09
%
,
11/09/26
.
1,041
1,018
L2009584.UP.FTS.B
,
21
.3
%
,
11/09/26
....
6,182
6,040
L2006375.UP.FTS.B
,
21
.38
%
,
11/09/26
...
1,897
1,855
L2008251.UP.FTS.B
,
21
.4
%
,
11/09/26
....
2,733
2,673
FW2008069.UP.FTS.B
,
21
.82
%
,
11/09/26
.
5,986
5,853
L2005261.UP.FTS.B
,
22
.11
%
,
11/09/26
...
5,090
4,976
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2009886.UP.FTS.B
,
22
.16
%
,
11/09/26
.
$
2,201
$
2,153
L2009468.UP.FTS.B
,
22
.18
%
,
11/09/26
...
7,154
6,993
L2009034.UP.FTS.B
,
22
.22
%
,
11/09/26
...
3,318
3,244
L2008599.UP.FTS.B
,
22
.35
%
,
11/09/26
...
1,103
1,079
L2008480.UP.FTS.B
,
22
.94
%
,
11/09/26
...
8,323
8,140
L2009304.UP.FTS.B
,
23
.03
%
,
11/09/26
...
2,169
–
L2007056.UP.FTS.B
,
24
.37
%
,
11/09/26
...
1,371
1,342
FW2009608.UP.FTS.B
,
24
.41
%
,
11/09/26
.
11,829
11,576
L2008806.UP.FTS.B
,
24
.53
%
,
11/09/26
...
5,167
376
L2009932.UP.FTS.B
,
24
.83
%
,
11/09/26
...
411
30
L2009896.UP.FTS.B
,
24
.89
%
,
11/09/26
...
1,508
1,476
FW2006718.UP.FTS.B
,
24
.97
%
,
11/09/26
.
2,834
2,775
L2007001.UP.FTS.B
,
25
.04
%
,
11/09/26
...
851
833
L2009837.UP.FTS.B
,
25
.1
%
,
11/09/26
....
853
835
L2006519.UP.FTS.B
,
25
.11
%
,
11/09/26
...
1,278
616
L2008646.UP.FTS.B
,
25
.12
%
,
11/09/26
...
738
722
L2005357.UP.FTS.B
,
25
.2
%
,
11/09/26
....
2,840
2,780
L2006252.UP.FTS.B
,
25
.33
%
,
11/09/26
...
3,986
3,903
L2007046.UP.FTS.B
,
25
.34
%
,
11/09/26
...
1,024
1,002
FW2009941.UP.FTS.B
,
25
.35
%
,
11/09/26
.
4,704
4,605
L2009460.UP.FTS.B
,
25
.35
%
,
11/09/26
...
1,763
1,726
L2005437.UP.FTS.B
,
25
.37
%
,
11/09/26
...
537
526
L2007026.UP.FTS.B
,
25
.44
%
,
11/09/26
...
1,025
1,004
L1976857.UP.FTS.B
,
25
.45
%
,
11/09/26
...
4,555
4,460
L2008185.UP.FTS.B
,
25
.45
%
,
11/09/26
...
2,306
2,260
L2005075.UP.FTS.B
,
25
.48
%
,
11/09/26
...
1,143
632
L2009842.UP.FTS.B
,
25
.48
%
,
11/09/26
...
1,955
141
L2004971.UP.FTS.B
,
25
.6
%
,
11/09/26
....
5,625
5,508
L2007383.UP.FTS.B
,
25
.64
%
,
11/09/26
...
2,225
2,179
L2008285.UP.FTS.B
,
25
.92
%
,
11/09/26
...
3,203
3,137
FW2007576.UP.FTS.B
,
26
.1
%
,
11/09/26
..
4,011
3,929
L2009167.UP.FTS.B
,
26
.14
%
,
11/09/26
...
5,734
5,616
L2005548.UP.FTS.B
,
26
.19
%
,
11/09/26
...
4,326
311
FW1993820.UP.FTS.B
,
26
.38
%
,
11/09/26
.
3,448
3,378
FW2006658.UP.FTS.B
,
26
.38
%
,
11/09/26
.
3,448
3,377
FW2008080.UP.FTS.B
,
27
.3
%
,
11/09/26
..
870
853
FW2009450.UP.FTS.B
,
27
.39
%
,
11/09/26
.
4,881
4,783
FW2006870.UP.FTS.B
,
27
.89
%
,
11/09/26
.
3,760
3,686
FW2005768.UP.FTS.B
,
27
.98
%
,
11/09/26
.
877
861
FW2006392.UP.FTS.B
,
28
.34
%
,
11/09/26
.
808
793
FW2005859.UP.FTS.B
,
28
.42
%
,
11/09/26
.
7,732
7,585
FW2005194.UP.FTS.B
,
29
.14
%
,
11/09/26
.
3,607
3,540
FW2009687.UP.FTS.B
,
29
.61
%
,
11/09/26
.
3,366
3,302
FW2009414.UP.FTS.B
,
30
.01
%
,
11/09/26
.
7,260
7,124
FW2008923.UP.FTS.B
,
30
.84
%
,
11/09/26
.
2,037
146
FW2007936.UP.FTS.B
,
30
.89
%
,
11/09/26
.
2,461
2,416
FW1985263.UP.FTS.B
,
31
.02
%
,
11/09/26
.
954
937
FW2005025.UP.FTS.B
,
31
.15
%
,
11/09/26
.
4,466
4,387
FW2008432.UP.FTS.B
,
31
.3
%
,
11/09/26
..
2,658
2,611
FW2008400.UP.FTS.B
,
31
.31
%
,
11/09/26
.
2,084
1,049
FW2009323.UP.FTS.B
,
31
.47
%
,
11/09/26
.
3,633
3,569
FW2009592.UP.FTS.B
,
31
.5
%
,
11/09/26
..
1,487
1,459
FW2007089.UP.FTS.B
,
31
.52
%
,
11/09/26
.
5,099
1,203
FW2009221.UP.FTS.B
,
30
.79
%
,
11/12/26
.
8,134
7,990
L2005604.UP.FTS.B
,
7
.24
%
,
11/15/26
....
11,072
10,762
L2009697.UP.FTS.B
,
20
.69
%
,
11/15/26
...
2,723
2,663
L2009364.UP.FTS.B
,
25
.41
%
,
11/15/26
...
2,832
2,774
FW2006841.UP.FTS.B
,
29
.42
%
,
11/16/26
.
2,520
2,474
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2077362.UP.FTS.B
,
10
.03
%
,
11/19/26
...
$
9,555
$
9,295
L2077278.UP.FTS.B
,
10
.24
%
,
11/19/26
...
985
959
L2079683.UP.FTS.B
,
10
.46
%
,
11/19/26
...
2,130
2,076
L2078817.UP.FTS.B
,
10
.96
%
,
11/19/26
...
22,239
21,669
L2077229.UP.FTS.B
,
11
.22
%
,
11/19/26
...
9,697
9,450
L2079790.UP.FTS.B
,
11
.54
%
,
11/19/26
...
4,148
4,042
L2078831.UP.FTS.B
,
11
.67
%
,
11/19/26
...
914
892
L2075431.UP.FTS.B
,
11
.87
%
,
11/19/26
...
11,243
10,958
L2077619.UP.FTS.B
,
12
.17
%
,
11/19/26
...
502
489
L2077342.UP.FTS.B
,
12
.81
%
,
11/19/26
...
1,978
1,929
L2069545.UP.FTS.B
,
12
.88
%
,
11/19/26
...
2,970
2,896
FW2076618.UP.FTS.B
,
13
.72
%
,
11/19/26
.
11,504
11,221
L2077586.UP.FTS.B
,
13
.74
%
,
11/19/26
...
2,704
2,638
L2080759.UP.FTS.B
,
14
.39
%
,
11/19/26
...
7,439
7,258
FW2078825.UP.FTS.B
,
14
.72
%
,
11/19/26
.
10,629
10,371
L2077934.UP.FTS.B
,
15
.05
%
,
11/19/26
...
3,811
3,719
L2079762.UP.FTS.B
,
15
.07
%
,
11/19/26
...
2,402
2,368
L2080377.UP.FTS.B
,
15
.37
%
,
11/19/26
...
4,590
4,524
L2078013.UP.FTS.B
,
15
.44
%
,
11/19/26
...
6,149
6,009
L2080949.UP.FTS.B
,
16
.51
%
,
11/19/26
...
3,057
3,014
L2077345.UP.FTS.B
,
16
.52
%
,
11/19/26
...
1,086
1,063
L2078556.UP.FTS.B
,
16
.55
%
,
11/19/26
...
2,321
2,289
L2077136.UP.FTS.B
,
16
.73
%
,
11/19/26
...
5,181
5,110
FW2080998.UP.FTS.B
,
16
.87
%
,
11/19/26
.
483
476
FW2078513.UP.FTS.B
,
16
.88
%
,
11/19/26
.
9,344
9,216
L2079147.UP.FTS.B
,
16
.93
%
,
11/19/26
...
8,773
8,653
L2073789.UP.FTS.B
,
17
.39
%
,
11/19/26
...
1,568
1,545
L2078785.UP.FTS.B
,
17
.53
%
,
11/19/26
...
5,230
5,124
FW2077194.UP.FTS.B
,
17
.96
%
,
11/19/26
.
264
230
L2079526.UP.FTS.B
,
17
.98
%
,
11/19/26
...
1,997
1,951
L2078320.UP.FTS.B
,
18
.26
%
,
11/19/26
...
1,387
1,100
L2078541.UP.FTS.B
,
18
.53
%
,
11/19/26
...
1,851
1,814
L2078767.UP.FTS.B
,
18
.54
%
,
11/19/26
...
529
522
FW2080677.UP.FTS.B
,
18
.72
%
,
11/19/26
.
9,014
8,896
FW2078252.UP.FTS.B
,
19
.1
%
,
11/19/26
..
857
840
L2079089.UP.FTS.B
,
19
.11
%
,
11/19/26
...
3,198
3,155
L2077889.UP.FTS.B
,
19
.41
%
,
11/19/26
...
3,948
3,871
L2079136.UP.FTS.B
,
19
.7
%
,
11/19/26
....
8,841
8,668
L2077834.UP.FTS.B
,
19
.87
%
,
11/19/26
...
8,339
5,277
FW2076082.UP.FTS.B
,
20
.04
%
,
11/19/26
.
10,296
10,096
L2077864.UP.FTS.B
,
20
.33
%
,
11/19/26
...
11,870
11,640
L2077767.UP.FTS.B
,
20
.73
%
,
11/19/26
...
5,419
5,316
FW2079399.UP.FTS.B
,
20
.8
%
,
11/19/26
..
10,092
6,507
FW2080860.UP.FTS.B
,
21
.93
%
,
11/19/26
.
10,666
10,468
FW2076510.UP.FTS.B
,
22
.17
%
,
11/19/26
.
1,414
1,396
L2080597.UP.FTS.B
,
22
.59
%
,
11/19/26
...
1,216
1,194
L2078431.UP.FTS.B
,
23
.7
%
,
11/19/26
....
1,593
1,565
L2079001.UP.FTS.B
,
24
.08
%
,
11/19/26
...
7,542
7,413
FW2076263.UP.FTS.B
,
24
.18
%
,
11/19/26
.
1,743
1,722
L2051923.UP.FTS.B
,
24
.73
%
,
11/19/26
...
560
551
FW2078837.UP.FTS.B
,
25
.18
%
,
11/19/26
.
1,476
1,450
L2080819.UP.FTS.B
,
25
.23
%
,
11/19/26
...
996
644
L2080514.UP.FTS.B
,
25
.27
%
,
11/19/26
...
1,251
1,230
L2079636.UP.FTS.B
,
25
.5
%
,
11/19/26
....
1,187
1,167
L2080879.UP.FTS.B
,
25
.51
%
,
11/19/26
...
2,392
2,353
L2080301.UP.FTS.B
,
25
.61
%
,
11/19/26
...
2,261
2,223
L2076428.UP.FTS.B
,
25
.82
%
,
11/19/26
...
5,675
407
L2077747.UP.FTS.B
,
25
.84
%
,
11/19/26
...
3,630
3,570
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2076862.UP.FTS.B
,
25
.93
%
,
11/19/26
...
$
4,184
$
302
FW2080275.UP.FTS.B
,
26
.15
%
,
11/19/26
.
2,006
1,974
L2080156.UP.FTS.B
,
26
.56
%
,
11/19/26
...
1,728
1,700
FW2076617.UP.FTS.B
,
26
.67
%
,
11/19/26
.
16,829
16,558
FW2070515.UP.FTS.B
,
26
.89
%
,
11/19/26
.
2,599
2,558
L2075827.UP.FTS.B
,
27
%
,
11/19/26
.....
5,378
5,292
FW2076319.UP.FTS.B
,
27
.45
%
,
11/19/26
.
2,323
2,286
FW2079921.UP.FTS.B
,
29
.67
%
,
11/19/26
.
1,832
1,195
FW2078839.UP.FTS.B
,
30
.61
%
,
11/19/26
.
424
126
FW2076598.UP.FTS.B
,
31
.11
%
,
11/19/26
.
381
375
L2078364.UP.FTS.B
,
15
.16
%
,
11/20/26
...
3,054
3,009
L2008677.UP.FTS.B
,
10
.77
%
,
11/23/26
...
4,837
4,707
L2010117.UP.FTS.B
,
24
.96
%
,
11/23/26
...
2,288
2,241
FW2003971.UP.FTS.B
,
17
.71
%
,
11/24/26
.
15,007
9,386
FW2007433.UP.FTS.B
,
21
.02
%
,
11/24/26
.
4,102
4,009
FW2005949.UP.FTS.B
,
25
.57
%
,
11/24/26
.
4,776
714
L2079956.UP.FTS.B
,
14
.89
%
,
12/01/26
...
3,699
3,642
L2198358.UP.FTS.B
,
7
.09
%
,
12/07/26
....
1,271
1,246
L2196810.UP.FTS.B
,
7
.42
%
,
12/07/26
....
2,874
2,791
L2198501.UP.FTS.B
,
8
.94
%
,
12/07/26
....
1,952
1,897
L2195995.UP.FTS.B
,
9
.12
%
,
12/07/26
....
2,105
2,046
L2199695.UP.FTS.B
,
9
.66
%
,
12/07/26
....
2,956
2,873
L2199924.UP.FTS.B
,
9
.76
%
,
12/07/26
....
3,454
3,356
L2198890.UP.FTS.B
,
10
.21
%
,
12/07/26
...
281
276
FW2200013.UP.FTS.B
,
10
.26
%
,
12/07/26
.
6,951
6,754
L2198751.UP.FTS.B
,
10
.42
%
,
12/07/26
...
3,980
3,868
L2199240.UP.FTS.B
,
10
.7
%
,
12/07/26
....
4,093
3,981
L2196100.UP.FTS.B
,
10
.99
%
,
12/07/26
...
801
779
L2197856.UP.FTS.B
,
11
.23
%
,
12/07/26
...
2,713
2,637
L2196592.UP.FTS.B
,
11
.62
%
,
12/07/26
...
2,725
2,650
FW2199260.UP.FTS.B
,
12
.51
%
,
12/07/26
.
12,496
12,154
L2200204.UP.FTS.B
,
12
.79
%
,
12/07/26
...
6,662
6,480
L2200250.UP.FTS.B
,
13
.28
%
,
12/07/26
...
2,574
2,504
L2197658.UP.FTS.B
,
13
.72
%
,
12/07/26
...
2,587
2,518
FW2198593.UP.FTS.B
,
14
.12
%
,
12/07/26
.
3,120
3,036
L2197131.UP.FTS.B
,
14
.14
%
,
12/07/26
...
572
557
L2199997.UP.FTS.B
,
14
.15
%
,
12/07/26
...
1,924
1,872
L2196035.UP.FTS.B
,
14
.38
%
,
12/07/26
...
3,291
237
L2198350.UP.FTS.B
,
15
.19
%
,
12/07/26
...
493
480
L2199860.UP.FTS.B
,
16
.1
%
,
12/07/26
....
7,647
7,512
L2199879.UP.FTS.B
,
16
.31
%
,
12/07/26
...
7,831
7,629
L2198446.UP.FTS.B
,
16
.58
%
,
12/07/26
...
26,252
25,793
L2198880.UP.FTS.B
,
16
.74
%
,
12/07/26
...
1,926
1,892
FW2197380.UP.FTS.B
,
17
.12
%
,
12/07/26
.
1,614
1,585
L2198345.UP.FTS.B
,
17
.18
%
,
12/07/26
...
12,812
12,588
L2198376.UP.FTS.B
,
17
.42
%
,
12/07/26
...
11,946
11,657
L2192178.UP.FTS.B
,
17
.53
%
,
12/07/26
...
4,054
3,984
FW2196193.UP.FTS.B
,
17
.59
%
,
12/07/26
.
15,516
733
L2199819.UP.FTS.B
,
17
.72
%
,
12/07/26
...
10,670
1,360
L2200255.UP.FTS.B
,
17
.89
%
,
12/07/26
...
4,419
4,312
L2199726.UP.FTS.B
,
18
.1
%
,
12/07/26
....
3,263
3,207
L2196412.UP.FTS.B
,
18
.83
%
,
12/07/26
...
987
970
L2199248.UP.FTS.B
,
19
.04
%
,
12/07/26
...
8,267
8,124
L2199663.UP.FTS.B
,
19
.69
%
,
12/07/26
...
3,535
771
L2199129.UP.FTS.B
,
20
.12
%
,
12/07/26
...
1,223
1,202
L2199523.UP.FTS.B
,
20
.46
%
,
12/07/26
...
1,177
1,153
L2196447.UP.FTS.B
,
20
.62
%
,
12/07/26
...
3,742
1,645
L2197655.UP.FTS.B
,
20
.75
%
,
12/07/26
...
2,801
2,734
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2196680.UP.FTS.B
,
21
.47
%
,
12/07/26
...
$
3,487
$
3,406
L2197631.UP.FTS.B
,
21
.55
%
,
12/07/26
...
2,546
2,487
L2196775.UP.FTS.B
,
22
.04
%
,
12/07/26
...
567
554
L2199874.UP.FTS.B
,
22
.34
%
,
12/07/26
...
4,669
4,561
L2192706.UP.FTS.B
,
22
.47
%
,
12/07/26
...
5,691
5,557
L2197670.UP.FTS.B
,
22
.54
%
,
12/07/26
...
2,082
2,033
FW2196522.UP.FTS.B
,
23
.26
%
,
12/07/26
.
3,446
3,366
L2195799.UP.FTS.B
,
23
.37
%
,
12/07/26
...
5,212
378
FW2192438.UP.FTS.B
,
23
.66
%
,
12/07/26
.
6,920
6,761
FW2195703.UP.FTS.B
,
24
.25
%
,
12/07/26
.
1,079
503
FW2200190.UP.FTS.B
,
24
.4
%
,
12/07/26
..
1,654
120
L2200210.UP.FTS.B
,
24
.56
%
,
12/07/26
...
11,752
11,491
L2200145.UP.FTS.B
,
24
.91
%
,
12/07/26
...
333
326
L2196714.UP.FTS.B
,
25
.02
%
,
12/07/26
...
793
777
L2196219.UP.FTS.B
,
25
.27
%
,
12/07/26
...
5,204
5,088
L2198546.UP.FTS.B
,
25
.32
%
,
12/07/26
...
880
860
L2199586.UP.FTS.B
,
25
.33
%
,
12/07/26
...
392
383
L2198050.UP.FTS.B
,
25
.44
%
,
12/07/26
...
3,240
1,492
L2197183.UP.FTS.B
,
25
.46
%
,
12/07/26
...
999
977
L2197844.UP.FTS.B
,
25
.47
%
,
12/07/26
...
2,972
2,906
L2199814.UP.FTS.B
,
25
.68
%
,
12/07/26
...
3,530
3,452
FW2199793.UP.FTS.B
,
25
.9
%
,
12/07/26
..
4,717
4,614
FW2200076.UP.FTS.B
,
28
.24
%
,
12/07/26
.
30,153
29,521
FW2200069.UP.FTS.B
,
28
.54
%
,
12/07/26
.
2,420
2,370
FW2198176.UP.FTS.B
,
29
.22
%
,
12/07/26
.
2,215
2,170
FW2198672.UP.FTS.B
,
30
.42
%
,
12/07/26
.
3,723
3,651
FW2198825.UP.FTS.B
,
30
.6
%
,
12/07/26
..
2,383
–
FW2198098.UP.FTS.B
,
31
%
,
12/07/26
...
3,713
3,642
FW2199632.UP.FTS.B
,
32
.42
%
,
12/07/26
.
3,069
3,010
L2201511.UP.FTS.B
,
5
.03
%
,
12/08/26
....
4,201
4,073
L2201100.UP.FTS.B
,
5
.82
%
,
12/08/26
....
4,692
4,516
FW2201687.UP.FTS.B
,
5
.98
%
,
12/08/26
..
2,081
2,008
L2201658.UP.FTS.B
,
6
%
,
12/08/26
......
770
338
L2203382.UP.FTS.B
,
6
.5
%
,
12/08/26
....
4,733
4,555
L2206413.UP.FTS.B
,
7
.44
%
,
12/08/26
....
4,312
4,191
L2201126.UP.FTS.B
,
7
.87
%
,
12/08/26
....
9,791
9,526
L2200918.UP.FTS.B
,
8
.74
%
,
12/08/26
....
2,095
2,037
L2201288.UP.FTS.B
,
9
.13
%
,
12/08/26
....
1,615
1,571
FW2202215.UP.FTS.B
,
9
.76
%
,
12/08/26
..
20,283
19,738
L2202140.UP.FTS.B
,
10
.05
%
,
12/08/26
...
1,875
1,823
L2202043.UP.FTS.B
,
10
.08
%
,
12/08/26
...
9,904
9,630
L2205692.UP.FTS.B
,
10
.33
%
,
12/08/26
...
8,200
7,977
L2205258.UP.FTS.B
,
10
.97
%
,
12/08/26
...
1,792
1,744
L2202707.UP.FTS.B
,
11
.01
%
,
12/08/26
...
5,011
4,873
L2200873.UP.FTS.B
,
11
.09
%
,
12/08/26
...
4,513
4,389
L2205661.UP.FTS.B
,
11
.13
%
,
12/08/26
...
6,020
5,855
FW2202691.UP.FTS.B
,
11
.21
%
,
12/08/26
.
1,506
1,465
L2204932.UP.FTS.B
,
11
.21
%
,
12/08/26
...
9,369
681
L2201522.UP.FTS.B
,
11
.25
%
,
12/08/26
...
10,048
9,773
FW2201210.UP.FTS.B
,
12
.48
%
,
12/08/26
.
1,019
992
L2201683.UP.FTS.B
,
13
.05
%
,
12/08/26
...
1,790
129
L2203910.UP.FTS.B
,
13
.18
%
,
12/08/26
...
5,915
5,756
L2202867.UP.FTS.B
,
13
.27
%
,
12/08/26
...
2,314
1,068
L2206744.UP.FTS.B
,
13
.51
%
,
12/08/26
...
15,486
15,074
L2202534.UP.FTS.B
,
13
.68
%
,
12/08/26
...
7,759
7,553
L2200884.UP.FTS.B
,
13
.99
%
,
12/08/26
...
3,842
3,740
L2204734.UP.FTS.B
,
13
.99
%
,
12/08/26
...
1,907
1,857
L2189789.UP.FTS.B
,
14
.09
%
,
12/08/26
...
191
188
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2201701.UP.FTS.B
,
14
.19
%
,
12/08/26
...
$
3,642
$
3,547
L2200543.UP.FTS.B
,
14
.23
%
,
12/08/26
...
2,867
382
FW2206534.UP.FTS.B
,
14
.38
%
,
12/08/26
.
1,667
1,623
FW2201365.UP.FTS.B
,
14
.41
%
,
12/08/26
.
7,563
7,365
L2205970.UP.FTS.B
,
14
.78
%
,
12/08/26
...
1,404
1,368
L2203172.UP.FTS.B
,
14
.86
%
,
12/08/26
...
5,244
5,108
L2201429.UP.FTS.B
,
15
.27
%
,
12/08/26
...
6,270
6,107
L2203888.UP.FTS.B
,
15
.35
%
,
12/08/26
...
1,582
1,541
L2201650.UP.FTS.B
,
15
.45
%
,
12/08/26
...
2,444
175
L2205307.UP.FTS.B
,
15
.66
%
,
12/08/26
...
1,062
1,043
L2193881.UP.FTS.B
,
15
.75
%
,
12/08/26
...
2,331
2,290
L2205432.UP.FTS.B
,
15
.94
%
,
12/08/26
...
13,029
12,807
L2206448.UP.FTS.B
,
16
%
,
12/08/26
.....
5,579
5,435
L2195672.UP.FTS.B
,
16
.2
%
,
12/08/26
....
6,846
6,727
L2202979.UP.FTS.B
,
16
.63
%
,
12/08/26
...
1,052
1,025
L2203269.UP.FTS.B
,
16
.66
%
,
12/08/26
...
2,409
2,367
L2206760.UP.FTS.B
,
17
.01
%
,
12/08/26
...
24,619
24,197
L2200739.UP.FTS.B
,
17
.06
%
,
12/08/26
...
1,452
1,427
L2200406.UP.FTS.B
,
17
.28
%
,
12/08/26
...
2,372
2,331
L2204275.UP.FTS.B
,
17
.48
%
,
12/08/26
...
3,229
429
L2203876.UP.FTS.B
,
17
.53
%
,
12/08/26
...
11,911
11,707
L2202653.UP.FTS.B
,
17
.59
%
,
12/08/26
...
6,707
6,596
L2200437.UP.FTS.B
,
17
.72
%
,
12/08/26
...
1,354
1,322
L2206114.UP.FTS.B
,
17
.92
%
,
12/08/26
...
1,090
1,072
L2201870.UP.FTS.B
,
17
.98
%
,
12/08/26
...
1,630
1,592
FW2200514.UP.FTS.B
,
18
.68
%
,
12/08/26
.
5,638
2,525
L2202316.UP.FTS.B
,
18
.78
%
,
12/08/26
...
1,371
1,339
L2203614.UP.FTS.B
,
18
.9
%
,
12/08/26
....
9,030
1,214
FW2204149.UP.FTS.B
,
19
.13
%
,
12/08/26
.
2,760
2,696
FW2201703.UP.FTS.B
,
19
.15
%
,
12/08/26
.
1,909
1,865
L2171699.UP.FTS.B
,
19
.26
%
,
12/08/26
...
5,512
5,382
FW2201480.UP.FTS.B
,
19
.28
%
,
12/08/26
.
3,859
3,795
L2204805.UP.FTS.B
,
19
.42
%
,
12/08/26
...
5,913
5,778
L2201833.UP.FTS.B
,
19
.78
%
,
12/08/26
...
2,765
2,701
L2203346.UP.FTS.B
,
19
.86
%
,
12/08/26
...
3,549
3,491
L2203970.UP.FTS.B
,
19
.89
%
,
12/08/26
...
1,436
104
FW2185665.UP.FTS.B
,
20
.17
%
,
12/08/26
.
8,294
8,163
L2200446.UP.FTS.B
,
20
.19
%
,
12/08/26
...
611
597
L2200528.UP.FTS.B
,
20
.47
%
,
12/08/26
...
1,953
1,909
L2201790.UP.FTS.B
,
20
.6
%
,
12/08/26
....
1,565
1,530
FW2205623.UP.FTS.B
,
21
.01
%
,
12/08/26
.
6,720
935
L2203340.UP.FTS.B
,
21
.11
%
,
12/08/26
...
2,803
2,737
L2203266.UP.FTS.B
,
21
.37
%
,
12/08/26
...
2,889
2,824
L2203685.UP.FTS.B
,
21
.52
%
,
12/08/26
...
1,975
1,930
L2206634.UP.FTS.B
,
21
.58
%
,
12/08/26
...
1,242
1,213
FW2200309.UP.FTS.B
,
21
.86
%
,
12/08/26
.
2,026
1,980
L2204816.UP.FTS.B
,
22
.27
%
,
12/08/26
...
5,359
5,238
FW2202543.UP.FTS.B
,
22
.46
%
,
12/08/26
.
1,083
1,059
L2200624.UP.FTS.B
,
22
.5
%
,
12/08/26
....
1,140
1,115
L2201275.UP.FTS.B
,
22
.92
%
,
12/08/26
...
2,222
1,072
L2203293.UP.FTS.B
,
22
.93
%
,
12/08/26
...
973
952
FW2203667.UP.FTS.B
,
23
.01
%
,
12/08/26
.
8,596
8,409
L2203557.UP.FTS.B
,
23
.55
%
,
12/08/26
...
901
882
L2200929.UP.FTS.B
,
23
.61
%
,
12/08/26
...
1,428
1,397
L2205223.UP.FTS.B
,
23
.62
%
,
12/08/26
...
2,917
2,855
L2197277.UP.FTS.B
,
23
.68
%
,
12/08/26
...
3,754
3,674
L2205882.UP.FTS.B
,
23
.83
%
,
12/08/26
...
1,734
1,707
FW2200085.UP.FTS.B
,
23
.88
%
,
12/08/26
.
1,734
1,696
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2201603.UP.FTS.B
,
24
.38
%
,
12/08/26
...
$
3,363
$
243
L2204440.UP.FTS.B
,
24
.51
%
,
12/08/26
...
698
683
L2200752.UP.FTS.B
,
24
.63
%
,
12/08/26
...
583
570
FW2200668.UP.FTS.B
,
24
.66
%
,
12/08/26
.
7,283
7,126
L2201876.UP.FTS.B
,
24
.84
%
,
12/08/26
...
642
629
L2200418.UP.FTS.B
,
24
.91
%
,
12/08/26
...
4,397
4,302
L2201388.UP.FTS.B
,
24
.93
%
,
12/08/26
...
1,686
1,650
L2203217.UP.FTS.B
,
25
.16
%
,
12/08/26
...
670
312
L2202422.UP.FTS.B
,
25
.21
%
,
12/08/26
...
2,126
2,081
L2201763.UP.FTS.B
,
25
.22
%
,
12/08/26
...
4,051
3,991
L2203014.UP.FTS.B
,
25
.25
%
,
12/08/26
...
2,929
2,867
L2204236.UP.FTS.B
,
25
.3
%
,
12/08/26
....
3,009
2,946
L2201267.UP.FTS.B
,
25
.35
%
,
12/08/26
...
587
574
L2207019.UP.FTS.B
,
25
.36
%
,
12/08/26
...
869
851
L2206798.UP.FTS.B
,
25
.37
%
,
12/08/26
...
376
369
L2204385.UP.FTS.B
,
25
.38
%
,
12/08/26
...
705
690
L2204272.UP.FTS.B
,
25
.42
%
,
12/08/26
...
876
857
L2200539.UP.FTS.B
,
25
.48
%
,
12/08/26
...
3,181
3,116
L2202382.UP.FTS.B
,
25
.5
%
,
12/08/26
....
1,057
1,035
L2206619.UP.FTS.B
,
25
.63
%
,
12/08/26
...
4,411
4,319
L2201626.UP.FTS.B
,
25
.65
%
,
12/08/26
...
4,080
572
FW2202207.UP.FTS.B
,
25
.82
%
,
12/08/26
.
3,111
3,049
L2205529.UP.FTS.B
,
25
.96
%
,
12/08/26
...
4,130
4,044
L2200501.UP.FTS.B
,
26
.06
%
,
12/08/26
...
1,258
1,232
L2200760.UP.FTS.B
,
26
.49
%
,
12/08/26
...
6,712
3,153
FW2205293.UP.FTS.B
,
26
.73
%
,
12/08/26
.
1,097
1,076
FW2205802.UP.FTS.B
,
27
%
,
12/08/26
...
2,203
1,020
FW2200840.UP.FTS.B
,
27
.39
%
,
12/08/26
.
5,026
4,924
FW2206331.UP.FTS.B
,
28
.09
%
,
12/08/26
.
6,326
6,204
FW2200263.UP.FTS.B
,
28
.29
%
,
12/08/26
.
10,982
10,773
FW2202084.UP.FTS.B
,
28
.33
%
,
12/08/26
.
863
846
FW2206080.UP.FTS.B
,
28
.43
%
,
12/08/26
.
1,763
1,728
FW2202420.UP.FTS.B
,
28
.72
%
,
12/08/26
.
2,812
2,757
FW2203128.UP.FTS.B
,
28
.72
%
,
12/08/26
.
604
592
FW2200463.UP.FTS.B
,
28
.91
%
,
12/08/26
.
728
715
FW2201925.UP.FTS.B
,
29
.05
%
,
12/08/26
.
704
691
FW2201641.UP.FTS.B
,
29
.67
%
,
12/08/26
.
5,010
4,915
FW2206862.UP.FTS.B
,
29
.87
%
,
12/08/26
.
2,939
2,885
FW2204427.UP.FTS.B
,
30
.34
%
,
12/08/26
.
4,919
4,827
FW2202866.UP.FTS.B
,
30
.6
%
,
12/08/26
..
731
336
FW2203290.UP.FTS.B
,
31
.07
%
,
12/08/26
.
866
850
FW2206683.UP.FTS.B
,
31
.07
%
,
12/08/26
.
1,271
1,247
FW2205002.UP.FTS.B
,
31
.08
%
,
12/08/26
.
1,919
1,883
FW2200524.UP.FTS.B
,
31
.14
%
,
12/08/26
.
3,837
3,764
FW2199311.UP.FTS.B
,
31
.18
%
,
12/08/26
.
868
852
FW2203562.UP.FTS.B
,
32
.34
%
,
12/08/26
.
4,329
615
FW2199186.UP.FTS.B
,
25
.95
%
,
12/09/26
.
1,466
1,434
FW2201142.UP.FTS.B
,
31
.05
%
,
12/12/26
.
621
610
L2202911.UP.FTS.B
,
21
.13
%
,
12/14/26
...
3,626
3,544
L2196899.UP.FTS.B
,
24
.65
%
,
12/15/26
...
3,397
3,323
FW2199126.UP.FTS.B
,
31
.54
%
,
12/15/26
.
3,877
3,809
FW2198165.UP.FTS.B
,
14
.07
%
,
12/16/26
.
730
710
L2200110.UP.FTS.B
,
25
.93
%
,
12/16/26
...
4,452
4,362
L2203118.UP.FTS.B
,
8
.78
%
,
12/17/26
....
3,889
3,779
L2203117.UP.FTS.B
,
13
.79
%
,
12/17/26
...
4,469
4,351
L2201499.UP.FTS.B
,
21
.34
%
,
12/17/26
...
6,226
6,087
FW2205704.UP.FTS.B
,
28
.05
%
,
12/18/26
.
3,035
2,978
FW2197646.UP.FTS.B
,
16
.34
%
,
12/22/26
.
4,334
4,230
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2195329.UP.FTS.B
,
17
.11
%
,
12/22/26
...
$
3,080
$
407
L2194879.UP.FTS.B
,
17
.51
%
,
12/22/26
...
11,115
6,880
FW2198520.UP.FTS.B
,
20
.07
%
,
12/22/26
.
5,564
5,433
L2196637.UP.FTS.B
,
24
.42
%
,
12/22/26
...
8,745
8,556
L2195912.UP.FTS.B
,
25
.21
%
,
12/22/26
...
4,852
4,749
FW2195399.UP.FTS.B
,
29
.81
%
,
12/22/26
.
1,470
941
L2203381.UP.FTS.B
,
18
.04
%
,
12/23/26
...
5,749
5,653
FW2206855.UP.FTS.B
,
19
.38
%
,
12/23/26
.
2,779
2,711
L2411009.UP.FTS.B
,
5
.26
%
,
1/11/27
.....
16,886
16,229
FW2412321.UP.FTS.B
,
5
.36
%
,
1/11/27
...
28,319
2,055
L2402399.UP.FTS.B
,
6
.09
%
,
1/11/27
.....
13,213
12,703
FW2408524.UP.FTS.B
,
6
.18
%
,
1/11/27
...
5,273
5,071
L2413519.UP.FTS.B
,
6
.19
%
,
1/11/27
.....
12,242
11,773
FW2411884.UP.FTS.B
,
6
.2
%
,
1/11/27
....
12,207
11,737
L2411160.UP.FTS.B
,
7
.26
%
,
1/11/27
.....
7,421
7,139
FW2406810.UP.FTS.B
,
7
.3
%
,
1/11/27
....
2,984
2,876
L2408660.UP.FTS.B
,
7
.61
%
,
1/11/27
.....
3,429
3,331
L2412785.UP.FTS.B
,
7
.81
%
,
1/11/27
.....
996
968
L2412559.UP.FTS.B
,
7
.83
%
,
1/11/27
.....
2,250
2,192
L2408557.UP.FTS.B
,
7
.86
%
,
1/11/27
.....
2,494
2,424
L2413727.UP.FTS.B
,
8
.61
%
,
1/11/27
.....
2,163
2,102
FW2410081.UP.FTS.B
,
8
.78
%
,
1/11/27
...
9,076
8,819
L2407187.UP.FTS.B
,
8
.85
%
,
1/11/27
.....
2,514
2,443
FW2411415.UP.FTS.B
,
9
.04
%
,
1/11/27
...
3,413
3,319
FW2413111.UP.FTS.B
,
9
.07
%
,
1/11/27
...
4,022
3,909
FW2413046.UP.FTS.B
,
9
.47
%
,
1/11/27
...
3,889
283
L2410685.UP.FTS.B
,
9
.48
%
,
1/11/27
.....
5,182
674
FW2406985.UP.FTS.B
,
9
.83
%
,
1/11/27
...
1,531
1,489
L2404630.UP.FTS.B
,
10
.03
%
,
1/11/27
....
26,438
1,921
L2411458.UP.FTS.B
,
10
.12
%
,
1/11/27
....
1,127
1,096
L2408600.UP.FTS.B
,
10
.21
%
,
1/11/27
....
2,192
2,131
L2413945.UP.FTS.B
,
10
.53
%
,
1/11/27
....
11,324
11,007
L2413322.UP.FTS.B
,
10
.93
%
,
1/11/27
....
5,382
5,233
L2413229.UP.FTS.B
,
11
.26
%
,
1/11/27
....
9,394
9,133
L2411571.UP.FTS.B
,
11
.47
%
,
1/11/27
....
3,942
3,836
L2413044.UP.FTS.B
,
11
.78
%
,
1/11/27
....
4,222
4,105
FW2408471.UP.FTS.B
,
11
.94
%
,
1/11/27
..
3,005
2,924
L2405206.UP.FTS.B
,
12
.1
%
,
1/11/27
.....
12,660
12,311
L2370107.UP.FTS.B
,
12
.85
%
,
1/11/27
....
2,592
2,521
L2412100.UP.FTS.B
,
13
.07
%
,
1/11/27
....
3,458
3,364
L2411596.UP.FTS.B
,
13
.42
%
,
1/11/27
....
2,659
2,587
FW2412293.UP.FTS.B
,
13
.57
%
,
1/11/27
..
2,725
2,653
FW2412839.UP.FTS.B
,
13
.8
%
,
1/11/27
...
5,767
5,611
FW2407206.UP.FTS.B
,
13
.82
%
,
1/11/27
..
3,208
3,122
FW2410061.UP.FTS.B
,
13
.89
%
,
1/11/27
..
10,703
10,416
L2409821.UP.FTS.B
,
14
.42
%
,
1/11/27
....
2,907
2,830
L2410324.UP.FTS.B
,
14
.46
%
,
1/11/27
....
10,808
4,452
L2405215.UP.FTS.B
,
14
.48
%
,
1/11/27
....
16,107
1,157
L2408774.UP.FTS.B
,
14
.55
%
,
1/11/27
....
2,157
2,119
L2408843.UP.FTS.B
,
14
.84
%
,
1/11/27
....
1,563
1,523
L2408436.UP.FTS.B
,
15
.99
%
,
1/11/27
....
22,020
21,631
L2379748.UP.FTS.B
,
16
.06
%
,
1/11/27
....
2,454
1,061
L2413797.UP.FTS.B
,
16
.41
%
,
1/11/27
....
6,442
469
L2406986.UP.FTS.B
,
16
.62
%
,
1/11/27
....
2,758
2,711
L2412621.UP.FTS.B
,
16
.62
%
,
1/11/27
....
2,207
2,169
L2407022.UP.FTS.B
,
16
.96
%
,
1/11/27
....
2,768
2,722
FW2411635.UP.FTS.B
,
17
.05
%
,
1/11/27
..
2,826
2,761
L2411840.UP.FTS.B
,
17
.48
%
,
1/11/27
....
15,836
15,430
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2406982.UP.FTS.B
,
17
.53
%
,
1/11/27
....
$
5,072
$
4,955
L2412808.UP.FTS.B
,
17
.54
%
,
1/11/27
....
5,571
5,478
FW2411466.UP.FTS.B
,
17
.75
%
,
1/11/27
..
1,117
1,098
L2407285.UP.FTS.B
,
17
.96
%
,
1/11/27
....
2,850
1,266
FW2407640.UP.FTS.B
,
18
.05
%
,
1/11/27
..
6,161
6,004
L2410765.UP.FTS.B
,
18
.19
%
,
1/11/27
....
4,147
4,078
L2413233.UP.FTS.B
,
18
.45
%
,
1/11/27
....
1,448
625
L2412345.UP.FTS.B
,
18
.51
%
,
1/11/27
....
1,849
1,808
L2413035.UP.FTS.B
,
18
.66
%
,
1/11/27
....
1,670
754
FW2406958.UP.FTS.B
,
18
.83
%
,
1/11/27
..
1,319
1,298
L2407160.UP.FTS.B
,
18
.83
%
,
1/11/27
....
9,883
9,721
FW2406995.UP.FTS.B
,
18
.92
%
,
1/11/27
..
6,138
6,037
L2413429.UP.FTS.B
,
19
.09
%
,
1/11/27
....
262
258
L2412374.UP.FTS.B
,
19
.25
%
,
1/11/27
....
6,855
6,703
FW2410395.UP.FTS.B
,
20
.34
%
,
1/11/27
..
2,868
2,804
FW2412890.UP.FTS.B
,
20
.68
%
,
1/11/27
..
5,819
5,694
FW2410350.UP.FTS.B
,
20
.75
%
,
1/11/27
..
5,822
5,698
L2407644.UP.FTS.B
,
21
.08
%
,
1/11/27
....
2,312
2,261
L2410907.UP.FTS.B
,
21
.6
%
,
1/11/27
.....
2,042
1,999
FW2413140.UP.FTS.B
,
22
.12
%
,
1/11/27
..
3,396
248
L2413585.UP.FTS.B
,
22
.13
%
,
1/11/27
....
4,732
4,634
L2413345.UP.FTS.B
,
22
.45
%
,
1/11/27
....
3,566
3,493
FW2412276.UP.FTS.B
,
22
.84
%
,
1/11/27
..
2,428
554
L2410622.UP.FTS.B
,
23
.11
%
,
1/11/27
....
2,831
2,772
FW2412083.UP.FTS.B
,
23
.34
%
,
1/11/27
..
2,718
2,662
L2408703.UP.FTS.B
,
23
.63
%
,
1/11/27
....
3,417
3,347
L2409471.UP.FTS.B
,
23
.96
%
,
1/11/27
....
4,044
293
L2413379.UP.FTS.B
,
24
.03
%
,
1/11/27
....
11,905
11,662
FW2412786.UP.FTS.B
,
24
.26
%
,
1/11/27
..
5,070
4,967
FW2407461.UP.FTS.B
,
25
.01
%
,
1/11/27
..
3,004
2,944
L2407824.UP.FTS.B
,
25
.08
%
,
1/11/27
....
2,464
2,415
L2410276.UP.FTS.B
,
25
.16
%
,
1/11/27
....
639
46
L2412631.UP.FTS.B
,
25
.16
%
,
1/11/27
....
157
155
FW2412505.UP.FTS.B
,
25
.22
%
,
1/11/27
..
2,842
2,788
L2406959.UP.FTS.B
,
25
.22
%
,
1/11/27
....
6,509
467
L2413560.UP.FTS.B
,
25
.29
%
,
1/11/27
....
2,134
2,093
FW2411982.UP.FTS.B
,
25
.34
%
,
1/11/27
..
3,020
2,962
L2411780.UP.FTS.B
,
25
.37
%
,
1/11/27
....
1,622
1,591
L2409900.UP.FTS.B
,
25
.4
%
,
1/11/27
.....
606
594
L2411491.UP.FTS.B
,
25
.4
%
,
1/11/27
.....
1,277
1,251
L2411973.UP.FTS.B
,
25
.47
%
,
1/11/27
....
784
768
L2411979.UP.FTS.B
,
25
.48
%
,
1/11/27
....
614
602
L2412081.UP.FTS.B
,
25
.48
%
,
1/11/27
....
1,118
1,099
L2411173.UP.FTS.B
,
25
.49
%
,
1/11/27
....
858
842
L2413595.UP.FTS.B
,
25
.51
%
,
1/11/27
....
1,841
1,805
FW2412928.UP.FTS.B
,
25
.61
%
,
1/11/27
..
1,209
1,185
L2412410.UP.FTS.B
,
26
.21
%
,
1/11/27
....
4,840
1,111
FW2411046.UP.FTS.B
,
26
.47
%
,
1/11/27
..
5,466
5,362
L2409231.UP.FTS.B
,
26
.66
%
,
1/11/27
....
2,799
2,746
FW2408955.UP.FTS.B
,
27
.26
%
,
1/11/27
..
1,555
731
FW2412354.UP.FTS.B
,
27
.69
%
,
1/11/27
..
617
605
FW2406988.UP.FTS.B
,
27
.86
%
,
1/11/27
..
3,085
3,027
FW2410159.UP.FTS.B
,
27
.94
%
,
1/11/27
..
2,707
2,656
FW2411293.UP.FTS.B
,
29
.42
%
,
1/11/27
..
1,001
983
FW2407567.UP.FTS.B
,
29
.43
%
,
1/11/27
..
2,503
2,458
FW2407055.UP.FTS.B
,
29
.46
%
,
1/11/27
..
2,830
2,779
FW2408568.UP.FTS.B
,
29
.5
%
,
1/11/27
...
2,815
2,765
FW2403902.UP.FTS.B
,
29
.51
%
,
1/11/27
..
1,468
104
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2412942.UP.FTS.B
,
30
.18
%
,
1/11/27
..
$
2,447
$
2,406
FW2413390.UP.FTS.B
,
30
.33
%
,
1/11/27
..
2,724
2,676
FW2407748.UP.FTS.B
,
30
.43
%
,
1/11/27
..
1,515
1,488
FW2413147.UP.FTS.B
,
30
.55
%
,
1/11/27
..
2,830
661
FW2412502.UP.FTS.B
,
30
.76
%
,
1/11/27
..
9,487
9,322
FW2410401.UP.FTS.B
,
30
.79
%
,
1/11/27
..
840
826
FW2411299.UP.FTS.B
,
30
.92
%
,
1/11/27
..
1,082
1,064
FW2392367.UP.FTS.B
,
30
.94
%
,
1/11/27
..
1,414
1,389
FW2411010.UP.FTS.B
,
31
.02
%
,
1/11/27
..
2,855
2,806
FW2409966.UP.FTS.B
,
31
.03
%
,
1/11/27
..
2,092
2,056
FW2407947.UP.FTS.B
,
31
.05
%
,
1/11/27
..
2,283
2,243
FW2411701.UP.FTS.B
,
31
.06
%
,
1/11/27
..
870
855
FW2411738.UP.FTS.B
,
31
.08
%
,
1/11/27
..
1,124
1,105
FW2413942.UP.FTS.B
,
31
.15
%
,
1/11/27
..
284
279
FW2410271.UP.FTS.B
,
31
.19
%
,
1/11/27
..
1,218
1,198
FW2411062.UP.FTS.B
,
32
.46
%
,
1/11/27
..
4,493
4,418
FW2410751.UP.FTS.B
,
34
.47
%
,
1/11/27
..
3,197
3,059
L2414458.UP.FTS.B
,
5
.96
%
,
1/12/27
....
14,601
14,040
L2414801.UP.FTS.B
,
6
.11
%
,
1/12/27
.....
5,363
5,158
L2419361.UP.FTS.B
,
6
.41
%
,
1/12/27
....
734
706
L2402757.UP.FTS.B
,
6
.51
%
,
1/12/27
....
3,431
3,300
L2416784.UP.FTS.B
,
6
.53
%
,
1/12/27
....
981
943
L2418799.UP.FTS.B
,
6
.56
%
,
1/12/27
....
5,910
5,686
L2417049.UP.FTS.B
,
6
.6
%
,
1/12/27
.....
2,280
2,215
FW2414856.UP.FTS.B
,
6
.64
%
,
1/12/27
...
491
472
L2415375.UP.FTS.B
,
6
.85
%
,
1/12/27
....
3,553
258
L2416695.UP.FTS.B
,
6
.86
%
,
1/12/27
....
2,216
2,132
L2414595.UP.FTS.B
,
7
.05
%
,
1/12/27
....
3,701
3,596
L2419333.UP.FTS.B
,
7
.27
%
,
1/12/27
....
7,645
556
FW2415988.UP.FTS.B
,
7
.29
%
,
1/12/27
...
7,867
7,674
L2410292.UP.FTS.B
,
7
.3
%
,
1/12/27
.....
2,078
2,019
L2417990.UP.FTS.B
,
7
.34
%
,
1/12/27
....
24,762
24,059
L2417199.UP.FTS.B
,
7
.43
%
,
1/12/27
....
21,889
21,285
FW2419541.UP.FTS.B
,
7
.5
%
,
1/12/27
....
7,443
7,232
L2414153.UP.FTS.B
,
7
.51
%
,
1/12/27
....
1,241
1,194
L2417691.UP.FTS.B
,
7
.69
%
,
1/12/27
....
11,274
10,852
L2414031.UP.FTS.B
,
7
.78
%
,
1/12/27
....
8,768
1,085
L2417969.UP.FTS.B
,
8
.13
%
,
1/12/27
....
3,701
3,597
FW2416734.UP.FTS.B
,
8
.22
%
,
1/12/27
...
1,394
1,367
L2416137.UP.FTS.B
,
8
.26
%
,
1/12/27
....
5,209
5,063
FW2415662.UP.FTS.B
,
8
.6
%
,
1/12/27
....
3,964
292
L2416545.UP.FTS.B
,
9
.07
%
,
1/12/27
....
6,214
6,063
L2418009.UP.FTS.B
,
9
.08
%
,
1/12/27
....
6,071
5,902
L2414926.UP.FTS.B
,
9
.43
%
,
1/12/27
....
15,856
15,424
L2413887.UP.FTS.B
,
9
.49
%
,
1/12/27
....
3,057
2,971
FW2415990.UP.FTS.B
,
9
.9
%
,
1/12/27
....
15,358
14,931
L2414275.UP.FTS.B
,
9
.91
%
,
1/12/27
....
20,437
19,876
L2417012.UP.FTS.B
,
10
.17
%
,
1/12/27
....
1,025
997
L2415942.UP.FTS.B
,
10
.21
%
,
1/12/27
....
7,693
7,482
FW2417548.UP.FTS.B
,
10
.24
%
,
1/12/27
..
7,695
7,484
FW2417403.UP.FTS.B
,
10
.31
%
,
1/12/27
..
3,596
3,497
L2415901.UP.FTS.B
,
10
.41
%
,
1/12/27
....
8,226
8,000
L2414718.UP.FTS.B
,
10
.85
%
,
1/12/27
....
2,067
2,010
L2418788.UP.FTS.B
,
10
.88
%
,
1/12/27
....
2,531
2,479
FW2419104.UP.FTS.B
,
11
.58
%
,
1/12/27
..
4,170
4,057
L2415315.UP.FTS.B
,
11
.71
%
,
1/12/27
....
7,687
7,481
L2414779.UP.FTS.B
,
11
.77
%
,
1/12/27
....
2,090
2,033
L2415035.UP.FTS.B
,
12
.36
%
,
1/12/27
....
4,835
4,720
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2419353.UP.FTS.B
,
12
.95
%
,
1/12/27
....
$
17,263
$
16,805
L2418973.UP.FTS.B
,
13
.17
%
,
1/12/27
....
11,148
10,854
L2419419.UP.FTS.B
,
13
.25
%
,
1/12/27
....
3,720
3,622
FW2417958.UP.FTS.B
,
14
.2
%
,
1/12/27
...
5,175
1,097
L2414553.UP.FTS.B
,
14
.38
%
,
1/12/27
....
10,909
10,626
L2418826.UP.FTS.B
,
14
.49
%
,
1/12/27
....
1,657
1,627
L2419563.UP.FTS.B
,
14
.64
%
,
1/12/27
....
15,446
15,056
L2419336.UP.FTS.B
,
14
.72
%
,
1/12/27
....
11,887
11,579
FW2417528.UP.FTS.B
,
14
.86
%
,
1/12/27
..
2,726
2,656
FW2414824.UP.FTS.B
,
15
.13
%
,
1/12/27
..
4,454
4,386
L2418818.UP.FTS.B
,
15
.34
%
,
1/12/27
....
3,760
3,664
L2418960.UP.FTS.B
,
15
.54
%
,
1/12/27
....
10,903
10,723
L2416354.UP.FTS.B
,
15
.71
%
,
1/12/27
....
2,615
2,550
FW2418121.UP.FTS.B
,
15
.9
%
,
1/12/27
...
23,337
4,968
L2414253.UP.FTS.B
,
16
.15
%
,
1/12/27
....
4,391
4,320
L2414473.UP.FTS.B
,
16
.4
%
,
1/12/27
....
550
541
L2415142.UP.FTS.B
,
16
.59
%
,
1/12/27
....
1,218
38
L2420474.UP.FTS.B
,
16
.75
%
,
1/12/27
....
8,288
8,080
L2417581.UP.FTS.B
,
17
.27
%
,
1/12/27
....
2,444
2,405
FW2414008.UP.FTS.B
,
17
.55
%
,
1/12/27
..
1,804
1,759
FW2394068.UP.FTS.B
,
18
.18
%
,
1/12/27
..
4,486
4,389
FW2415024.UP.FTS.B
,
19
.94
%
,
1/12/27
..
4,971
4,866
L2418100.UP.FTS.B
,
20
.74
%
,
1/12/27
....
10,427
10,208
L2416916.UP.FTS.B
,
21
.22
%
,
1/12/27
....
2,880
2,821
L2389418.UP.FTS.B
,
22
.12
%
,
1/12/27
....
3,654
3,583
L2415799.UP.FTS.B
,
22
.22
%
,
1/12/27
....
2,643
2,591
FW2408502.UP.FTS.B
,
22
.28
%
,
1/12/27
..
3,776
3,703
L2416737.UP.FTS.B
,
23
.4
%
,
1/12/27
....
1,597
1,566
FW2416362.UP.FTS.B
,
23
.42
%
,
1/12/27
..
2,959
2,902
L2409743.UP.FTS.B
,
23
.49
%
,
1/12/27
....
6,766
2,783
FW2414282.UP.FTS.B
,
23
.79
%
,
1/12/27
..
1,187
1,164
L2415306.UP.FTS.B
,
24
.21
%
,
1/12/27
....
6,437
6,315
L2418700.UP.FTS.B
,
25
.3
%
,
1/12/27
....
604
593
L2414994.UP.FTS.B
,
25
.32
%
,
1/12/27
....
1,133
1,112
L2411740.UP.FTS.B
,
25
.36
%
,
1/12/27
....
964
946
L2418717.UP.FTS.B
,
25
.38
%
,
1/12/27
....
2,022
1,985
L2414777.UP.FTS.B
,
25
.43
%
,
1/12/27
....
829
813
L2417114.UP.FTS.B
,
25
.49
%
,
1/12/27
....
1,146
1,125
L2418684.UP.FTS.B
,
25
.49
%
,
1/12/27
....
1,747
789
FW2418617.UP.FTS.B
,
25
.69
%
,
1/12/27
..
7,657
7,516
FW2418174.UP.FTS.B
,
25
.89
%
,
1/12/27
..
5,972
5,863
L2413654.UP.FTS.B
,
25
.91
%
,
1/12/27
....
3,457
3,391
L2414249.UP.FTS.B
,
26
.35
%
,
1/12/27
....
2,433
2,390
FW2419574.UP.FTS.B
,
26
.43
%
,
1/12/27
..
11,557
11,349
FW2415999.UP.FTS.B
,
26
.93
%
,
1/12/27
..
5,626
5,527
FW2411493.UP.FTS.B
,
28
.18
%
,
1/12/27
..
8,329
8,186
FW2417708.UP.FTS.B
,
28
.27
%
,
1/12/27
..
6,190
6,086
FW2418008.UP.FTS.B
,
28
.88
%
,
1/12/27
..
1,058
1,040
FW2418306.UP.FTS.B
,
29
.61
%
,
1/12/27
..
4,387
4,316
FW2415348.UP.FTS.B
,
30
.45
%
,
1/12/27
..
12,772
12,570
FW2419466.UP.FTS.B
,
30
.59
%
,
1/12/27
..
3,410
3,356
FW2417562.UP.FTS.B
,
30
.84
%
,
1/12/27
..
633
623
FW2418392.UP.FTS.B
,
30
.87
%
,
1/12/27
..
1,364
1,342
FW2416140.UP.FTS.B
,
30
.99
%
,
1/12/27
..
1,395
1,373
FW2417415.UP.FTS.B
,
31
.03
%
,
1/12/27
..
1,226
176
FW2417950.UP.FTS.B
,
31
.11
%
,
1/12/27
..
114
8
FW2414984.UP.FTS.B
,
31
.12
%
,
1/12/27
..
2,223
2,189
FW2416377.UP.FTS.B
,
31
.22
%
,
1/12/27
..
3,558
254
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2419527.UP.FTS.B
,
33
.12
%
,
1/12/27
..
$
840
$
827
L2419307.UP.FTS.B
,
7
.34
%
,
1/15/27
....
20,173
19,418
L2410860.UP.FTS.B
,
23
.88
%
,
1/15/27
....
3,790
3,715
L2418737.UP.FTS.B
,
5
.93
%
,
1/16/27
....
1,948
1,873
L2410494.UP.FTS.B
,
17
.56
%
,
1/16/27
....
11,460
7,031
FW2415097.UP.FTS.B
,
23
.87
%
,
1/16/27
..
896
880
L2408655.UP.FTS.B
,
5
.7
%
,
1/26/27
.....
10,262
9,869
L2412142.UP.FTS.B
,
8
.74
%
,
1/26/27
....
8,545
8,309
L2409264.UP.FTS.B
,
16
.99
%
,
1/26/27
....
6,556
477
L2417088.UP.FTS.B
,
15
.78
%
,
1/27/27
....
4,340
4,265
L1711260.UP.FTS.B
,
11
.26
%
,
2/14/27
....
1,081
1,051
FW1709115.UP.FTS.B
,
20
.14
%
,
2/14/27
..
3,693
3,621
L1709217.UP.FTS.B
,
25
.78
%
,
2/14/27
....
17,150
16,892
FW1711280.UP.FTS.B
,
28
.58
%
,
2/14/27
..
16,512
–
FW1710725.UP.FTS.B
,
30
.72
%
,
2/14/27
..
1,734
1,702
L2632551.UP.FTS.B
,
5
.37
%
,
2/15/27
....
5,999
5,762
L2632779.UP.FTS.B
,
5
.63
%
,
2/15/27
....
3,510
3,371
L2633588.UP.FTS.B
,
6
.56
%
,
2/15/27
....
16,735
16,083
L2631314.UP.FTS.B
,
6
.7
%
,
2/15/27
.....
10,668
10,253
L2630774.UP.FTS.B
,
8
.69
%
,
2/15/27
....
2,081
2,002
L2635638.UP.FTS.B
,
9
.41
%
,
2/15/27
....
4,633
4,514
L2631278.UP.FTS.B
,
9
.42
%
,
2/15/27
....
2,623
2,550
FW2633029.UP.FTS.B
,
9
.57
%
,
2/15/27
...
788
766
FW2633295.UP.FTS.B
,
9
.71
%
,
2/15/27
...
10,751
1,332
FW2635362.UP.FTS.B
,
9
.75
%
,
2/15/27
...
6,720
1,348
L2633022.UP.FTS.B
,
9
.86
%
,
2/15/27
....
7,898
7,679
FW2635247.UP.FTS.B
,
10
.37
%
,
2/15/27
..
4,527
4,400
L2632143.UP.FTS.B
,
10
.83
%
,
2/15/27
....
2,794
2,728
L2632232.UP.FTS.B
,
11
.83
%
,
2/15/27
....
3,787
3,699
L2633836.UP.FTS.B
,
12
%
,
2/15/27
......
5,988
3,536
L2630147.UP.FTS.B
,
12
.15
%
,
2/15/27
....
21,649
21,057
L2635861.UP.FTS.B
,
12
.41
%
,
2/15/27
....
4,613
4,488
L2637042.UP.FTS.B
,
13
.14
%
,
2/15/27
....
4,378
4,260
L2631332.UP.FTS.B
,
13
.22
%
,
2/15/27
....
2,738
2,665
FW2633237.UP.FTS.B
,
13
.24
%
,
2/15/27
..
2,191
2,132
L2631964.UP.FTS.B
,
14
%
,
2/15/27
......
4,025
3,919
L2632724.UP.FTS.B
,
14
.48
%
,
2/15/27
....
2,918
2,841
L2637603.UP.FTS.B
,
14
.83
%
,
2/15/27
....
3,558
3,465
FW2631558.UP.FTS.B
,
15
.18
%
,
2/15/27
..
8,390
8,170
L2635221.UP.FTS.B
,
15
.45
%
,
2/15/27
....
4,152
4,043
FW2633986.UP.FTS.B
,
15
.46
%
,
2/15/27
..
14,551
8,592
FW2631951.UP.FTS.B
,
15
.91
%
,
2/15/27
..
5,096
3,088
FW2634727.UP.FTS.B
,
16
.18
%
,
2/15/27
..
3,732
3,670
L2635424.UP.FTS.B
,
16
.37
%
,
2/15/27
....
22,659
22,285
L2630011.UP.FTS.B
,
16
.96
%
,
2/15/27
....
2,851
2,777
FW2635945.UP.FTS.B
,
17
.32
%
,
2/15/27
..
3,146
3,078
FW2635531.UP.FTS.B
,
18
.53
%
,
2/15/27
..
6,834
6,725
FW2632933.UP.FTS.B
,
18
.59
%
,
2/15/27
..
5,796
5,704
L2634353.UP.FTS.B
,
19
.06
%
,
2/15/27
....
5,692
5,573
L2635013.UP.FTS.B
,
20
.25
%
,
2/15/27
....
3,362
3,294
L2633648.UP.FTS.B
,
20
.29
%
,
2/15/27
....
5,966
5,874
L2632212.UP.FTS.B
,
21
.09
%
,
2/15/27
....
2,356
2,308
L2637476.UP.FTS.B
,
21
.48
%
,
2/15/27
....
6,923
1,493
FW2631142.UP.FTS.B
,
21
.84
%
,
2/15/27
..
1,880
1,844
FW2634641.UP.FTS.B
,
22
.06
%
,
2/15/27
..
1,658
1,633
L2636740.UP.FTS.B
,
22
.15
%
,
2/15/27
....
600
589
L2633500.UP.FTS.B
,
22
.28
%
,
2/15/27
....
3,035
2,979
L2631781.UP.FTS.B
,
23
.47
%
,
2/15/27
....
1,697
121
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2633249.UP.FTS.B
,
23
.49
%
,
2/15/27
..
$
3,319
$
3,258
L2629665.UP.FTS.B
,
24
.47
%
,
2/15/27
....
4,397
2,778
FW2634252.UP.FTS.B
,
24
.49
%
,
2/15/27
..
3,932
3,862
L2634268.UP.FTS.B
,
25
.05
%
,
2/15/27
....
1,452
1,427
FW2635941.UP.FTS.B
,
25
.09
%
,
2/15/27
..
2,887
2,838
L2634539.UP.FTS.B
,
25
.3
%
,
2/15/27
....
1,174
1,154
L2632154.UP.FTS.B
,
25
.31
%
,
2/15/27
....
14,525
14,272
L2636370.UP.FTS.B
,
25
.4
%
,
2/15/27
....
1,855
1,823
L2631893.UP.FTS.B
,
25
.41
%
,
2/15/27
....
2,201
2,163
L2634591.UP.FTS.B
,
25
.45
%
,
2/15/27
....
681
669
FW2631141.UP.FTS.B
,
25
.72
%
,
2/15/27
..
8,138
7,999
L2634677.UP.FTS.B
,
25
.78
%
,
2/15/27
....
2,483
2,440
L2636195.UP.FTS.B
,
25
.92
%
,
2/15/27
....
9,321
9,161
L2635199.UP.FTS.B
,
26
.23
%
,
2/15/27
....
3,925
3,859
FW2635628.UP.FTS.B
,
26
.36
%
,
2/15/27
..
1,699
397
FW2634760.UP.FTS.B
,
26
.38
%
,
2/15/27
..
3,681
3,618
L2635219.UP.FTS.B
,
26
.59
%
,
2/15/27
....
2,626
2,582
FW2637086.UP.FTS.B
,
26
.68
%
,
2/15/27
..
2,065
2,030
FW2632183.UP.FTS.B
,
27
.72
%
,
2/15/27
..
4,420
4,348
FW2634627.UP.FTS.B
,
28
.11
%
,
2/15/27
..
3,800
3,739
FW2634087.UP.FTS.B
,
29
.37
%
,
2/15/27
..
2,493
2,455
FW2632506.UP.FTS.B
,
29
.8
%
,
2/15/27
...
2,996
2,950
FW2631008.UP.FTS.B
,
30
.31
%
,
2/15/27
..
115
114
FW2636372.UP.FTS.B
,
30
.35
%
,
2/15/27
..
3,873
3,814
FW2632070.UP.FTS.B
,
30
.58
%
,
2/15/27
..
2,065
2,034
FW2631494.UP.FTS.B
,
30
.85
%
,
2/15/27
..
2,989
1,897
FW2629864.UP.FTS.B
,
30
.9
%
,
2/15/27
...
1,543
981
FW2633675.UP.FTS.B
,
30
.91
%
,
2/15/27
..
796
56
FW2631968.UP.FTS.B
,
30
.98
%
,
2/15/27
..
4,031
3,970
FW2633314.UP.FTS.B
,
31
.08
%
,
2/15/27
..
597
588
FW2633604.UP.FTS.B
,
31
.13
%
,
2/15/27
..
1,691
1,666
FW2637089.UP.FTS.B
,
31
.23
%
,
2/15/27
..
5,460
5,380
L2640422.UP.FTS.B
,
7
.19
%
,
2/16/27
....
3,048
2,962
L2644170.UP.FTS.B
,
8
.74
%
,
2/16/27
....
14,313
13,916
L2644467.UP.FTS.B
,
8
.99
%
,
2/16/27
....
701
690
L2641249.UP.FTS.B
,
9
.09
%
,
2/16/27
....
7,683
7,471
FW2640044.UP.FTS.B
,
9
.77
%
,
2/16/27
...
3,045
2,963
FW2639996.UP.FTS.B
,
9
.85
%
,
2/16/27
...
3,143
3,067
L2628258.UP.FTS.B
,
10
.4
%
,
2/16/27
....
8,645
8,408
L2639939.UP.FTS.B
,
10
.73
%
,
2/16/27
....
7,696
7,486
L2642462.UP.FTS.B
,
10
.86
%
,
2/16/27
....
3,967
813
L2640107.UP.FTS.B
,
11
.57
%
,
2/16/27
....
5,754
5,599
L2642580.UP.FTS.B
,
11
.66
%
,
2/16/27
....
1,884
1,833
FW2644262.UP.FTS.B
,
11
.83
%
,
2/16/27
..
5,394
5,250
L2642829.UP.FTS.B
,
11
.96
%
,
2/16/27
....
11,558
11,248
L2643133.UP.FTS.B
,
12
.13
%
,
2/16/27
....
5,885
5,729
L2640589.UP.FTS.B
,
12
.31
%
,
2/16/27
....
27,107
26,385
L2637999.UP.FTS.B
,
12
.45
%
,
2/16/27
....
6,080
5,918
FW2641042.UP.FTS.B
,
12
.73
%
,
2/16/27
..
654
636
L2641626.UP.FTS.B
,
13
.94
%
,
2/16/27
....
633
46
L2639543.UP.FTS.B
,
14
.06
%
,
2/16/27
....
5,528
5,384
FW2641444.UP.FTS.B
,
14
.17
%
,
2/16/27
..
4,125
296
L2637807.UP.FTS.B
,
14
.59
%
,
2/16/27
....
8,248
8,037
L2643572.UP.FTS.B
,
14
.72
%
,
2/16/27
....
1,113
1,085
FW2640160.UP.FTS.B
,
14
.88
%
,
2/16/27
..
12,826
12,497
L2644502.UP.FTS.B
,
15
.74
%
,
2/16/27
....
10,038
9,804
L2643245.UP.FTS.B
,
15
.83
%
,
2/16/27
....
12,223
11,915
L2642945.UP.FTS.B
,
15
.91
%
,
2/16/27
....
845
824
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2637690.UP.FTS.B
,
16
.3
%
,
2/16/27
...
$
3,700
$
3,607
FW2643607.UP.FTS.B
,
16
.31
%
,
2/16/27
..
28,302
27,860
FW2638305.UP.FTS.B
,
16
.48
%
,
2/16/27
..
6,112
6,014
L2639711.UP.FTS.B
,
16
.7
%
,
2/16/27
.....
909
895
FW2641664.UP.FTS.B
,
17
.29
%
,
2/16/27
..
3,178
3,129
L2641429.UP.FTS.B
,
17
.81
%
,
2/16/27
....
7,474
7,361
L2641792.UP.FTS.B
,
17
.85
%
,
2/16/27
....
2,903
2,832
FW2641155.UP.FTS.B
,
18
.14
%
,
2/16/27
..
3,467
471
L2638277.UP.FTS.B
,
18
.32
%
,
2/16/27
....
2,895
2,850
L2640102.UP.FTS.B
,
19
.59
%
,
2/16/27
....
14,761
14,546
L2644725.UP.FTS.B
,
19
.78
%
,
2/16/27
....
5,780
5,668
L2643324.UP.FTS.B
,
19
.84
%
,
2/16/27
....
25,666
25,292
L2639587.UP.FTS.B
,
20
.1
%
,
2/16/27
....
2,353
2,307
FW2640938.UP.FTS.B
,
20
.16
%
,
2/16/27
..
6,419
6,299
L2643431.UP.FTS.B
,
20
.38
%
,
2/16/27
....
8,750
5,355
FW2644103.UP.FTS.B
,
20
.8
%
,
2/16/27
...
4,431
4,368
FW2639130.UP.FTS.B
,
21
.01
%
,
2/16/27
..
2,374
2,331
L2640498.UP.FTS.B
,
21
.39
%
,
2/16/27
....
6,941
508
FW2638136.UP.FTS.B
,
21
.78
%
,
2/16/27
..
4,787
4,702
L2641584.UP.FTS.B
,
21
.92
%
,
2/16/27
....
30,670
30,100
L2631819.UP.FTS.B
,
22
.11
%
,
2/16/27
....
15,858
15,582
L2637903.UP.FTS.B
,
22
.13
%
,
2/16/27
....
7,108
6,974
FW2640578.UP.FTS.B
,
22
.42
%
,
2/16/27
..
509
500
L2639752.UP.FTS.B
,
22
.85
%
,
2/16/27
....
30,207
29,642
L2644478.UP.FTS.B
,
23
.24
%
,
2/16/27
....
12,139
11,932
FW2641930.UP.FTS.B
,
23
.25
%
,
2/16/27
..
6,297
6,180
FW2640017.UP.FTS.B
,
23
.28
%
,
2/16/27
..
30,157
29,644
L2636952.UP.FTS.B
,
23
.58
%
,
2/16/27
....
6,865
497
FW2639691.UP.FTS.B
,
23
.69
%
,
2/16/27
..
11,081
10,896
FW2643737.UP.FTS.B
,
23
.79
%
,
2/16/27
..
9,542
9,381
L2644184.UP.FTS.B
,
24
.14
%
,
2/16/27
....
5,735
3,502
L2638887.UP.FTS.B
,
24
.84
%
,
2/16/27
....
1,231
1,211
L2642235.UP.FTS.B
,
24
.97
%
,
2/16/27
....
925
910
FW2642257.UP.FTS.B
,
25
.15
%
,
2/16/27
..
6,146
6,048
L2642246.UP.FTS.B
,
25
.42
%
,
2/16/27
....
1,398
882
L2637328.UP.FTS.B
,
25
.43
%
,
2/16/27
....
2,463
2,426
L2644251.UP.FTS.B
,
25
.49
%
,
2/16/27
....
749
737
L2643938.UP.FTS.B
,
25
.5
%
,
2/16/27
....
966
608
L2638678.UP.FTS.B
,
25
.84
%
,
2/16/27
....
6,209
6,112
L2640846.UP.FTS.B
,
26
.29
%
,
2/16/27
....
15,593
15,354
FW2641067.UP.FTS.B
,
27
.08
%
,
2/16/27
..
4,353
4,287
FW2638017.UP.FTS.B
,
27
.09
%
,
2/16/27
..
5,400
5,319
FW2636711.UP.FTS.B
,
27
.4
%
,
2/16/27
...
6,296
6,203
FW2644630.UP.FTS.B
,
28
.55
%
,
2/16/27
..
6,663
4,204
FW2642505.UP.FTS.B
,
29
.14
%
,
2/16/27
..
1,373
326
FW2638733.UP.FTS.B
,
29
.69
%
,
2/16/27
..
2,761
2,724
FW2639696.UP.FTS.B
,
30
.14
%
,
2/16/27
..
644
636
FW2640894.UP.FTS.B
,
30
.14
%
,
2/16/27
..
17,529
17,293
FW2639097.UP.FTS.B
,
30
.54
%
,
2/16/27
..
675
428
FW2632545.UP.FTS.B
,
30
.71
%
,
2/16/27
..
99
98
FW2644847.UP.FTS.B
,
30
.77
%
,
2/16/27
..
840
828
FW2643800.UP.FTS.B
,
31
.1
%
,
2/16/27
...
696
686
FW2638255.UP.FTS.B
,
31
.12
%
,
2/16/27
..
918
905
FW2641269.UP.FTS.B
,
31
.13
%
,
2/16/27
..
7,679
4,889
FW2642792.UP.FTS.B
,
31
.15
%
,
2/16/27
..
769
759
FW2639361.UP.FTS.B
,
31
.17
%
,
2/16/27
..
910
898
FW2638060.UP.FTS.B
,
31
.21
%
,
2/16/27
..
1,692
1,670
FW2645630.UP.FTS.B
,
12
.87
%
,
2/17/27
..
6,870
6,692
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2644980.UP.FTS.B
,
12
.95
%
,
2/17/27
....
$
1,026
$
1,000
L2645342.UP.FTS.B
,
13
.93
%
,
2/17/27
....
16,471
16,045
FW2645588.UP.FTS.B
,
15
.61
%
,
2/17/27
..
2,198
2,164
FW2645675.UP.FTS.B
,
15
.8
%
,
2/17/27
...
15,317
15,079
L2641861.UP.FTS.B
,
16
.53
%
,
2/17/27
....
11,223
11,048
FW2645832.UP.FTS.B
,
18
.88
%
,
2/17/27
..
8,720
8,594
L2645010.UP.FTS.B
,
20
.52
%
,
2/17/27
....
6,548
6,427
FW2642053.UP.FTS.B
,
21
.61
%
,
2/17/27
..
2,499
2,456
L2645135.UP.FTS.B
,
21
.7
%
,
2/17/27
....
1,315
1,292
L2645378.UP.FTS.B
,
22
.72
%
,
2/17/27
....
3,225
2,028
L2645573.UP.FTS.B
,
22
.94
%
,
2/17/27
....
1,272
783
L2645131.UP.FTS.B
,
25
.45
%
,
2/17/27
....
896
211
FW2645900.UP.FTS.B
,
26
.25
%
,
2/17/27
..
1,247
1,228
FW2645571.UP.FTS.B
,
26
.48
%
,
2/17/27
..
2,498
2,461
FW2644973.UP.FTS.B
,
28
.39
%
,
2/17/27
..
5,427
5,350
FW2645842.UP.FTS.B
,
30
.86
%
,
2/17/27
..
1,991
1,965
L2633374.UP.FTS.B
,
7
.21
%
,
2/18/27
....
9,720
9,346
FW2639867.UP.FTS.B
,
26
.3
%
,
2/19/27
...
1,267
1,248
FW2642963.UP.FTS.B
,
25
.88
%
,
2/21/27
..
2,994
2,949
L2638208.UP.FTS.B
,
25
.18
%
,
2/22/27
....
1,551
1,528
L2642691.UP.FTS.B
,
8
.69
%
,
2/23/27
....
17,119
16,645
L2644708.UP.FTS.B
,
25
.19
%
,
2/25/27
....
2,860
2,817
FW2636201.UP.FTS.B
,
12
.12
%
,
2/28/27
..
3,805
3,701
L2633254.UP.FTS.B
,
24
.29
%
,
2/28/27
....
13,478
13,223
L2643974.UP.FTS.B
,
25
.5
%
,
2/28/27
....
2,261
2,228
FW2644598.UP.FTS.B
,
29
.38
%
,
3/01/27
..
7,237
7,143
L2645397.UP.FTS.B
,
26
.19
%
,
3/13/27
....
1,667
752
L1874238.UP.FTS.B
,
17
.32
%
,
3/18/27
....
2,959
2,898
L1872381.UP.FTS.B
,
22
.4
%
,
3/18/27
....
1,671
1,645
FW1873950.UP.FTS.B
,
28
.68
%
,
3/18/27
..
1,483
220
L1873977.UP.FTS.B
,
12
.66
%
,
3/23/27
....
6,949
6,755
L1874548.UP.FTS.B
,
26
.04
%
,
3/26/27
....
4,417
4,360
L1873528.UP.FTS.B
,
25
.71
%
,
3/28/27
....
4,917
4,846
FW1874302.UP.FTS.B
,
13
.81
%
,
4/02/27
..
26,832
26,095
FW1873464.UP.FTS.B
,
22
.91
%
,
4/03/27
..
1,898
1,866
L1947969.UP.FTS.B
,
8
.25
%
,
4/09/27
....
1,501
1,459
L2006384.UP.FTS.B
,
18
.95
%
,
4/09/27
....
8,061
7,937
L2004674.UP.FTS.B
,
22
.44
%
,
4/09/27
....
5,602
2,442
L2006933.UP.FTS.B
,
23
.7
%
,
4/09/27
....
3,819
3,759
L2006560.UP.FTS.B
,
24
.67
%
,
4/09/27
....
5,369
5,281
L2008993.UP.FTS.B
,
25
.21
%
,
4/09/27
....
6,548
6,413
L2009664.UP.FTS.B
,
25
.29
%
,
4/09/27
....
1,092
1,075
FW2007255.UP.FTS.B
,
28
.65
%
,
4/09/27
..
4,080
4,013
FW2009107.UP.FTS.B
,
29
.81
%
,
4/09/27
..
2,400
2,361
FW2007277.UP.FTS.B
,
30
.98
%
,
4/09/27
..
841
118
FW2008461.UP.FTS.B
,
31
.23
%
,
4/09/27
..
1,172
1,152
L2009332.UP.FTS.B
,
18
.58
%
,
4/15/27
....
1,656
1,618
L2077275.UP.FTS.B
,
17
.44
%
,
4/19/27
....
5,445
395
L2078117.UP.FTS.B
,
17
.47
%
,
4/19/27
....
2,197
456
FW2078808.UP.FTS.B
,
19
.87
%
,
4/19/27
..
16,325
138
L2080091.UP.FTS.B
,
20
.35
%
,
4/19/27
....
1,576
1,551
L2076557.UP.FTS.B
,
21
.86
%
,
4/19/27
....
18,100
17,864
L2078089.UP.FTS.B
,
22
.76
%
,
4/19/27
....
13,343
13,115
FW2078029.UP.FTS.B
,
23
.15
%
,
4/19/27
..
3,134
1,940
FW2077484.UP.FTS.B
,
23
.29
%
,
4/19/27
..
11,471
2,589
L2075052.UP.FTS.B
,
25
.99
%
,
4/19/27
....
3,345
2,090
FW2076494.UP.FTS.B
,
27
.89
%
,
4/19/27
..
3,995
3,952
FW2076836.UP.FTS.B
,
31
.47
%
,
4/19/27
..
5,411
3,408
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2005313.UP.FTS.B
,
17
.04
%
,
4/20/27
....
$
36,851
$
7,507
FW2009466.UP.FTS.B
,
29
.96
%
,
4/24/27
..
1,402
1,386
FW2079511.UP.FTS.B
,
9
.94
%
,
5/01/27
...
4,246
1,599
L2199199.UP.FTS.B
,
10
.28
%
,
5/07/27
....
5,339
2,026
L2197172.UP.FTS.B
,
11
.42
%
,
5/07/27
....
5,458
1,078
FW2195774.UP.FTS.B
,
11
.53
%
,
5/07/27
..
21,862
21,212
L2196542.UP.FTS.B
,
14
.21
%
,
5/07/27
....
5,183
1,007
FW2198673.UP.FTS.B
,
15
.71
%
,
5/07/27
..
14,982
5,935
L2199844.UP.FTS.B
,
16
.94
%
,
5/07/27
....
6,438
6,252
L2197174.UP.FTS.B
,
17
.08
%
,
5/07/27
....
9,223
9,026
L2200120.UP.FTS.B
,
19
.52
%
,
5/07/27
....
8,413
1,086
FW2198237.UP.FTS.B
,
21
.87
%
,
5/07/27
..
3,441
733
L2185222.UP.FTS.B
,
23
.13
%
,
5/07/27
....
3,946
3,863
L2197891.UP.FTS.B
,
23
.8
%
,
5/07/27
....
2,408
2,355
L2199876.UP.FTS.B
,
25
.33
%
,
5/07/27
....
993
976
L2199661.UP.FTS.B
,
25
.4
%
,
5/07/27
....
2,012
271
FW2198564.UP.FTS.B
,
27
.96
%
,
5/07/27
..
3,292
3,236
FW2197220.UP.FTS.B
,
29
.81
%
,
5/07/27
..
1,881
1,853
FW2196279.UP.FTS.B
,
31
.01
%
,
5/07/27
..
2,480
2,438
FW2199111.UP.FTS.B
,
31
.05
%
,
5/07/27
..
1,374
308
L2203856.UP.FTS.B
,
13
.82
%
,
5/08/27
....
17,427
16,924
L2205206.UP.FTS.B
,
15
.97
%
,
5/08/27
....
20,346
19,969
L2205436.UP.FTS.B
,
16
.02
%
,
5/08/27
....
17,022
16,658
L2201272.UP.FTS.B
,
16
.5
%
,
5/08/27
....
2,875
2,794
L2205691.UP.FTS.B
,
16
.93
%
,
5/08/27
....
27,875
27,275
L2203740.UP.FTS.B
,
19
.62
%
,
5/08/27
....
1,511
1,478
FW2202220.UP.FTS.B
,
20
.45
%
,
5/08/27
..
13,685
13,398
L2198053.UP.FTS.B
,
20
.47
%
,
5/08/27
....
2,418
2,365
L2201398.UP.FTS.B
,
22
.49
%
,
5/08/27
....
8,841
8,670
L2202315.UP.FTS.B
,
23
.12
%
,
5/08/27
....
2,754
596
L2204624.UP.FTS.B
,
23
.54
%
,
5/08/27
....
15,993
7,013
L2204118.UP.FTS.B
,
23
.56
%
,
5/08/27
....
11,391
11,160
L2169986.UP.FTS.B
,
24
.03
%
,
5/08/27
....
9,671
9,467
FW2202542.UP.FTS.B
,
24
.64
%
,
5/08/27
..
3,645
3,589
L2205328.UP.FTS.B
,
24
.68
%
,
5/08/27
....
1,536
–
FW2201944.UP.FTS.B
,
25
.52
%
,
5/08/27
..
4,345
1,861
L2204916.UP.FTS.B
,
25
.63
%
,
5/08/27
....
9,040
652
L2206165.UP.FTS.B
,
26
.19
%
,
5/08/27
....
6,891
123
FW2206860.UP.FTS.B
,
28
.2
%
,
5/08/27
...
2,719
194
FW2200444.UP.FTS.B
,
31
.21
%
,
5/08/27
..
3,070
11
L2199654.UP.FTS.B
,
12
.66
%
,
5/13/27
....
3,417
3,314
L2195192.UP.FTS.B
,
17
.22
%
,
5/15/27
....
2,310
2,266
L2197038.UP.FTS.B
,
12
.26
%
,
5/16/27
....
2,252
2,184
FW2198942.UP.FTS.B
,
24
.77
%
,
5/18/27
..
11,595
11,359
L2203741.UP.FTS.B
,
7
.33
%
,
5/23/27
....
10,036
9,745
FW2199867.UP.FTS.B
,
13
.82
%
,
5/23/27
..
10,464
6,046
L2204897.UP.FTS.B
,
23
.87
%
,
5/23/27
....
17,403
10,383
FW2204874.UP.FTS.B
,
17
.03
%
,
6/07/27
..
6,168
6,027
L2412468.UP.FTS.B
,
7
.67
%
,
6/11/27
.....
28,190
10,180
L2412874.UP.FTS.B
,
8
.03
%
,
6/11/27
.....
3,942
3,826
L2412901.UP.FTS.B
,
8
.44
%
,
6/11/27
.....
8,529
8,281
L2408318.UP.FTS.B
,
10
.27
%
,
6/11/27
....
2,413
462
L2410725.UP.FTS.B
,
15
.84
%
,
6/11/27
....
11,953
11,609
FW2407472.UP.FTS.B
,
18
.08
%
,
6/11/27
..
16,849
16,371
L2402977.UP.FTS.B
,
20
.95
%
,
6/11/27
....
1,076
547
FW2406392.UP.FTS.B
,
23
.41
%
,
6/11/27
..
7,763
3,349
L2413373.UP.FTS.B
,
23
.72
%
,
6/11/27
....
24,004
23,585
FW2409812.UP.FTS.B
,
24
.81
%
,
6/11/27
..
2,135
2,081
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2410079.UP.FTS.B
,
25
.81
%
,
6/11/27
..
$
2,581
$
355
FW2411228.UP.FTS.B
,
26
.37
%
,
6/11/27
..
2,866
2,818
L2407955.UP.FTS.B
,
27
%
,
6/11/27
......
6,640
6,537
FW2413018.UP.FTS.B
,
30
.69
%
,
6/11/27
..
614
603
FW2410302.UP.FTS.B
,
30
.97
%
,
6/11/27
..
1,505
108
FW2411177.UP.FTS.B
,
31
.23
%
,
6/11/27
..
2,607
2,575
L2417948.UP.FTS.B
,
8
.36
%
,
6/12/27
....
619
601
L2415490.UP.FTS.B
,
12
.71
%
,
6/12/27
....
9,533
9,253
FW2417755.UP.FTS.B
,
18
.05
%
,
6/12/27
..
12,285
4,847
L2415568.UP.FTS.B
,
19
.57
%
,
6/12/27
....
1,723
1,689
L2415810.UP.FTS.B
,
22
.13
%
,
6/12/27
....
3,220
3,162
L2418697.UP.FTS.B
,
22
.86
%
,
6/12/27
....
3,022
2,964
L2417411.UP.FTS.B
,
24
%
,
6/12/27
......
8,586
3,642
FW2415078.UP.FTS.B
,
25
.67
%
,
6/12/27
..
2,711
2,661
FW2414026.UP.FTS.B
,
30
.61
%
,
6/12/27
..
816
804
FW2418950.UP.FTS.B
,
30
.94
%
,
6/12/27
..
1,394
1,372
FW2418092.UP.FTS.B
,
30
.98
%
,
6/12/27
..
1,051
1,036
FW2420156.UP.FTS.B
,
31
.98
%
,
6/12/27
..
2,596
2,573
L2412701.UP.FTS.B
,
25
.09
%
,
6/15/27
....
690
677
FW2410113.UP.FTS.B
,
29
.34
%
,
6/25/27
..
2,612
2,568
FW2411936.UP.FTS.B
,
13
.61
%
,
6/26/27
..
4,692
4,553
L1708948.UP.FTS.B
,
7
.47
%
,
7/14/27
....
5,113
335
L1711759.UP.FTS.B
,
15
.35
%
,
7/14/27
....
5,057
4,976
L2633603.UP.FTS.B
,
8
.38
%
,
7/15/27
....
12,100
2,193
FW2636073.UP.FTS.B
,
23
.1
%
,
7/15/27
...
3,822
277
L2632041.UP.FTS.B
,
23
.26
%
,
7/15/27
....
7,869
7,707
FW2632915.UP.FTS.B
,
24
.46
%
,
7/15/27
..
10,345
10,125
L2633167.UP.FTS.B
,
24
.54
%
,
7/15/27
....
4,181
4,102
L2605748.UP.FTS.B
,
25
.45
%
,
7/15/27
....
1,280
1,257
FW2634310.UP.FTS.B
,
27
.59
%
,
7/15/27
..
5,275
5,186
FW2634423.UP.FTS.B
,
28
.99
%
,
7/15/27
..
17,030
16,820
L2638227.UP.FTS.B
,
10
.2
%
,
7/16/27
....
10,155
9,868
FW2639288.UP.FTS.B
,
14
.3
%
,
7/16/27
...
9,886
9,598
FW2637881.UP.FTS.B
,
14
.54
%
,
7/16/27
..
3,626
3,521
FW2644039.UP.FTS.B
,
16
.97
%
,
7/16/27
..
6,187
450
L2640734.UP.FTS.B
,
17
.15
%
,
7/16/27
....
32,393
18,919
L2640760.UP.FTS.B
,
19
.65
%
,
7/16/27
....
4,252
309
L2631654.UP.FTS.B
,
20
.62
%
,
7/16/27
....
14,966
14,641
L2639355.UP.FTS.B
,
21
.49
%
,
7/16/27
....
2,560
2,513
FW2644724.UP.FTS.B
,
28
.24
%
,
7/16/27
..
45,088
–
FW2641475.UP.FTS.B
,
30
.33
%
,
7/16/27
..
1,309
–
L2645113.UP.FTS.B
,
10
.21
%
,
7/17/27
....
4,953
4,801
L2642277.UP.FTS.B
,
22
.82
%
,
7/17/27
....
4,261
4,183
FW2645472.UP.FTS.B
,
26
.31
%
,
7/17/27
..
11,657
11,488
FW2644628.UP.FTS.B
,
30
.88
%
,
7/24/27
..
1,219
1,208
L2638196.UP.FTS.B
,
7
.54
%
,
7/25/27
....
10,325
9,885
L2631220.UP.FTS.B
,
25
.21
%
,
7/28/27
....
2,186
2,136
FW1873026.UP.FTS.B
,
30
.69
%
,
8/18/27
..
353
348
L2009631.UP.FTS.B
,
16
.91
%
,
9/09/27
....
4,077
4,003
L2005978.UP.FTS.B
,
17
.84
%
,
9/09/27
....
2,750
83
L2004813.UP.FTS.B
,
23
.68
%
,
9/09/27
....
3,892
3,817
FW2007802.UP.FTS.B
,
23
.93
%
,
9/09/27
..
24,496
9,807
FW2079138.UP.FTS.B
,
24
.71
%
,
9/19/27
..
9,988
1,403
FW2077874.UP.FTS.B
,
30
.42
%
,
9/19/27
..
5,041
4,985
L2004302.UP.FTS.B
,
21
.93
%
,
9/24/27
....
2,328
1,373
FW2199121.UP.FTS.B
,
15
.58
%
,
10/07/27
.
14,487
2,623
L2199767.UP.FTS.B
,
25
.65
%
,
10/07/27
...
4,649
335
FW2199624.UP.FTS.B
,
25
.75
%
,
10/07/27
.
8,490
1,113
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2198601.UP.FTS.B
,
30
.14
%
,
10/07/27
.
$
3,463
$
–
L2202159.UP.FTS.B
,
13
.54
%
,
10/08/27
...
15,281
14,867
FW2202576.UP.FTS.B
,
22
.89
%
,
10/08/27
.
7,058
–
L2206615.UP.FTS.B
,
25
.87
%
,
10/08/27
...
12,966
5,195
FW2202975.UP.FTS.B
,
30
.2
%
,
10/08/27
..
2,885
1,169
FW2205386.UP.FTS.B
,
30
.87
%
,
10/08/27
.
7,635
1,063
L2200600.UP.FTS.B
,
11
.71
%
,
10/23/27
...
3,016
1,739
L2410681.UP.FTS.B
,
14
.74
%
,
11/11/27
...
1,444
297
L2413593.UP.FTS.B
,
23
.06
%
,
11/11/27
...
6,266
2,496
FW2410499.UP.FTS.B
,
31
.67
%
,
11/11/27
.
1,170
1,150
L2414318.UP.FTS.B
,
8
.81
%
,
11/12/27
....
10,047
1,969
L2416327.UP.FTS.B
,
17
.17
%
,
11/12/27
...
15,966
15,507
FW2414721.UP.FTS.B
,
28
.43
%
,
11/12/27
.
5,137
25
FW2415964.UP.FTS.B
,
31
.16
%
,
11/12/27
.
860
849
L2644100.UP.FTS.B
,
5
.16
%
,
12/16/27
....
2,762
2,664
L2638486.UP.FTS.B
,
25
.48
%
,
12/16/27
...
6,761
6,661
FW2643411.UP.FTS.B
,
29
.58
%
,
12/16/27
.
4,278
4,139
L1710242.UP.FTS.B
,
16
.42
%
,
9/14/28
....
2,053
1,993
L2008544.UP.FTS.B
,
14
.54
%
,
11/09/28
...
3,501
3,412
L1973640.UP.FTS.B
,
20
.1
%
,
11/09/28
....
7,695
7,479
L2009558.UP.FTS.B
,
26
.34
%
,
11/09/28
...
13,694
13,536
L2195991.UP.FTS.B
,
26
.01
%
,
12/07/28
...
7,128
7,034
L2197007.UP.FTS.B
,
26
.07
%
,
12/07/28
...
2,049
1,994
L2204377.UP.FTS.B
,
25
.94
%
,
12/08/28
...
3,465
3,374
L2635238.UP.FTS.B
,
13
.81
%
,
2/15/29
....
10,868
10,493
L2631621.UP.FTS.B
,
15
.64
%
,
2/15/29
....
15,907
15,367
L2633434.UP.FTS.B
,
17
.36
%
,
2/15/29
....
3,449
3,340
L2634808.UP.FTS.B
,
26
.03
%
,
2/15/29
....
1,607
1,531
L2637431.UP.FTS.B
,
26
.27
%
,
7/15/29
....
6,563
830
L2633894.UP.FTS.B
,
26
.42
%
,
7/15/29
....
4,155
3,932
FW1874507.UP.FTS.B
,
7
.36
%
,
10/18/34
..
547
40
FW1874503.UP.FTS.B
,
9
.4
%
,
10/18/34
...
1,368
104
L1872932.UP.FTS.B
,
21
.9
%
,
10/18/34
....
1,806
465
FW1873053.UP.FTS.B
,
23
.65
%
,
10/18/34
.
405
29
L2009164.UP.FTS.B
,
7
.47
%
,
11/09/34
....
307
304
L2007742.UP.FTS.B
,
8
.31
%
,
11/09/34
....
78
77
FW2006255.UP.FTS.B
,
8
.72
%
,
11/09/34
..
81
80
L2006429.UP.FTS.B
,
9
.93
%
,
11/09/34
....
1,584
1,566
FW2005536.UP.FTS.B
,
10
.27
%
,
11/09/34
.
641
56
L2009057.UP.FTS.B
,
10
.3
%
,
11/09/34
....
131
129
L2007022.UP.FTS.B
,
11
.29
%
,
11/09/34
...
65
64
L2000304.UP.FTS.B
,
13
.97
%
,
11/09/34
...
137
135
FW2004099.UP.FTS.B
,
15
.18
%
,
11/09/34
.
102
101
L2005874.UP.FTS.B
,
15
.93
%
,
11/09/34
...
584
575
L1964575.UP.FTS.B
,
16
.42
%
,
11/09/34
...
70
68
L2006407.UP.FTS.B
,
16
.56
%
,
11/09/34
...
278
274
L2009557.UP.FTS.B
,
16
.56
%
,
11/09/34
...
415
354
L2009227.UP.FTS.B
,
17
.41
%
,
11/09/34
...
123
121
FW2006977.UP.FTS.B
,
17
.62
%
,
11/09/34
.
175
172
L2009435.UP.FTS.B
,
20
.15
%
,
11/09/34
...
595
586
L2004417.UP.FTS.B
,
20
.16
%
,
11/09/34
...
214
183
L2008874.UP.FTS.B
,
20
.27
%
,
11/09/34
...
685
589
L2007505.UP.FTS.B
,
20
.32
%
,
11/09/34
...
116
114
L2008398.UP.FTS.B
,
20
.91
%
,
11/09/34
...
109
107
L2008922.UP.FTS.B
,
22
.21
%
,
11/09/34
...
75
74
L2009367.UP.FTS.B
,
22
.33
%
,
11/09/34
...
334
329
L2009655.UP.FTS.B
,
22
.54
%
,
11/09/34
...
138
135
L2010143.UP.FTS.B
,
22
.58
%
,
11/09/34
...
77
76
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2077512.UP.FTS.B
,
6
.51
%
,
11/19/34
....
$
152
$
150
L2077314.UP.FTS.B
,
7
.63
%
,
11/19/34
....
142
140
L2079482.UP.FTS.B
,
7
.7
%
,
11/19/34
.....
201
199
L2077413.UP.FTS.B
,
8
.09
%
,
11/19/34
....
108
106
L2077593.UP.FTS.B
,
8
.69
%
,
11/19/34
....
314
301
L2077816.UP.FTS.B
,
11
%
,
11/19/34
.....
39
38
L2077041.UP.FTS.B
,
11
.38
%
,
11/19/34
...
142
141
FW2076817.UP.FTS.B
,
16
.69
%
,
11/19/34
.
52
51
FW2078600.UP.FTS.B
,
18
.83
%
,
11/19/34
.
36
35
FW2076493.UP.FTS.B
,
20
.14
%
,
11/19/34
.
90
89
L2070757.UP.FTS.B
,
20
.15
%
,
11/19/34
...
65
64
L2080270.UP.FTS.B
,
21
.47
%
,
11/19/34
...
147
145
FW2078990.UP.FTS.B
,
23
.53
%
,
11/19/34
.
215
213
5,065,202
Total
Marketplace
Loans
(Cost
$
38,205,275
)
.....
$31,848,157
Schedule
of
Investments
(unaudited),
October
31,
2024
Franklin
Strategic
Income
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
At
October
31,
2024
,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
1
(
d
).
At
October
31,
2024
,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1
(
d
).
At
October
31,
2024
,
the
Fund
had
the
following credit
default
swap
contracts outstanding.
See
Note
1(d)
.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
U.S.
Treasury
10
Year
Ultra
Notes
................
Short
1,184
$
134,680,000
12/19/24
$
2,562,508
U.S.
Treasury
2
Year
Notes
.....................
Short
87
17,917,242
12/31/24
32,046
U.S.
Treasury
5
Year
Notes
.....................
Short
616
66,056,375
12/31/24
384,217
U.S.
Treasury
Long
Bonds
.....................
Long
3,665
432,355,469
12/19/24
(
2,619,837
)
U.S.
Treasury
Ultra
Bonds
......................
Long
282
35,426,250
12/19/24
(
737,599
)
Total
Futures
Contracts
......................................................................
$(378,665)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Euro
.............
JPHQ
Sell
2,800,000
3,120,985
11/22/24
$
73,050
$
—
Euro
.............
JPHQ
Sell
2,600,000
2,834,685
1/21/25
—
(
3,386
)
Columbian
Peso
....
JPHQ
Sell
56,500,000,000
13,691,161
2/18/25
1,092,340
—
Total
Forward
Exchange
Contracts
...................................................
$1,165,390
$(3,386)
Net
unrealized
appreciation
(depreciation)
............................................
$1,162,004
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Credit
Default
Swap
Contracts
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
OTC
Swap
Contracts
Contracts
to
Sell
Protection
(c)
(d)
Single
Name
Carnival
Corp.
..
1.00%
Quarterly
CITI
6/20/27
7,090,000
$
6,161
$
(
676,365
)
$
682,526
BB
Traded
Index
CDX.NA.HY.33
.
5.00%
Quarterly
CITI
12/20/24
15,800,000
198,379
(
25,272
)
223,651
Non-
Investment
Grade
Total
OTC
Swap
Contracts
..............................................
$204,540
$(701,637)
$906,177
Total
Credit
Default
Swap
Contracts
....................................
$204,540
$
(
701,637
)
$906,177
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
(a)
In
U.S.
dollars
unless
otherwise
indicated.
For
contracts
to
sell
protection,
the
notional
amount
is
equal
to
the
maximum
potential
amount
of
the
future
payments
and
no
recourse
provisions
have
been
entered
into
in
association
with
the
contracts.
(b)
Based
on
Standard
and
Poor's
(S&P)
Rating
for
single
name
swaps
and
internal
ratings
for
index
swaps.
Internal
ratings
based
on
mapping
into
equivalent
ratings
from
external
vendors.
(c)
Performance
triggers
for
settlement
of
contract
include
default,
bankruptcy
or
restructuring
for
single
name
swaps,
and
failure
to
pay
or
bankruptcy
of
the
underlying
securities
for
traded
index
swaps.
(d)
The
fund
enters
contracts
to
sell
protection
to
create
a
long
credit
position.
See
Note 10 regarding
other
derivative
information.
See
Abbreviations
on
page
119.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
October
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Strategic
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,669,127,760
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
77,537,877
Value
-
Unaffiliated
issuers
..................................................................
$2,538,578,694
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
77,739,541
Cash
....................................................................................
1,546,744
Receivables:
Investment
securities
sold
...................................................................
58,114,192
Capital
shares
sold
........................................................................
524,379
Dividends
and
interest
.....................................................................
27,953,148
Deposits
with
brokers
for:
TBA
transactions
........................................................................
2,364,023
Futures
contracts
........................................................................
12,596,545
Unrealized
appreciation
on
OTC
forward
exchange
contracts
..........................................
1,165,390
Unrealized
appreciation
on
OTC
swap
contracts
....................................................
906,177
Deferred
tax
benefit
.........................................................................
287,971
Total
assets
..........................................................................
2,721,776,804
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
145,836,164
Capital
shares
redeemed
...................................................................
1,691,703
Management
fees
.........................................................................
1,012,580
Distribution
fees
..........................................................................
492,544
Transfer
agent
fees
........................................................................
1,059,353
Trustees'
fees
and
expenses
.................................................................
22
Variation
margin
on
futures
contracts
...........................................................
283,462
OTC
swap
contracts
(upfront
receipts
$
1,682,850
)
..................................................
701,637
Unrealized
depreciation
on
OTC
forward
exchange
contracts
..........................................
3,386
Accrued
expenses
and
other
liabilities
...........................................................
1,280,138
Total
liabilities
.........................................................................
152,360,989
Net
assets,
at
value
.................................................................
$2,569,415,815
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,716,543,310
Total
distributable
earnings
(losses)
.............................................................
(1,147,127,495)
Net
assets,
at
value
.................................................................
$2,569,415,815
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Strategic
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$2,064,957,906
Shares
outstanding
........................................................................
248,346,433
Net
asset
value
per
share
a
,b
..................................................................
$8.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
b
................................
$8.63
Class
C:
Net
assets,
at
value
.......................................................................
$58,014,872
Shares
outstanding
........................................................................
6,968,911
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$8.32
Class
R:
Net
assets,
at
value
.......................................................................
$36,986,659
Shares
outstanding
........................................................................
4,470,513
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$8.27
Class
R6:
Net
assets,
at
value
.......................................................................
$133,509,911
Shares
outstanding
........................................................................
16,026,752
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$8.33
Advisor
Class:
Net
assets,
at
value
.......................................................................
$275,946,467
Shares
outstanding
........................................................................
33,135,330
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$8.33
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
October
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
Strategic
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$97,443
Non-controlled
affiliates
(Note
3
f
)
.............................................................
568,698
Interest:
(net
of
foreign
taxes
of
$1,997)
Unaffiliated
issuers
........................................................................
72,699,133
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
40,037
Total
investment
income
...................................................................
73,405,311
Expenses:
Management
fees
(Note
3
a
)
...................................................................
6,047,850
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
2,644,420
Class
C
................................................................................
202,269
Class
R
................................................................................
93,208
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
1,613,492
Class
C
................................................................................
47,408
Class
R
................................................................................
28,442
Class
R6
...............................................................................
27,256
Advisor
Class
............................................................................
213,444
Custodian
fees
............................................................................
10,789
Reports
to
shareholders
fees
..................................................................
135,187
Registration
and
filing
fees
....................................................................
81,872
Professional
fees
...........................................................................
73,678
Trustees'
fees
and
expenses
..................................................................
14,395
Marketplace
lending
fees
(Note
1
g
)
.............................................................
476,209
Other
....................................................................................
142,390
Total
expenses
.........................................................................
11,852,309
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(45,509)
Net
expenses
.........................................................................
11,806,800
Net
investment
income
................................................................
61,598,511
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(9,826,919)
Foreign
currency
transactions
................................................................
1,412
Forward
exchange
contracts
.................................................................
(489,695)
Futures
contracts
.........................................................................
(581,465)
Swap
contracts
...........................................................................
3,435,407
Net
realized
gain
(loss)
..................................................................
(7,461,260)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
73,459,301
Non-controlled
affiliates
(Note
3
f
)
............................................................
201,664
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(138)
Forward
exchange
contracts
.................................................................
1,504,298
Futures
contracts
.........................................................................
2,162,471
Swap
contracts
...........................................................................
(2,467,013)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
74,860,583
Net
realized
and
unrealized
gain
(loss)
............................................................
67,399,323
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$128,997,834
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Strategic
Income
Fund
Six
Months
Ended
October
31,
2024
(unaudited)
Year
Ended
April
30,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$61,598,511
$124,266,922
Net
realized
gain
(loss)
.................................................
(7,461,260)
(88,812,911)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
74,860,583
46,360,351
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
128,997,834
81,814,362
Distributions
to
shareholders:
Class
A
.............................................................
(47,592,824)
(100,911,285)
Class
C
.............................................................
(1,259,594)
(3,286,225)
Class
R
.............................................................
(797,555)
(1,669,519)
Class
R6
............................................................
(3,334,170)
(6,651,004)
Advisor
Class
........................................................
(6,644,994)
(13,984,391)
Total
distributions
to
shareholders
..........................................
(59,629,137)
(126,502,424)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(69,865,112)
(170,995,824)
Class
C
.............................................................
(8,631,956)
(33,695,036)
Class
R
.............................................................
(4,652)
(4,271,750)
Class
R6
............................................................
(3,211,117)
2,246,105
Advisor
Class
........................................................
(3,627,164)
(33,649,591)
Total
capital
share
transactions
............................................
(85,340,001)
(240,366,096)
Net
increase
(decrease)
in
net
assets
...................................
(15,971,304)
(285,054,158)
Net
assets:
Beginning
of
period
.....................................................
2,585,387,119
2,870,441,277
End
of
period
..........................................................
$2,569,415,815
$2,585,387,119
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of ten
separate
funds.
The
Trust
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
Franklin
Strategic
Income
Fund
(Fund)
is
included
in
this
report.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6
and
Advisor
Class. Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Effective
December
11,
2024,
the
Fund
was
renamed
Franklin
Core
Plus
Bond Fund.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and
derivative
financial instruments listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
Certain
derivative
financial
instruments
are
centrally
cleared
or
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Purchased
on
a
When-Issued,
Forward Commitment or
Delayed
Delivery
Basis
and
TBA
Basis
The
Fund
may
purchase
securities
on
a when-issued,
forward
commitment
or
delayed
delivery
and to-be-
announced
(TBA)
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities, it
may
sell
the
securities
before
the
settlement
date.
Collateral
has
been
pledged
and/or
received
for
open
TBA
trades.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
d.
Derivative
Financial
Instruments
The
Fund invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statement
of
Operations.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
The
Fund
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
The
Fund entered
into
OTC
forward
exchange
contracts
primarily
to
manage
and/or
gain exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency at
a
specific
exchange
rate
on
a
future
date.
The
Fund
entered
into
credit
default
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
risk.
A
credit
default
swap
is
an
agreement
between
the
Fund
and
a
counterparty
whereby
the
buyer
of
the
contract
receives
credit
protection
and
the
seller
of
the
contract
guarantees
the
credit
worthiness
of
a
referenced
debt
obligation.
These
agreements
may
be
privately
negotiated
in
the
over-the-
counter
market
(OTC
credit
default
swaps)
or
may
be
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
executed
in
a
multilateral
trade
facility
platform,
such
as
a
registered
exchange
(centrally
cleared
credit
default
swaps).
The
underlying
referenced
debt
obligation
may
be
a
single
issuer
of
corporate
or
sovereign
debt,
a
credit
index,
a
basket
of
issuers
or
indices,
or
a
tranche
of
a
credit
index
or
basket
of
issuers
or
indices.
In
the
event
of
a
default
of
the
underlying
referenced
debt
obligation,
the
buyer
is
entitled
to
receive
the
notional
amount
of
the
credit
default
swap
contract
from
the
seller
in
exchange
for
the
referenced
debt
obligation,
a
net
settlement
amount
equal
to
the
notional
amount
of
the
credit
default
swap
less
the
recovery
value
of
the
referenced
debt
obligation,
or
other
agreed
upon
amount.
For
centrally
cleared
credit
default
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Over
the
term
of
the
contract,
the
buyer
pays
the
seller
a
periodic
stream
of
payments,
provided
that
no
event
of
default
has
occurred.
Such
periodic
payments
are
accrued
daily
as
an
unrealized
appreciation or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
are
reflected
in
the Statement
of
Assets
and
Liabilities
and
represent
compensating
factors
between
stated
terms
of
the
credit
default
swap
agreement
and
prevailing
market
conditions
(credit
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss
in
the Statement
of
Operations.
See
Note
10 regarding
other
derivative
information.
e.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
October
31,
2024,
the
Fund
had
no
securities
on
loan.
f.
Business
Development
Companies
The
Fund
may
invest
in
securities
of
closed-end
investment
companies
that
have
elected
to
be
treated
as
a
business
development
company
under
the
1940
Act.
The
Fund
may
purchase
a
business
development
company
to
gain
exposure
to
the
securities
in
the
underlying
portfolio.
The
risks
of
owning
a
business
development
company
generally
reflect
the
risks
of
owning
the
underlying
securities.
Business
development
companies
have
expenses
that
reduce
their
value.
g.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
h.
Mortgage
Dollar
Rolls
The
Fund
enters
into
mortgage
dollar
rolls,
typically
on
a
TBA
basis.
Mortgage
dollar
rolls
are
agreements
between
the
Fund
and
a
financial
institution
where
the
Fund
sells
(or
buys)
mortgage-backed
securities
for
delivery
on
a
specified
date
and
simultaneously
contracts
to
repurchase
(or
sell)
substantially
similar
(same
type,
coupon,
and
maturity)
securities
at
a
future
date
and
at
a
predetermined
price.
Gains
or
losses
are
realized
on
the
initial
sale,
and
the
difference
between
the
repurchase
price
and
the
sale
price
is
recorded
as
an
unrealized
gain
or
loss
to
the
Fund
upon
entering
into
the
mortgage
dollar
roll.
In
addition,
the
Fund
may
invest
the
cash
proceeds
that
are
received
from
the
initial
sale.
During
the
period
between
the
sale
and
repurchase,
the
Fund
is
not
entitled
to
principal
and
interest
paid
on
the
mortgage
backed
securities.
Transactions
in
mortgage
dollar
rolls
are
accounted
for
as
purchases
and
sales
and
may
result
in
an
increase
to
the
Fund's
portfolio
turnover
rate.
The
risks
of
mortgage
dollar
roll
transactions
include
the
potential
inability
of
the
counterparty
to
fulfill
its
obligations.
i.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
j.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2024, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
k.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Marketplace
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
fees
are
recorded
as
income
when
received
by
the
Fund.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-
dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
Inflation-indexed
bonds
are
adjusted
for
inflation
through
periodic
increases
or
decreases
in
the
security's
interest
accruals,
face
amount,
or
principal
redemption
value,
by
amounts
corresponding
to
the
rate
of
inflation
as
measured
by
an
index.
Any
increase
or
decrease
in
the
face
amount
or
principal
redemption
value
will
be
included
as
interest
income
in
the
Statement
of
Operations.
l.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
m.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
k.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
October
31,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the Trust are
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
October
31,
2024
Year
Ended
April
30,
2024
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
9,484,117
$79,163,660
23,437,662
$190,706,248
Shares
issued
in
reinvestment
of
distributions
..........
5,431,714
45,172,149
11,794,890
95,599,096
Shares
redeemed
...............................
(23,317,233)
(194,200,921)
(56,252,438)
(457,301,168)
Net
increase
(decrease)
..........................
(8,401,402)
$(69,865,112)
(21,019,886)
$(170,995,824)
Class
C
Shares:
Shares
sold
...................................
342,367
$2,861,981
1,329,931
$10,821,894
Shares
issued
in
reinvestment
of
distributions
..........
146,089
1,216,272
390,222
3,164,988
Shares
redeemed
a
..............................
(1,524,506)
(12,710,209)
(5,865,539)
(47,681,918)
Net
increase
(decrease)
..........................
(1,036,050)
$(8,631,956)
(4,145,386)
$(33,695,036)
Class
R
Shares:
Shares
sold
...................................
433,179
$3,599,282
1,092,028
$8,854,611
Shares
issued
in
reinvestment
of
distributions
..........
96,273
796,641
206,286
1,664,051
Shares
redeemed
...............................
(530,452)
(4,400,575)
(1,825,805)
(14,790,412)
Net
increase
(decrease)
..........................
(1,000)
$(4,652)
(527,491)
$(4,271,750)
Class
R6
Shares:
Shares
sold
...................................
1,419,409
$11,839,071
3,992,186
$32,535,782
Shares
issued
in
reinvestment
of
distributions
..........
344,618
2,872,372
698,322
5,671,757
Shares
redeemed
...............................
(2,143,518)
(17,922,560)
(4,414,945)
(35,961,434)
Net
increase
(decrease)
..........................
(379,491)
$(3,211,117)
275,563
$2,246,105
Advisor
Class
Shares:
Shares
sold
...................................
2,887,622
$24,123,592
5,739,585
$46,782,268
Shares
issued
in
reinvestment
of
distributions
..........
567,186
4,726,517
1,223,635
9,933,617
Shares
redeemed
...............................
(3,894,878)
(32,477,273)
(11,151,327)
(90,365,476)
Net
increase
(decrease)
..........................
(440,070)
$(3,627,164)
(4,188,107)
$(33,649,591)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
a.
Management
Fees
The
Fund
pays
an
investment
management fee,
calculated daily and
paid
monthly,
to
Advisers based
on the
average
daily net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2024,
the
annualized
gross
effective
investment
management
fee
rate
was 0.460%
of
the
Fund’s
average daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
Class
A
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
and
R compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Class
A
....................................................................................
0.25%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Fund
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2024,
the Fund
paid
transfer
agent
fees
as
noted
in
the
Statement of
Operations,
of
which
$592,276
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2024,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Fund have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2025.
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$18,861
CDSC
retained
..............................................................................
$6,644
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
Non-Controlled
Affiliates
Dividends
Franklin
BSP
Real
Estate
Credit
BDC
..................
$—
$12,470,323
$—
$—
$201,664
$12,671,987
489,644
$—
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.582%
17,475,027
220,824,808
(173,232,281)
—
—
65,067,554
65,067,554
568,698
Total
Affiliated
Securities
...
$17,475,027
$233,295,131
$(173,232,281)
$—
$201,664
$77,739,541
$568,698
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2024,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
foreign
currency
transactions,
paydown
losses,
payments-in-kind,
bond
discounts
and
premiums
and
derivative
financial
instruments.
5.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
October
31,
2024,
aggregated
$1,416,808,464 and
$1,584,302,533,
respectively.
6.
Credit
Risk
and
Defaulted
Securities
At
October
31,
2024,
the
Fund
had 28.8% of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
October
31,
2024,
the
aggregate
value
of
these
securities represents less
than
0.1%
of
the
Fund's net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
7.
Concentration
of
Risk
Certain
investments
in
Chinese
companies
are
made
through
a
special
structure
known
as
a
VIE.
In
a
VIE
structure,
foreign
investors,
such
as
the
Fund,
will
only
own
stock
in
a
shell
company
rather
than
directly
in
the
VIE,
which
must
be
owned
by
Chinese
nationals
(and/or
Chinese
companies)
to
obtain
the
licenses
and/or
assets
required
to
operate
in
a
restricted
or
prohibited
sector
in
China.
The
value
of
the
shell
company
is
derived
from
its
ability
to
consolidate
the
VIE
into
its
financials
pursuant
to
contractual
arrangements
that
allow
the
shell
company
to
exert
a
degree
of
control
over,
and
obtain
economic
benefits
arising
from,
the
VIE
without
formal
legal
ownership.
While
VIEs
are
a
longstanding
industry
practice
and
are
well
known
by
Chinese
officials
and
regulators,
the
structure
historically
has
not
been
formally
recognized
under
Chinese
law
and
it
is
uncertain
whether
Chinese
officials
or
regulators
will
withdraw
their
implicit
acceptance
of
the
structure.
It
is
also
uncertain
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$164,152,877
Long
term
................................................................................
828,540,547
Total
capital
loss
carryforwards
...............................................................
$992,693,424
Cost
of
investments
..........................................................................
$2,766,682,628
Unrealized
appreciation
........................................................................
$31,751,256
Unrealized
depreciation
........................................................................
(181,127,770)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(149,376,514)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
whether
the
contractual
arrangements,
which
may
be
subject
to
conflicts
of
interest
between
the
legal
owners
of
the
VIE
and
foreign
investors,
would
be
enforced
by
Chinese
courts
or
arbitration
bodies.
Prohibitions
of
these
structures
by
the
Chinese
government,
or
the
inability
to
enforce
such
contracts,
from
which
the
shell
company
derives
its
value,
would
likely
cause
the
VIE-structured
holding(s)
to
suffer
significant,
detrimental,
and
possibly
permanent
losses,
and
in
turn,
adversely
affect
the
Fund’s
returns
and
net
asset
value.
8.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
October
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
9.
Unfunded
Capital
Commitments
The
Fund
enters into
certain
capital
commitments
and
may
be
obligated
to
perform
on
such
agreements
at
a
future
date.
The
Fund
monitors
these
commitments
and
assesses
the
probability
of
required
performance.
For
any
agreements
whose
probability
of
performance
is
determined
to
be
greater
than
remote,
the
Fund
assesses
the
fair
value
of
the
commitment.
In
instances
where
the
probability
of
performance
is
greater
than
remote
and
the
performance
under
the
commitment
would
result
in
a
material
unrealized
loss,
the
Fund
recognizes
such
losses
in
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations.
At
October
31,
2024, the
Fund had
an
unfunded
capital
commitment
with
a
maximum
amount
of $11,404,677,
for
which
no
depreciation
has
been
recognized.
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Strategic
Income
Fund
125,940,079
a
K2016470219
South
Africa
Ltd.,
A
...............
2/08/13
-
2/01/17
$
977,123
$
—
12,532,821
a
K2016470219
South
Africa
Ltd.,
B
...............
2/01/17
9,307
—
6,000,000
WorkCapital
BSD
SARL,
2/13/26
................
2/15/19
750,000
—
20,000,000
WorkCapital
BSD
SARL,
Term
Loan,
6.5%,
1/01/38
..
2/13/19
19,530,170
—
Total
Restricted
Securities
(Value
is
—%
of
Net
Assets)
...............
$21,266,600
$—
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$—
as
of
October
31,
2024.
7.
Concentration
of
Risk
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
10.
Other
Derivative
Information
At
October
31,
2024,
investments
in
derivative
contracts
are
reflected
in
the Statement of
Assets
and
Liabilities
as
follows:
For
the
period
ended
October
31,
2024,
the
effect
of
derivative
contracts
in
the Statement
of
Operations
was
as
follows:
For
the
period
ended
October
31,
2024,
the
average
month
end
notional
amount
of
futures
contracts
and
swap
contracts represented
$321,983,210
and
$44,331,429,
respectively. The
average
month
end
contract
value
of
forward
exchange
contracts
was
$28,385,309.
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
Strategic
Income
Fund
Interest
rate
contracts
.......
Variation
margin
on
futures
contracts
$
2,978,771
a
Variation
margin
on
futures
contracts
$
3,357,436
a
Foreign
exchange
contracts
..
Unrealized
appreciation
on
OTC
forward
exchange
contracts
1,165,390
Unrealized
depreciation
on
OTC
forward
exchange
contracts
3,386
Credit
contracts
............
OTC
swap
contracts
(upfront
payments)
—
OTC
swap
contracts
(upfront
receipts)
701,637
Unrealized
appreciation
on
OTC
swap
contracts
906,177
Unrealized
depreciation
on
OTC
swap
contracts
—
Total
....................
$5,050,338
$4,062,459
a
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
the
variation
margin
receivable/payable
at
period
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Strategic
Income
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Interest
rate
contracts
..........
Futures
contracts
$(581,465)
Futures
contracts
$2,162,471
Foreign
exchange
contracts
.....
Forward
exchange
contracts
(489,695)
Forward
exchange
contracts
1,504,298
Credit
contracts
...............
Swap
contracts
3,435,407
Swap
contracts
(2,467,013)
Total
.......................
$2,364,247
$1,199,756
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
At
October
31,
2024,
the
Fund's
OTC
derivative
assets
and
liabilities
are
as
follows:
At
October
31,
2024,
OTC
derivative
assets,
which
may
be
offset
against
the
Fund's
OTC
derivative
liabilities
and
collateral
received
from
the
counterparty,
are
as
follows:
At
October
31,
2024,
OTC
derivative
liabilities,
which
may
be
offset
against
the
Fund's
OTC
derivative
assets
and
collateral
pledged
to
the
counterparty,
are
as
follows:
Gross
Amounts
of
Assets
and
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Assets
a
Liabilities
a
Franklin
Strategic
Income
Fund
Forward
Exchange
Contracts
.............................
$
1,165,390
$
3,386
Swap
Contracts
.......................................
906,177
701,637
Total
.............................................
$2,071,567
$705,023
a
Absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Received
a,b
Cash
Collateral
Received
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
CITI
.....................
$906,177
$(701,637)
$(204,540)
$—
$—
JPHQ
...................
1,165,390
(3,386)
(808,315)
—
353,689
Total
...................
$2,071,567
$(705,023)
$
(1,012,855)
$—
$353,689
$
1
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
CITI
.....................
$701,637
$(701,637)
$—
$—
$—
JPHQ
...................
3,386
(3,386)
—
—
—
Total
...................
$705,023
$(705,023)
$—
$—
$—
a
In
some
instances,
the
collateral
amounts
disclosed
in
the
table
above
were
adjusted
due
to
the
requirement
to
limit
collateral
amounts
to
avoid
the
effect
of
over
collateralization. Actual
collateral
received
and/or
pledged
may
be
more
than
the
amounts
disclosed
herein.
b
At
October
31,
2024,
the
Fund
received
U.S
Treasury
Bills,
Bonds
and
Notes
as
collateral
for
derivatives.
10.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Note
1(d) regarding
derivative
financial
instruments.
See
Abbreviations
on
page
119
.
11.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
October
31,
2024,
the Fund
did
not
use
the
Global
Credit
Facility.
12.
Redemption
In-Kind
During
the year ended
April
30,
2024,
the
Fund
realized
$20,660,421
of
net
losses
resulting
from
in-kind
transactions
in
which
the
Fund
redeemed
shares
of
the
Franklin
Floating
Rate
Income
Fund,
a
series
of Franklin Floating
Rate
Master
Trust,
for
securities
held by
the
underlying
fund
rather
than
for
cash.
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2024,
in
valuing
the
Fund's assets
and
liabilities carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Broadline
Retail
.......................
$
—
$
—
$
—
a
$
—
Hotels,
Restaurants
&
Leisure
.............
—
1,360
—
1,360
Machinery
............................
—
663,126
—
663,126
10.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Common
Stocks:
(continued)
Oil,
Gas
&
Consumable
Fuels
.............
$
35,007
$
312,842
$
—
$
347,849
Management
Investment
Companies
.........
—
—
12,671,987
12,671,987
Preferred
Stocks
.........................
—
16,104
—
16,104
Warrants
...............................
—
—
5
a
5
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
27,766,220
—
27,766,220
Air
Freight
&
Logistics
...................
—
952,969
—
952,969
Automobile
Components
.................
—
24,678,944
—
24,678,944
Automobiles
..........................
—
8,150,281
—
8,150,281
Banks
...............................
—
165,744,981
—
165,744,981
Beverages
...........................
—
8,488,164
—
8,488,164
Biotechnology
.........................
—
10,433,951
—
10,433,951
Broadline
Retail
.......................
—
4,564,855
—
a
4,564,855
Building
Products
......................
—
21,998,446
—
21,998,446
Capital
Markets
........................
—
73,207,652
—
73,207,652
Chemicals
...........................
—
34,511,206
—
34,511,206
Commercial
Services
&
Supplies
...........
—
30,394,461
—
30,394,461
Communications
Equipment
..............
—
5,414,537
—
5,414,537
Construction
&
Engineering
...............
—
5,700,344
—
5,700,344
Construction
Materials
..................
—
7,339,612
—
7,339,612
Consumer
Finance
.....................
—
29,571,890
—
29,571,890
Consumer
Staples
Distribution
&
Retail
......
—
5,386,356
—
5,386,356
Containers
&
Packaging
.................
—
27,403,460
—
27,403,460
Distributors
...........................
—
4,388,076
—
4,388,076
Diversified
Consumer
Services
............
—
7,039,830
—
7,039,830
Diversified
REITs
......................
—
7,069,062
—
7,069,062
Diversified
Telecommunication
Services
.....
—
20,845,325
—
20,845,325
Electric
Utilities
........................
—
64,570,403
—
64,570,403
Electrical
Equipment
....................
—
8,486,049
—
8,486,049
Electronic
Equipment,
Instruments
&
Components
........................
—
15,054,519
—
15,054,519
Energy
Equipment
&
Services
.............
—
9,549,947
—
9,549,947
Entertainment
.........................
—
5,479,734
—
5,479,734
Financial
Services
......................
—
27,444,266
—
a
27,444,266
Food
Products
........................
—
29,295,212
—
29,295,212
Gas
Utilities
..........................
—
1,948,447
—
1,948,447
Ground
Transportation
..................
—
21,413,993
—
21,413,993
Health
Care
Equipment
&
Supplies
.........
—
22,391,828
—
22,391,828
Health
Care
Providers
&
Services
..........
—
70,215,823
—
70,215,823
Health
Care
REITs
.....................
—
5,005,089
—
5,005,089
Health
Care
Technology
.................
—
7,402,637
—
7,402,637
Hotel
&
Resort
REITs
...................
—
9,390,817
—
9,390,817
Hotels,
Restaurants
&
Leisure
.............
—
53,440,681
—
53,440,681
Household
Durables
....................
—
14,234,747
—
14,234,747
Household
Products
....................
—
6,645,576
—
6,645,576
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
28,144,160
—
28,144,160
Insurance
............................
—
56,111,630
—
56,111,630
Interactive
Media
&
Services
..............
—
8,023,410
—
8,023,410
IT
Services
...........................
—
22,395,332
—
22,395,332
Life
Sciences
Tools
&
Services
............
—
2,756,900
—
2,756,900
Machinery
............................
—
15,781,170
—
15,781,170
Media
...............................
—
49,654,541
—
49,654,541
Metals
&
Mining
.......................
—
31,450,377
—
31,450,377
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Corporate
Bonds:
(continued)
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
$
—
$
953,670
$
—
$
953,670
Multi-Utilities
..........................
—
15,982,375
—
15,982,375
Oil,
Gas
&
Consumable
Fuels
.............
—
144,889,100
—
144,889,100
Paper
&
Forest
Products
.................
—
10,029,488
—
10,029,488
Passenger
Airlines
.....................
—
13,455,902
—
13,455,902
Personal
Care
Products
.................
—
23,715,688
—
23,715,688
Pharmaceuticals
.......................
—
37,597,624
—
37,597,624
Specialized
REITs
......................
—
8,439,276
—
8,439,276
Specialty
Retail
........................
—
1,851,781
—
1,851,781
Technology
Hardware,
Storage
&
Peripherals
.
—
14,153,781
—
14,153,781
Textiles,
Apparel
&
Luxury
Goods
..........
—
13,151,981
—
13,151,981
Tobacco
.............................
—
21,125,847
—
21,125,847
Trading
Companies
&
Distributors
..........
—
33,024,997
—
33,024,997
Transportation
Infrastructure
..............
—
685,304
—
685,304
Wireless
Telecommunication
Services
.......
—
26,257,078
25,797
26,282,875
Senior
Floating
Rate
Interests
...............
—
65,392,097
—
a
65,392,097
Marketplace
Loans
.......................
—
—
31,848,157
31,848,157
Foreign
Government
and
Agency
Securities
....
—
57,304,127
—
57,304,127
U.S.
Government
and
Agency
Securities
.......
—
424,396,486
—
424,396,486
Asset-Backed
Securities
...................
—
68,296,212
—
68,296,212
Commercial
Mortgage-Backed
Securities
......
—
29,122,384
—
29,122,384
Mortgage-Backed
Securities
................
—
318,792,973
—
318,792,973
Residential
Mortgage-Backed
Securities
.......
—
59,600,215
—
59,600,215
Escrows
and
Litigation
Trusts
...............
—
120,000
—
a
120,000
Short
Term
Investments
...................
65,067,554
—
—
65,067,554
Total
Investments
in
Securities
...........
$65,102,561
$2,506,669,728
$44,545,946
$2,616,318,235
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$—
$1,165,390
$—
$1,165,390
Futures
Contracts
.......................
2,978,771
—
—
2,978,771
Swap
Contracts
.........................
—
906,177
—
906,177
Total
Other
Financial
Instruments
.........
$2,978,771
$2,071,567
$—
$5,050,338
Liabilities:
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$—
$3,386
$—
$3,386
Futures
Contracts
........................
3,357,436
—
—
3,357,436
Total
Other
Financial
Instruments
.........
$3,357,436
$3,386
$—
$3,360,822
a
Includes
financial
instruments
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period
.
At
October
31,
2024
,
the
reconciliation
is
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
c
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Broadline
Retail
.....
$
—
d
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
d
$
—
Oil,
Gas
&
Consumable
Fuels
..........
3,537,988
—
(3,591,876)
—
—
—
—
53,888
—
—
Management
Investment
Companies
:
Capital
Markets
.....
—
12,470,323
—
—
—
—
—
201,664
12,671,987
201,664
Warrants
:
Machinery
.........
268
—
—
—
—
—
—
(263)
5
(263)
Oil,
Gas
&
Consumable
Fuels
..........
—
d
—
—
d
—
—
—
—
—
—
d
—
Software
..........
—
d
—
—
—
—
—
—
—
—
d
—
Corporate
Bonds
:
Broadline
Retail
.....
—
d
—
—
—
—
—
—
—
—
d
—
Financial
Services
...
—
d
—
—
—
—
—
—
—
—
d
—
Wireless
Telecommunication
Services
........
—
—
(10,629)
62,391
—
8,178
7,395
(41,538)
25,797
(40,117)
Senior
Floating
Rate
Interests
:
Software
..........
—
d
—
—
—
—
—
—
—
—
d
—
Marketplace
Loans
:
Financial
Services
...
37,995,687
7,590,776
(12,725,832)
—
—
—
(56,643)
(955,831)
31,848,157
(1,520,361)
Escrows
and
Litigation
Trusts
...........
—
d
—
—
—
—
—
—
—
—
d
—
Total
Investments
in
Securities
............
$41,533,943
$20,061,099
$(16,328,337)
$62,391
$—
$8,178
$(49,248)
$(742,080)
$44,545,946
$(1,359,077)
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Transferred
into
Level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
as
a
result
of
the
unreliability
of
the
foreign
exchange
rate
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Includes
financial
instruments
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
October
31,
2024,
are
as
follows:
14.
Subsequent
Events
The Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Marketplace
Loans:
Financial
Services
$31,848,157
Discounted
cash
flow
Loss-adjusted
discount
rate
1.9%
–
12.6%
(9.7%)
Decrease
Projected
loss
rate
0.7%
–
80.2%
(20.7%)
Decrease
All
Other
Investments
.
.
.
.
.
.
.
12,697,789
c,d
Total
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.........
$44,545,946
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
d
Includes
financial
instruments
determined
to
have
no
value.
13.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Abbreviations
Counterparty
CITI
Citibank
NA
JPHQ
JPMorgan
Chase
Bank
NA
Cu
r
rency
BRL
Brazilian
Real
COP
Colombian
Peso
EUR
Euro
USD
United
States
Dollar
Selected
Portfolio
BDC
Business
Development
Company
BZDIOVRA
Brazil
Inter-Bank
Deposit
Rate
CLO
Collateralized
Loan
Obligation
CMT
Constant
Monthly
U.S.
Treasury
Securities
Yield
Curve
Rate
Index
FFCB
Federal
Farm
Credit
Banks
Funding
Corp.
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
MBS
Mortgage-Backed
Security
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
STACR
Structured
Agency
Credit
Risk
TBA
To-Be-Announced
TBD
To
Be
Determined
T-Note
Treasury
Note
FRANKLIN
STRATEGIC
SERIES
Franklin
Strategic
Income
Fund
(Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Strategic
Series
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
FT
family
of
funds
and
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2023.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
multi-sector
income
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
below
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
three-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-related
attributes
of
the
Fund
(e.g.
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
also
noted
that
the
Fund’s
annualized
income
return
was
positive
for
all
reporting
periods.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
the
Fund
and
for
each
other
fund
in
its
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
13
other
multi-sector
income
funds.
The
Board
noted
that
the
Management
Rate
and
actual
total
expense
ratio
for
the
Fund
were
below
the
medians
of
its
Expense
Group
with
the
Management
Rate
in
the
first
quintile
(least
expensive).
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Fund
had
experienced
a
significant
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
©
2024
Franklin
Templeton.
All
rights
reserved.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 13. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 16. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 18. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 19. Exhibits.
(a) (1) N/A
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffery White, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffery White, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN STRATEGIC SERIES
| By | /s/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | December 27, 2024 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By | /s/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | December 27, 2024 | |
| By | /s/ JEFFREY WHITE | |
| | Jeffrey White | |
| | Chief Financial Officer, Chief Accounting Officer and Treasurer | |
| | | |
| Date | December 27, 2024 | |
