Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
FSS3-Q1PH
1
Schedules
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
2
Franklin
Templeton
SMACS:
Series
E
5
Franklin
Templeton
SMACS:
Series
H
11
Franklin
Templeton
SMACS:
Series
I
16
Notes
to
Schedules
of
Investments
23
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
November
30,
2023
Franklin
Templeton
SMACS:
Series
CH
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
2
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
105.0%
California
99.8%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
................................
$
125,000
$
117,308
Beaumont
Unified
School
District
,
Community
Facilities
District
No.
2020-1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5
%
,
9/01/53
....................
150,000
149,567
a
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
...................................................
1,000,000
1,031,087
b
California
Community
Housing
Agency
,
Annadel
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
..................
1,200,000
941,852
Mira
Vista
Hills
Apartments
,
Revenue
,
144A,
2021
A
,
4
%
,
2/01/56
.............
150,000
101,305
Serenity
at
Larkspur
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
2/01/50
.........
1,000,000
782,250
California
Educational
Facilities
Authority
,
St.
Mary's
College
of
California
,
Revenue
,
2023
A
,
Refunding
,
5.5
%
,
10/01/53
....................................
1,000,000
1,029,111
California
Health
Facilities
Financing
Authority
,
Children's
Hospital
Los
Angeles
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
8/15/47
.................
1,000,000
1,009,924
California
Municipal
Finance
Authority
,
Special
Tax
,
2022
B
,
Refunding
,
6
%
,
9/01/52
.............................
150,000
152,062
Special
Tax
,
2022
C
,
6.25
%
,
9/01/52
...................................
150,000
150,225
Special
Tax
,
2022
D
,
6.125
%
,
9/01/52
..................................
150,000
153,334
Special
Tax
,
2023
A
,
5.5
%
,
9/01/53
....................................
100,000
101,587
Caritas
Corp.
(The)
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
8/15/56
...............
115,000
93,899
b
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/49
.
125,000
114,337
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
6
%
,
9/01/52
....................................................
150,000
153,819
c
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.8
%
,
9/01/53
........................................................
1,000,000
1,026,975
Congregational
Homes,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/39
.......................................................
130,000
122,625
b
IH
Parkside
Fairfield
LLC
,
Revenue
,
144A,
2023
B
,
Zero
Cpn.,
9/01/43
..........
250,000
147,193
b
California
Pollution
Control
Financing
Authority
,
Poseidon
Resources
Channelside
LP
,
Revenue
,
144A,
2019
,
Refunding
,
5
%
,
7/01/39
1,000,000
1,021,971
d
Rialto
Bioenergy
Facility
LLC
,
Revenue
,
144A,
2018
,
7.5
%
,
12/01/40
...........
75,000
28,500
b
California
Public
Finance
Authority
,
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/46
.................................
1,250,000
1,098,099
b
California
School
Finance
Authority
,
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.875
%
,
6/01/53
.......................
100,000
98,485
California
Statewide
Communities
Development
Authority
,
Special
Tax
,
2023
A
,
5.25
%
,
9/01/51
...................................
100,000
99,249
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
100,000
103,954
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........
150,000
153,495
Community
Facilities
District
No.
2022-03
,
Special
Tax
,
2023
,
5
%
,
9/01/53
.......
150,000
143,111
Community
Facilities
District
No.
2022-07
Improvement
Area
No.
1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
................................................
150,000
149,798
b
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5.25
%
,
12/01/56
.................................................
250,000
242,753
b
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/49
.............
100,000
96,851
b
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/52
.............
200,000
192,550
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
3
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Chino
Community
Facilities
District
,
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
..........................................
$
1,000,000
$
1,032,207
b
,c
City
&
County
of
San
Francisco
,
District
No.
2020-1
Shoreline
Tax
Zone
1
,
Special
Tax
,
144A,
2023
C
,
5.75
%
,
9/01/53
........................................
1,500,000
1,522,381
c
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
5
,
Special
Tax
,
2023
,
5.375
%
,
9/01/51
....................................
1,250,000
1,266,728
City
of
Lake
Elsinore
,
Community
Facilities
District
No.
2006-8
,
Special
Tax
,
2023
,
5
%
,
9/01/53
.........................................................
150,000
150,428
City
of
Los
Angeles
,
Department
of
Airports
,
Revenue
,
2017
A
,
5
%
,
5/15/42
........
1,000,000
1,019,555
City
of
Rancho
Cordova
,
Arista
Del
Sol
Community
Facilities
District
No.
2022-1
Improvement
Area
No.
1
,
Special
Tax
,
2023
,
5.375
%
,
9/01/53
.................
200,000
203,566
b
CSCDA
Community
Improvement
Authority
,
Dublin
,
Revenue
,
144A,
2021
B
,
4
%
,
2/01/57
.........................................................
140,000
97,169
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue
,
2013
B-2
,
Refunding
,
3.5
%
,
1/15/53
.........................................................
140,000
117,235
c
Galt
Community
Facilities
District
,
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
6
%
,
9/01/53
..................
1,500,000
1,512,121
Golden
State
Tobacco
Securitization
Corp.
,
Revenue
,
2022
A-1
,
Refunding
,
5
%
,
6/01/51
.........................................................
1,000,000
1,026,574
c
Orange
County
Community
Facilities
District
,
Community
Facilities
District
No.
2023-1
,
Special
Tax
,
2023
A
,
5.5
%
,
8/15/53
....................................
1,000,000
1,021,894
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
..................................
1,000,000
1,003,380
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue,
Second
Series
,
2019
E
,
5
%
,
5/01/50
............................
1,000,000
1,017,579
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2019
B-1
,
2
,
Refunding
,
5
%
,
6/01/48
.......
80,000
81,240
Washington
Township
Health
Care
District
,
Revenue
,
2023
A
,
5.75
%
,
7/01/48
......
150,000
158,831
22,038,164
U.S.
Territories
5.2%
Puerto
Rico
5.2%
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
200,000
176,000
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
1,000,000
972,080
1,148,080
Total
U.S.
Territories
....................................................................
1,148,080
Total
Municipal
Bonds
(Cost
$
22,832,699
)
......................................
23,186,244
a
a
a
a
Short
Term
Investments
22.2%
Municipal
Bonds
22.2%
California
22.2%
e
California
Statewide
Communities
Development
Authority
,
Rady
Children's
Hospital
Obligated
Group
,
Revenue
,
2008
A
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
2
%
,
8/15/47
..................................................
1,000,000
1,000,000
e
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2002
A-6
,
Refunding
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.55
%
,
7/01/35
......
800,000
800,000
e
State
of
California
,
GO
,
2005
B-5
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.15
%
,
5/01/40
.........................................................
100,000
100,000
e
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
2.3
%
,
5/15/48
...................
1,000,000
1,000,000
Revenue
,
2013
AL-3
,
Refunding
,
Daily
VRDN
and
Put
,
2.4
%
,
5/15/48
...........
1,000,000
1,000,000
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
4
See
Abbreviations
on
page
26
.
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
California
(continued)
e
University
of
California,
(continued)
Revenue
,
2013
AL-4
,
Refunding
,
Daily
VRDN
and
Put
,
2.4
%
,
5/15/48
...........
$
1,000,000
$
1,000,000
4,900,000
Total
Municipal
Bonds
(Cost
$
4,900,000
)
.......................................
4,900,000
Total
Short
Term
Investments
(Cost
$
4,900,000
)
.................................
4,900,000
a
Total
Investments
(Cost
$
27,732,699
)
127
.2
%
...................................
$28,086,244
Other
Assets,
less
Liabilities
(
27
.2
)
%
..........................................
(5,993,928)
Net
Assets
100.0%
...........................................................
$22,092,316
a
The
maturity
date
shown
represents
the
mandatory
put
date.
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
November
30,
2023,
the
aggregate
value
of
these
securities
was
$6,485,696,
representing
29.4%
of
net
assets.
c
Security
purchased
on
a
when-issued
basis.
d
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
e
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
November
30,
2023
Franklin
Templeton
SMACS:
Series
E
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
5
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
55.5%
Aerospace
&
Defense
2.2%
Lockheed
Martin
Corp.
.................................
United
States
2,500
$
1,119,425
a
Northrop
Grumman
Corp.
...............................
United
States
2,000
950,320
2,069,745
Banks
10.2%
Bank
of
America
Corp.
.................................
United
States
8,000
243,920
Citigroup,
Inc.
........................................
United
States
49,000
2,258,900
Fifth
Third
Bancorp
....................................
United
States
27,000
781,650
Truist
Financial
Corp.
..................................
United
States
85,000
2,731,900
US
Bancorp
.........................................
United
States
60,000
2,287,200
a
Wells
Fargo
&
Co.
.....................................
United
States
30,000
1,337,700
9,641,270
Beverages
3.4%
Coca-Cola
Co.
(The)
...................................
United
States
55,000
3,214,200
Biotechnology
1.5%
a
AbbVie,
Inc.
.........................................
United
States
10,000
1,423,900
Capital
Markets
1.4%
a
Charles
Schwab
Corp.
(The)
.............................
United
States
22,000
1,349,040
Chemicals
1.1%
a
Air
Products
and
Chemicals,
Inc.
..........................
United
States
4,000
1,082,200
Communications
Equipment
1.5%
Cisco
Systems,
Inc.
...................................
United
States
30,000
1,451,400
Electric
Utilities
1.4%
American
Electric
Power
Co.,
Inc.
.........................
United
States
17,000
1,352,350
Industrial
Conglomerates
1.1%
Honeywell
International,
Inc.
.............................
United
States
5,100
999,192
Insurance
0.9%
MetLife,
Inc.
.........................................
United
States
14,000
890,820
IT
Services
1.2%
a
International
Business
Machines
Corp.
.....................
United
States
7,000
1,109,920
Machinery
0.9%
a
Caterpillar,
Inc.
.......................................
United
States
3,500
877,520
Metals
&
Mining
1.2%
a
Freeport-McMoRan,
Inc.
................................
United
States
30,000
1,119,600
Multi-Utilities
0.8%
DTE
Energy
Co.
......................................
United
States
7,500
780,825
Oil,
Gas
&
Consumable
Fuels
8.1%
a
BP
plc
,
ADR
.........................................
United
Kingdom
35,000
1,270,150
Chevron
Corp.
.......................................
United
States
10,000
1,436,000
Exxon
Mobil
Corp.
.....................................
United
States
12,500
1,284,250
a
Shell
plc
,
ADR
........................................
Netherlands
20,000
1,316,000
a
TotalEnergies
SE
,
ADR
.................................
France
35,000
2,381,750
7,688,150
Pharmaceuticals
5.6%
Bristol-Myers
Squibb
Co.
................................
United
States
15,000
740,700
Merck
&
Co.,
Inc.
.....................................
United
States
45,000
4,611,600
5,352,300
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
5.4%
a
Analog
Devices,
Inc.
...................................
United
States
15,000
$
2,750,700
a
QUALCOMM,
Inc.
.....................................
United
States
6,500
838,825
Texas
Instruments,
Inc.
.................................
United
States
10,000
1,527,100
5,116,625
Software
2.5%
a
Oracle
Corp.
.........................................
United
States
20,000
2,324,200
Specialty
Retail
1.7%
Home
Depot,
Inc.
(The)
.................................
United
States
5,000
1,567,450
Tobacco
3.4%
Philip
Morris
International,
Inc.
...........................
United
States
35,000
3,267,600
Total
Common
Stocks
(Cost
$
50,702,414
)
......................................
52,678,307
Equity-Linked
Securities
36.8%
Aerospace
&
Defense
3.2%
b
Barclays
Bank
plc
into
Northrop
Grumman
Corp.
,
144A,
7
%
,
11/08/24
..........................................
United
States
1,800
871,428
b
BNP
Paribas
Issuance
BV
into
Northrop
Grumman
Corp.
,
144A,
7.5
%
,
9/10/24
......................................
United
States
2,000
880,753
b
Merrill
Lynch
International
&
Co.
CV
into
Raytheon
Technologies
Corp.
,
144A,
7.5
%
,
5/08/24
............................
United
States
4,000
336,020
b
Merrill
Lynch
International
&
Co.
CV
into
RTX
Corp.
,
144A,
7.5
%
,
10/02/24
..........................................
United
States
12,000
946,521
3,034,722
Air
Freight
&
Logistics
1.8%
b
J.P.
Morgan
Structured
Products
BV
into
United
Parcel
Service,
Inc.
,
144A,
9
%
,
10/22/24
..................................
United
States
5,500
843,720
b
Merrill
Lynch
International
&
Co.
CV
into
United
Parcel
Service,
Inc.
,
144A,
8.5
%
,
10/02/24
.................................
United
States
5,700
872,823
1,716,543
Automobiles
0.9%
b
Barclays
Bank
plc
into
Ford
Motor
Co.
,
144A,
12
%
,
2/09/24
......
United
States
44,500
460,721
b
Barclays
Bank
plc
into
General
Motors
Co.
,
144A,
10
%
,
7/17/24
..
United
States
11,000
361,614
822,335
Banks
1.4%
b
Barclays
Bank
plc
into
Citigroup,
Inc.
,
144A,
9
%
,
7/03/24
........
United
States
5,000
234,430
b
Barclays
Bank
plc
into
US
Bancorp.
,
144A,
10
%
,
8/23/24
.......
United
States
16,500
632,254
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Bank
of
America
Corp.
,
144A,
8
%
,
8/16/24
...................................
United
States
8,400
260,434
b
JPMorgan
Chase
Bank
NA
into
Bank
of
America
Corp.
,
144A,
9
%
,
2/02/24
...........................................
United
States
7,100
219,743
1,346,861
Biotechnology
1.2%
b
Barclays
Bank
plc
into
Amgen,
Inc.
,
144A,
8
%
,
9/20/24
.........
United
States
2,100
553,766
b
Goldman
Sachs
International
Bank
into
AbbVie,
Inc.
,
144A,
8.5
%
,
2/06/24
...........................................
United
States
4,300
614,771
1,168,537
Broadline
Retail
1.6%
b
Goldman
Sachs
International
Bank
into
Amazon.com,
Inc.
,
144A,
9
%
,
11/20/24
.......................................
United
States
10,000
1,248,020
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Broadline
Retail
(continued)
b
Royal
Bank
of
Canada
into
Amazon.com,
Inc.
,
144A,
10
%
,
4/05/24
United
States
2,800
$
319,263
1,567,283
Building
Products
2.8%
b
J.P.
Morgan
Structured
Products
BV
into
Johnson
Controls
International
plc
,
144A,
8
%
,
9/09/24
......................
United
States
15,000
819,228
b
Wells
Fargo
Bank
NA
into
Johnson
Controls
International
plc
,
144A,
9
%
,
12/10/24
.......................................
United
States
35,000
1,817,345
2,636,573
Capital
Markets
1.9%
b
BNP
Paribas
Issuance
BV
into
Goldman
Sachs
Group,
Inc.
(The)
,
144A,
7.5
%
,
8/19/24
.................................
United
States
1,700
593,025
b
Goldman
Sachs
International
Bank
into
Morgan
Stanley
,
144A,
9
%
,
12/24/24
..........................................
United
States
2,300
189,829
b
Merrill
Lynch
International
&
Co.
CV
into
Morgan
Stanley
,
144A,
10
%
,
6/04/24
.......................................
United
States
1,000
80,992
b
Societe
Generale
SA
into
Goldman
Sachs
Group,
Inc.
(The)
,
144A,
8.5
%
,
7/12/24
......................................
United
States
1,500
498,524
b
UBS
AG
into
Charles
Schwab
Corp.
(The)
,
144A,
10
%
,
7/17/24
...
United
States
8,100
475,046
1,837,416
Chemicals
0.7%
b
JPMorgan
Chase
Bank
NA
into
LyondellBasell
Industries
NV
,
144A,
11
%
,
1/22/24
.......................................
United
States
7,000
672,951
Communications
Equipment
2.0%
b
Mizuho
Markets
Cayman
LP
into
Cisco
Systems,
Inc.
,
144A,
7.5
%
,
7/23/24
...........................................
United
States
12,000
590,619
b
Royal
Bank
of
Canada
into
Cisco
Systems,
Inc.
,
144A,
8
%
,
9/03/24
United
States
15,000
751,841
b
UBS
AG
into
Cisco
Systems,
Inc.
,
144A,
8.5
%
,
6/20/24
.........
United
States
11,000
536,524
1,878,984
Consumer
Staples
Distribution
&
Retail
1.6%
b
Barclays
Bank
plc
into
Target
Corp.
,
144A,
8.5
%
,
10/08/24
......
United
States
5,800
753,756
b
UBS
AG
into
Target
Corp.
,
144A,
9
%
,
9/05/24
................
United
States
5,900
796,407
1,550,163
Electric
Utilities
1.0%
b
Mizuho
Markets
Cayman
LP
into
NextEra
Energy,
Inc.
,
144A,
8
%
,
3/19/24
...........................................
United
States
4,600
274,221
b
National
Bank
of
Canada
into
NextEra
Energy,
Inc.
,
144A,
8.5
%
,
12/05/23
..........................................
United
States
3,000
175,164
b
Wells
Fargo
Bank
NA
into
NextEra
Energy,
Inc.
,
144A,
8
%
,
5/08/24
United
States
7,500
453,871
903,256
Ground
Transportation
1.2%
b
Merrill
Lynch
BV
into
Union
Pacific
Corp.
,
144A,
8
%
,
11/05/24
....
United
States
1,800
395,469
b
UBS
AG
into
Union
Pacific
Corp.
,
144A,
8
%
,
3/13/24
...........
United
States
3,600
783,517
1,178,986
Insurance
0.7%
b
BNP
Paribas
Issuance
BV
into
MetLife,
Inc.
,
144A,
9
%
,
10/23/24
..
United
States
6,800
434,132
b
Citigroup
Global
Markets
Holdings,
Inc.
into
MetLife,
Inc.
,
144A,
9.5
%
,
7/17/24
......................................
United
States
4,500
266,638
700,770
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Machinery
0.6%
b
National
Bank
of
Canada
into
Cummins,
Inc.
,
144A,
8.5
%
,
2/13/24
United
States
2,300
$
524,372
Media
1.4%
b
J.P.
Morgan
Structured
Products
BV
into
Comcast
Corp.
,
144A,
8
%
,
8/13/24
...........................................
United
States
10,000
421,316
b
J.P.
Morgan
Structured
Products
BV
into
Comcast
Corp.
,
144A,
8
%
,
9/12/24
...........................................
United
States
3,000
129,496
b
Royal
Bank
of
Canada
into
Comcast
Corp.
,
144A,
8
%
,
7/12/24
...
United
States
18,000
756,601
1,307,413
Metals
&
Mining
1.0%
b
Mizuho
Markets
Cayman
LP
into
Freeport-McMoRan,
Inc.
,
144A,
11
%
,
12/10/24
......................................
United
States
9,600
364,446
b
Royal
Bank
of
Canada
into
Barrick
Gold
Corp.
,
144A,
11
%
,
3/07/24
Canada
35,000
618,494
982,940
Oil,
Gas
&
Consumable
Fuels
1.9%
b
BNP
Paribas
Issuance
BV
into
BP
plc
,
144A,
8.5
%
,
4/24/24
......
United
Kingdom
23,000
846,582
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Exxon
Mobil
Corp.
,
144A,
9.5
%
,
2/22/24
.................................
United
States
3,200
333,013
b
J.P.
Morgan
Structured
Products
BV
into
Exxon
Mobil
Corp.
,
144A,
9
%
,
9/24/24
........................................
United
States
2,300
242,176
b
Merrill
Lynch
International
&
Co.
CV
into
Chevron
Corp.
,
144A,
10
%
,
12/04/23
..........................................
United
States
2,400
347,217
1,768,988
Pharmaceuticals
2.2%
b
BNP
Paribas
Issuance
BV
into
Pfizer,
Inc.
,
144A,
8.5
%
,
6/10/24
..
United
States
19,000
594,903
b
National
Bank
of
Canada
into
Bristol-Myers
Squibb
Co.
,
144A,
8
%
,
9/05/24
...........................................
United
States
20,000
1,022,182
b
Societe
Generale
SA
into
Pfizer,
Inc.
,
144A,
8.5
%
,
8/02/24
......
United
States
15,000
467,178
2,084,263
Semiconductors
&
Semiconductor
Equipment
5.5%
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Intel
Corp.
,
144A,
10
%
,
10/03/24
..........................................
United
States
1,600
66,083
b
Goldman
Sachs
International
Bank
into
Texas
Instruments,
Inc.
,
144A,
9
%
,
11/10/25
..................................
United
States
8,000
1,248,106
b
Merrill
Lynch
International
&
Co.
CV
into
Broadcom,
Inc.
,
144A,
10
%
,
12/05/23
..........................................
United
States
365
205,896
b
Mizuho
Markets
Cayman
LP
into
Intel
Corp.
,
144A,
12
%
,
3/26/24
.
United
States
25,000
1,067,656
b
Mizuho
Markets
Cayman
LP
into
Microchip
Technology,
Inc.
,
144A,
10
%
,
11/12/24
......................................
United
States
9,000
732,988
b
Mizuho
Markets
Cayman
LP
into
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
,
144A,
10
%
,
10/22/24
...............
Taiwan
9,000
838,363
b
Morgan
Stanley
Finance
II
Ltd.
into
Microchip
Technology,
Inc.
,
144A,
10
%
,
3/03/25
..................................
United
States
11,500
957,195
b
UBS
AG
into
Texas
Instruments,
Inc.
,
144A,
8.5
%
,
8/07/24
......
United
States
700
109,933
5,226,220
Software
1.9%
b
Societe
Generale
SA
into
Workday,
Inc.
,
144A,
9
%
,
11/13/24
.....
United
States
7,400
1,759,612
Specialty
Retail
0.3%
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Home
Depot,
Inc.
(The)
,
144A,
8.5
%
,
6/12/24
.................................
United
States
900
287,702
Total
Equity-Linked
Securities
(Cost
$
35,390,877
)
...............................
34,956,890
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
1.9%
Electric
Utilities
1.9%
NextEra
Energy,
Inc.
,
6.926
%
............................
United
States
50,000
$
1,852,000
Total
Convertible
Preferred
Stocks
(Cost
$
2,100,887
)
............................
1,852,000
Principal
Amount
*
Corporate
Bonds
4.9%
Diversified
REITs
1.0%
b
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Bond
,
144A,
4.625
%
,
12/01/29
..........................................
United
States
1,000,000
905,682
Hotels,
Restaurants
&
Leisure
0.9%
Expedia
Group,
Inc.
,
Senior
Note
,
3.25
%
,
2/15/30
.............
United
States
1,000,000
884,003
Metals
&
Mining
0.9%
b
Alcoa
Nederland
Holding
BV
,
Senior
Note
,
144A,
4.125
%
,
3/31/29
.
United
States
1,000,000
892,870
Tobacco
1.0%
Philip
Morris
International,
Inc.
,
Senior
Bond
,
5.625
%
,
9/07/33
....
United
States
950,000
955,213
Trading
Companies
&
Distributors
1.1%
b
United
Rentals
North
America,
Inc.
,
Senior
Secured
Note
,
144A,
6
%
,
12/15/29
..........................................
United
States
1,000,000
999,217
Total
Corporate
Bonds
(Cost
$
4,607,749
)
.......................................
4,636,985
Total
Long
Term
Investments
(Cost
$
92,801,927
)
................................
94,124,182
a
Short
Term
Investments
2.2%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
2.2%
c,d
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
5.036
%
....
United
States
2,047,294
2,047,294
Total
Money
Market
Funds
(Cost
$
2,047,294
)
...................................
2,047,294
Total
Short
Term
Investments
(Cost
$
2,047,294
)
.................................
2,047,294
a
Total
Investments
(Cost
$
94,849,221
)
101
.3
%
...................................
$96,171,476
Options
Written
(
0
.2
)
%
.......................................................
(226,995)
Other
Assets,
less
Liabilities
(
1
.1
)
%
...........................................
(945,455)
Net
Assets
100.0%
...........................................................
$94,999,026
a
a
a
Number
of
Contracts
Notional
Amount
#
a
a
a
Options
Written
(0.2)%
Calls
-
Exchange-Traded
Equity
Options
AbbVie,
Inc.
,
December
Strike
Price
$
160.00
,
Expires
12/15/23
...
100
1,423,900
(
200
)
Air
Products
and
Chemicals,
Inc.
,
December
Strike
Price
$
310.00
,
Expires
12/15/23
....................................
40
1,082,200
(
400
)
Analog
Devices,
Inc.
,
December
Strike
Price
$
190.00
,
Expires
12/15/23
..........................................
60
1,100,280
(
3,600
)
BP
plc
,
December
Strike
Price
$
44.00
,
Expires
12/15/23
........
180
653,220
—
Caterpillar,
Inc.
,
December
Strike
Price
$
300.00
,
Expires
12/15/23
.
35
877,520
(
105
)
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
10
See
Abbreviations
on
page
26
.
a
a
a
Number
of
Contracts
Notional
Amount
#
a
Value
a
a
a
a
a
a
Options
Written
(continued)
Calls
-
Exchange-Traded
(continued)
Equity
Options
(continued)
Charles
Schwab
Corp.
(The)
,
December
Strike
Price
$
60.00
,
Expires
12/15/23
..........................................
220
1,349,040
$
(
52,800
)
Freeport-McMoRan,
Inc.
,
December
Strike
Price
$
41.00
,
Expires
12/15/23
..........................................
300
1,119,600
(
2,700
)
International
Business
Machines
Corp.
,
December
Strike
Price
$
150.00
,
Expires
12/15/23
.............................
70
1,109,920
(
63,000
)
Northrop
Grumman
Corp.
,
January
Strike
Price
$
540.00
,
Expires
1/19/24
...........................................
20
950,320
(
1,100
)
Oracle
Corp.
,
December
Strike
Price
$
120.00
,
Expires
12/15/23
..
200
2,324,200
(
42,000
)
QUALCOMM,
Inc.
,
December
Strike
Price
$
125.00
,
Expires
12/15/23
65
838,825
(
34,125
)
Shell
plc
,
December
Strike
Price
$
75.00
,
Expires
12/15/23
......
155
1,019,900
(
465
)
TotalEnergies
SE
,
January
Strike
Price
$
75.00
,
Expires
1/19/24
...
350
2,381,750
(
7,000
)
Wells
Fargo
&
Co.
,
December
Strike
Price
$
45.00
,
Expires
12/15/23
300
1,337,700
(
19,500
)
(
226,995
)
Total
Options
Written
(Premiums
received
$
208,572
)
............................
$
(
226,995
)
#
Notional
amount
is
the
number
of
contracts
multiplied
by
contract
size,
and
may
be
multiplied
by
the
underlying
price.
May
include
currency
units,
bushels,
shares,
pounds,
barrels
or
other
units.
Currency
units
are
stated
in
U.S.
dollars
unless
otherwise
indicated.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
A
portion
or
all
of
the
security
is
held
in
connection
with
written
option
contracts
open
at
period
end.
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
November
30,
2023,
the
aggregate
value
of
these
securities
was
$37,754,659,
representing
39.7%
of
net
assets.
c
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
November
30,
2023
Franklin
Templeton
SMACS:
Series
H
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
11
a
a
Shares
a
Value
a
Management
Investment
Companies
10.4%
Capital
Markets
10.4%
a
Franklin
Dynamic
Municipal
Bond
ETF
...................................
50,000
$
1,183,000
Total
Management
Investment
Companies
(Cost
$
1,242,874
)
.....................
1,183,000
Principal
Amount
a
a
a
a
Municipal
Bonds
91.0%
Alabama
1.8%
MidCity
Improvement
District
,
Assessment
Area
,
Special
Assessment
,
2022
,
4.5
%
,
11/01/42
................
$
150,000
121,828
Assessment
Area
,
Special
Assessment
,
2022
,
4.75
%
,
11/01/49
...............
100,000
79,786
201,614
Arizona
1.3%
b
Sierra
Vista
Industrial
Development
Authority
,
American
Leadership
Academy,
Inc.
,
Revenue
,
144A,
2023
,
5.75
%
,
6/15/58
..................................
150,000
146,263
Arkansas
1.3%
Arkansas
Development
Finance
Authority
,
United
States
Steel
Corp.
,
Revenue
,
2023
,
5.7
%
,
5/01/53
....................................................
150,000
150,260
California
11.1%
c
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
...................................................
130,000
134,041
b
California
Community
Housing
Agency
,
Arbors
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
8/01/50
....................
125,000
112,299
Aster
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
2/01/43
..........
130,000
107,480
Fountains
at
Emerald
Park
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/46
...
200,000
159,561
Verdant
at
Green
Valley
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
8/01/49
.......
105,000
95,432
b
California
Municipal
Finance
Authority
,
IH
Parkside
Fairfield
LLC
,
Revenue
,
144A,
2023
B
,
Zero
Cpn.,
9/01/43
...............................................
150,000
88,316
b
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
100,000
78,893
b
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
125,000
97,304
b
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
100,000
75,145
b
CSCDA
Community
Improvement
Authority
,
Renaissance
at
City
Center
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/51
.............
110,000
99,277
Waterscape
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
9/01/46
................
135,000
108,892
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2019
B-1
,
2
,
Refunding
,
5
%
,
6/01/48
.......
100,000
101,550
1,258,190
Colorado
2.2%
Colorado
Health
Facilities
Authority
,
Christian
Living
Neighborhoods
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/38
.................................
100,000
83,693
Denver
Health
&
Hospital
Authority
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
12/01/37
....
100,000
92,069
Hunters
Overlook
Metropolitan
District
No.
5
,
GO
,
2019
A
,
5
%
,
12/01/39
..........
81,000
76,876
252,638
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
12
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
20.4%
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
5
%
,
11/01/50
.....................................................
$
100,000
$
101,390
Cross
Creek
North
Community
Development
District
,
Special
Assessment
,
2022
,
4.5
%
,
5/01/52
.........................................................
125,000
108,097
b
Florida
Development
Finance
Corp.
,
Brightline
Trains
Florida
LLC
,
Revenue
,
144A,
2019
B
,
7.375
%
,
1/01/49
.........
100,000
100,436
Mayflower
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/55
............................................
100,000
59,035
Kindred
Community
Development
District
II
,
Special
Assessment
,
2021
,
3.125
%
,
5/01/41
.........................................................
100,000
73,882
Lakeside
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.375
%
,
5/01/54
...................................................
100,000
101,672
North
AR-1
Pasco
Community
Development
District
,
Assessment
Area
3
,
Special
Assessment
,
2023
,
6
%
,
5/01/54
.......................................
100,000
98,500
North
Loop
Community
Development
District
,
Special
Assessment
,
2023
,
6.625
%
,
5/01/54
.........................................................
130,000
135,193
Palermo
Community
Development
District
,
Special
Assessment
,
2023
,
5
%
,
6/15/43
..
100,000
96,140
Palm
Coast
Park
Community
Development
District
,
Special
Assessment
,
2023
,
5.6
%
,
5/01/53
.........................................................
100,000
97,756
Prosperity
Lakes
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
...................................
160,000
162,088
Quail
Roost
Community
Development
District
,
Expansion
Area
,
Special
Assessment
,
2021
,
4
%
,
12/15/51
................................................
70,000
57,409
Ridge
at
Apopka
Community
Development
District
,
Parcel
2
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
...............................................
100,000
97,775
b
River
Hall
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
144A,
2023
A
,
6.5
%
,
5/01/54
.........................................
105,000
107,387
Sawgrass
Village
Community
Development
District
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
..............................
100,000
96,693
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.375
%
,
11/01/53
.............
155,000
157,271
b
Seaton
Creek
Reserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2023
,
5.5
%
,
6/15/53
................................
100,000
97,995
Seminole
Palms
Community
Development
District
,
Special
Assessment
,
2023
,
5.5
%
,
5/01/43
.........................................................
100,000
98,704
Stonegate
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
..................................................
150,000
151,506
Twisted
Oaks
Pointe
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
5.375
%
,
5/01/43
..............
100,000
96,549
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.125
%
,
5/01/54
..............
75,000
75,000
Westwood
of
Pasco
Community
Development
District
,
Assessments
,
Special
Assessment
,
2023
,
5.625
%
,
5/01/53
...................................
100,000
97,538
Windward
Community
Development
District
,
Special
Assessment
,
2020
A-1
,
3
%
,
5/01/25
.........................................................
60,000
58,682
2,326,698
Illinois
2.2%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
..
250,000
253,267
Indiana
1.9%
Indiana
Finance
Authority
,
Marian
University,
Inc.
,
Revenue
,
2019
A
,
5
%
,
9/15/39
...
100,000
100,760
d
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
Senior
Lien
,
2023
E
,
6.125
%
,
3/01/57
...................................................
110,000
114,188
214,948
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Iowa
2.8%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC
,
Revenue
,
2022
,
Refunding
,
5
%
,
12/01/50
.............
$
130,000
$
128,293
c
Iowa
Fertilizer
Co.
LLC
,
Revenue
,
2022
,
Refunding
,
Mandatory
Put
,
5
%
,
12/01/42
.
100,000
100,071
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
5/15/36
....
100,000
88,264
316,628
Louisiana
1.9%
Calcasieu
Parish
Memorial
Hospital
Service
District
,
Southwest
Louisiana
Healthcare
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/39
............
100,000
87,601
b
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
Parish
of
St.
Martin
,
Revenue
,
144A,
2019
,
4.4
%
,
11/01/44
...........
135,000
126,225
213,826
Maryland
3.2%
b
City
of
Baltimore
,
Harbor
Point
Special
Taxing
District
,
Tax
Allocation,
Senior
Lien
,
144A,
2019
A
,
Refunding
,
3.5
%
,
6/01/39
................................
100,000
83,238
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2020
,
4.25
%
,
7/01/50
................................
100,000
87,176
b
,d
Town
of
La
Plata
,
Heritage
Green
Special
Taxing
District
,
Special
Tax
,
144A,
2023
A
,
6.5
%
,
2/15/53
....................................................
190,000
189,730
360,144
Michigan
1.0%
City
of
Detroit
,
GO
,
2023
C
,
6
%
,
5/01/43
..................................
100,000
110,228
Minnesota
0.8%
City
of
Apple
Valley
,
PHS
Apple
Valley
Senior
Housing,
Inc.
,
Revenue
,
2021
,
4
%
,
9/01/36
.........................................................
105,000
96,022
Nevada
0.8%
Henderson
Local
Improvement
Districts
,
Local
Improvement
District
No.
T-22
,
Special
Assessment
,
2023
,
5.25
%
,
3/01/53
....................................
100,000
96,095
New
Hampshire
2.1%
New
Hampshire
Business
Finance
Authority
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
A
,
5.25
%
,
7/01/48
.....................................
250,000
241,294
New
Jersey
1.5%
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
6/01/46
....
175,000
175,487
New
York
2.2%
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4
%
,
10/01/30
.........................
100,000
96,607
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4.375
%
,
10/01/45
.....................
175,000
157,973
254,580
Ohio
9.8%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
B-2
,
2
,
Refunding
,
5
%
,
6/01/55
.............................................
1,000,000
883,542
Ohio
Housing
Finance
Agency
,
Revenue
,
2023
C
,
8
%
,
8/01/34
.................
100,000
99,208
Summit
County
Development
Finance
Authority
,
UAkronPark,
Inc.
,
Revenue
,
2023
,
6
%
,
12/01/58
........................................................
125,000
128,113
1,110,863
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
0.8%
Berks
County
Industrial
Development
Authority
,
Tower
Health
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
11/01/50
................................
$
115,000
$
61,204
Berks
County
Municipal
Authority
(The)
,
Tower
Health
Obligated
Group
,
Revenue
,
2012
A
,
5
%
,
11/01/44
...................................................
55,000
29,246
90,450
Texas
8.6%
b
City
of
Anna
,
Woods
at
Lindsey
Place
(The)
Public
Improvement
District
Area
1
,
Special
Assessment
,
144A,
2023
,
5.875
%
,
9/15/53
.........................
116,000
116,526
b
City
of
Celina
,
Chalk
Hill
Public
Improvement
District
No.
2
,
Special
Assessment
,
144A,
2023
,
6
%
,
9/01/53
........................................................
100,000
99,166
Pravin
Public
Improvement
District
,
Special
Assessment
,
144A,
2023
,
6.75
%
,
9/01/53
100,000
99,358
b
City
of
Fate
,
Williamsburg
Public
Improvement
District
No.
1
,
Special
Assessment
,
144A,
2023
,
5.375
%
,
8/15/53
.........................................
100,000
97,175
b
City
of
Hutto
,
Emory
Crossing
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.625
%
,
9/01/58
.........................
115,000
115,742
b
City
of
Kyle
,
Southwest
Kyle
Public
Improvement
District
No.
1
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
6.75
%
,
9/01/48
........................
100,000
103,964
b
City
of
Tomball
,
Raburn
Reserve
Public
Improvement
District
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.75
%
,
9/15/52
...............................
112,000
111,675
b
County
of
Hays
,
La
Cima
Public
Improvement
District
,
Special
Assessment
,
144A,
2020
,
3.25
%
,
9/15/30
...............................................
100,000
87,512
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-College
Station
Properties
LLC
,
Revenue
,
A
,
5
%
,
7/01/47
..............
50,000
45,375
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/39
.......................................................
85,000
78,895
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue,
Second
Tier
,
2019
B
,
5.5
%
,
12/01/54
................................................
20,000
18,235
973,623
Washington
1.7%
Washington
State
Housing
Finance
Commission
,
Eastside
Retirement
Association
Obligated
Group
,
Revenue
,
2023
A
,
Refunding
,
5
%
,
7/01/48
........................................................
120,000
117,338
b
Presbyterian
Retirement
Communities
Northwest
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
1/01/55
..............................................
100,000
72,831
190,169
Wisconsin
0.9%
b
Public
Finance
Authority
,
Friends
Homes
Obligated
Group
,
Revenue
,
144A,
2019
,
Refunding
,
5
%
,
9/01/49
.............................................
125,000
104,976
U.S.
Territories
10.7%
District
of
Columbia
2.2%
District
of
Columbia
,
International
School
Obligated
Group
,
Revenue
,
2019
,
5
%
,
7/01/49
............
140,000
139,522
Plenary
Infrastructure
DC
LLC
,
Revenue
,
2022
A
,
5.5
%
,
8/31/33
..............
100,000
113,737
253,259
Puerto
Rico
8.5%
Commonwealth
of
Puerto
Rico
,
GO
,
2022
A-1
,
4
%
,
7/01/41
..........................................
100,000
86,594
GO
,
2022
A-1
,
4
%
,
7/01/46
..........................................
264,000
220,032
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
15
See
Abbreviations
on
page
26
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
$
125,000
$
110,000
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
567,000
551,169
967,795
Total
U.S.
Territories
....................................................................
1,221,054
Total
Municipal
Bonds
(Cost
$
10,613,704
)
......................................
10,359,317
Total
Long
Term
Investments
(Cost
$
11,856,578
)
................................
11,542,317
a
a
a
a
a
a
Total
Investments
(Cost
$
11,856,578
)
101
.4
%
...................................
$11,542,317
Other
Assets,
less
Liabilities
(
1
.4
)
%
...........................................
(161,811)
Net
Assets
100.0%
...........................................................
$11,380,506
a
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
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
November
30,
2023,
the
aggregate
value
of
these
securities
was
$2,941,833,
representing
25.8%
of
net
assets.
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
Security
purchased
on
a
when-issued
basis.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
November
30,
2023
Franklin
Templeton
SMACS:
Series
I
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
16
a
a
Shares
a
Value
a
Common
Stocks
0.8%
Banks
0.8%
Bank
of
America
Corp.
...............................................
45,000
$
1,372,050
Total
Common
Stocks
(Cost
$
1,242,963
)
.......................................
1,372,050
a
Equity-Linked
Securities
1.8%
Automobiles
0.3%
a
Royal
Bank
of
Canada
into
General
Motors
Co.
,
144A,
12
%
,
6/18/24
.............
14,000
450,545
Banks
0.7%
a
Royal
Bank
of
Canada
into
Citigroup,
Inc.
,
144A,
10
%
,
10/15/24
................
27,000
1,192,050
Insurance
0.5%
a
BNP
Paribas
Issuance
BV
into
MetLife,
Inc.
,
144A,
9
%
,
10/23/24
................
15,000
957,645
Metals
&
Mining
0.3%
a
Royal
Bank
of
Canada
into
Freeport-McMoRan,
Inc.
,
144A,
10
%
,
5/03/24
.........
13,000
498,181
Total
Equity-Linked
Securities
(Cost
$
3,061,947
)
................................
3,098,421
Principal
Amount
a
a
a
a
Corporate
Bonds
94.7%
Aerospace
&
Defense
1.8%
a
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
3/15/26
..............................
$
500,000
496,965
Senior
Secured
Note
,
144A,
6.75
%
,
8/15/28
..............................
1,500,000
1,504,559
Senior
Secured
Note
,
144A,
6.875
%
,
12/15/30
............................
1,000,000
1,001,975
3,003,499
Automobile
Components
1.3%
a
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
...........
750,000
640,650
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note
,
5.25
%
,
7/15/31
................
1,850,000
1,606,032
2,246,682
Automobiles
2.0%
Ford
Motor
Co.
,
Senior
Bond
,
6.1
%
,
8/19/32
...............................
3,500,000
3,406,610
Banks
3.3%
Barclays
plc
,
Senior
Bond
,
5.746%
to
8/08/32,
FRN
thereafter
,
8/09/33
....................
1,400,000
1,351,243
b
Senior
Bond
,
FRN
,
6.692
%
,
(
SOFR
+
2.62
%
),
9/13/34
......................
500,000
509,678
Sub.
Bond
,
7.119%
to
6/26/33,
FRN
thereafter
,
6/27/34
.....................
1,500,000
1,495,429
Fifth
Third
Bancorp
,
Senior
Note
,
6.339%
to
7/26/28,
FRN
thereafter
,
7/27/29
......
350,000
353,542
Fifth
Third
Bank
NA
,
Senior
Note
,
5.852%
to
10/26/24,
FRN
thereafter
,
10/27/25
....
250,000
247,114
Wells
Fargo
&
Co.
,
Senior
Bond
,
6.491%
to
10/22/33,
FRN
thereafter
,
10/23/34
.....
1,500,000
1,567,249
5,524,255
Building
Products
1.8%
a
AmeriTex
HoldCo
Intermediate
LLC
,
Senior
Secured
Note
,
144A,
10.25
%
,
10/15/28
.
1,500,000
1,468,125
a
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....
1,000,000
987,220
a
Emerald
Debt
Merger
Sub
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
.....
500,000
499,375
2,954,720
Capital
Markets
1.2%
Charles
Schwab
Corp.
(The)
,
Senior
Note
,
5.643%
to
5/18/28,
FRN
thereafter
,
5/19/29
....................
500,000
498,450
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Capital
Markets
(continued)
Charles
Schwab
Corp.
(The),
(continued)
Senior
Note
,
6.196%
to
11/16/28,
FRN
thereafter
,
11/17/29
...................
$
500,000
$
507,726
Morgan
Stanley
,
Senior
Bond
,
6.627%
to
10/31/33,
FRN
thereafter
,
11/01/34
.......
1,000,000
1,059,861
2,066,037
Chemicals
2.3%
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.55
%
,
11/15/30
....................
1,000,000
1,026,164
a
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........
450,000
375,072
a
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
................
700,000
714,875
a
SCIH
Salt
Holdings,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
5/01/29
....................................
1,000,000
886,676
Senior
Secured
Note
,
144A,
4.875
%
,
5/01/28
.............................
1,000,000
906,685
3,909,472
Commercial
Services
&
Supplies
1.2%
a
APX
Group,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
2/15/27
..................
2,000,000
1,990,530
Communications
Equipment
3.1%
a
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
................
2,000,000
1,572,060
a
CommScope,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
3/01/27
.....................................
2,500,000
1,246,075
Senior
Secured
Note
,
144A,
6
%
,
3/01/26
................................
2,000,000
1,716,960
Senior
Secured
Note
,
144A,
4.75
%
,
9/01/29
..............................
1,000,000
628,355
5,163,450
Consumer
Finance
2.4%
Ford
Motor
Credit
Co.
LLC
,
Senior
Bond
,
5.113
%
,
5/03/29
........................................
1,000,000
940,361
Senior
Note
,
7.35
%
,
3/06/30
.........................................
3,000,000
3,117,066
4,057,427
Containers
&
Packaging
4.5%
a
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note
,
144A,
4
%
,
9/01/29
.......................................
1,000,000
795,731
a
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
8/15/27
.........................................................
4,000,000
2,942,200
a
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note
,
144A,
9.25
%
,
4/15/27
...................................
1,600,000
1,457,698
Senior
Secured
Note
,
144A,
7.875
%
,
8/15/26
.............................
2,500,000
2,485,717
7,681,346
Diversified
Telecommunication
Services
0.1%
a
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
144A,
5.125
%
,
5/01/27
200,000
190,519
Electric
Utilities
3.0%
a
NRG
Energy,
Inc.
,
Senior
Note
,
144A,
3.375
%
,
2/15/29
....................................
500,000
428,351
Senior
Secured
Bond
,
144A,
7
%
,
3/15/33
................................
1,500,000
1,517,646
Pacific
Gas
and
Electric
Co.
,
Senior
Bond
,
6.4
%
,
6/15/33
.....................
1,750,000
1,772,091
PG&E
Corp.
,
Senior
Secured
Note
,
5
%
,
7/01/28
............................
500,000
476,017
a
Vistra
Operations
Co.
LLC
,
Senior
Note
,
144A,
5
%
,
7/31/27
....................
1,000,000
952,405
5,146,510
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electrical
Equipment
0.4%
a
Regal
Rexnord
Corp.
,
Senior
Note
,
144A,
6.05
%
,
4/15/28
.....................
$
750,000
$
738,356
Energy
Equipment
&
Services
1.5%
a
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
....................................
2,250,000
2,327,877
Senior
Secured
Note
,
144A,
6.5
%
,
9/15/28
...............................
166,000
167,787
2,495,664
Entertainment
0.7%
a
Netflix,
Inc.
,
Senior
Bond
,
144A,
5.375
%
,
11/15/29
..........................
1,250,000
1,259,033
Food
Products
0.7%
JBS
USA
LUX
SA
/
JBS
USA
Food
Co.
/
JBS
USA
Finance,
Inc.
,
Senior
Note
,
5.75
%
,
4/01/33
.........................................................
800,000
756,463
a
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
12/15/29
......................
500,000
470,371
1,226,834
Ground
Transportation
0.4%
a
Ashtead
Capital,
Inc.
,
Senior
Bond
,
144A,
5.95
%
,
10/15/33
....................
750,000
728,932
Health
Care
Equipment
&
Supplies
3.6%
a
Bausch
&
Lomb
Escrow
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
.....
2,500,000
2,559,375
a
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....................................
2,000,000
1,811,350
Senior
Secured
Note
,
144A,
3.875
%
,
4/01/29
.............................
2,000,000
1,776,623
6,147,348
Health
Care
Providers
&
Services
19.8%
a
CHS/Community
Health
Systems,
Inc.
,
Secured
Note
,
144A,
6.125
%
,
4/01/30
..................................
1,250,000
698,981
Senior
Note
,
144A,
6.875
%
,
4/01/28
....................................
1,000,000
505,975
Senior
Secured
Note
,
144A,
8
%
,
3/15/26
................................
7,000,000
6,747,419
Senior
Secured
Note
,
144A,
5.625
%
,
3/15/27
.............................
5,000,000
4,466,718
Senior
Secured
Note
,
144A,
8
%
,
12/15/27
...............................
6,000,000
5,691,423
CVS
Health
Corp.
,
Senior
Bond
,
5.25
%
,
2/21/33
............................
50,000
49,173
a
DaVita,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
2/15/31
............................
3,700,000
2,899,635
a
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......................
750,000
667,500
a
MPH
Acquisition
Holdings
LLC
,
Senior
Secured
Note
,
144A,
5.5
%
,
9/01/28
........
1,750,000
1,522,027
Tenet
Healthcare
Corp.
,
Senior
Note
,
6.125
%
,
10/01/28
........................................
5,000,000
4,852,050
Senior
Secured
Note
,
6.125
%
,
6/15/30
..................................
2,000,000
1,950,725
a
Senior
Secured
Note
,
144A,
6.75
%
,
5/15/31
..............................
3,500,000
3,508,305
33,559,931
Health
Care
REITs
0.4%
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
5
%
,
10/15/27
...
800,000
638,441
Hotel
&
Resort
REITs
0.2%
Service
Properties
Trust
,
Senior
Note
,
4.35
%
,
10/01/24
.......................
300,000
299,855
Hotels,
Restaurants
&
Leisure
8.1%
a
Caesars
Entertainment,
Inc.
,
Senior
Note
,
144A,
8.125
%
,
7/01/27
....................................
2,000,000
2,039,216
Senior
Note
,
144A,
4.625
%
,
10/15/29
...................................
1,000,000
879,360
Senior
Secured
Note
,
144A,
7
%
,
2/15/30
................................
1,000,000
1,001,850
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
a
Carnival
Corp.
,
Senior
Note
,
144A,
10.5
%
,
6/01/30
..........................
$
3,000,000
$
3,201,384
a
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.....................................
850,000
718,076
Senior
Secured
Note
,
144A,
4.625
%
,
1/15/29
.............................
1,000,000
889,255
a
Penn
Entertainment,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
7/01/29
.................
200,000
166,192
a
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond
,
144A,
5.25
%
,
5/15/27
.........................................................
5,000,000
4,766,528
13,661,861
Household
Durables
0.5%
Shea
Homes
LP
/
Shea
Homes
Funding
Corp.
,
Senior
Note
,
4.75
%
,
4/01/29
.......
1,000,000
893,552
Household
Products
0.1%
a
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
12/31/27
...................
200,000
194,351
Independent
Power
and
Renewable
Electricity
Producers
2.5%
a
Calpine
Corp.
,
Senior
Note
,
144A,
4.625
%
,
2/01/29
..........................
2,000,000
1,813,157
a
,c
Vistra
Corp.
,
Junior
Sub.
Bond
,
144A,
8%
to
10/14/26,
FRN
thereafter
,
Perpetual
....
2,500,000
2,447,675
4,260,832
Machinery
0.1%
a
TK
Elevator
US
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
.........
200,000
190,199
Media
2.7%
a
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
6/01/29
.....................................
300,000
236,671
Senior
Secured
Note
,
144A,
5.125
%
,
8/15/27
.............................
900,000
833,990
DISH
DBS
Corp.
,
Senior
Note
,
5.875
%
,
11/15/24
............................
700,000
615,230
a
Stagwell
Global
LLC
,
Senior
Note
,
144A,
5.625
%
,
8/15/29
.....................
200,000
175,393
a
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
6/01/27
.....
2,750,000
2,713,150
4,574,434
Metals
&
Mining
2.3%
ArcelorMittal
SA
,
Senior
Bond
,
6.8
%
,
11/29/32
..............................
500,000
515,191
a
Cleveland-Cliffs,
Inc.
,
Senior
Bond
,
144A,
4.875
%
,
3/01/31
....................
150,000
129,049
a
First
Quantum
Minerals
Ltd.
,
Senior
Note
,
144A,
6.875
%
,
3/01/26
....................................
400,000
345,128
Senior
Note
,
144A,
8.625
%
,
6/01/31
....................................
750,000
607,500
a
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...................................
800,000
698,577
Senior
Bond
,
144A,
6.125
%
,
4/15/32
...................................
1,000,000
967,233
a
Mineral
Resources
Ltd.
,
Senior
Note
,
144A,
8.5
%
,
5/01/30
....................
550,000
556,490
3,819,168
Oil,
Gas
&
Consumable
Fuels
6.2%
a
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
11
%
,
4/15/25
......................................
600,000
606,477
Senior
Note
,
144A,
8.125
%
,
1/15/27
....................................
2,200,000
2,072,838
Senior
Note
,
144A,
9.75
%
,
7/15/28
.....................................
1,000,000
968,290
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note
,
3.7
%
,
11/15/29
......
$
1,250,000
$
1,139,669
a
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
7
%
,
6/15/25
..............
300,000
297,030
a
Civitas
Resources,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
7/01/31
....................
750,000
777,164
a
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Note
,
144A,
6
%
,
4/15/30
........
1,000,000
933,562
a
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
......................
200,000
190,670
Occidental
Petroleum
Corp.
,
Senior
Note
,
8.875
%
,
7/15/30
....................
1,250,000
1,424,844
a
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note
,
144A,
8.125
%
,
6/01/28
..........
1,000,000
992,362
Williams
Cos.,
Inc.
(The)
,
Senior
Bond
,
5.65
%
,
3/15/33
.......................
1,000,000
1,003,824
10,406,730
Passenger
Airlines
7.3%
a
American
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
11.75
%
,
7/15/25
.............................
1,350,000
1,478,264
d
Senior
Secured
Note
,
144A,
8.5
%
,
5/15/29
...............................
1,500,000
1,548,251
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
a
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
...............................
3,333,333
3,283,843
a
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.
3,000,000
2,882,334
a
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/20/27
....................................
1,875,000
1,866,204
a
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
4/15/29
...............
1,500,000
1,340,040
12,398,936
Personal
Care
Products
0.4%
Haleon
US
Capital
LLC
,
Senior
Note
,
3.625
%
,
3/24/32
.......................
750,000
661,175
Pharmaceuticals
4.5%
a
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
....................
5,500,000
5,315,970
a
Bausch
Health
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
5.5
%
,
11/01/25
............
1,500,000
1,308,427
a
,e
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/01/27
.............
300,000
189,263
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
8.125
%
,
9/15/31
....
800,000
844,942
7,658,602
Semiconductors
&
Semiconductor
Equipment
0.1%
Micron
Technology,
Inc.
,
Senior
Bond
,
5.875
%
,
2/09/33
.......................
200,000
200,461
Software
1.8%
a
Cloud
Software
Group,
Inc.
,
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/29
...........
2,000,000
1,843,247
a
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........................
1,200,000
1,037,585
Workday,
Inc.
,
Senior
Bond
,
3.8
%
,
4/01/32
................................
150,000
133,488
3,014,320
Specialized
REITs
0.1%
American
Tower
Corp.
,
Senior
Note
,
4.05
%
,
3/15/32
.........................
250,000
223,995
Specialty
Retail
0.3%
Lowe's
Cos.,
Inc.
,
Senior
Bond
,
5
%
,
4/15/33
...............................
60,000
58,721
a
Michaels
Cos.,
Inc.
(The)
,
Senior
Note
,
144A,
7.875
%
,
5/01/29
....................................
350,000
199,234
Senior
Secured
Note
,
144A,
5.25
%
,
5/01/28
..............................
300,000
219,365
477,320
Textiles,
Apparel
&
Luxury
Goods
0.3%
a
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
..........................
600,000
566,168
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
21
See
Abbreviations
on
page
26
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Tobacco
1.4%
BAT
Capital
Corp.
,
Senior
Bond
,
4.742
%
,
3/16/32
........................................
$
250,000
$
231,775
Senior
Bond
,
7.75
%
,
10/19/32
........................................
250,000
276,577
Senior
Bond
,
6.421
%
,
8/02/33
........................................
900,000
917,241
Senior
Note
,
3.557
%
,
8/15/27
.........................................
950,000
889,796
2,315,389
Trading
Companies
&
Distributors
0.3%
United
Rentals
North
America,
Inc.
,
Senior
Bond
,
5.25
%
,
1/15/30
...............
500,000
478,133
Total
Corporate
Bonds
(Cost
$
160,663,913
)
.....................................
160,431,077
Total
Long
Term
Investments
(Cost
$
164,968,823
)
...............................
164,901,548
a
a
a
a
a
Short
Term
Investments
2.6%
Shares
a
Money
Market
Funds
2.6%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
5.036
%
..................
4,417,407
4,417,407
Total
Money
Market
Funds
(Cost
$
4,417,407
)
...................................
4,417,407
Total
Short
Term
Investments
(Cost
$
4,417,407
)
.................................
4,417,407
a
Total
Investments
(Cost
$
169,386,230
)
99
.9
%
...................................
$169,318,955
Other
Assets,
less
Liabilities
0
.1
%
.............................................
82,641
Net
Assets
100.0%
...........................................................
$169,401,596
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
November
30,
2023,
the
aggregate
value
of
these
securities
was
$124,539,544,
representing
73.5%
of
net
assets.
b
The
coupon
rate
shown
represents
the
rate
at
period
end.
c
Perpetual
security
with
no
stated
maturity
date.
d
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
e
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
f
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
22
At
November
30,
2023,
the
Fund
had
the
following futures
contracts
outstanding.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
U.S.
Treasury
10
Year
Notes
....................
Long
130
$
14,273,594
3/19/24
$
96,267
U.S.
Treasury
Ultra
Bonds
......................
Long
80
9,840,000
3/19/24
192,622
Total
Futures
Contracts
......................................................................
$288,889
*
As
of
period
end.
Franklin
Strategic
Series
23
Quarterly
Schedules
of
Investments
Notes
to
Schedules
of
Investments
(unaudited)
1.
Organization
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
ten
separate funds, four
of
which
are
included
in
this
report
(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.
2. Financial
Instrument
Valuation
The
Funds’
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Funds
calculate
the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds'
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price
of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m. Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds’
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Certain
derivative
financial
instruments
trade
in
the
OTC
market.
The
Funds’
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Funds’ net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Funds
have procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
24
Quarterly
Schedules
of
Investments
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
November
30,
2023,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
"market
level
fair
value").
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds’
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds’
portfolio securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds for
financial
reporting
purposes.
3.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
During
the
period
ended
November
30,
2023,
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
Templeton
SMACS:
Series
E
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.036%
$1,232,610
$22,321,981
$(21,507,297)
$—
$—
$2,047,294
2,047,294
$22,710
Total
Affiliated
Securities
...
$1,232,610
$22,321,981
$(21,507,297)
$—
$—
$2,047,294
$22,710
Franklin
Templeton
SMACS:
Series
H
Non-Controlled
Affiliates
Dividends
Franklin
Dynamic
Municipal
Bond
ETF
...................
$823,989
$355,454
$—
$—
$3,557
$1,183,000
50,000
$10,331
Total
Affiliated
Securities
...
$823,989
$355,454
$—
$—
$3,557
$1,183,000
$10,331
2. Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
25
Quarterly
Schedules
of
Investments
4. Fair
Value
Measurements
The
Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Funds’
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
• Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
• Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
• Level
3
–
significant
unobservable
inputs
(including
the
Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
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
November
30,
2023,
in
valuing
the
Funds’
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Templeton
SMACS:
Series
I
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.036%
$2,191,463
$31,869,051
$(29,643,107)
$—
$—
$4,417,407
4,417,407
$35,818
Total
Affiliated
Securities
...
$2,191,463
$31,869,051
$(29,643,107)
$—
$—
$4,417,407
$35,818
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
a
Municipal
Bonds
.........................
$
—
$
23,186,244
$
—
$
23,186,244
Short
Term
Investments
...................
—
4,900,000
—
4,900,000
Total
Investments
in
Securities
...........
$—
$28,086,244
$—
$28,086,244
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
52,678,307
—
—
52,678,307
Equity-Linked
Securities
...................
—
34,956,890
—
34,956,890
Convertible
Preferred
Stocks
................
1,852,000
—
—
1,852,000
Corporate
Bonds
........................
—
4,636,985
—
4,636,985
Short
Term
Investments
...................
2,047,294
—
—
2,047,294
Total
Investments
in
Securities
...........
$56,577,601
$39,593,875
$—
$96,171,476
Liabilities:
Other
Financial
Instruments:
Options
written
..........................
$
226,995
$
—
$
—
$
226,995
Total
Other
Financial
Instruments
.........
$226,995
$—
$—
$226,995
3.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
26
Quarterly
Schedules
of
Investments
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
H
Assets:
Investments
in
Securities:
a
Management
Investment
Companies
.........
$
1,183,000
$
—
$
—
$
1,183,000
Municipal
Bonds
.........................
—
10,359,317
—
10,359,317
Total
Investments
in
Securities
...........
$1,183,000
$10,359,317
$—
$11,542,317
Franklin
Templeton
SMACS:
Series
I
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
1,372,050
—
—
1,372,050
Equity-Linked
Securities
...................
—
3,098,421
—
3,098,421
Corporate
Bonds
........................
—
160,431,077
—
160,431,077
Short
Term
Investments
...................
4,417,407
—
—
4,417,407
Total
Investments
in
Securities
...........
$5,789,457
$163,529,498
$—
$169,318,955
Other
Financial
Instruments:
Futures
contracts
........................
$288,889
$—
$—
$288,889
Total
Other
Financial
Instruments
.........
$288,889
$—
$—
$288,889
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
Selected
Portfolio
ADR
American
Depositary
Receipt
ETF
Exchange-Traded
Fund
FRN
Floating
Rate
Note
GO
General
Obligation
LOC
Letter
of
Credit
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
4. Fair
Value
Measurements
(continued)
For
additional
information
on
the
Funds'
significant
accounting
policies,
please
refer
to
the Funds'
most
recent
semiannual
or
annual
shareholder
report.