Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
FSS3-Q3PH
1
Schedules
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
2
Franklin
Templeton
SMACS:
Series
E
5
Franklin
Templeton
SMACS:
Series
H
12
Franklin
Templeton
SMACS:
Series
I
17
Notes
to
Schedules
of
Investments
24
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2024
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
Corporate
Bonds
1.0%
Diversified
Consumer
Services
1.0%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
$
250,000
$
225,220
Total
Corporate
Bonds
(Cost
$
226,956
)
........................................
225,220
Municipal
Bonds
97.6%
California
96.4%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
................................
125,000
116,223
Beaumont
Unified
School
District
,
Community
Facilities
District
No.
2020-1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5
%
,
9/01/53
....................
150,000
148,079
a
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
...................................................
1,000,000
1,045,676
b
California
Community
Housing
Agency
,
Annadel
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
..................
1,200,000
992,626
Mira
Vista
Hills
Apartments
,
Revenue
,
144A,
2021
A
,
4
%
,
2/01/56
.............
300,000
211,149
Serenity
at
Larkspur
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
2/01/50
.........
1,000,000
699,674
California
Educational
Facilities
Authority
,
St.
Mary's
College
of
California
,
Revenue
,
2023
A
,
Refunding
,
5.5
%
,
10/01/53
....................................
1,000,000
1,031,262
California
Health
Facilities
Financing
Authority
,
Episcopal
Communities
&
Services
for
Seniors
Obligated
Group
,
Revenue
,
2024
B
,
5.25
%
,
11/15/53
.................
500,000
524,900
California
Municipal
Finance
Authority
,
Special
Tax
,
2022
C
,
6.25
%
,
9/01/52
...................................
150,000
158,216
Special
Tax
,
2022
D
,
6.125
%
,
9/01/52
..................................
150,000
156,274
Special
Tax
,
2023
A
,
5.5
%
,
9/01/53
....................................
100,000
101,627
Special
Tax
,
2023
C
,
5.25
%
,
9/01/53
...................................
1,000,000
950,652
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6
%
,
9/01/52
................
150,000
157,274
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/48
.........................
100,000
100,222
b
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/49
.
125,000
118,794
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
6
%
,
9/01/52
....................................................
150,000
153,845
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.8
%
,
9/01/53
........................................................
1,000,000
1,030,616
b
IH
Parkside
Fairfield
LLC
,
Revenue
,
144A,
2023
B
,
Zero
Cpn.,
9/01/43
..........
250,000
171,085
b
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.75
%
,
5/01/54
.
200,000
202,831
b
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.375
%
,
6/15/64
........
250,000
261,546
b
,c
California
Pollution
Control
Financing
Authority
,
Rialto
Bioenergy
Facility
LLC
,
Revenue
,
144A,
2018
,
7.5
%
,
12/01/40
..................................
75,000
5,625
b
California
Public
Finance
Authority
,
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/46
.................................
1,250,000
1,138,446
b
California
School
Finance
Authority
,
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.875
%
,
6/01/53
.......................
100,000
101,206
California
Statewide
Communities
Development
Authority
,
Special
Tax
,
2023
A
,
5.25
%
,
9/01/51
...................................
100,000
98,455
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
100,000
102,758
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........
150,000
152,610
Community
Facilities
District
No.
2022-03
,
Special
Tax
,
2023
,
5
%
,
9/01/53
.......
150,000
141,760
Community
Facilities
District
No.
2022-07
Improvement
Area
No.
1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
................................................
150,000
148,304
Community
Infrastructure
Program
Assessment
District
No.
20-02
,
Special
Assessment
,
2023
,
5.75
%
,
9/02/53
...................................
1,000,000
932,596
b
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5.25
%
,
12/01/56
.................................................
250,000
251,121
b
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/49
.............
100,000
100,305
b
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/52
.............
200,000
200,344
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
3
See
Abbreviations
on
page
28
.
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
$
1,029,749
b
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
2
,
Special
Tax
,
144A,
2023
A
,
5.25
%
,
9/01/48
............................................
965,000
925,505
District
No.
2020-1
Shoreline
Tax
Zone
1
,
Special
Tax
,
144A,
2023
C
,
5.75
%
,
9/01/53
1,500,000
1,514,398
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
5
,
Special
Tax
,
2023
,
5.375
%
,
9/01/51
....................................
1,250,000
1,261,250
City
of
Lake
Elsinore
,
Community
Facilities
District
No.
2006-8
,
Special
Tax
,
2023
,
5
%
,
9/01/53
.........................................................
150,000
150,048
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
202,652
b
CSCDA
Community
Improvement
Authority
,
CTR
City
Anaheim
,
Revenue
,
144A,
2020
A
,
5
%
,
1/01/54
....................
400,000
321,412
Dublin
,
Revenue
,
144A,
2021
B
,
4
%
,
2/01/57
.............................
140,000
102,291
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
1,504,677
Golden
State
Tobacco
Securitization
Corp.
,
Revenue
,
2022
A-1
,
Refunding
,
5
%
,
6/01/51
.........................................................
200,000
205,738
Orange
County
Community
Facilities
District
,
Community
Facilities
District
No.
2023-1
,
Special
Tax
,
2023
A
,
5.5
%
,
8/15/53
....................................
1,000,000
1,018,404
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
..................................
1,000,000
999,967
Washington
Township
Health
Care
District
,
Revenue
,
2023
A
,
5.75
%
,
7/01/48
......
150,000
161,539
21,103,731
Florida
0.5%
a
,b
Florida
Development
Finance
Corp.
,
AAF
Operations
Holdings
LLC
,
Revenue
,
144A,
2024
,
Refunding
,
Mandatory
Put
,
12
%
,
7/15/28
...........................
100,000
104,000
U.S.
Territories
0.7%
Puerto
Rico
0.7%
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
158,506
154,345
Total
Municipal
Bonds
(Cost
$
21,047,581
)
......................................
21,362,076
Total
Long
Term
Investments
(Cost
$
21,274,537
)
................................
21,587,296
a
a
a
a
a
Short
Term
Investments
0.5%
Municipal
Bonds
0.5%
California
0.5%
d
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
3.8
%
,
5/15/48
...
100,000
100,000
Total
Municipal
Bonds
(Cost
$
100,000
)
.........................................
100,000
Total
Short
Term
Investments
(Cost
$
100,000
)
..................................
100,000
a
Total
Investments
(Cost
$
21,374,537
)
99.1
%
....................................
$21,687,296
Other
Assets,
less
Liabilities
0.9
%
.............................................
205,898
Net
Assets
100.0%
...........................................................
$21,893,194
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
CH
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
4
a
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
May
31,
2024,
the
aggregate
value
of
these
securities
was
$7,422,358,
representing
33.9%
of
net
assets.
c
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
d
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),
May
31,
2024
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
46.5%
Aerospace
&
Defense
1.4%
Lockheed
Martin
Corp.
.................................
United
States
2,500
$
1,175,850
Northrop
Grumman
Corp.
...............................
United
States
2,000
901,540
RTX
Corp.
..........................................
United
States
3,998
431,024
2,508,414
Banks
4.4%
Citigroup,
Inc.
........................................
United
States
41,500
2,585,865
Fifth
Third
Bancorp
....................................
United
States
27,000
1,010,340
Truist
Financial
Corp.
..................................
United
States
45,000
1,698,750
US
Bancorp
.........................................
United
States
60,000
2,433,000
7,727,955
Beverages
3.3%
Coca-Cola
Co.
(The)
...................................
United
States
65,000
4,090,450
PepsiCo,
Inc.
........................................
United
States
10,000
1,729,000
5,819,450
Biotechnology
2.1%
AbbVie,
Inc.
.........................................
United
States
13,000
2,096,120
a
Amgen,
Inc.
.........................................
United
States
5,000
1,529,250
3,625,370
Building
Products
0.8%
Johnson
Controls
International
plc
.........................
United
States
20,000
1,438,200
Capital
Markets
0.9%
Charles
Schwab
Corp.
(The)
.............................
United
States
22,000
1,612,160
Chemicals
3.0%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
17,000
4,533,900
LyondellBasell
Industries
NV,
A
...........................
United
States
7,000
695,940
5,229,840
Communications
Equipment
0.8%
Cisco
Systems,
Inc.
...................................
United
States
30,000
1,395,000
Electric
Utilities
2.1%
American
Electric
Power
Co.,
Inc.
.........................
United
States
17,000
1,534,250
NextEra
Energy,
Inc.
...................................
United
States
7,501
600,230
Xcel
Energy,
Inc.
......................................
United
States
30,000
1,663,500
3,797,980
Health
Care
Providers
&
Services
0.8%
CVS
Health
Corp.
.....................................
United
States
25,000
1,490,000
Household
Products
1.4%
Procter
&
Gamble
Co.
(The)
.............................
United
States
15,000
2,468,100
Industrial
Conglomerates
0.6%
Honeywell
International,
Inc.
.............................
United
States
5,100
1,031,169
IT
Services
0.9%
b
International
Business
Machines
Corp.
.....................
United
States
10,000
1,668,500
Metals
&
Mining
2.9%
Freeport-McMoRan,
Inc.
................................
United
States
30,000
1,581,900
Rio
Tinto
plc,
ADR
.....................................
Australia
50,000
3,505,000
5,086,900
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)
Multi-Utilities
0.5%
DTE
Energy
Co.
......................................
United
States
7,500
$
873,975
Oil,
Gas
&
Consumable
Fuels
4.1%
Chevron
Corp.
.......................................
United
States
15,000
2,434,500
Shell
plc,
ADR
........................................
United
States
30,000
2,183,400
TotalEnergies
SE,
ADR
.................................
France
35,000
2,559,200
7,177,100
Pharmaceuticals
7.6%
Johnson
&
Johnson
...................................
United
States
33,000
4,840,110
Merck
&
Co.,
Inc.
.....................................
United
States
45,000
5,649,300
Pfizer,
Inc.
...........................................
United
States
100,000
2,866,000
13,355,410
Semiconductors
&
Semiconductor
Equipment
3.8%
Analog
Devices,
Inc.
...................................
United
States
20,000
4,689,800
Broadcom,
Inc.
.......................................
United
States
1,000
1,328,550
a
Intel
Corp.
...........................................
United
States
25,000
771,250
6,789,600
Software
1.7%
b
Oracle
Corp.
.........................................
United
States
25,000
2,929,750
Specialty
Retail
1.4%
Home
Depot,
Inc.
(The)
.................................
United
States
7,500
2,511,525
Tobacco
2.0%
Philip
Morris
International,
Inc.
...........................
United
States
35,000
3,548,300
Total
Common
Stocks
(Cost
$73,636,699)
......................................
82,084,698
Equity-Linked
Securities
45.9%
Aerospace
&
Defense
2.2%
c
Barclays
Bank
plc
into
Northrop
Grumman
Corp.,
144A,
7%,
11/08/24
..........................................
United
States
1,800
830,358
c
BNP
Paribas
Issuance
BV
into
Northrop
Grumman
Corp.,
144A,
7.5%,
9/10/24
......................................
United
States
2,000
872,363
c
Merrill
Lynch
International
&
Co.
CV
into
RTX
Corp.,
144A,
7.5%,
10/02/24
..........................................
United
States
12,000
1,029,301
c
Wells
Fargo
Bank
NA
into
Boeing
Co.
(The),
144A,
9%,
6/17/25
..
United
States
6,300
1,102,908
3,834,930
Air
Freight
&
Logistics
0.9%
c
J.P.
Morgan
Structured
Products
BV
into
United
Parcel
Service,
Inc.,
144A,
9%,
10/22/24
..................................
United
States
5,500
780,590
c
Merrill
Lynch
International
&
Co.
CV
into
United
Parcel
Service,
Inc.,
144A,
8.5%,
10/02/24
.................................
United
States
5,700
805,710
1,586,300
Automobiles
0.3%
c
Barclays
Bank
plc
into
General
Motors
Co.,
144A,
10%,
7/17/24
..
United
States
11,000
458,284
Banks
2.1%
c
Barclays
Bank
plc
into
Citigroup,
Inc.,
144A,
9%,
7/03/24
........
United
States
5,000
278,186
c
Barclays
Bank
plc
into
US
Bancorp,
144A,
10%,
8/23/24
........
United
States
16,500
670,490
c
BNP
Paribas
Issuance
BV
into
Bank
of
America
Corp.,
144A,
8.5%,
2/26/25
...........................................
United
States
35,000
1,259,681
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)
Banks
(continued)
c
Citigroup
Global
Markets
Holdings,
Inc.
into
Bank
of
America
Corp.,
144A,
8%,
8/16/24
...................................
United
States
8,400
$
300,211
c
Merrill
Lynch
International
&
Co.
CV
into
Fifth
Third
Bancorp,
144A,
10%,
3/10/25
.......................................
United
States
12,000
427,140
c
Wells
Fargo
Bank
NA
into
Citigroup,
Inc.,
144A,
10%,
2/25/25
....
United
States
13,000
769,573
3,705,281
Biotechnology
0.3%
c
Barclays
Bank
plc
into
Amgen,
Inc.,
144A,
8%,
9/20/24
.........
United
States
2,100
596,186
Broadline
Retail
0.7%
c
Goldman
Sachs
International
Bank
into
Amazon.com,
Inc.,
144A,
9%,
11/20/24
.......................................
United
States
10,000
1,311,572
Building
Products
1.7%
c
J.P.
Morgan
Structured
Products
BV
into
Johnson
Controls
International
plc,
144A,
8%,
9/09/24
......................
United
States
15,000
987,636
c
Wells
Fargo
Bank
NA
into
Johnson
Controls
International
plc,
144A,
9%,
12/10/24
.......................................
United
States
35,000
2,013,592
3,001,228
Capital
Markets
2.4%
c
BNP
Paribas
Issuance
BV
into
Goldman
Sachs
Group,
Inc.
(The),
144A,
7.5%,
8/19/24
.................................
United
States
1,700
685,631
c
Goldman
Sachs
International
Bank
into
Morgan
Stanley,
144A,
9%,
12/24/24
..........................................
United
States
2,300
216,653
c
Merrill
Lynch
International
&
Co.
CV
into
Charles
Schwab
Corp.
(The),
144A,
9%,
2/25/25
..............................
United
States
32,000
2,170,195
c
Merrill
Lynch
International
&
Co.
CV
into
Morgan
Stanley,
144A,
10%,
6/04/24
.......................................
United
States
1,000
93,884
c
Societe
Generale
SA
into
Goldman
Sachs
Group,
Inc.
(The),
144A,
8.5%,
7/12/24
......................................
United
States
1,500
532,206
c
UBS
AG
into
Charles
Schwab
Corp.
(The),
144A,
10%,
7/17/24
...
United
States
8,100
513,629
4,212,198
Chemicals
2.7%
c
Barclays
Bank
plc
into
Air
Products
and
Chemicals,
Inc.,
144A,
8.5%,
3/10/25
...........................................
United
States
7,000
1,728,505
c
National
Bank
of
Canada
into
Albemarle
Corp.,
144A,
12%,
3/31/25
United
States
24,700
3,074,596
4,803,101
Communications
Equipment
1.8%
c
Mizuho
Markets
Cayman
LP
into
Cisco
Systems,
Inc.,
144A,
7.5%,
7/23/24
...........................................
United
States
12,000
559,959
c
Royal
Bank
of
Canada
into
Cisco
Systems,
Inc.,
144A,
8%,
9/03/24
United
States
15,000
707,523
c
UBS
AG
into
Cisco
Systems,
Inc.,
144A,
8%,
6/10/25
..........
United
States
30,000
1,415,018
c
UBS
AG
into
Cisco
Systems,
Inc.,
144A,
8.5%,
6/20/24
.........
United
States
11,000
513,484
3,195,984
Consumer
Staples
Distribution
&
Retail
1.0%
c
Barclays
Bank
plc
into
Target
Corp.,
144A,
8.5%,
10/08/24
......
United
States
5,800
830,875
c
UBS
AG
into
Target
Corp.,
144A,
9%,
9/05/24
................
United
States
5,900
902,252
1,733,127
Containers
&
Packaging
0.7%
c
Mizuho
Markets
Cayman
LP
into
International
Paper
Co.,
144A,
10%,
1/22/25
.......................................
United
States
30,000
1,203,164
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)
Electric
Utilities
2.0%
c
Mizuho
Markets
Cayman
LP
into
NextEra
Energy,
Inc.,
144A,
9%,
4/08/25
...........................................
United
States
24,000
$
1,642,021
c
Wells
Fargo
Bank
NA
into
NextEra
Energy,
Inc.,
144A,
8%,
5/20/25
United
States
25,000
1,868,325
3,510,346
Ground
Transportation
0.2%
c
Merrill
Lynch
BV
into
Union
Pacific
Corp.,
144A,
8%,
11/05/24
....
United
States
1,800
408,863
Hotels,
Restaurants
&
Leisure
0.1%
c
Wells
Fargo
Bank
NA
into
Starbucks
Corp.,
144A,
8%,
3/04/25
...
United
States
3,000
249,492
Insurance
1.3%
c
BNP
Paribas
Issuance
BV
into
MetLife,
Inc.,
144A,
9%,
10/23/24
..
United
States
6,800
468,672
c
Citigroup
Global
Markets
Holdings,
Inc.
into
MetLife,
Inc.,
144A,
9.5%,
7/17/24
......................................
United
States
4,500
276,892
c
JPMorgan
Chase
Bank
NA
into
MetLife,
Inc.,
144A,
8%,
3/25/25
..
United
States
23,000
1,625,985
2,371,549
Interactive
Media
&
Services
1.8%
c
JPMorgan
Chase
Bank
NA
into
Alphabet,
Inc.,
144A,
8%,
3/18/25
.
United
States
15,000
2,179,741
c
JPMorgan
Chase
Bank
NA
into
Alphabet,
Inc.,
144A,
8%,
3/28/25
.
United
States
6,000
921,485
3,101,226
IT
Services
0.9%
c
Barclays
Bank
plc
into
International
Business
Machines
Corp.,
144A,
8.5%,
6/09/25
......................................
United
States
9,500
1,598,547
Media
1.4%
c
BNP
Paribas
Issuance
BV
into
Comcast
Corp.,
144A,
8%,
1/15/25
United
States
32,000
1,303,057
c
J.P.
Morgan
Structured
Products
BV
into
Comcast
Corp.,
144A,
8%,
8/13/24
...........................................
United
States
10,000
403,200
c
J.P.
Morgan
Structured
Products
BV
into
Comcast
Corp.,
144A,
8%,
9/12/24
...........................................
United
States
3,000
122,093
c
Royal
Bank
of
Canada
into
Comcast
Corp.,
144A,
8%,
7/12/24
...
United
States
18,000
721,640
2,549,990
Metals
&
Mining
2.2%
c
Citigroup
Global
Markets
Holdings,
Inc.
into
Freeport-McMoRan,
Inc.,
144A,
10%,
5/20/25
..............................
United
States
29,000
1,503,931
c
Mizuho
Markets
Cayman
LP
into
Freeport-McMoRan,
Inc.,
144A,
11%,
12/10/24
......................................
United
States
9,600
429,423
c
UBS
AG
into
Newmont
Corp.,
144A,
11%,
1/16/25
.............
United
States
50,000
2,026,047
3,959,401
Multi-Utilities
0.8%
c
Wells
Fargo
Bank
NA
into
Dominion
Energy,
Inc.,
144A,
9%,
1/10/25
United
States
26,000
1,368,773
Oil,
Gas
&
Consumable
Fuels
5.3%
c
BNP
Paribas
Issuance
BV
into
BP
plc,
144A,
8.5%,
5/15/25
......
United
States
48,000
1,857,497
c
BNP
Paribas
Issuance
BV
into
Exxon
Mobil
Corp.,
144A,
8.5%,
4/01/25
...........................................
United
States
9,000
1,039,551
c
Citigroup
Global
Markets
Holdings,
Inc.
into
Exxon
Mobil
Corp.,
144A,
9%,
3/12/25
...................................
United
States
19,000
2,085,726
c
J.P.
Morgan
Structured
Products
BV
into
Exxon
Mobil
Corp.,
144A,
9%,
9/24/24
........................................
United
States
2,300
269,027
c
Royal
Bank
of
Canada
into
Shell
plc,
144A,
8%,
4/28/25
........
United
States
55,000
4,032,860
9,284,661
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Equity-Linked
Securities
(continued)
Pharmaceuticals
1.9%
c
BNP
Paribas
Issuance
BV
into
Pfizer,
Inc.,
144A,
8.5%,
6/10/24
..
United
States
19,000
$
545,578
c
Mizuho
Markets
Cayman
LP
into
Bristol-Myers
Squibb
Co.,
144A,
9.5%,
5/08/25
......................................
United
States
37,000
1,575,904
c
National
Bank
of
Canada
into
Bristol-Myers
Squibb
Co.,
144A,
8%,
9/05/24
...........................................
United
States
20,000
834,486
c
Societe
Generale
SA
into
Pfizer,
Inc.,
144A,
8.5%,
8/02/24
......
United
States
15,000
431,407
3,387,375
Semiconductors
&
Semiconductor
Equipment
7.1%
c
Citigroup
Global
Markets
Holdings,
Inc.
into
Intel
Corp.,
144A,
10%,
10/03/24
..........................................
United
States
1,600
50,835
c
Goldman
Sachs
International
Bank
into
Texas
Instruments,
Inc.,
144A,
9%,
11/10/25
..................................
United
States
8,000
1,378,145
c
Mizuho
Markets
Cayman
LP
into
Microchip
Technology,
Inc.,
144A,
10%,
11/12/24
......................................
United
States
9,000
794,413
c
Mizuho
Markets
Cayman
LP
into
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.,
144A,
10%,
10/22/24
...............
Taiwan
9,000
888,944
c
Morgan
Stanley
Finance
II
Ltd.
into
Microchip
Technology,
Inc.,
144A,
10%,
3/03/25
..................................
United
States
11,500
1,032,959
c
National
Bank
of
Canada
into
Broadcom,
Inc.,
144A,
11.5%,
5/13/25
United
States
3,000
3,823,909
c
Royal
Bank
of
Canada
into
Microchip
Technology,
Inc.,
144A,
10%,
4/01/25
...........................................
United
States
16,000
1,527,130
c
Royal
Bank
of
Canada
into
Texas
Instruments,
Inc.,
144A,
8%,
6/11/25
...........................................
United
States
8,000
1,581,413
c
UBS
AG
into
Texas
Instruments,
Inc.,
144A,
8.5%,
8/07/24
......
United
States
700
133,424
c
Wells
Fargo
Bank
NA
into
Intel
Corp.,
144A,
11%,
2/14/25
.......
United
States
39,000
1,318,330
12,529,502
Software
2.6%
c
Barclays
Bank
plc
into
Oracle
Corp.,
144A,
8.5%,
2/05/25
.......
United
States
13,000
1,441,780
c
Mizuho
Markets
Cayman
LP
into
Oracle
Corp.,
144A,
8.5%,
2/10/25
United
States
7,000
803,292
c
Societe
Generale
SA
into
Workday,
Inc.,
144A,
9%,
11/13/24
.....
United
States
7,400
1,576,831
c
UBS
AG
into
Oracle
Corp.,
144A,
9%,
6/10/25
................
United
States
5,800
694,245
4,516,148
Specialty
Retail
0.2%
c
Citigroup
Global
Markets
Holdings,
Inc.
into
Home
Depot,
Inc.
(The),
144A,
8.5%,
6/12/24
.................................
United
States
900
301,705
Technology
Hardware,
Storage
&
Peripherals
1.3%
c
UBS
AG
into
Apple,
Inc.,
144A,
7%,
4/02/25
.................
United
States
12,635
2,296,558
Total
Equity-Linked
Securities
(Cost
$79,387,426)
...............................
81,075,491
Convertible
Preferred
Stocks
1.3%
Electric
Utilities
1.3%
NextEra
Energy,
Inc.,
6.926%
............................
United
States
50,000
2,272,500
Total
Convertible
Preferred
Stocks
(Cost
$2,100,887)
............................
2,272,500
Principal
Amount
*
Corporate
Bonds
4.7%
Diversified
REITs
0.8%
c
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.,
Senior
Bond,
144A,
4.625%,
12/01/29
..........................................
United
States
1,500,000
1,404,927
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
28
.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
0.5%
Expedia
Group,
Inc.,
Senior
Note,
3.25%,
2/15/30
.............
United
States
1,000,000
$
893,612
Metals
&
Mining
0.8%
c
Alcoa
Nederland
Holding
BV,
Senior
Note,
144A,
4.125%,
3/31/29
.
United
States
1,500,000
1,382,179
Tobacco
1.8%
BAT
Capital
Corp.,
Senior
Bond,
6.421%,
8/02/33
.............
United
Kingdom
1,600,000
1,671,711
Philip
Morris
International,
Inc.,
Senior
Bond,
5.625%,
9/07/33
....
United
States
1,500,000
1,513,356
3,185,067
Trading
Companies
&
Distributors
0.8%
c
United
Rentals
North
America,
Inc.,
Senior
Secured
Note,
144A,
6%,
12/15/29
..........................................
United
States
1,500,000
1,494,060
Total
Corporate
Bonds
(Cost
$8,307,367)
.......................................
8,359,845
Total
Long
Term
Investments
(Cost
$163,432,379)
...............................
173,792,534
a
Short
Term
Investments
0.6%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.6%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.006%
....
United
States
1,026,770
1,026,770
Total
Money
Market
Funds
(Cost
$1,026,770)
...................................
1,026,770
Total
Short
Term
Investments
(Cost
$1,026,770
)
.................................
1,026,770
a
Total
Investments
(Cost
$164,459,149)
99.0%
...................................
$174,819,304
Options
Written
(0.0)%
†
(55,550)
Other
Assets,
less
Liabilities
1.0%
.............................................
1,863,088
Net
Assets
100.0%
...........................................................
$176,626,842
a
a
a
Number
of
Contracts
Notional
Amount
#
Options
Written
(0.0)%
†
Calls
-
Exchange-Traded
Equity
Options
International
Business
Machines
Corp.,
September
Strike
Price
$190.00,
Expires
9/20/24
..............................
100
1,668,500
(15,300)
Oracle
Corp.,
September
Strike
Price
$140.00,
Expires
9/20/24
...
250
2,929,750
(40,250)
(55,550)
Total
Options
Written
(Premiums
received
$103,935)
............................
$
(55,550)
†
Rounds
to
less
than
0.1%
of
net
assets.
#
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
Non-income
producing.
b
A
portion
or
all
of
the
security
is
held
in
connection
with
written
option
contracts
open
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
11
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2024,
the
aggregate
value
of
these
securities
was
$85,356,657,
representing
48.3%
of
net
assets.
d
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
May
31,
2024
Franklin
Templeton
SMACS:
Series
H
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
12
a
a
Shares
a
Value
a
Management
Investment
Companies
3.5%
Capital
Markets
3.5%
a
Franklin
Dynamic
Municipal
Bond
ETF
...................................
17,000
$
411,740
Total
Management
Investment
Companies
(Cost
$
403,766
)
.......................
411,740
Principal
Amount
a
a
a
a
Corporate
Bonds
1.9%
Diversified
Consumer
Services
1.9%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
$
250,000
225,220
Total
Corporate
Bonds
(Cost
$
226,956
)
........................................
225,220
Municipal
Bonds
89.3%
Alabama
4.2%
b
Homewood
Educational
Building
Authority
,
CHF
-
Horizons
II
LLC
,
Revenue
,
2024
C
,
5
%
,
10/01/56
.....................................................
300,000
294,291
MidCity
Improvement
District
,
Assessment
Area
,
Special
Assessment
,
2022
,
4.5
%
,
11/01/42
................
150,000
121,392
Assessment
Area
,
Special
Assessment
,
2022
,
4.75
%
,
11/01/49
...............
100,000
79,776
495,459
Arizona
1.3%
c
Sierra
Vista
Industrial
Development
Authority
,
American
Leadership
Academy,
Inc.
,
Revenue
,
144A,
2023
,
5.75
%
,
6/15/58
..................................
150,000
150,905
Arkansas
1.3%
Arkansas
Development
Finance
Authority
,
United
States
Steel
Corp.
,
Revenue
,
2023
,
5.7
%
,
5/01/53
....................................................
150,000
155,003
California
10.5%
d
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
...................................................
130,000
135,938
c
California
Community
Housing
Agency
,
Arbors
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
8/01/50
....................
125,000
118,029
Aster
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
2/01/43
..........
130,000
118,466
Fountains
at
Emerald
Park
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/46
...
195,000
163,059
Verdant
at
Green
Valley
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
8/01/49
.......
105,000
99,525
c
California
Municipal
Finance
Authority
,
IH
Parkside
Fairfield
LLC
,
Revenue
,
144A,
2023
B
,
Zero
Cpn.,
9/01/43
...............................................
150,000
102,651
c
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
100,000
82,684
c
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
125,000
108,267
c
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
100,000
81,752
c
CSCDA
Community
Improvement
Authority
,
Renaissance
at
City
Center
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/51
.............
110,000
105,044
Waterscape
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
9/01/46
................
135,000
110,993
1,226,408
Colorado
0.8%
Colorado
Health
Facilities
Authority
,
Christian
Living
Neighborhoods
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/38
.................................
100,000
89,677
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)
Florida
21.9%
Avenir
Community
Development
District
,
Parcel
A-18
,
Special
Assessment
,
2024
A
,
6
%
,
5/01/55
......................................................
$
100,000
$
99,298
c
Florida
Development
Finance
Corp.
,
d
AAF
Operations
Holdings
LLC
,
Revenue
,
144A,
2024
,
Refunding
,
Mandatory
Put
,
12
%
,
7/15/28
...................................................
100,000
104,000
Mayflower
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/55
............................................
100,000
63,462
Hammock
Oaks
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.85
%
,
5/01/44
....................................
125,000
125,393
Kindred
Community
Development
District
II
,
Special
Assessment
,
2021
,
3.125
%
,
5/01/41
.........................................................
100,000
85,438
Lakeside
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.375
%
,
5/01/54
...................................................
100,000
104,327
b
,c
Marion
Ranch
Community
Development
District
,
Special
Assessment
,
144A,
2024
,
5.7
%
,
5/01/44
....................................................
100,000
100,113
North
AR-1
Pasco
Community
Development
District
,
Assessment
Area
3
,
Special
Assessment
,
2023
,
6
%
,
5/01/54
.......................................
100,000
101,727
North
Loop
Community
Development
District
,
Special
Assessment
,
2023
,
6.625
%
,
5/01/54
.........................................................
130,000
138,596
Palermo
Community
Development
District
,
Special
Assessment
,
2023
,
5
%
,
6/15/43
..
100,000
100,070
Palm
Coast
Park
Community
Development
District
,
Special
Assessment
,
2023
,
5.6
%
,
5/01/53
.........................................................
100,000
101,333
Preserve
at
Savannah
Lakes
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2024
,
5.45
%
,
5/01/44
..............................
100,000
100,383
Prosperity
Lakes
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
...................................
160,000
166,255
Quail
Roost
Community
Development
District
,
Expansion
Area
,
Special
Assessment
,
2021
,
4
%
,
12/15/51
................................................
70,000
58,765
Ridge
at
Apopka
Community
Development
District
,
Parcel
2
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
...............................................
100,000
100,756
River
Hall
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
2023
A
,
6.5
%
,
5/01/54
..............................................
105,000
110,158
Sawgrass
Village
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
5.75
%
,
5/01/53
...............
100,000
100,826
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.375
%
,
11/01/53
.............
155,000
161,451
c
Seaton
Creek
Reserve
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2023
,
5.5
%
,
6/15/53
................................
100,000
101,347
Seminole
Palms
Community
Development
District
,
Special
Assessment
,
2023
,
5.5
%
,
5/01/43
.........................................................
100,000
101,756
Stonegate
Preserve
Community
Development
District
,
Special
Assessment
,
2023
,
6.125
%
,
12/15/53
..................................................
150,000
155,416
Twisted
Oaks
Pointe
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2023
,
5.375
%
,
5/01/43
..............
100,000
100,522
Assessment
Area
2
,
Special
Assessment
,
2023
,
6.125
%
,
5/01/54
..............
75,000
76,914
Westwood
of
Pasco
Community
Development
District
,
Assessments
,
Special
Assessment
,
2023
,
5.625
%
,
5/01/53
...................................
100,000
101,287
2,559,593
Indiana
1.0%
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
Senior
Lien
,
2023
E
,
6.125
%
,
3/01/57
...................................................
110,000
119,313
Iowa
2.9%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC
,
Revenue
,
2022
,
Refunding
,
5
%
,
12/01/50
.............
235,000
245,411
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)
Iowa
(continued)
Iowa
Finance
Authority,
(continued)
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
5/15/36
....
$
100,000
$
97,799
343,210
Louisiana
1.9%
Calcasieu
Parish
Memorial
Hospital
Service
District
,
Southwest
Louisiana
Healthcare
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/39
............
100,000
93,212
c
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
Parish
of
St.
Martin
,
Revenue
,
144A,
2019
,
4.4
%
,
11/01/44
...........
135,000
130,577
223,789
Maryland
2.9%
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2020
,
4.25
%
,
7/01/50
................................
170,000
150,398
c
Town
of
La
Plata
,
Heritage
Green
Special
Taxing
District
,
Special
Tax
,
144A,
2023
A
,
6.5
%
,
2/15/53
....................................................
190,000
189,515
339,913
Michigan
1.0%
City
of
Detroit
,
GO
,
2023
C
,
6
%
,
5/01/43
..................................
100,000
110,437
Minnesota
0.9%
City
of
Apple
Valley
,
PHS
Apple
Valley
Senior
Housing,
Inc.
,
Revenue
,
2021
,
4
%
,
9/01/36
.........................................................
105,000
98,864
Nevada
0.8%
Henderson
Local
Improvement
Districts
,
Local
Improvement
District
No.
T-22
,
Special
Assessment
,
2023
,
5.25
%
,
3/01/53
....................................
100,000
94,752
New
Hampshire
2.2%
New
Hampshire
Business
Finance
Authority
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
A
,
5.25
%
,
7/01/48
.....................................
250,000
255,434
New
Jersey
1.5%
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
6/01/46
....
175,000
176,193
New
York
4.9%
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4
%
,
10/01/30
.........................
100,000
99,430
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4.375
%
,
10/01/45
.....................
375,000
364,713
c
Oneida
Indian
Nation
of
New
York
,
Revenue
,
144A,
2024
B
,
6
%
,
9/01/43
..........
100,000
105,804
569,947
Ohio
3.6%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
B-2
,
2
,
Refunding
,
5
%
,
6/01/55
.............................................
200,000
179,208
Ohio
Housing
Finance
Agency
,
Revenue
,
2023
C
,
8
%
,
8/01/34
.................
100,000
102,584
Summit
County
Development
Finance
Authority
,
UAkronPark,
Inc.
,
Revenue
,
2023
,
6
%
,
12/01/58
........................................................
125,000
133,674
415,466
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
1.6%
Berks
County
Industrial
Development
Authority
,
Tower
Health
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
11/01/50
................................
$
115,000
$
58,111
Berks
County
Municipal
Authority
(The)
,
Tower
Health
Obligated
Group
,
Revenue
,
2012
A
,
5
%
,
11/01/44
...................................................
55,000
28,121
Philadelphia
Authority
for
Industrial
Development
,
St.
Joseph's
University
,
Revenue
,
2022
,
5.5
%
,
11/01/60
...............................................
90,000
95,396
181,628
Texas
7.9%
c
City
of
Anna
,
Woods
at
Lindsey
Place
(The)
Public
Improvement
District
Area
1
,
Special
Assessment
,
144A,
2023
,
5.875
%
,
9/15/53
.........................
116,000
116,643
c
City
of
Celina
,
Pravin
Public
Improvement
District
,
Special
Assessment
,
144A,
2023
,
6.75
%
,
9/01/53
...................................................
100,000
99,503
c
City
of
Fate
,
Williamsburg
Public
Improvement
District
No.
1
Phase
3B
,
Special
Assessment
,
144A,
2023
,
5.375
%
,
8/15/53
...............................
100,000
97,370
c
City
of
Hutto
,
Emory
Crossing
Public
Improvement
District
Improvement
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.625
%
,
9/01/58
.........................
115,000
115,562
c
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
103,704
c
City
of
Tomball
,
Raburn
Reserve
Public
Improvement
District
Area
No.
2
,
Special
Assessment
,
144A,
2023
,
5.75
%
,
9/15/52
...............................
112,000
112,047
c
County
of
Hays
,
La
Cima
Public
Improvement
District
,
Special
Assessment
,
144A,
2020
,
3.25
%
,
9/15/30
...............................................
100,000
86,292
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-College
Station
Properties
LLC
,
Revenue
,
A
,
5
%
,
7/01/47
..............
50,000
47,563
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/39
.......................................................
85,000
82,066
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue,
Second
Tier
,
2019
B
,
5.5
%
,
12/01/54
................................................
20,000
18,982
Walden
Pond
Fresh
Water
Supply
District
,
GO
,
2022
,
6.25
%
,
9/01/47
............
45,000
45,666
925,398
Washington
1.7%
Washington
State
Housing
Finance
Commission
,
Eastside
Retirement
Association
Obligated
Group
,
Revenue
,
2023
A
,
Refunding
,
5
%
,
7/01/48
........................................................
120,000
121,908
c
Presbyterian
Retirement
Communities
Northwest
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
1/01/55
..............................................
100,000
76,123
198,031
Wisconsin
3.4%
Public
Finance
Authority
,
c
Friends
Homes
Obligated
Group
,
Revenue
,
144A,
2019
,
Refunding
,
5
%
,
9/01/49
..
125,000
113,508
RED
River
Valley
Alliance
LLC
,
Revenue
,
2021
,
4
%
,
9/30/51
.................
345,000
283,730
397,238
U.S.
Territories
11.1%
District
of
Columbia
2.1%
District
of
Columbia
,
International
School
Obligated
Group
,
Revenue
,
2019
,
5
%
,
7/01/49
............
140,000
139,486
Plenary
Infrastructure
DC
LLC
,
Revenue
,
2022
A
,
5.5
%
,
8/31/33
..............
100,000
110,618
250,104
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
16
See
Abbreviations
on
page
28
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
9.0%
Commonwealth
of
Puerto
Rico
,
GO
,
2022
A-1
,
4
%
,
7/01/41
..........................................
$
181,382
$
168,599
GO
,
2022
A-1
,
4
%
,
7/01/46
..........................................
176,000
159,181
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
99,066
96,465
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
622,000
622,202
1,046,447
Total
U.S.
Territories
....................................................................
1,296,551
Total
Municipal
Bonds
(Cost
$
10,251,997
)
......................................
10,423,209
Total
Long
Term
Investments
(Cost
$
10,882,719
)
................................
11,060,169
a
a
a
a
a
Short
Term
Investments
7.7%
Municipal
Bonds
7.7%
Arizona
1.7%
e
Arizona
Health
Facilities
Authority
,
Banner
Health
Obligated
Group
,
Revenue
,
2015
C
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
4.05
%
,
1/01/46
...............
200,000
200,000
Colorado
0.9%
e
Colorado
Health
Facilities
Authority
,
Children's
Hospital
Colorado
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
4.05
%
,
12/01/52
........................................................
100,000
100,000
Massachusetts
3.4%
e
Massachusetts
Development
Finance
Agency
,
Trustees
of
Boston
University
,
Revenue
,
2008
U6E
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
4
%
,
10/01/42
.....
400,000
400,000
Virginia
1.7%
e
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
4
%
,
10/01/48
........................................................
200,000
200,000
Total
Municipal
Bonds
(Cost
$
900,000
)
.........................................
900,000
Total
Short
Term
Investments
(Cost
$
900,000
)
..................................
900,000
a
Total
Investments
(Cost
$
11,782,719
)
102.4
%
...................................
$11,960,169
Other
Assets,
less
Liabilities
(
2.4
)
%
...........................................
(284,126)
Net
Assets
100.0%
...........................................................
$11,676,043
a
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
b
Security
purchased
on
a
when-issued
basis.
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2024,
the
aggregate
value
of
these
securities
was
$2,956,945,
representing
25.3%
of
net
assets.
d
The
maturity
date
shown
represents
the
mandatory
put
date.
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),
May
31,
2024
Franklin
Templeton
SMACS:
Series
I
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
17
a
a
Shares
a
Value
a
Common
Stocks
0.6%
Banks
0.6%
Bank
of
America
Corp.
...............................................
45,000
$
1,799,550
Pharmaceuticals
0.0%
†
a
Endo,
Inc.
.........................................................
3,223
91,319
a,b
Endo,
Inc.
,
144A
....................................................
1,424
40,347
131,666
Total
Common
Stocks
(Cost
$
1,322,761
)
.......................................
1,931,216
a
Equity-Linked
Securities
2.1%
Automobiles
0.2%
b
Royal
Bank
of
Canada
into
General
Motors
Co.
,
144A,
12
%
,
6/18/24
.............
14,000
518,433
Banks
0.7%
b
BNP
Paribas
Issuance
BV
into
Bank
of
America
Corp.
,
144A,
8.5
%
,
2/26/25
.......
28,800
1,036,538
b
Royal
Bank
of
Canada
into
Citigroup,
Inc.
,
144A,
10
%
,
10/15/24
................
27,000
1,279,528
2,316,066
Hotels,
Restaurants
&
Leisure
0.5%
b
Wells
Fargo
Bank
NA
into
Starbucks
Corp.
,
144A,
8
%
,
3/04/25
.................
17,500
1,455,368
Insurance
0.3%
b
BNP
Paribas
Issuance
BV
into
MetLife,
Inc.
,
144A,
9
%
,
10/23/24
................
15,000
1,033,835
Metals
&
Mining
0.4%
b
Citigroup
Global
Markets
Holdings,
Inc.
into
Freeport-McMoRan,
Inc.
,
144A,
10
%
,
5/20/25
.........................................................
22,000
1,140,913
Total
Equity-Linked
Securities
(Cost
$
6,263,870
)
................................
6,464,615
Principal
Amount
a
a
a
a
Corporate
Bonds
92.2%
Aerospace
&
Defense
2.0%
b
Bombardier,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
11/15/30
........................
$
1,500,000
1,611,363
b
TransDigm,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
8/15/28
..............................
1,500,000
1,518,886
Senior
Secured
Note
,
144A,
6.875
%
,
12/15/30
............................
1,500,000
1,520,160
Senior
Secured
Note
,
144A,
6.625
%
,
3/01/32
.............................
1,500,000
1,506,321
6,156,730
Automobile
Components
1.3%
b
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
...........
1,500,000
1,297,602
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note
,
5.25
%
,
7/15/31
................
3,000,000
2,714,725
4,012,327
Automobiles
1.9%
Ford
Motor
Co.
,
Senior
Bond
,
6.1
%
,
8/19/32
...............................
6,000,000
5,986,636
Banks
2.2%
Barclays
plc
,
Senior
Bond
,
5.746%
to
8/08/32,
FRN
thereafter
,
8/09/33
....................
1,400,000
1,398,747
c
Senior
Bond
,
FRN
,
6.692
%
,
(
SOFR
+
2.62
%
),
9/13/34
......................
1,500,000
1,592,789
Sub.
Bond
,
7.119%
to
6/26/33,
FRN
thereafter
,
6/27/34
.....................
1,500,000
1,588,956
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)
Banks
(continued)
Fifth
Third
Bancorp
,
Senior
Note
,
6.339%
to
7/26/28,
FRN
thereafter
,
7/27/29
......
$
350,000
$
358,925
Fifth
Third
Bank
NA
,
Senior
Note
,
5.852%
to
10/26/24,
FRN
thereafter
,
10/27/25
....
250,000
249,761
Wells
Fargo
&
Co.
,
Senior
Bond
,
6.491%
to
10/22/33,
FRN
thereafter
,
10/23/34
.....
1,500,000
1,595,997
6,785,175
Building
Products
1.1%
b
AmeriTex
HoldCo
Intermediate
LLC
,
Senior
Secured
Note
,
144A,
10.25
%
,
10/15/28
.
2,000,000
2,098,646
b
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....
800,000
792,306
b
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
........................................................
500,000
501,496
3,392,448
Capital
Markets
0.8%
Charles
Schwab
Corp.
(The)
,
Senior
Note
,
5.643%
to
5/18/28,
FRN
thereafter
,
5/19/29
500,000
504,936
Morgan
Stanley
,
Senior
Bond
,
6.627%
to
10/31/33,
FRN
thereafter
,
11/01/34
..................
1,000,000
1,075,777
Sub.
Bond
,
5.948%
to
1/18/33,
FRN
thereafter
,
1/19/38
.....................
1,000,000
993,288
2,574,001
Chemicals
2.3%
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.55
%
,
11/15/30
....................
1,000,000
1,044,498
b
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
................
2,000,000
2,135,637
b
SCIH
Salt
Holdings,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
5/01/29
....................................
3,000,000
2,828,550
Senior
Secured
Note
,
144A,
4.875
%
,
5/01/28
.............................
1,000,000
936,825
6,945,510
Commercial
Services
&
Supplies
1.6%
b
APX
Group,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
2/15/27
..................
5,000,000
4,985,401
Communications
Equipment
3.1%
b
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
................
4,000,000
3,293,000
b
CommScope,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
3/01/27
.....................................
3,500,000
1,634,131
Senior
Secured
Note
,
144A,
6
%
,
3/01/26
................................
4,000,000
3,575,000
Senior
Secured
Note
,
144A,
4.75
%
,
9/01/29
..............................
1,500,000
1,083,750
9,585,881
Consumer
Finance
2.1%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond
,
5.3
%
,
1/19/34
.........................................................
1,500,000
1,461,587
Ford
Motor
Credit
Co.
LLC
,
Senior
Bond
,
5.113
%
,
5/03/29
........................................
1,000,000
963,624
Senior
Note
,
7.35
%
,
3/06/30
.........................................
3,000,000
3,163,632
b
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note
,
144A,
6.4
%
,
3/26/29
............
750,000
758,532
6,347,375
Containers
&
Packaging
6.1%
b
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note
,
144A,
4
%
,
9/01/29
.......................................
2,500,000
2,066,519
b
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
8/15/27
.....................................
8,000,000
4,708,400
Senior
Secured
Note
,
144A,
4.125
%
,
8/15/26
.............................
4,000,000
3,405,039
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)
Containers
&
Packaging
(continued)
b
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note
,
144A,
9.25
%
,
4/15/27
...................................
$
6,000,000
$
5,980,685
Senior
Secured
Note
,
144A,
7.875
%
,
4/15/27
.............................
2,500,000
2,550,275
18,710,918
Diversified
REITs
0.2%
b
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Bond
,
144A,
4.625
%
,
12/01/29
.....
750,000
702,464
Diversified
Telecommunication
Services
1.9%
b
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
144A,
5.125
%
,
5/01/27
6,000,000
5,738,546
Electric
Utilities
3.2%
b
NRG
Energy,
Inc.
,
Senior
Secured
Bond
,
144A,
7
%
,
3/15/33
...................
2,000,000
2,115,168
Pacific
Gas
and
Electric
Co.
,
Senior
Bond
,
6.4
%
,
6/15/33
.....................
3,000,000
3,116,043
PG&E
Corp.
,
Senior
Secured
Note
,
5
%
,
7/01/28
............................
500,000
479,677
b
Vistra
Operations
Co.
LLC
,
Senior
Note
,
144A,
6.875
%
,
4/15/32
....................................
2,000,000
2,014,324
Senior
Secured
Bond
,
144A,
6.95
%
,
10/15/33
............................
2,000,000
2,132,093
9,857,305
Electrical
Equipment
0.2%
Regal
Rexnord
Corp.
,
Senior
Note
,
6.05
%
,
4/15/28
..........................
750,000
761,627
Energy
Equipment
&
Services
1.3%
b
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
..............
3,750,000
3,880,096
Entertainment
0.5%
b
Netflix,
Inc.
,
Senior
Bond
,
144A,
5.375
%
,
11/15/29
..........................
1,500,000
1,510,550
Food
Products
1.1%
JBS
USA
Holding
Lux
SARL
/
JBS
USA
Food
Co.
/
JBS
Lux
Co.
SARL
,
Senior
Note
,
5.75
%
,
4/01/33
...................................................
800,000
788,892
b
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
12/15/29
....................................
500,000
476,558
Senior
Secured
Note
,
144A,
6.25
%
,
2/15/32
..............................
2,000,000
1,990,639
3,256,089
Ground
Transportation
0.2%
b
Ashtead
Capital,
Inc.
,
Senior
Bond
,
144A,
5.95
%
,
10/15/33
....................
750,000
751,525
Health
Care
Equipment
&
Supplies
4.0%
b
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
............
7,000,000
7,131,250
b
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....................................
3,500,000
3,302,080
Senior
Secured
Note
,
144A,
3.875
%
,
4/01/29
.............................
2,000,000
1,822,063
12,255,393
Health
Care
Providers
&
Services
19.4%
b
CHS/Community
Health
Systems,
Inc.
,
Secured
Note
,
144A,
6.125
%
,
4/01/30
..................................
3,000,000
2,142,120
Senior
Note
,
144A,
6.875
%
,
4/01/28
....................................
4,080,000
2,962,610
Senior
Secured
Note
,
144A,
8
%
,
3/15/26
................................
4,000,000
4,009,640
Senior
Secured
Note
,
144A,
5.625
%
,
3/15/27
.............................
5,000,000
4,739,781
Senior
Secured
Note
,
144A,
8
%
,
12/15/27
...............................
9,500,000
9,511,695
d
Senior
Secured
Note
,
144A,
10.875
%
,
1/15/32
............................
9,000,000
9,310,446
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)
Health
Care
Providers
&
Services
(continued)
CVS
Health
Corp.
,
Senior
Bond
,
5.25
%
,
2/21/33
............................
$
50,000
$
48,623
b
DaVita,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
2/15/31
............................
6,000,000
5,039,506
b
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......................
1,000,000
915,125
b
MPH
Acquisition
Holdings
LLC
,
Senior
Secured
Note
,
144A,
5.5
%
,
9/01/28
........
3,000,000
2,234,205
Tenet
Healthcare
Corp.
,
Senior
Note
,
6.125
%
,
10/01/28
........................................
6,500,000
6,444,318
Senior
Secured
Note
,
6.125
%
,
6/15/30
..................................
2,000,000
1,984,821
b
Senior
Secured
Note
,
144A,
6.75
%
,
5/15/31
..............................
10,000,000
10,104,080
59,446,970
Hotels,
Restaurants
&
Leisure
7.9%
b
Caesars
Entertainment,
Inc.
,
Senior
Note
,
144A,
8.125
%
,
7/01/27
....................................
4,000,000
4,080,465
Senior
Note
,
144A,
4.625
%
,
10/15/29
...................................
1,000,000
904,081
Senior
Secured
Note
,
144A,
7
%
,
2/15/30
................................
1,500,000
1,517,139
b
Carnival
Corp.
,
Senior
Note
,
144A,
10.5
%
,
6/01/30
..........................
6,000,000
6,525,648
b
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.....................................
3,000,000
2,653,806
Senior
Secured
Note
,
144A,
4.625
%
,
1/15/29
.............................
1,000,000
900,288
b
Penn
Entertainment,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
7/01/29
.................
200,000
167,080
b
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond
,
144A,
5.25
%
,
5/15/27
.........................................................
6,500,000
6,330,841
b
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
.........................................................
1,000,000
1,027,411
24,106,759
Household
Durables
0.3%
Shea
Homes
LP
/
Shea
Homes
Funding
Corp.
,
Senior
Note
,
4.75
%
,
4/01/29
.......
1,000,000
928,658
Household
Products
0.1%
b
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
12/31/27
...................
200,000
198,503
Independent
Power
and
Renewable
Electricity
Producers
2.7%
b
Calpine
Corp.
,
Senior
Note
,
144A,
4.625
%
,
2/01/29
..........................
3,500,000
3,256,032
b
,e
Vistra
Corp.
,
Junior
Sub.
Bond
,
144A,
8%
to
10/14/26,
FRN
thereafter
,
Perpetual
....
5,000,000
5,086,445
8,342,477
Insurance
0.4%
Brown
&
Brown,
Inc.
,
Senior
Bond
,
2.375
%
,
3/15/31
.........................
1,500,000
1,228,351
Machinery
0.1%
b
TK
Elevator
US
Newco,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
.........
200,000
193,108
Media
2.1%
b
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
6/01/29
.....................................
300,000
246,600
Senior
Secured
Note
,
144A,
5.125
%
,
8/15/27
.............................
1,000,000
945,580
Senior
Secured
Note
,
144A,
9
%
,
9/15/28
................................
2,000,000
2,083,402
b
Stagwell
Global
LLC
,
Senior
Note
,
144A,
5.625
%
,
8/15/29
.....................
200,000
183,250
b
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
6/01/27
.....
3,250,000
3,142,654
6,601,486
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
1.8%
b
Alcoa
Nederland
Holding
BV
,
Senior
Note
,
144A,
4.125
%
,
3/31/29
...............
$
750,000
$
691,089
ArcelorMittal
SA
,
Senior
Bond
,
6.8
%
,
11/29/32
..............................
1,500,000
1,599,163
b
Cleveland-Cliffs,
Inc.
,
Senior
Bond
,
144A,
4.875
%
,
3/01/31
....................
150,000
131,287
b
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...................................
800,000
710,840
Senior
Bond
,
144A,
6.125
%
,
4/15/32
...................................
2,000,000
1,957,227
b
Mineral
Resources
Ltd.
,
Senior
Note
,
144A,
8.5
%
,
5/01/30
....................
550,000
570,039
5,659,645
Oil,
Gas
&
Consumable
Fuels
6.2%
b
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
11
%
,
4/15/25
......................................
880,000
881,049
Senior
Note
,
144A,
8.125
%
,
1/15/27
....................................
3,000,000
2,834,380
Senior
Note
,
144A,
9.75
%
,
7/15/28
.....................................
1,000,000
950,546
Senior
Secured
Note
,
144A,
9.25
%
,
7/15/29
..............................
3,000,000
3,105,000
Cheniere
Corpus
Christi
Holdings
LLC
,
Senior
Secured
Note
,
3.7
%
,
11/15/29
......
1,500,000
1,379,742
b
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
7
%
,
6/15/25
..............
300,000
300,553
b
Civitas
Resources,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
7/01/31
....................
750,000
801,648
b
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Note
,
144A,
6
%
,
4/15/30
........
1,000,000
965,767
Kinder
Morgan,
Inc.
,
Senior
Bond
,
5.2
%
,
6/01/33
............................
1,500,000
1,448,675
b
Matador
Resources
Co.
,
Senior
Note
,
144A,
6.5
%
,
4/15/32
....................
1,000,000
998,676
Occidental
Petroleum
Corp.
,
Senior
Note
,
8.875
%
,
7/15/30
....................
1,500,000
1,719,368
b
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note
,
144A,
8.125
%
,
6/01/28
..........
1,650,000
1,687,454
Williams
Cos.,
Inc.
(The)
,
Senior
Bond
,
5.65
%
,
3/15/33
.......................
2,000,000
2,012,483
19,085,341
Passenger
Airlines
5.5%
b
American
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
5/15/29
..............
3,000,000
3,096,155
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
b
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
...............................
3,333,333
3,303,917
b
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.
5,500,000
5,357,861
b
Mileage
Plus
Holdings
LLC
/
Mileage
Plus
Intellectual
Property
Assets
Ltd.
,
Senior
Secured
Note
,
144A,
6.5
%
,
6/20/27
....................................
2,275,000
2,278,599
b
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
4/15/29
...............
3,000,000
2,775,244
16,811,776
Pharmaceuticals
4.3%
b
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
....................
7,000,000
6,771,254
b
Bausch
Health
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
5.5
%
,
11/01/25
............
3,000,000
2,832,135
b
Endo
Finance
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/15/31
..........
2,000,000
2,052,538
f
Par
Pharmaceutical,
Inc.
,
Zero
Cpn.,
4/01/27
...............................
300,000
—
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
8.125
%
,
9/15/31
....
1,500,000
1,648,527
13,304,454
Semiconductors
&
Semiconductor
Equipment
0.1%
Micron
Technology,
Inc.
,
Senior
Bond
,
5.875
%
,
2/09/33
.......................
200,000
204,860
Software
1.7%
b
Cloud
Software
Group,
Inc.
,
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/29
...........
3,500,000
3,322,213
b
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........................
2,000,000
1,853,256
Workday,
Inc.
,
Senior
Bond
,
3.8
%
,
4/01/32
................................
150,000
134,846
5,310,315
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Schedule
of
Investments
See
Notes
to
Schedules
of
Investments.
22
See
Abbreviations
on
page
28
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Specialized
REITs
0.1%
American
Tower
Corp.
,
Senior
Note
,
4.05
%
,
3/15/32
.........................
$
250,000
$
226,769
Specialty
Retail
0.0%
†
Lowe's
Cos.,
Inc.
,
Senior
Bond
,
5
%
,
4/15/33
...............................
60,000
58,884
Textiles,
Apparel
&
Luxury
Goods
0.7%
b
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
..........................
2,000,000
2,043,640
Tobacco
1.2%
BAT
Capital
Corp.
,
Senior
Bond
,
7.75
%
,
10/19/32
........................................
500,000
564,881
Senior
Bond
,
6.421
%
,
8/02/33
........................................
2,000,000
2,089,639
Senior
Note
,
3.557
%
,
8/15/27
.........................................
950,000
900,283
3,554,803
Trading
Companies
&
Distributors
0.5%
b
United
Rentals
North
America,
Inc.
,
Senior
Secured
Note
,
144A,
6
%
,
12/15/29
.....
1,500,000
1,494,059
Total
Corporate
Bonds
(Cost
$
280,429,806
)
.....................................
282,996,855
Mortgage-Backed
Securities
2.6%
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
1.0%
FHLMC
Pool,
30
Year
,
6
%,
6/01/53
......................................
2,902,345
2,909,684
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
1.6%
FNMA,
30
Year
,
5
%,
11/01/53
..........................................
5,143,261
4,952,534
Total
Mortgage-Backed
Securities
(Cost
$
7,889,931
)
.............................
7,862,218
Total
Long
Term
Investments
(Cost
$
295,906,368
)
...............................
299,254,904
a
a
a
a
a
Short
Term
Investments
1.4%
Shares
a
Money
Market
Funds
1.4%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio
,
5.006
%
..................
4,255,238
4,255,238
Total
Money
Market
Funds
(Cost
$
4,255,238
)
...................................
4,255,238
Total
Short
Term
Investments
(Cost
$
4,255,238
)
.................................
4,255,238
a
Total
Investments
(Cost
$
300,161,606
)
98.9
%
...................................
$303,510,142
Other
Assets,
less
Liabilities
1.1
%
.............................................
3,368,654
Net
Assets
100.0%
...........................................................
$306,878,796
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
May
31,
2024,
the
aggregate
value
of
these
securities
was
$235,038,809,
representing
76.6%
of
net
assets.
c
The
coupon
rate
shown
represents
the
rate
at
period
end.
d
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
See
Notes
to
Schedules
of
Investments.
Quarterly
Schedule
of
Investments
23
At
May
31,
2024,
the
Fund
had
the
following futures
contracts
outstanding.
e
Perpetual
security
with
no
stated
maturity
date.
f
Fair
valued
using
significant
unobservable
inputs.
See
Note
4
regarding
fair
value
measurements.
g
See
Note
3
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
U.S.
Treasury
10
Year
Notes
....................
Long
250
$
27,199,219
9/19/24
$
(
53,884
)
U.S.
Treasury
Ultra
Bonds
......................
Long
200
24,487,500
9/19/24
(
299,944
)
Total
Futures
Contracts
......................................................................
$(353,828)
*
As
of
period
end.
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
24
Quarterly
Schedules
of
Investments
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 Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
2. Financial
Instrument
Valuation
The
Funds’
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Funds
calculate
the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds'
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price
of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m. Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds’
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
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)
25
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
Funds.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds’
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
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
May
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
Templeton
SMACS:
Series
E
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.006%
$1,232,610
$82,170,551
$(82,376,391)
$—
$—
$1,026,770
1,026,770
$95,915
Total
Affiliated
Securities
...
$1,232,610
$82,170,551
$(82,376,391)
$—
$—
$1,026,770
$95,915
Franklin
Templeton
SMACS:
Series
H
Non-Controlled
Affiliates
Dividends
Franklin
Dynamic
Municipal
Bond
ETF
...................
$823,989
$355,454
$(800,244)
$(38,864)
$71,405
$411,740
17,000
$29,244
Total
Affiliated
Securities
...
$823,989
$355,454
$(800,244)
$(38,864)
$71,405
$411,740
$29,244
Franklin
Templeton
SMACS:
Series
I
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.006%
$2,191,463
$130,969,249
$(128,905,474)
$—
$—
$4,255,238
4,255,238
$147,698
Total
Affiliated
Securities
...
$2,191,463
$130,969,249
$(128,905,474)
$—
$—
$4,255,238
$147,698
2. Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
26
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
May
31,
2024,
in
valuing
the
Funds’
assets
and
liabilities
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
a
Corporate
Bonds
........................
$
—
$
225,220
$
—
$
225,220
Municipal
Bonds
.........................
—
21,362,076
—
21,362,076
Short
Term
Investments
...................
—
100,000
—
100,000
Total
Investments
in
Securities
...........
$—
$21,687,296
$—
$21,687,296
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
82,084,698
—
—
82,084,698
Equity-Linked
Securities
...................
—
81,075,491
—
81,075,491
Convertible
Preferred
Stocks
................
2,272,500
—
—
2,272,500
Corporate
Bonds
........................
—
8,359,845
—
8,359,845
Short
Term
Investments
...................
1,026,770
—
—
1,026,770
Total
Investments
in
Securities
...........
$85,383,968
$89,435,336
$—
$174,819,304
Liabilities:
Other
Financial
Instruments:
Options
Written
..........................
55,550
—
—
55,550
Total
Other
Financial
Instruments
.........
$55,550
$—
$—
$55,550
Franklin
Templeton
SMACS:
Series
H
Assets:
Investments
in
Securities:
a
Management
Investment
Companies
.........
411,740
—
—
411,740
Corporate
Bonds
........................
—
225,220
—
225,220
Municipal
Bonds
.........................
—
10,423,209
—
10,423,209
Short
Term
Investments
...................
—
900,000
—
900,000
Total
Investments
in
Securities
...........
$411,740
$11,548,429
$—
$11,960,169
Franklin
Templeton
SMACS:
Series
I
Assets:
Investments
in
Securities:
Common
Stocks
:
Banks
...............................
1,799,550
—
—
1,799,550
Pharmaceuticals
.......................
—
131,666
—
131,666
Equity-Linked
Securities
...................
—
6,464,615
—
6,464,615
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
6,156,730
—
6,156,730
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
27
Quarterly
Schedules
of
Investments
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
I
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Automobile
Components
.................
$
—
$
4,012,327
$
—
$
4,012,327
Automobiles
..........................
—
5,986,636
—
5,986,636
Banks
...............................
—
6,785,175
—
6,785,175
Building
Products
......................
—
3,392,448
—
3,392,448
Capital
Markets
........................
—
2,574,001
—
2,574,001
Chemicals
...........................
—
6,945,510
—
6,945,510
Commercial
Services
&
Supplies
...........
—
4,985,401
—
4,985,401
Communications
Equipment
..............
—
9,585,881
—
9,585,881
Consumer
Finance
.....................
—
6,347,375
—
6,347,375
Containers
&
Packaging
.................
—
18,710,918
—
18,710,918
Diversified
REITs
......................
—
702,464
—
702,464
Diversified
Telecommunication
Services
.....
—
5,738,546
—
5,738,546
Electric
Utilities
........................
—
9,857,305
—
9,857,305
Electrical
Equipment
....................
—
761,627
—
761,627
Energy
Equipment
&
Services
.............
—
3,880,096
—
3,880,096
Entertainment
.........................
—
1,510,550
—
1,510,550
Food
Products
........................
—
3,256,089
—
3,256,089
Ground
Transportation
..................
—
751,525
—
751,525
Health
Care
Equipment
&
Supplies
.........
—
12,255,393
—
12,255,393
Health
Care
Providers
&
Services
..........
—
59,446,970
—
59,446,970
Hotels,
Restaurants
&
Leisure
.............
—
24,106,759
—
24,106,759
Household
Durables
....................
—
928,658
—
928,658
Household
Products
....................
—
198,503
—
198,503
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
8,342,477
—
8,342,477
Insurance
............................
—
1,228,351
—
1,228,351
Machinery
............................
—
193,108
—
193,108
Media
...............................
—
6,601,486
—
6,601,486
Metals
&
Mining
.......................
—
5,659,645
—
5,659,645
Oil,
Gas
&
Consumable
Fuels
.............
—
19,085,341
—
19,085,341
Passenger
Airlines
.....................
—
16,811,776
—
16,811,776
Pharmaceuticals
.......................
—
13,304,454
—
b
13,304,454
Semiconductors
&
Semiconductor
Equipment
.
—
204,860
—
204,860
Software
.............................
—
5,310,315
—
5,310,315
Specialized
REITs
......................
—
226,769
—
226,769
Specialty
Retail
........................
—
58,884
—
58,884
Textiles,
Apparel
&
Luxury
Goods
..........
—
2,043,640
—
2,043,640
Tobacco
.............................
—
3,554,803
—
3,554,803
Trading
Companies
&
Distributors
..........
—
1,494,059
—
1,494,059
Mortgage-Backed
Securities
................
—
7,862,218
—
7,862,218
Short
Term
Investments
...................
4,255,238
—
—
4,255,238
Total
Investments
in
Securities
...........
$6,054,788
$297,455,354
$—
$303,510,142
Liabilities:
Other
Financial
Instruments:
Futures
Contracts
........................
$353,828
$—
$—
$353,828
Total
Other
Financial
Instruments
.........
$353,828
$—
$—
$353,828
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
financial
instruments
determined
to
have
no
value.
4. Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Schedules
of
Investments
(unaudited)
28
Quarterly
Schedules
of
Investments
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
ETF
Exchange-Traded
Fund
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
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
For
additional
information
on
the
Funds'
significant
accounting
policies,
please
refer
to
the Funds'
most
recent
semiannual
or
annual
shareholder
report.