UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06243
Franklin Strategic Series
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices)(Zip code)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 4/30
Date of reporting period: 10/31/23
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
Semiannual
Report
Franklin
Strategic
Series
October
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Franklin
Growth
Opportunities
Fund
2
Franklin
Small
Cap
Growth
Fund
7
Franklin
Small-Mid
Cap
Growth
Fund
12
Financial
Highlights
and
Schedules
of
Investments
17
Financial
Statements
47
Notes
to
Financial
Statements
52
Shareholder
Information
75
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
Growth
Opportunities
Fund
This
semiannual
report
for
Franklin
Growth
Opportunities
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation.
Under
normal
conditions,
the
Fund
invests
predominantly
in
equity
securities
of
companies
demonstrating
accelerating
growth,
increasing
profitability,
or
above-average
growth
or
growth
potential
as
compared
with
the
overall
economy.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+4.67%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Fund’s
narrow
benchmark,
the
Russell
3000
®
Growth
Index,
which
measures
the
performance
of
those
Russell
3000
®
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
+1.00%
cumulative
total
return.
1
The
Fund’s
broad
benchmark,
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+1.39%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
4
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Software
24.2%
Semiconductors
&
Semiconductor
Equipment
9.6%
Interactive
Media
&
Services
8.8%
Broadline
Retail
6.3%
Financial
Services
4.2%
Capital
Markets
3.8%
Technology
Hardware,
Storage
&
Peripherals
3.8%
Life
Sciences
Tools
&
Services
3.4%
Pharmaceuticals
3.0%
Hotels,
Restaurants
&
Leisure
2.8%
IT
Services
2.6%
Health
Care
Providers
&
Services
2.5%
Health
Care
Equipment
&
Supplies
2.2%
Beverages
2.1%
Other
*
18.7%
Short-Term
Investments
&
Other
Net
Assets
2.0%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
10/31/23
Company
Industry
%
of
Total
Net
Assets
a
aa
Amazon.com,
Inc.
6.3%
Broadline
Retail
Microsoft
Corp.
5.2%
Software
NVIDIA
Corp.
4.7%
Semiconductors
&
Semiconductor
Equipment
Mastercard,
Inc.
4.2%
Financial
Services
Meta
Platforms,
Inc.
4.2%
Interactive
Media
&
Services
Apple,
Inc.
3.8%
Technology
Hardware,
Storage
&
Peripherals
Alphabet,
Inc.
3.4%
Interactive
Media
&
Services
ServiceNow,
Inc.
2.6%
Software
Eli
Lilly
&
Co.
2.5%
Pharmaceuticals
Monolithic
Power
Systems,
Inc.
2.1%
Semiconductors
&
Semiconductor
Equipment
1.
Source:
Morningstar.
Frank
Russell
Company
is
the
source
and
owner
of
the
trademarks,
service
marks
and
copyrights
related
to
the
Russell
Indexes.
Russell
®
is
a
trademark
of
Frank
Russell
Company.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
22
.
Franklin
Growth
Opportunities
Fund
3
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Growth
Opportunities
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Grant
Bowers
Lead
Portfolio
Manager
Sara
Araghi,
CFA
Portfolio
Manager
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
October
31,
2023
Franklin
Growth
Opportunities
Fund
4
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of 10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
+4.67%
-1.09%
1-Year
+14.31%
+8.03%
5-Year
+56.28%
+8.11%
10-Year
+154.90%
+9.19%
Advisor
6-Month
+4.78%
+4.78%
1-Year
+14.57%
+14.57%
5-Year
+58.22%
+9.61%
10-Year
+161.61%
+10.09%
See
page
5
for
Performance
Summary
footnotes.
Franklin
Growth
Opportunities
Fund
Performance
Summary
5
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
8/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.94%
0.95%
Advisor
0.68%
0.69%
Your
Fund’s
Expenses
Franklin
Growth
Opportunities
Fund
6
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,046.70
$4.67
$1,020.57
$4.61
0.91%
C
$1,000
$1,042.60
$8.51
$1,016.81
$8.40
1.66%
R
$1,000
$1,045.40
$5.96
$1,019.31
$5.88
1.16%
R6
$1,000
$1,048.40
$2.97
$1,022.24
$2.93
0.58%
Advisor
$1,000
$1,047.80
$3.38
$1,021.83
$3.34
0.66%
7
franklintempleton.com
Semiannual
Report
Franklin
Small
Cap
Growth
Fund
This
semiannual
report
for
Franklin
Small
Cap
Growth
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
the
equity
securities
of
small-cap
companies.
For
this
Fund,
small-cap
companies
are
those
with
market
capitalizations
not
exceeding
$1.5
billion
or
the
highest
market
capitalization
in
the
Russell
2000
®
Index,
whichever
is
greater,
at
the
time
of
purchase.
1
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-5.35%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
2000
®
Growth
Index,
which
measures
the
performance
of
small-cap
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
-7.36%
cumulative
total
return.
2
The
Standard
&
Poor’s
®
500
Index
(S&P
500),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+1.39%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
9
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Software
10.9%
Aerospace
&
Defense
6.6%
Biotechnology
6.3%
Health
Care
Equipment
&
Supplies
5.8%
Semiconductors
&
Semiconductor
Equipment
5.6%
Hotels,
Restaurants
&
Leisure
5.6%
Financial
Services
4.6%
Health
Care
Providers
&
Services
4.4%
Capital
Markets
3.6%
Construction
&
Engineering
3.5%
Food
Products
3.4%
Specialty
Retail
3.2%
Household
Durables
2.9%
Personal
Care
Products
2.8%
Other
*
29.1%
Short-Term
Investments
&
Other
Net
Assets
1.7%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
10/31/23
Company
Industry
%
of
Total
Net
Assets
a
aa
BWX
Technologies,
Inc.
2.5%
Aerospace
&
Defense
BellRing
Brands,
Inc.
2.3%
Personal
Care
Products
AAR
Corp.
2.2%
Aerospace
&
Defense
Arcosa,
Inc.
2.1%
Construction
&
Engineering
Onto
Innovation,
Inc.
2.1%
Semiconductors
&
Semiconductor
Equipment
HealthEquity,
Inc.
2.0%
Health
Care
Providers
&
Services
Matador
Resources
Co.
2.0%
Oil,
Gas
&
Consumable
Fuels
Liberty
Energy,
Inc.
1.9%
Energy
Equipment
&
Services
Haemonetics
Corp.
1.8%
Health
Care
Equipment
&
Supplies
Simply
Good
Foods
Co.
(The)
1.8%
Food
Products
1.
The
Russell
2000
®
Index
is
market
capitalization
weighted
and
measures
performance
of
the
2,000
smallest
companies
in
the
Russell
3000
®
Index,
which
represent
a
small
amount
of
the
total
market
capitalization
of
the
Russell
3000
®
Index.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
31
.
Franklin
Small
Cap
Growth
Fund
8
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Small
Cap
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Michael
P.
McCarthy,
CFA
Lead
Portfolio
Manager
Bradley
T.
Carris,
CFA
Portfolio
Manager
Performance
Summary
as
of
October
31,
2023
Franklin
Small
Cap
Growth
Fund
9
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of 10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class
:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
-5.35%
-10.56%
1-Year
+0.55%
-5.00%
5-Year
+20.80%
+2.68%
10-Year
+81.36%
+5.53%
Advisor
6-Month
-5.21%
-5.21%
1-Year
+0.86%
+0.86%
5-Year
+22.34%
+4.12%
10-Year
+86.10%
+6.41%
See
page
10
for
Performance
Summary
footnotes.
Franklin
Small
Cap
Growth
Fund
Performance
Summary
10
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Liquidity
risk
exists
when
securities
or
other
investments
become
more
difficult
to
sell,
or
are
unable
to
be
sold,
at
the
price
at
which
they
have
been
valued.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
8/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
1.11%
1.12%
Advisor
0.86%
0.87%
Your
Fund’s
Expenses
Franklin
Small
Cap
Growth
Fund
11
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$946.50
$5.28
$1,019.71
$5.48
1.08%
C
$1,000
$944.30
$8.94
$1,015.94
$9.27
1.83%
R
$1,000
$945.20
$6.50
$1,018.46
$6.74
1.33%
R6
$1,000
$948.40
$3.27
$1,021.78
$3.39
0.67%
Advisor
$1,000
$947.90
$4.06
$1,020.97
$4.21
0.83%
12
franklintempleton.com
Semiannual
Report
Franklin
Small-Mid
Cap
Growth
Fund
This
semiannual
report
for
Franklin
Small-Mid
Cap
Growth
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
growth.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
the
equity
securities
of
small-capitalization
(small-
cap)
and
mid-capitalization
(mid-cap)
companies.
For
this
Fund,
small-cap
companies
are
companies
within
the
market
capitalization
range
of
companies
in
the
Russell
2500™
Index,
at
the
time
of
purchase,
and
mid-cap
companies
are
companies
within
the
market
capitalization
range
of
companies
in
the
Russell
Midcap
®
Index,
at
the
time
of
purchase.
1
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-3.60%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Russell
Midcap
®
Growth
Index,
which
measures
the
performance
of
those
Russell
Midcap
®
Growth
Index
companies
with
relatively
higher
price-to-book
ratios
and
higher
forecasted
growth
rates,
posted
a
-3.05%
cumulative
total
return.
2
Also
in
comparison,
the
Standard
&
Poor’s
®
500
Index
(S&P
500),
which
tracks
the
broad
U.S.
stock
market,
posted
a
+1.39%
cumulative
total
return.
2
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
14
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Software
12.9%
Capital
Markets
7.2%
Life
Sciences
Tools
&
Services
5.5%
Health
Care
Equipment
&
Supplies
5.3%
Professional
Services
5.2%
Hotels,
Restaurants
&
Leisure
4.6%
Specialty
Retail
4.3%
Semiconductors
&
Semiconductor
Equipment
3.9%
IT
Services
3.8%
Oil,
Gas
&
Consumable
Fuels
3.0%
Aerospace
&
Defense
3.0%
Biotechnology
2.8%
Interactive
Media
&
Services
2.6%
Health
Care
Technology
1.9%
Other
*
30.3%
Short-Term
Investments
&
Other
Net
Assets
3.7%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
10/31/23
Company
Industry
%
of
Total
Net
Assets
a
aa
Crowdstrike
Holdings,
Inc.
2.3%
Software
Paychex,
Inc.
2.0%
Professional
Services
Ares
Management
Corp.
1.9%
Capital
Markets
Dexcom,
Inc.
1.8%
Health
Care
Equipment
&
Supplies
Trane
Technologies
plc
1.8%
Building
Products
Veeva
Systems,
Inc.
1.7%
Health
Care
Technology
Fastenal
Co.
1.7%
Trading
Companies
&
Distributors
Agilent
Technologies,
Inc.
1.6%
Life
Sciences
Tools
&
Services
Pinterest,
Inc.
1.5%
Interactive
Media
&
Services
TransDigm
Group,
Inc.
1.5%
Aerospace
&
Defense
1.
The
Russell
2500
TM
Index
is
market
capitalization
weighted
and
measures
performance
of
the
2,500
smallest
companies
in
the
Russell
3000
®
Index,
which
represent
a
modest
amount
of
the
Russell
3000
®
Index’s
total
market
capitalization.
The
Russell
Midcap
®
Index
is
market
capitalization
weighted
and
measures
the
performance
of
the
approximately
800
smallest
companies
in
the
Russell
1000
®
Index,
which
represent
a
modest
amount
of
the
Russell
1000
®
Index’s
total
market
capitalization.
2.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
41.
Franklin
Small-Mid
Cap
Growth
Fund
13
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Small-
Mid
Cap
Growth
Fund.
We
look
forward
to
serving
your
future
investment
needs.
John
P.
Scandalios,
CFA
Lead
Portfolio
Manager
Michael
McCarthy,
CFA
Portfolio
Manager
Performance
Summary
as
of
October
31,
2023
Franklin
Small-Mid
Cap
Growth
Fund
14
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of 10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
-3.60%
-8.89%
1-Year
+3.42%
-2.26%
5-Year
+45.00%
+6.50%
10-Year
+110.90%
+7.14%
Advisor
6-Month
-3.46%
-3.46%
1-Year
+3.71%
+3.71%
5-Year
+46.79%
+7.98%
10-Year
+116.23%
+8.02%
See
page
15
for
Performance
Summary
footnotes.
Franklin
Small-Mid
Cap
Growth
Fund
Performance
Summary
15
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Liquidity
risk
exists
when
securities
or
other
investments
become
more
difficult
to
sell,
or
are
unable
to
be
sold,
at
the
price
at
which
they
have
been
valued.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
8/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.90%
0.92%
Advisor
0.65%
0.67%
Your
Fund’s
Expenses
Franklin
Small-Mid
Cap
Growth
Fund
16
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Per
iod
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$964.00
$4.21
$1,020.85
$4.33
0.85%
C
$1,000
$960.60
$7.90
$1,017.08
$8.12
1.60%
R
$1,000
$963.10
$5.44
$1,019.59
$5.60
1.10%
R6
$1,000
$965.90
$2.42
$1,022.67
$2.49
0.49%
Advisor
$1,000
$965.40
$2.98
$1,022.11
$3.06
0.60%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$39.15
$43.14
$56.25
$39.60
$39.57
$38.58
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.08)
(0.12)
(0.28)
(0.26)
(0.14)
(0.13)
Net
realized
and
unrealized
gains
(losses)
1.91
(2.19)
(7.76)
20.03
3.59
5.29
Total
from
investment
operations
........
1.83
(2.31)
(8.04)
19.77
3.45
5.16
Less
distributions
from:
Net
realized
gains
.................
—
(1.68)
(5.07)
(3.12)
(3.42)
(4.17)
Net
asset
value,
end
of
period
..........
$40.98
$39.15
$43.14
$56.25
$39.60
$39.57
Total
return
c
.......................
4.67%
(4.98)%
(16.57)%
50.64%
8.90%
15.91%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.91%
0.95%
0.90%
0.91%
0.95%
0.94%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.91%
f
0.94%
0.89%
0.91%
f
0.95%
f
0.94%
f
Net
investment
(loss)
................
(0.37)%
(0.30)%
(0.49)%
(0.51)%
(0.35)%
(0.32)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,829,560
$2,765,017
$3,215,834
$4,203,693
$2,883,392
$2,819,007
Portfolio
turnover
rate
................
20.67%
16.52%
g
17.20%
17.54%
19.47%
24.21%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3(h).
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$28.86
$32.55
$43.87
$31.61
$32.47
$32.67
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.17)
(0.30)
(0.54)
(0.50)
(0.35)
(0.35)
Net
realized
and
unrealized
gains
(losses)
1.40
(1.71)
(5.71)
15.88
2.91
4.32
Total
from
investment
operations
........
1.23
(2.01)
(6.25)
15.38
2.56
3.97
Less
distributions
from:
Net
realized
gains
.................
—
(1.68)
(5.07)
(3.12)
(3.42)
(4.17)
Net
asset
value,
end
of
period
..........
$30.09
$28.86
$32.55
$43.87
$31.61
$32.47
Total
return
c
.......................
4.26%
(5.69)%
(17.20)%
49.47%
8.10%
15.10%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.66%
1.70%
1.65%
1.66%
1.70%
1.69%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.66%
f
1.69%
1.64%
1.66%
f
1.70%
f
1.69%
f
Net
investment
(loss)
................
(1.10)%
(1.05)%
(1.23)%
(1.26)%
(1.10)%
(1.07)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$80,142
$119,070
$158,895
$278,804
$216,757
$244,574
Portfolio
turnover
rate
................
20.67%
16.52%
g
17.20%
17.54%
19.47%
24.21%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3(h).
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$36.13
$40.06
$52.69
$37.32
$37.57
$36.93
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.12)
(0.20)
(0.39)
(0.36)
(0.22)
(0.21)
Net
realized
and
unrealized
gains
(losses)
1.76
(2.05)
(7.17)
18.85
3.39
5.02
Total
from
investment
operations
........
1.64
(2.25)
(7.56)
18.49
3.17
4.81
Less
distributions
from:
Net
realized
gains
.................
—
(1.68)
(5.07)
(3.12)
(3.42)
(4.17)
Net
asset
value,
end
of
period
..........
$37.77
$36.13
$40.06
$52.69
$37.32
$37.57
Total
return
c
.......................
4.54%
(5.21)%
(16.79)%
50.26%
8.64%
15.66%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.16%
1.20%
1.15%
1.15%
1.20%
1.19%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.16%
f
1.19%
1.14%
1.15%
f
1.20%
f
1.19%
f
Net
investment
(loss)
................
(0.62)%
(0.55)%
(0.73)%
(0.75)%
(0.60)%
(0.57)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$23,586
$22,664
$27,009
$40,396
$31,060
$37,105
Portfolio
turnover
rate
................
20.67%
16.52%
g
17.20%
17.54%
19.47%
24.21%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3(h).
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$44.87
$48.98
$63.06
$43.97
$43.42
$41.78
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.01)
0.02
(0.10)
(0.10)
0.01
0.01
Net
realized
and
unrealized
gains
(losses)
2.18
(2.45)
(8.91)
22.31
3.96
5.80
Total
from
investment
operations
........
2.17
(2.43)
(9.01)
22.21
3.97
5.81
Less
distributions
from:
Net
realized
gains
.................
—
(1.68)
(5.07)
(3.12)
(3.42)
(4.17)
Net
asset
value,
end
of
period
..........
$47.04
$44.87
$48.98
$63.06
$43.97
$43.42
Total
return
c
.......................
4.84%
(4.62)%
(16.32)%
51.13%
9.34%
16.26%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.58%
0.59%
0.57%
0.57%
0.59%
0.59%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.58%
f
0.58%
0.57%
f
0.57%
f
0.59%
f
0.58%
Net
investment
income
(loss)
..........
(0.
03)%
0.05%
(0.16)%
(0.17)%
0.01%
0.04%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$330,821
$449,119
$461,475
$563,918
$383,208
$418,174
Portfolio
turnover
rate
................
20.67%
16.52%
g
17.20%
17.54%
19.47%
24.21%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3(h).
Franklin
Strategic
Series
Financial
Highlights
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$43.96
$48.07
$62.01
$43.31
$42.87
$41.34
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.03)
(0.02)
(0.15)
(0.14)
(0.04)
(0.03)
Net
realized
and
unrealized
gains
(losses)
2.13
(2.41)
(8.72)
21.96
3.90
5.73
Total
from
investment
operations
........
2.10
(2.43)
(8.87)
21.82
3.86
5.70
Less
distributions
from:
Net
realized
gains
.................
—
(1.68)
(5.07)
(3.12)
(3.42)
(4.17)
Net
asset
value,
end
of
period
..........
$46.06
$43.96
$48.07
$62.01
$43.31
$42.87
Total
return
c
.......................
4.78%
(4.71)%
(16.37)%
51.01%
9.20%
16.16%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.66%
0.69%
0.65%
0.66%
0.70%
0.69%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.66%
f
0.68%
0.64%
0.66%
f
0.70%
f
0.69%
f
Net
investment
(loss)
................
(0.11)%
(0.05)%
(0.24)%
(0.26)%
(0.10)%
(0.07)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$235,652
$325,234
$636,524
$643,449
$467,727
$506,964
Portfolio
turnover
rate
................
20.67%
16.52%
g
17.20%
17.54%
19.47%
24.21%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
See
Note
3(h).
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Growth
Opportunities
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
95.6%
Aerospace
&
Defense
1.6%
a
Axon
Enterprise,
Inc.
...................................
United
States
218,188
$
44,617,264
a,b,c
Space
Exploration
Technologies
Corp.,
A
....................
United
States
142,857
11,571,417
56,188,681
Automobiles
0.7%
a
Tesla,
Inc.
...........................................
United
States
117,460
23,590,666
Beverages
2.1%
Constellation
Brands,
Inc.,
A
.............................
United
States
72,279
16,924,128
a
Monster
Beverage
Corp.
................................
United
States
1,125,473
57,511,670
74,435,798
Broadline
Retail
6.3%
a
Amazon.com,
Inc.
.....................................
United
States
1,657,897
220,649,512
Capital
Markets
3.8%
Ares
Management
Corp.,
A
..............................
United
States
528,051
52,060,548
MSCI,
Inc.,
A
.........................................
United
States
73,034
34,439,183
S&P
Global,
Inc.
......................................
United
States
132,492
46,280,780
132,780,511
Chemicals
1.7%
Linde
plc
............................................
United
States
156,596
59,844,727
Commercial
Services
&
Supplies
1.5%
a,b,c
Celonis
SE
..........................................
Germany
4,619
1,253,201
a,b,c
Celonis
SE,
D
........................................
Germany
25,571
6,937,783
Republic
Services,
Inc.,
A
...............................
United
States
298,735
44,359,160
52,550,144
Entertainment
1.2%
a
Netflix,
Inc.
..........................................
United
States
46,549
19,163,758
a
ROBLOX
Corp.,
A
.....................................
United
States
721,340
22,945,825
42,109,583
Financial
Services
4.2%
Mastercard,
Inc.,
A
....................................
United
States
391,530
147,352,316
Food
Products
1.1%
a
Freshpet,
Inc.
........................................
United
States
192,209
11,032,797
Lamb
Weston
Holdings,
Inc.
.............................
United
States
317,259
28,489,858
39,522,655
Ground
Transportation
1.9%
a
Uber
Technologies,
Inc.
.................................
United
States
1,094,511
47,370,436
Union
Pacific
Corp.
....................................
United
States
84,597
17,563,183
64,933,619
Health
Care
Equipment
&
Supplies
2.2%
a
IDEXX
Laboratories,
Inc.
................................
United
States
75,200
30,040,144
a
IL
MAKIAGE
Cosmetics
(2013)
Ltd.
........................
Israel
580,952
14,843,324
a
Intuitive
Surgical,
Inc.
..................................
United
States
124,850
32,738,167
77,621,635
Health
Care
Providers
&
Services
2.1%
a
Guardant
Health,
Inc.
..................................
United
States
253,022
6,548,209
UnitedHealth
Group,
Inc.
................................
United
States
127,267
68,159,115
74,707,324
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Technology
0.8%
a
Veeva
Systems,
Inc.,
A
.................................
United
States
138,133
$
26,619,611
Hotels,
Restaurants
&
Leisure
2.8%
a
Chipotle
Mexican
Grill,
Inc.,
A
............................
United
States
31,244
60,682,097
Wingstop,
Inc.
........................................
United
States
203,908
37,268,265
97,950,362
Interactive
Media
&
Services
8.8%
a
Alphabet,
Inc.,
C
......................................
United
States
950,964
119,155,789
a
Meta
Platforms,
Inc.,
A
.................................
United
States
488,509
147,173,106
a
Pinterest,
Inc.,
A
......................................
United
States
1,402,654
41,911,302
308,240,197
IT
Services
2.6%
a,b,c
Canva,
Inc.
..........................................
Australia
11,829
11,818,306
a
Gartner,
Inc.
.........................................
United
States
132,002
43,829,944
a
MongoDB,
Inc.,
A
.....................................
United
States
105,721
36,430,400
92,078,650
Leisure
Products
1.9%
a,b,c
Fanatics
Holdings,
Inc.
.................................
United
States
1,029,939
66,191,423
Life
Sciences
Tools
&
Services
3.4%
Danaher
Corp.
.......................................
United
States
234,799
45,086,104
Thermo
Fisher
Scientific,
Inc.
............................
United
States
64,705
28,778,843
West
Pharmaceutical
Services,
Inc.
........................
United
States
146,933
46,767,304
120,632,251
Personal
Care
Products
1.0%
a
BellRing
Brands,
Inc.
...................................
United
States
671,117
29,347,946
a,d
Oddity
Tech
Ltd.,
A
....................................
Israel
180,449
4,610,472
33,958,418
Pharmaceuticals
3.0%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
244,398
15,453,286
Eli
Lilly
&
Co.
........................................
United
States
158,925
88,033,325
103,486,611
Professional
Services
2.1%
Paycom
Software,
Inc.
.................................
United
States
43,500
10,656,195
TransUnion
..........................................
United
States
557,790
24,475,825
Verisk
Analytics,
Inc.,
A
.................................
United
States
168,999
38,423,613
73,555,633
Real
Estate
Management
&
Development
1.0%
a
CoStar
Group,
Inc.
....................................
United
States
489,040
35,900,426
Semiconductors
&
Semiconductor
Equipment
9.6%
Analog
Devices,
Inc.
...................................
United
States
199,753
31,427,140
a
ARM
Holdings
plc,
ADR
................................
United
States
237,100
11,686,659
ASML
Holding
NV,
NYRS
...............................
Netherlands
39,026
23,369,159
a
Lattice
Semiconductor
Corp.
.............................
United
States
539,432
29,997,814
Monolithic
Power
Systems,
Inc.
...........................
United
States
169,776
74,996,850
NVIDIA
Corp.
........................................
United
States
403,291
164,462,070
335,939,692
Software
22.4%
a
Adobe,
Inc.
..........................................
United
States
122,291
65,066,149
a
Atlassian
Corp.,
A
.....................................
United
States
125,321
22,637,985
a
BILL
Holdings,
Inc.
....................................
United
States
169,882
15,508,528
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a,b,c
ClearMotion,
Inc.
......................................
United
States
6,309,366
$
733,912
a
Confluent,
Inc.,
A
......................................
United
States
299,634
8,662,419
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
238,716
42,197,827
a
Datadog,
Inc.,
A
......................................
United
States
105,681
8,609,831
a
Fair
Isaac
Corp.
......................................
United
States
50,324
42,567,562
a
HubSpot,
Inc.
........................................
United
States
59,062
25,028,704
Intuit,
Inc.
...........................................
United
States
103,786
51,368,881
a
Klaviyo,
Inc.,
A
.......................................
United
States
65,600
1,868,944
Microsoft
Corp.
.......................................
United
States
538,088
181,932,934
a
Monday.com
Ltd.
......................................
United
States
72,676
9,447,153
Oracle
Corp.
.........................................
United
States
401,902
41,556,667
Roper
Technologies,
Inc.
................................
United
States
90,216
44,076,831
a
Salesforce,
Inc.
.......................................
United
States
75,620
15,186,765
a
ServiceNow,
Inc.
......................................
United
States
155,481
90,466,620
a
Synopsys,
Inc.
.......................................
United
States
116,156
54,528,273
a
Tyler
Technologies,
Inc.
.................................
United
States
75,967
28,328,094
a
Workday,
Inc.,
A
......................................
United
States
166,079
35,160,585
784,934,664
Specialized
REITs
1.0%
SBA
Communications
Corp.,
A
...........................
United
States
169,294
35,319,807
Specialty
Retail
0.6%
a
AutoZone,
Inc.
.......................................
United
States
7,878
19,514,830
Technology
Hardware,
Storage
&
Peripherals
3.8%
Apple,
Inc.
..........................................
United
States
776,341
132,575,753
Textiles,
Apparel
&
Luxury
Goods
0.2%
a
Figs,
Inc.,
A
..........................................
United
States
1,208,624
6,659,518
Water
Utilities
0.2%
a
Veralto
Corp.
.........................................
United
States
89,544
6,178,536
Total
Common
Stocks
(Cost
$1,666,873,956)
....................................
3,346,023,553
Convertible
Preferred
Stocks
1.3%
Software
1.3%
a,b,c
Databricks,
Inc.,
G
....................................
United
States
338,280
24,863,580
a,b,c
Lacework,
Inc.,
D
.....................................
United
States
810,440
14,173,618
a,b,c
OneTrust
LLC,
C
......................................
United
States
517,056
6,871,167
45,908,365
Total
Convertible
Preferred
Stocks
(Cost
$50,470,099)
...........................
45,908,365
Preferred
Stocks
1.1%
Commercial
Services
&
Supplies
0.2%
a,b,c,e
Optoro,
Inc.,
E
.......................................
United
States
556,026
8,161,638
a
Health
Care
Providers
&
Services
0.4%
a,b,c
Tempus
Labs,
Inc.,
F
...................................
United
States
504,854
10,907,182
a,b,c
Tempus
Labs,
Inc.,
G
..................................
United
States
126,131
2,725,013
13,632,195
Software
0.5%
a,b,c
ClearMotion,
Inc.,
A-3
..................................
United
States
417,667
61,321
a,b,c
ClearMotion,
Inc.,
A-4
..................................
United
States
2,606,463
358,874
a,b,c,e
Talkdesk,
Inc.,
C
......................................
United
States
1,753,060
9,558,940
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Preferred
Stocks
(continued)
Software
(continued)
a,b,c
Tanium,
Inc.,
G
.......................................
United
States
805,800
$
6,076,910
16,056,045
Total
Preferred
Stocks
(Cost
$44,049,689)
......................................
37,849,878
Escrows
and
Litigation
Trusts
0.0%
a,b
Proterra,
Inc.,
Escrow
Account
...........................
United
States
382,355
—
a,b
Wheels
Up
Experience,
Inc.,
Escrow
Account
................
United
States
10,278
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$1,761,393,744)
.............................
3,429,781,796
a
Short
Term
Investments
2.6%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
2.5%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
87,309,922
87,309,922
Total
Money
Market
Funds
(Cost
$87,309,922)
..................................
87,309,922
a
a
a
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
4,627,800
4,627,800
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$4,627,800)
............................................................
4,627,800
Total
Short
Term
Investments
(Cost
$91,937,722
)
................................
91,937,722
a
Total
Investments
(Cost
$1,853,331,466)
100.6%
................................
$3,521,719,518
Other
Assets,
less
Liabilities
(0.6)%
...........................................
(21,957,497)
Net
Assets
100.0%
...........................................................
$3,499,762,021
a
a
a
See
A
bbreviations
on
page
74
.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
c
See
Note
7
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2023.
See
Note
1(c).
e
See
Note
8
regarding
holdings
of
5%
voting
securities.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$17.19
$17.78
$30.08
$18.85
$21.46
$23.01
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.05)
(0.09)
(0.14)
(0.18)
(0.11)
(0.15)
Net
realized
and
unrealized
gains
(losses)
(0.87)
(0.40)
(7.89)
14.24
(1.07)
2.86
Total
from
investment
operations
........
(0.92)
(0.49)
(8.03)
14.06
(1.18)
2.71
Less
distributions
from:
Net
realized
gains
.................
—
(0.10)
(4.27)
(2.83)
(1.43)
(4.26)
Net
asset
value,
end
of
period
..........
$16.27
$17.19
$17.78
$30.08
$18.85
$21.46
Total
return
c
.......................
(5.35)%
(2.73)%
(29.53)%
76.43%
(6.25)%
16.06%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.09%
1.11%
1.03%
1.03%
1.07%
1.07%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.08%
1.10%
1.03%
f
1.02%
1.06%
1.06%
Net
investment
(loss)
................
(0.54)%
(0.54)%
(0.54)%
(0.69)%
(0.51)%
(0.68)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$689,572
$763,871
$860,536
$1,244,591
$686,791
$713,442
Portfolio
turnover
rate
................
8.69%
16.86%
30.88%
47.80%
35.29%
42.10%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.84
$12.37
$22.57
$14.69
$17.15
$19.41
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.08)
(0.15)
(0.25)
(0.29)
(0.21)
(0.28)
Net
realized
and
unrealized
gains
(losses)
(0.58)
(0.28)
(5.68)
11.00
(0.82)
2.28
Total
from
investment
operations
........
(0.66)
(0.43)
(5.93)
10.71
(1.03)
2.00
Less
distributions
from:
Net
realized
gains
.................
—
(0.10)
(4.27)
(2.83)
(1.43)
(4.26)
Net
asset
value,
end
of
period
..........
$11.18
$11.84
$12.37
$22.57
$14.69
$17.15
Total
return
c
.......................
(5.57)%
(3.44)%
(30.07)%
75.13%
(6.97)%
15.31%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.84%
1.86%
1.78%
1.78%
1.82%
1.82%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.83%
1.84%
1.78%
f
1.77%
1.81%
1.81%
Net
investment
(loss)
................
(1.29)%
(1.28)%
(1.31)%
(1.43)%
(1.26)%
(1.43)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$18,192
$20,551
$32,755
$86,394
$66,269
$90,513
Portfolio
turnover
rate
................
8.69%
16.86%
30.88%
47.80%
35.29%
42.10%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.52
$16.10
$27.76
$17.58
$20.15
$21.93
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.06)
(0.12)
(0.19)
(0.23)
(0.15)
(0.20)
Net
realized
and
unrealized
gains
(losses)
(0.79)
(0.36)
(7.20)
13.24
(0.99)
2.68
Total
from
investment
operations
........
(0.85)
(0.48)
(7.39)
13.01
(1.14)
2.48
Less
distributions
from:
Net
realized
gains
.................
—
(0.10)
(4.27)
(2.83)
(1.43)
(4.26)
Net
asset
value,
end
of
period
..........
$14.67
$15.52
$16.10
$27.76
$17.58
$20.15
Total
return
c
.......................
(5.48)%
(2.95)%
(29.71)%
75.96%
(6.47)%
15.78%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.34%
1.36%
1.28%
1.28%
1.32%
1.32%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.33%
1.35%
1.28%
f
1.27%
1.31%
1.31%
Net
investment
(loss)
................
(0.79)%
(0.79)%
(0.79)%
(0.93)%
(0.76)%
(0.93)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$34,235
$39,777
$50,324
$79,314
$54,369
$74,634
Portfolio
turnover
rate
................
8.69%
16.86%
30.88%
47.80%
35.29%
42.10%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$20.15
$20.73
$34.14
$21.07
$23.73
$24.88
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.01)
(0.02)
(0.04)
(0.09)
(0.02)
(0.07)
Net
realized
and
unrealized
gains
(losses)
(1.03)
(0.46)
(9.10)
15.99
(1.21)
3.18
Total
from
investment
operations
........
(1.04)
(0.48)
(9.14)
15.90
(1.23)
3.11
Less
distributions
from:
Net
realized
gains
.................
—
(0.10)
(4.27)
(2.83)
(1.43)
(4.26)
Net
asset
value,
end
of
period
..........
$19.11
$20.15
$20.73
$34.14
$21.07
$23.73
Total
return
c
.......................
(5.16)%
(2.29)%
(29.26)%
77.13%
(5.86)%
16.50%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.68%
0.68%
0.65%
0.65%
0.67%
0.67%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.67%
0.66%
0.64%
0.64%
0.64%
0.64%
Net
investment
(loss)
................
(0.13)%
(0.10)%
(0.15)%
(0.31)%
(0.09)%
(0.26)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,178,858
$1,345,064
$1,529,170
$2,149,795
$1,136,759
$1,084,442
Portfolio
turnover
rate
................
8.69%
16.86%
30.88%
47.80%
35.29%
42.10%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$19.59
$20.19
$33.43
$20.70
$23.37
$24.61
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.03)
(0.05)
(0.08)
(0.13)
(0.06)
(0.10)
Net
realized
and
unrealized
gains
(losses)
(0.99)
(0.45)
(8.89)
15.69
(1.18)
3.12
Total
from
investment
operations
........
(1.02)
(0.50)
(8.97)
15.56
(1.24)
3.02
Less
distributions
from:
Net
realized
gains
.................
—
(0.10)
(4.27)
(2.83)
(1.43)
(4.26)
Net
asset
value,
end
of
period
..........
$18.57
$19.59
$20.19
$33.43
$20.70
$23.37
Total
return
c
.......................
(5.21)%
(2.50)%
(29.34)%
76.86%
(5.99)%
16.30%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.84%
0.86%
0.78%
0.78%
0.82%
0.82%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.83%
0.85%
0.77%
0.77%
0.81%
0.81%
Net
investment
(loss)
................
(0.29)%
(0.29)%
(0.29)%
(0.44)%
(0.26)%
(0.43)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$322,835
$341,973
$433,191
$739,985
$428,155
$725,622
Portfolio
turnover
rate
................
8.69%
16.86%
30.88%
47.80%
35.29%
42.10%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Small
Cap
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
94.9%
Aerospace
&
Defense
6.6%
a
AAR
Corp.
..........................................
United
States
815,100
$
48,384,336
a
Axon
Enterprise,
Inc.
...................................
United
States
64,900
13,271,401
BWX
Technologies,
Inc.
................................
United
States
759,400
56,408,232
a
Kratos
Defense
&
Security
Solutions,
Inc.
...................
United
States
1,797,664
30,650,171
148,714,140
Banks
1.6%
Pinnacle
Financial
Partners,
Inc.
..........................
United
States
359,704
22,431,141
Western
Alliance
Bancorp
...............................
United
States
324,800
13,349,280
35,780,421
Biotechnology
6.3%
a,b
Acumen
Pharmaceuticals,
Inc.
...........................
United
States
1,200,300
2,244,561
a,b
Apogee
Therapeutics,
Inc.
...............................
United
States
516,900
8,880,342
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
217,200
19,398,132
a
Cullinan
Oncology,
Inc.
.................................
United
States
755,500
7,048,815
a
Cytokinetics,
Inc.
......................................
United
States
321,000
11,190,060
a
Day
One
Biopharmaceuticals,
Inc.
.........................
United
States
1,172,622
13,872,118
a
Dyne
Therapeutics,
Inc.
................................
United
States
736,500
5,192,325
a
Heron
Therapeutics,
Inc.
................................
United
States
1,797,608
1,144,897
a
Insmed,
Inc.
.........................................
United
States
1,019,000
25,536,140
a
Karuna
Therapeutics,
Inc.
...............................
United
States
71,700
11,945,937
a
Kura
Oncology,
Inc.
....................................
United
States
571,700
4,830,865
a
Merus
NV
...........................................
Netherlands
312,800
6,290,408
a
RayzeBio,
Inc.
.......................................
United
States
449,900
8,728,060
a
Sutro
Biopharma,
Inc.
..................................
United
States
968,449
2,663,235
a
Twist
Bioscience
Corp.
.................................
United
States
119,862
1,889,025
a
Vaxcyte,
Inc.
.........................................
United
States
204,100
9,817,210
140,672,130
Building
Products
1.1%
a
Masonite
International
Corp.
.............................
United
States
300,200
23,757,828
Capital
Markets
3.6%
Bridge
Investment
Group
Holdings,
Inc.,
A
...................
United
States
1,410,600
10,269,168
Evercore,
Inc.,
A
......................................
United
States
239,800
31,217,164
Houlihan
Lokey,
Inc.,
A
.................................
United
States
384,200
38,619,784
80,106,116
Communications
Equipment
0.7%
a
Viavi
Solutions,
Inc.
....................................
United
States
2,100,600
16,342,668
Construction
&
Engineering
3.5%
Arcosa,
Inc.
.........................................
United
States
685,200
47,326,764
Granite
Construction,
Inc.
...............................
United
States
772,843
31,284,685
78,611,449
Consumer
Staples
Distribution
&
Retail
0.5%
a
Performance
Food
Group
Co.
............................
United
States
202,400
11,690,624
Diversified
Consumer
Services
0.5%
a
Nerdy,
Inc.
..........................................
United
States
3,825,800
11,783,464
Electronic
Equipment,
Instruments
&
Components
1.4%
Vontier
Corp.
.........................................
United
States
1,091,200
32,255,872
Energy
Equipment
&
Services
2.0%
Liberty
Energy,
Inc.,
A
..................................
United
States
2,215,100
43,637,470
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Financial
Services
4.6%
a
Flywire
Corp.
........................................
United
States
1,431,010
$
38,479,859
a,c
Paymentus
Holdings,
Inc.,
A
.............................
United
States
2,013,888
29,322,209
a
Repay
Holdings
Corp.,
A
................................
United
States
1,395,637
8,359,866
a
Shift4
Payments,
Inc.,
A
................................
United
States
587,900
26,173,308
102,335,242
Food
Products
3.4%
a
Freshpet,
Inc.
........................................
United
States
414,800
23,809,520
a
Nomad
Foods
Ltd.
....................................
United
Kingdom
942,100
13,019,822
a
Simply
Good
Foods
Co.
(The)
............................
United
States
1,055,300
39,352,137
76,181,479
Health
Care
Equipment
&
Supplies
5.8%
a
Haemonetics
Corp.
....................................
United
States
485,600
41,387,688
a
Inari
Medical,
Inc.
.....................................
United
States
184,700
11,213,137
a
Inspire
Medical
Systems,
Inc.
............................
United
States
184,344
27,128,063
a
Integer
Holdings
Corp.
.................................
United
States
434,900
35,300,833
a
Neogen
Corp.
........................................
United
States
623,432
9,282,902
a
Pulmonx
Corp.
.......................................
United
States
647,016
5,687,271
129,999,894
Health
Care
Providers
&
Services
4.4%
a
HealthEquity,
Inc.
.....................................
United
States
636,216
45,603,963
a
Hims
&
Hers
Health,
Inc.
................................
United
States
1,606,947
9,609,543
a
NeoGenomics,
Inc.
....................................
United
States
1,270,400
17,811,008
a
Privia
Health
Group,
Inc.
................................
United
States
1,195,900
25,137,818
98,162,332
Health
Care
Technology
1.5%
a
Certara,
Inc.
.........................................
United
States
1,274,100
15,531,279
a
Phreesia,
Inc.
........................................
United
States
1,302,582
17,793,270
33,324,549
Hotel
&
Resort
REITs
0.6%
Pebblebrook
Hotel
Trust
................................
United
States
1,174,800
14,015,364
Hotels,
Restaurants
&
Leisure
5.6%
a,b
Cava
Group,
Inc.
......................................
United
States
383,400
12,111,606
a
Portillo's,
Inc.,
A
......................................
United
States
1,188,100
17,762,095
Red
Rock
Resorts,
Inc.,
A
...............................
United
States
913,900
36,144,745
Texas
Roadhouse,
Inc.,
A
...............................
United
States
249,500
25,334,230
Wingstop,
Inc.
........................................
United
States
191,613
35,021,108
126,373,784
Household
Durables
2.9%
a
M/I
Homes,
Inc.
.......................................
United
States
340,346
27,932,196
a
Sonos,
Inc.
..........................................
United
States
1,305,600
14,074,368
a
Tri
Pointe
Homes,
Inc.
..................................
United
States
933,700
23,398,522
65,405,086
Industrial
REITs
1.1%
Rexford
Industrial
Realty,
Inc.
............................
United
States
588,400
25,442,416
Interactive
Media
&
Services
1.0%
a
ZoomInfo
Technologies,
Inc.,
A
...........................
United
States
1,666,100
21,592,656
IT
Services
0.6%
a
BigCommerce
Holdings,
Inc.,
1
...........................
United
States
1,511,500
13,437,235
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
0.1%
a
CryoPort,
Inc.
........................................
United
States
330,300
$
3,203,910
Machinery
2.3%
Kennametal,
Inc.
......................................
United
States
920,700
21,277,377
a
RBC
Bearings,
Inc.
....................................
United
States
141,700
31,151,328
52,428,705
Media
1.4%
New
York
Times
Co.
(The),
A
.............................
United
States
754,656
30,420,183
Oil,
Gas
&
Consumable
Fuels
2.0%
Matador
Resources
Co.
................................
United
States
719,000
44,355,110
Passenger
Airlines
1.4%
Allegiant
Travel
Co.
....................................
United
States
473,648
31,554,430
Personal
Care
Products
2.8%
a
BellRing
Brands,
Inc.
...................................
United
States
1,163,300
50,871,109
a,b
Oddity
Tech
Ltd.,
A
....................................
Israel
492,100
12,573,155
63,444,264
Pharmaceuticals
2.8%
a
Cymabay
Therapeutics,
Inc.
.............................
United
States
662,700
10,855,026
a
EyePoint
Pharmaceuticals,
Inc.
...........................
United
States
1,507,500
9,075,150
a
Intra-Cellular
Therapies,
Inc.
.............................
United
States
339,400
16,888,544
a
Pliant
Therapeutics,
Inc.
................................
United
States
521,100
7,644,537
a
Revance
Therapeutics,
Inc.
..............................
United
States
1,536,492
12,122,922
a,d,e
Structure
Therapeutics,
Inc.
..............................
United
States
153,000
3,535,454
a,b
Structure
Therapeutics,
Inc.,
ADR
.........................
United
States
20,700
1,538,010
61,659,643
Professional
Services
2.8%
a
Legalzoom.com,
Inc.
...................................
United
States
2,680,980
26,729,371
a
Paycor
HCM,
Inc.
.....................................
United
States
1,616,200
34,877,596
61,606,967
Semiconductors
&
Semiconductor
Equipment
5.6%
a
Lattice
Semiconductor
Corp.
.............................
United
States
595,600
33,121,316
a
Onto
Innovation,
Inc.
...................................
United
States
420,909
47,297,544
a
Silicon
Laboratories,
Inc.
................................
United
States
123,100
11,347,358
a
SiTime
Corp.
.........................................
United
States
346,912
34,621,818
126,388,036
Software
9.0%
a
Alkami
Technology,
Inc.
.................................
United
States
399,350
7,168,332
a
Alteryx,
Inc.,
A
........................................
United
States
293,900
9,407,739
a
AvePoint,
Inc.
........................................
United
States
1,340,400
10,039,596
a,d,e
ClearMotion,
Inc.
......................................
United
States
3,698,772
430,245
a
CS
Disco,
Inc.
........................................
United
States
2,102,613
11,795,659
a
Envestnet,
Inc.
.......................................
United
States
289,622
10,716,014
a
Freshworks,
Inc.,
A
....................................
United
States
1,529,300
27,435,642
a
Gitlab,
Inc.,
A
........................................
United
States
793,000
34,321,040
a
HashiCorp,
Inc.,
A
.....................................
United
States
1,057,700
20,826,113
a
LiveRamp
Holdings,
Inc.
................................
United
States
1,191,900
32,967,954
a
Monday.com
Ltd.
......................................
United
States
254,900
33,134,451
a
Q2
Holdings,
Inc.
.....................................
United
States
117,600
3,531,528
201,774,313
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Specialty
Retail
2.9%
American
Eagle
Outfitters,
Inc.
...........................
United
States
624,300
$
10,906,521
a
Boot
Barn
Holdings,
Inc.
................................
United
States
340,660
23,675,870
a
Five
Below,
Inc.
.......................................
United
States
116,900
20,338,262
Lithia
Motors,
Inc.,
A
...................................
United
States
44,726
10,833,084
65,753,737
Textiles,
Apparel
&
Luxury
Goods
1.1%
a
Figs,
Inc.,
A
..........................................
United
States
957,700
5,276,927
Steven
Madden
Ltd.
...................................
United
States
604,450
19,819,915
25,096,842
Trading
Companies
&
Distributors
1.4%
a
Beacon
Roofing
Supply,
Inc.
.............................
United
States
451,000
32,097,670
Total
Common
Stocks
(Cost
$2,004,112,414)
....................................
2,129,406,029
Convertible
Preferred
Stocks
2.5%
Diversified
Consumer
Services
0.5%
a,d,e
Newsela,
Inc.,
D
......................................
United
States
709,046
12,140,632
a
Software
1.7%
a,c,d,e
Benchling,
Inc.,
F
.....................................
United
States
382,306
4,812,992
a,d,e
Checkr,
Inc.,
E
.......................................
United
States
1,388,889
21,000,432
a,d,e
OneTrust
LLC,
A
......................................
United
States
625,361
8,310,434
a,d,e
OneTrust
LLC,
A-1
....................................
United
States
56,457
750,258
a,d,e
Smule,
Inc.,
J
........................................
United
States
162,712
2,307,856
37,181,972
Specialty
Retail
0.3%
a,c,d,e
1661,
Inc.,
F
.........................................
United
States
3,436,485
7,194,673
a
Total
Convertible
Preferred
Stocks
(Cost
$80,764,394)
...........................
56,517,277
Preferred
Stocks
0.9%
Automobile
Components
0.3%
a,d,e
Tula
eTechnology,
Inc.
..................................
United
States
361,111
—
a,d,e
Tula
eTechnology,
Inc.,
E
...............................
United
States
3,611,111
6,123,025
6,123,025
Commercial
Services
&
Supplies
0.4%
a,c,d,e
Optoro,
Inc.,
E
.......................................
United
States
554,878
8,144,787
a
Software
0.2%
a,d,e
ClearMotion,
Inc.,
A-3
..................................
United
States
1,037,942
152,389
a,d,e
ClearMotion,
Inc.,
A-4
..................................
United
States
6,477,294
891,833
a,d,e
Smule,
Inc.,
144A,
G
...................................
United
States
1,542,673
2,576,963
a,d,e
Smule,
Inc.,
144A,
H
...................................
United
States
352,675
696,353
4,317,538
Total
Preferred
Stocks
(Cost
$32,144,989)
......................................
18,585,350
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
a
Country
Rights
a
Value
a
a
a
a
a
a
Rights
0.0%
†
Biotechnology
0.0%
†
a,d
Chinook
Therapeutics,
Inc.,
CVR,
8/18/23
...................
United
States
410,500
$
354,128
Total
Rights
(Cost
$160,095)
..................................................
354,128
Shares
Escrows
and
Litigation
Trusts
0.0%
a,d
Proterra,
Inc.,
Escrow
Account
...........................
United
States
344,921
—
a,d
Wheels
Up
Experience,
Inc.,
Escrow
Account
................
United
States
8,808
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$2,117,181,892)
.............................
2,204,862,784
a
Short
Term
Investments
3.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
2.2%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
48,465,421
48,465,421
Total
Money
Market
Funds
(Cost
$48,465,421)
..................................
48,465,421
a
a
a
h
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.1%
Money
Market
Funds
1.1%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
25,662,620
25,662,620
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$25,662,620)
...........................................................
25,662,620
Total
Short
Term
Investments
(Cost
$74,128,041
)
................................
74,128,041
a
Total
Investments
(Cost
$2,191,309,933)
101.6%
................................
$2,278,990,825
Other
Assets,
less
Liabilities
(1.6)%
...........................................
(35,299,761)
Net
Assets
100.0%
...........................................................
$2,243,691,064
a
a
a
See
Abbreviations
on
page
74
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2023.
See
Note
1(c).
c
See
Note
8
regarding
holdings
of
5%
voting
securities.
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
e
See
Note
7
regarding
restricted
securities.
f
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
h
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$29.75
$33.07
$49.66
$32.15
$37.17
$36.07
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(—)
c
(0.05)
(0.25)
(0.24)
(0.07)
(0.09)
Net
realized
and
unrealized
gains
(losses)
(1.07)
(1.39)
(9.42)
21.89
1.24
5.33
Total
from
investment
operations
........
(1.07)
(1.44)
(9.67)
21.65
1.17
5.24
Less
distributions
from:
Net
realized
gains
.................
—
(1.88)
(6.92)
(4.14)
(6.19)
(4.14)
Net
asset
value,
end
of
period
..........
$28.68
$29.75
$33.07
$49.66
$32.15
$37.17
Total
return
d
.......................
(3.60)%
(4.07)%
(22.83)%
68.37%
2.97%
17.43%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.87%
0.90%
0.85%
0.86%
0.88%
0.88%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.85%
0.88%
0.84%
0.85%
0.87%
0.87%
Net
investment
(loss)
................
(0.02)%
(0.17)%
(0.54)%
(0.54)%
(0.21)%
(0.25)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,399,481
$2,578,199
$3,019,703
$4,217,167
$2,515,801
$2,684,131
Portfolio
turnover
rate
................
26.91%
27.75%
48.89%
53.69%
52.98%
54.28%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$13.45
$16.20
$27.98
$19.41
$24.98
$25.84
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.05)
(0.13)
(0.32)
(0.33)
(0.22)
(0.26)
Net
realized
and
unrealized
gains
(losses)
(0.48)
(0.74)
(4.54)
13.04
0.84
3.54
Total
from
investment
operations
........
(0.53)
(0.87)
(4.86)
12.71
0.62
3.28
Less
distributions
from:
Net
realized
gains
.................
—
(1.88)
(6.92)
(4.14)
(6.19)
(4.14)
Net
asset
value,
end
of
period
..........
$12.92
$13.45
$16.20
$27.98
$19.41
$24.98
Total
return
c
.......................
(3.94)%
(4.76)%
(23.43)%
67.11%
2.14%
16.68%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.62%
1.65%
1.60%
1.61%
1.63%
1.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.60%
1.63%
1.59%
1.60%
1.62%
1.62%
Net
investment
(loss)
................
(0.76)%
(0.92)%
(1.29)%
(1.28)%
(0.96)%
(1.00)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$55,619
$82,982
$110,596
$198,713
$138,940
$173,334
Portfolio
turnover
rate
................
26.91%
27.75%
48.89%
53.69%
52.98%
54.28%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$24.93
$28.11
$43.32
$28.45
$33.66
$33.15
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.03)
(0.11)
(0.32)
(0.30)
(0.14)
(0.16)
Net
realized
and
unrealized
gains
(losses)
(0.89)
(1.19)
(7.97)
19.31
1.12
4.81
Total
from
investment
operations
........
(0.92)
(1.30)
(8.29)
19.01
0.98
4.65
Less
distributions
from:
Net
realized
gains
.................
—
(1.88)
(6.92)
(4.14)
(6.19)
(4.14)
Net
asset
value,
end
of
period
..........
$24.01
$24.93
$28.11
$43.32
$28.45
$33.66
Total
return
c
.......................
(3.69)%
(4.30)%
(23.00)%
67.96%
2.69%
17.17%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.12%
1.15%
1.10%
1.10%
1.12%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.10%
1.13%
1.09%
1.09%
1.11%
1.11%
Net
investment
(loss)
................
(0.27)%
(0.42)%
(0.79)%
(0.78)%
(0.45)%
(0.49)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$32,374
$34,371
$38,761
$60,264
$40,997
$50,721
Portfolio
turnover
rate
................
26.91%
27.75%
48.89%
53.69%
52.98%
54.28%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$36.39
$39.84
$58.24
$37.12
$41.83
$39.91
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.07
0.08
(0.10)
(0.10)
0.07
0.05
Net
realized
and
unrealized
gains
(losses)
(1.31)
(1.65)
(11.38)
25.36
1.41
6.01
Total
from
investment
operations
........
(1.24)
(1.57)
(11.48)
25.26
1.48
6.06
Less
distributions
from:
Net
realized
gains
.................
—
(1.88)
(6.92)
(4.14)
(6.19)
(4.14)
Net
asset
value,
end
of
period
..........
$35.15
$36.39
$39.84
$58.24
$37.12
$41.83
Total
return
c
.......................
(3.41)%
(3.70)%
(22.57)%
68.95%
3.40%
17.82%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.53%
0.51%
0.51%
0.52%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.49%
0.49%
0.50%
0.49%
0.48%
0.49%
Net
investment
income
(loss)
..........
0.35%
0.23%
(0.19)%
(0.19)%
0.18%
0.13%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$435,250
$451,447
$540,509
$648,078
$224,341
$259,053
Portfolio
turnover
rate
................
26.91%
27.75%
48.89%
53.69%
52.98%
54.28%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$35.22
$38.68
$56.79
$36.30
$41.09
$39.33
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
0.04
0.03
(0.15)
(0.14)
0.02
0.01
Net
realized
and
unrealized
gains
(losses)
(1.26)
(1.61)
(11.04)
24.77
1.38
5.89
Total
from
investment
operations
........
(1.22)
(1.58)
(11.19)
24.63
1.40
5.90
Less
distributions
from:
Net
realized
gains
.................
—
(1.88)
(6.92)
(4.14)
(6.19)
(4.14)
Net
asset
value,
end
of
period
..........
$34.00
$35.22
$38.68
$56.79
$36.30
$41.09
Total
return
c
.......................
(3.46)%
(3.81)%
(22.65)%
68.77%
3.26%
17.67%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.62%
0.65%
0.60%
0.61%
0.63%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.60%
0.63%
0.59%
0.60%
0.62%
0.62%
Net
investment
income
(loss)
..........
0.23%
0.08%
(0.28)%
(0.29)%
0.04%
—%
f
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$379,785
$469,050
$532,573
$552,987
$302,329
$355,141
Portfolio
turnover
rate
................
26.91%
27.75%
48.89%
53.69%
52.98%
54.28%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Small-Mid
Cap
Growth
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
94.9%
Aerospace
&
Defense
3.0%
a
Axon
Enterprise,
Inc.
...................................
United
States
226,400
$
46,296,536
a
TransDigm
Group,
Inc.
.................................
United
States
61,600
51,010,344
97,306,880
Automobile
Components
0.4%
a
Mobileye
Global,
Inc.,
A
.................................
Israel
396,500
14,143,155
Beverages
0.6%
a
Celsius
Holdings,
Inc.
..................................
United
States
127,600
19,406,684
Biotechnology
2.8%
a
Alnylam
Pharmaceuticals,
Inc.
............................
United
States
126,200
19,157,160
a
BioMarin
Pharmaceutical,
Inc.
............................
United
States
121,700
9,912,465
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
169,800
18,837,612
a
Seagen,
Inc.
.........................................
United
States
173,000
36,816,130
a
Vaxcyte,
Inc.
.........................................
United
States
148,100
7,123,610
91,846,977
Building
Products
1.8%
Trane
Technologies
plc
.................................
United
States
312,100
59,395,751
Capital
Markets
7.2%
Ares
Management
Corp.,
A
..............................
United
States
624,400
61,559,596
Blue
Owl
Capital,
Inc.,
A
................................
United
States
810,900
9,998,397
LPL
Financial
Holdings,
Inc.
.............................
United
States
221,900
49,820,988
MSCI,
Inc.,
A
.........................................
United
States
107,500
50,691,625
Nasdaq,
Inc.
.........................................
United
States
604,400
29,978,240
Tradeweb
Markets,
Inc.,
A
...............................
United
States
389,300
35,040,893
237,089,739
Chemicals
0.7%
Albemarle
Corp.
......................................
United
States
182,500
23,137,350
Commercial
Services
&
Supplies
1.2%
Republic
Services,
Inc.,
A
...............................
United
States
269,600
40,032,904
Communications
Equipment
1.2%
a
Arista
Networks,
Inc.
...................................
United
States
204,500
40,975,665
Containers
&
Packaging
1.0%
Avery
Dennison
Corp.
..................................
United
States
183,600
31,959,252
Electrical
Equipment
1.5%
AMETEK,
Inc.
........................................
United
States
142,300
20,031,571
Rockwell
Automation,
Inc.
...............................
United
States
112,300
29,513,563
49,545,134
Electronic
Equipment,
Instruments
&
Components
1.2%
Amphenol
Corp.,
A
....................................
United
States
477,400
38,454,570
Energy
Equipment
&
Services
0.6%
Halliburton
Co.
.......................................
United
States
532,300
20,940,682
Entertainment
1.3%
a
ROBLOX
Corp.,
A
.....................................
United
States
1,317,600
41,912,856
Financial
Services
1.0%
a
Block,
Inc.,
A
.........................................
United
States
759,100
30,553,775
a
Toast,
Inc.,
A
.........................................
United
States
238,200
3,808,818
34,362,593
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Food
Products
1.5%
a
Freshpet,
Inc.
........................................
United
States
334,100
$
19,177,340
Lamb
Weston
Holdings,
Inc.
.............................
United
States
339,900
30,523,020
49,700,360
Ground
Transportation
1.5%
Old
Dominion
Freight
Line,
Inc.
...........................
United
States
127,950
48,193,647
Health
Care
Equipment
&
Supplies
5.3%
a
Dexcom,
Inc.
.........................................
United
States
682,756
60,649,216
a
IDEXX
Laboratories,
Inc.
................................
United
States
121,200
48,415,764
a
Inari
Medical,
Inc.
.....................................
United
States
378,000
22,948,380
a
Insulet
Corp.
.........................................
United
States
81,600
10,817,712
a
Penumbra,
Inc.
.......................................
United
States
162,200
31,004,530
173,835,602
Health
Care
Providers
&
Services
0.8%
a
HealthEquity,
Inc.
.....................................
United
States
355,600
25,489,408
Health
Care
Technology
1.9%
a
Certara,
Inc.
.........................................
United
States
367,100
4,474,949
a
Veeva
Systems,
Inc.,
A
.................................
United
States
298,800
57,581,748
62,056,697
Hotels,
Restaurants
&
Leisure
4.6%
a,b
Cava
Group,
Inc.
......................................
United
States
214,800
6,785,532
Darden
Restaurants,
Inc.
...............................
United
States
310,700
45,216,171
a
DoorDash,
Inc.,
A
.....................................
United
States
260,200
19,501,990
a
Expedia
Group,
Inc.
...................................
United
States
434,300
41,384,447
Wingstop,
Inc.
........................................
United
States
107,900
19,720,883
Wynn
Resorts
Ltd.
....................................
United
States
222,500
19,531,050
152,140,073
Household
Durables
0.7%
a
NVR,
Inc.
...........................................
United
States
4,100
22,191,742
Industrial
REITs
0.8%
Terreno
Realty
Corp.
...................................
United
States
489,000
26,053,920
Insurance
1.1%
Arthur
J
Gallagher
&
Co.
................................
United
States
154,300
36,336,107
Interactive
Media
&
Services
2.6%
a
Match
Group,
Inc.
.....................................
United
States
1,011,259
34,989,561
a
Pinterest,
Inc.,
A
......................................
United
States
1,709,300
51,073,884
86,063,445
IT
Services
3.8%
a
Cloudflare,
Inc.,
A
.....................................
United
States
468,800
26,576,272
a
EPAM
Systems,
Inc.
...................................
United
States
106,600
23,192,962
a
Gartner,
Inc.
.........................................
United
States
142,200
47,216,088
a
MongoDB,
Inc.,
A
.....................................
United
States
87,100
30,013,789
126,999,111
Leisure
Products
1.5%
a,c,d
Fanatics
Holdings,
Inc.
.................................
United
States
793,714
51,009,875
Life
Sciences
Tools
&
Services
5.5%
a
10X
Genomics,
Inc.,
A
..................................
United
States
492,300
17,368,344
Agilent
Technologies,
Inc.
...............................
United
States
523,200
54,083,184
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
(continued)
a
Mettler-Toledo
International,
Inc.
..........................
United
States
42,900
$
42,265,080
a
Repligen
Corp.
.......................................
United
States
212,500
28,594,000
West
Pharmaceutical
Services,
Inc.
........................
United
States
126,900
40,391,001
182,701,609
Machinery
1.7%
IDEX
Corp.
..........................................
United
States
156,000
29,859,960
Xylem,
Inc.
..........................................
United
States
293,200
27,425,928
57,285,888
Media
0.5%
New
York
Times
Co.
(The),
A
.............................
United
States
404,200
16,293,302
Oil,
Gas
&
Consumable
Fuels
3.0%
Cheniere
Energy,
Inc.
..................................
United
States
277,200
46,131,624
Hess
Corp.
..........................................
United
States
196,300
28,345,720
Targa
Resources
Corp.
.................................
United
States
286,100
23,920,821
98,398,165
Passenger
Airlines
0.7%
Delta
Air
Lines,
Inc.
....................................
United
States
767,400
23,981,250
Personal
Care
Products
1.3%
a
BellRing
Brands,
Inc.
...................................
United
States
800,500
35,005,865
a,b
Oddity
Tech
Ltd.,
A
....................................
Israel
272,700
6,967,485
41,973,350
Pharmaceuticals
1.0%
a
Jazz
Pharmaceuticals
plc
...............................
United
States
248,300
31,539,066
Professional
Services
5.2%
Paychex,
Inc.
........................................
United
States
581,300
64,553,365
a
Paylocity
Holding
Corp.
.................................
United
States
185,864
33,344,002
TransUnion
..........................................
United
States
648,100
28,438,628
Verisk
Analytics,
Inc.,
A
.................................
United
States
203,800
46,335,968
172,671,963
Residential
REITs
1.0%
Equity
LifeStyle
Properties,
Inc.
...........................
United
States
515,100
33,893,580
Semiconductors
&
Semiconductor
Equipment
3.9%
a
ARM
Holdings
plc,
ADR
................................
United
States
211,900
10,444,551
a
Lattice
Semiconductor
Corp.
.............................
United
States
558,314
31,047,842
Monolithic
Power
Systems,
Inc.
...........................
United
States
100,800
44,527,392
a
Onto
Innovation,
Inc.
...................................
United
States
70,400
7,910,848
a
SiTime
Corp.
.........................................
United
States
230,414
22,995,317
a
Wolfspeed,
Inc.
.......................................
United
States
334,500
11,319,480
128,245,430
Software
11.7%
a
Alkami
Technology,
Inc.
.................................
United
States
1,110,200
19,928,090
a
ANSYS,
Inc.
.........................................
United
States
163,200
45,412,032
a
Arteris,
Inc.
..........................................
United
States
1,324,600
7,219,070
a
Atlassian
Corp.,
A
.....................................
United
States
133,200
24,061,248
a
BILL
Holdings,
Inc.
....................................
United
States
168,633
15,394,507
a
Crowdstrike
Holdings,
Inc.,
A
.............................
United
States
428,000
75,657,560
a
Datadog,
Inc.,
A
......................................
United
States
351,200
28,612,264
a
Fair
Isaac
Corp.
......................................
United
States
54,700
46,269,089
a
HubSpot,
Inc.
........................................
United
States
92,800
39,325,856
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
(continued)
a
Monday.com
Ltd.
......................................
United
States
139,000
$
18,068,610
a
Synopsys,
Inc.
.......................................
United
States
73,300
34,409,952
a
Workday,
Inc.,
A
......................................
United
States
151,900
32,158,749
386,517,027
Specialized
REITs
0.9%
SBA
Communications
Corp.,
A
...........................
United
States
138,500
28,895,255
Specialty
Retail
4.3%
a
Burlington
Stores,
Inc.
..................................
United
States
212,800
25,755,184
a
Five
Below,
Inc.
.......................................
United
States
170,400
29,646,192
Ross
Stores,
Inc.
.....................................
United
States
381,700
44,265,749
Tractor
Supply
Co.
....................................
United
States
217,600
41,901,056
141,568,181
Textiles,
Apparel
&
Luxury
Goods
0.9%
a
Lululemon
Athletica,
Inc.
................................
United
States
79,100
31,124,268
Trading
Companies
&
Distributors
1.7%
Fastenal
Co.
.........................................
United
States
975,800
56,928,172
Total
Common
Stocks
(Cost
$2,701,529,120)
....................................
3,132,596,685
Convertible
Preferred
Stocks
1.3%
Diversified
Consumer
Services
0.2%
a,c,d
Newsela,
Inc.,
D
......................................
United
States
423,782
7,256,202
a
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,c,d,e
Phononic
Devices,
Inc.,
F
...............................
United
States
2,970,061
213,711
a
Software
1.1%
a,c,d,e
Benchling,
Inc.,
F
.....................................
United
States
347,106
4,369,846
a,c,d,e
Blaize,
Inc.,
D
........................................
United
States
1,948,384
3,051,900
a,c,d,e
Blaize,
Inc.,
D-2
......................................
United
States
1,467,659
1,094,514
a,c,d
Databricks,
Inc.,
G
....................................
United
States
227,829
16,745,431
a,c,d,e
OneTrust
LLC,
C
......................................
United
States
767,526
10,199,668
35,461,359
Total
Convertible
Preferred
Stocks
(Cost
$83,781,543)
...........................
42,931,272
Preferred
Stocks
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,c,d,e
Phononic
Devices,
Inc.,
G-2
.............................
United
States
513,050
175,337
a,c,d,e
Phononic,
Inc.,
H
.....................................
United
States
117,763
489,474
664,811
Total
Preferred
Stocks
(Cost
$460,692)
.........................................
664,811
Warrants
Warrants
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,c,d,e
Phononic,
Inc.,
H,
10/17/27
..............................
United
States
47,104
33,629
Software
0.0%
a,c,d,e
Blaize,
Inc.,
9/19/25
...................................
United
States
146,765
—
a,c,d,e
Blaize,
Inc.,
12/09/25
...................................
United
States
1
—
a,c,d,e
Blaize,
Inc.,
8/23/33
...................................
United
States
1
—
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
(continued)
Software
(continued)
a,c,d,e
Blaize,
Inc.,
D,
2/28/24
.................................
United
States
260,815
$
—
—
Total
Warrants
(Cost
$44,091)
.................................................
33,629
Principal
Amount
*
Convertible
Bonds
0.1%
Software
0.1%
c,d,e
Blaize,
Inc.
,
10
%
,
1/03/25
...............................
United
States
1,804,600
1,804,600
Total
Convertible
Bonds
(Cost
$1,804,600)
.....................................
1,804,600
Corporate
Bonds
0.0%
†
Software
0.0%
†
c,d,e
Blaize,
Inc.
,
10
%
,
12/09/24
..............................
United
States
570,121
570,178
Total
Corporate
Bonds
(Cost
$570,121)
........................................
570,178
f
Senior
Floating
Rate
Interests
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
c,d,e,g
Phononic,
Inc.
,
Advance
Term
Loan
,
PIK,
12
%
,
6/30/25
.........
United
States
869,933
725,278
Total
Senior
Floating
Rate
Interests
(Cost
$815,824)
.............................
725,278
Shares
a
Escrows
and
Litigation
Trusts
0.0%
a,c
Proterra,
Inc.,
Escrow
Account
...........................
United
States
134,477
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$2,789,005,991)
.............................
3,179,326,453
a
Short
Term
Investments
4.2%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
3.8%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
125,213,135
125,213,135
Total
Money
Market
Funds
(Cost
$125,213,135)
.................................
125,213,135
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Short
Term
Investments
(continued)
a
a
Country
Shares
a
Value
a
a
a
a
a
a
j
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.4%
Money
Market
Funds
0.4%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
13,466,000
$
13,466,000
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$13,466,000)
...........................................................
13,466,000
Total
Short
Term
Investments
(Cost
$138,679,135
)
...............................
138,679,135
a
Total
Investments
(Cost
$2,927,685,126)
100.5%
................................
$3,318,005,588
Other
Assets,
less
Liabilities
(0.5)%
...........................................
(15,497,449)
Net
Assets
100.0%
...........................................................
$3,302,508,139
a
a
a
See
Abbreviations
on
page
74
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2023.
See
Note
1(c).
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
d
See
Note
7
regarding
restricted
securities.
e
See
Note
8
regarding
holdings
of
5%
voting
securities.
f
See
Note
1(d)
regarding
senior
floating
rate
interests.
g
Income
may
be
received
in
additional
securities
and/or
cash.
h
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
i
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
j
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$1,738,933,197
$2,030,830,476
$2,723,964,163
Cost
-
Non-controlled
affiliates
(Note
3
f
and
8
)
..................
114,398,269
160,479,457
203,720,963
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$4,379,270,
$25,116,288
and
$13,061,810,
respectively)
...................
$3,412,061,218
$2,155,388,123
$3,156,598,318
Value
-
Non-controlled
affiliates
(Note
3
f
and
8
)
.................
109,658,300
123,602,702
161,407,270
Cash
..................................................
3,718
—
—
Foreign
currency,
at
value
(cost
$–,
$–
and
$154,
respectively)
.......
—
—
154
Receivables:
Investment
securities
sold
.................................
—
909,717
12,827,935
Capital
shares
sold
......................................
1,117,630
1,073,325
954,684
Dividends
and
interest
...................................
284,489
144,675
1,140,037
Due
from
custodian
......................................
—
143,100
—
Total
assets
........................................
3,523,125,355
2,281,261,642
3,332,928,398
Liabilities:
Payables:
Investment
securities
purchased
............................
11,657,904
7,008,753
9,473,809
Capital
shares
redeemed
.................................
3,716,324
2,616,024
4,126,182
Management
fees
.......................................
1,696,905
1,225,848
1,303,355
Distribution
fees
........................................
698,264
183,934
591,624
Transfer
agent
fees
......................................
742,801
508,274
1,137,005
Trustees'
fees
and
expenses
...............................
76
5
59
Payable
upon
return
of
securities
loaned
(Note
1
c
)
................
4,627,800
25,805,720
13,466,000
Accrued
expenses
and
other
liabilities
.........................
223,260
222,020
322,225
Total
liabilities
.......................................
23,363,334
37,570,578
30,420,259
Net
assets,
at
value
...............................
$3,499,762,021
$2,243,691,064
$3,302,508,139
Net
assets
consist
of:
Paid-in
capital
...........................................
$1,319,217,626
$2,255,124,175
$3,202,109,532
Total
distributable
earnings
(losses)
...........................
2,180,544,395
(11,433,111)
100,398,607
Net
assets,
at
value
...............................
$3,499,762,021
$2,243,691,064
$3,302,508,139
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
October
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Class
A:
Net
assets,
at
value
.....................................
$2,829,560,440
$689,572,283
$2,399,481,031
Shares
outstanding
......................................
69,054,147
42,376,407
83,655,276
Net
asset
value
per
share
a
................................
$40.98
$16.27
$28.68
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
..............................................
$43.37
$17.22
$30.35
Class
C:
Net
assets,
at
value
.....................................
$80,142,494
$18,191,668
$55,618,533
Shares
outstanding
......................................
2,663,093
1,627,602
4,304,827
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$30.09
$11.18
$12.92
Class
R:
Net
assets,
at
value
.....................................
$23,586,022
$34,234,914
$32,373,540
Shares
outstanding
......................................
624,513
2,333,810
1,348,439
Net
asset
value
and
maximum
offering
price
per
share
...........
$37.77
$14.67
$24.01
Class
R6:
Net
assets,
at
value
.....................................
$330,821,293
$1,178,857,691
$435,249,962
Shares
outstanding
......................................
7,032,685
61,687,183
12,382,240
Net
asset
value
and
maximum
offering
price
per
share
...........
$47.04
$19.11
$35.15
Advisor
Class:
Net
assets,
at
value
.....................................
$235,651,772
$322,834,508
$379,785,073
Shares
outstanding
......................................
5,116,264
17,386,796
11,170,496
Net
asset
value
and
maximum
offering
price
per
share
...........
$46.06
$18.57
$34.00
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$14,234,
$–
and
$–,
respectively)
Unaffiliated
issuers
......................................
$9,533,919
$5,639,230
$10,678,516
Non-controlled
affiliates
(Note
3
f
and
8
)
.......................
984,351
928,357
4,345,493
Interest:
Unaffiliated
issuers
......................................
—
—
244,556
Non-controlled
affiliates
(Note
3
f
and
8
)
.......................
—
—
102,203
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
...................
(145,520)
(125,144)
44,001
Non-controlled
affiliates
(Note
3
f
)
...........................
263,203
471,468
141,171
Total
investment
income
.................................
10,635,953
6,913,911
15,555,940
Expenses:
Management
fees
(Note
3
a
)
.................................
10,694,970
7,898,380
8,484,403
Distribution
fees:
(Note
3c
)
Class
A
..............................................
3,727,395
974,399
3,296,975
Class
C
..............................................
579,007
103,576
391,261
Class
R
..............................................
62,263
98,974
88,556
Transfer
agent
fees:
(Note
3e
)
Class
A
..............................................
1,500,582
743,311
1,890,830
Class
C
..............................................
58,313
19,752
56,043
Class
R
..............................................
12,532
37,749
25,394
Class
R6
.............................................
47,124
203,629
97,307
Advisor
Class
..........................................
170,975
336,127
350,981
Custodian
fees
(Note
4
)
....................................
8,257
25,029
10,324
Reports
to
shareholders
fees
................................
120,107
121,538
173,414
Registration
and
filing
fees
..................................
54,367
68,238
61,753
Professional
fees
.........................................
56,571
61,973
46,874
Trustees'
fees
and
expenses
................................
23,219
15,103
21,995
Interest
expense
.........................................
4,136
—
—
Other
..................................................
63,127
44,923
58,338
Total
expenses
.......................................
17,182,945
10,752,701
15,054,448
Expense
reductions
(Note
4
)
.............................
(547)
(896)
(586)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(85,193)
(92,791)
(344,945)
Net
expenses
.......................................
17,097,205
10,659,014
14,708,917
Net
investment
income
(loss)
..........................
(6,461,252)
(3,745,103)
847,023
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
505,649,808
(45,828,117)
166,915,280
Non-controlled
affiliates
(Note
3
f
and
8
)
.....................
—
(3,708,762)
—
Foreign
currency
transactions
..............................
(155)
—
2,334
Net
realized
gain
(loss)
................................
505,649,653
(49,536,879)
166,917,614
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(316,836,600)
(83,668,356)
(286,948,929)
Non-controlled
affiliates
(Note
3
f
and
8
)
.....................
(402,624)
16,093,065
(943,197)
Net
change
in
unrealized
appreciation
(depreciation)
..........
(317,239,224)
(67,575,291)
(287,892,126)
Net
realized
and
unrealized
gain
(loss)
..........................
188,410,429
(117,112,170)
(120,974,512)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$181,949,177
$(120,857,273)
$(120,127,489)
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(6,461,252)
$(9,874,135)
$(3,745,103)
$(7,326,644)
Net
realized
gain
(loss)
............
505,649,653
159,660,518
(49,536,879)
(95,635,906)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(317,239,224)
(390,972,122)
(67,575,291)
19,949,802
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
181,949,177
(241,185,739)
(120,857,273)
(83,012,748)
Distributions
to
shareholders:
Class
A
........................
—
(117,604,433)
—
(4,398,226)
Class
C
........................
—
(7,051,867)
—
(182,310)
Class
R
........................
—
(1,037,867)
—
(269,006)
Class
R6
.......................
—
(16,500,576)
—
(6,963,574)
Advisor
Class
...................
—
(12,978,865)
—
(1,824,783)
Total
distributions
to
shareholders
.....
—
(155,173,608)
—
(13,637,899)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(65,550,779)
(156,935,909)
(36,299,202)
(65,065,140)
Class
C
........................
(46,752,695)
(22,566,167)
(1,334,614)
(10,464,989)
Class
R
........................
(132,231)
(1,799,745)
(3,639,091)
(8,407,569)
Class
R6
.......................
(143,917,176)
23,823,563
(104,743,508)
(136,904,139)
Advisor
Class
...................
(106,937,370)
(264,796,290)
(670,187)
(77,248,269)
Total
capital
share
transactions
.......
(363,290,251)
(422,274,548)
(146,686,602)
(298,090,106)
Net
increase
(decrease)
in
net
assets
.....................
(181,341,074)
(818,633,895)
(267,543,875)
(394,740,753)
Net
assets:
Beginning
of
period
................
3,681,103,095
4,499,736,990
2,511,234,939
2,905,975,692
End
of
period
.....................
$3,499,762,021
$3,681,103,095
$2,243,691,064
$2,511,234,939
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
Franklin
Small-Mid
Cap
Growth
Fund
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
............................................
$847,023
$(3,896,955)
Net
realized
gain
(loss)
.................................................
166,917,614
(241,439,881)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(287,892,126)
56,299,755
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(120,127,489)
(189,037,081)
Distributions
to
shareholders:
Class
A
.............................................................
—
(158,598,985)
Class
C
.............................................................
—
(10,930,574)
Class
R
.............................................................
—
(2,417,236)
Class
R6
............................................................
—
(22,679,273)
Advisor
Class
........................................................
—
(24,693,770)
Total
distributions
to
shareholders
..........................................
—
(219,319,838)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(91,697,089)
(147,703,497)
Class
C
.............................................................
(26,061,412)
(10,637,467)
Class
R
.............................................................
(805,884)
(158,411)
Class
R6
............................................................
(759,658)
(44,934,203)
Advisor
Class
........................................................
(74,090,451)
(14,301,398)
Total
capital
share
transactions
............................................
(193,414,494)
(217,734,976)
Net
increase
(decrease)
in
net
assets
...................................
(313,541,983)
(626,091,895)
Net
assets:
Beginning
of
period
.....................................................
3,616,050,122
4,242,142,017
End
of
period
..........................................................
$3,302,508,139
$3,616,050,122
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
52
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
ten
separate
funds, three
of
which
are
included
in
this
report
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer five classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6,
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
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.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds,
and/or
uninvested
cash
as
included
in
due
from
custodian
in
the
Statements
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statements
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
54
franklintempleton.com
Semiannual
Report
d.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
e.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2023, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Certain
or
all
Funds
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Funds.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2023
,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value)
.
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
a
...................................
5,386,775
$225,007,879
3,066,957
$54,410,074
Shares
redeemed
...............................
(6,952,638)
(290,558,658)
(5,124,602)
(90,709,276)
Net
increase
(decrease)
..........................
(1,565,863)
$(65,550,779)
(2,057,645)
$(36,299,202)
Year
ended
April
30,
2023
Shares
sold
a
...................................
4,502,909
$173,052,149
6,638,254
$110,403,207
Shares
issued
in
reinvestment
of
distributions
..........
3,214,869
114,802,255
267,974
4,284,631
Shares
redeemed
...............................
(11,643,392)
(444,790,313)
(10,879,344)
(179,752,978)
Net
increase
(decrease)
..........................
(3,925,614)
$(156,935,909)
(3,973,116)
$(65,065,140)
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
490,330
$14,958,651
227,457
$2,751,377
Shares
redeemed
a
..............................
(1,952,437)
(61,711,346)
(335,235)
(4,085,991)
Net
increase
(decrease)
..........................
(1,462,107)
$(46,752,695)
(107,778)
$(1,334,614)
Year
ended
April
30,
2023
Shares
sold
...................................
619,760
$17,604,728
334,406
$3,847,147
Shares
issued
in
reinvestment
of
distributions
..........
266,009
7,022,634
16,407
181,129
Shares
redeemed
a
..............................
(1,642,280)
(47,193,529)
(1,263,004)
(14,493,265)
Net
increase
(decrease)
..........................
(756,511)
$(22,566,167)
(912,191)
$(10,464,989)
Class
R
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Accounting
Estimates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
56
franklintempleton.com
Semiannual
Report
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Shares
Amount
Shares
Amount
Class
R
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
78,711
$3,031,533
277,535
$4,478,760
Shares
redeemed
...............................
(81,442)
(3,163,764)
(507,314)
(8,117,851)
Net
increase
(decrease)
..........................
(2,731)
$(132,231)
(229,779)
$(3,639,091)
Year
ended
April
30,
2023
Shares
sold
...................................
79,609
$2,804,309
449,685
$6,762,540
Shares
issued
in
reinvestment
of
distributions
..........
31,444
1,037,342
18,629
269,006
Shares
redeemed
...............................
(158,057)
(5,641,396)
(1,031,229)
(15,439,115)
Net
increase
(decrease)
..........................
(47,004)
$(1,799,745)
(562,915)
$(8,407,569)
Class
R6
Class
R6
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
291,624
$14,260,116
6,137,386
$129,936,385
Shares
redeemed
...............................
(3,267,234)
(158,177,292)
(11,210,573)
(234,679,893)
Net
increase
(decrease)
..........................
(2,975,610)
$(143,917,176)
(5,073,187)
$(104,743,508)
Year
ended
April
30,
2023
Shares
sold
...................................
1,651,644
$70,823,865
12,663,755
$246,093,068
Shares
issued
in
reinvestment
of
distributions
..........
295,080
12,059,884
331,570
6,203,670
Shares
redeemed
...............................
(1,359,181)
(59,060,186)
(20,016,884)
(389,200,877)
Net
increase
(decrease)
..........................
587,543
$23,823,563
(7,021,559)
$(136,904,139)
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
431,986
$20,835,857
2,147,682
$44,275,406
Shares
redeemed
...............................
(2,714,660)
(127,773,227)
(2,216,632)
(44,945,593)
Net
increase
(decrease)
..........................
(2,282,674)
$(106,937,370)
(68,950)
$(670,187)
Year
ended
April
30,
2023
Shares
sold
...................................
4,060,600
$171,533,914
4,622,859
$87,576,461
Shares
issued
in
reinvestment
of
distributions
..........
315,501
12,635,806
88,186
1,604,993
Shares
redeemed
in-kind
(Note
3
h
)
..................
(5,364,050)
(242,240,519)
—
—
Shares
redeemed
...............................
(4,855,182)
(206,725,491)
(8,708,001)
(166,429,723)
Net
increase
(decrease)
..........................
(5,843,131)
$(264,796,290)
(3,996,956)
$(77,248,269)
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
57
franklintempleton.com
Semiannual
Report
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
a
...................................
5,580,860
$169,634,822
Shares
redeemed
...............................
(8,581,720)
(261,331,911)
Net
increase
(decrease)
..........................
(3,000,860)
$(91,697,089)
Year
ended
April
30,
2023
Shares
sold
a
...................................
6,633,600
$198,652,679
Shares
issued
in
reinvestment
of
distributions
..........
5,494,365
154,666,446
Shares
redeemed
...............................
(16,780,836)
(501,022,622)
Net
increase
(decrease)
..........................
(4,652,871)
$(147,703,497)
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
638,566
$8,656,362
Shares
redeemed
a
..............................
(2,502,609)
(34,717,774)
Net
increase
(decrease)
..........................
(1,864,043)
$(26,061,412)
Year
ended
April
30,
2023
Shares
sold
...................................
860,980
$12,250,320
Shares
issued
in
reinvestment
of
distributions
..........
851,635
10,866,855
Shares
redeemed
a
..............................
(2,370,166)
(33,754,642)
Net
increase
(decrease)
..........................
(657,551)
$(10,637,467)
Class
R
Class
R
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
135,072
$3,434,013
Shares
redeemed
...............................
(165,093)
(4,239,897)
Net
increase
(decrease)
..........................
(30,021)
$(805,884)
Year
ended
April
30,
2023
Shares
sold
...................................
229,482
$5,787,643
Shares
issued
in
reinvestment
of
distributions
..........
101,961
2,408,346
Shares
redeemed
...............................
(331,668)
(8,354,400)
Net
increase
(decrease)
..........................
(225)
$(158,411)
Class
R6
Class
R6
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
1,434,816
$54,174,612
Shares
redeemed
...............................
(1,456,710)
(54,934,270)
Net
increase
(decrease)
..........................
(21,894)
$(759,658)
Year
ended
April
30,
2023
Shares
sold
...................................
2,952,937
$107,377,100
Shares
issued
in
reinvestment
of
distributions
..........
581,100
19,984,012
Shares
redeemed
...............................
(4,697,122)
(172,295,315)
Net
increase
(decrease)
..........................
(1,163,085)
$(44,934,203)
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
58
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
Franklin
Growth
Opportunities
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small-Mid
Cap
Growth
Fund
Shares
Amount
Advisor
Class
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
1,150,116
$42,152,511
Shares
redeemed
...............................
(3,296,773)
(116,242,962)
Net
increase
(decrease)
..........................
(2,146,657)
$(74,090,451)
Year
ended
April
30,
2023
Shares
sold
...................................
2,320,439
$83,749,485
Shares
issued
in
reinvestment
of
distributions
..........
724,960
24,141,123
Shares
redeemed
...............................
(3,498,606)
(122,192,006)
Net
increase
(decrease)
..........................
(453,207)
$(14,301,398)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.700%
Up
to
and
including
$500
million
0.600%
Over
$500
million,
up
to
and
including
$1
billion
0.550%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.500%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.475%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.450%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.440%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.430%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.420%
In
excess
of
$21.5
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
59
franklintempleton.com
Semiannual
Report
Franklin
Small
Cap
Growth
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Small-Mid
Cap
Growth
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2023,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds’
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
and
R
compensation
distribution
plans,
Annualized
Fee
Rate
Net
Assets
0.750%
Up
to
and
including
$500
million
0.650%
Over
$500
million,
up
to
and
including
$1
billion
0.600%
Over
$1
billion,
up
to
and
including
$1.5
billion
0.550%
Over
$1.5
billion,
up
to
and
including
$6.5
billion
0.525%
Over
$6.5
billion,
up
to
and
including
$11.5
billion
0.500%
Over
$11.5
billion,
up
to
and
including
$16.5
billion
0.490%
Over
$16.5
billion,
up
to
and
including
$19
billion
0.480%
Over
$19
billion,
up
to
and
including
$21.5
billion
0.470%
In
excess
of
$21.5
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Gross
effective
investment
management
fee
rate
........
0.545%
0.619%
0.457%
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
60
franklintempleton.com
Semiannual
Report
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
For
Franklin
Growth
Opportunities
Fund
and
Franklin
Small
Cap
Growth
Fund,
the
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly,
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2023,
the
fees
are
based
on
a
fixed
margin
earned
by
Investor
Services
and
are
allocated
to
the
Funds
based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2023,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Class
A
...............................
0.35%
0.35%
0.25%
Class
C
...............................
1.00%
1.00%
1.00%
Class
R
...............................
0.50%
0.50%
0.50%
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$103,288
$49,256
$104,201
CDSC
retained
...........................
$7,012
$5,246
$7,305
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
61
franklintempleton.com
Semiannual
Report
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Transfer
agent
fees
........................
$694,900
$561,752
$819,183
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$84,915,861
$587,796,611
$(585,402,550)
$—
$—
$87,309,922
87,309,922
$984,351
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$24,476,348
$82,403,677
$(102,252,225)
$—
$—
$4,627,800
4,627,800
$263,203
Total
Affiliated
Securities
...
$109,392,209
$670,200,288
$(687,654,775)
$—
$—
$91,937,722
$1,247,554
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$32,742,362
$261,795,392
$(246,072,333)
$—
$—
$48,465,421
48,465,421
$928,357
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$12,159,690
$173,185,981
$(159,683,051)
$—
$—
$25,662,620
25,662,620
$471,468
Total
Affiliated
Securities
...
$44,902,052
$434,981,373
$(405,755,384)
$—
$—
$74,128,041
$1,399,825
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
62
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds
have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2024.
h.
Other
Affiliated
Transactions
During
the
year
ended
April
30,
2023,
the
New
Jersey
Better
Educational
Savings
Trust
Program
-
Franklin
Templeton
Managed
Investments
Options
(529
Portfolios)
redeemed
out
of
the
Franklin
Growth
Opportunities
Fund.
As
a
result,
on
July
22,
2022,
the
Fund
delivered
portfolio
securities
and
cash
that
were
transferred
in-kind
to
the
529
Portfolios,
which
included
$145,404,409
of
net
realized
gains.
As
such
gains
are
not
taxable
to
the
Fund
and
are
not
distributed
to
remaining
shareholders,
they
are
reclassified
from
accumulated
net
realized
gains
to
paid-in
capital.
4.
Expense
Offset
Arrangement
The
Funds
have
previously
entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the
period
ended
October
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
Effective
July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$180,826,526
$245,137,583
$(300,750,974)
$—
$—
$125,213,135
125,213,135
$4,345,493
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$—
$76,708,295
$(63,242,295)
$—
$—
$13,466,000
13,466,000
$141,171
Total
Affiliated
Securities
...
$180,826,526
$321,845,878
$(363,993,269)
$—
$—
$138,679,135
$4,486,664
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
63
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2023,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At April
30,
2023,
the
deferred
losses
were
as
follows:
At
October
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales
and
in-kind
transactions.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
October
31,
2023,
were
as
follows:
At
October
31,
2023,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
31,793,662
$
420,583,613
Long
term
.............................
63,983,400
21,321,771
Total
capital
loss
carryforwards
............
$95,777,062
$441,905,384
Franklin
Small
Cap
Growth
Fund
Franklin
Small-Mid
Cap
Growth
Fund
Late-year
ordinary
loss
...........................
$3,841,241
$972,503
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
a
a
a
a
Cost
of
investments
.......................
$1,854,292,886
$2,198,508,114
$2,950,323,870
Unrealized
appreciation
.....................
$1,785,000,923
$582,628,122
$732,113,823
Unrealized
depreciation
.....................
(117,574,291)
(502,145,411)
(364,432,105)
Net
unrealized
appreciation
(depreciation)
.......
$1,667,426,632
$80,482,711
$367,681,718
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Purchases
..............................
$791,038,637
$215,853,216
$940,086,002
Sales
..................................
$1,140,933,861
$369,317,012
$1,031,133,819
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
64
franklintempleton.com
Semiannual
Report
7.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
October
31,
2023,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Franklin
Growth
Opportunities
Fund
Franklin
Small
Cap
Growth
Fund
Franklin
Small-
Mid
Cap
Growth
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$4,627,800
$25,805,720
$13,466,000
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Opportunities
Fund
11,829
Canva,
Inc.
................................
12/22/21
$
20,158,531
$
11,818,306
4,619
Celonis
SE
.................................
6/16/21
1,708,060
1,253,201
25,571
Celonis
SE,
D
..............................
6/16/21
-
10/04/22
9,427,681
6,937,783
6,309,366
ClearMotion,
Inc.
............................
11/06/17
-
12/21/18
15,500,000
733,912
417,667
ClearMotion,
Inc.,
A-3
.........................
3/23/23
—
61,321
2,606,463
ClearMotion,
Inc.,
A-4
.........................
12/21/21
251,500
358,874
338,280
Databricks,
Inc.,
G
...........................
2/01/21
20,000,005
24,863,580
1,029,939
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
19,730,229
66,191,423
810,440
Lacework,
Inc.,
D
............................
11/12/21
20,330,471
14,173,618
517,056
OneTrust
LLC,
C
............................
4/01/21
10,139,623
6,871,167
556,026
Optoro,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,942,592
8,161,638
142,857
Space
Exploration
Technologies
Corp.,
A
..........
5/25/22
9,999,990
11,571,417
1,753,060
Talkdesk,
Inc.,
C
............................
7/15/20
11,517,955
9,558,940
805,800
Tanium,
Inc.,
G
..............................
9/14/15
4,000,233
6,076,910
504,854
Tempus
Labs,
F
.........................
5/29/19
12,499,983
10,907,182
126,131
Tempus
Labs,
Inc.,
G
.........................
2/06/20
4,837,426
2,725,013
Total
Restricted
Securities
(Value
is
5.2%
of
Net
Assets)
..............
$171,044,279
$182,264,285
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
3,436,485
1661,
Inc.,
F
................................
5/28/21
$
19,999,999
$
7,194,673
382,306
Benchling,
Inc.,
F
............................
10/20/21
12,499,992
4,812,992
6.
Investment
Transactions
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
65
franklintempleton.com
Semiannual
Report
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
(continued)
1,388,889
Checkr,
Inc.,
E
..............................
8/24/21
$
25,000,002
$
21,000,432
3,698,772
ClearMotion,
Inc.
............................
12/21/18
10,000,000
430,245
1,037,942
ClearMotion,
Inc.,
A-3
.........................
3/23/23
—
152,389
6,477,294
ClearMotion,
Inc.,
A-4
.........................
12/21/21
625,000
891,833
709,046
Newsela,
Inc.,
D
.............................
1/21/21
15,000,010
12,140,632
625,361
OneTrust
LLC,
A
............................
3/10/23
6,878,971
8,310,434
56,457
OneTrust
LLC,
A-1
...........................
3/10/23
621,027
750,258
554,878
Optoro,
Inc.,
E
..............................
7/24/18
-
12/01/21
10,919,999
8,144,787
1,542,673
Smule,
Inc.,
144A,
G
.........................
5/31/16
11,099,995
2,576,963
352,675
Smule,
Inc.,
144A,
H
.........................
4/27/17
2,999,995
696,353
162,712
Smule,
Inc.,
J
...............................
8/05/22
-
11/28/22
764,393
2,307,856
153,000
a
Structure
Therapeutics
Inc
.....................
9/29/23
1,910,970
3,535,454
361,111
Tula
eTechnology,
Inc.
........................
11/01/18
—
—
3,611,111
Tula
eTechnology,
Inc.,
E
......................
9/08/17
6,500,000
6,123,025
Total
Restricted
Securities
(Value
is
3.5%
of
Net
Assets)
..............
$124,820,353
$79,068,326
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small-Mid
Cap
Growth
Fund
347,106
Benchling,
Inc.,
F
............................
10/20/21
$
11,349,082
$
4,369,846
1,804,600
Blaize,
Inc.,
10%,
1/03/25
......................
8/23/23
1,804,600
1,804,600
570,121
Blaize,
Inc.,
10%,
12/09/24
.....................
1/19/23
570,121
570,178
1
Blaize,
Inc.,
12/09/25
.........................
1/19/23
57
—
1
Blaize,
Inc.,
8/23/33
..........................
8/23/23
—
—
146,765
Blaize,
Inc.,
9/19/25
..........................
9/20/22
-
9/22/22
5
—
1,948,384
Blaize,
Inc.,
D
..............................
3/02/21
-
11/09/21
20,346,009
3,051,900
260,815
Blaize,
Inc.,
D,
2/28/24
........................
3/01/21
-
11/09/21
—
—
1,467,659
Blaize,
Inc.,
D-2
.............................
4/01/22
-
9/20/22
7,099,996
1,094,514
227,829
Databricks,
Inc.,
G
...........................
2/01/21
13,469,850
16,745,431
793,714
Fanatics
Holdings,
Inc.
........................
8/13/20
-
3/22/21
14,052,061
51,009,875
423,782
Newsela,
Inc.,
D
.............................
1/21/21
8,965,193
7,256,202
767,526
OneTrust
LLC,
C
............................
4/01/21
15,051,415
10,199,668
2,970,061
Phononic
Devices,
Inc.,
F
......................
6/06/19
7,499,998
213,711
513,050
Phononic
Devices,
Inc.,
G-2
....................
1/17/20
-
11/03/20
47
175,337
869,933
Phononic,
Inc.,
Advance
Term
Loan,
PIK
,
12%
,
6/30/25
10/17/22
-
10/01/23
815,824
725,278
117,763
Phononic,
Inc.,
H
............................
10/17/22
460,645
489,474
47,104
Phononic,
Inc.,
H,
10/17/27
....................
10/17/22
44,029
33,629
Total
Restricted
Securities
(Value
is
3.0%
of
Net
Assets)
..............
$101,528,932
$97,739,643
*
In
U.S.
dollars
unless
otherwise
indicated.
7.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
66
franklintempleton.com
Semiannual
Report
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
October
31,
2023,
investments
in
“affiliated
companies”
were
as
follows:
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$1,538,010
as
of
October
31,
2023.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Sh
ares/Warrants/
Principal
Amount
*
Held
at
End
of
Period
Investment
Income
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Optoro,
Inc.,
E
.......
$
8,167,495
$
—
$
—
$
—
$
(5,857)
$
8,161,638
556,026
$
—
Talkdesk,
Inc.,
C
.....
9,955,707
—
—
—
(396,767)
9,558,940
1,753,060
—
Total
Affiliated
Securities
(Value
is
0.5%
of
Net
Assets)
..........
$18,123,202
$—
$—
$—
$(402,624)
$17,720,578
$—
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
1661,
Inc.,
F
........
6,545,566
—
—
—
649,107
7,194,673
3,436,485
—
Benchling,
Inc.,
F
.....
5,803,206
—
—
—
(990,214)
4,812,992
382,306
—
EyePoint
Pharmaceuticals,
Inc.
............
12,290,588
212,613
(5,353,442)
(1,330,433)
—
a
—
a
—
a
—
Optoro,
Inc.,
E
.......
8,150,632
—
—
—
(5,845)
8,144,787
554,878
—
Paymentus
Holdings,
Inc.,
A
..............
18,067,319
—
(2,806,798)
(2,378,329)
16,440,017
29,322,209
2,013,888
—
Total
Affiliated
Securities
(Value
is
2.2%
of
Net
Assets)
..........
$50,857,311
$212,613
$(8,160,240)
$(3,708,762)
$16,093,065
$49,474,661
$—
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Benchling,
Inc.,
F
.....
5,268,888
—
—
—
(899,042)
4,369,846
347,106
—
Blaize,
Inc.,
12/09/25
..
—
—
—
—
—
—
1
—
Blaize,
Inc.,
8/23/33
...
—
—
—
—
—
—
1
—
Blaize,
Inc.,
9/19/25
...
—
—
—
—
—
—
146,765
—
Blaize,
Inc.,
D
.......
3,051,900
—
—
—
—
3,051,900
1,948,384
—
Blaize,
Inc.,
D,
2/28/24
.
—
—
—
—
—
—
260,815
—
Blaize,
Inc.,
D-2
......
1,094,514
—
—
—
—
1,094,514
1,467,659
—
OneTrust
LLC,
C
.....
7,746,763
—
—
—
2,452,905
10,199,668
767,526
—
7.
Restricted
Securities
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
67
franklintempleton.com
Semiannual
Report
9.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
October
31,
2023,
the
Funds
did
not
use
the
Global
Credit
Facility.
10.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Warrants/
Principal
Amount*
Held
at
End
of
Period
Investment
Income
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Non-Controlled
Affiliates
Phononic
Devices,
Inc.,
F
$
2,020,235
$
—
$
—
$
—
$
(1,806,524)
$
213,711
2,970,061
$
—
Phononic
Devices,
Inc.,
G-2
............
771,484
—
—
—
(596,147)
175,337
513,050
—
Phononic,
Inc.,
H
.....
563,212
—
—
—
(73,738)
489,474
117,763
—
Phononic,
Inc.,
H,
10/17/27
.........
60,114
—
—
—
(26,485)
33,629
47,104
—
Interest
Blaize,
Inc.,
10%,
1/03/25
—
1,804,600
—
—
—
1,804,600
1,804,600
34,087
Blaize,
Inc.,
10%,
12/09/24
570,178
—
—
—
—
570,178
570,121
28,506
Phononic,
Inc.,
Advance
Term
Loan,
PIK
,
12%
,
6/30/25
..........
625,802
93,64
2
b
—
—
5,834
725,278
869,933
39,610
Total
Affiliated
Securities
(Value
is
0.7%
of
Net
Assets)
..........
$21,773,090
$1,898,242
$—
$—
$(943,197)
$22,728,135
$102,203
*
In
U.S.
dollars
unless
otherwise
indicated.
a
As
of
October
31,
2023,
no
longer
an
affiliate.
b
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
68
franklintempleton.com
Semiannual
Report
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2023,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
44,617,264
$
—
$
11,571,417
$
56,188,681
Automobiles
..........................
23,590,666
—
—
23,590,666
Beverages
...........................
74,435,798
—
—
74,435,798
Broadline
Retail
.......................
220,649,512
—
—
220,649,512
Capital
Markets
........................
132,780,511
—
—
132,780,511
Chemicals
...........................
59,844,727
—
—
59,844,727
Commercial
Services
&
Supplies
...........
44,359,160
—
8,190,984
52,550,144
Entertainment
.........................
42,109,583
—
—
42,109,583
Financial
Services
......................
147,352,316
—
—
147,352,316
Food
Products
........................
39,522,655
—
—
39,522,655
Ground
Transportation
..................
64,933,619
—
—
64,933,619
Health
Care
Equipment
&
Supplies
.........
77,621,635
—
—
77,621,635
Health
Care
Providers
&
Services
..........
74,707,324
—
—
74,707,324
Health
Care
Technology
.................
26,619,611
—
—
26,619,611
Hotels,
Restaurants
&
Leisure
.............
97,950,362
—
—
97,950,362
Interactive
Media
&
Services
..............
308,240,197
—
—
308,240,197
IT
Services
...........................
80,260,344
—
11,818,306
92,078,650
Leisure
Products
.......................
—
—
66,191,423
66,191,423
Life
Sciences
Tools
&
Services
............
120,632,251
—
—
120,632,251
Personal
Care
Products
.................
33,958,418
—
—
33,958,418
Pharmaceuticals
.......................
103,486,611
—
—
103,486,611
Professional
Services
...................
73,555,633
—
—
73,555,633
Real
Estate
Management
&
Development
....
35,900,426
—
—
35,900,426
Semiconductors
&
Semiconductor
Equipment
.
335,939,692
—
—
335,939,692
Software
.............................
784,200,752
—
733,912
784,934,664
Specialized
REITs
......................
35,319,807
—
—
35,319,807
Specialty
Retail
........................
19,514,830
—
—
19,514,830
Technology
Hardware,
Storage
&
Peripherals
.
132,575,753
—
—
132,575,753
Textiles,
Apparel
&
Luxury
Goods
..........
6,659,518
—
—
6,659,518
Water
Utilities
.........................
6,178,536
—
—
6,178,536
Convertible
Preferred
Stocks
................
—
—
45,908,365
45,908,365
Preferred
Stocks
.........................
—
—
37,849,878
37,849,878
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
91,937,722
—
—
91,937,722
Total
Investments
in
Securities
...........
$3,339,455,233
$—
$182,264,285
$3,521,719,518
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
148,714,140
—
—
148,714,140
Banks
...............................
35,780,421
—
—
35,780,421
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
69
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Biotechnology
.........................
$
140,672,130
$
—
$
—
$
140,672,130
Building
Products
......................
23,757,828
—
—
23,757,828
Capital
Markets
........................
80,106,116
—
—
80,106,116
Communications
Equipment
..............
16,342,668
—
—
16,342,668
Construction
&
Engineering
...............
78,611,449
—
—
78,611,449
Consumer
Staples
Distribution
&
Retail
......
11,690,624
—
—
11,690,624
Diversified
Consumer
Services
............
11,783,464
—
—
11,783,464
Electronic
Equipment,
Instruments
&
Components
........................
32,255,872
—
—
32,255,872
Energy
Equipment
&
Services
.............
43,637,470
—
—
43,637,470
Financial
Services
......................
102,335,242
—
—
102,335,242
Food
Products
........................
76,181,479
—
—
76,181,479
Health
Care
Equipment
&
Supplies
.........
129,999,894
—
—
129,999,894
Health
Care
Providers
&
Services
..........
98,162,332
—
—
98,162,332
Health
Care
Technology
.................
33,324,549
—
—
33,324,549
Hotel
&
Resort
REITs
...................
14,015,364
—
—
14,015,364
Hotels,
Restaurants
&
Leisure
.............
126,373,784
—
—
126,373,784
Household
Durables
....................
65,405,086
—
—
65,405,086
Industrial
REITs
.......................
25,442,416
—
—
25,442,416
Interactive
Media
&
Services
..............
21,592,656
—
—
21,592,656
IT
Services
...........................
13,437,235
—
—
13,437,235
Life
Sciences
Tools
&
Services
............
3,203,910
—
—
3,203,910
Machinery
............................
52,428,705
—
—
52,428,705
Media
...............................
30,420,183
—
—
30,420,183
Oil,
Gas
&
Consumable
Fuels
.............
44,355,110
—
—
44,355,110
Passenger
Airlines
.....................
31,554,430
—
—
31,554,430
Personal
Care
Products
.................
63,444,264
—
—
63,444,264
Pharmaceuticals
.......................
58,124,189
—
3,535,454
61,659,643
Professional
Services
...................
61,606,967
—
—
61,606,967
Semiconductors
&
Semiconductor
Equipment
.
126,388,036
—
—
126,388,036
Software
.............................
201,344,068
—
430,245
201,774,313
Specialty
Retail
........................
65,753,737
—
—
65,753,737
Textiles,
Apparel
&
Luxury
Goods
..........
25,096,842
—
—
25,096,842
Trading
Companies
&
Distributors
..........
32,097,670
—
—
32,097,670
Convertible
Preferred
Stocks
................
—
—
56,517,277
56,517,277
Preferred
Stocks
.........................
—
—
18,585,350
a
18,585,350
Rights
.................................
—
—
354,128
354,128
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
74,128,041
—
—
74,128,041
Total
Investments
in
Securities
...........
$2,199,568,371
$—
$79,422,454
$2,278,990,825
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
97,306,880
—
—
97,306,880
Automobile
Components
.................
14,143,155
—
—
14,143,155
Beverages
...........................
19,406,684
—
—
19,406,684
Biotechnology
.........................
91,846,977
—
—
91,846,977
Building
Products
......................
59,395,751
—
—
59,395,751
Capital
Markets
........................
237,089,739
—
—
237,089,739
Chemicals
...........................
23,137,350
—
—
23,137,350
Commercial
Services
&
Supplies
...........
40,032,904
—
—
40,032,904
Communications
Equipment
..............
40,975,665
—
—
40,975,665
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
70
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
At
October
31,
2023,
the
reconciliations are
as follows:
Level
1
Level
2
Level
3
Total
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Containers
&
Packaging
.................
$
31,959,252
$
—
$
—
$
31,959,252
Electrical
Equipment
....................
49,545,134
—
—
49,545,134
Electronic
Equipment,
Instruments
&
Components
........................
38,454,570
—
—
38,454,570
Energy
Equipment
&
Services
.............
20,940,682
—
—
20,940,682
Entertainment
.........................
41,912,856
—
—
41,912,856
Financial
Services
......................
34,362,593
—
—
34,362,593
Food
Products
........................
49,700,360
—
—
49,700,360
Ground
Transportation
..................
48,193,647
—
—
48,193,647
Health
Care
Equipment
&
Supplies
.........
173,835,602
—
—
173,835,602
Health
Care
Providers
&
Services
..........
25,489,408
—
—
25,489,408
Health
Care
Technology
.................
62,056,697
—
—
62,056,697
Hotels,
Restaurants
&
Leisure
.............
152,140,073
—
—
152,140,073
Household
Durables
....................
22,191,742
—
—
22,191,742
Industrial
REITs
.......................
26,053,920
—
—
26,053,920
Insurance
............................
36,336,107
—
—
36,336,107
Interactive
Media
&
Services
..............
86,063,445
—
—
86,063,445
IT
Services
...........................
126,999,111
—
—
126,999,111
Leisure
Products
.......................
—
—
51,009,875
51,009,875
Life
Sciences
Tools
&
Services
............
182,701,609
—
—
182,701,609
Machinery
............................
57,285,888
—
—
57,285,888
Media
...............................
16,293,302
—
—
16,293,302
Oil,
Gas
&
Consumable
Fuels
.............
98,398,165
—
—
98,398,165
Passenger
Airlines
.....................
23,981,250
—
—
23,981,250
Personal
Care
Products
.................
41,973,350
—
—
41,973,350
Pharmaceuticals
.......................
31,539,066
—
—
31,539,066
Professional
Services
...................
172,671,963
—
—
172,671,963
Residential
REITs
......................
33,893,580
—
—
33,893,580
Semiconductors
&
Semiconductor
Equipment
.
128,245,430
—
—
128,245,430
Software
.............................
386,517,027
—
—
386,517,027
Specialized
REITs
......................
28,895,255
—
—
28,895,255
Specialty
Retail
........................
141,568,181
—
—
141,568,181
Textiles,
Apparel
&
Luxury
Goods
..........
31,124,268
—
—
31,124,268
Trading
Companies
&
Distributors
..........
56,928,172
—
—
56,928,172
Convertible
Preferred
Stocks
................
—
—
42,931,272
42,931,272
Preferred
Stocks
.........................
—
—
664,811
664,811
Warrants
...............................
—
—
33,629
a
33,629
Convertible
Bonds
.......................
—
—
1,804,600
1,804,600
Corporate
Bonds
........................
—
—
570,178
570,178
Senior
Floating
Rate
Interests
...............
—
—
725,278
725,278
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
138,679,135
—
—
138,679,135
Total
Investments
in
Securities
...........
$3,220,265,945
$—
$97,739,643
$3,318,005,588
a
Includes
financial
instruments
determined
to
have
no
value.
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
71
franklintempleton.com
Semiannual
Report
Balance
at
Beginning
of
Period
Purchases
a
Sale
s
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
c
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
.
$
10,999,989
$
—
$
—
$
—
$
—
$
—
$
—
$
571,428
$
11,571,417
$
571,428
Commercial
Services
&
Supplies
........
7,056,488
—
—
—
—
—
—
1,134,496
8,190,984
1,134,496
Health
Care
Equipment
&
Supplies
.......
16,934,771
—
—
—
(16,934,771)
—
—
—
—
—
IT
Services
........
9,178,870
—
—
—
—
—
—
2,639,436
11,818,306
2,639,436
Leisure
Products
....
71,332,234
—
—
—
—
—
—
(5,140,811)
66,191,423
(5,140,811)
Software
..........
732,694
—
—
—
—
—
—
1,218
733,912
1,218
Convertible
Preferred
Stocks
:
Software
..........
35,421,533
—
—
—
—
—
—
10,486,832
45,908,365
10,486,832
Preferred
Stocks
:
Commercial
Services
&
Supplies
........
8,167,495
—
—
—
—
—
—
(5,857)
8,161,638
(5,857)
Health
Care
Providers
&
Services
........
18,953,290
—
—
—
—
—
—
(5,321,095)
13,632,195
(5,321,095)
Software
..........
15,232,654
—
—
—
—
—
—
823,391
16,056,045
823,391
Escrows
and
Litigation
Trusts
:
—
d
—
—
d
—
—
—
—
—
—
d
—
Total
Investments
in
Securities
............
$194,010,018
$—
$—
$—
$(16,934,771)
$—
$—
$5,189,038
$182,264,285
$5,189,038
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Pharmaceuticals
....
—
1,910,970
—
—
—
—
—
1,624,484
3,535,454
1,624,484
Software
..........
429,531
—
—
—
—
—
—
714
430,245
714
Convertible
Preferred
Stocks
:
Diversified
Consumer
Services
........
12,019,999
—
—
—
—
—
—
120,633
12,140,632
120,633
Software
..........
35,813,345
—
—
—
—
—
—
1,368,627
37,181,972
1,368,627
Specialty
Retail
.....
6,545,566
—
—
—
—
—
—
649,107
7,194,673
649,107
Preferred
Stocks
:
Automobile
Components
6,232,998
d
—
—
—
—
—
—
(109,973)
6,123,025
d
(109,973)
Commercial
Services
&
Supplies
........
8,150,632
—
—
—
—
—
—
(5,845)
8,144,787
(5,845)
Software
..........
2,698,021
—
—
—
—
—
—
1,619,517
4,317,538
1,619,517
Rights
:
Biotechnology
......
—
160,095
—
—
—
—
—
194,033
354,128
194,033
Escrows
and
Litigation
Trusts
...........
—
d
—
—
d
—
—
—
—
—
—
d
—
Total
Investments
in
Securities
............
$71,890,092
$2,071,065
$—
$—
$—
$—
$—
$5,461,297
$79,422,454
$5,461,297
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
72
franklintempleton.com
Semiannual
Report
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
October
31,
2023,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
c
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Leisure
Products
....
$
54,971,598
$
—
$
—
$
—
$
—
$
—
$
—
$
(3,961,723)
$
51,009,875
$
(3,961,723)
Convertible
Preferred
Stocks
:
Diversified
Consumer
Services
........
7,184,103
—
—
—
—
—
—
72,099
7,256,202
72,099
Semiconductors
&
Semiconductor
Equipment
.......
2,020,235
—
—
—
—
—
—
(1,806,524)
213,711
(1,806,524)
Software
..........
28,719,105
—
—
—
—
—
—
6,742,254
35,461,359
6,742,254
Preferred
Stocks
:
Semiconductors
&
Semiconductor
Equipment
.......
1,334,696
—
—
—
—
—
—
(669,885)
664,811
(669,885)
Warrants
:
Semiconductors
&
Semiconductor
Equipment
.......
60,114
—
—
—
—
—
—
(26,485)
33,629
(26,485)
Software
..........
—
d
—
d
—
—
—
—
—
—
—
d
—
Convertible
Bonds
:
Software
..........
—
1,804,600
—
—
—
—
—
—
1,804,600
—
Corporate
Bonds
:
Software
..........
570,178
—
—
—
—
—
—
—
570,178
—
Senior
Floating
Rate
Interests
:
Semiconductors
&
Semiconductor
Equipment
.......
625,802
81,298
—
—
—
12,344
—
5,834
725,278
5,834
Escrows
and
Litigation
Trusts
:
—
d
—
—
—
—
—
—
—
—
d
—
Total
Investments
in
Securities
............
$95,485,831
$1,885,898
$—
$—
$—
$12,344
$—
$355,570
$97,739,643
$355,570
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Transferred
out
of
Level
3
as
a
result
of
the
availability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Includes
financial
instruments
determined
to
have
no
value.
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
73
franklintempleton.com
Semiannual
Report
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Leisure
Products.
.
.
.
.
.
.
$66,191,423
Market
comparables
Discount
for
lack
of
marketability
11.1%
Decrease
EV
/
revenue
multiple
4.3x
Increase
All
Other
Investments.
.
.
.
116,072,862
c,d
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$182,264,285
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Convertible
Preferred
Stocks:
Diversified
Consumer
Services.
.
.
.
.
.
$12,140,632
Discounted
cash
flow
Discount
for
lack
of
marketability
10.5%
Decrease
Discount
rate
19.4%
Decrease
Long
term
growth
rate
5.0%
Increase
Volatility
of
peers
43.2%
Decrease
Software
.
.
.
.
.
.
.
.
.
.
.
.
.
.
21,000,432
Market
comparables
Discount
for
lack
of
marketability
11.0%
Decrease
EV
/
revenue
multiple
5.8x
Increase
Volatility
38.0%
Decrease
All
Other
Investments.
.
.
.
46,281,390
c,d
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$79,422,454
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
74
franklintempleton.com
Semiannual
Report
11.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
Leisure
Products
............
$51,009,875
Market
comparables
Discount
for
lack
of
marketability
11.1%
Decrease
EV
/
revenue
multiple
4.3x
Increase
All
Other
Investments.
.
.
.
.
.
.
.
.
46,729,768
c,d
Total.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$97,739,643
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
d
Includes
financial
instruments
determined
to
have
no
value.
Abbreviations
List
EV
-
Enterprise
value
Selected
Portfolio
ADR
American
Depositary
Receipt
CVR
Contingent
Value
Right
NYRS
New
York
Registry
Shares
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Shareholder
Information
75
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(���SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Strategic
Series
Shareholder
Information
76
franklintempleton.com
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Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
or
receive
notice
of
the
availability
of,
each
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
FSS1
S
12/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
recorded.
Semiannual
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Franklin
Strategic
Series
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
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Semiannual
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Franklin
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October
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Franklin
Biotechnology
Discovery
Fund
2
Franklin
Natural
Resources
Fund
6
Financial
Highlights
and
Schedules
of
Investments
11
Financial
Statements
26
Notes
to
Financial
Statements
30
Shareholder
Information
44
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
Biotechnology
Discovery
Fund
This
semiannual
report
for
Franklin
Biotechnology
Discovery
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
capital
appreciation.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
biotechnology
companies
and
discovery
research
firms
located
in
the
U.S.
and
other
countries.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-9.24%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
NASDAQ
Biotechnology
Index
®
,
which
tracks
U.S.
-
and
international-based
biotechnology
stocks,
posted
a
-11.40%
cumulative
total
return.
1
Also
in
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500
®
),
which
is
a
broad
measure
of
the
U.S.
stock
market,
posted
a
+1.39%
cumulative
total
return.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
3
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Thank
you
for
your
continued
participation
in
Franklin
Biotechnology
Discovery
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Evan
McCulloch,
CFA
Lead
Portfolio
Manager
Wendy
Lam,
Ph.D.
Akiva
Felt
Portfolio
Management
Team
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Biotechnology
73.6%
Pharmaceuticals
18.6%
Life
Sciences
Tools
&
Services
4.7%
Other
*
0.7%
Short-Term
Investments
&
Other
Net
Assets
2.4%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
10/31/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Amgen,
Inc.
8.3%
Biotechnology,
United
States
Vertex
Pharmaceuticals,
Inc.
7.5%
Biotechnology,
United
States
Regeneron
Pharmaceuticals,
Inc.
7.3%
Biotechnology,
United
States
Biogen,
Inc.
5.1%
Biotechnology,
United
States
Gilead
Sciences,
Inc.
4.7%
Biotechnology,
United
States
AstraZeneca
plc
4.0%
Pharmaceuticals,
United
Kingdom
Jazz
Pharmaceuticals
plc
3.9%
Pharmaceuticals,
United
States
Ascendis
Pharma
A/S
3.9%
Biotechnology,
Denmark
Argenx
SE
3.2%
Biotechnology,
Netherlands
Seagen
,
Inc.
3.1%
Biotechnology,
United
States
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
October
31,
2023
Franklin
Biotechnology
Discovery
Fund
3
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
-9.24%
-14.23%
1-Year
-2.14%
-7.52%
5-Year
+9.20%
+0.63%
10-Year
+54.89%
+3.88%
Advisor
6-Month
-9.11%
-9.11%
1-Year
-1.89%
-1.89%
5-Year
+10.59%
+2.03%
10-Year
+58.86%
+4.74%
See
page
4
for
Performance
Summary
footnotes.
Franklin
Biotechnology
Discovery
Fund
Performance
Summary
4
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
portfolio
is
non-diversified
and
may
invest
in
a
relatively
small
number
of
issuers,
which
may
negatively
impact
the
Fund's
performance
and
result
in
greater
fluctuation
in
the
value
of
the
Fund's
shares.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
sourced
from
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
A
1.07%
Advisor
0.82%
Your
Fund’s
Expenses
Franklin
Biotechnology
Discovery
Fund
5
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$907.60
$5.07
$1,019.82
$5.37
1.06%
C
$1,000
$904.30
$8.65
$1,016.05
$9.16
1.81%
R6
$1,000
$909.40
$3.29
$1,021.69
$3.49
0.69%
Advisor
$1,000
$908.90
$3.88
$1,021.08
$4.10
0.81%
6
franklintempleton.com
Semiannual
Report
Franklin
Natural
Resources
Fund
This
semiannual
report
for
Franklin
Natural
Resources
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
high
total
return.
Total
return
consists
of
capital
appreciation
and
current
dividend
and
interest
income.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
equity
and
debt
securities
of
companies
that
own,
produce,
refine,
process,
transport
or
market
natural
resources,
as
well
as
those
that
provide
related
services.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+0.75%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Standard
&
Poor’s
(S&P
®
)
North
American
Natural
Resources
Sector
Index,
which
tracks
companies
involved
in
industries
such
as
mining,
energy,
timber
and
forestry
services,
and
the
production
of
pulp
and
paper,
posted
a
+1.77%
cumulative
total
return.
1
Also
in
comparison,
the
Standard
&
Poor’s
500
Index
(S&P
500),
which
is
a
broad
measure
of
the
U.S.
stock
market,
posted
a
+1.39%
cumulative
total
return.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
any
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
The
Fund’s
strategy,
which
focuses
on
companies
with
higher
long-term
growth
potential,
differs
from
the
natural
resources
index’s
large
weighting
in
income-oriented
companies
that
we
believe
typically
provide
more
limited
opportunities
for
growth.
This
difference
may
occasionally
lead
to
wide
performance
discrepancies,
especially
in
periods
when
investors
focus
on
short-term
“safety”
and
yield
or,
conversely,
when
investors
focus
more
heavily
on
companies
with
stronger
growth
prospects
and
greater
commodity
price
leverage.
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
beginning
on
page
8
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Geographic
Composition
10/31/23
%
of
Total
Net
Assets
North
America
83.0%
Europe
8.4%
Australia
&
New
Zealand
3.6%
Latin
America
&
Caribbean
2.5%
Other
0.6%
Short-Term
Investments
&
Other
Net
Assets
1.9%
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Oil
&
Gas
Exploration
&
Production
22.3%
Integrated
Oil
&
Gas
16.8%
Oil
&
Gas
Equipment
&
Services
12.6%
Oil
&
Gas
Storage
&
Transportation
8.1%
Gold
6.5%
Oil
&
Gas
Refining
&
Marketing
5.8%
Diversified
Metals
&
Mining
5.4%
Copper
4.4%
Industrial
Gases
2.8%
Fertilizers
&
Agricultural
Chemicals
2.0%
Oil
&
Gas
Drilling
1.9%
Electrical
Components
&
Equipment
1.4%
Metal,
Glass
&
Plastic
Containers
1.2%
Agricultural
Products
&
Services
1.1%
Other
*
5.8%
Short-Term
Investments
&
Other
Net
Assets
1.9%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund's
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
22
.
Franklin
Natural
Resources
Fund
7
franklintempleton.com
Semiannual
Report
Thank
you
for
your
continued
participation
in
Franklin
Natural
Resources
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Frederick
G.
Fromm,
CFA
Lead
Portfolio
Manager
Matthew
Adams,
CFA
Stephen
M.
Land,
CFA
Portfolio
Management
Team
Top
10
Holdings
10/31/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
ConocoPhillips
4.6%
Oil,
Gas
&
Consumable
Fuels,
United
States
Chevron
Corp.
4.6%
Oil,
Gas
&
Consumable
Fuels,
United
States
Exxon
Mobil
Corp.
4.0%
Oil,
Gas
&
Consumable
Fuels,
United
States
EOG
Resources,
Inc.
3.5%
Oil,
Gas
&
Consumable
Fuels,
United
States
Schlumberger
NV
3.2%
Energy
Equipment
&
Services,
United
States
Canadian
Natural
Resources
Ltd.
2.9%
Oil,
Gas
&
Consumable
Fuels,
Canada
Shell
plc
2.6%
Oil,
Gas
&
Consumable
Fuels,
Netherlands
Pioneer
Natural
Resources
Co.
2.4%
Oil,
Gas
&
Consumable
Fuels,
United
States
Marathon
Petroleum
Corp.
2.3%
Oil,
Gas
&
Consumable
Fuels,
United
States
Suncor
Energy,
Inc.
2.2%
Oil,
Gas
&
Consumable
Fuels,
Canada
Performance
Summary
as
of
October
31,
2023
Franklin
Natural
Resources
Fund
8
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
+0.75%
-4.81%
1-Year
+1.78%
-3.82%
5-Year
+29.05%
+4.05%
10-Year
-11.16%
-1.73%
Advisor
6-Month
+0.89%
+0.89%
1-Year
+2.03%
+2.03%
5-Year
+30.68%
+5.50%
10-Year
-8.80%
-0.92%
See
page
9
for
Performance
Summary
footnotes.
Franklin
Natural
Resources
Fund
Performance
Summary
9
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
The
investment
style
may
become
out
of
favor,
which
may
have
a
negative
impact
on
performance.
Small-
and
mid-cap
stocks
involve
greater
risks
and
volatility
than
large-cap
stocks.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Funds
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
8/31/2024
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
5.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Total
Annual
Operating
Expenses
5
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.97%
0.98%
Advisor
0.72%
0.73%
Your
Fund’s
Expenses
Franklin
Natural
Resources
Fund
10
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,007.50
$5.07
$1,020.09
$5.10
1.01%
C
$1,000
$1,004.00
$8.84
$1,016.32
$8.89
1.75%
R6
$1,000
$1,009.90
$3.07
$1,022.08
$3.09
0.61%
Advisor
$1,000
$1,008.90
$3.81
$1,021.34
$3.84
0.76%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$112.50
$101.90
$163.50
$150.48
$138.85
$146.14
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.26)
(0.47)
(0.75)
(0.99)
(0.69)
(0.99)
Net
realized
and
unrealized
gains
(losses)
(10.13)
11.21
(43.17)
38.85
26.48
(1.75)
Total
from
investment
operations
........
(10.39)
10.74
(43.92)
37.86
25.79
(2.74)
Less
distributions
from:
Net
investment
income
..............
—
(0.14)
(1.01)
—
—
—
Net
realized
gains
.................
—
—
(16.67)
(24.84)
(14.16)
(4.55)
Total
distributions
...................
—
(0.14)
(17.68)
(24.84)
(14.16)
(4.55)
Net
asset
value,
end
of
period
..........
$102.11
$112.50
$101.90
$163.50
$150.48
$138.85
Total
return
c
.......................
(9.24)%
10.58%
(28.56)%
24.26%
18.52%
(1.60)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.06%
1.06%
1.04%
0.98%
1.03%
1.02%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.06%
e,f
1.06%
f
1.04%
e,f
0.97%
e
1.01%
e
1.00%
e
Net
investment
(loss)
................
(0.47)%
(0.45)%
(0.54)%
(0.58)%
(0.49)%
(0.67)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$582,690
$686,534
$705,915
$1,160,451
$960,305
$924,611
Portfolio
turnover
rate
................
13.08%
24.08%
26.25%
47.30%
32.92%
28.62%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$103.78
$94.59
$152.95
$143.00
$133.51
$141.75
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.62)
(1.16)
(1.51)
(2.16)
(1.70)
(2.03)
Net
realized
and
unrealized
gains
(losses)
(9.32)
10.35
(40.18)
36.95
25.35
(1.66)
Total
from
investment
operations
........
(9.94)
9.19
(41.69)
34.79
23.65
(3.69)
Less
distributions
from:
Net
realized
gains
.................
—
—
(16.67)
(24.84)
(14.16)
(4.55)
Net
asset
value,
end
of
period
..........
$93.84
$103.78
$94.59
$152.95
$143.00
$133.51
Total
return
c
.......................
(9.57)%
9.75%
(29.00)%
23.33%
17.62%
(2.33)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.81%
1.81%
1.66%
1.73%
1.78%
1.77%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.81%
e,f
1.81%
f
1.66%
e,f
1.72%
e
1.76%
e
1.75%
e
Net
investment
(loss)
................
(1.22)%
(1.20)%
(1.16)%
(1.32)%
(1.24)%
(1.42)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$23,378
$29,573
$33,905
$64,801
$48,363
$46,508
Portfolio
turnover
rate
................
13.08%
24.08%
26.25%
47.30%
32.92%
28.62%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$119.33
$108.06
$172.21
$156.99
$143.83
$150.65
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.06)
(0.08)
(0.23)
(0.45)
(0.18)
(0.46)
Net
realized
and
unrealized
gains
(losses)
(10.76)
11.94
(45.64)
40.51
27.50
(1.81)
Total
from
investment
operations
........
(10.82)
11.86
(45.87)
40.06
27.32
(2.27)
Less
distributions
from:
Net
investment
income
..............
—
(0.59)
(1.61)
—
—
—
Net
realized
gains
.................
—
—
(16.67)
(24.84)
(14.16)
(4.55)
Total
distributions
...................
—
(0.59)
(18.28)
(24.84)
(14.16)
(4.55)
Net
asset
value,
end
of
period
..........
$108.51
$119.33
$108.06
$172.21
$156.99
$143.83
Total
return
c
.......................
(9.06)%
11.03%
(28.29)%
24.67%
18.95%
(1.24)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.79%
0.80%
0.74%
0.71%
0.74%
0.70%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.69%
e
0.65%
0.66%
e
0.64%
e
0.64%
e
0.63%
e
Net
investment
(loss)
................
(0.10)%
(0.08)%
(0.16)%
(0.25)%
(0.12)%
(0.30)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$8,895
$11,692
$9,614
$16,721
$9,484
$6,164
Portfolio
turnover
rate
................
13.08%
24.08%
26.25%
47.30%
32.92%
28.62%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Biotechnology
Discovery
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$117.54
$106.46
$169.95
$155.30
$142.56
$149.54
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.13)
(0.22)
(0.42)
(0.59)
(0.34)
(0.63)
Net
realized
and
unrealized
gains
(losses)
(10.59)
11.72
(44.99)
40.08
27.24
(1.80)
Total
from
investment
operations
........
(10.72)
11.50
(45.41)
39.49
26.90
(2.43)
Less
distributions
from:
Net
investment
income
..............
—
(0.42)
(1.41)
—
—
—
Net
realized
gains
.................
—
—
(16.67)
(24.84)
(14.16)
(4.55)
Total
distributions
...................
—
(0.42)
(18.08)
(24.84)
(14.16)
(4.55)
Net
asset
value,
end
of
period
..........
$106.82
$117.54
$106.46
$169.95
$155.30
$142.56
Total
return
c
.......................
(9.11)%
10.86%
(28.39)%
24.56%
18.82%
(1.36)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.81%
0.81%
0.79%
0.73%
0.78%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.81%
e,f
0.81%
f
0.79%
e,f
0.72%
e
0.76%
e
0.75%
e
Net
investment
(loss)
................
(0.22)%
(0.20)%
(0.29)%
(0.33)%
(0.24)%
(0.42)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$91,694
$110,607
$110,726
$206,375
$159,348
$153,874
Portfolio
turnover
rate
................
13.08%
24.08%
26.25%
47.30%
32.92%
28.62%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
1
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
95.4%
Biotechnology
71.8%
a
89bio,
Inc.
...........................................
United
States
254,237
$
1,881,354
a
Abivax
SA,
ADR
......................................
France
269,100
2,475,720
a
ACELYRIN,
Inc.
......................................
United
States
257,390
2,621,517
a
Acumen
Pharmaceuticals,
Inc.
...........................
United
States
491,900
919,853
a
Alector
,
Inc.
..........................................
United
States
303,345
1,577,394
a
Alpine
Immune
Sciences,
Inc.
............................
United
States
205,104
2,100,265
Amgen,
Inc.
.........................................
United
States
228,082
58,320,567
a
AnaptysBio
,
Inc.
......................................
United
States
105,463
1,720,101
a
Apogee
Therapeutics,
Inc.
...............................
United
States
163,539
2,809,600
a,b
Applied
Therapeutics,
Inc.
...............................
United
States
2,584,054
6,201,730
a
Arcutis
Biotherapeutics,
Inc.
.............................
United
States
1,288,820
2,899,845
a
Argenx
SE,
ADR
......................................
Netherlands
47,485
22,297,531
a,c
ARS
Pharmaceuticals,
Inc.
..............................
United
States
1,229,989
4,391,061
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
309,111
27,606,703
a
Benitec
Biopharma,
Inc.
................................
Australia
364,887
1,320,891
a
Biogen,
Inc.
.........................................
United
States
152,922
36,325,092
a
BioMarin
Pharmaceutical,
Inc.
............................
United
States
110,289
8,983,039
a
Candel
Therapeutics,
Inc.
...............................
United
States
383,296
344,928
a
Centessa
Pharmaceuticals
plc,
ADR
.......................
United
States
189,736
1,246,566
a,c
Centessa
Pharmaceuticals
plc,
ADR
.......................
United
States
89,257
586,418
a
Crinetics
Pharmaceuticals,
Inc.
...........................
United
States
43,322
1,268,901
a
Cullinan
Oncology,
Inc.
.................................
United
States
680,120
6,345,520
a
Cytokinetics,
Inc.
......................................
United
States
232,424
8,102,301
a
Day
One
Biopharmaceuticals,
Inc.
.........................
United
States
908,581
10,748,513
a
Disc
Medicine,
Inc.
....................................
United
States
50,325
2,305,388
a
Dyne
Therapeutics,
Inc.
................................
United
States
355,434
2,505,810
a,c
Equillium
,
Inc.
........................................
United
States
253,462
126,731
Gilead
Sciences,
Inc.
..................................
United
States
420,314
33,011,462
a,d,e
Harpoon
Therapeutics,
Inc.
..............................
United
States
430,500
2,024,512
a,c
Harpoon
Therapeutics,
Inc.
..............................
United
States
44,529
224,426
a
Heron
Therapeutics,
Inc.
................................
United
States
1,195,377
761,336
a
HilleVax
,
Inc.
.........................................
United
States
575,656
6,332,216
a
Insmed
,
Inc.
.........................................
United
States
720,116
18,046,107
a,c
Jasper
Therapeutics,
Inc.
...............................
United
States
1,439,300
983,762
a
Karuna
Therapeutics,
Inc.
...............................
United
States
38,051
6,339,677
a
Keros
Therapeutics,
Inc.
................................
United
States
189,651
5,412,639
a
Kezar
Life
Sciences,
Inc.
................................
United
States
449,150
323,882
a
Kura
Oncology,
Inc.
....................................
United
States
178,292
1,506,567
a
Legend
Biotech
Corp.,
ADR
.............................
United
States
122,034
8,062,786
a
Merus
NV
...........................................
Netherlands
499,426
10,043,457
a
Mineralys
Therapeutics,
Inc.
.............................
United
States
143,600
1,110,028
a
Mirum
Pharmaceuticals,
Inc.
.............................
United
States
236,190
6,478,692
a,c
MoonLake
Immunotherapeutics
,
A
.........................
United
States
67,535
3,498,988
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
177,673
19,711,043
a
Nuvalent
,
Inc.,
A
......................................
United
States
45,289
2,359,104
a,c
ORIC
Pharmaceuticals,
Inc.
.............................
United
States
234,001
1,567,807
a
PTC
Therapeutics,
Inc.
.................................
United
States
295,864
5,547,450
a
RayzeBio
,
Inc.
.......................................
United
States
126,900
2,461,860
a
Regeneron
Pharmaceuticals,
Inc.
.........................
United
States
65,833
51,342,498
a,c
Reneo
Pharmaceuticals,
Inc.
.............................
United
States
473,833
3,833,309
a
Rocket
Pharmaceuticals,
Inc.
............................
United
States
217,526
3,937,221
a
Sarepta
Therapeutics,
Inc.
..............................
United
States
66,852
4,499,808
a
Seagen
,
Inc.
.........................................
United
States
103,566
22,039,880
a
Sutro
Biopharma,
Inc.
..................................
United
States
564,189
1,551,520
a,c
Taysha
Gene
Therapies,
Inc.
.............................
United
States
199,900
467,766
a
Ultragenyx
Pharmaceutical,
Inc.
..........................
United
States
60,696
2,148,638
a
Vaxcyte
,
Inc.
.........................................
United
States
176,239
8,477,096
a
Vertex
Pharmaceuticals,
Inc.
.............................
United
States
146,635
53,098,000
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Biotechnology
(continued)
a
Xenon
Pharmaceuticals,
Inc.
.............................
Canada
55,051
$
1,706,581
506,943,457
Health
Care
Providers
&
Services
0.6%
a
Guardant
Health,
Inc.
..................................
United
States
173,066
4,478,948
Life
Sciences
Tools
&
Services
4.4%
a
Avantor,
Inc.
.........................................
United
States
450,529
7,852,721
a
Illumina,
Inc.
.........................................
United
States
117,900
12,900,618
Thermo
Fisher
Scientific,
Inc.
............................
United
States
22,679
10,086,939
30,840,278
Pharmaceuticals
18.6%
a
Amylyx
Pharmaceuticals,
Inc.
............................
United
States
224,524
3,661,987
AstraZeneca
plc,
ADR
..................................
United
Kingdom
451,308
28,536,205
a
Catalent,
Inc.
........................................
United
States
22,700
780,653
a
Cymabay
Therapeutics,
Inc.
.............................
United
States
775,553
12,703,558
a
EyePoint
Pharmaceuticals,
Inc.
...........................
United
States
783,533
4,716,869
a
Intra-Cellular
Therapies,
Inc.
.............................
United
States
442,216
22,004,668
a
Jazz
Pharmaceuticals
plc
...............................
United
States
219,463
27,876,190
a
Marinus
Pharmaceuticals,
Inc.
............................
United
States
1,200,781
8,333,420
a
Pliant
Therapeutics,
Inc.
................................
United
States
300,500
4,408,335
a
Revance
Therapeutics,
Inc.
..............................
United
States
845,760
6,673,046
a,d,e
Structure
Therapeutics,
Inc.
..............................
United
States
103,899
2,400,850
a,c
Structure
Therapeutics,
Inc.,
ADR
.........................
United
States
80,210
5,959,603
a
Terns
Pharmaceuticals,
Inc.
.............................
United
States
682,684
3,590,918
131,646,302
Total
Common
Stocks
(Cost
$517,095,185)
.....................................
673,908,985
Convertible
Preferred
Stocks
1.0%
Biotechnology
1.0%
a,d,e
Aeglea
BioTherapeutics
,
Inc.
.............................
United
States
5,500
2,406,397
a,d,e
Carmot
Therapeutics,
Inc.,
E
.............................
United
States
83,100
1,363,794
a,b,d,e
Pipeline
Therapeutics,
Inc.,
C
............................
United
States
1,651,505
3,237,485
7,007,676
Total
Convertible
Preferred
Stocks
(Cost
$7,938,794)
............................
7,007,676
Preferred
Stocks
0.4%
Health
Care
Providers
&
Services
0.1%
a,b,d,e
Artiva
Biotherapeutics,
Inc.,
B
............................
United
States
189,499
645,750
a
Life
Sciences
Tools
&
Services
0.3%
f
Sartorius
AG,
0.61%
...................................
Germany
9,200
2,305,669
Total
Preferred
Stocks
(Cost
$6,268,523)
.......................................
2,951,419
Warrants
Warrants
0.8%
Biotechnology
0.8%
a,b
Applied
Therapeutics,
Inc.,
6/27/27
........................
United
States
814,000
1,953,518
a,b,d
Applied
Therapeutics,
Inc.,
6/27/27
........................
United
States
1,628,100
2,318,017
a
Benitec
Biopharma,
Inc.,
2/20/49
..........................
Australia
310,881
1,125,358
a,d
Benitec
Biopharma,
Inc.,
2/20/49
..........................
Australia
310,881
237,993
a,d
Benitec
Biopharma,
Inc.,
II,
9/14/27
........................
Australia
7,019,473
118,601
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
See
Abbreviations
on
page
43.
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
(continued)
Biotechnology
(continued)
a,d,e
Harpoon
Therapeutics,
Inc.,
2/01/49
.......................
United
States
215,250
$
352,444
6,105,931
Pharmaceuticals
0.0%
†
a
Nuvation
Bio,
Inc.,
7/07/27
..............................
United
States
115,266
4,611
Total
Warrants
(Cost
$1,414,590)
..............................................
6,110,542
Shares
Escrows
and
Litigation
Trusts
0.0%
a,d
Sanofi
SA,
Escrow
Account
..............................
France
2,333,755
—
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
—
Total
Long
Term
Investments
(Cost
$532,717,092)
...............................
689,978,622
a
Short
Term
Investments
3.4%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
2.0%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
14,528,873
14,528,873
Total
Money
Market
Funds
(Cost
$14,528,873)
..................................
14,528,873
a
a
a
i
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.4%
Money
Market
Funds
1.4%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
9,845,985
9,845,985
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$9,845,985)
............................................................
9,845,985
Total
Short
Term
Investments
(Cost
$24,374,858
)
................................
24,374,858
a
Total
Investments
(Cost
$557,091,950)
101.0%
..................................
$714,353,480
Other
Assets,
less
Liabilities
(1.0)%
...........................................
(7,696,216)
Net
Assets
100.0%
...........................................................
$706,657,264
a
a
a
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
8
regarding
holdings
of
5%
voting
securities.
c
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2023.
See
Note
1(c).
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
e
See
Note
7
regarding
restricted
securities.
f
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
g
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
i
See
Note
1(c)
regarding
securities
on
loan.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$28.10
$27.01
$20.02
$13.60
$23.58
$27.96
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.29
0.68
0.50
0.28
0.34
0.31
Net
realized
and
unrealized
gains
(losses)
(0.08)
1.09
6.77
6.54
(9.96)
(4.20)
Total
from
investment
operations
........
0.21
1.77
7.27
6.82
(9.62)
(3.89)
Less
distributions
from:
Net
investment
income
..............
—
(0.68)
(0.28)
(0.40)
(0.36)
(0.49)
Net
asset
value,
end
of
period
..........
$28.31
$28.10
$27.01
$20.02
$13.60
$23.58
Total
return
c
.......................
0.75%
6.56%
36.63%
50.55%
(41.30)%
(13.69)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.01%
0.97%
1.10%
1.24%
1.17%
1.03%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.01%
e,f
0.96%
e
1.10%
f
1.24%
e,f
1.17%
e,f
1.03%
e,f
Net
investment
income
...............
1.98%
2.45%
2.17%
1.71%
1.75%
1.21%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$270,015
$301,153
$289,403
$176,127
$123,467
$247,362
Portfolio
turnover
rate
................
7.51%
23.76%
27.45%
49.23%
25.60%
29.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$27.43
$26.45
$19.58
$13.25
$22.82
$27.17
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.46
0.32
0.15
0.19
0.11
Net
realized
and
unrealized
gains
(losses)
(0.06)
1.06
6.63
6.38
(9.70)
(4.07)
Total
from
investment
operations
........
0.11
1.52
6.95
6.53
(9.51)
(3.96)
Less
distributions
from:
Net
investment
income
..............
—
(0.54)
(0.08)
(0.20)
(0.06)
(0.39)
Net
asset
value,
end
of
period
..........
$27.54
$27.43
$26.45
$19.58
$13.25
$22.82
Total
return
c
.......................
0.40%
5.75%
35.59%
49.42%
(41.71)%
(14.37)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.76%
1.72%
1.86%
1.99%
1.92%
1.78%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.75%
e
1.71%
e
1.86%
f
1.99%
e,f
1.92%
e,f
1.78%
e,f
Net
investment
income
...............
1.24%
1.72%
1.41%
0.93%
1.00%
0.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$20,490
$25,090
$30,427
$27,753
$23,391
$49,620
Portfolio
turnover
rate
................
7.51%
23.76%
27.45%
49.23%
25.60%
29.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$30.45
$29.17
$21.58
$14.63
$25.22
$29.79
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.38
0.79
0.64
0.39
0.54
0.45
Net
realized
and
unrealized
gains
(losses)
(0.08)
1.24
7.31
7.05
(10.76)
(4.49)
Total
from
investment
operations
........
0.30
2.03
7.95
7.44
(10.22)
(4.04)
Less
distributions
from:
Net
investment
income
..............
—
(0.75)
(0.36)
(0.49)
(0.37)
(0.53)
Net
asset
value,
end
of
period
..........
$30.75
$30.45
$29.17
$21.58
$14.63
$25.22
Total
return
c
.......................
0.99%
6.99%
37.24%
51.43%
(41.02)%
(13.31)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.66%
0.65%
0.80%
0.89%
0.72%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.61%
e
0.56%
e
0.65%
0.72%
e
0.66%
e
0.59%
e
Net
investment
income
...............
2.42%
2.65%
2.53%
2.22%
2.26%
1.65%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$8,880
$12,387
$4,943
$1,722
$839
$15,627
Portfolio
turnover
rate
................
7.51%
23.76%
27.45%
49.23%
25.60%
29.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Natural
Resources
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$30.23
$28.97
$21.44
$14.54
$25.20
$29.80
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.35
0.80
0.60
0.33
0.41
0.40
Net
realized
and
unrealized
gains
(losses)
(0.08)
1.18
7.24
7.01
(10.64)
(4.49)
Total
from
investment
operations
........
0.27
1.98
7.84
7.34
(10.23)
(4.09)
Less
distributions
from:
Net
investment
income
..............
—
(0.72)
(0.31)
(0.44)
(0.43)
(0.51)
Net
asset
value,
end
of
period
..........
$30.50
$30.23
$28.97
$21.44
$14.54
$25.20
Total
return
c
.......................
0.89%
6.86%
36.93%
50.95%
(41.15)%
(13.50)%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.76%
0.72%
0.85%
1.00%
0.92%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.76%
e,f
0.71%
e
0.85%
f
1.00%
e,f
0.92%
e,f
0.78%
e,f
Net
investment
income
...............
2.23%
2.71%
2.39%
1.93%
2.00%
1.46%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$78,056
$82,840
$87,707
$39,562
$28,334
$62,639
Portfolio
turnover
rate
................
7.51%
23.76%
27.45%
49.23%
25.60%
29.83%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Natural
Resources
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Shares
a
Value
a
Common
Stocks
97.6%
Agricultural
Products
&
Services
1.1%
Bunge
Ltd.
..........................................
United
States
23,700
$
2,511,726
a
Darling
Ingredients,
Inc.
................................
United
States
34,400
1,523,576
4,035,302
Construction
&
Engineering
0.4%
Eneti,
Inc.
...........................................
United
States
155,500
1,578,325
Construction
Materials
1.0%
Martin
Marietta
Materials,
Inc.
............................
United
States
8,900
3,639,566
Copper
4.4%
Antofagasta
plc
.......................................
Chile
173,700
2,839,677
a
Capstone
Copper
Corp.
................................
Canada
568,400
1,934,560
a
ERO
Copper
Corp.
....................................
Brazil
131,200
1,780,490
Freeport-McMoRan,
Inc.
................................
United
States
239,700
8,097,066
Lundin
Mining
Corp.
...................................
Chile
347,600
2,170,620
16,822,413
Diversified
Chemicals
0.8%
Huntsman
Corp.
......................................
United
States
131,400
3,065,562
Diversified
Metals
&
Mining
5.4%
a
29Metals
Ltd.
........................................
Australia
1,870,255
736,799
a
Aclara
Resources,
Inc.
.................................
United
Kingdom
489,200
142,866
a,b
Aclara
Resources,
Inc.,
144A
............................
United
Kingdom
510,754
149,160
Anglo
American
plc
....................................
South
Africa
84,900
2,162,774
BHP
Group
Ltd.,
ADR
..................................
Australia
108,000
6,162,480
Glencore
plc
.........................................
Australia
334,000
1,768,778
a
MP
Materials
Corp.
....................................
United
States
84,400
1,384,160
Rio
Tinto
plc,
ADR
.....................................
Australia
55,900
3,596,606
South32
Ltd.
.........................................
Australia
565,300
1,209,299
Teck
Resources
Ltd.,
B
.................................
Canada
82,400
2,912,016
20,224,938
Electrical
Components
&
Equipment
1.4%
a
Fluence
Energy,
Inc.,
A
.................................
United
States
74,000
1,281,680
a
FREYR
Battery
SA
....................................
Norway
465,000
1,492,650
a
NEXTracker,
Inc.,
A
....................................
United
States
25,600
889,856
a
SES
AI
Corp.
........................................
United
States
227,544
411,855
a
Shoals
Technologies
Group,
Inc.,
A
........................
United
States
79,800
1,225,728
5,301,769
Environmental
&
Facilities
Services
0.1%
a
Li-Cycle
Holdings
Corp.
.................................
Canada
367,300
492,182
492,182
Fertilizers
&
Agricultural
Chemicals
2.0%
Corteva,
Inc.
.........................................
United
States
78,100
3,759,734
Nutrien
Ltd.
..........................................
Canada
67,000
3,597,900
7,357,634
Gold
6.5%
Agnico
Eagle
Mines
Ltd.
................................
Canada
93,200
4,371,018
Alamos
Gold,
Inc.,
A
...................................
Canada
344,700
4,267,738
B2Gold
Corp.
........................................
Canada
326,200
1,044,367
Barrick
Gold
Corp.
....................................
Canada
321,500
5,137,570
Newmont
Corp.
.......................................
United
States
175,300
6,568,491
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Gold
(continued)
SSR
Mining,
Inc.
......................................
Canada
214,900
$
2,982,812
24,371,996
Heavy
Electrical
Equipment
0.1%
a
TPI
Composites,
Inc.
...................................
United
States
116,500
269,115
a
Industrial
Gases
2.8%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
18,600
5,253,384
Linde
plc
............................................
United
States
14,200
5,426,672
10,680,056
Industrial
Machinery
&
Supplies
&
Components
1.0%
Xylem,
Inc.
..........................................
United
States
39,400
3,685,476
Integrated
Oil
&
Gas
16.6%
Chevron
Corp.
.......................................
United
States
118,400
17,254,432
Exxon
Mobil
Corp.
.....................................
United
States
143,200
15,157,720
Occidental
Petroleum
Corp.
.............................
United
States
98,700
6,100,647
Shell
plc,
ADR
........................................
Netherlands
149,800
9,757,972
Suncor
Energy,
Inc.
....................................
Canada
257,200
8,329,140
TotalEnergies
SE,
ADR
.................................
France
93,410
6,221,106
62,821,017
Metal,
Glass
&
Plastic
Containers
1.2%
Ball
Corp.
...........................................
United
States
53,100
2,556,765
Crown
Holdings,
Inc.
...................................
United
States
22,100
1,781,260
4,338,025
Oil
&
Gas
Drilling
1.9%
Helmerich
&
Payne,
Inc.
................................
United
States
45,100
1,784,607
Patterson-UTI
Energy,
Inc.
..............................
United
States
312,024
3,962,705
a
Precision
Drilling
Corp.
.................................
Canada
24,800
1,439,640
7,186,952
Oil
&
Gas
Equipment
&
Services
12.3%
Baker
Hughes
Co.,
A
...................................
United
States
155,500
5,352,310
Cactus,
Inc.,
A
........................................
United
States
45,600
2,140,464
ChampionX
Corp.
.....................................
United
States
84,900
2,614,920
Halliburton
Co.
.......................................
United
States
115,200
4,531,968
Liberty
Energy,
Inc.,
A
..................................
United
States
127,600
2,513,720
a
Nine
Energy
Service,
Inc.
...............................
United
States
105,492
371,332
a
Oceaneering
International,
Inc.
...........................
United
States
85,600
1,882,344
a
Oil
States
International,
Inc.
.............................
United
States
103,700
752,862
Ranger
Energy
Services,
Inc.,
A
..........................
United
States
214,200
2,486,862
Schlumberger
NV
.....................................
United
States
216,200
12,033,692
Schoeller-Bleckmann
Oilfield
Equipment
AG
.................
Austria
17,600
889,299
Select
Water
Solutions,
Inc.,
A
............................
United
States
223,400
1,662,096
Technip
Energies
NV
...................................
France
76,999
1,686,869
TechnipFMC
plc
......................................
United
Kingdom
351,300
7,559,976
46,478,714
Oil
&
Gas
Exploration
&
Production
22.3%
Aker
BP
ASA
.........................................
Norway
136,200
3,925,450
Canadian
Natural
Resources
Ltd.
.........................
Canada
170,900
10,851,928
ConocoPhillips
.......................................
United
States
147,200
17,487,360
Coterra
Energy,
Inc.
...................................
United
States
239,800
6,594,500
Devon
Energy
Corp.
...................................
United
States
152,600
7,106,582
EOG
Resources,
Inc.
..................................
United
States
103,500
13,066,875
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Oil
&
Gas
Exploration
&
Production
(continued)
EQT
Corp.
..........................................
United
States
47,000
$
1,991,860
Hess
Corp.
..........................................
United
States
50,100
7,234,440
Matador
Resources
Co.
................................
United
States
55,100
3,399,119
Permian
Resources
Corp.,
A
.............................
United
States
122,200
1,780,454
Pioneer
Natural
Resources
Co.
...........................
United
States
38,201
9,130,039
Tourmaline
Oil
Corp.
...................................
Canada
33,900
1,792,535
84,361,142
Oil
&
Gas
Refining
&
Marketing
5.8%
Marathon
Petroleum
Corp.
..............................
United
States
56,300
8,515,375
Phillips
66
...........................................
United
States
59,800
6,821,386
Valero
Energy
Corp.
...................................
United
States
49,400
6,273,800
21,610,561
Oil
&
Gas
Storage
&
Transportation
8.1%
Cheniere
Energy,
Inc.
..................................
United
States
17,600
2,928,992
Enbridge,
Inc.
........................................
Canada
71,000
2,274,840
Kinder
Morgan,
Inc.
....................................
United
States
357,100
5,785,020
New
Fortress
Energy,
Inc.
...............................
United
States
76,000
2,302,800
Targa
Resources
Corp.
.................................
United
States
51,800
4,330,998
TC
Energy
Corp.
......................................
Canada
172,900
5,956,405
Williams
Cos.,
Inc.
(The)
................................
United
States
205,400
7,065,760
30,644,815
Paper
&
Plastic
Packaging
Products
&
Materials
0.7%
Packaging
Corp.
of
America
.............................
United
States
18,700
2,862,035
Specialty
Chemicals
1.0%
Albemarle
Corp.
......................................
United
States
17,100
2,167,938
Ecolab,
Inc.
..........................................
United
States
5,700
956,118
Neo
Performance
Materials,
Inc.
..........................
Canada
23,600
116,571
b
Neo
Performance
Materials,
Inc.,
144A
.....................
Canada
85,000
419,851
3,660,478
Steel
0.7%
Vale
SA,
ADR,
B
......................................
Brazil
199,400
2,733,774
Total
Common
Stocks
(Cost
$242,778,949)
.....................................
368,221,847
Warrants
a
a
a
a
a
Warrants
0.2%
Integrated
Oil
&
Gas
0.2%
a
Occidental
Petroleum
Corp.,
8/03/27
.......................
United
States
17,900
713,494
Total
Warrants
(Cost
$88,605)
.................................................
713,494
Principal
Amount
*
Convertible
Bonds
0.3%
Oil
&
Gas
Equipment
&
Services
0.3%
Oil
States
International,
Inc.,
Senior
Note,
4.75%,
4/01/26
.......
United
States
1,200,000
1,261,732
Total
Convertible
Bonds
(Cost
$1,200,000)
.....................................
1,261,732
Total
Long
Term
Investments
(Cost
$244,067,554)
...............................
370,197,073
a
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
franklintempleton.com
The
accompanying
notes
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an
integral
part
of
these
financial
statements.
Semiannual
Report
25
Short
Term
Investments
2.0%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.0%
c,d
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
7,382,054
$
7,382,054
Total
Money
Market
Funds
(Cost
$7,382,054)
...................................
7,382,054
Total
Short
Term
Investments
(Cost
$7,382,054
)
.................................
7,382,054
a
Total
Investments
(Cost
$251,449,608)
100.1%
..................................
$377,579,127
Other
Assets,
less
Liabilities
(0.1)%
...........................................
(137,998)
Net
Assets
100.0%
...........................................................
$377,441,129
See
Abbreviations
on
page
43
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2023,
the
aggregate
value
of
these
securities
was
$569,011,
representing
0.2%
of
net
assets.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
October
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$515,490,453
$244,067,554
Cost
-
Non-controlled
affiliates
(Note
3
f
and
8
)
...................................
41,601,497
7,382,054
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
9,593,232
and
$
—
,
respectively)
$675,622,122
$370,197,073
Value
-
Non-controlled
affiliates
(Note
3
f
and
8
)
..................................
38,731,358
7,382,054
Cash
...................................................................
146,820
47,603
Foreign
currency,
at
value
(cost
$
–
and
$
101,919
respectively)
........................
—
101,919
Receivables:
Investment
securities
sold
..................................................
3,736,036
—
Capital
shares
sold
.......................................................
167,508
297,756
Dividends
and
interest
....................................................
49,661
310,876
European
Union
tax
reclaims
(Note
1
d
)
........................................
—
177,287
Due
from
custodian
.......................................................
222,500
—
Total
assets
.........................................................
718,676,005
378,514,568
Liabilities:
Payables:
Investment
securities
purchased
.............................................
17,177
205,730
Capital
shares
redeemed
..................................................
1,100,041
453,911
Management
fees
........................................................
385,271
164,880
Distribution
fees
.........................................................
150,121
76,852
Transfer
agent
fees
.......................................................
184,474
127,425
Trustees'
fees
and
expenses
................................................
5
625
Payable
upon
return
of
securities
loaned
(Note
1
c
)
.................................
10,068,485
—
Accrued
expenses
and
other
liabilities
..........................................
113,167
44,016
Total
liabilities
........................................................
12,018,741
1,073,439
Net
assets,
at
value
................................................
$706,657,264
$377,441,129
Net
assets
consist
of:
Paid-in
capital
............................................................
$562,137,731
$440,266,131
Total
distributable
earnings
(losses)
............................................
144,519,533
(62,825,002)
Net
assets,
at
value
................................................
$706,657,264
$377,441,129
Franklin
Strategic
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Class
A:
Net
assets,
at
value
......................................................
$582,690,294
$270,014,858
Shares
outstanding
.......................................................
5,706,513
9,536,682
Net
asset
value
per
share
a
.................................................
$102.11
$28.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.50
%
)
...............
$108.05
$29.96
Class
C:
Net
assets,
at
value
......................................................
$23,378,442
$20,490,359
Shares
outstanding
.......................................................
249,124
744,046
Net
asset
value
and
maximum
offering
price
per
share
a
............................
$93.84
$27.54
Class
R6:
Net
assets,
at
value
......................................................
$8,894,517
$8,879,672
Shares
outstanding
.......................................................
81,968
288,803
Net
asset
value
and
maximum
offering
price
per
share
............................
$108.51
$30.75
Advisor
Class:
Net
assets,
at
value
......................................................
$91,694,011
$78,056,240
Shares
outstanding
.......................................................
858,373
2,559,286
Net
asset
value
and
maximum
offering
price
per
share
............................
$106.82
$30.50
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statements
of
Operations
for
the
six
months
ended
October
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
.51
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$–
and
$253,388,
respectively)
Unaffiliated
issuers
.......................................................
$1,975,055
$5,728,956
Non-controlled
affiliates
(Note
3
f
and
8
)
........................................
184,359
76,480
Interest:
Unaffiliated
issuers
.......................................................
—
28,500
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
23,834
(26,820)
Non-controlled
affiliates
(Note
3
f
)
............................................
178,052
29,512
Other
income
(Note
1
d
)
.....................................................
—
83,175
Total
investment
income
..................................................
2,361,300
5,919,803
Expenses:
Management
fees
(Note
3
a
)
..................................................
2,469,958
1,016,780
Distribution
fees:
(Note
3c
)
Class
A
...............................................................
823,265
355,443
Class
C
...............................................................
137,444
114,404
Transfer
agent
fees:
(Note
3e
)
Class
A
...............................................................
499,148
250,522
Class
C
...............................................................
20,830
20,134
Class
R6
..............................................................
6,616
3,891
Advisor
Class
...........................................................
79,861
69,767
Custodian
fees
(Note
4
)
.....................................................
21,727
3,224
Reports
to
shareholders
fees
.................................................
55,192
24,541
Registration
and
filing
fees
...................................................
43,619
53,266
Professional
fees
..........................................................
45,857
32,177
Trustees'
fees
and
expenses
.................................................
4,640
2,354
Interest
expense
..........................................................
—
590
Other
...................................................................
15,945
20,134
Total
expenses
........................................................
4,224,102
1,967,227
Expense
reductions
(Note
4
)
..............................................
(191)
(877)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(28,926)
(9,339)
Net
expenses
........................................................
4,194,985
1,957,011
Net
investment
income
(loss)
...........................................
(1,833,685)
3,962,792
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
18,593,504
2,263,744
Foreign
currency
transactions
...............................................
—
(3,112)
Net
realized
gain
(loss)
.................................................
18,593,504
2,260,632
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
(92,156,900)
(4,018,452)
Non-controlled
affiliates
(Note
3
f
and
8
)
......................................
2,520,503
—
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
.............
—
(7,385)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(89,636,397)
(4,025,837)
Net
realized
and
unrealized
gain
(loss)
...........................................
(71,042,893)
(1,765,205)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$(72,876,578)
$2,197,587
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
T
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
.......
$(1,833,685)
$(3,661,842)
$3,962,792
$10,632,094
Net
realized
gain
(loss)
............
18,593,504
27,149,552
2,260,632
11,835,014
Net
change
in
unrealized
appreciation
(depreciation)
.................
(89,636,397)
58,889,212
(4,025,837)
1,604,535
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(72,876,578)
82,376,922
2,197,587
24,071,643
Distributions
to
shareholders:
Class
A
........................
—
(904,691)
—
(7,499,623)
Class
C
........................
—
—
—
(603,835)
Class
R6
.......................
—
(47,834)
—
(157,126)
Advisor
Class
...................
—
(416,127)
—
(2,191,684)
Total
distributions
to
shareholders
.....
—
(1,368,652)
—
(10,452,268)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(43,798,643)
(85,965,290)
(32,815,765)
1,741,488
Class
C
........................
(3,661,608)
(7,011,858)
(4,718,502)
(6,228,814)
Class
R6
.......................
(1,881,649)
997,279
(3,496,087)
7,004,889
Advisor
Class
...................
(9,529,651)
(10,783,345)
(5,195,656)
(7,147,183)
Total
capital
share
transactions
.......
(58,871,551)
(102,763,214)
(46,226,010)
(4,629,620)
Net
increase
(decrease)
in
net
assets
.....................
(131,748,129)
(21,754,944)
(44,028,423)
8,989,755
Net
assets:
Beginning
of
period
................
838,405,393
860,160,337
421,469,552
412,479,797
End
of
period
.....................
$706,657,264
$838,405,393
$377,441,129
$421,469,552
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of ten
separate
funds, two
of
which
are
included
in
this
report
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer four classes
of
shares: Class
A,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
take
place
on
every
Funds'
business
day.
Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
October
31,
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.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
Certain
or
all
Funds
participate
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Funds,
and/or
uninvested
cash
as
included
in
due
from
custodian
in
the
Statements
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statements of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
October
31,
2023,
Franklin
Natural
Resources
Fund
had
no
securities
on
loan.
d.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2023, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
a
...................................
293,586
$32,274,495
759,286
$21,404,426
Shares
redeemed
...............................
(689,795)
(76,073,138)
(1,941,056)
(54,220,191)
Net
increase
(decrease)
..........................
(396,209)
$(43,798,643)
(1,181,770)
$(32,815,765)
Year
ended
April
30,
2023
Shares
sold
a
...................................
412,448
$42,946,165
3,647,273
$101,114,332
Shares
issued
in
reinvestment
of
distributions
..........
8,033
859,459
265,105
7,409,681
Shares
redeemed
...............................
(1,245,319)
(129,770,914)
(3,910,363)
(106,782,525)
Net
increase
(decrease)
..........................
(824,838)
$(85,965,290)
2,015
$1,741,488
Class
C
Class
C
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
25,871
$2,622,205
60,040
$1,617,306
Shares
redeemed
a
..............................
(61,702)
(6,283,813)
(230,635)
(6,335,808)
Net
increase
(decrease)
..........................
(35,831)
$(3,661,608)
(170,595)
$(4,718,502)
Year
ended
April
30,
2023
Shares
sold
...................................
23,788
$2,280,883
401,440
$10,974,990
Shares
issued
in
reinvestment
of
distributions
..........
—
—
21,669
592,875
Shares
redeemed
a
..............................
(97,280)
(9,292,741)
(658,964)
(17,796,679)
Net
increase
(decrease)
..........................
(73,492)
$(7,011,858)
(235,855)
$(6,228,814)
Class
R6
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
8,281
$975,526
49,785
$1,546,021
Shares
redeemed
...............................
(24,295)
(2,857,175)
(167,766)
(5,042,108)
Net
increase
(decrease)
..........................
(16,014)
$(1,881,649)
(117,981)
$(3,496,087)
Year
ended
April
30,
2023
Shares
sold
...................................
56,562
$6,304,709
343,698
$10,093,852
Shares
issued
in
reinvestment
of
distributions
..........
405
45,955
5,194
157,126
Shares
redeemed
...............................
(47,951)
(5,353,385)
(111,579)
(3,246,089)
Net
increase
(decrease)
..........................
9,016
$997,279
237,313
$7,004,889
Advisor
Class
Advisor
Class
Shares:
Six
Months
ended
October
31,
2023
Shares
sold
...................................
59,915
$6,951,873
454,481
$14,143,918
Shares
redeemed
...............................
(142,544)
(16,481,524)
(635,655)
(19,339,574)
Net
increase
(decrease)
..........................
(82,629)
$(9,529,651)
(181,174)
$(5,195,656)
Year
ended
April
30,
2023
Shares
sold
...................................
243,071
$26,463,616
924,804
$27,535,454
Shares
issued
in
reinvestment
of
distributions
..........
3,436
384,000
72,395
2,174,756
Shares
redeemed
...............................
(345,613)
(37,630,961)
(1,283,885)
(36,857,393)
Net
increase
(decrease)
..........................
(99,106)
$(10,783,345)
(286,686)
$(7,147,183)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
a.
Management
Fees
Franklin
Biotechnology
Discovery
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
Franklin
Natural
Resources
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2023,
each
Fund's
annualized
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
the
Funds’
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
Annualized
Fee
Rate
Net
Assets
0.775%
Up
to
and
including
$100
million
0.650%
Over
$100
million,
up
to
and
including
$200
million
0.635%
Over
$200
million,
up
to
and
including
$250
million
0.585%
Over
$250
million,
up
to
and
including
$700
million
0.550%
Over
$700
billion,
up
to
and
including
$1.2
billion
0.525%
Over
$1.2
billion,
up
to
and
including
$7.5
billion
0.515%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.505%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.495%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.475%
In
excess
of
$15
billion
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
In
excess
of
$15
billion
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Gross
effective
investment
management
fee
rate
........
0.616%
0.513%
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2023,
the
fees
are
based
on
a
fixed
margin
earned
by
Investor
Services
and
are
allocated
to
the
Funds based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period ended
October
31,
2023,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Class
A
...............................
0.35%
0.35%
Class
C
...............................
1.00%
1.00%
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$23,312
$12,653
CDSC
retained
...........................
$6,795
$2,793
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Transfer
agent
fees
........................
$191,675
$129,633
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Funds have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2024.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$16,832,344
$102,246,391
$(104,549,862)
$—
$—
$14,528,873
14,528,873
$184,359
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$2,337,680
$79,933,000
$(72,424,695)
$—
$—
$9,845,985
9,845,985
$178,052
Total
Affiliated
Securities
...
$19,170,024
$182,179,391
$(176,974,557)
$—
$—
$24,374,858
$362,411
Franklin
Natural
Resources
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$631,197
$53,690,363
$(46,939,506)
$—
$—
$7,382,054
7,382,054
$76,480
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$684,160
$29,607,699
$(30,291,859)
$—
$—
$—
—
$29,512
Total
Affiliated
Securities
...
$1,315,357
$83,298,062
$(77,231,365)
$—
$—
$7,382,054
$105,992
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
4.
Expense
Offset
Arrangement
The Funds have
previously
entered
into
an
arrangement
with their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the
period
ended
October
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. Effective
July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2023,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Funds
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At April
30,
2023,
the
Franklin
Biotechnology
Discovery
Fund
deferred
late-year
ordinary
losses
of
$977,896.
At
October
31
,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
passive
foreign
investment
company
shares,
corporate
actions
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
October
31,
2023,
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
19,657,690
$
1,961,609
Long
term
.............................
3,326,369
194,793,518
Total
capital
loss
carryforwards
............
$22,984,059
$196,755,127
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
a
a
a
Cost
of
investments
.......................
$562,631,810
$259,384,684
Unrealized
appreciation
.....................
$281,998,302
$149,239,485
Unrealized
depreciation
.....................
(130,276,632)
(31,045,042)
Net
unrealized
appreciation
(depreciation)
.......
$151,721,670
$118,194,443
Franklin
Biotechnology
Discovery
Fund
Franklin
Natural
Resources
Fund
Purchases
..............................
$102,112,022
$29,358,034
Sales
..................................
$163,232,729
$78,489,633
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
At
October
31,
2023,
in
connection
with
securities
lending
transactions,
certain
or
all
Funds
loaned
investments
and
received
cash
collateral
as
follows:
7.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
October
31,
2023,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
October
3
1
,
2023
,
investments
in
“affiliated
companies”
were
as
follows:
Franklin
Biotechnology
Discovery
Fund
Securities
lending
transactions
a
:
Equity
investments
b
........................
$10,068,485
a
The
agreements
can
be
terminated
at
any
time.
b
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statements
of
Assets
and
Liabilities.
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Biotechnology
Discovery
Fund
5,500
Aeglea
BioTherapeutics,
Inc.
...................
6/22/23
$
1,600,940
$
2,406,397
189,499
Artiva
Biotherapeutics,
Inc.,
B
...................
2/22/21
2,084,489
645,750
83,100
Carmot
Therapeutics,
Inc.,
E
...................
5/24/23
1,911,986
1,363,794
430,500
a
Harpoon
Therapeutics
Inc
.....................
10/23/23
2,511,752
2,024,512
215,250
a
Harpoon
Therapeutics,
Inc.,
2/01/49
..............
10/23/23
—
352,444
1,651,505
Pipeline
Therapeutics,
Inc.,
C
...................
2/09/21
-
5/25/23
4,425,868
3,237,485
103,899
b
Structure
Therapeutics
Inc
.....................
9/29/23
1,297,699
2,400,850
Total
Restricted
Securities
(Value
is
1.8%
of
Net
Assets)
..............
$13,832,734
$12,431,232
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$224,426
as
of
October
31,
2023.
b
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$5,959,603
as
of
October
31,
2023.
6.
Investment
Transactions
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
9.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
October
31,
2023,
the
Funds
did
not
use
the
Global
Credit
Facility.
10.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/Warrants
Held
at
End
of
Period
Investment
Income
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Applied
Therapeutics,
Inc
$
4,392,892
$
—
$
—
$
—
$
1,808,838
$
6,201,730
2,584,054
$
—
Applied
Therapeutics,
Inc.,
6/27/27
..........
1,383,719
—
—
—
569,799
1,953,518
814,000
—
Applied
Therapeutics,
Inc.,
6/27/27
.
.........
1,457,250
—
—
—
860,767
2,318,017
1,628,100
—
Artiva
Biotherapeutics,
Inc.,
B
..........
829,888
—
—
—
(184,138)
645,750
189,499
—
Benitec
Biopharma,
Inc.
1,247,436
—
—
—
—
a
—
a
—
a
—
Benitec
Biopharma,
Inc.,
II,
9/14/27
..........
366,803
—
—
—
—
a
—
a
—
a
—
Pipeline
Therapeutics,
Inc.,
C
..............
1,435,375
2,336,873
—
—
(534,763)
3,237,485
1,651,505
—
Total
Affiliated
Securities
(Value
is
2.0%
of
Net
Assets)
..........
$11,113,363
$2,336,873
$—
$—
$2,520,503
$14,356,500
$—
a
As
of
October
31,
2023,
no
longer
an
affiliate.
8.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2023,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
.........................
$
504,918,945
$
—
$
2,024,512
$
506,943,457
Health
Care
Providers
&
Services
..........
4,478,948
—
—
4,478,948
Life
Sciences
Tools
&
Services
............
30,840,278
—
—
30,840,278
Pharmaceuticals
.......................
129,245,452
—
2,400,850
131,646,302
Convertible
Preferred
Stocks
................
—
—
7,007,676
7,007,676
Preferred
Stocks
:
Health
Care
Providers
&
Services
..........
—
—
645,750
645,750
Life
Sciences
Tools
&
Services
............
—
2,305,669
—
2,305,669
Warrants
:
Biotechnology
.........................
—
3,078,876
3,027,055
6,105,931
Pharmaceuticals
.......................
4,611
—
—
4,611
Escrows
and
Litigation
Trusts
...............
—
—
—
a
—
Short
Term
Investments
...................
24,374,858
—
—
24,374,858
Total
Investments
in
Securities
...........
$693,863,092
$5,384,545
b
$15,105,843
$714,353,480
Level
1
Level
2
Level
3
Total
Franklin
Natural
Resources
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Agricultural
Products
&
Services
...........
$
4,035,302
$
—
$
—
$
4,035,302
Construction
&
Engineering
...............
1,578,325
—
—
1,578,325
Construction
Materials
..................
3,639,566
—
—
3,639,566
Copper
..............................
13,982,736
2,839,677
—
16,822,413
Diversified
Chemicals
...................
3,065,562
—
—
3,065,562
Diversified
Metals
&
Mining
...............
14,347,288
5,877,650
—
20,224,938
Electrical
Components
&
Equipment
........
5,301,769
—
—
5,301,769
Environmental
&
Facilities
Services
.........
492,182
—
—
492,182
Fertilizers
&
Agricultural
Chemicals
.........
7,357,634
—
—
7,357,634
Gold
................................
24,371,996
—
—
24,371,996
Heavy
Electrical
Equipment
..............
269,115
—
—
269,115
Industrial
Gases
.......................
10,680,056
—
—
10,680,056
Industrial
Machinery
&
Supplies
&
Components
3,685,476
—
—
3,685,476
Integrated
Oil
&
Gas
....................
62,821,017
—
—
62,821,017
Metal,
Glass
&
Plastic
Containers
..........
4,338,025
—
—
4,338,025
Oil
&
Gas
Drilling
......................
7,186,952
—
—
7,186,952
Oil
&
Gas
Equipment
&
Services
...........
43,902,546
2,576,168
—
46,478,714
Oil
&
Gas
Exploration
&
Production
.........
80,435,692
3,925,450
—
84,361,142
Oil
&
Gas
Refining
&
Marketing
............
21,610,561
—
—
21,610,561
Oil
&
Gas
Storage
&
Transportation
.........
30,644,815
—
—
30,644,815
Paper
&
Plastic
Packaging
Products
&
Materials
2,862,035
—
—
2,862,035
Specialty
Chemicals
....................
3,660,478
—
—
3,660,478
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
At
October
31,
2023,
the
reconciliation
is
as
follows:
11.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Level
1
Level
2
Level
3
Total
Franklin
Natural
Resources
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Steel
................................
$
2,733,774
$
—
$
—
$
2,733,774
Warrants
..............................
713,494
—
—
713,494
Convertible
Bonds
.......................
—
1,261,732
—
1,261,732
Short
Term
Investments
...................
7,382,054
—
—
7,382,054
Total
Investments
in
Securities
...........
$361,098,450
$16,480,677
c
$—
$377,579,127
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$2,305,669,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$15,218,945,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
......
$
—
$
2,511,752
$
—
$
—
$
—
$
—
$
—
$
(487,240)
$
2,024,512
$
(487,241)
Pharmaceuticals
....
—
1,297,699
—
—
—
—
—
1,103,151
2,400,850
1,103,151
Convertible
Preferred
Stocks
:
Biotechnology
......
1,435,375
5,849,799
—
—
—
—
—
(277,498)
7,007,676
(277,498)
Preferred
Stocks
:
Health
Care
Providers
&
Services
........
829,888
—
—
—
—
—
—
(184,138)
645,750
(184,138)
Warrants
:
Biotechnology
......
1,824,053
31
c
—
—
—
—
—
1,202,971
3,027,055
1,202,971
Escrows
and
Litigation
Trusts
:
—
c
—
(776,290)
—
—
—
766,542
9,748
—
c
—
Total
Investments
in
Securities
............
$4,089,316
$9,659,281
$(776,290)
$—
$—
$—
$766,542
$1,366,994
$15,105,843
$1,357,245
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Includes
financial
instruments
determined
to
have
no
value.
10.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
Franklin
Strategic
Series
Shareholder
Information
44
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Strategic
Series
Shareholder
Information
45
franklintempleton.com
Semiannual
Report
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
or
receive
notice
of
the
availability
of,
each
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
FSS2
S
12/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
recorded.
Semiannual
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Franklin
Strategic
Series
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Semiannual
Report
Franklin
Strategic
Income
Fund
A
Series
of
Franklin
Strategic
Series
October
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
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broker-dealer
or
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franklintempleton.com
Semiannual
Report
1
Contents
Fund
Overview
2
Performance
Summary
3
Your
Fund’s
Expenses
5
Financial
Highlights
and
Schedule
of
Investments
6
Financial
Statements
117
Notes
to
Financial
Statements
121
Shareholder
Information
139
Visit
franklintempleton.com
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fund
updates,
to
access
your
account,
or
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planning
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2
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
This
semiannual
report
for
Franklin
Strategic
Income
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
earn
a
high
level
of
current
income.
A
secondary
goal
is
capital
appreciation
over
the
long
term.
The
Fund
uses
an
active
asset
allocation
process
and
under
normal
market
conditions
invests
at
least
65%
of
its
assets
in
U.S.
and
foreign
debt
securities,
including
those
in
emerging
markets.
The
Fund
may
invest
in
all
varieties
of
fixed,
variable
and
floating
rate
income
securities,
including
bonds,
U.S.
and
foreign
government
and
agency
securities,
corporate
loans
(and
loan
participations),
mortgage-backed
securities
and
other
asset-backed
securities.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
-2.60%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Bloomberg
U.S.
Aggregate
Index,
which
represents
the
U.S.
investment-grade
fixed
rate
taxable
bond
market,
posted
a
-6.13%
cumulative
total
return.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
3
.
The
Fund
was
able
to
successfully
meet
its
monthly
distributions
under
its
managed
distribution
policy
without
the
return
of
capital
and
without
an
associated
impact
from
return
of
capital
on
the
Fund’s
net
asset
value
per
share.
The
policy
had
no
material
impact
on
the
Fund’s
investment
strategy.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Thank
you
for
your
participation
in
Franklin
Strategic
Income
Fund.
We
look
forward
to
continuing
to
serve
your
investment
needs.
Sonal
Desai,
Ph.D.
Patrick
Klein,
Ph.D.
Patricia
O’Connor,
CFA
Thomas
Runkel,
CFA
Benjamin
Cryer,
CFA
Portfolio
Management
Team
Portfolio
Composition
10/31/23
%
of
Total
Net
Assets
Corporate
Bonds
51.7%
U.S.
Government
and
Agency
Securities
19.3%
Mortgage-Backed
Securities
11.4%
Asset-Backed
Securities
*
4.4%
Management
Investment
Companies
3.5%
Residential
Mortgage-Backed
Securities
3.1%
Foreign
Government
and
Agency
Securities
2.1%
Marketplace
Loans
1.7%
Other
†
1.3%
Short-Term
Investments
&
Other
Net
Assets
1.5%
*
Includes
non-agency
residential
mortgage
backed
securities,
collateralized
loan
obligations
and
consumer
loan
certificates.
†
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
11
.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
October
31,
2023
Franklin
Strategic
Income
Fund
3
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of 10/31/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
6-Month
-2.60%
-6.24%
1-Year
+4.34%
+0.39%
5-Year
+2.25%
-0.32%
10-Year
+11.86%
+0.74%
Advisor
6-Month
-2.48%
-2.48%
1-Year
+4.59%
+4.59%
5-Year
+3.52%
+0.69%
10-Year
+14.67%
+1.38%
30
-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
(with
fee
waiver)
(without
fee
waiver)
A
4.67%
5.06%
5.03%
Advisor
5.10%
5.54%
5.52%
See
page
4
for
Performance
Summary
footnotes.
Franklin
Strategic
Income
Fund
Performance
Summary
4
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
Floating-rate
loans
and
debt
securities
are
typically
rated
below
investment
grade
and
are
subject
to
greater
risk
of
default,
which
could
result
in
loss
of
principal.
International
investments
are
subject
to
special
risks,
including
currency
fluctuations
and
social,
economic
and
political
uncertainties,
which
could
increase
volatility.
These
risks
are
magnified
in
emerging
markets.
Derivative
instruments
can
be
illiquid,
may
disproportionately
increase
loss-
es,
and
have
a
potentially
large
impact
on
performance.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determinative
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
fees
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
8/31/24
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
the
sum
of
the
respective
class’s
dividend
distributions
over
the
past
six
months
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
10/31/23.
6.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
7.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Consolidated
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/23–10/31/23)
Share
Class
Net
Investment
Income
A
$0.1890
C
$0.1713
R
$0.1785
R6
$0.2038
Advisor
$0.1989
Total
Annual
Operating
Expenses
7
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.93%
0.98%
Advisor
0.68%
0.73%
Your
Fund’s
Expenses
Franklin
Strategic
Income
Fund
5
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$974.00
$4.48
$1,020.60
$4.58
0.90%
C
$1,000
$973.10
$6.45
$1,018.60
$6.60
1.30%
R
$1,000
$972.60
$5.71
$1,019.35
$5.85
1.15%
R6
$1,000
$975.80
$2.65
$1,022.45
$2.71
0.53%
Advisor
$1,000
$975.20
$3.24
$1,021.86
$3.31
0.65%
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
2
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
*
2020
a
2019
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.23
$8.55
$9.44
$8.67
$9.61
$9.61
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.36
0.29
0.37
0.38
0.42
Net
realized
and
unrealized
gains
(losses)
(0.39)
(0.31)
(0.84)
0.75
(0.90)
—
d
Total
from
investment
operations
........
(0.21)
0.05
(0.55)
1.12
(0.52)
0.42
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.19)
(0.37)
(0.34)
(0.35)
(0.42)
(0.42)
Net
asset
value,
end
of
period
..........
$7.83
$8.23
$8.55
$9.44
$8.67
$9.61
Total
return
e
.......................
(2.60)%
0.73%
(6.07)%
13.05%
(5.72)%
4.52%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.93%
0.94%
0.90%
0.88%
0.88%
0.89%
Expenses
net
of
waiver
and
payments
by
affiliates
g
..........................
0.90%
0.89%
0.84%
0.86%
0.86%
0.84%
Net
investment
income
...............
4.55%
4.34%
3.11%
3.93%
4.01%
4.39%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,094,024
$2,285,374
$2,609,533
$2,862,068
$2,686,523
$3,131,799
Portfolio
turnover
rate
................
28.89%
69.77%
52.98%
111.72%
h
118.64%
116.21%
h
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
........................
28.89%
69.77%
41.46%
54.21%
h
86.69%
39.01%
h
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
*
2020
a
2019
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.23
$8.55
$9.44
$8.67
$9.61
$9.60
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.17
0.32
0.25
0.33
0.34
0.38
Net
realized
and
unrealized
gains
(losses)
(0.39)
(0.30)
(0.84)
0.75
(0.90)
0.01
Total
from
investment
operations
........
(0.22)
0.02
(0.59)
1.08
(0.56)
0.39
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.17)
(0.34)
(0.30)
(0.31)
(0.38)
(0.38)
Net
asset
value,
end
of
period
..........
$7.84
$8.23
$8.55
$9.44
$8.67
$9.61
Total
return
d
.......................
(2.69)%
0.30%
(6.48)%
12.58%
(6.11)%
4.19%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.33%
1.34%
1.29%
1.28%
1.28%
1.29%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.30%
1.29%
1.24%
1.26%
1.26%
1.24%
Net
investment
income
...............
4.14%
3.92%
2.70%
3.51%
3.61%
3.99%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$74,474
$100,037
$171,374
$387,589
$518,795
$716,327
Portfolio
turnover
rate
................
28.89%
69.77%
52.98%
111.72%
g
118.64%
116.21%
g
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
h
........................
28.89%
69.77%
41.46%
54.21%
g
86.69%
39.01%
g
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions
.
h
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
*
2020
a
2019
a
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.19
$8.51
$9.40
$8.63
$9.57
$9.57
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.17
0.33
0.27
0.34
0.36
0.39
Net
realized
and
unrealized
gains
(losses)
(0.39)
(0.30)
(0.85)
0.76
(0.91)
0.01
Total
from
investment
operations
........
(0.22)
0.03
(0.58)
1.10
(0.55)
0.40
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.18)
(0.35)
(0.31)
(0.33)
(0.39)
(0.40)
Net
asset
value,
end
of
period
..........
$7.79
$8.19
$8.51
$9.40
$8.63
$9.57
Total
return
d
.......................
(2.74)%
0.48%
(6.33)%
12.83%
(5.98)%
4.28%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.18%
1.19%
1.15%
1.13%
1.13%
1.14%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.15%
1.14%
1.09%
1.11%
1.11%
1.09%
Net
investment
income
...............
4.29%
4.09%
2.86%
3.68%
3.76%
4.14%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$36,438
$40,939
$48,447
$59,366
$62,063
$85,458
Portfolio
turnover
rate
................
28.89%
69.77%
52.98%
111.72%
g
118.64%
116.21%
g
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
h
........................
28.89%
69.77%
41.46%
54.21%
g
86.69%
39.01%
g
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
h
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
*
2020
a
2019
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.24
$8.56
$9.45
$8.68
$9.63
$9.62
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.20
0.39
0.32
0.40
0.43
0.45
Net
realized
and
unrealized
gains
(losses)
(0.40)
(0.31)
(0.84)
0.75
(0.93)
0.02
Total
from
investment
operations
........
(0.20)
0.08
(0.52)
1.15
(0.50)
0.47
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.20)
(0.40)
(0.37)
(0.38)
(0.45)
(0.46)
Net
asset
value,
end
of
period
..........
$7.84
$8.24
$8.56
$9.45
$8.68
$9.63
Total
return
d
.......................
(2.42)%
1.12%
(5.72)%
13.45%
(5.46)%
5.03%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.58%
0.58%
0.55%
0.54%
0.52%
0.51%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.53%
0.51%
0.48%
0.50%
0.49%
0.45%
Net
investment
income
...............
4.92%
4.73%
3.47%
4.30%
4.38%
4.78%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$127,886
$132,950
$136,184
$132,736
$133,575
$307,287
Portfolio
turnover
rate
................
28.89%
69.77%
52.98%
111.72%
g
118.64%
116.21%
g
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
h
........................
28.89%
69.77%
41.46%
54.21%
g
86.69%
39.01%
g
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
h
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Financial
Highlights
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
*
2020
a
2019
a
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$8.24
$8.56
$9.45
$8.68
$9.62
$9.62
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.20
0.38
0.31
0.39
0.40
0.44
Net
realized
and
unrealized
gains
(losses)
(0.40)
(0.31)
(0.84)
0.75
(0.90)
—
d
Total
from
investment
operations
........
(0.20)
0.07
(0.53)
1.14
(0.50)
0.44
Less
distributions
from:
Net
investment
income
and
net
foreign
currency
gains
....................
(0.20)
(0.39)
(0.36)
(0.37)
(0.44)
(0.44)
Net
asset
value,
end
of
period
..........
$7.84
$8.24
$8.56
$9.45
$8.68
$9.62
Total
return
e
.......................
(2.48)%
0.98%
(5.83)%
13.32%
(5.47)%
4.88%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.68%
0.69%
0.65%
0.63%
0.63%
0.64%
Expenses
net
of
waiver
and
payments
by
affiliates
g
..........................
0.65%
0.64%
0.59%
0.61%
0.61%
0.59%
Net
investment
income
...............
4.80%
4.59%
3.36%
4.18%
4.26%
4.64%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$267,017
$311,142
$390,465
$462,624
$517,522
$608,317
Portfolio
turnover
rate
................
28.89%
69.77%
52.98%
111.72%
h
118.64%
116.21%
h
Portfolio
turnover
rate
excluding
mortgage
dollar
rolls
i
........................
28.89%
69.77%
41.46%
54.21%
h
86.69%
39.01%
h
*
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II
from
May
1,
2020
through
April
27,
2021.
a
Includes
the
consolidated
operations
of
FT
Holdings
Corporation
II.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Excludes
the
value
of
portfolio
activity
as
a
result
of
in-kind
transactions.
i
See
Note
1(h)
regarding
mortgage
dollar
rolls.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Strategic
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.7%
Broadline
Retail
0.0%
a,b,c
K2016470219
South
Africa
Ltd.,
A
.........................
South
Africa
125,940,079
$
—
a,b,c
K2016470219
South
Africa
Ltd.,
B
.........................
South
Africa
12,532,821
—
—
Oil,
Gas
&
Consumable
Fuels
0.7%
b
Amplify
Energy
Corp.
..................................
United
States
5,288
36,752
Birch
Permian
Holdings,
Inc.
.............................
United
States
46,176
513,708
Quarternorth
Energy
Holding,
Inc.
.........................
United
States
142,136
19,200,228
19,750,688
Total
Common
Stocks
(Cost
$24,902,563)
......................................
19,750,688
Management
Investment
Companies
3.5%
Capital
Markets
3.5%
d
Franklin
Floating
Rate
Income
Fund
.......................
United
States
11,365,166
90,125,767
Total
Management
Investment
Companies
(Cost
$103,286,654)
...................
90,125,767
Warrants
Warrants
0.0%
Oil,
Gas
&
Consumable
Fuels
0.0%
a,b
Canvas
Energy,
Inc.,
10/01/24
............................
United
States
9
—
a,b
Canvas
Energy,
Inc.,
10/01/25
............................
United
States
9
—
—
Software
0.0%
a,b,c
WorkCapital
BSD
SARL,
2/13/26
..........................
Luxembourg
6,000,000
—
Total
Warrants
(Cost
$750,000)
................................................
—
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
e,f,g,h
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
711,806
49,095
Total
Convertible
Bonds
(Cost
$196,542)
.......................................
49,095
Corporate
Bonds
51.7%
Aerospace
&
Defense
0.9%
Boeing
Co.
(The)
,
Senior
Bond,
3.625%,
2/01/31
..........................
United
States
5,000,000
4,216,188
Senior
Note,
5.15%,
5/01/30
...........................
United
States
8,100,000
7,593,268
h
TransDigm,
Inc.
,
Senior
Secured
Note,
144A,
6.25%,
3/15/26
...............
United
States
10,000,000
9,779,047
Senior
Secured
Note,
144A,
6.75%,
8/15/28
...............
United
States
2,500,000
2,430,583
24,019,086
Air
Freight
&
Logistics
0.1%
h
DAE
Funding
LLC
,
Senior
Note
,
144A,
1.55
%
,
8/01/24
.........
United
Arab
Emirates
2,300,000
2,212,110
FedEx
Corp.
,
Senior
Bond
,
4.05
%
,
2/15/48
..................
United
States
1,200,000
836,459
3,048,569
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Automobile
Components
1.0%
h
Adient
Global
Holdings
Ltd.
,
Senior
Note,
144A,
8.25%,
4/15/31
......................
United
States
3,300,000
$
3,214,707
Senior
Secured
Note,
144A,
7%,
4/15/28
..................
United
States
2,000,000
1,970,790
h
Allison
Transmission,
Inc.
,
Senior
Bond,
144A,
5.875%,
6/01/29
.....................
United
States
7,000,000
6,496,820
Senior
Bond,
144A,
3.75%,
1/30/31
......................
United
States
3,400,000
2,698,080
h
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
6,600,000
5,199,314
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note
,
5
%
,
7/15/29
....
United
States
8,300,000
7,150,722
26,730,433
Automobiles
0.2%
h
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
7,000,000
6,041,534
Banks
6.0%
h,i
ABN
AMRO
Bank
NV
,
Senior
Note
,
144A,
FRN
,
6.339
%
,
(
1-year
CMT
T-Note
+
1.65
%
),
9/18/27
..........................
Netherlands
2,100,000
2,077,816
Banco
Santander
SA
,
Sub.
Bond
,
2.749
%
,
12/03/30
...........
Spain
3,000,000
2,190,054
Bank
of
America
Corp.
,
Senior
Bond,
4.571%
to
4/26/32,
FRN
thereafter,
4/27/33
.....
United
States
8,000,000
6,902,125
Senior
Bond,
2.676%
to
6/18/40,
FRN
thereafter,
6/19/41
.....
United
States
4,000,000
2,440,257
Senior
Note,
4.376%
to
4/26/27,
FRN
thereafter,
4/27/28
......
United
States
9,500,000
8,870,839
h
BNP
Paribas
SA
,
Senior
Note
,
144A,
2.819%
to
11/18/24,
FRN
thereafter
,
11/19/25
..................................
France
4,400,000
4,234,212
h
BPCE
SA
,
Senior
Note
,
144A,
2.045%
to
10/18/26,
FRN
thereafter
,
10/19/27
..........................................
France
7,900,000
6,897,122
Citigroup,
Inc.
,
Senior
Note
,
5.61%
to
9/28/25,
FRN
thereafter
,
9/29/26
...........................................
United
States
15,500,000
15,306,608
HSBC
Holdings
plc
,
Senior
Bond,
2.848%
to
6/03/30,
FRN
thereafter,
6/04/31
.....
United
Kingdom
8,300,000
6,516,095
Senior
Note,
4.18%
to
12/08/24,
FRN
thereafter,
12/09/25
.....
United
Kingdom
9,100,000
8,863,828
Senior
Note,
5.21%
to
8/10/27,
FRN
thereafter,
8/11/28
.......
United
Kingdom
5,850,000
5,581,620
JPMorgan
Chase
&
Co.
,
Senior
Bond,
2.522%
to
4/21/30,
FRN
thereafter,
4/22/31
.....
United
States
9,400,000
7,479,128
Senior
Bond,
2.525%
to
11/18/40,
FRN
thereafter,
11/19/41
....
United
States
4,000,000
2,391,737
KeyBank
NA
,
Senior
Note
,
4.15
%
,
8/08/25
..................
United
States
5,000,000
4,651,624
Mitsubishi
UFJ
Financial
Group,
Inc.
,
Senior
Note
,
5.063%
to
9/11/24,
FRN
thereafter
,
9/12/25
.........................
Japan
9,200,000
9,100,775
Mizuho
Financial
Group,
Inc.
,
Senior
Note
,
5.778%
to
7/05/28,
FRN
thereafter
,
7/06/29
...................................
Japan
5,100,000
4,982,666
Royal
Bank
of
Canada
,
Senior
Note
,
5.2
%
,
8/01/28
............
Canada
8,300,000
8,009,031
Santander
UK
Group
Holdings
plc
,
Senior
Note
,
1.673%
to
6/23/26,
FRN
thereafter
,
6/14/27
...............................
United
Kingdom
6,700,000
5,842,792
h
Societe
Generale
SA
,
Senior
Bond,
144A,
2.889%
to
6/08/31,
FRN
thereafter,
6/09/32
France
7,500,000
5,519,122
Senior
Note,
144A,
1.792%
to
6/08/26,
FRN
thereafter,
6/09/27
.
France
7,200,000
6,329,895
Toronto-Dominion
Bank
(The)
,
Senior
Note
,
4.693
%
,
9/15/27
.....
Canada
9,900,000
9,432,222
Truist
Financial
Corp.
,
Senior
Note
,
5.9%
to
10/27/25,
FRN
thereafter
,
10/28/26
..................................
United
States
7,900,000
7,771,249
h
UniCredit
SpA
,
Senior
Bond
,
144A,
3.127%
to
6/02/31,
FRN
thereafter
,
6/03/32
...................................
Italy
5,300,000
3,974,574
Wells
Fargo
&
Co.
,
Senior
Note,
4.54%
to
8/14/25,
FRN
thereafter,
8/15/26
.......
United
States
4,700,000
4,556,334
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Banks
(continued)
Wells
Fargo
&
Co.,
(continued)
Senior
Note,
6.303%
to
10/22/28,
FRN
thereafter,
10/23/29
....
United
States
7,400,000
$
7,340,674
157,262,399
Beverages
0.3%
Anheuser-Busch
InBev
Worldwide,
Inc.
,
Senior
Bond
,
3.5
%
,
6/01/30
Belgium
1,300,000
1,142,987
h
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
9,000,000
7,604,190
8,747,177
Biotechnology
0.6%
AbbVie,
Inc.
,
Senior
Note
,
3.2
%
,
11/21/29
...................
United
States
6,000,000
5,230,729
Amgen,
Inc.
,
Senior
Bond,
4.2%,
3/01/33
............................
United
States
4,000,000
3,450,821
Senior
Bond,
5.25%,
3/02/33
...........................
United
States
6,600,000
6,158,347
14,839,897
Broadline
Retail
0.0%
a,e,h
K2016470219
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
3
%
,
12/31/22
.......................................
South
Africa
10,914,248
—
a,e,h
K2016470260
South
Africa
Ltd.
,
Senior
Secured
Note
,
144A,
PIK,
25
%
,
12/31/22
......................................
South
Africa
4,807,777
—
—
Building
Products
0.8%
h
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....................................
United
States
3,300,000
3,084,642
h
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
.....................................
United
States
5,000,000
4,739,818
h
Emerald
Debt
Merger
Sub
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
....................................
United
States
7,000,000
6,667,500
h
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
4,800,000
4,301,086
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
1,600,000
1,308,772
Senior
Bond,
144A,
3.375%,
1/15/31
.....................
United
States
1,400,000
1,061,062
21,162,880
Capital
Markets
2.5%
Deutsche
Bank
AG
,
Senior
Note
,
5.371
%
,
9/09/27
.............
Germany
7,800,000
7,547,842
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond,
3.21%
to
4/21/41,
FRN
thereafter,
4/22/42
......
United
States
7,000,000
4,545,615
Senior
Note,
5.7%,
11/01/24
...........................
United
States
6,200,000
6,177,835
Senior
Note,
4.387%
to
6/14/26,
FRN
thereafter,
6/15/27
......
United
States
3,400,000
3,249,288
Senior
Note,
1.948%
to
10/20/26,
FRN
thereafter,
10/21/27
....
United
States
3,000,000
2,631,802
h
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
......................................
United
States
8,000,000
6,826,195
Morgan
Stanley
,
Senior
Bond
,
3.591
%
,
7/22/28
...............
United
States
10,000,000
9,072,371
h
MSCI,
Inc.
,
Senior
Bond
,
144A,
3.25
%
,
8/15/33
...............
United
States
11,800,000
8,742,488
UBS
Group
AG
,
Senior
Note,
4.55%,
4/17/26
...........................
Switzerland
4,000,000
3,825,038
h
Senior
Note,
144A,
2.193%
to
6/04/25,
FRN
thereafter,
6/05/26
.
Switzerland
1,000,000
931,167
h
Senior
Note,
144A,
6.373%
to
7/14/25,
FRN
thereafter,
7/15/26
.
Switzerland
3,050,000
3,032,313
h
Senior
Note,
144A,
5.711%
to
1/11/26,
FRN
thereafter,
1/12/27
.
Switzerland
8,150,000
8,018,860
64,600,814
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
1.8%
h
ASP
Unifrax
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
9/30/28
...........................................
United
States
2,600,000
$
1,759,178
h
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
7,000,000
4,137,787
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.165
%
,
7/15/27
......
United
States
4,850,000
4,735,867
h
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
6,700,000
5,512,257
h
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
6,600,000
5,623,190
h
Gates
Global
LLC
/
Gates
Corp.
,
Senior
Note
,
144A,
6.25
%
,
1/15/26
United
States
7,900,000
7,745,121
h
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
5,000,000
4,508,814
e,h
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
..
United
States
2,500,000
1,815,625
Nutrien
Ltd.
,
Senior
Note
,
4.9
%
,
3/27/28
....................
Canada
1,150,000
1,102,259
h
Syngenta
Finance
NV
,
Senior
Note
,
144A,
4.892
%
,
4/24/25
......
Switzerland
6,385,000
6,241,937
Westlake
Corp.
,
Senior
Bond
,
3.375
%
,
6/15/30
...............
United
States
2,500,000
2,079,757
h
Yara
International
ASA
,
Senior
Bond
,
144A,
3.148
%
,
6/04/30
.....
Brazil
1,400,000
1,130,077
46,391,869
Commercial
Services
&
Supplies
0.9%
h
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
6,000,000
4,994,752
h
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
11,000,000
9,682,327
h
Stericycle,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
1/15/29
...........
United
States
9,500,000
8,082,335
22,759,414
Communications
Equipment
0.1%
h
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
..
United
States
5,518,000
3,319,105
Construction
&
Engineering
0.2%
h
Arcosa,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
5,600,000
4,892,412
Construction
Materials
0.3%
h
Knife
River
Corp.
,
Senior
Note
,
144A,
7.75
%
,
5/01/31
..........
United
States
7,000,000
6,984,588
Consumer
Finance
0.8%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
,
Senior
Bond
,
3.4
%
,
10/29/33
.................................
Ireland
4,500,000
3,367,257
OneMain
Finance
Corp.
,
Senior
Note
,
9
%
,
1/15/29
............
United
States
3,800,000
3,701,742
h
Park
Aerospace
Holdings
Ltd.
,
Senior
Note
,
144A,
5.5
%
,
2/15/24
.
Ireland
3,100,000
3,078,841
h
PRA
Group,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
............
United
States
8,000,000
5,317,256
h
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
5,800,000
4,922,344
20,387,440
Consumer
Staples
Distribution
&
Retail
0.5%
h
Albertsons
Cos.,
Inc.
/
Safeway,
Inc.
/
New
Albertsons
LP
/
Albertsons
LLC
,
Senior
Note
,
144A,
3.5
%
,
3/15/29
...........
United
States
10,400,000
8,878,438
h
US
Foods,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
9/15/28
...........
United
States
3,300,000
3,229,425
12,107,863
Containers
&
Packaging
1.7%
h
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
3,700,000
2,695,780
Senior
Secured
Note,
144A,
4.125%,
8/15/26
..............
United
States
5,000,000
4,417,600
h
OI
European
Group
BV
,
Senior
Note
,
144A,
4.75
%
,
2/15/30
......
United
States
5,000,000
4,261,100
h
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
5/15/31
...........................................
United
States
3,000,000
2,748,750
h
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
6,100,000
5,196,119
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Containers
&
Packaging
(continued)
h
Pactiv
Evergreen
Group
Issuer,
Inc.
/
Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
4,600,000
$
4,018,784
h
Sealed
Air
Corp.
,
Senior
Bond,
144A,
5.125%,
12/01/24
....................
United
States
3,000,000
2,943,282
Senior
Note,
144A,
6.125%,
2/01/28
.....................
United
States
8,000,000
7,624,513
h
Trivium
Packaging
Finance
BV
,
Senior
Secured
Note
,
144A,
5.5
%
,
8/15/26
...........................................
Netherlands
7,000,000
6,356,516
WRKCo,
Inc.
,
Senior
Bond
,
3
%
,
6/15/33
....................
United
States
3,600,000
2,752,760
43,015,204
Distributors
0.2%
h
Ritchie
Bros
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
3/15/31
......................
Canada
2,700,000
2,710,125
Senior
Secured
Note,
144A,
6.75%,
3/15/28
...............
Canada
1,500,000
1,471,842
4,181,967
Diversified
Consumer
Services
0.3%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
......
United
States
7,500,000
6,654,750
Diversified
REITs
0.5%
h
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
7,700,000
5,833,111
Simon
Property
Group
LP
,
Senior
Bond,
4.25%,
11/30/46
..........................
United
States
3,000,000
2,082,951
Senior
Bond,
3.25%,
9/13/49
...........................
United
States
7,000,000
4,058,555
11,974,617
Diversified
Telecommunication
Services
1.5%
h
Altice
France
Holding
SA
,
Senior
Note
,
144A,
6
%
,
2/15/28
......
Luxembourg
4,000,000
1,757,983
h
Altice
France
SA
,
Senior
Secured
Note,
144A,
5.5%,
1/15/28
................
France
1,500,000
1,115,943
Senior
Secured
Note,
144A,
5.5%,
10/15/29
...............
France
3,000,000
2,065,937
AT&T,
Inc.
,
Senior
Bond,
2.55%,
12/01/33
..........................
United
States
8,000,000
5,744,023
Senior
Bond,
3.65%,
9/15/59
...........................
United
States
4,000,000
2,316,168
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond
,
4.5
%
,
5/01/32
......................................
United
States
7,000,000
5,364,113
h
Iliad
Holding
SASU
,
Senior
Secured
Note,
144A,
6.5%,
10/15/26
...............
France
2,800,000
2,618,985
Senior
Secured
Note,
144A,
7%,
10/15/28
.................
France
5,400,000
4,891,089
Verizon
Communications,
Inc.
,
Senior
Note
,
2.355
%
,
3/15/32
....
United
States
8,400,000
6,284,301
h
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
7,000,000
5,780,530
37,939,072
Electric
Utilities
2.3%
Duke
Energy
Corp.
,
Senior
Bond,
2.45%,
6/01/30
...........................
United
States
6,200,000
4,944,856
Senior
Bond,
3.75%,
9/01/46
...........................
United
States
1,600,000
1,044,064
Duke
Energy
Ohio,
Inc.
,
Senior
Bond
,
5.25
%
,
4/01/33
..........
United
States
1,000,000
940,432
h
Enel
Finance
International
NV
,
Senior
Note
,
144A,
2.65
%
,
9/10/24
Italy
7,800,000
7,560,944
Exelon
Corp.
,
Senior
Bond,
4.05%,
4/15/30
...........................
United
States
13,400,000
11,843,706
Senior
Bond,
4.45%,
4/15/46
...........................
United
States
1,400,000
1,029,544
NextEra
Energy
Capital
Holdings,
Inc.
,
Senior
Note
,
6.051
%
,
3/01/25
United
States
3,300,000
3,299,091
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electric
Utilities
(continued)
Southern
Co.
(The)
,
Senior
Bond,
4.4%,
7/01/46
............................
United
States
5,000,000
$
3,692,984
Senior
Note,
5.5%,
3/15/29
............................
United
States
6,100,000
5,980,249
Virginia
Electric
and
Power
Co.
,
Senior
Bond
,
6.35
%
,
11/30/37
...
United
States
820,000
799,235
h
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
11,000,000
9,355,610
Senior
Secured
Bond,
144A,
4.3%,
7/15/29
................
United
States
6,000,000
5,224,102
Xcel
Energy,
Inc.
,
Senior
Bond
,
5.45
%
,
8/15/33
...............
United
States
4,500,000
4,195,743
59,910,560
Electrical
Equipment
0.3%
Eaton
Corp.
,
Senior
Bond
,
4.15
%
,
3/15/33
...................
United
States
1,900,000
1,672,302
h
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
8,500,000
7,438,008
9,110,310
Electronic
Equipment,
Instruments
&
Components
0.4%
CDW
LLC
/
CDW
Finance
Corp.
,
Senior
Note
,
3.25
%
,
2/15/29
....
United
States
5,000,000
4,226,704
Flex
Ltd.
,
Senior
Bond
,
4.875
%
,
5/12/30
....................
United
States
7,100,000
6,449,457
10,676,161
Energy
Equipment
&
Services
0.1%
h
Schlumberger
Holdings
Corp.
,
Senior
Note
,
144A,
3.9
%
,
5/17/28
..
United
States
3,800,000
3,503,938
Entertainment
0.2%
h
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
7
%
,
5/01/29
...........................................
France
2,800,000
EUR
2,940,182
Warnermedia
Holdings,
Inc.
,
Senior
Note
,
4.054
%
,
3/15/29
......
United
States
2,100,000
1,858,712
4,798,894
Financial
Services
0.5%
a,i
Cia
Securitizadora
de
Creditos
Financeiros
Vert-Fintech
,
12
,
Senior
Secured
Note
,
FRN
,
14.9
%
,
(
BZDIOVRA
+
5.75
%
),
2/14/24
....
Brazil
11,513,000
BRL
1,228,110
h
Corebridge
Financial,
Inc.
,
Senior
Bond
,
144A,
6.05
%
,
9/15/33
...
United
States
4,900,000
4,603,035
h
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
7,000,000
6,120,358
11,951,503
Food
Products
0.8%
h
Bimbo
Bakeries
USA,
Inc.
,
Senior
Bond
,
144A,
4
%
,
5/17/51
.....
Mexico
2,000,000
1,368,882
h
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.......
United
States
9,000,000
8,452,345
General
Mills,
Inc.
,
Senior
Note
,
5.241
%
,
11/18/25
.............
United
States
1,550,000
1,533,902
Hershey
Co.
(The)
,
Senior
Bond
,
4.5
%
,
5/04/33
...............
United
States
2,400,000
2,207,110
JBS
USA
LUX
SA
/
JBS
USA
Food
Co.
/
JBS
USA
Finance,
Inc.
,
Senior
Note,
2.5%,
1/15/27
............................
United
States
4,800,000
4,219,032
Senior
Note,
3%,
2/02/29
.............................
United
States
1,500,000
1,236,030
Senior
Note,
3.625%,
1/15/32
..........................
United
States
3,500,000
2,693,542
21,710,843
Gas
Utilities
0.1%
Piedmont
Natural
Gas
Co.,
Inc.
,
Senior
Bond
,
3.35
%
,
6/01/50
....
United
States
2,800,000
1,629,146
Ground
Transportation
0.3%
CSX
Corp.
,
Senior
Bond
,
4.1
%
,
3/15/44
....................
United
States
1,600,000
1,191,655
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Ground
Transportation
(continued)
h
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
9,500,000
$
7,658,520
8,850,175
Health
Care
Equipment
&
Supplies
0.8%
h
Bausch
&
Lomb
Escrow
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
..........................................
United
States
2,700,000
2,685,150
Baxter
International,
Inc.
,
Senior
Note
,
2.272
%
,
12/01/28
........
United
States
4,700,000
3,890,896
h
Garden
Spinco
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
......
United
States
4,700,000
4,854,442
GE
HealthCare
Technologies,
Inc.
,
Senior
Note
,
5.6
%
,
11/15/25
..
United
States
4,700,000
4,675,219
h
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
......
United
States
5,300,000
4,516,696
20,622,403
Health
Care
Providers
&
Services
2.3%
Centene
Corp.
,
Senior
Note,
4.25%,
12/15/27
..........................
United
States
3,000,000
2,763,630
Senior
Note,
2.45%,
7/15/28
...........................
United
States
2,300,000
1,936,887
Senior
Note,
4.625%,
12/15/29
.........................
United
States
2,300,000
2,056,524
Senior
Note,
3.375%,
2/15/30
..........................
United
States
1,400,000
1,158,849
Senior
Note,
2.625%,
8/01/31
..........................
United
States
5,300,000
3,986,183
h
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.875%,
4/15/29
....................
United
States
1,000,000
413,955
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
3,700,000
3,008,946
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
2,300,000
1,744,711
CVS
Health
Corp.
,
Senior
Bond,
1.75%,
8/21/30
...........................
United
States
4,000,000
3,024,217
Senior
Bond,
5.3%,
6/01/33
............................
United
States
3,000,000
2,772,086
Senior
Bond,
2.7%,
8/21/40
............................
United
States
6,300,000
3,817,811
h
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
9,000,000
7,060,681
Elevance
Health,
Inc.
,
Senior
Bond
,
3.7
%
,
9/15/49
............
United
States
1,400,000
920,623
HCA,
Inc.
,
Senior
Bond
,
3.5
%
,
9/01/30
.....................
United
States
11,900,000
9,852,820
h
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
5,500,000
4,105,723
Quest
Diagnostics,
Inc.
,
Senior
Bond
,
2.8
%
,
6/30/31
...........
United
States
2,100,000
1,663,342
Tenet
Healthcare
Corp.
,
Senior
Secured
Note
,
6.125
%
,
6/15/30
...
United
States
10,000,000
9,267,704
59,554,692
Health
Care
REITs
0.2%
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5%,
10/15/27
............................
United
States
3,000,000
2,320,519
Senior
Bond,
3.5%,
3/15/31
............................
United
States
4,000,000
2,429,630
4,750,149
Health
Care
Technology
0.3%
h
IQVIA,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
5/15/30
................
United
States
7,200,000
6,993,000
Hotel
&
Resort
REITs
0.1%
h
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
3,500,000
2,964,829
Hotels,
Restaurants
&
Leisure
1.2%
h
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
.....................................
Czech
Republic
6,000,000
5,945,760
h
Boyd
Gaming
Corp.
,
Senior
Bond
,
144A,
4.75
%
,
6/15/31
........
United
States
4,000,000
3,324,375
Las
Vegas
Sands
Corp.
,
Senior
Bond
,
3.9
%
,
8/08/29
...........
United
States
8,300,000
7,176,556
h
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
7,500,000
6,161,005
h
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
........
United
States
3,100,000
2,680,232
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
h
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
8,000,000
$
5,750,000
31,037,928
Household
Durables
0.1%
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
2,900,000
2,310,227
Household
Products
0.3%
h
Central
Garden
&
Pet
Co.
,
Senior
Bond
,
144A,
4.125
%
,
4/30/31
..
United
States
5,000,000
3,983,735
h
Spectrum
Brands,
Inc.
,
Senior
Bond
,
144A,
3.875
%
,
3/15/31
.....
United
States
4,500,000
3,606,615
7,590,350
Independent
Power
and
Renewable
Electricity
Producers
1.0%
h
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
4.125
%
,
6/15/28
...........................................
Spain
5,000,000
4,324,154
h
Calpine
Corp.
,
Senior
Bond,
144A,
5%,
2/01/31
........................
United
States
4,300,000
3,472,607
Senior
Note,
144A,
4.625%,
2/01/29
.....................
United
States
4,000,000
3,381,750
h
Clearway
Energy
Operating
LLC
,
Senior
Note
,
144A,
3.75
%
,
2/15/31
United
States
6,100,000
4,763,542
Constellation
Energy
Generation
LLC
,
Senior
Bond
,
6.125
%
,
1/15/34
United
States
2,000,000
1,935,065
h
Talen
Energy
Supply
LLC
,
Senior
Secured
Note
,
144A,
8.625
%
,
6/01/30
...........................................
United
States
7,200,000
7,323,185
25,200,303
Insurance
1.3%
h
AIA
Group
Ltd.
,
Senior
Bond
,
144A,
4.95
%
,
4/04/33
...........
Hong
Kong
3,100,000
2,849,272
h
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/15/28
.....................
United
States
6,000,000
5,707,892
Arch
Capital
Group
Ltd.
,
Senior
Bond
,
3.635
%
,
6/30/50
.........
United
States
10,000,000
6,362,567
h
Corebridge
Global
Funding
,
Secured
Note
,
144A,
5.9
%
,
9/19/28
..
United
States
2,100,000
2,075,793
h
Metropolitan
Life
Global
Funding
I
,
Secured
Note,
144A,
5.05%,
1/06/28
.....................
United
States
9,600,000
9,317,843
Secured
Note,
144A,
4.3%,
8/25/29
......................
United
States
3,000,000
2,757,015
h
Northwestern
Mutual
Global
Funding
,
Secured
Note
,
144A,
4.9
%
,
6/12/28
...........................................
United
States
5,600,000
5,379,851
34,450,233
Interactive
Media
&
Services
0.5%
Meta
Platforms,
Inc.
,
Senior
Note
,
4.8
%
,
5/15/30
..............
United
States
7,000,000
6,751,605
h
Tencent
Holdings
Ltd.
,
Senior
Note
,
144A,
2.39
%
,
6/03/30
.......
China
9,100,000
7,200,984
13,952,589
IT
Services
1.0%
h
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
9,200,000
7,518,002
h
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
7,000,000
6,308,599
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
3,800,000
3,212,985
h
Presidio
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
2/01/27
United
States
11,000,000
10,092,194
27,131,780
Life
Sciences
Tools
&
Services
0.1%
h
Fortrea
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
7/01/30
.
United
States
3,900,000
3,768,375
Machinery
0.3%
h
Chart
Industries,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
1/01/30
.
United
States
5,500,000
5,407,794
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Machinery
(continued)
Parker-Hannifin
Corp.
,
Senior
Note
,
4.25
%
,
9/15/27
...........
United
States
3,700,000
$
3,510,143
8,917,937
Media
2.2%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
,
Senior
Secured
Bond
,
2.8
%
,
4/01/31
.......
United
States
15,900,000
12,164,849
h
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
5,200,000
3,980,705
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
2,400,000
2,135,198
Comcast
Corp.
,
Senior
Bond
,
4.8
%
,
5/15/33
.................
United
States
5,200,000
4,745,037
h
CSC
Holdings
LLC
,
Senior
Bond
,
144A,
3.375
%
,
2/15/31
.......
United
States
5,000,000
3,202,222
h
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
6,000,000
5,263,020
h
DISH
DBS
Corp.
,
Senior
Secured
Note
,
144A,
5.75
%
,
12/01/28
...
United
States
4,000,000
2,912,500
Fox
Corp.
,
Senior
Bond,
3.5%,
4/08/30
............................
United
States
1,400,000
1,187,716
Senior
Bond,
6.5%,
10/13/33
...........................
United
States
11,500,000
11,236,944
h
Sinclair
Television
Group,
Inc.
,
Senior
Secured
Note
,
144A,
4.125
%
,
12/01/30
..........................................
United
States
2,500,000
1,582,050
h
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.........
United
States
9,000,000
7,662,215
56,072,456
Metals
&
Mining
1.0%
h
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
9,200,000
7,584,263
h
Indonesia
Asahan
Aluminium
PT
/
Mineral
Industri
Indonesia
Persero
PT
,
Senior
Bond
,
144A,
5.45
%
,
5/15/30
...................
Indonesia
6,900,000
6,411,446
h
Novelis
Corp.
,
Senior
Bond,
144A,
4.75%,
1/30/30
......................
United
States
3,200,000
2,718,542
Senior
Note,
144A,
3.25%,
11/15/26
.....................
United
States
2,700,000
2,406,461
h
POSCO
,
Senior
Note
,
144A,
5.625
%
,
1/17/26
................
South
Korea
7,950,000
7,894,659
27,015,371
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.3%
h
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
10,000,000
8,055,168
Multi-Utilities
0.6%
Dominion
Energy,
Inc.
,
A,
Senior
Note,
4.35%,
8/15/32
.........................
United
States
3,200,000
2,771,903
C,
Senior
Note,
3.375%,
4/01/30
........................
United
States
7,800,000
6,563,886
DTE
Energy
Co.
,
Senior
Note
,
4.875
%
,
6/01/28
...............
United
States
5,700,000
5,424,894
14,760,683
Oil,
Gas
&
Consumable
Fuels
5.3%
h
Aker
BP
ASA
,
Senior
Bond
,
144A,
3.1
%
,
7/15/31
..............
Norway
8,700,000
6,839,365
h
Antero
Resources
Corp.
,
Senior
Note
,
144A,
7.625
%
,
2/01/29
....
United
States
4,969,000
5,035,947
Canadian
Natural
Resources
Ltd.
,
Senior
Bond
,
2.95
%
,
7/15/30
..
Canada
3,700,000
3,018,923
h
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
1/15/29
...........................................
United
States
8,300,000
8,228,260
h
Civitas
Resources,
Inc.
,
Senior
Note,
144A,
8.375%,
7/01/28
.....................
United
States
3,300,000
3,324,456
Senior
Note,
144A,
8.625%,
11/01/30
....................
United
States
1,000,000
1,018,886
Senior
Note,
144A,
8.75%,
7/01/31
......................
United
States
3,300,000
3,334,705
h
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
2/01/29
....................
United
States
4,000,000
3,874,420
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
h
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
6,500,000
$
6,136,650
h
DT
Midstream,
Inc.
,
Senior
Bond
,
144A,
4.375
%
,
6/15/31
.......
United
States
4,600,000
3,824,646
h
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/30/28
.................................
United
States
8,700,000
8,354,610
Energy
Transfer
LP
,
Senior
Bond
,
3.75
%
,
5/15/30
.............
United
States
7,300,000
6,241,671
EnLink
Midstream
LLC
,
Senior
Bond,
5.375%,
6/01/29
..........................
United
States
10,900,000
9,982,866
h
Senior
Note,
144A,
5.625%,
1/15/28
.....................
United
States
1,700,000
1,604,622
h
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5
%
,
6/01/27
..
United
States
800,000
793,124
h
Galaxy
Pipeline
Assets
Bidco
Ltd.
,
Senior
Secured
Bond
,
144A,
2.16
%
,
3/31/34
.....................................
United
Arab
Emirates
2,548,320
2,070,163
h
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
4,900,000
4,310,645
Senior
Bond,
144A,
6.25%,
4/15/32
......................
United
States
1,700,000
1,486,627
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
2,000,000
1,802,740
h
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
........
United
States
5,000,000
4,592,648
MPLX
LP
,
Senior
Note
,
2.65
%
,
8/15/30
.....................
United
States
15,000,000
11,855,152
Sabine
Pass
Liquefaction
LLC
,
Senior
Secured
Note
,
4.5
%
,
5/15/30
United
States
10,000,000
8,973,233
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note
,
4.5
%
,
5/15/29
..
United
States
12,000,000
10,408,765
h
Var
Energi
ASA
,
Senior
Bond
,
144A,
8
%
,
11/15/32
............
Norway
9,000,000
9,293,175
h
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond
,
144A,
4.125
%
,
8/15/31
.....................................
United
States
2,600,000
2,093,083
h
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note
,
144A,
8.375
%
,
6/01/31
...........................................
United
States
5,500,000
5,252,500
h
Viper
Energy
Partners
LP
,
Senior
Note
,
144A,
7.375
%
,
11/01/31
..
United
States
3,600,000
3,594,402
137,346,284
Paper
&
Forest
Products
0.3%
Suzano
Austria
GmbH
,
Senior
Bond,
3.75%,
1/15/31
...........................
Brazil
7,100,000
5,765,544
DM3N,
Senior
Bond,
3.125%,
1/15/32
....................
Brazil
4,400,000
3,319,329
9,084,873
Passenger
Airlines
0.5%
h
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.75
%
,
4/20/29
............................
United
States
5,900,000
5,327,876
h
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.5
%
,
10/20/25
.....................................
United
States
6,934,000
6,741,192
h
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
4/15/26
.
United
States
1,700,000
1,578,636
13,647,704
Personal
Care
Products
1.2%
h
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/30
.........
United
States
6,200,000
6,028,136
h
Coty,
Inc./HFC
Prestige
Products,
Inc./HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
4.75
%
,
1/15/29
............
United
States
8,000,000
7,091,040
Estee
Lauder
Cos.,
Inc.
(The)
,
Senior
Bond
,
4.65
%
,
5/15/33
.....
United
States
8,800,000
8,004,183
Kenvue,
Inc.
,
WI
,
Senior
Note
,
5.05
%
,
3/22/28
...............
United
States
8,600,000
8,443,059
h
Prestige
Brands,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
4/01/31
.......
United
States
3,700,000
2,942,425
32,508,843
Pharmaceuticals
1.2%
h
Bayer
US
Finance
II
LLC
,
Senior
Bond
,
144A,
4.375
%
,
12/15/28
..
Germany
11,700,000
10,725,844
h
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Secured
Note
,
144A,
4.125
%
,
4/30/28
....................
United
States
7,000,000
6,052,796
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Pharmaceuticals
(continued)
Pfizer
Investment
Enterprises
Pte.
Ltd.
,
Senior
Bond
,
4.75
%
,
5/19/33
United
States
3,500,000
$
3,218,446
Royalty
Pharma
plc
,
Senior
Bond
,
3.3
%
,
9/02/40
..............
United
States
5,300,000
3,351,469
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note
,
5.125
%
,
5/09/29
.....................................
Israel
9,100,000
7,951,489
31,300,044
Real
Estate
Management
&
Development
0.2%
h
China
Overseas
Finance
Cayman
VI
Ltd.
,
Senior
Bond
,
Reg
S,
5.95
%
,
5/08/24
.....................................
China
4,000,000
3,987,500
Software
0.2%
h
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
............
United
States
6,000,000
4,805,224
Specialized
REITs
0.3%
h
Iron
Mountain,
Inc.
,
Senior
Note
,
144A,
7
%
,
2/15/29
...........
United
States
8,200,000
7,953,271
Specialty
Retail
0.3%
AutoNation,
Inc.
,
Senior
Bond
,
4.75
%
,
6/01/30
...............
United
States
1,900,000
1,665,131
h
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
..........
United
States
2,500,000
1,912,690
h
Michaels
Cos.,
Inc.
(The)
,
Senior
Secured
Note
,
144A,
5.25
%
,
5/01/28
...........................................
United
States
4,700,000
3,409,850
6,987,671
Technology
Hardware,
Storage
&
Peripherals
0.1%
Teledyne
FLIR
LLC
,
Senior
Note
,
2.5
%
,
8/01/30
..............
United
States
2,100,000
1,653,615
Textiles,
Apparel
&
Luxury
Goods
0.2%
h,j
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
............
United
States
6,000,000
5,576,011
Tobacco
0.8%
Altria
Group,
Inc.
,
Senior
Bond
,
3.4
%
,
5/06/30
................
United
States
12,400,000
10,375,750
h
Imperial
Brands
Finance
plc
,
Senior
Bond,
144A,
4.25%,
7/21/25
......................
United
Kingdom
2,800,000
2,705,451
Senior
Bond,
144A,
3.875%,
7/26/29
.....................
United
Kingdom
2,200,000
1,919,768
Philip
Morris
International,
Inc.
,
Senior
Bond
,
5.375
%
,
2/15/33
....
United
States
7,200,000
6,655,063
21,656,032
Trading
Companies
&
Distributors
0.7%
h
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
10,200,000
8,650,881
h
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
7/15/27
..........
United
States
1,800,000
1,693,919
h
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
6/15/28
....
United
States
7,000,000
6,963,041
17,307,841
Transportation
Infrastructure
0.0%
†
h
Rutas
2
&
7
Finance
Ltd.
,
Senior
Secured
Bond
,
144A,
Zero
Cpn.,
9/30/36
...........................................
United
States
1,040,000
662,142
Wireless
Telecommunication
Services
0.6%
e,f,h
Digicel
Group
Holdings
Ltd.
,
Senior
Note
,
144A,
PIK,
8
%
,
4/01/25
.
Bermuda
146,354
30,734
T-Mobile
USA,
Inc.
,
Senior
Bond,
3.3%,
2/15/51
............................
United
States
4,800,000
2,822,934
Senior
Note,
3.875%,
4/15/30
..........................
United
States
13,400,000
11,671,622
14,525,290
Total
Corporate
Bonds
(Cost
$1,543,609,387)
...................................
1,343,353,438
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
k
Senior
Floating
Rate
Interests
0.0%
Software
0.0%
a,c,f
WorkCapital
BSD
SARL
,
Term
Loan
,
6.5
%
,
1/01/38
............
Luxembourg
20,000,000
$
—
Total
Senior
Floating
Rate
Interests
(Cost
$19,530,078)
..........................
—
l
Marketplace
Loans
1.7%
a
Financial
Services
1.7%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$48,370,766)
....................................
43,002,967
Foreign
Government
and
Agency
Securities
2.1%
h
African
Export-Import
Bank
(The)
,
Senior
Bond
,
144A,
3.994
%
,
9/21/29
...........................................
Supranational
m
13,600,000
11,062,716
h
Banque
Ouest
Africaine
de
Developpement
,
Senior
Bond
,
144A,
5
%
,
7/27/27
...........................................
Supranational
m
11,500,000
10,254,734
Colombia
Government
Bond
,
Senior
Bond
,
9.85
%
,
6/28/27
......
Colombia
55,750,000,000
COP
12,809,632
h
Comision
Federal
de
Electricidad
,
Senior
Bond
,
144A,
3.348
%
,
2/09/31
...........................................
Mexico
9,500,000
7,231,377
h
Electricite
de
France
SA
,
Senior
Note
,
144A,
5.7
%
,
5/23/28
......
France
1,700,000
1,664,548
h
Korea
Electric
Power
Corp.
,
Senior
Note
,
144A,
5.375
%
,
4/06/26
.
South
Korea
3,400,000
3,382,705
h
Petroleos
Mexicanos
,
Senior
Bond
,
144A,
10
%
,
2/07/33
........
Mexico
3,200,000
2,831,689
h
Romania
Government
Bond
,
Senior
Bond
,
144A,
6.125
%
,
1/22/44
.
Romania
4,700,000
4,064,551
Total
Foreign
Government
and
Agency
Securities
(Cost
$69,571,824)
..............
53,301,952
U.S.
Government
and
Agency
Securities
19.3%
FFCB
,
2.1
%,
2/25/36
...................................
United
States
7,700,000
5,138,556
U.S.
Treasury
Bonds
,
6.875%,
8/15/25
.....................................
United
States
1,000,000
1,029,531
2.875%,
5/15/49
.....................................
United
States
13,400,000
8,996,844
U.S.
Treasury
Notes
,
2.625%,
12/31/23
....................................
United
States
8,800,000
8,758,809
4.375%,
10/31/24
....................................
United
States
35,500,000
35,130,046
1.75%,
12/31/24
.....................................
United
States
31,500,000
30,224,004
4.125%,
1/31/25
.....................................
United
States
30,500,000
30,062,158
1.5%,
2/15/25
......................................
United
States
66,800,000
63,650,484
n
Index
Linked,
0.625%,
1/15/26
..........................
United
States
27,000,000
33,194,172
3.875%,
1/15/26
.....................................
United
States
32,500,000
31,730,664
4%,
2/15/26
........................................
United
States
85,000,000
83,163,867
2.375%,
4/30/26
.....................................
United
States
100,000
94,000
3.625%,
5/15/26
.....................................
United
States
3,500,000
3,390,488
4.375%,
8/15/26
.....................................
United
States
12,100,000
11,927,953
2.75%,
7/31/27
.....................................
United
States
39,000,000
36,174,023
3.875%,
11/30/27
....................................
United
States
43,700,000
42,107,340
2.875%,
5/15/28
.....................................
United
States
9,800,000
9,015,617
3.125%,
11/15/28
....................................
United
States
15,100,000
13,925,621
3.875%,
9/30/29
.....................................
United
States
18,700,000
17,702,180
3.5%,
1/31/30
......................................
United
States
15,600,000
14,412,633
4.125%,
8/31/30
.....................................
United
States
15,000,000
14,310,938
3.5%,
2/15/33
......................................
United
States
9,800,000
8,774,063
Total
U.S.
Government
and
Agency
Securities
(Cost
$510,698,021)
................
502,913,991
Asset-Backed
Securities
4.4%
Commercial
Services
&
Supplies
0.1%
h,o
Galaxy
XXVIII
CLO
Ltd.
,
2018-28A
,
C
,
144A,
FRN
,
7.605
%
,
(
3-month
SOFR
+
2.212
%
),
7/15/31
.
.....................
United
States
3,070,000
3,011,854
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
(continued)
Financial
Services
4.3%
h,o
Burnham
Park
CLO
Ltd.
,
2016-1A
,
BR
,
144A,
FRN
,
7.177
%
,
(
3-month
SOFR
+
1.762
%
),
10/20/29
.
....................
United
States
3,500,000
$
3,477,178
h,o
Carlyle
Direct
Lending
CLO
LLC
,
2015-1A
,
A2R
,
144A,
FRN
,
7.855
%
,
(
3-month
SOFR
+
2.462
%
),
10/15/31
.
..............
United
States
12,000,000
11,731,311
h,o
Carlyle
Global
Market
Strategies
CLO
Ltd.
,
2013-3A,
BR,
144A,
FRN,
7.355%,
(3-month
SOFR
+
1.962%),
10/15/30
..........................................
United
States
300,000
292,847
2014-2RA,
B,
144A,
FRN,
7.451%,
(3-month
SOFR
+
2.087%),
5/15/31
...........................................
United
States
580,000
562,091
h,p
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2018-29,
PT,
144A,
FRN,
25.86%,
12/15/43
................
United
States
9,168
8,696
2019-26,
PT,
144A,
FRN,
16.108%,
8/15/44
................
United
States
322,761
302,992
2019-31,
PT,
144A,
FRN,
12.109%,
9/15/44
................
United
States
275,329
252,813
2019-37,
PT,
144A,
FRN,
15.935%,
10/17/44
...............
United
States
316,835
299,665
2019-42,
PT,
144A,
FRN,
14.513%,
11/15/44
...............
United
States
337,017
315,337
2019-51,
PT,
144A,
FRN,
14.731%,
1/15/45
................
United
States
357,601
336,565
2019-52,
PT,
144A,
FRN,
13.603%,
1/15/45
................
United
States
340,634
320,180
2019-S1,
PT,
144A,
FRN,
4.311%,
4/15/44
.................
United
States
43,481
41,990
2019-S2,
PT,
144A,
FRN,
8.762%,
5/16/44
.................
United
States
67,849
62,810
2019-S3,
PT,
144A,
FRN,
9.663%,
6/15/44
.................
United
States
112,012
103,133
2019-S4,
PT,
144A,
FRN,
9.816%,
8/15/44
.................
United
States
178,414
171,252
2019-S5,
PT,
144A,
FRN,
10.314%,
9/15/44
................
United
States
178,625
166,472
2019-S6,
PT,
144A,
FRN,
8.155%,
10/17/44
................
United
States
241,086
223,128
2019-S7,
PT,
144A,
FRN,
8.271%,
12/15/44
................
United
States
155,244
143,379
2019-S8,
PT,
144A,
FRN,
8.946%,
1/15/45
.................
United
States
191,993
177,793
2020-2,
PT,
144A,
FRN,
14.503%,
3/15/45
.................
United
States
352,886
330,897
2020-7,
PT,
144A,
FRN,
15.031%,
4/17/45
.................
United
States
220,497
203,820
h,o
Dryden
75
CLO
Ltd.
,
2019-75A
,
AR2
,
144A,
FRN
,
6.695
%
,
(
3-month
SOFR
+
1.302
%
),
4/15/34
.
.............................
United
States
30,321,000
29,926,493
h
Home
Partners
of
America
Trust
,
2021-2,
B,
144A,
2.302%,
12/17/26
......................
United
States
11,907,982
10,480,548
2021-3,
B,
144A,
2.649%,
1/17/41
.......................
United
States
4,382,124
3,693,419
h,o
LCM
XVII
LP
,
17A
,
BRR
,
144A,
FRN
,
7.255
%
,
(
3-month
SOFR
+
1.862
%
),
10/15/31
.
...................................
United
States
4,590,000
4,508,090
h,o
Neuberger
Berman
CLO
XXII
Ltd.
,
2016-22A
,
CR
,
144A,
FRN
,
7.864
%
,
(
3-month
SOFR
+
2.462
%
),
10/17/30
.
..............
United
States
2,129,630
2,093,090
h,o
Northwoods
Capital
Ltd.
,
2018-11BA
,
A1
,
144A,
FRN
,
6.758
%
,
(
3-month
SOFR
+
1.362
%
),
4/19/31
.
.....................
United
States
7,461,588
7,446,067
h,o
Octagon
Investment
Partners
28
Ltd.
,
2016-1A
,
BR
,
144A,
FRN
,
7.46
%
,
(
3-month
SOFR
+
2.062
%
),
10/24/30
.
...............
United
States
3,914,730
3,877,944
h,o
Octagon
Investment
Partners
36
Ltd.
,
2018-1A
,
A1
,
144A,
FRN
,
6.625
%
,
(
3-month
SOFR
+
1.232
%
),
4/15/31
.
...............
United
States
7,088,426
7,071,661
h,p
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
14.089%,
3/15/26
................
United
States
188,967
183,237
2020-PT2,
A,
144A,
FRN,
12.177%,
4/15/26
................
United
States
225,166
213,934
2020-PT3,
A,
144A,
FRN,
5.076%,
5/15/26
.................
United
States
77,585
70,491
h,o
Strata
CLO
I
Ltd.
,
2018-1A
,
B
,
144A,
FRN
,
7.855
%
,
(
3-month
SOFR
+
2.462
%
),
1/15/31
.
..................................
United
States
14,100,000
14,164,135
h,p
Upgrade
Master
Pass-Thru
Trust
,
2019-PT1,
A,
144A,
FRN,
30.725%,
6/15/25
................
United
States
54,432
48,505
2019-PT2,
A,
144A,
FRN,
21.642%,
2/15/26
................
United
States
166,372
162,190
h,o
Voya
CLO
Ltd.
,
2013-2A,
A2AR,
144A,
FRN,
7.04%,
(3-month
SOFR
+
1.662%),
4/25/31
...........................................
United
States
2,200,000
2,150,724
2013-2A,
BR,
144A,
FRN,
7.49%,
(3-month
SOFR
+
2.112%),
4/25/31
...........................................
United
States
5,770,000
5,504,128
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
(continued)
Financial
Services
(continued)
h,o
Voya
CLO
Ltd.,
(continued)
2016-1A,
BR,
144A,
FRN,
7.477%,
(3-month
SOFR
+
2.062%),
1/20/31
...........................................
United
States
590,000
$
562,203
111,681,208
a
a
a
a
a
a
Passenger
Airlines
0.0%
†
United
Airlines
Pass-Through
Trust
,
2020-1
,
B
,
4.875
%
,
7/15/27
.
..
United
States
729,600
699,684
Total
Asset-Backed
Securities
(Cost
$118,775,048)
..............................
115,392,746
Commercial
Mortgage-Backed
Securities
0.6%
Financial
Services
0.6%
p
Benchmark
Mortgage
Trust
,
2023-V3
,
A3
,
FRN
,
6.363
%
,
7/15/56
..
United
States
640,000
641,148
h,o
BX
Commercial
Mortgage
Trust
,
2021-VOLT,
A,
144A,
FRN,
6.149%,
(1-month
SOFR
+
0.814%),
9/15/36
...........................................
United
States
2,480,000
2,405,440
2021-VOLT,
B,
144A,
FRN,
6.399%,
(1-month
SOFR
+
1.064%),
9/15/36
...........................................
United
States
3,890,000
3,764,063
2022-LP2,
A,
144A,
FRN,
6.347%,
(1-month
SOFR
+
1.013%),
2/15/39
...........................................
United
States
7,614,653
7,401,372
p
Commercial
Mortgage
Trust
,
2006-GG7
,
AJ
,
FRN
,
6.012
%
,
7/10/38
United
States
2,336,688
1,012,954
15,224,977
a
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$16,862,855)
................
15,224,977
Mortgage-Backed
Securities
11.4%
q
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Adjustable
Rate
0.0%
†
FHLMC,
4.348%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
1/01/33
..
United
States
8,328
8,134
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
5.3%
FHLMC
Gold
Pool,
20
Year,
5%,
5/01/27
-
5/01/30
.............
United
States
93,532
89,942
FHLMC
Gold
Pool,
30
Year,
4.5%,
10/01/40
.................
United
States
37,375
34,583
FHLMC
Gold
Pool,
30
Year,
5%,
3/01/34
-
2/01/38
.............
United
States
242,492
235,659
FHLMC
Gold
Pool,
30
Year,
5.5%,
6/01/33
-
6/01/36
...........
United
States
329,814
323,870
FHLMC
Gold
Pool,
30
Year,
6%,
6/01/33
-
6/01/37
.............
United
States
153,370
152,630
FHLMC
Gold
Pool,
30
Year,
6.5%,
12/01/25
-
6/01/36
..........
United
States
31,314
31,847
FHLMC
Gold
Pool,
30
Year,
7%,
8/01/32
....................
United
States
2,021
2,047
FHLMC
Gold
Pool,
30
Year,
7.5%,
1/01/26
-
1/01/31
...........
United
States
1,739
1,782
FHLMC
Gold
Pool,
30
Year,
8%,
11/01/25
...................
United
States
17
17
FHLMC
Gold
Pool,
30
Year,
9%,
12/01/24
...................
United
States
7
6
FHLMC
Pool,
30
Year,
2%,
3/01/52
........................
United
States
35,341,274
25,993,344
FHLMC
Pool,
30
Year,
4%,
6/01/52
........................
United
States
37,753,257
32,655,365
FHLMC
Pool,
30
Year,
4.5%,
8/01/52
.......................
United
States
57,984,360
51,863,794
FHLMC
Pool,
30
Year,
5.5%,
11/01/52
......................
United
States
27,718,566
26,334,849
137,719,735
q
Federal
National
Mortgage
Association
(FNMA)
Adjustable
Rate
0.0%
†
FNMA,
5.391%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
12/01/34
..
United
States
45,753
45,504
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
6.1%
FNMA,
15
Year,
2.5%,
7/01/27
...........................
United
States
53,355
50,923
FNMA,
20
Year,
4.5%,
3/01/28
...........................
United
States
16,366
15,561
FNMA,
20
Year,
5%,
1/01/26
-
6/01/31
......................
United
States
125,208
119,683
FNMA,
30
Year,
3%,
9/01/48
-
9/01/51
......................
United
States
16,332,268
13,277,235
FNMA,
30
Year,
4%,
2/01/49
.............................
United
States
8,279,931
7,349,778
FNMA,
30
Year,
4.5%,
2/01/41
...........................
United
States
122,772
113,425
FNMA,
30
Year,
5%,
10/01/35
............................
United
States
277,196
268,909
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
(continued)
FNMA,
30
Year,
5.5%,
9/01/33
-
12/01/35
...................
United
States
417,444
$
409,467
FNMA,
30
Year,
6%,
6/01/34
-
5/01/38
......................
United
States
751,791
745,677
FNMA,
30
Year,
6%,
8/01/53
.............................
United
States
27,166,894
26,475,319
FNMA,
30
Year,
6.5%,
3/01/28
-
10/01/37
...................
United
States
119,059
121,004
FNMA,
30
Year,
7.5%,
10/01/29
...........................
United
States
2,110
2,155
FNMA,
30
Year,
8%,
1/01/25
-
5/01/26
......................
United
States
381
381
r
FNMA,
Single-family,
30
Year,
5.5%,
11/25/53
................
United
States
85,360,000
80,965,294
r
FNMA,
Single-family,
30
Year,
6%,
11/25/53
.................
United
States
28,920,000
28,142,423
158,057,234
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
0.0%
†
GNMA
I,
30
Year,
8%,
2/15/25
............................
United
States
3
3
GNMA
I,
Single-family,
30
Year,
5%,
6/15/34
-
7/15/34
..........
United
States
38,552
37,027
GNMA
I,
Single-family,
30
Year,
5.5%,
2/15/33
-
6/15/36
........
United
States
162,775
159,446
GNMA
I,
Single-family,
30
Year,
6%,
8/15/36
.................
United
States
10,235
10,337
GNMA
I,
Single-family,
30
Year,
6.5%,
2/15/29
-
3/15/32
........
United
States
2,637
2,659
GNMA
I,
Single-family,
30
Year,
7%,
5/15/28
.................
United
States
33
33
GNMA
I,
Single-family,
30
Year,
7.5%,
1/15/26
-
5/15/27
........
United
States
214
213
GNMA
I,
Single-family,
30
Year,
8%,
7/15/26
-
9/15/27
..........
United
States
1,240
1,240
GNMA
I,
Single-family,
30
Year,
8.5%,
8/15/24
................
United
States
8
8
GNMA
I,
Single-family,
30
Year,
9.5%,
6/15/25
................
United
States
114
113
GNMA
II,
Single-family,
30
Year,
5%,
9/20/33
-
11/20/33
.........
United
States
74,807
72,197
GNMA
II,
Single-family,
30
Year,
5.5%,
6/20/34
...............
United
States
39,631
39,311
GNMA
II,
Single-family,
30
Year,
6%,
11/20/34
................
United
States
41,810
42,651
GNMA
II,
Single-family,
30
Year,
6.5%,
7/20/28
-
12/20/31
.......
United
States
24,581
24,943
GNMA
II,
Single-family,
30
Year,
7.5%,
4/20/32
...............
United
States
6,982
7,044
397,225
Total
Mortgage-Backed
Securities
(Cost
$315,046,758)
...........................
296,227,832
Residential
Mortgage-Backed
Securities
3.1%
Financial
Services
3.1%
h
BRAVO
Residential
Funding
Trust
,
2019-1,
A1C,
144A,
3.5%,
3/25/58
.......................
United
States
829,458
812,250
p
2019-2,
A3,
144A,
FRN,
3.5%,
10/25/44
...................
United
States
3,161,133
2,948,159
h,p
CIM
Trust
,
2019-INV1,
A1,
144A,
FRN,
4%,
2/25/49
..................
United
States
783,827
706,986
2019-INV2,
A3,
144A,
FRN,
4%,
5/25/49
..................
United
States
1,643,898
1,475,573
h,p
COLT
Mortgage
Loan
Trust
,
2022-4
,
A1
,
144A,
FRN
,
4.301
%
,
3/25/67
...........................................
United
States
3,583,208
3,320,836
o
FHLMC
STACR
Debt
Notes
,
2014-DN3,
M3,
FRN,
9.435%,
(30-day
SOFR
Average
+
4.114%),
8/25/24
...........................................
United
States
172,959
173,381
2014-DN4,
M3,
FRN,
9.985%,
(30-day
SOFR
Average
+
4.664%),
10/25/24
..........................................
United
States
1,674,394
1,687,070
2015-DNA1,
M3,
FRN,
8.735%,
(30-day
SOFR
Average
+
3.414%),
10/25/27
...................................
United
States
250,280
252,453
2016-DNA2,
M3,
FRN,
10.085%,
(30-day
SOFR
Average
+
4.764%),
10/25/28
...................................
United
States
5,371,903
5,643,037
o
FNMA
Connecticut
Avenue
Securities
,
2014-C01,
M2,
FRN,
9.835%,
(30-day
SOFR
Average
+
4.514%),
1/25/24
...........................................
United
States
4,844,936
4,881,629
2014-C03,
2M2,
FRN,
8.335%,
(30-day
SOFR
Average
+
3.014%),
7/25/24
...........................................
United
States
509,054
513,607
2015-C01,
1M2,
FRN,
9.735%,
(30-day
SOFR
Average
+
4.414%),
2/25/25
...........................................
United
States
1,143,446
1,177,800
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Residential
Mortgage-Backed
Securities
(continued)
Financial
Services
(continued)
o
FNMA
Connecticut
Avenue
Securities,
(continued)
2015-C02,
1M2,
FRN,
9.435%,
(30-day
SOFR
Average
+
4.114%),
5/25/25
...........................................
United
States
4,388,551
$
4,535,546
2015-C03,
1M2,
FRN,
10.435%,
(30-day
SOFR
Average
+
5.114%),
7/25/25
....................................
United
States
5,184,081
5,449,647
2016-C01,
1M2,
FRN,
12.185%,
(30-day
SOFR
Average
+
6.864%),
8/25/28
....................................
United
States
840,745
896,283
2017-C04,
2M2,
FRN,
8.285%,
(30-day
SOFR
Average
+
2.964%),
11/25/29
..........................................
United
States
3,975,550
4,079,917
h,p
J.P.
Morgan
Mortgage
Trust
,
2021-13,
A4,
144A,
FRN,
2.5%,
4/25/52
...................
United
States
12,199,036
10,102,762
2021-15,
A4,
144A,
FRN,
2.5%,
6/25/52
...................
United
States
3,947,783
3,240,576
h,p
Mill
City
Mortgage
Loan
Trust
,
2018-4
,
A1B
,
144A,
FRN
,
3.5
%
,
4/25/66
...........................................
United
States
6,294,343
5,995,038
h,p
OBX
Trust
,
2021-J3
,
A4
,
144A,
FRN
,
2.5
%
,
10/25/51
...........
United
States
2,577,806
2,127,181
h,p
Provident
Funding
Associates
LLP
,
2021-J1
,
A3
,
144A,
FRN
,
2.5
%
,
2/20/49
...........................................
United
States
8,283,697
6,808,967
h,p
Provident
Funding
Mortgage
Trust
,
2019-1
,
A2
,
144A,
FRN
,
3
%
,
12/25/49
..........................................
United
States
1,511,254
1,198,748
h,p
PSMC
Trust
,
2021-3
,
A3
,
144A,
FRN
,
2.5
%
,
8/25/51
...........
United
States
14,538,510
12,198,051
80,225,497
a
a
a
a
a
a
Total
Residential
Mortgage-Backed
Securities
(Cost
$91,500,284)
.................
80,225,497
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,b
K2016470219
South
Africa
Ltd.,
Escrow
Account
..............
South
Africa
620,001
—
b
Mesquite
Energy,
Inc.,
Escrow
Account
.....................
United
States
6,000,000
435,000
Total
Escrows
and
Litigation
Trusts
(Cost
$5,707,489)
...........................
435,000
Total
Long
Term
Investments
(Cost
$2,868,808,269)
.............................
2,560,003,950
a
Short
Term
Investments
4.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
1.3%
d,s
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
....
United
States
33,988,351
33,988,351
Total
Money
Market
Funds
(Cost
$33,988,351)
..................................
33,988,351
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
Short
Term
Investments
(continued)
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Repurchase
Agreements
3.0%
t
Joint
Repurchase
Agreement,
5.215%,
11/01/23
(Maturity
Value
$77,890,942)
BNP
Paribas
Securities
Corp.
(Maturity
Value
$35,917,071)
Deutsche
Bank
Securities,
Inc.
(Maturity
Value
$17,550,387)
HSBC
Securities
(USA),
Inc.
(Maturity
Value
$24,423,484)
Collateralized
by
U.S.
Government
Agency
Securities,
1.8%
-
7.5%,
5/15/27
-
10/20/53;
U.S.
Government
Agency
Strips,
2/15/30
-
5/15/46;
U.S.
Treasury
Bonds,
6.13%
-
6.88%,
8/15/25
-
11/15/27;
and
U.S.
Treasury
Notes,
0.38%
-
4.75%,
11/30/23
-
8/31/28
(valued
at
$79,520,122)
...............................
77,879,659
$
77,879,659
Total
Repurchase
Agreements
(Cost
$77,879,659)
...............................
77,879,659
Total
Short
Term
Investments
(Cost
$111,868,010
)
...............................
111,868,010
a
Total
Investments
(Cost
$2,980,676,279)
102.8%
................................
$2,671,871,960
Other
Assets,
less
Liabilities
(2.8)%
...........................................
(72,032,798)
Net
Assets
100.0%
...........................................................
$2,599,839,162
a
a
a
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
8
regarding
restricted
securities.
d
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
See
Note
7
regarding
credit
risk
and
defaulted
securities.
g
Perpetual
security
with
no
stated
maturity
date.
h
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2023,
the
aggregate
value
of
these
securities
was
$989,818,262,
representing
38.1%
of
net
assets.
i
The
coupon
rate
shown
represents
the
rate
at
period
end.
j
A
portion
or
all
of
the
security
is
on
loan
at
October
31,
2023.
See
Note
1(f).
k
See
Note
1(i)
regarding
senior
floating
rate
interests.
l
See
Note
1(g)
regarding
Marketplace
Lending.
See
full
breakdown
of
marketplace
loans
holdings
in
the
table
at
the
end
of
this
schedule.
m
A
supranational
organization
is
an
entity
formed
by
two
or
more
central
governments
through
international
treaties.
n
Principal
amount
of
security
is
adjusted
for
inflation.
See
Note1(k).
o
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
p
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
q
Adjustable
Rate
Mortgage-Backed
Security
(ARM);
the
rate
shown
is
the
effective
rate
at
period
end.
ARM
rates
are
not
based
on
a
published
reference
rate
and
spread,
but
instead
pass-through
weighted
average
interest
income
inclusive
of
any
caps
or
floors,
if
applicable,
from
the
underlying
mortgage
loans
in
which
the
majority
of
mortgages
pay
interest
based
on
the
index
shown
at
their
designated
reset
dates
plus
a
spread,
less
the
applicable
servicing
and
guaranty
fee
(MBS
margin).
r
Security
purchased
on
a
to-be-announced
(TBA)
basis.
See
Note
1(d).
s
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
t
See
Note
1(c)
regarding
joint
repurchase
agreement.
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Strategic
Income
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
At
October
31,
2023,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(g).
Description
Principal
Amount
Value
Marketplace
Loans
-
1.7%
Block,
Inc.
5382984.SQ.FTS.B,
Zero
Cpn,
11/30/23
..
$
643
$
288
5393796.SQ.FTS.B,
Zero
Cpn,
11/30/23
..
717
82
5397535.SQ.FTS.B,
Zero
Cpn,
11/30/23
..
5,543
1,366
5408127.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
1,021
283
5409973.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
465
171
5411388.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
563
121
5412456.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
560
120
5412734.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
8,127
1,973
5413423.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
2,550
758
5415130.SQ.FTS.B,
Zero
Cpn,
12/01/23
..
886
228
5447961.SQ.FTS.B,
Zero
Cpn,
12/02/23
..
697
307
5452329.SQ.FTS.B,
Zero
Cpn,
12/02/23
..
216
74
5456242.SQ.FTS.B,
Zero
Cpn,
12/03/23
..
1,569
438
5463036.SQ.FTS.B,
Zero
Cpn,
12/03/23
..
485
135
5467355.SQ.FTS.B,
Zero
Cpn,
12/03/23
..
1,898
666
5471641.SQ.FTS.B,
Zero
Cpn,
12/03/23
..
313
120
5472733.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
1,804
937
5472760.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
3,648
1,201
5472809.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
346
224
5472855.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
360
96
5473041.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
962
362
5473353.SQ.FTS.B,
Zero
Cpn,
12/04/23
..
459
174
5475686.SQ.FTS.B,
Zero
Cpn,
12/06/23
..
2,736
606
5479438.SQ.FTS.B,
Zero
Cpn,
12/06/23
..
716
171
5480752.SQ.FTS.B,
Zero
Cpn,
12/06/23
..
3,098
713
5495504.SQ.FTS.B,
Zero
Cpn,
12/07/23
..
200
115
5505930.SQ.FTS.B,
Zero
Cpn,
12/07/23
..
1,048
190
5506828.SQ.FTS.B,
Zero
Cpn,
12/08/23
..
3,623
1,522
5507000.SQ.FTS.B,
Zero
Cpn,
12/08/23
..
38,614
9,386
5515187.SQ.FTS.B,
Zero
Cpn,
12/08/23
..
4,692
1,390
5516154.SQ.FTS.B,
Zero
Cpn,
12/08/23
..
12,489
2,865
5518310.SQ.FTS.B,
Zero
Cpn,
12/08/23
..
390
56
5531950.SQ.FTS.B,
Zero
Cpn,
12/09/23
..
1,445
832
5533995.SQ.FTS.B,
Zero
Cpn,
12/09/23
..
2,384
1,148
5534121.SQ.FTS.B,
Zero
Cpn,
12/09/23
..
5,159
992
5534560.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
147
75
5534689.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
19,176
4,843
5535547.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
4,404
1,072
5536969.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
61
28
5537728.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
2,668
521
5537817.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
798
72
5537953.SQ.FTS.B,
Zero
Cpn,
12/10/23
..
4,030
380
5539715.SQ.FTS.B,
Zero
Cpn,
12/11/23
..
239
109
5539822.SQ.FTS.B,
Zero
Cpn,
12/11/23
..
3,471
1,192
5539948.SQ.FTS.B,
Zero
Cpn,
12/11/23
..
1,314
359
5541044.SQ.FTS.B,
Zero
Cpn,
12/12/23
..
612
435
5541083.SQ.FTS.B,
Zero
Cpn,
12/12/23
..
114
37
5541094.SQ.FTS.B,
Zero
Cpn,
12/12/23
..
5,085
1,255
5542444.SQ.FTS.B,
Zero
Cpn,
12/13/23
..
604
286
5542667.SQ.FTS.B,
Zero
Cpn,
12/13/23
..
4,698
826
5546515.SQ.FTS.B,
Zero
Cpn,
12/13/23
..
2,064
681
5547946.SQ.FTS.B,
Zero
Cpn,
12/14/23
..
1,134
244
5547986.SQ.FTS.B,
Zero
Cpn,
12/14/23
..
1,881
881
5552344.SQ.FTS.B,
Zero
Cpn,
12/14/23
..
1,674
383
5554641.SQ.FTS.B,
Zero
Cpn,
12/15/23
..
62,255
15,943
5556129.SQ.FTS.B,
Zero
Cpn,
12/15/23
..
543
243
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5556696.SQ.FTS.B,
Zero
Cpn,
12/15/23
..
$
5,553
$
2,029
5562047.SQ.FTS.B,
Zero
Cpn,
12/16/23
..
3,095
512
5563038.SQ.FTS.B,
Zero
Cpn,
12/16/23
..
4,772
510
5564628.SQ.FTS.B,
Zero
Cpn,
12/17/23
..
6,717
3,074
5565862.SQ.FTS.B,
Zero
Cpn,
12/17/23
..
1,427
457
5565992.SQ.FTS.B,
Zero
Cpn,
12/17/23
..
3,924
779
5567586.SQ.FTS.B,
Zero
Cpn,
12/17/23
..
532
307
5567951.SQ.FTS.B,
Zero
Cpn,
12/18/23
..
2,065
1,277
5568506.SQ.FTS.B,
Zero
Cpn,
12/18/23
..
611
230
5568881.SQ.FTS.B,
Zero
Cpn,
12/19/23
..
1,314
286
5569070.SQ.FTS.B,
Zero
Cpn,
12/19/23
..
29,610
8,379
5572327.SQ.FTS.B,
Zero
Cpn,
12/20/23
..
243
84
5573406.SQ.FTS.B,
Zero
Cpn,
12/21/23
..
363
141
5574351.SQ.FTS.B,
Zero
Cpn,
12/21/23
..
10,696
3,928
5575886.SQ.FTS.B,
Zero
Cpn,
12/21/23
..
894
273
5576489.SQ.FTS.B,
Zero
Cpn,
12/22/23
..
7,365
934
5579302.SQ.FTS.B,
Zero
Cpn,
12/22/23
..
628
339
5581198.SQ.FTS.B,
Zero
Cpn,
12/23/23
..
320
225
5581252.SQ.FTS.B,
Zero
Cpn,
12/23/23
..
51
20
5583434.SQ.FTS.B,
Zero
Cpn,
12/23/23
..
1,094
551
5584166.SQ.FTS.B,
Zero
Cpn,
12/23/23
..
48
29
5585235.SQ.FTS.B,
Zero
Cpn,
12/24/23
..
2,198
633
5585522.SQ.FTS.B,
Zero
Cpn,
12/24/23
..
609
226
5585981.SQ.FTS.B,
Zero
Cpn,
12/24/23
..
1,947
773
5586899.SQ.FTS.B,
Zero
Cpn,
12/24/23
..
2,468
327
5587431.SQ.FTS.B,
Zero
Cpn,
12/24/23
..
1,047
182
5588173.SQ.FTS.B,
Zero
Cpn,
12/25/23
..
7,797
2,786
5588206.SQ.FTS.B,
Zero
Cpn,
12/25/23
..
4,049
1,775
5588243.SQ.FTS.B,
Zero
Cpn,
12/25/23
..
1,000
285
5588411.SQ.FTS.B,
Zero
Cpn,
12/25/23
..
69
43
5588462.SQ.FTS.B,
Zero
Cpn,
12/25/23
..
461
135
5588832.SQ.FTS.B,
Zero
Cpn,
12/26/23
..
7,140
2,334
5588959.SQ.FTS.B,
Zero
Cpn,
12/26/23
..
749
233
5589322.SQ.FTS.B,
Zero
Cpn,
12/26/23
..
4,040
1,136
5593219.SQ.FTS.B,
Zero
Cpn,
12/28/23
..
9,054
3,825
5594180.SQ.FTS.B,
Zero
Cpn,
12/28/23
..
732
177
5595540.SQ.FTS.B,
Zero
Cpn,
12/28/23
..
313
51
5595624.SQ.FTS.B,
Zero
Cpn,
12/28/23
..
789
74
5597497.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
2,429
596
5597681.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
2,999
1,031
5598844.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
856
583
5599728.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
4,867
1,621
5600496.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
892
383
5600526.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
1,008
94
5600632.SQ.FTS.B,
Zero
Cpn,
12/29/23
..
3,133
311
5611517.SQ.FTS.B,
Zero
Cpn,
12/30/23
..
2,019
1,091
5612313.SQ.FTS.B,
Zero
Cpn,
12/30/23
..
7,262
1,269
5612507.SQ.FTS.B,
Zero
Cpn,
12/30/23
..
11,600
3,664
5614938.SQ.FTS.B,
Zero
Cpn,
1/01/24
...
2,379
498
5616046.SQ.FTS.B,
Zero
Cpn,
1/01/24
...
1,625
168
5616216.SQ.FTS.B,
Zero
Cpn,
1/01/24
...
5,841
1,962
5618116.SQ.FTS.B,
Zero
Cpn,
1/02/24
...
8,099
2,443
5618863.SQ.FTS.B,
Zero
Cpn,
1/03/24
...
1,492
639
5619464.SQ.FTS.B,
Zero
Cpn,
1/04/24
...
646
161
5619821.SQ.FTS.B,
Zero
Cpn,
1/04/24
...
1,271
756
5619959.SQ.FTS.B,
Zero
Cpn,
1/04/24
...
2,374
1,143
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5620066.SQ.FTS.B,
Zero
Cpn,
1/04/24
...
$
2,868
$
703
5622024.SQ.FTS.B,
Zero
Cpn,
1/05/24
...
2,135
436
5622763.SQ.FTS.B,
Zero
Cpn,
1/05/24
...
424
96
5623363.SQ.FTS.B,
Zero
Cpn,
1/05/24
...
10,990
3,504
5624299.SQ.FTS.B,
Zero
Cpn,
1/05/24
...
6,091
1,374
5630151.SQ.FTS.B,
Zero
Cpn,
1/06/24
...
506
294
5641620.SQ.FTS.B,
Zero
Cpn,
1/07/24
...
540
161
5647775.SQ.FTS.B,
Zero
Cpn,
1/07/24
...
1,305
172
5650606.SQ.FTS.B,
Zero
Cpn,
1/08/24
...
638
405
5652373.SQ.FTS.B,
Zero
Cpn,
1/08/24
...
864
429
5654133.SQ.FTS.B,
Zero
Cpn,
1/08/24
...
32,774
8,714
5655586.SQ.FTS.B,
Zero
Cpn,
1/09/24
...
880
504
5655643.SQ.FTS.B,
Zero
Cpn,
1/09/24
...
4,363
417
5655850.SQ.FTS.B,
Zero
Cpn,
1/09/24
...
1,359
732
5656207.SQ.FTS.B,
Zero
Cpn,
1/09/24
...
8,733
2,351
5662691.SQ.FTS.B,
Zero
Cpn,
1/11/24
...
731
543
5663245.SQ.FTS.B,
Zero
Cpn,
1/11/24
...
500
187
5663983.SQ.FTS.B,
Zero
Cpn,
1/11/24
...
461
172
5666806.SQ.FTS.B,
Zero
Cpn,
1/12/24
...
13,430
4,447
5670327.SQ.FTS.B,
Zero
Cpn,
1/12/24
...
3,730
2,077
5671581.SQ.FTS.B,
Zero
Cpn,
1/12/24
...
18,583
6,310
5672476.SQ.FTS.B,
Zero
Cpn,
1/12/24
...
260
228
5672653.SQ.FTS.B,
Zero
Cpn,
1/13/24
...
6,454
2,232
5673210.SQ.FTS.B,
Zero
Cpn,
1/13/24
...
2,838
522
5675130.SQ.FTS.B,
Zero
Cpn,
1/13/24
...
490
259
5678440.SQ.FTS.B,
Zero
Cpn,
1/13/24
...
701
386
5689248.SQ.FTS.B,
Zero
Cpn,
1/14/24
...
1,934
473
5694816.SQ.FTS.B,
Zero
Cpn,
1/14/24
...
1,074
122
5694969.SQ.FTS.B,
Zero
Cpn,
1/14/24
...
1,214
685
5695450.SQ.FTS.B,
Zero
Cpn,
1/14/24
...
26,349
6,655
5696963.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
8,836
1,463
5697818.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
3,156
1,874
5698927.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
846
334
5700306.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
461
190
5700432.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
929
189
5700842.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
736
450
5701882.SQ.FTS.B,
Zero
Cpn,
1/15/24
...
1,798
999
5702466.SQ.FTS.B,
Zero
Cpn,
1/16/24
...
188
45
5702515.SQ.FTS.B,
Zero
Cpn,
1/16/24
...
821
318
5703401.SQ.FTS.B,
Zero
Cpn,
1/17/24
...
1,653
336
5703531.SQ.FTS.B,
Zero
Cpn,
1/17/24
...
924
641
5703743.SQ.FTS.B,
Zero
Cpn,
1/17/24
...
1,391
381
5706022.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
243
186
5706985.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
1,465
546
5708263.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
80
31
5708392.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
9,171
2,127
5708905.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
613
89
5709449.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
2,174
579
5709549.SQ.FTS.B,
Zero
Cpn,
1/18/24
...
12,160
1,179
5715529.SQ.FTS.B,
Zero
Cpn,
1/19/24
...
133
126
5719509.SQ.FTS.B,
Zero
Cpn,
1/20/24
...
947
581
5719940.SQ.FTS.B,
Zero
Cpn,
1/20/24
...
301
152
5721102.SQ.FTS.B,
Zero
Cpn,
1/20/24
...
1,302
214
5721582.SQ.FTS.B,
Zero
Cpn,
1/20/24
...
1,131
355
5728577.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
4,482
1,329
5728944.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
4,810
1,817
5729373.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
667
376
5729395.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
7,472
5,834
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5730277.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
$
878
$
246
5730943.SQ.FTS.B,
Zero
Cpn,
1/21/24
...
398
281
5731303.SQ.FTS.B,
Zero
Cpn,
1/22/24
...
1,418
424
5732624.SQ.FTS.B,
Zero
Cpn,
1/22/24
...
11,619
1,259
5732684.SQ.FTS.B,
Zero
Cpn,
1/22/24
...
921
679
5732996.SQ.FTS.B,
Zero
Cpn,
1/22/24
...
76
48
5735367.SQ.FTS.B,
Zero
Cpn,
1/24/24
...
701
121
5735573.SQ.FTS.B,
Zero
Cpn,
1/24/24
...
5,816
1,622
5735989.SQ.FTS.B,
Zero
Cpn,
1/24/24
...
2,793
1,169
5737632.SQ.FTS.B,
Zero
Cpn,
1/25/24
...
5,796
806
5741303.SQ.FTS.B,
Zero
Cpn,
1/26/24
...
2,294
861
5741694.SQ.FTS.B,
Zero
Cpn,
1/26/24
...
2,425
1,082
5742838.SQ.FTS.B,
Zero
Cpn,
1/26/24
...
688
147
5743589.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
133
103
5744005.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
1,085
672
5744990.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
2,888
781
5745113.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
1,128
633
5745135.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
6,583
1,790
5745280.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
1,853
571
5745765.SQ.FTS.B,
Zero
Cpn,
1/27/24
...
126
41
5751520.SQ.FTS.B,
Zero
Cpn,
1/28/24
...
2,991
268
5752156.SQ.FTS.B,
Zero
Cpn,
1/28/24
...
968
103
5754310.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
1,070
316
5754783.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
2,398
749
5755417.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
1,093
705
5755879.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
4,977
1,801
5756221.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
8,577
6,243
5756610.SQ.FTS.B,
Zero
Cpn,
1/29/24
...
4,556
1,547
5756833.SQ.FTS.B,
Zero
Cpn,
1/30/24
...
1,949
794
5757071.SQ.FTS.B,
Zero
Cpn,
1/30/24
...
1,078
430
5757607.SQ.FTS.B,
Zero
Cpn,
1/31/24
...
9,346
871
5758291.SQ.FTS.B,
Zero
Cpn,
2/01/24
...
5,772
1,060
5758638.SQ.FTS.B,
Zero
Cpn,
2/01/24
...
1,266
1,033
5759456.SQ.FTS.B,
Zero
Cpn,
2/01/24
...
881
629
5760954.SQ.FTS.B,
Zero
Cpn,
2/01/24
...
2,824
708
5763172.SQ.FTS.B,
Zero
Cpn,
2/02/24
...
4,879
1,119
5763445.SQ.FTS.B,
Zero
Cpn,
2/02/24
...
1,520
1,345
5763642.SQ.FTS.B,
Zero
Cpn,
2/02/24
...
375
148
5764817.SQ.FTS.B,
Zero
Cpn,
2/02/24
...
888
290
5765966.SQ.FTS.B,
Zero
Cpn,
2/02/24
...
839
646
5767311.SQ.FTS.B,
Zero
Cpn,
2/03/24
...
38
31
5767488.SQ.FTS.B,
Zero
Cpn,
2/03/24
...
1,233
409
5771803.SQ.FTS.B,
Zero
Cpn,
2/04/24
...
630
218
5773116.SQ.FTS.B,
Zero
Cpn,
2/04/24
...
3,729
628
5777772.SQ.FTS.B,
Zero
Cpn,
2/05/24
...
8,178
1,946
5778008.SQ.FTS.B,
Zero
Cpn,
2/05/24
...
4,729
2,704
5780501.SQ.FTS.B,
Zero
Cpn,
2/07/24
...
3,455
2,754
5781142.SQ.FTS.B,
Zero
Cpn,
2/08/24
...
5,022
1,867
5781951.SQ.FTS.B,
Zero
Cpn,
2/08/24
...
4,019
1,227
5784874.SQ.FTS.B,
Zero
Cpn,
2/09/24
...
3,818
451
5791689.SQ.FTS.B,
Zero
Cpn,
2/10/24
...
907
558
5792518.SQ.FTS.B,
Zero
Cpn,
2/10/24
...
16,456
1,582
5802478.SQ.FTS.B,
Zero
Cpn,
2/11/24
...
7,637
2,057
5805008.SQ.FTS.B,
Zero
Cpn,
2/11/24
...
736
607
5806252.SQ.FTS.B,
Zero
Cpn,
2/11/24
...
2,632
1,115
5809201.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
718
228
5810852.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
3,700
1,123
5812068.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
3,774
2,845
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5812645.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
$
21,862
$
4,023
5813184.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
1,676
452
5813253.SQ.FTS.B,
Zero
Cpn,
2/12/24
...
7,311
2,018
5813462.SQ.FTS.B,
Zero
Cpn,
2/13/24
...
1,731
637
5814016.SQ.FTS.B,
Zero
Cpn,
2/13/24
...
2,868
1,238
5814576.SQ.FTS.B,
Zero
Cpn,
2/14/24
...
2,223
859
5815447.SQ.FTS.B,
Zero
Cpn,
2/15/24
...
7,061
1,183
5815722.SQ.FTS.B,
Zero
Cpn,
2/15/24
...
1,067
854
5816945.SQ.FTS.B,
Zero
Cpn,
2/15/24
...
4,714
2,839
5817070.SQ.FTS.B,
Zero
Cpn,
2/15/24
...
30,140
6,919
5817474.SQ.FTS.B,
Zero
Cpn,
2/15/24
...
279
185
5819322.SQ.FTS.B,
Zero
Cpn,
2/16/24
...
230
121
5819453.SQ.FTS.B,
Zero
Cpn,
2/16/24
...
781
656
5821163.SQ.FTS.B,
Zero
Cpn,
2/16/24
...
1,566
1,428
5823030.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
1,018
438
5823283.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
18
13
5823345.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
1,884
367
5823515.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
524
421
5824742.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
3,324
662
5825002.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
35,998
6,818
5825354.SQ.FTS.B,
Zero
Cpn,
2/17/24
...
4,925
926
5827842.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
7,668
1,248
5828926.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
17,907
5,172
5829638.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
1,354
749
5830080.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
1,236
445
5830440.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
2,577
697
5830672.SQ.FTS.B,
Zero
Cpn,
2/18/24
...
5,317
2,937
5831192.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
1,347
519
5831833.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
1,898
1,315
5832209.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
26,211
5,377
5832576.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
229
93
5832609.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
2,194
736
5834028.SQ.FTS.B,
Zero
Cpn,
2/19/24
...
618
240
5834294.SQ.FTS.B,
Zero
Cpn,
2/20/24
...
670
470
5834318.SQ.FTS.B,
Zero
Cpn,
2/20/24
...
8,185
2,211
5834411.SQ.FTS.B,
Zero
Cpn,
2/20/24
...
1,579
1,192
5834476.SQ.FTS.B,
Zero
Cpn,
2/20/24
...
89
76
5835079.SQ.FTS.B,
Zero
Cpn,
2/20/24
...
683
92
5836920.SQ.FTS.B,
Zero
Cpn,
2/22/24
...
722
612
5837211.SQ.FTS.B,
Zero
Cpn,
2/22/24
...
2,901
974
5837252.SQ.FTS.B,
Zero
Cpn,
2/22/24
...
1,427
233
5837315.SQ.FTS.B,
Zero
Cpn,
2/22/24
...
4,547
509
5839815.SQ.FTS.B,
Zero
Cpn,
2/23/24
...
615
173
5840394.SQ.FTS.B,
Zero
Cpn,
2/23/24
...
7,735
1,769
5840821.SQ.FTS.B,
Zero
Cpn,
2/23/24
...
3,351
1,174
5842093.SQ.FTS.B,
Zero
Cpn,
2/23/24
...
1,367
463
5842110.SQ.FTS.B,
Zero
Cpn,
2/23/24
...
719
142
5844459.SQ.FTS.B,
Zero
Cpn,
2/24/24
...
845
355
5844650.SQ.FTS.B,
Zero
Cpn,
2/24/24
...
418
299
5846033.SQ.FTS.B,
Zero
Cpn,
2/24/24
...
356
321
5848551.SQ.FTS.B,
Zero
Cpn,
2/25/24
...
2,782
2,581
5850831.SQ.FTS.B,
Zero
Cpn,
2/25/24
...
5,627
4,456
5851647.SQ.FTS.B,
Zero
Cpn,
2/25/24
...
1,396
538
5852027.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
2,366
387
5852610.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
836
179
5852840.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
1,961
1,460
5853740.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
2,104
340
5853859.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
32,333
13,454
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5854288.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
$
1,244
$
620
5854311.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
3,696
2,037
5854386.SQ.FTS.B,
Zero
Cpn,
2/26/24
...
9,627
2,628
5855240.SQ.FTS.B,
Zero
Cpn,
2/27/24
...
6,098
2,712
5855858.SQ.FTS.B,
Zero
Cpn,
2/28/24
...
1,285
408
5855911.SQ.FTS.B,
Zero
Cpn,
2/28/24
...
2,925
742
5856353.SQ.FTS.B,
Zero
Cpn,
2/28/24
...
1,425
633
5856382.SQ.FTS.B,
Zero
Cpn,
2/28/24
...
7,786
3,893
5856562.SQ.FTS.B,
Zero
Cpn,
2/28/24
...
435
93
5856586.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
3,914
726
5856978.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
3,045
1,478
5857039.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
219
193
5860847.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
68
66
5861125.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
619
98
5861134.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
14,061
9,038
5861986.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
165
157
5862485.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
620
556
5862630.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
5,065
1,539
5862693.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
2,255
1,254
5866310.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
5,443
4,477
5866568.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
2,638
803
5866864.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
2,965
911
5866944.SQ.FTS.B,
Zero
Cpn,
2/29/24
...
13,730
5,909
5872378.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
48
40
5872494.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
9,406
4,081
5872625.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
930
513
5873138.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
1,581
953
5873189.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
1,082
476
5873613.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
3,249
2,436
5873819.SQ.FTS.B,
Zero
Cpn,
3/01/24
...
1,232
419
5874329.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
938
187
5874482.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
657
78
5874516.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
1,179
694
5876036.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
821
677
5877063.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
700
301
5877065.SQ.FTS.B,
Zero
Cpn,
3/02/24
...
102
85
5877776.SQ.FTS.B,
Zero
Cpn,
3/03/24
...
761
147
5878297.SQ.FTS.B,
Zero
Cpn,
3/04/24
...
1,683
499
5878846.SQ.FTS.B,
Zero
Cpn,
3/05/24
...
840
335
5879122.SQ.FTS.B,
Zero
Cpn,
3/05/24
...
172
34
5882869.SQ.FTS.B,
Zero
Cpn,
3/06/24
...
470
414
5882889.SQ.FTS.B,
Zero
Cpn,
3/06/24
...
1,125
833
5883334.SQ.FTS.B,
Zero
Cpn,
3/07/24
...
1,109
303
5883938.SQ.FTS.B,
Zero
Cpn,
3/07/24
...
16
14
5884190.SQ.FTS.B,
Zero
Cpn,
3/07/24
...
7,005
4,714
5884477.SQ.FTS.B,
Zero
Cpn,
3/07/24
...
1,186
253
5885192.SQ.FTS.B,
Zero
Cpn,
3/07/24
...
2,394
398
5888881.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
1,157
428
5889080.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
771
419
5889273.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
5,367
4,491
5889436.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
18,451
4,309
5889597.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
1,235
439
5889750.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
281
245
5889875.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
311
144
5889963.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
580
392
5889976.SQ.FTS.B,
Zero
Cpn,
3/08/24
...
3,245
1,485
5891419.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
5,396
4,848
5892624.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
2,261
1,017
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5893541.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
$
4,112
$
578
5893549.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
1,026
579
5893657.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
1,499
1,109
5893815.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
1,195
113
5893929.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
788
153
5894091.SQ.FTS.B,
Zero
Cpn,
3/09/24
...
2,167
442
5894734.SQ.FTS.B,
Zero
Cpn,
3/10/24
...
741
647
5895353.SQ.FTS.B,
Zero
Cpn,
3/11/24
...
1,715
1,418
5896558.SQ.FTS.B,
Zero
Cpn,
3/12/24
...
830
673
5898320.SQ.FTS.B,
Zero
Cpn,
3/12/24
...
8,262
2,487
5898446.SQ.FTS.B,
Zero
Cpn,
3/12/24
...
1,206
1,160
5898769.SQ.FTS.B,
Zero
Cpn,
3/12/24
...
11,837
6,478
5900093.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
1,426
768
5900390.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
13,495
7,224
5900600.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
7,701
1,951
5900918.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
358
325
5900989.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
5,386
1,404
5901345.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
4,609
1,091
5902210.SQ.FTS.B,
Zero
Cpn,
3/13/24
...
191
167
5903364.SQ.FTS.B,
Zero
Cpn,
3/14/24
...
2,592
2,097
5903864.SQ.FTS.B,
Zero
Cpn,
3/14/24
...
2,296
230
5910869.SQ.FTS.B,
Zero
Cpn,
3/16/24
...
3,647
2,222
5911495.SQ.FTS.B,
Zero
Cpn,
3/16/24
...
40,359
21,593
5911917.SQ.FTS.B,
Zero
Cpn,
3/16/24
...
1,188
1,064
5913989.SQ.FTS.B,
Zero
Cpn,
3/17/24
...
1,527
866
5914290.SQ.FTS.B,
Zero
Cpn,
3/18/24
...
1,791
1,308
5914387.SQ.FTS.B,
Zero
Cpn,
3/18/24
...
541
277
5914396.SQ.FTS.B,
Zero
Cpn,
3/18/24
...
1,467
287
5914535.SQ.FTS.B,
Zero
Cpn,
3/18/24
...
1,748
1,439
5915505.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
16,318
5,119
5917148.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
2,770
2,005
5917707.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
3,061
1,295
5918081.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
1,932
452
5918143.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
832
744
5918534.SQ.FTS.B,
Zero
Cpn,
3/19/24
...
10,868
3,947
5918756.SQ.FTS.B,
Zero
Cpn,
3/20/24
...
1,621
1,206
5920829.SQ.FTS.B,
Zero
Cpn,
3/20/24
...
940
446
5921285.SQ.FTS.B,
Zero
Cpn,
3/20/24
...
2,698
2,247
5921918.SQ.FTS.B,
Zero
Cpn,
3/20/24
...
11,547
6,007
5923022.SQ.FTS.B,
Zero
Cpn,
3/21/24
...
1,435
678
5924262.SQ.FTS.B,
Zero
Cpn,
3/21/24
...
570
293
5924327.SQ.FTS.B,
Zero
Cpn,
3/21/24
...
211
183
5928081.SQ.FTS.B,
Zero
Cpn,
3/22/24
...
6,626
4,617
5928628.SQ.FTS.B,
Zero
Cpn,
3/22/24
...
1,271
246
5930281.SQ.FTS.B,
Zero
Cpn,
3/22/24
...
1,556
1,110
5930851.SQ.FTS.B,
Zero
Cpn,
3/23/24
...
5,986
2,928
5932601.SQ.FTS.B,
Zero
Cpn,
3/23/24
...
245
215
5932633.SQ.FTS.B,
Zero
Cpn,
3/23/24
...
693
239
5933493.SQ.FTS.B,
Zero
Cpn,
3/23/24
...
339
279
5933972.SQ.FTS.B,
Zero
Cpn,
3/24/24
...
1,835
1,698
5934044.SQ.FTS.B,
Zero
Cpn,
3/24/24
...
1,142
732
5934059.SQ.FTS.B,
Zero
Cpn,
3/24/24
...
1,242
133
5934219.SQ.FTS.B,
Zero
Cpn,
3/24/24
...
22,379
10,595
5934701.SQ.FTS.B,
Zero
Cpn,
3/25/24
...
1,129
283
5934730.SQ.FTS.B,
Zero
Cpn,
3/25/24
...
2,564
252
5934944.SQ.FTS.B,
Zero
Cpn,
3/25/24
...
3,585
2,734
5936902.SQ.FTS.B,
Zero
Cpn,
3/26/24
...
179
130
5936923.SQ.FTS.B,
Zero
Cpn,
3/26/24
...
9,927
1,129
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5937124.SQ.FTS.B,
Zero
Cpn,
3/26/24
...
$
181
$
18
5938584.SQ.FTS.B,
Zero
Cpn,
3/26/24
...
6,806
2,397
5938667.SQ.FTS.B,
Zero
Cpn,
3/26/24
...
5,671
2,252
5940667.SQ.FTS.B,
Zero
Cpn,
3/27/24
...
566
56
5940805.SQ.FTS.B,
Zero
Cpn,
3/27/24
...
45
42
5940809.SQ.FTS.B,
Zero
Cpn,
3/27/24
...
918
214
5941367.SQ.FTS.B,
Zero
Cpn,
3/27/24
...
4,768
3,229
5943004.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
158
129
5943067.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
238
152
5943947.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
2,354
437
5944020.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
2,518
1,309
5944130.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
1,812
1,321
5945082.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
3,001
1,097
5945214.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
656
473
5945226.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
398
380
5945299.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
12,821
8,970
5945528.SQ.FTS.B,
Zero
Cpn,
3/28/24
...
61
55
5950244.SQ.FTS.B,
Zero
Cpn,
3/29/24
...
14,688
7,821
5950686.SQ.FTS.B,
Zero
Cpn,
3/29/24
...
810
311
5950688.SQ.FTS.B,
Zero
Cpn,
3/29/24
...
7,225
3,052
5952964.SQ.FTS.B,
Zero
Cpn,
3/30/24
...
2,629
1,835
5953097.SQ.FTS.B,
Zero
Cpn,
3/30/24
...
922
285
5954440.SQ.FTS.B,
Zero
Cpn,
3/30/24
...
7,514
2,608
5954764.SQ.FTS.B,
Zero
Cpn,
3/30/24
...
415
397
5956268.SQ.FTS.B,
Zero
Cpn,
4/02/24
...
609
215
5956601.SQ.FTS.B,
Zero
Cpn,
4/02/24
...
929
523
5956650.SQ.FTS.B,
Zero
Cpn,
4/02/24
...
619
264
5956888.SQ.FTS.B,
Zero
Cpn,
4/02/24
...
2,980
1,039
5957515.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
448
371
5959009.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
356
210
5959036.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
649
566
5959931.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
1,644
590
5959978.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
2,403
894
5960434.SQ.FTS.B,
Zero
Cpn,
4/03/24
...
375
156
5962366.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
820
609
5962409.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
577
435
5963691.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
239
223
5963750.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
238
185
5963754.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
1,018
887
5963929.SQ.FTS.B,
Zero
Cpn,
4/04/24
...
252
123
5964109.SQ.FTS.B,
Zero
Cpn,
4/05/24
...
5,953
2,501
5964730.SQ.FTS.B,
Zero
Cpn,
4/05/24
...
844
705
5966156.SQ.FTS.B,
Zero
Cpn,
4/05/24
...
4,422
1,027
5975969.SQ.FTS.B,
Zero
Cpn,
4/07/24
...
3,787
892
5977024.SQ.FTS.B,
Zero
Cpn,
4/07/24
...
1,750
579
5977392.SQ.FTS.B,
Zero
Cpn,
4/07/24
...
462
391
5978631.SQ.FTS.B,
Zero
Cpn,
4/08/24
...
138
121
5979619.SQ.FTS.B,
Zero
Cpn,
4/10/24
...
3,763
2,156
5980129.SQ.FTS.B,
Zero
Cpn,
4/10/24
...
695
436
5980216.SQ.FTS.B,
Zero
Cpn,
4/10/24
...
448
243
5981924.SQ.FTS.B,
Zero
Cpn,
4/11/24
...
19,322
5,393
5983705.SQ.FTS.B,
Zero
Cpn,
4/11/24
...
4,402
1,305
5983869.SQ.FTS.B,
Zero
Cpn,
4/11/24
...
4,671
2,024
5986027.SQ.FTS.B,
Zero
Cpn,
4/12/24
...
3,601
590
5989444.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
252
234
5989473.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
638
492
5990599.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
964
902
5990989.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
77
71
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5990992.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
$
1,345
$
1,272
5991404.SQ.FTS.B,
Zero
Cpn,
4/13/24
...
10,473
8,070
5993795.SQ.FTS.B,
Zero
Cpn,
4/14/24
...
1,024
433
5994965.SQ.FTS.B,
Zero
Cpn,
4/14/24
...
2,502
2,249
5995769.SQ.FTS.B,
Zero
Cpn,
4/14/24
...
4,698
1,226
5995853.SQ.FTS.B,
Zero
Cpn,
4/14/24
...
7,553
1,400
5996582.SQ.FTS.B,
Zero
Cpn,
4/15/24
...
330
160
5996999.SQ.FTS.B,
Zero
Cpn,
4/15/24
...
1,281
900
6000218.SQ.FTS.B,
Zero
Cpn,
4/17/24
...
180
167
6000328.SQ.FTS.B,
Zero
Cpn,
4/17/24
...
2,618
497
6001519.SQ.FTS.B,
Zero
Cpn,
4/18/24
...
1,792
1,341
6001714.SQ.FTS.B,
Zero
Cpn,
4/18/24
...
258
253
6001985.SQ.FTS.B,
Zero
Cpn,
4/18/24
...
571
327
6003390.SQ.FTS.B,
Zero
Cpn,
4/18/24
...
5,166
4,723
6010572.SQ.FTS.B,
Zero
Cpn,
4/20/24
...
6,145
1,462
6010664.SQ.FTS.B,
Zero
Cpn,
4/20/24
...
1,420
1,255
6010705.SQ.FTS.B,
Zero
Cpn,
4/20/24
...
4,090
1,216
6010780.SQ.FTS.B,
Zero
Cpn,
4/20/24
...
3,444
716
6011639.SQ.FTS.B,
Zero
Cpn,
4/20/24
...
2,576
1,433
6012819.SQ.FTS.B,
Zero
Cpn,
4/21/24
...
818
476
6012841.SQ.FTS.B,
Zero
Cpn,
4/21/24
...
4,405
2,182
6014633.SQ.FTS.B,
Zero
Cpn,
4/21/24
...
291
255
6015748.SQ.FTS.B,
Zero
Cpn,
4/21/24
...
3,151
314
6016109.SQ.FTS.B,
Zero
Cpn,
4/22/24
...
2,853
1,210
6021430.SQ.FTS.B,
Zero
Cpn,
4/25/24
...
12,625
3,060
6023977.SQ.FTS.B,
Zero
Cpn,
4/25/24
...
871
524
6024177.SQ.FTS.B,
Zero
Cpn,
4/25/24
...
721
680
6024354.SQ.FTS.B,
Zero
Cpn,
4/26/24
...
13,543
4,015
6026339.SQ.FTS.B,
Zero
Cpn,
4/26/24
...
31,398
13,996
6027029.SQ.FTS.B,
Zero
Cpn,
4/26/24
...
17,565
4,301
6032854.SQ.FTS.B,
Zero
Cpn,
4/27/24
...
9,988
4,433
6033284.SQ.FTS.B,
Zero
Cpn,
4/28/24
...
720
700
6035583.SQ.FTS.B,
Zero
Cpn,
4/28/24
...
1,718
1,138
6035742.SQ.FTS.B,
Zero
Cpn,
4/28/24
...
2,444
2,215
6037042.SQ.FTS.B,
Zero
Cpn,
4/29/24
...
195
175
6037378.SQ.FTS.B,
Zero
Cpn,
4/29/24
...
732
76
6038361.SQ.FTS.B,
Zero
Cpn,
4/30/24
...
2,968
1,169
6042494.SQ.FTS.B,
Zero
Cpn,
5/01/24
...
983
670
6043250.SQ.FTS.B,
Zero
Cpn,
5/01/24
...
1,114
280
6043309.SQ.FTS.B,
Zero
Cpn,
5/01/24
...
601
578
6043867.SQ.FTS.B,
Zero
Cpn,
5/01/24
...
2,758
2,518
6047375.SQ.FTS.B,
Zero
Cpn,
5/02/24
...
1,600
1,174
6047650.SQ.FTS.B,
Zero
Cpn,
5/02/24
...
1,358
1,131
6047908.SQ.FTS.B,
Zero
Cpn,
5/02/24
...
1,667
1,612
6048065.SQ.FTS.B,
Zero
Cpn,
5/02/24
...
13,469
11,267
6052148.SQ.FTS.B,
Zero
Cpn,
5/03/24
...
218
53
6052422.SQ.FTS.B,
Zero
Cpn,
5/03/24
...
2,584
2,195
6053603.SQ.FTS.B,
Zero
Cpn,
5/03/24
...
4,251
3,169
6057823.SQ.FTS.B,
Zero
Cpn,
5/04/24
...
17,849
5,997
6058385.SQ.FTS.B,
Zero
Cpn,
5/05/24
...
1,149
835
6058413.SQ.FTS.B,
Zero
Cpn,
5/05/24
...
5,385
2,698
6059272.SQ.FTS.B,
Zero
Cpn,
5/06/24
...
5,653
2,680
6060917.SQ.FTS.B,
Zero
Cpn,
5/07/24
...
1,567
1,369
6063087.SQ.FTS.B,
Zero
Cpn,
5/07/24
...
4,299
1,796
6063486.SQ.FTS.B,
Zero
Cpn,
5/07/24
...
233
127
6064155.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
1,703
856
6064190.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
540
320
6064260.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
1,662
1,651
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6064464.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
$
3,001
$
621
6066945.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
1,746
1,202
6066989.SQ.FTS.B,
Zero
Cpn,
5/08/24
...
662
501
6106878.SQ.FTS.B,
Zero
Cpn,
5/09/24
...
4,533
3,324
6107120.SQ.FTS.B,
Zero
Cpn,
5/09/24
...
410
397
6111911.SQ.FTS.B,
Zero
Cpn,
5/09/24
...
1,257
1,165
6120978.SQ.FTS.B,
Zero
Cpn,
5/10/24
...
836
414
6122243.SQ.FTS.B,
Zero
Cpn,
5/10/24
...
3,355
3,231
6122683.SQ.FTS.B,
Zero
Cpn,
5/10/24
...
9,407
997
6122851.SQ.FTS.B,
Zero
Cpn,
5/10/24
...
5,276
2,227
6123828.SQ.FTS.B,
Zero
Cpn,
5/10/24
...
15,343
8,108
6125411.SQ.FTS.B,
Zero
Cpn,
5/11/24
...
34,766
10,553
6126187.SQ.FTS.B,
Zero
Cpn,
5/12/24
...
837
754
6126292.SQ.FTS.B,
Zero
Cpn,
5/12/24
...
2,410
2,200
6126543.SQ.FTS.B,
Zero
Cpn,
5/12/24
...
768
282
6127024.SQ.FTS.B,
Zero
Cpn,
5/13/24
...
1,054
883
6127052.SQ.FTS.B,
Zero
Cpn,
5/13/24
...
2,897
595
6127148.SQ.FTS.B,
Zero
Cpn,
5/13/24
...
3,744
2,663
6127262.SQ.FTS.B,
Zero
Cpn,
5/13/24
...
617
579
6127392.SQ.FTS.B,
Zero
Cpn,
5/13/24
...
668
631
6133021.SQ.FTS.B,
Zero
Cpn,
5/15/24
...
534
492
6133138.SQ.FTS.B,
Zero
Cpn,
5/15/24
...
12,428
11,216
6134462.SQ.FTS.B,
Zero
Cpn,
5/15/24
...
7,190
5,757
6143084.SQ.FTS.B,
Zero
Cpn,
5/17/24
...
622
66
6143090.SQ.FTS.B,
Zero
Cpn,
5/17/24
...
659
617
6143325.SQ.FTS.B,
Zero
Cpn,
5/18/24
...
2,020
1,963
6145383.SQ.FTS.B,
Zero
Cpn,
5/18/24
...
25,311
5,748
6145899.SQ.FTS.B,
Zero
Cpn,
5/18/24
...
13,157
12,252
6147104.SQ.FTS.B,
Zero
Cpn,
5/19/24
...
9,070
4,247
6147485.SQ.FTS.B,
Zero
Cpn,
5/19/24
...
118
108
6147718.SQ.FTS.B,
Zero
Cpn,
5/20/24
...
3,362
1,224
6147775.SQ.FTS.B,
Zero
Cpn,
5/20/24
...
1,022
433
6147847.SQ.FTS.B,
Zero
Cpn,
5/20/24
...
1,449
1,381
6148142.SQ.FTS.B,
Zero
Cpn,
5/20/24
...
1,398
1,273
6149268.SQ.FTS.B,
Zero
Cpn,
5/21/24
...
3,411
1,109
6149657.SQ.FTS.B,
Zero
Cpn,
5/21/24
...
8,931
3,943
6150963.SQ.FTS.B,
Zero
Cpn,
5/21/24
...
14,178
4,975
6151673.SQ.FTS.B,
Zero
Cpn,
5/21/24
...
282
279
6151826.SQ.FTS.B,
Zero
Cpn,
5/21/24
...
474
390
6153029.SQ.FTS.B,
Zero
Cpn,
5/22/24
...
526
369
6153050.SQ.FTS.B,
Zero
Cpn,
5/22/24
...
2,313
2,221
6154074.SQ.FTS.B,
Zero
Cpn,
5/22/24
...
4,237
2,046
6154815.SQ.FTS.B,
Zero
Cpn,
5/22/24
...
5,231
5,039
6155652.SQ.FTS.B,
Zero
Cpn,
5/22/24
...
1,924
1,643
6157480.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
378
247
6159444.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
908
806
6159521.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
2,479
955
6159619.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
1,408
1,100
6160108.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
3,632
1,256
6160262.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
4,566
2,538
6160578.SQ.FTS.B,
Zero
Cpn,
5/23/24
...
3,002
2,488
6160821.SQ.FTS.B,
Zero
Cpn,
5/24/24
...
1,846
1,690
6161028.SQ.FTS.B,
Zero
Cpn,
5/24/24
...
694
493
6161261.SQ.FTS.B,
Zero
Cpn,
5/24/24
...
1,545
291
6162505.SQ.FTS.B,
Zero
Cpn,
5/25/24
...
3,884
398
6163373.SQ.FTS.B,
Zero
Cpn,
5/25/24
...
183
165
6163434.SQ.FTS.B,
Zero
Cpn,
5/25/24
...
2,338
1,813
6164819.SQ.FTS.B,
Zero
Cpn,
5/26/24
...
730
316
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6164840.SQ.FTS.B,
Zero
Cpn,
5/26/24
...
$
648
$
644
6164962.SQ.FTS.B,
Zero
Cpn,
5/26/24
...
3,150
704
6164985.SQ.FTS.B,
Zero
Cpn,
5/26/24
...
1,788
1,536
6165691.SQ.FTS.B,
Zero
Cpn,
5/27/24
...
901
652
6165709.SQ.FTS.B,
Zero
Cpn,
5/27/24
...
1,146
936
6166298.SQ.FTS.B,
Zero
Cpn,
5/28/24
...
965
717
6168721.SQ.FTS.B,
Zero
Cpn,
5/28/24
...
15,167
8,876
6169262.SQ.FTS.B,
Zero
Cpn,
5/28/24
...
1,046
976
6169516.SQ.FTS.B,
Zero
Cpn,
5/28/24
...
1,718
1,183
6169581.SQ.FTS.B,
Zero
Cpn,
5/28/24
...
251
241
6169660.SQ.FTS.B,
Zero
Cpn,
5/29/24
...
5,995
5,856
6173073.SQ.FTS.B,
Zero
Cpn,
5/29/24
...
3,253
1,586
6173109.SQ.FTS.B,
Zero
Cpn,
5/29/24
...
4,368
2,671
6173965.SQ.FTS.B,
Zero
Cpn,
5/30/24
...
3,146
2,185
6178565.SQ.FTS.B,
Zero
Cpn,
6/01/24
...
1,526
1,223
6178645.SQ.FTS.B,
Zero
Cpn,
6/01/24
...
1,335
1,007
6180787.SQ.FTS.B,
Zero
Cpn,
6/01/24
...
5,343
2,524
6181976.SQ.FTS.B,
Zero
Cpn,
6/02/24
...
5,812
5,695
6183917.SQ.FTS.B,
Zero
Cpn,
6/02/24
...
602
595
6185725.SQ.FTS.B,
Zero
Cpn,
6/03/24
...
742
682
6185770.SQ.FTS.B,
Zero
Cpn,
6/03/24
...
2,564
709
6185954.SQ.FTS.B,
Zero
Cpn,
6/03/24
...
1,743
304
6186115.SQ.FTS.B,
Zero
Cpn,
6/03/24
...
3,319
2,190
6186378.SQ.FTS.B,
Zero
Cpn,
6/03/24
...
3,315
2,458
6187158.SQ.FTS.B,
Zero
Cpn,
6/04/24
...
6,119
5,843
6190982.SQ.FTS.B,
Zero
Cpn,
6/05/24
...
4,546
2,435
6191154.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
2,148
1,103
6192534.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
2,168
2,087
6192760.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
328
316
6193526.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
368
199
6193538.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
2,622
1,401
6193647.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
1,458
1,043
6194207.SQ.FTS.B,
Zero
Cpn,
6/06/24
...
566
535
6195812.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
205
203
6195876.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
2,301
2,244
6196365.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
904
884
6196456.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
1,642
1,542
6196597.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
1,104
1,045
6196636.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
869
781
6197025.SQ.FTS.B,
Zero
Cpn,
6/07/24
...
2,910
879
6204172.SQ.FTS.B,
Zero
Cpn,
6/08/24
...
62
62
6204308.SQ.FTS.B,
Zero
Cpn,
6/08/24
...
21,746
6,975
6205057.SQ.FTS.B,
Zero
Cpn,
6/08/24
...
2,873
2,787
6205579.SQ.FTS.B,
Zero
Cpn,
6/08/24
...
216
183
6207454.SQ.FTS.B,
Zero
Cpn,
6/09/24
...
1,380
1,222
6207951.SQ.FTS.B,
Zero
Cpn,
6/09/24
...
1,129
1,042
6208768.SQ.FTS.B,
Zero
Cpn,
6/09/24
...
5,905
5,524
6209210.SQ.FTS.B,
Zero
Cpn,
6/09/24
...
6,712
6,370
6209706.SQ.FTS.B,
Zero
Cpn,
6/10/24
...
3,534
1,788
6209843.SQ.FTS.B,
Zero
Cpn,
6/10/24
...
3,234
3,058
6210087.SQ.FTS.B,
Zero
Cpn,
6/10/24
...
2,858
2,765
6210392.SQ.FTS.B,
Zero
Cpn,
6/10/24
...
154
145
6210405.SQ.FTS.B,
Zero
Cpn,
6/10/24
...
2,929
1,253
6211202.SQ.FTS.B,
Zero
Cpn,
6/11/24
...
1,521
1,357
6211496.SQ.FTS.B,
Zero
Cpn,
6/12/24
...
399
383
6211694.SQ.FTS.B,
Zero
Cpn,
6/12/24
...
3,639
1,074
6211842.SQ.FTS.B,
Zero
Cpn,
6/12/24
...
114
111
6212456.SQ.FTS.B,
Zero
Cpn,
6/12/24
...
1,779
1,769
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6215598.SQ.FTS.B,
Zero
Cpn,
6/13/24
...
$
2,834
$
2,773
6217315.SQ.FTS.B,
Zero
Cpn,
6/13/24
...
692
392
6217699.SQ.FTS.B,
Zero
Cpn,
6/13/24
...
7,716
6,128
6217830.SQ.FTS.B,
Zero
Cpn,
6/13/24
...
226
223
6217917.SQ.FTS.B,
Zero
Cpn,
6/13/24
...
2,770
2,575
6218171.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
1,038
973
6218284.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
18,085
14,931
6219108.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
1,776
1,749
6219911.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
1,438
647
6220404.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
3,636
3,406
6220586.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
3,444
1,255
6220625.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
8,814
3,707
6221348.SQ.FTS.B,
Zero
Cpn,
6/14/24
...
3,060
1,868
6223652.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
5,854
5,820
6225507.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
7,031
4,010
6225966.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
2,103
1,970
6226298.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
239
234
6226763.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
570
551
6226903.SQ.FTS.B,
Zero
Cpn,
6/15/24
...
3,948
3,380
6226984.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
111
94
6227044.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
2,509
2,279
6227194.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
2,188
451
6227644.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
10,723
9,749
6228350.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
2,852
2,644
6228782.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
282
258
6228865.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
1,213
390
6229024.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
1,195
1,069
6229186.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
4,788
4,181
6229407.SQ.FTS.B,
Zero
Cpn,
6/16/24
...
974
953
6235012.SQ.FTS.B,
Zero
Cpn,
6/17/24
...
18,398
18,106
6236255.SQ.FTS.B,
Zero
Cpn,
6/18/24
...
2,023
1,339
6237088.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
1,309
832
6237213.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
994
345
6237296.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
1,326
1,302
6238378.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
1,044
1,017
6238498.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
580
242
6238676.SQ.FTS.B,
Zero
Cpn,
6/19/24
...
1,318
1,270
6240356.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
1,912
1,863
6241005.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
3,957
3,702
6241476.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
4,060
3,928
6241869.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
2,668
2,446
6243283.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
3,056
2,903
6243468.SQ.FTS.B,
Zero
Cpn,
6/20/24
...
12,676
7,901
6243792.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
3,709
3,034
6243926.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
46
45
6244281.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
2,053
1,421
6244407.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
1,951
1,836
6244606.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
595
592
6244872.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
480
406
6245571.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
533
428
6245714.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
677
624
6245757.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
19,312
13,242
6246312.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
2,157
2,102
6246365.SQ.FTS.B,
Zero
Cpn,
6/21/24
...
550
541
6248726.SQ.FTS.B,
Zero
Cpn,
6/22/24
...
863
766
6251727.SQ.FTS.B,
Zero
Cpn,
6/22/24
...
107
96
6252082.SQ.FTS.B,
Zero
Cpn,
6/22/24
...
2,779
2,727
6252494.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
8,201
5,576
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6252766.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
$
4,818
$
4,686
6253296.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
2,838
2,408
6254110.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
2,131
2,092
6254212.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
3,226
3,143
6254361.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
1,745
1,293
6254473.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
15,036
4,285
6254841.SQ.FTS.B,
Zero
Cpn,
6/23/24
...
7,756
3,033
6255520.SQ.FTS.B,
Zero
Cpn,
6/24/24
...
453
386
6256584.SQ.FTS.B,
Zero
Cpn,
6/26/24
...
951
912
6256624.SQ.FTS.B,
Zero
Cpn,
6/26/24
...
4,847
3,119
6256788.SQ.FTS.B,
Zero
Cpn,
6/26/24
...
179
173
6256896.SQ.FTS.B,
Zero
Cpn,
6/26/24
...
1,314
1,283
6257332.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
1,926
1,818
6258694.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
2,558
2,390
6259376.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
3,540
3,433
6259695.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
2,225
611
6259881.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
612
552
6259920.SQ.FTS.B,
Zero
Cpn,
6/27/24
...
854
781
6260137.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
20,550
17,381
6261141.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
693
674
6261171.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
3,286
2,991
6261647.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
963
942
6261675.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
2,162
2,081
6261909.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
5,529
4,909
6262015.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
380
368
6262066.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
324
270
6262078.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
1,788
1,713
6262166.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
393
380
6262242.SQ.FTS.B,
Zero
Cpn,
6/28/24
...
16,881
12,586
6265153.SQ.FTS.B,
Zero
Cpn,
6/29/24
...
11,421
10,203
6265569.SQ.FTS.B,
Zero
Cpn,
6/29/24
...
1,868
1,824
6266370.SQ.FTS.B,
Zero
Cpn,
6/29/24
...
27,991
15,874
6267469.SQ.FTS.B,
Zero
Cpn,
6/29/24
...
3,288
2,532
6268081.SQ.FTS.B,
Zero
Cpn,
6/29/24
...
2,531
2,334
6268240.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
1,591
611
6268406.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
4,603
4,435
6269030.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
5,044
4,877
6270020.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
444
353
6270136.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
932
901
6270218.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
3,050
2,963
6270711.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
2,376
2,332
6270801.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
606
583
6270955.SQ.FTS.B,
Zero
Cpn,
6/30/24
...
2,031
1,984
6271702.SQ.FTS.B,
Zero
Cpn,
7/01/24
...
515
169
6271708.SQ.FTS.B,
Zero
Cpn,
7/01/24
...
3,853
2,753
6271885.SQ.FTS.B,
Zero
Cpn,
7/02/24
...
3,186
2,884
6272123.SQ.FTS.B,
Zero
Cpn,
7/02/24
...
1,295
1,277
6272266.SQ.FTS.B,
Zero
Cpn,
7/02/24
...
2,846
2,751
6272326.SQ.FTS.B,
Zero
Cpn,
7/02/24
...
21
21
6272382.SQ.FTS.B,
Zero
Cpn,
7/02/24
...
11,505
9,095
6273534.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
1,244
1,222
6273667.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
1,021
898
6273758.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
1,472
1,087
6274482.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
264
254
6274513.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
6,186
6,092
6275203.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
2,794
2,668
6275326.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
2,025
676
6275411.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
3,948
3,599
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6275549.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
$
346
$
341
6275684.SQ.FTS.B,
Zero
Cpn,
7/03/24
...
2,051
2,023
6276755.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
8,160
6,081
6277033.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
3,011
2,121
6277663.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
5,825
5,254
6277889.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
1,887
1,708
6277934.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
1,432
978
6278139.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
993
812
6278193.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
1,008
888
6278671.SQ.FTS.B,
Zero
Cpn,
7/04/24
...
1,619
1,588
6279873.SQ.FTS.B,
Zero
Cpn,
7/05/24
...
7,962
7,831
6280292.SQ.FTS.B,
Zero
Cpn,
7/05/24
...
963
944
6281030.SQ.FTS.B,
Zero
Cpn,
7/05/24
...
6,514
6,261
6282043.SQ.FTS.B,
Zero
Cpn,
7/05/24
...
430
419
6282812.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
15,894
14,844
6283635.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
1,524
1,326
6283883.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
401
396
6284320.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
2,816
2,573
6284447.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
2,373
2,270
6284632.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
3,329
1,837
6285105.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
4
3
6285215.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
210
198
6285291.SQ.FTS.B,
Zero
Cpn,
7/06/24
...
21,510
18,664
6285821.SQ.FTS.B,
Zero
Cpn,
7/07/24
...
2,154
909
6285959.SQ.FTS.B,
Zero
Cpn,
7/07/24
...
8,099
2,919
6286097.SQ.FTS.B,
Zero
Cpn,
7/07/24
...
4,969
4,840
6286608.SQ.FTS.B,
Zero
Cpn,
7/08/24
...
1,317
1,266
6288150.SQ.FTS.B,
Zero
Cpn,
7/09/24
...
3,983
3,036
6288517.SQ.FTS.B,
Zero
Cpn,
7/09/24
...
15,838
15,461
6289281.SQ.FTS.B,
Zero
Cpn,
7/09/24
...
3,289
2,606
6290604.SQ.FTS.B,
Zero
Cpn,
7/10/24
...
6,380
3,294
6291208.SQ.FTS.B,
Zero
Cpn,
7/10/24
...
612
592
6292603.SQ.FTS.B,
Zero
Cpn,
7/11/24
...
2,688
1,480
6292949.SQ.FTS.B,
Zero
Cpn,
7/11/24
...
13,486
11,416
6293502.SQ.FTS.B,
Zero
Cpn,
7/11/24
...
2,844
2,703
6294090.SQ.FTS.B,
Zero
Cpn,
7/11/24
...
1,140
1,128
6294205.SQ.FTS.B,
Zero
Cpn,
7/11/24
...
23,628
22,981
6297784.SQ.FTS.B,
Zero
Cpn,
7/12/24
...
1,108
1,078
6300599.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
2,699
2,370
6300866.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
682
377
6301259.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
4,399
4,305
6301612.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
1,638
1,586
6301755.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
1,008
863
6301864.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
407
386
6301915.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
13,491
8,265
6302668.SQ.FTS.B,
Zero
Cpn,
7/13/24
...
1,710
1,188
6303891.SQ.FTS.B,
Zero
Cpn,
7/14/24
...
23,165
18,700
6304223.SQ.FTS.B,
Zero
Cpn,
7/14/24
...
5,634
5,475
6304611.SQ.FTS.B,
Zero
Cpn,
7/15/24
...
1,454
1,411
6304681.SQ.FTS.B,
Zero
Cpn,
7/15/24
...
2,703
2,627
6304835.SQ.FTS.B,
Zero
Cpn,
7/15/24
...
2,298
2,196
6305170.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
6,427
6,150
6305487.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
2,435
2,218
6305535.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
1,514
1,481
6305705.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
1,154
1,105
6305775.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
546
371
6305783.SQ.FTS.B,
Zero
Cpn,
7/16/24
...
1,409
1,106
6306239.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
2,085
1,962
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6306881.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
$
837
$
824
6306980.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
226
214
6307110.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
3,924
3,841
6307502.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
2,152
1,691
6307782.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
1,480
1,428
6308012.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
1,826
951
6308340.SQ.FTS.B,
Zero
Cpn,
7/17/24
...
8,107
8,050
6308551.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
14,398
11,286
6308998.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
2,458
2,309
6309341.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
1,719
960
6309408.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
8,578
8,163
6310540.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
18,430
17,703
6311127.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
861
620
6311146.SQ.FTS.B,
Zero
Cpn,
7/18/24
...
4,868
4,755
6313293.SQ.FTS.B,
Zero
Cpn,
7/19/24
...
20,373
18,086
6314763.SQ.FTS.B,
Zero
Cpn,
7/19/24
...
982
570
6314821.SQ.FTS.B,
Zero
Cpn,
7/19/24
...
15,923
15,606
6318268.SQ.FTS.B,
Zero
Cpn,
7/20/24
...
3,467
2,841
6318395.SQ.FTS.B,
Zero
Cpn,
7/20/24
...
1,148
1,049
6318502.SQ.FTS.B,
Zero
Cpn,
7/20/24
...
1,473
1,435
6318905.SQ.FTS.B,
Zero
Cpn,
7/20/24
...
2,280
2,185
6319056.SQ.FTS.B,
Zero
Cpn,
7/21/24
...
18,066
17,086
6321267.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
3,321
3,147
6321682.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
118
115
6323554.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
3,581
3,007
6328683.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
882
612
6331375.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
2,614
2,269
6335990.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
1,461
1,351
6337721.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
242
237
6350485.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
745
193
6350994.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
1,016
979
6351277.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
2,339
2,260
6351343.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
4,999
4,223
6351585.SQ.FTS.B,
Zero
Cpn,
7/23/24
...
26,992
23,777
6351823.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
2,700
1,292
6351975.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
3,649
950
6352107.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
1,173
1,164
6352630.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
4,004
3,805
6353401.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
1,054
1,016
6353581.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
916
871
6353625.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
5,709
5,652
6354516.SQ.FTS.B,
Zero
Cpn,
7/24/24
...
3,469
3,415
6355174.SQ.FTS.B,
Zero
Cpn,
7/25/24
...
38,711
35,498
6357160.SQ.FTS.B,
Zero
Cpn,
7/25/24
...
6,911
6,604
6357410.SQ.FTS.B,
Zero
Cpn,
7/25/24
...
1,332
1,316
6357497.SQ.FTS.B,
Zero
Cpn,
7/25/24
...
2,705
1,974
6357583.SQ.FTS.B,
Zero
Cpn,
7/25/24
...
3,130
2,118
6359468.SQ.FTS.B,
Zero
Cpn,
7/26/24
...
432
315
6359718.SQ.FTS.B,
Zero
Cpn,
7/26/24
...
1,388
1,327
6360785.SQ.FTS.B,
Zero
Cpn,
7/26/24
...
42,063
39,325
6362421.SQ.FTS.B,
Zero
Cpn,
7/26/24
...
16
16
6363931.SQ.FTS.B,
Zero
Cpn,
7/27/24
...
525
516
6365244.SQ.FTS.B,
Zero
Cpn,
7/27/24
...
3,040
2,989
6367525.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
2,388
2,332
6368053.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
4,466
4,358
6368728.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
2,325
2,112
6369494.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
3,556
3,447
6369909.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
2,713
2,651
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6370198.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
$
1,100
$
992
6370285.SQ.FTS.B,
Zero
Cpn,
7/30/24
...
1,998
613
6371621.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
10,360
6,099
6371938.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
2,821
2,747
6372533.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
1,917
1,880
6372671.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
830
798
6372693.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
1,107
940
6372714.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
8,989
7,171
6372961.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
61,560
26,962
6373735.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
4,384
4,042
6373834.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
1,936
1,425
6373877.SQ.FTS.B,
Zero
Cpn,
7/31/24
...
2,513
2,448
6374394.SQ.FTS.B,
Zero
Cpn,
8/01/24
...
3,474
3,274
6374599.SQ.FTS.B,
Zero
Cpn,
8/01/24
...
11,661
10,519
6375767.SQ.FTS.B,
Zero
Cpn,
8/01/24
...
2,677
2,542
6378866.SQ.FTS.B,
Zero
Cpn,
8/02/24
...
1,681
528
6379023.SQ.FTS.B,
Zero
Cpn,
8/02/24
...
187
185
6379092.SQ.FTS.B,
Zero
Cpn,
8/02/24
...
954
338
6379126.SQ.FTS.B,
Zero
Cpn,
8/02/24
...
1,037
996
6379377.SQ.FTS.B,
Zero
Cpn,
8/02/24
...
2,738
2,678
6382243.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
54,460
28,232
6383527.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
8,290
7,753
6384023.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
28,334
14,739
6384961.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
910
405
6384969.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
5,287
5,119
6385195.SQ.FTS.B,
Zero
Cpn,
8/03/24
...
17,356
16,895
6385264.SQ.FTS.B,
Zero
Cpn,
8/04/24
...
5,164
4,981
6386181.SQ.FTS.B,
Zero
Cpn,
8/05/24
...
180
147
6386635.SQ.FTS.B,
Zero
Cpn,
8/05/24
...
1,423
909
6389202.SQ.FTS.B,
Zero
Cpn,
8/06/24
...
3,677
1,792
6389269.SQ.FTS.B,
Zero
Cpn,
8/06/24
...
5,130
1,416
6390152.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
1,934
1,878
6390309.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
9,112
8,570
6391615.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
2,300
2,238
6392690.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
3,942
2,833
6392793.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
902
849
6392846.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
2,706
2,562
6392950.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
552
539
6392987.SQ.FTS.B,
Zero
Cpn,
8/07/24
...
7,102
2,004
6393293.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
4,286
3,134
6393441.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
2,703
2,297
6393862.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
9,960
9,070
6394418.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
4,610
4,514
6394736.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
5,127
4,504
6394981.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
276
271
6395015.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
545
291
6395906.SQ.FTS.B,
Zero
Cpn,
8/08/24
...
1,400
1,379
6399251.SQ.FTS.B,
Zero
Cpn,
8/09/24
...
942
938
6399791.SQ.FTS.B,
Zero
Cpn,
8/09/24
...
930
854
6401009.SQ.FTS.B,
Zero
Cpn,
8/09/24
...
1,157
1,093
6401183.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
2,866
2,795
6401384.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
2,080
2,031
6401621.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
7,332
6,115
6402076.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
566
466
6402426.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
28,745
16,857
6403343.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
2,180
2,116
6403694.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
1,789
1,614
6403789.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
1,957
879
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6403845.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
$
1,141
$
1,110
6403953.SQ.FTS.B,
Zero
Cpn,
8/10/24
...
1,600
1,507
6404033.SQ.FTS.B,
Zero
Cpn,
8/11/24
...
2,159
1,412
6404145.SQ.FTS.B,
Zero
Cpn,
8/11/24
...
1,321
1,288
6404527.SQ.FTS.B,
Zero
Cpn,
8/11/24
...
892
825
6406527.SQ.FTS.B,
Zero
Cpn,
8/13/24
...
3,354
3,247
6406913.SQ.FTS.B,
Zero
Cpn,
8/13/24
...
8,573
5,528
6407456.SQ.FTS.B,
Zero
Cpn,
8/13/24
...
1,321
1,304
6407517.SQ.FTS.B,
Zero
Cpn,
8/13/24
...
667
502
6407857.SQ.FTS.B,
Zero
Cpn,
8/13/24
...
6,715
6,405
6410034.SQ.FTS.B,
Zero
Cpn,
8/14/24
...
2,059
2,029
6410608.SQ.FTS.B,
Zero
Cpn,
8/14/24
...
23,537
11,446
6411129.SQ.FTS.B,
Zero
Cpn,
8/14/24
...
1,263
1,122
6412147.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
1,904
1,822
6412264.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
798
610
6412310.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
180
177
6413090.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
14,328
3,421
6413381.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
9,634
9,258
6414217.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
20,823
15,595
6414500.SQ.FTS.B,
Zero
Cpn,
8/15/24
...
23,707
21,796
6417940.SQ.FTS.B,
Zero
Cpn,
8/16/24
...
6,315
6,168
6418605.SQ.FTS.B,
Zero
Cpn,
8/16/24
...
1,715
1,640
6419949.SQ.FTS.B,
Zero
Cpn,
8/16/24
...
21,086
20,304
6420983.SQ.FTS.B,
Zero
Cpn,
8/16/24
...
7,171
6,995
6421824.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
3,721
3,527
6422193.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
2,144
2,026
6422335.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
543
537
6422493.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
1,036
931
6422559.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
3,621
3,299
6422816.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
1,080
1,064
6422872.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
11,937
11,731
6423716.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
164
162
6423780.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
829
798
6423847.SQ.FTS.B,
Zero
Cpn,
8/17/24
...
5,259
4,859
6424176.SQ.FTS.B,
Zero
Cpn,
8/18/24
...
23,042
17,927
6424759.SQ.FTS.B,
Zero
Cpn,
8/18/24
...
5,396
2,828
6425057.SQ.FTS.B,
Zero
Cpn,
8/19/24
...
2,891
2,826
6425295.SQ.FTS.B,
Zero
Cpn,
8/19/24
...
2,974
2,815
6425371.SQ.FTS.B,
Zero
Cpn,
8/19/24
...
542
536
6425728.SQ.FTS.B,
Zero
Cpn,
8/20/24
...
581
570
6425836.SQ.FTS.B,
Zero
Cpn,
8/20/24
...
3,218
3,117
6426051.SQ.FTS.B,
Zero
Cpn,
8/20/24
...
286
280
6426378.SQ.FTS.B,
Zero
Cpn,
8/20/24
...
5,058
3,894
6426769.SQ.FTS.B,
Zero
Cpn,
8/20/24
...
1,558
1,452
6427044.SQ.FTS.B,
Zero
Cpn,
8/21/24
...
507
495
6427394.SQ.FTS.B,
Zero
Cpn,
8/21/24
...
24,524
14,131
6428486.SQ.FTS.B,
Zero
Cpn,
8/21/24
...
1,794
1,705
6428704.SQ.FTS.B,
Zero
Cpn,
8/21/24
...
1,294
1,263
6428786.SQ.FTS.B,
Zero
Cpn,
8/21/24
...
1,743
1,328
6430083.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
4,165
3,227
6430693.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
4,463
3,896
6431015.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
5,371
2,957
6431580.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
1,134
1,077
6432176.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
580
572
6432819.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
323
307
6432973.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
726
705
6433051.SQ.FTS.B,
Zero
Cpn,
8/22/24
...
1,321
868
6435561.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
1,647
1,529
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6436390.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
$
3,413
$
1,969
6436784.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
370
363
6436884.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
6,323
6,095
6439473.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
90
85
6439581.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
1,467
563
6439616.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
3,011
2,704
6439657.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
1,705
1,658
6439737.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
2,196
2,031
6439850.SQ.FTS.B,
Zero
Cpn,
8/23/24
...
7,981
3,981
6440981.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
12,338
10,258
6441773.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
2,948
2,572
6442031.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
2,241
2,226
6442480.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
4,319
2,325
6442691.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
1,899
1,863
6442768.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
15,350
15,085
6443460.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
8,540
5,671
6443725.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
3,269
1,986
6443882.SQ.FTS.B,
Zero
Cpn,
8/24/24
...
1,834
1,719
6444489.SQ.FTS.B,
Zero
Cpn,
8/25/24
...
364
356
6445311.SQ.FTS.B,
Zero
Cpn,
8/26/24
...
4,838
4,661
6445636.SQ.FTS.B,
Zero
Cpn,
8/26/24
...
6,403
4,916
6446212.SQ.FTS.B,
Zero
Cpn,
8/27/24
...
401
346
6447783.SQ.FTS.B,
Zero
Cpn,
8/27/24
...
3,499
2,841
6448004.SQ.FTS.B,
Zero
Cpn,
8/27/24
...
2,590
1,697
6448230.SQ.FTS.B,
Zero
Cpn,
8/27/24
...
6,984
6,913
6449433.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
2,894
2,853
6449585.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
786
768
6449941.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
7,474
7,375
6451008.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
1,690
1,551
6451146.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
1,915
1,362
6451217.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
5,394
4,382
6451818.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
32,683
23,745
6452462.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
655
637
6452549.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
2,174
2,142
6452609.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
231
226
6452694.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
1,922
1,112
6452723.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
1,879
224
6452738.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
1,146
1,105
6452770.SQ.FTS.B,
Zero
Cpn,
8/28/24
...
3,783
3,429
6452903.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
691
630
6452942.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
1,882
1,837
6453032.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
1,582
1,562
6453434.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
2,450
2,368
6453799.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
1,006
622
6454314.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
6,133
4,617
6454405.SQ.FTS.B,
Zero
Cpn,
9/01/24
...
22,753
21,575
6457417.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
3,063
2,795
6457468.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
85
83
6457547.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
51,882
27,242
6458499.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
2,027
1,924
6458584.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
3,314
3,164
6458708.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
1,060
1,042
6458821.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
952
895
6458923.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
6,721
6,136
6459270.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
21,362
19,344
6460417.SQ.FTS.B,
Zero
Cpn,
9/02/24
...
3,697
3,641
6461088.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
3,771
3,411
6461434.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
9,104
8,387
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6462068.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
$
818
$
785
6462310.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
7,937
7,649
6463011.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
2,201
2,153
6463337.SQ.FTS.B,
Zero
Cpn,
9/03/24
...
12,162
10,001
6463659.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
2,718
2,635
6464039.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
1,732
1,545
6464078.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
1,585
1,350
6464356.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
347
335
6464361.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
3,920
3,612
6464459.SQ.FTS.B,
Zero
Cpn,
9/04/24
...
89
87
6464466.SQ.FTS.B,
Zero
Cpn,
9/05/24
...
3,261
3,108
6464558.SQ.FTS.B,
Zero
Cpn,
9/05/24
...
1,189
928
6464587.SQ.FTS.B,
Zero
Cpn,
9/05/24
...
5,566
5,023
6464959.SQ.FTS.B,
Zero
Cpn,
9/05/24
...
4,417
4,315
6465222.SQ.FTS.B,
Zero
Cpn,
9/05/24
...
2,218
2,108
6465421.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
1,639
1,210
6465655.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
1,504
1,070
6466934.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
862
814
6467022.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
4,207
4,134
6467555.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
3,596
2,907
6467681.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
2,690
2,092
6467754.SQ.FTS.B,
Zero
Cpn,
9/06/24
...
5,718
5,560
6469001.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
2,073
1,913
6469467.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
380
373
6469746.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
2,160
2,072
6470092.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
4,997
3,842
6472384.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
1,505
1,345
6472450.SQ.FTS.B,
Zero
Cpn,
9/07/24
...
5,186
4,922
6472645.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
1,918
1,318
6473168.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
10,965
7,555
6473644.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
10,179
9,997
6474286.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
7,387
5,835
6475060.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
5,651
4,768
6475454.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
2,818
1,774
6475554.SQ.FTS.B,
Zero
Cpn,
9/08/24
...
8,062
2,348
6477774.SQ.FTS.B,
Zero
Cpn,
9/09/24
...
51,773
35,004
6479516.SQ.FTS.B,
Zero
Cpn,
9/09/24
...
376
372
6479577.SQ.FTS.B,
Zero
Cpn,
9/09/24
...
33,601
32,107
6481120.SQ.FTS.B,
Zero
Cpn,
9/09/24
...
2,895
2,820
6481328.SQ.FTS.B,
Zero
Cpn,
9/09/24
...
9,456
5,477
6481464.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
7,778
7,130
6482592.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
8,876
8,439
6483182.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
9,969
9,234
6483513.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
8,822
5,977
6483819.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
11,515
10,037
6484336.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
22,221
14,029
6484909.SQ.FTS.B,
Zero
Cpn,
9/10/24
...
2,854
2,157
6485101.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
3,024
2,227
6485148.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
8,488
5,574
6485317.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
2,040
1,876
6485400.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
3,737
3,664
6485531.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
1,341
1,324
6485616.SQ.FTS.B,
Zero
Cpn,
9/11/24
...
7,153
6,786
6486340.SQ.FTS.B,
Zero
Cpn,
9/12/24
...
983
555
6486361.SQ.FTS.B,
Zero
Cpn,
9/12/24
...
3,044
2,610
6486448.SQ.FTS.B,
Zero
Cpn,
9/12/24
...
5,275
4,410
6486663.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
6,399
6,114
6487708.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
3,255
3,075
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6487929.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
$
269
$
257
6488356.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
3,633
3,284
6489083.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
6,816
3,806
6489330.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
1,582
1,401
6489483.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
5,141
4,883
6489711.SQ.FTS.B,
Zero
Cpn,
9/13/24
...
6,794
5,772
6490385.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
981
926
6490736.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
5,736
5,430
6491440.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
303
302
6491504.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
1,082
970
6491615.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
2,103
2,017
6491686.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
7,035
6,354
6492333.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
186
182
6492739.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
2,228
2,159
6493143.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
4,126
3,107
6493234.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
7,457
7,153
6493440.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
862
769
6493467.SQ.FTS.B,
Zero
Cpn,
9/14/24
...
2,332
1,521
6493935.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
1,195
1,139
6494091.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
1,543
1,431
6494266.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
14,708
11,144
6494878.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
611
599
6494926.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
4,490
4,291
6495115.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
1,932
1,766
6495171.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
7,181
6,884
6495862.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
177
163
6495876.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
7,793
7,648
6496050.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
2,621
733
6496082.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
10,934
9,205
6496235.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
3,870
3,715
6496559.SQ.FTS.B,
Zero
Cpn,
9/15/24
...
12,355
11,676
6500163.SQ.FTS.B,
Zero
Cpn,
9/16/24
...
6,059
5,759
6500689.SQ.FTS.B,
Zero
Cpn,
9/16/24
...
26,247
25,189
6503026.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
1,566
1,217
6503133.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
1,242
959
6503201.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
1,828
1,151
6503282.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
1,629
1,603
6503671.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
6,653
6,302
6504651.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
10,071
8,656
6505246.SQ.FTS.B,
Zero
Cpn,
9/17/24
...
3,300
3,180
6505688.SQ.FTS.B,
Zero
Cpn,
9/18/24
...
592
574
6505929.SQ.FTS.B,
Zero
Cpn,
9/18/24
...
187
179
6506049.SQ.FTS.B,
Zero
Cpn,
9/18/24
...
3,774
3,051
6506162.SQ.FTS.B,
Zero
Cpn,
9/18/24
...
806
773
6506217.SQ.FTS.B,
Zero
Cpn,
9/18/24
...
1,151
194
6506478.SQ.FTS.B,
Zero
Cpn,
9/19/24
...
1,388
1,328
6506564.SQ.FTS.B,
Zero
Cpn,
9/19/24
...
477
468
6506649.SQ.FTS.B,
Zero
Cpn,
9/19/24
...
5,369
5,245
6506988.SQ.FTS.B,
Zero
Cpn,
9/19/24
...
2,585
2,007
6507269.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
1,876
1,802
6507459.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
4,426
3,709
6508052.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
530
499
6508186.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
9,173
8,799
6508534.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
3,474
1,769
6508622.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
2,695
2,397
6508745.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
2,094
2,044
6509112.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
1,183
1,153
6509173.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
1,363
983
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6509202.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
$
1,361
$
1,340
6509277.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
1,957
1,907
6509330.SQ.FTS.B,
Zero
Cpn,
9/20/24
...
3,631
3,534
6510832.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
2,724
2,677
6511032.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
2,164
2,085
6511241.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
2,984
2,913
6511428.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
6,790
5,812
6511781.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
42,308
41,085
6513331.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
9,081
8,755
6513636.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
6,661
6,370
6513891.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
792
744
6513921.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
1,428
1,396
6513946.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
3,522
3,466
6514102.SQ.FTS.B,
Zero
Cpn,
9/21/24
...
518
514
6514328.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
5,684
5,539
6514843.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
3,133
1,417
6514979.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
5,231
4,831
6515207.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
3,530
3,333
6515564.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
6,185
5,997
6516752.SQ.FTS.B,
Zero
Cpn,
9/22/24
...
19,067
17,601
6518779.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
6,125
5,948
6519017.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
2,514
2,208
6519119.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
9,876
9,631
6520171.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
2,512
2,209
6520294.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
15,942
15,360
6520794.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
48,825
47,399
6522390.SQ.FTS.B,
Zero
Cpn,
9/23/24
...
1,703
1,656
6522552.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
2,376
2,311
6522783.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
6,426
6,296
6523267.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
7,889
4,697
6523516.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
1,383
1,046
6523578.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
5,294
3,295
6523846.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
4,488
4,293
6524017.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
38,788
30,685
6525367.SQ.FTS.B,
Zero
Cpn,
9/24/24
...
27,702
26,046
6526051.SQ.FTS.B,
Zero
Cpn,
9/25/24
...
554
550
6526119.SQ.FTS.B,
Zero
Cpn,
9/25/24
...
1,280
1,218
6526245.SQ.FTS.B,
Zero
Cpn,
9/25/24
...
4,010
3,914
6526432.SQ.FTS.B,
Zero
Cpn,
9/26/24
...
1,729
1,669
6526489.SQ.FTS.B,
Zero
Cpn,
9/26/24
...
878
818
6526591.SQ.FTS.B,
Zero
Cpn,
9/26/24
...
950
930
6527011.SQ.FTS.B,
Zero
Cpn,
9/26/24
...
11,169
10,848
6529184.SQ.FTS.B,
Zero
Cpn,
9/27/24
...
932
913
6529284.SQ.FTS.B,
Zero
Cpn,
9/27/24
...
4,233
3,642
6529391.SQ.FTS.B,
Zero
Cpn,
9/27/24
...
7,508
7,299
6529703.SQ.FTS.B,
Zero
Cpn,
9/27/24
...
1,349
1,207
6530839.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
4,450
4,269
6530993.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
3,443
3,187
6531074.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
24,833
13,087
6532045.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
908
893
6532409.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
1,688
1,650
6532458.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
755
745
6533333.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
7,093
6,793
6533670.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
3,446
2,973
6533786.SQ.FTS.B,
Zero
Cpn,
9/28/24
...
3,543
3,426
6534257.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
3,610
3,280
6534305.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
796
679
6534326.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
3,208
3,069
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6534533.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
$
2,977
$
2,945
6534962.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
3,812
3,404
6535186.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
3,190
3,066
6535323.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
5,234
4,828
6535514.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
2,874
2,766
6535953.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
5,931
4,699
6537003.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
274
272
6537042.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
3,618
3,431
6537176.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
4,944
4,491
6537318.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
2,619
2,577
6537472.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
2,567
504
6537801.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
7,704
6,891
6537905.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
4,109
3,927
6537991.SQ.FTS.B,
Zero
Cpn,
9/29/24
...
354
342
6540738.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
4,210
4,020
6541317.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
316
304
6541353.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
3,745
881
6543102.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
11,061
10,842
6543166.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
5,108
1,318
6543345.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
2,731
2,693
6544501.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
13,585
10,296
6545005.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
5,382
4,771
6545631.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
6,343
6,228
6545882.SQ.FTS.B,
Zero
Cpn,
9/30/24
...
16,030
13,541
6546849.SQ.FTS.B,
Zero
Cpn,
10/01/24
..
4,276
4,179
6547283.SQ.FTS.B,
Zero
Cpn,
10/01/24
..
411
375
6547304.SQ.FTS.B,
Zero
Cpn,
10/01/24
..
992
951
6547360.SQ.FTS.B,
Zero
Cpn,
10/01/24
..
1,472
1,376
6547411.SQ.FTS.B,
Zero
Cpn,
10/01/24
..
22,069
17,475
6547946.SQ.FTS.B,
Zero
Cpn,
10/02/24
..
1,283
1,186
6548032.SQ.FTS.B,
Zero
Cpn,
10/02/24
..
1,010
966
6548177.SQ.FTS.B,
Zero
Cpn,
10/02/24
..
45
45
6548750.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
5,376
5,256
6549184.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
3,179
3,106
6549425.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
1,150
1,095
6549603.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
1,473
1,312
6549954.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
2,107
1,908
6550151.SQ.FTS.B,
Zero
Cpn,
10/03/24
..
48,874
47,471
6552110.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
9,240
7,931
6552948.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
1,811
1,089
6552996.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
2,976
2,805
6553144.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
1,480
1,428
6553220.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
2,862
2,826
6553336.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
2,140
2,109
6553419.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
8,443
8,369
6554242.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
12,631
12,170
6554875.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
2,349
2,265
6554986.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
1,283
1,258
6555041.SQ.FTS.B,
Zero
Cpn,
10/04/24
..
38,246
33,407
6555644.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
1,724
1,497
6556002.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
2,487
2,334
6556175.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
3,109
3,057
6556395.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
2,760
1,955
6556964.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
2,016
1,595
6557065.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
11,678
10,920
6557603.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
3,423
3,281
6558022.SQ.FTS.B,
Zero
Cpn,
10/05/24
..
48,538
46,710
6560193.SQ.FTS.B,
Zero
Cpn,
10/06/24
..
3,574
2,088
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6560334.SQ.FTS.B,
Zero
Cpn,
10/06/24
..
$
2,562
$
2,507
6560576.SQ.FTS.B,
Zero
Cpn,
10/06/24
..
2,102
2,022
6560968.SQ.FTS.B,
Zero
Cpn,
10/06/24
..
1,103
984
6561336.SQ.FTS.B,
Zero
Cpn,
10/06/24
..
2,077
2,047
6563116.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
1,091
617
6563182.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
1,424
1,379
6563299.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
828
705
6563410.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
6,272
5,962
6564134.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
2,007
1,869
6564756.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
7,125
6,944
6565723.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
438
431
6565793.SQ.FTS.B,
Zero
Cpn,
10/07/24
..
8,124
7,978
6566178.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
5,939
5,355
6566349.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
1,992
1,935
6566403.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
7,588
7,289
6566625.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
11,334
7,982
6566798.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
864
708
6566816.SQ.FTS.B,
Zero
Cpn,
10/08/24
..
5,689
5,137
6566945.SQ.FTS.B,
Zero
Cpn,
10/09/24
..
1,421
951
6566968.SQ.FTS.B,
Zero
Cpn,
10/09/24
..
1,743
1,704
6567415.SQ.FTS.B,
Zero
Cpn,
10/09/24
..
2,538
2,514
6567990.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
4,952
4,892
6568600.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
2,251
2,203
6569010.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
2,499
2,399
6569642.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
4,956
4,845
6569857.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
1,053
1,007
6569951.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
7,488
7,295
6570607.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
2,325
2,230
6570679.SQ.FTS.B,
Zero
Cpn,
10/10/24
..
23,293
13,188
6571245.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
2,516
2,477
6571537.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
1,590
1,440
6571609.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
7,017
5,989
6571945.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
269
265
6572100.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
1,987
1,930
6572171.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
997
976
6572397.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
1,185
1,060
6572521.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
2,875
2,288
6572748.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
1,490
1,120
6573851.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
16,690
16,017
6574331.SQ.FTS.B,
Zero
Cpn,
10/11/24
..
4,323
4,216
6575241.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
1,496
1,448
6575286.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
588
576
6575350.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
16,882
16,645
6576266.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
2,055
1,585
6577747.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
628
612
6577981.SQ.FTS.B,
Zero
Cpn,
10/12/24
..
10,021
9,003
6580068.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
10,870
8,696
6580399.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
2,934
2,654
6580754.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
6,212
4,462
6580943.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
16,900
15,629
6581786.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
2,024
1,878
6581897.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
8,891
8,328
6582337.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
3,013
2,204
6582712.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
906
882
6582733.SQ.FTS.B,
Zero
Cpn,
10/13/24
..
1,224
892
6584141.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
1,950
1,911
6584272.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
886
869
6584321.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
2,556
2,483
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6584430.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
$
2,257
$
2,235
6584904.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
4,492
4,414
6585083.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
2,085
2,048
6585188.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
15,391
8,642
6585598.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
9,164
8,535
6585961.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
3,914
3,812
6586037.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
4,817
4,761
6586332.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
956
924
6586488.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
744
667
6586553.SQ.FTS.B,
Zero
Cpn,
10/14/24
..
564
555
6586666.SQ.FTS.B,
Zero
Cpn,
10/15/24
..
2,142
2,066
6586764.SQ.FTS.B,
Zero
Cpn,
10/15/24
..
5,875
5,758
6586996.SQ.FTS.B,
Zero
Cpn,
10/15/24
..
2,233
2,152
6587135.SQ.FTS.B,
Zero
Cpn,
10/15/24
..
873
591
6587152.SQ.FTS.B,
Zero
Cpn,
10/15/24
..
5,510
5,388
6587662.SQ.FTS.B,
Zero
Cpn,
10/16/24
..
2,014
1,949
6587726.SQ.FTS.B,
Zero
Cpn,
10/16/24
..
4,661
4,405
6587839.SQ.FTS.B,
Zero
Cpn,
10/16/24
..
5,080
4,918
6588192.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
2,363
2,323
6588340.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
687
676
6588371.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
1,272
1,259
6588545.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
6,992
6,873
6589018.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
6,827
6,690
6589821.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
2,125
2,072
6589877.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
2,192
1,993
6589926.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
24,070
22,975
6591053.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
7,374
7,215
6591405.SQ.FTS.B,
Zero
Cpn,
10/17/24
..
5,184
5,039
6591444.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
1,956
655
6591519.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
18,371
17,774
6592468.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
26,389
16,616
6592840.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
1,167
1,152
6592890.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
1,477
1,313
6593036.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
1,356
1,308
6593081.SQ.FTS.B,
Zero
Cpn,
10/18/24
..
27,448
25,662
6594535.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
11,039
10,554
6595155.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
1,661
1,616
6595336.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
9,918
9,544
6595701.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
1,048
1,028
6596278.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
26,916
26,014
6596934.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
2,696
2,639
6597134.SQ.FTS.B,
Zero
Cpn,
10/19/24
..
4,607
4,479
6600209.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
3,868
3,766
6600369.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
4,414
4,289
6600558.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
1,219
1,080
6600631.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
3,052
2,984
6600811.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
1,191
1,165
6601726.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
195
185
6601739.SQ.FTS.B,
Zero
Cpn,
10/20/24
..
5,295
5,173
6601801.SQ.FTS.B,
Zero
Cpn,
10/21/24
..
47,320
45,766
6603765.SQ.FTS.B,
Zero
Cpn,
10/21/24
..
12,270
11,241
6604282.SQ.FTS.B,
Zero
Cpn,
10/21/24
..
580
530
6604327.SQ.FTS.B,
Zero
Cpn,
10/21/24
..
438
427
6604385.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
907
887
6604416.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
499
475
6604422.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
622
604
6604437.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
9,942
9,828
6604802.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
2,825
2,779
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6604895.SQ.FTS.B,
Zero
Cpn,
10/22/24
..
$
6,257
$
6,139
6605226.SQ.FTS.B,
Zero
Cpn,
10/23/24
..
10,995
10,092
6605375.SQ.FTS.B,
Zero
Cpn,
10/23/24
..
1,575
811
6605987.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
18,365
15,157
6607172.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
1,860
1,841
6607385.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
3,796
3,601
6607464.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
29,853
29,235
6608364.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
1,308
994
6608375.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
1,568
1,485
6608419.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
6,157
5,921
6608485.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
2,084
2,045
6608563.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
3,648
3,488
6608623.SQ.FTS.B,
Zero
Cpn,
10/24/24
..
4,459
4,295
6608756.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
9,255
6,717
6609720.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
8,323
7,377
6610005.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
3,568
3,530
6610240.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
6,749
6,182
6610498.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
8,521
7,292
6610854.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
1,455
1,369
6610873.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
27,575
26,551
6611559.SQ.FTS.B,
Zero
Cpn,
10/25/24
..
8,798
7,805
6611748.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
2,023
1,907
6612175.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
3,499
3,318
6612559.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
860
846
6612738.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
6,429
5,612
6613071.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
33,784
32,549
6614457.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
3,819
3,498
6614647.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
1,163
1,140
6614776.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
1,507
1,384
6614831.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
802
782
6614872.SQ.FTS.B,
Zero
Cpn,
10/26/24
..
4,305
4,216
6616874.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
3,430
3,233
6617414.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
5,739
4,417
6617695.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
4,821
4,740
6618263.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
616
612
6618490.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
30
30
6618582.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
1,041
1,028
6619177.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
6,739
5,702
6619658.SQ.FTS.B,
Zero
Cpn,
10/27/24
..
10,764
10,497
6620546.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
2,903
2,763
6620693.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
8,453
8,327
6621282.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
3,602
3,527
6621487.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
804
399
6621588.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
3,485
3,352
6621876.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
257
252
6622042.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
3,132
3,053
6622222.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
443
432
6622270.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
5,128
4,951
6622378.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
2,875
2,826
6622629.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
2,159
2,126
6623527.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
915
900
6623561.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
1,827
1,630
6623607.SQ.FTS.B,
Zero
Cpn,
10/28/24
..
2,830
1,264
6624151.SQ.FTS.B,
Zero
Cpn,
10/29/24
..
21,218
20,288
6624688.SQ.FTS.B,
Zero
Cpn,
10/29/24
..
1,706
1,462
6624957.SQ.FTS.B,
Zero
Cpn,
10/30/24
..
3,396
1,395
6625004.SQ.FTS.B,
Zero
Cpn,
10/30/24
..
162
156
6625012.SQ.FTS.B,
Zero
Cpn,
10/30/24
..
11,737
11,506
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6625388.SQ.FTS.B,
Zero
Cpn,
10/30/24
..
$
1,323
$
1,311
6625511.SQ.FTS.B,
Zero
Cpn,
10/30/24
..
4,377
4,264
6625822.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
4,324
3,886
6626404.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
2,673
2,291
6626526.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
572
483
6626560.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
3,560
3,472
6626756.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
30,681
29,943
6627906.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
8,009
6,889
6628077.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
616
595
6628104.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
8,424
2,961
6628247.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
8,964
8,440
6628495.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
9,472
9,207
6628906.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
8,250
5,751
6629413.SQ.FTS.B,
Zero
Cpn,
11/01/24
..
2,450
2,337
6629767.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
1,025
995
6629787.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
7,692
5,024
6629946.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
2,626
2,428
6630025.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
14,540
13,400
6630743.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
9,764
9,354
6631137.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
1,220
1,162
6631651.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
910
862
6631689.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
14,956
14,433
6632388.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
6,006
4,017
6632563.SQ.FTS.B,
Zero
Cpn,
11/02/24
..
594
584
6633124.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
2,625
2,478
6633231.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
716
684
6633292.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
2,465
2,369
6634473.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
1,239
1,194
6634505.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
1,088
1,050
6634580.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
2,285
2,191
6634647.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
8,385
8,180
6634848.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
11,122
9,544
6635306.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
2,668
2,467
6635374.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
1,245
1,068
6635391.SQ.FTS.B,
Zero
Cpn,
11/03/24
..
24,915
24,408
6637887.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
1,330
1,293
6638301.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
4,887
4,803
6638629.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
2,632
2,496
6639032.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
12,807
10,091
6639430.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
163
161
6639559.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
166
163
6639798.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
294
289
6639843.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
2,071
1,330
6639899.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
2,729
2,141
6640094.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
3,117
1,292
6640162.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
1,316
1,282
6640238.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
9,113
8,782
6640554.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
915
872
6640568.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
286
282
6640769.SQ.FTS.B,
Zero
Cpn,
11/04/24
..
16,188
15,760
6641366.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
342
298
6641408.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
1,039
841
6641527.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
8,113
7,216
6641788.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
1,794
1,683
6641907.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
3,766
2,586
6642090.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
2,372
1,849
6642127.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
1,889
1,842
6642261.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
914
888
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6642327.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
$
3,788
$
3,424
6642469.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
1,058
1,047
6642636.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
24,035
23,354
6643396.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
5,385
5,015
6644191.SQ.FTS.B,
Zero
Cpn,
11/05/24
..
51,928
50,173
6644584.SQ.FTS.B,
Zero
Cpn,
11/06/24
..
6,323
6,115
6645017.SQ.FTS.B,
Zero
Cpn,
11/06/24
..
948
901
6645052.SQ.FTS.B,
Zero
Cpn,
11/06/24
..
3,077
3,002
6645190.SQ.FTS.B,
Zero
Cpn,
11/06/24
..
4,352
4,186
6645308.SQ.FTS.B,
Zero
Cpn,
11/07/24
..
1,195
1,177
6645366.SQ.FTS.B,
Zero
Cpn,
11/07/24
..
1,529
1,473
6645497.SQ.FTS.B,
Zero
Cpn,
11/07/24
..
4,810
4,770
6646093.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
2,220
2,139
6646233.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
372
366
6647296.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
4,104
3,551
6647698.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
571
566
6648033.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
7,281
6,401
6648232.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
22,805
21,741
6649005.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
2,121
2,061
6649077.SQ.FTS.B,
Zero
Cpn,
11/08/24
..
11,143
10,690
6649600.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
1,992
1,640
6649660.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
2,509
2,320
6649882.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
738
544
6649911.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
5,672
5,571
6650629.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
3,552
3,281
6650770.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
19,709
17,681
6651402.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
2,701
2,380
6651437.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
905
527
6651688.SQ.FTS.B,
Zero
Cpn,
11/09/24
..
54,046
48,588
6652967.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
5,236
5,031
6653184.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
10,834
10,465
6653850.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
803
778
6653918.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
904
843
6653960.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
1,634
1,552
6654077.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
11,771
11,442
6654402.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
533
530
6654448.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
3,430
3,332
6654571.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
2,564
2,520
6654712.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
2,104
2,050
6654772.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
11,508
10,985
6655117.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
556
544
6655130.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
983
705
6655176.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
3,001
2,833
6655279.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
8,644
6,164
6655452.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
2,750
2,478
6655499.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
406
372
6655538.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
8,248
5,042
6655825.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
3,627
3,509
6655894.SQ.FTS.B,
Zero
Cpn,
11/10/24
..
7,257
6,564
6657882.SQ.FTS.B,
Zero
Cpn,
11/11/24
..
67,715
53,265
6660329.SQ.FTS.B,
Zero
Cpn,
11/11/24
..
27,421
26,666
6661587.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
5,216
3,834
6662189.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
3,205
2,568
6662341.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
2,376
2,222
6662501.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
3,546
1,878
6662596.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
1,059
969
6662849.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
4,483
3,754
6662933.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
1,474
1,370
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6662983.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
$
2,969
$
2,677
6663098.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
20,236
19,272
6663871.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
5,802
5,576
6664005.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
5,426
2,293
6664093.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
1,860
1,820
6664138.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
879
592
6664180.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
7,830
7,643
6664532.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
560
523
6664549.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
2,704
2,550
6664703.SQ.FTS.B,
Zero
Cpn,
11/12/24
..
2,322
1,702
6664793.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
11,138
10,076
6664985.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
544
532
6664999.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
3,137
3,082
6665128.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
4,283
4,081
6665226.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
10,147
9,487
6665478.SQ.FTS.B,
Zero
Cpn,
11/13/24
..
535
527
6665514.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
1,573
1,534
6665553.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
2,501
2,216
6665588.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
2,535
2,399
6665744.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
351
339
6665779.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
1,293
739
6665796.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
986
958
6665868.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
2,791
2,197
6665968.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
777
734
6666009.SQ.FTS.B,
Zero
Cpn,
11/14/24
..
7,269
7,140
6666581.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
15,082
14,634
6667637.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
9,410
9,227
6668267.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
2,304
2,275
6668411.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
1,289
1,250
6668497.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
2,039
1,916
6668558.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
1,994
1,952
6668630.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
614
600
6668701.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
591
574
6668714.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
1,947
1,890
6668780.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
9,355
6,532
6668981.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
6,316
5,687
6669111.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
142
140
6669161.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
5,393
5,158
6669301.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
1,825
1,185
6669342.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
768
719
6669357.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
3,575
3,500
6669451.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
5,128
3,644
6669508.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
6,293
5,693
6669674.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
877
745
6669707.SQ.FTS.B,
Zero
Cpn,
11/15/24
..
23,804
19,999
6670037.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
6,805
4,218
6670357.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
9,511
8,015
6671398.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
10,903
10,666
6671816.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
17,096
16,551
6672262.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
2,864
2,641
6672313.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
5,132
4,898
6672424.SQ.FTS.B,
Zero
Cpn,
11/16/24
..
49,874
37,254
6673493.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
5,235
4,901
6673736.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
23,899
22,514
6674753.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
2,484
2,420
6674843.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
825
736
6674912.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
1,193
1,086
6674961.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
6,115
5,552
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6675190.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
$
2,974
$
2,887
6675254.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
5,891
5,785
6675448.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
2,329
2,263
6675558.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
4,074
2,267
6675711.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
5,328
5,167
6675891.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
1,467
891
6675926.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
2,538
2,387
6676011.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
1,852
1,712
6676172.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
1,831
1,779
6676401.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
3,941
3,357
6676490.SQ.FTS.B,
Zero
Cpn,
11/17/24
..
1,423
1,394
6678245.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
6,531
5,581
6678636.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
1,232
1,199
6678696.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
19,755
16,904
6679343.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
7,696
6,939
6679671.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
1,300
1,283
6679858.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
2,072
2,042
6680333.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
2,313
2,254
6680421.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
18,859
17,579
6680996.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
8,203
8,101
6681393.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
3,914
3,121
6681455.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
2,538
2,487
6681539.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
2,250
2,186
6681578.SQ.FTS.B,
Zero
Cpn,
11/18/24
..
11,163
9,567
6681705.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
4,389
4,254
6681987.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
7,920
7,691
6682519.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
3,141
2,847
6682625.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
3,914
3,792
6682751.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
1,044
966
6682841.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
10,445
10,161
6683722.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
3,081
3,043
6683810.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
2,041
1,527
6683849.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
923
566
6683861.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
26,813
26,049
6684387.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
1,197
661
6684426.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
467
444
6684507.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
452
425
6684513.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
5,979
5,601
6684869.SQ.FTS.B,
Zero
Cpn,
11/19/24
..
9,322
8,464
6685009.SQ.FTS.B,
Zero
Cpn,
11/20/24
..
6,241
5,703
6685109.SQ.FTS.B,
Zero
Cpn,
11/20/24
..
1,844
1,816
6685359.SQ.FTS.B,
Zero
Cpn,
11/20/24
..
924
842
6685425.SQ.FTS.B,
Zero
Cpn,
11/20/24
..
5,793
5,267
6685503.SQ.FTS.B,
Zero
Cpn,
11/20/24
..
941
884
6685741.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
13,613
10,831
6685907.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
7,735
6,864
6686035.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
2,491
2,275
6686086.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
2,029
1,940
6686120.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
1,458
1,355
6686170.SQ.FTS.B,
Zero
Cpn,
11/21/24
..
9,819
9,370
6686639.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
1,144
1,111
6686940.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
6,857
5,740
6687230.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
5,366
5,210
6687436.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
1,416
1,385
6687496.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
1,870
1,803
6687558.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
28,579
27,280
6688457.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
3,848
3,455
6688623.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
2,557
2,082
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6688688.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
$
5,441
$
5,227
6688820.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
6,093
4,074
6688906.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
7,850
7,604
6689152.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
17,884
17,455
6689641.SQ.FTS.B,
Zero
Cpn,
11/22/24
..
4,436
4,402
6689856.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
4,087
3,209
6689979.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
21,885
19,861
6691158.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
14,329
13,752
6691806.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
2,252
2,206
6692002.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
4,321
3,914
6692234.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
4,774
4,592
6692529.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
6,963
6,467
6692715.SQ.FTS.B,
Zero
Cpn,
11/23/24
..
41,079
39,921
6693422.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
1,568
1,431
6693487.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
813
789
6693747.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
465
453
6693785.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
7,802
7,335
6694025.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
8,037
7,705
6694499.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
1,730
1,684
6695405.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
1,532
1,486
6695705.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
19,660
17,895
6696070.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
10,677
9,690
6696323.SQ.FTS.B,
Zero
Cpn,
11/24/24
..
10,148
9,554
6699675.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
6,630
6,051
6699890.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
8,391
8,018
6700802.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
43,134
41,824
6702969.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
3,168
3,070
6703046.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
6,296
6,114
6703676.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
1,372
1,279
6703703.SQ.FTS.B,
Zero
Cpn,
11/25/24
..
35,077
34,026
6704085.SQ.FTS.B,
Zero
Cpn,
11/26/24
..
2,035
1,943
6706191.SQ.FTS.B,
Zero
Cpn,
11/26/24
..
3,457
3,159
6706675.SQ.FTS.B,
Zero
Cpn,
11/26/24
..
4,175
3,931
6707223.SQ.FTS.B,
Zero
Cpn,
11/27/24
..
2,623
2,270
6707845.SQ.FTS.B,
Zero
Cpn,
11/27/24
..
1,968
1,925
6707897.SQ.FTS.B,
Zero
Cpn,
11/27/24
..
17,306
16,660
6708277.SQ.FTS.B,
Zero
Cpn,
11/28/24
..
7,459
7,272
6708472.SQ.FTS.B,
Zero
Cpn,
11/28/24
..
1,560
1,532
6708506.SQ.FTS.B,
Zero
Cpn,
11/28/24
..
6,763
6,497
6708729.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
1,218
1,187
6708811.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
7,103
6,875
6708987.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
7,002
6,381
6709316.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
1,131
747
6709323.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
3,657
3,582
6709403.SQ.FTS.B,
Zero
Cpn,
11/29/24
..
18,159
16,557
6709785.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
11,786
11,473
6714012.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,795
1,349
6714287.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
6,478
6,293
6714559.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,122
773
6714594.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
3,186
3,113
6714782.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
3,584
3,542
6715158.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,883
1,521
6715261.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,539
1,395
6715308.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
2,575
2,071
6715568.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,172
1,128
6715622.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
3,538
2,822
6715777.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
452
436
6715798.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
1,672
1,611
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6716032.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
$
7,020
$
6,569
6716198.SQ.FTS.B,
Zero
Cpn,
11/30/24
..
10,360
9,815
6718425.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
4,542
3,464
6718586.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
4,209
4,073
6718749.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
674
652
6718776.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,866
1,837
6719072.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,801
1,652
6719144.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,993
1,923
6719310.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
5,645
5,420
6719669.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,383
1,295
6719710.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
2,024
1,970
6719810.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,688
807
6719896.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
2,618
2,561
6719998.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,268
1,221
6720277.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
1,725
1,679
6720355.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
3,317
2,307
6720557.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
8,661
8,522
6720935.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
830
663
6720946.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
13,905
12,767
6721312.SQ.FTS.B,
Zero
Cpn,
12/01/24
..
26,948
26,171
6722018.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
258
245
6722086.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
13,479
12,657
6722689.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
2,367
2,221
6722820.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
5,606
5,466
6723980.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
6,857
5,965
6724171.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
4,376
3,569
6724303.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
4,425
4,051
6724464.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
9,907
7,056
6724791.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
776
746
6724841.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
4,695
4,605
6725014.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
1,731
1,676
6725080.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
4,284
4,108
6725346.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
182
178
6725388.SQ.FTS.B,
Zero
Cpn,
12/02/24
..
17,587
17,358
6725593.SQ.FTS.B,
Zero
Cpn,
12/03/24
..
5,022
4,883
6725712.SQ.FTS.B,
Zero
Cpn,
12/03/24
..
13,489
9,320
6726004.SQ.FTS.B,
Zero
Cpn,
12/03/24
..
12,056
11,739
6726296.SQ.FTS.B,
Zero
Cpn,
12/04/24
..
1,053
1,011
6726320.SQ.FTS.B,
Zero
Cpn,
12/04/24
..
2,826
2,712
6726451.SQ.FTS.B,
Zero
Cpn,
12/04/24
..
2,384
2,293
6726510.SQ.FTS.B,
Zero
Cpn,
12/04/24
..
7,147
6,176
6727020.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
7,484
6,856
6727643.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
11,887
11,398
6728151.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
420
416
6728190.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
37,538
36,412
6729082.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
1,491
1,447
6729129.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
929
880
6729149.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
1,779
1,726
6729195.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
1,168
1,143
6729242.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
2,527
2,326
6729311.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
16,422
14,698
6729657.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
3,548
3,403
6729710.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
363
354
6729723.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
4,485
3,052
6729777.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
808
797
6729866.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
743
727
6729931.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
5,439
4,370
6730115.SQ.FTS.B,
Zero
Cpn,
12/05/24
..
4,943
4,788
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6730198.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
$
27,198
$
26,124
6730881.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
10,365
7,353
6731182.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
968
950
6731255.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
6,598
6,309
6731762.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
2,229
2,168
6731838.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
24,528
22,305
6732398.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
1,043
947
6732421.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
520
501
6732450.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
313
305
6732463.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
13,021
12,707
6732866.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
4,775
4,304
6733011.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
1,666
1,644
6733136.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
2,748
2,557
6733215.SQ.FTS.B,
Zero
Cpn,
12/06/24
..
34,261
29,877
6733823.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
2,450
2,368
6733936.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
432
428
6734003.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
8,550
8,201
6734265.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
885
873
6734339.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
92
91
6734359.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
7,724
7,219
6734573.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
19,068
18,330
6735986.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
5,312
5,129
6736202.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
7,216
6,969
6736471.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
6,980
6,600
6736791.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
15,369
14,742
6737164.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
2,143
2,100
6737291.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
1,651
1,540
6737529.SQ.FTS.B,
Zero
Cpn,
12/07/24
..
1,744
1,705
6739517.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
7,879
7,232
6739796.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
558
533
6740942.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
1,236
1,110
6741000.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
28,516
27,159
6742103.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
1,223
1,097
6742131.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
4,807
4,678
6742865.SQ.FTS.B,
Zero
Cpn,
12/08/24
..
3,854
3,801
6743009.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,667
1,576
6743084.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,024
936
6743133.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,406
1,322
6743331.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
11,171
9,210
6743834.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
3,819
3,663
6744187.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,413
1,358
6744250.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
13,155
12,622
6744669.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
14,453
14,091
6745048.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
3,093
2,971
6745247.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
775
721
6745298.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
8,023
7,517
6745936.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
513
481
6745957.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
3,046
2,838
6746047.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
622
608
6746092.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,629
1,608
6746164.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,551
1,355
6746227.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
1,163
1,045
6746243.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
3,952
3,768
6746303.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
2,852
2,808
6746382.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
6,374
6,174
6746489.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
2,516
2,345
6746574.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
317
313
6746610.SQ.FTS.B,
Zero
Cpn,
12/09/24
..
37,721
35,222
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6746683.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
$
2,260
$
2,100
6746867.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
3,421
3,265
6746947.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
1,143
1,092
6746977.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
16,015
11,213
6747181.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
1,300
1,289
6747280.SQ.FTS.B,
Zero
Cpn,
12/10/24
..
5,764
5,484
6747381.SQ.FTS.B,
Zero
Cpn,
12/11/24
..
3,278
3,183
6747474.SQ.FTS.B,
Zero
Cpn,
12/11/24
..
8,829
8,610
6747704.SQ.FTS.B,
Zero
Cpn,
12/11/24
..
7,799
7,582
6747900.SQ.FTS.B,
Zero
Cpn,
12/11/24
..
2,153
2,046
6747947.SQ.FTS.B,
Zero
Cpn,
12/11/24
..
6,796
5,967
6748221.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
2,816
2,747
6748908.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
2,397
2,292
6749058.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
4,772
4,606
6749321.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
13,498
13,246
6749922.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
1,976
1,898
6749980.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
3,151
2,960
6750119.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
1,892
1,815
6750163.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
509
501
6750186.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
2,883
2,795
6750262.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
673
648
6750281.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
518
508
6750314.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
5,361
5,080
6750452.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
1,722
1,681
6750503.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
7,710
7,321
6750663.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
6,099
5,873
6750803.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
9,282
8,723
6751389.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
1,191
1,115
6751424.SQ.FTS.B,
Zero
Cpn,
12/12/24
..
4,954
4,698
6751956.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
1,613
1,586
6752389.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
14,088
13,615
6753008.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
6,957
5,206
6753247.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
14,294
11,886
6753622.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
3,114
2,954
6753796.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
14,161
13,862
6754810.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
978
860
6754849.SQ.FTS.B,
Zero
Cpn,
12/13/24
..
17,770
17,184
6755408.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
982
968
6755575.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
2,066
1,972
6755643.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
3,107
2,723
6755759.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
1,095
1,026
6755811.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
7,190
6,964
6756228.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
2,068
1,504
6756294.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
6,598
4,814
6756506.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
6,887
6,608
6756782.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
1,824
1,619
6756818.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
2,179
2,092
6756921.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
5,955
5,404
6757116.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
708
671
6757140.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
8,356
8,020
6757268.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
4,890
4,698
6757454.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
2,668
2,539
6757541.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
7,599
6,956
6758000.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
1,477
1,452
6758068.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
2,170
2,041
6758148.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
1,371
1,302
6758188.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
721
714
6758233.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
1,975
1,894
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6758298.SQ.FTS.B,
Zero
Cpn,
12/14/24
..
$
45,236
$
43,731
6762124.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
1,524
1,464
6762246.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
2,026
1,599
6762339.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
11,310
10,954
6763242.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
19,346
18,541
6764023.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
3,185
1,190
6764093.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
11,203
10,761
6764489.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
31,522
27,719
6765245.SQ.FTS.B,
Zero
Cpn,
12/15/24
..
47,605
43,125
6765822.SQ.FTS.B,
Zero
Cpn,
12/16/24
..
2,962
2,887
6766799.SQ.FTS.B,
Zero
Cpn,
12/16/24
..
53,348
51,906
6768969.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
2,174
2,124
6769042.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
1,577
1,499
6769066.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
8,090
7,821
6769341.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
8,511
7,050
6769494.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
1,843
1,750
6769533.SQ.FTS.B,
Zero
Cpn,
12/17/24
..
5,414
5,317
6769728.SQ.FTS.B,
Zero
Cpn,
12/18/24
..
5,003
4,812
6769864.SQ.FTS.B,
Zero
Cpn,
12/18/24
..
9,309
8,952
6770345.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
6,430
6,215
6770530.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
1,236
1,186
6770555.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
6,861
6,290
6770741.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
3,068
3,006
6770869.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
2,126
2,073
6770923.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
3,460
3,310
6770986.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
1,085
1,064
6771027.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
6,031
5,882
6771134.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
18,561
11,998
6771304.SQ.FTS.B,
Zero
Cpn,
12/19/24
..
28,081
26,961
6772311.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
51,661
49,859
6773708.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
1,111
1,082
6773812.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
532
511
6773825.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
5,697
5,208
6773883.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
3,911
3,702
6773985.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
10,755
10,256
6774211.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
10,921
10,565
6774360.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
11,687
11,158
6774551.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
17,810
16,955
6774838.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
1,501
1,475
6774854.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
950
912
6774858.SQ.FTS.B,
Zero
Cpn,
12/20/24
..
28,434
27,613
6774958.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
16,865
16,263
6775668.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
782
608
6775693.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
7,321
6,534
6775850.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
3,368
3,231
6775919.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
25,145
20,999
6776459.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
1,081
1,058
6776500.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
57,779
56,262
6777834.SQ.FTS.B,
Zero
Cpn,
12/21/24
..
725
710
6779448.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
4,109
3,947
6779581.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
32,005
28,356
6780851.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
854
835
6781139.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
1,894
1,846
6781202.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
2,179
2,083
6781272.SQ.FTS.B,
Zero
Cpn,
12/22/24
..
50,519
46,165
6782880.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
6,191
5,994
6783247.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
1,900
1,786
6783369.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
1,851
1,687
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6783442.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
$
2,414
$
2,270
6783863.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
1,676
1,467
6784214.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
15,199
14,403
6784735.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
25,986
25,315
6785742.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
3,492
3,339
6785833.SQ.FTS.B,
Zero
Cpn,
12/23/24
..
8,905
8,787
6787099.SQ.FTS.B,
Zero
Cpn,
12/25/24
..
6,406
6,191
6787540.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
11,542
11,221
6788275.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
1,554
1,519
6788376.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
9,028
8,341
6788695.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
1,732
1,680
6788785.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
9,862
8,274
6789025.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
9,413
8,484
6789460.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
6,912
6,618
6790119.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
9,359
8,975
6790407.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
8,451
8,066
6790701.SQ.FTS.B,
Zero
Cpn,
12/26/24
..
14,351
13,581
6790990.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
635
616
6791071.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
20,784
18,955
6791631.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
1,986
1,903
6791771.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
9,001
8,723
6792040.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
1,374
1,352
6792087.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
2,092
2,028
6792152.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
1,324
1,287
6792217.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
3,056
2,839
6792314.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
6,973
4,805
6792440.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
12,705
12,020
6793771.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
1,424
1,365
6793816.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
907
813
6793845.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
4,460
4,318
6793971.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
32,908
30,941
6794636.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
351
341
6794663.SQ.FTS.B,
Zero
Cpn,
12/27/24
..
42,989
41,258
6795269.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,066
1,034
6795315.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,229
1,174
6795391.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,553
1,532
6795506.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
21,762
20,906
6796301.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
13,208
12,954
6796713.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
331
327
6796730.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,435
1,411
6796824.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,401
1,330
6796843.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
17,441
17,013
6797114.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
14,021
12,826
6797393.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
2,309
2,256
6797472.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
1,240
965
6797487.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
8,194
7,848
6797675.SQ.FTS.B,
Zero
Cpn,
12/28/24
..
39,501
31,249
6800044.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
5,245
2,987
6800228.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
4,213
4,050
6800374.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
6,417
6,167
6800644.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
7,729
7,590
6801003.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
14,243
13,067
6801359.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
6,347
6,150
6801988.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
3,672
3,418
6802056.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
227
225
6802079.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
12,668
11,804
6802481.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
1,022
677
6802494.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
2,645
2,579
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6802576.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
$
3,435
$
2,477
6802609.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
5,565
5,391
6802734.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
1,839
1,787
6802842.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
6,091
5,845
6803048.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
2,028
1,999
6803097.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
6,833
6,648
6803212.SQ.FTS.B,
Zero
Cpn,
12/29/24
..
44,593
42,683
6804745.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
1,589
1,445
6804901.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
4,709
4,429
6805012.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
3,863
2,344
6805130.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
6,253
5,897
6805400.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
8,984
7,592
6805682.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
4,717
4,140
6805923.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
3,433
3,004
6806017.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
16,806
15,818
6806677.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
3,293
2,191
6806781.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
3,307
3,137
6806888.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
36,717
31,043
6807979.SQ.FTS.B,
Zero
Cpn,
12/30/24
..
13,568
13,313
6808162.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
2,953
2,857
6808206.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
2,818
2,749
6808256.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
794
750
6808314.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
4,581
4,520
6808439.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
790
780
6808546.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
711
698
6808563.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
979
954
6808602.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
2,729
2,568
6808668.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
5,206
5,111
6808852.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
3,621
3,505
6808928.SQ.FTS.B,
Zero
Cpn,
1/01/25
...
18,357
17,320
6809267.SQ.FTS.B,
Zero
Cpn,
1/02/25
...
5,011
4,813
6809363.SQ.FTS.B,
Zero
Cpn,
1/02/25
...
769
748
6809383.SQ.FTS.B,
Zero
Cpn,
1/02/25
...
9,625
8,541
6809623.SQ.FTS.B,
Zero
Cpn,
1/02/25
...
9,477
8,824
6809914.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
1,047
997
6809989.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
14,254
13,777
6810642.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
6,058
4,370
6810830.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
1,104
1,042
6810848.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
2,348
2,271
6810914.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
13,077
12,491
6811193.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
8,273
7,926
6811388.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
2,419
1,184
6811437.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
1,590
1,514
6811483.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
14,610
10,119
6811723.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
20,666
19,787
6812218.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
1,703
1,627
6812388.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
96
95
6812453.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
1,827
1,762
6812517.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
14,910
13,734
6812850.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
2,268
2,202
6812901.SQ.FTS.B,
Zero
Cpn,
1/03/25
...
17,233
16,500
6813248.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
534
508
6813269.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
1,527
1,517
6813347.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
4,442
4,363
6813490.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
3,382
3,086
6813580.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
1,916
1,877
6813615.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
1,985
1,900
6813645.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
16,186
15,528
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6813980.SQ.FTS.B,
Zero
Cpn,
1/04/25
...
$
3,031
$
2,924
6814239.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
2,565
1,942
6814415.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
5,104
4,953
6814737.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
496
334
6814746.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
924
887
6814760.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
1,807
1,707
6814811.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
584
571
6814971.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
3,205
3,039
6815092.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
1,972
1,830
6815132.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
1,865
1,835
6815234.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
499
482
6815258.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
4,743
4,567
6815367.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
2,109
2,030
6815433.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
1,328
1,196
6815459.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
32,374
31,355
6816296.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
1,294
1,252
6816368.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
7,675
6,194
6816521.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
2,331
2,283
6816582.SQ.FTS.B,
Zero
Cpn,
1/05/25
...
40,413
38,278
6818955.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
7,814
6,894
6819086.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
4,033
3,538
6819252.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
4,886
4,669
6819440.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,130
1,081
6819485.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,900
1,853
6819609.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,194
1,184
6819723.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,153
1,123
6819849.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
5,133
4,771
6820050.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
12,102
9,643
6820387.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,259
1,057
6820626.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
983
960
6820693.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
21,541
19,771
6820983.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
1,194
1,157
6821028.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
42,230
41,111
6822097.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
3,689
3,539
6822254.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
894
810
6822297.SQ.FTS.B,
Zero
Cpn,
1/06/25
...
9,279
8,986
6822497.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
2,959
2,813
6822573.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
9,951
9,421
6822823.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
4,558
4,402
6823228.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
1,989
1,886
6823276.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
5,404
4,993
6823439.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
15,782
13,597
6823811.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
2,496
2,305
6823890.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
9,671
9,168
6824197.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
926
889
6824236.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
3,338
3,280
6824389.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
6,261
6,046
6824568.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
5,458
5,379
6824822.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
1,448
1,399
6824870.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
2,328
2,197
6824908.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
21,441
20,011
6825473.SQ.FTS.B,
Zero
Cpn,
1/07/25
...
56,782
54,440
6825757.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
4,500
4,353
6825984.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
1,811
1,783
6826076.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
12,191
11,532
6826371.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
5,697
5,496
6826532.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
4,035
2,647
6826603.SQ.FTS.B,
Zero
Cpn,
1/08/25
...
14,708
13,835
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6826906.SQ.FTS.B,
Zero
Cpn,
1/09/25
...
$
14,772
$
14,025
6827190.SQ.FTS.B,
Zero
Cpn,
1/09/25
...
3,665
3,503
6827303.SQ.FTS.B,
Zero
Cpn,
1/09/25
...
1,186
1,168
6827373.SQ.FTS.B,
Zero
Cpn,
1/09/25
...
8,011
6,602
6828266.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
538
481
6828284.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
5,626
5,097
6828468.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
3,231
3,141
6828723.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
3,665
3,469
6828877.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
2,851
2,273
6828941.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
1,061
916
6829097.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
1,957
1,914
6829136.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
43,425
40,928
6829626.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
5,142
4,997
6829735.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
2,328
2,268
6829785.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
4,974
4,602
6830180.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
6,707
6,240
6830364.SQ.FTS.B,
Zero
Cpn,
1/10/25
...
31,858
28,638
6830671.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
609
583
6830723.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
9,767
9,510
6831057.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
3,852
3,748
6831256.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
5,530
5,264
6831458.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
2,544
2,460
6831517.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
7,917
7,624
6831725.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
1,440
814
6831783.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
4,692
4,558
6831980.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
538
517
6831995.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
871
864
6832051.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
635
611
6832093.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
1,131
918
6832118.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
5,871
5,590
6832259.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
3,852
3,729
6832343.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
1,917
1,869
6832371.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
7,367
6,817
6832524.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
636
630
6832546.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
10,652
10,304
6832929.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
5,720
5,600
6833212.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
4,670
4,505
6833319.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
1,679
1,642
6833356.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
26,073
18,399
6833692.SQ.FTS.B,
Zero
Cpn,
1/11/25
...
8,489
8,120
6833875.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
11,060
9,254
6834221.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
699
691
6834279.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
777
735
6834301.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
4,451
4,240
6834544.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
1,635
1,563
6834572.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
12,680
12,249
6835014.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
1,645
1,573
6835238.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
55,177
51,769
6836269.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
1,983
1,781
6836329.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
4,800
4,605
6836478.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
2,186
2,094
6836515.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
8,108
7,056
6836687.SQ.FTS.B,
Zero
Cpn,
1/12/25
...
3,753
3,623
6838613.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
5,278
5,065
6838796.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
1,992
1,123
6838880.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
7,707
6,816
6839257.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
3,397
3,141
6839356.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
8,720
8,048
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6839643.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
$
627
$
515
6839650.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
1,335
1,307
6839928.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
376
372
6839957.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
4,368
4,203
6840112.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
21,138
19,707
6840598.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
24,760
19,968
6841575.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
452
445
6841626.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
5,625
4,041
6841788.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
7,254
7,081
6842120.SQ.FTS.B,
Zero
Cpn,
1/13/25
...
7,518
7,243
6842194.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
387
377
6842431.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
6,474
5,994
6842726.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
1,486
1,456
6842944.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
1,429
1,373
6843000.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
1,640
1,504
6843045.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
12,808
12,010
6843608.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
1,271
1,204
6843667.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
32,216
31,087
6844587.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
22,649
21,487
6845183.SQ.FTS.B,
Zero
Cpn,
1/14/25
...
4,995
4,770
6845302.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
709
699
6845337.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
2,814
2,761
6845396.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
2,823
2,594
6845456.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
2,396
2,318
6845501.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
3,503
3,410
6845621.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
13,662
13,081
6845875.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
3,829
3,686
6845947.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
413
406
6845960.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
3,993
3,329
6846042.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
1,419
1,399
6846098.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
1,735
1,675
6846131.SQ.FTS.B,
Zero
Cpn,
1/15/25
...
2,355
2,144
6846176.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
7,100
6,752
6846348.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
749
740
6846421.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
2,479
2,417
6846652.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
974
948
6846670.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
5,377
5,186
6846765.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
1,469
1,407
6846797.SQ.FTS.B,
Zero
Cpn,
1/16/25
...
5,572
5,381
6847036.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,119
1,089
6847053.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,117
1,062
6847075.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,587
1,556
6847111.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
10,731
9,926
6847660.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
3,638
3,545
6847769.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
12,337
11,223
6848159.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
3,271
3,166
6848220.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,714
1,639
6848265.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,166
1,086
6848288.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
10,493
10,337
6848565.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
26,967
25,582
6849119.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
6,631
5,186
6849233.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
10,476
10,044
6849498.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
8,973
8,725
6849679.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
1,960
1,908
6849711.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
628
567
6849735.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
2,663
2,527
6849785.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
10,150
9,809
6850149.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
2,969
2,890
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6850198.SQ.FTS.B,
Zero
Cpn,
1/17/25
...
$
1,202
$
1,172
6850370.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
2,144
2,031
6850462.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
1,174
1,155
6850514.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
5,489
5,297
6850673.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
264
259
6850693.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
17,324
16,683
6851281.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
10,758
10,319
6851555.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
21,516
20,756
6852057.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
11,375
10,971
6852293.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
15,316
14,574
6852512.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
3,057
3,008
6852615.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
1,312
705
6852644.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
16,642
15,395
6853018.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
7,199
6,887
6853136.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
12,494
11,349
6853384.SQ.FTS.B,
Zero
Cpn,
1/18/25
...
8,032
7,713
6853607.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
3,473
3,333
6853727.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
11,102
10,322
6854147.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
1,518
1,467
6854221.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
1,402
1,284
6854306.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
788
761
6854339.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
16,897
15,942
6854811.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
1,527
1,503
6854874.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
477
464
6854899.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
13,179
12,827
6855209.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
4,187
4,066
6855301.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
24,382
22,437
6855849.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
6,556
6,320
6856022.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
1,651
1,006
6856126.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
1,080
1,013
6856176.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
10,048
9,852
6856450.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
462
454
6856480.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
971
805
6856503.SQ.FTS.B,
Zero
Cpn,
1/19/25
...
2,789
2,701
6858167.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
8,327
7,788
6858450.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
2,639
2,508
6858621.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
973
890
6858689.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
4,145
3,844
6858888.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
5,299
5,163
6859049.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
2,524
2,446
6859134.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
8,311
7,874
6859384.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
22,875
21,354
6860233.SQ.FTS.B,
Zero
Cpn,
1/20/25
...
71,544
67,347
6861615.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
4,434
4,243
6862863.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
2,375
2,180
6862957.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
6,961
4,868
6863147.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
12,658
12,005
6863421.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
7,347
6,850
6863654.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
3,806
3,725
6863856.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
20,798
20,153
6864440.SQ.FTS.B,
Zero
Cpn,
1/21/25
...
30,646
29,914
6864609.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
2,468
2,384
6864687.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
15,614
14,999
6864999.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
894
884
6865054.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
2,641
2,567
6865089.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
5,844
5,561
6865186.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
5,045
4,920
6865269.SQ.FTS.B,
Zero
Cpn,
1/22/25
...
2,519
2,416
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6865428.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
$
3,733
$
3,627
6865503.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
1,814
1,717
6865537.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
1,068
973
6865566.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
3,793
3,662
6865627.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
2,663
2,575
6865689.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
2,921
2,874
6865793.SQ.FTS.B,
Zero
Cpn,
1/23/25
...
1,903
1,867
6866189.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
821
727
6866209.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
1,382
1,297
6866317.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
452
442
6866356.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
8,337
8,003
6866804.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
4,872
3,045
6866935.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
802
750
6866967.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
5,526
5,322
6867103.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
3,388
2,863
6867196.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
2,887
2,366
6867236.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
574
563
6867264.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
7,419
7,146
6867437.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
1,059
1,022
6867467.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
7,736
7,398
6867611.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
2,355
2,079
6867652.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
2,379
2,314
6867691.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
1,912
1,793
6867729.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
895
789
6867755.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
32,636
31,389
6868391.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
3,861
2,221
6868415.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
11,457
10,951
6868587.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
13,902
13,393
6868847.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
4,488
4,079
6868908.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
7,691
7,422
6869072.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
2,923
2,794
6869137.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
16,085
15,525
6869440.SQ.FTS.B,
Zero
Cpn,
1/24/25
...
3,598
3,429
6869513.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
4,123
3,355
6869755.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
2,542
2,304
6869935.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,992
1,900
6869981.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
2,718
2,650
6870054.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,698
1,516
6870103.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
22,745
21,500
6870826.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,225
1,185
6870842.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,124
1,072
6870865.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,282
2,862
6870905.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
9,413
9,080
6870998.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
9,203
8,874
6871155.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,560
2,307
6871205.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,238
3,104
6871266.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,263
2,969
6871369.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
7,033
6,527
6871453.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,618
1,564
6871477.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
2,349
2,277
6871539.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
8,837
8,590
6871671.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,048
2,973
6871735.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
9,710
9,319
6871856.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
4,093
4,038
6871986.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
610
604
6872006.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
5,884
5,572
6872132.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
3,827
3,701
6872188.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
2,982
2,826
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6872242.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
$
1,215
$
1,161
6872252.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
1,262
1,236
6872367.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
5,057
4,808
6872469.SQ.FTS.B,
Zero
Cpn,
1/25/25
...
6,651
6,377
6872654.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
4,888
4,717
6872741.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
855
826
6872768.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
946
897
6872794.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
290
284
6873066.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
4,882
4,737
6873383.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,156
1,051
6873424.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
4,551
4,407
6873530.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
7,332
5,808
6873680.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
788
447
6873687.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,756
1,691
6873718.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
411
393
6873742.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
3,861
3,824
6873908.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,920
1,894
6873961.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,281
1,252
6874004.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
840
822
6874035.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
2,477
2,284
6874217.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
15,941
15,530
6874544.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,585
1,538
6874588.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
4,042
3,904
6874616.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,458
1,416
6874644.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,950
1,724
6874679.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,254
1,156
6874849.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
689
669
6874864.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
5,603
5,379
6874983.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
1,754
1,709
6875037.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
5,245
5,018
6875105.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
14,610
14,249
6875459.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
5,554
5,362
6875569.SQ.FTS.B,
Zero
Cpn,
1/26/25
...
6,747
6,251
6877236.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
17,474
16,363
6877754.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
818
790
6877778.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
3,078
3,010
6878147.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
4,485
4,330
6878250.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
18,739
16,609
6878624.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
2,326
2,044
6878704.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
9,326
8,895
6878992.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
7,210
6,671
6879176.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
3,887
3,240
6879228.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
1,760
1,670
6879230.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
5,277
4,873
6879329.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
1,779
1,709
6879375.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
35,392
32,449
6880154.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
504
483
6880167.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
2,286
2,196
6880203.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
4,629
4,524
6880320.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
7,153
6,673
6880561.SQ.FTS.B,
Zero
Cpn,
1/27/25
...
25,617
23,738
6880856.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
2,729
2,211
6880946.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
7,432
7,154
6881277.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
3,319
3,240
6881645.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
18,393
17,784
6882508.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
3,737
3,539
6882641.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
12,784
12,011
6882976.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
9,952
9,231
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
49
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6883232.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
$
1,385
$
1,292
6883287.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
2,666
2,589
6883392.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
3,405
3,039
6883473.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
1,566
1,515
6883510.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
11,170
8,979
6883690.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
1,973
1,823
6883717.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
4,793
4,498
6883818.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
2,367
2,270
6883889.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
978
963
6883907.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
818
675
6883923.SQ.FTS.B,
Zero
Cpn,
1/28/25
...
3,786
3,547
6884103.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
5,612
5,368
6884217.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
8,662
8,364
6884328.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
2,345
2,176
6884366.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
2,731
2,262
6884403.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
1,472
1,217
6884421.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
4,671
4,285
6884500.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
4,824
3,316
6884565.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
1,372
1,344
6884599.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
5,870
5,653
6884694.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
1,985
1,932
6884735.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
2,072
1,983
6884787.SQ.FTS.B,
Zero
Cpn,
1/29/25
...
5,525
5,109
6884872.SQ.FTS.B,
Zero
Cpn,
1/30/25
...
2,098
2,057
6884939.SQ.FTS.B,
Zero
Cpn,
1/30/25
...
21,376
20,040
6885300.SQ.FTS.B,
Zero
Cpn,
1/30/25
...
3,640
3,499
6885371.SQ.FTS.B,
Zero
Cpn,
1/30/25
...
5,794
3,850
6885756.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
1,104
1,086
6885863.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
5,733
5,513
6886115.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
5,798
5,680
6886483.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
1,151
987
6886508.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
4,471
4,092
6886652.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
2,049
1,997
6886711.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
19,004
18,344
6887353.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
4,428
4,226
6887470.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
9,506
9,071
6887664.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
1,740
1,723
6887745.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
3,502
3,267
6887828.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
2,480
2,411
6887898.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
33,008
32,055
6888667.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
16,851
16,102
6888979.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
6,101
5,883
6889093.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
835
824
6889109.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
1,974
1,422
6889119.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
3,584
2,777
6889176.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
2,544
2,457
6889216.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
664
634
6889240.SQ.FTS.B,
Zero
Cpn,
1/31/25
...
4,285
3,660
6889376.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
2,191
2,099
6889468.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
7,759
7,437
6889637.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
447
434
6889680.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
2,905
2,693
6889743.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
2,234
2,164
6889828.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
13,519
12,766
6890345.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
1,942
1,646
6890420.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
1,849
1,778
6890465.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
655
636
6890486.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
3,667
3,523
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6890578.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
$
1,616
$
1,506
6890641.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
1,721
1,596
6890783.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
15,108
14,481
6891067.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
5,566
5,284
6891224.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
3,533
3,414
6891310.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
27,703
26,653
6892101.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
4,252
4,125
6892289.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
7,094
6,712
6892473.SQ.FTS.B,
Zero
Cpn,
2/01/25
...
29,866
28,587
6892842.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
1,400
1,034
6892902.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
1,831
1,761
6892957.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
974
944
6893023.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
18,191
15,870
6893617.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
3,793
3,654
6893704.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
44,577
42,341
6894789.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
7,160
6,908
6894990.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
3,709
3,484
6895068.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
3,194
2,920
6895139.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
1,442
1,385
6895183.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
2,606
2,513
6895282.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
4,907
4,657
6895440.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
7,171
6,865
6895588.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
10,603
9,924
6895827.SQ.FTS.B,
Zero
Cpn,
2/02/25
...
3,588
3,458
6897596.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
46,012
44,259
6899085.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
498
485
6899194.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
633
389
6899300.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
2,568
2,403
6899394.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
3,847
3,672
6899510.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
2,548
2,469
6899638.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
22,102
20,794
6900254.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
7,882
7,552
6900496.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
15,035
14,451
6900884.SQ.FTS.B,
Zero
Cpn,
2/03/25
...
25,845
24,818
6901005.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
3,620
3,495
6901282.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
4,950
4,591
6901499.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
11,034
10,593
6902071.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
53,830
50,923
6903265.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
384
369
6903274.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
319
311
6903284.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
3,163
2,962
6903366.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
34,991
32,759
6904072.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
3,666
3,422
6904224.SQ.FTS.B,
Zero
Cpn,
2/04/25
...
3,461
3,374
6904280.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
10,792
10,365
6904508.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
3,651
3,506
6904666.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
3,998
3,784
6904714.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
1,736
1,667
6904822.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
1,629
1,524
6904846.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
3,766
3,606
6904932.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
1,499
1,409
6904963.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
1,833
1,624
6904989.SQ.FTS.B,
Zero
Cpn,
2/05/25
...
32,146
28,658
6905437.SQ.FTS.B,
Zero
Cpn,
2/06/25
...
11,843
11,408
6905652.SQ.FTS.B,
Zero
Cpn,
2/06/25
...
22,214
20,891
6906858.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
4,150
3,957
6907027.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
3,496
3,338
6907146.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
4,937
4,743
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6907289.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
$
13,609
$
10,974
6907526.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
5,610
5,404
6907635.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
9,569
8,395
6907859.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
877
659
6907873.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
4,808
4,602
6908001.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
23,167
19,796
6908375.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
4,518
4,389
6908509.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
4,115
3,943
6908581.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
3,408
3,247
6908654.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
5,391
5,164
6908773.SQ.FTS.B,
Zero
Cpn,
2/07/25
...
5,240
5,036
6909057.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
3,289
2,537
6909141.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
21,940
20,691
6909618.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
2,287
2,187
6909925.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
16,006
15,312
6910308.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
5,697
5,501
6910466.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
1,986
1,744
6910503.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
8,170
6,992
6910703.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
6,825
6,607
6910843.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
3,046
2,925
6910940.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
17,436
16,590
6911295.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
16,633
15,960
6911614.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
5,692
5,288
6911698.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
3,652
3,417
6911745.SQ.FTS.B,
Zero
Cpn,
2/08/25
...
14,861
14,268
6912225.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
7,339
7,033
6912397.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
5,396
5,203
6912701.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
389
377
6912801.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
692
636
6912832.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
4,686
4,500
6912966.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
2,775
2,260
6913052.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
6,222
5,932
6913360.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
1,952
1,890
6913417.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
4,538
4,348
6913498.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
2,677
2,181
6913580.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
2,526
2,381
6913628.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
12,019
11,478
6914291.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
6,750
6,515
6914485.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
1,552
1,495
6914495.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
12,612
11,970
6914678.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
5,231
4,393
6914724.SQ.FTS.B,
Zero
Cpn,
2/09/25
...
1,763
1,684
6916076.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
3,365
3,197
6916173.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
1,314
1,266
6916216.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
851
811
6916274.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
2,045
1,911
6916577.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
4,015
2,729
6916754.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
6,105
5,842
6916947.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
1,755
1,667
6917025.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
2,830
2,655
6917130.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
10,741
10,235
6917385.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
1,824
1,751
6917414.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
5,704
5,376
6917508.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
2,754
2,587
6917559.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
11,653
10,981
6917835.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
5,590
5,195
6917911.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
5,841
5,609
6918086.SQ.FTS.B,
Zero
Cpn,
2/10/25
...
38,969
37,389
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6918966.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
$
5,049
$
4,883
6919099.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
12,517
11,900
6919370.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
11,238
10,450
6919648.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
3,025
2,920
6919721.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
5,239
5,030
6919826.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
1,916
1,849
6919976.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
2,768
2,490
6919998.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
2,455
2,335
6920026.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
5,361
5,185
6920131.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
6,096
5,847
6920246.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
13,723
13,073
6920447.SQ.FTS.B,
Zero
Cpn,
2/11/25
...
29,202
26,728
6920532.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
8,729
8,375
6920682.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
712
696
6920701.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
6,103
5,710
6920793.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
5,069
4,848
6920877.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
6,269
5,970
6920966.SQ.FTS.B,
Zero
Cpn,
2/12/25
...
2,398
2,305
6920993.SQ.FTS.B,
Zero
Cpn,
2/13/25
...
2,923
2,789
6921045.SQ.FTS.B,
Zero
Cpn,
2/13/25
...
3,358
3,149
6921099.SQ.FTS.B,
Zero
Cpn,
2/13/25
...
3,441
3,263
6921229.SQ.FTS.B,
Zero
Cpn,
2/13/25
...
11,358
10,851
6921424.SQ.FTS.B,
Zero
Cpn,
2/13/25
...
281
273
6921768.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
6,765
6,520
6921997.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
10,435
10,031
6922192.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
24,807
23,731
6922457.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
11,958
11,442
6922549.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,722
4,516
6922648.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
1,201
1,159
6922674.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
1,076
1,039
6922707.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,000
3,821
6922761.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,676
4,510
6922824.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
735
705
6922836.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,969
4,790
6922922.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
996
956
6922938.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,853
4,629
6923016.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
7,371
7,070
6923101.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
4,682
4,515
6923168.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
945
909
6923193.SQ.FTS.B,
Zero
Cpn,
2/14/25
...
15,985
15,292
6923318.SQ.FTS.B,
Zero
Cpn,
2/15/25
...
3,931
3,734
6923496.SQ.FTS.B,
Zero
Cpn,
2/15/25
...
19,557
15,413
6923825.SQ.FTS.B,
Zero
Cpn,
2/15/25
...
8,394
8,179
6928558.SQ.FTS.B,
Zero
Cpn,
2/16/25
...
7,316
7,052
6932504.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
70,045
67,208
6934259.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
4,844
4,608
6934329.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
16,644
13,173
6934575.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
2,793
2,667
6934630.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
1,635
1,579
6934672.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
10,479
9,887
6934833.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
10,999
10,513
6935014.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
3,687
3,449
6935049.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
6,652
6,240
6935175.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
1,063
1,000
6935196.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
25,360
24,240
6935598.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
5,645
5,411
6935755.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
5,967
5,680
6935856.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
1,543
1,451
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
51
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6935886.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
$
826
$
794
6935910.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
4,934
4,641
6936001.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
13,904
13,044
6936219.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
11,747
11,308
6936426.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
2,348
2,080
6936448.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
9,514
8,843
6936532.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
5,701
5,049
6936592.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
21,734
20,850
6936806.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
5,332
4,934
6936847.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
2,442
2,331
6936882.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
12,323
11,821
6936955.SQ.FTS.B,
Zero
Cpn,
2/17/25
...
1,504
1,421
6936990.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,491
2,283
6937026.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
8,869
8,503
6937104.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,258
3,084
6937130.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
814
602
6937145.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,061
1,953
6937191.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
56,145
53,654
6937979.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
1,779
1,721
6938051.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
494
483
6938069.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
633
598
6938095.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,436
2,353
6938172.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
1,256
1,206
6938215.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
13,767
12,887
6938552.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
9,712
9,225
6938929.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
1,081
1,027
6939001.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
6,083
5,831
6939154.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
1,807
1,734
6939343.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
12,601
11,967
6939617.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,586
3,416
6939714.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,647
2,514
6939763.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,676
2,587
6939838.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,785
3,574
6939964.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
9,113
8,724
6940148.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
5,742
5,488
6940261.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,270
2,185
6940324.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,881
2,750
6940432.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,657
3,420
6940544.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,166
2,601
6940592.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
2,573
2,477
6940675.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
3,420
2,652
6940754.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
6,753
6,427
6940935.SQ.FTS.B,
Zero
Cpn,
2/18/25
...
11,088
10,495
6941120.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
33,854
31,607
6941562.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
1,222
906
6941583.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
7,627
7,255
6941695.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
428
408
6941712.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
6,434
6,167
6941840.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
728
540
6941851.SQ.FTS.B,
Zero
Cpn,
2/19/25
...
6,598
6,324
6941969.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
1,976
1,907
6942016.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
15,631
14,801
6942251.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
7,921
7,591
6942362.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
5,096
4,885
6942462.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
1,838
1,770
6942505.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
2,271
2,169
6942558.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
1,365
1,165
6942575.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
893
856
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6942589.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
$
1,705
$
1,621
6942619.SQ.FTS.B,
Zero
Cpn,
2/20/25
...
5,018
4,818
6942929.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
1,820
1,724
6943017.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
9,042
8,684
6943431.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
5,404
5,212
6943720.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
19,865
18,811
6944161.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
2,445
2,363
6944232.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
82,704
78,751
6945862.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
724
699
6945871.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
4,861
4,651
6945944.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
656
631
6945968.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
4,038
3,873
6946078.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
3,711
3,529
6946120.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
12,843
11,455
6946261.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
6,086
5,817
6946354.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
5,036
4,810
6946459.SQ.FTS.B,
Zero
Cpn,
2/21/25
...
34,007
32,392
6946597.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
3,766
3,349
6946689.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
1,317
1,055
6946715.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
3,946
3,782
6946791.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
5,541
5,311
6946867.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
8,462
8,098
6947136.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
30,242
29,026
6948005.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
7,888
7,565
6948255.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
12,950
12,418
6948470.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
2,632
2,537
6948541.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
6,393
6,189
6948739.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
48,522
46,253
6949579.SQ.FTS.B,
Zero
Cpn,
2/22/25
...
77,580
64,162
6950012.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
6,013
5,632
6950147.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
1,904
1,830
6950180.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
3,176
3,061
6950249.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
632
557
6950255.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
50,507
46,604
6951456.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
1,082
1,019
6951493.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
14,494
13,913
6951741.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
4,134
2,775
6951768.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
1,380
1,334
6951799.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
4,175
3,979
6951848.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
1,482
1,426
6951869.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
517
487
6951871.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
8,356
7,278
6951985.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
6,959
5,963
6952076.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
52,238
48,776
6952974.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
2,275
2,175
6952999.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
379
369
6953082.SQ.FTS.B,
Zero
Cpn,
2/23/25
...
2,274
2,123
6954769.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
3,330
3,136
6954916.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
6,651
6,404
6955216.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
30,510
29,215
6956002.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
3,697
3,548
6956076.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
6,065
5,351
6956185.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
17,599
17,002
6956719.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
18,580
17,799
6957149.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
25,371
24,226
6957627.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
6,613
6,299
6957756.SQ.FTS.B,
Zero
Cpn,
2/24/25
...
37,069
35,315
6958376.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
8,445
8,086
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6958677.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
$
3,470
$
3,324
6958838.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
20,201
18,966
6959516.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
17,134
16,370
6959867.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
4,929
4,763
6959993.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
684
661
6960000.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
4,035
3,860
6960042.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
5,583
5,287
6960126.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
2,633
2,538
6960223.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
10,041
9,561
6960346.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
5,838
5,559
6960551.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
440
428
6960562.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
5,703
5,472
6960669.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
3,363
3,172
6960761.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
34,655
32,597
6962127.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
2,211
2,098
6962173.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
1,372
1,320
6962188.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
1,853
1,777
6962221.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
3,693
3,446
6962288.SQ.FTS.B,
Zero
Cpn,
2/25/25
...
11,424
10,948
6962382.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
3,184
3,048
6962432.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
1,137
1,097
6962450.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
7,166
6,824
6962496.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
5,032
4,793
6962547.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
2,370
2,038
6962568.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
7,071
6,639
6962640.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
9,170
8,759
6962763.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
12,302
11,413
6962892.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
770
698
6962904.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
3,928
3,754
6962943.SQ.FTS.B,
Zero
Cpn,
2/26/25
...
14,911
13,767
6963136.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
9,031
8,674
6963276.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
4,609
4,389
6963337.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
1,106
1,071
6963362.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
10,927
10,429
6963512.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
2,655
2,541
6963550.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
2,170
2,061
6963590.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
681
651
6963596.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
2,097
2,011
6963616.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
5,136
4,947
6963691.SQ.FTS.B,
Zero
Cpn,
2/27/25
...
4,028
2,927
6963925.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,046
1,011
6963944.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,584
1,509
6964008.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
756
722
6964037.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
5,597
5,403
6964251.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
5,506
5,278
6964529.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,504
2,429
6964654.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
721
498
6964699.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,273
3,139
6964773.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
7,692
7,351
6964914.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
10,078
9,654
6965070.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,382
2,242
6965137.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,761
1,692
6965308.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
9,515
9,049
6965466.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
20,608
19,193
6965795.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,305
2,220
6965855.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
6,437
6,178
6965965.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,754
3,502
6966014.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
26,436
25,220
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6966301.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
$
1,807
$
1,726
6966319.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,039
2,858
6966362.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,643
2,542
6966412.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
5,680
5,380
6966531.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,997
2,762
6966595.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,812
2,425
6966621.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,752
1,698
6966696.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
7,206
6,936
6966854.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
8,055
7,559
6966960.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
5,622
5,387
6967092.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,252
3,130
6967145.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
23,551
22,175
6967506.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,583
2,482
6967556.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,625
4,360
6967673.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,078
1,005
6967741.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,437
4,014
6967832.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,756
4,574
6967973.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,322
1,257
6968020.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,033
1,957
6968060.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,782
2,594
6968103.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,860
1,365
6968139.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
15,791
15,101
6968599.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,776
1,684
6968616.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
8,038
7,659
6968822.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
25,541
24,264
6969306.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,293
4,117
6969376.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,613
1,119
6969402.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,176
2,330
6969459.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
6,513
6,202
6969563.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
409
399
6969586.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,040
3,830
6969662.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,691
3,550
6969752.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
27,751
26,792
6970442.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
14,338
13,736
6970646.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,231
3,956
6970716.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
13,166
12,376
6971019.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
704
667
6971028.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
891
865
6971054.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,456
2,288
6971087.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
15,492
14,759
6971351.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
8,971
8,588
6971521.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,141
2,079
6971755.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
433
420
6971766.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
8,727
8,314
6972022.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
20,473
19,682
6972492.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
10,103
9,360
6972686.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
7,388
7,078
6972812.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
24,599
23,737
6973349.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,878
1,803
6973388.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,915
4,712
6973520.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
38,201
36,455
6974212.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,260
3,084
6977392.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,737
3,605
6977572.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
11,754
10,323
6977842.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,036
1,944
6977915.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,700
1,545
6977996.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,160
3,026
6978141.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,521
2,396
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
53
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6978269.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
$
5,079
$
4,335
6978418.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,451
1,322
6978456.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,188
1,068
6978496.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,483
3,282
6978565.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,023
2,923
6978718.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
8,176
7,825
6978845.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,007
3,810
6978939.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
1,499
1,411
6978952.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
61,930
57,401
6979873.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
4,486
4,192
6980002.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
10,784
8,838
6980196.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,033
1,949
6980227.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
3,175
3,054
6980331.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
44,830
42,759
6981068.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
2,478
1,981
6981095.SQ.FTS.B,
Zero
Cpn,
2/28/25
...
11,282
10,908
6981267.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
6,776
6,419
6981491.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
1,328
1,210
6981536.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
5,611
4,932
6981643.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
3,839
3,659
6981750.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
2,824
2,686
6981964.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
14,112
12,638
6982291.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
1,384
1,325
6982310.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
5,977
5,714
6982511.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
3,928
3,737
6982643.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
19,608
18,683
6982998.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
983
925
6983003.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
2,192
2,044
6983051.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
48,495
46,329
6983959.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
2,151
2,057
6983994.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
13,762
13,198
6984332.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
3,065
2,916
6984383.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
10,864
10,349
6984629.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
457
439
6984655.SQ.FTS.B,
Zero
Cpn,
3/01/25
...
22,235
21,256
6984708.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
1,426
1,255
6984748.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
6,080
5,867
6984847.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
9,702
9,275
6985038.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
525
506
6985048.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
2,704
2,170
6985088.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
2,676
2,583
6985153.SQ.FTS.B,
Zero
Cpn,
3/02/25
...
31,076
29,277
6985592.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
936
910
6985611.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
4,408
4,213
6985703.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
6,788
6,481
6985793.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
2,658
2,538
6985841.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
2,620
2,394
6985878.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
1,716
1,641
6985899.SQ.FTS.B,
Zero
Cpn,
3/03/25
...
27,085
25,836
6986336.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
1,090
997
6986355.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
824
792
6986370.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
7,591
7,258
6986476.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
1,271
1,233
6986518.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
6,513
6,045
6986601.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
9,178
8,624
6986717.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
8,394
6,762
6986827.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
15,089
14,478
6986974.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
1,345
1,272
Description
Principal
Amount
Value
Block,
Inc.
(continued)
6986997.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
$
10,047
$
9,020
6987089.SQ.FTS.B,
Zero
Cpn,
3/04/25
...
16,254
15,540
6987501.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
5,068
4,615
6987569.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
3,671
3,488
6987650.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
8,160
7,110
6987935.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
4,723
4,491
6988082.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
9,355
9,031
6988488.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,690
1,626
6988557.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
5,124
4,929
6988666.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
2,466
2,378
6988751.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
8,829
8,315
6988943.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,268
1,216
6988983.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
2,706
2,571
6989059.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
15,022
14,391
6989404.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,328
1,278
6989435.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
15,375
14,421
6989741.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
19,653
18,791
6989887.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
263
258
6989891.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
3,808
3,620
6989943.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
14,299
12,849
6990056.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
13,585
12,999
6990177.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
10,406
9,958
6990260.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,736
1,663
6990297.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,511
1,080
6990305.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,703
1,635
6990315.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
651
628
6990326.SQ.FTS.B,
Zero
Cpn,
3/05/25
...
1,513
1,453
6990422.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
16,800
16,041
6990602.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
1,783
1,674
6990634.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
8,113
7,805
6990771.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
3,562
3,108
6990845.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
2,787
2,663
6990898.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
2,547
2,438
6990935.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
3,596
3,453
6991027.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
3,769
3,605
6991076.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
11,411
10,870
6991229.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
22,972
21,627
6991581.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
9,184
8,577
6991688.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
5,717
5,479
6991749.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
8,103
7,567
6992349.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
3,541
3,361
6992584.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
40,212
37,824
6993089.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
1,940
1,671
6993141.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
2,073
1,990
6993187.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
9,200
8,809
6993405.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
2,383
2,275
6993453.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
5,805
5,506
6993568.SQ.FTS.B,
Zero
Cpn,
3/06/25
...
8,980
8,633
6995635.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
912
856
6995689.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
2,121
1,992
6995742.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
1,674
1,420
6995761.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
1,153
1,103
6995974.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
3,083
2,774
6996026.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
34,462
30,458
6996881.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
12,663
12,081
6997185.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
3,158
3,055
6997293.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
11,585
11,056
6997516.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
26,427
24,793
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
6997810.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
$
4,963
$
4,771
6997894.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
4,979
4,840
6997998.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
3,258
3,140
6998051.SQ.FTS.B,
Zero
Cpn,
3/07/25
...
6,239
5,970
6999268.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
17,147
16,480
6999962.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
16,435
15,965
7000313.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
11,488
11,056
7000460.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
3,722
3,501
7000516.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
12,989
12,483
7000748.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
11,582
11,074
7000868.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
10,987
10,586
7001065.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
2,852
2,764
7001131.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
462
449
7001137.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
7,091
6,623
7001238.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
3,627
3,300
7001315.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
4,550
4,349
7001417.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
4,625
4,437
7001522.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
2,669
2,587
7001551.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
4,733
4,439
7001643.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
5,457
5,217
7001717.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
9,413
8,947
7001805.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
10,663
9,663
7001926.SQ.FTS.B,
Zero
Cpn,
3/08/25
...
53,705
50,495
7002315.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
1,723
1,652
7002355.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
4,948
4,407
7002418.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
2,069
1,929
7002453.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
14,512
13,888
7002636.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
10,381
9,861
7002805.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
2,587
2,491
7002839.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
7,085
6,660
7002916.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
11,267
10,697
7003078.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
9,253
7,871
7003182.SQ.FTS.B,
Zero
Cpn,
3/09/25
...
19,617
18,893
7003487.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
7,240
6,807
7003565.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
7,523
7,071
7003653.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
16,516
12,030
7003833.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
1,996
1,876
7003857.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
2,291
2,075
7003880.SQ.FTS.B,
Zero
Cpn,
3/10/25
...
37,123
34,898
7004982.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
8,998
8,499
7005128.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
9,674
9,291
7005362.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
1,314
1,269
7005388.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
17,712
16,954
7005638.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
9,276
8,377
7005777.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
5,105
4,881
7005866.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
4,029
3,785
7005926.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
2,144
1,998
7005944.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
547
519
7005947.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
2,560
2,409
7005973.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
17,684
16,927
7006228.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
1,508
1,432
7006240.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
4,480
4,274
7006290.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
8,156
7,562
7006402.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
16,525
14,508
7006704.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
2,038
1,944
7006737.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
2,076
1,879
7006776.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
4,523
3,968
7006846.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
2,800
2,676
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7006885.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
$
1,919
$
1,845
7006910.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
7,224
6,856
7007003.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
9,748
9,238
7007140.SQ.FTS.B,
Zero
Cpn,
3/11/25
...
29,436
28,084
7007466.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
4,823
4,615
7007563.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
1,811
1,737
7007598.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
2,003
1,935
7007655.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
16,368
15,514
7008102.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
2,854
2,728
7008210.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
1,993
1,873
7008245.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
11,016
10,529
7008486.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
3,099
2,957
7008548.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
30,584
29,250
7008985.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
13,193
12,548
7009209.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
5,122
4,833
7009269.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
22,063
20,609
7009540.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
24,854
22,608
7009878.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
7,236
6,958
7009982.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
1,915
1,774
7010025.SQ.FTS.B,
Zero
Cpn,
3/12/25
...
67,041
61,135
7010833.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
4,017
3,656
7010932.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
2,583
2,335
7010971.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
2,125
1,893
7011015.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
2,153
2,074
7011082.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
2,950
2,732
7011133.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
24,963
23,859
7012154.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
1,304
1,266
7012225.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
957
925
7012242.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
10,717
10,222
7012593.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
4,303
4,042
7012661.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
11,967
11,415
7012891.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
3,189
3,058
7012949.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
6,420
5,006
7013036.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
8,635
8,112
7013177.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
1,777
1,655
7013232.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
9,686
9,178
7013365.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
766
713
7013377.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
5,653
5,442
7013520.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
28,470
26,756
7014068.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
10,307
9,545
7014159.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
2,042
1,965
7014182.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
11,618
10,973
7014345.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
11,758
11,253
7014492.SQ.FTS.B,
Zero
Cpn,
3/13/25
...
6,335
6,013
7016320.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
17,229
16,391
7016702.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
38,571
36,931
7018034.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
1,228
1,171
7018062.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
490
471
7018080.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
3,203
2,370
7018206.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
6,838
5,464
7018355.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
8,574
8,176
7018517.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
8,714
8,193
7018665.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
17,448
15,350
7018946.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
3,448
3,279
7019048.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
28,339
27,011
7019532.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
2,229
2,134
7019564.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
3,911
3,567
7019615.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
14,764
13,943
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
55
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7019936.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
$
10,114
$
9,665
7020113.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
4,470
4,270
7020159.SQ.FTS.B,
Zero
Cpn,
3/14/25
...
48,211
45,959
7020328.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,527
2,464
7020537.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,895
2,768
7020620.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
5,861
5,611
7020809.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,958
2,826
7020921.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
3,830
3,657
7021016.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,629
1,559
7021055.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,357
2,257
7021116.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,580
1,496
7021179.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,540
1,447
7021238.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
9,436
8,307
7021479.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
8,127
7,766
7021699.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,082
1,949
7021732.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
11,097
10,606
7022017.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
2,373
2,266
7022101.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,832
1,764
7022161.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
4,335
3,927
7022239.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
3,450
3,283
7022298.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
13,779
13,345
7022701.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,831
1,756
7022730.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
7,913
7,485
7022921.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
15,183
14,392
7023270.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
17,220
16,017
7023513.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,010
978
7023533.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
3,709
3,548
7023586.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
7,563
7,164
7023843.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,706
1,621
7023914.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
3,371
3,223
7023999.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,782
1,675
7024017.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
1,217
1,167
7024049.SQ.FTS.B,
Zero
Cpn,
3/15/25
...
29,031
27,774
7024634.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
7,300
6,971
7024745.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
2,891
2,706
7024788.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
8,497
7,576
7024893.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
1,047
998
7024906.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
735
701
7024912.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
1,912
1,831
7024944.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
5,897
5,546
7025010.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
4,369
4,151
7025080.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
5,057
4,748
7025130.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
1,255
1,191
7025149.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
2,227
1,963
7025173.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
8,661
8,228
7025279.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
2,030
1,935
7025304.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
3,988
3,708
7025353.SQ.FTS.B,
Zero
Cpn,
3/16/25
...
14,415
13,763
7025559.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
5,994
5,679
7025639.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
2,693
2,578
7025685.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
4,006
3,791
7025751.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
26,347
25,159
7026089.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
3,931
3,745
7026140.SQ.FTS.B,
Zero
Cpn,
3/17/25
...
4,317
4,071
7026440.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
9,156
8,579
7026600.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
1,316
1,270
7026651.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
4,275
4,072
7026779.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
7,510
6,937
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7027109.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
$
4,214
$
4,028
7027218.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
5,380
4,751
7027332.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
824
792
7027355.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
197
192
7027379.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
32,234
30,675
7028002.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
1,079
1,030
7028020.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
25,446
24,249
7028433.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
4,112
3,715
7028476.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
1,975
1,884
7028500.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
2,747
2,599
7028537.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
66,962
63,429
7029537.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
4,529
4,047
7029578.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
8,669
8,237
7029744.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
5,283
5,020
7029846.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
1,451
1,273
7029879.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
7,340
6,963
7029984.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
5,976
5,706
7030059.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
4,558
4,242
7030157.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
10,227
9,741
7030353.SQ.FTS.B,
Zero
Cpn,
3/18/25
...
8,245
7,863
7030466.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
4,938
4,708
7030602.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
5,634
5,380
7030648.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
933
890
7030676.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
3,217
3,047
7030741.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,728
1,633
7030781.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,565
1,474
7030820.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
4,401
4,253
7031071.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,948
1,850
7031118.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
5,139
4,901
7031258.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,830
1,750
7031302.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
6,266
5,943
7031483.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
3,898
3,694
7031577.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
3,091
2,972
7031642.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
10,420
9,462
7031775.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,845
1,743
7031801.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,280
1,223
7031810.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
3,854
3,500
7031881.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
5,421
5,174
7031973.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
3,574
3,412
7032049.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
13,310
12,507
7032279.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
7,550
6,752
7032344.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
71,240
67,469
7033198.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,609
1,549
7033222.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
21,363
19,890
7033411.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
1,084
1,035
7033424.SQ.FTS.B,
Zero
Cpn,
3/19/25
...
72,668
65,999
7034177.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
684
664
7034217.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
5,656
5,371
7034406.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
1,814
1,744
7034454.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
2,446
2,316
7034510.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
1,479
1,379
7034546.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
12,299
11,825
7035030.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
3,304
2,689
7035154.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
3,933
3,697
7035207.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
1,629
1,415
7035232.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
2,675
2,292
7035266.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
7,932
7,592
7035553.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
2,472
2,338
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7035799.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
$
86,623
$
82,235
7036970.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
612
588
7036979.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
1,308
1,165
7036994.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
1,399
1,215
7037003.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
77,949
74,194
7037993.SQ.FTS.B,
Zero
Cpn,
3/20/25
...
4,471
4,297
7039772.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
3,094
2,974
7039842.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
14,174
13,535
7040160.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
1,892
1,806
7040179.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
13,725
12,872
7040512.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
3,511
3,299
7040643.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
17,702
16,875
7041176.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
5,988
5,626
7041357.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
18,486
17,754
7041725.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
10,559
10,141
7041966.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
1,631
1,573
7042023.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
3,567
3,377
7042110.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
73,919
70,517
7043404.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
1,106
1,073
7043444.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
9,678
9,163
7043635.SQ.FTS.B,
Zero
Cpn,
3/21/25
...
6,963
6,604
7043824.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
2,490
2,169
7043910.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
8,860
8,412
7044138.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
8,432
7,969
7044330.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
4,581
4,382
7044429.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
28,488
27,257
7045249.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
4,126
3,940
7045332.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
7,165
6,844
7045483.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
3,019
2,854
7045538.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
54,430
51,818
7046581.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
15,716
14,505
7046741.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
3,390
3,228
7046787.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
3,275
3,124
7046819.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
1,907
1,820
7046836.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
4,494
4,188
7046906.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
1,182
1,129
7046917.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
1,811
1,740
7046945.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
2,172
2,059
7046965.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
1,063
1,011
7046976.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
901
840
7046986.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
2,422
2,082
7047020.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
887
853
7047032.SQ.FTS.B,
Zero
Cpn,
3/22/25
...
7,937
7,472
7047074.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
24,630
23,136
7047321.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
9,041
8,582
7047417.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
3,563
3,134
7047454.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
6,452
6,107
7047536.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
3,831
3,662
7047566.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
2,225
2,039
7047583.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
21,646
20,481
7047940.SQ.FTS.B,
Zero
Cpn,
3/23/25
...
5,147
4,929
7048113.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
503
476
7048127.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
10,120
9,486
7048252.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
1,735
1,661
7048285.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
15,266
14,520
7048466.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
6,589
6,253
7048541.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
7,037
6,761
7048672.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
2,797
2,672
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7048711.SQ.FTS.B,
Zero
Cpn,
3/24/25
...
$
3,029
$
2,890
7048975.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
6,950
6,615
7049107.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
1,276
1,209
7049151.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
9,531
9,034
7049368.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
1,586
1,514
7049394.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
13,990
13,418
7049780.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
2,047
1,955
7049811.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
2,222
2,146
7049845.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
5,619
5,268
7049930.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
5,184
4,956
7049995.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
11,004
10,540
7050197.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
15,591
14,284
7050449.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
1,891
1,799
7050468.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
4,049
3,861
7050515.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
1,017
946
7050526.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
995
947
7050533.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
5,420
4,974
7050585.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
814
659
7050592.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
977
894
7050598.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
78
75
7050615.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
50,128
47,691
7051088.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
5,021
4,812
7051136.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
4,849
4,629
7051230.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
8,734
8,346
7051332.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
5,013
4,794
7051387.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
17,303
16,488
7051616.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
7,265
6,897
7051719.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
4,047
3,835
7051781.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
8,371
7,449
7051880.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
18,508
17,762
7052092.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
24,072
22,539
7052401.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
2,613
2,507
7052443.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
14,255
13,507
7052564.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
4,474
4,270
7052632.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
2,481
2,393
7052668.SQ.FTS.B,
Zero
Cpn,
3/25/25
...
3,259
3,102
7052707.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
5,949
5,585
7052795.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
26,457
25,298
7053292.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
5,592
5,317
7053454.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
39,922
37,868
7054215.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
4,496
4,300
7054287.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
12,690
12,176
7054449.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
10,358
9,802
7054593.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
1,244
1,193
7054612.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
5,943
5,203
7054663.SQ.FTS.B,
Zero
Cpn,
3/26/25
...
7,050
6,772
7055830.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
3,996
3,826
7055882.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
2,328
2,220
7055908.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
1,652
1,593
7055934.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
8,194
7,575
7056018.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
10,115
9,651
7056124.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
7,943
7,271
7056251.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
1,725
1,656
7056285.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
20,540
19,426
7056743.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
5,013
4,741
7056845.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
1,809
1,694
7056867.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
5,397
5,097
7056959.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
1,606
1,524
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
57
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7057013.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
$
11,622
$
11,071
7057284.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
5,534
4,962
7057514.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
10,589
10,097
7057720.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
10,526
9,987
7057940.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
2,643
2,536
7057972.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
8,239
7,723
7058120.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
18,803
17,934
7058367.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
4,197
4,015
7058440.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
10,201
9,747
7058652.SQ.FTS.B,
Zero
Cpn,
3/27/25
...
37,405
35,839
7060928.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
3,075
2,862
7061030.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
4,598
4,270
7061151.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
1,564
1,438
7061185.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
5,626
5,161
7061323.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
36,347
33,831
7062302.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
5,116
4,797
7062421.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
1,171
1,056
7062463.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
2,006
1,804
7062520.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
2,246
2,058
7062587.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
590
509
7062617.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
20,920
19,144
7062963.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
1,640
1,522
7062997.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
12,385
11,502
7063158.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
3,698
3,399
7063302.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
51,189
47,814
7063881.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
6,266
5,787
7063990.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
933
862
7064020.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
2,974
2,730
7064129.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
21,429
19,998
7064581.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
1,417
1,311
7064618.SQ.FTS.B,
Zero
Cpn,
3/28/25
...
13,499
12,261
7064813.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
5,689
5,310
7065020.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
4,036
3,662
7065179.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
1,862
1,706
7065240.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
6,232
5,798
7065573.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
17,272
15,742
7066061.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
2,728
2,557
7066150.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
1,032
951
7066163.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
95,617
89,000
7067737.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
4,261
3,995
7067874.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
5,405
4,968
7068056.SQ.FTS.B,
Zero
Cpn,
3/29/25
...
8,275
7,604
7068142.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
5,414
5,054
7068205.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
1,356
1,256
7068217.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
9,449
8,681
7068321.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
31,653
29,388
7068715.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
1,119
1,021
7068736.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
1,629
1,508
7068749.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
10,451
9,751
7068882.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
3,370
3,157
7068913.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
6,041
5,596
7068973.SQ.FTS.B,
Zero
Cpn,
3/30/25
...
5,588
5,176
7069042.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
5,660
5,204
7069138.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
2,141
1,957
7069166.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
7,131
6,539
7069240.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
1,875
1,736
7069264.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
6,783
6,309
7069364.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
18,921
17,255
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7069578.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
$
2,499
$
2,306
7069593.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
10,665
9,994
7069692.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
7,593
7,037
7069775.SQ.FTS.B,
Zero
Cpn,
4/01/25
...
12,095
11,288
7070173.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
3,499
3,279
7070237.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
4,513
4,181
7071000.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
645
591
7071024.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
5,064
4,713
7071117.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
3,294
3,010
7071207.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
737
677
7071223.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
7,078
6,561
7071351.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
22,554
21,034
7071767.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
10,341
9,501
7071948.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
3,106
2,852
7071966.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
15,327
14,066
7072106.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
5,477
5,038
7072198.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
71,291
66,124
7073414.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
3,230
2,965
7073455.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
1,537
1,424
7073486.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
8,933
8,245
7073623.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
663
611
7073629.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
3,679
3,320
7073696.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
2,583
2,375
7073718.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
1,283
1,166
7073749.SQ.FTS.B,
Zero
Cpn,
4/02/25
...
9,468
8,691
7074005.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
13,976
13,009
7074163.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
880
802
7074171.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
3,494
3,208
7074204.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
6,814
6,196
7074453.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
28,172
25,708
7075178.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
5,280
4,820
7075287.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
6,788
6,336
7075418.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
7,210
6,669
7075529.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
77,287
72,341
7076876.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
18,937
17,739
7077158.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
2,567
2,345
7077192.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
7,250
6,630
7077255.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
2,531
2,322
7077298.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
31,752
29,378
7077653.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
741
673
7077679.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
737
678
7077692.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
1,494
1,381
7077716.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
2,086
1,937
7077760.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
2,612
2,395
7077800.SQ.FTS.B,
Zero
Cpn,
4/03/25
...
1,050
956
7077831.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
6,658
6,153
7077978.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
10,323
9,542
7078197.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
1,432
1,330
7078219.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
36,269
32,978
7079133.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
3,774
3,538
7079198.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
2,638
2,434
7079287.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
4,465
4,116
7079363.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
3,641
3,397
7079420.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
55,844
51,699
7080123.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
27,869
25,990
7080510.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
1,561
1,420
7080535.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
12,512
11,536
7080716.SQ.FTS.B,
Zero
Cpn,
4/04/25
...
56,311
52,573
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7084957.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
$
1,844
$
1,701
7085121.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
15,493
14,515
7085283.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
4,091
3,764
7085433.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
2,960
2,688
7085620.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
10,710
9,862
7085934.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
1,500
1,390
7085979.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
14,775
13,618
7086382.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
53,746
49,832
7087303.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
26,407
24,732
7087718.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
9,144
8,478
7087819.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
3,060
2,798
7087837.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
33,875
31,618
7088239.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
23,262
21,396
7088677.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
2,348
2,151
7088734.SQ.FTS.B,
Zero
Cpn,
4/05/25
...
27,241
25,091
7088940.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
2,080
1,931
7089009.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
6,541
6,130
7089156.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
10,346
9,693
7089319.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
1,951
1,791
7089376.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
892
828
7089405.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
1,483
1,351
7089445.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
5,638
5,174
7089598.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
5,360
5,020
7089774.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
2,707
2,501
7089901.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
10,573
9,790
7090196.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
6,626
6,158
7090367.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
6,859
6,347
7090463.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
4,510
4,223
7090542.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
86,400
80,613
7091540.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
17,170
15,856
7091737.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
3,563
3,243
7091802.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
23,140
21,577
7092185.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
5,940
5,541
7092334.SQ.FTS.B,
Zero
Cpn,
4/06/25
...
967
890
7092353.SQ.FTS.B,
Zero
Cpn,
4/07/25
...
1,583
1,453
7092397.SQ.FTS.B,
Zero
Cpn,
4/07/25
...
24,302
22,666
7092933.SQ.FTS.B,
Zero
Cpn,
4/07/25
...
4,120
3,798
7093002.SQ.FTS.B,
Zero
Cpn,
4/07/25
...
8,009
7,444
7093161.SQ.FTS.B,
Zero
Cpn,
4/07/25
...
7,524
6,927
7093356.SQ.FTS.B,
Zero
Cpn,
4/08/25
...
9,557
8,748
7093625.SQ.FTS.B,
Zero
Cpn,
4/08/25
...
7,929
7,426
7093818.SQ.FTS.B,
Zero
Cpn,
4/08/25
...
10,416
9,660
7094118.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
3,335
3,093
7094198.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
5,411
5,068
7094290.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
4,229
3,899
7094380.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
2,269
2,097
7094417.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
1,481
1,357
7094450.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
1,658
1,528
7094476.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
17,413
16,086
7094784.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
1,724
1,593
7094796.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
7,951
7,346
7094888.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
2,891
2,636
7094926.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
1,298
1,123
7094966.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
3,677
3,414
7095033.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
1,295
1,182
7095051.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
10,047
9,319
7095240.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
8,861
8,284
7095396.SQ.FTS.B,
Zero
Cpn,
4/09/25
...
5,032
4,647
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7095666.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
$
8,986
$
8,413
7095850.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
2,285
2,127
7095892.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
3,129
2,889
7096035.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
12,259
11,224
7096493.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
3,579
3,293
7096613.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
4,578
4,239
7096738.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
6,741
6,239
7096908.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
4,799
4,478
7097027.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
1,221
1,129
7097071.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
8,625
7,946
7097309.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
7,004
6,530
7097449.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
2,735
2,508
7097492.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
6,509
6,096
7097638.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
990
921
7097652.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
12,826
11,855
7097916.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
36,656
33,529
7098703.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
2,285
2,021
7098792.SQ.FTS.B,
Zero
Cpn,
4/10/25
...
15,110
14,155
7099097.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
30,861
28,248
7099787.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
6,964
6,452
7099916.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
6,456
6,023
7099999.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
2,031
1,858
7100012.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
2,665
2,496
7100028.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
1,249
1,135
7100047.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
2,264
2,114
7100062.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
20,660
19,191
7100289.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
2,439
2,258
7100334.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
5,499
5,032
7100936.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
34,747
31,903
7101623.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
4,898
4,505
7101698.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
1,608
1,489
7101740.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
5,567
5,112
7101803.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
10,812
10,126
7102105.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
50,406
46,260
7102625.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
4,337
3,944
7102664.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
10,491
9,626
7102724.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
12,690
11,743
7102893.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
5,152
4,757
7102928.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
753
701
7102932.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
3,575
3,271
7102952.SQ.FTS.B,
Zero
Cpn,
4/11/25
...
14,803
13,509
7105121.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
6,565
6,107
7105271.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
1,756
1,616
7105293.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
2,627
2,428
7105335.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
6,283
5,790
7105455.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
37,463
34,694
7106350.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
1,297
1,184
7106370.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
1,515
1,385
7106451.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
20,660
19,158
7106823.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
29,451
27,323
7107269.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
5,006
4,687
7107331.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
1,524
1,387
7107343.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
7,626
7,026
7107406.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
12,427
11,587
7107539.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
56,876
53,261
7108215.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
10,912
10,174
7108350.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
7,021
6,407
7108477.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
3,462
3,190
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
59
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7108551.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
$
3,012
$
2,746
7108586.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
3,267
2,935
7108662.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
5,095
4,745
7108730.SQ.FTS.B,
Zero
Cpn,
4/12/25
...
13,471
12,412
7108783.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
2,568
2,387
7108839.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
14,023
13,127
7109079.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
2,218
2,011
7109108.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
30,988
28,800
7109840.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
2,742
2,534
7109927.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
9,342
8,531
7110102.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
11,099
10,258
7110287.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
7,367
6,895
7110433.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
107,606
99,963
7111816.SQ.FTS.B,
Zero
Cpn,
4/13/25
...
27,187
24,951
7112026.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
6,614
6,083
7112146.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
5,803
5,347
7112255.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
2,544
2,326
7112304.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
18,309
17,076
7112626.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
4,423
4,098
7112706.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
6,523
6,059
7112817.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
3,490
3,233
7112878.SQ.FTS.B,
Zero
Cpn,
4/14/25
...
28,015
26,030
7113379.SQ.FTS.B,
Zero
Cpn,
4/15/25
...
1,517
1,400
7113405.SQ.FTS.B,
Zero
Cpn,
4/15/25
...
13,987
13,035
7113640.SQ.FTS.B,
Zero
Cpn,
4/15/25
...
15,323
14,018
7114191.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
9,050
8,468
7114730.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
17,589
16,290
7115231.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
5,437
5,002
7115331.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
1,365
1,257
7115351.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
2,010
1,878
7115405.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
57,485
53,806
7116416.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
1,972
1,807
7116478.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
1,847
1,715
7116512.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
6,798
6,318
7116655.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
9,368
8,682
7116789.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
12,760
11,946
7116937.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
1,193
1,094
7116978.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
7,884
7,299
7117157.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
2,221
2,071
7117174.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
14,278
13,107
7117443.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
2,106
1,963
7117463.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
1,675
1,556
7117503.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
8,010
7,365
7117566.SQ.FTS.B,
Zero
Cpn,
4/16/25
...
3,457
3,176
7117675.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
2,707
2,493
7117730.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
12,944
11,956
7118008.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
310
281
7118029.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
8,525
7,831
7118245.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
20,390
18,587
7118779.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
6,889
6,447
7118920.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
6,775
6,299
7118984.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
3,776
3,519
7119041.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
4,007
3,736
7119074.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
5,439
5,070
7119242.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
52,731
49,132
7119773.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
13,384
12,437
7119881.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
19,967
18,107
7120098.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
1,522
1,399
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7120119.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
$
30,945
$
28,753
7120558.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
6,939
6,359
7120693.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
13,279
12,429
7120877.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
22,391
20,751
7121272.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
4,479
4,115
7121339.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
3,078
2,824
7121428.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
2,886
2,636
7121470.SQ.FTS.B,
Zero
Cpn,
4/17/25
...
3,544
3,265
7121521.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
11,556
10,816
7121775.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
22,234
20,731
7122345.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
1,755
1,622
7122434.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
2,192
2,020
7122509.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
9,111
8,441
7122628.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
12,223
11,352
7122838.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
852
773
7122846.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
12,762
11,936
7123005.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
22,000
20,433
7123229.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
6,147
5,694
7123343.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
23,331
21,413
7123616.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
1,459
1,344
7123656.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
1,086
1,011
7123668.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
16,874
15,731
7124014.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
2,721
2,546
7124082.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
6,206
5,713
7124218.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
1,851
1,714
7124254.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
2,223
2,029
7124312.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
37,636
35,080
7125056.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
12,314
11,167
7125252.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
997
929
7125266.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
2,308
2,138
7125329.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
3,444
3,165
7125398.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
24,930
23,120
7126005.SQ.FTS.B,
Zero
Cpn,
4/18/25
...
7,515
7,033
7128413.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
6,485
6,022
7128581.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
44,377
41,348
7132068.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
601
558
7132177.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
16,836
15,551
7132689.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
24,662
23,068
7133279.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
6,621
6,104
7133436.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
862
790
7133482.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
16,998
15,711
7133911.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
5,756
5,316
7134111.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
12,596
11,666
7134421.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
9,290
8,692
7134642.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
4,218
3,916
7134680.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
4,591
4,212
7134716.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
17,183
15,922
7134885.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
4,233
3,902
7134939.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
15,920
14,655
7135119.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
1,705
1,572
7135140.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
24,674
23,078
7135432.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
11,345
10,378
7135572.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
7,917
7,353
7135640.SQ.FTS.B,
Zero
Cpn,
4/19/25
...
12,906
11,886
7135856.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
27,541
25,440
7136509.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
23,565
21,821
7137083.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
7,471
6,938
7137247.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
6,404
5,989
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7137369.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
$
11,574
$
10,664
7137611.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
38,608
35,842
7138552.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
32,372
30,156
7139071.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
68,845
64,148
7141030.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
6,391
5,933
7141141.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
8,478
7,805
7141282.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
5,740
5,347
7141347.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
5,880
5,501
7141413.SQ.FTS.B,
Zero
Cpn,
4/20/25
...
2,466
2,280
7141454.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
6,688
6,231
7141560.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
3,909
3,599
7141640.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
1,212
1,107
7141663.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
3,685
3,411
7141745.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
9,152
8,560
7141925.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
22,700
20,970
7142409.SQ.FTS.B,
Zero
Cpn,
4/21/25
...
12,400
11,512
7142702.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
4,933
4,529
7142834.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
4,267
3,958
7142919.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
2,712
2,498
7142960.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
17,882
16,726
7143327.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
3,401
3,127
7143410.SQ.FTS.B,
Zero
Cpn,
4/22/25
...
1,453
1,313
7143723.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
1,416
1,304
7143739.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
5,182
4,827
7143843.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
3,090
2,837
7144079.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
3,955
3,607
7144234.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
14,034
12,996
7144688.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
5,054
4,728
7144806.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
2,374
2,199
7144873.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
7,433
6,818
7145123.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
21,143
19,471
7145862.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
58,063
54,081
7146804.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
8,702
8,013
7146992.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
10,960
10,212
7147233.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
1,720
1,591
7147279.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
13,121
12,151
7147597.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
2,428
2,250
7147648.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
1,274
1,167
7147683.SQ.FTS.B,
Zero
Cpn,
4/23/25
...
1,834
1,678
7147737.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
12,954
12,014
7147952.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
4,517
4,194
7147968.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
6,738
6,142
7148062.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
4,325
4,005
7148145.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
10,771
9,970
7148314.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
3,398
3,137
7148408.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
4,128
3,831
7148524.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
23,728
22,195
7148927.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
2,036
1,889
7148960.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
9,853
9,124
7149069.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
12,343
11,544
7149252.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
4,483
4,147
7149327.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
1,356
1,263
7149367.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
9,334
8,622
7149510.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
5,210
4,836
7149585.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
2,215
2,027
7149622.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
2,407
2,228
7149658.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
9,097
8,382
7149774.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
10,605
9,918
Description
Principal
Amount
Value
Block,
Inc.
(continued)
7149920.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
$
1,463
$
1,351
7149937.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
6,448
6,007
7150018.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
3,952
3,657
7150045.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
10,442
9,765
7150158.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
7,859
7,320
7150301.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
21,041
19,420
7150613.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
5,586
5,224
7150727.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
14,072
13,063
7150936.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
5,050
4,688
7150991.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
2,717
2,514
7151035.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
2,255
2,069
7151063.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
1,781
1,601
7151096.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
11,967
10,980
7151245.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
12,942
11,949
7151375.SQ.FTS.B,
Zero
Cpn,
4/24/25
...
4,681
4,359
7151518.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
7,584
7,091
7151665.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
6,402
5,898
7151772.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
3,758
3,455
7151829.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
6,558
6,049
7151927.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
8,458
7,909
7152052.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
1,911
1,772
7152089.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
7,443
6,815
7152311.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
11,118
10,356
7152513.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
1,061
968
7152527.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
1,005
937
7152548.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
3,830
3,540
7152580.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
7,226
6,663
7152646.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
2,073
1,899
7152650.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
1,336
1,219
7152674.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
103,284
94,568
7153920.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
38,349
35,721
7154350.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
10,574
9,673
7154471.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
13,831
12,803
7154615.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
6,835
6,328
7154675.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
2,922
2,698
7154719.SQ.FTS.B,
Zero
Cpn,
4/25/25
...
8,024
7,391
7156747.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
7,755
7,090
7156861.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
13,596
12,616
7157024.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,516
2,301
7157037.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
6,968
6,432
7157156.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
6,375
5,916
7157270.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,564
2,344
7157304.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
4,690
4,294
7157392.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
465
424
7157411.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
11,361
10,513
7157610.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,779
2,566
7157658.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
10,036
9,382
7157788.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,499
2,311
7157845.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
5,559
5,131
7157899.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
11,425
10,602
7157975.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
7,331
6,785
7158066.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
12,898
11,768
7158189.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,934
2,682
7158226.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
7,081
6,594
7158285.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
734
679
7158286.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
11,800
10,948
7158353.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
43,556
40,718
7159530.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
30,848
28,625
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
61
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
7159932.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
$
7,228
$
6,594
7160007.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
9,164
8,481
7160113.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
5,155
4,771
7160183.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
4,111
3,764
7160263.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
1,702
1,558
7160326.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
3,044
2,810
7160364.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
3,165
2,894
7160420.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
3,906
3,647
7160489.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
6,775
6,287
7160589.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
5,378
4,951
7160682.SQ.FTS.B,
Zero
Cpn,
4/26/25
...
2,427
2,226
4578615.SQ.FTS.B,
Zero
Cpn,
4/01/33
...
1,525
21
4580233.SQ.FTS.B,
Zero
Cpn,
4/01/33
...
690
15
4583983.SQ.FTS.B,
Zero
Cpn,
4/04/33
...
3,383
121
4585288.SQ.FTS.B,
Zero
Cpn,
4/04/33
...
13,554
184
4587010.SQ.FTS.B,
Zero
Cpn,
4/05/33
...
1,755
50
4588245.SQ.FTS.B,
Zero
Cpn,
4/05/33
...
3,204
108
4589702.SQ.FTS.B,
Zero
Cpn,
4/05/33
...
3,489
93
4590358.SQ.FTS.B,
Zero
Cpn,
4/05/33
...
226
5
4598182.SQ.FTS.B,
Zero
Cpn,
4/07/33
...
1,281
24
4602285.SQ.FTS.B,
Zero
Cpn,
4/08/33
...
31,712
812
4604615.SQ.FTS.B,
Zero
Cpn,
4/09/33
...
13,726
472
4604886.SQ.FTS.B,
Zero
Cpn,
4/10/33
...
2,273
62
4606179.SQ.FTS.B,
Zero
Cpn,
4/11/33
...
10,364
114
4606224.SQ.FTS.B,
Zero
Cpn,
4/11/33
...
201
3
4606335.SQ.FTS.B,
Zero
Cpn,
4/11/33
...
2,103
47
4606464.SQ.FTS.B,
Zero
Cpn,
4/11/33
...
12,284
293
4609551.SQ.FTS.B,
Zero
Cpn,
4/12/33
...
5,454
100
4610443.SQ.FTS.B,
Zero
Cpn,
4/13/33
...
10,147
366
4612920.SQ.FTS.B,
Zero
Cpn,
4/13/33
...
2,172
63
4621133.SQ.FTS.B,
Zero
Cpn,
4/15/33
...
1,574
64
4622639.SQ.FTS.B,
Zero
Cpn,
4/15/33
...
3,183
78
4624403.SQ.FTS.B,
Zero
Cpn,
4/17/33
...
646
8
4624869.SQ.FTS.B,
Zero
Cpn,
4/17/33
...
1,488
39
4626298.SQ.FTS.B,
Zero
Cpn,
4/18/33
...
10,268
121
4626514.SQ.FTS.B,
Zero
Cpn,
4/18/33
...
2,949
50
4627586.SQ.FTS.B,
Zero
Cpn,
4/18/33
...
4,624
167
4629149.SQ.FTS.B,
Zero
Cpn,
4/19/33
...
6,425
255
4632596.SQ.FTS.B,
Zero
Cpn,
4/20/33
...
848
13
4635753.SQ.FTS.B,
Zero
Cpn,
4/21/33
...
11,156
310
4636668.SQ.FTS.B,
Zero
Cpn,
4/21/33
...
1,343
59
4642502.SQ.FTS.B,
Zero
Cpn,
4/25/33
...
1,021
18
4643970.SQ.FTS.B,
Zero
Cpn,
4/26/33
...
2,081
69
4656958.SQ.FTS.B,
Zero
Cpn,
4/30/33
...
3,103
127
4657373.SQ.FTS.B,
Zero
Cpn,
4/30/33
...
3,122
139
4661015.SQ.FTS.B,
Zero
Cpn,
5/01/33
...
2,307
88
4661890.SQ.FTS.B,
Zero
Cpn,
5/02/33
...
2,289
86
4662184.SQ.FTS.B,
Zero
Cpn,
5/02/33
...
2,428
46
4663096.SQ.FTS.B,
Zero
Cpn,
5/02/33
...
27,120
973
4663916.SQ.FTS.B,
Zero
Cpn,
5/02/33
...
24,742
585
4665676.SQ.FTS.B,
Zero
Cpn,
5/03/33
...
4,628
170
4675799.SQ.FTS.B,
Zero
Cpn,
5/05/33
...
3,286
84
4677893.SQ.FTS.B,
Zero
Cpn,
5/06/33
...
2,173
77
4691756.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
7,269
227
4692191.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
9,113
466
4692982.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
430
7
4693423.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
11,504
473
4693941.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
8,872
137
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4694140.SQ.FTS.B,
Zero
Cpn,
5/09/33
...
$
587
$
17
4701939.SQ.FTS.B,
Zero
Cpn,
5/10/33
...
1,446
61
4706450.SQ.FTS.B,
Zero
Cpn,
5/10/33
...
6,009
213
4706808.SQ.FTS.B,
Zero
Cpn,
5/10/33
...
5,406
178
4707248.SQ.FTS.B,
Zero
Cpn,
5/11/33
...
641
19
4711828.SQ.FTS.B,
Zero
Cpn,
5/12/33
...
3,618
63
4714060.SQ.FTS.B,
Zero
Cpn,
5/13/33
...
1,082
40
4714469.SQ.FTS.B,
Zero
Cpn,
5/14/33
...
828
23
4738688.SQ.FTS.B,
Zero
Cpn,
5/18/33
...
840
39
4747188.SQ.FTS.B,
Zero
Cpn,
5/19/33
...
553
16
4750103.SQ.FTS.B,
Zero
Cpn,
5/20/33
...
8,831
352
4750803.SQ.FTS.B,
Zero
Cpn,
5/21/33
...
3,382
109
4754132.SQ.FTS.B,
Zero
Cpn,
5/22/33
...
847
55
4764584.SQ.FTS.B,
Zero
Cpn,
5/23/33
...
523
22
4773604.SQ.FTS.B,
Zero
Cpn,
5/24/33
...
9,605
447
4774144.SQ.FTS.B,
Zero
Cpn,
5/24/33
...
1,718
85
4777755.SQ.FTS.B,
Zero
Cpn,
5/24/33
...
–
–
4777853.SQ.FTS.B,
Zero
Cpn,
5/24/33
...
1,347
57
4779678.SQ.FTS.B,
Zero
Cpn,
5/25/33
...
1,529
100
4782528.SQ.FTS.B,
Zero
Cpn,
5/26/33
...
102
2
4789370.SQ.FTS.B,
Zero
Cpn,
5/29/33
...
6,301
282
4790824.SQ.FTS.B,
Zero
Cpn,
5/29/33
...
3,330
85
4796651.SQ.FTS.B,
Zero
Cpn,
6/01/33
...
3,524
176
4807880.SQ.FTS.B,
Zero
Cpn,
6/02/33
...
19,813
427
4808500.SQ.FTS.B,
Zero
Cpn,
6/02/33
...
7,711
439
4815646.SQ.FTS.B,
Zero
Cpn,
6/05/33
...
5,300
386
4820091.SQ.FTS.B,
Zero
Cpn,
6/07/33
...
1,630
95
4820553.SQ.FTS.B,
Zero
Cpn,
6/07/33
...
10,164
317
4821904.SQ.FTS.B,
Zero
Cpn,
6/08/33
...
796
36
4830931.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
80
4
4831001.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
847
28
4831110.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
962
44
4831269.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
815
35
4831653.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
2,099
80
4832548.SQ.FTS.B,
Zero
Cpn,
6/10/33
...
4,121
100
4833520.SQ.FTS.B,
Zero
Cpn,
6/11/33
...
3,210
184
4834162.SQ.FTS.B,
Zero
Cpn,
6/12/33
...
208
11
4838333.SQ.FTS.B,
Zero
Cpn,
6/14/33
...
750
29
4839102.SQ.FTS.B,
Zero
Cpn,
6/14/33
...
1,596
63
4841116.SQ.FTS.B,
Zero
Cpn,
6/15/33
...
11,234
754
4842605.SQ.FTS.B,
Zero
Cpn,
6/15/33
...
4,000
150
4842631.SQ.FTS.B,
Zero
Cpn,
6/15/33
...
5,776
271
4843200.SQ.FTS.B,
Zero
Cpn,
6/15/33
...
186
15
4848370.SQ.FTS.B,
Zero
Cpn,
6/16/33
...
1,342
113
4848622.SQ.FTS.B,
Zero
Cpn,
6/16/33
...
2,069
167
4862341.SQ.FTS.B,
Zero
Cpn,
6/18/33
...
527
28
4862443.SQ.FTS.B,
Zero
Cpn,
6/18/33
...
7,578
438
4862938.SQ.FTS.B,
Zero
Cpn,
6/19/33
...
691
39
4862998.SQ.FTS.B,
Zero
Cpn,
6/19/33
...
1,298
65
4863062.SQ.FTS.B,
Zero
Cpn,
6/19/33
...
3,882
193
4863238.SQ.FTS.B,
Zero
Cpn,
6/19/33
...
2,993
167
4863412.SQ.FTS.B,
Zero
Cpn,
6/19/33
...
11,632
899
4867257.SQ.FTS.B,
Zero
Cpn,
6/20/33
...
607
16
4867843.SQ.FTS.B,
Zero
Cpn,
6/21/33
...
493
29
4868757.SQ.FTS.B,
Zero
Cpn,
6/21/33
...
3,219
186
4869815.SQ.FTS.B,
Zero
Cpn,
6/21/33
...
7,257
440
4871837.SQ.FTS.B,
Zero
Cpn,
6/22/33
...
1,490
59
4872072.SQ.FTS.B,
Zero
Cpn,
6/22/33
...
4,085
261
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
4873297.SQ.FTS.B,
Zero
Cpn,
6/22/33
...
$
113
$
7
4873313.SQ.FTS.B,
Zero
Cpn,
6/22/33
...
1,287
74
4873405.SQ.FTS.B,
Zero
Cpn,
6/22/33
...
5,886
364
4874157.SQ.FTS.B,
Zero
Cpn,
6/23/33
...
3,873
263
4874535.SQ.FTS.B,
Zero
Cpn,
6/23/33
...
977
55
4874544.SQ.FTS.B,
Zero
Cpn,
6/23/33
...
873
74
4874845.SQ.FTS.B,
Zero
Cpn,
6/23/33
...
3,811
333
4875940.SQ.FTS.B,
Zero
Cpn,
6/23/33
...
7,944
663
4877017.SQ.FTS.B,
Zero
Cpn,
6/24/33
...
360
10
4877067.SQ.FTS.B,
Zero
Cpn,
6/24/33
...
1,174
30
4877254.SQ.FTS.B,
Zero
Cpn,
6/25/33
...
1,462
116
4877394.SQ.FTS.B,
Zero
Cpn,
6/25/33
...
4,239
367
4877534.SQ.FTS.B,
Zero
Cpn,
6/25/33
...
1,841
52
4878103.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
627
43
4878787.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
4,067
270
4879124.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
4,098
341
4879371.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
536
16
4879728.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
2,694
151
4879828.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
1,574
93
4880273.SQ.FTS.B,
Zero
Cpn,
6/27/33
...
32,499
2,156
4880374.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
7,277
451
4880840.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
2,350
94
4880881.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
274
12
4881595.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
1,106
98
4881625.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
1,074
35
4881632.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
5,202
300
4881933.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
502
31
4881967.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
819
52
4882127.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
35,043
2,025
4882630.SQ.FTS.B,
Zero
Cpn,
6/28/33
...
5,042
438
4886903.SQ.FTS.B,
Zero
Cpn,
6/30/33
...
2,071
96
4886912.SQ.FTS.B,
Zero
Cpn,
6/30/33
...
2,287
61
4889268.SQ.FTS.B,
Zero
Cpn,
6/30/33
...
524
32
4889574.SQ.FTS.B,
Zero
Cpn,
7/01/33
...
2,976
115
4893066.SQ.FTS.B,
Zero
Cpn,
7/04/33
...
3,265
91
4894101.SQ.FTS.B,
Zero
Cpn,
7/04/33
...
12,955
842
4896547.SQ.FTS.B,
Zero
Cpn,
7/05/33
...
4,712
291
4898852.SQ.FTS.B,
Zero
Cpn,
7/06/33
...
2,213
106
4899151.SQ.FTS.B,
Zero
Cpn,
7/06/33
...
3,147
204
4907364.SQ.FTS.B,
Zero
Cpn,
7/11/33
...
1,373
42
4908064.SQ.FTS.B,
Zero
Cpn,
7/11/33
...
16,814
1,420
4916400.SQ.FTS.B,
Zero
Cpn,
7/14/33
...
955
69
4916673.SQ.FTS.B,
Zero
Cpn,
7/14/33
...
9,163
634
4922562.SQ.FTS.B,
Zero
Cpn,
7/14/33
...
6,112
508
4923493.SQ.FTS.B,
Zero
Cpn,
7/15/33
...
134
6
4925329.SQ.FTS.B,
Zero
Cpn,
7/18/33
...
1,389
45
4926230.SQ.FTS.B,
Zero
Cpn,
7/18/33
...
616
35
4928876.SQ.FTS.B,
Zero
Cpn,
7/19/33
...
514
45
4930391.SQ.FTS.B,
Zero
Cpn,
7/20/33
...
487
46
4931016.SQ.FTS.B,
Zero
Cpn,
7/20/33
...
717
69
4931020.SQ.FTS.B,
Zero
Cpn,
7/20/33
...
10,152
878
4935511.SQ.FTS.B,
Zero
Cpn,
7/22/33
...
450
35
4941224.SQ.FTS.B,
Zero
Cpn,
7/25/33
...
4,401
269
4945879.SQ.FTS.B,
Zero
Cpn,
7/27/33
...
73
5
4947272.SQ.FTS.B,
Zero
Cpn,
7/27/33
...
1,224
102
4954105.SQ.FTS.B,
Zero
Cpn,
7/28/33
...
2,531
247
4961597.SQ.FTS.B,
Zero
Cpn,
7/31/33
...
6,826
742
4964338.SQ.FTS.B,
Zero
Cpn,
8/01/33
...
1,028
59
Description
Principal
Amount
Value
Block,
Inc.
(continued)
4975322.SQ.FTS.B,
Zero
Cpn,
8/05/33
...
$
1,106
$
41
4976561.SQ.FTS.B,
Zero
Cpn,
8/07/33
...
2,306
150
4977248.SQ.FTS.B,
Zero
Cpn,
8/07/33
...
23,393
1,954
4978982.SQ.FTS.B,
Zero
Cpn,
8/08/33
...
8,763
1,241
4979694.SQ.FTS.B,
Zero
Cpn,
8/08/33
...
7,423
290
4980976.SQ.FTS.B,
Zero
Cpn,
8/08/33
...
3,062
130
4981159.SQ.FTS.B,
Zero
Cpn,
8/09/33
...
3,162
214
4981981.SQ.FTS.B,
Zero
Cpn,
8/09/33
...
488
55
4983108.SQ.FTS.B,
Zero
Cpn,
8/09/33
...
419
29
4984948.SQ.FTS.B,
Zero
Cpn,
8/10/33
...
93
9
4989442.SQ.FTS.B,
Zero
Cpn,
8/11/33
...
717
65
4990668.SQ.FTS.B,
Zero
Cpn,
8/12/33
...
1,655
126
4995431.SQ.FTS.B,
Zero
Cpn,
8/15/33
...
6,247
322
5004424.SQ.FTS.B,
Zero
Cpn,
8/16/33
...
1,835
128
5016072.SQ.FTS.B,
Zero
Cpn,
8/17/33
...
5,014
394
5023148.SQ.FTS.B,
Zero
Cpn,
8/18/33
...
974
153
5025752.SQ.FTS.B,
Zero
Cpn,
8/19/33
...
6,406
270
5025882.SQ.FTS.B,
Zero
Cpn,
8/19/33
...
1,669
76
5027373.SQ.FTS.B,
Zero
Cpn,
8/21/33
...
8,844
384
5030831.SQ.FTS.B,
Zero
Cpn,
8/22/33
...
5,213
228
5031471.SQ.FTS.B,
Zero
Cpn,
8/22/33
...
5,258
628
5033148.SQ.FTS.B,
Zero
Cpn,
8/23/33
...
471
36
5035669.SQ.FTS.B,
Zero
Cpn,
8/23/33
...
3,399
151
5037826.SQ.FTS.B,
Zero
Cpn,
8/24/33
...
334
25
5044258.SQ.FTS.B,
Zero
Cpn,
8/27/33
...
8,147
946
5044404.SQ.FTS.B,
Zero
Cpn,
8/27/33
...
391
44
5044794.SQ.FTS.B,
Zero
Cpn,
8/28/33
...
5,731
441
5045662.SQ.FTS.B,
Zero
Cpn,
8/28/33
...
2,040
93
5047314.SQ.FTS.B,
Zero
Cpn,
8/28/33
...
751
55
5047321.SQ.FTS.B,
Zero
Cpn,
8/28/33
...
5,110
260
5051538.SQ.FTS.B,
Zero
Cpn,
9/02/33
...
208
25
5059326.SQ.FTS.B,
Zero
Cpn,
9/04/33
...
13,048
607
5062120.SQ.FTS.B,
Zero
Cpn,
9/05/33
...
888
108
5062340.SQ.FTS.B,
Zero
Cpn,
9/06/33
...
2,080
136
5062512.SQ.FTS.B,
Zero
Cpn,
9/06/33
...
3,648
389
5065106.SQ.FTS.B,
Zero
Cpn,
9/07/33
...
354
54
5065196.SQ.FTS.B,
Zero
Cpn,
9/07/33
...
2,538
360
5065404.SQ.FTS.B,
Zero
Cpn,
9/07/33
...
2,680
127
5065943.SQ.FTS.B,
Zero
Cpn,
9/07/33
...
180
16
5067242.SQ.FTS.B,
Zero
Cpn,
9/08/33
...
5,386
744
5067403.SQ.FTS.B,
Zero
Cpn,
9/08/33
...
2,045
147
5068551.SQ.FTS.B,
Zero
Cpn,
9/08/33
...
7,198
1,341
5071139.SQ.FTS.B,
Zero
Cpn,
9/09/33
...
2,776
335
5072967.SQ.FTS.B,
Zero
Cpn,
9/10/33
...
542
36
5074442.SQ.FTS.B,
Zero
Cpn,
9/10/33
...
1,909
162
5075119.SQ.FTS.B,
Zero
Cpn,
9/10/33
...
1,660
263
5075424.SQ.FTS.B,
Zero
Cpn,
9/10/33
...
521
67
5077583.SQ.FTS.B,
Zero
Cpn,
9/11/33
...
3,691
197
5080816.SQ.FTS.B,
Zero
Cpn,
9/14/33
...
1,515
240
5081612.SQ.FTS.B,
Zero
Cpn,
9/14/33
...
1,324
159
5081691.SQ.FTS.B,
Zero
Cpn,
9/14/33
...
312
51
5082283.SQ.FTS.B,
Zero
Cpn,
9/15/33
...
184
11
5084934.SQ.FTS.B,
Zero
Cpn,
9/16/33
...
33,929
4,561
5085858.SQ.FTS.B,
Zero
Cpn,
9/16/33
...
884
111
5090272.SQ.FTS.B,
Zero
Cpn,
9/17/33
...
4,187
339
5092317.SQ.FTS.B,
Zero
Cpn,
9/18/33
...
875
146
5093863.SQ.FTS.B,
Zero
Cpn,
9/19/33
...
9,864
815
5094324.SQ.FTS.B,
Zero
Cpn,
9/19/33
...
446
26
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
63
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5094427.SQ.FTS.B,
Zero
Cpn,
9/20/33
...
$
2,121
$
314
5095917.SQ.FTS.B,
Zero
Cpn,
9/21/33
...
17,638
1,005
5096674.SQ.FTS.B,
Zero
Cpn,
9/21/33
...
13,763
723
5098275.SQ.FTS.B,
Zero
Cpn,
9/22/33
...
6,026
484
5100485.SQ.FTS.B,
Zero
Cpn,
9/23/33
...
4,264
236
5106538.SQ.FTS.B,
Zero
Cpn,
9/24/33
...
11,727
1,049
5107353.SQ.FTS.B,
Zero
Cpn,
9/24/33
...
1,383
179
5109145.SQ.FTS.B,
Zero
Cpn,
9/25/33
...
1,195
112
5110636.SQ.FTS.B,
Zero
Cpn,
9/26/33
...
2,456
425
5110762.SQ.FTS.B,
Zero
Cpn,
9/27/33
...
267
27
5111024.SQ.FTS.B,
Zero
Cpn,
9/27/33
...
3,059
318
5111117.SQ.FTS.B,
Zero
Cpn,
9/27/33
...
247
16
5112445.SQ.FTS.B,
Zero
Cpn,
9/28/33
...
344
73
5112955.SQ.FTS.B,
Zero
Cpn,
9/28/33
...
4,811
295
5113266.SQ.FTS.B,
Zero
Cpn,
9/28/33
...
1,765
265
5114206.SQ.FTS.B,
Zero
Cpn,
9/28/33
...
573
87
5117309.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
281
32
5117854.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
527
34
5119131.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
2,817
380
5119221.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
2,448
357
5119608.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
2,249
468
5121651.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
3,055
719
5124518.SQ.FTS.B,
Zero
Cpn,
9/30/33
...
11,687
1,679
5126438.SQ.FTS.B,
Zero
Cpn,
10/01/33
..
23,198
2,899
5128413.SQ.FTS.B,
Zero
Cpn,
10/02/33
..
1,332
75
5128523.SQ.FTS.B,
Zero
Cpn,
10/03/33
..
44
10
5131238.SQ.FTS.B,
Zero
Cpn,
10/04/33
..
2,860
408
5131669.SQ.FTS.B,
Zero
Cpn,
10/04/33
..
22,967
3,090
5132006.SQ.FTS.B,
Zero
Cpn,
10/04/33
..
790
93
5133917.SQ.FTS.B,
Zero
Cpn,
10/05/33
..
184
30
5136863.SQ.FTS.B,
Zero
Cpn,
10/06/33
..
759
89
5138072.SQ.FTS.B,
Zero
Cpn,
10/06/33
..
4,185
615
5138860.SQ.FTS.B,
Zero
Cpn,
10/06/33
..
501
33
5139115.SQ.FTS.B,
Zero
Cpn,
10/06/33
..
45
8
5141482.SQ.FTS.B,
Zero
Cpn,
10/07/33
..
2,827
475
5142028.SQ.FTS.B,
Zero
Cpn,
10/07/33
..
612
40
5142049.SQ.FTS.B,
Zero
Cpn,
10/07/33
..
537
98
5145760.SQ.FTS.B,
Zero
Cpn,
10/08/33
..
739
50
5145849.SQ.FTS.B,
Zero
Cpn,
10/08/33
..
25
2
5148107.SQ.FTS.B,
Zero
Cpn,
10/09/33
..
883
141
5148859.SQ.FTS.B,
Zero
Cpn,
10/10/33
..
781
121
5149269.SQ.FTS.B,
Zero
Cpn,
10/10/33
..
941
56
5150453.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
117
23
5150470.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
769
88
5152767.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
2,599
587
5152822.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
13,363
1,957
5153190.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
522
37
5153369.SQ.FTS.B,
Zero
Cpn,
10/11/33
..
12,680
1,697
5153611.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
1,253
258
5153956.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
2,957
416
5154181.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
955
65
5154314.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
2,780
290
5154612.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
1,314
200
5156156.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
1,210
288
5157152.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
4,186
756
5157279.SQ.FTS.B,
Zero
Cpn,
10/12/33
..
4,921
607
5157821.SQ.FTS.B,
Zero
Cpn,
10/13/33
..
4,950
828
5159258.SQ.FTS.B,
Zero
Cpn,
10/13/33
..
1,878
390
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5159356.SQ.FTS.B,
Zero
Cpn,
10/13/33
..
$
5,373
$
1,004
5159643.SQ.FTS.B,
Zero
Cpn,
10/13/33
..
1,281
218
5160236.SQ.FTS.B,
Zero
Cpn,
10/13/33
..
3,918
439
5162509.SQ.FTS.B,
Zero
Cpn,
10/14/33
..
55,221
7,570
5163000.SQ.FTS.B,
Zero
Cpn,
10/14/33
..
6,619
1,439
5165378.SQ.FTS.B,
Zero
Cpn,
10/14/33
..
2,214
343
5165754.SQ.FTS.B,
Zero
Cpn,
10/14/33
..
1,316
90
5168750.SQ.FTS.B,
Zero
Cpn,
10/15/33
..
2,545
400
5170843.SQ.FTS.B,
Zero
Cpn,
10/15/33
..
14,553
3,373
5171656.SQ.FTS.B,
Zero
Cpn,
10/16/33
..
875
64
5172517.SQ.FTS.B,
Zero
Cpn,
10/17/33
..
3,285
334
5172676.SQ.FTS.B,
Zero
Cpn,
10/17/33
..
1,509
407
5173148.SQ.FTS.B,
Zero
Cpn,
10/17/33
..
670
135
5175259.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
182
13
5175826.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
3,737
551
5176617.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
935
116
5176935.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
489
35
5177078.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
779
135
5179181.SQ.FTS.B,
Zero
Cpn,
10/18/33
..
331
62
5184366.SQ.FTS.B,
Zero
Cpn,
10/19/33
..
3,564
618
5189604.SQ.FTS.B,
Zero
Cpn,
10/20/33
..
4,636
1,015
5203664.SQ.FTS.B,
Zero
Cpn,
10/21/33
..
739
128
5203735.SQ.FTS.B,
Zero
Cpn,
10/21/33
..
6,108
1,456
5204240.SQ.FTS.B,
Zero
Cpn,
10/22/33
..
524
69
5210519.SQ.FTS.B,
Zero
Cpn,
10/24/33
..
11,522
1,674
5210616.SQ.FTS.B,
Zero
Cpn,
10/24/33
..
297
64
5210691.SQ.FTS.B,
Zero
Cpn,
10/24/33
..
1,929
473
5211496.SQ.FTS.B,
Zero
Cpn,
10/25/33
..
68
16
5219348.SQ.FTS.B,
Zero
Cpn,
10/26/33
..
266
59
5223636.SQ.FTS.B,
Zero
Cpn,
10/27/33
..
2,509
632
5230330.SQ.FTS.B,
Zero
Cpn,
10/28/33
..
1,320
288
5230521.SQ.FTS.B,
Zero
Cpn,
10/28/33
..
447
105
5230601.SQ.FTS.B,
Zero
Cpn,
10/28/33
..
5,805
1,481
5234006.SQ.FTS.B,
Zero
Cpn,
10/28/33
..
32,690
8,339
5235712.SQ.FTS.B,
Zero
Cpn,
10/29/33
..
665
132
5237941.SQ.FTS.B,
Zero
Cpn,
10/29/33
..
1,554
154
5238462.SQ.FTS.B,
Zero
Cpn,
10/29/33
..
96
29
5238828.SQ.FTS.B,
Zero
Cpn,
10/29/33
..
19,166
4,518
5240481.SQ.FTS.B,
Zero
Cpn,
10/30/33
..
1,280
327
5240546.SQ.FTS.B,
Zero
Cpn,
10/30/33
..
1,371
119
5240561.SQ.FTS.B,
Zero
Cpn,
10/30/33
..
993
230
5240923.SQ.FTS.B,
Zero
Cpn,
11/01/33
..
7,658
715
5241173.SQ.FTS.B,
Zero
Cpn,
11/01/33
..
659
111
5245023.SQ.FTS.B,
Zero
Cpn,
11/02/33
..
1,235
244
5245998.SQ.FTS.B,
Zero
Cpn,
11/02/33
..
161
46
5246013.SQ.FTS.B,
Zero
Cpn,
11/02/33
..
196
48
5246421.SQ.FTS.B,
Zero
Cpn,
11/02/33
..
10,251
1,017
5251953.SQ.FTS.B,
Zero
Cpn,
11/04/33
..
1,860
171
5252966.SQ.FTS.B,
Zero
Cpn,
11/04/33
..
2,234
305
5256925.SQ.FTS.B,
Zero
Cpn,
11/04/33
..
15,694
5,255
5257285.SQ.FTS.B,
Zero
Cpn,
11/04/33
..
78
14
5262837.SQ.FTS.B,
Zero
Cpn,
11/05/33
..
1,914
395
5264439.SQ.FTS.B,
Zero
Cpn,
11/05/33
..
477
87
5264599.SQ.FTS.B,
Zero
Cpn,
11/05/33
..
1,345
485
5266384.SQ.FTS.B,
Zero
Cpn,
11/05/33
..
783
79
5266471.SQ.FTS.B,
Zero
Cpn,
11/05/33
..
1,836
660
5267196.SQ.FTS.B,
Zero
Cpn,
11/06/33
..
2,396
607
5267302.SQ.FTS.B,
Zero
Cpn,
11/06/33
..
212
22
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Block,
Inc.
(continued)
5270825.SQ.FTS.B,
Zero
Cpn,
11/06/33
..
$
4,533
$
569
5273714.SQ.FTS.B,
Zero
Cpn,
11/08/33
..
2,043
415
5276774.SQ.FTS.B,
Zero
Cpn,
11/09/33
..
3,264
723
5276919.SQ.FTS.B,
Zero
Cpn,
11/09/33
..
1,806
472
5280986.SQ.FTS.B,
Zero
Cpn,
11/10/33
..
1,327
126
5284007.SQ.FTS.B,
Zero
Cpn,
11/11/33
..
1,049
402
5287039.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
8,750
2,335
5287635.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
531
151
5288567.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
833
174
5288588.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
54,975
8,805
5289293.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
4,459
1,723
5289917.SQ.FTS.B,
Zero
Cpn,
11/12/33
..
702
64
5292026.SQ.FTS.B,
Zero
Cpn,
11/13/33
..
5,106
1,168
5293536.SQ.FTS.B,
Zero
Cpn,
11/13/33
..
414
204
5293871.SQ.FTS.B,
Zero
Cpn,
11/14/33
..
2,186
233
5293907.SQ.FTS.B,
Zero
Cpn,
11/14/33
..
2,714
500
5293955.SQ.FTS.B,
Zero
Cpn,
11/14/33
..
5,278
1,325
5295185.SQ.FTS.B,
Zero
Cpn,
11/16/33
..
519
274
5295255.SQ.FTS.B,
Zero
Cpn,
11/16/33
..
2,835
340
5296246.SQ.FTS.B,
Zero
Cpn,
11/16/33
..
1,628
343
5300321.SQ.FTS.B,
Zero
Cpn,
11/17/33
..
564
60
5300323.SQ.FTS.B,
Zero
Cpn,
11/17/33
..
1,387
249
5303109.SQ.FTS.B,
Zero
Cpn,
11/17/33
..
690
171
5304517.SQ.FTS.B,
Zero
Cpn,
11/17/33
..
3,166
766
5304956.SQ.FTS.B,
Zero
Cpn,
11/17/33
..
1,128
321
5307959.SQ.FTS.B,
Zero
Cpn,
11/18/33
..
327
50
5308247.SQ.FTS.B,
Zero
Cpn,
11/18/33
..
1,896
424
5309391.SQ.FTS.B,
Zero
Cpn,
11/18/33
..
1,083
490
5311109.SQ.FTS.B,
Zero
Cpn,
11/18/33
..
7,600
1,794
5312373.SQ.FTS.B,
Zero
Cpn,
11/18/33
..
803
321
5316097.SQ.FTS.B,
Zero
Cpn,
11/19/33
..
154
33
5317234.SQ.FTS.B,
Zero
Cpn,
11/19/33
..
1,119
320
5317481.SQ.FTS.B,
Zero
Cpn,
11/19/33
..
593
104
5319057.SQ.FTS.B,
Zero
Cpn,
11/19/33
..
2,284
715
5321250.SQ.FTS.B,
Zero
Cpn,
11/20/33
..
872
150
5324739.SQ.FTS.B,
Zero
Cpn,
11/21/33
..
1,860
410
5325009.SQ.FTS.B,
Zero
Cpn,
11/22/33
..
6,374
1,875
5325109.SQ.FTS.B,
Zero
Cpn,
11/22/33
..
3,741
338
5325953.SQ.FTS.B,
Zero
Cpn,
11/23/33
..
27,323
7,055
5326788.SQ.FTS.B,
Zero
Cpn,
11/23/33
..
332
76
5330611.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
1,918
240
5331997.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
1,138
182
5332017.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
3,457
880
5332382.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
1,453
131
5333523.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
620
119
5333772.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
967
95
5334010.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
435
116
5334017.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
710
295
5334919.SQ.FTS.B,
Zero
Cpn,
11/24/33
..
1,216
194
5336258.SQ.FTS.B,
Zero
Cpn,
11/25/33
..
4,115
1,179
5337318.SQ.FTS.B,
Zero
Cpn,
11/25/33
..
1,470
565
5338841.SQ.FTS.B,
Zero
Cpn,
11/25/33
..
1,192
389
5357298.SQ.FTS.B,
Zero
Cpn,
11/26/33
..
100
70
5364437.SQ.FTS.B,
Zero
Cpn,
11/26/33
..
6,155
2,351
5364900.SQ.FTS.B,
Zero
Cpn,
11/26/33
..
1,391
143
5365379.SQ.FTS.B,
Zero
Cpn,
11/26/33
..
768
262
5369148.SQ.FTS.B,
Zero
Cpn,
11/27/33
..
969
374
5377413.SQ.FTS.B,
Zero
Cpn,
11/27/33
..
944
108
Description
Principal
Amount
Value
Block,
Inc.
(continued)
5377620.SQ.FTS.B,
Zero
Cpn,
11/27/33
..
$
13,408
$
3,729
5378585.SQ.FTS.B,
Zero
Cpn,
11/27/33
..
392
46
22,587,473
Freedom
Financial
Asset
Management
LLC
APP-11695207.FP.FTS.B,
15.49%,
12/12/23
1,033
1,035
APP-11878331.FP.FTS.B,
5.99%,
1/22/24
.
1,031
1,033
APP-12050449.FP.FTS.B,
5.99%,
1/22/24
.
408
409
APP-11694096.FP.FTS.B,
5.99%,
1/30/24
.
670
672
APP-12436440.FP.FTS.B,
18.99%,
2/09/24
3,005
331
APP-12139572.FP.FTS.B,
5.99%,
3/01/24
.
1,849
1,854
APP-12139722.FP.FTS.B,
5.99%,
3/02/24
.
1,945
1,950
APP-12050193.FP.FTS.B,
5.99%,
3/06/24
.
2,046
2,053
APP-12412711.FP.FTS.B,
5.99%,
3/16/24
.
2,010
2,019
APP-11550730.FP.FTS.B,
23.99%,
5/03/24
2,838
2,884
APP-17433587.FP.FTS.B,
5.99%,
8/12/24
.
4,215
4,249
APP-10161712.FP.FTS.B,
23.99%,
8/15/24
1,203
1,196
APP-16681389.FP.FTS.B,
5.99%,
9/01/24
.
2,881
2,899
APP-16681827.FP.FTS.B,
5.99%,
9/01/24
.
4,311
4,342
APP-16688861.FP.FTS.B,
5.99%,
9/01/24
.
4,639
4,673
APP-16667764.FP.FTS.B,
5.99%,
9/10/24
.
4,327
4,362
APP-17493062.FP.FTS.B,
5.99%,
9/13/24
.
3,050
3,068
APP-16660226.FP.FTS.B,
5.99%,
9/14/24
.
4,057
4,087
APP-16682744.FP.FTS.B,
11.24%,
9/14/24
9,413
9,500
APP-16652913.FP.FTS.B,
16.24%,
9/14/24
18,639
18,852
APP-17485719.FP.FTS.B,
5.99%,
9/15/24
.
3,881
3,914
APP-16473194.FP.FTS.B,
10.74%,
9/18/24
6,437
6,500
APP-17451429.FP.FTS.B,
5.99%,
9/24/24
.
5,254
5,307
APP-16336846.FP.FTS.B,
14.24%,
9/24/24
8,713
8,804
APP-17490514.FP.FTS.B,
5.99%,
9/27/24
.
3,193
3,224
APP-10901539.FP.FTS.B,
15.49%,
11/27/24
12,852
13,023
APP-10784743.FP.FTS.B,
23.99%,
11/28/24
5,971
6,086
APP-11694740.FP.FTS.B,
7.49%,
12/15/24
8,550
8,611
APP-11595022.FP.FTS.B,
8.49%,
12/16/24
7,918
7,983
APP-11731526.FP.FTS.B,
16.49%,
12/21/24
5,905
5,971
APP-11694509.FP.FTS.B,
9.74%,
12/22/24
1,836
1,839
APP-11736995.FP.FTS.B,
17.99%,
12/22/24
4,878
4,922
APP-12144621.FP.FTS.B,
25.49%,
1/21/25
5,054
5,106
APP-11798754.FP.FTS.B,
6.99%,
1/22/25
.
13,256
13,377
APP-12148090.FP.FTS.B,
9.74%,
1/22/25
.
8,125
8,198
APP-12173761.FP.FTS.B,
25.49%,
1/22/25
4,558
4,609
APP-12164966.FP.FTS.B,
11.74%,
1/23/25
9,628
9,718
APP-12179908.FP.FTS.B,
18.99%,
1/23/25
4,840
4,892
APP-12087415.FP.FTS.B,
12.99%,
1/25/25
12,203
12,344
APP-11924017.FP.FTS.B,
15.99%,
1/28/25
8,598
8,676
APP-11509368.FP.FTS.B,
14.99%,
1/29/25
11,312
11,446
APP-12414484.FP.FTS.B,
17.24%,
2/02/25
16,287
16,273
APP-12287483.FP.FTS.B,
12.99%,
2/03/25
11,262
11,301
APP-11733782.FP.FTS.B,
15.74%,
2/03/25
10,185
10,152
APP-12175602.FP.FTS.B,
17.49%,
2/25/25
6,646
6,725
APP-12029075.FP.FTS.B,
15.99%,
3/05/25
10,153
10,164
APP-12124683.FP.FTS.B,
16.99%,
3/06/25
6,593
6,575
APP-12172939.FP.FTS.B,
9.74%,
3/07/25
.
8,052
8,103
APP-10156554.FP.FTS.B,
9.49%,
3/08/25
.
12,350
12,450
APP-12188446.FP.FTS.B,
11.99%,
3/08/25
9,876
9,945
APP-12168882.FP.FTS.B,
17.49%,
3/08/25
12,421
12,438
APP-12175546.FP.FTS.B,
17.99%,
3/08/25
10,055
1,083
APP-12031531.FP.FTS.B,
20.99%,
3/08/25
8,868
8,824
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
65
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12139801.FP.FTS.B,
9.49%,
3/11/25
.
$
10,516
$
10,607
APP-11853561.FP.FTS.B,
17.99%,
3/18/25
7,758
7,809
APP-12050722.FP.FTS.B,
9.49%,
3/20/25
.
9,779
9,871
APP-12413819.FP.FTS.B,
16.99%,
3/21/25
5,780
5,825
APP-12106203.FP.FTS.B,
9.74%,
3/22/25
.
9,409
9,503
APP-12270743.FP.FTS.B,
16.49%,
3/22/25
7,960
8,031
APP-12381356.FP.FTS.B,
9.74%,
3/24/25
.
7,630
7,703
APP-12414413.FP.FTS.B,
17.99%,
3/25/25
8,437
8,517
APP-12185763.FP.FTS.B,
12.99%,
4/08/25
13,263
13,335
APP-15099844.FP.FTS.B,
19.99%,
7/15/25
9,953
9,907
APP-15063599.FP.FTS.B,
8.24%,
7/23/25
.
14,997
15,150
APP-12210758.FP.FTS.B,
22.49%,
7/25/25
3,066
3,092
APP-15073908.FP.FTS.B,
22.74%,
7/25/25
6,456
6,402
APP-15052562.FP.FTS.B,
10.24%,
7/29/25
19,581
19,813
APP-15077310.FP.FTS.B,
25.49%,
7/29/25
7,614
7,505
APP-17112174.FP.FTS.B,
11.74%,
8/12/25
8,262
8,330
APP-10157776.FP.FTS.B,
22.49%,
8/13/25
21,041
22,085
APP-12017283.FP.FTS.B,
14.24%,
8/22/25
21,816
7,200
APP-17041993.FP.FTS.B,
13.74%,
9/05/25
23,207
23,399
APP-17017611.FP.FTS.B,
11.99%,
9/06/25
27,222
27,447
APP-16692788.FP.FTS.B,
10.74%,
9/10/25
7,805
7,876
APP-16716169.FP.FTS.B,
9.49%,
9/14/25
.
10,175
10,277
APP-17284270.FP.FTS.B,
13.74%,
9/15/25
26,360
26,560
APP-16721812.FP.FTS.B,
14.24%,
9/15/25
9,104
9,182
APP-16622583.FP.FTS.B,
15.99%,
9/16/25
9,076
9,022
APP-17495714.FP.FTS.B,
11.74%,
9/26/25
9,843
9,957
APP-10833798.FP.FTS.B,
15.99%,
10/18/25
..........................
11,563
11,873
APP-11579289.FP.FTS.B,
10.99%,
12/05/25
7,681
7,769
APP-10861885.FP.FTS.B,
15.49%,
12/17/25
..........................
12,979
13,185
APP-11737115.FP.FTS.B,
12.49%,
12/18/25
9,193
9,334
APP-11531737.FP.FTS.B,
13.99%,
12/22/25
8,048
8,171
APP-11442801.FP.FTS.B,
16.49%,
12/22/25
11,807
12,145
APP-10314724.FP.FTS.B,
11.74%,
1/08/26
14,258
14,401
APP-12165054.FP.FTS.B,
10.24%,
1/14/26
11,550
11,700
APP-12174416.FP.FTS.B,
10.24%,
1/22/26
12,529
12,726
APP-12171910.FP.FTS.B,
12.49%,
1/22/26
9,830
9,982
APP-11799040.FP.FTS.B,
15.74%,
1/22/26
24,997
25,536
APP-12006366.FP.FTS.B,
20.99%,
1/22/26
6,595
6,781
APP-11687753.FP.FTS.B,
13.49%,
1/25/26
13,819
14,071
APP-11657555.FP.FTS.B,
18.49%,
1/28/26
29,738
30,669
APP-12287012.FP.FTS.B,
17.49%,
2/01/26
9,145
9,345
APP-12458983.FP.FTS.B,
15.99%,
2/02/26
7,854
7,958
APP-11579337.FP.FTS.B,
10.99%,
2/04/26
16,301
16,540
APP-11595092.FP.FTS.B,
19.49%,
2/05/26
26,588
27,184
APP-12168235.FP.FTS.B,
19.49%,
2/23/26
6,033
6,189
APP-12139578.FP.FTS.B,
15.24%,
2/24/26
7,424
7,543
APP-12119897.FP.FTS.B,
10.24%,
2/28/26
13,666
13,889
APP-11731020.FP.FTS.B,
19.99%,
2/28/26
21,481
15,332
APP-12176488.FP.FTS.B,
14.99%,
3/04/26
13,170
13,372
APP-12050179.FP.FTS.B,
16.49%,
3/07/26
11,218
11,405
APP-12128364.FP.FTS.B,
13.24%,
3/08/26
14,306
14,415
APP-12463162.FP.FTS.B,
18.49%,
3/10/26
10,722
10,920
APP-12209184.FP.FTS.B,
19.49%,
3/11/26
3,823
3,806
APP-12287014.FP.FTS.B,
16.99%,
3/15/26
10,428
10,634
APP-12466087.FP.FTS.B,
18.99%,
3/15/26
9,806
1,077
APP-12397804.FP.FTS.B,
16.99%,
3/16/26
8,405
8,575
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12400371.FP.FTS.B,
16.99%,
3/16/26
$
12,035
$
12,205
APP-12372783.FP.FTS.B,
14.99%,
3/17/26
2,987
2,984
APP-12431691.FP.FTS.B,
9.49%,
3/20/26
.
19,262
19,566
APP-12286988.FP.FTS.B,
10.99%,
3/21/26
30,941
31,441
APP-12448349.FP.FTS.B,
14.99%,
3/23/26
15,801
3,146
APP-12443256.FP.FTS.B,
16.74%,
3/24/26
12,652
12,724
APP-12414591.FP.FTS.B,
19.49%,
3/24/26
6,416
6,593
APP-12459668.FP.FTS.B,
14.99%,
3/25/26
12,864
13,163
APP-12464227.FP.FTS.B,
16.24%,
3/25/26
21,196
21,817
APP-12414582.FP.FTS.B,
18.49%,
3/25/26
13,526
13,876
APP-12343526.FP.FTS.B,
16.99%,
5/21/26
18,697
19,050
APP-12199831.FP.FTS.B,
16.99%,
5/22/26
11,101
11,287
APP-15117837.FP.FTS.B,
22.24%,
7/15/26
11,394
11,541
APP-15068337.FP.FTS.B,
8.99%,
7/20/26
.
12,628
12,814
APP-14891119.FP.FTS.B,
18.74%,
7/24/26
37,592
38,270
APP-15053612.FP.FTS.B,
13.99%,
7/26/26
8,540
8,687
APP-15053337.FP.FTS.B,
17.99%,
7/26/26
9,039
9,212
APP-15004884.FP.FTS.B,
15.99%,
7/27/26
20,018
20,383
APP-15119191.FP.FTS.B,
18.49%,
7/28/26
4,725
1,469
APP-14912105.FP.FTS.B,
20.99%,
7/29/26
14,201
14,542
APP-16636359.FP.FTS.B,
14.74%,
7/30/26
19,563
19,861
APP-16690474.FP.FTS.B,
9.24%,
8/01/26
.
22,352
22,627
APP-16637564.FP.FTS.B,
15.99%,
9/03/26
6,537
6,610
APP-16719236.FP.FTS.B,
10.49%,
9/04/26
13,497
13,669
APP-16676602.FP.FTS.B,
11.24%,
9/05/26
18,826
19,062
APP-10573456.FP.FTS.B,
17.49%,
9/10/26
11,130
6,306
APP-16630984.FP.FTS.B,
14.49%,
9/12/26
11,548
11,713
APP-17112604.FP.FTS.B,
11.74%,
9/15/26
19,051
19,299
APP-16335651.FP.FTS.B,
14.49%,
9/15/26
13,005
13,214
APP-17464221.FP.FTS.B,
16.74%,
9/15/26
10,709
10,836
APP-17032039.FP.FTS.B,
10.49%,
9/16/26
19,483
19,780
APP-16710569.FP.FTS.B,
15.49%,
9/16/26
19,318
19,638
APP-16640009.FP.FTS.B,
12.49%,
9/19/26
13,997
14,231
APP-10406165.FP.FTS.B,
18.99%,
9/20/26
12,513
12,866
APP-16275007.FP.FTS.B,
12.49%,
9/22/26
10,647
10,807
APP-17279512.FP.FTS.B,
16.74%,
9/22/26
11,666
11,820
APP-17112160.FP.FTS.B,
12.24%,
9/25/26
19,177
19,479
APP-17112272.FP.FTS.B,
14.24%,
9/25/26
17,452
17,734
APP-17457461.FP.FTS.B,
16.74%,
9/27/26
11,002
11,172
APP-16637316.FP.FTS.B,
18.24%,
9/27/26
14,063
14,264
APP-16632934.FP.FTS.B,
14.49%,
10/15/26
..........................
42,102
7,634
APP-11021919.FP.FTS.B,
17.99%,
11/03/26
12,896
13,204
APP-11381442.FP.FTS.B,
20.49%,
11/26/26
18,051
18,612
APP-11744624.FP.FTS.B,
13.24%,
12/09/26
16,822
17,060
APP-11579549.FP.FTS.B,
13.49%,
12/15/26
33,052
33,582
APP-11700609.FP.FTS.B,
19.99%,
12/15/26
36,789
37,863
APP-11737058.FP.FTS.B,
22.49%,
12/15/26
7,320
7,521
APP-11671786.FP.FTS.B,
22.49%,
12/16/26
7,126
755
APP-11736851.FP.FTS.B,
19.99%,
12/17/26
11,396
1,376
APP-11693245.FP.FTS.B,
18.49%,
12/18/26
15,206
15,672
APP-11719573.FP.FTS.B,
19.99%,
12/18/26
9,596
9,886
APP-11022370.FP.FTS.B,
16.49%,
12/20/26
7,657
7,805
APP-11733566.FP.FTS.B,
19.24%,
12/20/26
5,362
5,345
APP-11740523.FP.FTS.B,
10.99%,
12/21/26
17,078
17,369
APP-11694985.FP.FTS.B,
12.99%,
12/21/26
9,710
9,884
APP-11730592.FP.FTS.B,
17.99%,
12/21/26
30,685
31,530
APP-11723942.FP.FTS.B,
19.49%,
12/21/26
35,276
36,313
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11731905.FP.FTS.B,
18.99%,
12/22/26
$
15,821
$
1,746
APP-11730543.FP.FTS.B,
19.99%,
12/22/26
10,561
10,838
APP-11401848.FP.FTS.B,
15.49%,
1/05/27
9,385
9,551
APP-12116526.FP.FTS.B,
18.99%,
1/05/27
11,045
11,208
APP-11146646.FP.FTS.B,
12.74%,
1/07/27
23,457
12,147
APP-11397497.FP.FTS.B,
11.99%,
1/10/27
16,736
17,050
APP-11410185.FP.FTS.B,
22.49%,
1/10/27
22,265
22,732
APP-11413059.FP.FTS.B,
13.74%,
1/11/27
9,398
9,562
APP-11946615.FP.FTS.B,
16.49%,
1/11/27
16,386
16,645
APP-12090452.FP.FTS.B,
16.99%,
1/15/27
14,981
15,246
APP-12139980.FP.FTS.B,
19.99%,
1/15/27
2,576
2,569
APP-12032875.FP.FTS.B,
11.24%,
1/16/27
17,916
18,193
APP-12073890.FP.FTS.B,
10.99%,
1/20/27
15,586
15,831
APP-12132313.FP.FTS.B,
11.24%,
1/21/27
9,231
9,378
APP-12173162.FP.FTS.B,
17.49%,
1/21/27
12,448
12,721
APP-11798808.FP.FTS.B,
10.99%,
1/22/27
14,197
14,427
APP-12172519.FP.FTS.B,
11.24%,
1/22/27
10,657
10,830
APP-12154405.FP.FTS.B,
14.49%,
1/22/27
10,902
11,098
APP-12169743.FP.FTS.B,
24.24%,
1/22/27
23,160
23,733
APP-12186510.FP.FTS.B,
9.74%,
1/23/27
.
29,303
29,788
APP-12107351.FP.FTS.B,
16.49%,
1/23/27
16,205
16,621
APP-12105986.FP.FTS.B,
10.99%,
1/25/27
24,389
24,808
APP-12209707.FP.FTS.B,
25.49%,
1/25/27
8,613
8,865
APP-11595106.FP.FTS.B,
13.49%,
1/26/27
10,058
10,245
APP-11579435.FP.FTS.B,
15.49%,
1/28/27
13,817
14,183
APP-11694310.FP.FTS.B,
16.74%,
1/28/27
32,891
33,578
APP-11739118.FP.FTS.B,
16.99%,
1/28/27
12,967
1,506
APP-11595260.FP.FTS.B,
18.99%,
1/29/27
11,037
11,352
APP-12414657.FP.FTS.B,
10.99%,
2/01/27
26,230
26,575
APP-11711469.FP.FTS.B,
19.99%,
2/01/27
13,232
1,445
APP-11705115.FP.FTS.B,
21.49%,
2/01/27
38,502
39,123
APP-11732543.FP.FTS.B,
20.99%,
2/03/27
11,330
11,541
APP-11694211.FP.FTS.B,
11.99%,
2/04/27
36,421
37,132
APP-11724908.FP.FTS.B,
12.74%,
2/04/27
29,612
30,112
APP-11709701.FP.FTS.B,
16.49%,
2/04/27
11,119
11,310
APP-11712504.FP.FTS.B,
17.99%,
2/04/27
7,537
7,671
APP-11725393.FP.FTS.B,
17.99%,
2/04/27
37,685
38,351
APP-11731565.FP.FTS.B,
18.99%,
2/04/27
38,652
21,722
APP-11732774.FP.FTS.B,
19.49%,
2/04/27
3,997
3,969
APP-11694359.FP.FTS.B,
19.99%,
2/04/27
8,664
8,820
APP-11660434.FP.FTS.B,
20.49%,
2/04/27
22,402
22,944
APP-11694079.FP.FTS.B,
10.99%,
2/05/27
15,751
16,007
APP-11722179.FP.FTS.B,
11.99%,
2/05/27
20,179
20,513
APP-11740935.FP.FTS.B,
13.99%,
2/05/27
36,566
37,190
APP-11608429.FP.FTS.B,
17.49%,
2/05/27
30,064
30,606
APP-09759707.FP.FTS.B,
18.99%,
2/05/27
5,699
5,804
APP-11742867.FP.FTS.B,
23.24%,
2/05/27
15,654
15,951
APP-12337990.FP.FTS.B,
16.49%,
2/07/27
6,009
6,098
APP-11738196.FP.FTS.B,
21.99%,
2/15/27
8,587
8,758
APP-11553389.FP.FTS.B,
12.24%,
2/22/27
14,807
15,054
APP-12161019.FP.FTS.B,
20.49%,
2/22/27
8,235
8,407
APP-12029572.FP.FTS.B,
16.99%,
2/24/27
14,013
14,365
APP-12033253.FP.FTS.B,
17.99%,
2/24/27
10,672
10,995
APP-12159528.FP.FTS.B,
18.99%,
2/28/27
11,291
11,562
APP-12050224.FP.FTS.B,
11.74%,
3/01/27
30,967
31,413
APP-12168636.FP.FTS.B,
13.24%,
3/01/27
14,819
15,030
APP-12211243.FP.FTS.B,
17.24%,
3/01/27
27,514
27,877
APP-12107891.FP.FTS.B,
17.99%,
3/01/27
12,061
12,203
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12208717.FP.FTS.B,
21.74%,
3/01/27
$
19,437
$
19,649
APP-12150597.FP.FTS.B,
25.49%,
3/01/27
8,423
8,508
APP-12158633.FP.FTS.B,
23.24%,
3/02/27
15,811
15,985
APP-12005996.FP.FTS.B,
15.49%,
3/03/27
8,030
8,114
APP-12105218.FP.FTS.B,
10.99%,
3/05/27
18,388
18,696
APP-12101962.FP.FTS.B,
13.49%,
3/05/27
12,388
2,327
APP-12214905.FP.FTS.B,
16.49%,
3/05/27
9,097
9,243
APP-12159801.FP.FTS.B,
16.99%,
3/05/27
21,045
21,422
APP-11741297.FP.FTS.B,
19.24%,
3/05/27
16,276
16,516
APP-12164096.FP.FTS.B,
21.49%,
3/05/27
11,252
11,402
APP-12168034.FP.FTS.B,
18.99%,
3/06/27
12,127
12,309
APP-12172482.FP.FTS.B,
20.49%,
3/06/27
23,115
23,376
APP-12050159.FP.FTS.B,
13.24%,
3/07/27
25,797
26,221
APP-12125835.FP.FTS.B,
19.99%,
3/07/27
11,504
2,493
APP-12140862.FP.FTS.B,
8.99%,
3/08/27
.
18,837
19,181
APP-12105970.FP.FTS.B,
10.99%,
3/08/27
16,471
16,736
APP-12155604.FP.FTS.B,
11.24%,
3/08/27
11,544
11,731
APP-12097459.FP.FTS.B,
13.24%,
3/08/27
18,615
18,922
APP-12106008.FP.FTS.B,
13.49%,
3/08/27
11,753
11,950
APP-12050743.FP.FTS.B,
14.99%,
3/08/27
13,229
13,448
APP-12150738.FP.FTS.B,
16.74%,
3/08/27
32,765
33,340
APP-12432804.FP.FTS.B,
13.24%,
3/09/27
27,026
27,448
APP-12366828.FP.FTS.B,
16.99%,
3/09/27
12,058
12,242
APP-11965580.FP.FTS.B,
20.49%,
3/09/27
21,498
21,861
APP-11508449.FP.FTS.B,
8.49%,
3/10/27
.
22,135
22,460
APP-12216897.FP.FTS.B,
10.99%,
3/10/27
29,019
29,446
APP-12448900.FP.FTS.B,
13.24%,
3/10/27
25,515
2,957
APP-12451319.FP.FTS.B,
17.49%,
3/10/27
4,425
1,061
APP-12203395.FP.FTS.B,
22.49%,
3/10/27
8,764
8,921
APP-12199670.FP.FTS.B,
10.99%,
3/11/27
24,039
24,388
APP-12459432.FP.FTS.B,
13.24%,
3/11/27
18,405
18,722
APP-12464629.FP.FTS.B,
16.49%,
3/11/27
11,336
11,535
APP-12459441.FP.FTS.B,
17.49%,
3/11/27
12,890
13,096
APP-12210087.FP.FTS.B,
18.74%,
3/11/27
38,590
39,297
APP-12071137.FP.FTS.B,
19.99%,
3/11/27
21,175
21,558
APP-12460903.FP.FTS.B,
10.99%,
3/15/27
29,077
29,543
APP-12467297.FP.FTS.B,
13.24%,
3/15/27
23,278
23,661
APP-12442169.FP.FTS.B,
14.49%,
3/15/27
16,498
3,067
APP-12291770.FP.FTS.B,
16.49%,
3/15/27
4,399
4,397
APP-12420649.FP.FTS.B,
16.74%,
3/15/27
32,334
32,888
APP-12379303.FP.FTS.B,
13.24%,
3/16/27
18,822
19,125
APP-12345397.FP.FTS.B,
19.74%,
3/16/27
9,885
9,800
APP-12196952.FP.FTS.B,
19.99%,
3/16/27
12,221
12,458
APP-12407602.FP.FTS.B,
19.99%,
3/16/27
5,256
5,227
APP-12462116.FP.FTS.B,
17.49%,
3/18/27
22,125
22,557
APP-11948900.FP.FTS.B,
17.74%,
3/18/27
33,614
34,270
APP-12418630.FP.FTS.B,
17.99%,
3/18/27
15,918
16,171
APP-12433361.FP.FTS.B,
18.49%,
3/18/27
14,434
14,730
APP-12461150.FP.FTS.B,
18.49%,
3/18/27
13,827
14,110
APP-12421799.FP.FTS.B,
19.74%,
3/18/27
21,804
22,196
APP-12463831.FP.FTS.B,
19.99%,
3/18/27
7,642
7,813
APP-12357813.FP.FTS.B,
10.99%,
3/20/27
23,330
23,735
APP-12287686.FP.FTS.B,
11.24%,
3/20/27
17,539
17,846
APP-12422648.FP.FTS.B,
13.24%,
3/20/27
17,169
17,480
APP-12380981.FP.FTS.B,
13.74%,
3/20/27
8,125
8,274
APP-12230901.FP.FTS.B,
20.24%,
3/20/27
39,911
40,526
APP-12412709.FP.FTS.B,
20.24%,
3/20/27
36,802
37,590
APP-12424835.FP.FTS.B,
23.99%,
3/20/27
25,943
26,537
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
67
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12459776.FP.FTS.B,
10.99%,
3/21/27
$
24,639
$
25,073
APP-12287335.FP.FTS.B,
13.24%,
3/21/27
15,995
16,280
APP-12402614.FP.FTS.B,
13.74%,
3/21/27
20,069
20,431
APP-12450320.FP.FTS.B,
19.99%,
3/21/27
10,887
11,132
APP-12176796.FP.FTS.B,
8.99%,
3/22/27
.
20,138
20,443
APP-12345892.FP.FTS.B,
13.49%,
3/22/27
11,635
11,846
APP-12345261.FP.FTS.B,
15.49%,
3/22/27
18,499
18,878
APP-12443158.FP.FTS.B,
17.49%,
3/22/27
9,200
9,406
APP-12270745.FP.FTS.B,
17.74%,
3/23/27
29,449
30,118
APP-12429877.FP.FTS.B,
19.74%,
3/23/27
23,771
24,255
APP-12435676.FP.FTS.B,
20.49%,
3/23/27
31,270
32,024
APP-12420863.FP.FTS.B,
17.49%,
3/24/27
14,657
14,985
APP-12463499.FP.FTS.B,
17.49%,
3/24/27
17,658
18,065
APP-12468743.FP.FTS.B,
18.24%,
3/24/27
24,656
25,223
APP-12468934.FP.FTS.B,
19.99%,
3/24/27
8,116
4,975
APP-12408200.FP.FTS.B,
21.74%,
3/24/27
8,721
8,689
APP-12468566.FP.FTS.B,
19.74%,
3/25/27
25,358
25,622
APP-11872544.FP.FTS.B,
19.99%,
3/25/27
10,695
10,962
APP-12175594.FP.FTS.B,
18.99%,
4/01/27
11,127
11,219
APP-11709913.FP.FTS.B,
21.49%,
4/02/27
41,158
41,845
APP-11744076.FP.FTS.B,
17.49%,
4/05/27
18,610
10,528
APP-12171005.FP.FTS.B,
23.99%,
4/08/27
25,327
25,742
APP-12408935.FP.FTS.B,
19.99%,
4/17/27
11,224
11,378
APP-12133804.FP.FTS.B,
10.99%,
4/30/27
17,078
17,329
APP-12176276.FP.FTS.B,
19.99%,
5/09/27
7,391
7,388
APP-14835801.FP.FTS.B,
11.24%,
6/05/27
23,844
24,124
APP-15016056.FP.FTS.B,
19.24%,
6/06/27
28,709
28,967
APP-14953646.FP.FTS.B,
24.24%,
7/06/27
36,370
36,289
APP-15007182.FP.FTS.B,
16.99%,
7/11/27
9,292
9,404
APP-15105817.FP.FTS.B,
11.74%,
7/15/27
17,337
17,575
APP-15110260.FP.FTS.B,
13.99%,
7/15/27
25,529
25,866
APP-14523455.FP.FTS.B,
17.24%,
7/15/27
32,000
32,268
APP-15113452.FP.FTS.B,
18.49%,
7/15/27
10,532
10,628
APP-15103060.FP.FTS.B,
19.99%,
7/15/27
12,985
13,091
APP-15871573.FP.FTS.B,
10.99%,
7/20/27
26,420
26,741
11.99%,
7/21/27
11,872
12,056
APP-16662334.FP.FTS.B,
15.24%,
7/26/27
21,133
21,416
APP-15066733.FP.FTS.B,
18.99%,
7/26/27
11,653
11,795
APP-15119411.FP.FTS.B,
9.74%,
7/28/27
.
18,403
18,714
APP-15116487.FP.FTS.B,
21.49%,
7/28/27
14,297
14,495
APP-14371097.FP.FTS.B,
14.74%,
7/29/27
40,387
41,131
APP-16465567.FP.FTS.B,
15.49%,
7/30/27
12,238
12,421
APP-16645516.FP.FTS.B,
10.99%,
7/31/27
16,744
16,932
APP-12402250.FP.FTS.B,
19.99%,
7/31/27
21,462
21,563
APP-16640475.FP.FTS.B,
12.74%,
8/02/27
14,651
14,820
APP-16637899.FP.FTS.B,
15.49%,
8/02/27
15,656
15,821
APP-17319474.FP.FTS.B,
16.49%,
8/07/27
41,486
41,882
APP-17245315.FP.FTS.B,
17.74%,
8/09/27
8,789
8,827
APP-16283011.FP.FTS.B,
11.74%,
8/10/27
40,710
41,190
APP-17385444.FP.FTS.B,
15.24%,
8/12/27
20,698
20,930
APP-15122204.FP.FTS.B,
20.74%,
8/28/27
10,782
1,032
APP-15106325.FP.FTS.B,
23.24%,
8/28/27
16,072
16,224
APP-16679044.FP.FTS.B,
8.99%,
9/01/27
.
10,881
11,002
APP-16632155.FP.FTS.B,
11.49%,
9/01/27
14,257
14,427
APP-16448250.FP.FTS.B,
13.49%,
9/01/27
5,757
5,819
APP-16676570.FP.FTS.B,
15.24%,
9/01/27
17,409
17,472
APP-16718578.FP.FTS.B,
15.74%,
9/02/27
9,144
9,249
APP-16852920.FP.FTS.B,
10.99%,
9/04/27
31,650
32,045
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-16640455.FP.FTS.B,
10.99%,
9/05/27
$
18,340
$
18,561
APP-16800634.FP.FTS.B,
15.99%,
9/10/27
40,907
41,435
APP-16335596.FP.FTS.B,
10.99%,
9/12/27
21,740
22,050
APP-16627732.FP.FTS.B,
12.99%,
9/12/27
20,624
20,928
APP-16399010.FP.FTS.B,
15.24%,
9/12/27
17,564
17,812
APP-15052242.FP.FTS.B,
11.74%,
9/13/27
41,053
41,949
APP-16664397.FP.FTS.B,
12.99%,
9/13/27
20,583
20,891
APP-17484422.FP.FTS.B,
15.24%,
9/13/27
19,455
2,000
APP-10624729.FP.FTS.B,
15.74%,
9/13/27
22,493
22,834
APP-17458875.FP.FTS.B,
16.49%,
9/13/27
4,165
4,215
APP-16687847.FP.FTS.B,
9.49%,
9/15/27
.
16,217
16,455
APP-17011228.FP.FTS.B,
14.74%,
9/15/27
41,764
42,381
APP-16720658.FP.FTS.B,
15.24%,
9/15/27
32,258
32,744
APP-17027051.FP.FTS.B,
14.49%,
9/16/27
11,815
11,976
APP-17010091.FP.FTS.B,
15.49%,
9/18/27
33,474
34,010
APP-16637461.FP.FTS.B,
18.49%,
9/20/27
16,054
16,251
APP-17497296.FP.FTS.B,
17.74%,
9/23/27
10,963
11,060
APP-17082038.FP.FTS.B,
12.49%,
9/26/27
25,292
25,697
APP-17490395.FP.FTS.B,
15.24%,
9/26/27
27,549
27,982
APP-17115062.FP.FTS.B,
17.99%,
9/26/27
16,504
16,676
APP-17461708.FP.FTS.B,
12.49%,
9/27/27
26,092
26,517
APP-17239533.FP.FTS.B,
13.74%,
9/27/27
16,580
16,854
APP-17504832.FP.FTS.B,
13.74%,
9/27/27
17,936
18,250
APP-17102136.FP.FTS.B,
14.24%,
9/27/27
41,435
42,120
APP-17485387.FP.FTS.B,
15.24%,
9/30/27
31,203
31,697
APP-10590417.FP.FTS.B,
17.99%,
9/30/27
18,272
3,939
APP-16677695.FP.FTS.B,
12.99%,
10/14/27
..........................
22,904
23,245
APP-15098807.FP.FTS.B,
26.99%,
10/28/27
..........................
11,127
11,164
APP-12415203.FP.FTS.B,
21.24%,
11/21/27
21,910
4,873
APP-15602293.FP.FTS.B,
15.49%,
1/30/28
14,102
1,533
5,555,864
LendingClub
Corp.
-
LCX
159198648.LC.FTS.B,
17.74%,
9/25/24
...
3,700
3,691
158981937.LC.FTS.B,
16.12%,
9/26/24
...
3,717
3,714
161888275.LC.FTS.B,
15.24%,
11/14/24
..
4,274
4,222
162030908.LC.FTS.B,
12.4%,
11/19/24
...
4,350
4,099
162266279.LC.FTS.B,
11.02%,
11/22/24
..
7,962
7,820
162318190.LC.FTS.B,
13.08%,
12/13/24
..
1,590
1,486
163115691.LC.FTS.B,
13.08%,
12/13/24
..
11,190
10,979
163479653.LC.FTS.B,
20.55%,
12/30/24
..
3,827
3,833
163615560.LC.FTS.B,
20.55%,
12/30/24
..
4,964
4,990
163919650.LC.FTS.B,
20.55%,
12/30/24
..
2,018
2,029
164050345.LC.FTS.B,
13.08%,
12/31/24
..
9,403
9,173
164510336.LC.FTS.B,
13.08%,
1/15/25
...
9,487
9,045
164586812.LC.FTS.B,
8.19%,
1/27/25
...
3,991
3,829
161858763.LC.FTS.B,
14.3%,
1/29/25
...
1,536
1,268
162966512.LC.FTS.B,
11.02%,
2/12/25
...
7,398
6,860
166880211.LC.FTS.B,
8.19%,
2/18/25
....
6,080
5,762
163292439.LC.FTS.B,
8.19%,
2/23/25
...
5,223
4,893
167466589.LC.FTS.B,
8.19%,
2/27/25
...
4,000
3,821
166039716.LC.FTS.B,
10.33%,
2/28/25
...
12,373
12,064
164067189.LC.FTS.B,
13.08%,
2/28/25
...
12,656
12,299
165441115.LC.FTS.B,
8.81%,
4/05/25
....
5,781
1,956
168296354.LC.FTS.B,
13.08%,
5/13/25
...
8,102
7,570
168006688.LC.FTS.B,
8.19%,
11/21/25
...
10,893
10,101
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
(continued)
$
135,504
LendingClub
Corp.
-
LCX
PM
173236004.LC.FTS.B,
19.12%,
12/23/23
..
$
717
722
173241001.LC.FTS.B,
17.3%,
12/29/23
...
263
265
173362025.LC.FTS.B,
20.74%,
12/29/23
..
548
553
173391094.LC.FTS.B,
17.3%,
1/05/24
...
313
313
172997854.LC.FTS.B,
19.12%,
1/08/24
...
320
320
173417195.LC.FTS.B,
14.71%,
1/09/24
...
2,018
1,038
173898269.LC.FTS.B,
16.99%,
1/19/24
...
1,372
1,368
173997873.LC.FTS.B,
17.49%,
1/20/24
...
1,151
1,147
173912279.LC.FTS.B,
9.99%,
1/21/24
...
1,232
1,215
174033162.LC.FTS.B,
16.49%,
1/21/24
...
259
258
173509997.LC.FTS.B,
10.81%,
1/27/24
...
486
481
174195278.LC.FTS.B,
16.49%,
1/27/24
...
620
619
174192330.LC.FTS.B,
20.74%,
1/27/24
...
1,758
1,769
174098270.LC.FTS.B,
6.74%,
2/01/24
...
2,426
2,396
174115077.LC.FTS.B,
8.49%,
2/01/24
....
3,721
3,680
174204894.LC.FTS.B,
12.34%,
2/01/24
...
1,957
1,936
174276782.LC.FTS.B,
17.19%,
2/01/24
...
137
136
173826580.LC.FTS.B,
16.99%,
4/24/24
...
2,579
2,350
174033886.LC.FTS.B,
12.49%,
6/05/24
...
5,711
5,675
170431322.LC.FTS.B,
18.24%,
9/14/25
...
2,461
2,419
170592201.LC.FTS.B,
14.02%,
9/16/25
...
9,345
9,075
170055181.LC.FTS.B,
16.08%,
9/16/25
...
7,193
7,050
170639161.LC.FTS.B,
19.12%,
9/18/25
...
4,975
4,896
170786159.LC.FTS.B,
14.02%,
9/25/25
...
11,211
10,726
170163928.LC.FTS.B,
15.4%,
9/25/25
...
4,792
4,705
170812112.LC.FTS.B,
14.02%,
9/29/25
...
9,342
9,009
171032242.LC.FTS.B,
19.12%,
10/02/25
..
7,730
7,556
170941274.LC.FTS.B,
16.08%,
10/05/25
..
14,914
14,349
171264911.LC.FTS.B,
19.12%,
10/14/25
..
7,730
7,581
171461721.LC.FTS.B,
16.08%,
10/20/25
..
5,589
5,463
170983832.LC.FTS.B,
20.74%,
10/20/25
..
13,916
13,539
171322854.LC.FTS.B,
16.08%,
10/22/25
..
12,428
12,065
172156822.LC.FTS.B,
14.02%,
11/24/25
..
5,021
4,675
172665217.LC.FTS.B,
5%,
12/04/25
.....
7,346
5,139
172752552.LC.FTS.B,
16.08%,
12/10/25
..
6,382
6,249
173203429.LC.FTS.B,
15.4%,
12/23/25
...
18,154
17,704
173295643.LC.FTS.B,
19.12%,
12/28/25
..
6,601
6,511
173301532.LC.FTS.B,
17.3%,
1/06/26
...
16,685
16,162
173496629.LC.FTS.B,
16.08%,
1/14/26
...
15,247
14,340
172611713.LC.FTS.B,
19.12%,
1/14/26
...
9,190
8,990
173772624.LC.FTS.B,
14.44%,
1/15/26
...
2,694
2,603
173580706.LC.FTS.B,
17.3%,
1/15/26
...
13,580
10,571
173303101.LC.FTS.B,
19.95%,
1/15/26
...
8,799
8,608
173821408.LC.FTS.B,
21.49%,
1/19/26
...
9,064
9,018
173896730.LC.FTS.B,
23.99%,
1/19/26
...
5,956
6,007
173933933.LC.FTS.B,
13.49%,
1/20/26
...
10,663
10,166
173875674.LC.FTS.B,
14.74%,
1/20/26
...
19,467
18,233
173270899.LC.FTS.B,
15.4%,
1/20/26
...
22,182
21,260
173854798.LC.FTS.B,
21.49%,
1/20/26
...
5,853
5,796
173871807.LC.FTS.B,
21.99%,
1/20/26
...
7,073
7,118
174045948.LC.FTS.B,
17.44%,
1/22/26
...
10,583
10,427
174087634.LC.FTS.B,
23.99%,
1/22/26
...
8,934
9,024
172757520.LC.FTS.B,
19.12%,
1/24/26
...
7,183
918
173785381.LC.FTS.B,
16.74%,
1/25/26
...
8,916
8,774
173956639.LC.FTS.B,
18.19%,
1/25/26
...
3,733
3,651
Description
Principal
Amount
Value
LendingClub
Corp.
-
LCX
PM
(continued)
173841383.LC.FTS.B,
21.49%,
1/25/26
...
$
17,621
$
17,515
173813936.LC.FTS.B,
19.74%,
1/27/26
...
13,700
13,623
173737758.LC.FTS.B,
9.59%,
1/28/26
...
11,906
1,479
174278232.LC.FTS.B,
23.99%,
2/01/26
...
20,105
2,296
170877107.LC.FTS.B,
5%,
9/29/33
......
4,650
1,900
171444548.LC.FTS.B,
10.81%,
10/22/33
..
5,767
542
171357136.LC.FTS.B,
9.02%,
10/31/33
...
334
332
171666793.LC.FTS.B,
18.24%,
11/01/33
..
293
291
171032133.LC.FTS.B,
10.81%,
11/14/33
..
129
22
170963456.LC.FTS.B,
19.95%,
11/14/33
..
1,489
329
171974686.LC.FTS.B,
10.81%,
11/17/33
..
226
226
170309569.LC.FTS.B,
19.12%,
11/17/33
..
650
25
172080082.LC.FTS.B,
9.02%,
11/18/33
...
789
788
172294502.LC.FTS.B,
8.46%,
11/24/33
...
313
312
386,298
Prosper
Funding
LLC
1491946.PS.FTS.B,
15.49%,
12/22/23
...
610
15
1602993.PS.FTS.B,
8.7%,
7/23/24
......
14,158
–
1609512.PS.FTS.B,
16%,
8/05/24
.......
2,945
2,903
1603345.PS.FTS.B,
12.8%,
8/06/24
.....
621
612
1603741.PS.FTS.B,
16.6%,
8/06/24
.....
2,468
2,434
1603033.PS.FTS.B,
24.6%,
8/07/24
.....
3,194
2,104
1611408.PS.FTS.B,
15.4%,
8/09/24
.....
3,253
3,212
1611363.PS.FTS.B,
18.24%,
8/09/24
....
4,011
3,960
1602197.PS.FTS.B,
18.41%,
8/14/24
....
1,614
1,594
1610577.PS.FTS.B,
19.8%,
8/21/24
.....
2,259
2,243
1608881.PS.FTS.B,
14.7%,
8/23/24
.....
969
962
1609535.PS.FTS.B,
26.21%,
8/24/24
....
3,596
3,625
1610579.PS.FTS.B,
15%,
8/25/24
.......
1,620
1,609
1620627.PS.FTS.B,
16.9%,
8/25/24
.....
3,648
3,613
1622424.PS.FTS.B,
16.1%,
8/27/24
.....
1,432
1,423
1634217.PS.FTS.B,
24.51%,
9/21/24
....
4,347
3,861
1623656.PS.FTS.B,
25.71%,
9/21/24
....
3,891
3,925
1628356.PS.FTS.B,
11.6%,
9/22/24
.....
857
845
1635063.PS.FTS.B,
14.56%,
9/22/24
....
4,023
3,957
1624643.PS.FTS.B,
15.12%,
9/22/24
....
1,268
1,255
1635060.PS.FTS.B,
16.64%,
9/22/24
....
5,390
5,335
1624631.PS.FTS.B,
17.8%,
9/22/24
.....
8,729
1,208
1624646.PS.FTS.B,
18.4%,
9/22/24
.....
1,095
1,098
1624622.PS.FTS.B,
18.41%,
9/22/24
....
5,764
5,704
1628338.PS.FTS.B,
18.41%,
9/22/24
....
3,599
3,562
1635348.PS.FTS.B,
26.3%,
9/22/24
.....
782
789
1635768.PS.FTS.B,
14.89%,
9/23/24
....
3,403
3,369
1629058.PS.FTS.B,
15.7%,
9/23/24
.....
891
882
1636260.PS.FTS.B,
12.76%,
9/24/24
....
693
684
1636335.PS.FTS.B,
13%,
9/24/24
.......
5,211
5,139
1636458.PS.FTS.B,
13.8%,
9/24/24
.....
1,575
1,553
1636308.PS.FTS.B,
14.56%,
9/24/24
....
1,058
1,043
1626602.PS.FTS.B,
16.1%,
9/24/24
.....
1,440
1,425
1625990.PS.FTS.B,
16.28%,
9/24/24
....
12,535
12,417
1629244.PS.FTS.B,
17.96%,
9/24/24
....
3,528
3,494
1636947.PS.FTS.B,
20.34%,
9/24/24
....
743
745
1630390.PS.FTS.B,
11.6%,
9/27/24
.....
3,723
3,674
1630750.PS.FTS.B,
11.7%,
9/27/24
.....
4,303
4,246
1637526.PS.FTS.B,
12.3%,
9/27/24
.....
5,622
5,547
1626884.PS.FTS.B,
15%,
9/27/24
.......
3,071
3,046
1637235.PS.FTS.B,
15.1%,
9/27/24
.....
1,921
1,905
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
69
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1630384.PS.FTS.B,
16%,
9/27/24
.......
$
3,867
$
3,835
1630447.PS.FTS.B,
16%,
9/27/24
.......
1,549
1,536
1637214.PS.FTS.B,
16.39%,
9/27/24
....
3,058
426
1630396.PS.FTS.B,
16.43%,
9/27/24
....
7,425
7,363
1630414.PS.FTS.B,
16.43%,
9/27/24
....
778
771
1630936.PS.FTS.B,
12%,
9/28/24
.......
3,139
3,098
1631188.PS.FTS.B,
13.36%,
9/28/24
....
3,972
3,921
1630918.PS.FTS.B,
13.8%,
9/28/24
.....
3,039
2,999
1627706.PS.FTS.B,
15.1%,
9/28/24
.....
768
762
1627796.PS.FTS.B,
15.4%,
9/28/24
.....
3,852
3,822
1628048.PS.FTS.B,
15.4%,
9/28/24
.....
2,506
2,484
1630837.PS.FTS.B,
15.4%,
9/28/24
.....
2,383
120
1638096.PS.FTS.B,
16.1%,
9/28/24
.....
213
212
1627961.PS.FTS.B,
19.3%,
9/28/24
.....
797
801
1631467.PS.FTS.B,
20.46%,
9/28/24
....
4,454
4,462
1638306.PS.FTS.B,
21.56%,
9/28/24
....
2,246
2,252
1627514.PS.FTS.B,
13.5%,
10/02/24
....
3,849
3,782
1625708.PS.FTS.B,
17.8%,
10/10/24
....
4,804
4,796
1638078.PS.FTS.B,
18.11%,
10/11/24
....
6,622
–
1630822.PS.FTS.B,
13.86%,
10/16/24
...
6,189
6,108
1639245.PS.FTS.B,
11.6%,
10/21/24
....
2,763
–
1648597.PS.FTS.B,
15.5%,
10/27/24
....
4,173
4,118
1648606.PS.FTS.B,
18.11%,
10/27/24
....
1,274
1,260
1649488.PS.FTS.B,
11.7%,
10/28/24
....
4,422
4,355
1646303.PS.FTS.B,
11.89%,
10/28/24
....
6,040
5,949
1649524.PS.FTS.B,
14.39%,
10/28/24
...
823
815
1649797.PS.FTS.B,
17.05%,
10/28/24
...
5,700
5,626
1656462.PS.FTS.B,
27.62%,
10/28/24
...
6,871
6,950
1647104.PS.FTS.B,
10.8%,
10/29/24
....
1,992
1,963
1647374.PS.FTS.B,
13.13%,
10/29/24
...
3,450
197
1650016.PS.FTS.B,
13.5%,
10/29/24
....
8,166
8,087
1656681.PS.FTS.B,
17%,
10/29/24
......
916
915
1650046.PS.FTS.B,
19.41%,
10/29/24
...
9,728
9,764
1648730.PS.FTS.B,
17%,
11/02/24
......
5,043
4,985
1651379.PS.FTS.B,
10.8%,
11/05/24
....
6,377
6,234
1661403.PS.FTS.B,
14.11%,
11/05/24
....
10,253
10,022
1635077.PS.FTS.B,
20.57%,
11/05/24
....
6,718
6,654
1653476.PS.FTS.B,
10.8%,
11/09/24
....
1,227
1,198
1652624.PS.FTS.B,
12.3%,
11/09/24
....
1,615
1,581
1653332.PS.FTS.B,
12.79%,
11/09/24
....
8,110
7,930
1659052.PS.FTS.B,
15.29%,
11/09/24
....
1,657
1,625
1659220.PS.FTS.B,
16.6%,
11/09/24
....
4,203
4,155
1659274.PS.FTS.B,
19.5%,
11/09/24
....
6,005
5,957
1665651.PS.FTS.B,
19.6%,
11/09/24
....
6,883
4,286
1654961.PS.FTS.B,
11.88%,
11/12/24
....
6,035
5,909
1654955.PS.FTS.B,
15.5%,
11/12/24
....
4,017
3,944
1654004.PS.FTS.B,
15.29%,
11/16/24
....
2,078
2,033
1486265.PS.FTS.B,
19.99%,
11/16/24
....
4,531
4,507
1658144.PS.FTS.B,
14.49%,
11/17/24
....
12,221
12,056
1650442.PS.FTS.B,
16.57%,
11/23/24
....
4,000
3,960
1503354.PS.FTS.B,
20.74%,
11/24/24
....
2,602
370
1660819.PS.FTS.B,
17%,
11/26/24
......
1,273
1,261
1651990.PS.FTS.B,
18.41%,
12/01/24
...
10,672
10,410
1680283.PS.FTS.B,
11.07%,
12/16/24
....
1,928
1,886
1674119.PS.FTS.B,
11.6%,
12/16/24
.....
4,304
4,210
1674128.PS.FTS.B,
12.3%,
12/16/24
....
1,080
1,057
1687134.PS.FTS.B,
12.6%,
12/16/24
....
3,038
2,981
1687119.PS.FTS.B,
13.5%,
12/16/24
....
6,558
6,435
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1680238.PS.FTS.B,
13.81%,
12/16/24
...
$
10,958
$
10,718
1673705.PS.FTS.B,
16%,
12/16/24
......
4,804
4,077
1686747.PS.FTS.B,
16.5%,
12/16/24
....
1,634
1,617
1680268.PS.FTS.B,
19.6%,
12/16/24
....
7,518
1,866
1680457.PS.FTS.B,
13.1%,
12/17/24
....
7,054
5,988
1689480.PS.FTS.B,
13.7%,
12/21/24
....
3,071
3,011
1689501.PS.FTS.B,
15.9%,
12/21/24
....
4,458
4,382
1676387.PS.FTS.B,
16.2%,
12/21/24
....
4,469
4,452
1674137.PS.FTS.B,
18.2%,
12/21/24
....
915
906
1689882.PS.FTS.B,
15.29%,
12/22/24
...
2,440
2,399
1683121.PS.FTS.B,
16.8%,
12/22/24
....
12,026
10,253
1689870.PS.FTS.B,
18.09%,
12/22/24
...
2,758
2,740
1683241.PS.FTS.B,
22.6%,
12/22/24
....
2,003
1,761
1678466.PS.FTS.B,
11.4%,
12/24/24
....
4,576
–
1690275.PS.FTS.B,
21.5%,
12/25/24
....
4,208
4,179
1686151.PS.FTS.B,
14.6%,
12/29/24
....
940
927
1675928.PS.FTS.B,
10.97%,
12/30/24
...
4,298
4,201
1679818.PS.FTS.B,
17.8%,
12/30/24
....
7,842
7,888
1686726.PS.FTS.B,
18.41%,
12/30/24
...
12,213
12,151
1693752.PS.FTS.B,
23.9%,
12/30/24
....
2,615
2,631
1676435.PS.FTS.B,
16.93%,
12/31/24
...
6,405
3,810
1683092.PS.FTS.B,
24.4%,
1/04/25
.....
2,525
2,505
1694922.PS.FTS.B,
24.11%,
1/06/25
....
1,515
1,496
1684433.PS.FTS.B,
24.4%,
1/06/25
.....
2,418
2,399
1697064.PS.FTS.B,
24.4%,
1/06/25
.....
1,009
1,002
1687799.PS.FTS.B,
13.41%,
1/12/25
....
7,602
7,528
1694614.PS.FTS.B,
11.4%,
1/13/25
.....
1,832
1,787
1688987.PS.FTS.B,
12%,
1/13/25
.......
4,898
620
1694584.PS.FTS.B,
12.2%,
1/13/25
.....
9,218
8,992
1701780.PS.FTS.B,
12.3%,
1/13/25
.....
7,462
4,300
1688570.PS.FTS.B,
13.87%,
1/13/25
....
2,802
2,740
1688558.PS.FTS.B,
16.43%,
1/13/25
....
1,429
1,397
1701342.PS.FTS.B,
17.7%,
1/13/25
.....
12,019
11,900
1694587.PS.FTS.B,
19.6%,
1/13/25
.....
4,876
4,827
1701807.PS.FTS.B,
24.09%,
1/13/25
....
1,281
–
1689359.PS.FTS.B,
12.3%,
1/14/25
.....
2,341
2,279
1689344.PS.FTS.B,
13.9%,
1/14/25
.....
4,671
4,569
1702149.PS.FTS.B,
15%,
1/14/25
.......
4,710
4,608
1695340.PS.FTS.B,
15.7%,
1/14/25
.....
4,736
4,632
1689368.PS.FTS.B,
16.2%,
1/14/25
.....
2,232
2,208
1695364.PS.FTS.B,
16.8%,
1/14/25
.....
2,432
2,373
1695355.PS.FTS.B,
18.4%,
1/14/25
.....
2,416
2,393
1695982.PS.FTS.B,
25.4%,
1/14/25
.....
3,832
3,811
1690361.PS.FTS.B,
18.5%,
1/18/25
.....
1,935
1,920
1696480.PS.FTS.B,
18.8%,
1/18/25
.....
2,424
2,406
1697491.PS.FTS.B,
16.7%,
1/19/25
.....
2,403
2,378
1704390.PS.FTS.B,
17.8%,
1/19/25
.....
962
956
1692221.PS.FTS.B,
23%,
1/19/25
.......
3,462
3,465
1676915.PS.FTS.B,
12.3%,
1/20/25
.....
4,886
4,089
1699183.PS.FTS.B,
13.05%,
1/20/25
....
16,240
15,923
1700809.PS.FTS.B,
22.6%,
1/24/25
.....
2,492
2,503
1696034.PS.FTS.B,
13.5%,
1/25/25
.....
964
947
1709424.PS.FTS.B,
23.4%,
1/26/25
.....
1,052
1,055
1684772.PS.FTS.B,
24.4%,
1/29/25
.....
2,757
2,733
1702809.PS.FTS.B,
14.89%,
1/31/25
....
12,380
12,092
1706926.PS.FTS.B,
19.8%,
2/01/25
.....
3,098
3,041
1695688.PS.FTS.B,
13.96%,
2/07/25
....
3,254
3,163
1706807.PS.FTS.B,
17.8%,
2/11/25
.....
2,037
2,010
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1715170.PS.FTS.B,
10.8%,
2/15/25
.....
$
1,452
$
1,414
1708031.PS.FTS.B,
12.9%,
2/15/25
.....
3,785
3,686
1708067.PS.FTS.B,
13%,
2/15/25
.......
4,919
4,791
1715161.PS.FTS.B,
14.11%,
2/15/25
....
1,033
1,011
1708871.PS.FTS.B,
14.49%,
2/15/25
....
4,973
4,855
1721421.PS.FTS.B,
16.3%,
2/15/25
.....
9,404
9,267
1715173.PS.FTS.B,
16.6%,
2/15/25
.....
1,991
1,943
1721052.PS.FTS.B,
16.8%,
2/15/25
.....
2,154
87
1708904.PS.FTS.B,
23.4%,
2/15/25
.....
2,646
2,638
1708478.PS.FTS.B,
24.34%,
2/15/25
....
2,528
2,516
1708040.PS.FTS.B,
26.46%,
2/15/25
....
2,160
2,153
1716160.PS.FTS.B,
11.55%,
2/16/25
....
4,866
4,741
1715854.PS.FTS.B,
13.2%,
2/16/25
.....
3,293
3,216
1716088.PS.FTS.B,
17.8%,
2/16/25
.....
2,546
2,519
1715845.PS.FTS.B,
19.83%,
2/16/25
....
6,982
269
1723593.PS.FTS.B,
22.6%,
2/18/25
.....
7,895
7,885
1722492.PS.FTS.B,
16.64%,
2/20/25
....
4,802
4,689
1709597.PS.FTS.B,
18.5%,
2/20/25
.....
3,083
3,039
1708070.PS.FTS.B,
14.2%,
2/21/25
.....
5,001
4,869
1724148.PS.FTS.B,
12.3%,
2/22/25
.....
4,421
4,306
1718062.PS.FTS.B,
20.4%,
2/22/25
.....
1,037
1,029
1713806.PS.FTS.B,
10.07%,
2/23/25
....
19,250
18,852
1713725.PS.FTS.B,
13.9%,
2/23/25
.....
4,430
4,338
1721427.PS.FTS.B,
17.96%,
2/24/25
....
9,035
8,796
1652873.PS.FTS.B,
19.6%,
2/25/25
.....
6,277
4,300
1712954.PS.FTS.B,
12.4%,
2/26/25
.....
1,962
1,911
1715152.PS.FTS.B,
21%,
2/28/25
.......
5,582
5,548
1708484.PS.FTS.B,
22.6%,
2/28/25
.....
2,265
2,251
1710380.PS.FTS.B,
23.59%,
2/28/25
....
1,548
1,569
1730775.PS.FTS.B,
16.3%,
3/03/25
.....
1,052
1,031
1708448.PS.FTS.B,
15.86%,
3/14/25
....
10,061
5,719
1724859.PS.FTS.B,
11.4%,
6/18/25
.....
5,162
3,429
1686607.PS.FTS.B,
26.09%,
6/30/25
....
1,944
1,317
1683602.PS.FTS.B,
23.4%,
7/05/25
.....
1,368
1,343
1642194.PS.FTS.B,
19.5%,
8/17/25
.....
11,930
433
1626683.PS.FTS.B,
15.4%,
9/26/25
.....
3,557
176
1655328.PS.FTS.B,
15.4%,
9/27/25
.....
1,992
1,891
1638183.PS.FTS.B,
17.71%,
9/27/25
....
7,556
7,293
1681405.PS.FTS.B,
16.9%,
10/12/25
....
8,943
5,258
1685272.PS.FTS.B,
16.7%,
11/28/25
....
13,480
6,956
1692336.PS.FTS.B,
21.8%,
11/28/25
....
6,069
3,801
1716226.PS.FTS.B,
13.9%,
11/30/25
....
5,311
3,002
1489833.PS.FTS.B,
16.99%,
11/30/25
....
5,369
5,350
1705071.PS.FTS.B,
18.7%,
12/01/25
....
3,731
927
1689362.PS.FTS.B,
13.77%,
12/14/25
...
29,999
3,894
1485878.PS.FTS.B,
11.99%,
12/17/25
....
8,111
8,030
1708055.PS.FTS.B,
20.25%,
1/15/26
....
17,968
17,174
1709591.PS.FTS.B,
22.6%,
1/16/26
.....
10,727
5,987
1592846.PS.FTS.B,
15.9%,
7/23/26
.....
5,165
5,046
1599440.PS.FTS.B,
26.4%,
8/05/26
.....
1,435
1,465
1600460.PS.FTS.B,
15.2%,
8/06/26
.....
9,853
9,573
1603750.PS.FTS.B,
15.9%,
8/06/26
.....
5,287
5,124
1600466.PS.FTS.B,
18.73%,
8/06/26
....
10,149
9,834
1603759.PS.FTS.B,
20.59%,
8/06/26
....
6,868
6,804
1604551.PS.FTS.B,
13.74%,
8/09/26
....
14,679
14,258
1611384.PS.FTS.B,
13.88%,
8/09/26
....
6,494
6,293
1611387.PS.FTS.B,
19.33%,
8/09/26
....
6,119
6,073
1611390.PS.FTS.B,
22.8%,
8/09/26
.....
1,397
1,426
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1611810.PS.FTS.B,
13%,
8/10/26
.......
$
1,611
$
1,562
1606042.PS.FTS.B,
14.74%,
8/10/26
....
10,482
10,161
1611807.PS.FTS.B,
19.33%,
8/10/26
....
10,216
10,145
1602347.PS.FTS.B,
20.3%,
8/10/26
.....
1,370
1,361
1612149.PS.FTS.B,
20.7%,
8/10/26
.....
4,124
4,094
1612140.PS.FTS.B,
23.74%,
8/10/26
....
4,573
4,538
1606183.PS.FTS.B,
12.6%,
8/11/26
.....
9,630
9,338
1606945.PS.FTS.B,
12.5%,
8/12/26
.....
4,957
609
1607296.PS.FTS.B,
13.3%,
8/12/26
.....
3,997
3,877
1603532.PS.FTS.B,
20.5%,
8/12/26
.....
7,248
7,205
1612131.PS.FTS.B,
19.48%,
8/15/26
....
5,119
5,084
1611322.PS.FTS.B,
12.5%,
8/19/26
.....
22,450
21,837
1618149.PS.FTS.B,
13.7%,
8/19/26
.....
7,132
6,927
1604576.PS.FTS.B,
18.3%,
8/19/26
.....
6,775
6,740
1611805.PS.FTS.B,
16.18%,
8/20/26
....
19,541
19,033
1602449.PS.FTS.B,
25%,
8/21/26
.......
1,431
1,461
1619901.PS.FTS.B,
13.5%,
8/24/26
.....
7,766
7,562
1620930.PS.FTS.B,
15.8%,
8/25/26
.....
6,535
6,390
1615105.PS.FTS.B,
12.7%,
8/26/26
.....
12,209
11,894
1615738.PS.FTS.B,
13.3%,
8/27/26
.....
2,647
2,579
1612100.PS.FTS.B,
16.3%,
8/27/26
.....
6,785
6,624
1615246.PS.FTS.B,
16.64%,
8/27/26
....
8,164
7,971
1615636.PS.FTS.B,
12.5%,
8/30/26
.....
9,875
9,718
1612853.PS.FTS.B,
13%,
8/30/26
.......
26,399
26,039
1611798.PS.FTS.B,
25.74%,
9/01/26
....
7,446
7,547
1617610.PS.FTS.B,
15.29%,
9/11/26
....
9,176
–
1622321.PS.FTS.B,
19.23%,
9/17/26
....
2,082
2,076
1634619.PS.FTS.B,
19%,
9/21/26
.......
6,926
6,923
1624628.PS.FTS.B,
12.9%,
9/22/26
.....
16,477
16,017
1625300.PS.FTS.B,
11.79%,
9/23/26
....
4,570
4,443
1625246.PS.FTS.B,
12.5%,
9/23/26
.....
6,240
6,067
1630114.PS.FTS.B,
11.7%,
9/24/26
......
5,871
5,710
1630111.PS.FTS.B,
13.03%,
9/24/26
.....
11,393
2,483
1629628.PS.FTS.B,
14.31%,
9/24/26
....
8,004
7,812
1637199.PS.FTS.B,
12.4%,
9/27/26
.....
10,750
10,462
1626860.PS.FTS.B,
15%,
9/27/26
.......
4,460
4,357
1631629.PS.FTS.B,
11.7%,
9/28/26
.....
2,490
2,430
1631647.PS.FTS.B,
12.7%,
9/28/26
.....
9,976
9,711
1638105.PS.FTS.B,
13.4%,
9/28/26
.....
4,403
4,286
1628072.PS.FTS.B,
14.53%,
9/28/26
....
13,740
13,374
1627559.PS.FTS.B,
14.89%,
9/28/26
....
11,654
11,390
1638453.PS.FTS.B,
16.1%,
9/28/26
.....
10,382
10,144
1639041.PS.FTS.B,
11.7%,
9/29/26
.....
10,019
9,756
1469063.PS.FTS.B,
19.24%,
10/12/26
...
8,066
7,886
1646769.PS.FTS.B,
11.79%,
10/13/26
....
6,757
6,563
1626833.PS.FTS.B,
14.7%,
10/25/26
....
10,413
10,130
1648282.PS.FTS.B,
14%,
10/26/26
......
10,212
9,956
1648288.PS.FTS.B,
14.96%,
10/26/26
...
8,576
8,360
1645223.PS.FTS.B,
10.5%,
10/27/26
....
6,092
5,923
1645646.PS.FTS.B,
10.8%,
10/27/26
....
10,179
9,896
1648582.PS.FTS.B,
10.9%,
10/27/26
....
6,792
6,603
1645232.PS.FTS.B,
11.2%,
10/27/26
....
7,875
7,658
1645649.PS.FTS.B,
12.7%,
10/27/26
....
4,928
1,076
1655325.PS.FTS.B,
13.08%,
10/27/26
...
14,029
13,637
1648945.PS.FTS.B,
14.29%,
10/27/26
...
24,451
23,790
1648588.PS.FTS.B,
14.39%,
10/27/26
...
10,472
10,213
1648621.PS.FTS.B,
15.29%,
10/27/26
...
22,557
21,982
1646309.PS.FTS.B,
9.62%,
10/28/26
....
10,434
10,147
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
71
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1649809.PS.FTS.B,
11.1%,
10/28/26
....
$
4,521
$
1,938
1646066.PS.FTS.B,
16.18%,
10/28/26
...
10,615
10,354
1645916.PS.FTS.B,
16.3%,
10/28/26
....
1,816
1,800
1646072.PS.FTS.B,
28.23%,
10/28/26
...
9,162
9,429
1650307.PS.FTS.B,
10.08%,
10/29/26
...
8,770
8,530
1647161.PS.FTS.B,
10.5%,
10/29/26
....
4,738
4,609
1657278.PS.FTS.B,
10.5%,
10/29/26
....
5,315
5,170
1646819.PS.FTS.B,
11.2%,
10/29/26
....
2,723
2,649
1650901.PS.FTS.B,
11.2%,
10/29/26
....
10,551
10,262
1650547.PS.FTS.B,
13.7%,
10/29/26
....
8,151
7,953
1650847.PS.FTS.B,
13.93%,
10/29/26
...
5,565
5,412
1647071.PS.FTS.B,
14.38%,
10/29/26
...
14,027
13,520
1650865.PS.FTS.B,
15.18%,
10/29/26
...
7,023
6,830
1656183.PS.FTS.B,
14.38%,
10/31/26
...
5,244
5,085
1649791.PS.FTS.B,
15.1%,
10/31/26
....
17,563
17,055
1655343.PS.FTS.B,
16.65%,
10/31/26
...
9,477
9,446
1648990.PS.FTS.B,
18.33%,
10/31/26
...
12,249
12,163
1649806.PS.FTS.B,
12.33%,
11/01/26
....
11,784
11,810
1648793.PS.FTS.B,
26.43%,
11/02/26
....
7,580
7,658
1650023.PS.FTS.B,
14.79%,
11/04/26
....
7,698
7,501
1661388.PS.FTS.B,
11.55%,
....
2,730
2,637
1650968.PS.FTS.B,
16.33%,
11/05/26
....
12,743
12,306
1654723.PS.FTS.B,
18.6%,
11/05/26
....
6,117
6,033
1651754.PS.FTS.B,
10.5%,
11/08/26
....
13,533
13,086
1658080.PS.FTS.B,
14.63%,
11/08/26
....
10,485
10,138
1652300.PS.FTS.B,
21.18%,
11/08/26
....
10,479
10,338
1666515.PS.FTS.B,
11.2%,
11/09/26
.....
16,702
8,463
1665864.PS.FTS.B,
11.97%,
11/09/26
....
5,820
5,628
1666449.PS.FTS.B,
14.6%,
11/09/26
....
8,037
7,773
1658839.PS.FTS.B,
14.68%,
11/09/26
....
10,489
10,142
1658842.PS.FTS.B,
17%,
11/09/26
......
8,893
8,791
1659079.PS.FTS.B,
19%,
11/09/26
......
4,330
4,279
1665660.PS.FTS.B,
27.4%,
11/09/26
....
5,854
–
1667148.PS.FTS.B,
11.6%,
11/10/26
.....
6,817
–
1651394.PS.FTS.B,
15.29%,
11/10/26
....
14,687
3,293
1654735.PS.FTS.B,
18.25%,
11/10/26
....
18,022
17,706
1660333.PS.FTS.B,
21.18%,
11/10/26
....
2,928
2,893
1654187.PS.FTS.B,
22.5%,
11/10/26
....
11,519
2,998
1667997.PS.FTS.B,
11.79%,
11/12/26
....
6,153
5,955
1655114.PS.FTS.B,
12.32%,
11/12/26
....
8,756
472
1667757.PS.FTS.B,
18.25%,
11/12/26
....
9,333
9,237
1667178.PS.FTS.B,
13.3%,
11/15/26
....
6,940
6,701
1661914.PS.FTS.B,
13.5%,
11/15/26
....
17,324
16,794
1661875.PS.FTS.B,
18.33%,
11/15/26
....
10,775
10,680
1661797.PS.FTS.B,
21%,
11/15/26
......
1,479
1,502
1657538.PS.FTS.B,
21.3%,
11/16/26
....
1,492
1,516
1658339.PS.FTS.B,
16%,
11/17/26
......
5,297
5,258
1653086.PS.FTS.B,
18.2%,
11/19/26
....
9,250
7,808
1664327.PS.FTS.B,
13.5%,
11/30/26
....
2,862
2,817
1687146.PS.FTS.B,
11.43%,
12/16/26
....
8,367
8,096
1687128.PS.FTS.B,
12.3%,
12/16/26
....
7,019
6,791
1680286.PS.FTS.B,
12.5%,
12/16/26
....
7,029
6,801
1687125.PS.FTS.B,
13.4%,
12/16/26
....
7,077
6,847
1680241.PS.FTS.B,
14.38%,
12/16/26
...
17,817
17,237
1680235.PS.FTS.B,
14.41%,
12/16/26
...
24,918
24,106
1674101.PS.FTS.B,
14.53%,
12/16/26
...
12,725
12,310
1687113.PS.FTS.B,
15.18%,
12/16/26
....
11,830
11,448
1679824.PS.FTS.B,
18.2%,
12/16/26
....
7,187
7,101
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1680301.PS.FTS.B,
18.5%,
12/16/26
....
$
3,669
$
3,628
1673699.PS.FTS.B,
26.43%,
12/16/26
...
12,322
207
1675265.PS.FTS.B,
10.5%,
12/20/26
....
15,920
15,419
1681006.PS.FTS.B,
15.29%,
12/20/26
...
16,503
15,993
1676534.PS.FTS.B,
6%,
12/21/26
.......
10,492
10,179
1682455.PS.FTS.B,
11.43%,
12/21/26
....
20,917
20,262
1688964.PS.FTS.B,
13.93%,
12/21/26
...
10,657
10,322
1689036.PS.FTS.B,
14.6%,
12/21/26
....
14,279
13,843
1689054.PS.FTS.B,
14.89%,
12/21/26
...
10,732
10,401
1676819.PS.FTS.B,
14.68%,
12/22/26
...
22,860
22,145
1674110.PS.FTS.B,
14.7%,
12/22/26
....
25,103
24,240
1677269.PS.FTS.B,
25.9%,
12/22/26
....
4,617
4,679
1690638.PS.FTS.B,
11.1%,
12/23/26
....
6,607
6,403
1688076.PS.FTS.B,
16.4%,
12/24/26
....
10,195
9,875
1680116.PS.FTS.B,
14%,
12/29/26
......
19,595
19,051
1690116.PS.FTS.B,
23.11%,
12/31/26
....
11,615
11,725
1686735.PS.FTS.B,
25.27%,
12/31/26
...
11,912
11,915
1694608.PS.FTS.B,
10.62%,
1/13/27
....
6,843
6,611
1701387.PS.FTS.B,
11.1%,
1/13/27
.....
5,683
5,490
1694572.PS.FTS.B,
11.6%,
1/13/27
.....
15,545
15,015
1695022.PS.FTS.B,
11.7%,
1/13/27
.....
10,582
10,222
1688996.PS.FTS.B,
11.79%,
1/13/27
....
17,494
16,897
1694605.PS.FTS.B,
15.2%,
1/13/27
.....
1,536
1,482
1688990.PS.FTS.B,
17.82%,
1/13/27
....
22,328
21,535
1694623.PS.FTS.B,
18.5%,
1/13/27
.....
5,233
5,150
1701375.PS.FTS.B,
21.69%,
1/13/27
....
7,624
7,703
1694593.PS.FTS.B,
23.4%,
1/13/27
.....
7,801
1,124
1701396.PS.FTS.B,
27.4%,
1/13/27
.....
3,983
3,998
1702062.PS.FTS.B,
11.79%,
1/14/27
....
6,044
5,842
1702152.PS.FTS.B,
12.87%,
1/14/27
....
4,318
4,171
1695343.PS.FTS.B,
12.9%,
1/14/27
.....
3,887
3,755
1702287.PS.FTS.B,
15.29%,
1/14/27
....
7,318
7,063
1689365.PS.FTS.B,
15.8%,
1/14/27
.....
14,687
14,174
1702137.PS.FTS.B,
16.2%,
1/14/27
.....
4,786
4,619
1702161.PS.FTS.B,
18.13%,
1/14/27
....
2,983
2,878
1689329.PS.FTS.B,
18.4%,
1/14/27
.....
7,321
7,209
1674146.PS.FTS.B,
18.78%,
1/14/27
....
7,641
7,471
1689347.PS.FTS.B,
19%,
1/14/27
.......
6,112
3,541
1695361.PS.FTS.B,
26.13%,
1/14/27
....
11,739
11,853
1688534.PS.FTS.B,
12.9%,
1/16/27
.....
18,016
17,384
1703139.PS.FTS.B,
25.9%,
1/18/27
.....
1,571
1,582
1704984.PS.FTS.B,
10.29%,
1/19/27
....
9,181
8,881
1692188.PS.FTS.B,
11.2%,
1/19/27
.....
17,668
17,089
1691687.PS.FTS.B,
12.7%,
1/19/27
.....
21,562
20,853
1675340.PS.FTS.B,
16%,
1/19/27
.......
10,084
9,926
1692281.PS.FTS.B,
16.5%,
1/19/27
.....
26,327
25,397
1704129.PS.FTS.B,
21.18%,
1/19/27
....
7,559
7,454
1692593.PS.FTS.B,
10.5%,
1/20/27
.....
14,147
13,687
1698709.PS.FTS.B,
15.2%,
1/20/27
.....
10,970
10,611
1695031.PS.FTS.B,
15.5%,
1/27/27
.....
7,527
7,246
1695725.PS.FTS.B,
16.1%,
1/30/27
.....
7,329
7,310
1708451.PS.FTS.B,
10.26%,
2/15/27
....
6,135
5,950
1721439.PS.FTS.B,
12%,
2/15/27
.......
2,190
2,114
1721037.PS.FTS.B,
12.24%,
2/15/27
....
8,868
1,150
1715149.PS.FTS.B,
12.62%,
2/15/27
....
18,323
17,687
1708763.PS.FTS.B,
15.62%,
2/15/27
....
17,193
16,567
1715143.PS.FTS.B,
16.33%,
2/15/27
....
15,069
14,490
1708901.PS.FTS.B,
18.33%,
2/15/27
....
15,205
14,929
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1720974.PS.FTS.B,
18.4%,
2/15/27
.....
$
14,871
$
14,540
1708466.PS.FTS.B,
18.6%,
2/15/27
.....
4,950
4,860
1708103.PS.FTS.B,
18.78%,
2/15/27
....
1,675
1,637
1721007.PS.FTS.B,
22%,
2/15/27
.......
9,322
9,388
1715353.PS.FTS.B,
25.9%,
2/15/27
.....
1,587
1,597
1709507.PS.FTS.B,
13.5%,
2/16/27
.....
5,898
5,687
1709498.PS.FTS.B,
25.9%,
2/16/27
.....
7,936
7,988
1722801.PS.FTS.B,
23.31%,
2/17/27
....
3,585
3,596
1708907.PS.FTS.B,
18.13%,
2/20/27
....
11,837
9,669
1718479.PS.FTS.B,
11.1%,
2/22/27
.....
6,544
6,322
1724556.PS.FTS.B,
17.38%,
2/22/27
....
4,862
4,790
1611804.PS.FTS.B,
18%,
2/22/27
.......
17,371
17,208
1719415.PS.FTS.B,
10.8%,
2/23/27
.....
8,613
8,331
1719667.PS.FTS.B,
12.5%,
2/23/27
.....
10,985
10,623
1722171.PS.FTS.B,
18.78%,
2/28/27
....
5,871
5,722
1739157.PS.FTS.B,
11.5%,
3/18/27
.....
29,754
28,692
1749006.PS.FTS.B,
19.53%,
3/31/27
....
8,734
8,540
1749429.PS.FTS.B,
25.9%,
4/01/27
.....
4,925
4,921
1613553.PS.FTS.B,
19.78%,
6/15/27
....
9,986
83
1647098.PS.FTS.B,
11.55%,
8/01/27
....
23,136
11,551
1637205.PS.FTS.B,
11.7%,
8/27/27
.....
8,268
1,038
1631731.PS.FTS.B,
16.8%,
8/28/27
.....
13,125
690
1654196.PS.FTS.B,
11.6%,
9/03/27
.....
14,126
13,631
1687137.PS.FTS.B,
28.08%,
9/23/27
....
13,640
5,512
1686133.PS.FTS.B,
10.44%,
11/22/27
....
9,805
7,875
1478692.PS.FTS.B,
18.99%,
11/24/33
....
1,293
–
2,554,211
Upgrade,
Inc.
23712149.UG.FTS.B,
29.69%,
11/06/24
..
8,821
9,294
24548048.UG.FTS.B,
28.99%,
11/20/24
..
18,161
19,268
24415650.UG.FTS.B,
26.77%,
11/22/24
..
5,315
5,576
24697398.UG.FTS.B,
26.77%,
11/25/24
..
7,131
620
24468287.UG.FTS.B,
29.69%,
11/26/24
..
17,864
14,558
24606347.UG.FTS.B,
30.17%,
12/03/24
..
10,076
10,544
24618663.UG.FTS.B,
29.69%,
12/21/24
..
10,051
10,676
25533971.UG.FTS.B,
29.69%,
12/26/24
..
4,392
4,660
25721348.UG.FTS.B,
28.99%,
1/06/25
...
11,162
10,017
25684301.UG.FTS.B,
29.69%,
1/06/25
...
3,739
3,816
25595802.UG.FTS.B,
28.99%,
1/22/25
...
11,373
11,751
24508053.UG.FTS.B,
22.34%,
11/20/27
..
89
89
25513053.UG.FTS.B,
24.29%,
12/24/27
..
920
70
25111074.UG.FTS.B,
25.26%,
8/26/28
...
13
13
100,952
Upgrade,
Inc.
-
Card
991578462.UG.FTS.B,
28.98%,
11/17/23
.
10
10
991784966.UG.FTS.B,
29.49%,
12/06/23
.
8
8
991622139.UG.FTS.B,
28.48%,
1/18/24
..
109
109
991536585.UG.FTS.B,
29.49%,
1/18/24
..
35
35
991546337.UG.FTS.B,
29.49%,
1/18/24
..
28
28
991629208.UG.FTS.B,
29.49%,
1/18/24
..
29
30
991727329.UG.FTS.B,
29.49%,
1/18/24
..
54
54
991769780.UG.FTS.B,
29.49%,
1/18/24
..
24
24
991546995.UG.FTS.B,
19.99%,
1/19/24
..
13
13
991546826.UG.FTS.B,
28.48%,
1/19/24
..
16
17
991765474.UG.FTS.B,
28.48%,
1/19/24
..
21
21
991781301.UG.FTS.B,
28.48%,
1/19/24
..
42
42
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991782715.UG.FTS.B,
28.98%,
1/19/24
..
$
–
$
–
991644301.UG.FTS.B,
29.48%,
1/19/24
..
19
19
991689540.UG.FTS.B,
29.48%,
1/19/24
..
59
–
991759026.UG.FTS.B,
29.48%,
1/19/24
..
36
36
991542914.UG.FTS.B,
29.49%,
1/19/24
..
35
35
991546985.UG.FTS.B,
29.49%,
1/19/24
..
21
21
991547308.UG.FTS.B,
29.49%,
1/19/24
..
–
–
991547551.UG.FTS.B,
29.49%,
1/19/24
..
49
49
991598993.UG.FTS.B,
29.49%,
1/19/24
..
17
17
991623047.UG.FTS.B,
29.49%,
1/19/24
..
47
47
991660122.UG.FTS.B,
29.49%,
1/19/24
..
3
3
991662782.UG.FTS.B,
29.49%,
1/19/24
..
–
–
991697701.UG.FTS.B,
29.49%,
1/19/24
..
24
24
991712782.UG.FTS.B,
29.49%,
1/19/24
..
18
17
991765089.UG.FTS.B,
29.49%,
1/19/24
..
23
23
991572954.UG.FTS.B,
Zero
Cpn,
1/20/24
.
325
23
991757872.UG.FTS.B,
Zero
Cpn,
1/20/24
.
26
2
991676903.UG.FTS.B,
18.47%,
1/20/24
..
6
6
991782434.UG.FTS.B,
19.3%,
1/20/24
...
175
175
991546567.UG.FTS.B,
19.99%,
1/20/24
..
14
14
991558368.UG.FTS.B,
19.99%,
1/20/24
..
154
155
991572409.UG.FTS.B,
19.99%,
1/20/24
..
11
11
991591617.UG.FTS.B,
19.99%,
1/20/24
..
24
–
991663622.UG.FTS.B,
25.45%,
1/20/24
..
6
6
991573254.UG.FTS.B,
26.44%,
1/20/24
..
33
33
991549025.UG.FTS.B,
28.48%,
1/20/24
..
13
13
991554027.UG.FTS.B,
28.48%,
1/20/24
..
9
9
991554902.UG.FTS.B,
28.48%,
1/20/24
..
15
15
991569197.UG.FTS.B,
28.48%,
1/20/24
..
24
24
991590348.UG.FTS.B,
28.48%,
1/20/24
..
21
21
991644127.UG.FTS.B,
28.48%,
1/20/24
..
45
45
991691451.UG.FTS.B,
28.48%,
1/20/24
..
24
24
991754575.UG.FTS.B,
28.48%,
1/20/24
..
117
–
991756843.UG.FTS.B,
28.48%,
1/20/24
..
13
14
991545055.UG.FTS.B,
29.46%,
1/20/24
..
18
18
991561413.UG.FTS.B,
29.47%,
1/20/24
..
2
2
991546096.UG.FTS.B,
29.48%,
1/20/24
..
52
52
991547890.UG.FTS.B,
29.48%,
1/20/24
..
90
91
991573314.UG.FTS.B,
29.48%,
1/20/24
..
23
23
991593773.UG.FTS.B,
29.48%,
1/20/24
..
8
8
991690864.UG.FTS.B,
29.48%,
1/20/24
..
229
232
991723500.UG.FTS.B,
29.48%,
1/20/24
..
22
22
991544517.UG.FTS.B,
29.49%,
1/20/24
..
35
36
991545502.UG.FTS.B,
29.49%,
1/20/24
..
68
69
991547820.UG.FTS.B,
29.49%,
1/20/24
..
–
–
991547826.UG.FTS.B,
29.49%,
1/20/24
..
57
57
991548275.UG.FTS.B,
29.49%,
1/20/24
..
40
40
991548490.UG.FTS.B,
29.49%,
1/20/24
..
51
51
991549381.UG.FTS.B,
29.49%,
1/20/24
..
56
57
991552461.UG.FTS.B,
29.49%,
1/20/24
..
25
26
991556087.UG.FTS.B,
29.49%,
1/20/24
..
15
15
991557821.UG.FTS.B,
29.49%,
1/20/24
..
86
6
991561923.UG.FTS.B,
29.49%,
1/20/24
..
48
48
991562972.UG.FTS.B,
29.49%,
1/20/24
..
136
137
991567858.UG.FTS.B,
29.49%,
1/20/24
..
71
71
991569938.UG.FTS.B,
29.49%,
1/20/24
..
15
15
991575740.UG.FTS.B,
29.49%,
1/20/24
..
13
2
991576674.UG.FTS.B,
29.49%,
1/20/24
..
15
15
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
73
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991577337.UG.FTS.B,
29.49%,
1/20/24
..
$
–
$
–
991579389.UG.FTS.B,
29.49%,
1/20/24
..
69
5
991579802.UG.FTS.B,
29.49%,
1/20/24
..
66
11
991579854.UG.FTS.B,
29.49%,
1/20/24
..
21
21
991585183.UG.FTS.B,
29.49%,
1/20/24
..
14
14
991585361.UG.FTS.B,
29.49%,
1/20/24
..
9
9
991587497.UG.FTS.B,
29.49%,
1/20/24
..
79
79
991588825.UG.FTS.B,
29.49%,
1/20/24
..
15
15
991593009.UG.FTS.B,
29.49%,
1/20/24
..
19
19
991597653.UG.FTS.B,
29.49%,
1/20/24
..
23
23
991598266.UG.FTS.B,
29.49%,
1/20/24
..
26
26
991598552.UG.FTS.B,
29.49%,
1/20/24
..
26
26
991603595.UG.FTS.B,
29.49%,
1/20/24
..
33
33
991608834.UG.FTS.B,
29.49%,
1/20/24
..
40
40
991611241.UG.FTS.B,
29.49%,
1/20/24
..
35
35
991612399.UG.FTS.B,
29.49%,
1/20/24
..
37
37
991612448.UG.FTS.B,
29.49%,
1/20/24
..
27
27
991617558.UG.FTS.B,
29.49%,
1/20/24
..
96
97
991629452.UG.FTS.B,
29.49%,
1/20/24
..
83
84
991631740.UG.FTS.B,
29.49%,
1/20/24
..
37
37
991638936.UG.FTS.B,
29.49%,
1/20/24
..
18
18
991642104.UG.FTS.B,
29.49%,
1/20/24
..
19
19
991642333.UG.FTS.B,
29.49%,
1/20/24
..
43
6
991651171.UG.FTS.B,
29.49%,
1/20/24
..
14
14
991674489.UG.FTS.B,
29.49%,
1/20/24
..
50
50
991677407.UG.FTS.B,
29.49%,
1/20/24
..
48
4
991682318.UG.FTS.B,
29.49%,
1/20/24
..
31
31
991683321.UG.FTS.B,
29.49%,
1/20/24
..
210
212
991697236.UG.FTS.B,
29.49%,
1/20/24
..
65
66
991706145.UG.FTS.B,
29.49%,
1/20/24
..
2
2
991717301.UG.FTS.B,
29.49%,
1/20/24
..
54
54
991721227.UG.FTS.B,
29.49%,
1/20/24
..
16
16
991730813.UG.FTS.B,
29.49%,
1/20/24
..
31
32
991734330.UG.FTS.B,
29.49%,
1/20/24
..
14
14
991741702.UG.FTS.B,
29.49%,
1/20/24
..
33
33
991765334.UG.FTS.B,
29.49%,
1/20/24
..
16
16
991782660.UG.FTS.B,
29.49%,
1/20/24
..
16
16
991790198.UG.FTS.B,
29.49%,
1/20/24
..
27
28
991677773.UG.FTS.B,
28.48%,
1/21/24
..
10
10
991693767.UG.FTS.B,
28.48%,
1/21/24
..
14
14
991711024.UG.FTS.B,
28.48%,
1/21/24
..
22
22
991723171.UG.FTS.B,
28.48%,
1/21/24
..
45
45
991723414.UG.FTS.B,
28.48%,
1/21/24
..
71
71
991730921.UG.FTS.B,
28.48%,
1/21/24
..
12
12
991731530.UG.FTS.B,
28.48%,
1/21/24
..
78
78
991784545.UG.FTS.B,
28.48%,
1/21/24
..
20
21
991702778.UG.FTS.B,
29.48%,
1/21/24
..
26
26
991703577.UG.FTS.B,
29.48%,
1/21/24
..
234
–
991663489.UG.FTS.B,
29.49%,
1/21/24
..
25
25
991677244.UG.FTS.B,
29.49%,
1/21/24
..
38
38
991680983.UG.FTS.B,
29.49%,
1/21/24
..
18
18
991693634.UG.FTS.B,
29.49%,
1/21/24
..
29
29
991703953.UG.FTS.B,
29.49%,
1/21/24
..
30
30
991705635.UG.FTS.B,
29.49%,
1/21/24
..
53
53
991706927.UG.FTS.B,
29.49%,
1/21/24
..
20
20
991713176.UG.FTS.B,
29.49%,
1/21/24
..
–
–
991717827.UG.FTS.B,
29.49%,
1/21/24
..
77
11
991717854.UG.FTS.B,
29.49%,
1/21/24
..
37
38
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991730534.UG.FTS.B,
29.49%,
1/21/24
..
$
23
$
24
991732216.UG.FTS.B,
29.49%,
1/21/24
..
12
12
991737559.UG.FTS.B,
29.49%,
1/21/24
..
79
80
991741497.UG.FTS.B,
29.49%,
1/21/24
..
48
49
991743560.UG.FTS.B,
29.49%,
1/21/24
..
10
10
991747055.UG.FTS.B,
29.49%,
1/21/24
..
104
–
991753846.UG.FTS.B,
29.49%,
1/21/24
..
83
84
991761541.UG.FTS.B,
29.49%,
1/21/24
..
29
29
991773483.UG.FTS.B,
29.49%,
1/21/24
..
6
6
991782683.UG.FTS.B,
29.49%,
1/21/24
..
126
127
991784482.UG.FTS.B,
29.49%,
1/21/24
..
33
33
991792435.UG.FTS.B,
29.49%,
1/21/24
..
237
238
991651259.UG.FTS.B,
18.71%,
1/22/24
..
20
20
991739678.UG.FTS.B,
18.71%,
1/22/24
..
33
34
991660263.UG.FTS.B,
19.3%,
1/22/24
...
41
42
991635081.UG.FTS.B,
19.96%,
1/22/24
..
58
58
991712989.UG.FTS.B,
20.47%,
1/22/24
..
40
40
991775322.UG.FTS.B,
20.47%,
1/22/24
..
22
22
991651393.UG.FTS.B,
21.48%,
1/22/24
..
71
71
991699664.UG.FTS.B,
25.45%,
1/22/24
..
26
2
991662739.UG.FTS.B,
28.48%,
1/22/24
..
32
32
991725934.UG.FTS.B,
28.48%,
1/22/24
..
20
20
991637365.UG.FTS.B,
29.48%,
1/22/24
..
26
26
991639954.UG.FTS.B,
29.48%,
1/22/24
..
28
28
991608552.UG.FTS.B,
29.49%,
1/22/24
..
7
7
991649089.UG.FTS.B,
29.49%,
1/22/24
..
314
47
991672504.UG.FTS.B,
29.49%,
1/22/24
..
43
43
991696271.UG.FTS.B,
29.49%,
1/22/24
..
4
4
991722363.UG.FTS.B,
29.49%,
1/22/24
..
24
24
991732382.UG.FTS.B,
29.49%,
1/22/24
..
12
12
991734177.UG.FTS.B,
29.49%,
1/22/24
..
23
23
991765647.UG.FTS.B,
29.49%,
1/22/24
..
48
48
991774569.UG.FTS.B,
18.47%,
1/23/24
..
17
17
991643208.UG.FTS.B,
19.3%,
1/23/24
...
33
33
991784139.UG.FTS.B,
19.3%,
1/23/24
...
344
344
991810762.UG.FTS.B,
19.96%,
1/23/24
..
147
147
991772621.UG.FTS.B,
20.96%,
1/23/24
..
30
30
991805841.UG.FTS.B,
24.45%,
1/23/24
..
21
21
991631116.UG.FTS.B,
28.48%,
1/23/24
..
26
26
991692289.UG.FTS.B,
28.48%,
1/23/24
..
1
1
991710024.UG.FTS.B,
28.48%,
1/23/24
..
55
55
991730901.UG.FTS.B,
28.48%,
1/23/24
..
180
182
991798676.UG.FTS.B,
28.48%,
1/23/24
..
5
5
991635388.UG.FTS.B,
29.48%,
1/23/24
..
212
15
991678696.UG.FTS.B,
29.48%,
1/23/24
..
75
6
991809474.UG.FTS.B,
29.48%,
1/23/24
..
32
32
991637143.UG.FTS.B,
29.49%,
1/23/24
..
33
33
991653477.UG.FTS.B,
29.49%,
1/23/24
..
10
10
991655971.UG.FTS.B,
29.49%,
1/23/24
..
28
28
991662802.UG.FTS.B,
29.49%,
1/23/24
..
237
239
991681725.UG.FTS.B,
29.49%,
1/23/24
..
–
–
991701176.UG.FTS.B,
29.49%,
1/23/24
..
8
8
991724292.UG.FTS.B,
29.49%,
1/23/24
..
84
85
991731683.UG.FTS.B,
29.49%,
1/23/24
..
126
128
991744187.UG.FTS.B,
29.49%,
1/23/24
..
31
31
991771610.UG.FTS.B,
29.49%,
1/23/24
..
58
59
991656328.UG.FTS.B,
Zero
Cpn,
1/24/24
.
80
6
991678748.UG.FTS.B,
20.47%,
1/24/24
..
23
23
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991675015.UG.FTS.B,
21.48%,
1/24/24
..
$
150
$
150
991693039.UG.FTS.B,
22.47%,
1/24/24
..
38
39
991638057.UG.FTS.B,
29.48%,
1/24/24
..
3
3
991795779.UG.FTS.B,
29.48%,
1/24/24
..
35
3
991597915.UG.FTS.B,
29.49%,
1/24/24
..
16
16
991650075.UG.FTS.B,
29.49%,
1/24/24
..
100
101
991665767.UG.FTS.B,
29.49%,
1/24/24
..
13
13
991686888.UG.FTS.B,
29.49%,
1/24/24
..
27
28
991719521.UG.FTS.B,
29.49%,
1/24/24
..
15
15
991768107.UG.FTS.B,
29.49%,
1/24/24
..
11
11
991775830.UG.FTS.B,
29.49%,
1/24/24
..
24
24
991690086.UG.FTS.B,
16.49%,
1/25/24
..
33
33
991702421.UG.FTS.B,
16.49%,
1/25/24
..
11
11
991642537.UG.FTS.B,
18.47%,
1/25/24
..
21
21
991658713.UG.FTS.B,
18.47%,
1/25/24
..
17
17
991638927.UG.FTS.B,
20.96%,
1/25/24
..
30
30
991639306.UG.FTS.B,
21.48%,
1/25/24
..
11
11
991661968.UG.FTS.B,
21.48%,
1/25/24
..
24
24
991675457.UG.FTS.B,
22.47%,
1/25/24
..
21
21
991628803.UG.FTS.B,
25.44%,
1/25/24
..
39
39
991652053.UG.FTS.B,
26.44%,
1/25/24
..
17
17
991729257.UG.FTS.B,
27.99%,
1/25/24
..
41
41
991631472.UG.FTS.B,
28.48%,
1/25/24
..
32
32
991668456.UG.FTS.B,
28.48%,
1/25/24
..
17
17
991710726.UG.FTS.B,
28.48%,
1/25/24
..
23
1
991606137.UG.FTS.B,
29.48%,
1/25/24
..
14
14
991616807.UG.FTS.B,
29.48%,
1/25/24
..
28
28
991585669.UG.FTS.B,
29.49%,
1/25/24
..
46
46
991590828.UG.FTS.B,
29.49%,
1/25/24
..
41
41
991604373.UG.FTS.B,
29.49%,
1/25/24
..
72
11
991619556.UG.FTS.B,
29.49%,
1/25/24
..
11
11
991633646.UG.FTS.B,
29.49%,
1/25/24
..
15
15
991641518.UG.FTS.B,
29.49%,
1/25/24
..
5
–
991649590.UG.FTS.B,
29.49%,
1/25/24
..
15
15
991654938.UG.FTS.B,
29.49%,
1/25/24
..
233
237
991663576.UG.FTS.B,
29.49%,
1/25/24
..
176
177
991671286.UG.FTS.B,
29.49%,
1/25/24
..
82
83
991679898.UG.FTS.B,
29.49%,
1/25/24
..
26
26
991686636.UG.FTS.B,
29.49%,
1/25/24
..
23
23
991700798.UG.FTS.B,
29.49%,
1/25/24
..
16
16
991714482.UG.FTS.B,
29.49%,
1/25/24
..
34
34
991729432.UG.FTS.B,
29.49%,
1/25/24
..
66
67
991731430.UG.FTS.B,
29.49%,
1/25/24
..
20
20
991751813.UG.FTS.B,
29.49%,
1/25/24
..
73
74
991758703.UG.FTS.B,
29.49%,
1/25/24
..
63
5
991766815.UG.FTS.B,
29.49%,
1/25/24
..
5
5
991786634.UG.FTS.B,
29.49%,
1/25/24
..
52
53
991795056.UG.FTS.B,
29.49%,
1/25/24
..
28
28
991803621.UG.FTS.B,
29.49%,
1/25/24
..
10
11
991820253.UG.FTS.B,
29.49%,
1/25/24
..
15
15
991828617.UG.FTS.B,
29.49%,
1/25/24
..
12
12
991633373.UG.FTS.B,
Zero
Cpn,
1/26/24
.
177
12
991784174.UG.FTS.B,
16.49%,
1/26/24
..
16
16
991590508.UG.FTS.B,
19.99%,
1/26/24
..
28
5
991679320.UG.FTS.B,
21.48%,
1/26/24
..
49
49
991749734.UG.FTS.B,
21.48%,
1/26/24
..
27
2
991660260.UG.FTS.B,
28.48%,
1/26/24
..
90
91
991706943.UG.FTS.B,
28.48%,
1/26/24
..
76
77
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991719423.UG.FTS.B,
28.48%,
1/26/24
..
$
63
$
63
991826702.UG.FTS.B,
28.48%,
1/26/24
..
43
43
991834361.UG.FTS.B,
28.48%,
1/26/24
..
19
19
991651287.UG.FTS.B,
29.46%,
1/26/24
..
–
–
991717920.UG.FTS.B,
29.48%,
1/26/24
..
197
199
991731025.UG.FTS.B,
29.48%,
1/26/24
..
–
–
991592956.UG.FTS.B,
29.49%,
1/26/24
..
16
16
991599536.UG.FTS.B,
29.49%,
1/26/24
..
181
33
991618299.UG.FTS.B,
29.49%,
1/26/24
..
55
56
991629683.UG.FTS.B,
29.49%,
1/26/24
..
40
40
991633572.UG.FTS.B,
29.49%,
1/26/24
..
28
28
991642017.UG.FTS.B,
29.49%,
1/26/24
..
19
19
991642061.UG.FTS.B,
29.49%,
1/26/24
..
29
29
991648245.UG.FTS.B,
29.49%,
1/26/24
..
33
33
991649659.UG.FTS.B,
29.49%,
1/26/24
..
22
23
991658296.UG.FTS.B,
29.49%,
1/26/24
..
122
–
991683106.UG.FTS.B,
29.49%,
1/26/24
..
70
12
991698192.UG.FTS.B,
29.49%,
1/26/24
..
20
21
991713721.UG.FTS.B,
29.49%,
1/26/24
..
16
17
991725699.UG.FTS.B,
29.49%,
1/26/24
..
143
144
991752959.UG.FTS.B,
29.49%,
1/26/24
..
14
14
991764433.UG.FTS.B,
29.49%,
1/26/24
..
18
18
991783361.UG.FTS.B,
29.49%,
1/26/24
..
32
32
991787533.UG.FTS.B,
29.49%,
1/26/24
..
15
15
991795277.UG.FTS.B,
29.49%,
1/26/24
..
17
17
991819010.UG.FTS.B,
29.49%,
1/26/24
..
23
23
991836284.UG.FTS.B,
29.49%,
1/26/24
..
119
119
991674709.UG.FTS.B,
Zero
Cpn,
1/27/24
.
–
–
991720808.UG.FTS.B,
Zero
Cpn,
1/27/24
.
149
11
991750772.UG.FTS.B,
Zero
Cpn,
1/27/24
.
76
5
991842241.UG.FTS.B,
15.47%,
1/27/24
..
6
6
991706691.UG.FTS.B,
17.49%,
1/27/24
..
23
23
991609765.UG.FTS.B,
27.99%,
1/27/24
..
90
92
991638924.UG.FTS.B,
28.48%,
1/27/24
..
–
–
991661576.UG.FTS.B,
28.48%,
1/27/24
..
74
75
991711799.UG.FTS.B,
28.48%,
1/27/24
..
44
44
991723489.UG.FTS.B,
28.48%,
1/27/24
..
35
35
991728658.UG.FTS.B,
28.48%,
1/27/24
..
32
33
991741153.UG.FTS.B,
28.48%,
1/27/24
..
118
120
991801395.UG.FTS.B,
28.48%,
1/27/24
..
48
48
991614264.UG.FTS.B,
29.48%,
1/27/24
..
17
18
991699163.UG.FTS.B,
29.48%,
1/27/24
..
75
76
991594915.UG.FTS.B,
29.49%,
1/27/24
..
22
22
991595863.UG.FTS.B,
29.49%,
1/27/24
..
95
96
991602939.UG.FTS.B,
29.49%,
1/27/24
..
22
22
991602960.UG.FTS.B,
29.49%,
1/27/24
..
29
30
991604986.UG.FTS.B,
29.49%,
1/27/24
..
16
16
991605049.UG.FTS.B,
29.49%,
1/27/24
..
78
6
991605352.UG.FTS.B,
29.49%,
1/27/24
..
61
61
991605361.UG.FTS.B,
29.49%,
1/27/24
..
15
15
991610027.UG.FTS.B,
29.49%,
1/27/24
..
31
32
991627130.UG.FTS.B,
29.49%,
1/27/24
..
56
57
991630132.UG.FTS.B,
29.49%,
1/27/24
..
20
20
991630928.UG.FTS.B,
29.49%,
1/27/24
..
31
32
991634012.UG.FTS.B,
29.49%,
1/27/24
..
2
2
991637485.UG.FTS.B,
29.49%,
1/27/24
..
10
10
991649457.UG.FTS.B,
29.49%,
1/27/24
..
42
43
991658001.UG.FTS.B,
29.49%,
1/27/24
..
143
–
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
75
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991662634.UG.FTS.B,
29.49%,
1/27/24
..
$
50
$
51
991664036.UG.FTS.B,
29.49%,
1/27/24
..
39
39
991680326.UG.FTS.B,
29.49%,
1/27/24
..
111
112
991683102.UG.FTS.B,
29.49%,
1/27/24
..
27
27
991687929.UG.FTS.B,
29.49%,
1/27/24
..
55
4
991688029.UG.FTS.B,
29.49%,
1/27/24
..
69
70
991691583.UG.FTS.B,
29.49%,
1/27/24
..
39
40
991698229.UG.FTS.B,
29.49%,
1/27/24
..
22
2
991704857.UG.FTS.B,
29.49%,
1/27/24
..
75
76
991711124.UG.FTS.B,
29.49%,
1/27/24
..
28
29
991715767.UG.FTS.B,
29.49%,
1/27/24
..
27
27
991739164.UG.FTS.B,
29.49%,
1/27/24
..
160
161
991739656.UG.FTS.B,
29.49%,
1/27/24
..
355
363
991763575.UG.FTS.B,
29.49%,
1/27/24
..
19
20
991766023.UG.FTS.B,
29.49%,
1/27/24
..
1
1
991769140.UG.FTS.B,
29.49%,
1/27/24
..
21
21
991791557.UG.FTS.B,
29.49%,
1/27/24
..
17
17
991792738.UG.FTS.B,
29.49%,
1/27/24
..
16
16
991793121.UG.FTS.B,
29.49%,
1/27/24
..
32
32
991801330.UG.FTS.B,
29.49%,
1/27/24
..
23
24
991811048.UG.FTS.B,
29.49%,
1/27/24
..
31
7
991617189.UG.FTS.B,
16.49%,
1/28/24
..
20
20
991696310.UG.FTS.B,
21.48%,
1/28/24
..
3
3
991638160.UG.FTS.B,
19.96%,
1/29/24
..
49
49
991851931.UG.FTS.B,
15.47%,
1/30/24
..
140
3
991677257.UG.FTS.B,
17.49%,
1/30/24
..
15
15
991754447.UG.FTS.B,
17.49%,
1/30/24
..
58
59
991633973.UG.FTS.B,
19.3%,
1/30/24
...
20
20
991695974.UG.FTS.B,
21.47%,
1/30/24
..
16
16
991688841.UG.FTS.B,
22.47%,
1/30/24
..
52
52
991702014.UG.FTS.B,
Zero
Cpn,
1/31/24
.
45
3
991631266.UG.FTS.B,
16.49%,
1/31/24
..
129
130
991635849.UG.FTS.B,
16.49%,
1/31/24
..
30
30
991642956.UG.FTS.B,
16.49%,
1/31/24
..
31
32
991677334.UG.FTS.B,
16.49%,
1/31/24
..
71
71
991705318.UG.FTS.B,
16.49%,
1/31/24
..
12
12
991747537.UG.FTS.B,
17.47%,
1/31/24
..
13
13
991637676.UG.FTS.B,
17.49%,
1/31/24
..
13
13
991642846.UG.FTS.B,
17.49%,
1/31/24
..
17
17
991869281.UG.FTS.B,
17.49%,
1/31/24
..
61
61
991661216.UG.FTS.B,
19.3%,
1/31/24
...
54
55
991687417.UG.FTS.B,
19.3%,
1/31/24
...
17
17
991628348.UG.FTS.B,
19.96%,
1/31/24
..
40
40
991672930.UG.FTS.B,
19.96%,
1/31/24
..
14
14
991681323.UG.FTS.B,
19.96%,
1/31/24
..
24
24
991650296.UG.FTS.B,
20.47%,
1/31/24
..
147
149
991705966.UG.FTS.B,
21.48%,
1/31/24
..
28
28
991643834.UG.FTS.B,
22.45%,
1/31/24
..
23
23
991710192.UG.FTS.B,
22.47%,
1/31/24
..
–
–
991764182.UG.FTS.B,
15.47%,
2/01/24
..
48
48
991724946.UG.FTS.B,
16.49%,
2/01/24
..
380
380
991807161.UG.FTS.B,
16.49%,
2/01/24
..
18
18
991669770.UG.FTS.B,
17.49%,
2/01/24
..
253
253
991677316.UG.FTS.B,
17.49%,
2/01/24
..
24
24
991869528.UG.FTS.B,
17.49%,
2/01/24
..
24
24
991678784.UG.FTS.B,
14.48%,
2/02/24
..
–
–
991722113.UG.FTS.B,
15.49%,
2/02/24
..
95
95
991668499.UG.FTS.B,
16.49%,
2/02/24
..
20
20
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991684166.UG.FTS.B,
16.49%,
2/02/24
..
$
19
$
19
991688897.UG.FTS.B,
17.49%,
2/02/24
..
184
14
991733262.UG.FTS.B,
17.49%,
2/02/24
..
34
33
991734120.UG.FTS.B,
17.49%,
2/02/24
..
34
34
991733227.UG.FTS.B,
Zero
Cpn,
2/03/24
.
579
41
991681257.UG.FTS.B,
17.49%,
2/03/24
..
31
31
991702806.UG.FTS.B,
23.45%,
2/03/24
..
71
70
991690009.UG.FTS.B,
28.48%,
2/03/24
..
75
75
991705815.UG.FTS.B,
29.48%,
2/03/24
..
88
88
991687586.UG.FTS.B,
29.49%,
2/03/24
..
22
22
991785226.UG.FTS.B,
29.49%,
2/03/24
..
29
29
991795299.UG.FTS.B,
29.49%,
2/03/24
..
33
32
991815788.UG.FTS.B,
29.49%,
2/03/24
..
29
29
991861447.UG.FTS.B,
29.49%,
2/03/24
..
16
16
991909246.UG.FTS.B,
29.49%,
2/03/24
..
42
42
991854905.UG.FTS.B,
15.47%,
2/04/24
..
75
76
991686911.UG.FTS.B,
18.47%,
2/04/24
..
22
22
991685554.UG.FTS.B,
18.71%,
2/04/24
..
23
23
991711305.UG.FTS.B,
29.48%,
2/04/24
..
34
34
991702984.UG.FTS.B,
29.49%,
2/04/24
..
23
23
991726705.UG.FTS.B,
29.49%,
2/04/24
..
21
21
991756664.UG.FTS.B,
29.49%,
2/04/24
..
58
5
991764301.UG.FTS.B,
29.49%,
2/04/24
..
44
3
991788801.UG.FTS.B,
29.49%,
2/04/24
..
36
36
991804405.UG.FTS.B,
29.49%,
2/04/24
..
32
–
991813259.UG.FTS.B,
29.49%,
2/04/24
..
141
141
991894355.UG.FTS.B,
29.49%,
2/04/24
..
–
–
991909049.UG.FTS.B,
29.49%,
2/04/24
..
15
15
991910876.UG.FTS.B,
29.49%,
2/04/24
..
20
20
991911528.UG.FTS.B,
29.49%,
2/04/24
..
58
58
991696162.UG.FTS.B,
Zero
Cpn,
2/05/24
.
56
4
991723083.UG.FTS.B,
Zero
Cpn,
2/05/24
.
88
6
991936900.UG.FTS.B,
Zero
Cpn,
2/05/24
.
48
3
991711452.UG.FTS.B,
19.96%,
2/05/24
..
53
20
991693126.UG.FTS.B,
19.99%,
2/05/24
..
25
26
991827138.UG.FTS.B,
21.48%,
2/05/24
..
21
21
991854090.UG.FTS.B,
21.48%,
2/05/24
..
45
45
991776899.UG.FTS.B,
22.47%,
2/05/24
..
20
20
991698945.UG.FTS.B,
23.45%,
2/05/24
..
80
11
991725398.UG.FTS.B,
23.45%,
2/05/24
..
11
11
991938019.UG.FTS.B,
23.45%,
2/05/24
..
40
40
991866679.UG.FTS.B,
26.44%,
2/05/24
..
25
11
991712635.UG.FTS.B,
28.48%,
2/05/24
..
79
79
991738161.UG.FTS.B,
28.48%,
2/05/24
..
53
53
991739512.UG.FTS.B,
28.48%,
2/05/24
..
31
31
991751198.UG.FTS.B,
28.48%,
2/05/24
..
72
73
991766340.UG.FTS.B,
28.48%,
2/05/24
..
166
64
991785400.UG.FTS.B,
28.48%,
2/05/24
..
23
23
991835745.UG.FTS.B,
28.48%,
2/05/24
..
36
37
991916369.UG.FTS.B,
28.48%,
2/05/24
..
41
41
991805200.UG.FTS.B,
29.46%,
2/05/24
..
43
3
991701867.UG.FTS.B,
29.48%,
2/05/24
..
19
19
991714933.UG.FTS.B,
29.48%,
2/05/24
..
18
18
991716572.UG.FTS.B,
29.48%,
2/05/24
..
21
21
991781448.UG.FTS.B,
29.48%,
2/05/24
..
24
24
991797219.UG.FTS.B,
29.48%,
2/05/24
..
168
169
991833863.UG.FTS.B,
29.48%,
2/05/24
..
42
42
991838320.UG.FTS.B,
29.48%,
2/05/24
..
11
11
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991898289.UG.FTS.B,
29.48%,
2/05/24
..
$
20
$
20
991692055.UG.FTS.B,
29.49%,
2/05/24
..
130
44
991693089.UG.FTS.B,
29.49%,
2/05/24
..
27
28
991693783.UG.FTS.B,
29.49%,
2/05/24
..
6
6
991696616.UG.FTS.B,
29.49%,
2/05/24
..
127
–
991696879.UG.FTS.B,
29.49%,
2/05/24
..
239
6
991697144.UG.FTS.B,
29.49%,
2/05/24
..
30
13
991701473.UG.FTS.B,
29.49%,
2/05/24
..
66
66
991705462.UG.FTS.B,
29.49%,
2/05/24
..
60
59
991705465.UG.FTS.B,
29.49%,
2/05/24
..
10
10
991706846.UG.FTS.B,
29.49%,
2/05/24
..
40
40
991711397.UG.FTS.B,
29.49%,
2/05/24
..
105
106
991712546.UG.FTS.B,
29.49%,
2/05/24
..
22
22
991713288.UG.FTS.B,
29.49%,
2/05/24
..
24
1
991713498.UG.FTS.B,
29.49%,
2/05/24
..
19
20
991718017.UG.FTS.B,
29.49%,
2/05/24
..
26
27
991729702.UG.FTS.B,
29.49%,
2/05/24
..
–
–
991737989.UG.FTS.B,
29.49%,
2/05/24
..
5
5
991744990.UG.FTS.B,
29.49%,
2/05/24
..
20
20
991752632.UG.FTS.B,
29.49%,
2/05/24
..
22
22
991757885.UG.FTS.B,
29.49%,
2/05/24
..
99
99
991760937.UG.FTS.B,
29.49%,
2/05/24
..
–
–
991786506.UG.FTS.B,
29.49%,
2/05/24
..
54
55
991787648.UG.FTS.B,
29.49%,
2/05/24
..
126
127
991788922.UG.FTS.B,
29.49%,
2/05/24
..
4
4
991796027.UG.FTS.B,
29.49%,
2/05/24
..
39
40
991799165.UG.FTS.B,
29.49%,
2/05/24
..
22
22
991801405.UG.FTS.B,
29.49%,
2/05/24
..
161
54
991831270.UG.FTS.B,
29.49%,
2/05/24
..
65
29
991833796.UG.FTS.B,
29.49%,
2/05/24
..
32
32
991858745.UG.FTS.B,
29.49%,
2/05/24
..
66
66
991879388.UG.FTS.B,
29.49%,
2/05/24
..
18
18
991889487.UG.FTS.B,
29.49%,
2/05/24
..
21
21
991905879.UG.FTS.B,
29.49%,
2/05/24
..
26
26
991932864.UG.FTS.B,
29.49%,
2/05/24
..
5
5
991780601.UG.FTS.B,
Zero
Cpn,
2/06/24
.
60
4
991811603.UG.FTS.B,
Zero
Cpn,
2/06/24
.
47
3
991766242.UG.FTS.B,
18.47%,
2/06/24
..
23
23
991894070.UG.FTS.B,
19.96%,
2/06/24
..
50
50
991718257.UG.FTS.B,
20.96%,
2/06/24
..
35
35
991809389.UG.FTS.B,
20.96%,
2/06/24
..
84
84
991714545.UG.FTS.B,
21.48%,
2/06/24
..
24
24
991747919.UG.FTS.B,
21.48%,
2/06/24
..
20
20
991764160.UG.FTS.B,
21.48%,
2/06/24
..
32
32
991734865.UG.FTS.B,
25.45%,
2/06/24
..
30
30
991702392.UG.FTS.B,
28.48%,
2/06/24
..
40
40
991730449.UG.FTS.B,
28.48%,
2/06/24
..
81
–
991740055.UG.FTS.B,
28.48%,
2/06/24
..
147
148
991780645.UG.FTS.B,
28.48%,
2/06/24
..
75
76
991785489.UG.FTS.B,
28.48%,
2/06/24
..
137
137
991803786.UG.FTS.B,
28.48%,
2/06/24
..
19
19
991853055.UG.FTS.B,
28.48%,
2/06/24
..
49
49
991853534.UG.FTS.B,
28.48%,
2/06/24
..
40
40
991704767.UG.FTS.B,
29.48%,
2/06/24
..
3
3
991819053.UG.FTS.B,
29.48%,
2/06/24
..
19
19
991835222.UG.FTS.B,
29.48%,
2/06/24
..
258
43
991894999.UG.FTS.B,
29.48%,
2/06/24
..
144
145
991914678.UG.FTS.B,
29.48%,
2/06/24
..
50
50
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991928677.UG.FTS.B,
29.48%,
2/06/24
..
$
41
$
41
991702835.UG.FTS.B,
29.49%,
2/06/24
..
48
48
991703043.UG.FTS.B,
29.49%,
2/06/24
..
7
7
991704372.UG.FTS.B,
29.49%,
2/06/24
..
17
17
991706434.UG.FTS.B,
29.49%,
2/06/24
..
73
74
991706794.UG.FTS.B,
29.49%,
2/06/24
..
21
21
991707306.UG.FTS.B,
29.49%,
2/06/24
..
131
131
991709169.UG.FTS.B,
29.49%,
2/06/24
..
29
2
991711265.UG.FTS.B,
29.49%,
2/06/24
..
88
–
991717524.UG.FTS.B,
29.49%,
2/06/24
..
124
–
991723140.UG.FTS.B,
29.49%,
2/06/24
..
107
109
991730343.UG.FTS.B,
29.49%,
2/06/24
..
54
54
991731423.UG.FTS.B,
29.49%,
2/06/24
..
20
20
991734953.UG.FTS.B,
29.49%,
2/06/24
..
46
46
991735402.UG.FTS.B,
29.49%,
2/06/24
..
22
22
991736969.UG.FTS.B,
29.49%,
2/06/24
..
48
49
991738288.UG.FTS.B,
29.49%,
2/06/24
..
1
1
991738514.UG.FTS.B,
29.49%,
2/06/24
..
42
42
991739473.UG.FTS.B,
29.49%,
2/06/24
..
25
26
991741909.UG.FTS.B,
29.49%,
2/06/24
..
–
–
991750749.UG.FTS.B,
29.49%,
2/06/24
..
71
71
991754554.UG.FTS.B,
29.49%,
2/06/24
..
28
28
991756713.UG.FTS.B,
29.49%,
2/06/24
..
193
194
991760581.UG.FTS.B,
29.49%,
2/06/24
..
87
87
991762718.UG.FTS.B,
29.49%,
2/06/24
..
19
19
991766882.UG.FTS.B,
29.49%,
2/06/24
..
47
47
991767912.UG.FTS.B,
29.49%,
2/06/24
..
39
39
991775218.UG.FTS.B,
29.49%,
2/06/24
..
55
55
991802450.UG.FTS.B,
29.49%,
2/06/24
..
9
9
991803366.UG.FTS.B,
29.49%,
2/06/24
..
34
34
991804272.UG.FTS.B,
29.49%,
2/06/24
..
10
10
991812453.UG.FTS.B,
29.49%,
2/06/24
..
30
30
991845179.UG.FTS.B,
29.49%,
2/06/24
..
42
42
991848888.UG.FTS.B,
29.49%,
2/06/24
..
21
21
991854055.UG.FTS.B,
29.49%,
2/06/24
..
268
118
991854221.UG.FTS.B,
29.49%,
2/06/24
..
210
211
991864157.UG.FTS.B,
29.49%,
2/06/24
..
61
27
991865672.UG.FTS.B,
29.49%,
2/06/24
..
70
70
991876619.UG.FTS.B,
29.49%,
2/06/24
..
–
–
991879365.UG.FTS.B,
29.49%,
2/06/24
..
55
55
991903049.UG.FTS.B,
29.49%,
2/06/24
..
4
4
991908232.UG.FTS.B,
29.49%,
2/06/24
..
21
21
991908563.UG.FTS.B,
29.49%,
2/06/24
..
4
4
991913163.UG.FTS.B,
29.49%,
2/06/24
..
38
6
991916003.UG.FTS.B,
29.49%,
2/06/24
..
64
65
991925585.UG.FTS.B,
29.49%,
2/06/24
..
59
59
991709711.UG.FTS.B,
Zero
Cpn,
2/07/24
.
166
12
991711547.UG.FTS.B,
Zero
Cpn,
2/07/24
.
34
2
991714530.UG.FTS.B,
Zero
Cpn,
2/07/24
.
72
5
991847296.UG.FTS.B,
Zero
Cpn,
2/07/24
.
221
16
991952896.UG.FTS.B,
17.49%,
2/07/24
..
190
190
991726829.UG.FTS.B,
18.47%,
2/07/24
..
13
13
991908299.UG.FTS.B,
18.47%,
2/07/24
..
19
19
991758069.UG.FTS.B,
28.48%,
2/07/24
..
93
93
991764700.UG.FTS.B,
28.48%,
2/07/24
..
22
22
991803011.UG.FTS.B,
28.48%,
2/07/24
..
30
31
991815918.UG.FTS.B,
28.48%,
2/07/24
..
6
6
991818712.UG.FTS.B,
28.48%,
2/07/24
..
171
–
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
77
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991917220.UG.FTS.B,
28.48%,
2/07/24
..
$
43
$
44
991715983.UG.FTS.B,
29.48%,
2/07/24
..
–
–
991728869.UG.FTS.B,
29.48%,
2/07/24
..
23
23
991760237.UG.FTS.B,
29.48%,
2/07/24
..
66
66
991797551.UG.FTS.B,
29.48%,
2/07/24
..
88
14
991813154.UG.FTS.B,
29.48%,
2/07/24
..
40
40
991707631.UG.FTS.B,
29.49%,
2/07/24
..
30
30
991711765.UG.FTS.B,
29.49%,
2/07/24
..
108
109
991712289.UG.FTS.B,
29.49%,
2/07/24
..
6
5
991712442.UG.FTS.B,
29.49%,
2/07/24
..
45
45
991712942.UG.FTS.B,
29.49%,
2/07/24
..
29
29
991714110.UG.FTS.B,
29.49%,
2/07/24
..
38
39
991721981.UG.FTS.B,
29.49%,
2/07/24
..
32
32
991724940.UG.FTS.B,
29.49%,
2/07/24
..
129
53
991729259.UG.FTS.B,
29.49%,
2/07/24
..
64
64
991734419.UG.FTS.B,
29.49%,
2/07/24
..
28
28
991742022.UG.FTS.B,
29.49%,
2/07/24
..
40
40
991747730.UG.FTS.B,
29.49%,
2/07/24
..
–
–
991760583.UG.FTS.B,
29.49%,
2/07/24
..
15
15
991767246.UG.FTS.B,
29.49%,
2/07/24
..
39
17
991768735.UG.FTS.B,
29.49%,
2/07/24
..
150
149
991772407.UG.FTS.B,
29.49%,
2/07/24
..
18
18
991781548.UG.FTS.B,
29.49%,
2/07/24
..
288
293
991794751.UG.FTS.B,
29.49%,
2/07/24
..
57
57
991795789.UG.FTS.B,
29.49%,
2/07/24
..
38
39
991817987.UG.FTS.B,
29.49%,
2/07/24
..
11
11
991822013.UG.FTS.B,
29.49%,
2/07/24
..
34
34
991835130.UG.FTS.B,
29.49%,
2/07/24
..
31
32
991840310.UG.FTS.B,
29.49%,
2/07/24
..
37
37
991842041.UG.FTS.B,
29.49%,
2/07/24
..
25
25
991844653.UG.FTS.B,
29.49%,
2/07/24
..
112
113
991852247.UG.FTS.B,
29.49%,
2/07/24
..
110
110
991852683.UG.FTS.B,
29.49%,
2/07/24
..
28
28
991860524.UG.FTS.B,
29.49%,
2/07/24
..
–
–
991881568.UG.FTS.B,
29.49%,
2/07/24
..
65
65
991889120.UG.FTS.B,
29.49%,
2/07/24
..
65
65
991920714.UG.FTS.B,
29.49%,
2/07/24
..
31
31
991734323.UG.FTS.B,
16.49%,
2/09/24
..
42
42
991689785.UG.FTS.B,
29.49%,
2/17/24
..
65
60
991711411.UG.FTS.B,
29.49%,
2/18/24
..
14
14
991922854.UG.FTS.B,
21.46%,
3/07/24
..
20
18
991828622.UG.FTS.B,
16.49%,
3/23/24
..
61
62
991712564.UG.FTS.B,
29.48%,
4/17/24
..
127
113
991575505.UG.FTS.B,
29.49%,
4/17/24
..
317
320
991638900.UG.FTS.B,
29.47%,
4/18/24
..
40
–
991689800.UG.FTS.B,
29.49%,
4/18/24
..
48
44
991716207.UG.FTS.B,
29.49%,
4/18/24
..
61
62
991783332.UG.FTS.B,
20.47%,
4/19/24
..
138
121
991655876.UG.FTS.B,
28.48%,
4/21/24
..
129
111
991721326.UG.FTS.B,
29.49%,
4/22/24
..
90
85
991636176.UG.FTS.B,
29.49%,
4/23/24
..
153
135
991676577.UG.FTS.B,
29.49%,
4/23/24
..
498
508
991781162.UG.FTS.B,
29.49%,
4/23/24
..
50
51
991601477.UG.FTS.B,
28.48%,
4/24/24
..
25
25
991741014.UG.FTS.B,
29.49%,
4/24/24
..
168
172
991681844.UG.FTS.B,
29.49%,
5/05/24
..
455
34
991785049.UG.FTS.B,
29.49%,
5/05/24
..
55
1
991827302.UG.FTS.B,
29.49%,
5/05/24
..
33
33
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991896635.UG.FTS.B,
21.48%,
5/06/24
..
$
139
$
128
991713731.UG.FTS.B,
29.49%,
5/06/24
..
29
30
991894974.UG.FTS.B,
29.49%,
5/06/24
..
228
232
991736572.UG.FTS.B,
29.48%,
5/07/24
..
83
72
991720763.UG.FTS.B,
29.49%,
5/07/24
..
102
16
991552817.UG.FTS.B,
29.49%,
5/15/24
..
80
31
991671486.UG.FTS.B,
29.49%,
5/16/24
..
89
90
991756734.UG.FTS.B,
Zero
Cpn,
5/18/24
.
47
3
991774181.UG.FTS.B,
20.96%,
5/19/24
..
93
78
991642255.UG.FTS.B,
Zero
Cpn,
5/22/24
.
79
6
991832099.UG.FTS.B,
29.49%,
5/23/24
..
31
27
991716555.UG.FTS.B,
28.98%,
5/24/24
..
36
37
991693378.UG.FTS.B,
23.44%,
6/03/24
..
69
25
991588559.UG.FTS.B,
29.46%,
6/17/24
..
40
41
991562352.UG.FTS.B,
29.49%,
6/17/24
..
45
38
991658433.UG.FTS.B,
16.49%,
6/30/24
..
367
56
991608248.UG.FTS.B,
19.99%,
7/21/24
..
35
30
991633451.UG.FTS.B,
29.49%,
7/22/24
..
128
113
991924883.UG.FTS.B,
23.95%,
8/05/24
..
47
15
991725148.UG.FTS.B,
19.8%,
8/06/24
...
48
49
991787803.UG.FTS.B,
29.46%,
8/20/24
..
44
39
991712265.UG.FTS.B,
29.49%,
9/07/24
..
83
5
991671753.UG.FTS.B,
19.96%,
9/23/24
..
132
133
991802395.UG.FTS.B,
29.49%,
10/06/24
.
130
133
991732331.UG.FTS.B,
28.48%,
10/15/24
.
65
9
991661636.UG.FTS.B,
29.49%,
10/20/24
.
46
38
991682766.UG.FTS.B,
29.49%,
10/20/24
.
239
–
991639187.UG.FTS.B,
Zero
Cpn,
10/29/24
238
17
991556675.UG.FTS.B,
29.49%,
11/17/24
.
58
47
991591790.UG.FTS.B,
29.49%,
12/21/24
.
331
336
991487037.UG.FTS.B,
14.98%,
1/13/25
..
804
807
991499314.UG.FTS.B,
16.99%,
1/14/25
..
205
210
991514741.UG.FTS.B,
17.99%,
1/15/25
..
540
541
991729446.UG.FTS.B,
19.99%,
1/16/25
..
8
8
991773734.UG.FTS.B,
29.49%,
1/16/25
..
1
1
991594803.UG.FTS.B,
28.98%,
1/17/25
..
23
23
991545817.UG.FTS.B,
29.49%,
1/17/25
..
5
5
991562985.UG.FTS.B,
29.49%,
1/17/25
..
13
13
991628720.UG.FTS.B,
29.49%,
1/17/25
..
6
6
991578090.UG.FTS.B,
Zero
Cpn,
1/18/25
.
–
–
991534259.UG.FTS.B,
19.99%,
1/18/25
..
6
6
991542919.UG.FTS.B,
19.99%,
1/18/25
..
275
287
991543349.UG.FTS.B,
19.99%,
1/18/25
..
641
669
991596625.UG.FTS.B,
19.99%,
1/18/25
..
161
167
991535930.UG.FTS.B,
27.95%,
1/18/25
..
1,067
1,114
991541397.UG.FTS.B,
27.95%,
1/18/25
..
163
55
991536394.UG.FTS.B,
28.98%,
1/18/25
..
4,143
4,359
991541730.UG.FTS.B,
28.98%,
1/18/25
..
415
420
991547864.UG.FTS.B,
28.98%,
1/18/25
..
408
426
991586801.UG.FTS.B,
28.98%,
1/18/25
..
132
136
991605601.UG.FTS.B,
28.98%,
1/18/25
..
8
8
991633024.UG.FTS.B,
28.98%,
1/18/25
..
39
39
991643598.UG.FTS.B,
28.98%,
1/18/25
..
93
95
991662279.UG.FTS.B,
28.98%,
1/18/25
..
69
71
991669237.UG.FTS.B,
28.98%,
1/18/25
..
34
35
991766780.UG.FTS.B,
29.45%,
1/18/25
..
90
93
991670069.UG.FTS.B,
29.46%,
1/18/25
..
380
27
991567035.UG.FTS.B,
29.48%,
1/18/25
..
335
352
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991535459.UG.FTS.B,
29.49%,
1/18/25
..
$
142
$
150
991535708.UG.FTS.B,
29.49%,
1/18/25
..
50
51
991536072.UG.FTS.B,
29.49%,
1/18/25
..
261
266
991536876.UG.FTS.B,
29.49%,
1/18/25
..
164
171
991536929.UG.FTS.B,
29.49%,
1/18/25
..
743
767
991537021.UG.FTS.B,
29.49%,
1/18/25
..
20
20
991540546.UG.FTS.B,
29.49%,
1/18/25
..
60
63
991540582.UG.FTS.B,
29.49%,
1/18/25
..
424
426
991541260.UG.FTS.B,
29.49%,
1/18/25
..
51
53
991543638.UG.FTS.B,
29.49%,
1/18/25
..
101
8
991544799.UG.FTS.B,
29.49%,
1/18/25
..
144
151
991545277.UG.FTS.B,
29.49%,
1/18/25
..
237
64
991560367.UG.FTS.B,
29.49%,
1/18/25
..
339
–
991563278.UG.FTS.B,
29.49%,
1/18/25
..
102
106
991576670.UG.FTS.B,
29.49%,
1/18/25
..
–
–
991577286.UG.FTS.B,
29.49%,
1/18/25
..
278
289
991637270.UG.FTS.B,
29.49%,
1/18/25
..
27
28
991678184.UG.FTS.B,
29.49%,
1/18/25
..
10
10
991692788.UG.FTS.B,
29.49%,
1/18/25
..
21
21
991755790.UG.FTS.B,
29.49%,
1/18/25
..
31
32
991765962.UG.FTS.B,
29.49%,
1/18/25
..
46
48
991768700.UG.FTS.B,
29.49%,
1/18/25
..
120
123
991664635.UG.FTS.B,
18.97%,
1/19/25
..
–
–
991713909.UG.FTS.B,
18.97%,
1/19/25
..
151
153
991553350.UG.FTS.B,
19.99%,
1/19/25
..
43
–
991556775.UG.FTS.B,
19.99%,
1/19/25
..
83
6
991593524.UG.FTS.B,
19.99%,
1/19/25
..
44
44
991617879.UG.FTS.B,
19.99%,
1/19/25
..
767
800
991640553.UG.FTS.B,
19.99%,
1/19/25
..
42
42
991650417.UG.FTS.B,
19.99%,
1/19/25
..
146
152
991764139.UG.FTS.B,
19.99%,
1/19/25
..
8
8
991698886.UG.FTS.B,
21.46%,
1/19/25
..
62
63
991690575.UG.FTS.B,
25.95%,
1/19/25
..
316
326
991779529.UG.FTS.B,
27.99%,
1/19/25
..
209
217
991544331.UG.FTS.B,
28.98%,
1/19/25
..
372
385
991547565.UG.FTS.B,
28.98%,
1/19/25
..
93
95
991556346.UG.FTS.B,
28.98%,
1/19/25
..
139
146
991580652.UG.FTS.B,
28.98%,
1/19/25
..
60
63
991652010.UG.FTS.B,
28.98%,
1/19/25
..
190
196
991655297.UG.FTS.B,
28.98%,
1/19/25
..
14
14
991680250.UG.FTS.B,
28.98%,
1/19/25
..
254
257
991684419.UG.FTS.B,
28.98%,
1/19/25
..
534
556
991689404.UG.FTS.B,
28.98%,
1/19/25
..
119
124
991694508.UG.FTS.B,
28.98%,
1/19/25
..
174
180
991729327.UG.FTS.B,
28.98%,
1/19/25
..
85
12
991734745.UG.FTS.B,
28.98%,
1/19/25
..
260
270
991746200.UG.FTS.B,
28.98%,
1/19/25
..
282
293
991746728.UG.FTS.B,
28.98%,
1/19/25
..
59
62
991747421.UG.FTS.B,
28.98%,
1/19/25
..
15
15
991748030.UG.FTS.B,
28.98%,
1/19/25
..
84
87
991783620.UG.FTS.B,
28.98%,
1/19/25
..
207
215
991784176.UG.FTS.B,
28.98%,
1/19/25
..
188
194
991616379.UG.FTS.B,
29.45%,
1/19/25
..
80
80
991547157.UG.FTS.B,
29.46%,
1/19/25
..
327
333
991550875.UG.FTS.B,
29.47%,
1/19/25
..
1,062
1,115
991767247.UG.FTS.B,
29.47%,
1/19/25
..
326
339
991551878.UG.FTS.B,
29.48%,
1/19/25
..
124
124
991542015.UG.FTS.B,
29.49%,
1/19/25
..
196
197
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991547832.UG.FTS.B,
29.49%,
1/19/25
..
$
120
$
123
991556769.UG.FTS.B,
29.49%,
1/19/25
..
89
93
991559196.UG.FTS.B,
29.49%,
1/19/25
..
1,884
1,879
991567620.UG.FTS.B,
29.49%,
1/19/25
..
162
167
991571908.UG.FTS.B,
29.49%,
1/19/25
..
97
102
991575387.UG.FTS.B,
29.49%,
1/19/25
..
132
139
991579317.UG.FTS.B,
29.49%,
1/19/25
..
90
93
991587154.UG.FTS.B,
29.49%,
1/19/25
..
148
21
991589395.UG.FTS.B,
29.49%,
1/19/25
..
290
301
991590614.UG.FTS.B,
29.49%,
1/19/25
..
146
152
991668851.UG.FTS.B,
29.49%,
1/19/25
..
77
5
991700162.UG.FTS.B,
29.49%,
1/19/25
..
–
–
991710813.UG.FTS.B,
29.49%,
1/19/25
..
31
32
991719174.UG.FTS.B,
29.49%,
1/19/25
..
892
929
991721350.UG.FTS.B,
29.49%,
1/19/25
..
1,300
1,360
991732729.UG.FTS.B,
29.49%,
1/19/25
..
85
85
991769796.UG.FTS.B,
29.49%,
1/19/25
..
79
82
991771466.UG.FTS.B,
29.49%,
1/19/25
..
102
106
991773161.UG.FTS.B,
29.49%,
1/19/25
..
260
270
991782580.UG.FTS.B,
29.49%,
1/19/25
..
62
65
991558482.UG.FTS.B,
Zero
Cpn,
1/20/25
.
1,320
91
991575963.UG.FTS.B,
Zero
Cpn,
1/20/25
.
117
8
991609600.UG.FTS.B,
Zero
Cpn,
1/20/25
.
1,153
79
991648690.UG.FTS.B,
Zero
Cpn,
1/20/25
.
85
6
991718671.UG.FTS.B,
Zero
Cpn,
1/20/25
.
203
14
991736469.UG.FTS.B,
Zero
Cpn,
1/20/25
.
41
3
991787423.UG.FTS.B,
14.98%,
1/20/25
..
236
35
991550110.UG.FTS.B,
19.99%,
1/20/25
..
198
207
991551168.UG.FTS.B,
19.99%,
1/20/25
..
1,400
–
991558664.UG.FTS.B,
19.99%,
1/20/25
..
229
237
991560098.UG.FTS.B,
19.99%,
1/20/25
..
109
114
991563863.UG.FTS.B,
19.99%,
1/20/25
..
201
209
991567021.UG.FTS.B,
19.99%,
1/20/25
..
268
280
991569516.UG.FTS.B,
19.99%,
1/20/25
..
553
577
991575551.UG.FTS.B,
19.99%,
1/20/25
..
669
698
991579043.UG.FTS.B,
19.99%,
1/20/25
..
1,407
1,098
991579154.UG.FTS.B,
19.99%,
1/20/25
..
99
103
991580969.UG.FTS.B,
19.99%,
1/20/25
..
680
706
991591112.UG.FTS.B,
19.99%,
1/20/25
..
190
197
991612039.UG.FTS.B,
19.99%,
1/20/25
..
55
56
991613122.UG.FTS.B,
19.99%,
1/20/25
..
134
140
991615000.UG.FTS.B,
19.99%,
1/20/25
..
259
270
991635746.UG.FTS.B,
19.99%,
1/20/25
..
178
179
991642370.UG.FTS.B,
19.99%,
1/20/25
..
163
170
991646361.UG.FTS.B,
19.99%,
1/20/25
..
150
155
991650312.UG.FTS.B,
19.99%,
1/20/25
..
168
173
991666023.UG.FTS.B,
19.99%,
1/20/25
..
129
135
991676336.UG.FTS.B,
19.99%,
1/20/25
..
67
68
991699684.UG.FTS.B,
19.99%,
1/20/25
..
84
88
991751909.UG.FTS.B,
19.99%,
1/20/25
..
97
100
991674160.UG.FTS.B,
25.95%,
1/20/25
..
163
167
991693406.UG.FTS.B,
27.95%,
1/20/25
..
671
674
991567052.UG.FTS.B,
27.99%,
1/20/25
..
52
54
991653855.UG.FTS.B,
27.99%,
1/20/25
..
155
161
991682363.UG.FTS.B,
27.99%,
1/20/25
..
1,107
1,148
991544408.UG.FTS.B,
28.98%,
1/20/25
..
70
73
991545892.UG.FTS.B,
28.98%,
1/20/25
..
37
37
991546136.UG.FTS.B,
28.98%,
1/20/25
..
46
46
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
79
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991547409.UG.FTS.B,
28.98%,
1/20/25
..
$
60
$
62
991547592.UG.FTS.B,
28.98%,
1/20/25
..
5,159
354
991547593.UG.FTS.B,
28.98%,
1/20/25
..
186
194
991547777.UG.FTS.B,
28.98%,
1/20/25
..
53
54
991552067.UG.FTS.B,
28.98%,
1/20/25
..
22
22
991552893.UG.FTS.B,
28.98%,
1/20/25
..
289
300
991553649.UG.FTS.B,
28.98%,
1/20/25
..
796
832
991554237.UG.FTS.B,
28.98%,
1/20/25
..
–
–
991556261.UG.FTS.B,
28.98%,
1/20/25
..
587
609
991557666.UG.FTS.B,
28.98%,
1/20/25
..
704
722
991557809.UG.FTS.B,
28.98%,
1/20/25
..
69
72
991558522.UG.FTS.B,
28.98%,
1/20/25
..
66
68
991559055.UG.FTS.B,
28.98%,
1/20/25
..
2,158
2,196
991559725.UG.FTS.B,
28.98%,
1/20/25
..
450
471
991561334.UG.FTS.B,
28.98%,
1/20/25
..
282
295
991562380.UG.FTS.B,
28.98%,
1/20/25
..
132
138
991564330.UG.FTS.B,
28.98%,
1/20/25
..
77
80
991566285.UG.FTS.B,
28.98%,
1/20/25
..
156
163
991568849.UG.FTS.B,
28.98%,
1/20/25
..
98
102
991568936.UG.FTS.B,
28.98%,
1/20/25
..
185
194
991570565.UG.FTS.B,
28.98%,
1/20/25
..
85
89
991571433.UG.FTS.B,
28.98%,
1/20/25
..
107
112
991572223.UG.FTS.B,
28.98%,
1/20/25
..
817
113
991572292.UG.FTS.B,
28.98%,
1/20/25
..
16
16
991575019.UG.FTS.B,
28.98%,
1/20/25
..
317
332
991575102.UG.FTS.B,
28.98%,
1/20/25
..
823
861
991575747.UG.FTS.B,
28.98%,
1/20/25
..
11
11
991579033.UG.FTS.B,
28.98%,
1/20/25
..
110
115
991580751.UG.FTS.B,
28.98%,
1/20/25
..
205
209
991581464.UG.FTS.B,
28.98%,
1/20/25
..
102
103
991581893.UG.FTS.B,
28.98%,
1/20/25
..
213
222
991583574.UG.FTS.B,
28.98%,
1/20/25
..
30
30
991584117.UG.FTS.B,
28.98%,
1/20/25
..
374
388
991588111.UG.FTS.B,
28.98%,
1/20/25
..
79
81
991589534.UG.FTS.B,
28.98%,
1/20/25
..
315
329
991589805.UG.FTS.B,
28.98%,
1/20/25
..
10
10
991590552.UG.FTS.B,
28.98%,
1/20/25
..
237
248
991591623.UG.FTS.B,
28.98%,
1/20/25
..
74
–
991592663.UG.FTS.B,
28.98%,
1/20/25
..
29
29
991594115.UG.FTS.B,
28.98%,
1/20/25
..
554
577
991602891.UG.FTS.B,
28.98%,
1/20/25
..
64
67
991603854.UG.FTS.B,
28.98%,
1/20/25
..
213
222
991604545.UG.FTS.B,
28.98%,
1/20/25
..
130
134
991604665.UG.FTS.B,
28.98%,
1/20/25
..
122
126
991606337.UG.FTS.B,
28.98%,
1/20/25
..
68
68
991608131.UG.FTS.B,
28.98%,
1/20/25
..
127
133
991608902.UG.FTS.B,
28.98%,
1/20/25
..
570
78
991609515.UG.FTS.B,
28.98%,
1/20/25
..
263
275
991613998.UG.FTS.B,
28.98%,
1/20/25
..
317
331
991616232.UG.FTS.B,
28.98%,
1/20/25
..
88
91
991617883.UG.FTS.B,
28.98%,
1/20/25
..
787
823
991621078.UG.FTS.B,
28.98%,
1/20/25
..
78
78
991624075.UG.FTS.B,
28.98%,
1/20/25
..
–
–
991625260.UG.FTS.B,
28.98%,
1/20/25
..
77
80
991628122.UG.FTS.B,
28.98%,
1/20/25
..
64
67
991629144.UG.FTS.B,
28.98%,
1/20/25
..
364
380
991631399.UG.FTS.B,
28.98%,
1/20/25
..
105
105
991634045.UG.FTS.B,
28.98%,
1/20/25
..
92
96
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991634258.UG.FTS.B,
28.98%,
1/20/25
..
$
245
$
251
991639978.UG.FTS.B,
28.98%,
1/20/25
..
112
9
991643294.UG.FTS.B,
28.98%,
1/20/25
..
104
108
991645700.UG.FTS.B,
28.98%,
1/20/25
..
655
670
991652792.UG.FTS.B,
28.98%,
1/20/25
..
26
26
991653273.UG.FTS.B,
28.98%,
1/20/25
..
93
96
991655177.UG.FTS.B,
28.98%,
1/20/25
..
107
107
991655284.UG.FTS.B,
28.98%,
1/20/25
..
35
36
991658226.UG.FTS.B,
28.98%,
1/20/25
..
232
234
991661646.UG.FTS.B,
28.98%,
1/20/25
..
228
234
991662576.UG.FTS.B,
28.98%,
1/20/25
..
241
250
991665002.UG.FTS.B,
28.98%,
1/20/25
..
657
687
991668194.UG.FTS.B,
28.98%,
1/20/25
..
307
320
991672473.UG.FTS.B,
28.98%,
1/20/25
..
173
180
991678497.UG.FTS.B,
28.98%,
1/20/25
..
55
57
991683658.UG.FTS.B,
28.98%,
1/20/25
..
25
25
991685455.UG.FTS.B,
28.98%,
1/20/25
..
90
92
991686339.UG.FTS.B,
28.98%,
1/20/25
..
127
132
991688152.UG.FTS.B,
28.98%,
1/20/25
..
102
107
991688819.UG.FTS.B,
28.98%,
1/20/25
..
222
230
991691824.UG.FTS.B,
28.98%,
1/20/25
..
81
85
991695244.UG.FTS.B,
28.98%,
1/20/25
..
12
13
991704987.UG.FTS.B,
28.98%,
1/20/25
..
42
44
991708940.UG.FTS.B,
28.98%,
1/20/25
..
19
19
991709725.UG.FTS.B,
28.98%,
1/20/25
..
39
40
991711174.UG.FTS.B,
28.98%,
1/20/25
..
44
45
991719591.UG.FTS.B,
28.98%,
1/20/25
..
86
87
991727362.UG.FTS.B,
28.98%,
1/20/25
..
122
126
991731657.UG.FTS.B,
28.98%,
1/20/25
..
217
223
991737941.UG.FTS.B,
28.98%,
1/20/25
..
38
39
991743913.UG.FTS.B,
28.98%,
1/20/25
..
20
20
991745775.UG.FTS.B,
28.98%,
1/20/25
..
54
54
991750085.UG.FTS.B,
28.98%,
1/20/25
..
60
62
991752117.UG.FTS.B,
28.98%,
1/20/25
..
130
134
991760438.UG.FTS.B,
28.98%,
1/20/25
..
58
60
991764409.UG.FTS.B,
28.98%,
1/20/25
..
–
–
991773470.UG.FTS.B,
28.98%,
1/20/25
..
59
61
991773912.UG.FTS.B,
28.98%,
1/20/25
..
118
122
991775579.UG.FTS.B,
28.98%,
1/20/25
..
104
108
991544892.UG.FTS.B,
29.45%,
1/20/25
..
503
527
991546469.UG.FTS.B,
29.45%,
1/20/25
..
189
198
991590390.UG.FTS.B,
29.45%,
1/20/25
..
83
87
991749201.UG.FTS.B,
29.45%,
1/20/25
..
420
432
991546140.UG.FTS.B,
29.46%,
1/20/25
..
282
293
991552999.UG.FTS.B,
29.46%,
1/20/25
..
49
50
991554451.UG.FTS.B,
29.46%,
1/20/25
..
422
442
991556833.UG.FTS.B,
29.46%,
1/20/25
..
227
233
991572725.UG.FTS.B,
29.46%,
1/20/25
..
73
76
991607542.UG.FTS.B,
29.46%,
1/20/25
..
533
557
991638849.UG.FTS.B,
29.46%,
1/20/25
..
171
178
991649368.UG.FTS.B,
29.46%,
1/20/25
..
34
35
991666110.UG.FTS.B,
29.46%,
1/20/25
..
63
64
991559050.UG.FTS.B,
29.47%,
1/20/25
..
463
471
991570910.UG.FTS.B,
29.47%,
1/20/25
..
71
73
991584353.UG.FTS.B,
29.47%,
1/20/25
..
167
174
991584440.UG.FTS.B,
29.47%,
1/20/25
..
90
92
991658968.UG.FTS.B,
29.47%,
1/20/25
..
106
111
991545016.UG.FTS.B,
29.48%,
1/20/25
..
402
423
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991546168.UG.FTS.B,
29.48%,
1/20/25
..
$
146
$
147
991555928.UG.FTS.B,
29.48%,
1/20/25
..
160
169
991622988.UG.FTS.B,
29.48%,
1/20/25
..
76
80
991674255.UG.FTS.B,
29.48%,
1/20/25
..
645
668
991544466.UG.FTS.B,
29.49%,
1/20/25
..
18
17
991544749.UG.FTS.B,
29.49%,
1/20/25
..
447
462
991544865.UG.FTS.B,
29.49%,
1/20/25
..
97
97
991544945.UG.FTS.B,
29.49%,
1/20/25
..
242
255
991546174.UG.FTS.B,
29.49%,
1/20/25
..
948
987
991546669.UG.FTS.B,
29.49%,
1/20/25
..
63
64
991547049.UG.FTS.B,
29.49%,
1/20/25
..
102
107
991547329.UG.FTS.B,
29.49%,
1/20/25
..
92
97
991547440.UG.FTS.B,
29.49%,
1/20/25
..
100
104
991547641.UG.FTS.B,
29.49%,
1/20/25
..
56
57
991547872.UG.FTS.B,
29.49%,
1/20/25
..
305
314
991547930.UG.FTS.B,
29.49%,
1/20/25
..
15
15
991549454.UG.FTS.B,
29.49%,
1/20/25
..
372
390
991552397.UG.FTS.B,
29.49%,
1/20/25
..
121
9
991554242.UG.FTS.B,
29.49%,
1/20/25
..
100
105
991555165.UG.FTS.B,
29.49%,
1/20/25
..
115
122
991556819.UG.FTS.B,
29.49%,
1/20/25
..
107
110
991557327.UG.FTS.B,
29.49%,
1/20/25
..
531
557
991557786.UG.FTS.B,
29.49%,
1/20/25
..
1,119
77
991559863.UG.FTS.B,
29.49%,
1/20/25
..
186
195
991561412.UG.FTS.B,
29.49%,
1/20/25
..
656
686
991562399.UG.FTS.B,
29.49%,
1/20/25
..
80
2
991565868.UG.FTS.B,
29.49%,
1/20/25
..
288
295
991570228.UG.FTS.B,
29.49%,
1/20/25
..
94
98
991570854.UG.FTS.B,
29.49%,
1/20/25
..
85
87
991571176.UG.FTS.B,
29.49%,
1/20/25
..
84
88
991572440.UG.FTS.B,
29.49%,
1/20/25
..
26
26
991576324.UG.FTS.B,
29.49%,
1/20/25
..
1,606
1,689
991577211.UG.FTS.B,
29.49%,
1/20/25
..
132
138
991577542.UG.FTS.B,
29.49%,
1/20/25
..
24
24
991578455.UG.FTS.B,
29.49%,
1/20/25
..
302
318
991578944.UG.FTS.B,
29.49%,
1/20/25
..
111
117
991581659.UG.FTS.B,
29.49%,
1/20/25
..
529
560
991582174.UG.FTS.B,
29.49%,
1/20/25
..
84
87
991582980.UG.FTS.B,
29.49%,
1/20/25
..
117
122
991583081.UG.FTS.B,
29.49%,
1/20/25
..
96
–
991583340.UG.FTS.B,
29.49%,
1/20/25
..
84
88
991583430.UG.FTS.B,
29.49%,
1/20/25
..
204
214
991584191.UG.FTS.B,
29.49%,
1/20/25
..
687
718
991584247.UG.FTS.B,
29.49%,
1/20/25
..
476
36
991584881.UG.FTS.B,
29.49%,
1/20/25
..
107
112
991586964.UG.FTS.B,
29.49%,
1/20/25
..
129
136
991587665.UG.FTS.B,
29.49%,
1/20/25
..
7
7
991587677.UG.FTS.B,
29.49%,
1/20/25
..
643
658
991588325.UG.FTS.B,
29.49%,
1/20/25
..
121
126
991591834.UG.FTS.B,
29.49%,
1/20/25
..
114
119
991592214.UG.FTS.B,
29.49%,
1/20/25
..
136
140
991593970.UG.FTS.B,
29.49%,
1/20/25
..
646
676
991596930.UG.FTS.B,
29.49%,
1/20/25
..
87
14
991598790.UG.FTS.B,
29.49%,
1/20/25
..
149
152
991600631.UG.FTS.B,
29.49%,
1/20/25
..
193
27
991601559.UG.FTS.B,
29.49%,
1/20/25
..
265
277
991605866.UG.FTS.B,
29.49%,
1/20/25
..
232
244
991607008.UG.FTS.B,
29.49%,
1/20/25
..
136
138
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991612971.UG.FTS.B,
29.49%,
1/20/25
..
$
102
$
15
991614076.UG.FTS.B,
29.49%,
1/20/25
..
674
705
991616553.UG.FTS.B,
29.49%,
1/20/25
..
74
78
991617166.UG.FTS.B,
29.49%,
1/20/25
..
314
49
991617328.UG.FTS.B,
29.49%,
1/20/25
..
1,412
1,480
991617793.UG.FTS.B,
29.49%,
1/20/25
..
100
104
991620217.UG.FTS.B,
29.49%,
1/20/25
..
54
56
991621352.UG.FTS.B,
29.49%,
1/20/25
..
184
191
991633281.UG.FTS.B,
29.49%,
1/20/25
..
93
97
991644250.UG.FTS.B,
29.49%,
1/20/25
..
35
6
991655092.UG.FTS.B,
29.49%,
1/20/25
..
418
433
991655877.UG.FTS.B,
29.49%,
1/20/25
..
68
72
991656434.UG.FTS.B,
29.49%,
1/20/25
..
245
39
991657357.UG.FTS.B,
29.49%,
1/20/25
..
999
1,058
991660718.UG.FTS.B,
29.49%,
1/20/25
..
223
234
991666604.UG.FTS.B,
29.49%,
1/20/25
..
525
550
991670103.UG.FTS.B,
29.49%,
1/20/25
..
525
549
991672222.UG.FTS.B,
29.49%,
1/20/25
..
236
246
991672277.UG.FTS.B,
29.49%,
1/20/25
..
6
6
991676079.UG.FTS.B,
29.49%,
1/20/25
..
214
226
991679088.UG.FTS.B,
29.49%,
1/20/25
..
273
281
991681019.UG.FTS.B,
29.49%,
1/20/25
..
776
811
991690090.UG.FTS.B,
29.49%,
1/20/25
..
141
146
991692717.UG.FTS.B,
29.49%,
1/20/25
..
65
68
991693352.UG.FTS.B,
29.49%,
1/20/25
..
14
15
991693696.UG.FTS.B,
29.49%,
1/20/25
..
166
170
991702622.UG.FTS.B,
29.49%,
1/20/25
..
77
81
991704174.UG.FTS.B,
29.49%,
1/20/25
..
64
66
991704331.UG.FTS.B,
29.49%,
1/20/25
..
63
67
991706369.UG.FTS.B,
29.49%,
1/20/25
..
69
72
991706803.UG.FTS.B,
29.49%,
1/20/25
..
16
16
991709703.UG.FTS.B,
29.49%,
1/20/25
..
77
80
991714458.UG.FTS.B,
29.49%,
1/20/25
..
186
193
991716502.UG.FTS.B,
29.49%,
1/20/25
..
605
628
991717405.UG.FTS.B,
29.49%,
1/20/25
..
115
117
991718693.UG.FTS.B,
29.49%,
1/20/25
..
121
9
991724082.UG.FTS.B,
29.49%,
1/20/25
..
92
97
991724684.UG.FTS.B,
29.49%,
1/20/25
..
45
46
991726589.UG.FTS.B,
29.49%,
1/20/25
..
63
65
991729024.UG.FTS.B,
29.49%,
1/20/25
..
135
–
991731378.UG.FTS.B,
29.49%,
1/20/25
..
62
65
991731411.UG.FTS.B,
29.49%,
1/20/25
..
398
408
991731675.UG.FTS.B,
29.49%,
1/20/25
..
56
58
991733097.UG.FTS.B,
29.49%,
1/20/25
..
63
66
991734979.UG.FTS.B,
29.49%,
1/20/25
..
74
76
991736419.UG.FTS.B,
29.49%,
1/20/25
..
64
66
991737012.UG.FTS.B,
29.49%,
1/20/25
..
125
130
991740302.UG.FTS.B,
29.49%,
1/20/25
..
86
89
991744616.UG.FTS.B,
29.49%,
1/20/25
..
23
23
991745338.UG.FTS.B,
29.49%,
1/20/25
..
78
81
991749746.UG.FTS.B,
29.49%,
1/20/25
..
522
539
991753458.UG.FTS.B,
29.49%,
1/20/25
..
122
127
991766938.UG.FTS.B,
29.49%,
1/20/25
..
139
144
991769449.UG.FTS.B,
29.49%,
1/20/25
..
–
–
991771215.UG.FTS.B,
29.49%,
1/20/25
..
111
115
991771844.UG.FTS.B,
29.49%,
1/20/25
..
72
75
991772908.UG.FTS.B,
29.49%,
1/20/25
..
416
432
991775501.UG.FTS.B,
29.49%,
1/20/25
..
132
135
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
81
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991783396.UG.FTS.B,
29.49%,
1/20/25
..
$
260
$
271
991791018.UG.FTS.B,
29.49%,
1/20/25
..
4
4
991683560.UG.FTS.B,
Zero
Cpn,
1/21/25
.
119
8
991737499.UG.FTS.B,
Zero
Cpn,
1/21/25
.
260
18
991774631.UG.FTS.B,
Zero
Cpn,
1/21/25
.
246
17
991784133.UG.FTS.B,
Zero
Cpn,
1/21/25
.
401
27
991713284.UG.FTS.B,
15.97%,
1/21/25
..
62
63
991636992.UG.FTS.B,
16.99%,
1/21/25
..
25
25
991655053.UG.FTS.B,
17.99%,
1/21/25
..
4,418
4,519
991793260.UG.FTS.B,
17.99%,
1/21/25
..
4,802
4,893
991764938.UG.FTS.B,
18.97%,
1/21/25
..
131
133
991749978.UG.FTS.B,
19.8%,
1/21/25
...
168
171
991716662.UG.FTS.B,
19.99%,
1/21/25
..
202
210
991722265.UG.FTS.B,
19.99%,
1/21/25
..
755
779
991757989.UG.FTS.B,
19.99%,
1/21/25
..
108
111
991700316.UG.FTS.B,
20.46%,
1/21/25
..
55
56
991762170.UG.FTS.B,
20.46%,
1/21/25
..
398
403
991748280.UG.FTS.B,
21.98%,
1/21/25
..
43
44
991673663.UG.FTS.B,
22.97%,
1/21/25
..
500
505
991741785.UG.FTS.B,
27.99%,
1/21/25
..
125
130
991642567.UG.FTS.B,
28.98%,
1/21/25
..
241
251
991662823.UG.FTS.B,
28.98%,
1/21/25
..
178
183
991665576.UG.FTS.B,
28.98%,
1/21/25
..
367
384
991670622.UG.FTS.B,
28.98%,
1/21/25
..
258
265
991675079.UG.FTS.B,
28.98%,
1/21/25
..
469
487
991678858.UG.FTS.B,
28.98%,
1/21/25
..
100
104
991680977.UG.FTS.B,
28.98%,
1/21/25
..
627
648
991681791.UG.FTS.B,
28.98%,
1/21/25
..
519
542
991682680.UG.FTS.B,
28.98%,
1/21/25
..
182
190
991694207.UG.FTS.B,
28.98%,
1/21/25
..
110
114
991694819.UG.FTS.B,
28.98%,
1/21/25
..
7
7
991695760.UG.FTS.B,
28.98%,
1/21/25
..
–
–
991698062.UG.FTS.B,
28.98%,
1/21/25
..
104
109
991701470.UG.FTS.B,
28.98%,
1/21/25
..
240
249
991705041.UG.FTS.B,
28.98%,
1/21/25
..
104
108
991705300.UG.FTS.B,
28.98%,
1/21/25
..
297
306
991706808.UG.FTS.B,
28.98%,
1/21/25
..
339
349
991708246.UG.FTS.B,
28.98%,
1/21/25
..
104
105
991725073.UG.FTS.B,
28.98%,
1/21/25
..
71
74
991733515.UG.FTS.B,
28.98%,
1/21/25
..
74
77
991740862.UG.FTS.B,
28.98%,
1/21/25
..
130
135
991761552.UG.FTS.B,
28.98%,
1/21/25
..
64
66
991761801.UG.FTS.B,
28.98%,
1/21/25
..
111
115
991767899.UG.FTS.B,
28.98%,
1/21/25
..
70
70
991665122.UG.FTS.B,
29.49%,
1/21/25
..
580
607
991666036.UG.FTS.B,
29.49%,
1/21/25
..
412
432
991669205.UG.FTS.B,
29.49%,
1/21/25
..
106
112
991687042.UG.FTS.B,
29.49%,
1/21/25
..
209
34
991688094.UG.FTS.B,
29.49%,
1/21/25
..
707
748
991689751.UG.FTS.B,
29.49%,
1/21/25
..
57
57
991690832.UG.FTS.B,
29.49%,
1/21/25
..
78
82
991691912.UG.FTS.B,
29.49%,
1/21/25
..
151
159
991694190.UG.FTS.B,
29.49%,
1/21/25
..
146
154
991709042.UG.FTS.B,
29.49%,
1/21/25
..
103
104
991712669.UG.FTS.B,
29.49%,
1/21/25
..
85
14
991714196.UG.FTS.B,
29.49%,
1/21/25
..
10
10
991716170.UG.FTS.B,
29.49%,
1/21/25
..
18
18
991717859.UG.FTS.B,
29.49%,
1/21/25
..
149
153
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991717914.UG.FTS.B,
29.49%,
1/21/25
..
$
282
$
294
991718350.UG.FTS.B,
29.49%,
1/21/25
..
157
164
991721576.UG.FTS.B,
29.49%,
1/21/25
..
31
32
991722825.UG.FTS.B,
29.49%,
1/21/25
..
413
58
991731739.UG.FTS.B,
29.49%,
1/21/25
..
192
193
991736128.UG.FTS.B,
29.49%,
1/21/25
..
26
27
991738527.UG.FTS.B,
29.49%,
1/21/25
..
64
–
991740528.UG.FTS.B,
29.49%,
1/21/25
..
1,272
1,310
991741010.UG.FTS.B,
29.49%,
1/21/25
..
97
101
991751558.UG.FTS.B,
29.49%,
1/21/25
..
2,104
296
991758421.UG.FTS.B,
29.49%,
1/21/25
..
96
100
991773655.UG.FTS.B,
29.49%,
1/21/25
..
156
162
991776264.UG.FTS.B,
29.49%,
1/21/25
..
97
90
991777636.UG.FTS.B,
29.49%,
1/21/25
..
77
77
991785876.UG.FTS.B,
29.49%,
1/21/25
..
212
223
991679933.UG.FTS.B,
Zero
Cpn,
1/22/25
.
–
–
991683610.UG.FTS.B,
Zero
Cpn,
1/22/25
.
95
7
991718275.UG.FTS.B,
14.98%,
1/22/25
..
943
965
991737948.UG.FTS.B,
14.98%,
1/22/25
..
290
292
991790203.UG.FTS.B,
14.98%,
1/22/25
..
88
90
991756518.UG.FTS.B,
15%,
1/22/25
.....
125
127
991754215.UG.FTS.B,
15.97%,
1/22/25
..
52
53
991775455.UG.FTS.B,
16.99%,
1/22/25
..
668
681
991698551.UG.FTS.B,
17.99%,
1/22/25
..
311
319
991737115.UG.FTS.B,
17.99%,
1/22/25
..
333
340
991634646.UG.FTS.B,
18.97%,
1/22/25
..
244
250
991718040.UG.FTS.B,
18.97%,
1/22/25
..
187
191
991685413.UG.FTS.B,
19.21%,
1/22/25
..
103
105
991691716.UG.FTS.B,
19.21%,
1/22/25
..
1,218
1,248
991719610.UG.FTS.B,
19.21%,
1/22/25
..
1,285
163
991789966.UG.FTS.B,
19.8%,
1/22/25
...
138
140
991643928.UG.FTS.B,
19.97%,
1/22/25
..
76
78
991683557.UG.FTS.B,
19.99%,
1/22/25
..
1,559
1,633
991788027.UG.FTS.B,
19.99%,
1/22/25
..
147
153
991662768.UG.FTS.B,
20.97%,
1/22/25
..
61
61
991695092.UG.FTS.B,
21.46%,
1/22/25
..
64
64
991754484.UG.FTS.B,
21.46%,
1/22/25
..
87
89
991637211.UG.FTS.B,
21.97%,
1/22/25
..
123
16
991678173.UG.FTS.B,
21.98%,
1/22/25
..
56
58
991801534.UG.FTS.B,
22.97%,
1/22/25
..
73
75
991672498.UG.FTS.B,
23.95%,
1/22/25
..
81
83
991652030.UG.FTS.B,
26.94%,
1/22/25
..
94
97
991632809.UG.FTS.B,
28.98%,
1/22/25
..
78
80
991654067.UG.FTS.B,
28.98%,
1/22/25
..
599
603
991655233.UG.FTS.B,
28.98%,
1/22/25
..
144
150
991657460.UG.FTS.B,
28.98%,
1/22/25
..
260
272
991678788.UG.FTS.B,
28.98%,
1/22/25
..
34
34
991694072.UG.FTS.B,
28.98%,
1/22/25
..
435
456
991722351.UG.FTS.B,
28.98%,
1/22/25
..
521
545
991644808.UG.FTS.B,
29.49%,
1/22/25
..
29
29
991646259.UG.FTS.B,
29.49%,
1/22/25
..
371
391
991672394.UG.FTS.B,
29.49%,
1/22/25
..
50
52
991682094.UG.FTS.B,
29.49%,
1/22/25
..
385
386
991688247.UG.FTS.B,
29.49%,
1/22/25
..
79
83
991713706.UG.FTS.B,
29.49%,
1/22/25
..
90
–
991718290.UG.FTS.B,
29.49%,
1/22/25
..
104
109
991736296.UG.FTS.B,
29.49%,
1/22/25
..
83
–
991746532.UG.FTS.B,
29.49%,
1/22/25
..
767
800
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991749787.UG.FTS.B,
29.49%,
1/22/25
..
$
170
$
175
991751645.UG.FTS.B,
29.49%,
1/22/25
..
59
61
991758788.UG.FTS.B,
29.49%,
1/22/25
..
170
177
991765455.UG.FTS.B,
29.49%,
1/22/25
..
179
187
991779420.UG.FTS.B,
29.49%,
1/22/25
..
146
148
991792431.UG.FTS.B,
29.49%,
1/22/25
..
465
473
991802876.UG.FTS.B,
29.49%,
1/22/25
..
260
272
991661550.UG.FTS.B,
Zero
Cpn,
1/23/25
.
60
4
991672381.UG.FTS.B,
Zero
Cpn,
1/23/25
.
401
28
991734227.UG.FTS.B,
Zero
Cpn,
1/23/25
.
193
13
991636779.UG.FTS.B,
14.98%,
1/23/25
..
74
76
991673294.UG.FTS.B,
14.98%,
1/23/25
..
2,759
2,773
991685301.UG.FTS.B,
14.98%,
1/23/25
..
663
679
991810697.UG.FTS.B,
14.98%,
1/23/25
..
702
716
991669666.UG.FTS.B,
15.97%,
1/23/25
..
156
3
991720270.UG.FTS.B,
16.99%,
1/23/25
..
407
411
991713762.UG.FTS.B,
18.21%,
1/23/25
..
59
59
991629464.UG.FTS.B,
18.97%,
1/23/25
..
31
32
991652563.UG.FTS.B,
18.97%,
1/23/25
..
896
918
991654901.UG.FTS.B,
18.97%,
1/23/25
..
4,881
5,001
991655628.UG.FTS.B,
19.21%,
1/23/25
..
212
216
991700455.UG.FTS.B,
19.21%,
1/23/25
..
210
210
991632705.UG.FTS.B,
19.99%,
1/23/25
..
477
483
991655150.UG.FTS.B,
19.99%,
1/23/25
..
279
285
991671970.UG.FTS.B,
19.99%,
1/23/25
..
175
183
991679224.UG.FTS.B,
19.99%,
1/23/25
..
78
79
991665786.UG.FTS.B,
20.46%,
1/23/25
..
137
138
991701667.UG.FTS.B,
20.46%,
1/23/25
..
89
90
991722899.UG.FTS.B,
20.46%,
1/23/25
..
147
151
991705904.UG.FTS.B,
20.98%,
1/23/25
..
41
41
991677495.UG.FTS.B,
21.46%,
1/23/25
..
82
84
991700214.UG.FTS.B,
21.46%,
1/23/25
..
160
164
991710233.UG.FTS.B,
21.46%,
1/23/25
..
320
328
991745840.UG.FTS.B,
21.46%,
1/23/25
..
124
125
991666562.UG.FTS.B,
21.97%,
1/23/25
..
41
41
991641726.UG.FTS.B,
21.98%,
1/23/25
..
545
552
991759715.UG.FTS.B,
21.98%,
1/23/25
..
298
304
991784495.UG.FTS.B,
25.98%,
1/23/25
..
104
15
991636074.UG.FTS.B,
28.98%,
1/23/25
..
355
366
991636843.UG.FTS.B,
28.98%,
1/23/25
..
204
208
991644625.UG.FTS.B,
28.98%,
1/23/25
..
117
16
991644719.UG.FTS.B,
28.98%,
1/23/25
..
485
504
991665490.UG.FTS.B,
28.98%,
1/23/25
..
262
275
991667605.UG.FTS.B,
28.98%,
1/23/25
..
352
369
991671248.UG.FTS.B,
28.98%,
1/23/25
..
128
2
991671791.UG.FTS.B,
28.98%,
1/23/25
..
143
145
991675411.UG.FTS.B,
28.98%,
1/23/25
..
448
463
991693174.UG.FTS.B,
28.98%,
1/23/25
..
129
135
991693333.UG.FTS.B,
28.98%,
1/23/25
..
151
156
991714226.UG.FTS.B,
28.98%,
1/23/25
..
33
33
991719766.UG.FTS.B,
28.98%,
1/23/25
..
256
267
991720618.UG.FTS.B,
28.98%,
1/23/25
..
75
6
991740876.UG.FTS.B,
28.98%,
1/23/25
..
2,141
2,204
991743895.UG.FTS.B,
28.98%,
1/23/25
..
160
166
991755793.UG.FTS.B,
28.98%,
1/23/25
..
108
90
991759756.UG.FTS.B,
28.98%,
1/23/25
..
44
45
991772947.UG.FTS.B,
28.98%,
1/23/25
..
516
536
991774877.UG.FTS.B,
28.98%,
1/23/25
..
99
103
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991782023.UG.FTS.B,
28.98%,
1/23/25
..
$
254
$
264
991782508.UG.FTS.B,
28.98%,
1/23/25
..
181
13
991635514.UG.FTS.B,
29.49%,
1/23/25
..
1,562
1,612
991640354.UG.FTS.B,
29.49%,
1/23/25
..
214
225
991643437.UG.FTS.B,
29.49%,
1/23/25
..
91
95
991648051.UG.FTS.B,
29.49%,
1/23/25
..
264
278
991650076.UG.FTS.B,
29.49%,
1/23/25
..
10
10
991651099.UG.FTS.B,
29.49%,
1/23/25
..
77
80
991655169.UG.FTS.B,
29.49%,
1/23/25
..
105
112
991659040.UG.FTS.B,
29.49%,
1/23/25
..
15
15
991662010.UG.FTS.B,
29.49%,
1/23/25
..
125
131
991662703.UG.FTS.B,
29.49%,
1/23/25
..
–
–
991664752.UG.FTS.B,
29.49%,
1/23/25
..
784
817
991664791.UG.FTS.B,
29.49%,
1/23/25
..
120
126
991669828.UG.FTS.B,
29.49%,
1/23/25
..
160
168
991670618.UG.FTS.B,
29.49%,
1/23/25
..
92
94
991678185.UG.FTS.B,
29.49%,
1/23/25
..
46
48
991682804.UG.FTS.B,
29.49%,
1/23/25
..
–
–
991684319.UG.FTS.B,
29.49%,
1/23/25
..
37
38
991685999.UG.FTS.B,
29.49%,
1/23/25
..
14
14
991688858.UG.FTS.B,
29.49%,
1/23/25
..
99
102
991694241.UG.FTS.B,
29.49%,
1/23/25
..
75
77
991705948.UG.FTS.B,
29.49%,
1/23/25
..
48
50
991710464.UG.FTS.B,
29.49%,
1/23/25
..
75
78
991711068.UG.FTS.B,
29.49%,
1/23/25
..
12
12
991739566.UG.FTS.B,
29.49%,
1/23/25
..
628
507
991740952.UG.FTS.B,
29.49%,
1/23/25
..
114
119
991758368.UG.FTS.B,
29.49%,
1/23/25
..
238
249
991762640.UG.FTS.B,
29.49%,
1/23/25
..
70
73
991763398.UG.FTS.B,
29.49%,
1/23/25
..
66
69
991764778.UG.FTS.B,
29.49%,
1/23/25
..
86
90
991764948.UG.FTS.B,
29.49%,
1/23/25
..
12
12
991781870.UG.FTS.B,
29.49%,
1/23/25
..
192
199
991792329.UG.FTS.B,
29.49%,
1/23/25
..
196
205
991795103.UG.FTS.B,
29.49%,
1/23/25
..
9
9
991798958.UG.FTS.B,
29.49%,
1/23/25
..
109
110
991816343.UG.FTS.B,
29.49%,
1/23/25
..
86
90
991704768.UG.FTS.B,
Zero
Cpn,
1/24/25
.
558
39
991799064.UG.FTS.B,
Zero
Cpn,
1/24/25
.
642
45
991823070.UG.FTS.B,
Zero
Cpn,
1/24/25
.
728
51
991755553.UG.FTS.B,
14.98%,
1/24/25
..
182
185
991648853.UG.FTS.B,
15%,
1/24/25
.....
2,308
2,331
991800979.UG.FTS.B,
15.97%,
1/24/25
..
3,314
3,378
991746840.UG.FTS.B,
17.99%,
1/24/25
..
751
763
991699954.UG.FTS.B,
18.97%,
1/24/25
..
67
69
991629457.UG.FTS.B,
19.99%,
1/24/25
..
297
307
991642292.UG.FTS.B,
19.99%,
1/24/25
..
101
105
991653352.UG.FTS.B,
19.99%,
1/24/25
..
79
83
991670504.UG.FTS.B,
19.99%,
1/24/25
..
42
42
991799920.UG.FTS.B,
19.99%,
1/24/25
..
1,032
1,071
991805172.UG.FTS.B,
19.99%,
1/24/25
..
52
54
991805637.UG.FTS.B,
19.99%,
1/24/25
..
127
132
991807354.UG.FTS.B,
19.99%,
1/24/25
..
33
34
991813869.UG.FTS.B,
19.99%,
1/24/25
..
29
29
991722377.UG.FTS.B,
20.46%,
1/24/25
..
1,476
1,514
991745755.UG.FTS.B,
20.46%,
1/24/25
..
232
237
991631506.UG.FTS.B,
21.46%,
1/24/25
..
169
173
991722423.UG.FTS.B,
21.98%,
1/24/25
..
2,238
2,301
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
83
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991706518.UG.FTS.B,
24.95%,
1/24/25
..
$
677
$
697
991780248.UG.FTS.B,
27.95%,
1/24/25
..
49
51
991575802.UG.FTS.B,
28.98%,
1/24/25
..
452
456
991577230.UG.FTS.B,
28.98%,
1/24/25
..
106
111
991577662.UG.FTS.B,
28.98%,
1/24/25
..
130
133
991578656.UG.FTS.B,
28.98%,
1/24/25
..
519
533
991617118.UG.FTS.B,
28.98%,
1/24/25
..
1
1
991628863.UG.FTS.B,
28.98%,
1/24/25
..
495
519
991639159.UG.FTS.B,
28.98%,
1/24/25
..
54
56
991640485.UG.FTS.B,
28.98%,
1/24/25
..
790
822
991645339.UG.FTS.B,
28.98%,
1/24/25
..
294
303
991659856.UG.FTS.B,
28.98%,
1/24/25
..
75
79
991665878.UG.FTS.B,
28.98%,
1/24/25
..
231
242
991667154.UG.FTS.B,
28.98%,
1/24/25
..
263
266
991670648.UG.FTS.B,
28.98%,
1/24/25
..
62
63
991673929.UG.FTS.B,
28.98%,
1/24/25
..
46
46
991685641.UG.FTS.B,
28.98%,
1/24/25
..
136
138
991689399.UG.FTS.B,
28.98%,
1/24/25
..
90
93
991692103.UG.FTS.B,
28.98%,
1/24/25
..
314
329
991713017.UG.FTS.B,
28.98%,
1/24/25
..
115
121
991722576.UG.FTS.B,
28.98%,
1/24/25
..
30
31
991724136.UG.FTS.B,
28.98%,
1/24/25
..
82
86
991725390.UG.FTS.B,
28.98%,
1/24/25
..
6
6
991725698.UG.FTS.B,
28.98%,
1/24/25
..
174
179
991733516.UG.FTS.B,
28.98%,
1/24/25
..
213
221
991754851.UG.FTS.B,
28.98%,
1/24/25
..
66
69
991761556.UG.FTS.B,
28.98%,
1/24/25
..
28
29
991780591.UG.FTS.B,
28.98%,
1/24/25
..
124
125
991781585.UG.FTS.B,
28.98%,
1/24/25
..
24
24
991781826.UG.FTS.B,
28.98%,
1/24/25
..
186
188
991783742.UG.FTS.B,
28.98%,
1/24/25
..
410
424
991785319.UG.FTS.B,
28.98%,
1/24/25
..
343
356
991789793.UG.FTS.B,
28.98%,
1/24/25
..
707
734
991789906.UG.FTS.B,
28.98%,
1/24/25
..
146
153
991791199.UG.FTS.B,
28.98%,
1/24/25
..
123
126
991791520.UG.FTS.B,
28.98%,
1/24/25
..
47
48
991580987.UG.FTS.B,
29.49%,
1/24/25
..
1
1
991589214.UG.FTS.B,
29.49%,
1/24/25
..
460
482
991598092.UG.FTS.B,
29.49%,
1/24/25
..
86
90
991598173.UG.FTS.B,
29.49%,
1/24/25
..
222
226
991635775.UG.FTS.B,
29.49%,
1/24/25
..
172
181
991637080.UG.FTS.B,
29.49%,
1/24/25
..
70
74
991645022.UG.FTS.B,
29.49%,
1/24/25
..
64
67
991648884.UG.FTS.B,
29.49%,
1/24/25
..
51
51
991650579.UG.FTS.B,
29.49%,
1/24/25
..
108
110
991658664.UG.FTS.B,
29.49%,
1/24/25
..
120
126
991660665.UG.FTS.B,
29.49%,
1/24/25
..
269
274
991662002.UG.FTS.B,
29.49%,
1/24/25
..
292
305
991671992.UG.FTS.B,
29.49%,
1/24/25
..
464
487
991678623.UG.FTS.B,
29.49%,
1/24/25
..
21
22
991679445.UG.FTS.B,
29.49%,
1/24/25
..
81
85
991684181.UG.FTS.B,
29.49%,
1/24/25
..
451
473
991685612.UG.FTS.B,
29.49%,
1/24/25
..
28
28
991692536.UG.FTS.B,
29.49%,
1/24/25
..
200
210
991697044.UG.FTS.B,
29.49%,
1/24/25
..
162
171
991700205.UG.FTS.B,
29.49%,
1/24/25
..
246
256
991714607.UG.FTS.B,
29.49%,
1/24/25
..
166
167
991714762.UG.FTS.B,
29.49%,
1/24/25
..
71
75
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991715066.UG.FTS.B,
29.49%,
1/24/25
..
$
75
$
76
991723894.UG.FTS.B,
29.49%,
1/24/25
..
173
182
991731570.UG.FTS.B,
29.49%,
1/24/25
..
35
36
991736234.UG.FTS.B,
29.49%,
1/24/25
..
209
211
991738330.UG.FTS.B,
29.49%,
1/24/25
..
62
63
991741387.UG.FTS.B,
29.49%,
1/24/25
..
124
129
991742865.UG.FTS.B,
29.49%,
1/24/25
..
373
389
991758058.UG.FTS.B,
29.49%,
1/24/25
..
509
529
991774946.UG.FTS.B,
29.49%,
1/24/25
..
527
549
991781667.UG.FTS.B,
29.49%,
1/24/25
..
54
56
991799040.UG.FTS.B,
29.49%,
1/24/25
..
118
123
991634734.UG.FTS.B,
Zero
Cpn,
1/25/25
.
87
6
991636211.UG.FTS.B,
Zero
Cpn,
1/25/25
.
765
52
991641968.UG.FTS.B,
Zero
Cpn,
1/25/25
.
123
9
991667459.UG.FTS.B,
Zero
Cpn,
1/25/25
.
–
–
991696083.UG.FTS.B,
Zero
Cpn,
1/25/25
.
352
25
991699956.UG.FTS.B,
Zero
Cpn,
1/25/25
.
94
6
991751144.UG.FTS.B,
Zero
Cpn,
1/25/25
.
213
15
991722200.UG.FTS.B,
14.98%,
1/25/25
..
189
193
991685938.UG.FTS.B,
15.97%,
1/25/25
..
76
78
991719427.UG.FTS.B,
15.97%,
1/25/25
..
178
183
991706579.UG.FTS.B,
16.99%,
1/25/25
..
33
33
991658411.UG.FTS.B,
18.97%,
1/25/25
..
340
345
991749481.UG.FTS.B,
18.97%,
1/25/25
..
379
386
991639650.UG.FTS.B,
19.21%,
1/25/25
..
1,795
3
991667139.UG.FTS.B,
19.21%,
1/25/25
..
239
245
991690379.UG.FTS.B,
19.21%,
1/25/25
..
182
185
991811906.UG.FTS.B,
19.46%,
1/25/25
..
83
85
991596563.UG.FTS.B,
19.99%,
1/25/25
..
155
161
991598409.UG.FTS.B,
19.99%,
1/25/25
..
171
173
991639253.UG.FTS.B,
19.99%,
1/25/25
..
19
19
991647962.UG.FTS.B,
19.99%,
1/25/25
..
174
181
991655538.UG.FTS.B,
19.99%,
1/25/25
..
181
185
991671306.UG.FTS.B,
19.99%,
1/25/25
..
75
78
991751611.UG.FTS.B,
19.99%,
1/25/25
..
105
109
991754276.UG.FTS.B,
19.99%,
1/25/25
..
203
211
991810011.UG.FTS.B,
19.99%,
1/25/25
..
390
405
991647666.UG.FTS.B,
20.46%,
1/25/25
..
3,817
3,896
991701511.UG.FTS.B,
20.46%,
1/25/25
..
768
784
991735068.UG.FTS.B,
20.97%,
1/25/25
..
263
267
991659246.UG.FTS.B,
21.46%,
1/25/25
..
74
75
991721907.UG.FTS.B,
21.98%,
1/25/25
..
597
614
991781998.UG.FTS.B,
21.98%,
1/25/25
..
44
44
991643275.UG.FTS.B,
22.97%,
1/25/25
..
1,274
1,308
991676736.UG.FTS.B,
27.99%,
1/25/25
..
33
34
991824491.UG.FTS.B,
27.99%,
1/25/25
..
1,166
90
991585948.UG.FTS.B,
28.98%,
1/25/25
..
621
643
991591061.UG.FTS.B,
28.98%,
1/25/25
..
12
13
991629093.UG.FTS.B,
28.98%,
1/25/25
..
65
66
991632477.UG.FTS.B,
28.98%,
1/25/25
..
73
76
991645264.UG.FTS.B,
28.98%,
1/25/25
..
84
88
991654157.UG.FTS.B,
28.98%,
1/25/25
..
39
40
991655910.UG.FTS.B,
28.98%,
1/25/25
..
87
89
991666507.UG.FTS.B,
28.98%,
1/25/25
..
123
129
991684431.UG.FTS.B,
28.98%,
1/25/25
..
211
215
991687378.UG.FTS.B,
28.98%,
1/25/25
..
118
122
991700250.UG.FTS.B,
28.98%,
1/25/25
..
212
221
991708850.UG.FTS.B,
28.98%,
1/25/25
..
162
165
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991711013.UG.FTS.B,
28.98%,
1/25/25
..
$
103
$
17
991711440.UG.FTS.B,
28.98%,
1/25/25
..
26
27
991717265.UG.FTS.B,
28.98%,
1/25/25
..
63
64
991762497.UG.FTS.B,
28.98%,
1/25/25
..
48
49
991764057.UG.FTS.B,
28.98%,
1/25/25
..
36
6
991767844.UG.FTS.B,
28.98%,
1/25/25
..
88
92
991782809.UG.FTS.B,
28.98%,
1/25/25
..
148
154
991789094.UG.FTS.B,
28.98%,
1/25/25
..
90
7
991790856.UG.FTS.B,
28.98%,
1/25/25
..
481
500
991801847.UG.FTS.B,
28.98%,
1/25/25
..
105
109
991813711.UG.FTS.B,
28.98%,
1/25/25
..
334
339
991816486.UG.FTS.B,
28.98%,
1/25/25
..
207
214
991832332.UG.FTS.B,
28.98%,
1/25/25
..
128
133
991583030.UG.FTS.B,
29.49%,
1/25/25
..
356
365
991584718.UG.FTS.B,
29.49%,
1/25/25
..
795
813
991586667.UG.FTS.B,
29.49%,
1/25/25
..
137
145
991588166.UG.FTS.B,
29.49%,
1/25/25
..
183
193
991588873.UG.FTS.B,
29.49%,
1/25/25
..
236
245
991591360.UG.FTS.B,
29.49%,
1/25/25
..
418
439
991592156.UG.FTS.B,
29.49%,
1/25/25
..
61
62
991595877.UG.FTS.B,
29.49%,
1/25/25
..
119
125
991597092.UG.FTS.B,
29.49%,
1/25/25
..
104
107
991598369.UG.FTS.B,
29.49%,
1/25/25
..
109
114
991611906.UG.FTS.B,
29.49%,
1/25/25
..
228
239
991617012.UG.FTS.B,
29.49%,
1/25/25
..
170
180
991625116.UG.FTS.B,
29.49%,
1/25/25
..
619
649
991638937.UG.FTS.B,
29.49%,
1/25/25
..
28
25
991639720.UG.FTS.B,
29.49%,
1/25/25
..
763
795
991640216.UG.FTS.B,
29.49%,
1/25/25
..
465
483
991640235.UG.FTS.B,
29.49%,
1/25/25
..
1,894
265
991642788.UG.FTS.B,
29.49%,
1/25/25
..
75
79
991643136.UG.FTS.B,
29.49%,
1/25/25
..
291
40
991645432.UG.FTS.B,
29.49%,
1/25/25
..
61
64
991663552.UG.FTS.B,
29.49%,
1/25/25
..
108
114
991670639.UG.FTS.B,
29.49%,
1/25/25
..
404
–
991670995.UG.FTS.B,
29.49%,
1/25/25
..
90
95
991686520.UG.FTS.B,
29.49%,
1/25/25
..
271
285
991703545.UG.FTS.B,
29.49%,
1/25/25
..
154
158
991705543.UG.FTS.B,
29.49%,
1/25/25
..
–
–
991714470.UG.FTS.B,
29.49%,
1/25/25
..
258
269
991716801.UG.FTS.B,
29.49%,
1/25/25
..
75
76
991727305.UG.FTS.B,
29.49%,
1/25/25
..
524
550
991727344.UG.FTS.B,
29.49%,
1/25/25
..
6
6
991734934.UG.FTS.B,
29.49%,
1/25/25
..
123
124
991742823.UG.FTS.B,
29.49%,
1/25/25
..
181
185
991750890.UG.FTS.B,
29.49%,
1/25/25
..
171
–
991756609.UG.FTS.B,
29.49%,
1/25/25
..
448
–
991758553.UG.FTS.B,
29.49%,
1/25/25
..
119
125
991762455.UG.FTS.B,
29.49%,
1/25/25
..
872
877
991773006.UG.FTS.B,
29.49%,
1/25/25
..
310
46
991781861.UG.FTS.B,
29.49%,
1/25/25
..
463
483
991783087.UG.FTS.B,
29.49%,
1/25/25
..
242
253
991789248.UG.FTS.B,
29.49%,
1/25/25
..
95
100
991789795.UG.FTS.B,
29.49%,
1/25/25
..
211
215
991803714.UG.FTS.B,
29.49%,
1/25/25
..
88
92
991812847.UG.FTS.B,
29.49%,
1/25/25
..
24
25
991819908.UG.FTS.B,
29.49%,
1/25/25
..
115
120
991670459.UG.FTS.B,
Zero
Cpn,
1/26/25
.
349
24
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991702170.UG.FTS.B,
Zero
Cpn,
1/26/25
.
$
157
$
11
991801746.UG.FTS.B,
Zero
Cpn,
1/26/25
.
210
14
991705574.UG.FTS.B,
14.98%,
1/26/25
..
366
375
991588990.UG.FTS.B,
16.99%,
1/26/25
..
1,113
1,138
991631242.UG.FTS.B,
17.99%,
1/26/25
..
392
3
991635395.UG.FTS.B,
17.99%,
1/26/25
..
477
3
991639126.UG.FTS.B,
18.97%,
1/26/25
..
89
91
991792817.UG.FTS.B,
18.97%,
1/26/25
..
580
592
991693301.UG.FTS.B,
19.8%,
1/26/25
...
119
122
991623713.UG.FTS.B,
19.99%,
1/26/25
..
105
106
991664112.UG.FTS.B,
19.99%,
1/26/25
..
18
18
991684874.UG.FTS.B,
19.99%,
1/26/25
..
52
53
991725855.UG.FTS.B,
19.99%,
1/26/25
..
111
112
991726295.UG.FTS.B,
19.99%,
1/26/25
..
158
159
991747371.UG.FTS.B,
19.99%,
1/26/25
..
164
22
991753153.UG.FTS.B,
19.99%,
1/26/25
..
14
14
991815429.UG.FTS.B,
19.99%,
1/26/25
..
514
535
991818136.UG.FTS.B,
19.99%,
1/26/25
..
108
8
991722451.UG.FTS.B,
20.46%,
1/26/25
..
467
480
991691649.UG.FTS.B,
20.97%,
1/26/25
..
370
373
991689234.UG.FTS.B,
21.46%,
1/26/25
..
116
119
991683377.UG.FTS.B,
21.97%,
1/26/25
..
126
129
991718023.UG.FTS.B,
22.97%,
1/26/25
..
116
116
991792398.UG.FTS.B,
22.97%,
1/26/25
..
95
97
991661911.UG.FTS.B,
23.95%,
1/26/25
..
433
438
991719060.UG.FTS.B,
23.95%,
1/26/25
..
1,906
1,958
991644445.UG.FTS.B,
27.99%,
1/26/25
..
70
74
991665705.UG.FTS.B,
27.99%,
1/26/25
..
85
90
991589081.UG.FTS.B,
28.98%,
1/26/25
..
191
201
991593236.UG.FTS.B,
28.98%,
1/26/25
..
178
183
991593526.UG.FTS.B,
28.98%,
1/26/25
..
162
169
991594391.UG.FTS.B,
28.98%,
1/26/25
..
136
143
991604950.UG.FTS.B,
28.98%,
1/26/25
..
81
84
991618996.UG.FTS.B,
28.98%,
1/26/25
..
–
–
991629035.UG.FTS.B,
28.98%,
1/26/25
..
131
137
991634636.UG.FTS.B,
28.98%,
1/26/25
..
275
288
991638977.UG.FTS.B,
28.98%,
1/26/25
..
174
181
991641894.UG.FTS.B,
28.98%,
1/26/25
..
95
98
991653899.UG.FTS.B,
28.98%,
1/26/25
..
70
74
991658925.UG.FTS.B,
28.98%,
1/26/25
..
70
72
991661348.UG.FTS.B,
28.98%,
1/26/25
..
668
695
991662390.UG.FTS.B,
28.98%,
1/26/25
..
118
123
991664416.UG.FTS.B,
28.98%,
1/26/25
..
205
212
991668688.UG.FTS.B,
28.98%,
1/26/25
..
389
55
991678461.UG.FTS.B,
28.98%,
1/26/25
..
102
106
991685049.UG.FTS.B,
28.98%,
1/26/25
..
48
49
991688671.UG.FTS.B,
28.98%,
1/26/25
..
151
157
991698131.UG.FTS.B,
28.98%,
1/26/25
..
238
241
991701435.UG.FTS.B,
28.98%,
1/26/25
..
183
192
991703821.UG.FTS.B,
28.98%,
1/26/25
..
130
136
991711212.UG.FTS.B,
28.98%,
1/26/25
..
47
48
991743995.UG.FTS.B,
28.98%,
1/26/25
..
142
148
991745922.UG.FTS.B,
28.98%,
1/26/25
..
69
6
991764630.UG.FTS.B,
28.98%,
1/26/25
..
26
26
991788301.UG.FTS.B,
28.98%,
1/26/25
..
178
185
991804080.UG.FTS.B,
28.98%,
1/26/25
..
68
71
991808600.UG.FTS.B,
28.98%,
1/26/25
..
118
119
991818761.UG.FTS.B,
28.98%,
1/26/25
..
87
91
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
85
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991820446.UG.FTS.B,
28.98%,
1/26/25
..
$
95
$
7
991826236.UG.FTS.B,
28.98%,
1/26/25
..
429
446
991831863.UG.FTS.B,
28.98%,
1/26/25
..
110
111
991834362.UG.FTS.B,
28.98%,
1/26/25
..
222
230
991712881.UG.FTS.B,
29.46%,
1/26/25
..
406
427
991589080.UG.FTS.B,
29.49%,
1/26/25
..
197
202
991589741.UG.FTS.B,
29.49%,
1/26/25
..
52
55
991589763.UG.FTS.B,
29.49%,
1/26/25
..
125
131
991591418.UG.FTS.B,
29.49%,
1/26/25
..
354
24
991598816.UG.FTS.B,
29.49%,
1/26/25
..
141
10
991606181.UG.FTS.B,
29.49%,
1/26/25
..
183
194
991612147.UG.FTS.B,
29.49%,
1/26/25
..
68
72
991616526.UG.FTS.B,
29.49%,
1/26/25
..
126
133
991616810.UG.FTS.B,
29.49%,
1/26/25
..
275
285
991622618.UG.FTS.B,
29.49%,
1/26/25
..
126
20
991637203.UG.FTS.B,
29.49%,
1/26/25
..
142
151
991637588.UG.FTS.B,
29.49%,
1/26/25
..
209
211
991637756.UG.FTS.B,
29.49%,
1/26/25
..
866
882
991638709.UG.FTS.B,
29.49%,
1/26/25
..
110
116
991640409.UG.FTS.B,
29.49%,
1/26/25
..
79
83
991640808.UG.FTS.B,
29.49%,
1/26/25
..
17
17
991641553.UG.FTS.B,
29.49%,
1/26/25
..
97
102
991656366.UG.FTS.B,
29.49%,
1/26/25
..
299
23
991657417.UG.FTS.B,
29.49%,
1/26/25
..
1,662
234
991662234.UG.FTS.B,
29.49%,
1/26/25
..
85
90
991663623.UG.FTS.B,
29.49%,
1/26/25
..
105
8
991664371.UG.FTS.B,
29.49%,
1/26/25
..
234
241
991668328.UG.FTS.B,
29.49%,
1/26/25
..
81
86
991673737.UG.FTS.B,
29.49%,
1/26/25
..
1,881
1,944
991674552.UG.FTS.B,
29.49%,
1/26/25
..
149
158
991680335.UG.FTS.B,
29.49%,
1/26/25
..
1,031
1,076
991682957.UG.FTS.B,
29.49%,
1/26/25
..
685
722
991686518.UG.FTS.B,
29.49%,
1/26/25
..
151
158
991686882.UG.FTS.B,
29.49%,
1/26/25
..
188
196
991688387.UG.FTS.B,
29.49%,
1/26/25
..
633
669
991695946.UG.FTS.B,
29.49%,
1/26/25
..
336
350
991698577.UG.FTS.B,
29.49%,
1/26/25
..
286
298
991710350.UG.FTS.B,
29.49%,
1/26/25
..
25
25
991714720.UG.FTS.B,
29.49%,
1/26/25
..
384
401
991727832.UG.FTS.B,
29.49%,
1/26/25
..
176
185
991731015.UG.FTS.B,
29.49%,
1/26/25
..
44
46
991756106.UG.FTS.B,
29.49%,
1/26/25
..
142
11
991772896.UG.FTS.B,
29.49%,
1/26/25
..
1,562
1,628
991779497.UG.FTS.B,
29.49%,
1/26/25
..
200
208
991782801.UG.FTS.B,
29.49%,
1/26/25
..
1,484
1,545
991793797.UG.FTS.B,
29.49%,
1/26/25
..
150
155
991806530.UG.FTS.B,
29.49%,
1/26/25
..
103
107
991820442.UG.FTS.B,
29.49%,
1/26/25
..
86
90
991826343.UG.FTS.B,
29.49%,
1/26/25
..
404
421
991827132.UG.FTS.B,
29.49%,
1/26/25
..
79
82
991829394.UG.FTS.B,
29.49%,
1/26/25
..
432
438
991835725.UG.FTS.B,
29.49%,
1/26/25
..
883
920
991835985.UG.FTS.B,
29.49%,
1/26/25
..
832
870
991611663.UG.FTS.B,
Zero
Cpn,
1/27/25
.
307
21
991614453.UG.FTS.B,
Zero
Cpn,
1/27/25
.
184
13
991630700.UG.FTS.B,
Zero
Cpn,
1/27/25
.
247
17
991774020.UG.FTS.B,
Zero
Cpn,
1/27/25
.
329
23
991832201.UG.FTS.B,
Zero
Cpn,
1/27/25
.
1,739
119
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991836282.UG.FTS.B,
Zero
Cpn,
1/27/25
.
$
3,344
$
229
991649409.UG.FTS.B,
14.98%,
1/27/25
..
–
–
991681455.UG.FTS.B,
15%,
1/27/25
.....
387
394
991594447.UG.FTS.B,
16.99%,
1/27/25
..
2,142
2,174
991653768.UG.FTS.B,
16.99%,
1/27/25
..
101
101
991594369.UG.FTS.B,
19.99%,
1/27/25
..
81
82
991603461.UG.FTS.B,
19.99%,
1/27/25
..
409
429
991604987.UG.FTS.B,
19.99%,
1/27/25
..
194
203
991606626.UG.FTS.B,
19.99%,
1/27/25
..
195
204
991610646.UG.FTS.B,
19.99%,
1/27/25
..
102
107
991613609.UG.FTS.B,
19.99%,
1/27/25
..
71
73
991639649.UG.FTS.B,
19.99%,
1/27/25
..
1,134
1,183
991665857.UG.FTS.B,
19.99%,
1/27/25
..
116
121
991679362.UG.FTS.B,
19.99%,
1/27/25
..
22
23
991742004.UG.FTS.B,
19.99%,
1/27/25
..
30
31
991706022.UG.FTS.B,
20.97%,
1/27/25
..
28
28
991593388.UG.FTS.B,
27.99%,
1/27/25
..
39
40
991598032.UG.FTS.B,
27.99%,
1/27/25
..
137
143
991629247.UG.FTS.B,
27.99%,
1/27/25
..
141
10
991784579.UG.FTS.B,
27.99%,
1/27/25
..
8
8
991593724.UG.FTS.B,
28.98%,
1/27/25
..
83
83
991594281.UG.FTS.B,
28.98%,
1/27/25
..
178
179
991594298.UG.FTS.B,
28.98%,
1/27/25
..
97
99
991594933.UG.FTS.B,
28.98%,
1/27/25
..
729
753
991596979.UG.FTS.B,
28.98%,
1/27/25
..
492
512
991598602.UG.FTS.B,
28.98%,
1/27/25
..
109
114
991598783.UG.FTS.B,
28.98%,
1/27/25
..
593
606
991600295.UG.FTS.B,
28.98%,
1/27/25
..
112
117
991601203.UG.FTS.B,
28.98%,
1/27/25
..
1,363
1,429
991602821.UG.FTS.B,
28.98%,
1/27/25
..
913
948
991602932.UG.FTS.B,
28.98%,
1/27/25
..
67
68
991603572.UG.FTS.B,
28.98%,
1/27/25
..
458
468
991604001.UG.FTS.B,
28.98%,
1/27/25
..
138
144
991605311.UG.FTS.B,
28.98%,
1/27/25
..
55
57
991605868.UG.FTS.B,
28.98%,
1/27/25
..
195
204
991608665.UG.FTS.B,
28.98%,
1/27/25
..
340
357
991609616.UG.FTS.B,
28.98%,
1/27/25
..
203
213
991613097.UG.FTS.B,
28.98%,
1/27/25
..
111
116
991615892.UG.FTS.B,
28.98%,
1/27/25
..
388
407
991617077.UG.FTS.B,
28.98%,
1/27/25
..
116
119
991620928.UG.FTS.B,
28.98%,
1/27/25
..
55
57
991621129.UG.FTS.B,
28.98%,
1/27/25
..
275
285
991623357.UG.FTS.B,
28.98%,
1/27/25
..
155
162
991623437.UG.FTS.B,
28.98%,
1/27/25
..
222
232
991631171.UG.FTS.B,
28.98%,
1/27/25
..
147
151
991631807.UG.FTS.B,
28.98%,
1/27/25
..
149
155
991632093.UG.FTS.B,
28.98%,
1/27/25
..
237
249
991632344.UG.FTS.B,
28.98%,
1/27/25
..
70
73
991633929.UG.FTS.B,
28.98%,
1/27/25
..
435
–
991634644.UG.FTS.B,
28.98%,
1/27/25
..
60
62
991635049.UG.FTS.B,
28.98%,
1/27/25
..
336
347
991635670.UG.FTS.B,
28.98%,
1/27/25
..
525
551
991636408.UG.FTS.B,
28.98%,
1/27/25
..
205
207
991643120.UG.FTS.B,
28.98%,
1/27/25
..
294
305
991645234.UG.FTS.B,
28.98%,
1/27/25
..
68
71
991645498.UG.FTS.B,
28.98%,
1/27/25
..
185
193
991651616.UG.FTS.B,
28.98%,
1/27/25
..
49
51
991653209.UG.FTS.B,
28.98%,
1/27/25
..
1,684
1,766
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991654533.UG.FTS.B,
28.98%,
1/27/25
..
$
95
$
97
991654856.UG.FTS.B,
28.98%,
1/27/25
..
339
355
991657182.UG.FTS.B,
28.98%,
1/27/25
..
1,054
1,105
991659335.UG.FTS.B,
28.98%,
1/27/25
..
233
244
991663420.UG.FTS.B,
28.98%,
1/27/25
..
1,198
1,256
991664621.UG.FTS.B,
28.98%,
1/27/25
..
116
121
991666634.UG.FTS.B,
28.98%,
1/27/25
..
91
96
991670133.UG.FTS.B,
28.98%,
1/27/25
..
128
133
991672421.UG.FTS.B,
28.98%,
1/27/25
..
210
215
991672656.UG.FTS.B,
28.98%,
1/27/25
..
77
80
991679811.UG.FTS.B,
28.98%,
1/27/25
..
57
60
991684799.UG.FTS.B,
28.98%,
1/27/25
..
102
107
991684873.UG.FTS.B,
28.98%,
1/27/25
..
60
62
991687681.UG.FTS.B,
28.98%,
1/27/25
..
52
53
991693260.UG.FTS.B,
28.98%,
1/27/25
..
22
22
991693305.UG.FTS.B,
28.98%,
1/27/25
..
579
596
991693530.UG.FTS.B,
28.98%,
1/27/25
..
100
105
991699112.UG.FTS.B,
28.98%,
1/27/25
..
76
80
991707195.UG.FTS.B,
28.98%,
1/27/25
..
17
17
991714759.UG.FTS.B,
28.98%,
1/27/25
..
88
93
991747891.UG.FTS.B,
28.98%,
1/27/25
..
86
90
991757043.UG.FTS.B,
28.98%,
1/27/25
..
147
150
991772279.UG.FTS.B,
28.98%,
1/27/25
..
558
582
991772315.UG.FTS.B,
28.98%,
1/27/25
..
561
585
991785235.UG.FTS.B,
28.98%,
1/27/25
..
249
259
991790040.UG.FTS.B,
28.98%,
1/27/25
..
32
33
991792500.UG.FTS.B,
28.98%,
1/27/25
..
130
135
991796141.UG.FTS.B,
28.98%,
1/27/25
..
30
30
991811211.UG.FTS.B,
28.98%,
1/27/25
..
150
156
991820015.UG.FTS.B,
28.98%,
1/27/25
..
256
267
991832387.UG.FTS.B,
28.98%,
1/27/25
..
517
538
991594952.UG.FTS.B,
29.49%,
1/27/25
..
731
767
991596228.UG.FTS.B,
29.49%,
1/27/25
..
132
139
991597441.UG.FTS.B,
29.49%,
1/27/25
..
314
331
991598580.UG.FTS.B,
29.49%,
1/27/25
..
86
91
991600353.UG.FTS.B,
29.49%,
1/27/25
..
153
12
991600440.UG.FTS.B,
29.49%,
1/27/25
..
311
327
991600674.UG.FTS.B,
29.49%,
1/27/25
..
63
67
991604744.UG.FTS.B,
29.49%,
1/27/25
..
36
6
991604802.UG.FTS.B,
29.49%,
1/27/25
..
26
27
991605251.UG.FTS.B,
29.49%,
1/27/25
..
4
4
991605906.UG.FTS.B,
29.49%,
1/27/25
..
204
–
991606487.UG.FTS.B,
29.49%,
1/27/25
..
201
208
991608429.UG.FTS.B,
29.49%,
1/27/25
..
136
12
991608526.UG.FTS.B,
29.49%,
1/27/25
..
209
220
991609655.UG.FTS.B,
29.49%,
1/27/25
..
153
160
991611049.UG.FTS.B,
29.49%,
1/27/25
..
159
167
991611862.UG.FTS.B,
29.49%,
1/27/25
..
105
110
991613792.UG.FTS.B,
29.49%,
1/27/25
..
–
–
991613806.UG.FTS.B,
29.49%,
1/27/25
..
897
912
991616915.UG.FTS.B,
29.49%,
1/27/25
..
121
125
991617119.UG.FTS.B,
29.49%,
1/27/25
..
609
42
991617295.UG.FTS.B,
29.49%,
1/27/25
..
708
–
991619030.UG.FTS.B,
29.49%,
1/27/25
..
101
103
991619817.UG.FTS.B,
29.49%,
1/27/25
..
399
419
991624512.UG.FTS.B,
29.49%,
1/27/25
..
80
83
991624910.UG.FTS.B,
29.49%,
1/27/25
..
60
63
991626868.UG.FTS.B,
29.49%,
1/27/25
..
52
53
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991627621.UG.FTS.B,
29.49%,
1/27/25
..
$
72
$
76
991628233.UG.FTS.B,
29.49%,
1/27/25
..
13
13
991628707.UG.FTS.B,
29.49%,
1/27/25
..
111
17
991630944.UG.FTS.B,
29.49%,
1/27/25
..
43
43
991633038.UG.FTS.B,
29.49%,
1/27/25
..
535
551
991635104.UG.FTS.B,
29.49%,
1/27/25
..
87
88
991636506.UG.FTS.B,
29.49%,
1/27/25
..
587
608
991637168.UG.FTS.B,
29.49%,
1/27/25
..
87
91
991643691.UG.FTS.B,
29.49%,
1/27/25
..
155
161
991643995.UG.FTS.B,
29.49%,
1/27/25
..
281
23
991647854.UG.FTS.B,
29.49%,
1/27/25
..
80
84
991648775.UG.FTS.B,
29.49%,
1/27/25
..
1,546
1,626
991649572.UG.FTS.B,
29.49%,
1/27/25
..
25
26
991654331.UG.FTS.B,
29.49%,
1/27/25
..
199
209
991668359.UG.FTS.B,
29.49%,
1/27/25
..
257
263
991669942.UG.FTS.B,
29.49%,
1/27/25
..
22
3
991672322.UG.FTS.B,
29.49%,
1/27/25
..
110
113
991683132.UG.FTS.B,
29.49%,
1/27/25
..
819
121
991689965.UG.FTS.B,
29.49%,
1/27/25
..
124
125
991691306.UG.FTS.B,
29.49%,
1/27/25
..
111
116
991695728.UG.FTS.B,
29.49%,
1/27/25
..
368
381
991696481.UG.FTS.B,
29.49%,
1/27/25
..
323
340
991698282.UG.FTS.B,
29.49%,
1/27/25
..
8
8
991698507.UG.FTS.B,
29.49%,
1/27/25
..
85
89
991701480.UG.FTS.B,
29.49%,
1/27/25
..
457
40
991702188.UG.FTS.B,
29.49%,
1/27/25
..
78
79
991703342.UG.FTS.B,
29.49%,
1/27/25
..
100
105
991705617.UG.FTS.B,
29.49%,
1/27/25
..
141
144
991709075.UG.FTS.B,
29.49%,
1/27/25
..
182
187
991710104.UG.FTS.B,
29.49%,
1/27/25
..
19
19
991717015.UG.FTS.B,
29.49%,
1/27/25
..
78
82
991717964.UG.FTS.B,
29.49%,
1/27/25
..
46
47
991718575.UG.FTS.B,
29.49%,
1/27/25
..
94
99
991720299.UG.FTS.B,
29.49%,
1/27/25
..
512
540
991728566.UG.FTS.B,
29.49%,
1/27/25
..
132
139
991729561.UG.FTS.B,
29.49%,
1/27/25
..
132
109
991732661.UG.FTS.B,
29.49%,
1/27/25
..
62
65
991737584.UG.FTS.B,
29.49%,
1/27/25
..
66
70
991742966.UG.FTS.B,
29.49%,
1/27/25
..
129
25
991752239.UG.FTS.B,
29.49%,
1/27/25
..
250
263
991754719.UG.FTS.B,
29.49%,
1/27/25
..
172
–
991759684.UG.FTS.B,
29.49%,
1/27/25
..
755
786
991781410.UG.FTS.B,
29.49%,
1/27/25
..
67
70
991783887.UG.FTS.B,
29.49%,
1/27/25
..
124
–
991784000.UG.FTS.B,
29.49%,
1/27/25
..
120
125
991792296.UG.FTS.B,
29.49%,
1/27/25
..
515
536
991793218.UG.FTS.B,
29.49%,
1/27/25
..
35
35
991793271.UG.FTS.B,
29.49%,
1/27/25
..
189
–
991793324.UG.FTS.B,
29.49%,
1/27/25
..
115
17
991800672.UG.FTS.B,
29.49%,
1/27/25
..
79
82
991803603.UG.FTS.B,
29.49%,
1/27/25
..
238
241
991812381.UG.FTS.B,
29.49%,
1/27/25
..
3
3
991814678.UG.FTS.B,
29.49%,
1/27/25
..
83
7
991828600.UG.FTS.B,
29.49%,
1/27/25
..
54
56
991832224.UG.FTS.B,
29.49%,
1/27/25
..
17
17
991606397.UG.FTS.B,
15.97%,
1/28/25
..
299
306
991800530.UG.FTS.B,
15.97%,
1/28/25
..
358
365
991617374.UG.FTS.B,
16.99%,
1/28/25
..
1,687
1,730
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
87
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991762445.UG.FTS.B,
16.99%,
1/28/25
..
$
8
$
8
991854471.UG.FTS.B,
16.99%,
1/28/25
..
4,042
4,126
991613370.UG.FTS.B,
17.99%,
1/28/25
..
134
136
991720766.UG.FTS.B,
17.99%,
1/28/25
..
483
496
991727531.UG.FTS.B,
17.99%,
1/28/25
..
90
92
991843689.UG.FTS.B,
17.99%,
1/28/25
..
3,363
3,432
991692051.UG.FTS.B,
20.46%,
1/28/25
..
259
264
991653436.UG.FTS.B,
20.97%,
1/28/25
..
229
16
991622578.UG.FTS.B,
22.97%,
1/28/25
..
116
118
991647560.UG.FTS.B,
14.98%,
1/29/25
..
830
852
991864236.UG.FTS.B,
14.98%,
1/29/25
..
4,690
4,787
991716164.UG.FTS.B,
15.97%,
1/29/25
..
250
256
991670873.UG.FTS.B,
16.99%,
1/29/25
..
25
25
991748418.UG.FTS.B,
16.99%,
1/29/25
..
1,347
1,372
991669723.UG.FTS.B,
17.99%,
1/29/25
..
131
134
991688664.UG.FTS.B,
17.99%,
1/29/25
..
278
285
991842042.UG.FTS.B,
17.99%,
1/29/25
..
955
970
991619308.UG.FTS.B,
18.97%,
1/29/25
..
1,016
1,043
991667776.UG.FTS.B,
18.97%,
1/29/25
..
870
893
991667796.UG.FTS.B,
19.21%,
1/29/25
..
183
185
991612495.UG.FTS.B,
19.8%,
1/29/25
...
200
28
991681003.UG.FTS.B,
14.98%,
1/30/25
..
407
412
991748200.UG.FTS.B,
14.98%,
1/30/25
..
91
93
991664214.UG.FTS.B,
17.99%,
1/30/25
..
6
6
991627597.UG.FTS.B,
18.97%,
1/30/25
..
133
135
991619303.UG.FTS.B,
21.46%,
1/30/25
..
95
98
991666898.UG.FTS.B,
21.98%,
1/30/25
..
14
15
991620571.UG.FTS.B,
22.97%,
1/30/25
..
235
237
991685973.UG.FTS.B,
14.98%,
1/31/25
..
743
755
991718191.UG.FTS.B,
14.98%,
1/31/25
..
250
257
991726744.UG.FTS.B,
14.98%,
1/31/25
..
164
166
991831913.UG.FTS.B,
14.98%,
1/31/25
..
26
26
991851449.UG.FTS.B,
14.98%,
1/31/25
..
7
7
991646701.UG.FTS.B,
15%,
1/31/25
.....
376
381
991659852.UG.FTS.B,
15%,
1/31/25
.....
463
471
991853717.UG.FTS.B,
15%,
1/31/25
.....
706
721
991638888.UG.FTS.B,
15.97%,
1/31/25
..
69
70
991649795.UG.FTS.B,
15.97%,
1/31/25
..
–
–
991746713.UG.FTS.B,
15.97%,
1/31/25
..
92
93
991809317.UG.FTS.B,
15.97%,
1/31/25
..
228
229
991815664.UG.FTS.B,
15.97%,
1/31/25
..
323
330
991638718.UG.FTS.B,
16.99%,
1/31/25
..
168
170
991642283.UG.FTS.B,
16.99%,
1/31/25
..
110
113
991662857.UG.FTS.B,
16.99%,
1/31/25
..
113
113
991704534.UG.FTS.B,
16.99%,
1/31/25
..
584
599
991753549.UG.FTS.B,
16.99%,
1/31/25
..
172
14
991757606.UG.FTS.B,
16.99%,
1/31/25
..
246
253
991836242.UG.FTS.B,
16.99%,
1/31/25
..
2,389
2,439
991675482.UG.FTS.B,
17.97%,
1/31/25
..
288
294
991642242.UG.FTS.B,
17.99%,
1/31/25
..
98
101
991682270.UG.FTS.B,
17.99%,
1/31/25
..
141
143
991698361.UG.FTS.B,
17.99%,
1/31/25
..
77
79
991709244.UG.FTS.B,
17.99%,
1/31/25
..
73
75
991712841.UG.FTS.B,
17.99%,
1/31/25
..
298
304
991713828.UG.FTS.B,
17.99%,
1/31/25
..
3,025
3,104
991748611.UG.FTS.B,
17.99%,
1/31/25
..
238
244
991754758.UG.FTS.B,
17.99%,
1/31/25
..
673
691
991772768.UG.FTS.B,
17.99%,
1/31/25
..
70
72
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991646069.UG.FTS.B,
18.97%,
1/31/25
..
$
142
$
146
991702370.UG.FTS.B,
18.97%,
1/31/25
..
55
56
991639577.UG.FTS.B,
19.21%,
1/31/25
..
149
153
991684344.UG.FTS.B,
19.21%,
1/31/25
..
207
213
991663410.UG.FTS.B,
19.8%,
1/31/25
...
1,921
1,946
991708296.UG.FTS.B,
19.8%,
1/31/25
...
198
204
991648537.UG.FTS.B,
20.97%,
1/31/25
..
117
121
991653526.UG.FTS.B,
20.97%,
1/31/25
..
203
208
991661887.UG.FTS.B,
20.97%,
1/31/25
..
132
136
991630777.UG.FTS.B,
21.46%,
1/31/25
..
269
271
991656715.UG.FTS.B,
21.46%,
1/31/25
..
1,585
1,637
991693835.UG.FTS.B,
21.46%,
1/31/25
..
475
490
991672382.UG.FTS.B,
21.97%,
1/31/25
..
3,636
3,730
991883831.UG.FTS.B,
14%,
2/01/25
.....
11
11
991666265.UG.FTS.B,
16.99%,
2/01/25
..
368
373
991668427.UG.FTS.B,
17.97%,
2/01/25
..
28
28
991657231.UG.FTS.B,
Zero
Cpn,
2/02/25
.
3,712
263
991693291.UG.FTS.B,
14%,
2/02/25
.....
118
120
991725692.UG.FTS.B,
14%,
2/02/25
.....
147
149
991771266.UG.FTS.B,
14%,
2/02/25
.....
108
110
991834440.UG.FTS.B,
14%,
2/02/25
.....
165
168
991687949.UG.FTS.B,
14.98%,
2/02/25
..
177
181
991658184.UG.FTS.B,
15%,
2/02/25
.....
2,372
2,414
991760625.UG.FTS.B,
15.97%,
2/02/25
..
196
200
991848002.UG.FTS.B,
15.97%,
2/02/25
..
35
35
991849575.UG.FTS.B,
15.99%,
2/02/25
..
27
27
991650925.UG.FTS.B,
16.99%,
2/02/25
..
192
193
991676165.UG.FTS.B,
16.99%,
2/02/25
..
180
184
991679270.UG.FTS.B,
16.99%,
2/02/25
..
210
214
991689542.UG.FTS.B,
16.99%,
2/02/25
..
374
381
991781369.UG.FTS.B,
16.99%,
2/02/25
..
491
501
991868233.UG.FTS.B,
16.99%,
2/02/25
..
1,956
1,984
991689544.UG.FTS.B,
17.97%,
2/02/25
..
72
73
991683457.UG.FTS.B,
17.99%,
2/02/25
..
–
–
991731323.UG.FTS.B,
17.99%,
2/02/25
..
203
207
991880297.UG.FTS.B,
17.99%,
2/02/25
..
230
230
991878726.UG.FTS.B,
14.98%,
2/03/25
..
314
318
991886549.UG.FTS.B,
16.99%,
2/03/25
..
30
31
991907914.UG.FTS.B,
17.99%,
2/03/25
..
101
103
991689885.UG.FTS.B,
19.99%,
2/03/25
..
388
394
991714434.UG.FTS.B,
19.99%,
2/03/25
..
253
262
991914992.UG.FTS.B,
21.97%,
2/03/25
..
15
15
991684537.UG.FTS.B,
27.99%,
2/03/25
..
113
118
991744807.UG.FTS.B,
27.99%,
2/03/25
..
136
142
991680701.UG.FTS.B,
28.98%,
2/03/25
..
179
179
991688155.UG.FTS.B,
28.98%,
2/03/25
..
108
108
991699673.UG.FTS.B,
28.98%,
2/03/25
..
140
145
991700745.UG.FTS.B,
28.98%,
2/03/25
..
2,796
2,881
991713626.UG.FTS.B,
28.98%,
2/03/25
..
138
144
991716236.UG.FTS.B,
28.98%,
2/03/25
..
85
88
991720594.UG.FTS.B,
28.98%,
2/03/25
..
336
84
991743871.UG.FTS.B,
28.98%,
2/03/25
..
185
23
991777700.UG.FTS.B,
28.98%,
2/03/25
..
425
433
991827774.UG.FTS.B,
28.98%,
2/03/25
..
21
21
991882827.UG.FTS.B,
28.98%,
2/03/25
..
130
134
991910619.UG.FTS.B,
28.98%,
2/03/25
..
312
322
991911258.UG.FTS.B,
28.98%,
2/03/25
..
67
19
991911288.UG.FTS.B,
28.98%,
2/03/25
..
3
3
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991916599.UG.FTS.B,
28.98%,
2/03/25
..
$
66
$
69
991678637.UG.FTS.B,
29.49%,
2/03/25
..
123
129
991689327.UG.FTS.B,
29.49%,
2/03/25
..
434
454
991722488.UG.FTS.B,
29.49%,
2/03/25
..
132
137
991742223.UG.FTS.B,
29.49%,
2/03/25
..
–
–
991747483.UG.FTS.B,
29.49%,
2/03/25
..
232
233
991756506.UG.FTS.B,
29.49%,
2/03/25
..
102
108
991770245.UG.FTS.B,
29.49%,
2/03/25
..
302
318
991883418.UG.FTS.B,
29.49%,
2/03/25
..
99
103
991909621.UG.FTS.B,
29.49%,
2/03/25
..
–
–
991912447.UG.FTS.B,
29.49%,
2/03/25
..
102
102
991917239.UG.FTS.B,
29.49%,
2/03/25
..
174
180
991700247.UG.FTS.B,
Zero
Cpn,
2/04/25
.
183
13
991744504.UG.FTS.B,
Zero
Cpn,
2/04/25
.
107
8
991871765.UG.FTS.B,
14.98%,
2/04/25
..
175
178
991692937.UG.FTS.B,
15%,
2/04/25
.....
43
7
991700340.UG.FTS.B,
16.99%,
2/04/25
..
121
122
991741062.UG.FTS.B,
16.99%,
2/04/25
..
190
192
991803848.UG.FTS.B,
16.99%,
2/04/25
..
375
90
991809198.UG.FTS.B,
16.99%,
2/04/25
..
327
334
991834171.UG.FTS.B,
16.99%,
2/04/25
..
5,351
1,287
991761530.UG.FTS.B,
17.99%,
2/04/25
..
223
224
991752793.UG.FTS.B,
18.97%,
2/04/25
..
208
209
991729245.UG.FTS.B,
19.8%,
2/04/25
...
82
84
991685630.UG.FTS.B,
19.99%,
2/04/25
..
231
236
991889300.UG.FTS.B,
19.99%,
2/04/25
..
109
–
991697789.UG.FTS.B,
20.97%,
2/04/25
..
544
131
991918054.UG.FTS.B,
22.97%,
2/04/25
..
1,053
1,068
991724012.UG.FTS.B,
27.99%,
2/04/25
..
135
140
991689281.UG.FTS.B,
28.98%,
2/04/25
..
–
–
991696574.UG.FTS.B,
28.98%,
2/04/25
..
95
99
991697057.UG.FTS.B,
28.98%,
2/04/25
..
98
47
991700907.UG.FTS.B,
28.98%,
2/04/25
..
133
138
991714934.UG.FTS.B,
28.98%,
2/04/25
..
142
142
991736129.UG.FTS.B,
28.98%,
2/04/25
..
61
18
991765630.UG.FTS.B,
28.98%,
2/04/25
..
22
23
991786787.UG.FTS.B,
28.98%,
2/04/25
..
110
114
991824710.UG.FTS.B,
28.98%,
2/04/25
..
480
496
991836806.UG.FTS.B,
28.98%,
2/04/25
..
86
89
991900572.UG.FTS.B,
28.98%,
2/04/25
..
70
72
991911859.UG.FTS.B,
28.98%,
2/04/25
..
70
72
991926669.UG.FTS.B,
28.98%,
2/04/25
..
30
30
991686783.UG.FTS.B,
29.49%,
2/04/25
..
56
58
991687371.UG.FTS.B,
29.49%,
2/04/25
..
88
89
991693725.UG.FTS.B,
29.49%,
2/04/25
..
239
249
991694653.UG.FTS.B,
29.49%,
2/04/25
..
364
380
991707526.UG.FTS.B,
29.49%,
2/04/25
..
73
72
991713833.UG.FTS.B,
29.49%,
2/04/25
..
458
474
991717208.UG.FTS.B,
29.49%,
2/04/25
..
166
169
991737055.UG.FTS.B,
29.49%,
2/04/25
..
476
492
991758842.UG.FTS.B,
29.49%,
2/04/25
..
308
319
991763796.UG.FTS.B,
29.49%,
2/04/25
..
71
71
991774935.UG.FTS.B,
29.49%,
2/04/25
..
760
794
991786330.UG.FTS.B,
29.49%,
2/04/25
..
594
608
991807327.UG.FTS.B,
29.49%,
2/04/25
..
128
132
991867247.UG.FTS.B,
29.49%,
2/04/25
..
60
11
991878368.UG.FTS.B,
29.49%,
2/04/25
..
105
107
991879607.UG.FTS.B,
29.49%,
2/04/25
..
144
149
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991917180.UG.FTS.B,
29.49%,
2/04/25
..
$
132
$
136
991681542.UG.FTS.B,
Zero
Cpn,
2/05/25
.
71
5
991702149.UG.FTS.B,
Zero
Cpn,
2/05/25
.
244
17
991709454.UG.FTS.B,
Zero
Cpn,
2/05/25
.
160
11
991713293.UG.FTS.B,
Zero
Cpn,
2/05/25
.
111
8
991755942.UG.FTS.B,
Zero
Cpn,
2/05/25
.
739
51
991769018.UG.FTS.B,
Zero
Cpn,
2/05/25
.
260
18
991857451.UG.FTS.B,
Zero
Cpn,
2/05/25
.
23
2
991884966.UG.FTS.B,
Zero
Cpn,
2/05/25
.
228
16
991895791.UG.FTS.B,
Zero
Cpn,
2/05/25
.
38
3
991914304.UG.FTS.B,
Zero
Cpn,
2/05/25
.
111
8
991861184.UG.FTS.B,
19.21%,
2/05/25
..
123
126
991682958.UG.FTS.B,
19.99%,
2/05/25
..
333
333
991693967.UG.FTS.B,
19.99%,
2/05/25
..
155
41
991710161.UG.FTS.B,
19.99%,
2/05/25
..
31
32
991719379.UG.FTS.B,
19.99%,
2/05/25
..
149
153
991725525.UG.FTS.B,
19.99%,
2/05/25
..
115
116
991726938.UG.FTS.B,
19.99%,
2/05/25
..
86
6
991735635.UG.FTS.B,
19.99%,
2/05/25
..
74
77
991739604.UG.FTS.B,
19.99%,
2/05/25
..
854
889
991831360.UG.FTS.B,
19.99%,
2/05/25
..
498
519
991832671.UG.FTS.B,
19.99%,
2/05/25
..
128
130
991915152.UG.FTS.B,
19.99%,
2/05/25
..
163
164
991713079.UG.FTS.B,
20.46%,
2/05/25
..
328
335
991841527.UG.FTS.B,
20.46%,
2/05/25
..
327
328
991707903.UG.FTS.B,
20.97%,
2/05/25
..
82
83
991715134.UG.FTS.B,
20.97%,
2/05/25
..
169
172
991715412.UG.FTS.B,
20.97%,
2/05/25
..
175
179
991832676.UG.FTS.B,
20.97%,
2/05/25
..
6,532
6,673
991835755.UG.FTS.B,
20.97%,
2/05/25
..
352
24
991834692.UG.FTS.B,
21.46%,
2/05/25
..
639
652
991840414.UG.FTS.B,
21.46%,
2/05/25
..
256
257
991869250.UG.FTS.B,
21.46%,
2/05/25
..
1,013
1,003
991910043.UG.FTS.B,
21.46%,
2/05/25
..
918
909
991911356.UG.FTS.B,
21.98%,
2/05/25
..
117
118
991708641.UG.FTS.B,
22.97%,
2/05/25
..
36
35
991743501.UG.FTS.B,
22.97%,
2/05/25
..
344
351
991783388.UG.FTS.B,
22.97%,
2/05/25
..
282
69
991703789.UG.FTS.B,
24.95%,
2/05/25
..
124
126
991737282.UG.FTS.B,
27.95%,
2/05/25
..
83
87
991696029.UG.FTS.B,
27.99%,
2/05/25
..
209
218
991705622.UG.FTS.B,
27.99%,
2/05/25
..
54
54
991717022.UG.FTS.B,
27.99%,
2/05/25
..
150
157
991747914.UG.FTS.B,
27.99%,
2/05/25
..
2,032
131
991675164.UG.FTS.B,
28.98%,
2/05/25
..
1,107
144
991677817.UG.FTS.B,
28.98%,
2/05/25
..
668
676
991680083.UG.FTS.B,
28.98%,
2/05/25
..
16
16
991700269.UG.FTS.B,
28.98%,
2/05/25
..
109
113
991702789.UG.FTS.B,
28.98%,
2/05/25
..
343
348
991705698.UG.FTS.B,
28.98%,
2/05/25
..
41
42
991705736.UG.FTS.B,
28.98%,
2/05/25
..
117
9
991706202.UG.FTS.B,
28.98%,
2/05/25
..
247
258
991706300.UG.FTS.B,
28.98%,
2/05/25
..
178
182
991706343.UG.FTS.B,
28.98%,
2/05/25
..
49
50
991708055.UG.FTS.B,
28.98%,
2/05/25
..
179
–
991709411.UG.FTS.B,
28.98%,
2/05/25
..
53
53
991712458.UG.FTS.B,
28.98%,
2/05/25
..
15
15
991715735.UG.FTS.B,
28.98%,
2/05/25
..
64
5
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
89
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991716179.UG.FTS.B,
28.98%,
2/05/25
..
$
141
$
147
991718944.UG.FTS.B,
28.98%,
2/05/25
..
550
573
991724730.UG.FTS.B,
28.98%,
2/05/25
..
530
552
991726806.UG.FTS.B,
28.98%,
2/05/25
..
112
–
991728132.UG.FTS.B,
28.98%,
2/05/25
..
667
–
991729522.UG.FTS.B,
28.98%,
2/05/25
..
14
15
991730611.UG.FTS.B,
28.98%,
2/05/25
..
551
574
991732989.UG.FTS.B,
28.98%,
2/05/25
..
214
218
991734853.UG.FTS.B,
28.98%,
2/05/25
..
80
84
991735560.UG.FTS.B,
28.98%,
2/05/25
..
51
53
991737214.UG.FTS.B,
28.98%,
2/05/25
..
126
131
991739073.UG.FTS.B,
28.98%,
2/05/25
..
139
141
991739154.UG.FTS.B,
28.98%,
2/05/25
..
1,836
1,914
991739980.UG.FTS.B,
28.98%,
2/05/25
..
222
231
991742979.UG.FTS.B,
28.98%,
2/05/25
..
63
65
991743526.UG.FTS.B,
28.98%,
2/05/25
..
51
51
991744726.UG.FTS.B,
28.98%,
2/05/25
..
54
54
991745601.UG.FTS.B,
28.98%,
2/05/25
..
42
42
991746873.UG.FTS.B,
28.98%,
2/05/25
..
125
129
991747299.UG.FTS.B,
28.98%,
2/05/25
..
53
54
991755981.UG.FTS.B,
28.98%,
2/05/25
..
178
186
991759687.UG.FTS.B,
28.98%,
2/05/25
..
191
199
991761917.UG.FTS.B,
28.98%,
2/05/25
..
125
130
991762144.UG.FTS.B,
28.98%,
2/05/25
..
106
109
991762262.UG.FTS.B,
28.98%,
2/05/25
..
97
99
991764086.UG.FTS.B,
28.98%,
2/05/25
..
40
40
991772451.UG.FTS.B,
28.98%,
2/05/25
..
665
693
991776821.UG.FTS.B,
28.98%,
2/05/25
..
72
74
991776933.UG.FTS.B,
28.98%,
2/05/25
..
208
215
991783771.UG.FTS.B,
28.98%,
2/05/25
..
970
–
991789109.UG.FTS.B,
28.98%,
2/05/25
..
195
199
991790367.UG.FTS.B,
28.98%,
2/05/25
..
887
916
991805668.UG.FTS.B,
28.98%,
2/05/25
..
68
70
991807068.UG.FTS.B,
28.98%,
2/05/25
..
272
21
991808450.UG.FTS.B,
28.98%,
2/05/25
..
94
98
991811477.UG.FTS.B,
28.98%,
2/05/25
..
553
577
991813874.UG.FTS.B,
28.98%,
2/05/25
..
93
97
991819745.UG.FTS.B,
28.98%,
2/05/25
..
28
28
991819751.UG.FTS.B,
28.98%,
2/05/25
..
397
408
991820191.UG.FTS.B,
28.98%,
2/05/25
..
50
52
991829108.UG.FTS.B,
28.98%,
2/05/25
..
480
500
991833444.UG.FTS.B,
28.98%,
2/05/25
..
193
200
991836188.UG.FTS.B,
28.98%,
2/05/25
..
114
118
991842297.UG.FTS.B,
28.98%,
2/05/25
..
71
73
991842364.UG.FTS.B,
28.98%,
2/05/25
..
768
790
991853603.UG.FTS.B,
28.98%,
2/05/25
..
263
61
991855938.UG.FTS.B,
28.98%,
2/05/25
..
193
200
991857568.UG.FTS.B,
28.98%,
2/05/25
..
298
310
991863657.UG.FTS.B,
28.98%,
2/05/25
..
82
86
991868870.UG.FTS.B,
28.98%,
2/05/25
..
4
4
991884917.UG.FTS.B,
28.98%,
2/05/25
..
310
320
991886335.UG.FTS.B,
28.98%,
2/05/25
..
218
225
991894894.UG.FTS.B,
28.98%,
2/05/25
..
988
1,021
991897007.UG.FTS.B,
28.98%,
2/05/25
..
92
7
991901365.UG.FTS.B,
28.98%,
2/05/25
..
528
544
991911562.UG.FTS.B,
28.98%,
2/05/25
..
223
73
991916809.UG.FTS.B,
28.98%,
2/05/25
..
28
28
991922743.UG.FTS.B,
28.98%,
2/05/25
..
51
53
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991937493.UG.FTS.B,
28.98%,
2/05/25
..
$
200
$
201
991938119.UG.FTS.B,
28.98%,
2/05/25
..
982
1,014
991680433.UG.FTS.B,
29.49%,
2/05/25
..
79
80
991693084.UG.FTS.B,
29.49%,
2/05/25
..
72
75
991694154.UG.FTS.B,
29.49%,
2/05/25
..
657
656
991695684.UG.FTS.B,
29.49%,
2/05/25
..
172
175
991697402.UG.FTS.B,
29.49%,
2/05/25
..
114
118
991700153.UG.FTS.B,
29.49%,
2/05/25
..
198
202
991700758.UG.FTS.B,
29.49%,
2/05/25
..
290
305
991703611.UG.FTS.B,
29.49%,
2/05/25
..
66
68
991704269.UG.FTS.B,
29.49%,
2/05/25
..
76
–
991705084.UG.FTS.B,
29.49%,
2/05/25
..
38
39
991709219.UG.FTS.B,
29.49%,
2/05/25
..
46
47
991710338.UG.FTS.B,
29.49%,
2/05/25
..
18
18
991710782.UG.FTS.B,
29.49%,
2/05/25
..
682
707
991711446.UG.FTS.B,
29.49%,
2/05/25
..
8
8
991713639.UG.FTS.B,
29.49%,
2/05/25
..
154
158
991714180.UG.FTS.B,
29.49%,
2/05/25
..
231
15
991715444.UG.FTS.B,
29.49%,
2/05/25
..
666
686
991715800.UG.FTS.B,
29.49%,
2/05/25
..
5
5
991718850.UG.FTS.B,
29.49%,
2/05/25
..
346
353
991719235.UG.FTS.B,
29.49%,
2/05/25
..
141
144
991722812.UG.FTS.B,
29.49%,
2/05/25
..
162
169
991723913.UG.FTS.B,
29.49%,
2/05/25
..
29
29
991725800.UG.FTS.B,
29.49%,
2/05/25
..
125
127
991727032.UG.FTS.B,
29.49%,
2/05/25
..
108
113
991728298.UG.FTS.B,
29.49%,
2/05/25
..
67
70
991728509.UG.FTS.B,
29.49%,
2/05/25
..
42
43
991732282.UG.FTS.B,
29.49%,
2/05/25
..
95
99
991732719.UG.FTS.B,
29.49%,
2/05/25
..
144
148
991733824.UG.FTS.B,
29.49%,
2/05/25
..
1,304
–
991741465.UG.FTS.B,
29.49%,
2/05/25
..
77
77
991745068.UG.FTS.B,
29.49%,
2/05/25
..
4,500
280
991745294.UG.FTS.B,
29.49%,
2/05/25
..
97
102
991745434.UG.FTS.B,
29.49%,
2/05/25
..
9
9
991745495.UG.FTS.B,
29.49%,
2/05/25
..
35
35
991746165.UG.FTS.B,
29.49%,
2/05/25
..
163
171
991747447.UG.FTS.B,
29.49%,
2/05/25
..
429
447
991747772.UG.FTS.B,
29.49%,
2/05/25
..
–
–
991748448.UG.FTS.B,
29.49%,
2/05/25
..
806
195
991750763.UG.FTS.B,
29.49%,
2/05/25
..
72
72
991751122.UG.FTS.B,
29.49%,
2/05/25
..
203
206
991751856.UG.FTS.B,
29.49%,
2/05/25
..
13
13
991752282.UG.FTS.B,
29.49%,
2/05/25
..
247
60
991752383.UG.FTS.B,
29.49%,
2/05/25
..
110
115
991754108.UG.FTS.B,
29.49%,
2/05/25
..
94
99
991756132.UG.FTS.B,
29.49%,
2/05/25
..
123
16
991757533.UG.FTS.B,
29.49%,
2/05/25
..
77
79
991761533.UG.FTS.B,
29.49%,
2/05/25
..
114
114
991767013.UG.FTS.B,
29.49%,
2/05/25
..
100
105
991768291.UG.FTS.B,
29.49%,
2/05/25
..
77
82
991770008.UG.FTS.B,
29.49%,
2/05/25
..
77
78
991770513.UG.FTS.B,
29.49%,
2/05/25
..
66
69
991777615.UG.FTS.B,
29.49%,
2/05/25
..
–
–
991779678.UG.FTS.B,
29.49%,
2/05/25
..
103
108
991783713.UG.FTS.B,
29.49%,
2/05/25
..
378
47
991788833.UG.FTS.B,
29.49%,
2/05/25
..
156
159
991790182.UG.FTS.B,
29.49%,
2/05/25
..
81
85
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991792046.UG.FTS.B,
29.49%,
2/05/25
..
$
45
$
46
991792427.UG.FTS.B,
29.49%,
2/05/25
..
167
174
991796894.UG.FTS.B,
29.49%,
2/05/25
..
468
489
991811197.UG.FTS.B,
29.49%,
2/05/25
..
188
196
991811424.UG.FTS.B,
29.49%,
2/05/25
..
667
–
991814933.UG.FTS.B,
29.49%,
2/05/25
..
125
130
991815312.UG.FTS.B,
29.49%,
2/05/25
..
188
196
991819739.UG.FTS.B,
29.49%,
2/05/25
..
811
–
991819909.UG.FTS.B,
29.49%,
2/05/25
..
7
7
991820737.UG.FTS.B,
29.49%,
2/05/25
..
148
38
991831731.UG.FTS.B,
29.49%,
2/05/25
..
54
55
991839936.UG.FTS.B,
29.49%,
2/05/25
..
11
11
991842723.UG.FTS.B,
29.49%,
2/05/25
..
97
101
991850751.UG.FTS.B,
29.49%,
2/05/25
..
156
163
991853314.UG.FTS.B,
29.49%,
2/05/25
..
93
96
991857355.UG.FTS.B,
29.49%,
2/05/25
..
75
78
991857915.UG.FTS.B,
29.49%,
2/05/25
..
301
300
991862214.UG.FTS.B,
29.49%,
2/05/25
..
7
7
991875302.UG.FTS.B,
29.49%,
2/05/25
..
100
–
991902591.UG.FTS.B,
29.49%,
2/05/25
..
197
201
991908115.UG.FTS.B,
29.49%,
2/05/25
..
35
35
991908155.UG.FTS.B,
29.49%,
2/05/25
..
263
–
991919187.UG.FTS.B,
29.49%,
2/05/25
..
133
137
991921228.UG.FTS.B,
29.49%,
2/05/25
..
35
35
991925238.UG.FTS.B,
29.49%,
2/05/25
..
–
–
991937053.UG.FTS.B,
29.49%,
2/05/25
..
213
219
991938113.UG.FTS.B,
29.49%,
2/05/25
..
260
268
991704035.UG.FTS.B,
Zero
Cpn,
2/06/25
.
234
16
991826190.UG.FTS.B,
Zero
Cpn,
2/06/25
.
74
5
991848757.UG.FTS.B,
Zero
Cpn,
2/06/25
.
2,334
161
991945741.UG.FTS.B,
15.97%,
2/06/25
..
294
298
991941061.UG.FTS.B,
17.99%,
2/06/25
..
252
256
991700171.UG.FTS.B,
18.97%,
2/06/25
..
369
376
991873192.UG.FTS.B,
18.97%,
2/06/25
..
89
22
991716319.UG.FTS.B,
19.21%,
2/06/25
..
355
362
991786750.UG.FTS.B,
19.21%,
2/06/25
..
135
138
991701533.UG.FTS.B,
19.8%,
2/06/25
...
207
212
991710752.UG.FTS.B,
19.8%,
2/06/25
...
279
285
991724990.UG.FTS.B,
19.8%,
2/06/25
...
89
89
991698898.UG.FTS.B,
19.99%,
2/06/25
..
969
987
991701760.UG.FTS.B,
19.99%,
2/06/25
..
23
23
991755348.UG.FTS.B,
19.99%,
2/06/25
..
77
80
991767533.UG.FTS.B,
19.99%,
2/06/25
..
55
57
991802156.UG.FTS.B,
19.99%,
2/06/25
..
519
541
991714002.UG.FTS.B,
20.46%,
2/06/25
..
543
555
991754233.UG.FTS.B,
20.46%,
2/06/25
..
135
34
991801256.UG.FTS.B,
20.46%,
2/06/25
..
311
318
991829259.UG.FTS.B,
20.46%,
2/06/25
..
134
137
991863415.UG.FTS.B,
20.46%,
2/06/25
..
571
583
991718934.UG.FTS.B,
20.97%,
2/06/25
..
156
158
991699332.UG.FTS.B,
21.46%,
2/06/25
..
651
642
991726288.UG.FTS.B,
21.98%,
2/06/25
..
134
136
991741410.UG.FTS.B,
21.98%,
2/06/25
..
212
215
991792953.UG.FTS.B,
21.98%,
2/06/25
..
2,653
2,706
991807809.UG.FTS.B,
21.98%,
2/06/25
..
967
969
991845918.UG.FTS.B,
21.98%,
2/06/25
..
126
126
991869067.UG.FTS.B,
21.98%,
2/06/25
..
536
548
991768595.UG.FTS.B,
22.97%,
2/06/25
..
39
39
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991871370.UG.FTS.B,
22.97%,
2/06/25
..
$
4,364
$
4,462
991927310.UG.FTS.B,
22.97%,
2/06/25
..
24
24
991769602.UG.FTS.B,
23.95%,
2/06/25
..
731
730
991793223.UG.FTS.B,
23.95%,
2/06/25
..
460
125
991936216.UG.FTS.B,
23.95%,
2/06/25
..
7
7
991733615.UG.FTS.B,
27.95%,
2/06/25
..
765
785
991759445.UG.FTS.B,
27.99%,
2/06/25
..
181
189
991851167.UG.FTS.B,
27.99%,
2/06/25
..
33
33
991691439.UG.FTS.B,
28.98%,
2/06/25
..
680
693
991700105.UG.FTS.B,
28.98%,
2/06/25
..
75
78
991700313.UG.FTS.B,
28.98%,
2/06/25
..
55
56
991701200.UG.FTS.B,
28.98%,
2/06/25
..
70
73
991701698.UG.FTS.B,
28.98%,
2/06/25
..
137
141
991702178.UG.FTS.B,
28.98%,
2/06/25
..
74
77
991703634.UG.FTS.B,
28.98%,
2/06/25
..
175
180
991706049.UG.FTS.B,
28.98%,
2/06/25
..
101
102
991706891.UG.FTS.B,
28.98%,
2/06/25
..
63
65
991707490.UG.FTS.B,
28.98%,
2/06/25
..
78
79
991708571.UG.FTS.B,
28.98%,
2/06/25
..
177
184
991709238.UG.FTS.B,
28.98%,
2/06/25
..
142
9
991710098.UG.FTS.B,
28.98%,
2/06/25
..
86
88
991711651.UG.FTS.B,
28.98%,
2/06/25
..
96
7
991711745.UG.FTS.B,
28.98%,
2/06/25
..
117
121
991717052.UG.FTS.B,
28.98%,
2/06/25
..
332
345
991718507.UG.FTS.B,
28.98%,
2/06/25
..
132
136
991718999.UG.FTS.B,
28.98%,
2/06/25
..
22
22
991725784.UG.FTS.B,
28.98%,
2/06/25
..
117
122
991725860.UG.FTS.B,
28.98%,
2/06/25
..
60
62
991728916.UG.FTS.B,
28.98%,
2/06/25
..
101
103
991729192.UG.FTS.B,
28.98%,
2/06/25
..
456
475
991729721.UG.FTS.B,
28.98%,
2/06/25
..
251
258
991732224.UG.FTS.B,
28.98%,
2/06/25
..
152
151
991734751.UG.FTS.B,
28.98%,
2/06/25
..
546
557
991734815.UG.FTS.B,
28.98%,
2/06/25
..
164
171
991737546.UG.FTS.B,
28.98%,
2/06/25
..
293
302
991739880.UG.FTS.B,
28.98%,
2/06/25
..
102
102
991743323.UG.FTS.B,
28.98%,
2/06/25
..
110
7
991748713.UG.FTS.B,
28.98%,
2/06/25
..
463
465
991749171.UG.FTS.B,
28.98%,
2/06/25
..
773
794
991751750.UG.FTS.B,
28.98%,
2/06/25
..
150
46
991752424.UG.FTS.B,
28.98%,
2/06/25
..
92
96
991756884.UG.FTS.B,
28.98%,
2/06/25
..
194
202
991758045.UG.FTS.B,
28.98%,
2/06/25
..
459
478
991762162.UG.FTS.B,
28.98%,
2/06/25
..
181
189
991766105.UG.FTS.B,
28.98%,
2/06/25
..
310
323
991766305.UG.FTS.B,
28.98%,
2/06/25
..
298
311
991766721.UG.FTS.B,
28.98%,
2/06/25
..
737
768
991770800.UG.FTS.B,
28.98%,
2/06/25
..
89
93
991776146.UG.FTS.B,
28.98%,
2/06/25
..
152
158
991787293.UG.FTS.B,
28.98%,
2/06/25
..
87
90
991794977.UG.FTS.B,
28.98%,
2/06/25
..
59
61
991813823.UG.FTS.B,
28.98%,
2/06/25
..
111
116
991815125.UG.FTS.B,
28.98%,
2/06/25
..
338
338
991815323.UG.FTS.B,
28.98%,
2/06/25
..
74
19
991817047.UG.FTS.B,
28.98%,
2/06/25
..
502
522
991823294.UG.FTS.B,
28.98%,
2/06/25
..
152
156
991823324.UG.FTS.B,
28.98%,
2/06/25
..
1,045
1,068
991826493.UG.FTS.B,
28.98%,
2/06/25
..
73
75
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
91
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991832318.UG.FTS.B,
28.98%,
2/06/25
..
$
76
$
5
991832752.UG.FTS.B,
28.98%,
2/06/25
..
414
432
991834196.UG.FTS.B,
28.98%,
2/06/25
..
45
45
991836050.UG.FTS.B,
28.98%,
2/06/25
..
166
173
991836125.UG.FTS.B,
28.98%,
2/06/25
..
527
549
991837625.UG.FTS.B,
28.98%,
2/06/25
..
85
86
991842664.UG.FTS.B,
28.98%,
2/06/25
..
108
112
991852569.UG.FTS.B,
28.98%,
2/06/25
..
40
41
991855239.UG.FTS.B,
28.98%,
2/06/25
..
451
127
991861556.UG.FTS.B,
28.98%,
2/06/25
..
116
120
991862866.UG.FTS.B,
28.98%,
2/06/25
..
2,185
2,258
991868227.UG.FTS.B,
28.98%,
2/06/25
..
473
493
991868577.UG.FTS.B,
28.98%,
2/06/25
..
153
159
991878519.UG.FTS.B,
28.98%,
2/06/25
..
22
22
991896380.UG.FTS.B,
28.98%,
2/06/25
..
4,117
4,227
991912584.UG.FTS.B,
28.98%,
2/06/25
..
287
71
991917185.UG.FTS.B,
28.98%,
2/06/25
..
132
32
991930551.UG.FTS.B,
28.98%,
2/06/25
..
244
252
991934063.UG.FTS.B,
28.98%,
2/06/25
..
48
49
991712510.UG.FTS.B,
29.47%,
2/06/25
..
196
205
991690486.UG.FTS.B,
29.49%,
2/06/25
..
527
533
991690939.UG.FTS.B,
29.49%,
2/06/25
..
839
877
991700095.UG.FTS.B,
29.49%,
2/06/25
..
134
138
991700980.UG.FTS.B,
29.49%,
2/06/25
..
320
330
991701366.UG.FTS.B,
29.49%,
2/06/25
..
493
31
991704419.UG.FTS.B,
29.49%,
2/06/25
..
189
198
991704708.UG.FTS.B,
29.49%,
2/06/25
..
233
–
991706683.UG.FTS.B,
29.49%,
2/06/25
..
50
50
991707381.UG.FTS.B,
29.49%,
2/06/25
..
142
144
991707856.UG.FTS.B,
29.49%,
2/06/25
..
117
118
991708109.UG.FTS.B,
29.49%,
2/06/25
..
118
123
991708283.UG.FTS.B,
29.49%,
2/06/25
..
64
67
991708927.UG.FTS.B,
29.49%,
2/06/25
..
98
100
991709656.UG.FTS.B,
29.49%,
2/06/25
..
360
371
991712333.UG.FTS.B,
29.49%,
2/06/25
..
89
93
991712745.UG.FTS.B,
29.49%,
2/06/25
..
86
90
991715596.UG.FTS.B,
29.49%,
2/06/25
..
811
832
991717099.UG.FTS.B,
29.49%,
2/06/25
..
26
26
991717494.UG.FTS.B,
29.49%,
2/06/25
..
1
1
991718002.UG.FTS.B,
29.49%,
2/06/25
..
123
16
991719419.UG.FTS.B,
29.49%,
2/06/25
..
257
16
991721139.UG.FTS.B,
29.49%,
2/06/25
..
166
174
991721483.UG.FTS.B,
29.49%,
2/06/25
..
48
39
991725507.UG.FTS.B,
29.49%,
2/06/25
..
214
224
991728380.UG.FTS.B,
29.49%,
2/06/25
..
153
160
991728473.UG.FTS.B,
29.49%,
2/06/25
..
1,058
1,105
991729831.UG.FTS.B,
29.49%,
2/06/25
..
159
163
991730113.UG.FTS.B,
29.49%,
2/06/25
..
162
169
991734435.UG.FTS.B,
29.49%,
2/06/25
..
95
24
991738035.UG.FTS.B,
29.49%,
2/06/25
..
68
71
991738990.UG.FTS.B,
29.49%,
2/06/25
..
469
473
991746112.UG.FTS.B,
29.49%,
2/06/25
..
49
49
991746952.UG.FTS.B,
29.49%,
2/06/25
..
210
213
991747607.UG.FTS.B,
29.49%,
2/06/25
..
113
119
991749942.UG.FTS.B,
29.49%,
2/06/25
..
277
291
991754744.UG.FTS.B,
29.49%,
2/06/25
..
211
27
991757332.UG.FTS.B,
29.49%,
2/06/25
..
52
52
991759741.UG.FTS.B,
29.49%,
2/06/25
..
215
226
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991767120.UG.FTS.B,
29.49%,
2/06/25
..
$
28
$
11
991767728.UG.FTS.B,
29.49%,
2/06/25
..
129
135
991769688.UG.FTS.B,
29.49%,
2/06/25
..
250
261
991769928.UG.FTS.B,
29.49%,
2/06/25
..
176
179
991771068.UG.FTS.B,
29.49%,
2/06/25
..
77
78
991796673.UG.FTS.B,
29.49%,
2/06/25
..
70
70
991797405.UG.FTS.B,
29.49%,
2/06/25
..
102
107
991798596.UG.FTS.B,
29.49%,
2/06/25
..
32
32
991800849.UG.FTS.B,
29.49%,
2/06/25
..
39
41
991812212.UG.FTS.B,
29.49%,
2/06/25
..
100
101
991812574.UG.FTS.B,
29.49%,
2/06/25
..
84
89
991815674.UG.FTS.B,
29.49%,
2/06/25
..
285
293
991816101.UG.FTS.B,
29.49%,
2/06/25
..
123
129
991818985.UG.FTS.B,
29.49%,
2/06/25
..
26
26
991821554.UG.FTS.B,
29.49%,
2/06/25
..
78
82
991825654.UG.FTS.B,
29.49%,
2/06/25
..
159
12
991826917.UG.FTS.B,
29.49%,
2/06/25
..
344
359
991834402.UG.FTS.B,
29.49%,
2/06/25
..
82
5
991834986.UG.FTS.B,
29.49%,
2/06/25
..
277
292
991835940.UG.FTS.B,
29.49%,
2/06/25
..
132
–
991836634.UG.FTS.B,
29.49%,
2/06/25
..
92
94
991844028.UG.FTS.B,
29.49%,
2/06/25
..
1,721
116
991848072.UG.FTS.B,
29.49%,
2/06/25
..
105
109
991850107.UG.FTS.B,
29.49%,
2/06/25
..
15
15
991852176.UG.FTS.B,
29.49%,
2/06/25
..
83
87
991854157.UG.FTS.B,
29.49%,
2/06/25
..
330
–
991855511.UG.FTS.B,
29.49%,
2/06/25
..
21
3
991862795.UG.FTS.B,
29.49%,
2/06/25
..
829
860
991863148.UG.FTS.B,
29.49%,
2/06/25
..
100
14
991869807.UG.FTS.B,
29.49%,
2/06/25
..
96
100
991870451.UG.FTS.B,
29.49%,
2/06/25
..
64
66
991871207.UG.FTS.B,
29.49%,
2/06/25
..
–
–
991873395.UG.FTS.B,
29.49%,
2/06/25
..
20
3
991875332.UG.FTS.B,
29.49%,
2/06/25
..
–
–
991886716.UG.FTS.B,
29.49%,
2/06/25
..
79
82
991896068.UG.FTS.B,
29.49%,
2/06/25
..
30
30
991908415.UG.FTS.B,
29.49%,
2/06/25
..
34
35
991914065.UG.FTS.B,
29.49%,
2/06/25
..
106
110
991919465.UG.FTS.B,
29.49%,
2/06/25
..
6
6
991693038.UG.FTS.B,
Zero
Cpn,
2/07/25
.
1,857
129
991712587.UG.FTS.B,
Zero
Cpn,
2/07/25
.
503
35
991729754.UG.FTS.B,
Zero
Cpn,
2/07/25
.
1,006
69
991792553.UG.FTS.B,
Zero
Cpn,
2/07/25
.
264
18
991853938.UG.FTS.B,
Zero
Cpn,
2/07/25
.
2,094
146
991891982.UG.FTS.B,
Zero
Cpn,
2/07/25
.
–
–
991895165.UG.FTS.B,
Zero
Cpn,
2/07/25
.
–
–
991736213.UG.FTS.B,
14.98%,
2/07/25
..
256
260
991860327.UG.FTS.B,
17.99%,
2/07/25
..
699
83
991933227.UG.FTS.B,
17.99%,
2/07/25
..
32
2
991827281.UG.FTS.B,
18.97%,
2/07/25
..
76
78
991905123.UG.FTS.B,
18.97%,
2/07/25
..
87
88
991748413.UG.FTS.B,
19.21%,
2/07/25
..
294
296
991783290.UG.FTS.B,
19.21%,
2/07/25
..
201
205
991818350.UG.FTS.B,
19.21%,
2/07/25
..
–
–
991924115.UG.FTS.B,
19.21%,
2/07/25
..
58
59
991834369.UG.FTS.B,
19.8%,
2/07/25
...
218
222
991856601.UG.FTS.B,
19.99%,
2/07/25
..
234
243
991929262.UG.FTS.B,
19.99%,
2/07/25
..
74
77
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991929766.UG.FTS.B,
19.99%,
2/07/25
..
$
112
$
115
991868003.UG.FTS.B,
20.46%,
2/07/25
..
188
46
991711288.UG.FTS.B,
21.98%,
2/07/25
..
123
126
991843735.UG.FTS.B,
21.98%,
2/07/25
..
321
328
991736467.UG.FTS.B,
22.97%,
2/07/25
..
255
260
991772252.UG.FTS.B,
23.95%,
2/07/25
..
1,073
1,098
991762975.UG.FTS.B,
25.95%,
2/07/25
..
272
278
991709714.UG.FTS.B,
27.99%,
2/07/25
..
40
41
991748191.UG.FTS.B,
27.99%,
2/07/25
..
206
215
991785599.UG.FTS.B,
27.99%,
2/07/25
..
263
263
991800353.UG.FTS.B,
27.99%,
2/07/25
..
61
64
991880949.UG.FTS.B,
27.99%,
2/07/25
..
37
38
991697103.UG.FTS.B,
28.98%,
2/07/25
..
274
283
991705793.UG.FTS.B,
28.98%,
2/07/25
..
302
311
991705973.UG.FTS.B,
28.98%,
2/07/25
..
134
139
991706813.UG.FTS.B,
28.98%,
2/07/25
..
326
84
991707358.UG.FTS.B,
28.98%,
2/07/25
..
78
81
991708937.UG.FTS.B,
28.98%,
2/07/25
..
144
149
991708989.UG.FTS.B,
28.98%,
2/07/25
..
144
147
991710379.UG.FTS.B,
28.98%,
2/07/25
..
180
187
991710718.UG.FTS.B,
28.98%,
2/07/25
..
67
69
991712303.UG.FTS.B,
28.98%,
2/07/25
..
121
126
991712542.UG.FTS.B,
28.98%,
2/07/25
..
48
50
991712922.UG.FTS.B,
28.98%,
2/07/25
..
90
93
991716650.UG.FTS.B,
28.98%,
2/07/25
..
62
47
991717771.UG.FTS.B,
28.98%,
2/07/25
..
198
204
991724273.UG.FTS.B,
28.98%,
2/07/25
..
919
958
991724529.UG.FTS.B,
28.98%,
2/07/25
..
1,025
1,066
991727635.UG.FTS.B,
28.98%,
2/07/25
..
176
183
991728955.UG.FTS.B,
28.98%,
2/07/25
..
257
263
991731435.UG.FTS.B,
28.98%,
2/07/25
..
139
145
991739386.UG.FTS.B,
28.98%,
2/07/25
..
277
19
991740286.UG.FTS.B,
28.98%,
2/07/25
..
557
581
991743968.UG.FTS.B,
28.98%,
2/07/25
..
318
332
991755398.UG.FTS.B,
28.98%,
2/07/25
..
75
78
991755903.UG.FTS.B,
28.98%,
2/07/25
..
113
116
991772287.UG.FTS.B,
28.98%,
2/07/25
..
278
290
991774768.UG.FTS.B,
28.98%,
2/07/25
..
1,634
1,692
991784791.UG.FTS.B,
28.98%,
2/07/25
..
155
160
991796956.UG.FTS.B,
28.98%,
2/07/25
..
71
74
991799326.UG.FTS.B,
28.98%,
2/07/25
..
375
386
991799442.UG.FTS.B,
28.98%,
2/07/25
..
701
726
991801184.UG.FTS.B,
28.98%,
2/07/25
..
1,705
221
991803039.UG.FTS.B,
28.98%,
2/07/25
..
524
545
991805595.UG.FTS.B,
28.98%,
2/07/25
..
29
30
991806653.UG.FTS.B,
28.98%,
2/07/25
..
188
192
991807039.UG.FTS.B,
28.98%,
2/07/25
..
205
212
991807123.UG.FTS.B,
28.98%,
2/07/25
..
359
364
991809459.UG.FTS.B,
28.98%,
2/07/25
..
31
31
991811191.UG.FTS.B,
28.98%,
2/07/25
..
555
561
991814223.UG.FTS.B,
28.98%,
2/07/25
..
100
104
991830675.UG.FTS.B,
28.98%,
2/07/25
..
122
127
991835648.UG.FTS.B,
28.98%,
2/07/25
..
110
115
991838148.UG.FTS.B,
28.98%,
2/07/25
..
255
258
991838996.UG.FTS.B,
28.98%,
2/07/25
..
147
36
991840095.UG.FTS.B,
28.98%,
2/07/25
..
42
6
991849419.UG.FTS.B,
28.98%,
2/07/25
..
336
350
991852363.UG.FTS.B,
28.98%,
2/07/25
..
43
44
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991854543.UG.FTS.B,
28.98%,
2/07/25
..
$
144
$
151
991875987.UG.FTS.B,
28.98%,
2/07/25
..
277
17
991882872.UG.FTS.B,
28.98%,
2/07/25
..
206
213
991884000.UG.FTS.B,
28.98%,
2/07/25
..
674
681
991922608.UG.FTS.B,
28.98%,
2/07/25
..
171
173
991935487.UG.FTS.B,
28.98%,
2/07/25
..
80
82
991727371.UG.FTS.B,
29.46%,
2/07/25
..
94
24
991709575.UG.FTS.B,
29.48%,
2/07/25
..
197
207
991705974.UG.FTS.B,
29.49%,
2/07/25
..
445
452
991707049.UG.FTS.B,
29.49%,
2/07/25
..
137
36
991707186.UG.FTS.B,
29.49%,
2/07/25
..
219
224
991708039.UG.FTS.B,
29.49%,
2/07/25
..
414
52
991709608.UG.FTS.B,
29.49%,
2/07/25
..
178
184
991712449.UG.FTS.B,
29.49%,
2/07/25
..
105
110
991712892.UG.FTS.B,
29.49%,
2/07/25
..
165
166
991713198.UG.FTS.B,
29.49%,
2/07/25
..
17
17
991714825.UG.FTS.B,
29.49%,
2/07/25
..
39
40
991715086.UG.FTS.B,
29.49%,
2/07/25
..
26
3
991717543.UG.FTS.B,
29.49%,
2/07/25
..
115
121
991718167.UG.FTS.B,
29.49%,
2/07/25
..
84
88
991720150.UG.FTS.B,
29.49%,
2/07/25
..
216
218
991721040.UG.FTS.B,
29.49%,
2/07/25
..
83
87
991721496.UG.FTS.B,
29.49%,
2/07/25
..
76
80
991723604.UG.FTS.B,
29.49%,
2/07/25
..
30
30
991726856.UG.FTS.B,
29.49%,
2/07/25
..
19
19
991728336.UG.FTS.B,
29.49%,
2/07/25
..
29
29
991729210.UG.FTS.B,
29.49%,
2/07/25
..
447
461
991729445.UG.FTS.B,
29.49%,
2/07/25
..
56
58
991729898.UG.FTS.B,
29.49%,
2/07/25
..
54
16
991730072.UG.FTS.B,
29.49%,
2/07/25
..
624
644
991730418.UG.FTS.B,
29.49%,
2/07/25
..
932
943
991733135.UG.FTS.B,
29.49%,
2/07/25
..
2,071
2,127
991734242.UG.FTS.B,
29.49%,
2/07/25
..
122
124
991734487.UG.FTS.B,
29.49%,
2/07/25
..
222
29
991734975.UG.FTS.B,
29.49%,
2/07/25
..
52
54
991735751.UG.FTS.B,
29.49%,
2/07/25
..
101
13
991735915.UG.FTS.B,
29.49%,
2/07/25
..
213
223
991736815.UG.FTS.B,
29.49%,
2/07/25
..
838
870
991736857.UG.FTS.B,
29.49%,
2/07/25
..
942
982
991737666.UG.FTS.B,
29.49%,
2/07/25
..
124
125
991738244.UG.FTS.B,
29.49%,
2/07/25
..
87
87
991738742.UG.FTS.B,
29.49%,
2/07/25
..
31
32
991741355.UG.FTS.B,
29.49%,
2/07/25
..
36
37
991745513.UG.FTS.B,
29.49%,
2/07/25
..
187
191
991745593.UG.FTS.B,
29.49%,
2/07/25
..
371
375
991747860.UG.FTS.B,
29.49%,
2/07/25
..
19
19
991751851.UG.FTS.B,
29.49%,
2/07/25
..
27
27
991754591.UG.FTS.B,
29.49%,
2/07/25
..
108
26
991759359.UG.FTS.B,
29.49%,
2/07/25
..
406
424
991759641.UG.FTS.B,
29.49%,
2/07/25
..
113
118
991759993.UG.FTS.B,
29.49%,
2/07/25
..
163
171
991760081.UG.FTS.B,
29.49%,
2/07/25
..
106
112
991761633.UG.FTS.B,
29.49%,
2/07/25
..
91
95
991770778.UG.FTS.B,
29.49%,
2/07/25
..
37
38
991777257.UG.FTS.B,
29.49%,
2/07/25
..
88
24
991778724.UG.FTS.B,
29.49%,
2/07/25
..
91
93
991778741.UG.FTS.B,
29.49%,
2/07/25
..
156
155
991782212.UG.FTS.B,
29.49%,
2/07/25
..
252
261
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
93
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991787617.UG.FTS.B,
29.49%,
2/07/25
..
$
65
$
68
991788685.UG.FTS.B,
29.49%,
2/07/25
..
376
381
991791306.UG.FTS.B,
29.49%,
2/07/25
..
80
82
991794594.UG.FTS.B,
29.49%,
2/07/25
..
18
18
991795473.UG.FTS.B,
29.49%,
2/07/25
..
28
28
991799844.UG.FTS.B,
29.49%,
2/07/25
..
40
41
991807111.UG.FTS.B,
29.49%,
2/07/25
..
71
72
991808521.UG.FTS.B,
29.49%,
2/07/25
..
293
302
991809177.UG.FTS.B,
29.49%,
2/07/25
..
196
201
991809318.UG.FTS.B,
29.49%,
2/07/25
..
93
97
991813864.UG.FTS.B,
29.49%,
2/07/25
..
28
29
991815263.UG.FTS.B,
29.49%,
2/07/25
..
209
217
991818057.UG.FTS.B,
29.49%,
2/07/25
..
74
25
991827340.UG.FTS.B,
29.49%,
2/07/25
..
728
754
991832087.UG.FTS.B,
29.49%,
2/07/25
..
87
91
991837440.UG.FTS.B,
29.49%,
2/07/25
..
501
517
991842138.UG.FTS.B,
29.49%,
2/07/25
..
135
139
991842816.UG.FTS.B,
29.49%,
2/07/25
..
136
142
991843151.UG.FTS.B,
29.49%,
2/07/25
..
540
134
991843726.UG.FTS.B,
29.49%,
2/07/25
..
275
281
991843750.UG.FTS.B,
29.49%,
2/07/25
..
31
31
991848794.UG.FTS.B,
29.49%,
2/07/25
..
23
24
991852313.UG.FTS.B,
29.49%,
2/07/25
..
–
–
991852346.UG.FTS.B,
29.49%,
2/07/25
..
138
145
991857024.UG.FTS.B,
29.49%,
2/07/25
..
100
101
991858094.UG.FTS.B,
29.49%,
2/07/25
..
164
173
991860322.UG.FTS.B,
29.49%,
2/07/25
..
102
107
991868612.UG.FTS.B,
29.49%,
2/07/25
..
67
67
991883200.UG.FTS.B,
29.49%,
2/07/25
..
381
397
991887497.UG.FTS.B,
29.49%,
2/07/25
..
603
624
991895721.UG.FTS.B,
29.49%,
2/07/25
..
149
149
991914240.UG.FTS.B,
29.49%,
2/07/25
..
239
246
991918574.UG.FTS.B,
29.49%,
2/07/25
..
237
246
991924888.UG.FTS.B,
29.49%,
2/07/25
..
110
28
991930808.UG.FTS.B,
29.49%,
2/07/25
..
524
547
991783643.UG.FTS.B,
14.98%,
2/08/25
..
998
1,018
991895441.UG.FTS.B,
14.98%,
2/08/25
..
911
–
991946691.UG.FTS.B,
14.98%,
2/08/25
..
24
11
991802379.UG.FTS.B,
15.97%,
2/08/25
..
253
258
991904951.UG.FTS.B,
15.97%,
2/08/25
..
172
175
991908489.UG.FTS.B,
15.97%,
2/08/25
..
251
256
991917251.UG.FTS.B,
15.97%,
2/08/25
..
199
202
991771363.UG.FTS.B,
16.99%,
2/08/25
..
1,275
1,302
991784207.UG.FTS.B,
16.99%,
2/08/25
..
161
39
991894055.UG.FTS.B,
16.99%,
2/08/25
..
161
39
991905481.UG.FTS.B,
16.99%,
2/08/25
..
81
82
991721411.UG.FTS.B,
17.99%,
2/08/25
..
596
42
991731306.UG.FTS.B,
17.99%,
2/08/25
..
704
702
991746485.UG.FTS.B,
17.99%,
2/08/25
..
23
1
991868983.UG.FTS.B,
17.99%,
2/08/25
..
243
17
991717470.UG.FTS.B,
19.21%,
2/08/25
..
168
169
991724869.UG.FTS.B,
15%,
2/09/25
.....
642
656
991746108.UG.FTS.B,
15%,
2/09/25
.....
160
162
991746306.UG.FTS.B,
15%,
2/09/25
.....
706
712
991862382.UG.FTS.B,
15%,
2/09/25
.....
76
77
991908452.UG.FTS.B,
15%,
2/09/25
.....
1,493
1,525
991929779.UG.FTS.B,
15%,
2/09/25
.....
21
21
991781627.UG.FTS.B,
15.97%,
2/09/25
..
309
37
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991719973.UG.FTS.B,
16.99%,
2/09/25
..
$
153
$
157
991778289.UG.FTS.B,
16.99%,
2/09/25
..
583
595
991783787.UG.FTS.B,
16.99%,
2/09/25
..
510
521
991784826.UG.FTS.B,
16.99%,
2/09/25
..
587
71
991863273.UG.FTS.B,
16.99%,
2/09/25
..
764
779
991741247.UG.FTS.B,
17.97%,
2/09/25
..
514
525
991764270.UG.FTS.B,
17.99%,
2/09/25
..
264
270
991806884.UG.FTS.B,
17.99%,
2/09/25
..
111
113
991867276.UG.FTS.B,
17.99%,
2/09/25
..
141
143
991646974.UG.FTS.B,
28.98%,
2/15/25
..
148
20
991766510.UG.FTS.B,
29.49%,
2/17/25
..
70
72
991630337.UG.FTS.B,
18.97%,
2/23/25
..
73
54
991724492.UG.FTS.B,
Zero
Cpn,
3/02/25
.
81
6
991849560.UG.FTS.B,
29.49%,
3/04/25
..
68
53
991710560.UG.FTS.B,
28.98%,
3/05/25
..
459
117
991917746.UG.FTS.B,
29.49%,
3/05/25
..
117
89
991547229.UG.FTS.B,
29.49%,
3/15/25
..
325
339
991693195.UG.FTS.B,
29.49%,
3/22/25
..
–
–
991645315.UG.FTS.B,
29.49%,
3/23/25
..
72
55
991654581.UG.FTS.B,
Zero
Cpn,
3/26/25
.
266
19
991683489.UG.FTS.B,
Zero
Cpn,
4/05/25
.
1,932
133
991921265.UG.FTS.B,
28.98%,
4/05/25
..
90
21
991762048.UG.FTS.B,
18.97%,
4/06/25
..
160
11
991545880.UG.FTS.B,
28.98%,
4/17/25
..
67
50
991772528.UG.FTS.B,
28.98%,
4/17/25
..
159
11
991573331.UG.FTS.B,
29.49%,
4/17/25
..
94
97
991577516.UG.FTS.B,
29.49%,
4/17/25
..
124
9
991699882.UG.FTS.B,
19.99%,
4/18/25
..
83
64
991700341.UG.FTS.B,
21.46%,
4/18/25
..
184
131
991629369.UG.FTS.B,
26.94%,
4/19/25
..
75
55
991811950.UG.FTS.B,
19.99%,
4/20/25
..
74
64
991786528.UG.FTS.B,
21.98%,
4/20/25
..
106
78
991762816.UG.FTS.B,
29.49%,
4/20/25
..
76
79
991632438.UG.FTS.B,
19.8%,
4/21/25
...
1,202
893
991654006.UG.FTS.B,
29.49%,
4/21/25
..
114
119
991697266.UG.FTS.B,
21.46%,
4/22/25
..
204
209
991702030.UG.FTS.B,
21.46%,
4/22/25
..
1,274
1,307
991732943.UG.FTS.B,
29.49%,
4/22/25
..
120
96
991687274.UG.FTS.B,
19.99%,
4/23/25
..
158
165
991638710.UG.FTS.B,
28.98%,
4/23/25
..
155
158
991742808.UG.FTS.B,
29.49%,
4/23/25
..
356
244
991613039.UG.FTS.B,
19.99%,
4/24/25
..
523
550
991666052.UG.FTS.B,
25.98%,
4/24/25
..
100
–
991749269.UG.FTS.B,
29.49%,
4/24/25
..
193
203
991838313.UG.FTS.B,
15.97%,
4/25/25
..
1,151
1,175
991659919.UG.FTS.B,
20.97%,
4/27/25
..
92
68
991915319.UG.FTS.B,
20.46%,
5/04/25
..
144
32
991714493.UG.FTS.B,
28.98%,
5/05/25
..
99
6
991721024.UG.FTS.B,
28.98%,
5/05/25
..
566
397
991724571.UG.FTS.B,
28.98%,
5/05/25
..
140
146
991922957.UG.FTS.B,
21.98%,
5/06/25
..
154
113
991707574.UG.FTS.B,
29.49%,
5/07/25
..
65
60
991834646.UG.FTS.B,
Zero
Cpn,
5/08/25
.
1,730
122
991669072.UG.FTS.B,
28.98%,
5/16/25
..
166
127
991770244.UG.FTS.B,
28.98%,
5/16/25
..
451
–
991563658.UG.FTS.B,
29.49%,
5/16/25
..
823
859
991550463.UG.FTS.B,
19.99%,
5/17/25
..
1,160
1,215
991579762.UG.FTS.B,
19.99%,
5/17/25
..
196
150
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991626332.UG.FTS.B,
19.99%,
5/17/25
..
$
347
$
265
991723012.UG.FTS.B,
27.99%,
5/17/25
..
352
48
991601320.UG.FTS.B,
28.98%,
5/17/25
..
585
439
991740124.UG.FTS.B,
28.98%,
5/17/25
..
70
56
991544991.UG.FTS.B,
29.48%,
5/17/25
..
216
18
991592560.UG.FTS.B,
29.49%,
5/17/25
..
156
163
991686463.UG.FTS.B,
28.98%,
5/18/25
..
468
490
991723176.UG.FTS.B,
29.49%,
5/18/25
..
165
172
991777444.UG.FTS.B,
29.49%,
5/18/25
..
83
66
991662231.UG.FTS.B,
28.98%,
5/19/25
..
87
91
991693097.UG.FTS.B,
26.94%,
5/20/25
..
325
332
991674428.UG.FTS.B,
29.49%,
5/20/25
..
773
602
991759014.UG.FTS.B,
29.49%,
5/20/25
..
85
63
991633359.UG.FTS.B,
29.49%,
5/21/25
..
493
–
991746950.UG.FTS.B,
29.49%,
5/21/25
..
144
10
991776695.UG.FTS.B,
29.49%,
5/21/25
..
124
130
991679229.UG.FTS.B,
Zero
Cpn,
5/22/25
.
100
7
991721073.UG.FTS.B,
Zero
Cpn,
5/22/25
.
243
17
991585964.UG.FTS.B,
28.98%,
5/22/25
..
457
480
991665672.UG.FTS.B,
28.98%,
5/22/25
..
608
629
991813221.UG.FTS.B,
29.49%,
5/22/25
..
116
118
991589676.UG.FTS.B,
29.49%,
5/23/25
..
774
–
991772210.UG.FTS.B,
28.98%,
5/24/25
..
2,734
375
991596209.UG.FTS.B,
29.49%,
5/24/25
..
899
957
991609299.UG.FTS.B,
29.49%,
5/24/25
..
1,256
1,325
991770465.UG.FTS.B,
29.49%,
5/24/25
..
74
78
991802443.UG.FTS.B,
29.49%,
5/24/25
..
268
282
991805657.UG.FTS.B,
29.49%,
6/03/25
..
362
377
991864584.UG.FTS.B,
29.49%,
6/03/25
..
104
81
991847043.UG.FTS.B,
29.49%,
6/04/25
..
494
401
991772904.UG.FTS.B,
19.99%,
6/05/25
..
122
127
991708239.UG.FTS.B,
28.98%,
6/05/25
..
139
106
991736771.UG.FTS.B,
28.98%,
6/05/25
..
179
185
991700073.UG.FTS.B,
29.49%,
6/05/25
..
197
25
991748176.UG.FTS.B,
29.49%,
6/05/25
..
82
5
991781338.UG.FTS.B,
29.49%,
6/05/25
..
819
54
991928851.UG.FTS.B,
Zero
Cpn,
6/06/25
.
1,877
130
991730286.UG.FTS.B,
22.97%,
6/06/25
..
3,282
2,371
991820156.UG.FTS.B,
28.98%,
6/06/25
..
649
486
991871855.UG.FTS.B,
28.98%,
6/06/25
..
87
64
991917174.UG.FTS.B,
28.98%,
6/06/25
..
157
116
991933771.UG.FTS.B,
29.49%,
6/06/25
..
200
147
991901076.UG.FTS.B,
27.99%,
6/07/25
..
261
18
991771961.UG.FTS.B,
29.49%,
6/07/25
..
140
147
991848358.UG.FTS.B,
29.49%,
6/07/25
..
233
244
991667408.UG.FTS.B,
17.97%,
7/02/25
..
126
128
991764922.UG.FTS.B,
28.98%,
7/05/25
..
118
123
991694848.UG.FTS.B,
29.49%,
7/05/25
..
996
1,033
991698089.UG.FTS.B,
28.98%,
7/16/25
..
131
87
991754815.UG.FTS.B,
29.49%,
7/24/25
..
79
84
991836618.UG.FTS.B,
15%,
8/01/25
.....
775
554
991655255.UG.FTS.B,
15.99%,
8/02/25
..
4,334
3,076
991922928.UG.FTS.B,
28.98%,
8/04/25
..
155
161
991907895.UG.FTS.B,
21.97%,
8/06/25
..
4,796
–
991700916.UG.FTS.B,
29.49%,
8/06/25
..
1,074
1,123
991762808.UG.FTS.B,
29.49%,
8/07/25
..
87
91
991664671.UG.FTS.B,
26.94%,
8/19/25
..
103
7
991645424.UG.FTS.B,
29.49%,
8/23/25
..
127
93
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991658758.UG.FTS.B,
Zero
Cpn,
8/24/25
.
$
88
$
6
991730761.UG.FTS.B,
28.98%,
8/24/25
..
125
131
991720650.UG.FTS.B,
Zero
Cpn,
9/05/25
.
1,483
104
991814652.UG.FTS.B,
29.49%,
9/05/25
..
80
84
991688747.UG.FTS.B,
28.98%,
9/16/25
..
87
91
991545568.UG.FTS.B,
29.49%,
9/16/25
..
1,082
1,143
991595841.UG.FTS.B,
29.49%,
9/17/25
..
140
146
991656357.UG.FTS.B,
29.49%,
9/17/25
..
332
263
991692468.UG.FTS.B,
29.49%,
9/17/25
..
158
165
991708117.UG.FTS.B,
29.49%,
9/17/25
..
1,393
1,442
991786433.UG.FTS.B,
20.46%,
9/21/25
..
117
119
991699663.UG.FTS.B,
21.98%,
9/22/25
..
99
101
991596886.UG.FTS.B,
29.49%,
9/24/25
..
174
182
991826636.UG.FTS.B,
19.99%,
10/03/25
.
687
81
991726591.UG.FTS.B,
28.98%,
10/03/25
.
192
133
991726248.UG.FTS.B,
21.46%,
10/08/25
.
141
143
991717340.UG.FTS.B,
25.95%,
10/17/25
.
167
–
991788566.UG.FTS.B,
29.49%,
10/21/25
.
94
98
991775324.UG.FTS.B,
29.49%,
10/23/25
.
511
–
991597711.UG.FTS.B,
28.98%,
10/24/25
.
156
11
991648967.UG.FTS.B,
29.49%,
10/24/25
.
108
80
991809155.UG.FTS.B,
17.99%,
10/25/25
.
679
471
991738710.UG.FTS.B,
28.98%,
11/04/25
.
204
25
991731697.UG.FTS.B,
29.49%,
11/05/25
.
192
141
991820976.UG.FTS.B,
29.49%,
11/05/25
.
453
472
991822456.UG.FTS.B,
29.49%,
11/05/25
.
105
13
991755928.UG.FTS.B,
29.49%,
11/06/25
.
217
155
991657177.UG.FTS.B,
28.98%,
11/17/25
.
2,320
2,403
991684690.UG.FTS.B,
28.98%,
11/17/25
.
296
–
991647827.UG.FTS.B,
29.49%,
11/23/25
.
129
134
991695320.UG.FTS.B,
29.49%,
12/05/25
.
97
22
991723599.UG.FTS.B,
29.49%,
12/06/25
.
94
22
991730563.UG.FTS.B,
29.49%,
12/06/25
.
418
281
991735485.UG.FTS.B,
28.98%,
12/07/25
.
134
92
991585152.UG.FTS.B,
Zero
Cpn,
1/17/26
.
108
7
991555378.UG.FTS.B,
29.49%,
1/17/26
..
114
115
991579988.UG.FTS.B,
29.49%,
1/17/26
..
141
150
991656796.UG.FTS.B,
29.49%,
1/22/26
..
350
362
991634123.UG.FTS.B,
Zero
Cpn,
1/24/26
.
1,473
104
991659287.UG.FTS.B,
29.49%,
1/24/26
..
164
173
991712219.UG.FTS.B,
28.98%,
2/05/26
..
823
845
991757074.UG.FTS.B,
29.49%,
2/05/26
..
119
122
991814320.UG.FTS.B,
29.49%,
2/05/26
..
337
351
991735384.UG.FTS.B,
29.49%,
2/06/26
..
360
374
991802598.UG.FTS.B,
21.98%,
2/07/26
..
2,111
423
991716805.UG.FTS.B,
22.97%,
2/08/26
..
365
368
991686979.UG.FTS.B,
29.49%,
4/04/26
..
695
35
991726688.UG.FTS.B,
28.98%,
4/06/26
..
98
65
991709780.UG.FTS.B,
27.99%,
5/03/26
..
217
10
991708261.UG.FTS.B,
29.49%,
5/04/26
..
668
456
991699796.UG.FTS.B,
29.49%,
5/06/26
..
108
–
991722674.UG.FTS.B,
28.98%,
6/07/26
..
101
106
991576855.UG.FTS.B,
28.98%,
7/17/26
..
1,959
1,317
991571658.UG.FTS.B,
28.98%,
9/15/26
..
164
108
991650190.UG.FTS.B,
29.49%,
10/24/26
.
300
21
991658250.UG.FTS.B,
16.99%,
1/20/27
..
1,444
1,477
991607046.UG.FTS.B,
21.99%,
1/20/27
..
3,458
3,607
991611832.UG.FTS.B,
16.99%,
1/29/27
..
1,212
142
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
95
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
991624113.UG.FTS.B,
17.99%,
1/29/27
..
$
403
$
407
991664785.UG.FTS.B,
18.98%,
1/29/27
..
249
262
991676761.UG.FTS.B,
16.99%,
2/02/27
..
872
874
991721939.UG.FTS.B,
16.99%,
2/02/27
..
1,064
1,109
991734117.UG.FTS.B,
17.99%,
2/02/27
..
351
361
991734377.UG.FTS.B,
17.99%,
2/02/27
..
29
29
991684567.UG.FTS.B,
15.99%,
2/03/27
..
344
355
991894965.UG.FTS.B,
16.99%,
2/03/27
..
4,516
4,675
991757545.UG.FTS.B,
28.98%,
2/06/27
..
191
122
991663324.UG.FTS.B,
22.36%,
5/29/27
..
137
144
991753799.UG.FTS.B,
Zero
Cpn,
9/05/27
.
–
–
991648817.UG.FTS.B,
Zero
Cpn,
10/17/27
–
–
991594819.UG.FTS.B,
28.48%,
10/17/27
.
–
–
991643179.UG.FTS.B,
29.48%,
10/17/27
.
–
–
991830029.UG.FTS.B,
28.98%,
11/06/27
.
–
–
991619508.UG.FTS.B,
29.49%,
11/17/27
.
–
–
991678457.UG.FTS.B,
19.99%,
11/30/27
.
480
261
991733288.UG.FTS.B,
Zero
Cpn,
12/05/27
–
–
991757963.UG.FTS.B,
29.49%,
12/05/27
.
–
–
991884438.UG.FTS.B,
29.49%,
12/05/27
.
–
–
991705248.UG.FTS.B,
28.48%,
12/06/27
.
–
–
991803197.UG.FTS.B,
28.98%,
12/07/27
.
–
–
991925769.UG.FTS.B,
29.49%,
12/07/27
.
–
–
991607820.UG.FTS.B,
29.48%,
12/15/27
.
–
–
991764374.UG.FTS.B,
Zero
Cpn,
12/16/27
5
–
991568266.UG.FTS.B,
29.46%,
12/17/27
.
–
–
991773527.UG.FTS.B,
28.48%,
1/05/28
..
–
–
991816825.UG.FTS.B,
29.49%,
1/05/28
..
–
–
991646401.UG.FTS.B,
29.49%,
1/20/28
..
41
34
991683577.UG.FTS.B,
28.48%,
1/21/28
..
–
–
991824433.UG.FTS.B,
29.49%,
1/21/28
..
–
–
991695683.UG.FTS.B,
Zero
Cpn,
2/05/28
.
–
–
991693368.UG.FTS.B,
29.49%,
2/05/28
..
–
–
991927325.UG.FTS.B,
29.49%,
2/05/28
..
–
–
991760060.UG.FTS.B,
29.48%,
2/17/28
..
–
–
991858699.UG.FTS.B,
29.49%,
3/07/28
..
43
37
991759963.UG.FTS.B,
29.49%,
3/18/28
..
31
28
991719643.UG.FTS.B,
29.49%,
3/22/28
..
150
93
991660055.UG.FTS.B,
29.49%,
4/17/28
..
1
1
991715507.UG.FTS.B,
Zero
Cpn,
6/04/28
.
4
–
991581013.UG.FTS.B,
Zero
Cpn,
6/17/28
.
12
1
991650009.UG.FTS.B,
Zero
Cpn,
6/19/28
.
2
–
991669440.UG.FTS.B,
29.49%,
7/20/28
..
–
–
991782171.UG.FTS.B,
28.98%,
7/22/28
..
–
–
991912585.UG.FTS.B,
29.49%,
8/03/28
..
6
–
991797851.UG.FTS.B,
29.49%,
8/06/28
..
4
3
991777657.UG.FTS.B,
Zero
Cpn,
8/18/28
.
12
1
991684401.UG.FTS.B,
29.49%,
8/22/28
..
–
–
991717980.UG.FTS.B,
29.49%,
8/22/28
..
–
–
991844255.UG.FTS.B,
16.99%,
9/02/28
..
–
–
991917590.UG.FTS.B,
29.49%,
9/03/28
..
–
–
991925637.UG.FTS.B,
21.46%,
9/04/28
..
6
–
991732982.UG.FTS.B,
Zero
Cpn,
9/18/28
.
19
1
991652825.UG.FTS.B,
28.98%,
9/22/28
..
–
–
991777453.UG.FTS.B,
29.49%,
9/23/28
..
13
–
991710032.UG.FTS.B,
28.98%,
10/05/28
.
9
1
991891596.UG.FTS.B,
29.49%,
10/05/28
.
19
–
991703094.UG.FTS.B,
29.49%,
10/06/28
.
5
1
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
991745671.UG.FTS.B,
29.48%,
10/07/28
.
$
5
$
5
991573325.UG.FTS.B,
29.49%,
10/17/28
.
6
6
991704902.UG.FTS.B,
28.98%,
10/18/28
.
4
4
991630410.UG.FTS.B,
22.36%,
10/23/28
.
993
531
991808749.UG.FTS.B,
28.98%,
10/23/28
.
–
–
991711538.UG.FTS.B,
28.98%,
10/24/28
.
15
–
991598640.UG.FTS.B,
29.49%,
10/24/28
.
7
7
991777410.UG.FTS.B,
29.49%,
10/24/28
.
18
16
991681442.UG.FTS.B,
15%,
11/02/28
....
2
2
991915193.UG.FTS.B,
29.49%,
11/04/28
.
–
–
991704518.UG.FTS.B,
29.49%,
11/05/28
.
–
–
991812942.UG.FTS.B,
29.49%,
11/05/28
.
7
4
991806859.UG.FTS.B,
29.49%,
11/06/28
.
7
7
991761553.UG.FTS.B,
29.48%,
11/07/28
.
4
4
991735777.UG.FTS.B,
29.49%,
11/07/28
.
3
3
991741235.UG.FTS.B,
19.99%,
11/15/28
.
4
4
991768418.UG.FTS.B,
29.49%,
11/16/28
.
9
1
991760132.UG.FTS.B,
Zero
Cpn,
11/17/28
28
2
991583492.UG.FTS.B,
19.99%,
11/17/28
.
4
4
991589726.UG.FTS.B,
19.99%,
11/17/28
.
2
2
991561854.UG.FTS.B,
29.49%,
11/17/28
.
4
4
991569026.UG.FTS.B,
29.49%,
11/17/28
.
14
2
991663176.UG.FTS.B,
29.49%,
11/17/28
.
5
5
991681470.UG.FTS.B,
29.49%,
11/18/28
.
7
7
991663564.UG.FTS.B,
29.49%,
11/19/28
.
280
19
991767100.UG.FTS.B,
27.99%,
11/20/28
.
2
2
991679075.UG.FTS.B,
28.98%,
11/20/28
.
4
4
991700691.UG.FTS.B,
28.98%,
11/20/28
.
–
–
991762599.UG.FTS.B,
Zero
Cpn,
11/21/28
21
1
991623495.UG.FTS.B,
29.49%,
11/21/28
.
23
24
991670699.UG.FTS.B,
29.49%,
11/21/28
.
7
7
991714756.UG.FTS.B,
29.49%,
11/21/28
.
39
1
991677136.UG.FTS.B,
29.48%,
11/22/28
.
6
6
991722230.UG.FTS.B,
29.49%,
11/22/28
.
21
21
991686193.UG.FTS.B,
Zero
Cpn,
11/23/28
37
3
991622450.UG.FTS.B,
29.49%,
11/23/28
.
1
1
991640433.UG.FTS.B,
29.49%,
11/23/28
.
7
7
991637847.UG.FTS.B,
28.98%,
11/24/28
.
5
5
991732352.UG.FTS.B,
28.98%,
11/24/28
.
2
2
991715282.UG.FTS.B,
29.49%,
3/06/32
..
3
4
991763220.UG.FTS.B,
29.49%,
3/07/32
..
15
15
558,029
Upstart
Network,
Inc.
L1668275.UP.FTS.B,
5.93%,
9/14/24
....
1,039
1,030
L1708965.UP.FTS.B,
6.03%,
9/14/24
....
552
548
L1711338.UP.FTS.B,
7.31%,
9/14/24
.....
2,354
2,346
FW1711179.UP.FTS.B,
8.08%,
9/14/24
...
2,818
2,812
L1710349.UP.FTS.B,
8.75%,
9/14/24
....
1,668
1,665
L1709609.UP.FTS.B,
9.38%,
9/14/24
....
1,961
1,957
L1709151.UP.FTS.B,
12.24%,
9/14/24
....
6,209
6,207
L1709421.UP.FTS.B,
13.37%,
9/14/24
....
1,370
1,369
L1709684.UP.FTS.B,
13.76%,
9/14/24
....
686
686
L1709128.UP.FTS.B,
16.69%,
9/14/24
....
343
345
L1710058.UP.FTS.B,
17.29%,
9/14/24
....
1,246
1,253
L1710277.UP.FTS.B,
18.02%,
9/14/24
....
5,548
5,578
L1708735.UP.FTS.B,
18.16%,
9/14/24
....
1,825
1,834
L1712571.UP.FTS.B,
19.22%,
9/14/24
....
556
559
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1710755.UP.FTS.B,
19.46%,
9/14/24
....
$
1,844
$
1,858
L1711631.UP.FTS.B,
20.05%,
9/14/24
....
785
787
L1701584.UP.FTS.B,
21.4%,
9/14/24
....
808
810
L1709086.UP.FTS.B,
21.87%,
9/14/24
....
2,609
2,623
L1709006.UP.FTS.B,
22.7%,
9/14/24
....
1,409
206
L1712071.UP.FTS.B,
22.99%,
9/14/24
....
837
842
L1711537.UP.FTS.B,
23.1%,
9/14/24
.....
685
690
L1711075.UP.FTS.B,
23.16%,
9/14/24
....
571
574
L1709547.UP.FTS.B,
23.36%,
9/14/24
....
3,071
938
L1709631.UP.FTS.B,
24.23%,
9/14/24
....
2,305
2,318
FW1710815.UP.FTS.B,
26.35%,
9/14/24
..
555
40
FW1709118.UP.FTS.B,
27.71%,
9/14/24
..
791
796
FW1710694.UP.FTS.B,
29.46%,
9/14/24
..
8,029
8,073
FW1710062.UP.FTS.B,
30.06%,
9/14/24
..
728
729
L1873274.UP.FTS.B,
6.44%,
10/18/24
....
2,484
2,467
L1874011.UP.FTS.B,
6.93%,
10/18/24
....
4,419
612
FW1874507.UP.FTS.B,
7.36%,
10/18/24
..
1,074
1,071
L1873016.UP.FTS.B,
8.3%,
10/18/24
....
1,445
1,442
L1873058.UP.FTS.B,
8.3%,
10/18/24
....
1,789
1,785
L1873371.UP.FTS.B,
8.48%,
10/18/24
....
4,342
4,334
L1873876.UP.FTS.B,
8.87%,
10/18/24
....
6,802
951
FW1874503.UP.FTS.B,
9.4%,
10/18/24
...
3,162
3,152
L1873457.UP.FTS.B,
9.58%,
10/18/24
....
366
365
L1873276.UP.FTS.B,
10.26%,
10/18/24
...
2,943
2,934
L1873969.UP.FTS.B,
10.92%,
10/18/24
...
370
370
L1873212.UP.FTS.B,
11.39%,
10/18/24
...
5,954
5,817
L1872565.UP.FTS.B,
13.63%,
10/18/24
...
1,897
1,894
FW1873666.UP.FTS.B,
14.61%,
10/18/24
.
498
496
L1873890.UP.FTS.B,
14.95%,
10/18/24
...
845
851
L1873908.UP.FTS.B,
15.55%,
10/18/24
...
579
582
L1873474.UP.FTS.B,
16.06%,
10/18/24
...
1,086
1,092
L1873316.UP.FTS.B,
16.33%,
10/18/24
...
1,280
1,291
FW1873590.UP.FTS.B,
17.67%,
10/18/24
.
3,533
3,562
FW1874334.UP.FTS.B,
18.25%,
10/18/24
.
3,359
3,377
L1873935.UP.FTS.B,
18.25%,
10/18/24
...
1,167
1,176
L1869487.UP.FTS.B,
18.66%,
10/18/24
...
2,381
2,394
L1874319.UP.FTS.B,
19.26%,
10/18/24
...
2,416
2,430
FW1859012.UP.FTS.B,
19.54%,
10/18/24
.
5,994
6,028
L1873264.UP.FTS.B,
20.49%,
10/18/24
...
725
727
L1873242.UP.FTS.B,
21.35%,
10/18/24
...
1,144
1,148
L1872932.UP.FTS.B,
21.9%,
10/18/24
....
7,687
7,721
L1873367.UP.FTS.B,
22.09%,
10/18/24
...
571
575
L1873736.UP.FTS.B,
22.12%,
10/18/24
...
4,085
4,094
L1873171.UP.FTS.B,
22.25%,
10/18/24
...
818
823
FW1873087.UP.FTS.B,
22.36%,
10/18/24
.
819
823
L1873179.UP.FTS.B,
22.76%,
10/18/24
...
891
856
L1874384.UP.FTS.B,
23.32%,
10/18/24
...
546
544
L1874136.UP.FTS.B,
23.45%,
10/18/24
...
1,443
412
L1874372.UP.FTS.B,
23.49%,
10/18/24
...
886
64
FW1873053.UP.FTS.B,
23.65%,
10/18/24
.
910
915
L1872590.UP.FTS.B,
23.91%,
10/18/24
...
1,194
1,200
FW1874061.UP.FTS.B,
24.44%,
10/18/24
.
368
369
L1873402.UP.FTS.B,
25.1%,
10/18/24
....
3,618
258
FW1866558.UP.FTS.B,
27.33%,
10/18/24
.
2,131
2,144
FW1873960.UP.FTS.B,
28.04%,
10/18/24
.
147
146
FW1873200.UP.FTS.B,
28.1%,
10/18/24
..
1,072
1,079
FW1870326.UP.FTS.B,
28.36%,
10/18/24
.
4,298
4,324
FW1874036.UP.FTS.B,
28.84%,
10/18/24
.
1,045
1,048
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW1873386.UP.FTS.B,
29.18%,
10/18/24
.
$
437
$
438
L1873862.UP.FTS.B,
8.52%,
10/19/24
....
724
723
L1874133.UP.FTS.B,
16.04%,
10/21/24
...
1,937
1,953
L2009164.UP.FTS.B,
7.47%,
11/09/24
....
3,869
3,839
L2007742.UP.FTS.B,
8.31%,
11/09/24
....
975
972
L2009147.UP.FTS.B,
8.62%,
11/09/24
....
1,012
69
FW2006255.UP.FTS.B,
8.72%,
11/09/24
..
1,017
1,014
L2006429.UP.FTS.B,
9.93%,
11/09/24
....
19,774
19,717
L2006357.UP.FTS.B,
10.1%,
11/09/24
....
237
235
FW2005536.UP.FTS.B,
10.27%,
11/09/24
.
1,587
1,582
L2009057.UP.FTS.B,
10.3%,
11/09/24
....
4,534
4,519
L2007334.UP.FTS.B,
10.62%,
11/09/24
...
2,439
336
FW2006816.UP.FTS.B,
10.79%,
11/09/24
.
3,139
3,129
FW2008742.UP.FTS.B,
11.03%,
11/09/24
.
4,851
674
L2009390.UP.FTS.B,
11.11%,
11/09/24
...
2,717
2,712
L2007022.UP.FTS.B,
11.29%,
11/09/24
...
801
799
L1980258.UP.FTS.B,
12.16%,
11/09/24
...
7,757
7,724
L2000304.UP.FTS.B,
13.97%,
11/09/24
...
1,679
1,676
L2008598.UP.FTS.B,
14.12%,
11/09/24
...
1,231
1,229
L2009600.UP.FTS.B,
14.49%,
11/09/24
...
1,795
1,798
FW2004099.UP.FTS.B,
15.18%,
11/09/24
.
1,241
1,248
L2009870.UP.FTS.B,
15.75%,
11/09/24
...
1,247
1,245
L2005874.UP.FTS.B,
15.93%,
11/09/24
...
7,080
7,119
L1964575.UP.FTS.B,
16.42%,
11/09/24
...
837
841
L2006407.UP.FTS.B,
16.56%,
11/09/24
...
3,351
3,369
L2009557.UP.FTS.B,
16.56%,
11/09/24
...
2,512
2,526
FW2006915.UP.FTS.B,
17.05%,
11/09/24
.
841
845
FW2008245.UP.FTS.B,
17.41%,
11/09/24
.
2,108
2,120
L2009227.UP.FTS.B,
17.41%,
11/09/24
...
1,476
1,484
FW2006977.UP.FTS.B,
17.62%,
11/09/24
.
2,112
2,124
FW2008456.UP.FTS.B,
17.88%,
11/09/24
.
331
327
FW2008385.UP.FTS.B,
19.08%,
11/09/24
.
1,086
1,089
FW2009194.UP.FTS.B,
19.65%,
11/09/24
.
1,289
1,296
L2004937.UP.FTS.B,
19.9%,
11/09/24
....
2,660
2,666
L2007765.UP.FTS.B,
19.9%,
11/09/24
....
2,939
2,948
L2009435.UP.FTS.B,
20.15%,
11/09/24
...
7,114
7,127
L2004417.UP.FTS.B,
20.16%,
11/09/24
...
1,192
1,196
L2008874.UP.FTS.B,
20.27%,
11/09/24
...
4,285
4,292
L2007505.UP.FTS.B,
20.32%,
11/09/24
...
1,382
1,390
L2006510.UP.FTS.B,
20.49%,
11/09/24
...
2,560
1,565
L2010279.UP.FTS.B,
20.87%,
11/09/24
...
1,626
1,621
L2008398.UP.FTS.B,
20.91%,
11/09/24
...
1,301
1,304
L2004915.UP.FTS.B,
21%,
11/09/24
.....
4,930
1,392
L2009328.UP.FTS.B,
21.06%,
11/09/24
...
738
743
L2009663.UP.FTS.B,
21.46%,
11/09/24
...
2,197
2,194
L2008922.UP.FTS.B,
22.21%,
11/09/24
...
877
878
L2009367.UP.FTS.B,
22.33%,
11/09/24
...
3,949
3,957
L2009655.UP.FTS.B,
22.54%,
11/09/24
...
1,758
1,761
L2010143.UP.FTS.B,
22.58%,
11/09/24
...
961
963
FW2003014.UP.FTS.B,
22.75%,
11/09/24
.
7,705
7,720
L2007564.UP.FTS.B,
23.08%,
11/09/24
...
3,786
275
FW2008479.UP.FTS.B,
24.13%,
11/09/24
.
1,866
1,853
FW2009937.UP.FTS.B,
26.34%,
11/09/24
.
1,613
1,603
FW2005316.UP.FTS.B,
26.93%,
11/09/24
.
455
456
FW2008048.UP.FTS.B,
28.27%,
11/09/24
.
459
460
FW2008337.UP.FTS.B,
28.31%,
11/09/24
.
2,192
313
FW2008565.UP.FTS.B,
28.92%,
11/09/24
.
1,875
1,873
L2077512.UP.FTS.B,
6.51%,
11/19/24
....
1,918
1,904
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
97
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2077314.UP.FTS.B,
7.63%,
11/19/24
....
$
2,320
$
2,303
L2079482.UP.FTS.B,
7.7%,
11/19/24
.....
2,521
2,516
FW2078418.UP.FTS.B,
7.82%,
11/19/24
..
19,387
19,349
L2077413.UP.FTS.B,
8.09%,
11/19/24
....
1,587
1,582
L2077593.UP.FTS.B,
8.69%,
11/19/24
....
1,957
1,953
L2077781.UP.FTS.B,
10.54%,
11/19/24
...
861
859
L2078215.UP.FTS.B,
10.8%,
11/19/24
....
2,949
2,944
L2077816.UP.FTS.B,
11%,
11/19/24
.....
479
478
L2077041.UP.FTS.B,
11.38%,
11/19/24
...
1,986
1,985
L2080776.UP.FTS.B,
11.71%,
11/19/24
...
3,496
3,490
FW2077955.UP.FTS.B,
11.92%,
11/19/24
.
5
5
L2078813.UP.FTS.B,
13.69%,
11/19/24
...
2,847
2,846
L2076941.UP.FTS.B,
13.71%,
11/19/24
...
5,810
428
L2078440.UP.FTS.B,
13.79%,
11/19/24
...
1,219
1,212
L2077920.UP.FTS.B,
15.31%,
11/19/24
...
2,072
2,088
L2079064.UP.FTS.B,
15.95%,
11/19/24
...
2,231
2,144
FW2076817.UP.FTS.B,
16.69%,
11/19/24
.
629
634
L2077340.UP.FTS.B,
17.78%,
11/19/24
...
3,717
1,107
FW2078600.UP.FTS.B,
18.83%,
11/19/24
.
427
430
L2077669.UP.FTS.B,
19.72%,
11/19/24
...
438
421
FW2076493.UP.FTS.B,
20.14%,
11/19/24
.
1,078
1,087
L2070757.UP.FTS.B,
20.15%,
11/19/24
...
776
783
L2077506.UP.FTS.B,
20.58%,
11/19/24
...
2,532
2,544
L2080270.UP.FTS.B,
21.47%,
11/19/24
...
1,743
1,758
FW2078088.UP.FTS.B,
22.1%,
11/19/24
..
504
501
FW2079771.UP.FTS.B,
22.21%,
11/19/24
.
2,191
2,210
L2074944.UP.FTS.B,
23.05%,
11/19/24
...
1,962
1,967
FW2078990.UP.FTS.B,
23.53%,
11/19/24
.
2,029
2,034
FW2078899.UP.FTS.B,
24.04%,
11/19/24
.
4,012
289
FW2080736.UP.FTS.B,
25.04%,
11/19/24
.
256
253
L2076355.UP.FTS.B,
25.17%,
11/19/24
...
3,036
3,052
FW2077958.UP.FTS.B,
27.77%,
11/19/24
.
4,878
4,692
L2009735.UP.FTS.B,
22.61%,
11/21/24
...
2,325
2,328
L2006884.UP.FTS.B,
18.86%,
11/23/24
...
4,647
659
L2197817.UP.FTS.B,
6.54%,
12/07/24
....
2,473
2,453
FW2196231.UP.FTS.B,
11.5%,
12/07/24
..
5,160
5,144
L2196723.UP.FTS.B,
12.12%,
12/07/24
...
2,810
2,801
L2196919.UP.FTS.B,
12.98%,
12/07/24
...
1,656
464
L2199259.UP.FTS.B,
13.19%,
12/07/24
...
1,962
1,956
FW2199236.UP.FTS.B,
13.4%,
12/07/24
..
655
653
L2199973.UP.FTS.B,
16.17%,
12/07/24
...
1,340
1,345
L2198109.UP.FTS.B,
16.63%,
12/07/24
...
506
140
L2197668.UP.FTS.B,
17.17%,
12/07/24
...
1,126
1,130
FW2197769.UP.FTS.B,
17.83%,
12/07/24
.
1,431
54
L2196102.UP.FTS.B,
17.88%,
12/07/24
...
6,201
239
L2199581.UP.FTS.B,
19.33%,
12/07/24
...
825
828
FW2199717.UP.FTS.B,
20.13%,
12/07/24
.
2,305
2,303
L2198118.UP.FTS.B,
20.43%,
12/07/24
...
924
927
L2196647.UP.FTS.B,
21.51%,
12/07/24
...
3,034
1,835
L2199295.UP.FTS.B,
21.7%,
12/07/24
....
1,166
1,165
L2199073.UP.FTS.B,
21.87%,
12/07/24
...
1,168
1,172
L2195775.UP.FTS.B,
22.71%,
12/07/24
...
792
222
L2197271.UP.FTS.B,
22.76%,
12/07/24
...
4,292
4,276
L2196613.UP.FTS.B,
23.35%,
12/07/24
...
3,139
3,136
FW2195695.UP.FTS.B,
24.83%,
12/07/24
.
2,344
2,341
FW2195888.UP.FTS.B,
24.84%,
12/07/24
.
368
366
L2201298.UP.FTS.B,
6.04%,
12/08/24
....
710
704
L2203520.UP.FTS.B,
6.61%,
12/08/24
....
7,589
7,528
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2201265.UP.FTS.B,
7.44%,
12/08/24
..
$
2,908
$
2,898
L2200896.UP.FTS.B,
7.68%,
12/08/24
....
2,915
2,900
L2200163.UP.FTS.B,
8.73%,
12/08/24
....
3,151
3,140
L2202574.UP.FTS.B,
9.1%,
12/08/24
....
3,161
3,150
FW2206887.UP.FTS.B,
9.22%,
12/08/24
..
4,242
4,221
L2202371.UP.FTS.B,
9.29%,
12/08/24
....
633
630
L2202647.UP.FTS.B,
9.47%,
12/08/24
....
1,470
1,465
L2201633.UP.FTS.B,
10.05%,
12/08/24
...
4,121
4,106
L2202275.UP.FTS.B,
10.28%,
12/08/24
...
8,512
8,483
L2206909.UP.FTS.B,
11.8%,
12/08/24
....
1,292
1,289
L2205399.UP.FTS.B,
11.81%,
12/08/24
...
429
428
L2201373.UP.FTS.B,
12.48%,
12/08/24
...
1,300
1,297
L2201983.UP.FTS.B,
12.68%,
12/08/24
...
4,827
353
L2206888.UP.FTS.B,
12.72%,
12/08/24
...
4,604
335
L2200458.UP.FTS.B,
12.89%,
12/08/24
...
2,591
2,581
L2200431.UP.FTS.B,
13.28%,
12/08/24
...
3,177
231
L2202863.UP.FTS.B,
13.37%,
12/08/24
...
2,607
2,600
L2204453.UP.FTS.B,
13.74%,
12/08/24
...
1,314
1,311
L2204038.UP.FTS.B,
14.23%,
12/08/24
...
4,363
4,351
FW2200839.UP.FTS.B,
14.26%,
12/08/24
.
2,579
2,566
L2201794.UP.FTS.B,
14.37%,
12/08/24
...
3,743
3,759
L2204310.UP.FTS.B,
14.38%,
12/08/24
...
440
439
L2203131.UP.FTS.B,
15.07%,
12/08/24
...
1,489
1,486
FW2198905.UP.FTS.B,
15.38%,
12/08/24
.
2,220
2,229
L2192030.UP.FTS.B,
15.79%,
12/08/24
...
3,385
3,400
L2199002.UP.FTS.B,
16.29%,
12/08/24
...
1,057
1,061
L2201862.UP.FTS.B,
17%,
12/08/24
.....
2,267
2,271
L2202850.UP.FTS.B,
17.99%,
12/08/24
...
867
870
L2202296.UP.FTS.B,
18.33%,
12/08/24
...
855
858
FW2201612.UP.FTS.B,
18.99%,
12/08/24
.
883
886
L2206681.UP.FTS.B,
19.32%,
12/08/24
...
1,291
1,286
L2204182.UP.FTS.B,
19.36%,
12/08/24
...
4,124
4,142
L2203811.UP.FTS.B,
19.85%,
12/08/24
...
1,396
1,398
L2201390.UP.FTS.B,
19.92%,
12/08/24
...
6,042
1,769
L2201524.UP.FTS.B,
19.94%,
12/08/24
...
2,794
2,786
FW2206245.UP.FTS.B,
20.03%,
12/08/24
.
783
218
L2203066.UP.FTS.B,
20.07%,
12/08/24
...
8,045
8,059
FW2201750.UP.FTS.B,
20.37%,
12/08/24
.
923
928
L2201072.UP.FTS.B,
20.37%,
12/08/24
...
2,200
159
FW2203151.UP.FTS.B,
21.13%,
12/08/24
.
1,951
1,951
L2202392.UP.FTS.B,
21.41%,
12/08/24
...
2,095
2,095
L2206735.UP.FTS.B,
21.46%,
12/08/24
...
2,618
718
L2180897.UP.FTS.B,
21.81%,
12/08/24
...
3,730
3,730
FW2201886.UP.FTS.B,
21.86%,
12/08/24
.
713
711
FW2206827.UP.FTS.B,
22.71%,
12/08/24
.
2,351
2,351
L2202398.UP.FTS.B,
23.19%,
12/08/24
...
3,303
3,303
FW2206155.UP.FTS.B,
23.2%,
12/08/24
..
900
899
FW2206719.UP.FTS.B,
24.2%,
12/08/24
..
5,673
5,673
FW2176932.UP.FTS.B,
25.88%,
12/08/24
.
1,210
1,206
FW2201104.UP.FTS.B,
26.62%,
12/08/24
.
485
483
FW2201792.UP.FTS.B,
27.21%,
12/08/24
.
1,701
1,702
FW2201560.UP.FTS.B,
28.51%,
12/08/24
.
1,031
1,031
FW2204026.UP.FTS.B,
28.52%,
12/08/24
.
3,926
3,927
FW2205439.UP.FTS.B,
29.01%,
12/08/24
.
1,440
1,437
L2195358.UP.FTS.B,
20.15%,
12/16/24
...
463
465
L2202614.UP.FTS.B,
12.88%,
12/19/24
...
3,494
3,485
FW2198017.UP.FTS.B,
23.08%,
12/20/24
.
1,426
1,425
L2198032.UP.FTS.B,
20.55%,
12/22/24
...
1,865
1,864
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2203707.UP.FTS.B,
26.53%,
12/23/24
.
$
1,865
$
1,863
L2413126.UP.FTS.B,
5.21%,
1/11/25
.....
1,742
1,728
L2411924.UP.FTS.B,
5.26%,
1/11/25
.....
2,614
2,593
L2411777.UP.FTS.B,
5.56%,
1/11/25
.....
3,934
3,899
L2411090.UP.FTS.B,
5.74%,
1/11/25
.....
3,062
3,037
L2408096.UP.FTS.B,
6%,
1/11/25
.......
1,803
1,795
L2412107.UP.FTS.B,
6.11%,
1/11/25
.....
1,401
808
L2413813.UP.FTS.B,
6.18%,
1/11/25
.....
1,402
807
L2413053.UP.FTS.B,
6.21%,
1/11/25
.....
2,635
2,613
L2408176.UP.FTS.B,
6.75%,
1/11/25
.....
310
307
L2412917.UP.FTS.B,
6.87%,
1/11/25
.....
1,325
1,314
L2412167.UP.FTS.B,
7.12%,
1/11/25
.....
1,770
1,756
L2410776.UP.FTS.B,
7.38%,
1/11/25
.....
2,661
2,650
L2413637.UP.FTS.B,
7.76%,
1/11/25
.....
1,367
382
L2402281.UP.FTS.B,
7.89%,
1/11/25
.....
8,098
8,028
FW2408203.UP.FTS.B,
8.04%,
1/11/25
...
1,337
1,332
L2407274.UP.FTS.B,
8.11%,
1/11/25
.....
945
941
FW2413171.UP.FTS.B,
8.15%,
1/11/25
...
1,339
1,333
L2412008.UP.FTS.B,
8.58%,
1/11/25
.....
4,480
4,462
FW2408763.UP.FTS.B,
8.69%,
1/11/25
...
2,874
2,859
L2407827.UP.FTS.B,
8.84%,
1/11/25
.....
1,611
1,605
L2410161.UP.FTS.B,
9.06%,
1/11/25
.....
899
896
L2407027.UP.FTS.B,
9.18%,
1/11/25
.....
2,025
2,017
L2411609.UP.FTS.B,
9.19%,
1/11/25
.....
900
896
L2408028.UP.FTS.B,
9.2%,
1/11/25
......
1,565
1,559
FW2412135.UP.FTS.B,
10.19%,
1/11/25
..
961
558
L2413510.UP.FTS.B,
10.29%,
1/11/25
....
7,491
7,462
L2411555.UP.FTS.B,
10.32%,
1/11/25
....
2,051
2,041
FW2412813.UP.FTS.B,
10.67%,
1/11/25
..
455
454
L2411669.UP.FTS.B,
10.84%,
1/11/25
....
912
909
FW2410432.UP.FTS.B,
10.89%,
1/11/25
..
2,281
2,274
L2411242.UP.FTS.B,
10.89%,
1/11/25
....
1,417
1,409
L2413320.UP.FTS.B,
11.28%,
1/11/25
....
9,151
9,117
FW2409055.UP.FTS.B,
12.38%,
1/11/25
..
502
500
L2412366.UP.FTS.B,
12.6%,
1/11/25
.....
462
461
L2408103.UP.FTS.B,
12.61%,
1/11/25
....
1,156
1,152
FW2412082.UP.FTS.B,
12.62%,
1/11/25
..
2,326
2,316
L2410850.UP.FTS.B,
13.07%,
1/11/25
....
696
694
L2412558.UP.FTS.B,
13.17%,
1/11/25
....
945
69
L2410120.UP.FTS.B,
14.05%,
1/11/25
....
935
933
FW2412033.UP.FTS.B,
14.09%,
1/11/25
..
1,505
1,499
L2410413.UP.FTS.B,
14.16%,
1/11/25
....
7,057
7,063
L2410798.UP.FTS.B,
15.99%,
1/11/25
....
4,746
4,764
FW2413492.UP.FTS.B,
16.11%,
1/11/25
..
706
709
L2407096.UP.FTS.B,
16.55%,
1/11/25
....
11,205
11,247
L2409614.UP.FTS.B,
17.29%,
1/11/25
....
2,916
2,926
L2411442.UP.FTS.B,
17.42%,
1/11/25
....
9,115
9,150
L2409234.UP.FTS.B,
17.51%,
1/11/25
....
1,440
1,445
L2407062.UP.FTS.B,
17.52%,
1/11/25
....
816
819
L2411946.UP.FTS.B,
17.59%,
1/11/25
....
4,179
4,195
L2412453.UP.FTS.B,
19.73%,
1/11/25
....
14,666
14,679
L2412506.UP.FTS.B,
19.8%,
1/11/25
.....
4,606
4,610
L2407256.UP.FTS.B,
20.21%,
1/11/25
....
3,428
3,425
L2411253.UP.FTS.B,
20.46%,
1/11/25
....
981
985
FW2407665.UP.FTS.B,
20.61%,
1/11/25
..
12,281
12,271
FW2388641.UP.FTS.B,
21.09%,
1/11/25
..
493
495
FW2411559.UP.FTS.B,
21.14%,
1/11/25
..
1,233
1,237
L2413329.UP.FTS.B,
21.38%,
1/11/25
....
8,646
2,516
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2410058.UP.FTS.B,
22.27%,
1/11/25
....
$
5,198
$
5,214
L2413428.UP.FTS.B,
23.28%,
1/11/25
....
602
600
L2407636.UP.FTS.B,
23.33%,
1/11/25
....
554
552
FW2408676.UP.FTS.B,
24.16%,
1/11/25
..
2,226
2,217
FW2411482.UP.FTS.B,
24.41%,
1/11/25
..
3,810
3,806
FW2410949.UP.FTS.B,
25.16%,
1/11/25
..
768
765
FW2408865.UP.FTS.B,
25.5%,
1/11/25
...
437
430
FW2409120.UP.FTS.B,
26.65%,
1/11/25
..
2,982
430
FW2411088.UP.FTS.B,
28.45%,
1/11/25
..
1,038
1,037
FW2412560.UP.FTS.B,
28.48%,
1/11/25
..
2,804
2,801
FW2412871.UP.FTS.B,
28.66%,
1/11/25
..
1,040
1,039
FW2410693.UP.FTS.B,
28.78%,
1/11/25
..
4,297
4,279
FW2408892.UP.FTS.B,
33.73%,
1/11/25
..
2,555
2,545
L2415563.UP.FTS.B,
5.17%,
1/12/25
....
3,167
3,141
L2415408.UP.FTS.B,
5.38%,
1/12/25
....
4,042
4,009
L2398487.UP.FTS.B,
5.43%,
1/12/25
....
15,257
15,135
L2418369.UP.FTS.B,
5.69%,
1/12/25
....
656
651
L2414426.UP.FTS.B,
5.8%,
1/12/25
.....
657
651
FW2419630.UP.FTS.B,
6.3%,
1/12/25
....
288
285
L2420304.UP.FTS.B,
6.48%,
1/12/25
....
1,107
1,097
L2419347.UP.FTS.B,
6.78%,
1/12/25
....
3,759
3,726
L2416428.UP.FTS.B,
6.81%,
1/12/25
....
883
876
FW2414692.UP.FTS.B,
6.84%,
1/12/25
...
998
274
L2418759.UP.FTS.B,
6.94%,
1/12/25
....
3,824
3,793
L2419328.UP.FTS.B,
7.52%,
1/12/25
....
3,108
3,083
L2415914.UP.FTS.B,
7.64%,
1/12/25
....
1,556
1,550
FW2418816.UP.FTS.B,
7.73%,
1/12/25
...
2,669
2,656
L2419589.UP.FTS.B,
7.74%,
1/12/25
....
6,675
6,641
FW2416518.UP.FTS.B,
8.11%,
1/12/25
...
2,231
2,223
L2417943.UP.FTS.B,
8.11%,
1/12/25
.....
2,230
2,223
L2414073.UP.FTS.B,
8.79%,
1/12/25
....
980
976
L2415019.UP.FTS.B,
8.85%,
1/12/25
....
898
894
L2416430.UP.FTS.B,
9.01%,
1/12/25
....
319
315
L2414074.UP.FTS.B,
9.04%,
1/12/25
....
6,748
6,715
L2417145.UP.FTS.B,
9.34%,
1/12/25
....
496
494
L2415812.UP.FTS.B,
9.44%,
1/12/25
....
2,422
2,414
FW2413836.UP.FTS.B,
10.39%,
1/12/25
..
1,128
1,124
L2396686.UP.FTS.B,
10.42%,
1/12/25
....
2,272
2,265
FW2416931.UP.FTS.B,
10.8%,
1/12/25
...
5,014
5,002
L2414847.UP.FTS.B,
11.02%,
1/12/25
....
5,032
5,010
L2414221.UP.FTS.B,
11.17%,
1/12/25
....
2,286
2,280
FW2416547.UP.FTS.B,
11.39%,
1/12/25
..
1,521
431
L2420369.UP.FTS.B,
11.76%,
1/12/25
....
7,861
7,822
FW2417716.UP.FTS.B,
18.03%,
1/12/25
..
1,201
1,207
L2418715.UP.FTS.B,
19.25%,
1/12/25
....
2,434
2,446
L2417349.UP.FTS.B,
20.05%,
1/12/25
....
962
966
L2417218.UP.FTS.B,
22.21%,
1/12/25
....
1,813
1,817
L2414519.UP.FTS.B,
22.88%,
1/12/25
....
1,648
1,648
L2414032.UP.FTS.B,
23.21%,
1/12/25
....
1,373
1,378
L2352635.UP.FTS.B,
23.27%,
1/12/25
....
3,706
3,705
L2412538.UP.FTS.B,
23.48%,
1/12/25
....
2,032
2,027
FW2414957.UP.FTS.B,
23.71%,
1/12/25
..
6,290
3,790
FW2414041.UP.FTS.B,
23.78%,
1/12/25
..
2,010
2,011
FW2416686.UP.FTS.B,
24.84%,
1/12/25
..
1,232
1,229
FW2414437.UP.FTS.B,
27.76%,
1/12/25
..
1,550
1,551
L2410557.UP.FTS.B,
26.28%,
1/14/25
....
1,282
1,281
L1711024.UP.FTS.B,
12.98%,
2/14/25
....
1,517
1,511
L1711489.UP.FTS.B,
18.07%,
2/14/25
....
2,336
2,339
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
99
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2631679.UP.FTS.B,
6.61%,
2/15/25
....
$
2,338
$
2,319
L2632890.UP.FTS.B,
6.77%,
2/15/25
....
4,684
4,645
L2634175.UP.FTS.B,
6.95%,
2/15/25
....
4,231
4,196
L2634533.UP.FTS.B,
8.5%,
2/15/25
.....
9,512
9,473
L2634613.UP.FTS.B,
8.55%,
2/15/25
....
3,323
3,310
L2633581.UP.FTS.B,
9.23%,
2/15/25
....
1,001
997
FW2634377.UP.FTS.B,
10%,
2/15/25
....
481
479
L2634177.UP.FTS.B,
15.21%,
2/15/25
....
1,100
1,104
L2636760.UP.FTS.B,
15.98%,
2/15/25
....
7,064
6,750
FW2634284.UP.FTS.B,
16.22%,
2/15/25
..
5,035
5,053
L2634751.UP.FTS.B,
16.31%,
2/15/25
....
957
954
L2631912.UP.FTS.B,
16.39%,
2/15/25
....
3,767
282
L2636882.UP.FTS.B,
16.54%,
2/15/25
....
405
400
L2634161.UP.FTS.B,
18.39%,
2/15/25
....
2,134
2,142
L2632627.UP.FTS.B,
20.79%,
2/15/25
....
5,199
5,194
L2634669.UP.FTS.B,
20.85%,
2/15/25
....
5,454
5,432
L2631763.UP.FTS.B,
20.93%,
2/15/25
....
4,523
4,540
FW2637244.UP.FTS.B,
22.65%,
2/15/25
..
526
526
FW2633708.UP.FTS.B,
25.99%,
2/15/25
..
3,499
3,495
FW2631136.UP.FTS.B,
27.13%,
2/15/25
..
803
796
FW2631651.UP.FTS.B,
27.52%,
2/15/25
..
3,534
3,530
FW2635191.UP.FTS.B,
29%,
2/15/25
....
2,661
403
FW2631826.UP.FTS.B,
31.23%,
2/15/25
..
2,907
2,900
L2639657.UP.FTS.B,
5.92%,
2/16/25
....
699
694
L2639334.UP.FTS.B,
6.42%,
2/16/25
....
2,195
2,174
FW2638680.UP.FTS.B,
7.01%,
2/16/25
...
1,034
1,026
L2638987.UP.FTS.B,
9.25%,
2/16/25
....
1,262
175
L2642308.UP.FTS.B,
10.18%,
2/16/25
....
4,833
4,809
FW2644636.UP.FTS.B,
10.31%,
2/16/25
..
480
478
L2640736.UP.FTS.B,
10.49%,
2/16/25
....
724
722
FW2639791.UP.FTS.B,
11.24%,
2/16/25
..
13
13
FW2644605.UP.FTS.B,
13.5%,
2/16/25
...
4,924
4,912
FW2640049.UP.FTS.B,
13.66%,
2/16/25
..
5,318
5,296
L2644835.UP.FTS.B,
14.27%,
2/16/25
....
6,479
6,452
L2639914.UP.FTS.B,
14.3%,
2/16/25
....
3,476
3,491
L2573704.UP.FTS.B,
14.5%,
2/16/25
....
1,989
1,998
L2644825.UP.FTS.B,
15.86%,
2/16/25
....
285
281
L2640305.UP.FTS.B,
16.68%,
2/16/25
....
3,285
3,300
FW2644294.UP.FTS.B,
16.92%,
2/16/25
..
1,667
1,674
FW2639338.UP.FTS.B,
17.66%,
2/16/25
..
5,083
5,106
L2641019.UP.FTS.B,
18.97%,
2/16/25
....
7,701
7,736
L2639930.UP.FTS.B,
19.1%,
2/16/25
....
1,138
1,140
L2644145.UP.FTS.B,
19.28%,
2/16/25
....
1,645
119
FW2639706.UP.FTS.B,
19.94%,
2/16/25
..
3,308
3,308
L2641952.UP.FTS.B,
19.98%,
2/16/25
....
2,275
2,286
L2641810.UP.FTS.B,
22.34%,
2/16/25
....
397
144
FW2643292.UP.FTS.B,
23.05%,
2/16/25
..
2,725
2,605
FW2639697.UP.FTS.B,
24.32%,
2/16/25
..
847
846
FW2643827.UP.FTS.B,
25.41%,
2/16/25
..
2,684
2,685
L2627901.UP.FTS.B,
28.31%,
2/16/25
....
7,710
7,713
L2644671.UP.FTS.B,
5.08%,
2/17/25
....
4,625
4,588
L2604120.UP.FTS.B,
17.7%,
2/17/25
....
5,109
5,119
L1871398.UP.FTS.B,
22.03%,
3/18/25
....
1,176
1,118
FW1872890.UP.FTS.B,
24.47%,
3/18/25
..
540
538
L2006292.UP.FTS.B,
11.48%,
4/09/25
....
378
375
L2006010.UP.FTS.B,
18.05%,
4/09/25
....
744
745
FW2007173.UP.FTS.B,
24.62%,
4/09/25
..
781
56
FW2008582.UP.FTS.B,
28.77%,
4/09/25
..
883
63
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2076313.UP.FTS.B,
15.86%,
4/19/25
....
$
678
$
678
FW2078328.UP.FTS.B,
19.87%,
4/19/25
..
3,554
255
L2077765.UP.FTS.B,
21.13%,
4/19/25
....
541
517
L2078933.UP.FTS.B,
22.16%,
4/19/25
....
7,019
6,678
L2008991.UP.FTS.B,
19.31%,
4/24/25
....
6,556
1,786
FW2077645.UP.FTS.B,
27.94%,
4/28/25
..
1,682
253
FW2200254.UP.FTS.B,
19.34%,
5/07/25
..
1,095
1,089
FW2199208.UP.FTS.B,
25.58%,
5/07/25
..
1,963
1,955
L2201277.UP.FTS.B,
23.37%,
5/08/25
....
2,381
334
FW2202263.UP.FTS.B,
23.94%,
5/08/25
..
1,122
81
FW2205860.UP.FTS.B,
28.57%,
5/08/25
..
1,625
115
FW2202524.UP.FTS.B,
28.64%,
5/08/25
..
1,266
766
FW2201579.UP.FTS.B,
28.82%,
5/08/25
..
1,891
1,874
L2405109.UP.FTS.B,
11.47%,
6/11/25
....
967
959
FW2410127.UP.FTS.B,
20.85%,
6/11/25
..
571
564
L2415625.UP.FTS.B,
8.97%,
6/12/25
....
2,291
168
L2414544.UP.FTS.B,
14.43%,
6/12/25
....
1,652
947
L2402983.UP.FTS.B,
8.56%,
6/21/25
....
1,427
1,414
FW1710146.UP.FTS.B,
13.91%,
7/14/25
..
1,704
50
L2639542.UP.FTS.B,
8.21%,
7/16/25
....
1,404
1,389
FW2640344.UP.FTS.B,
14.17%,
7/16/25
..
1,559
218
FW2639899.UP.FTS.B,
18.71%,
7/16/25
..
6,929
6,889
FW1873996.UP.FTS.B,
28.24%,
8/18/25
..
3,913
279
FW1872459.UP.FTS.B,
28.31%,
9/01/25
..
399
400
L2007014.UP.FTS.B,
20.64%,
9/09/25
....
3,059
1,775
L2195122.UP.FTS.B,
20.26%,
10/07/25
...
3,860
3,807
L2206982.UP.FTS.B,
9.5%,
10/08/25
....
518
514
FW2411155.UP.FTS.B,
7.59%,
11/11/25
..
1,875
1,858
FW2411472.UP.FTS.B,
24.01%,
11/11/25
.
6,537
1,857
FW2418164.UP.FTS.B,
9.41%,
11/12/25
..
1,256
1,249
L1711804.UP.FTS.B,
9.08%,
9/14/26
.....
6,372
6,332
L1709773.UP.FTS.B,
9.1%,
9/14/26
.....
1,275
1,266
L1709466.UP.FTS.B,
9.12%,
9/14/26
....
7,006
6,961
L1711063.UP.FTS.B,
9.57%,
9/14/26
.....
8,961
8,904
L1711325.UP.FTS.B,
9.58%,
9/14/26
.....
11,248
5,916
L1710250.UP.FTS.B,
9.72%,
9/14/26
....
5,128
5,100
L1710722.UP.FTS.B,
9.73%,
9/14/26
....
12,821
12,739
L1709358.UP.FTS.B,
10.97%,
9/14/26
....
27,181
27,024
L1711112.UP.FTS.B,
12.03%,
9/14/26
....
13,086
13,002
FW1709227.UP.FTS.B,
12.04%,
9/14/26
..
1,028
569
L1711960.UP.FTS.B,
12.48%,
9/14/26
....
1,970
1,960
L1708544.UP.FTS.B,
12.57%,
9/14/26
....
2,617
2,602
L1709990.UP.FTS.B,
12.82%,
9/14/26
....
1,431
1,420
L1709442.UP.FTS.B,
13.19%,
9/14/26
....
33,035
32,858
L1712219.UP.FTS.B,
13.34%,
9/14/26
....
2,091
2,073
L1711626.UP.FTS.B,
13.98%,
9/14/26
....
13,303
13,233
L1705354.UP.FTS.B,
14.33%,
9/14/26
....
16,012
15,927
L1712030.UP.FTS.B,
15.05%,
9/14/26
....
2,013
2,006
FW1711888.UP.FTS.B,
15.29%,
9/14/26
..
6,725
6,700
L1711759.UP.FTS.B,
15.35%,
9/14/26
....
6,741
6,705
FW1710596.UP.FTS.B,
15.85%,
9/14/26
..
3,378
3,365
FW1711241.UP.FTS.B,
16.08%,
9/14/26
..
2,707
2,697
L1707201.UP.FTS.B,
16.24%,
9/14/26
....
10,165
10,127
L1708577.UP.FTS.B,
16.66%,
9/14/26
....
4,776
4,750
L1709613.UP.FTS.B,
17.03%,
9/14/26
....
2,046
2,038
L1711610.UP.FTS.B,
17.32%,
9/14/26
....
17,087
17,029
L1708807.UP.FTS.B,
17.72%,
9/14/26
....
6,857
6,831
L1710981.UP.FTS.B,
17.81%,
9/14/26
....
6,906
6,869
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW1709424.UP.FTS.B,
18.79%,
9/14/26
..
$
10,373
$
10,334
FW1709134.UP.FTS.B,
18.89%,
9/14/26
..
6,952
6,914
L1710731.UP.FTS.B,
18.91%,
9/14/26
....
2,076
2,069
L1712201.UP.FTS.B,
18.94%,
9/14/26
....
1,715
1,708
L1709877.UP.FTS.B,
19.26%,
9/14/26
....
3,402
3,388
L1711904.UP.FTS.B,
19.49%,
9/14/26
....
13,809
13,892
L1711008.UP.FTS.B,
19.81%,
9/14/26
....
6,970
7,014
L1711215.UP.FTS.B,
19.91%,
9/14/26
....
4,682
339
L1709643.UP.FTS.B,
20.04%,
9/14/26
....
2,792
2,783
L1708842.UP.FTS.B,
20.24%,
9/14/26
....
5,443
5,471
L1708429.UP.FTS.B,
20.63%,
9/14/26
....
2,104
2,117
L1710126.UP.FTS.B,
20.84%,
9/14/26
....
4,910
4,941
L1708585.UP.FTS.B,
20.86%,
9/14/26
....
22,713
581
L1711983.UP.FTS.B,
20.92%,
9/14/26
....
3,961
284
FW1711817.UP.FTS.B,
20.95%,
9/14/26
..
3,374
3,395
FW1708681.UP.FTS.B,
21.58%,
9/14/26
..
213
210
L1707499.UP.FTS.B,
22.03%,
9/14/26
....
7,095
7,124
L1710829.UP.FTS.B,
22.11%,
9/14/26
....
3,545
3,532
L1710706.UP.FTS.B,
22.62%,
9/14/26
....
2,316
340
FW1708581.UP.FTS.B,
23.53%,
9/14/26
..
8,107
8,075
L1704673.UP.FTS.B,
23.71%,
9/14/26
....
8,288
2,364
L1709924.UP.FTS.B,
24.74%,
9/14/26
....
1,123
663
L1710379.UP.FTS.B,
24.83%,
9/14/26
....
940
946
L1710592.UP.FTS.B,
25.03%,
9/14/26
....
941
947
L1706788.UP.FTS.B,
25.12%,
9/14/26
....
1,304
1,312
L1710759.UP.FTS.B,
25.29%,
9/14/26
....
798
803
L1712021.UP.FTS.B,
25.29%,
9/14/26
....
2,387
1,409
L1709050.UP.FTS.B,
25.44%,
9/14/26
....
2,178
2,191
L1712014.UP.FTS.B,
25.46%,
9/14/26
....
1,235
1,242
L1710375.UP.FTS.B,
25.49%,
9/14/26
....
1,450
1,459
L1711582.UP.FTS.B,
25.87%,
9/14/26
....
19,324
19,379
L1709668.UP.FTS.B,
25.91%,
9/14/26
....
1,092
1,089
L1711668.UP.FTS.B,
26.18%,
9/14/26
....
3,429
3,450
L1704675.UP.FTS.B,
26.55%,
9/14/26
....
4,909
2,897
FW1711990.UP.FTS.B,
26.83%,
9/14/26
..
6,871
4,049
FW1712164.UP.FTS.B,
28.97%,
9/14/26
..
2,831
107
FW1701558.UP.FTS.B,
29.38%,
9/14/26
..
8,925
8,978
FW1709270.UP.FTS.B,
29.95%,
9/14/26
..
4,182
1,205
FW1711943.UP.FTS.B,
30.23%,
9/14/26
..
3,963
1,146
FW1708159.UP.FTS.B,
30.6%,
9/14/26
...
1,373
1,376
FW1710725.UP.FTS.B,
30.72%,
9/14/26
..
2,369
1,400
FW1712184.UP.FTS.B,
30.77%,
9/14/26
..
4,386
1,267
FW1708283.UP.FTS.B,
30.95%,
9/14/26
..
3,013
3,025
FW1709045.UP.FTS.B,
31.04%,
9/14/26
..
2,260
2,274
FW1711778.UP.FTS.B,
31.18%,
9/14/26
..
2,585
1,538
FW1709237.UP.FTS.B,
31.24%,
9/14/26
..
3,770
3,793
FW1712567.UP.FTS.B,
31.44%,
9/14/26
..
2,189
2,202
FW1708897.UP.FTS.B,
32.27%,
9/14/26
..
2,521
381
L1709686.UP.FTS.B,
14.5%,
9/16/26
....
13,377
13,306
L1711180.UP.FTS.B,
21%,
9/24/26
......
18,565
772
L1873953.UP.FTS.B,
6.89%,
10/18/26
....
32,010
31,807
FW1872946.UP.FTS.B,
7.02%,
10/18/26
..
4,169
4,140
L1871496.UP.FTS.B,
10.72%,
10/18/26
...
12,269
12,186
L1874550.UP.FTS.B,
10.94%,
10/18/26
...
5,314
5,281
L1873178.UP.FTS.B,
11.12%,
10/18/26
...
5,252
5,224
L1873001.UP.FTS.B,
11.14%,
10/18/26
...
5,116
4,825
L1872155.UP.FTS.B,
11.36%,
10/18/26
...
1,324
1,316
L1873842.UP.FTS.B,
11.7%,
10/18/26
....
11,623
11,562
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1873090.UP.FTS.B,
11.9%,
10/18/26
....
$
1,004
$
997
L1873798.UP.FTS.B,
12.44%,
10/18/26
...
2,689
2,675
L1873392.UP.FTS.B,
12.58%,
10/18/26
...
9,385
500
L1874099.UP.FTS.B,
12.59%,
10/18/26
...
12,094
12,031
L1872876.UP.FTS.B,
13.07%,
10/18/26
...
1,689
1,680
L1874284.UP.FTS.B,
13.39%,
10/18/26
...
5,419
5,391
L1873391.UP.FTS.B,
13.44%,
10/18/26
...
6,777
6,742
L1873434.UP.FTS.B,
13.54%,
10/18/26
...
2,023
2,012
FW1873975.UP.FTS.B,
13.55%,
10/18/26
.
4,409
4,386
FW1874302.UP.FTS.B,
13.81%,
10/18/26
.
33,960
33,785
L1873174.UP.FTS.B,
13.86%,
10/18/26
...
9,975
9,896
L1874369.UP.FTS.B,
14.32%,
10/18/26
...
5,466
5,437
L1874287.UP.FTS.B,
14.37%,
10/18/26
...
10,927
10,859
FW1874328.UP.FTS.B,
14.8%,
10/18/26
..
6,852
6,815
L1860167.UP.FTS.B,
14.86%,
10/18/26
...
1,165
1,161
L1873194.UP.FTS.B,
15.66%,
10/18/26
...
1,731
1,721
L1873835.UP.FTS.B,
15.93%,
10/18/26
...
6,936
6,900
L1873166.UP.FTS.B,
16.01%,
10/18/26
...
13,835
13,761
L1872550.UP.FTS.B,
16.04%,
10/18/26
...
3,460
3,441
L1872814.UP.FTS.B,
16.38%,
10/18/26
...
10,370
10,331
L1873320.UP.FTS.B,
16.64%,
10/18/26
...
1,390
1,385
L1873808.UP.FTS.B,
16.88%,
10/18/26
...
3,830
3,817
L1874262.UP.FTS.B,
17.04%,
10/18/26
...
4,402
4,376
L1873707.UP.FTS.B,
17.21%,
10/18/26
...
8,414
8,370
L1874383.UP.FTS.B,
17.27%,
10/18/26
...
6,824
997
FW1869707.UP.FTS.B,
17.52%,
10/18/26
.
10,497
10,462
FW1874259.UP.FTS.B,
17.55%,
10/18/26
.
29
29
FW1873390.UP.FTS.B,
17.6%,
10/18/26
..
8,402
8,374
L1873345.UP.FTS.B,
17.63%,
10/18/26
...
4,129
4,112
FW1874335.UP.FTS.B,
17.64%,
10/18/26
.
28,019
27,872
L1874163.UP.FTS.B,
17.64%,
10/18/26
...
4,893
4,876
FW1874438.UP.FTS.B,
18.01%,
10/18/26
.
3,097
3,052
L1868602.UP.FTS.B,
18.18%,
10/18/26
...
2,461
2,453
FW1873109.UP.FTS.B,
18.49%,
10/18/26
.
6,697
6,675
L1872626.UP.FTS.B,
19.06%,
10/18/26
...
5,099
5,071
L1873648.UP.FTS.B,
19.32%,
10/18/26
...
3,197
3,180
L1873350.UP.FTS.B,
19.42%,
10/18/26
...
8,153
8,114
FW1874119.UP.FTS.B,
19.46%,
10/18/26
.
10,871
10,293
L1873155.UP.FTS.B,
19.56%,
10/18/26
...
1,503
1,484
L1873356.UP.FTS.B,
19.63%,
10/18/26
...
1,209
1,214
L1873176.UP.FTS.B,
19.77%,
10/18/26
...
10,677
10,722
FW1873722.UP.FTS.B,
19.81%,
10/18/26
.
4,989
4,962
L1872983.UP.FTS.B,
19.88%,
10/18/26
...
4,318
4,297
FW1873856.UP.FTS.B,
20.15%,
10/18/26
.
4,282
4,259
L1873825.UP.FTS.B,
20.43%,
10/18/26
...
35,756
35,992
L1873221.UP.FTS.B,
20.79%,
10/18/26
...
1,434
1,426
L1872967.UP.FTS.B,
21.07%,
10/18/26
...
5,135
370
L1874536.UP.FTS.B,
21.47%,
10/18/26
...
3,893
3,872
L1873820.UP.FTS.B,
21.93%,
10/18/26
...
2,458
2,468
L1872738.UP.FTS.B,
21.97%,
10/18/26
...
1,085
1,090
L1872849.UP.FTS.B,
21.97%,
10/18/26
...
1,918
138
L1873278.UP.FTS.B,
21.98%,
10/18/26
...
4,266
4,294
L1873489.UP.FTS.B,
22.12%,
10/18/26
...
10,858
10,904
L1872381.UP.FTS.B,
22.4%,
10/18/26
....
1,813
1,825
L1872881.UP.FTS.B,
22.46%,
10/18/26
...
23,423
23,384
L1872904.UP.FTS.B,
22.48%,
10/18/26
...
3,628
3,644
L1873504.UP.FTS.B,
22.55%,
10/18/26
...
940
943
L1874352.UP.FTS.B,
22.6%,
10/18/26
....
23,747
23,903
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
101
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1874034.UP.FTS.B,
22.67%,
10/18/26
...
$
1,599
$
1,605
L1873496.UP.FTS.B,
22.72%,
10/18/26
...
11,965
12,024
L1873741.UP.FTS.B,
22.96%,
10/18/26
...
1,226
1,234
L1873307.UP.FTS.B,
23.79%,
10/18/26
...
1,099
1,103
L1872931.UP.FTS.B,
23.85%,
10/18/26
...
3,993
285
L1873492.UP.FTS.B,
23.95%,
10/18/26
...
12,732
12,810
L1874063.UP.FTS.B,
24.01%,
10/18/26
...
5,133
5,166
L1873180.UP.FTS.B,
24.02%,
10/18/26
...
733
738
L1872601.UP.FTS.B,
24.04%,
10/18/26
...
3,708
3,727
L1873408.UP.FTS.B,
24.34%,
10/18/26
...
2,205
2,214
L1870381.UP.FTS.B,
24.72%,
10/18/26
...
5,085
5,115
L1873373.UP.FTS.B,
24.83%,
10/18/26
...
3,691
3,707
L1868887.UP.FTS.B,
24.97%,
10/18/26
...
10,824
10,881
L1872784.UP.FTS.B,
25.04%,
10/18/26
...
4,800
4,820
L1874475.UP.FTS.B,
25.04%,
10/18/26
...
1,820
26
L1873877.UP.FTS.B,
25.05%,
10/18/26
...
3,329
3,343
L1874065.UP.FTS.B,
25.09%,
10/18/26
...
8,025
575
L1872998.UP.FTS.B,
25.1%,
10/18/26
....
740
736
FW1874269.UP.FTS.B,
25.11%,
10/18/26
.
3,693
3,718
L1873308.UP.FTS.B,
25.11%,
10/18/26
...
1,094
1,086
L1873304.UP.FTS.B,
25.15%,
10/18/26
...
1,199
1,204
FW1873516.UP.FTS.B,
25.23%,
10/18/26
.
11,174
11,226
L1872941.UP.FTS.B,
25.23%,
10/18/26
...
1,307
94
FW1873077.UP.FTS.B,
25.29%,
10/18/26
.
2,219
2,233
L1870436.UP.FTS.B,
25.29%,
10/18/26
...
2,182
326
L1873627.UP.FTS.B,
25.33%,
10/18/26
...
630
630
L1805232.UP.FTS.B,
25.36%,
10/18/26
...
4,070
4,087
L1872764.UP.FTS.B,
25.4%,
10/18/26
....
1,111
1,115
L1869327.UP.FTS.B,
25.42%,
10/18/26
...
2,454
176
L1873079.UP.FTS.B,
25.43%,
10/18/26
...
1,017
1,019
L1873235.UP.FTS.B,
25.45%,
10/18/26
...
4,864
4,895
L1874416.UP.FTS.B,
25.46%,
10/18/26
...
21,911
22,038
L1874151.UP.FTS.B,
25.48%,
10/18/26
...
814
820
L1874395.UP.FTS.B,
25.5%,
10/18/26
....
6,404
973
L1874370.UP.FTS.B,
25.71%,
10/18/26
...
3,942
3,964
L1873151.UP.FTS.B,
25.86%,
10/18/26
...
882
874
L1874250.UP.FTS.B,
25.87%,
10/18/26
...
8,038
2,307
L1874041.UP.FTS.B,
26.01%,
10/18/26
...
5,515
5,543
L1870887.UP.FTS.B,
26.18%,
10/18/26
...
1,265
1,273
L1874047.UP.FTS.B,
26.3%,
10/18/26
....
304
300
FW1874080.UP.FTS.B,
26.63%,
10/18/26
.
1,518
1,456
FW1874049.UP.FTS.B,
26.74%,
10/18/26
.
8,178
1,251
FW1874429.UP.FTS.B,
27.19%,
10/18/26
.
2,847
2,859
FW1873145.UP.FTS.B,
27.24%,
10/18/26
.
7,416
7,460
FW1873344.UP.FTS.B,
27.72%,
10/18/26
.
10,519
10,587
FW1873866.UP.FTS.B,
28.25%,
10/18/26
.
743
747
FW1872622.UP.FTS.B,
28.59%,
10/18/26
.
2,329
2,231
FW1873950.UP.FTS.B,
28.68%,
10/18/26
.
1,669
1,677
FW1874321.UP.FTS.B,
28.99%,
10/18/26
.
1,212
1,217
FW1874251.UP.FTS.B,
29.26%,
10/18/26
.
3,795
3,811
FW1874208.UP.FTS.B,
29.47%,
10/18/26
.
2,659
2,676
FW1873160.UP.FTS.B,
30.04%,
10/18/26
.
1,674
1,682
FW1873268.UP.FTS.B,
30.52%,
10/18/26
.
1,376
1,382
FW1872558.UP.FTS.B,
30.55%,
10/18/26
.
994
1,000
FW1872779.UP.FTS.B,
30.59%,
10/18/26
.
1,362
1,363
FW1873577.UP.FTS.B,
30.59%,
10/18/26
.
4,589
4,618
FW1872937.UP.FTS.B,
30.6%,
10/18/26
..
3,075
3,089
FW1873110.UP.FTS.B,
30.82%,
10/18/26
.
3,323
968
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW1873983.UP.FTS.B,
30.83%,
10/18/26
.
$
1,783
$
1,793
FW1873168.UP.FTS.B,
30.88%,
10/18/26
.
2,835
2,847
FW1873018.UP.FTS.B,
31%,
10/18/26
...
850
854
FW1874435.UP.FTS.B,
31.05%,
10/18/26
.
1,381
1,386
FW1873234.UP.FTS.B,
31.11%,
10/18/26
.
3,360
3,381
FW1874112.UP.FTS.B,
31.18%,
10/18/26
.
3,761
3,777
FW1873036.UP.FTS.B,
31.2%,
10/18/26
..
2,462
2,473
FW1872966.UP.FTS.B,
31.83%,
10/18/26
.
3,544
3,567
FW1872975.UP.FTS.B,
32.03%,
10/18/26
.
2,391
2,402
L1873049.UP.FTS.B,
25.47%,
10/22/26
...
3,642
3,658
FW1873980.UP.FTS.B,
31.12%,
10/28/26
.
1,972
1,978
L1874280.UP.FTS.B,
15.62%,
11/01/26
...
21,277
21,172
L1873419.UP.FTS.B,
17.21%,
11/02/26
...
3,596
3,573
FW1873464.UP.FTS.B,
22.91%,
11/03/26
.
2,246
2,258
FW2008579.UP.FTS.B,
5.93%,
11/09/26
..
32,534
32,303
L2010047.UP.FTS.B,
7.23%,
11/09/26
....
6,583
6,537
L1947969.UP.FTS.B,
8.25%,
11/09/26
....
2,059
2,045
L2004931.UP.FTS.B,
8.92%,
11/09/26
....
12,690
12,605
FW2005584.UP.FTS.B,
8.98%,
11/09/26
..
10,693
10,620
L2009940.UP.FTS.B,
9.06%,
11/09/26
....
22,734
22,580
L2009771.UP.FTS.B,
9.73%,
11/09/26
....
3,362
3,340
L2010120.UP.FTS.B,
9.74%,
11/09/26
....
13,449
13,359
L1982018.UP.FTS.B,
9.85%,
11/09/26
....
3,365
3,343
L2005005.UP.FTS.B,
9.85%,
11/09/26
....
13,787
7,393
L2007402.UP.FTS.B,
10.3%,
11/09/26
....
7,053
1,735
L2008329.UP.FTS.B,
10.3%,
11/09/26
....
4,053
4,026
L2008701.UP.FTS.B,
10.48%,
11/09/26
...
4,507
4,474
L2009188.UP.FTS.B,
10.68%,
11/09/26
...
17,639
17,514
L2008677.UP.FTS.B,
10.77%,
11/09/26
...
6,760
6,716
L2009665.UP.FTS.B,
10.88%,
11/09/26
...
5,769
5,732
L2008105.UP.FTS.B,
10.89%,
11/09/26
...
4,395
4,341
L2006261.UP.FTS.B,
10.9%,
11/09/26
....
3,734
3,709
L2009417.UP.FTS.B,
11.04%,
11/09/26
...
3,277
3,254
L2004983.UP.FTS.B,
11.09%,
11/09/26
...
13,453
13,339
L2009190.UP.FTS.B,
11.31%,
11/09/26
...
13,545
13,456
L2006518.UP.FTS.B,
11.38%,
11/09/26
...
2,293
2,277
L1977043.UP.FTS.B,
11.43%,
11/09/26
...
3,681
3,657
FW2006974.UP.FTS.B,
11.44%,
11/09/26
.
8,522
8,467
L2008088.UP.FTS.B,
12.1%,
11/09/26
....
7,196
7,150
L2007707.UP.FTS.B,
12.19%,
11/09/26
...
10,167
10,099
L2005904.UP.FTS.B,
12.3%,
11/09/26
....
2,007
145
L1991534.UP.FTS.B,
12.48%,
11/09/26
...
4,356
4,322
L2005066.UP.FTS.B,
12.51%,
11/09/26
...
10,314
10,248
L2007649.UP.FTS.B,
12.88%,
11/09/26
...
6,897
6,853
FW2009636.UP.FTS.B,
13.06%,
11/09/26
.
4,143
4,117
L2009536.UP.FTS.B,
13.07%,
11/09/26
...
4,235
2,269
L2009639.UP.FTS.B,
13.58%,
11/09/26
...
11,500
831
FW2004957.UP.FTS.B,
13.66%,
11/09/26
.
1,735
1,724
L2006397.UP.FTS.B,
13.66%,
11/09/26
...
6,938
6,894
L2008524.UP.FTS.B,
14.03%,
11/09/26
...
13,835
13,746
L2008113.UP.FTS.B,
14.06%,
11/09/26
...
14,966
14,872
L2009683.UP.FTS.B,
14.08%,
11/09/26
...
4,178
4,151
L2009234.UP.FTS.B,
14.43%,
11/09/26
...
10,468
10,403
L2008618.UP.FTS.B,
14.73%,
11/09/26
...
4,197
4,171
L2009287.UP.FTS.B,
14.91%,
11/09/26
...
4,063
4,037
FW2009310.UP.FTS.B,
15.19%,
11/09/26
.
3,676
264
L2009277.UP.FTS.B,
15.37%,
11/09/26
...
6,088
6,030
L2008691.UP.FTS.B,
15.38%,
11/09/26
...
3,499
3,477
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2008772.UP.FTS.B,
15.55%,
11/09/26
...
$
7,039
$
6,996
L2007900.UP.FTS.B,
15.91%,
11/09/26
...
2,117
2,104
L2009243.UP.FTS.B,
15.94%,
11/09/26
...
7,060
7,017
FW2006940.UP.FTS.B,
15.96%,
11/09/26
.
1,615
1,592
L2005019.UP.FTS.B,
16.29%,
11/09/26
...
7,820
7,762
L2009814.UP.FTS.B,
16.29%,
11/09/26
...
6,890
6,844
L2006713.UP.FTS.B,
16.47%,
11/09/26
...
8,504
8,452
L2009219.UP.FTS.B,
16.5%,
11/09/26
....
17,310
17,195
FW2010280.UP.FTS.B,
16.52%,
11/09/26
.
11,344
11,277
FW2010216.UP.FTS.B,
16.55%,
11/09/26
.
6,414
6,370
L2008001.UP.FTS.B,
16.67%,
11/09/26
...
10,646
10,581
FW2009372.UP.FTS.B,
16.77%,
11/09/26
.
10,653
10,590
L2010173.UP.FTS.B,
16.8%,
11/09/26
....
5,684
5,650
L2009631.UP.FTS.B,
16.91%,
11/09/26
...
4,998
4,962
L2008272.UP.FTS.B,
17.06%,
11/09/26
...
14,237
14,152
L2008918.UP.FTS.B,
17.09%,
11/09/26
...
5,268
5,237
FW2008938.UP.FTS.B,
17.12%,
11/09/26
.
5,503
5,466
L2005207.UP.FTS.B,
17.16%,
11/09/26
...
8,547
8,496
FW2003971.UP.FTS.B,
17.71%,
11/09/26
.
19,667
19,551
L2006918.UP.FTS.B,
18.03%,
11/09/26
...
24,082
23,930
L2008937.UP.FTS.B,
18.22%,
11/09/26
...
4,309
4,283
L2008467.UP.FTS.B,
18.23%,
11/09/26
...
7,229
7,177
L2009319.UP.FTS.B,
18.37%,
11/09/26
...
1,222
1,214
FW2005538.UP.FTS.B,
18.4%,
11/09/26
..
4,271
4,241
FW2005908.UP.FTS.B,
18.71%,
11/09/26
.
3,241
3,220
L2006524.UP.FTS.B,
18.79%,
11/09/26
...
3,604
3,582
FW2009511.UP.FTS.B,
18.82%,
11/09/26
.
4,325
4,298
L2006460.UP.FTS.B,
18.86%,
11/09/26
...
2,549
2,531
FW2002309.UP.FTS.B,
18.9%,
11/09/26
..
1,587
1,578
L2004618.UP.FTS.B,
18.96%,
11/09/26
...
4,329
4,302
L2007966.UP.FTS.B,
18.98%,
11/09/26
...
1,443
1,434
L2007377.UP.FTS.B,
19.06%,
11/09/26
...
12,275
12,204
L2010300.UP.FTS.B,
19.58%,
11/09/26
...
762
209
L2003306.UP.FTS.B,
19.59%,
11/09/26
...
18,024
472
L2008422.UP.FTS.B,
19.84%,
11/09/26
...
4,067
2,344
L2007099.UP.FTS.B,
20.26%,
11/09/26
...
24,180
24,247
L2008551.UP.FTS.B,
20.27%,
11/09/26
...
15,728
15,780
L2008219.UP.FTS.B,
20.5%,
11/09/26
....
878
865
L2009017.UP.FTS.B,
20.52%,
11/09/26
...
5,383
761
L2009697.UP.FTS.B,
20.69%,
11/09/26
...
3,651
3,628
FW2004995.UP.FTS.B,
21%,
11/09/26
...
4,244
4,218
FW2006513.UP.FTS.B,
21.09%,
11/09/26
.
1,426
1,416
FW2008076.UP.FTS.B,
21.13%,
11/09/26
.
1,557
1,540
L2005679.UP.FTS.B,
21.2%,
11/09/26
....
19,011
5,106
L2009584.UP.FTS.B,
21.3%,
11/09/26
....
8,331
8,357
L2006375.UP.FTS.B,
21.38%,
11/09/26
...
2,704
2,703
L2008251.UP.FTS.B,
21.4%,
11/09/26
....
3,669
3,646
FW2004906.UP.FTS.B,
21.42%,
11/09/26
.
9,303
9,236
FW2008069.UP.FTS.B,
21.82%,
11/09/26
.
8,022
8,048
L2007361.UP.FTS.B,
21.89%,
11/09/26
...
3,137
3,136
L2008476.UP.FTS.B,
21.9%,
11/09/26
....
11,117
11,048
L2008042.UP.FTS.B,
22%,
11/09/26
.....
7,735
7,687
L2005261.UP.FTS.B,
22.11%,
11/09/26
...
7,044
7,053
FW2009886.UP.FTS.B,
22.16%,
11/09/26
.
2,950
2,932
L2009468.UP.FTS.B,
22.18%,
11/09/26
...
9,588
9,620
L2009034.UP.FTS.B,
22.22%,
11/09/26
...
4,709
4,704
L2008599.UP.FTS.B,
22.35%,
11/09/26
...
1,477
1,468
L2004674.UP.FTS.B,
22.44%,
11/09/26
...
6,475
6,489
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2007307.UP.FTS.B,
22.83%,
11/09/26
...
$
3,480
$
3,482
L2008480.UP.FTS.B,
22.94%,
11/09/26
...
11,120
11,158
L2009304.UP.FTS.B,
23.03%,
11/09/26
...
2,558
2,541
L2007937.UP.FTS.B,
23.09%,
11/09/26
...
11,131
11,062
L2009454.UP.FTS.B,
23.92%,
11/09/26
...
6,236
450
L2007056.UP.FTS.B,
24.37%,
11/09/26
...
1,811
1,814
FW2009608.UP.FTS.B,
24.41%,
11/09/26
.
15,716
15,769
L2008806.UP.FTS.B,
24.53%,
11/09/26
...
5,691
5,710
L2009932.UP.FTS.B,
24.83%,
11/09/26
...
1,234
88
L2009896.UP.FTS.B,
24.89%,
11/09/26
...
2,252
2,260
L2010117.UP.FTS.B,
24.96%,
11/09/26
...
3,004
3,014
FW2006718.UP.FTS.B,
24.97%,
11/09/26
.
3,789
3,796
L2008356.UP.FTS.B,
25.02%,
11/09/26
...
1,333
1,312
L2007001.UP.FTS.B,
25.04%,
11/09/26
...
1,127
1,120
L2006100.UP.FTS.B,
25.1%,
11/09/26
....
2,566
2,544
L2009837.UP.FTS.B,
25.1%,
11/09/26
....
1,129
1,130
L2006519.UP.FTS.B,
25.11%,
11/09/26
...
1,654
1,660
L1992164.UP.FTS.B,
25.12%,
11/09/26
...
2,556
2,565
L2008646.UP.FTS.B,
25.12%,
11/09/26
...
977
981
L2005357.UP.FTS.B,
25.2%,
11/09/26
....
3,761
3,774
L2008993.UP.FTS.B,
25.21%,
11/09/26
...
7,154
7,163
FW2006444.UP.FTS.B,
25.24%,
11/09/26
.
4,804
701
L2009998.UP.FTS.B,
25.28%,
11/09/26
...
861
862
L2009595.UP.FTS.B,
25.31%,
11/09/26
...
3,107
3,083
L2006252.UP.FTS.B,
25.33%,
11/09/26
...
5,727
5,733
L2007046.UP.FTS.B,
25.34%,
11/09/26
...
1,355
1,360
FW2009941.UP.FTS.B,
25.35%,
11/09/26
.
6,245
6,261
L2009460.UP.FTS.B,
25.35%,
11/09/26
...
2,334
2,342
L2005437.UP.FTS.B,
25.37%,
11/09/26
...
753
756
L2009364.UP.FTS.B,
25.41%,
11/09/26
...
3,799
3,806
L2009802.UP.FTS.B,
25.42%,
11/09/26
...
6,114
884
L2007026.UP.FTS.B,
25.44%,
11/09/26
...
1,356
1,361
L1976857.UP.FTS.B,
25.45%,
11/09/26
...
6,027
6,047
L2008185.UP.FTS.B,
25.45%,
11/09/26
...
3,014
3,024
L2005075.UP.FTS.B,
25.48%,
11/09/26
...
1,628
1,624
L2009842.UP.FTS.B,
25.48%,
11/09/26
...
2,252
2,252
L2004971.UP.FTS.B,
25.6%,
11/09/26
....
7,495
7,518
L2005577.UP.FTS.B,
25.63%,
11/09/26
...
4,607
2,708
L2007383.UP.FTS.B,
25.64%,
11/09/26
...
2,942
2,952
L2009877.UP.FTS.B,
25.76%,
11/09/26
...
6,382
458
L2008285.UP.FTS.B,
25.92%,
11/09/26
...
4,231
4,245
L2007533.UP.FTS.B,
26.06%,
11/09/26
...
6,573
462
FW2007576.UP.FTS.B,
26.1%,
11/09/26
..
5,295
5,313
L2009167.UP.FTS.B,
26.14%,
11/09/26
...
7,566
7,592
L2005548.UP.FTS.B,
26.19%,
11/09/26
...
4,995
5,012
FW1993820.UP.FTS.B,
26.38%,
11/09/26
.
4,547
4,562
FW2006658.UP.FTS.B,
26.38%,
11/09/26
.
4,547
4,519
FW2006782.UP.FTS.B,
26.4%,
11/09/26
..
15,157
15,210
FW2008080.UP.FTS.B,
27.3%,
11/09/26
..
1,143
1,147
FW2009450.UP.FTS.B,
27.39%,
11/09/26
.
6,472
6,489
FW2007457.UP.FTS.B,
27.58%,
11/09/26
.
2,407
345
FW2007274.UP.FTS.B,
27.62%,
11/09/26
.
2,064
148
FW2007864.UP.FTS.B,
27.83%,
11/09/26
.
3,822
3,835
FW2006870.UP.FTS.B,
27.89%,
11/09/26
.
4,931
4,946
FW2005768.UP.FTS.B,
27.98%,
11/09/26
.
1,149
1,150
FW2005435.UP.FTS.B,
28.32%,
11/09/26
.
11,499
11,539
FW2006392.UP.FTS.B,
28.34%,
11/09/26
.
1,413
1,402
FW2005859.UP.FTS.B,
28.42%,
11/09/26
.
10,056
10,074
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
103
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2009975.UP.FTS.B,
28.52%,
11/09/26
.
$
732
$
727
FW2006618.UP.FTS.B,
28.54%,
11/09/26
.
3,692
524
FW2009953.UP.FTS.B,
28.59%,
11/09/26
.
3,455
3,467
FW2007255.UP.FTS.B,
28.65%,
11/09/26
.
4,676
4,686
FW2006396.UP.FTS.B,
28.95%,
11/09/26
.
830
58
FW2009473.UP.FTS.B,
29.09%,
11/09/26
.
4,621
4,637
FW2005194.UP.FTS.B,
29.14%,
11/09/26
.
4,671
4,680
FW2008122.UP.FTS.B,
29.26%,
11/09/26
.
445
280
FW2006599.UP.FTS.B,
29.3%,
11/09/26
..
4,759
696
FW2007779.UP.FTS.B,
29.31%,
11/09/26
.
4,168
297
FW2006841.UP.FTS.B,
29.42%,
11/09/26
.
3,241
3,252
FW2009538.UP.FTS.B,
29.42%,
11/09/26
.
2,525
362
FW2009687.UP.FTS.B,
29.61%,
11/09/26
.
4,822
2,851
FW2009107.UP.FTS.B,
29.81%,
11/09/26
.
2,812
2,817
FW2009414.UP.FTS.B,
30.01%,
11/09/26
.
9,445
9,479
FW2005675.UP.FTS.B,
30.41%,
11/09/26
.
1,081
1,071
FW2007884.UP.FTS.B,
30.51%,
11/09/26
.
2,332
2,340
FW2009221.UP.FTS.B,
30.79%,
11/09/26
.
10,453
10,469
FW2008923.UP.FTS.B,
30.84%,
11/09/26
.
2,282
2,287
FW2009706.UP.FTS.B,
30.84%,
11/09/26
.
1,255
1,257
FW2007936.UP.FTS.B,
30.89%,
11/09/26
.
3,191
3,202
FW2006359.UP.FTS.B,
30.96%,
11/09/26
.
1,644
3
FW2007277.UP.FTS.B,
30.98%,
11/09/26
.
880
520
FW1985263.UP.FTS.B,
31.02%,
11/09/26
.
1,194
1,196
FW2005025.UP.FTS.B,
31.15%,
11/09/26
.
5,778
5,786
FW2007426.UP.FTS.B,
31.18%,
11/09/26
.
2,003
–
FW2008461.UP.FTS.B,
31.23%,
11/09/26
.
1,563
450
FW2008432.UP.FTS.B,
31.3%,
11/09/26
..
3,437
3,442
FW2008400.UP.FTS.B,
31.31%,
11/09/26
.
2,646
2,655
FW2005541.UP.FTS.B,
31.38%,
11/09/26
.
6,729
476
FW2009323.UP.FTS.B,
31.47%,
11/09/26
.
4,707
4,715
FW2009592.UP.FTS.B,
31.5%,
11/09/26
..
2,280
2,271
FW2007089.UP.FTS.B,
31.52%,
11/09/26
.
6,263
1,813
L2005604.UP.FTS.B,
7.24%,
11/15/26
....
15,823
15,714
L2009332.UP.FTS.B,
18.58%,
11/15/26
...
1,817
1,802
L2076555.UP.FTS.B,
9.38%,
11/19/26
....
4,694
4,665
FW2075880.UP.FTS.B,
9.48%,
11/19/26
..
9,731
9,672
L2077362.UP.FTS.B,
10.03%,
11/19/26
...
13,482
13,401
L2077278.UP.FTS.B,
10.24%,
11/19/26
...
1,423
1,414
L2079683.UP.FTS.B,
10.46%,
11/19/26
...
3,016
2,999
L2078817.UP.FTS.B,
10.96%,
11/19/26
...
31,245
31,080
L2077229.UP.FTS.B,
11.22%,
11/19/26
...
13,611
13,540
L2079790.UP.FTS.B,
11.54%,
11/19/26
...
5,800
5,770
L2078831.UP.FTS.B,
11.67%,
11/19/26
...
1,312
1,304
L2075431.UP.FTS.B,
11.87%,
11/19/26
...
15,735
15,652
L2077619.UP.FTS.B,
12.17%,
11/19/26
...
755
751
L2077342.UP.FTS.B,
12.81%,
11/19/26
...
2,757
2,743
L2069545.UP.FTS.B,
12.88%,
11/19/26
...
4,138
4,116
FW2076618.UP.FTS.B,
13.72%,
11/19/26
.
15,967
15,885
L2077586.UP.FTS.B,
13.74%,
11/19/26
...
3,808
3,788
L2079340.UP.FTS.B,
14.05%,
11/19/26
...
2,271
164
L2078387.UP.FTS.B,
14.26%,
11/19/26
...
1,957
1,945
L2080759.UP.FTS.B,
14.39%,
11/19/26
...
10,359
10,304
FW2078825.UP.FTS.B,
14.72%,
11/19/26
.
14,690
14,616
L2077934.UP.FTS.B,
15.05%,
11/19/26
...
5,260
5,233
L2079762.UP.FTS.B,
15.07%,
11/19/26
...
3,387
3,371
L2078364.UP.FTS.B,
15.16%,
11/19/26
...
4,211
4,194
L2080377.UP.FTS.B,
15.37%,
11/19/26
...
6,326
6,301
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2078013.UP.FTS.B,
15.44%,
11/19/26
...
$
9,130
$
9,078
L2078858.UP.FTS.B,
16.1%,
11/19/26
....
12,810
12,444
L2077446.UP.FTS.B,
16.31%,
11/19/26
...
5,153
374
L2080949.UP.FTS.B,
16.51%,
11/19/26
...
4,755
4,717
L2077345.UP.FTS.B,
16.52%,
11/19/26
...
1,914
1,905
L2078556.UP.FTS.B,
16.55%,
11/19/26
...
3,321
3,303
L2077136.UP.FTS.B,
16.73%,
11/19/26
...
7,100
7,073
FW2080998.UP.FTS.B,
16.87%,
11/19/26
.
680
677
FW2078513.UP.FTS.B,
16.88%,
11/19/26
.
12,796
12,746
L2079147.UP.FTS.B,
16.93%,
11/19/26
...
12,057
12,009
L2073789.UP.FTS.B,
17.39%,
11/19/26
...
2,141
2,133
L2078785.UP.FTS.B,
17.53%,
11/19/26
...
7,142
7,115
FW2077194.UP.FTS.B,
17.96%,
11/19/26
.
3,502
3,457
L2079526.UP.FTS.B,
17.98%,
11/19/26
...
2,723
2,710
FW2077428.UP.FTS.B,
18.23%,
11/19/26
.
7,323
6,946
L2078320.UP.FTS.B,
18.26%,
11/19/26
...
2,426
638
L2078541.UP.FTS.B,
18.53%,
11/19/26
...
2,518
2,508
L2078767.UP.FTS.B,
18.54%,
11/19/26
...
719
717
FW2080677.UP.FTS.B,
18.72%,
11/19/26
.
12,248
12,201
L2080184.UP.FTS.B,
19.05%,
11/19/26
...
4,215
637
FW2078252.UP.FTS.B,
19.1%,
11/19/26
..
1,272
1,263
L2079089.UP.FTS.B,
19.11%,
11/19/26
...
4,327
4,310
L2077889.UP.FTS.B,
19.41%,
11/19/26
...
5,355
5,335
L2079136.UP.FTS.B,
19.7%,
11/19/26
....
11,967
12,043
FW2078808.UP.FTS.B,
19.87%,
11/19/26
.
18,151
18,083
L2077834.UP.FTS.B,
19.87%,
11/19/26
...
10,914
10,851
FW2076082.UP.FTS.B,
20.04%,
11/19/26
.
14,374
14,315
L2078706.UP.FTS.B,
20.11%,
11/19/26
...
5,819
5,797
L2080653.UP.FTS.B,
20.24%,
11/19/26
...
3,276
3,264
L2077864.UP.FTS.B,
20.33%,
11/19/26
...
16,026
15,966
L2076267.UP.FTS.B,
20.73%,
11/19/26
...
10,869
10,826
L2077767.UP.FTS.B,
20.73%,
11/19/26
...
7,304
7,351
FW2079399.UP.FTS.B,
20.8%,
11/19/26
..
13,124
13,206
L2051484.UP.FTS.B,
21.26%,
11/19/26
...
1,626
117
FW2080860.UP.FTS.B,
21.93%,
11/19/26
.
14,476
14,554
FW2076510.UP.FTS.B,
22.17%,
11/19/26
.
29,502
29,392
L2080597.UP.FTS.B,
22.59%,
11/19/26
...
1,627
1,638
L2078431.UP.FTS.B,
23.7%,
11/19/26
....
2,276
2,183
L2079001.UP.FTS.B,
24.08%,
11/19/26
...
10,922
10,948
FW2076263.UP.FTS.B,
24.18%,
11/19/26
.
2,317
2,308
FW2079138.UP.FTS.B,
24.71%,
11/19/26
.
11,184
11,141
L2051923.UP.FTS.B,
24.73%,
11/19/26
...
1,278
1,277
FW2078837.UP.FTS.B,
25.18%,
11/19/26
.
1,955
1,948
L2077756.UP.FTS.B,
25.18%,
11/19/26
...
949
68
L2080819.UP.FTS.B,
25.23%,
11/19/26
...
1,279
1,287
L2080514.UP.FTS.B,
25.27%,
11/19/26
...
1,656
1,666
L2079636.UP.FTS.B,
25.5%,
11/19/26
....
1,961
1,877
L2080879.UP.FTS.B,
25.51%,
11/19/26
...
3,165
3,186
FW2080532.UP.FTS.B,
25.55%,
11/19/26
.
16,718
1,176
L2080301.UP.FTS.B,
25.61%,
11/19/26
...
2,882
2,894
L2076428.UP.FTS.B,
25.82%,
11/19/26
...
6,371
6,399
L2076758.UP.FTS.B,
25.84%,
11/19/26
...
3,476
3,499
L2077747.UP.FTS.B,
25.84%,
11/19/26
...
5,342
5,372
FW2075811.UP.FTS.B,
25.85%,
11/19/26
.
846
802
L2076862.UP.FTS.B,
25.93%,
11/19/26
...
4,689
4,719
L2080433.UP.FTS.B,
25.97%,
11/19/26
...
1,937
20
FW2080275.UP.FTS.B,
26.15%,
11/19/26
.
2,648
2,665
L2076228.UP.FTS.B,
26.28%,
11/19/26
...
2,772
805
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2078057.UP.FTS.B,
26.47%,
11/19/26
.
$
497
$
490
L2080156.UP.FTS.B,
26.56%,
11/19/26
...
2,276
2,291
FW2076617.UP.FTS.B,
26.67%,
11/19/26
.
22,165
22,308
L2076223.UP.FTS.B,
26.74%,
11/19/26
...
8,451
1,290
FW2070515.UP.FTS.B,
26.89%,
11/19/26
.
3,421
3,443
L2075827.UP.FTS.B,
27%,
11/19/26
.....
7,074
7,120
FW2076319.UP.FTS.B,
27.45%,
11/19/26
.
3,050
3,070
FW2077691.UP.FTS.B,
28%,
11/19/26
...
6,613
465
FW2079921.UP.FTS.B,
29.67%,
11/19/26
.
2,279
2,291
FW2077874.UP.FTS.B,
30.42%,
11/19/26
.
5,936
124
FW2078643.UP.FTS.B,
30.58%,
11/19/26
.
650
640
FW2078839.UP.FTS.B,
30.61%,
11/19/26
.
635
621
FW2076598.UP.FTS.B,
31.11%,
11/19/26
.
688
688
FW2074352.UP.FTS.B,
31.13%,
11/19/26
.
934
66
FW2075287.UP.FTS.B,
31.46%,
11/19/26
.
6,283
6,130
FW2076836.UP.FTS.B,
31.47%,
11/19/26
.
6,095
5,842
L2008862.UP.FTS.B,
25.44%,
11/21/26
...
2,596
2,601
FW2007433.UP.FTS.B,
21.02%,
11/24/26
.
5,543
5,564
L2004302.UP.FTS.B,
21.93%,
11/24/26
...
2,402
2,296
FW2005949.UP.FTS.B,
25.57%,
11/24/26
.
5,796
5,776
FW2073062.UP.FTS.B,
27.11%,
11/25/26
.
11,431
11,505
L2077380.UP.FTS.B,
24.14%,
11/28/26
...
3,661
3,678
L2079956.UP.FTS.B,
14.89%,
12/01/26
...
5,034
5,008
FW2200360.UP.FTS.B,
6%,
12/07/26
....
221
218
L2198358.UP.FTS.B,
7.09%,
12/07/26
....
2,245
2,222
L2196810.UP.FTS.B,
7.42%,
12/07/26
....
4,052
4,022
L2198501.UP.FTS.B,
8.94%,
12/07/26
....
2,735
2,714
L2195995.UP.FTS.B,
9.12%,
12/07/26
....
2,944
2,922
L2199695.UP.FTS.B,
9.66%,
12/07/26
....
4,126
4,095
L2199924.UP.FTS.B,
9.76%,
12/07/26
....
4,818
4,781
L2198890.UP.FTS.B,
10.21%,
12/07/26
...
1,036
1,028
FW2200013.UP.FTS.B,
10.26%,
12/07/26
.
9,674
9,589
L2199199.UP.FTS.B,
10.28%,
12/07/26
...
6,634
6,582
L2198751.UP.FTS.B,
10.42%,
12/07/26
...
5,535
5,486
L2199240.UP.FTS.B,
10.7%,
12/07/26
....
5,685
5,643
L2196100.UP.FTS.B,
10.99%,
12/07/26
...
1,112
1,104
FW2198003.UP.FTS.B,
11.06%,
12/07/26
.
6,469
3,461
L2197856.UP.FTS.B,
11.23%,
12/07/26
...
3,760
3,727
L2197172.UP.FTS.B,
11.42%,
12/07/26
...
6,899
6,845
L2196592.UP.FTS.B,
11.62%,
12/07/26
...
3,770
3,741
FW2199260.UP.FTS.B,
12.51%,
12/07/26
.
17,222
17,089
L2200204.UP.FTS.B,
12.79%,
12/07/26
...
9,165
9,085
L2200250.UP.FTS.B,
13.28%,
12/07/26
...
3,535
3,508
L2197658.UP.FTS.B,
13.72%,
12/07/26
...
3,547
3,519
FW2198593.UP.FTS.B,
14.12%,
12/07/26
.
4,269
4,232
L2197131.UP.FTS.B,
14.14%,
12/07/26
...
783
777
L2199997.UP.FTS.B,
14.15%,
12/07/26
...
2,633
2,613
L2196035.UP.FTS.B,
14.38%,
12/07/26
...
3,881
3,848
L2196588.UP.FTS.B,
14.6%,
12/07/26
....
8,160
1,098
L2196864.UP.FTS.B,
14.96%,
12/07/26
...
5,114
2,732
L2198350.UP.FTS.B,
15.19%,
12/07/26
...
688
683
L2197650.UP.FTS.B,
15.41%,
12/07/26
...
5,421
5,376
L2199860.UP.FTS.B,
16.1%,
12/07/26
....
10,817
10,729
L2199879.UP.FTS.B,
16.31%,
12/07/26
...
10,593
10,508
L2198446.UP.FTS.B,
16.58%,
12/07/26
...
35,829
35,533
L2199625.UP.FTS.B,
16.62%,
12/07/26
...
7,245
7,174
L2198880.UP.FTS.B,
16.74%,
12/07/26
...
2,621
2,593
L2198467.UP.FTS.B,
16.99%,
12/07/26
...
14,651
14,497
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2197174.UP.FTS.B,
17.08%,
12/07/26
...
$
11,004
$
10,902
FW2197380.UP.FTS.B,
17.12%,
12/07/26
.
2,181
2,163
L2198345.UP.FTS.B,
17.18%,
12/07/26
...
17,305
17,165
L2198376.UP.FTS.B,
17.42%,
12/07/26
...
16,187
16,017
L2194879.UP.FTS.B,
17.51%,
12/07/26
...
14,288
14,155
L2192178.UP.FTS.B,
17.53%,
12/07/26
...
5,467
5,423
FW2196193.UP.FTS.B,
17.59%,
12/07/26
.
18,283
18,107
L2199819.UP.FTS.B,
17.72%,
12/07/26
...
13,151
13,038
L2200255.UP.FTS.B,
17.89%,
12/07/26
...
6,193
882
L2199726.UP.FTS.B,
18.1%,
12/07/26
....
4,391
4,355
L2195959.UP.FTS.B,
18.12%,
12/07/26
...
8,568
8,485
L2196412.UP.FTS.B,
18.83%,
12/07/26
...
1,324
1,313
L2199248.UP.FTS.B,
19.04%,
12/07/26
...
11,050
10,960
L2199663.UP.FTS.B,
19.69%,
12/07/26
...
4,438
4,398
L2169437.UP.FTS.B,
19.73%,
12/07/26
...
7,417
7,335
L2199129.UP.FTS.B,
20.12%,
12/07/26
...
1,632
1,619
L2198874.UP.FTS.B,
20.19%,
12/07/26
...
2,969
2,945
L2199523.UP.FTS.B,
20.46%,
12/07/26
...
2,666
2,634
L2196447.UP.FTS.B,
20.62%,
12/07/26
...
4,832
4,792
L2197655.UP.FTS.B,
20.75%,
12/07/26
...
3,794
2,224
L2196680.UP.FTS.B,
21.47%,
12/07/26
...
4,644
4,594
L2197631.UP.FTS.B,
21.55%,
12/07/26
...
3,373
3,336
L2196825.UP.FTS.B,
21.8%,
12/07/26
....
5,140
738
FW2198237.UP.FTS.B,
21.87%,
12/07/26
.
3,752
3,753
L2196775.UP.FTS.B,
22.04%,
12/07/26
...
751
744
FW2199825.UP.FTS.B,
22.12%,
12/07/26
.
1,530
897
L2196730.UP.FTS.B,
22.21%,
12/07/26
...
13,159
13,163
L2191085.UP.FTS.B,
22.33%,
12/07/26
...
2,644
60
L2199874.UP.FTS.B,
22.34%,
12/07/26
...
6,173
6,161
L2192706.UP.FTS.B,
22.47%,
12/07/26
...
7,526
7,528
L2197670.UP.FTS.B,
22.54%,
12/07/26
...
2,855
2,849
L2185222.UP.FTS.B,
23.13%,
12/07/26
...
4,442
4,439
FW2200346.UP.FTS.B,
23.2%,
12/07/26
..
8,441
610
FW2196522.UP.FTS.B,
23.26%,
12/07/26
.
4,541
4,543
L2195799.UP.FTS.B,
23.37%,
12/07/26
...
7,133
7,062
L2198106.UP.FTS.B,
23.42%,
12/07/26
...
5,048
1,419
FW2192438.UP.FTS.B,
23.66%,
12/07/26
.
9,105
9,108
FW2195703.UP.FTS.B,
24.25%,
12/07/26
.
1,371
1,371
FW2196745.UP.FTS.B,
24.4%,
12/07/26
..
4,536
4,535
FW2200190.UP.FTS.B,
24.4%,
12/07/26
..
1,906
1,906
L2200210.UP.FTS.B,
24.56%,
12/07/26
...
15,265
15,096
L2197090.UP.FTS.B,
24.84%,
12/07/26
...
3,861
3,850
L2200145.UP.FTS.B,
24.91%,
12/07/26
...
765
765
L2196714.UP.FTS.B,
25.02%,
12/07/26
...
2,251
2,244
L2195912.UP.FTS.B,
25.21%,
12/07/26
...
6,282
6,284
L2198146.UP.FTS.B,
25.25%,
12/07/26
...
1,609
1,609
L2196219.UP.FTS.B,
25.27%,
12/07/26
...
7,203
7,205
L2198546.UP.FTS.B,
25.32%,
12/07/26
...
1,150
1,150
L2199586.UP.FTS.B,
25.33%,
12/07/26
...
845
844
L2195664.UP.FTS.B,
25.4%,
12/07/26
....
255
36
L2199661.UP.FTS.B,
25.4%,
12/07/26
....
2,172
2,170
L2198050.UP.FTS.B,
25.44%,
12/07/26
...
3,995
3,988
L2197183.UP.FTS.B,
25.46%,
12/07/26
...
1,304
1,305
L2197844.UP.FTS.B,
25.47%,
12/07/26
...
4,027
4,019
L2198441.UP.FTS.B,
25.48%,
12/07/26
...
10,936
10,921
FW2197368.UP.FTS.B,
25.58%,
12/07/26
.
7,810
4,578
L2199814.UP.FTS.B,
25.68%,
12/07/26
...
4,609
4,610
FW2199793.UP.FTS.B,
25.9%,
12/07/26
..
6,154
6,155
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
105
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2196103.UP.FTS.B,
26.48%,
12/07/26
.
$
678
$
667
FW2195998.UP.FTS.B,
26.86%,
12/07/26
.
13,328
13,320
FW2199488.UP.FTS.B,
27.83%,
12/07/26
.
1,845
130
FW2200076.UP.FTS.B,
28.24%,
12/07/26
.
38,988
38,995
FW2200069.UP.FTS.B,
28.54%,
12/07/26
.
3,269
3,258
FW2198203.UP.FTS.B,
29.09%,
12/07/26
.
3,210
226
FW2198176.UP.FTS.B,
29.22%,
12/07/26
.
3,264
933
FW2195399.UP.FTS.B,
29.81%,
12/07/26
.
1,809
1,810
FW2198601.UP.FTS.B,
30.14%,
12/07/26
.
3,941
3,941
FW2199215.UP.FTS.B,
30.27%,
12/07/26
.
2,554
2,551
FW2198672.UP.FTS.B,
30.42%,
12/07/26
.
4,735
4,736
FW2198825.UP.FTS.B,
30.6%,
12/07/26
..
2,766
2,767
FW2197604.UP.FTS.B,
30.64%,
12/07/26
.
2,607
2,608
FW2198089.UP.FTS.B,
30.83%,
12/07/26
.
1,827
130
FW2198098.UP.FTS.B,
31%,
12/07/26
...
4,683
4,674
FW2196279.UP.FTS.B,
31.01%,
12/07/26
.
2,815
1,656
FW2198397.UP.FTS.B,
32.23%,
12/07/26
.
4,611
4,611
FW2199153.UP.FTS.B,
32.29%,
12/07/26
.
3,827
3,827
FW2199632.UP.FTS.B,
32.42%,
12/07/26
.
3,909
3,909
L2201511.UP.FTS.B,
5.03%,
12/08/26
....
7,266
7,209
L2201100.UP.FTS.B,
5.82%,
12/08/26
....
6,666
6,617
FW2201687.UP.FTS.B,
5.98%,
12/08/26
..
3,061
3,038
L2203382.UP.FTS.B,
6.5%,
12/08/26
....
6,703
6,656
L2203741.UP.FTS.B,
7.33%,
12/08/26
....
13,497
13,399
L2206413.UP.FTS.B,
7.44%,
12/08/26
....
6,080
6,032
L2201126.UP.FTS.B,
7.87%,
12/08/26
....
14,803
14,695
L2200918.UP.FTS.B,
8.74%,
12/08/26
....
2,936
2,913
L2201288.UP.FTS.B,
9.13%,
12/08/26
....
2,260
2,244
FW2202215.UP.FTS.B,
9.76%,
12/08/26
..
29,791
29,554
L2202140.UP.FTS.B,
10.05%,
12/08/26
...
2,615
2,596
L2202043.UP.FTS.B,
10.08%,
12/08/26
...
13,798
13,701
L2206922.UP.FTS.B,
10.23%,
12/08/26
...
11,792
11,677
L2205692.UP.FTS.B,
10.33%,
12/08/26
...
11,408
11,322
L2203887.UP.FTS.B,
10.82%,
12/08/26
...
5,552
5,511
L2202359.UP.FTS.B,
10.96%,
12/08/26
...
2,295
2,277
L2205258.UP.FTS.B,
10.97%,
12/08/26
...
2,540
2,520
L2202707.UP.FTS.B,
11.01%,
12/08/26
...
6,950
6,893
L2200873.UP.FTS.B,
11.09%,
12/08/26
...
6,259
6,213
L2205661.UP.FTS.B,
11.13%,
12/08/26
...
8,347
8,287
L2201926.UP.FTS.B,
11.2%,
12/08/26
....
1,422
740
FW2202691.UP.FTS.B,
11.21%,
12/08/26
.
2,088
2,073
L2204932.UP.FTS.B,
11.21%,
12/08/26
...
11,137
11,056
L2201522.UP.FTS.B,
11.25%,
12/08/26
...
13,925
13,824
L2200051.UP.FTS.B,
11.78%,
12/08/26
...
7,410
7,357
L2204302.UP.FTS.B,
11.78%,
12/08/26
...
2,268
116
L2205067.UP.FTS.B,
11.79%,
12/08/26
...
8,390
8,330
FW2201210.UP.FTS.B,
12.48%,
12/08/26
.
1,409
1,398
L2201401.UP.FTS.B,
12.51%,
12/08/26
...
4,921
4,885
L2201130.UP.FTS.B,
12.56%,
12/08/26
...
4,032
292
L2201683.UP.FTS.B,
13.05%,
12/08/26
...
2,117
2,102
L2203910.UP.FTS.B,
13.18%,
12/08/26
...
8,126
8,060
L2202867.UP.FTS.B,
13.27%,
12/08/26
...
3,222
3,194
FW2206272.UP.FTS.B,
13.35%,
12/08/26
.
2,211
561
L2206744.UP.FTS.B,
13.51%,
12/08/26
...
21,246
21,096
L2202159.UP.FTS.B,
13.54%,
12/08/26
...
17,710
17,591
L2202534.UP.FTS.B,
13.68%,
12/08/26
...
10,637
10,562
L2203497.UP.FTS.B,
13.78%,
12/08/26
...
4,258
4,228
L2203856.UP.FTS.B,
13.82%,
12/08/26
...
21,402
21,233
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2200884.UP.FTS.B,
13.99%,
12/08/26
...
$
5,260
$
5,223
L2204734.UP.FTS.B,
13.99%,
12/08/26
...
2,617
2,598
L2189789.UP.FTS.B,
14.09%,
12/08/26
...
2,391
2,364
L2201701.UP.FTS.B,
14.19%,
12/08/26
...
4,983
4,948
L2200543.UP.FTS.B,
14.23%,
12/08/26
...
3,560
3,535
FW2206534.UP.FTS.B,
14.38%,
12/08/26
.
2,279
2,263
FW2201365.UP.FTS.B,
14.41%,
12/08/26
.
10,337
10,265
L2200506.UP.FTS.B,
14.67%,
12/08/26
...
4,286
4,256
L2205095.UP.FTS.B,
14.72%,
12/08/26
...
1,363
1,345
L2205970.UP.FTS.B,
14.78%,
12/08/26
...
1,922
1,908
L2203172.UP.FTS.B,
14.86%,
12/08/26
...
7,153
7,103
FW2203636.UP.FTS.B,
14.99%,
12/08/26
.
3,587
3,559
L2206751.UP.FTS.B,
15.19%,
12/08/26
...
9,594
9,523
L2201429.UP.FTS.B,
15.27%,
12/08/26
...
8,563
8,502
L2201509.UP.FTS.B,
15.29%,
12/08/26
...
2,376
2,345
L2203888.UP.FTS.B,
15.35%,
12/08/26
...
2,153
2,138
L2202058.UP.FTS.B,
15.4%,
12/08/26
....
2,154
2,139
L2201650.UP.FTS.B,
15.45%,
12/08/26
...
2,874
2,854
L2205307.UP.FTS.B,
15.66%,
12/08/26
...
1,447
1,434
L2193881.UP.FTS.B,
15.75%,
12/08/26
...
3,168
3,144
L2200487.UP.FTS.B,
15.87%,
12/08/26
...
4,630
4,594
L2205432.UP.FTS.B,
15.94%,
12/08/26
...
17,831
17,697
L2206448.UP.FTS.B,
16%,
12/08/26
.....
7,572
7,520
L2195672.UP.FTS.B,
16.2%,
12/08/26
....
9,244
9,176
L2201272.UP.FTS.B,
16.5%,
12/08/26
....
3,603
3,577
L2202979.UP.FTS.B,
16.63%,
12/08/26
...
1,449
1,439
L2203269.UP.FTS.B,
16.66%,
12/08/26
...
3,261
3,237
L2205448.UP.FTS.B,
16.81%,
12/08/26
...
8,347
607
L2205367.UP.FTS.B,
16.83%,
12/08/26
...
2,268
2,249
L2205691.UP.FTS.B,
16.93%,
12/08/26
...
34,847
34,593
L2206760.UP.FTS.B,
17.01%,
12/08/26
...
33,053
32,773
L2200739.UP.FTS.B,
17.06%,
12/08/26
...
1,962
1,947
L2200406.UP.FTS.B,
17.28%,
12/08/26
...
3,202
3,179
L2201984.UP.FTS.B,
17.35%,
12/08/26
...
4,679
4,643
L2204275.UP.FTS.B,
17.48%,
12/08/26
...
4,062
4,032
L2203876.UP.FTS.B,
17.53%,
12/08/26
...
16,036
15,919
L2202653.UP.FTS.B,
17.59%,
12/08/26
...
9,043
8,977
L2203323.UP.FTS.B,
17.63%,
12/08/26
...
881
869
L2200437.UP.FTS.B,
17.72%,
12/08/26
...
1,817
1,802
L2202435.UP.FTS.B,
17.87%,
12/08/26
...
3,918
560
L2206114.UP.FTS.B,
17.92%,
12/08/26
...
1,462
1,451
L2201870.UP.FTS.B,
17.98%,
12/08/26
...
2,194
2,176
L2201314.UP.FTS.B,
18.04%,
12/08/26
...
4,068
295
L2202238.UP.FTS.B,
18.11%,
12/08/26
...
9,931
2,649
L2198222.UP.FTS.B,
18.15%,
12/08/26
...
2,636
2,615
FW2200514.UP.FTS.B,
18.68%,
12/08/26
.
7,539
4,324
L2202316.UP.FTS.B,
18.78%,
12/08/26
...
1,839
1,820
L2203614.UP.FTS.B,
18.9%,
12/08/26
....
11,053
10,942
FW2203630.UP.FTS.B,
18.91%,
12/08/26
.
7,367
7,294
FW2204149.UP.FTS.B,
19.13%,
12/08/26
.
3,692
3,655
FW2201703.UP.FTS.B,
19.15%,
12/08/26
.
2,569
2,547
L2171699.UP.FTS.B,
19.26%,
12/08/26
...
7,379
7,373
FW2201480.UP.FTS.B,
19.28%,
12/08/26
.
5,179
5,134
L2198227.UP.FTS.B,
19.34%,
12/08/26
...
1,701
123
L2204805.UP.FTS.B,
19.42%,
12/08/26
...
7,900
7,836
L2204012.UP.FTS.B,
19.62%,
12/08/26
...
2,474
345
L2201833.UP.FTS.B,
19.78%,
12/08/26
...
3,697
3,667
L2203346.UP.FTS.B,
19.86%,
12/08/26
...
4,740
4,706
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2203970.UP.FTS.B,
19.89%,
12/08/26
...
$
1,630
$
1,614
L2203336.UP.FTS.B,
19.94%,
12/08/26
...
2,429
2,408
FW2185665.UP.FTS.B,
20.17%,
12/08/26
.
11,091
11,009
L2200446.UP.FTS.B,
20.19%,
12/08/26
...
816
809
FW2202220.UP.FTS.B,
20.45%,
12/08/26
.
15,226
8,951
L2198053.UP.FTS.B,
20.47%,
12/08/26
...
2,825
2,803
L2200528.UP.FTS.B,
20.47%,
12/08/26
...
2,603
2,582
L2201790.UP.FTS.B,
20.6%,
12/08/26
....
2,084
2,063
FW2201844.UP.FTS.B,
20.97%,
12/08/26
.
1,811
1,778
L2202584.UP.FTS.B,
20.98%,
12/08/26
...
5,626
5,572
FW2205623.UP.FTS.B,
21.01%,
12/08/26
.
8,207
8,219
L2203340.UP.FTS.B,
21.11%,
12/08/26
...
3,751
3,750
L2201499.UP.FTS.B,
21.34%,
12/08/26
...
8,225
8,237
L2203266.UP.FTS.B,
21.37%,
12/08/26
...
3,788
3,788
L2203685.UP.FTS.B,
21.52%,
12/08/26
...
2,620
2,624
L2207000.UP.FTS.B,
21.53%,
12/08/26
...
14,973
14,853
L2206634.UP.FTS.B,
21.58%,
12/08/26
...
1,648
1,650
FW2200309.UP.FTS.B,
21.86%,
12/08/26
.
2,691
2,694
L2200826.UP.FTS.B,
22.16%,
12/08/26
...
7,520
7,514
L2204816.UP.FTS.B,
22.27%,
12/08/26
...
7,116
7,045
FW2202543.UP.FTS.B,
22.46%,
12/08/26
.
1,431
1,420
L2200624.UP.FTS.B,
22.5%,
12/08/26
....
1,507
1,495
L2204327.UP.FTS.B,
22.78%,
12/08/26
...
97
95
L2201275.UP.FTS.B,
22.92%,
12/08/26
...
2,855
2,851
L2203293.UP.FTS.B,
22.93%,
12/08/26
...
1,284
1,274
FW2203667.UP.FTS.B,
23.01%,
12/08/26
.
11,337
11,354
L2203557.UP.FTS.B,
23.55%,
12/08/26
...
1,239
1,236
L2200929.UP.FTS.B,
23.61%,
12/08/26
...
1,883
1,885
L2205223.UP.FTS.B,
23.62%,
12/08/26
...
3,707
3,709
L2200784.UP.FTS.B,
23.63%,
12/08/26
...
7,979
1,156
L2197277.UP.FTS.B,
23.68%,
12/08/26
...
5,021
2,947
L2197979.UP.FTS.B,
23.7%,
12/08/26
....
3,127
883
L2205882.UP.FTS.B,
23.83%,
12/08/26
...
2,279
2,263
L2204897.UP.FTS.B,
23.87%,
12/08/26
...
20,207
20,058
FW2200085.UP.FTS.B,
23.88%,
12/08/26
.
2,280
2,283
FW2202739.UP.FTS.B,
24.09%,
12/08/26
.
1,826
1,829
L2205789.UP.FTS.B,
24.11%,
12/08/26
...
4,565
4,572
L2201603.UP.FTS.B,
24.38%,
12/08/26
...
3,848
3,848
L2199578.UP.FTS.B,
24.39%,
12/08/26
...
1,156
666
L2204440.UP.FTS.B,
24.51%,
12/08/26
...
915
917
L2200752.UP.FTS.B,
24.63%,
12/08/26
...
764
763
FW2200668.UP.FTS.B,
24.66%,
12/08/26
.
9,544
9,559
L2205328.UP.FTS.B,
24.68%,
12/08/26
...
1,557
915
L2205953.UP.FTS.B,
24.83%,
12/08/26
...
1,208
1,188
L2201876.UP.FTS.B,
24.84%,
12/08/26
...
841
842
L2198801.UP.FTS.B,
24.91%,
12/08/26
...
2,482
177
L2200418.UP.FTS.B,
24.91%,
12/08/26
...
5,859
5,811
L2201388.UP.FTS.B,
24.93%,
12/08/26
...
2,241
2,241
L2201658.UP.FTS.B,
24.93%,
12/08/26
...
994
986
L2200868.UP.FTS.B,
24.96%,
12/08/26
...
1,868
1,858
L2203217.UP.FTS.B,
25.16%,
12/08/26
...
851
851
L2202329.UP.FTS.B,
25.17%,
12/08/26
...
1,855
1,841
L2205039.UP.FTS.B,
25.2%,
12/08/26
....
2,676
1,531
L2202422.UP.FTS.B,
25.21%,
12/08/26
...
2,802
2,805
L2201763.UP.FTS.B,
25.22%,
12/08/26
...
5,332
5,288
L2203014.UP.FTS.B,
25.25%,
12/08/26
...
3,831
3,837
L2201547.UP.FTS.B,
25.28%,
12/08/26
...
1,039
1,025
L2204236.UP.FTS.B,
25.3%,
12/08/26
....
4,443
4,432
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2203159.UP.FTS.B,
25.32%,
12/08/26
...
$
6,245
$
6,153
L2201267.UP.FTS.B,
25.35%,
12/08/26
...
863
862
L2207019.UP.FTS.B,
25.36%,
12/08/26
...
1,234
1,229
L2203473.UP.FTS.B,
25.37%,
12/08/26
...
1,684
1,671
L2206798.UP.FTS.B,
25.37%,
12/08/26
...
1,261
1,242
L2204385.UP.FTS.B,
25.38%,
12/08/26
...
920
922
L2204272.UP.FTS.B,
25.42%,
12/08/26
...
1,209
1,207
L2201606.UP.FTS.B,
25.43%,
12/08/26
...
2,071
2,074
L2200539.UP.FTS.B,
25.48%,
12/08/26
...
4,148
4,145
L2200596.UP.FTS.B,
25.49%,
12/08/26
...
7,975
7,987
L2202382.UP.FTS.B,
25.5%,
12/08/26
....
1,381
1,383
L2204469.UP.FTS.B,
25.55%,
12/08/26
...
2,406
2,406
L2206619.UP.FTS.B,
25.63%,
12/08/26
...
5,760
5,769
L2201626.UP.FTS.B,
25.65%,
12/08/26
...
4,916
4,923
FW2202207.UP.FTS.B,
25.82%,
12/08/26
.
8,215
8,226
L2200110.UP.FTS.B,
25.93%,
12/08/26
...
5,773
5,769
L2205529.UP.FTS.B,
25.96%,
12/08/26
...
5,386
5,394
L2200501.UP.FTS.B,
26.06%,
12/08/26
...
1,694
1,697
FW2204619.UP.FTS.B,
26.36%,
12/08/26
.
1,928
1,931
L2200760.UP.FTS.B,
26.49%,
12/08/26
...
8,492
8,505
L2203179.UP.FTS.B,
26.54%,
12/08/26
...
3,368
239
FW2205293.UP.FTS.B,
26.73%,
12/08/26
.
3,092
3,096
FW2205802.UP.FTS.B,
27%,
12/08/26
...
2,755
2,756
FW2205878.UP.FTS.B,
27.25%,
12/08/26
.
1,743
125
FW2200840.UP.FTS.B,
27.39%,
12/08/26
.
6,518
6,529
FW2205131.UP.FTS.B,
27.64%,
12/08/26
.
2,409
2,413
FW2202637.UP.FTS.B,
27.67%,
12/08/26
.
8,828
2,524
FW2206331.UP.FTS.B,
28.09%,
12/08/26
.
8,182
8,195
FW2200263.UP.FTS.B,
28.29%,
12/08/26
.
14,040
14,062
FW2202084.UP.FTS.B,
28.33%,
12/08/26
.
1,190
700
FW2206080.UP.FTS.B,
28.43%,
12/08/26
.
2,546
2,542
FW2202420.UP.FTS.B,
28.72%,
12/08/26
.
3,703
3,699
FW2203128.UP.FTS.B,
28.72%,
12/08/26
.
785
785
FW2200463.UP.FTS.B,
28.91%,
12/08/26
.
939
941
FW2201925.UP.FTS.B,
29.05%,
12/08/26
.
987
984
FW2200712.UP.FTS.B,
29.25%,
12/08/26
.
2,487
177
FW2195267.UP.FTS.B,
29.27%,
12/08/26
.
5,985
1,705
FW2204212.UP.FTS.B,
29.48%,
12/08/26
.
12,798
12,818
FW2201641.UP.FTS.B,
29.67%,
12/08/26
.
6,445
6,455
FW2206862.UP.FTS.B,
29.87%,
12/08/26
.
3,778
3,784
FW2204427.UP.FTS.B,
30.34%,
12/08/26
.
6,311
6,321
FW2203423.UP.FTS.B,
30.49%,
12/08/26
.
837
–
FW2202866.UP.FTS.B,
30.6%,
12/08/26
..
917
265
FW2201735.UP.FTS.B,
30.95%,
12/08/26
.
1,006
144
FW2203290.UP.FTS.B,
31.07%,
12/08/26
.
1,109
1,111
FW2206683.UP.FTS.B,
31.07%,
12/08/26
.
1,642
1,643
FW2201843.UP.FTS.B,
31.08%,
12/08/26
.
1,357
1,357
FW2205002.UP.FTS.B,
31.08%,
12/08/26
.
2,456
2,460
FW2200524.UP.FTS.B,
31.14%,
12/08/26
.
5,214
5,203
FW2201347.UP.FTS.B,
31.17%,
12/08/26
.
2,021
2,022
FW2199311.UP.FTS.B,
31.18%,
12/08/26
.
1,110
1,112
FW2201772.UP.FTS.B,
31.27%,
12/08/26
.
4,492
1,283
FW2203562.UP.FTS.B,
32.34%,
12/08/26
.
4,786
4,794
FW2199186.UP.FTS.B,
25.95%,
12/09/26
.
1,935
1,932
L2197561.UP.FTS.B,
20.81%,
12/11/26
...
3,734
3,736
FW2201142.UP.FTS.B,
31.05%,
12/12/26
.
795
796
L2202911.UP.FTS.B,
21.13%,
12/14/26
...
4,822
4,781
L2205672.UP.FTS.B,
16.4%,
12/15/26
....
19,216
2,593
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
107
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2196899.UP.FTS.B,
24.65%,
12/15/26
...
$
4,452
$
4,454
FW2199479.UP.FTS.B,
28.66%,
12/15/26
.
11,788
11,810
FW2197133.UP.FTS.B,
31.45%,
12/15/26
.
3,524
3,526
FW2199126.UP.FTS.B,
31.54%,
12/15/26
.
4,953
4,962
FW2198165.UP.FTS.B,
14.07%,
12/16/26
.
999
992
L2203118.UP.FTS.B,
8.78%,
12/17/26
....
5,451
5,412
L2203117.UP.FTS.B,
13.79%,
12/17/26
...
6,124
6,081
FW2198942.UP.FTS.B,
24.77%,
12/18/26
.
14,793
14,827
FW2205704.UP.FTS.B,
28.05%,
12/18/26
.
3,935
3,935
FW2197646.UP.FTS.B,
16.34%,
12/22/26
.
6,019
5,958
L2195329.UP.FTS.B,
17.11%,
12/22/26
...
3,797
3,767
FW2198520.UP.FTS.B,
20.07%,
12/22/26
.
7,438
7,372
L2196637.UP.FTS.B,
24.42%,
12/22/26
...
11,471
11,480
L2203530.UP.FTS.B,
9.65%,
12/23/26
....
15,677
1,139
L2203381.UP.FTS.B,
18.04%,
12/23/26
...
7,737
7,683
FW2206855.UP.FTS.B,
19.38%,
12/23/26
.
3,720
3,696
L2200814.UP.FTS.B,
19.64%,
12/23/26
...
4,176
3,945
L2202447.UP.FTS.B,
25.34%,
12/23/26
...
1,609
456
FW2411209.UP.FTS.B,
5.24%,
1/11/27
...
13,584
13,486
L2411009.UP.FTS.B,
5.26%,
1/11/27
.....
23,775
23,604
FW2412321.UP.FTS.B,
5.36%,
1/11/27
...
33,994
33,749
L2402399.UP.FTS.B,
6.09%,
1/11/27
.....
18,531
18,398
FW2408524.UP.FTS.B,
6.18%,
1/11/27
...
7,391
7,338
L2413519.UP.FTS.B,
6.19%,
1/11/27
.....
17,144
17,018
FW2411884.UP.FTS.B,
6.2%,
1/11/27
....
17,111
16,988
L2411160.UP.FTS.B,
7.26%,
1/11/27
.....
10,352
10,278
FW2406810.UP.FTS.B,
7.3%,
1/11/27
....
4,274
4,243
L2408660.UP.FTS.B,
7.61%,
1/11/27
.....
4,775
4,739
L2412785.UP.FTS.B,
7.81%,
1/11/27
.....
1,386
1,376
L2412559.UP.FTS.B,
7.83%,
1/11/27
.....
3,312
3,284
L2408557.UP.FTS.B,
7.86%,
1/11/27
.....
3,476
3,449
L2407811.UP.FTS.B,
7.94%,
1/11/27
.....
4,566
4,525
L2412462.UP.FTS.B,
7.99%,
1/11/27
.....
2,537
621
L2413039.UP.FTS.B,
8.03%,
1/11/27
.....
10,414
10,336
FW2413850.UP.FTS.B,
8.58%,
1/11/27
...
7,462
7,406
L2413727.UP.FTS.B,
8.61%,
1/11/27
.....
2,999
2,976
L2412142.UP.FTS.B,
8.74%,
1/11/27
.....
11,796
11,709
FW2410081.UP.FTS.B,
8.78%,
1/11/27
...
12,570
12,476
FW2409381.UP.FTS.B,
8.85%,
1/11/27
...
3,144
3,120
L2407187.UP.FTS.B,
8.85%,
1/11/27
.....
3,485
3,459
L2413316.UP.FTS.B,
8.98%,
1/11/27
.....
8,398
8,331
FW2411415.UP.FTS.B,
9.04%,
1/11/27
...
4,785
4,749
FW2413111.UP.FTS.B,
9.07%,
1/11/27
...
5,576
5,534
FW2411385.UP.FTS.B,
9.23%,
1/11/27
...
6,306
6,259
FW2413046.UP.FTS.B,
9.47%,
1/11/27
...
4,594
4,555
L2410685.UP.FTS.B,
9.48%,
1/11/27
.....
6,542
1,635
L2412775.UP.FTS.B,
9.82%,
1/11/27
.....
17,417
17,279
FW2406985.UP.FTS.B,
9.83%,
1/11/27
...
2,111
2,096
L2412433.UP.FTS.B,
9.93%,
1/11/27
.....
5,987
5,941
L2404630.UP.FTS.B,
10.03%,
1/11/27
....
35,246
34,985
L2411759.UP.FTS.B,
10.11%,
1/11/27
....
16,441
2,192
L2411458.UP.FTS.B,
10.12%,
1/11/27
....
1,552
1,540
L2411928.UP.FTS.B,
10.18%,
1/11/27
....
3,528
3,501
L2408600.UP.FTS.B,
10.21%,
1/11/27
....
3,023
3,000
L2408318.UP.FTS.B,
10.27%,
1/11/27
....
2,825
2,803
L2413945.UP.FTS.B,
10.53%,
1/11/27
....
15,564
15,443
FW2412113.UP.FTS.B,
10.85%,
1/11/27
..
18,848
2,567
L2411297.UP.FTS.B,
10.9%,
1/11/27
.....
6,314
6,265
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2413322.UP.FTS.B,
10.93%,
1/11/27
....
$
7,522
$
7,464
L2413229.UP.FTS.B,
11.26%,
1/11/27
....
12,785
12,686
L2411571.UP.FTS.B,
11.47%,
1/11/27
....
5,501
5,456
L2413044.UP.FTS.B,
11.78%,
1/11/27
....
5,978
1,539
FW2408471.UP.FTS.B,
11.94%,
1/11/27
..
4,298
4,261
L2405206.UP.FTS.B,
12.1%,
1/11/27
.....
17,242
17,095
L2370107.UP.FTS.B,
12.85%,
1/11/27
....
3,525
3,498
L2412100.UP.FTS.B,
13.07%,
1/11/27
....
4,715
4,676
L2409206.UP.FTS.B,
13.1%,
1/11/27
.....
2,995
761
L2411596.UP.FTS.B,
13.42%,
1/11/27
....
3,613
3,585
FW2412293.UP.FTS.B,
13.57%,
1/11/27
..
3,809
3,779
FW2412839.UP.FTS.B,
13.8%,
1/11/27
...
7,777
7,710
FW2407206.UP.FTS.B,
13.82%,
1/11/27
..
4,346
4,313
FW2410061.UP.FTS.B,
13.89%,
1/11/27
..
14,495
14,383
L2409821.UP.FTS.B,
14.42%,
1/11/27
....
3,928
3,898
L2410324.UP.FTS.B,
14.46%,
1/11/27
....
14,367
7,685
L2405215.UP.FTS.B,
14.48%,
1/11/27
....
19,590
19,408
L2408774.UP.FTS.B,
14.55%,
1/11/27
....
2,912
2,889
L2410681.UP.FTS.B,
14.74%,
1/11/27
....
1,831
1,816
L2408843.UP.FTS.B,
14.84%,
1/11/27
....
2,178
2,159
L2413295.UP.FTS.B,
15.96%,
1/11/27
....
4,974
1,330
L2408436.UP.FTS.B,
15.99%,
1/11/27
....
29,411
29,170
FW2412862.UP.FTS.B,
16.01%,
1/11/27
..
8,348
602
L2379748.UP.FTS.B,
16.06%,
1/11/27
....
3,336
1,865
L2413797.UP.FTS.B,
16.41%,
1/11/27
....
7,372
7,312
L2406986.UP.FTS.B,
16.62%,
1/11/27
....
3,692
3,662
L2412621.UP.FTS.B,
16.62%,
1/11/27
....
2,954
2,930
L2407022.UP.FTS.B,
16.96%,
1/11/27
....
3,700
3,670
FW2411635.UP.FTS.B,
17.05%,
1/11/27
..
3,776
3,742
L2411840.UP.FTS.B,
17.48%,
1/11/27
....
21,193
21,027
L2406982.UP.FTS.B,
17.53%,
1/11/27
....
6,762
6,700
L2412808.UP.FTS.B,
17.54%,
1/11/27
....
7,429
7,368
FW2411466.UP.FTS.B,
17.75%,
1/11/27
..
1,488
1,476
L2407285.UP.FTS.B,
17.96%,
1/11/27
....
3,725
3,691
FW2407640.UP.FTS.B,
18.05%,
1/11/27
..
8,199
8,136
L2410765.UP.FTS.B,
18.19%,
1/11/27
....
5,545
5,497
L2410306.UP.FTS.B,
18.23%,
1/11/27
....
5,241
5,197
FW2413451.UP.FTS.B,
18.29%,
1/11/27
..
1,866
1,849
L2413233.UP.FTS.B,
18.45%,
1/11/27
....
1,868
1,853
L2412345.UP.FTS.B,
18.51%,
1/11/27
....
2,510
2,486
L2413035.UP.FTS.B,
18.66%,
1/11/27
....
2,195
2,173
FW2406958.UP.FTS.B,
18.83%,
1/11/27
..
1,845
1,830
L2407160.UP.FTS.B,
18.83%,
1/11/27
....
13,110
13,002
FW2406995.UP.FTS.B,
18.92%,
1/11/27
..
8,947
8,855
L2409397.UP.FTS.B,
18.93%,
1/11/27
....
6,681
951
L2413429.UP.FTS.B,
19.09%,
1/11/27
....
518
512
L2407535.UP.FTS.B,
19.16%,
1/11/27
....
4,202
1,127
L2412374.UP.FTS.B,
19.25%,
1/11/27
....
9,053
9,039
FW2410395.UP.FTS.B,
20.34%,
1/11/27
..
3,781
3,747
FW2412607.UP.FTS.B,
20.39%,
1/11/27
..
3,633
3,635
FW2410858.UP.FTS.B,
20.48%,
1/11/27
..
1,675
1,659
FW2412890.UP.FTS.B,
20.68%,
1/11/27
..
7,657
7,648
FW2410350.UP.FTS.B,
20.75%,
1/11/27
..
7,596
7,583
L2407644.UP.FTS.B,
21.08%,
1/11/27
....
3,039
3,040
L2410708.UP.FTS.B,
21.43%,
1/11/27
....
1,826
1,809
L2410907.UP.FTS.B,
21.6%,
1/11/27
.....
2,674
2,669
FW2413140.UP.FTS.B,
22.12%,
1/11/27
..
3,823
3,824
L2413585.UP.FTS.B,
22.13%,
1/11/27
....
6,165
6,156
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2413345.UP.FTS.B,
22.45%,
1/11/27
....
$
4,619
$
4,612
L2410843.UP.FTS.B,
22.81%,
1/11/27
....
3,455
3,456
FW2412276.UP.FTS.B,
22.84%,
1/11/27
..
2,971
2,968
L2410433.UP.FTS.B,
22.92%,
1/11/27
....
1,537
1,522
FW2409793.UP.FTS.B,
22.96%,
1/11/27
..
7,828
4,604
L2410796.UP.FTS.B,
23%,
1/11/27
......
5,495
5,494
L2410622.UP.FTS.B,
23.11%,
1/11/27
....
3,692
3,693
L2413027.UP.FTS.B,
23.16%,
1/11/27
....
6,154
6,156
L2399356.UP.FTS.B,
23.25%,
1/11/27
....
5,069
366
FW2412083.UP.FTS.B,
23.34%,
1/11/27
..
3,542
3,543
L2408703.UP.FTS.B,
23.63%,
1/11/27
....
4,518
4,514
FW2413529.UP.FTS.B,
23.86%,
1/11/27
..
1,545
1,546
L2409471.UP.FTS.B,
23.96%,
1/11/27
....
4,637
4,639
L2412292.UP.FTS.B,
24.03%,
1/11/27
....
14,293
14,295
L2413379.UP.FTS.B,
24.03%,
1/11/27
....
15,469
15,474
L2413360.UP.FTS.B,
24.07%,
1/11/27
....
1,695
122
FW2412786.UP.FTS.B,
24.26%,
1/11/27
..
6,582
6,584
FW2409686.UP.FTS.B,
24.48%,
1/11/27
..
5,432
5,433
FW2411057.UP.FTS.B,
24.91%,
1/11/27
..
2,845
811
FW2407461.UP.FTS.B,
25.01%,
1/11/27
..
3,889
3,890
L2410747.UP.FTS.B,
25.02%,
1/11/27
....
1,167
83
L2407824.UP.FTS.B,
25.08%,
1/11/27
....
3,190
3,190
L2412420.UP.FTS.B,
25.12%,
1/11/27
....
1,250
89
L2402682.UP.FTS.B,
25.13%,
1/11/27
....
856
856
L2410276.UP.FTS.B,
25.16%,
1/11/27
....
718
715
L2412631.UP.FTS.B,
25.16%,
1/11/27
....
1,012
1,012
FW2412505.UP.FTS.B,
25.22%,
1/11/27
..
3,659
3,660
L2406959.UP.FTS.B,
25.22%,
1/11/27
....
8,068
8,019
L2413584.UP.FTS.B,
25.24%,
1/11/27
....
934
926
L2413560.UP.FTS.B,
25.29%,
1/11/27
....
2,741
2,737
L2410164.UP.FTS.B,
25.3%,
1/11/27
.....
970
276
FW2411982.UP.FTS.B,
25.34%,
1/11/27
..
3,901
3,894
L2411780.UP.FTS.B,
25.37%,
1/11/27
....
2,604
2,583
L2413809.UP.FTS.B,
25.37%,
1/11/27
....
6,158
6,160
L2409900.UP.FTS.B,
25.4%,
1/11/27
.....
781
780
L2411491.UP.FTS.B,
25.4%,
1/11/27
.....
1,833
1,812
L2412889.UP.FTS.B,
25.46%,
1/11/27
....
1,520
895
L2411973.UP.FTS.B,
25.47%,
1/11/27
....
1,013
1,014
L2411979.UP.FTS.B,
25.48%,
1/11/27
....
818
817
L2412081.UP.FTS.B,
25.48%,
1/11/27
....
4,845
4,843
L2411173.UP.FTS.B,
25.49%,
1/11/27
....
1,121
660
L2413595.UP.FTS.B,
25.51%,
1/11/27
....
2,457
2,452
FW2412928.UP.FTS.B,
25.61%,
1/11/27
..
1,573
1,571
FW2407809.UP.FTS.B,
25.64%,
1/11/27
..
9,163
9,133
L2406866.UP.FTS.B,
25.98%,
1/11/27
....
1,534
110
L2413661.UP.FTS.B,
25.98%,
1/11/27
....
2,147
312
L2408715.UP.FTS.B,
26.2%,
1/11/27
.....
11,101
11,097
L2412410.UP.FTS.B,
26.21%,
1/11/27
....
5,905
5,895
FW2411046.UP.FTS.B,
26.47%,
1/11/27
..
7,006
7,005
L2409231.UP.FTS.B,
26.66%,
1/11/27
....
3,732
3,724
L2410155.UP.FTS.B,
26.8%,
1/11/27
.....
6,284
6,285
FW2410552.UP.FTS.B,
27%,
1/11/27
....
1,229
87
FW2408955.UP.FTS.B,
27.26%,
1/11/27
..
1,973
1,969
FW2410353.UP.FTS.B,
27.55%,
1/11/27
..
7,141
7,129
FW2412354.UP.FTS.B,
27.69%,
1/11/27
..
790
790
FW2406988.UP.FTS.B,
27.86%,
1/11/27
..
3,950
3,951
FW2408818.UP.FTS.B,
27.86%,
1/11/27
..
8,857
8,832
FW2410159.UP.FTS.B,
27.94%,
1/11/27
..
3,505
3,502
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2405234.UP.FTS.B,
28.71%,
1/11/27
..
$
848
$
843
FW2411293.UP.FTS.B,
29.42%,
1/11/27
..
1,275
1,275
FW2407567.UP.FTS.B,
29.43%,
1/11/27
..
3,188
3,188
FW2407055.UP.FTS.B,
29.46%,
1/11/27
..
3,762
3,751
FW2408568.UP.FTS.B,
29.5%,
1/11/27
...
3,586
3,586
FW2403902.UP.FTS.B,
29.51%,
1/11/27
..
1,656
1,652
FW2410442.UP.FTS.B,
29.53%,
1/11/27
..
1,548
913
FW2407473.UP.FTS.B,
30.14%,
1/11/27
..
1,647
1,622
FW2412942.UP.FTS.B,
30.18%,
1/11/27
..
3,080
3,076
FW2413390.UP.FTS.B,
30.33%,
1/11/27
..
3,485
3,483
FW2407748.UP.FTS.B,
30.43%,
1/11/27
..
1,922
1,922
FW2413147.UP.FTS.B,
30.55%,
1/11/27
..
3,273
3,273
FW2412502.UP.FTS.B,
30.76%,
1/11/27
..
12,031
12,031
FW2410401.UP.FTS.B,
30.79%,
1/11/27
..
1,059
1,057
FW2411299.UP.FTS.B,
30.92%,
1/11/27
..
1,369
1,366
FW2392367.UP.FTS.B,
30.94%,
1/11/27
..
1,833
1,832
FW2411172.UP.FTS.B,
30.96%,
1/11/27
..
4,657
4,657
FW2411010.UP.FTS.B,
31.02%,
1/11/27
..
3,615
3,615
FW2409966.UP.FTS.B,
31.03%,
1/11/27
..
2,650
2,650
FW2407947.UP.FTS.B,
31.05%,
1/11/27
..
2,892
2,892
FW2411701.UP.FTS.B,
31.06%,
1/11/27
..
1,626
1,613
FW2411738.UP.FTS.B,
31.08%,
1/11/27
..
1,446
1,446
FW2413942.UP.FTS.B,
31.15%,
1/11/27
..
965
965
FW2410271.UP.FTS.B,
31.19%,
1/11/27
..
1,531
1,528
FW2411062.UP.FTS.B,
32.46%,
1/11/27
..
5,663
5,663
FW2410751.UP.FTS.B,
34.47%,
1/11/27
..
4,003
4,002
L2419418.UP.FTS.B,
5.42%,
1/12/27
....
10,994
10,913
L2414458.UP.FTS.B,
5.96%,
1/12/27
....
20,492
20,352
L2414801.UP.FTS.B,
6.11%,
1/12/27
.....
7,522
7,470
L2419361.UP.FTS.B,
6.41%,
1/12/27
....
1,028
1,021
L2402757.UP.FTS.B,
6.51%,
1/12/27
....
4,803
4,770
L2416784.UP.FTS.B,
6.53%,
1/12/27
....
1,372
1,363
L2418799.UP.FTS.B,
6.56%,
1/12/27
....
8,252
8,195
L2417049.UP.FTS.B,
6.6%,
1/12/27
.....
3,725
3,696
FW2414856.UP.FTS.B,
6.64%,
1/12/27
...
687
682
L2415375.UP.FTS.B,
6.85%,
1/12/27
....
4,134
4,106
L2416695.UP.FTS.B,
6.86%,
1/12/27
....
3,096
3,075
L2414595.UP.FTS.B,
7.05%,
1/12/27
....
5,168
5,131
L2419333.UP.FTS.B,
7.27%,
1/12/27
....
9,648
9,579
FW2415988.UP.FTS.B,
7.29%,
1/12/27
...
13,084
12,986
L2410292.UP.FTS.B,
7.3%,
1/12/27
.....
2,897
2,874
L2417990.UP.FTS.B,
7.34%,
1/12/27
....
34,528
34,285
L2417199.UP.FTS.B,
7.43%,
1/12/27
....
31,053
30,828
FW2419541.UP.FTS.B,
7.5%,
1/12/27
....
10,371
10,298
L2414153.UP.FTS.B,
7.51%,
1/12/27
....
1,729
1,717
L2417691.UP.FTS.B,
7.69%,
1/12/27
....
15,727
15,622
L2414031.UP.FTS.B,
7.78%,
1/12/27
....
11,086
11,009
L2417969.UP.FTS.B,
8.13%,
1/12/27
....
5,257
2,732
FW2416734.UP.FTS.B,
8.22%,
1/12/27
...
3,180
3,156
L2416137.UP.FTS.B,
8.26%,
1/12/27
....
7,233
7,183
L2417948.UP.FTS.B,
8.36%,
1/12/27
....
769
763
FW2415662.UP.FTS.B,
8.6%,
1/12/27
....
4,883
4,849
L2418166.UP.FTS.B,
8.62%,
1/12/27
....
3,556
1,848
FW2416458.UP.FTS.B,
9.06%,
1/12/27
...
2,245
2,229
L2416545.UP.FTS.B,
9.07%,
1/12/27
....
9,678
9,604
L2418009.UP.FTS.B,
9.08%,
1/12/27
....
8,398
8,340
L2414926.UP.FTS.B,
9.43%,
1/12/27
....
21,848
21,688
L2413887.UP.FTS.B,
9.49%,
1/12/27
....
4,207
4,177
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
109
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2419389.UP.FTS.B,
9.58%,
1/12/27
...
$
905
$
513
L2418929.UP.FTS.B,
9.6%,
1/12/27
.....
11,001
2,705
FW2415990.UP.FTS.B,
9.9%,
1/12/27
....
21,165
20,996
L2414275.UP.FTS.B,
9.91%,
1/12/27
....
28,167
27,976
L2417012.UP.FTS.B,
10.17%,
1/12/27
....
1,411
1,402
L2415942.UP.FTS.B,
10.21%,
1/12/27
....
10,587
10,516
FW2417548.UP.FTS.B,
10.24%,
1/12/27
..
10,589
10,518
FW2418613.UP.FTS.B,
10.3%,
1/12/27
...
2,739
2,719
FW2417403.UP.FTS.B,
10.31%,
1/12/27
..
4,946
4,907
L2415901.UP.FTS.B,
10.41%,
1/12/27
....
11,311
11,231
L2414981.UP.FTS.B,
10.47%,
1/12/27
....
8,982
8,918
L2414718.UP.FTS.B,
10.85%,
1/12/27
....
2,836
2,817
L2418788.UP.FTS.B,
10.88%,
1/12/27
....
4,603
4,552
L2416866.UP.FTS.B,
11.39%,
1/12/27
....
2,267
2,250
FW2415761.UP.FTS.B,
11.51%,
1/12/27
..
3,874
226
FW2419104.UP.FTS.B,
11.58%,
1/12/27
..
5,704
5,664
L2415315.UP.FTS.B,
11.71%,
1/12/27
....
10,605
10,529
L2414779.UP.FTS.B,
11.77%,
1/12/27
....
2,856
2,836
L2414313.UP.FTS.B,
12.04%,
1/12/27
....
7,153
7,103
L2415035.UP.FTS.B,
12.36%,
1/12/27
....
8,224
8,161
L2419353.UP.FTS.B,
12.95%,
1/12/27
....
23,472
23,311
L2416405.UP.FTS.B,
13.12%,
1/12/27
....
229
17
L2418973.UP.FTS.B,
13.17%,
1/12/27
....
15,144
15,040
L2419419.UP.FTS.B,
13.25%,
1/12/27
....
5,051
5,016
L2414757.UP.FTS.B,
13.72%,
1/12/27
....
7,852
7,793
L2419716.UP.FTS.B,
13.82%,
1/12/27
....
6,883
6,836
L2418679.UP.FTS.B,
13.97%,
1/12/27
....
7,581
7,515
FW2417958.UP.FTS.B,
14.2%,
1/12/27
...
6,322
6,279
L2414553.UP.FTS.B,
14.38%,
1/12/27
....
14,844
14,742
L2417256.UP.FTS.B,
14.46%,
1/12/27
....
23,158
22,980
L2418826.UP.FTS.B,
14.49%,
1/12/27
....
3,826
3,785
L2416103.UP.FTS.B,
14.61%,
1/12/27
....
7,285
7,235
L2419563.UP.FTS.B,
14.64%,
1/12/27
....
21,686
21,535
L2419336.UP.FTS.B,
14.72%,
1/12/27
....
16,038
15,930
L2420324.UP.FTS.B,
14.82%,
1/12/27
....
5,622
299
FW2417528.UP.FTS.B,
14.86%,
1/12/27
..
3,658
3,630
FW2414824.UP.FTS.B,
15.13%,
1/12/27
..
25,627
25,432
L2418818.UP.FTS.B,
15.34%,
1/12/27
....
5,083
5,048
FW2420218.UP.FTS.B,
15.49%,
1/12/27
..
4,361
4,331
L2418960.UP.FTS.B,
15.54%,
1/12/27
....
14,661
14,557
L2416354.UP.FTS.B,
15.71%,
1/12/27
....
3,549
3,524
FW2418121.UP.FTS.B,
15.9%,
1/12/27
...
29,453
29,200
L2414253.UP.FTS.B,
16.15%,
1/12/27
....
5,889
5,848
L2414062.UP.FTS.B,
16.39%,
1/12/27
....
3,908
3,880
L2414473.UP.FTS.B,
16.4%,
1/12/27
....
737
732
L2415142.UP.FTS.B,
16.59%,
1/12/27
....
1,515
1,495
L2420474.UP.FTS.B,
16.75%,
1/12/27
....
11,085
11,012
L2420206.UP.FTS.B,
16.98%,
1/12/27
....
8,142
8,084
L2416327.UP.FTS.B,
17.17%,
1/12/27
....
18,602
18,465
L2417581.UP.FTS.B,
17.27%,
1/12/27
....
3,263
3,240
L2415513.UP.FTS.B,
17.29%,
1/12/27
....
2,663
2,633
FW2414008.UP.FTS.B,
17.55%,
1/12/27
..
2,374
2,357
FW2394068.UP.FTS.B,
18.18%,
1/12/27
..
5,968
5,921
L2415190.UP.FTS.B,
18.58%,
1/12/27
....
4,011
131
FW2415024.UP.FTS.B,
19.94%,
1/12/27
..
6,564
6,576
FW2414368.UP.FTS.B,
20.45%,
1/12/27
..
1,902
1,903
L2418100.UP.FTS.B,
20.74%,
1/12/27
....
13,724
13,617
L2416916.UP.FTS.B,
21.22%,
1/12/27
....
3,808
3,808
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2416598.UP.FTS.B,
21.42%,
1/12/27
....
$
5,648
$
5,657
L2404728.UP.FTS.B,
21.56%,
1/12/27
....
594
586
L2389418.UP.FTS.B,
22.12%,
1/12/27
....
4,746
4,745
L2415799.UP.FTS.B,
22.22%,
1/12/27
....
3,668
3,667
FW2408502.UP.FTS.B,
22.28%,
1/12/27
..
4,906
4,905
L2416737.UP.FTS.B,
23.4%,
1/12/27
....
2,084
2,084
FW2416362.UP.FTS.B,
23.42%,
1/12/27
..
3,854
3,861
L2409743.UP.FTS.B,
23.49%,
1/12/27
....
8,567
4,603
FW2418430.UP.FTS.B,
23.78%,
1/12/27
..
1,193
1,175
FW2414282.UP.FTS.B,
23.79%,
1/12/27
..
1,544
1,547
FW2415097.UP.FTS.B,
23.87%,
1/12/27
..
1,950
1,940
L2415306.UP.FTS.B,
24.21%,
1/12/27
....
8,360
8,376
L2414849.UP.FTS.B,
24.57%,
1/12/27
....
2,623
2,628
L2417607.UP.FTS.B,
24.68%,
1/12/27
....
4,462
4,447
L2416370.UP.FTS.B,
25.03%,
1/12/27
....
11,864
11,874
FW2415852.UP.FTS.B,
25.19%,
1/12/27
..
7,119
7,125
L2420285.UP.FTS.B,
25.25%,
1/12/27
....
1,588
432
L2418700.UP.FTS.B,
25.3%,
1/12/27
....
1,121
1,109
FW2414825.UP.FTS.B,
25.31%,
1/12/27
..
3,895
3,902
L2414994.UP.FTS.B,
25.32%,
1/12/27
....
2,302
2,305
L2411740.UP.FTS.B,
25.36%,
1/12/27
....
1,247
1,249
L2418717.UP.FTS.B,
25.38%,
1/12/27
....
2,651
2,657
FW2414842.UP.FTS.B,
25.41%,
1/12/27
..
783
783
L2414777.UP.FTS.B,
25.43%,
1/12/27
....
1,079
1,081
L2416664.UP.FTS.B,
25.43%,
1/12/27
....
1,221
341
L2417967.UP.FTS.B,
25.45%,
1/12/27
....
4,678
4,687
L2417114.UP.FTS.B,
25.49%,
1/12/27
....
1,481
1,484
L2418684.UP.FTS.B,
25.49%,
1/12/27
....
2,124
2,124
FW2415078.UP.FTS.B,
25.67%,
1/12/27
..
3,067
3,070
FW2418617.UP.FTS.B,
25.69%,
1/12/27
..
9,979
9,988
FW2418174.UP.FTS.B,
25.89%,
1/12/27
..
7,750
7,761
L2413654.UP.FTS.B,
25.91%,
1/12/27
....
4,548
2,621
L2414249.UP.FTS.B,
26.35%,
1/12/27
....
3,134
3,141
FW2414970.UP.FTS.B,
26.42%,
1/12/27
..
7,933
7,938
FW2419574.UP.FTS.B,
26.43%,
1/12/27
..
15,046
15,061
FW2415609.UP.FTS.B,
26.58%,
1/12/27
..
1,491
1,494
FW2415999.UP.FTS.B,
26.93%,
1/12/27
..
7,232
7,247
L2414422.UP.FTS.B,
27.95%,
1/12/27
....
2,396
692
FW2411493.UP.FTS.B,
28.18%,
1/12/27
..
11,154
11,143
FW2417708.UP.FTS.B,
28.27%,
1/12/27
..
7,918
7,935
FW2418008.UP.FTS.B,
28.88%,
1/12/27
..
1,350
1,353
FW2418306.UP.FTS.B,
29.61%,
1/12/27
..
5,584
5,596
FW2415348.UP.FTS.B,
30.45%,
1/12/27
..
17,143
17,161
FW2419466.UP.FTS.B,
30.59%,
1/12/27
..
4,323
4,332
FW2415122.UP.FTS.B,
30.76%,
1/12/27
..
1,860
1,861
FW2417562.UP.FTS.B,
30.84%,
1/12/27
..
802
804
FW2418392.UP.FTS.B,
30.87%,
1/12/27
..
1,744
1,746
FW2416140.UP.FTS.B,
30.99%,
1/12/27
..
1,767
1,771
FW2417415.UP.FTS.B,
31.03%,
1/12/27
..
1,446
1,449
FW2420487.UP.FTS.B,
31.06%,
1/12/27
..
1,443
1,439
FW2415692.UP.FTS.B,
31.1%,
1/12/27
...
6,803
6,801
FW2417950.UP.FTS.B,
31.11%,
1/12/27
..
796
229
FW2414984.UP.FTS.B,
31.12%,
1/12/27
..
3,316
969
FW2415964.UP.FTS.B,
31.16%,
1/12/27
..
1,026
1,027
FW2416377.UP.FTS.B,
31.22%,
1/12/27
..
3,939
3,948
FW2414360.UP.FTS.B,
33.08%,
1/12/27
..
1,968
–
FW2419527.UP.FTS.B,
33.12%,
1/12/27
..
1,090
1,090
FW2414624.UP.FTS.B,
33.41%,
1/12/27
..
2,501
176
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2419307.UP.FTS.B,
7.34%,
1/15/27
....
$
28,125
$
27,937
L2410860.UP.FTS.B,
23.88%,
1/15/27
....
4,965
4,970
L2418737.UP.FTS.B,
5.93%,
1/16/27
....
2,734
2,715
L2410494.UP.FTS.B,
17.56%,
1/16/27
....
14,929
14,786
L2414012.UP.FTS.B,
9.06%,
1/20/27
....
7,011
6,965
L2408655.UP.FTS.B,
5.7%,
1/26/27
.....
14,418
14,315
L2412759.UP.FTS.B,
15.38%,
1/26/27
....
4,678
659
L2409264.UP.FTS.B,
16.99%,
1/26/27
....
7,454
7,395
L2417088.UP.FTS.B,
15.78%,
1/27/27
....
5,615
5,576
FW2418991.UP.FTS.B,
31.12%,
1/27/27
..
4,188
4,183
L1711260.UP.FTS.B,
11.26%,
2/14/27
....
1,465
1,451
L1710000.UP.FTS.B,
16.05%,
2/14/27
....
14,395
14,231
L1710099.UP.FTS.B,
16.39%,
2/14/27
....
11,332
819
FW1709115.UP.FTS.B,
20.14%,
2/14/27
..
4,123
4,078
FW1711645.UP.FTS.B,
20.26%,
2/14/27
..
23,822
3,343
L1711790.UP.FTS.B,
21.29%,
2/14/27
....
1,036
1
L1709427.UP.FTS.B,
22.21%,
2/14/27
....
3,061
3,062
L1709217.UP.FTS.B,
25.78%,
2/14/27
....
20,706
12,258
FW1711816.UP.FTS.B,
27.5%,
2/14/27
...
1,356
97
FW1712397.UP.FTS.B,
27.52%,
2/14/27
..
2,467
706
FW1712574.UP.FTS.B,
28.34%,
2/14/27
..
4,043
4,032
FW1711280.UP.FTS.B,
28.58%,
2/14/27
..
16,512
16,525
FW1710082.UP.FTS.B,
31.29%,
2/14/27
..
715
206
FW1687516.UP.FTS.B,
31.34%,
2/14/27
..
26,772
15,870
FW1709995.UP.FTS.B,
32.33%,
2/14/27
..
13,146
13,183
L2632551.UP.FTS.B,
5.37%,
2/15/27
....
8,349
8,291
L2632779.UP.FTS.B,
5.63%,
2/15/27
....
4,879
4,845
L2633842.UP.FTS.B,
6.31%,
2/15/27
....
4,546
4,410
L2633588.UP.FTS.B,
6.56%,
2/15/27
....
23,165
23,005
L2631314.UP.FTS.B,
6.7%,
2/15/27
.....
14,757
14,655
FW2631935.UP.FTS.B,
8.55%,
2/15/27
...
27,390
25,744
L2630774.UP.FTS.B,
8.69%,
2/15/27
....
2,852
2,833
L2635638.UP.FTS.B,
9.41%,
2/15/27
....
6,609
6,556
L2631278.UP.FTS.B,
9.42%,
2/15/27
....
3,584
3,558
FW2633029.UP.FTS.B,
9.57%,
2/15/27
...
1,076
1,068
FW2633295.UP.FTS.B,
9.71%,
2/15/27
...
13,288
13,191
FW2635362.UP.FTS.B,
9.75%,
2/15/27
...
8,622
8,559
L2633022.UP.FTS.B,
9.86%,
2/15/27
....
10,774
10,696
FW2635247.UP.FTS.B,
10.37%,
2/15/27
..
6,174
6,126
L2632143.UP.FTS.B,
10.83%,
2/15/27
....
4,119
4,084
FW2637614.UP.FTS.B,
11.51%,
2/15/27
..
9,222
9,141
L2632232.UP.FTS.B,
11.83%,
2/15/27
....
6,215
6,154
L2633836.UP.FTS.B,
12%,
2/15/27
......
7,969
7,498
FW2636201.UP.FTS.B,
12.12%,
2/15/27
..
5,113
5,074
L2630147.UP.FTS.B,
12.15%,
2/15/27
....
29,222
28,999
L2635861.UP.FTS.B,
12.41%,
2/15/27
....
6,220
6,173
L2636245.UP.FTS.B,
12.68%,
2/15/27
....
29,309
29,085
L2628202.UP.FTS.B,
13.1%,
2/15/27
....
4,767
4,730
L2637042.UP.FTS.B,
13.14%,
2/15/27
....
5,884
5,839
L2631332.UP.FTS.B,
13.22%,
2/15/27
....
3,679
3,651
FW2633237.UP.FTS.B,
13.24%,
2/15/27
..
2,944
2,921
L2631964.UP.FTS.B,
14%,
2/15/27
......
5,558
5,511
L2632724.UP.FTS.B,
14.48%,
2/15/27
....
3,934
3,903
L2637603.UP.FTS.B,
14.83%,
2/15/27
....
4,752
4,716
FW2631558.UP.FTS.B,
15.18%,
2/15/27
..
11,180
11,095
L2635221.UP.FTS.B,
15.45%,
2/15/27
....
5,525
5,483
FW2633986.UP.FTS.B,
15.46%,
2/15/27
..
18,988
17,869
FW2631951.UP.FTS.B,
15.91%,
2/15/27
..
6,702
6,314
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2634727.UP.FTS.B,
16.18%,
2/15/27
..
$
4,951
$
4,911
L2635424.UP.FTS.B,
16.37%,
2/15/27
....
30,043
29,796
L2610013.UP.FTS.B,
16.95%,
2/15/27
....
2,972
2,946
L2630011.UP.FTS.B,
16.96%,
2/15/27
....
3,770
3,741
L2636076.UP.FTS.B,
17.15%,
2/15/27
....
6,219
451
FW2635945.UP.FTS.B,
17.32%,
2/15/27
..
4,155
4,117
FW2635975.UP.FTS.B,
18.14%,
2/15/27
..
12,596
904
FW2635531.UP.FTS.B,
18.53%,
2/15/27
..
8,981
8,907
FW2632933.UP.FTS.B,
18.59%,
2/15/27
..
7,615
7,552
FW2632544.UP.FTS.B,
18.69%,
2/15/27
..
19,182
18,976
L2634353.UP.FTS.B,
19.06%,
2/15/27
....
7,528
7,455
FW2634297.UP.FTS.B,
19.29%,
2/15/27
..
10,093
10,009
FW2629363.UP.FTS.B,
19.37%,
2/15/27
..
5,004
363
L2632256.UP.FTS.B,
19.82%,
2/15/27
....
767
761
L2635013.UP.FTS.B,
20.25%,
2/15/27
....
4,470
4,424
L2633648.UP.FTS.B,
20.29%,
2/15/27
....
7,837
7,768
FW2632574.UP.FTS.B,
20.97%,
2/15/27
..
9,123
8,977
L2632212.UP.FTS.B,
21.09%,
2/15/27
....
3,072
3,043
L2630116.UP.FTS.B,
21.26%,
2/15/27
....
4,642
4,598
L2637476.UP.FTS.B,
21.48%,
2/15/27
....
8,466
8,376
FW2631142.UP.FTS.B,
21.84%,
2/15/27
..
2,456
2,455
FW2634641.UP.FTS.B,
22.06%,
2/15/27
..
10,881
10,885
L2636740.UP.FTS.B,
22.15%,
2/15/27
....
778
778
L2633500.UP.FTS.B,
22.28%,
2/15/27
....
3,923
3,918
L2632041.UP.FTS.B,
23.26%,
2/15/27
....
9,392
9,303
L2631781.UP.FTS.B,
23.47%,
2/15/27
....
2,137
2,057
FW2633249.UP.FTS.B,
23.49%,
2/15/27
..
4,309
4,310
L2635262.UP.FTS.B,
24.04%,
2/15/27
....
7,071
7,073
L2629665.UP.FTS.B,
24.47%,
2/15/27
....
5,582
5,576
FW2634252.UP.FTS.B,
24.49%,
2/15/27
..
5,045
5,047
L2636078.UP.FTS.B,
24.6%,
2/15/27
....
12,021
12,007
FW2632893.UP.FTS.B,
24.67%,
2/15/27
..
17,188
17,192
L2631848.UP.FTS.B,
24.9%,
2/15/27
....
4,766
4,759
L2634268.UP.FTS.B,
25.05%,
2/15/27
....
1,897
1,898
FW2635941.UP.FTS.B,
25.09%,
2/15/27
..
4,346
4,347
L2634635.UP.FTS.B,
25.23%,
2/15/27
....
6,593
468
L2634539.UP.FTS.B,
25.3%,
2/15/27
....
1,503
1,504
L2630368.UP.FTS.B,
25.31%,
2/15/27
....
2,471
56
L2632154.UP.FTS.B,
25.31%,
2/15/27
....
18,594
18,598
L2633587.UP.FTS.B,
25.38%,
2/15/27
....
1,467
104
L2636370.UP.FTS.B,
25.4%,
2/15/27
....
2,375
2,375
L2631893.UP.FTS.B,
25.41%,
2/15/27
....
2,843
2,843
L2636222.UP.FTS.B,
25.41%,
2/15/27
....
15,832
15,835
L2634591.UP.FTS.B,
25.45%,
2/15/27
....
871
871
L2632552.UP.FTS.B,
25.56%,
2/15/27
....
2,851
202
FW2631141.UP.FTS.B,
25.72%,
2/15/27
..
10,390
10,392
L2634677.UP.FTS.B,
25.78%,
2/15/27
....
3,173
3,174
FW2635210.UP.FTS.B,
25.81%,
2/15/27
..
4,760
4,761
L2636195.UP.FTS.B,
25.92%,
2/15/27
....
11,906
11,908
FW2634765.UP.FTS.B,
26.22%,
2/15/27
..
14,537
13,861
L2635199.UP.FTS.B,
26.23%,
2/15/27
....
5,008
5,009
FW2635628.UP.FTS.B,
26.36%,
2/15/27
..
2,112
2,087
FW2634760.UP.FTS.B,
26.38%,
2/15/27
..
4,694
4,695
L2634070.UP.FTS.B,
26.45%,
2/15/27
....
20,374
19,405
L2635219.UP.FTS.B,
26.59%,
2/15/27
....
3,346
3,346
FW2637086.UP.FTS.B,
26.68%,
2/15/27
..
2,630
2,630
FW2637044.UP.FTS.B,
27.28%,
2/15/27
..
1,070
1,026
FW2634310.UP.FTS.B,
27.59%,
2/15/27
..
5,925
5,925
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
111
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2632183.UP.FTS.B,
27.72%,
2/15/27
..
$
5,609
$
5,609
FW2634627.UP.FTS.B,
28.11%,
2/15/27
..
4,816
4,816
FW2635226.UP.FTS.B,
28.22%,
2/15/27
..
1,884
2
FW2587827.UP.FTS.B,
28.49%,
2/15/27
..
9,777
9,320
FW2635435.UP.FTS.B,
28.75%,
2/15/27
..
1,703
121
FW2632227.UP.FTS.B,
29.31%,
2/15/27
..
16,151
16,151
FW2634087.UP.FTS.B,
29.37%,
2/15/27
..
4,376
4,357
FW2632506.UP.FTS.B,
29.8%,
2/15/27
...
4,444
4,436
FW2631008.UP.FTS.B,
30.31%,
2/15/27
..
419
413
FW2636372.UP.FTS.B,
30.35%,
2/15/27
..
4,870
4,869
FW2632070.UP.FTS.B,
30.58%,
2/15/27
..
2,592
2,592
FW2631994.UP.FTS.B,
30.71%,
2/15/27
..
4,215
4,209
FW2631494.UP.FTS.B,
30.85%,
2/15/27
..
3,661
3,661
FW2629864.UP.FTS.B,
30.9%,
2/15/27
...
1,998
585
FW2633675.UP.FTS.B,
30.91%,
2/15/27
..
895
895
FW2634617.UP.FTS.B,
30.93%,
2/15/27
..
3,034
3,029
FW2631968.UP.FTS.B,
30.98%,
2/15/27
..
5,491
5,464
FW2633314.UP.FTS.B,
31.08%,
2/15/27
..
849
847
FW2637419.UP.FTS.B,
31.1%,
2/15/27
...
2,344
2,328
FW2633604.UP.FTS.B,
31.13%,
2/15/27
..
2,119
2,119
FW2637089.UP.FTS.B,
31.23%,
2/15/27
..
6,846
6,845
L2640422.UP.FTS.B,
7.19%,
2/16/27
....
4,215
4,185
L2638196.UP.FTS.B,
7.54%,
2/16/27
....
13,043
12,957
L2642691.UP.FTS.B,
8.69%,
2/16/27
....
23,444
23,284
L2644170.UP.FTS.B,
8.74%,
2/16/27
....
19,615
19,483
L2644467.UP.FTS.B,
8.99%,
2/16/27
....
1,352
1,339
L2641249.UP.FTS.B,
9.09%,
2/16/27
....
10,512
10,441
FW2640044.UP.FTS.B,
9.77%,
2/16/27
...
4,183
4,154
FW2639996.UP.FTS.B,
9.85%,
2/16/27
...
5,125
5,081
L2644692.UP.FTS.B,
10.37%,
2/16/27
....
2,856
2,836
L2628258.UP.FTS.B,
10.4%,
2/16/27
....
11,748
11,666
L2639939.UP.FTS.B,
10.73%,
2/16/27
....
10,465
10,392
L2642767.UP.FTS.B,
10.84%,
2/16/27
....
9,535
8,982
L2642462.UP.FTS.B,
10.86%,
2/16/27
....
5,069
5,034
L2640107.UP.FTS.B,
11.57%,
2/16/27
....
7,786
7,732
L2642580.UP.FTS.B,
11.66%,
2/16/27
....
2,548
2,531
FW2644262.UP.FTS.B,
11.83%,
2/16/27
..
7,291
7,241
L2642829.UP.FTS.B,
11.96%,
2/16/27
....
15,614
15,507
L2643133.UP.FTS.B,
12.13%,
2/16/27
....
7,976
7,920
L2640589.UP.FTS.B,
12.31%,
2/16/27
....
36,566
36,316
L2637999.UP.FTS.B,
12.45%,
2/16/27
....
8,198
8,142
L2644043.UP.FTS.B,
12.51%,
2/16/27
....
4,665
340
FW2642297.UP.FTS.B,
12.63%,
2/16/27
..
7,591
398
FW2641042.UP.FTS.B,
12.73%,
2/16/27
..
880
874
L2641626.UP.FTS.B,
13.94%,
2/16/27
....
739
734
L2639543.UP.FTS.B,
14.06%,
2/16/27
....
7,400
7,350
FW2641444.UP.FTS.B,
14.17%,
2/16/27
..
4,814
4,781
FW2637881.UP.FTS.B,
14.54%,
2/16/27
..
4,310
4,279
L2637807.UP.FTS.B,
14.59%,
2/16/27
....
11,060
10,985
L2643572.UP.FTS.B,
14.72%,
2/16/27
....
1,486
1,476
L2641778.UP.FTS.B,
14.87%,
2/16/27
....
33,350
33,103
FW2640160.UP.FTS.B,
14.88%,
2/16/27
..
17,111
16,997
L2641628.UP.FTS.B,
14.9%,
2/16/27
....
9,701
702
FW2644643.UP.FTS.B,
15%,
2/16/27
....
3,523
155
L2644502.UP.FTS.B,
15.74%,
2/16/27
....
13,825
13,703
L2643245.UP.FTS.B,
15.83%,
2/16/27
....
16,243
16,135
L2642945.UP.FTS.B,
15.91%,
2/16/27
....
1,123
1,116
FW2637690.UP.FTS.B,
16.3%,
2/16/27
...
4,901
4,865
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2643607.UP.FTS.B,
16.31%,
2/16/27
..
$
37,537
$
37,271
FW2638305.UP.FTS.B,
16.48%,
2/16/27
..
8,079
8,012
L2641861.UP.FTS.B,
16.53%,
2/16/27
....
15,193
15,053
L2639711.UP.FTS.B,
16.7%,
2/16/27
.....
1,204
1,196
FW2641664.UP.FTS.B,
17.29%,
2/16/27
..
4,362
4,329
L2643228.UP.FTS.B,
17.64%,
2/16/27
....
3,785
3,759
L2641429.UP.FTS.B,
17.81%,
2/16/27
....
9,852
9,782
FW2643031.UP.FTS.B,
17.82%,
2/16/27
..
28,984
28,777
L2641792.UP.FTS.B,
17.85%,
2/16/27
....
3,791
3,767
FW2641155.UP.FTS.B,
18.14%,
2/16/27
..
4,200
4,160
L2638277.UP.FTS.B,
18.32%,
2/16/27
....
3,805
3,779
FW2642517.UP.FTS.B,
18.63%,
2/16/27
..
8,225
8,168
L2640308.UP.FTS.B,
18.76%,
2/16/27
....
26,685
26,475
FW2640157.UP.FTS.B,
18.91%,
2/16/27
..
8,649
230
L2607183.UP.FTS.B,
19.09%,
2/16/27
....
15,133
15,025
L2640102.UP.FTS.B,
19.59%,
2/16/27
....
19,716
19,574
L2642912.UP.FTS.B,
19.59%,
2/16/27
....
15,078
14,966
L2637788.UP.FTS.B,
19.66%,
2/16/27
....
2,703
83
L2644725.UP.FTS.B,
19.78%,
2/16/27
....
7,556
7,492
L2643324.UP.FTS.B,
19.84%,
2/16/27
....
35,966
35,678
L2639587.UP.FTS.B,
20.1%,
2/16/27
....
3,073
3,049
FW2640938.UP.FTS.B,
20.16%,
2/16/27
..
8,380
8,397
L2643431.UP.FTS.B,
20.38%,
2/16/27
....
11,160
10,538
L2631654.UP.FTS.B,
20.62%,
2/16/27
....
17,264
17,298
FW2644103.UP.FTS.B,
20.8%,
2/16/27
...
5,769
5,729
FW2639130.UP.FTS.B,
21.01%,
2/16/27
..
3,090
3,096
FW2640179.UP.FTS.B,
21.11%,
2/16/27
..
3,585
534
FW2642916.UP.FTS.B,
21.2%,
2/16/27
...
12,598
909
L2640498.UP.FTS.B,
21.39%,
2/16/27
....
7,744
7,759
L2638952.UP.FTS.B,
21.6%,
2/16/27
....
22,968
1,655
FW2638136.UP.FTS.B,
21.78%,
2/16/27
..
6,210
6,222
FW2643646.UP.FTS.B,
21.86%,
2/16/27
..
12,712
12,143
L2641584.UP.FTS.B,
21.92%,
2/16/27
....
39,447
39,094
L2637535.UP.FTS.B,
21.95%,
2/16/27
....
22,833
22,878
L2631819.UP.FTS.B,
22.11%,
2/16/27
....
21,772
21,751
L2637903.UP.FTS.B,
22.13%,
2/16/27
....
9,207
9,128
FW2640578.UP.FTS.B,
22.42%,
2/16/27
..
704
703
L2640051.UP.FTS.B,
22.42%,
2/16/27
....
7,499
201
L2639752.UP.FTS.B,
22.85%,
2/16/27
....
39,029
38,724
FW2643850.UP.FTS.B,
23.05%,
2/16/27
..
12,515
903
L2644478.UP.FTS.B,
23.24%,
2/16/27
....
15,652
15,684
FW2641930.UP.FTS.B,
23.25%,
2/16/27
..
8,135
8,072
FW2640017.UP.FTS.B,
23.28%,
2/16/27
..
39,095
39,173
L2636952.UP.FTS.B,
23.58%,
2/16/27
....
7,840
7,856
FW2639691.UP.FTS.B,
23.69%,
2/16/27
..
14,273
14,302
FW2643737.UP.FTS.B,
23.79%,
2/16/27
..
12,420
12,432
L2644184.UP.FTS.B,
24.14%,
2/16/27
....
7,198
6,792
L2638762.UP.FTS.B,
24.36%,
2/16/27
....
2,696
775
L2638887.UP.FTS.B,
24.84%,
2/16/27
....
1,578
1,582
L2643360.UP.FTS.B,
24.93%,
2/16/27
....
2,606
2,611
L2642235.UP.FTS.B,
24.97%,
2/16/27
....
1,185
1,188
FW2642257.UP.FTS.B,
25.15%,
2/16/27
..
7,886
7,901
FW2640811.UP.FTS.B,
25.17%,
2/16/27
..
24,101
23,024
L2629944.UP.FTS.B,
25.26%,
2/16/27
....
979
282
L2640772.UP.FTS.B,
25.34%,
2/16/27
....
1,359
97
L2642246.UP.FTS.B,
25.42%,
2/16/27
....
1,755
1,756
L2637328.UP.FTS.B,
25.43%,
2/16/27
....
4,829
4,839
L2643718.UP.FTS.B,
25.45%,
2/16/27
....
1,109
1,111
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2638486.UP.FTS.B,
25.48%,
2/16/27
....
$
8,157
$
8,174
L2644251.UP.FTS.B,
25.49%,
2/16/27
....
955
955
L2643938.UP.FTS.B,
25.5%,
2/16/27
....
1,243
360
L2643974.UP.FTS.B,
25.5%,
2/16/27
....
2,886
2,888
L2644656.UP.FTS.B,
25.52%,
2/16/27
....
3,278
37
L2638794.UP.FTS.B,
25.6%,
2/16/27
....
10,302
10,323
L2638678.UP.FTS.B,
25.84%,
2/16/27
....
7,934
7,950
FW2642963.UP.FTS.B,
25.88%,
2/16/27
..
3,809
3,817
L2640846.UP.FTS.B,
26.29%,
2/16/27
....
19,888
19,929
L2640994.UP.FTS.B,
27.05%,
2/16/27
....
15,969
16,002
FW2641067.UP.FTS.B,
27.08%,
2/16/27
..
5,558
5,567
FW2638017.UP.FTS.B,
27.09%,
2/16/27
..
6,868
6,882
FW2640323.UP.FTS.B,
27.2%,
2/16/27
...
5,915
417
FW2636711.UP.FTS.B,
27.4%,
2/16/27
...
7,999
8,015
FW2643525.UP.FTS.B,
28.34%,
2/16/27
..
9,162
9,181
FW2644630.UP.FTS.B,
28.55%,
2/16/27
..
8,094
8,097
FW2642505.UP.FTS.B,
29.14%,
2/16/27
..
1,667
1,669
FW2644598.UP.FTS.B,
29.38%,
2/16/27
..
8,910
8,918
FW2638733.UP.FTS.B,
29.69%,
2/16/27
..
3,479
3,486
FW2639696.UP.FTS.B,
30.14%,
2/16/27
..
811
812
FW2640894.UP.FTS.B,
30.14%,
2/16/27
..
22,056
22,102
FW2644440.UP.FTS.B,
30.21%,
2/16/27
..
1,138
81
FW2641475.UP.FTS.B,
30.33%,
2/16/27
..
1,342
1,342
FW2642574.UP.FTS.B,
30.52%,
2/16/27
..
14,253
14,159
FW2639097.UP.FTS.B,
30.54%,
2/16/27
..
813
815
FW2632545.UP.FTS.B,
30.71%,
2/16/27
..
1,009
993
FW2644847.UP.FTS.B,
30.77%,
2/16/27
..
1,106
1,101
FW2641385.UP.FTS.B,
30.96%,
2/16/27
..
616
607
FW2643800.UP.FTS.B,
31.1%,
2/16/27
...
1,190
1,191
FW2638255.UP.FTS.B,
31.12%,
2/16/27
..
1,450
1,439
FW2641109.UP.FTS.B,
31.12%,
2/16/27
..
36,736
35,046
FW2610188.UP.FTS.B,
31.13%,
2/16/27
..
8,240
8,247
FW2641269.UP.FTS.B,
31.13%,
2/16/27
..
9,557
9,128
FW2642792.UP.FTS.B,
31.15%,
2/16/27
..
970
971
FW2639361.UP.FTS.B,
31.17%,
2/16/27
..
1,141
1,143
FW2638060.UP.FTS.B,
31.21%,
2/16/27
..
2,120
2,124
FW2638691.UP.FTS.B,
31.42%,
2/16/27
..
7,913
7,551
FW2641809.UP.FTS.B,
33.83%,
2/16/27
..
1,864
283
FW2645630.UP.FTS.B,
12.87%,
2/17/27
..
9,448
9,383
L2644980.UP.FTS.B,
12.95%,
2/17/27
....
1,410
1,400
L2645342.UP.FTS.B,
13.93%,
2/17/27
....
22,092
21,944
FW2645588.UP.FTS.B,
15.61%,
2/17/27
..
2,956
2,935
FW2645675.UP.FTS.B,
15.8%,
2/17/27
...
20,356
20,216
FW2645832.UP.FTS.B,
18.88%,
2/17/27
..
11,443
11,366
L2645010.UP.FTS.B,
20.52%,
2/17/27
....
8,474
8,409
FW2642053.UP.FTS.B,
21.61%,
2/17/27
..
3,249
3,256
L2645135.UP.FTS.B,
21.7%,
2/17/27
....
1,706
1,710
L2645558.UP.FTS.B,
22.43%,
2/17/27
....
2,243
2,225
L2645378.UP.FTS.B,
22.72%,
2/17/27
....
4,058
4,067
L2645573.UP.FTS.B,
22.94%,
2/17/27
....
1,621
455
L2645131.UP.FTS.B,
25.45%,
2/17/27
....
1,092
1,093
FW2645900.UP.FTS.B,
26.25%,
2/17/27
..
1,590
1,594
FW2645472.UP.FTS.B,
26.31%,
2/17/27
..
14,276
4,172
FW2645571.UP.FTS.B,
26.48%,
2/17/27
..
3,185
3,192
FW2645165.UP.FTS.B,
26.81%,
2/17/27
..
567
559
FW2644978.UP.FTS.B,
28.18%,
2/17/27
..
8,615
8,632
FW2644973.UP.FTS.B,
28.39%,
2/17/27
..
6,920
6,932
FW2645842.UP.FTS.B,
30.86%,
2/17/27
..
2,542
2,544
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2633374.UP.FTS.B,
7.21%,
2/18/27
....
$
13,410
$
13,318
L2634883.UP.FTS.B,
19.98%,
2/18/27
....
6,170
6,114
FW2635428.UP.FTS.B,
22.3%,
2/19/27
...
12,795
12,801
FW2639867.UP.FTS.B,
26.3%,
2/19/27
...
1,606
1,607
L2638208.UP.FTS.B,
25.18%,
2/22/27
....
1,985
1,989
L2644708.UP.FTS.B,
25.19%,
2/25/27
....
3,659
3,668
L1710004.UP.FTS.B,
26.05%,
2/25/27
....
9,183
9,201
L2631928.UP.FTS.B,
22.74%,
2/28/27
....
5,890
5,877
L2633254.UP.FTS.B,
24.29%,
2/28/27
....
17,303
17,145
L2645397.UP.FTS.B,
26.19%,
2/28/27
....
2,003
2,009
FW2634686.UP.FTS.B,
28.47%,
2/28/27
..
4,690
329
L1874015.UP.FTS.B,
15.07%,
3/18/27
....
13,944
–
L1874238.UP.FTS.B,
17.32%,
3/18/27
....
3,859
3,813
L1873745.UP.FTS.B,
17.46%,
3/18/27
....
8,376
8,303
L1872889.UP.FTS.B,
18.38%,
3/18/27
....
14,768
14,645
FW1873439.UP.FTS.B,
25.66%,
3/18/27
..
1,336
197
FW1874338.UP.FTS.B,
26.12%,
3/18/27
..
8,216
1,209
L1873838.UP.FTS.B,
26.46%,
3/18/27
....
3,806
3,827
FW1873640.UP.FTS.B,
27.67%,
3/18/27
..
28,702
27,417
FW1874126.UP.FTS.B,
27.94%,
3/18/27
..
3,947
3,952
FW1873137.UP.FTS.B,
30.77%,
3/18/27
..
1,543
108
L1873977.UP.FTS.B,
12.66%,
3/23/27
....
8,754
8,692
L1874548.UP.FTS.B,
26.04%,
3/26/27
....
5,577
5,591
L1873528.UP.FTS.B,
25.71%,
3/28/27
....
6,008
6,028
L2005122.UP.FTS.B,
12.01%,
4/09/27
....
6,483
1,636
L2006131.UP.FTS.B,
12.37%,
4/09/27
....
16,408
1,139
L2008435.UP.FTS.B,
14.4%,
4/09/27
....
6,089
6,021
FW1985810.UP.FTS.B,
16.01%,
4/09/27
..
8,452
71
L2005313.UP.FTS.B,
17.04%,
4/09/27
....
42,169
41,509
L2006384.UP.FTS.B,
18.95%,
4/09/27
....
8,619
8,517
L2008942.UP.FTS.B,
21.92%,
4/09/27
....
2,967
214
L2006933.UP.FTS.B,
23.7%,
4/09/27
....
4,735
4,744
L2006560.UP.FTS.B,
24.67%,
4/09/27
....
6,108
6,083
L2009664.UP.FTS.B,
25.29%,
4/09/27
....
1,345
1,345
FW2006387.UP.FTS.B,
25.89%,
4/09/27
..
2,909
–
FW2009466.UP.FTS.B,
29.96%,
4/09/27
..
1,612
1,620
FW2008777.UP.FTS.B,
28.16%,
4/15/27
..
2,713
2,723
L2079809.UP.FTS.B,
11.68%,
4/19/27
....
5,838
5,799
L2076923.UP.FTS.B,
15.84%,
4/19/27
....
7,287
521
L2077624.UP.FTS.B,
16.62%,
4/19/27
....
34,722
32,720
L2080104.UP.FTS.B,
16.97%,
4/19/27
....
41,010
5,882
L2077275.UP.FTS.B,
17.44%,
4/19/27
....
5,946
853
L2078117.UP.FTS.B,
17.47%,
4/19/27
....
2,306
2,282
L2080091.UP.FTS.B,
20.35%,
4/19/27
....
2,015
1,997
L2075161.UP.FTS.B,
20.64%,
4/19/27
....
27,457
27,171
L2076557.UP.FTS.B,
21.86%,
4/19/27
....
22,111
21,738
L2071630.UP.FTS.B,
22.65%,
4/19/27
....
5,512
5,502
L2078089.UP.FTS.B,
22.76%,
4/19/27
....
16,624
16,459
FW2078029.UP.FTS.B,
23.15%,
4/19/27
..
3,828
3,827
FW2077484.UP.FTS.B,
23.29%,
4/19/27
..
12,693
12,764
L2073677.UP.FTS.B,
24.99%,
4/19/27
....
13,641
3,935
L2079168.UP.FTS.B,
25.49%,
4/19/27
....
9,305
–
FW2079109.UP.FTS.B,
25.53%,
4/19/27
..
5,319
381
L2075052.UP.FTS.B,
25.99%,
4/19/27
....
4,103
4,105
L2077173.UP.FTS.B,
26.59%,
4/19/27
....
10,081
10,068
FW2076494.UP.FTS.B,
27.89%,
4/19/27
..
5,015
5,025
FW2079282.UP.FTS.B,
30.4%,
4/19/27
...
1,011
1,009
FW2077993.UP.FTS.B,
30.84%,
4/19/27
..
2,463
707
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
113
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2076209.UP.FTS.B,
31.48%,
4/19/27
..
$
2,725
$
2,593
FW2079511.UP.FTS.B,
9.94%,
5/01/27
...
4,635
4,602
L2079161.UP.FTS.B,
17.64%,
5/01/27
....
4,895
4,850
FW2195774.UP.FTS.B,
11.53%,
5/07/27
..
24,251
23,995
L2197038.UP.FTS.B,
12.26%,
5/07/27
....
2,926
2,893
L2196990.UP.FTS.B,
14.16%,
5/07/27
....
4,698
1,349
L2196542.UP.FTS.B,
14.21%,
5/07/27
....
6,182
3,258
L2197143.UP.FTS.B,
15.39%,
5/07/27
....
8,708
4,832
FW2198673.UP.FTS.B,
15.71%,
5/07/27
..
16,095
15,881
L2199844.UP.FTS.B,
16.94%,
5/07/27
....
8,254
8,161
L2195192.UP.FTS.B,
17.22%,
5/07/27
....
2,549
2,516
L2195638.UP.FTS.B,
17.49%,
5/07/27
....
8,754
1,200
L2200243.UP.FTS.B,
17.54%,
5/07/27
....
852
226
L2200120.UP.FTS.B,
19.52%,
5/07/27
....
9,697
9,562
L2196726.UP.FTS.B,
21.07%,
5/07/27
....
20,267
1,444
L2197009.UP.FTS.B,
22.01%,
5/07/27
....
5,747
417
L2197891.UP.FTS.B,
23.8%,
5/07/27
....
3,122
3,120
FW2197402.UP.FTS.B,
23.87%,
5/07/27
..
2,801
202
L2199876.UP.FTS.B,
25.33%,
5/07/27
....
1,086
1,075
FW2199514.UP.FTS.B,
25.91%,
5/07/27
..
2,353
167
FW2198564.UP.FTS.B,
27.96%,
5/07/27
..
3,762
2,209
FW2126302.UP.FTS.B,
28.84%,
5/07/27
..
15,216
–
FW2197220.UP.FTS.B,
29.81%,
5/07/27
..
2,066
2,059
FW2199111.UP.FTS.B,
31.05%,
5/07/27
..
1,547
1,541
L2201222.UP.FTS.B,
13.13%,
5/08/27
....
39,667
1,377
L2205206.UP.FTS.B,
15.97%,
5/08/27
....
23,847
23,589
L2205436.UP.FTS.B,
16.02%,
5/08/27
....
21,849
21,542
L2203740.UP.FTS.B,
19.62%,
5/08/27
....
1,929
1,901
L2203837.UP.FTS.B,
20.89%,
5/08/27
....
10,754
1,550
L2201398.UP.FTS.B,
22.49%,
5/08/27
....
10,205
10,092
L2169853.UP.FTS.B,
22.52%,
5/08/27
....
4,296
4,280
L2202315.UP.FTS.B,
23.12%,
5/08/27
....
3,240
1,911
L2204624.UP.FTS.B,
23.54%,
5/08/27
....
15,993
15,915
L2204118.UP.FTS.B,
23.56%,
5/08/27
....
13,870
13,811
FW2205649.UP.FTS.B,
23.84%,
5/08/27
..
3,259
3,253
L2169986.UP.FTS.B,
24.03%,
5/08/27
....
11,804
11,739
FW2202542.UP.FTS.B,
24.64%,
5/08/27
..
3,676
3,684
L2204697.UP.FTS.B,
24.89%,
5/08/27
....
18,118
1,305
FW2201944.UP.FTS.B,
25.52%,
5/08/27
..
4,672
2,747
L2204916.UP.FTS.B,
25.63%,
5/08/27
....
9,344
1,283
L2206165.UP.FTS.B,
26.19%,
5/08/27
....
7,401
7,412
FW2201816.UP.FTS.B,
26.65%,
5/08/27
..
4,264
586
FW2206860.UP.FTS.B,
28.2%,
5/08/27
...
2,928
2,923
FW2199020.UP.FTS.B,
29.97%,
5/08/27
..
8,984
8,861
FW2199475.UP.FTS.B,
30.86%,
5/08/27
..
3,935
3,932
FW2202450.UP.FTS.B,
31.05%,
5/08/27
..
2,469
2,463
FW2201216.UP.FTS.B,
31.06%,
5/08/27
..
2,286
1,358
FW2200444.UP.FTS.B,
31.21%,
5/08/27
..
3,309
3,308
FW2200188.UP.FTS.B,
28.66%,
5/12/27
..
4,639
4,622
L2199654.UP.FTS.B,
12.66%,
5/13/27
....
4,205
4,171
FW2199867.UP.FTS.B,
13.82%,
5/23/27
..
11,646
11,530
FW2204874.UP.FTS.B,
17.03%,
5/23/27
..
7,720
7,605
L2411745.UP.FTS.B,
7.47%,
6/11/27
.....
5,396
1,343
L2412468.UP.FTS.B,
7.67%,
6/11/27
.....
36,147
35,831
L2412874.UP.FTS.B,
8.03%,
6/11/27
.....
5,240
5,189
L2412901.UP.FTS.B,
8.44%,
6/11/27
.....
11,199
11,095
L2408994.UP.FTS.B,
9.47%,
6/11/27
.....
5,731
1,398
L2413627.UP.FTS.B,
12.33%,
6/11/27
....
27,424
14,482
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2412970.UP.FTS.B,
14.15%,
6/11/27
....
$
12,114
$
873
L2410725.UP.FTS.B,
15.84%,
6/11/27
....
15,170
15,005
FW2407061.UP.FTS.B,
16.61%,
6/11/27
..
13,090
12,909
FW2407472.UP.FTS.B,
18.08%,
6/11/27
..
21,184
20,966
L2412214.UP.FTS.B,
18.34%,
6/11/27
....
2,371
2,346
L2402977.UP.FTS.B,
20.95%,
6/11/27
....
1,654
967
FW2406392.UP.FTS.B,
23.41%,
6/11/27
..
8,278
8,280
L2413373.UP.FTS.B,
23.72%,
6/11/27
....
27,303
27,358
FW2407476.UP.FTS.B,
24.28%,
6/11/27
..
4,376
–
FW2409812.UP.FTS.B,
24.81%,
6/11/27
..
2,482
2,465
L2412285.UP.FTS.B,
25.08%,
6/11/27
....
11,330
1,632
L2406611.UP.FTS.B,
25.32%,
6/11/27
....
20,626
12,200
FW2410079.UP.FTS.B,
25.81%,
6/11/27
..
2,810
2,806
FW2411228.UP.FTS.B,
26.37%,
6/11/27
..
3,415
3,405
FW2409497.UP.FTS.B,
26.87%,
6/11/27
..
1,838
1,082
L2407955.UP.FTS.B,
27%,
6/11/27
......
7,657
7,657
FW2410593.UP.FTS.B,
28.88%,
6/11/27
..
7,471
2,133
FW2413018.UP.FTS.B,
30.69%,
6/11/27
..
752
740
FW2410302.UP.FTS.B,
30.97%,
6/11/27
..
1,692
491
FW2412394.UP.FTS.B,
31.05%,
6/11/27
..
1,931
1,925
FW2409027.UP.FTS.B,
31.16%,
6/11/27
..
1,437
853
FW2407226.UP.FTS.B,
31.18%,
6/11/27
..
2,977
–
FW2411177.UP.FTS.B,
31.23%,
6/11/27
..
2,908
2,902
FW2408747.UP.FTS.B,
31.68%,
6/11/27
..
11,206
11,221
FW2418007.UP.FTS.B,
10.28%,
6/12/27
..
2,132
54
L2415490.UP.FTS.B,
12.71%,
6/12/27
....
12,364
12,244
L2416143.UP.FTS.B,
14.39%,
6/12/27
....
1,569
399
L2418555.UP.FTS.B,
15.62%,
6/12/27
....
12,875
12,747
L2419121.UP.FTS.B,
17.04%,
6/12/27
....
6,110
1,633
FW2417755.UP.FTS.B,
18.05%,
6/12/27
..
14,689
14,540
L2415568.UP.FTS.B,
19.57%,
6/12/27
....
3,062
3,048
L2415810.UP.FTS.B,
22.13%,
6/12/27
....
4,190
4,172
L2418697.UP.FTS.B,
22.86%,
6/12/27
....
3,777
3,727
L2417411.UP.FTS.B,
24%,
6/12/27
......
8,762
8,751
FW2420083.UP.FTS.B,
27.39%,
6/12/27
..
46,536
3,326
FW2414026.UP.FTS.B,
30.61%,
6/12/27
..
920
918
FW2418950.UP.FTS.B,
30.94%,
6/12/27
..
1,705
1,697
FW2418092.UP.FTS.B,
30.98%,
6/12/27
..
1,270
1,265
FW2420156.UP.FTS.B,
31.98%,
6/12/27
..
2,616
2,618
FW2416032.UP.FTS.B,
32.75%,
6/12/27
..
17,680
2,548
L2412701.UP.FTS.B,
25.09%,
6/15/27
....
946
940
FW2410113.UP.FTS.B,
29.34%,
6/25/27
..
2,858
2,847
FW2411936.UP.FTS.B,
13.61%,
6/26/27
..
6,070
6,006
L1708948.UP.FTS.B,
7.47%,
7/14/27
....
6,073
6,026
L1708685.UP.FTS.B,
16.63%,
7/14/27
....
2,031
2,014
FW1706254.UP.FTS.B,
26.93%,
7/14/27
..
27,576
4,164
L2633603.UP.FTS.B,
8.38%,
7/15/27
....
12,721
11,949
FW2637564.UP.FTS.B,
8.54%,
7/15/27
...
12,103
809
L2633537.UP.FTS.B,
17.39%,
7/15/27
....
8,623
8,516
L2633453.UP.FTS.B,
19.72%,
7/15/27
....
13,343
13,165
L2636132.UP.FTS.B,
21.91%,
7/15/27
....
9,021
8,593
FW2632621.UP.FTS.B,
22.95%,
7/15/27
..
4,922
356
FW2636073.UP.FTS.B,
23.1%,
7/15/27
...
4,140
4,123
FW2632915.UP.FTS.B,
24.46%,
7/15/27
..
12,693
12,609
L2633167.UP.FTS.B,
24.54%,
7/15/27
....
4,800
4,726
L2605748.UP.FTS.B,
25.45%,
7/15/27
....
1,573
1,565
FW2634423.UP.FTS.B,
28.99%,
7/15/27
..
17,030
16,936
FW2636841.UP.FTS.B,
30.04%,
7/15/27
..
24,352
24,228
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2638227.UP.FTS.B,
10.2%,
7/16/27
....
$
11,762
$
11,663
FW2639288.UP.FTS.B,
14.3%,
7/16/27
...
12,649
12,525
FW2644039.UP.FTS.B,
16.97%,
7/16/27
..
6,394
6,325
L2639647.UP.FTS.B,
17.04%,
7/16/27
....
8,487
329
L2640734.UP.FTS.B,
17.15%,
7/16/27
....
39,945
39,465
L2640760.UP.FTS.B,
19.65%,
7/16/27
....
4,252
3,999
L2639355.UP.FTS.B,
21.49%,
7/16/27
....
3,160
3,123
L2641233.UP.FTS.B,
22.03%,
7/16/27
....
15,461
327
FW2641976.UP.FTS.B,
24.71%,
7/16/27
..
11,208
1,650
L2643306.UP.FTS.B,
25.49%,
7/16/27
....
16,936
4,886
FW2644724.UP.FTS.B,
28.24%,
7/16/27
..
45,088
43,073
FW2644628.UP.FTS.B,
30.88%,
7/16/27
..
1,341
1,344
FW2641207.UP.FTS.B,
30.9%,
7/16/27
...
2,767
2,773
FW2642662.UP.FTS.B,
30.94%,
7/16/27
..
4,584
4,574
L2645113.UP.FTS.B,
10.21%,
7/17/27
....
6,442
6,379
L2645909.UP.FTS.B,
19.06%,
7/17/27
....
4,079
4,031
L2642277.UP.FTS.B,
22.82%,
7/17/27
....
5,293
5,220
L2631220.UP.FTS.B,
25.21%,
7/28/27
....
2,476
2,465
FW1873026.UP.FTS.B,
30.69%,
8/18/27
..
488
482
L2008894.UP.FTS.B,
11.02%,
9/09/27
....
4,879
355
L2006623.UP.FTS.B,
15.18%,
9/09/27
....
8,385
8,288
L2005978.UP.FTS.B,
17.84%,
9/09/27
....
3,143
3,088
L2005478.UP.FTS.B,
23.62%,
9/09/27
....
14,104
14,093
L2004813.UP.FTS.B,
23.68%,
9/09/27
....
4,720
4,707
FW2007802.UP.FTS.B,
23.93%,
9/09/27
..
28,516
28,139
FW2199121.UP.FTS.B,
15.58%,
10/07/27
.
16,972
16,775
L2199767.UP.FTS.B,
25.65%,
10/07/27
...
5,165
5,109
FW2199624.UP.FTS.B,
25.75%,
10/07/27
.
8,490
8,470
FW2195253.UP.FTS.B,
27.11%,
10/07/27
.
5,745
–
L2202846.UP.FTS.B,
8.79%,
10/08/27
....
16,304
1,189
L2200600.UP.FTS.B,
11.71%,
10/08/27
...
3,667
3,633
L2206074.UP.FTS.B,
15.01%,
10/08/27
...
6,383
6,318
FW2205781.UP.FTS.B,
22.27%,
10/08/27
.
42,161
–
FW2202576.UP.FTS.B,
22.89%,
10/08/27
.
7,058
4,124
L2203589.UP.FTS.B,
24.35%,
10/08/27
...
3,892
3,886
L2205138.UP.FTS.B,
24.86%,
10/08/27
...
3,154
227
L2206615.UP.FTS.B,
25.87%,
10/08/27
...
13,141
13,008
FW2202648.UP.FTS.B,
26.05%,
10/08/27
.
6,756
107
FW2206016.UP.FTS.B,
28.92%,
10/08/27
.
854
839
FW2203404.UP.FTS.B,
29.65%,
10/08/27
.
1,500
1,499
FW2202975.UP.FTS.B,
30.2%,
10/08/27
..
3,202
3,181
FW2205386.UP.FTS.B,
30.87%,
10/08/27
.
7,770
7,771
FW2411932.UP.FTS.B,
22.38%,
11/11/27
.
4,498
4,442
L2413593.UP.FTS.B,
23.06%,
11/11/27
...
7,496
7,383
FW2410499.UP.FTS.B,
31.67%,
11/11/27
.
1,443
204
L2414318.UP.FTS.B,
8.81%,
11/12/27
....
12,241
12,145
FW2414721.UP.FTS.B,
28.43%,
11/12/27
.
5,162
5,098
FW2402573.UP.FTS.B,
32.37%,
11/12/27
.
10,294
10,171
FW2634082.UP.FTS.B,
24.01%,
12/15/27
.
5,022
4,953
L2644100.UP.FTS.B,
5.16%,
12/16/27
....
3,981
3,952
FW2643411.UP.FTS.B,
29.58%,
12/16/27
.
4,974
4,938
FW2642156.UP.FTS.B,
26.37%,
12/20/27
.
2,513
178
L1710242.UP.FTS.B,
16.42%,
9/14/28
....
2,407
2,403
L2008544.UP.FTS.B,
14.54%,
11/09/28
...
4,087
4,074
L1973640.UP.FTS.B,
20.1%,
11/09/28
....
8,802
8,786
L2009558.UP.FTS.B,
26.34%,
11/09/28
...
15,832
15,897
L2195991.UP.FTS.B,
26.01%,
12/07/28
...
7,958
7,977
L2197007.UP.FTS.B,
26.07%,
12/07/28
...
2,290
2,283
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2204377.UP.FTS.B,
25.94%,
12/08/28
...
$
3,874
$
3,863
L2635238.UP.FTS.B,
13.81%,
2/15/29
....
12,593
12,537
L2631621.UP.FTS.B,
15.64%,
2/15/29
....
18,305
18,236
L2633434.UP.FTS.B,
17.36%,
2/15/29
....
3,942
3,925
L2633742.UP.FTS.B,
25.95%,
2/15/29
....
2,935
205
L2634808.UP.FTS.B,
26.03%,
2/15/29
....
1,786
1,779
L2633894.UP.FTS.B,
26.42%,
2/15/29
....
4,185
4,163
L2635317.UP.FTS.B,
27.28%,
2/15/29
....
2,111
1,994
L2637431.UP.FTS.B,
26.27%,
7/15/29
....
6,577
6,518
11,124,636
Total
Marketplace
Loans
(Cost
$48,370,766)
....
$43,002,967
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited),
October
31,
2023
Franklin
Strategic
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
115
At
October
31,
2023,
the
Fund
had
the
following futures
contracts
outstanding.
See
N
ote
1(e).
At
October
31,
2023,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Not
e
1(e).
At
October
31,
2023,
the
Fund
had
the
following credit
default
swap
contracts outstanding.
See
Note
1(e)
.
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
714
$
75,806,719
12/19/23
$
(2,689,670)
U.S.
Treasury
10
Year
Ultra
Notes
................
Long
30
3,264,844
12/19/23
(88,751)
U.S.
Treasury
2
Year
Notes
.....................
Long
1,339
271,042,892
12/29/23
(1,024,419)
U.S.
Treasury
Ultra
Bonds
......................
Long
146
16,434,125
12/19/23
(2,187,948)
Total
Futures
Contracts
......................................................................
$(5,990,788)
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Brazilian
Real
......
JPHQ
Buy
6,600,000
1,320,000
11/06/23
$
—
$
(11,222)
Brazilian
Real
......
JPHQ
Sell
6,600,000
1,371,183
11/06/23
62,405
—
Euro
.............
JPHQ
Sell
2,800,000
3,000,606
12/13/23
32,544
—
Japanese
Yen
......
JPHQ
Buy
1,900,000,000
12,996,619
1/09/24
—
(312,905)
Columbian
Peso
....
JPHQ
Sell
56,500,000,000
13,128,849
2/26/24
—
(213,344)
Brazilian
Real
......
JPHQ
Sell
6,600,000
1,301,929
3/04/24
11,567
—
Total
Forward
Exchange
Contracts
...................................................
$106,516
$(537,471)
Net
unrealized
appreciation
(depreciation)
............................................
$(430,955)
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Credit
Default
Swap
Contracts
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
Centrally
Cleared
Swap
Contracts
Contracts
to
Sell
Protection
(c)(d)
Traded
Index
CDX.NA.HY.41
.
5.00%
Quarterly
12/20/28
67,100,000
$
(24,343)
$
(24,871)
$
528
Non-
Investment
Grade
Total
Centrally
Cleared
Swap
Contracts
.....................................
$(24,343)
$(24,871)
$528
Franklin
Strategic
Series
Schedule
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
Credit
Default
Swap
Contracts
(continued)
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
OTC
Swap
Contracts
Contracts
to
Sell
Protection
(c)(d)
Single
Name
Carnival
Corp.
..
1.00%
Quarterly
CITI
6/20/27
17,820,000
$
(2,773,280)
$
(2,347,417)
$
(425,863)
B-
Traded
Index
(e)
BNP
Paribas
Bespoke
Haverhill
Index,
Mezzanine
Tranche
5-10%
4.10%
Quarterly
BNDP
12/20/23
3,150,000
EUR
20,804
—
20,804
Non-
Investment
Grade
CDX.NA.HY.33
.
5.00%
Quarterly
CITI
12/20/24
15,800,000
461,646
(214,034)
675,680
Non-
Investment
Grade
(e)
Citibank
Bespoke
Kenai
Index,
Equity
Tranche
0-5%
—%
Quarterly
CITI
12/20/23
22,100,000
(4,671,617)
(455,447)
(4,216,170)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Rotorua
Index,
Mezzanine
Tranche
5-10%
3.60%
Quarterly
CITI
12/20/23
5,300,000
24,082
—
24,082
Non-
Investment
Grade
MCDX.
NA.MAIN.31
.
1.00%
Quarterly
CITI
12/20/23
23,060,000
42,232
6,268
35,964
Investment
Grade
Total
OTC
Swap
Contracts
..............................................
$(6,896,133)
$(3,010,630)
$(3,885,503)
Total
Credit
Default
Swap
Contracts
....................................
$(6,920,476)
$
(3,035,501)
$(3,884,975)
(a)
In
U.S.
dollars
unless
otherwise
indicated.
For
contracts
to
sell
protection,
the
notional
amount
is
equal
to
the
maximum
potential
amount
of
the
future
payments
and
no
recourse
provisions
have
been
entered
into
in
association
with
the
contracts.
(b)
Based
on
Standard
and
Poor's
(S&P)
Rating
for
single
name
swaps
and
internal
ratings
for
index
swaps.
Internal
ratings
based
on
mapping
into
equivalent
ratings
from
external
vendors.
(c)
Performance
triggers
for
settlement
of
contract
include
default,
bankruptcy
or
restructuring
for
single
name
swaps,
and
failure
to
pay
or
bankruptcy
of
the
underlying
securities
for
traded
index
swaps.
(d)
The
fund
enters
contracts
to
sell
protection
to
create
a
long
credit
position.
(e)
Represents
a
custom
index
comprised
of
a
basket
of
underlying
instruments.
See
Note 9 regarding
other
derivative
information.
See
Abbreviations
on
page
138.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
117
Franklin
Strategic
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,765,521,615
Cost
-
Controlled
affiliates
(Note
3
f
and
10
)
......................................................
103,286,654
Cost
-
Non-controlled
affiliates
(Note
3
f
and
10
)
...................................................
33,988,351
Cost
-
Unaffiliated
repurchase
agreements
......................................................
77,879,659
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$2,189,328)
..................................
$2,469,878,183
Value
-
Controlled
affiliates
(Note
3
f
and
10
)
.....................................................
90,125,767
Value
-
Non-controlled
affiliates
(Note
3
f
and
10
)
..................................................
33,988,351
Value
-
Unaffiliated
repurchase
agreements
......................................................
77,879,659
Cash
....................................................................................
1,864,894
Receivables:
Investment
securities
sold
...................................................................
2,052,642
Capital
shares
sold
........................................................................
1,102,645
Dividends
and
interest
.....................................................................
26,861,493
Deposits
with
brokers
for:
OTC
derivative
contracts
..................................................................
7,670,000
Futures
contracts
........................................................................
3,927,850
Centrally
cleared
swap
contracts
............................................................
6,180,062
Variation
margin
on
centrally
cleared
swap
contracts
...............................................
201,100
OTC
swap
contracts
(upfront
payments
$230,998)
..................................................
6,268
Unrealized
appreciation
on
OTC
forward
exchange
contracts
..........................................
106,516
Unrealized
appreciation
on
OTC
swap
contracts
....................................................
756,530
Deferred
tax
benefit
.........................................................................
287,971
Total
assets
..........................................................................
2,722,889,931
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
108,888,097
Capital
shares
redeemed
...................................................................
3,113,209
Management
fees
.........................................................................
962,923
Distribution
fees
..........................................................................
506,204
Transfer
agent
fees
........................................................................
797,552
Variation
margin
on
futures
contracts
...........................................................
178,891
OTC
swap
contracts
(upfront
receipts
$10,697,350)
.................................................
3,016,898
Unrealized
depreciation
on
OTC
swap
contracts
....................................................
4,642,033
Unrealized
depreciation
on
OTC
forward
exchange
contracts
..........................................
537,471
Accrued
expenses
and
other
liabilities
...........................................................
407,491
Total
liabilities
.........................................................................
123,050,769
Net
assets,
at
value
.................................................................
$2,599,839,162
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,907,097,199
Total
distributable
earnings
(losses)
.............................................................
(1,307,258,037)
Net
assets,
at
value
.................................................................
$2,599,839,162
Franklin
Strategic
Series
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
Franklin
Strategic
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$2,094,023,743
Shares
outstanding
........................................................................
267,506,169
Net
asset
value
per
share
a
..................................................................
$7.83
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$8.14
Class
C:
Net
assets,
at
value
.......................................................................
$74,473,536
Shares
outstanding
........................................................................
9,504,205
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$7.84
Class
R:
Net
assets,
at
value
.......................................................................
$36,438,353
Shares
outstanding
........................................................................
4,676,933
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$7.79
Class
R6:
Net
assets,
at
value
.......................................................................
$127,886,309
Shares
outstanding
........................................................................
16,307,544
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$7.84
Advisor
Class:
Net
assets,
at
value
.......................................................................
$267,017,221
Shares
outstanding
........................................................................
34,059,993
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$7.84
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Strategic
Series
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
119
Franklin
Strategic
Income
Fund
Investment
income:
Dividends:
Controlled
affiliates
(Note
3
f
and
10
)
...........................................................
$6,749,951
Non-controlled
affiliates
(Note
3
f
and
10
)
........................................................
876,965
Interest:
(net
of
foreign
taxes
of
$29,008)
Unaffiliated
issuers
........................................................................
67,920,575
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
20,721
Total
investment
income
...................................................................
75,568,212
Expenses:
Management
fees
(Note
3
a
)
...................................................................
6,367,175
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
2,770,746
Class
C
................................................................................
285,162
Class
R
................................................................................
97,258
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
1,643,337
Class
C
................................................................................
65,079
Class
R
................................................................................
28,844
Class
R6
...............................................................................
27,580
Advisor
Class
............................................................................
221,419
Custodian
fees
(Note
4
)
......................................................................
13,879
Reports
to
shareholders
fees
..................................................................
166,471
Registration
and
filing
fees
....................................................................
81,278
Professional
fees
...........................................................................
75,591
Trustees'
fees
and
expenses
..................................................................
16,655
Marketplace
lending
fees
(Note
1
g
)
.............................................................
570,103
Other
....................................................................................
118,669
Total
expenses
.........................................................................
12,549,246
Expense
reductions
(Note
4
)
...............................................................
(1,846)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(430,659)
Net
expenses
.........................................................................
12,116,741
Net
investment
income
................................................................
63,451,471
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(39,367,233)
Controlled
affiliates
(Note
3f
and
10)
..........................................................
(15,076,298)
Foreign
currency
transactions
................................................................
27,954
Forward
exchange
contracts
.................................................................
(4,556,121)
Futures
contracts
.........................................................................
(2,965,454)
Swap
contracts
...........................................................................
(3,817,853)
Net
realized
gain
(loss)
..................................................................
(65,755,005)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(75,789,733)
Controlled
affiliates
(Note
3
f
and
10
)
..........................................................
15,293,618
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
453,499
Forward
exchange
contracts
.................................................................
1,047,580
Futures
contracts
.........................................................................
(12,368,216)
Swap
contracts
...........................................................................
2,587,099
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(68,776,153)
Net
realized
and
unrealized
gain
(loss)
............................................................
(134,531,158)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(71,079,687)
Franklin
Strategic
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
Franklin
Strategic
Income
Fund
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$63,451,471
$131,667,390
Net
realized
gain
(loss)
.................................................
(65,755,005)
(235,838,604)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(68,776,153)
111,730,544
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(71,079,687)
7,559,330
Distributions
to
shareholders:
Class
A
.............................................................
(51,399,728)
(106,771,149)
Class
C
.............................................................
(1,809,200)
(5,088,448)
Class
R
.............................................................
(854,803)
(1,845,783)
Class
R6
............................................................
(3,306,289)
(6,146,385)
Advisor
Class
........................................................
(7,219,417)
(16,190,187)
Total
distributions
to
shareholders
..........................................
(64,589,437)
(136,041,952)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(82,799,242)
(224,634,715)
Class
C
.............................................................
(21,427,601)
(64,606,419)
Class
R
.............................................................
(2,591,507)
(5,595,004)
Class
R6
............................................................
1,430,805
1,832,985
Advisor
Class
........................................................
(29,545,446)
(64,076,114)
Total
capital
share
transactions
............................................
(134,932,991)
(357,079,267)
Net
increase
(decrease)
in
net
assets
...................................
(270,602,115)
(485,561,889)
Net
assets:
Beginning
of
period
.....................................................
2,870,441,277
3,356,003,166
End
of
period
..........................................................
$2,599,839,162
$2,870,441,277
Franklin
Strategic
Series
121
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Franklin
Strategic
Income
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of ten
separate
funds.
The
Trust
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
Franklin
Strategic
Income
Fund
(Fund)
is
included
in
this
report.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6
and
Advisor
Class. Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and
derivative
financial instruments listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
Certain
derivative
financial
instruments
are
centrally
cleared
or
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
122
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Joint
Repurchase
Agreement
The
Fund
enters
into
a
joint
repurchase
agreement
whereby
its
uninvested
cash
balance
is
deposited
into
a
joint
cash
account
with
other
funds
managed
by
the
investment
manager
or
an
affiliate
of
the
investment
manager
and
is
used
to
invest
in
one
or
more
repurchase
agreements.
The
value
and
face
amount
of
the
joint
repurchase
agreement
are
allocated
to
the
funds
based
on
their
pro-rata
interest.
A
repurchase
agreement
is
accounted
for
as
a
loan
by
the
Fund
to
the
seller,
collateralized
by
securities
which
are
delivered
to
the
Fund's
custodian.
The
fair
value,
including
accrued
interest,
of
the
initial
collateralization
is
required
to
be
at
least
102%
of
the
dollar
amount
invested
by
the
funds,
with
the
value
of
the
underlying
securities
marked
to
market
daily
to
maintain
coverage
of
at
least
100%.
Repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(sellers).
The
MRAs
contain
various
provisions,
including
but
not
limited
to
events
of
default
and
maintenance
of
collateral
for
repurchase
agreements.
In
the
event
of
default
by
either
the
seller
or
the
Fund,
certain
MRAs
may
permit
the
non-
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
123
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
defaulting
party
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
Fund
may
sell
securities
it
holds
as
collateral
and
apply
the
proceeds
towards
the
repurchase
price
and
any
other
amounts
owed
by
the
seller
to
the
Fund
in
the
event
of
default
by
the
seller.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
repurchase
price
owed
by
the
seller.
The
joint
repurchase
agreement
held
by
the Fund
at
period
end,
as
indicated
in
the
Schedule
of
Investments,
had
been
entered
into
on
October
31,
2023.
d.
Securities
Purchased
on
a
TBA
Basis
The
Fund
purchases
securities
on
a
to-be-announced
(TBA)
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities, it
may
sell
the
securities
before
the
settlement
date.
e.
Derivative
Financial
Instruments
The
Fund invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statement
of
Operations.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund's
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Joint
Repurchase
Agreement
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
124
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
The
Fund
entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
The
Fund entered
into
OTC
forward
exchange
contracts
primarily
to
manage
and/or
gain exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency at
a
specific
exchange
rate
on
a
future
date.
The
Fund
entered
into
credit
default
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
risk.
A
credit
default
swap
is
an
agreement
between
the
Fund
and
a
counterparty
whereby
the
buyer
of
the
contract
receives
credit
protection
and
the
seller
of
the
contract
guarantees
the
credit
worthiness
of
a
referenced
debt
obligation.
These
agreements
may
be
privately
negotiated
in
the
over-the-
counter
market
(OTC
credit
default
swaps)
or
may
be
executed
in
a
multilateral
trade
facility
platform,
such
as
a
registered
exchange
(centrally
cleared
credit
default
swaps).
The
underlying
referenced
debt
obligation
may
be
a
single
issuer
of
corporate
or
sovereign
debt,
a
credit
index,
a
basket
of
issuers
or
indices,
or
a
tranche
of
a
credit
index
or
basket
of
issuers
or
indices.
In
the
event
of
a
default
of
the
underlying
referenced
debt
obligation,
the
buyer
is
entitled
to
receive
the
notional
amount
of
the
credit
default
swap
contract
from
the
seller
in
exchange
for
the
referenced
debt
obligation,
a
net
settlement
amount
equal
to
the
notional
amount
of
the
credit
default
swap
less
the
recovery
value
of
the
referenced
debt
obligation,
or
other
agreed
upon
amount.
For
centrally
cleared
credit
default
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable
in
the
Statement
of
Assets
and
Liabilities.
Over
the
term
of
the
contract,
the
buyer
pays
the
seller
a
periodic
stream
of
payments,
provided
that
no
event
of
default
has
occurred.
Such
periodic
payments
are
accrued
daily
as
an
unrealized
appreciation or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
are
reflected
in
the Statement
of
Assets
and
Liabilities
and
represent
compensating
factors
between
stated
terms
of
the
credit
default
swap
agreement
and
prevailing
market
conditions
(credit
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss
in
the Statement
of
Operations.
The
Fund
entered
into
OTC
total
return
swap
contracts
primarily
to
manage
and/or
gain exposure
to
credit risk
of
an
underlying
instrument
such
as
a
stock,
bond,
index
or
basket
of
securities
or
indices.
A
total
return
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
a
return
linked
to
an
underlying
instrument
for
a
floating
or
fixed
rate
payment,
both
based
upon
a
notional
amount.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
or
received
are
accrued
daily
and
recorded
as
unrealized
appreciation or
depreciation
until
the
payments
are
made,
at
which
time
they
are
recognized
as
realized
gain
or
loss.
At
October
31,
2023,
the
Fund
had
no
total
return
swap
contracts.
See
Note
9 regarding
other
derivative
information.
f.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Additionally,
at
October
31,
2023,
Fund
held
$2,298,132
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Fund's
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statement
of
Assets
and
Liabilities. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
1.
Organization
and
Significant
Accounting
Policies
(continued)
e.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
125
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
g.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
h.
Mortgage
Dollar
Rolls
The
Fund
enters
into
mortgage
dollar
rolls,
typically
on
a
TBA
basis.
Mortgage
dollar
rolls
are
agreements
between
the
Fund
and
a
financial
institution
where
the
Fund
sells
(or
buys)
mortgage-backed
securities
for
delivery
on
a
specified
date
and
simultaneously
contracts
to
repurchase
(or
sell)
substantially
similar
(same
type,
coupon,
and
maturity)
securities
at
a
future
date
and
at
a
predetermined
price.
Gains
or
losses
are
realized
on
the
initial
sale,
and
the
difference
between
the
repurchase
price
and
the
sale
price
is
recorded
as
an
unrealized
gain
or
loss
to
the
Fund
upon
entering
into
the
mortgage
dollar
roll.
In
addition,
the
Fund
may
invest
the
cash
proceeds
that
are
received
from
the
initial
sale.
During
the
period
between
the
sale
and
repurchase,
the
Fund
is
not
entitled
to
principal
and
interest
paid
on
the
mortgage
backed
securities.
Transactions
in
mortgage
dollar
rolls
are
accounted
for
as
purchases
and
sales
and
may
result
in
an
increase
to
the
Fund's
portfolio
turnover
rate.
The
risks
of
mortgage
dollar
roll
transactions
include
the
potential
inability
of
the
counterparty
to
fulfill
its
obligations.
i.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
j.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Securities
Lending
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
126
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2023, the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
k.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income
in
the
Statement
of
Operations.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
Inflation-indexed
bonds
are
adjusted
for
inflation
through
periodic
increases
or
decreases
in
the
security's
interest
accruals,
face
amount,
or
principal
redemption
value,
by
amounts
corresponding
to
the
rate
of
inflation
as
measured
by
an
index.
Any
increase
or
decrease
in
the
face
amount
or
principal
redemption
value
will
be
included
as
interest
income
in
the
Statement
of
Operations.
l.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
m.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
j.
Income
and
Deferred
Taxes
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
127
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
October
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
October
31,
2023
Year
Ended
April
30,
2023
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
12,166,639
$98,324,682
23,791,924
$194,624,798
Shares
issued
in
reinvestment
of
distributions
..........
6,058,871
48,626,495
12,422,561
101,065,569
Shares
redeemed
...............................
(28,487,062)
(229,750,419)
(63,688,712)
(520,325,082)
Net
increase
(decrease)
..........................
(10,261,552)
$(82,799,242)
(27,474,227)
$(224,634,715)
Class
C
Shares:
Shares
sold
...................................
800,947
$6,474,962
1,064,169
$8,724,896
Shares
issued
in
reinvestment
of
distributions
..........
216,516
1,740,818
605,456
4,931,255
Shares
redeemed
a
..............................
(3,663,605)
(29,643,381)
(9,555,676)
(78,262,570)
Net
increase
(decrease)
..........................
(2,646,142)
$(21,427,601)
(7,886,051)
$(64,606,419)
Class
R
Shares:
Shares
sold
...................................
542,810
$4,378,070
728,664
$5,945,032
Shares
issued
in
reinvestment
of
distributions
..........
106,528
851,145
226,920
1,837,872
Shares
redeemed
...............................
(971,409)
(7,820,722)
(1,648,826)
(13,377,908)
Net
increase
(decrease)
..........................
(322,071)
$(2,591,507)
(693,242)
$(5,595,004)
Class
R6
Shares:
Shares
sold
...................................
2,178,647
$17,618,251
3,982,344
$32,673,110
Shares
issued
in
reinvestment
of
distributions
..........
347,925
2,797,076
632,664
5,157,406
Shares
redeemed
...............................
(2,349,708)
(18,984,522)
(4,387,632)
(35,997,531)
Net
increase
(decrease)
..........................
176,864
$1,430,805
227,376
$1,832,985
Advisor
Class
Shares:
Shares
sold
...................................
2,139,863
$17,308,830
7,495,412
$61,389,999
Shares
issued
in
reinvestment
of
distributions
..........
626,979
5,040,667
1,560,308
12,733,375
Shares
redeemed
...............................
(6,470,356)
(51,894,943)
(16,904,453)
(138,199,488)
Net
increase
(decrease)
..........................
(3,703,514)
$(29,545,446)
(7,848,733)
$(64,076,114)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
128
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
a.
Management
Fees
The
Fund
pays
an
investment
management fee,
calculated
daily and
paid
monthly,
to
Advisers based
on the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2023,
the
annualized
gross
effective
investment
management
fee rate
was
0.459%
of
the
Fund’s
average
daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
Class
A
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
and
R compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Class
A
....................................................................................
0.25%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
3.
Transactions
with
Affiliates
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
129
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly,
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2023,
the
fees
are
based
on
a
fixed
margin
earned
by
Investor
Services
and
are
allocated
to
the
Fund
based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2023,
the
Fund
paid
transfer
agent
fees
as
noted
in
the
Statement
of
Operations,
of
which
$767,984
was retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2023,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Fund have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2024.
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$18,894
CDSC
retained
..............................................................................
$8,728
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Floating
Rate
Income
Fund
..................
$145,949,688
$—
$(55,727,183)
$(15,390,356)
$15,293,618
$90,125,767
11,365,166
$5,511,273
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.035%
$37,364,960
$4,241,749
$(7,618,358)
$—
$—
$33,988,351
33,988,351
$876,965
Total
Affiliated
Securities
...
$183,314,648
$4,241,749
$(63,345,541)
$(15,390,356)
$15,293,618
$124,114,118
$6,388,238
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
130
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
4.
Expense
Offset
Arrangement
The Fund has
previously
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
period
ended
October
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
Effective July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2023,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
foreign
currency
transactions,
paydown
losses,
payments-in-kind,
bond
discounts
and
premiums
and
swaps.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
October
31,
2023,
aggregated
$793,484,813
and
$756,083,371,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
October
31,
2023,
the
Fund
had 24.9%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
October
31,
2023,
the
aggregate
value
of
these
securities
represents
less
than
0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$143,373,255
Long
term
................................................................................
778,328,486
Total
capital
loss
carryforwards
...............................................................
$921,701,741
Cost
of
investments
..........................................................................
$2,977,935,843
Unrealized
appreciation
........................................................................
$39,683,338
Unrealized
depreciation
........................................................................
(359,089,440)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(319,406,102)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
131
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
8.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
October
31,
2023,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
9.
Other
Derivative
Information
At
October
31,
2023,
investments
in
derivative
contracts
are
reflected
in
the
Statement of
Assets
and
Liabilities
as
follows:
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Strategic
Income
Fund
125,940,079
a
K2016470219
South
Africa
Ltd.,
A
...............
2/08/13
-
2/01/17
$
977,123
$
—
12,532,821
a
K2016470219
South
Africa
Ltd.,
B
...............
2/01/17
9,307
—
6,000,000
WorkCapital
BSD
SARL,
2/13/26
................
2/15/19
750,000
—
20,000,000
WorkCapital
BSD
SARL,
Term
Loan,
6.5%,
1/01/38
..
2/13/19
19,530,078
—
Total
Restricted
Securities
(Value
is
—%
of
Net
Assets)
..............
$21,266,508
$—
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$—
as
of
October
31,
2023.
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Franklin
Strategic
Income
Fund
Interest
rate
contracts
.......
Variation
margin
on
futures
contracts
$
—
Variation
margin
on
futures
contracts
$
5,990,788
a
Foreign
exchange
contracts
..
Unrealized
appreciation
on
OTC
forward
exchange
contracts
106,516
Unrealized
depreciation
on
OTC
forward
exchange
contracts
537,471
Credit
contracts
............
Variation
margin
on
centrally
cleared
swap
contracts
528
b
Variation
margin
on
centrally
cleared
swap
contracts
—
OTC
swap
contracts
(upfront
payments)
6,268
OTC
swap
contracts
(upfront
receipts)
3,016,898
Unrealized
appreciation
on
OTC
swap
contracts
756,530
Unrealized
depreciation
on
OTC
swap
contracts
4,642,033
Total
....................
$869,842
$14,187,190
a
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
futures
contracts
as
reported
in
the
Schedule
of
Investments.
Only
the
variation
margin
receivable/payable
at
period
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
132
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
For
the
period
ended
October
31,
2023,
the
effect
of
derivative
contracts
in
the Statement
of
Operations
was
as
follows:
For
the
period
ended
October
31,
2023,
the
average
month
end
notional
amount
of
futures
contracts
and
swap
contracts
represented
$350,083,445
and
$142,725,397,
respectively. The
average
month
end
contract
value
of
forward
exchange
contracts
was
$43,603,350.
At
October
31,
2023,
the
Fund's
OTC
derivative
assets
and
liabilities
are
as
follows:
At
October
31,
2023,
OTC
derivative
assets,
which
may
be
offset
against
the
Fund's
OTC
derivative
liabilities
and
collateral
received
from
the
counterparty,
are
as
follows:
b
This
amount
reflects
the
cumulative
appreciation
(depreciation)
of
centrally
cleared
swap
contracts
as
reported
in
the
Schedule
of
Investments.
Only
the
variation
margin
receivable/payable
at
period
end
is
separately
reported
within
the
Statement
of
Assets
and
Liabilities.
Prior
variation
margin
movements
were
recorded
to
cash
upon
receipt
or
payment.
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Franklin
Strategic
Income
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Interest
rate
contracts
..........
Futures
contracts
$(2,965,454)
Futures
contracts
$(12,368,216)
Foreign
exchange
contracts
.....
Forward
exchange
contracts
(4,556,121)
Forward
exchange
contracts
1,047,580
Credit
contracts
...............
Swap
contracts
(3,817,853)
Swap
contracts
2,587,099
Total
.......................
$(11,339,428)
$(8,733,537)
Gross
Amounts
of
Assets
and
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Assets
a
Liabilities
a
Franklin
Strategic
Income
Fund
Forward
exchange
contracts
.............................
$
106,516
$
537,471
Swap
contracts
.......................................
762,798
7,658,931
Total
.............................................
$869,314
$8,196,402
a
Absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
9.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
133
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
At
October
31,
2023,
OTC
derivative
liabilities,
which
may
be
offset
against
the
Fund's
OTC
derivative
assets
and
collateral
pledged
to
the
counterparty,
are
as
follows:
See
Note
1(e)
regarding
derivative
financial
instruments.
See
Abbreviations
on
page
138
.
10.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
Additionally,
as
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
companies’
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
company.
During
the
period
ended
October
31,
2023,
investments
in
“affiliated
companies”
were
as
follows:
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Received
Cash
Collateral
Received
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
BNDP
...................
$20,804
$—
$—
$—
$20,804
CITI
.....................
741,994
(741,994)
—
—
—
JPHQ
...................
106,516
(106,516)
—
—
—
Total
...................
$869,314
$(848,510)
$
—
$—
$20,804
$
1
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Pledged
Cash
Collateral
Pledged
a
Net
Amount
(Not
less
than
zero)
Franklin
Strategic
Income
Fund
Counterparty
BNDP
...................
$—
$—
$—
$—
$—
CITI
.....................
7,658,931
(741,994)
—
(6,916,937)
—
JPHQ
...................
537,471
(106,516)
—
(270,000)
160,955
Total
...................
$8,196,402
$(848,510)
$—
$(7,186,937)
$160,955
a
In
some
instances,
the
collateral
amounts
disclosed
in
the
table
above
were
adjusted
due
to
the
requirement
to
limit
collateral
amounts
to
avoid
the
effect
of
over
collateralization.
Actual
collateral
received
and/or
pledged
may
be
more
than
the
amounts
disclosed
herein.
9.
Other
Derivative
Information
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
134
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
11.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the Statement
of
Operations.
During
the
period
ended
October
31,
2023,
the Fund
did
not
use
the
Global
Credit
Facility.
12.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
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
Strategic
Income
Fund
Controlled
Affiliates
Dividends
Birch
Permian
Holdings,
Inc.
............
$
6,731,505
$
—
$
(3,862,970)
$
314,058
$
—
a
$
—
a
—
a
$
1,238,678
Total
Affiliated
Securities
(Value
is
—%
of
Net
Assets)
..........
$6,731,505
$—
$(3,862,970)
$314,058
$—
$—
$1,238,678
a
As
of
October
31,
2023,
no
longer
an
affiliate.
10.
Holdings
of
5%
Voting
Securities
of
Portfolio
Companies
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
135
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2023,
in
valuing
the
Fund's assets
and
liabilities carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Broadline
Retail
.......................
$
—
$
—
$
—
a
$
—
Oil,
Gas
&
Consumable
Fuels
.............
36,752
19,713,936
—
19,750,688
Management
Investment
Companies
.........
—
90,125,767
—
90,125,767
Warrants
...............................
—
—
—
a
—
Convertible
Bonds
.......................
—
49,095
—
49,095
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
24,019,086
—
24,019,086
Air
Freight
&
Logistics
...................
—
3,048,569
—
3,048,569
Automobile
Components
.................
—
26,730,433
—
26,730,433
Automobiles
..........................
—
6,041,534
—
6,041,534
Banks
...............................
—
157,262,399
—
157,262,399
Beverages
...........................
—
8,747,177
—
8,747,177
Biotechnology
.........................
—
14,839,897
—
14,839,897
Broadline
Retail
.......................
—
—
—
a
—
Building
Products
......................
—
21,162,880
—
21,162,880
Capital
Markets
........................
—
64,600,814
—
64,600,814
Chemicals
...........................
—
46,391,869
—
46,391,869
Commercial
Services
&
Supplies
...........
—
22,759,414
—
22,759,414
Communications
Equipment
..............
—
3,319,105
—
3,319,105
Construction
&
Engineering
...............
—
4,892,412
—
4,892,412
Construction
Materials
..................
—
6,984,588
—
6,984,588
Consumer
Finance
.....................
—
20,387,440
—
20,387,440
Consumer
Staples
Distribution
&
Retail
......
—
12,107,863
—
12,107,863
Containers
&
Packaging
.................
—
43,015,204
—
43,015,204
Distributors
...........................
—
4,181,967
—
4,181,967
Diversified
Consumer
Services
............
—
6,654,750
—
6,654,750
Diversified
REITs
......................
—
11,974,617
—
11,974,617
Diversified
Telecommunication
Services
.....
—
37,939,072
—
37,939,072
Electric
Utilities
........................
—
59,910,560
—
59,910,560
Electrical
Equipment
....................
—
9,110,310
—
9,110,310
Electronic
Equipment,
Instruments
&
Components
........................
—
10,676,161
—
10,676,161
Energy
Equipment
&
Services
.............
—
3,503,938
—
3,503,938
Entertainment
.........................
—
4,798,894
—
4,798,894
Financial
Services
......................
—
10,723,393
1,228,110
11,951,503
Food
Products
........................
—
21,710,843
—
21,710,843
Gas
Utilities
..........................
—
1,629,146
—
1,629,146
Ground
Transportation
..................
—
8,850,175
—
8,850,175
Health
Care
Equipment
&
Supplies
.........
—
20,622,403
—
20,622,403
Health
Care
Providers
&
Services
..........
—
59,554,692
—
59,554,692
Health
Care
REITs
.....................
—
4,750,149
—
4,750,149
Health
Care
Technology
.................
—
6,993,000
—
6,993,000
Hotel
&
Resort
REITs
...................
—
2,964,829
—
2,964,829
Hotels,
Restaurants
&
Leisure
.............
—
31,037,928
—
31,037,928
Household
Durables
....................
—
2,310,227
—
2,310,227
Household
Products
....................
—
7,590,350
—
7,590,350
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
25,200,303
—
25,200,303
Insurance
............................
—
34,450,233
—
34,450,233
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
136
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
At October
31,
2023,
the
reconciliation
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Interactive
Media
&
Services
..............
$
—
$
13,952,589
$
—
$
13,952,589
IT
Services
...........................
—
27,131,780
—
27,131,780
Life
Sciences
Tools
&
Services
............
—
3,768,375
—
3,768,375
Machinery
............................
—
8,917,937
—
8,917,937
Media
...............................
—
56,072,456
—
56,072,456
Metals
&
Mining
.......................
—
27,015,371
—
27,015,371
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
8,055,168
—
8,055,168
Multi-Utilities
..........................
—
14,760,683
—
14,760,683
Oil,
Gas
&
Consumable
Fuels
.............
—
137,346,284
—
137,346,284
Paper
&
Forest
Products
.................
—
9,084,873
—
9,084,873
Passenger
Airlines
.....................
—
13,647,704
—
13,647,704
Personal
Care
Products
.................
—
32,508,843
—
32,508,843
Pharmaceuticals
.......................
—
31,300,044
—
31,300,044
Real
Estate
Management
&
Development
....
—
3,987,500
—
3,987,500
Software
.............................
—
4,805,224
—
4,805,224
Specialized
REITs
......................
—
7,953,271
—
7,953,271
Specialty
Retail
........................
—
6,987,671
—
6,987,671
Technology
Hardware,
Storage
&
Peripherals
.
—
1,653,615
—
1,653,615
Textiles,
Apparel
&
Luxury
Goods
..........
—
5,576,011
—
5,576,011
Tobacco
.............................
—
21,656,032
—
21,656,032
Trading
Companies
&
Distributors
..........
—
17,307,841
—
17,307,841
Transportation
Infrastructure
..............
—
662,142
—
662,142
Wireless
Telecommunication
Services
.......
—
14,525,290
—
14,525,290
Senior
Floating
Rate
Interests
...............
—
—
—
a
—
Marketplace
Loans
.......................
—
—
43,002,967
43,002,967
Foreign
Government
and
Agency
Securities
....
—
53,301,952
—
53,301,952
U.S.
Government
and
Agency
Securities
.......
—
502,913,991
—
502,913,991
Asset-Backed
Securities
...................
—
115,392,746
—
115,392,746
Commercial
Mortgage-Backed
Securities
......
—
15,224,977
—
15,224,977
Mortgage-Backed
Securities
................
—
296,227,832
—
296,227,832
Residential
Mortgage-Backed
Securities
.......
—
80,225,497
—
80,225,497
Escrows
and
Litigation
Trusts
...............
—
435,000
—
a
435,000
Short
Term
Investments
...................
33,988,351
77,879,659
—
111,868,010
Total
Investments
in
Securities
...........
$34,025,103
$2,593,615,780
$44,231,077
$2,671,871,960
Other
Financial
Instruments:
Forward
exchange
contracts
...............
$—
$106,516
$—
$106,516
Swap
contracts
.........................
—
757,058
—
757,058
Total
Other
Financial
Instruments
.........
$—
$863,574
$—
$863,574
Liabilities:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$—
$537,471
$—
$537,471
Swap
contracts
..........................
—
4,642,033
—
4,642,033
Futures
contracts
........................
5,990,788
—
—
5,990,788
Total
Other
Financial
Instruments
.........
$5,990,788
$5,179,504
$—
$11,170,292
a
Includes
financial
instruments
determined
to
have
no
value.
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
137
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
October
31,
2023,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
a
Sales
b
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Broadline
Retail
.....
$
—
c
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
c
$
—
Warrants
:
Oil,
Gas
&
Consumable
Fuels
..........
—
c
—
—
—
—
—
—
—
—
c
—
Software
..........
—
c
—
—
—
—
—
—
—
—
c
—
Corporate
Bonds
:
Broadline
Retail
.....
—
c
—
—
—
—
—
—
—
—
c
—
Financial
Services
...
1,421,613
—
(1,294,615)
—
—
1,605
(228,563)
1,328,070
1,228,110
(57,244)
Senior
Floating
Rate
Interests
:
Software
..........
—
c
—
—
—
—
—
—
—
—
—
Marketplace
Loans
:
Financial
Services
...
54,177,465
6,748,855
(18,062,759)
—
—
—
(437,798)
577,204
43,002,967
(703,712)
Escrows
and
Litigation
Trusts
...........
—
c
—
—
—
—
—
—
—
—
c
—
Total
Investments
in
Securities
............
$55,599,078
$6,748,855
$(19,357,374)
$—
$—
$1,605
$(666,361)
$1,905,274
$44,231,077
$(760,956)
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Includes
financial
instruments
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Marketplace
Loans:
Financial
Services
$43,002,967
Discounted
cash
flow
Loss-adjusted
discount
rate
0.9%
–
17.8%
(9.5%)
Decrease
Projected
loss
rate
1.9%
–
47.9%
(16.6%)
Decrease
All
Other
Investments
.
.
.
.
.
.
.
1,228,110
c,d
Total
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.........
$44,231,077
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Notes
to
Financial
Statements
(unaudited)
138
franklintempleton.com
Semiannual
Report
Franklin
Strategic
Income
Fund
(continued)
13.
New
Accounting
Pronouncements
In
March
2020,
the FASB
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR) and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements.
14.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
d
Includes
financial
instruments
determined
to
have
no
value.
Counterparty
BNDP
BNP
Paribas
SA
CITI
Citibank
NA
JPHQ
JPMorgan
Chase
Bank
NA
Cu
r
rency
BRL
Brazilian
Real
COP
Colombian
Peso
EUR
Euro
Index
CDX.NA.HY.
Series
number
CDX
North
America
High
Yield
Index
MCDX.NA.
Series
number
MCDX
North
America
Index
Selected
Portfolio
BZDIOVRA
Brazil
Inter-Bank
Deposit
Rate
CLO
Collateralized
Loan
Obligation
CMT
Constant
Monthly
U.S.
Treasury
Securities
Yield
Curve
Rate
Index
FFCB
Federal
Farm
Credit
Banks
Funding
Corp.
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
MBS
Mortgage-Backed
Security
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
TBA
To-Be-Announced
T-Note
Treasury
Note
12.
Fair
Value
Measurements
(continued)
Franklin
Strategic
Series
Shareholder
Information
139
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Strategic
Series
Shareholder
Information
140
franklintempleton.com
Semiannual
Report
Quarterly
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
194
S
12/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
recorded.
Semiannual
Report
Franklin
Strategic
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services.
N/A
Item 5. Audit Committee
of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 14. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN
STRATEGIC SERIES
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date December 21, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date December 21, 2023
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date December 21, 2023