UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06481
Franklin Municipal Securities Trust
(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: 2/28
Date of reporting period: 8/31/24
Item 1. Reports to Stockholders.
| a.) | The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1). |
| | | |
| b.) | Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule. |
Not Applicable.
| | |
Franklin California High Yield Municipal Fund | |
| Class A [FCQAX] |
| Semi-Annual Shareholder Report | August 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2024, to August 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Class A | $41 | 0.80% |
KEY FUND STATISTICS (as of August 31, 2024)
| |
Total Net Assets | $2,791,463,555 |
Total Number of Portfolio Holdings* | 634 |
Portfolio Turnover Rate | 3.30% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of August 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin California High Yield Municipal Fund | PAGE 1 | 1175-STSR-1024 |
21.417.815.211.89.27.85.24.52.92.21.20.8
| | |
Franklin California High Yield Municipal Fund | |
| Class A1 [FCAMX] |
| Semi-Annual Shareholder Report | August 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2024, to August 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Class A1 | $33 | 0.65% |
KEY FUND STATISTICS (as of August 31, 2024)
| |
Total Net Assets | $2,791,463,555 |
Total Number of Portfolio Holdings* | 634 |
Portfolio Turnover Rate | 3.30% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of August 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin California High Yield Municipal Fund | PAGE 1 | 175-STSR-1024 |
21.417.815.211.89.27.85.24.52.92.21.20.8
| | |
Franklin California High Yield Municipal Fund | |
| Class C [FCAHX] |
| Semi-Annual Shareholder Report | August 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2024, to August 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Class C | $61 | 1.20% |
KEY FUND STATISTICS (as of August 31, 2024)
| |
Total Net Assets | $2,791,463,555 |
Total Number of Portfolio Holdings* | 634 |
Portfolio Turnover Rate | 3.30% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of August 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin California High Yield Municipal Fund | PAGE 1 | 275-STSR-1024 |
21.417.815.211.89.27.85.24.52.92.21.20.8
| | |
Franklin California High Yield Municipal Fund | |
| Class R6 [FCAQX] |
| Semi-Annual Shareholder Report | August 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2024, to August 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Class R6 | $27 | 0.52% |
KEY FUND STATISTICS (as of August 31, 2024)
| |
Total Net Assets | $2,791,463,555 |
Total Number of Portfolio Holdings* | 634 |
Portfolio Turnover Rate | 3.30% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of August 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin California High Yield Municipal Fund | PAGE 1 | 8175-STSR-1024 |
21.417.815.211.89.27.85.24.52.92.21.20.8
| | |
Franklin California High Yield Municipal Fund | |
| Advisor Class [FVCAX] |
| Semi-Annual Shareholder Report | August 31, 2024 |
|
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2024, to August 31, 2024.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
| | |
Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment† |
| Advisor Class | $28 | 0.55% |
KEY FUND STATISTICS (as of August 31, 2024)
| |
Total Net Assets | $2,791,463,555 |
Total Number of Portfolio Holdings* | 634 |
Portfolio Turnover Rate | 3.30% |
| * | Does not include derivatives, except purchased options, if any. |
WHAT DID THE FUND INVEST IN? (as of August 31, 2024)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
| |
| WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| • prospectus • proxy voting information • financial information • holdings • tax information |
| Franklin California High Yield Municipal Fund | PAGE 1 | 675-STSR-1024 |
21.417.815.211.89.27.85.24.52.92.21.20.8
Item 2. Code of Ethics. N/A
Item 3. Audit Committee Financial Expert. N/A
Item 4. Principal Accountant Fees and Services. N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments.
(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.
(b) N/A
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Franklin
California
High
Yield
Municipal
Fund
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
August
31,
2024
Financial
Statements
and
Other
Important
Information—Semiannual
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
26
Notes
to
Financial
Statements
30
Changes
In
and
Disagreements
with
Accountants
41
Results
of
Meeting(s)
of
Shareholders
41
Remuneration
Paid
to
Directors,
Officers
and
Others
41
Board
Approval
of
Management
and
Subadvisory
Agreements
41
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2024
a
2023
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.85
$9.69
$11.02
$11.49
$10.81
$11.10
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.20
0.39
0.36
0.26
0.35
0.34
Net
realized
and
unrealized
gains
(losses)
0.12
0.16
(1.35)
(0.49)
0.67
(0.29)
Total
from
investment
operations
........
0.32
0.55
(0.99)
(0.23)
1.02
0.05
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.39)
(0.34)
(0.24)
(0.34)
(0.34)
Net
asset
value,
end
of
period
..........
$9.97
$9.85
$9.69
$11.02
$11.49
$10.81
Total
return
e
.......................
3.26%
5.85%
(9.03)%
(2.09)%
9.57%
0.43%
Ratios
to
average
net
assets
f
Expenses
g
........................
0.80%
0.84%
0.88%
0.81%
0.79%
0.80%
Net
investment
income
...............
3.97%
4.10%
3.63%
2.88%
3.10%
3.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$848,994
$710,549
$595,614
$714,052
$618,967
$425,757
Portfolio
turnover
rate
................
3.30%
10.93%
18.77%
10.19%
9.20%
23.29%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
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.
d
Based
on
average
daily
shares
outstanding.
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%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2024
a
2023
2021
2020
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.83
$9.67
$10.99
$11.47
$10.79
$11.08
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.20
0.41
0.38
0.26
0.37
0.36
Net
realized
and
unrealized
gains
(losses)
0.12
0.15
(1.35)
(0.49)
0.67
(0.29)
Total
from
investment
operations
........
0.32
0.56
(0.97)
(0.23)
1.04
0.07
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.40)
(0.35)
(0.25)
(0.36)
(0.36)
Net
asset
value,
end
of
period
..........
$9.95
$9.83
$9.67
$10.99
$11.47
$10.79
Total
return
e
.......................
3.35%
6.02%
(8.83)%
(2.07)%
9.76%
0.58%
Ratios
to
average
net
assets
f
Expenses
g
........................
0.65%
0.69%
0.72%
0.66%
0.64%
0.65%
Net
investment
income
...............
4.12%
4.25%
3.78%
3.04%
3.27%
3.25%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$748,737
$776,199
$862,312
$1,166,095
$1,254,701
$1,282,022
Portfolio
turnover
rate
................
3.30%
10.93%
18.77%
10.19%
9.20%
23.29%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
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.
d
Based
on
average
daily
shares
outstanding.
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%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2024
a
2023
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.91
$9.75
$11.08
$11.56
$10.87
$11.17
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.18
0.36
0.32
0.21
0.30
0.30
Net
realized
and
unrealized
gains
(losses)
0.12
0.15
(1.35)
(0.49)
0.69
(0.30)
Total
from
investment
operations
........
0.30
0.51
(1.03)
(0.28)
0.99
—
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.35)
(0.30)
(0.20)
(0.30)
(0.30)
Net
asset
value,
end
of
period
..........
$10.03
$9.91
$9.75
$11.08
$11.56
$10.87
Total
return
e
.......................
3.03%
5.39%
(9.35)%
(2.46)%
9.18%
(0.04)%
Ratios
to
average
net
assets
f
Expenses
g
........................
1.20%
1.23%
1.27%
1.20%
1.19%
1.20%
Net
investment
income
...............
3.54%
3.66%
3.19%
2.47%
2.69%
2.70%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$90,583
$92,877
$118,149
$180,173
$223,652
$253,579
Portfolio
turnover
rate
................
3.30%
10.93%
18.77%
10.19%
9.20%
23.29%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
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.
d
Based
on
average
daily
shares
outstanding.
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%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2024
a
2023
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.86
$9.70
$11.03
$11.51
$10.82
$11.12
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.21
0.42
0.39
0.27
0.38
0.38
Net
realized
and
unrealized
gains
(losses)
0.12
0.16
(1.35)
(0.49)
0.68
(0.30)
Total
from
investment
operations
........
0.33
0.58
(0.96)
(0.22)
1.06
0.08
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.42)
(0.37)
(0.26)
(0.37)
(0.38)
Net
asset
value,
end
of
period
..........
$9.98
$9.86
$9.70
$11.03
$11.51
$10.82
Total
return
e
.......................
3.41%
6.14%
(8.76)%
(1.96)%
9.97%
0.63%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.52%
0.55%
0.58%
0.53%
0.52%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
g
..........................
0.52%
0.55%
0.58%
h
0.52%
0.51%
0.51%
Net
investment
income
...............
4.24%
4.38%
3.91%
3.16%
3.37%
3.39%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$55,907
$50,713
$44,724
$60,366
$45,216
$26,741
Portfolio
turnover
rate
................
3.30%
10.93%
18.77%
10.19%
9.20%
23.29%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
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.
d
Based
on
average
daily
shares
outstanding.
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
A
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2024
a
2023
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.85
$9.69
$11.02
$11.50
$10.82
$11.11
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.21
0.42
0.39
0.27
0.38
0.37
Net
realized
and
unrealized
gains
(losses)
0.12
0.15
(1.36)
(0.49)
0.67
(0.29)
Total
from
investment
operations
........
0.33
0.57
(0.97)
(0.22)
1.05
0.08
Less
distributions
from:
Net
investment
income
..............
(0.21)
(0.41)
(0.36)
(0.26)
(0.37)
(0.37)
Net
asset
value,
end
of
period
..........
$9.97
$9.85
$9.69
$11.02
$11.50
$10.82
Total
return
e
.......................
3.39%
6.11%
(8.80)%
(1.99)%
9.84%
0.68%
Ratios
to
average
net
assets
f
Expenses
g
........................
0.55%
0.59%
0.62%
0.56%
0.54%
0.55%
Net
investment
income
...............
4.22%
4.34%
3.87%
3.13%
3.35%
3.35%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,047,243
$914,542
$922,275
$1,186,382
$1,113,278
$903,694
Portfolio
turnover
rate
................
3.30%
10.93%
18.77%
10.19%
9.20%
23.29%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
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.
d
Based
on
average
daily
shares
outstanding.
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%.
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited),
August
31,
2024
Franklin
California
High
Yield
Municipal
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Shares
a
Value
a
Common
Stocks
0.0%
Independent
Power
and
Renewable
Electricity
Producers
0.0%
a,b
AES
Guayama
Holdings
BV
...........................................
60,804
$
—
b
Total
Common
Stocks
(Cost
$
–
)
...............................................
—
Principal
Amount
a
a
a
a
Corporate
Bonds
2.4%
Commercial
Services
&
Supplies
0.6%
a
CalPlant
I
LLC
,
c
Senior
Secured
Note
,
144A,
15
%
,
7/01/25
...............................
$
4,195,000
4,195,000
d,e
21
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,370,000
178,100
d,e
21
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
5,220,000
678,600
d,e
22
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
2,875,000
373,750
d,e
22
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
250,000
32,500
d,e
22
C
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,885,000
1,885,000
d,e
22
X
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
2,830,000
2,830,000
d,e
23
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,000,000
1,000,000
d,e
23
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
890,000
890,000
d,e
23
C
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,415,000
1,415,000
d,e
23
D
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,230,000
1,230,000
d,e
23
E
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,385,000
1,385,000
16,092,950
Diversified
Consumer
Services
1.5%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
45,335,000
41,994,911
Electric
Utilities
0.3%
c
Mission
Rock
Utilities,
Inc.
,
144A,
7
%
,
7/01/27
..............................
10,000,000
10,148,367
Total
Corporate
Bonds
(Cost
$
79,801,419
)
......................................
68,236,228
f
Senior
Floating
Rate
Interests
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a
,e
,g
Rialto
Bioenergy
Facility
LLC
,
First
Lien,
CME
Term
Loan,
B
,
15.328
%
,
(
1-month
SOFR
+
10
%
),
4/01/31
.......
1,194,545
257,503
First
Lien,
Initial
Roll-Up
CME
Term
Loan,
B
,
15.32
%
,
(
12-month
SOFR
+
10
%
),
9/18/25
.........................................................
1,545,702
—
257,503
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$
2,720,166
)
...........................
257,503
Municipal
Bonds
93.6%
California
85.9%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/38
........................................................
850,000
912,227
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/43
........................................................
1,000,000
1,051,983
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........................................................
1,000,000
1,033,692
Burbank-Glendale-Pasadena
Airport
Authority
Brick
Campaign
,
Revenue,
Senior
Lien
,
2024
B
,
AGMC
Insured
,
4.375
%
,
7/01/49
...............
5,000,000
5,020,492
Revenue,
Senior
Lien
,
2024
B
,
AGMC
Insured
,
4.5
%
,
7/01/54
................
5,750,000
5,784,637
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
h
California
Community
Choice
Financing
Authority
,
Revenue
,
2021
B-1
,
Mandatory
Put
,
4
%
,
8/01/31
......................................................
$
10,000,000
$
10,172,712
California
Community
College
Financing
Authority
,
c
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
A
,
5.75
%
,
7/01/60
.....
17,500,000
17,941,432
c
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
B
,
7.75
%
,
7/01/30
.....
2,405,000
2,283,429
c
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
C
,
6.75
%
,
7/01/60
.....
7,050,000
7,177,557
NCCD-Orange
Coast
Properties
LLC
,
Revenue
,
2018
,
5.25
%
,
5/01/48
..........
225,000
230,853
NCCD-Orange
Coast
Properties
LLC
,
Revenue
,
2018
,
5.25
%
,
5/01/53
..........
6,785,000
6,943,084
c
California
Community
Housing
Agency
,
Annadel
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
..................
27,050,000
23,407,996
Exchange
at
Bayfront
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/51
........................................................
13,000,000
5,851,447
Mira
Vista
Hills
Apartments
,
Revenue
,
144A,
2021
A
,
4
%
,
2/01/56
.............
1,300,000
788,056
Serenity
at
Larkspur
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
2/01/50
.........
22,525,000
17,127,933
Twin
Creek
Apartments
,
Revenue,
Junior
Lien
,
144A,
2022
B
,
5.5
%
,
2/01/40
.....
5,475,000
5,006,366
Verdant
at
Green
Valley
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
8/01/49
.......
15,000,000
14,430,044
California
County
Tobacco
Securitization
Agency
,
Gold
Country
Settlement
Funding
Corp.
,
Revenue
,
2020
B-2
,
Refunding
,
Zero
Cpn.,
6/01/55
........................................................
12,905,000
2,878,567
Merced
County
Tobacco
Funding
Corp.
,
Revenue
,
2020
B
,
Refunding
,
5
%
,
6/01/50
3,000,000
3,030,210
Sonoma
County
Securitization
Corp.
,
Revenue
,
2020
B-2
,
Refunding
,
Zero
Cpn.,
6/01/55
........................................................
10,000,000
2,230,583
California
Educational
Facilities
Authority
,
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/37
.......
1,265,000
1,322,662
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/38
.......
1,125,000
1,172,919
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/44
.......
10,375,000
10,667,023
Leland
Stanford
Junior
University
(The)
,
Revenue
,
T-1
,
5
%
,
3/15/39
............
4,185,000
5,167,643
Leland
Stanford
Junior
University
(The)
,
Revenue
,
U-3
,
5
%
,
6/01/43
............
5,815,000
7,219,069
c
California
Enterprise
Development
Authority
,
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/36
250,000
244,481
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/51
630,000
556,223
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/61
845,000
719,758
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
4
%
,
3/01/39
........................................................
8,190,000
7,984,452
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
12/01/43
2,825,000
3,134,708
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
12/01/44
2,750,000
3,035,197
Children's
Hospital
Los
Angeles
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
4
%
,
8/15/49
........................................................
3,375,000
3,136,539
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2024
A
,
5
%
,
12/01/54
.........
16,000,000
17,262,242
El
Camino
Hospital
,
Revenue
,
2017
,
4
%
,
2/01/42
..........................
6,500,000
6,545,749
El
Camino
Hospital
,
Revenue
,
2017
,
5
%
,
2/01/42
..........................
5,000,000
5,194,501
Kaiser
Foundation
Hospitals
,
Revenue
,
2017
A-2
,
5
%
,
11/01/47
...............
21,565,000
26,172,914
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
8/15/43
.....................................
7,160,000
7,166,292
Sutter
Health
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/48
...............
12,485,000
12,905,568
California
Housing
Finance
Agency
,
Revenue
,
2019-2
,
A
,
4
%
,
3/20/33
......................................
51,678
53,211
Revenue
,
2021-1
,
A
,
3.5
%
,
11/20/35
...................................
3,792,575
3,690,885
c
Redwood
Gardens
Renewal
LP
,
Revenue
,
144A,
2021
N-S
,
4
%
,
3/01/37
........
3,165,000
2,732,258
c,h
Shermanair
Apartments
Owner
LP
,
Revenue
,
144A,
2021
Q-S
,
Mandatory
Put
,
4.5
%
,
9/01/36
........................................................
4,000,000
3,691,821
California
Infrastructure
&
Economic
Development
Bank
,
c,h
DesertXpress
Enterprises
LLC
,
Revenue
,
144A,
2020
A-4
,
Mandatory
Put
,
8
%
,
8/15/25
........................................................
15,800,000
15,951,253
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Infrastructure
&
Economic
Development
Bank,
(continued)
c
Goodwill
Industries
of
Sacramento
Valley
&
Northern
Nevada,
Inc.
,
Revenue
,
144A,
2016
A
,
5
%
,
1/01/47
..............................................
$
10,360,000
$
8,066,269
Roseville
Sustainable
Energy
Partner
LLC
,
Revenue
,
2024
A
,
5.25
%
,
7/01/54
....
6,000,000
6,450,018
c
WFCS
Holdings
II
LLC
,
Revenue
,
144A,
2021
A-1
,
5
%
,
1/01/56
...............
1,600,000
1,606,778
c
WFCS
Holdings
LLC
,
Revenue
,
144A,
2020
A-1
,
5
%
,
1/01/55
.................
2,300,000
2,309,068
California
Municipal
Finance
Authority
,
c,h
Revenue
,
144A,
2023
B-1
,
Mandatory
Put
,
7
%
,
4/01/33
.....................
20,770,000
21,170,001
c,h
Revenue
,
144A,
2023
B-2
,
Mandatory
Put
,
7
%
,
4/01/33
.....................
13,825,000
14,046,247
c
Revenue
,
144A,
2023
,
II
,
7
%
,
7/01/51
..................................
12,655,000
12,919,854
1717
University
Associates
LLC
,
Revenue
,
2020
A-S
,
5
%
,
9/01/57
.............
1,175,000
996,669
ACI
Royal
York,
Inc.
,
Revenue
,
2020
A
,
4
%
,
2/15/55
........................
2,375,000
1,999,012
American
Heritage/Escondido/Heritage
K-8
Charter
School
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
6/01/36
.............................
3,000,000
3,049,514
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6
%
,
9/01/52
................
2,920,000
3,156,160
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6.3
%
,
9/01/52
...............
1,205,000
1,312,728
BOLD
Program
,
Special
Tax
,
2022
C
,
6.25
%
,
9/01/52
.......................
4,045,000
4,382,647
BOLD
Program
,
Special
Tax
,
2022
D
,
6.125
%
,
9/01/52
......................
6,885,000
7,421,972
BOLD
Program
,
Special
Tax
,
2023
A
,
5.5
%
,
9/01/53
........................
3,000,000
3,221,359
BOLD
Program
,
Special
Tax
,
2023
C
,
5.25
%
,
9/01/53
.......................
1,300,000
1,372,093
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/39
.........................
275,000
293,561
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/44
.........................
625,000
651,839
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/48
.........................
300,000
308,645
BOLD
Program
,
Special
Tax
,
2024
A
,
5.125
%
,
9/01/54
......................
1,000,000
1,035,849
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/44
.........................
940,000
994,859
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/49
.........................
1,070,000
1,119,461
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/54
.........................
1,250,000
1,298,529
Bowles
Hall
Foundation
,
Revenue
,
2015
A
,
5
%
,
6/01/35
.....................
600,000
605,097
Bowles
Hall
Foundation
,
Revenue
,
2015
A
,
5
%
,
6/01/50
.....................
3,250,000
3,263,355
c
California
Baptist
University
,
Revenue
,
144A,
2015
A
,
5.375
%
,
11/01/40
.........
5,000,000
5,052,584
c
California
Baptist
University
,
Revenue
,
144A,
2015
A
,
5.5
%
,
11/01/45
...........
10,000,000
10,090,913
c
California
Baptist
University
,
Revenue
,
144A,
2016
A
,
5
%
,
11/01/36
............
2,500,000
2,544,390
c
Capital
Christian
Center
,
Revenue
,
144A,
2021
A
,
5
%
,
10/01/51
...............
8,425,000
7,499,133
c
Capital
Christian
Center
,
Revenue
,
144A,
2021
B
,
Refunding
,
4
%
,
10/01/37
......
8,150,000
6,858,932
Caritas
Affordable
Housing,
Inc.
,
Revenue,
Senior
Lien
,
2014
A
,
5
%
,
8/15/30
.....
1,000,000
1,000,636
Caritas
Affordable
Housing,
Inc.
,
Revenue,
Senior
Lien
,
2014
A
,
5.25
%
,
8/15/39
...
1,200,000
1,200,777
Caritas
Affordable
Housing,
Inc.
,
Revenue,
Senior
Lien
,
2014
A
,
5.25
%
,
8/15/49
...
3,500,000
3,501,427
CHF-Davis
I
LLC
,
Revenue
,
2018
,
5
%
,
5/15/51
...........................
5,000,000
5,126,458
CHF-Davis
II
LLC
,
Revenue
,
2021
,
BAM
Insured
,
3
%
,
5/15/51
................
550,000
426,593
CHF-Davis
II
LLC
,
Revenue
,
2021
,
BAM
Insured
,
3
%
,
5/15/54
................
2,585,000
1,951,962
CHF-Riverside
I
LLC
,
Revenue
,
2018
,
5
%
,
5/15/40
.........................
1,500,000
1,564,187
CHF-Riverside
II
LLC
,
Revenue
,
2019
,
5
%
,
5/15/49
........................
9,575,000
9,882,524
City
of
Chula
Vista
Community
Facilities
District
No.
2021-11
,
Special
Tax
,
2022
,
5
%
,
9/01/52
........................................................
2,500,000
2,587,577
c
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/39
.
1,120,000
1,130,469
c
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/49
.
4,290,000
4,241,465
c
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/54
.
1,875,000
1,834,949
Community
Facilities
District
No.
2021-13
,
Special
Tax
,
2022
,
5
%
,
9/01/42
.......
1,000,000
1,055,804
Community
Facilities
District
No.
2021-13
,
Special
Tax
,
2022
,
5
%
,
9/01/52
.......
5,150,000
5,330,409
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
6
%
,
9/01/52
....................................................
4,350,000
4,665,421
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/44
....................................................
500,000
529,180
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/49
....................................................
800,000
836,980
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/54
....................................................
1,125,000
1,168,676
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5.125
%
,
9/01/59
.................................................
$
1,550,000
$
1,625,624
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/48
........................................................
600,000
649,473
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
........................................................
1,060,000
1,146,772
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.8
%
,
9/01/53
........................................................
3,190,000
3,480,186
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
4
%
,
12/01/26
.......................................................
200,000
199,595
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/27
.......................................................
100,000
102,645
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/29
.......................................................
50,000
52,007
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/31
.......................................................
130,000
134,938
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/36
.......................................................
350,000
357,747
c
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/54
.......................................................
2,000,000
1,950,196
Community
Hospitals
of
Central
California
Obligated
Group
,
Revenue
,
2015
A
,
Pre-
Refunded
,
5
%
,
2/01/40
............................................
5,000,000
5,046,467
Community
Hospitals
of
Central
California
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
4
%
,
2/01/42
............................................
10,000,000
9,523,384
Congregational
Homes,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/39
.......................................................
2,670,000
2,731,108
Congregational
Homes,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/49
.......................................................
480,000
479,282
c
Creative
Center
of
Los
Altos
(The)
,
Revenue
,
144A,
2016
B
,
4
%
,
11/01/36
.......
1,395,000
1,307,718
c
Creative
Center
of
Los
Altos
(The)
,
Revenue
,
144A,
2016
B
,
4.5
%
,
11/01/46
......
1,600,000
1,449,651
Del
Harbor
Foundation
,
Revenue
,
2015
,
Refunding
,
5
%
,
11/01/32
.............
3,020,000
3,073,233
Del
Harbor
Foundation
,
Revenue
,
2015
,
Refunding
,
5
%
,
11/01/39
.............
6,525,000
6,595,837
Developmental
Services
Support
Foundation
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
........................................................
1,895,000
1,946,605
Eisenhower
Medical
Center
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
7/01/37
.........
2,625,000
2,694,422
Eisenhower
Medical
Center
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
7/01/47
.........
5,000,000
5,037,909
HumanGood
California
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
10/01/44
5,500,000
5,578,150
HumanGood
California
Obligated
Group
,
Revenue
,
2021
,
3
%
,
10/01/49
.........
5,000,000
3,909,248
Ignatian
Corp.
(The)
,
Revenue
,
2024
A
,
5
%
,
9/01/49
.......................
3,150,000
3,466,654
Ignatian
Corp.
(The)
,
Revenue
,
2024
A
,
5
%
,
9/01/54
.......................
3,250,000
3,542,697
c
IH
Parkside
Fairfield
LLC
,
Revenue
,
144A,
2023
B
,
Zero
Cpn.,
9/01/43
..........
20,710,000
14,865,365
Inland
Counties
Regional
Center,
Inc.
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/15/37
...
8,965,000
9,040,810
a
Integrity
Housing
Obligated
Group
,
Revenue
,
10
%
,
12/01/62
.................
7,000,000
3,923,500
Integrity
Housing
Obligated
Group
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
........
16,700,000
14,796,679
c
King/Chavez
Facilities
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
5/01/36
.....
1,815,000
1,833,603
c
King/Chavez
Facilities
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
5/01/46
.....
2,775,000
2,791,503
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/31/43
13,915,000
14,177,216
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
4
%
,
12/31/47
6,085,000
5,608,317
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/31/47
22,250,000
22,543,475
Literacy
First
Charter
School
Issuer
LLC
,
Revenue
,
2019
A
,
5
%
,
12/01/49
.......
4,165,000
4,233,270
Northbay
Healthcare
Group
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/01/35
......
1,100,000
1,100,030
Northbay
Healthcare
Group
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/01/44
......
1,050,000
1,010,406
Northbay
Healthcare
Group
Obligated
Group
,
Revenue
,
2017
A
,
5.25
%
,
11/01/47
..
3,000,000
3,001,111
c
P3
Claremont
Holdings
LLC
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/30
.............
520,000
531,431
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2016
A
,
5
%
,
7/01/31
..
1,000,000
1,013,876
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2016
A
,
5
%
,
7/01/36
..
2,750,000
2,776,101
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2016
A
,
5
%
,
7/01/41
..
$
1,750,000
$
1,756,242
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
3.875
%
,
7/01/28
740,000
734,900
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
5
%
,
7/01/38
..
1,100,000
1,115,983
c
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
5
%
,
7/01/49
..
3,600,000
3,608,446
c
Santa
Rosa
Academy
LLC
,
Revenue
,
144A,
2015
,
5.125
%
,
7/01/35
............
450,000
453,910
c
Santa
Rosa
Academy
LLC
,
Revenue
,
144A,
2015
,
5.375
%
,
7/01/45
............
1,400,000
1,407,826
c
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5
%
,
5/01/34
...
300,000
313,477
c
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.5
%
,
5/01/44
..
510,000
529,524
c
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.75
%
,
5/01/54
.
510,000
531,113
c
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.875
%
,
5/01/59
700,000
731,866
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
2024
B
,
4.65
%
,
5/01/30
.....
1,045,000
1,067,892
c
STREAM
Charter
School
,
Revenue
,
144A,
2020
A
,
5
%
,
6/15/41
...............
925,000
906,409
c
STREAM
Charter
School
,
Revenue
,
144A,
2020
A
,
5
%
,
6/15/51
...............
2,770,000
2,602,652
c
STREAM
Charter
School
,
Revenue
,
144A,
2020
B
,
6.4
%
,
6/15/32
.............
705,000
693,099
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5
%
,
6/15/34
...........
500,000
532,121
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5.5
%
,
6/15/39
..........
655,000
703,026
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5.9
%
,
6/15/44
..........
1,255,000
1,352,972
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.2
%
,
6/15/54
..........
2,900,000
3,127,148
c
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.375
%
,
6/15/64
........
3,000,000
3,250,370
c
California
Pollution
Control
Financing
Authority
,
e
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
7
%
,
7/01/22
........................
3,500,000
47,250
e
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
7.5
%
,
7/01/32
.......................
13,000,000
175,500
e
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
8
%
,
7/01/39
........................
11,500,000
155,250
e
CalPlant
I
LLC
,
Revenue
,
144A,
2020
,
7.5
%
,
7/01/32
.......................
4,500,000
60,750
Poseidon
Resources
Channelside
LP
,
Revenue
,
144A,
2012
,
5
%
,
11/21/45
......
21,685,000
21,722,970
a,e
Rialto
Bioenergy
Facility
LLC
,
Revenue
,
144A,
2018
,
6.75
%
,
12/01/28
..........
910,035
173,064
a,e
Rialto
Bioenergy
Facility
LLC
,
Revenue
,
144A,
2018
,
7.5
%
,
12/01/40
...........
4,237,715
805,897
California
Public
Finance
Authority
,
c
Crossroads
Christian
Schools
Obligated
Group
,
Revenue
,
144A,
2020
,
5
%
,
1/01/56
4,015,000
3,584,978
Henry
Mayo
Newhall
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/15/37
.......................................................
1,100,000
1,119,039
c
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/36
.......................................................
1,000,000
1,009,558
c
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/56
.......................................................
2,000,000
1,827,283
c
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
B-1
,
Refunding
,
3.125
%
,
5/15/29
........................................................
2,510,000
2,456,659
c
California
School
Finance
Authority
,
Revenue
,
144A,
2017
,
5
%
,
6/01/47
....................................
700,000
695,244
Alliance
for
College
Ready
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2016
C
,
5
%
,
7/01/46
....................................................
10,000,000
10,091,361
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/41
.......
500,000
417,125
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/51
.......
2,835,000
2,177,350
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/61
.......
3,675,000
2,678,060
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
,
Refunding
,
5
%
,
8/01/35
........................................................
1,000,000
1,010,594
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
,
Refunding
,
5
%
,
8/01/40
........................................................
1,000,000
1,006,912
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2016
,
5
%
,
8/01/41
......
2,010,000
2,021,799
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2016
,
Pre-Refunded
,
5
%
,
8/01/41
........................................................
190,000
194,051
Citizens
of
the
World
Los
Angeles
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.25
%
,
4/01/52
........................................................
2,000,000
2,052,776
Citizens
of
the
World
Los
Angeles
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.375
%
,
4/01/62
.................................................
2,000,000
2,055,936
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
c
California
School
Finance
Authority,
(continued)
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
10/01/37
.......................................................
$
1,485,000
$
1,524,428
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
10/01/44
.......................................................
5,610,000
5,685,355
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2020
A
,
5
%
,
10/01/40
.....
500,000
513,051
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2020
A
,
5
%
,
10/01/50
.....
3,570,000
3,617,994
Ednovate
Obligated
Group
,
Revenue
,
144A,
2018
,
5
%
,
6/01/48
...............
1,000,000
959,661
Ednovate
Obligated
Group
,
Revenue
,
144A,
2018
,
5
%
,
6/01/56
...............
1,710,000
1,613,948
Envision
Education
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/54
......
900,000
908,575
Fenton
Charter
Public
Schools
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/40
...........
225,000
227,228
Fenton
Charter
Public
Schools
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/50
...........
1,275,000
1,279,577
Granada
Hills
Charter
High
School
Obligated
Group
,
Revenue
,
144A,
2019
,
5
%
,
7/01/43
........................................................
2,000,000
2,025,049
Granada
Hills
Charter
High
School
Obligated
Group
,
Revenue
,
144A,
2019
,
5
%
,
7/01/49
........................................................
5,750,000
5,812,354
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
8/01/35
.
2,525,000
2,550,392
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
8/01/45
.
3,500,000
3,515,293
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5
%
,
8/01/38
.
1,000,000
1,033,461
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5
%
,
8/01/48
.
1,750,000
1,780,048
Harbor
Springs
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5.5
%
,
7/01/54
........
2,235,000
2,334,262
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/31
.....................
250,000
242,218
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/41
.....................
435,000
432,528
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/51
.....................
600,000
578,525
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/61
.....................
1,320,000
1,245,946
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
4.5
%
,
7/01/32
.
605,000
612,536
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5
%
,
7/01/42
...
2,140,000
2,152,247
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5
%
,
7/01/52
...
3,175,000
3,104,762
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5.125
%
,
7/01/62
8,125,000
7,958,179
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
7/01/35
1,200,000
1,211,094
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
7/01/45
1,675,000
1,681,889
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
7/01/39
1,000,000
1,046,344
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
7/01/49
2,150,000
2,201,418
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
7/01/54
1,150,000
1,172,479
Larchmont
Schools
,
Revenue
,
144A,
2018
A
,
5
%
,
6/01/55
...................
3,050,000
2,991,529
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
3
%
,
7/01/30
.....
365,000
347,460
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/45
.....
1,200,000
1,213,657
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/55
.....
1,235,000
1,242,603
Lighthouse
Community
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.375
%
,
6/01/52
.................................................
1,250,000
1,306,658
Lighthouse
Community
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.5
%
,
6/01/62
...................................................
1,500,000
1,569,368
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/31
.......
1,000,000
1,004,746
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/36
.......
1,670,000
1,632,145
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/51
.......
16,730,000
14,635,668
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/55
.......
1,400,000
1,201,666
New
Designs
Charter
School
,
Revenue
,
144A,
2024
A
,
Refunding
,
5
%
,
6/01/54
...
650,000
654,017
New
Designs
Charter
School
,
Revenue
,
144A,
2024
A
,
Refunding
,
5
%
,
6/01/64
...
1,600,000
1,600,784
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5
%
,
6/01/33
........................................................
650,000
669,232
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.625
%
,
6/01/43
.................................................
560,000
575,695
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.875
%
,
6/01/53
.................................................
600,000
616,988
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5
%
,
8/01/33
............................................
720,000
760,400
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
c
California
School
Finance
Authority,
(continued)
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.25
%
,
8/01/38
.........................................
$
500,000
$
529,141
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.5
%
,
8/01/43
..........................................
550,000
586,244
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.5
%
,
8/01/47
..........................................
525,000
554,485
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/30
........
1,250,000
1,289,455
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/37
........
2,000,000
2,033,055
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/47
........
1,975,000
1,983,125
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/52
........
1,340,000
1,342,356
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2023
A
,
5.75
%
,
7/01/42
......
980,000
1,038,262
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5
%
,
6/01/34
....
750,000
759,439
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5.125
%
,
6/01/47
.
845,000
845,420
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5.25
%
,
6/01/52
..
2,440,000
2,443,012
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
G
,
5
%
,
6/01/30
....
315,000
322,268
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
G
,
5
%
,
6/01/37
....
360,000
363,161
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/31
........................................................
260,000
246,539
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/41
........................................................
600,000
502,289
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/51
........................................................
800,000
598,455
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/61
........................................................
1,300,000
923,264
Summit
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2017
,
Pre-Refunded
,
5
%
,
6/01/47
........................................................
800,000
843,181
California
State
Public
Works
Board
,
State
of
California
,
Revenue
,
2024
A
,
5
%
,
4/01/49
13,000,000
14,448,863
California
Statewide
Communities
Development
Authority
,
Revenue
,
2015
R-1
,
Refunding
,
5
%
,
9/02/40
.............................
2,230,000
2,250,838
Special
Assessment
,
2016
A
,
5
%
,
9/02/36
...............................
1,035,000
1,062,329
Special
Assessment
,
2017
A
,
4
%
,
9/02/27
...............................
1,055,000
1,064,767
Special
Assessment
,
2017
A
,
5
%
,
9/02/37
...............................
1,970,000
2,044,496
Special
Assessment
,
2017
A
,
5
%
,
9/02/46
...............................
2,455,000
2,509,055
Special
Assessment
,
2017
B
,
5
%
,
9/02/37
...............................
3,260,000
3,389,855
Special
Assessment
,
2017
B
,
5
%
,
9/02/47
...............................
2,520,000
2,586,359
Special
Assessment
,
2017
C
,
5
%
,
9/02/37
...............................
4,195,000
4,353,635
Special
Assessment
,
2018
A
,
5
%
,
9/02/38
...............................
2,150,000
2,249,579
Special
Assessment
,
2018
A
,
5
%
,
9/02/47
...............................
3,745,000
3,858,637
Special
Assessment
,
2018
B
,
5
%
,
9/02/38
...............................
2,760,000
2,864,982
Special
Assessment
,
2018
B
,
5
%
,
9/02/43
...............................
4,690,000
4,815,125
Special
Assessment
,
2018
B
,
5
%
,
9/02/48
...............................
4,605,000
4,697,653
Special
Assessment
,
2018
C
,
5
%
,
9/02/38
...............................
5,520,000
5,773,577
Special
Assessment
,
2018
C
,
5
%
,
9/02/48
...............................
6,605,000
6,786,564
Special
Assessment
,
2019
A
,
5
%
,
9/02/39
...............................
1,600,000
1,684,755
Special
Assessment
,
2019
A
,
5
%
,
9/02/44
...............................
940,000
979,331
Special
Assessment
,
2019
B
,
5
%
,
9/02/44
...............................
1,150,000
1,200,761
Special
Assessment
,
2019
C
,
5
%
,
9/02/39
...............................
850,000
887,947
Special
Assessment
,
2020
A
,
5
%
,
9/02/40
...............................
1,250,000
1,315,765
Special
Assessment
,
2020
A
,
4
%
,
9/02/50
...............................
900,000
801,024
Special
Assessment
,
2020
A
,
5
%
,
9/02/50
...............................
1,000,000
1,032,210
Special
Assessment
,
2020
B
,
4
%
,
9/02/40
...............................
565,000
552,290
Special
Assessment
,
2020
B
,
4
%
,
9/02/50
...............................
695,000
623,142
Special
Assessment
,
2021
A
,
4
%
,
9/02/41
...............................
995,000
963,751
Special
Assessment
,
2021
A
,
4
%
,
9/02/51
...............................
3,175,000
2,858,045
Special
Assessment
,
2021
B
,
4
%
,
9/02/41
...............................
3,280,000
3,176,990
Special
Assessment
,
2021
B
,
4
%
,
9/02/51
...............................
3,145,000
2,858,027
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Special
Assessment
,
2021
C-1
,
4
%
,
9/02/41
..............................
$
2,435,000
$
2,255,431
Special
Assessment
,
2021
C-1
,
4
%
,
9/02/51
..............................
3,610,000
3,139,459
Special
Assessment
,
2021
C-2
,
5
%
,
9/02/41
..............................
3,265,000
2,775,631
Special
Assessment
,
2021
C-2
,
5.5
%
,
9/02/51
............................
3,575,000
2,790,993
Special
Assessment
,
2022
B
,
5
%
,
9/02/42
...............................
3,000,000
3,159,124
Special
Assessment
,
2022
B
,
5
%
,
9/02/52
...............................
3,000,000
3,088,861
Special
Assessment
,
2022
C
,
5.375
%
,
9/02/52
............................
1,990,000
2,098,498
Special
Assessment
,
2023
D
,
5.5
%
,
9/02/53
..............................
1,000,000
1,045,186
Special
Tax
,
2023
C-1
,
5.25
%
,
9/02/53
..................................
3,000,000
3,048,673
Aldersly
Obligated
Group
,
Revenue
,
2015
A
,
Pre-Refunded
,
5
%
,
5/15/32
........
750,000
761,657
Assessment
District
No.
14-01
,
Special
Assessment
,
2015
,
5
%
,
9/02/35
.........
2,000,000
2,027,441
Assessment
District
No.
14-01
,
Special
Assessment
,
2015
,
5
%
,
9/02/45
.........
3,810,000
3,837,959
c
California
Baptist
University
,
Revenue
,
144A,
2014
A
,
6.125
%
,
11/01/33
.........
1,565,000
1,568,051
c
California
Baptist
University
,
Revenue
,
144A,
2014
A
,
6.375
%
,
11/01/43
.........
4,035,000
4,040,659
c
California
Baptist
University
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
11/01/32
...
1,135,000
1,170,354
c
California
Baptist
University
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
11/01/41
...
1,875,000
1,890,679
Cedars-Sinai
Medical
Center
Obligated
Group
,
Revenue
,
2018
,
4
%
,
7/01/48
.....
6,000,000
5,880,182
CHF-Irvine
LLC
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/40
....................
1,500,000
1,523,478
CHF-Irvine
LLC
,
Revenue
,
2017
,
5
%
,
5/15/42
............................
710,000
725,006
Community
Facilities
District
2022-7
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,500,000
1,549,696
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2016
A
,
5
%
,
9/01/46
......
10,750,000
10,896,375
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
1,230,000
1,287,149
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/49
.......
3,000,000
3,087,678
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2020
,
4
%
,
9/01/40
.......
3,345,000
3,277,401
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2020
,
4
%
,
9/01/50
.......
2,845,000
2,643,392
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2022
,
5.5
%
,
9/01/52
......
7,500,000
7,812,856
Community
Facilities
District
No.
2018-01
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
1,685,000
1,755,138
Community
Facilities
District
No.
2018-01
,
Special
Tax
,
2019
,
5
%
,
9/01/48
.......
2,000,000
2,055,680
Community
Facilities
District
No.
2022-12
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/44
................................................
2,275,000
2,403,829
Community
Facilities
District
No.
2022-12
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
................................................
1,350,000
1,403,216
i
Community
Facilities
District
No.
2024-9
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........
400,000
414,096
i
Community
Facilities
District
No.
2024-9
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........
700,000
714,154
Community
Infrastructure
Program
Assessment
District
No.
20-02
,
Special
Assessment
,
2023
,
5.75
%
,
9/02/53
...................................
1,900,000
2,017,278
Eskaton
Properties,
Inc.
Obligated
Group
,
Revenue
,
2012
,
5.25
%
,
11/15/34
......
4,150,000
4,151,458
John
Muir
Health
Obligated
Group
,
Revenue
,
2024
A
,
Refunding
,
5
%
,
12/01/49
...
8,250,000
9,049,805
c
Lancer
Educational
Housing
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
6/01/46
12,735,000
12,797,353
c
Lancer
Educational
Housing
LLC
,
Revenue
,
144A,
2019
A
,
5
%
,
6/01/34
.........
375,000
391,861
c
Lancer
Educational
Housing
LLC
,
Revenue
,
144A,
2019
A
,
5
%
,
6/01/39
.........
950,000
972,878
c
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5
%
,
12/01/41
...................................................
1,245,000
1,262,101
c
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5.25
%
,
12/01/56
.................................................
45,755,000
46,280,620
c
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5.5
%
,
12/01/58
..................................................
6,250,000
6,457,688
Marin
General
Hospital
Obligated
Group
,
Revenue
,
2018
A
,
4
%
,
8/01/45
........
1,500,000
1,362,871
c
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/39
.............
4,325,000
4,448,954
c
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/49
.............
8,000,000
8,132,266
c
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/52
.............
2,635,000
2,675,168
USC
Obligated
Group
,
Revenue
,
2018
,
Refunding
,
5
%
,
1/01/43
...............
5,000,000
5,238,734
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Chino
Community
Facilities
District
,
City
of
Chino
Community
Facilities
District
No.
2003-3
Improvement
Area
No.
6
,
Special
Tax
,
2015
,
5
%
,
9/01/45
..............
$
1,665,000
$
1,678,797
c
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
2
,
Special
Tax
,
144A,
2023
A
,
5.5
%
,
9/01/53
.............................................
2,045,000
2,195,893
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2
,
Special
Tax
,
144A,
2022
A
,
4
%
,
9/01/52
..............................................
5,270,000
4,711,026
Infrastructure
&
Revitalization
Financing
District
No.
1
Facilities
Increment
,
Tax
Allocation
,
144A,
2022
A
,
5
%
,
9/01/37
.................................
385,000
415,329
Infrastructure
&
Revitalization
Financing
District
No.
1
Facilities
Increment
,
Tax
Allocation
,
144A,
2022
A
,
5
%
,
9/01/52
.................................
2,000,000
2,013,893
Infrastructure
&
Revitalization
Financing
District
No.
1
Housing
Increment
,
Tax
Allocation
,
144A,
2022
B
,
5
%
,
9/01/52
.................................
1,000,000
996,424
City
of
Dixon
,
Community
Facilities
District
No.
2013-1
Parklane
,
Special
Tax
,
2019
,
5
%
,
9/01/49
......................................................
2,400,000
2,469,057
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/39
....................................................
2,765,000
2,903,707
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/44
....................................................
2,925,000
3,050,008
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/49
....................................................
4,100,000
4,240,283
City
of
Fillmore
,
Community
Facilities
District
No.
5
,
Special
Tax
,
2015
,
5
%
,
9/01/40
............
1,500,000
1,513,685
Community
Facilities
District
No.
5
,
Special
Tax
,
2015
,
5
%
,
9/01/45
............
2,630,000
2,646,950
City
of
Fremont
,
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/40
....
4,655,000
4,697,468
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/45
....
3,255,000
3,278,500
City
of
Fullerton
,
Community
Facilities
District
No.
2
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/34
....
1,075,000
1,078,498
Community
Facilities
District
No.
2
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/44
....
2,450,000
2,457,972
City
of
Irvine
,
Community
Facilities
District
No.
2013-3
Area
No.
1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/39
....................................................
1,000,000
1,000,000
Community
Facilities
District
No.
2013-3
Area
No.
1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/44
....................................................
1,500,000
1,500,000
Community
Facilities
District
No.
2013-3
Area
No.
1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/49
....................................................
2,750,000
2,750,000
Community
Facilities
District
No.
2013-3
Improvement
Area
No.
8
,
Special
Tax
,
2018
,
5
%
,
9/01/43
....................................................
5,000,000
5,179,731
City
of
La
Verne
,
Copacabana
Mobilehome
Park
,
Revenue
,
2014
,
Refunding
,
5
%
,
6/15/49
.........................................................
1,765,000
1,765,984
City
of
Long
Beach
,
Marina
System
,
Revenue
,
2015
,
5
%
,
5/15/34
.............................
1,300,000
1,308,143
Marina
System
,
Revenue
,
2015
,
5
%
,
5/15/40
.............................
3,500,000
3,511,827
Marina
System
,
Revenue
,
2015
,
5
%
,
5/15/45
.............................
2,500,000
2,504,410
City
of
Los
Angeles
,
Department
of
Airports
,
Revenue
,
2019
D
,
4
%
,
5/15/44
.......
5,525,000
5,330,017
City
of
Manteca
,
Community
Facilities
District
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........................................................
1,000,000
1,058,361
Community
Facilities
District
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,580,000
1,641,340
City
of
Ontario
,
Community
Facilities
District
No.
28
,
Special
Tax
,
2017
,
5
%
,
9/01/42
...........
1,000,000
1,026,198
Community
Facilities
District
No.
28
,
Special
Tax
,
2017
,
5
%
,
9/01/47
...........
500,000
510,326
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Oroville
,
Oroville
Hospital
,
Revenue
,
2019
,
5.25
%
,
4/01/49
.........................
$
4,500,000
$
3,380,473
Oroville
Hospital
,
Revenue
,
2019
,
5.25
%
,
4/01/54
.........................
3,000,000
2,228,578
City
of
Palm
Desert
,
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
Refunding
,
4
%
,
9/01/41
450,000
422,879
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2024
,
5
%
,
9/01/49
........
600,000
625,474
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2024
,
5
%
,
9/01/53
........
525,000
544,491
City
of
Rancho
Cordova
,
Community
Facilities
District
No.
2014-1
,
Special
Tax
,
2022
,
5
%
,
9/01/51
........
1,200,000
1,239,063
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1
,
Special
Tax
,
2022
,
5.25
%
,
9/01/52
..........................................
2,000,000
2,078,826
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1
,
Special
Tax
,
2015
,
5
%
,
9/01/40
....................................................
1,200,000
1,211,764
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1
,
Special
Tax
,
2015
,
5
%
,
9/01/45
....................................................
1,250,000
1,260,237
City
of
Roseville
,
i
Amoruso
Ranch
Community
Facilities
District
1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/49
............................................
1,125,000
1,170,522
i
Amoruso
Ranch
Community
Facilities
District
1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
............................................
1,500,000
1,558,204
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
1
,
Special
Tax
,
2020
,
5
%
,
9/01/45
................................................
1,280,000
1,329,606
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5
%
,
9/01/43
................................................
500,000
525,991
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5.25
%
,
9/01/53
.............................................
1,850,000
1,943,106
c
Fiddyment
Ranch
Community
Facilities
District
No.
5
,
Special
Tax
,
144A,
2017
,
Refunding
,
5
%
,
9/01/32
............................................
1,265,000
1,310,645
c
Fiddyment
Ranch
Community
Facilities
District
No.
5
,
Special
Tax
,
144A,
2017
,
Refunding
,
5
%
,
9/01/47
............................................
6,500,000
6,605,008
HP
Campus
Oaks
Community
Facilities
District
No.
1
,
Special
Tax
,
2016
,
5
%
,
9/01/36
........................................................
1,950,000
1,990,120
HP
Campus
Oaks
Community
Facilities
District
No.
1
,
Special
Tax
,
2016
,
5.5
%
,
9/01/46
........................................................
6,415,000
6,542,145
SVSP
Westpark-Federico
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/39
........................................................
440,000
456,205
SVSP
Westpark-Federico
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/44
........................................................
1,000,000
1,027,258
SVSP
Westpark-Federico
Community
Facilities
District
No.
1
,
Special
Tax
,
2021
,
4
%
,
9/01/41
........................................................
400,000
390,751
Torrente
at
Sierra
Vista
Community
Facilities
District
No.
1
,
Special
Tax
,
2023
,
6
%
,
9/01/53
........................................................
1,500,000
1,608,307
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
........................................................
3,870,000
3,965,646
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/29
....
500,000
500,598
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/34
....
1,100,000
1,101,017
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/39
....
1,885,000
1,886,066
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/44
....
1,650,000
1,650,705
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/40
....
1,670,000
1,751,819
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
....
2,130,000
2,203,848
Westpark
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/32
........................................................
1,120,000
1,135,778
Westpark
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/33
........................................................
1,000,000
1,013,572
Westpark
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/37
........................................................
1,250,000
1,264,793
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
c
City
of
Sacramento
,
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/32
...........................................
$
300,000
$
309,309
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/37
...........................................
710,000
731,903
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/47
...........................................
1,900,000
1,938,170
City
of
San
Clemente
,
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2015
,
5
%
,
9/01/40
........
1,745,000
1,764,657
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2015
,
5
%
,
9/01/46
........
2,445,000
2,467,166
City
of
San
Diego
,
Tobacco
Settlement
Revenue
Funding
Corp.
,
Revenue
,
2018
C
,
Refunding
,
4
%
,
6/01/32
.............................................
365,000
366,495
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
11,500,000
10,195,232
City
of
Simi
Valley
,
Assessment
District
No.
98-1
,
1915
Act,
Special
Assessment
,
1999
,
7.3
%
,
9/02/24
....................................................
230,000
230,000
City
of
Stockton
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.125
%
,
9/01/52
....................................
3,660,000
3,818,679
City
of
Vernon
,
Electric
System
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/01/36
........
1,525,000
1,637,549
Clovis
Unified
School
District
,
GO
,
2004
A
,
NATL
Insured
,
ETM,
Zero
Cpn.,
8/01/27
.......................
1,205,000
1,114,454
GO
,
2004
A
,
NATL
Insured
,
Zero
Cpn.,
8/01/27
...........................
6,295,000
5,821,978
GO
,
2004
A
,
NATL
Insured
,
Zero
Cpn.,
8/01/28
...........................
3,000,000
2,699,466
c
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
13,870,000
11,778,536
c
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Junior
Lien
,
144A,
2022
A-2
,
4.5
%
,
8/01/51
.........................................................
39,885,000
31,943,338
c
CMFA
Special
Finance
Agency
I
,
Mix
at
CTR
City
(The)
,
Revenue
,
144A,
2021
A-T
,
5
%
,
4/01/41
.........................................................
7,545,000
7,012,263
c
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
22,280,000
18,847,909
Coachella
Valley
Unified
School
District
,
GO
,
2012
D
,
AGMC
Insured
,
Zero
Cpn.,
8/01/42
..........................
8,500,000
4,093,551
GO
,
2012
D
,
AGMC
Insured
,
Zero
Cpn.,
8/01/43
..........................
3,000,000
1,371,771
County
of
Imperial
,
Community
Facilities
District
No.
1998-1
,
Special
Tax
,
1999
,
LOC
BNP
Paribas
SA
,
6.5
%
,
9/01/31
.......................................
3,910,000
3,958,204
County
of
Madera
,
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1
,
Special
Tax
,
2022
,
5.875
%
,
9/01/53
.................................................
1,100,000
1,120,438
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.75
%
,
9/01/53
..................................................
3,080,000
3,138,502
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.875
%
,
9/01/53
.................................................
1,100,000
1,120,439
County
of
San
Bernardino
,
Community
Facilities
District
No.
2006-1
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/40
....................................................
1,000,000
1,009,123
Community
Facilities
District
No.
2006-1
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/45
....................................................
1,000,000
1,007,317
c
CSCDA
Community
Improvement
Authority
,
Crescent
(The)
,
Revenue
,
144A,
2022
B
,
5.5
%
,
7/01/59
.....................
16,000,000
14,386,586
Park
Crossing
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/48
.............
10,000,000
7,682,550
Theo
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
5/01/57
.....................
10,000,000
7,352,391
Wood
Creek
Apartments
,
Revenue,
Sub.
Lien
,
144A,
2021
B
,
4
%
,
12/01/59
......
31,800,000
21,328,797
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue
,
2007
B
,
Refunding
,
5.85
%
,
12/15/47
........................................
$
4,295,000
$
4,299,805
Del
Mar
Race
Track
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
..........
2,000,000
2,002,288
Duarte
Redevelopment
Agency
,
Tax
Allocation
,
1999
,
ETM,
Zero
Cpn.,
12/01/28
....
8,070,000
6,483,567
El
Rancho
Unified
School
District
,
GO
,
2004
,
NATL
Insured
,
Zero
Cpn.,
8/01/29
....
2,400,000
2,076,909
c
Elsinore
Valley
Municipal
Water
District
,
Community
Facilities
District
No.
2020-1
Area
No.
2A
,
Special
Tax
,
144A,
2021
A
,
4
%
,
9/01/51
....................................................
1,245,000
1,087,802
Community
Facilities
District
No.
2020-1
Area
No.
3A
,
Special
Tax
,
144A,
2021
A
,
4.5
%
,
9/01/51
...................................................
2,500,000
2,270,115
c
Fairfield
Community
Facilities
District
,
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1
,
Special
Tax
,
144A,
2020
A
,
5
%
,
9/01/35
...............................
1,000,000
1,067,849
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1
,
Special
Tax
,
144A,
2020
A
,
5
%
,
9/01/50
...............................
5,255,000
5,410,230
j
,k
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
FRN
,
2019-ML06
,
XCA
,
1.105
%
,
7/25/35
................................
131,546,415
8,140,092
c
144A,
FRN
,
2020-ML07
,
XCA
,
2.132
%
,
1/25/37
...........................
118,737,795
15,916,802
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19
,
Special
Tax
,
2017
,
5
%
,
9/01/47
1,000,000
1,021,217
City
of
Folsom
Community
Facilities
District
No.
20
,
Special
Tax
,
2018
,
5
%
,
9/01/33
530,000
553,661
City
of
Folsom
Community
Facilities
District
No.
20
,
Special
Tax
,
2018
,
5
%
,
9/01/48
1,675,000
1,724,733
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue
,
2013
A
,
Refunding
,
Zero
Cpn.,
1/15/42
..........................
75,000,000
35,813,205
Revenue
,
2013
B-1
,
Refunding
,
3.95
%
,
1/15/53
...........................
23,000,000
21,424,229
Revenue
,
2013
B-2
,
Refunding
,
3.5
%
,
1/15/53
............................
17,500,000
15,002,834
Revenue
,
2015
A
,
Refunding
,
Zero
Cpn.,
1/15/33
..........................
19,000,000
14,018,160
Galt
Community
Facilities
District
,
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
5.5
%
,
9/01/43
...................................
1,860,000
1,971,356
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
5.75
%
,
9/01/48
..................................
2,945,000
3,128,626
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
6
%
,
9/01/53
....................................
2,895,000
3,123,087
Hanford
Joint
Union
High
School
District
,
GO
,
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/32
...............................
3,635,000
2,834,261
GO
,
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/33
...............................
3,705,000
2,753,891
GO
,
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/35
...............................
4,120,000
2,835,416
Hartnell
Community
College
District
,
GO
,
2009
D
,
Zero
Cpn.,
8/01/49
............
10,000,000
3,488,879
Imperial
Community
College
District
,
GO
,
2011
A
,
Pre-Refunded
,
AGMC
Insured
,
6.75
%
,
8/01/40
...................................................
3,500,000
3,633,587
Independent
Cities
Finance
Authority
,
Augusta
Communities
III
LLC
,
Revenue
,
2021
,
Refunding
,
4
%
,
11/15/56
........
8,160,000
6,414,002
COACH
of
San
Diego
LLC
,
Revenue
,
2014
A
,
Refunding
,
5.25
%
,
5/15/44
.......
2,015,000
2,016,816
COACH
of
San
Diego
LLC
,
Revenue
,
2014
A
,
Refunding
,
5.25
%
,
5/15/49
.......
4,800,000
4,803,716
Millennium
Housing
LLC
,
Revenue
,
2021
,
Refunding
,
3
%
,
5/15/56
.............
4,000,000
3,011,493
Millennium
Housing
of
California
,
Revenue
,
2019
,
Refunding
,
5
%
,
5/15/48
.......
2,000,000
2,070,185
San
Juan
Mobile
Estates
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/45
.............
5,000,000
5,043,486
San
Juan
Mobile
Estates
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/50
.............
4,900,000
4,934,343
Indio
Community
Facilities
District
,
City
of
Indio
Community
Facilities
District
No.
2004-
3
Improvement
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
..........
1,135,000
1,149,646
Inland
Valley
Development
Agency
,
Tax
Allocation
,
2014
A
,
Refunding
,
5.25
%
,
9/01/37
.........................
7,500,000
7,528,403
Tax
Allocation
,
2014
A
,
Refunding
,
5
%
,
9/01/44
...........................
9,000,000
9,032,396
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Irvine
Facilities
Financing
Authority
,
City
of
Irvine
Community
Facilities
District
No.
2013-3
,
Special
Tax
,
2023
A
,
BAM
Insured
,
4
%
,
9/01/58
.....................
$
6,500,000
$
6,366,090
Irvine
Unified
School
District
,
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2017
B
,
5
%
,
9/01/42
........
995,000
1,024,745
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2017
C
,
5
%
,
9/01/47
........
995,000
1,018,359
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2018
A
,
Refunding
,
5
%
,
9/01/49
3,975,000
4,058,806
Jurupa
Public
Financing
Authority
,
Special
Tax
,
2014
A
,
Refunding
,
5
%
,
9/01/42
.............................
2,220,000
2,220,000
Special
Tax
,
2015
A
,
Refunding
,
5
%
,
9/01/43
.............................
4,000,000
4,059,818
Special
Tax,
Sub.
Lien
,
2015
B
,
Refunding
,
5
%
,
9/01/40
.....................
4,000,000
4,036,492
Kaweah
Delta
Health
Care
District
Guild
,
Revenue
,
2015
B
,
5
%
,
6/01/40
..........
3,250,000
3,199,505
Lake
Tahoe
Unified
School
District
,
GO
,
2012
,
Zero
Cpn.,
8/01/40
...............
1,140,000
1,175,889
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2014-1
Improvement
Area
No.
1
,
Special
Tax
,
2017
,
5
%
,
9/01/42
....................
2,750,000
2,819,706
Las
Virgenes
Unified
School
District
,
GO
,
2011
C
,
Zero
Cpn.,
8/01/33
............
8,050,000
9,192,716
Lee
Lake
Public
Financing
Authority
,
Special
Tax,
Junior
Lien
,
2013
B
,
Refunding
,
5.25
%
,
9/01/32
.................
1,140,000
1,141,438
Special
Tax,
Junior
Lien
,
2013
B
,
Refunding
,
5.375
%
,
9/01/35
................
790,000
791,045
Lemon
Grove
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2014
,
Refunding
,
AGMC
Insured
,
4
%
,
8/01/34
............................
1,000,000
1,032,441
Lemon
Grove
School
District
,
GO
,
2010
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/45
.....
6,500,000
6,545,267
Long
Beach
Bond
Finance
Authority
,
Revenue
,
2007
A
,
5
%
,
11/15/29
............
4,630,000
4,951,409
Los
Alamitos
Unified
School
District
,
COP
,
2012
,
5.95
%
,
8/01/34
..........................................
1,500,000
1,712,976
COP
,
2012
,
6.05
%
,
8/01/42
..........................................
4,500,000
5,043,269
Mendocino-Lake
Community
College
District
,
GO
,
2011
B
,
AGMC
Insured
,
6.55
%
,
8/01/36
.............................
5,150,000
6,388,326
GO
,
2011
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/40
...........................
7,500,000
8,942,069
Menifee
Union
School
District
,
Community
Facilities
District
No.
2011-1
Improvement
Area
No.
3
,
Special
Tax
,
2018
,
5
%
,
9/01/43
....................................................
1,000,000
1,034,081
Community
Facilities
District
No.
2011-1
Improvement
Area
No.
3
,
Special
Tax
,
2018
,
5
%
,
9/01/48
....................................................
1,500,000
1,543,426
Middle
Fork
Project
Finance
Authority
,
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/34
.................................
1,100,000
1,168,037
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/35
.................................
1,150,000
1,218,440
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2015-3
,
Special
Tax
,
2019
,
4.125
%
,
9/01/48
..........................................
360,000
337,048
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
32,300,000
41,905,548
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/37
...............................
2,500,000
2,561,973
Revenue
,
2017
A
,
Refunding
,
BAM
Insured
,
4
%
,
3/01/42
....................
5,000,000
4,845,671
Oak
Park
Unified
School
District
,
GO
,
2011
A
,
7.1
%
,
8/01/38
...................
6,600,000
8,331,562
Orange
County
Community
Facilities
District
,
County
of
Orange
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2015
A
,
5
%
,
8/15/34
........................................................
1,495,000
1,514,295
County
of
Orange
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2015
A
,
5.25
%
,
8/15/45
..................................................
4,880,000
4,925,278
County
of
Orange
Community
Facilities
District
No.
2017-1
Area
No.
1
,
Special
Tax
,
2018
A
,
5
%
,
8/15/47
..............................................
9,550,000
9,780,505
Palomar
Health
,
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/01/39
..................
12,190,000
11,841,823
Palomar
Health
Obligated
Group
,
COP
,
4
%
,
11/01/38
.......................
5,000,000
4,523,292
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Palomar
Health,
(continued)
Palomar
Health
Obligated
Group
,
COP
,
4
%
,
11/01/47
.......................
$
6,000,000
$
4,870,954
Paso
Robles
Joint
Unified
School
District
,
GO
,
2010
A
,
Zero
Cpn.,
9/01/45
........
15,000,000
5,887,149
Perris
Community
Facilities
District
,
City
of
Perris
Community
Facilities
District
No.
2001-2
,
Special
Tax
,
2014
A
,
Refunding
,
5.25
%
,
9/01/32
....................
4,500,000
4,505,919
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2001-1
,
Special
Tax
,
2014
E
,
Refunding
,
4.25
%
,
9/01/38
........................................................
4,120,000
4,120,512
Community
Facilities
District
No.
2014-1
Improvement
Area
No.
2
,
Special
Tax
,
2018
A
,
4
%
,
9/01/48
..................................................
1,530,000
1,425,883
Rancho
Mirage
Community
Facilities
District
,
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/44
....................................................
2,200,000
2,306,490
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/49
....................................................
1,500,000
1,563,182
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/54
....................................................
1,400,000
1,454,352
Redondo
Beach
Unified
School
District
,
GO
,
2011
E
,
6.2
%
,
8/01/31
..............
2,750,000
3,280,389
Richland
School
District
,
GO
,
2009
C
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
.........
22,000,000
6,609,145
Rio
Hondo
Community
College
District
,
GO
,
2010
C
,
6.85
%
,
8/01/42
.............
13,000,000
17,051,698
Rio
Vista
Community
Facilities
District
,
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2018
,
Refunding
,
5
%
,
9/01/33
............................................
1,625,000
1,694,105
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2018
,
Refunding
,
5
%
,
9/01/48
............................................
1,190,000
1,218,298
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5
%
,
9/01/38
...
500,000
530,427
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/43
.
2,000,000
2,157,814
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/48
.
3,090,000
3,291,783
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
4,840,000
5,156,684
Community
Facilities
District
No
2003-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.75
%
,
9/01/52
..................................................
4,250,000
4,419,916
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
2.625
%
,
9/01/34
.....
860,000
748,104
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
2.625
%
,
9/01/35
.....
925,000
789,177
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
4
%
,
9/01/46
........
1,500,000
1,378,190
Community
Facilities
District
No.
2023-1
Improvement
Area
2
,
Special
Tax
,
2024
,
5
%
,
9/01/48
........................................................
1,650,000
1,689,773
Community
Facilities
District
No.
2023-1
Improvement
Area
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
2,625,000
2,673,998
Riverbank
Unified
School
District
,
GO
,
2008
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/38
...........................
6,690,000
3,871,368
GO
,
2008
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/43
...........................
8,750,000
3,870,825
Riverside
County
Community
Facilities
Districts
,
County
of
Riverside
Community
Facilities
District
No.
03-1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/30
..........
1,500,000
1,512,300
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien
,
2013
B
,
Zero
Cpn.,
6/01/43
.....................................................
7,500,000
3,374,231
Romoland
School
District
,
Community
Facilities
District
No.
2004-1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
4,690,000
4,751,894
Community
Facilities
District
No.
2004-1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/38
3,000,000
3,035,935
Community
Facilities
District
No.
2004-1
Improvement
Area
No.
3
,
Special
Tax
,
2013
,
5
%
,
9/01/36
....................................................
1,500,000
1,501,488
Rowland
Unified
School
District
,
GO
,
2009
B
,
Zero
Cpn.,
8/01/34
.......................................
5,000,000
3,470,541
GO
,
2009
B
,
Zero
Cpn.,
8/01/39
.......................................
15,000,000
8,242,516
GO
,
2009
B
,
Zero
Cpn.,
8/01/42
.......................................
10,750,000
5,390,505
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
San
Bernardino
Community
College
District
,
GO
,
2008
D
,
Pre-Refunded
,
5
%
,
8/01/48
................................
$
3,760,000
$
3,846,681
GO
,
2009
B
,
Zero
Cpn.,
8/01/44
.......................................
12,495,000
5,417,561
San
Diego
Public
Facilities
Financing
Authority
,
City
of
San
Diego
Sewer
Utility
,
Revenue
,
2024
A
,
5
%
,
5/15/54
........................................
10,000,000
11,177,952
San
Diego
Unified
School
District
,
GO
,
2010
C
,
Zero
Cpn.,
7/01/47
.......................................
26,025,000
25,505,861
GO
,
2012
E
,
Zero
Cpn.,
7/01/42
.......................................
6,940,000
5,869,209
GO
,
2012
E
,
Zero
Cpn.,
7/01/47
.......................................
13,500,000
11,365,377
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/37
...............................
5,535,000
5,854,041
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/44
...............................
10,000,000
10,327,961
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
...............................
10,000,000
10,261,352
Revenue,
Second
Series
,
2019
E
,
5
%
,
5/01/50
............................
34,520,000
35,391,948
Revenue,
Second
Series
,
2024
A
,
Refunding
,
5.25
%
,
5/01/49
.................
12,500,000
13,529,982
Revenue,
Second
Series
,
2024
B
,
Refunding
,
5
%
,
5/01/49
...................
5,250,000
5,834,752
San
Francisco
City
&
County
Public
Utilities
Commission
,
Wastewater
,
Revenue
,
2024
C
,
5
%
,
10/01/54
...................................................
50,000,000
55,367,190
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
c
Tax
Allocation
,
144A,
2016
D
,
Zero
Cpn.,
8/01/26
..........................
2,000,000
1,829,949
c
Tax
Allocation
,
144A,
2016
D
,
Zero
Cpn.,
8/01/31
..........................
6,000,000
4,304,416
c
Tax
Allocation
,
144A,
2016
D
,
Zero
Cpn.,
8/01/43
..........................
16,500,000
6,489,749
Mission
Bay
South
Redevelopment
Area
Tax
Increment
Financing
District
,
Tax
Allocation
,
2014
A
,
5
%
,
8/01/43
......................................
2,500,000
2,501,416
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue
,
1997
A
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
1/15/26
...............
19,475,000
18,681,127
Revenue
,
1997
A
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
1/15/32
...............
50,225,000
38,770,913
Revenue,
Junior
Lien
,
ETM,
Zero
Cpn.,
1/01/28
...........................
19,150,000
17,602,408
Revenue,
Junior
Lien
,
2014
B
,
Refunding
,
5.25
%
,
1/15/44
...................
6,925,000
6,958,966
Revenue,
Junior
Lien
,
2014
B
,
Refunding
,
5.25
%
,
1/15/49
...................
88,070,000
88,506,343
Santa
Barbara
Unified
School
District
,
GO
,
2011
A
,
7
%
,
8/01/36
................
8,000,000
10,715,070
Siskiyou
Union
High
School
District
,
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
15,015,000
4,570,366
St.
Helena
Unified
School
District
,
GO
,
2011
B
,
Zero
Cpn.,
6/01/36
..............
10,000,000
12,564,225
State
of
California
,
GO
,
5
%
,
9/01/53
.....................................
8,000,000
8,844,046
Sulphur
Springs
Union
School
District
,
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2018
,
5
%
,
9/01/43
.......................................
2,820,000
2,887,884
Susanville
School
District
,
GO
,
2010
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
.........
17,505,000
5,349,558
Tejon
Ranch
Public
Facilities
Finance
Authority
,
Tejon
Industrial
Complex
Public
Improvements
–
East
Community
Facilities
District
No.
2008-1
,
Special
Tax
,
2024
A
,
Refunding
,
5
%
,
9/01/54
.............................................
2,250,000
2,350,244
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2006
C
,
Zero
Cpn.,
6/01/46
........................................................
25,000,000
5,137,085
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2019
B-1
,
2
,
Refunding
,
5
%
,
6/01/48
............................................
6,480,000
6,571,973
Torrance
Unified
School
District
,
GO
,
2009
B-1
,
Zero
Cpn.,
8/01/34
..............
5,320,000
3,292,650
Tracy
Community
Facilities
District
,
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2018
,
5
%
,
9/01/43
......................................
5,500,000
5,638,513
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2018
,
5
%
,
9/01/48
......................................
6,490,000
6,608,601
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
......................................
1,960,000
1,993,833
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation
,
2020
B
,
5
%
,
10/01/38
..................
$
550,000
$
570,346
Truckee-Donner
Public
Utility
District
,
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2004
,
5.75
%
,
9/01/29
........
2,635,000
2,637,895
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2004
,
5.8
%
,
9/01/35
........
4,470,000
4,471,680
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2005
,
5.2
%
,
9/01/25
........
1,360,000
1,355,191
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2005
,
5.25
%
,
9/01/30
........
4,990,000
4,922,008
Tustin
Community
Facilities
District
,
City
of
Tustin
Community
Facilities
District
No.
2014-1
,
Special
Tax
,
2015
A
,
5
%
,
9/01/40
........................................................
750,000
757,426
City
of
Tustin
Community
Facilities
District
No.
2014-1
,
Special
Tax
,
2015
A
,
5
%
,
9/01/45
........................................................
1,000,000
1,007,898
University
of
California
,
Revenue
,
2024
BW
,
Refunding
,
5
%
,
5/15/54
.............
13,795,000
15,229,276
Val
Verde
Unified
School
District
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/29
...............................
3,200,000
3,229,895
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/37
...............................
2,000,000
2,012,458
Vallejo
Redevelopment
Agency
,
Tax
Allocation
,
2001
A
,
7
%
,
10/01/31
............
1,955,000
1,960,237
Victor
Valley
Community
College
District
,
GO
,
2008
C
,
Zero
Cpn.,
6/01/49
.........
11,940,000
3,870,091
Washington
Township
Health
Care
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
7/01/35
...............................
2,000,000
1,885,738
Revenue
,
2017
B
,
Refunding
,
4
%
,
7/01/36
...............................
1,900,000
1,779,614
Westside
Union
School
District
,
Community
Facilities
District
No.
2018-1
Area
1
,
Special
Tax
,
2021
,
4
%
,
9/01/46
.......................................
360,000
333,944
2,398,485,269
Florida
0.7%
c
Capital
Trust
Authority
,
Gulf
Coast
Portfolio
Obligated
Group
,
Revenue
,
144A,
2024
,
Refunding
,
Zero
Cpn.,
3/01/29
........................................
8,300,000
6,586,522
c
,h
Florida
Development
Finance
Corp.
,
AAF
Operations
Holdings
LLC
,
Revenue
,
144A,
2024
,
Refunding
,
Mandatory
Put
,
12
%
,
7/15/28
...................................................
4,000,000
4,270,020
Brightline
Florida
Holdings
LLC
,
Revenue
,
144A,
2024
A
,
Mandatory
Put
,
8.25
%
,
2/14/25
........................................................
7,250,000
7,319,603
18,176,145
Minnesota
0.1%
c
City
of
Fridley
,
Roers
Fridley
Apartments
Owner
II
LLC
,
Revenue
,
144A,
2023
B-2
,
9
%
,
6/01/41
.........................................................
3,250,000
3,323,753
Texas
0.3%
c
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Junior
Lien
,
144A,
2022
B
,
6.25
%
,
12/01/54
..............................
10,100,000
9,317,347
Virgin
Islands
0.4%
Matching
Fund
Special
Purpose
Securitization
Corp.
,
United
States
Virgin
Islands
Federal
Excise
Tax
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
10/01/39
...............
9,660,000
10,073,250
Virginia
0.2%
c
Virginia
Small
Business
Financing
Authority
,
P3
VB
Holdings
LLC
,
Revenue,
Senior
Lien
,
144A,
2023
A
,
8.5
%
,
12/01/52
....................................
5,250,000
5,286,927
Wisconsin
0.4%
c
Public
Finance
Authority
,
FAH
Tree
House
LLC
,
Revenue
,
144A,
2023
B
,
6.625
%
,
2/01/46
..............
7,000,000
6,498,690
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
c
Public
Finance
Authority,
(continued)
Pine
Forest
2022
Obligated
Group
,
Revenue
,
144A,
2022
,
Zero
Cpn.,
12/01/45
...
$
6,000,000
$
4,197,659
10,696,349
U.S.
Territories
5.6%
Guam
0.7%
Guam
Government
Waterworks
Authority
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/40
..
9,885,000
10,190,465
Guam
Power
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/38
..............
4,750,000
4,921,295
Territory
of
Guam
,
Revenue
,
2021
F
,
Refunding
,
4
%
,
1/01/36
...............................
250,000
252,029
Revenue
,
2021
F
,
Refunding
,
4
%
,
1/01/42
...............................
1,125,000
1,098,546
Hotel
Occupancy
Tax
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
11/01/35
.............
3,000,000
3,175,549
19,637,884
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
2,750,000
2,678,079
Puerto
Rico
4.8%
Commonwealth
of
Puerto
Rico
,
k
GO
,
FRN
,
Zero
Cpn.,
11/01/43
........................................
3,252,604
2,061,338
GO
,
2022
A-1
,
5.375
%
,
7/01/25
.......................................
441,426
444,536
GO
,
2022
A-1
,
5.625
%
,
7/01/27
.......................................
809,842
843,549
GO
,
2022
A-1
,
5.625
%
,
7/01/29
.......................................
796,704
857,074
GO
,
2022
A-1
,
5.75
%
,
7/01/31
........................................
773,832
857,409
GO
,
2022
A-1
,
4
%
,
7/01/33
..........................................
733,796
728,373
GO
,
2022
A-1
,
4
%
,
7/01/35
..........................................
659,584
650,994
GO
,
2022
A-1
,
4
%
,
7/01/37
..........................................
566,098
553,831
GO
,
2022
A-1
,
4
%
,
7/01/41
..........................................
769,676
731,547
GO
,
2022
A-1
,
4
%
,
7/01/46
..........................................
16,300,453
15,135,530
GO
,
2022
A-1
,
Zero
Cpn.,
7/01/33
.....................................
944,324
636,453
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
15,712,189
15,319,384
HTA
CL
6
Trust
,
Revenue
,
L-2028
,
5.25
%
,
7/01/38
..........................
685,869
686,046
HTA
TRRB
Custodial
Trust
,
Revenue
,
2005
L
,
5.25
%
,
7/01/41
.....................................
2,710,951
2,653,647
Revenue
,
2007
N
,
5.25
%
,
7/01/36
.....................................
271,095
272,169
Puerto
Rico
Electric
Power
Authority
,
e
Revenue
,
1
,
10
%
,
1/01/21
...........................................
1,768,493
742,767
e
Revenue
,
2
,
10
%
,
7/01/21
...........................................
1,768,493
742,767
e
Revenue
,
2013
A
,
10
%
,
7/01/19
.......................................
1,601,766
672,742
e
Revenue
,
2013
A
,
5
%
,
7/01/29
........................................
10,000,000
4,225,000
e
Revenue
,
2013
A
,
7
%
,
7/01/33
........................................
25,000,000
10,562,500
e
Revenue
,
2013
A
,
6.75
%
,
7/01/36
.....................................
11,735,000
4,958,038
e
Revenue
,
2013
A
,
7
%
,
7/01/43
........................................
5,000,000
2,112,500
e
Revenue
,
2016
B-1
,
10
%
,
7/01/19
.....................................
1,601,765
672,741
e
Revenue
,
3
,
10
%
,
1/01/22
...........................................
600,000
252,000
e
Revenue
,
4
,
10
%
,
7/01/22
...........................................
600,000
300,150
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
....................
1,800,000
1,779,223
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Revenue
,
2000
B
,
6.625
%
,
1/01/27
....................................
362,482
359,200
Revenue
,
2000
B
,
6.625
%
,
1/01/28
....................................
2,764,591
2,738,681
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
4.55
%
,
7/01/40
................................
100,000
100,238
Sales
Tax
,
Revenue
,
A-1
,
4.75
%
,
7/01/53
................................
10,500,000
10,421,245
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
..................................
8,695,000
8,733,454
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.,
(continued)
Sales
Tax
,
Revenue
,
A-1
,
Zero
Cpn.,
7/01/46
.............................
$
20,000,000
$
6,743,870
Sales
Tax
,
Revenue
,
A-1
,
Zero
Cpn.,
7/01/51
.............................
47,945,000
11,766,293
Sales
Tax
,
Revenue
,
A-2
,
4.329
%
,
7/01/40
...............................
11,463,000
11,336,807
Sales
Tax
,
Revenue
,
A-2
,
4.784
%
,
7/01/58
...............................
12,300,000
12,170,969
133,823,065
Total
U.S.
Territories
....................................................................
156,139,028
Total
Municipal
Bonds
(Cost
$
2,616,248,108
)
...................................
2,611,498,068
Shares
Escrows
and
Litigation
Trusts
0.1%
a
,b
Puerto
Rico
Electric
Power
Authority,
Escrow
Account
........................
3,031,496
2,425,197
Total
Escrows
and
Litigation
Trusts
(Cost
$
–
)
...................................
2,425,197
Total
Long
Term
Investments
(Cost
$
2,698,769,693
)
.............................
2,682,416,996
a
a
a
a
a
Short
Term
Investments
2.7%
Principal
Amount
Municipal
Bonds
2.7%
California
2.7%
l
Anaheim
Housing
&
Public
Improvements
Authority
,
City
of
Anaheim
Water
System
,
Revenue,
Second
Lien
,
2024
A
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
3.45
%
,
10/01/54
...................................................
8,000,000
8,000,000
l
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2009
B
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
3.15
%
,
9/01/38
.........................................................
9,500,000
9,500,000
l
California
Statewide
Communities
Development
Authority
,
Rady
Children's
Hospital
Obligated
Group
,
Revenue
,
2008
A
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
3.15
%
,
8/15/47
................................................
4,000,000
4,000,000
l
Eastern
Municipal
Water
District
,
Revenue
,
2018
A
,
Refunding
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
7/01/46
................................
3,700,000
3,700,000
l
Irvine
Ranch
Water
District
,
Water
Service
Corp.
,
Special
Assessment
,
2009
B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
3.4
%
,
10/01/41
...................
1,000,000
1,000,000
l
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2002
A-6
,
Refunding
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
3.57
%
,
7/01/35
......................................
20,955,000
20,955,000
Power
System
,
Revenue
,
2023
F-2
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
7/01/47
.................................
10,700,000
10,700,000
Water
System
,
Revenue
,
2019
A-2
,
Refunding
,
SPA
Barclays
Bank
plc
,
Daily
VRDN
and
Put
,
3.65
%
,
7/01/45
...........................................
9,200,000
9,200,000
l
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
3.45
%
,
5/15/48
..................
7,995,000
7,995,000
Revenue
,
2013
AL-4
,
Refunding
,
Daily
VRDN
and
Put
,
3.8
%
,
5/15/48
...........
1,000,000
1,000,000
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
California
(continued)
l
University
of
California,
(continued)
Revenue
,
2023
BP-1
,
Refunding
,
Daily
VRDN
and
Put
,
3.45
%
,
5/15/48
.........
$
700,000
$
700,000
76,750,000
Total
Municipal
Bonds
(Cost
$
76,750,000
)
......................................
76,750,000
Total
Short
Term
Investments
(Cost
$
76,750,000
)
................................
76,750,000
a
Total
Investments
(Cost
$
2,775,519,693
)
98.8
%
..................................
$2,759,166,996
Other
Assets,
less
Liabilities
1.2
%
.............................................
32,296,559
Net
Assets
100.0%
...........................................................
$2,791,463,555
See
Abbreviations
on
page
40
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
b
Non-income
producing.
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2024,
the
aggregate
value
of
these
securities
was
$768,834,943,
representing
27.5%
of
net
assets.
d
See
Note
9
regarding
restricted
securities.
e
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
7.
f
See
Note
1(d)
regarding
senior
floating
rate
interests.
g
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
h
The
maturity
date
shown
represents
the
mandatory
put
date.
i
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
j
Investment
in
an
interest-only
security
entitles
holders
to
receive
only
the
interest
payment
on
the
underlying
instruments.
The
principal
amount
shown
is
the
notional
amount
of
the
underlying
instruments.
k
The
coupon
rate
shown
represents
the
rate
at
period
end.
l
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
August
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,775,519,693
Value
-
Unaffiliated
issuers
..................................................................
$2,759,166,996
Cash
....................................................................................
7,345,535
Receivables:
Capital
shares
sold
........................................................................
4,235,043
Interest
.................................................................................
32,656,640
Unrealized
appreciation
on
unfunded
commitments
(Note
1
b
)
..........................................
1,620,918
Total
assets
..........................................................................
2,805,025,132
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
3,856,168
Capital
shares
redeemed
...................................................................
6,886,079
Management
fees
.........................................................................
1,073,484
Distribution
fees
..........................................................................
289,622
Transfer
agent
fees
........................................................................
357,188
Trustees'
fees
and
expenses
.................................................................
3,453
Distributions
to
shareholders
.................................................................
837,408
Accrued
expenses
and
other
liabilities
...........................................................
258,175
Total
liabilities
.........................................................................
13,561,577
Net
assets,
at
value
.................................................................
$2,791,463,555
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$2,967,546,788
Total
distributable
earnings
(losses)
.............................................................
(176,083,233)
Net
assets,
at
value
.................................................................
$2,791,463,555
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
August
31,
2024
(unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$848,993,901
Shares
outstanding
........................................................................
85,157,796
Net
asset
value
per
share
a
,b
..................................................................
$9.97
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
b
................................
$10.36
Class
A1:
Net
assets,
at
value
.......................................................................
$748,736,720
Shares
outstanding
........................................................................
75,248,076
Net
asset
value
per
share
a
,b
..................................................................
$9.95
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
b
................................
$10.34
Class
C:
Net
assets,
at
value
.......................................................................
$90,583,255
Shares
outstanding
........................................................................
9,033,745
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$10.03
Class
R6:
Net
assets,
at
value
.......................................................................
$55,906,982
Shares
outstanding
........................................................................
5,599,922
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$9.98
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,047,242,697
Shares
outstanding
........................................................................
105,012,577
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$9.97
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
August
31,
2024
(unaudited)
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
California
High
Yield
Municipal
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$63,182,740
Expenses:
Management
fees
(Note
3
a
)
...................................................................
6,088,704
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
962,243
Class
A1
...............................................................................
382,187
Class
C
................................................................................
297,142
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
235,768
Class
A1
...............................................................................
234,159
Class
C
................................................................................
28,007
Class
R6
...............................................................................
7,393
Advisor
Class
............................................................................
297,260
Custodian
fees
(Note
4
)
......................................................................
7,503
Reports
to
shareholders
fees
..................................................................
28,803
Registration
and
filing
fees
....................................................................
55,129
Professional
fees
...........................................................................
215,729
Trustees'
fees
and
expenses
..................................................................
14,923
Other
....................................................................................
93,101
Total
expenses
.........................................................................
8,948,051
Expense
reductions
(Note
4
)
...............................................................
(10,634)
Net
expenses
.........................................................................
8,937,417
Net
investment
income
................................................................
54,245,323
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(4,734,765)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
36,765,240
Net
realized
and
unrealized
gain
(loss)
............................................................
32,030,475
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$86,275,798
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
Six
Months
Ended
August
31,
2024
(unaudited)
Year
Ended
February
29,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$54,245,323
$105,126,472
Net
realized
gain
(loss)
.................................................
(4,734,765)
(16,050,503)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
36,765,240
53,480,150
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
86,275,798
142,556,119
Distributions
to
shareholders:
Class
A
.............................................................
(15,115,448)
(25,193,774)
Class
A1
............................................................
(15,604,951)
(34,307,094)
Class
C
.............................................................
(1,600,149)
(3,738,256)
Class
R6
............................................................
(1,133,676)
(2,045,837)
Advisor
Class
........................................................
(20,264,133)
(38,716,020)
Total
distributions
to
shareholders
..........................................
(53,718,357)
(104,000,981)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
128,686,536
103,194,019
Class
A1
............................................................
(36,378,710)
(97,874,912)
Class
C
.............................................................
(3,400,163)
(26,439,045)
Class
R6
............................................................
4,524,000
5,321,720
Advisor
Class
........................................................
120,595,392
(20,951,703)
Total
capital
share
transactions
............................................
214,027,055
(36,749,921)
Net
increase
(decrease)
in
net
assets
...................................
246,584,496
1,805,217
Net
assets:
Beginning
of
period
.....................................................
2,544,879,059
2,543,073,842
End
of
period
..........................................................
$2,791,463,555
$2,544,879,059
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Municipal
Securities
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of one fund,
Franklin
California
High
Yield
Municipal
Fund (Fund).
The Fund
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.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
A1,
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 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
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.
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.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
The
Fund
may purchase
securities
on
a when-issued,
forward
commitment or
delayed
delivery 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
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
date.
These
types
of
securities
may
be
considered
unfunded
and
the
Fund
may
be
obligated
to
perform
on
such
agreements
at
a
future
date.
Unfunded
commitments
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations.
At
August
31,
2024,
unfunded
commitments
were
as
follows:
c.
Income
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 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
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
August
31,
2024, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
d.
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.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
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.
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.
f.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Borrower
Unfunded
Commitment
Franklin
California
High
Yield
Municipal
Fund
Puerto
Rico
Electric
Power
Authority,
Restructured
Power
Revenue
,
B-1,
6%,
7/01/41
$
6,789,003
B-2,
7.125%,
7/01/59
32,971,162
$39,760,165
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
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
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.
2.
Shares
of
Beneficial
Interest
At
August
31,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
August
31,
2024
Year
Ended
February
29,
2024
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
17,769,582
$175,492,072
23,492,855
$226,276,624
Shares
issued
in
reinvestment
of
distributions
..........
1,373,852
13,527,513
2,315,787
22,303,879
Shares
redeemed
...............................
(6,122,206)
(60,333,049)
(15,144,556)
(145,386,484)
Net
increase
(decrease)
..........................
13,021,228
$128,686,536
10,664,086
$103,194,019
Class
A1
Shares:
Shares
sold
...................................
1,365,516
$13,496,093
2,753,076
$26,427,713
Shares
issued
in
reinvestment
of
distributions
..........
1,357,728
13,335,333
3,002,194
28,849,235
Shares
redeemed
...............................
(6,431,342)
(63,210,136)
(15,970,254)
(153,151,860)
Net
increase
(decrease)
..........................
(3,708,098)
$(36,378,710)
(10,214,984)
$(97,874,912)
Class
C
Shares:
Shares
sold
...................................
1,102,013
$10,932,000
1,410,978
$13,633,782
Shares
issued
in
reinvestment
of
distributions
..........
154,487
1,529,140
362,811
3,514,754
Shares
redeemed
a
..............................
(1,597,843)
(15,861,303)
(4,522,341)
(43,587,581)
Net
increase
(decrease)
..........................
(341,343)
$(3,400,163)
(2,748,552)
$(26,439,045)
Class
R6
Shares:
Shares
sold
...................................
1,037,988
$10,238,274
2,144,936
$20,734,737
Shares
issued
in
reinvestment
of
distributions
..........
106,343
1,048,390
187,368
1,805,869
Shares
redeemed
...............................
(685,726)
(6,762,664)
(1,800,548)
(17,218,886)
Net
increase
(decrease)
..........................
458,605
$4,524,000
531,756
$5,321,720
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Insurance
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
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 Fund are
also
officers
and/or
directors
of
the
following
subsidiaries:
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
August
31,
2024,
the
annualized
gross
effective
investment
management
fee
rate
was 0.460%
of
the
Fund’s
average daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
Six
Months
Ended
August
31,
2024
Year
Ended
February
29,
2024
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Shares
sold
...................................
19,451,117
$192,162,202
43,867,337
$420,291,421
Shares
issued
in
reinvestment
of
distributions
..........
1,724,451
16,983,965
3,332,004
32,084,685
Shares
redeemed
...............................
(8,983,178)
(88,550,775)
(49,540,266)
(473,327,809)
Net
increase
(decrease)
..........................
12,192,390
$120,595,392
(2,340,925)
$(20,951,703)
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
0.625%
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%
In
excess
of
$20
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
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
and
A1
reimbursement
distribution
plans,
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
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
compensation
distribution
plan,
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.
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:
Distributors
has
agreed
to
limit
the
current
rate
to
0.10%
per
year
for
Class
A1.
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:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Fund
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
August
31,
2024,
the Fund
paid
transfer
agent
fees
as
noted
in
the
Statement of
Operations,
of
which
$219,641
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Advisers has contractually
agreed
in
advance
to
waive
or
limit
its fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by the
Fund
so
that
the
operating expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
0.65%
based
on
the
average
net
assets
of
each
class
until
June
30,
2025.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.15%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$12,060
CDSC
retained
..............................................................................
$49,439
3.
Transactions
with
Affiliates
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
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
June
30,
2025.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
August
31,
2024,
these
purchase
and
sale
transactions
aggregated
$61,635,000
and
$73,805,000,
respectively.
4.
Expense
Offset
Arrangement
The Fund has
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
August
31,
2024,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
29,
2024,
the
capital
loss
carryforwards
were
as
follows:
At
August
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
wash
sales
and
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
August
31,
2024,
aggregated
$286,727,322 and
$84,664,289,
respectively.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$100,884,256
Long
term
................................................................................
58,261,273
Total
capital
loss
carryforwards
...............................................................
$159,145,529
Cost
of
investments
..........................................................................
$2,781,831,942
Unrealized
appreciation
........................................................................
$138,538,999
Unrealized
depreciation
........................................................................
(161,203,945)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(22,664,946)
3.
Transactions
with
Affiliates
(continued)
f.
Waiver
and
Expense
Reimbursements
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
7.
Credit
Risk
and
Defaulted
Securities
At
August
31,
2024,
the
Fund
had 34.7%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade as
determined
by
Nationally
Recognized
Statistical
Credit
Ratings
Organizations
and/or
internally,
by
investment
management
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
August
31,
2024,
the
aggregate
value
of
these
securities
was $38,814,369
representing 1.4%
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.
8.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
its total
assets
in
obligations
of
issuers
within California
and
U.S.
territories.
Such
concentration
may
subject
the
Fund
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within California
and
U.S.
territories. Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
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
August
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Principal
Amount
*
Issuer
Acquisition
Date
Cost
Value
Franklin
California
High
Yield
Municipal
Fund
1,370,000
a
CalPlant
I
LLC,
21
A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
10/13/21
$
1,370,000
$
178,100
5,220,000
a
CalPlant
I
LLC,
21
B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
11/01/21
5,220,000
678,600
2,875,000
a
CalPlant
I
LLC,
22
A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
4/05/22
2,875,000
373,750
250,000
a
CalPlant
I
LLC,
22
B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
9/28/22
250,000
32,500
1,885,000
a
CalPlant
I
LLC,
22
C,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
10/11/22
1,885,000
1,885,000
2,830,000
a
CalPlant
I
LLC,
22
X,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
11/09/22
2,830,000
2,830,000
1,000,000
a
CalPlant
I
LLC,
23
A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
1/11/23
1,000,000
1,000,000
890,000
a
CalPlant
I
LLC,
23
B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
2/09/23
890,000
890,000
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
10.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
August
31,
2024,
the Fund
did
not
use
the
Global
Credit
Facility.
11.
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)
Principal
Amount*
Issuer
Acquisition
Date
Cost
Value
Franklin
California
High
Yield
Municipal
Fund
(continued)
1,415,000
a
CalPlant
I
LLC,
23
C,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
3/02/23
$
1,415,000
$
1,415,000
1,230,000
a
CalPlant
I
LLC,
23
D,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
5/04/23
1,230,000
1,230,000
1,385,000
a
CalPlant
I
LLC,
23
E,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
..................................
6/01/23
1,385,000
1,385,000
Total
Restricted
Securities
(Value
is
0.4%
of
Net
Assets)
..............
$20,350,000
$11,897,950
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$4,195,000
as
of
August
31,
2024.
9.
Restricted
Securities
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
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 August
31,
2024,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
$
—
$
—
$
—
b
$
—
Corporate
Bonds
:
Commercial
Services
&
Supplies
...........
—
—
16,092,950
16,092,950
Diversified
Consumer
Services
............
—
41,994,911
—
41,994,911
Electric
Utilities
........................
—
10,148,367
—
10,148,367
Senior
Floating
Rate
Interests
...............
—
—
257,503
b
257,503
Municipal
Bonds
:
California
.............................
—
2,393,582,808
4,902,461
2,398,485,269
Florida
...............................
—
18,176,145
—
18,176,145
Minnesota
............................
—
3,323,753
—
3,323,753
Texas
...............................
—
9,317,347
—
9,317,347
Virgin
Islands
..........................
—
10,073,250
—
10,073,250
Virginia
..............................
—
5,286,927
—
5,286,927
Wisconsin
............................
—
10,696,349
—
10,696,349
U.S.
Territories
..........................
Guam
...............................
—
19,637,884
—
19,637,884
Pacific
Islands
.........................
—
2,678,079
—
2,678,079
Puerto
Rico
...........................
—
133,823,065
—
133,823,065
Escrows
and
Litigation
Trusts
...............
—
—
2,425,197
2,425,197
Short
Term
Investments
...................
—
76,750,000
—
76,750,000
Total
Investments
in
Securities
...........
$—
$2,735,488,885
$23,678,111
$2,759,166,996
Other
Financial
Instruments:
Unfunded
Commitments
..................
$—
$—
$1,620,918
$1,620,918
Total
Other
Financial
Instruments
.........
$—
$—
$1,620,918
$1,620,918
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
financial
instruments
determined
to
have
no
value.
11.
Fair
Value
Measurements
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
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
August
31,
2024,
the
reconciliation
is
as
follows:
Level
3
financial
instruments
include
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
12.
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.
Balance
at
Beginning
of
Period
Purchases
a
Sales
Transfer
Into
Level
3
b
Transfer
Out
of
Level
3
Net
Accretion
(
Amortiza
-
tion
)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
Common
Stocks:
United
States
.
$
—
$
—
c
$
—
$
—
$
—
$
—
$
—
$
—
$
—
c
$
—
Corporate
Bonds:
United
States
.
21,630,500
—
—
—
—
—
—
(5,537,550)
16,092,950
(5,537,550)
Senior
Floating
Rate
Interests:
United
States
.
1,354,086
420,673
—
—
—
347,236
—
(1,864,492)
257,503
c
(1,864,492)
Municipal
Bonds:
United
States
.
—
3,923,500
—
386,082
—
216
—
592,663
4,902,461
592,663
Escrows
and
Litigation
Trusts
2,425,197
—
—
—
—
—
—
—
2,425,197
—
Total
Investments
in
Securities
.......
$25,409,783
$4,344,173
$—
$386,082
$—
$347,452
$—
$(6,809,379)
$23,678,111
$(6,809,379)
Other
Financial
Instruments:
Unfunded
Commitments
$1,620,918
$—
$—
$—
$—
$—
$—
$—
$1,620,918
$—
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Transferred
into
Level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
as
a
result
of
the
unreliability
of
the
foreign
exchange
rate
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
c
Includes
financial
instruments
determined
to
have
no
value.
11.
Fair
Value
Measurements
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
Abbreviations
Selected
Portfolio
1915
Act
Improvement
Bond
Act
of
1915
AGMC
Assured
Guaranty
Municipal
Corp.
BAM
Build
America
Mutual
Assurance
Co.
CME
Chicago
Mercantile
Exchange
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FRN
Floating
Rate
Note
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
Franklin
Municipal
Securities
Trust
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Franklin
California
High
Yield
Municipal
Fund
(Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Municipal
Securities
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Franklin
Municipal
Securities
Trust
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
FT
family
of
funds
and
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2023.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
California
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
and
in
the
first
quintile
(best)
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
one-
and
three-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-
related
attributes
of
the
Fund
(e.g.,
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
Franklin
Municipal
Securities
Trust
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
and
Class
M
shares
for
the
other
funds
in
the
Fund’s
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
the
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
10
other
California
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
approximately
two
and
a
half
basis
points
above
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
also
noted
that
the
Fund’s
actual
total
expense
ratio
reflected
an
expense
cap
on
operating
expenses.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
Franklin
Municipal
Securities
Trust
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Fund
had
experienced
a
significant
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that,
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
©
2024
Franklin
Templeton.
All
rights
reserved.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 13. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 16. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSRS, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected or is reasonably likely to materially affect the internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Company N/A
Item 18. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 19. Exhibits.
(a) (1) N/A
(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN MUNICIPAL SECURITIES TRUST
| By | /s/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | October 31, 2024 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By | /s/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | October 31, 2024 | |
| By | /s/ JEFFREY WHITE | |
| | Jeffrey White | |
| | Chief Financial Officer, Chief Accounting Officer and Treasurer | |
| | | |
| Date | October 31, 2024 | |
