UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06481
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: 8/31/22
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
California
High
Yield
Municipal
Fund
A
Series
of
Franklin
Municipal
Securities
Trust
August
31,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
August
31,
2022,
the
U.S.
economy
contracted
in
2022’s
first
and
second
quarters
amid
declines
in
inventory
investment
and
federal
government
spending.
Consumer
spending
slowly
expanded,
helped
by
the
reopening
of
businesses,
widespread
vaccinations,
and
federal
assistance
programs.
Inflation
increased
during
the
six-month
period,
influenced
by
pandemic-related
supply-
chain
issues,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
To
combat
high
inflation,
the
U.S.
Federal
Reserve
ended
monthly
asset
purchases
in
March
2022
and
raised
the
federal
funds
rate
by
0.25%
in
March,
0.50%
in
May,
and
by
0.75%
in
both
June
and
July,
for
a
total
of
2.25%,
increasing
the
rate
from
0.25%
to
2.50%
during
the
period.
The
Federal
Reserve
also
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-
backed
securities
holdings,
and
anticipated
that
ongoing
federal
funds
rate
increases
would
be
appropriate.
During
the
six-month
period
ended
August
31,
2022,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.72%
cumulative
total
return,
influenced
by
high
levels
of
fixed
income
market
volatility,
tighter
monetary
policy
and
risk-off
sentiment
that
led
to
outflows
from
municipals.
1
Fundamentals
remained
strong,
however,
with
many
issuers
reporting
budget
surpluses
for
2022
as
federal
government
transfers
boosted
revenues.
Franklin
California
High
Yield
Municipal
Fund’s
semiannual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
for
up-to-date
advice
on
their
holdings.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
California
High
Yield
Municipal
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
August
31,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
3
Performance
Summary
5
Your
Fund’s
Expenses
7
Financial
Highlights
and
Schedule
of
Investments
8
Financial
Statements
32
Notes
to
Financial
Statements
36
Shareholder
Information
45
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIA
NNUAL
REPORT
Franklin
California
High
Yield
Municipal
Fund
This
semiannual
report
for
Franklin
California
High
Yield
Municipal
Fund
covers
the
period
ended
August
31,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
a
high
level
of
income
exempt
from
federal
and
California
personal
income
taxes
by
normally
investing
at
least
80%
of
its
net
assets
in
municipal
securities
in
any
rating
category,
including
securities
rated
below
investment
grade,
that
pay
interest
free
from
such
taxes.
1
Its
secondary
goal
is
capital
appreciation
to
the
extent
possible
and
consistent
with
its
principal
investment
goal.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.02
on
February
28,
2022,
to
$9.98
on
August
31,
2022.
2
The
Fund’s
Class
A
shares
paid
dividends
totaling
16.7324
cents
per
share
for
the
reporting
period.
The
Performance
Summary
beginning
on
page
5
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
3.25%,
based
on
an
annualization
of
August’s
2.8120
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.37
on
August
31,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
California
personal
income
tax
bracket
of
53.10%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
6.93%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Municipal
Bond
Market
Overview
During
the
six
months
ending
August
31,
2022,
multi-decade
high
inflation
continued
throughout
much
of
the
period
as
a
strong
U.S.
job
market
and
ample
consumer
savings
pushed
demand
beyond
the
ability
of
businesses
to
increase
supply.
In
response,
the
U.S.
Federal
Reserve
(Fed)
began
increasing
short-term
interest
rates
at
a
pace
not
seen
since
the
1980s,
leading
U.S.
Treasury
(UST)
yields
to
move
much
higher
over
the
period.
Recessionary
concerns
began
to
emerge
as
the
market
debated
whether
the
Fed
could
engineer
a
soft
landing
that
would
bring
inflation
down
without
causing
a
severe
economic
contraction.
The
municipal
bond
(muni)
market
saw
one
of
its
worst
starts
to
a
new
year
in
2022.
High
levels
of
fixed
income
market
volatility,
a
general
risk-off
shift
in
sentiment,
and
poor
performance
caused
significant
year-to-date
outflows
from
muni
retail
vehicles,
leading
market
technical
conditions
to
worsen.
So
far
this
year,
net
issuance
has
been
limited
and
lags
well
behind
the
same
period
in
2021.
Fundamentals
remained
strong,
however,
with
many
issuers
reporting
surpluses
for
2022
as
federal
government
transfers
bolstered
revenues.
For
the
six-month
period,
U.S.
fixed
income
sectors
saw
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
-8.84%
total
return
for
the
period.
3
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.72%
total
return,
and
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-7.63%
total
return.
3
In
contrast,
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-9.41%
total
return.
3
State
Update
During
the
six-month
period,
California’s
large
and
diverse
economy,
with
its
recent
trend
of
strong
revenue
performance
and
use
of
surplus
funds
to
build
reserves,
has
enabled
the
state
to
deal
with
economic
and
fiscal
1.
The
Fund
may
invest
up
to
100%
of
its
assets
in
bonds
whose
interest
payments
are
subject
to
federal
alternative
minimum
tax.
All
or
a
significant
portion
of
the
income
on
these
obligations
may
be
subject
to
such
tax.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
13
.
Franklin
California
High
Yield
Municipal
Fund
4
franklintempleton.com
Semiannual
Report
challenges
due
to
COVID-19.
California’s
unemployment
rate
began
the
period
at
5.3%
and
ended
at
4.1%,
compared
with
the
3.7%
national
rate.
State
revenue
growth
has
been
strong
as
tax
collections
in
recent
years
have
exceeded
projections,
and
budgets
for
the
2022
and
2023
fiscal
years
featured
large
amounts
of
one-time
spending
while
maintaining
healthy
levels
of
reserves.
California’s
net
tax-
supported
debt
was
$2,458
per
capita
and
3.2%
of
personal
income,
compared
with
the
$1,179
and
2.1%
national
medians,
respectively.
4
Independent
credit
rating
agency
Moody’s
Investors
Service
assigned
California’s
general
obligations
bonds’
an
Aa2
rating
with
a
stable
outlook.
5
The
rating
reflected
Moody’s
view
of
the
state’s
large
and
diverse
economy,
healthy
budget
reserves
and
strong
liquidity.
Moody’s
also
noted
challenges,
including
high
revenue
volatility
given
the
state’s
disproportionate
dependence
on
income
taxes,
constrained
flexibility
to
adjust
spending
and
raise
revenue,
and
above-average
debt
and
fixed
cost
burdens.
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
Consistent
with
our
strategy,
we
sought
to
remain
invested
in
bonds
that
have
an
average
weighted
maturity
of
15
to
30
years
with
good
call
features.
Based
on
the
combination
of
our
value-oriented
philosophy
of
investing
primarily
for
income
and
a
positively
sloping
municipal
yield
curve,
in
which
interest
rates
for
longer-term
bonds
are
higher
than
those
for
shorter-term
bonds,
we
favored
the
use
of
longer-
term
bonds.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-
free
income
for
shareholders.
*
Does
not
include
cash
and
cash
equivalents.
Thank
you
for
your
continued
participation
in
Franklin
California
High
Yield
Municipal
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
8/31/22
%
of
Total
Investments*
Special
Tax
23.92%
Transportation
15.91%
Housing
15.26%
Education
12.02%
Health
Care
7.71%
Local
7.23%
Industrial
Dev.
Revenue
and
Pollution
Control
5.67%
Refunded
5.63%
Utilities
3.15%
Other
Revenue
Bonds
2.37%
State
General
Obligation
0.83%
Lease
0.30%
4.
Source:
Moody’s
Investors
Service,
States
–
U.S.:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Performance
Summary
as
August
31,
2022
Franklin
California
High
Yield
Municipal
Fund
5
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
8/31/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
-7.94%
-11.39%
1-Year
-10.89%
-14.23%
5-Year
+7.44%
+0.67%
10-Year
+37.00%
+2.80%
Advisor
6-Month
-7.73%
-7.73%
1-Year
-10.65%
-10.65%
5-Year
+8.42%
+1.63%
10-Year
+39.01%
+3.35%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
3.25%
6.93%
3.38%
7.21%
Advisor
3.64%
7.76%
3.76%
8.02%
See
page
6
for
Performance
Summary
footnotes.
Franklin
California
High
Yield
Municipal
Fund
Performance
Summary
6
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Investments
in
lower-rated
bonds
include
higher
risk
of
default
and
loss
of
principal.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
The
manager’s
portfolio
selection
strategy
is
not
solely
based
on
ESG
considerations,
and
therefore
the
issuers
in
which
the
Fund
invests
may
not
be
considered
ESG-focused
companies.
Integrating
ESG
considerations
into
the
investment
process
is
not
a
guarantee
that
better
performance
will
be
achieved.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
imposed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/20/22
for
the
maximum
combined
effective
federal
and
California
state
personal
income
tax
rate
of
53.10%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/22–8/31/22)
Share
Class
Net
Investment
Income
A
$0.167324
A1
$0.175086
C
$0.146426
R6
$0.182368
Advisor
$0.180227
Total
Annual
Operating
Expenses
8
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
California
High
Yield
Municipal
Fund
7
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
3/1/22
Ending
Account
Value
8/31/22
Expenses
Paid
During
Period
3/1/22–8/31/22
1,2
Ending
Account
Value
8/31/22
Expenses
Paid
During
Period
3/1/22–8/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$920.60
$4.07
$1,020.97
$4.28
0.84%
A1
$1,000
$922.00
$3.34
$1,021.73
$3.51
0.69%
C
$1,000
$919.20
$5.97
$1,018.99
$6.28
1.23%
R6
$1,000
$922.90
$2.65
$1,022.45
$2.78
0.55%
Advisor
$1,000
$922.70
$2.85
$1,022.24
$2.99
0.59%
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2019
b
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$11.02
$11.49
$10.81
$11.10
$10.70
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.18
0.26
0.35
0.34
0.27
Net
realized
and
unrealized
gains
(losses)
...........
(1.05)
(0.49)
0.67
(0.29)
0.41
Total
from
investment
operations
....................
(0.87)
(0.23)
1.02
0.05
0.68
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.24)
(0.34)
(0.34)
(0.28)
Net
asset
value,
end
of
period
......................
$9.98
$11.02
$11.49
$10.81
$11.10
Total
return
e
...................................
(7.94)%
(2.09)%
9.57%
0.43%
6.56%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.84%
0.81%
0.79%
0.80%
0.83%
Net
investment
income
...........................
3.47%
2.88%
3.10%
3.10%
3.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$635,300
$714,052
$618,967
$425,757
$244,196
Portfolio
turnover
rate
............................
9.70%
10.19%
9.20%
23.29%
13.91%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019.
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)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$10.99
$11.47
$10.79
$11.08
$10.70
$10.89
$11.10
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.19
0.26
0.37
0.36
0.40
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
(1.04)
(0.49)
0.67
(0.29)
0.39
(0.19)
(0.22)
Total
from
investment
operations
.............
(0.85)
(0.23)
1.04
0.07
0.79
0.20
0.18
Less
distributions
from:
Net
investment
income
..
(0.18)
(0.25)
(0.36)
(0.36)
(0.41)
(0.39)
(0.39)
Net
asset
value,
end
of
period
................
$9.96
$10.99
$11.47
$10.79
$11.08
$10.70
$10.89
Total
return
d
...........
(7.80)%
(2.07)%
9.76%
0.58%
7.56%
1.92%
1.71%
Ratios
to
average
net
assets
e
Expenses
.............
0.69%
f
0.66%
f
0.64%
f
0.65%
f
0.68%
f
0.66%
0.63%
Net
investment
income
...
3.63%
3.04%
3.27%
3.25%
3.70%
3.63%
3.66%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$956,914
$1,166,095
$1,254,701
$1,282,022
$1,386,291
$1,378,169
$1,377,514
Portfolio
turnover
rate
....
9.70%
10.19%
9.20%
23.29%
13.91%
11.08%
19.73%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$11.08
$11.56
$10.87
$11.17
$10.78
$10.97
$11.17
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.16
0.21
0.30
0.30
0.34
0.33
0.34
Net
realized
and
unrealized
gains
(losses)
(1.05)
(0.49)
0.69
(0.30)
0.40
(0.19)
(0.21)
Total
from
investment
operations
.............
(0.89)
(0.28)
0.99
—
0.74
0.14
0.13
Less
distributions
from:
Net
investment
income
..
(0.15)
(0.20)
(0.30)
(0.30)
(0.35)
(0.33)
(0.33)
Net
asset
value,
end
of
period
................
$10.04
$11.08
$11.56
$10.87
$11.17
$10.78
$10.97
Total
return
d
...........
(8.08)%
(2.46)%
9.18%
(0.04)%
7.01%
1.34%
1.22%
Ratios
to
average
net
assets
e
Expenses
.............
1.23%
f
1.20%
f
1.19%
f
1.20%
f
1.23%
f
1.21%
1.18%
Net
investment
income
...
3.05%
2.47%
2.69%
2.70%
3.15%
3.08%
3.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$137,744
$180,173
$223,652
$253,579
$272,186
$327,022
$358,308
Portfolio
turnover
rate
....
9.70%
10.19%
9.20%
23.29%
13.91%
11.08%
19.73%
a
For
the
period
June
1,
2022
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2018
b
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.03
$11.51
$10.82
$11.12
$10.74
$10.88
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.19
0.27
0.38
0.38
0.41
0.35
Net
realized
and
unrealized
gains
(losses)
(1.04)
(0.49)
0.68
(0.30)
0.39
(0.15)
Total
from
investment
operations
........
(0.85)
(0.22)
1.06
0.08
0.80
0.20
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.26)
(0.37)
(0.38)
(0.42)
(0.34)
Net
asset
value,
end
of
period
..........
$10.00
$11.03
$11.51
$10.82
$11.12
$10.74
Total
return
e
.......................
(7.71)%
(1.96)%
9.97%
0.63%
7.66%
1.84%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.55%
0.53%
0.52%
0.52%
0.57%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
0.55%
g,h
0.52%
g
0.51%
g
0.51%
g
0.55%
g
0.53%
Net
investment
income
...............
3.76%
3.16%
3.37%
3.39%
3.83%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$52,826
$60,366
$45,216
$26,741
$21,214
$13,004
Portfolio
turnover
rate
................
9.70%
10.19%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
For
the
period
August
1,
2017
(effective
date)
to
May
31,
2018.
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)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$11.02
$11.50
$10.82
$11.11
$10.73
$10.91
$11.12
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.19
0.27
0.38
0.37
0.41
0.40
0.41
Net
realized
and
unrealized
gains
(losses)
(1.04)
(0.49)
0.67
(0.29)
0.39
(0.18)
(0.22)
Total
from
investment
operations
.............
(0.85)
(0.22)
1.05
0.08
0.80
0.22
0.19
Less
distributions
from:
Net
investment
income
..
(0.18)
(0.26)
(0.37)
(0.37)
(0.42)
(0.40)
(0.40)
Net
asset
value,
end
of
period
................
$9.99
$11.02
$11.50
$10.82
$11.11
$10.73
$10.91
Total
return
d
...........
(7.73)%
(1.99)%
9.84%
0.68%
7.64%
2.10%
1.80%
Ratios
to
average
net
assets
e
Expenses
.............
0.59%
f
0.56%
f
0.54%
f
0.55%
f
0.58%
f
0.56%
0.53%
Net
investment
income
...
3.72%
3.13%
3.35%
3.35%
3.80%
3.73%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$969,123
$1,186,382
$1,113,278
$903,694
$889,990
$748,355
$720,890
Portfolio
turnover
rate
....
9.70%
10.19%
9.20%
23.29%
13.91%
11.08%
19.73%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited),
August
31,
2022
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
2.2%
Commercial
Services
&
Supplies
0.3%
a
CalPlant
I
LLC
,
21A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
$
1,370,000
$
1,375,729
21B,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
5,220,000
5,241,791
22A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
2,875,000
2,887,022
9,504,542
Diversified
Consumer
Services
1.5%
Grand
Canyon
University
,
5.125
%
,
10/01/28
...............................
45,335,000
42,125,877
Electric
Utilities
0.4%
a,b
Mission
Rock
Utilities,
Inc.
,
144A,
7
%
,
7/01/27
..............................
10,000,000
9,896,800
Total
Corporate
Bonds
(Cost
$64,677,657)
......................................
61,527,219
Municipal
Bonds
96.5%
California
88.7%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
13-1
,
Special
Tax
,
2016
,
5
%
,
9/01/46
................................
1,400,000
1,442,853
Baldwin
Park
Unified
School
District
,
GO
,
2013
,
Pre-Refunded
,
BAM
Insured
,
Zero
Cpn
.,
8/01/42
.....................................................
10,000,000
2,711,959
California
Community
College
Financing
Authority
,
a
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
A,
5.75%,
7/01/60
.....
17,500,000
16,821,849
a
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
B,
7.75%,
7/01/30
.....
2,405,000
2,316,518
a
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
C,
6.75%,
7/01/60
.....
7,050,000
6,664,862
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/48
..........
225,000
226,516
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/53
..........
6,785,000
6,810,858
a
California
Community
Housing
Agency
,
Annadel
Apartments,
Revenue,
144A,
2019
A,
5%,
4/01/49
..................
27,050,000
25,171,018
Serenity
at
Larkspur
Apartments,
Revenue,
144A,
2020
A,
5%,
2/01/50
.........
22,525,000
21,242,627
Twin
Creek
Apartments,
Revenue,
Junior
Lien,
144A,
2022
B,
5.5%,
2/01/40
.....
4,475,000
4,117,161
Verdant
at
Green
Valley
Apartments,
Revenue,
144A,
2019
A,
5%,
8/01/49
.......
15,000,000
14,152,996
California
County
Tobacco
Securitization
Agency
,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................
125,010,000
22,987,351
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................................................
13,420,000
2,767,285
Merced
County
Tobacco
Funding
Corp.,
Revenue,
2020
B,
Refunding,
5%,
6/01/50
3,000,000
3,066,906
Sonoma
County
Securitization
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................................................
10,000,000
2,062,060
California
Educational
Facilities
Authority
,
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
.......
1,265,000
1,320,824
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
.......
1,125,000
1,171,948
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/44
.......
1,610,000
1,658,946
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......
9,000,000
9,240,707
Chapman
University,
Revenue,
2015,
5%,
4/01/40
.........................
5,000,000
5,175,773
Leland
Stanford
Junior
University
(The),
Revenue,
V-1,
5%,
5/01/49
............
10,000,000
11,863,719
Loma
Linda
University,
Revenue,
2017
A,
Refunding,
5%,
4/01/42
.............
8,500,000
8,993,615
University
of
the
Pacific,
Revenue,
2015,
Refunding,
5%,
11/01/36
.............
3,000,000
3,141,322
a
California
Enterprise
Development
Authority
,
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/36
250,000
229,079
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
630,000
516,190
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
845,000
661,558
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
3/01/39
........................................................
8,190,000
7,915,153
California-Nevada
Methodist
Homes,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/45
..............................................
4,500,000
4,677,875
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Health
Facilities
Financing
Authority,
(continued)
Children's
Hospital
Los
Angeles
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
8/15/49
........................................................
$
3,375,000
$
2,971,263
El
Camino
Hospital,
Revenue,
2017,
4%,
2/01/42
..........................
6,500,000
6,284,526
El
Camino
Hospital,
Revenue,
2017,
5%,
2/01/42
..........................
5,000,000
5,265,993
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2014
A,
5%,
8/15/43
..............................................
7,160,000
7,336,729
Sutter
Health
Obligated
Group,
Revenue,
2016
B,
5%,
11/15/46
...............
15,940,000
16,681,438
Sutter
Health
Obligated
Group,
Revenue,
2016
B,
Pre-Refunded,
5%,
11/15/46
...
10,985,000
12,158,260
California
Housing
Finance
Agency
,
Revenue,
2019-2,
A,
4%,
3/20/33
......................................
53,649
53,210
Revenue,
2021-1,
A,
3.5%,
11/20/35
...................................
4,897,149
4,564,667
a
Redwood
Gardens
Renewal
LP,
Revenue,
144A,
2021
N-S,
4%,
3/01/37
........
3,165,000
2,573,742
a,c
Shermanair
Apartments
Owner
LP,
Revenue,
144A,
2021
Q-S,
Mandatory
Put,
4.5%,
9/01/36
........................................................
4,000,000
3,671,694
a
California
Infrastructure
&
Economic
Development
Bank
,
Goodwill
Industries
of
Sacramento
Valley
&
Northern
Nevada,
Inc.,
Revenue,
144A,
2016
A,
5%,
1/01/47
..............................................
10,360,000
8,064,195
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,600,000
1,522,759
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
2,300,000
2,193,636
California
Municipal
Finance
Authority
,
a
Revenue,
144A,
2021
B,
Refunding,
4%,
10/01/37
.........................
8,150,000
6,653,941
Revenue,
2022
A-1,
4.25%,
12/01/37
...................................
16,700,000
14,453,706
Special
Tax,
2020
B,
4%,
9/01/43
......................................
1,140,000
1,046,010
Special
Tax,
2021
A,
4%,
9/01/36
......................................
535,000
514,532
Special
Tax,
2021
A,
4%,
9/01/41
......................................
660,000
613,007
Special
Tax,
2021
B,
4%,
9/01/41
......................................
900,000
833,757
Special
Tax,
2021
B,
4%,
9/01/46
......................................
830,000
743,527
Special
Tax,
2021
B,
4%,
9/01/51
......................................
750,000
651,001
Special
Tax,
2021
C,
4%,
9/01/46
......................................
1,300,000
1,166,283
Special
Tax,
2021
C,
4%,
9/01/51
......................................
1,800,000
1,577,621
1717
University
Associates
LLC,
Revenue,
2020
A-S,
5%,
9/01/57
.............
1,175,000
910,413
ACI
Royal
York,
Inc.,
Revenue,
2020
A,
4%,
2/15/55
........................
2,375,000
1,850,434
American
Heritage/Escondido/Heritage
K-8
Charter
School
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/36
.............................
3,000,000
3,078,007
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/36
...............
1,100,000
1,151,548
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/39
...............
1,000,000
1,039,202
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/35
.....................
600,000
612,606
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/50
.....................
3,250,000
3,292,134
a
California
Baptist
University,
Revenue,
144A,
2015
A,
5.375%,
11/01/40
.........
5,000,000
5,215,729
a
California
Baptist
University,
Revenue,
144A,
2015
A,
5.5%,
11/01/45
...........
10,000,000
10,431,984
a
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/36
............
2,500,000
2,592,941
a
Capital
Christian
Center,
Revenue,
144A,
2021
A,
5%,
10/01/51
...............
8,425,000
7,344,814
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5%,
8/15/30
.....
1,000,000
1,025,659
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/39
...
1,200,000
1,226,392
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/49
...
3,500,000
3,560,077
CHF-Davis
I
LLC,
Revenue,
2018,
5%,
5/15/51
...........................
5,000,000
5,106,526
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/51
................
2,550,000
1,952,913
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/54
................
3,585,000
2,669,988
CHF-Riverside
I
LLC,
Revenue,
2018,
5%,
5/15/43
.........................
1,500,000
1,543,373
CHF-Riverside
II
LLC,
Revenue,
2019,
5%,
5/15/49
........................
9,575,000
9,818,723
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/39
.
1,120,000
1,128,097
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/49
.
4,290,000
4,214,843
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/54
.
1,875,000
1,825,255
Community
Facilities
District
No.
2021-11,
Special
Tax,
2022,
5%,
9/01/52
.......
2,500,000
2,475,751
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
3%,
12/01/23
.......................................................
$
100,000
$
98,722
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
4%,
12/01/26
.......................................................
200,000
200,004
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/27
.......................................................
100,000
104,598
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/29
.......................................................
50,000
52,686
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/31
.......................................................
130,000
136,207
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/36
.......................................................
350,000
361,719
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/46
.......................................................
1,000,000
1,011,999
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/54
.......................................................
1,000,000
1,008,452
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2015
A,
Pre-
Refunded,
5%,
2/01/40
............................................
5,000,000
5,310,171
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
2/01/42
............................................
10,000,000
9,655,666
Congregational
Homes,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/39
.......................................................
2,670,000
2,761,139
Congregational
Homes,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
.......................................................
480,000
490,445
a
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4%,
11/01/36
.......
1,395,000
1,213,329
a
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4.5%,
11/01/46
......
1,600,000
1,357,095
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/32
.............
3,020,000
3,223,595
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/39
.............
6,525,000
6,900,501
Developmental
Services
Support
Foundation,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
........................................................
3,895,000
4,087,515
Eisenhower
Medical
Center,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.........
2,625,000
2,724,097
HumanGood
California
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
10/01/44
5,500,000
5,657,793
HumanGood
California
Obligated
Group,
Revenue,
2021,
3%,
10/01/49
.........
5,000,000
3,697,515
Inland
Counties
Regional
Center,
Inc.,
Revenue,
2015,
Refunding,
5%,
6/15/37
...
9,965,000
10,493,824
a
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/36
.....
2,275,000
2,310,586
a
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/46
.....
2,775,000
2,790,486
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/43
13,915,000
14,183,381
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
4%,
12/31/47
6,085,000
5,439,021
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/47
22,250,000
22,582,415
Literacy
First
Charter
School
Issuer
LLC,
Revenue,
2019
A,
5%,
12/01/39
.......
1,145,000
1,178,863
Literacy
First
Charter
School
Issuer
LLC,
Revenue,
2019
A,
5%,
12/01/49
.......
2,775,000
2,816,469
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/35
......
1,100,000
1,116,098
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/44
......
1,050,000
1,054,708
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2017
A,
5.25%,
11/01/47
..
3,000,000
3,051,035
a
P3
Claremont
Holdings
LLC,
Revenue,
144A,
2020
A,
5%,
7/01/30
.............
520,000
531,625
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/31
..
1,000,000
1,017,704
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/36
..
2,750,000
2,778,436
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/41
..
1,750,000
1,757,746
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
3.875%,
7/01/28
1,045,000
1,014,389
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/38
..
1,100,000
1,111,558
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/49
..
3,600,000
3,573,456
ROP
WMCC
LLC,
Revenue,
2013
A,
Pre-Refunded,
5.625%,
11/15/33
..........
1,000,000
1,037,875
ROP
WMCC
LLC,
Revenue,
2013
A,
Pre-Refunded,
6%,
11/15/48
.............
4,000,000
4,168,194
a
Santa
Rosa
Academy
LLC,
Revenue,
144A,
2015,
5.125%,
7/01/35
............
450,000
456,890
a
Santa
Rosa
Academy
LLC,
Revenue,
144A,
2015,
5.375%,
7/01/45
............
1,400,000
1,423,193
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.5%,
12/01/33
.....................................
$
3,115,000
$
3,187,544
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.75%,
12/01/43
....................................
7,000,000
7,145,606
a
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/41
...............
925,000
872,210
a
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/51
...............
1,385,000
1,252,140
a
STREAM
Charter
School,
Revenue,
144A,
2020
B,
6.4%,
6/15/32
.............
865,000
815,674
University
of
La
Verne,
Revenue,
2017
A,
Refunding,
5%,
6/01/43
.............
5,000,000
5,221,090
a
California
Pollution
Control
Financing
Authority
,
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7%,
7/01/22
........................
3,500,000
2,100,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
13,000,000
7,800,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
11,500,000
6,900,000
d
CalPlant
I
LLC,
Revenue,
144A,
2020,
7.5%,
7/01/32
.......................
4,500,000
3,060,000
Poseidon
Resources
Channelside
LP,
Revenue,
144A,
2012,
5%,
11/21/45
......
19,965,000
19,993,065
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
6.75%,
12/01/28
..........
1,425,000
1,026,652
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
5,425,000
3,681,722
California
Public
Finance
Authority
,
a
Crossroads
Christian
Schools
Obligated
Group,
Revenue,
144A,
2020,
5%,
1/01/56
4,015,000
3,449,009
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
10/15/37
.......................................................
1,100,000
1,137,604
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
10/15/47
.......................................................
5,000,000
5,109,277
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/27
............................................
1,185,000
1,014,891
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/32
............................................
4,030,000
3,276,762
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/37
............................................
5,370,000
4,200,325
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/47
............................................
16,110,000
12,035,876
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/36
.......................................................
1,000,000
975,113
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/56
.......................................................
2,000,000
1,795,651
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
B-1,
Refunding,
3.125%,
5/15/29
........................................................
2,510,000
2,286,188
California
School
Finance
Authority
,
Alliance
for
College
Ready
Public
Schools
Obligated
Group,
Revenue,
2016
C,
5%,
7/01/46
........................................................
10,000,000
10,173,223
a
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/41
.......
500,000
422,786
a
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
.......
2,835,000
2,227,560
a
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
.......
3,675,000
2,752,890
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/35
........................................................
1,000,000
1,021,597
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/45
........................................................
1,100,000
1,113,360
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2016,
5%,
8/01/41
......
2,010,000
2,041,223
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2016,
Pre-Refunded,
5%,
8/01/41
........................................................
190,000
203,840
a
Citizens
of
the
World
Los
Angeles
Obligated
Group,
Revenue,
144A,
2022
A,
6.25%,
4/01/52
........................................................
2,000,000
2,036,061
a
Citizens
of
the
World
Los
Angeles
Obligated
Group,
Revenue,
144A,
2022
A,
6.375%,
4/01/62
.................................................
2,000,000
2,035,891
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/37
.......................................................
1,485,000
1,517,072
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
School
Finance
Authority,
(continued)
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/44
.......................................................
$
5,610,000
$
5,665,822
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/40
.....
500,000
509,400
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/50
.....
3,570,000
3,593,398
a
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/48
...............
1,000,000
977,265
a
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/56
...............
1,710,000
1,639,993
a
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/40
...........
225,000
227,581
a
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/50
...........
1,275,000
1,279,252
a
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/43
........................................................
2,000,000
2,022,255
a
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/49
........................................................
5,750,000
5,792,898
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/35
.
2,525,000
2,581,617
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/45
.
3,500,000
3,541,556
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/38
.
1,000,000
1,026,631
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/48
.
1,750,000
1,770,205
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
4%,
6/01/31
.....................
250,000
238,243
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/41
.....................
435,000
432,872
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/51
.....................
600,000
582,150
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/61
.....................
1,320,000
1,242,653
a
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
4.5%,
7/01/32
.
625,000
613,284
a
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5%,
7/01/42
...
2,140,000
2,095,052
a
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5%,
7/01/52
...
3,175,000
3,041,969
a
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5.125%,
7/01/62
8,125,000
7,696,764
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/35
1,200,000
1,223,686
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/45
1,675,000
1,692,098
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
7/01/47
1,500,000
1,520,272
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/39
1,000,000
1,031,684
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/54
3,300,000
3,339,136
a
Larchmont
Schools,
Revenue,
144A,
2018
A,
5%,
6/01/55
...................
2,050,000
2,067,070
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
3%,
7/01/30
.....
365,000
326,725
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/45
.....
825,000
821,605
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/55
.....
1,235,000
1,200,003
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/31
............
1,000,000
935,544
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/36
............
1,670,000
1,486,076
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/51
............
16,730,000
13,308,573
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/55
............
1,400,000
1,090,050
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/30
........
1,500,000
1,524,494
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/37
........
2,000,000
1,969,009
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/47
........
1,975,000
1,880,477
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/52
........
1,340,000
1,260,893
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
6/01/34
....
750,000
756,569
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.125%,
6/01/47
.
845,000
839,656
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.25%,
6/01/52
..
980,000
980,906
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/30
....
315,000
324,084
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/37
....
360,000
361,935
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/47
....
1,720,000
1,679,298
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/31
........................................................
260,000
252,465
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/41
........................................................
600,000
524,783
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/51
........................................................
800,000
657,219
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/61
........................................................
1,300,000
1,017,256
a
Summit
Public
Schools
Obligated
Group,
Revenue,
144A,
2017,
5%,
6/01/47
.....
1,500,000
1,512,324
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
State
University
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
11/01/47
...........
$
14,980,000
$
15,904,001
California
Statewide
Communities
Development
Authority
,
Revenue,
2015,
Refunding,
5%,
9/02/40
.................................
2,230,000
2,295,580
Special
Assessment,
2016
A,
5%,
9/02/36
...............................
1,035,000
1,082,312
Special
Assessment,
2016
A,
5%,
9/02/45
...............................
2,250,000
2,319,927
Special
Assessment,
2017
A,
4%,
9/02/27
...............................
1,545,000
1,561,131
Special
Assessment,
2017
A,
5%,
9/02/37
...............................
1,975,000
2,079,370
Special
Assessment,
2017
A,
5%,
9/02/46
...............................
2,460,000
2,545,591
Special
Assessment,
2017
B,
5%,
9/02/37
...............................
3,260,000
3,439,867
Special
Assessment,
2017
B,
5%,
9/02/47
...............................
2,520,000
2,616,677
Special
Assessment,
2017
C,
5%,
9/02/37
...............................
4,605,000
4,848,355
Special
Assessment,
2018
A,
5%,
9/02/38
...............................
2,150,000
2,284,702
Special
Assessment,
2018
A,
5%,
9/02/47
...............................
3,745,000
3,914,038
Special
Assessment,
2018
B,
5%,
9/02/38
...............................
2,760,000
2,932,919
Special
Assessment,
2018
B,
5%,
9/02/43
...............................
4,690,000
4,915,694
Special
Assessment,
2018
B,
5%,
9/02/48
...............................
4,605,000
4,797,915
Special
Assessment,
2018
C,
5%,
9/02/38
...............................
6,000,000
6,362,704
Special
Assessment,
2018
C,
5%,
9/02/48
...............................
6,605,000
6,863,948
Special
Assessment,
2019
A,
5%,
9/02/39
...............................
1,600,000
1,705,315
Special
Assessment,
2019
A,
5%,
9/02/44
...............................
940,000
986,002
Special
Assessment,
2019
A,
5%,
9/02/48
...............................
945,000
986,782
Special
Assessment,
2019
B,
5%,
9/02/39
...............................
1,060,000
1,128,436
Special
Assessment,
2019
C,
5%,
9/02/39
...............................
850,000
906,485
Special
Assessment,
2020
A,
5%,
9/02/40
...............................
1,250,000
1,300,046
Special
Assessment,
2020
A,
4%,
9/02/50
...............................
900,000
772,188
Special
Assessment,
2020
A,
5%,
9/02/50
...............................
1,000,000
1,021,594
Special
Assessment,
2020
B,
4%,
9/02/40
...............................
565,000
514,711
Special
Assessment,
2020
B,
4%,
9/02/50
...............................
695,000
595,624
Special
Assessment,
2021
A,
4%,
9/02/41
...............................
1,000,000
890,618
Special
Assessment,
2021
A,
4%,
9/02/51
...............................
3,295,000
2,760,422
Special
Assessment,
2021
B,
4%,
9/02/41
...............................
3,285,000
2,981,011
Special
Assessment,
2021
B,
4%,
9/02/51
...............................
5,150,000
4,441,486
Special
Assessment,
2021
C-1,
4%,
9/02/41
..............................
2,500,000
2,274,500
Special
Assessment,
2021
C-1,
4%,
9/02/51
..............................
3,700,000
3,170,541
Special
Assessment,
2021
C-2,
5%,
9/02/41
..............................
3,375,000
2,860,366
Special
Assessment,
2021
C-2,
5.5%,
9/02/51
............................
3,575,000
2,773,672
e
Special
Assessment,
2022
B,
5%,
9/02/42
...............................
3,000,000
2,972,907
e
Special
Assessment,
2022
B,
5%,
9/02/52
...............................
3,000,000
2,907,913
Aldersly
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/15/32
...........
750,000
752,764
Aldersly
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/15/40
...........
1,010,000
998,240
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/35
.........
2,000,000
2,073,379
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/45
.........
3,810,000
3,906,008
California
Baptist
University,
Revenue,
2014
A,
5.125%,
11/01/23
..............
210,000
213,091
California
Baptist
University,
Revenue,
2014
A,
6.125%,
11/01/33
..............
1,565,000
1,610,821
California
Baptist
University,
Revenue,
2014
A,
6.375%,
11/01/43
..............
4,035,000
4,153,338
a
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/32
...
1,135,000
1,193,368
a
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/41
...
1,875,000
1,950,944
Cedars-Sinai
Medical
Center
Obligated
Group,
Revenue,
2014
B,
Pre-Refunded,
5%,
7/01/44
........................................................
4,450,000
4,665,753
Cedars-Sinai
Medical
Center
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
.....
6,000,000
5,718,083
CHF-Irvine
LLC,
Revenue,
2016,
Refunding,
5%,
5/15/40
....................
1,500,000
1,537,559
CHF-Irvine
LLC,
Revenue,
2017,
5%,
5/15/42
............................
710,000
730,913
Community
Facilities
District
No.
2015-01,
Special
Tax,
2020,
4%,
9/01/40
.......
700,000
647,281
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2016
A,
Refunding,
5%,
9/01/36
.....................................
1,000,000
1,034,889
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2016
A,
Refunding,
5%,
9/01/45
.....................................
1,500,000
1,537,763
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/37
................................................
$
1,225,000
$
1,294,266
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/47
................................................
2,000,000
2,075,772
Community
Facilities
District
No.
2016-02,
Special
Tax,
2016
A,
5%,
9/01/46
......
10,945,000
11,292,217
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/39
.......
1,230,000
1,317,149
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/49
.......
3,000,000
3,151,139
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/40
.......
3,845,000
3,542,146
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/50
.......
3,845,000
3,334,903
Community
Facilities
District
No.
2016-02,
Special
Tax,
2022,
5.5%,
9/01/52
......
7,500,000
7,584,367
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/39
.......
1,735,000
1,841,343
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/48
.......
2,000,000
2,089,137
Community
Facilities
District
No.
2020-01,
Special
Tax,
2021,
4%,
9/01/41
.......
560,000
512,399
Community
Facilities
District
No.
2020-02,
Special
Tax,
2021,
4%,
9/01/41
.......
730,000
668,452
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2013
C,
Pre-
Refunded,
5.625%,
12/01/36
........................................
8,000,000
8,313,638
Enloe
Medical
Center,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
8/15/38
........................................................
6,000,000
6,341,917
Eskaton
Properties,
Inc.
Obligated
Group,
Revenue,
2012,
5.25%,
11/15/34
......
4,350,000
4,354,701
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/46
12,735,000
12,456,878
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/34
.........
375,000
380,331
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/39
.........
950,000
952,624
a
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5%,
12/01/41
...................................................
1,245,000
1,238,131
a
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
52,005,000
52,064,988
Marin
General
Hospital
Obligated
Group,
Revenue,
2018
A,
4%,
8/01/45
........
1,500,000
1,299,747
Methodist
Hospital
of
Southern
California
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
1/01/48
............................................
5,000,000
5,099,725
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/39
.............
4,325,000
4,165,598
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
8,000,000
7,394,105
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/52
.............
2,635,000
2,412,912
Capistrano
Unified
School
District
,
Community
Facilities
District
No.
2005-1
,
Special
Tax
,
2013
,
Pre-Refunded
,
5.5
%
,
9/01/43
................................
4,955,000
5,107,943
Casitas
Municipal
Water
District
,
Community
Facilities
District
No.
2013-1
OJAI,
Special
Tax,
2017
B,
BAM
Insured,
5%,
9/01/42
....................................................
8,000,000
8,526,030
Community
Facilities
District
No.
2013-1
OJAI,
Special
Tax,
2017
B,
BAM
Insured,
5.25%,
9/01/47
..................................................
5,000,000
5,354,730
Centinela
Valley
Union
High
School
District
,
GO
,
2014
C
,
Pre-Refunded
,
5
%
,
8/01/35
4,195,000
4,403,159
Central
School
District
,
GO,
A,
Pre-Refunded,
5%,
8/01/44
.....................................
7,375,000
7,933,806
GO,
C,
Pre-Refunded,
5%,
8/01/44
....................................
3,615,000
3,888,910
a
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2,
Special
Tax,
144A,
2022
A,
4%,
9/01/52
..............................................
5,270,000
4,631,312
e
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
A,
5%,
9/01/37
....................................................
385,000
393,847
e
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
A,
5%,
9/01/52
....................................................
2,000,000
1,959,433
e
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
B,
5%,
9/01/52
....................................................
1,000,000
979,717
City
of
Beaumont
,
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019,
5%,
9/01/44
........
300,000
317,123
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019,
5%,
9/01/49
........
400,000
420,214
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Chino
,
Community
Facilities
District
No.
2003-3,
Special
Tax,
2015,
5%,
9/01/45
........
$
1,665,000
$
1,706,917
Community
Facilities
District
No.
2016-2,
Special
Tax,
2017,
5%,
9/01/42
........
1,535,000
1,603,035
City
of
Chula
Vista
,
Community
Facilities
District
No.
06-I
Improvement
Area
No.
1,
Special
Tax,
2018,
5%,
9/01/43
....................................................
1,000,000
1,050,272
Community
Facilities
District
No.
06-I
Improvement
Area
No.
1,
Special
Tax,
2018,
5%,
9/01/48
....................................................
1,185,000
1,237,174
City
of
Corona
,
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2018
A,
5%,
9/01/38
..................................................
1,200,000
1,261,753
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2018
A,
5%,
9/01/48
..................................................
1,000,000
1,038,336
City
of
Dana
Point
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2014,
Pre-Refunded,
5%,
9/01/38
........................................................
1,000,000
1,025,467
Community
Facilities
District
No.
2006-1,
Special
Tax,
2014,
Pre-Refunded,
5%,
9/01/45
........................................................
2,500,000
2,563,669
City
of
Dixon
,
Community
Facilities
District
No.
2013-1
Parklane
,
Special
Tax,
2019,
5%,
9/01/44
.
2,645,000
2,794,102
Community
Facilities
District
No.
2019-1
Homestead,
Special
Tax,
2020,
4%,
9/01/36
200,000
192,958
Community
Facilities
District
No.
2019-1
Homestead,
Special
Tax,
2020,
4%,
9/01/40
400,000
374,059
City
of
Fairfield
,
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019
A,
5%,
9/01/44
......
1,000,000
1,056,995
a
Community
Facilities
District
No.
2019-1,
Special
Tax,
144A,
2020
A,
5%,
9/01/35
..
1,000,000
1,068,113
a
Community
Facilities
District
No.
2019-1,
Special
Tax,
144A,
2020
A,
5%,
9/01/50
..
3,255,000
3,366,969
City
of
Fillmore
,
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/40
............
1,500,000
1,544,241
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/45
............
2,630,000
2,695,466
City
of
Fontana
,
Community
Facilities
District
No.
80,
Special
Tax,
2017,
5%,
9/01/46
...........
1,000,000
1,033,409
Community
Facilities
District
No.
81,
Special
Tax,
2018,
4%,
9/01/43
...........
1,000,000
915,033
City
of
Fullerton
,
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/34
............
1,075,000
1,089,518
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/44
............
2,450,000
2,471,896
City
of
Irvine
,
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/39
........
1,000,000
1,025,081
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/44
........
1,500,000
1,532,386
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/49
........
2,750,000
2,805,321
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
5%,
9/01/43
........
2,500,000
2,644,066
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
5%,
9/01/48
........
3,250,000
3,423,051
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
AGMC
Insured,
5%,
9/01/51
........................................................
1,250,000
1,336,598
City
of
La
Verne
,
Copacabana
Mobilehome
Park
,
Revenue
,
2014
,
Refunding
,
5
%
,
6/15/49
.........................................................
1,765,000
1,823,156
City
of
Long
Beach
,
Marina
System,
Revenue,
2015,
5%,
5/15/34
.............................
1,300,000
1,335,949
Marina
System,
Revenue,
2015,
5%,
5/15/40
.............................
3,500,000
3,563,378
Marina
System,
Revenue,
2015,
5%,
5/15/45
.............................
2,500,000
2,533,931
City
of
Los
Angeles
,
Department
of
Airports
,
Revenue
,
2019
D
,
4
%
,
5/15/44
.......
5,525,000
5,205,779
City
of
Murrieta
,
Community
Facilities
District
No.
2005-5
Golden
City
,
Special
Tax
,
2018
,
5
%
,
9/01/48
.................................................
3,740,000
3,906,686
City
of
Ontario
,
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/42
...........
1,000,000
1,044,322
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Ontario,
(continued)
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/47
...........
$
500,000
$
519,172
Community
Facilities
District
No.
31,
Special
Tax,
2017,
5%,
9/01/47
...........
1,100,000
1,141,675
City
of
Oroville
,
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/49
.........................
4,000,000
3,986,953
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/54
.........................
3,500,000
3,445,082
City
of
Palm
Desert
,
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
Refunding,
3%,
9/01/31
320,000
285,952
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/41
450,000
417,959
City
of
Rancho
Cordova
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2022,
5%,
9/01/51
........
1,200,000
1,217,111
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/40
....................................................
1,200,000
1,235,599
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/45
....................................................
1,250,000
1,281,115
City
of
Roseville
,
Baseline
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/51
........................................................
1,660,000
1,462,008
Creekview
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/40
....
630,000
665,651
Creekview
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/50
....
1,745,000
1,820,517
a
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/32
............................................
1,265,000
1,351,529
a
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/47
............................................
6,500,000
6,770,073
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5%,
9/01/36
........................................................
1,950,000
2,048,700
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5.5%,
9/01/46
........................................................
6,415,000
6,762,162
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/40
........................................................
575,000
540,411
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
........................................................
450,000
409,025
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/50
........................................................
1,000,000
889,719
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/39
........................................................
440,000
470,326
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
500,000
530,060
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
575,000
606,467
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/37
........................................................
350,000
335,540
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/41
........................................................
400,000
372,483
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/51
........................................................
1,295,000
1,146,113
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
3,230,000
3,410,065
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
........................................................
490,000
446,029
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/29
....
500,000
517,623
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/34
....
1,100,000
1,129,444
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/39
....
1,885,000
1,928,263
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/44
....
1,650,000
1,682,125
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
....
3,800,000
4,000,870
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Roseville,
(continued)
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/32
........................................................
$
1,120,000
$
1,171,754
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/33
........................................................
1,000,000
1,043,700
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,298,268
City
of
Sacramento
,
Greenbriar
Community
Facilities
District
No.
2018-03,
Special
Tax,
2021,
4%,
9/01/41
1,000,000
926,159
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/32
................................................
300,000
317,810
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/37
................................................
710,000
748,277
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/47
................................................
1,900,000
1,986,810
North
Natomas
Community
Facilities
District
No.
4,
Special
Tax,
2013
E,
Refunding,
5.25%,
9/01/33
..................................................
3,000,000
3,066,343
City
of
San
Clemente
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/40
........
1,745,000
1,796,767
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/46
........
2,445,000
2,505,024
City
of
San
Diego
,
Tobacco
Settlement
Revenue
Funding
Corp.
,
Revenue
,
2018
C
,
Refunding
,
4
%
,
6/01/32
.............................................
570,000
563,624
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
14,000,000
10,903,577
City
of
San
Mateo
,
Community
Facilities
District
No.
2008-1,
Special
Tax,
2012,
Refunding,
5.875%,
9/01/32
........................................................
1,500,000
1,500,000
Community
Facilities
District
No.
2008-1,
Special
Tax,
2012,
Refunding,
6%,
9/01/42
5,000,000
5,000,000
Community
Facilities
District
No.
2008-1,
Special
Tax,
2014,
Refunding,
5.375%,
9/01/38
........................................................
2,500,000
2,500,000
Community
Facilities
District
No.
2008-1,
Special
Tax,
2014,
Refunding,
5.5%,
9/01/44
........................................................
3,300,000
3,300,000
City
of
Santa
Paula
,
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/40
......
1,000,000
1,053,807
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
......
1,100,000
991,200
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/50
......
1,375,000
1,211,691
City
of
Simi
Valley
,
Assessment
District
No.
98-1
,
1915
Act,
Special
Assessment
,
1999
,
7.3
%
,
9/02/24
....................................................
650,000
661,368
City
of
Stockton
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.125
%
,
9/01/52
....................................
3,660,000
3,655,422
City
of
Vernon
,
Electric
System
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/01/35
........
1,440,000
1,533,128
City
of
Woodland
,
Community
Facilities
District
No.
2004-1,
Special
Tax,
2019,
5%,
9/01/44
........
1,475,000
1,546,849
Community
Facilities
District
No.
2004-1,
Special
Tax,
2019,
5%,
9/01/48
........
1,640,000
1,713,978
City
of
Yucaipa
,
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5%,
9/01/26
.
1,000,000
1,003,953
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5.375%,
9/01/30
........................................................
1,800,000
1,807,625
Clovis
Unified
School
District
,
GO,
2004
A,
NATL
Insured,
ETM,
Zero
Cpn
.,
8/01/27
.......................
1,205,000
1,056,465
GO,
2004
A,
NATL
Insured,
Zero
Cpn
.,
8/01/27
...........................
6,295,000
5,455,228
GO,
2004
A,
NATL
Insured,
Zero
Cpn
.,
8/01/28
...........................
3,000,000
2,509,760
a
CMFA
Special
Finance
Agency
,
Revenue,
Junior
Lien,
144A,
2022
A-2,
4.5%,
8/01/51
.......................
39,885,000
30,643,107
Solana
at
Grand,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
8/01/45
...........
13,980,000
10,960,200
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
a
CMFA
Special
Finance
Agency
I
,
Mix
at
CTR
City
(The)
,
Revenue
,
144A,
2021
A-T
,
5
%
,
4/01/41
.........................................................
$
7,875,000
$
7,559,020
a
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
22,280,000
17,623,576
Coachella
Valley
Unified
School
District
,
GO,
2012
D,
AGMC
Insured,
Zero
Cpn
.,
8/01/42
..........................
8,500,000
3,515,986
GO,
2012
D,
AGMC
Insured,
Zero
Cpn
.,
8/01/43
..........................
3,000,000
1,176,214
Corona-Norco
Unified
School
District
,
Community
Facilities
District
No.
05-1
,
Special
Tax
,
2016
,
Refunding
,
5
%
,
9/01/36
.....................................
500,000
523,791
Cotati-Rohnert
Park
Unified
School
District
,
GO
,
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
8/01/45
.........................................................
4,000,000
4,291,378
County
of
El
Dorado
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2018,
5%,
9/01/48
........
2,850,000
2,959,257
Community
Facilities
District
No.
2018-1
Bass
Lake
Hills,
Special
Tax,
2021,
4%,
9/01/40
........................................................
475,000
435,913
County
of
Imperial
,
Community
Facilities
District
No.
1998-1
,
Special
Tax
,
1999
,
LOC
BNP
Paribas
SA
,
6.5
%
,
9/01/31
.......................................
4,710,000
4,759,543
County
of
San
Bernardino
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
1,000,000
1,029,381
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/45
1,000,000
1,025,176
a
CSCDA
Community
Improvement
Authority
,
Crescent
(The),
Revenue,
144A,
2022
B,
5.5%,
7/01/59
.....................
16,000,000
14,194,285
Park
Crossing
Apartments,
Revenue,
144A,
2021
B,
4%,
12/01/48
.............
10,000,000
7,587,837
Theo
Apartments,
Revenue,
144A,
2021
B,
4%,
5/01/57
.....................
10,000,000
7,370,606
Wood
Creek
Apartments,
Revenue,
Sub.
Lien,
144A,
2021
B,
4%,
12/01/59
......
31,800,000
22,952,534
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue
,
2007
B
,
Refunding
,
5.85
%
,
12/15/47
........................................
4,450,000
4,453,539
Del
Mar
Race
Track
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
..........
2,000,000
2,000,874
Duarte
Redevelopment
Agency
,
Tax
Allocation
,
1999
,
ETM,
Zero
Cpn
.,
12/01/28
....
14,560,000
10,539,348
Dublin
Community
Facilities
District
No.
2015-1
,
Special
Tax,
2017,
5%,
9/01/37
.......................................
1,550,000
1,639,090
Special
Tax,
2017,
5%,
9/01/47
.......................................
4,500,000
4,678,722
Special
Tax,
2019,
5%,
9/01/39
.......................................
6,865,000
7,327,545
Special
Tax,
2019,
5%,
9/01/44
.......................................
3,425,000
3,615,936
El
Rancho
Unified
School
District
,
GO
,
2004
,
NATL
Insured
,
Zero
Cpn
.,
8/01/29
....
2,400,000
1,915,287
a
Elsinore
Valley
Municipal
Water
District
,
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/51
..
1,245,000
1,051,613
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4.5%,
9/01/51
2,500,000
2,135,554
f,g
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
FRN,
2019-ML06,
XCA,
1.105%,
7/25/35
................................
136,143,307
10,412,240
a
144A,
FRN,
2020-ML07,
XCA,
2.132%,
1/25/37
...........................
122,418,055
19,881,916
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19,
Special
Tax,
2017,
5%,
9/01/47
3,280,000
3,410,268
City
of
Folsom
Community
Facilities
District
No.
19,
Special
Tax,
2019,
5%,
9/01/49
1,825,000
1,916,943
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/33
530,000
566,880
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/38
850,000
903,381
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/48
1,675,000
1,764,188
City
of
Folsom
Community
Facilities
District
No.
21,
Special
Tax,
2019,
5%,
9/01/49
2,000,000
2,101,998
City
of
Folsom
Community
Facilities
District
No.
21,
Special
Tax,
2021,
4%,
9/01/50
300,000
264,369
City
of
Folsom
Community
Facilities
District
No.
23,
Special
Tax,
2020,
4%,
9/01/40
1,245,000
1,167,178
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
Zero
Cpn
.,
1/15/42
..........................
75,000,000
29,162,302
Revenue,
2013
B-1,
Refunding,
3.95%,
1/15/53
...........................
25,000,000
22,722,005
Revenue,
2013
B-2,
Refunding,
3.5%,
1/15/53
............................
17,500,000
14,608,981
Revenue,
2015
A,
Refunding,
Zero
Cpn
.,
1/15/33
..........................
19,000,000
12,253,820
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Foothill-Eastern
Transportation
Corridor
Agency,
(continued)
Revenue,
Senior
Lien,
2021
A,
Refunding,
4%,
1/15/46
.....................
$
41,479,000
$
39,181,126
Fremont
Community
Facilities
District
No.
1
,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
...............................
4,655,000
4,793,095
Special
Tax,
2015,
Refunding,
5%,
9/01/45
...............................
3,255,000
3,336,024
Golden
State
Tobacco
Securitization
Corp.
,
Revenue
,
2015
A
,
Pre-Refunded
,
5
%
,
6/01/45
.........................................................
12,630,000
13,516,900
Hanford
Joint
Union
High
School
District
,
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
...............................
3,635,000
2,569,345
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/33
...............................
3,705,000
2,494,880
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/35
...............................
4,120,000
2,513,547
Hartnell
Community
College
District
,
GO
,
2009
D
,
Zero
Cpn
.,
8/01/49
............
10,000,000
2,923,018
Imperial
Community
College
District
,
GO
,
2011
A
,
Pre-Refunded
,
AGMC
Insured
,
6.75
%
,
8/01/40
...................................................
3,500,000
3,917,930
Independent
Cities
Finance
Authority
,
Augusta
Communities
III
LLC,
Revenue,
2021,
Refunding,
4%,
11/15/56
........
8,160,000
6,023,607
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/44
.......
2,015,000
2,049,414
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/49
.......
4,800,000
4,875,943
Millennium
Housing
LLC,
Revenue,
2021,
Refunding,
3%,
5/15/56
.............
4,000,000
2,832,583
Millennium
Housing
of
California,
Revenue,
2019,
Refunding,
5%,
5/15/48
.......
3,000,000
3,106,345
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/45
.............
5,000,000
5,083,665
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/50
.............
4,900,000
4,973,233
Indio
Community
Facilities
District
No.
2004-3
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
.........................................................
1,180,000
1,224,957
Inland
Valley
Development
Agency
,
Tax
Allocation,
2014
A,
Refunding,
5.25%,
9/01/37
.........................
7,500,000
7,717,629
Tax
Allocation,
2014
A,
Refunding,
5%,
9/01/44
...........................
9,000,000
9,186,511
Irvine
Unified
School
District
,
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
A,
5%,
9/01/42
........
700,000
735,878
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
B,
5%,
9/01/42
........
1,000,000
1,051,254
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
B,
5%,
9/01/51
........
2,500,000
2,615,342
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
C,
5%,
9/01/47
........
1,000,000
1,047,536
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
D,
5%,
9/01/49
........
1,000,000
1,046,612
Community
Facilities
District
No.
09-1,
Special
Tax,
2018
A,
Refunding,
5%,
9/01/45
2,000,000
2,092,658
Community
Facilities
District
No.
09-1,
Special
Tax,
2018
A,
Refunding,
5%,
9/01/49
2,000,000
2,089,536
Jurupa
Public
Financing
Authority
,
Special
Tax,
2014
A,
Refunding,
5%,
9/01/42
.............................
2,220,000
2,294,688
Special
Tax,
2015
A,
Refunding,
5%,
9/01/43
.............................
4,000,000
4,202,175
Special
Tax,
Sub.
Lien,
2015
B,
Refunding,
5%,
9/01/40
.....................
4,000,000
4,117,524
Kaweah
Delta
Health
Care
District
Guild
,
Revenue
,
2015
B
,
5
%
,
6/01/40
..........
3,250,000
3,339,456
Lake
Elsinore
Public
Financing
Authority
,
City
of
Lake
Elsinore
Community
Facilities
District
No.
2003-2
,
Special
Tax
,
2014
A
,
Pre-Refunded
,
5.75
%
,
9/01/44
.........
3,240,000
3,347,944
Lake
Tahoe
Unified
School
District
,
GO
,
2012
,
Zero
Cpn
.,
8/01/40
...............
1,140,000
1,078,105
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2017,
5%,
9/01/47
........
4,000,000
4,155,203
Community
Facilities
District
No.
2014-1,
Special
Tax,
2019,
5%,
9/01/43
........
775,000
813,960
Community
Facilities
District
No.
2014-1,
Special
Tax,
2019,
5%,
9/01/48
........
2,500,000
2,611,421
Las
Virgenes
Unified
School
District
,
GO
,
2011
C
,
Zero
Cpn
.,
8/01/33
............
8,050,000
8,414,913
Lathrop
Financing
Authority
,
Special
Tax,
2013
A,
Refunding,
6%,
9/02/28
.............................
1,010,000
1,034,860
Special
Tax,
2013
A,
Refunding,
6%,
9/02/29
.............................
1,070,000
1,095,583
Special
Tax,
2013
A,
Refunding,
6%,
9/02/30
.............................
1,075,000
1,098,845
Special
Tax,
2013
A,
Refunding,
5.5%,
9/02/35
............................
3,670,000
3,724,281
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Lee
Lake
Public
Financing
Authority
,
Special
Tax,
Junior
Lien,
2013
B,
5.25%,
9/01/32
..........................
$
1,155,000
$
1,175,250
Special
Tax,
Junior
Lien,
2013
B,
5.375%,
9/01/35
.........................
805,000
818,584
Lemon
Grove
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2014
,
Refunding
,
AGMC
Insured
,
4
%
,
8/01/34
............................
1,000,000
1,041,172
Lemon
Grove
School
District
,
GO
,
2010
B
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/45
.....
6,500,000
6,133,319
Long
Beach
Bond
Finance
Authority
,
Revenue
,
2007
A
,
5
%
,
11/15/29
............
4,630,000
4,973,835
Los
Alamitos
Unified
School
District
,
COP,
2012,
Zero
Cpn
.,
8/01/34
.......................................
1,500,000
1,542,367
COP,
2012,
Zero
Cpn
.,
8/01/42
.......................................
4,500,000
4,546,455
Mendocino-Lake
Community
College
District
,
GO,
2011
B,
AGMC
Insured,
6.55%,
8/01/36
.............................
5,150,000
6,453,378
GO,
2011
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/40
...........................
7,500,000
8,232,016
Menifee
Union
School
District
,
Community
Facilities
District
No.
2011-1,
Special
Tax,
2018,
5%,
9/01/43
........
1,000,000
1,050,271
Community
Facilities
District
No.
2011-1,
Special
Tax,
2018,
5%,
9/01/48
........
1,500,000
1,566,853
Community
Facilities
District
No.
2011-1,
Special
Tax,
2019,
5%,
9/01/48
........
2,900,000
3,047,868
Middle
Fork
Project
Finance
Authority
,
Revenue,
2020,
Refunding,
5%,
4/01/34
.................................
1,100,000
1,183,846
Revenue,
2020,
Refunding,
5%,
4/01/35
.................................
1,150,000
1,233,004
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2015-2,
Special
Tax,
2019,
5%,
9/01/44
........
870,000
911,907
Community
Facilities
District
No.
2015-3,
Special
Tax,
2019,
4.125%,
9/01/48
.....
1,160,000
1,055,183
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
32,300,000
39,026,850
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue,
2017
A,
Refunding,
5%,
3/01/36
...............................
2,250,000
2,342,488
Revenue,
2017
A,
Refunding,
5%,
3/01/37
...............................
2,500,000
2,596,895
Revenue,
2017
A,
Refunding,
BAM
Insured,
4%,
3/01/42
....................
5,000,000
4,751,133
Oak
Park
Unified
School
District
,
GO
,
2011
A
,
7.1
%
,
8/01/38
...................
6,600,000
8,306,652
Oakdale
Public
Financing
Authority
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
.....
1,270,000
1,318,021
Oakley
Public
Finance
Authority
,
City
of
Oakley
Assessment
District
No.
2004-1,
Special
Assessment,
2012,
Pre-
Refunded,
5.3%,
9/02/34
..........................................
995,000
995,000
City
of
Oakley
Assessment
District
No.
2006-1,
Special
Assessment,
2014,
Refunding,
BAM
Insured,
5%,
9/02/36
.................................
1,500,000
1,559,989
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
1,553,271
County
of
Orange
Community
Facilities
District
No.
2015-1,
Special
Tax,
2015
A,
5.25%,
8/15/45
..................................................
4,880,000
5,045,622
County
of
Orange
Community
Facilities
District
No.
2017-1,
Special
Tax,
2018
A,
5%,
8/15/42
........................................................
6,230,000
6,556,214
County
of
Orange
Community
Facilities
District
No.
2017-1,
Special
Tax,
2018
A,
5%,
8/15/47
........................................................
10,000,000
10,464,125
Palomar
Health
,
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/38
.......................
5,000,000
4,639,944
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/47
.......................
6,000,000
5,237,236
Palomar
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/01/36
......
6,250,000
6,461,764
Palomar
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
11/01/42
......
5,000,000
5,124,795
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Paso
Robles
Joint
Unified
School
District
,
GO
,
2010
A
,
Zero
Cpn
.,
9/01/45
........
$
15,000,000
$
4,985,496
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
4,578,012
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
A,
Refunding,
5.375%,
9/01/33
........................................................
1,940,000
1,974,528
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
E,
Refunding,
4.25%,
9/01/38
........................................................
4,145,000
4,059,379
Community
Facilities
District
No.
2002-1,
Special
Tax,
2013
B,
Refunding,
5.25%,
9/01/33
........................................................
3,745,000
3,806,737
Community
Facilities
District
No.
2014-1,
Special
Tax,
2018
A,
4%,
9/01/48
......
2,530,000
2,250,905
Poway
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
A
,
Refunding
,
5
%
,
12/15/30
.....................................................
3,500,000
4,057,604
Poway
Unified
School
District
,
Community
Facilities
District
No.
15
,
Special
Tax
,
2016
,
5
%
,
9/01/46
......................................................
2,000,000
2,063,448
Redondo
Beach
Unified
School
District
,
GO
,
2011
E
,
6.2
%
,
8/01/31
..............
2,750,000
3,407,583
Richland
School
District
,
GO
,
2009
C
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
.........
22,000,000
5,651,428
Rio
Hondo
Community
College
District
,
GO
,
2010
C
,
Zero
Cpn
.,
8/01/42
..........
13,000,000
15,253,623
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
1,734,213
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/38
............................................
1,000,000
1,059,560
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/48
............................................
1,190,000
1,257,692
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
No
2003-1
Improvement
Area
No.
2,
Special
Tax,
2022,
5.75%,
9/01/52
..................................................
4,250,000
4,022,256
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
Refunding,
2.75%,
9/01/40
........................................................
2,080,000
1,528,662
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/45
2,905,000
2,514,626
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/34
.....
860,000
695,084
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/35
.....
925,000
732,393
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/41
........
1,250,000
1,116,999
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/46
........
1,500,000
1,289,675
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/51
........
1,355,000
1,142,704
Riverbank
Unified
School
District
,
GO,
2008
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/38
...........................
6,690,000
3,381,339
GO,
2008
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/43
...........................
8,750,000
3,399,865
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
1,548,917
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien
,
2013
B
,
Zero
Cpn
.,
6/01/43
.....................................................
7,500,000
2,660,905
Riverside
Public
Financing
Authority
,
Loc
Measure
A
Sales
Tax
,
COP
,
2013
,
AGMC
Insured
,
5
%
,
6/01/33
...............................................
4,280,000
4,353,767
RNR
School
Financing
Authority
,
Community
Facilities
District
No.
92-1
,
Special
Tax
,
2017
A
,
BAM
Insured
,
5
%
,
9/01/41
.....................................
3,000,000
3,172,871
Romoland
School
District
,
Community
Facilities
District
No.
2004-1,
Special
Tax,
2013,
5%,
9/01/36
........
1,500,000
1,519,238
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/35
4,690,000
4,859,245
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/38
3,000,000
3,096,643
Community
Facilities
District
No.
2006-1,
Special
Tax,
2017,
Refunding,
5%,
9/01/44
1,120,000
1,165,838
Community
Facilities
District
No.
91-1,
Special
Tax,
2017,
Refunding,
5%,
9/01/41
.
1,265,000
1,322,688
Rowland
Unified
School
District
,
GO,
2009
B,
Zero
Cpn
.,
8/01/34
.......................................
5,000,000
3,049,995
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Rowland
Unified
School
District,
(continued)
GO,
2009
B,
Zero
Cpn
.,
8/01/39
.......................................
$
15,000,000
$
7,234,871
GO,
2009
B,
Zero
Cpn
.,
8/01/42
.......................................
10,750,000
4,650,537
Sacramento
Area
Flood
Control
Agency
,
Natomas
Basin
Local
Assessment
District
,
Special
Assessment
,
2014
,
BAM
Insured
,
5
%
,
10/01/44
.....................
2,000,000
2,052,858
San
Bernardino
Community
College
District
,
GO,
2008
D,
Pre-Refunded,
5%,
8/01/45
................................
2,755,000
2,959,714
GO,
2008
D,
Pre-Refunded,
5%,
8/01/48
................................
3,760,000
4,039,391
GO,
2009
B,
Zero
Cpn
.,
8/01/44
.......................................
12,495,000
4,837,708
San
Diego
Unified
School
District
,
GO,
2009-1,
Pre-Refunded,
6%,
7/01/33
................................
10,000,000
10,657,491
GO,
2010
C,
Zero
Cpn
.,
7/01/47
.......................................
26,025,000
22,373,950
GO,
2012
E,
Zero
Cpn
.,
7/01/42
.......................................
6,940,000
5,000,941
GO,
2012
E,
Zero
Cpn
.,
7/01/47
.......................................
13,500,000
9,735,628
San
Francisco
City
&
County
Airport
Comm
-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/37
...............................
5,535,000
5,856,136
Revenue,
2019
A,
Refunding,
5%,
5/01/44
...............................
35,000,000
36,453,473
Revenue,
Second
Series,
2018
D,
5%,
5/01/43
...........................
10,000,000
10,369,643
Revenue,
Second
Series,
2019
E,
5%,
5/01/50
............................
10,000,000
10,358,268
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/23
..........................
1,000,000
964,800
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/26
..........................
3,000,000
2,509,675
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/31
..........................
6,000,000
3,929,705
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/43
..........................
16,500,000
5,950,560
Community
Facilities
District
No.
6,
Special
Tax,
2013
C,
Zero
Cpn
.,
8/01/43
......
10,000,000
2,952,859
Mission
Bay
South
Redevelopment
Area
Tax
Increment
Financing
District,
Tax
Allocation,
2014
A,
5%,
8/01/43
......................................
2,500,000
2,593,327
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn
.,
1/15/26
...............
19,475,000
17,285,992
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn
.,
1/15/32
...............
50,225,000
33,517,548
Revenue,
Junior
Lien,
ETM,
Zero
Cpn
.,
1/01/28
...........................
19,150,000
16,675,954
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/44
...................
35,000,000
35,861,546
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/49
...................
75,000,000
76,682,228
Santa
Barbara
Unified
School
District
,
GO
,
2011
A
,
Zero
Cpn
.,
8/01/36
...........
8,000,000
9,766,735
Santa
Margarita
Water
District
,
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
5.625%,
9/01/36
.....
2,875,000
2,929,027
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
5.625%,
9/01/43
.....
9,600,000
9,751,253
Santa
Paula
Utility
Authority
,
Revenue
,
2015
A
,
Pre-Refunded
,
5
%
,
2/01/40
........
5,105,000
5,427,874
Saugus
Union
School
District
,
Community
Facilities
District
No.
2006-1
,
Special
Tax,
Senior
Lien
,
2014
,
4.25
%
,
9/01/44
.....................................
2,500,000
2,364,427
Saugus/Hart
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2016,
Refunding,
5%,
9/01/41
1,250,000
1,292,707
Community
Facilities
District
No.
2006-1,
Special
Tax,
2016,
Refunding,
5%,
9/01/46
1,250,000
1,285,042
Saugus-Castaic
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
5.875%,
9/01/33
...
1,365,000
1,395,923
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
6%,
9/01/43
.......
3,375,000
3,435,460
Siskiyou
Union
High
School
District
,
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
15,015,000
3,878,637
St.
Helena
Unified
School
District
,
GO
,
2011
B
,
Zero
Cpn
.,
6/01/36
..............
10,000,000
11,172,170
Stockton
Community
Facilities
District
,
County
of
Stockton
Community
Facilities
District
No.
2018-2,
Special
Tax,
2020,
4%,
9/01/40
........................................................
1,580,000
1,454,261
County
of
Stockton
Community
Facilities
District
No.
2018-2,
Special
Tax,
2020,
4%,
9/01/45
........................................................
1,115,000
992,905
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Sulphur
Springs
Union
School
District
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2018,
5%,
9/01/43
........
$
1,410,000
$
1,468,919
Community
Facilities
District
No.
2006-1,
Special
Tax,
2018,
5%,
9/01/47
........
1,820,000
1,889,785
Susanville
School
District
,
GO
,
2010
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
.........
17,505,000
4,655,695
Tobacco
Securitization
Authority
of
Northern
California
,
Sacramento
County
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien
,
2021
B-2
,
2
,
Refunding
,
Zero
Cpn
.,
6/01/60
.........................................................
24,900,000
4,140,083
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
B,
Zero
Cpn
.,
6/01/46
........................................................
10,000,000
1,832,849
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
C,
Zero
Cpn
.,
6/01/46
........................................................
25,000,000
3,943,448
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-1,
Refunding,
5%,
6/01/48
............................................
10,305,000
10,454,343
Torrance
Unified
School
District
,
GO
,
2009
B-1
,
Zero
Cpn
.,
8/01/34
..............
5,640,000
3,242,529
Tracy
Community
Facilities
District
,
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/33
........................................................
1,610,000
1,711,535
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/38
........................................................
2,385,000
2,517,352
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/43
........................................................
5,750,000
5,989,328
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/48
........................................................
6,240,000
6,464,482
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2019,
5%,
9/01/44
........................................................
2,600,000
2,697,231
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2020,
4%,
9/01/45
........................................................
2,280,000
2,069,395
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2020,
4%,
9/01/50
........................................................
1,000,000
886,876
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation
,
2020
B
,
5
%
,
10/01/38
..................
550,000
577,872
Truckee-Donner
Public
Utility
District
,
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.75%,
9/01/29
........
2,945,000
2,779,750
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.8%,
9/01/35
........
4,475,000
4,103,688
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.2%,
9/01/25
........
2,490,000
2,392,025
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.25%,
9/01/30
........
4,990,000
4,527,466
Tustin
Community
Facilities
District
,
City
of
Tustin
Community
Facilities
District
No.
06-1,
Special
Tax,
2015
A,
Refunding,
5%,
9/01/37
....................................................
1,000,000
1,040,056
City
of
Tustin
Community
Facilities
District
No.
07-1,
Special
Tax,
2015
A,
Refunding,
5%,
9/01/37
....................................................
2,330,000
2,413,939
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/40
........................................................
750,000
772,250
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/45
........................................................
1,000,000
1,025,176
Val
Verde
Unified
School
District
,
Special
Tax,
2015,
Refunding,
5%,
9/01/29
...............................
3,200,000
3,337,587
Special
Tax,
2015,
Refunding,
5%,
9/01/37
...............................
2,000,000
2,056,729
Vallejo
Redevelopment
Agency
,
Tax
Allocation
,
2001
A
,
7
%
,
10/01/31
............
2,390,000
2,396,792
Victor
Elementary
School
District
,
GO,
2015
B,
5%,
8/01/42
............................................
5,455,000
5,683,489
Community
Facilities
District
No.
2005-1,
Special
Tax,
2018,
Refunding,
BAM
Insured,
5%,
9/01/46
..............................................
1,385,000
1,481,037
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Victor
Valley
Community
College
District
,
GO
,
2008
C
,
Zero
Cpn
.,
6/01/49
.........
$
11,940,000
$
3,502,406
Washington
Township
Health
Care
District
,
Revenue,
2017
B,
Refunding,
4%,
7/01/35
...............................
2,000,000
1,911,948
Revenue,
2017
B,
Refunding,
4%,
7/01/36
...............................
1,900,000
1,781,825
Westside
Union
School
District
,
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/46
........
360,000
318,195
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/51
........
500,000
432,219
2,439,466,188
Florida
0.3%
a,c
Florida
Development
Finance
Corp.
,
Brightline
Trains
Florida
LLC
,
Revenue
,
144A,
2022
A
,
Refunding
,
Mandatory
Put
,
7.25
%
,
10/03/23
.......................
7,250,000
7,102,406
Virgin
Islands
0.2%
Matching
Fund
Special
Purpose
Securitization
Corp.
,
United
States
Virgin
Islands
Federal
Excise
Tax
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
10/01/39
...............
5,500,000
5,709,848
Wisconsin
0.2%
a
Public
Finance
Authority
,
Gulf
Coast
Portfolio
Obligated
Group
,
Revenue
,
144A,
2021
,
5.25
%
,
12/01/22
...................................................
6,300,000
6,257,578
U.S.
Territories
7.1%
Guam
1.0%
Guam
Government
Waterworks
Authority
,
Revenue,
2014
A,
Refunding,
5%,
7/01/35
...............................
1,000,000
1,022,572
Revenue,
2016,
5%,
7/01/36
.........................................
3,550,000
3,699,974
Revenue,
2016,
5%,
1/01/46
.........................................
5,250,000
5,404,216
Revenue,
2017,
Refunding,
5%,
7/01/36
.................................
3,455,000
3,620,224
Revenue,
2017,
Refunding,
5%,
7/01/37
.................................
3,000,000
3,138,662
Guam
Power
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/40
..............
4,750,000
4,941,718
Territory
of
Guam
,
Revenue,
2021
F,
Refunding,
4%,
1/01/36
...............................
250,000
235,232
Revenue,
2021
F,
Refunding,
4%,
1/01/42
...............................
3,125,000
2,771,600
Hotel
Occupancy
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/01/40
.............
3,000,000
3,024,810
27,859,008
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
3,885,000
3,779,201
Puerto
Rico
6.0%
Commonwealth
of
Puerto
Rico
,
g
GO,
FRN,
Zero
Cpn
.,
11/01/43
........................................
3,663,920
1,891,499
GO,
2022
A-1,
5.25%,
7/01/23
........................................
409,759
415,963
GO,
2022
A-1,
5.375%,
7/01/25
.......................................
817,244
843,451
GO,
2022
A-1,
5.625%,
7/01/27
.......................................
809,842
859,408
GO,
2022
A-1,
5.625%,
7/01/29
.......................................
796,704
858,073
GO,
2022
A-1,
5.75%,
7/01/31
........................................
773,832
848,946
GO,
2022
A-1,
4%,
7/01/33
..........................................
733,796
687,579
GO,
2022
A-1,
4%,
7/01/35
..........................................
659,584
606,457
GO,
2022
A-1,
4%,
7/01/37
..........................................
566,098
507,277
GO,
2022
A-1,
4%,
7/01/41
..........................................
769,676
672,168
GO,
2022
A-1,
4%,
7/01/46
..........................................
16,300,453
13,842,557
GO,
2022
A-1,
Zero
Cpn
.,
7/01/24
.....................................
244,159
225,663
GO,
2022
A-1,
Zero
Cpn
.,
7/01/33
.....................................
944,324
537,412
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
$
19,908,446
$
17,818,059
Puerto
Rico
Electric
Power
Authority
,
d
Revenue,
1,
10%,
1/01/21
...........................................
1,768,493
1,534,168
d
Revenue,
2012
A,
5%,
7/01/29
........................................
10,000,000
8,125,000
d
Revenue,
2013
A,
7%,
7/01/33
........................................
25,000,000
21,187,500
d
Revenue,
2013
A,
6.75%,
7/01/36
.....................................
11,735,000
9,916,075
d
Revenue,
2013
A,
7%,
7/01/43
........................................
5,000,000
4,225,000
d
Revenue,
2016
A-4,
10%,
7/01/19
.....................................
1,601,766
1,389,532
d
Revenue,
2016
B-4,
10%,
7/01/19
.....................................
1,601,765
1,389,531
d
Revenue,
E-2,
10%,
7/01/21
.........................................
1,768,493
1,534,168
d
Revenue,
E-3,
10%,
1/01/22
.........................................
600,000
520,500
d
Revenue,
E-4,
10%,
7/01/22
.........................................
600,000
520,500
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,800,000
1,828,051
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AMBAC
Insured,
5.25%,
7/01/30
...............
245,000
247,409
Revenue,
2007
N,
Refunding,
AMBAC
Insured,
5.25%,
7/01/31
...............
1,170,000
1,181,853
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
330,000
334,945
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,675,000
1,691,083
Revenue,
L,
Refunding,
AMBAC
Insured,
5.25%,
7/01/38
....................
5,030,000
5,025,136
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
3,300,000
3,309,855
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
4,500,000
4,662,753
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
100,000
99,999
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
19,195,000
18,356,225
Sales
Tax,
Revenue,
A-1,
Zero
Cpn
.,
7/01/51
.............................
67,945,000
14,490,562
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
11,463,000
11,156,593
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
12,300,000
11,501,752
164,842,702
Total
U.S.
Territories
....................................................................
196,480,911
Total
Municipal
Bonds
(Cost
$2,684,980,261)
...................................
2,655,016,931
Total
Long
Term
Investments
(Cost
$2,749,657,918)
.............................
2,716,544,150
a
a
a
a
a
Short
Term
Investments
0.5%
Municipal
Bonds
0.5%
California
0.5%
h
Irvine
Ranch
Water
District
,
Special
Assessment
,
2009
B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
0.77
%
,
10/01/41
..................................
600,000
600,000
h
Southern
California
Public
Power
Authority
,
Revenue
,
2020-3
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.95
%
,
7/01/36
...........................
8,500,000
8,500,000
h
University
of
California
,
Revenue,
2013
AL-3,
Refunding,
Daily
VRDN
and
Put,
0.8%,
5/15/48
...........
4,000,000
4,000,000
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
California
(continued)
h
University
of
California,
(continued)
Revenue,
2013
AL-4,
Refunding,
Daily
VRDN
and
Put,
0.85%,
5/15/48
..........
$
1,000,000
$
1,000,000
14,100,000
Total
Municipal
Bonds
(Cost
$14,100,000)
......................................
14,100,000
Total
Short
Term
Investments
(Cost
$14,100,000
)
................................
14,100,000
a
Total
Investments
(Cost
$2,763,757,918)
99.2%
..................................
$2,730,644,150
Other
Assets,
less
Liabilities
0.8%
.............................................
21,262,208
Net
Assets
100.0%
...........................................................
$2,751,906,358
See
Abbreviations
on
page
44
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2022,
the
aggregate
value
of
these
securities
was
$636,740,516,
representing
23.1%
of
net
assets.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
See
Note
7
regarding
credit
risk
and
defaulted
securities.
e
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
f
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.
g
The
coupon
rate
shown
represents
the
rate
at
period
end.
h
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,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,763,757,918
Value
-
Unaffiliated
issuers
..................................................................
$2,730,644,150
Cash
....................................................................................
8,672,111
Receivables:
Investment
securities
sold
...................................................................
463,545
Capital
shares
sold
........................................................................
2,627,287
Interest
.................................................................................
32,724,760
Total
assets
..........................................................................
2,775,131,853
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
9,392,282
Capital
shares
redeemed
...................................................................
10,608,327
Management
fees
.........................................................................
1,103,987
Distribution
fees
..........................................................................
299,328
Transfer
agent
fees
........................................................................
395,088
Distributions
to
shareholders
.................................................................
1,340,640
Accrued
expenses
and
other
liabilities
...........................................................
85,843
Total
liabilities
.........................................................................
23,225,495
Net
assets,
at
value
.................................................................
$2,751,906,358
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$2,910,825,924
Total
distributable
earnings
(losses)
.............................................................
(158,919,566)
Net
assets,
at
value
.................................................................
$2,751,906,358
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
August
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
Franklin
California
High
Yield
Municipal
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$635,299,668
Shares
outstanding
........................................................................
63,634,078
Net
asset
value
per
share
a
..................................................................
$9.98
Maximum
offering
price
per
share
(net
asset
value
per
share
96.25%)
................................
$10.37
Class
A1:
Net
assets,
at
value
.......................................................................
$956,913,590
Shares
outstanding
........................................................................
96,035,547
Net
asset
value
per
share
a
..................................................................
$9.96
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.35
Class
C:
Net
assets,
at
value
.......................................................................
$137,744,115
Shares
outstanding
........................................................................
13,717,431
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$10.04
Class
R6:
Net
assets,
at
value
.......................................................................
$52,825,924
Shares
outstanding
........................................................................
5,283,777
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.00
Advisor
Class:
Net
assets,
at
value
.......................................................................
$969,123,061
Shares
outstanding
........................................................................
97,042,287
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.99
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
August
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Franklin
California
High
Yield
Municipal
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$63,622,993
Expenses:
Management
fees
(Note
3
a
)
...................................................................
6,768,963
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
813,327
Class
A1
...............................................................................
518,008
Class
C
................................................................................
500,992
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
237,066
Class
A1
...............................................................................
376,275
Class
C
................................................................................
55,882
Class
R6
...............................................................................
9,335
Advisor
Class
............................................................................
383,653
Custodian
fees
(Note
4
)
......................................................................
8,670
Reports
to
shareholders
fees
..................................................................
23,370
Registration
and
filing
fees
....................................................................
37,723
Professional
fees
...........................................................................
51,700
Trustees'
fees
and
expenses
..................................................................
15,001
Federal
and
state
income
taxes
................................................................
682,395
Other
....................................................................................
39,624
Total
expenses
.........................................................................
10,521,984
Expense
reductions
(Note
4
)
...............................................................
(9,928)
Expenses
waived/paid
by
affiliates
(Note
3f)
....................................................
(1,906)
Net
expenses
.........................................................................
10,510,150
Net
investment
income
................................................................
53,112,843
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(19,043,259)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(289,508,139)
Net
realized
and
unrealized
gain
(loss)
............................................................
(308,551,398)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(255,438,555)
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
Franklin
California
High
Yield
Municipal
Fund
Six
Months
Ended
August
31,
2022
(unaudited)
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
..............................
$53,112,843
$75,975,092
$98,385,111
Net
realized
gain
(loss)
..............................
(19,043,259)
(4,994,860)
4,488,516
Net
change
in
unrealized
appreciation
(depreciation)
........
(289,508,139)
(144,665,316)
180,246,844
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...................................
(255,438,555)
(73,685,084)
283,120,471
Distributions
to
shareholders:
Class
A
..........................................
(10,540,506)
(14,368,059)
(16,106,026)
Class
A1
.........................................
(17,573,777)
(26,936,818)
(40,737,185)
Class
C
..........................................
(2,167,873)
(3,543,177)
(6,218,059)
Class
R6
.........................................
(968,658)
(1,296,688)
(1,074,605)
Advisor
Class
.....................................
(18,399,187)
(26,489,741)
(33,172,717)
Total
distributions
to
shareholders
.......................
(49,650,001)
(72,634,483)
(97,308,592)
Capital
share
transactions:
(Note
2
)
Class
A
..........................................
(12,903,644)
126,994,699
162,703,393
Class
A1
.........................................
(102,215,690)
(36,920,658)
(106,323,113)
Class
C
..........................................
(26,199,252)
(35,548,107)
(44,827,945)
Class
R6
.........................................
(1,958,373)
17,826,731
16,640,109
Advisor
Class
.....................................
(106,795,536)
125,220,782
150,016,195
Total
capital
share
transactions
.........................
(250,072,495)
197,573,447
178,208,639
Net
increase
(decrease)
in
net
assets
................
(555,161,051)
51,253,880
364,020,518
Net
assets:
Beginning
of
period
..................................
3,307,067,409
3,255,813,529
2,891,793,011
End
of
period
.......................................
$2,751,906,358
$3,307,067,409
$3,255,813,529
a
For
the
period
June
1,
2021
to
February
28,
2022.
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
36
franklintempleton.com
Semiannual
Report
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),
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
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.
Subsequent
to
May
31,
2021,
the
Fund’s
fiscal
year
end
changed
to
February
28.
The
following
summarizes
t
he 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
Board,
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
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.
Debt
securities
generally
trade
in
the
over-the-counter
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,
book
values,
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
Basis
The
Fund
purchases
securities
on
a
when-issued
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
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,
2022, the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
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.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from realized
capital
gains
and
other
distributions,
if
any,
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.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Fund
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
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.
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.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Income
Taxes
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
August
31,
2022,
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,
2022
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
14,209,328
$144,680,902
Shares
issued
in
reinvestment
of
distributions
..........
897,422
9,142,317
Shares
redeemed
...............................
(16,300,589)
(166,726,863)
Net
increase
(decrease)
..........................
(1,193,839)
$(12,903,644)
Class
A1
Shares:
Shares
sold
...................................
3,705,889
$37,726,203
Shares
issued
in
reinvestment
of
distributions
..........
1,465,595
14,909,803
Shares
redeemed
...............................
(15,212,125)
(154,851,696)
Net
increase
(decrease)
..........................
(10,040,641)
$(102,215,690)
Class
C
Shares:
Shares
sold
...................................
592,771
$6,097,018
Shares
issued
in
reinvestment
of
distributions
..........
198,199
2,032,066
Shares
redeemed
a
..............................
(3,336,619)
(34,328,336)
Net
increase
(decrease)
..........................
(2,545,649)
$(26,199,252)
Class
R6
Shares:
Shares
sold
...................................
1,323,241
$13,517,886
Shares
issued
in
reinvestment
of
distributions
..........
72,519
739,661
Shares
redeemed
...............................
(1,584,830)
(16,215,920)
Net
increase
(decrease)
..........................
(189,070)
$(1,958,373)
Advisor
Class
Shares:
Shares
sold
...................................
36,886,416
$377,467,669
Shares
issued
in
reinvestment
of
distributions
..........
1,435,465
14,636,446
Shares
redeemed
...............................
(48,954,714)
(498,899,651)
Net
increase
(decrease)
..........................
(10,632,833)
$(106,795,536)
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
19,079,730
$218,660,111
21,760,785
$244,893,970
Shares
issued
in
reinvestment
of
distributions
..........
1,082,993
12,336,511
1,202,763
13,544,506
Shares
redeemed
...............................
(9,181,585)
(104,001,923)
(8,507,539)
(95,735,083)
Net
increase
(decrease)
..........................
10,981,138
$126,994,699
14,456,009
$162,703,393
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
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:
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
Shares
Amount
Shares
Amount
Class
A1
Shares:
Shares
sold
...................................
4,157,830
$47,593,990
9,548,284
$107,177,683
Shares
issued
in
reinvestment
of
distributions
..........
2,030,468
23,104,504
3,056,285
34,312,254
Shares
redeemed
...............................
(9,477,231)
(107,619,152)
(22,083,505)
(247,813,050)
Net
increase
(decrease)
..........................
(3,288,933)
$(36,920,658)
(9,478,936)
$(106,323,113)
Class
C
Shares:
Shares
sold
...................................
1,629,237
$18,827,328
2,578,272
$29,197,094
Shares
issued
in
reinvestment
of
distributions
..........
293,501
3,368,105
496,008
5,610,813
Shares
redeemed
a
..............................
(5,003,937)
(57,743,540)
(7,055,461)
(79,635,852)
Net
increase
(decrease)
..........................
(3,081,199)
$(35,548,107)
(3,981,181)
$(44,827,945)
Class
R6
Shares:
Shares
sold
...................................
2,223,594
$25,583,745
2,372,612
$26,871,853
Shares
issued
in
reinvestment
of
distributions
..........
80,939
922,963
81,476
918,581
Shares
redeemed
...............................
(759,681)
(8,679,977)
(996,498)
(11,150,325)
Net
increase
(decrease)
..........................
1,544,852
$17,826,731
1,457,590
$16,640,109
Advisor
Class
Shares:
Shares
sold
...................................
23,866,103
$272,922,712
31,248,775
$352,380,497
Shares
issued
in
reinvestment
of
distributions
..........
1,845,042
21,029,168
2,232,963
25,149,727
Shares
redeemed
...............................
(14,851,620)
(168,731,098)
(20,224,098)
(227,514,029)
Net
increase
(decrease)
..........................
10,859,525
$125,220,782
13,257,640
$150,016,195
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
b
For
the
period
June
1,
2021
to
February
28,
2022.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
August
31,
2022,
the
annualized
gross
effective
investment
management
fee
rate
was
0.459%
of
the
Fund’s
average
daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund’s
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
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.
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
Reimbursement
Plans:
Class
A
..................................................................................
0.25%
Class
A1
.................................................................................
0.15%
Compensation
Plans:
Class
C
..................................................................................
0.65%
3.
Transactions
with
Affiliates
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
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
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
August
31,
2022,
the
Fund
paid
transfer
agent
fees
of
$1,062,211,
of
which
$391,876
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Effective
April
1,
2022,
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,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund’s
fiscal
year
end.
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2023.
Investor
Services
may
discontinue
this
waiver
in
the
future.
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,
2022,
these
purchases
and
sales
transactions
aggregated
$198,701,413
and
$159,204,249,
respectively,
with
net
realized
losses
of
$2,629,509.
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,
2022,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$10,579
CDSC
retained
..............................................................................
$269,600
3.
Transactions
with
Affiliates
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
28,
2022,
the
capital
loss
carryforwards
were
as
follows:
At
August
31,
2022,
the
cost
of
investment
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,
bond
discounts
and
premiums
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities) for
the
period
ended
August
31,
2022,
aggregated
$278,590,147
and
$470,324,247
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
August
31,
2022,
the
Fund
had
35.2%
of
its
portfolio
invested
in
high
yield
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
August
31,
2022,
the
aggregate
value
of
these
securities
was
$70,201,974,
representing
2.55%
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.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$92,597,117
Long
term
................................................................................
17,416,556
Total
capital
loss
carryforwards
...............................................................
$110,013,673
Cost
of
investments
..........................................................................
$2,771,204,487
Unrealized
appreciation
........................................................................
$104,357,064
Unrealized
depreciation
........................................................................
(144,917,401)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(40,560,337)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
9.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
10.
Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
11.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
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,
2022,
the Fund
did
not
use
the
Global
Credit
Facility.
12.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
44
franklintempleton.com
Semiannual
Report
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,
2022,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
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.
13.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
:
Commercial
Services
&
Supplies
...........
$
—
$
9,504,542
$
—
$
9,504,542
Diversified
Consumer
Services
............
—
42,125,877
—
42,125,877
Electric
Utilities
........................
—
—
9,896,800
9,896,800
Municipal
Bonds
.........................
—
2,655,016,931
—
2,655,016,931
Short
Term
Investments
...................
—
14,100,000
—
14,100,000
Total
Investments
in
Securities
...........
$—
$2,720,747,350
$9,896,800
$2,730,644,150
Selected
Portfolio
1915
Act
Improvement
Bond
Act
of
1915
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
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.
12.
Fair
Value
Measurements
(continued)
Franklin
Municipal
Securities
Trust
Shareholder
Information
45
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
Fund
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
for
the
Franklin
Templeton
and
Legg
Mason
Funds
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2022,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2021.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Municipal
Securities
Trust
Shareholder
Information
46
franklintempleton.com
Semiannual
Report
Quarterly
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
MUN
S
10/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Franklin
California
High
Yield
Municipal
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC.
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4. Principal Accountant Fees and Services.
N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN
MUNICIPAL SECURITIES TRUST
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date October 28, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date October 28, 2022
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date October 28, 2022