Franklin Municipal Securities Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06481

Franklin Municipal Securities Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: 2/28

Date of reporting period: 8/31/22

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

codeofethics

(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

section302

(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

section906

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