[FRANKLIN TEMPLETON LETTERHEAD] One Franklin Parkway, San Mateo, CA 94403-1906 January 13, 2010 VIA EDGAR Filing Desk U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, DC 20549 RE: Franklin Strategic Mortgage Portfolio (CIK #0000893226) File No. 811-07288 Ladies and Gentlemen: On behalf of the above-referenced Fund submitted herewith under the EDGAR system, please find Amended Form N-CSR. The amended form is being filed to replace the incorrect Item 1 of the Form N-CSR, which was inadvertently inserted. Sincerely, Franklin Strategic Mortgage Portfolio /s/DAVID P. GOSS David p. Goss Vice President