UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06243

Franklin Strategic Series

(Exact name of registrant as specified in charter)

_One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)

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

(Name and address of agent for service)

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

Date of fiscal year end: 4/30

Date of reporting period: 4/30/23

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.   

Not Applicable

.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

April

30,

2023

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

12

months

ended

April

30,

2023,

the

U.S.

economy

recovered

from

the

contraction

in

the

second

quarter

of

2022

and

expanded

moderately

in

the

subsequent

three

quarters.

Resilient

consumer

spending

and

improved

exports

amid

cooling

inflation

led

to

moderate

economic

growth.

However,

higher

interest

rates

meant

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity.

In

its

aggressive

fight

against

high

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

eight

times

during

the

period,

bringing

it

to

a

range

of

4.75%

-5.00%,

the

highest

level

since

2007.

At

its

March

2023

meeting,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

but

softened

its

firm

outlook

on

future

rate

hikes.

Additionally,

Fed

Chair

Jerome

Powell

said

the

central

bank

most

likely

would

not

cut

rates

in

2023.

U.S.

equities,

as

measured

by

the

Standard

&

Poor's

®

500

Index,

posted

a

+2.66%

total

return

for

the

12-month

reporting

period

ended

April

30,

2023.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

during

the

first

half

of

the

reporting

period,

though

equities

rebounded

in

the

second

half.

Consumer

spending

continued

to

rise

but

deteriorating

financial

conditions,

including

regional

banking

stress

in

March

and

April,

and

investors'

expectations

for

slower

growth

intermittently

pressured

equity

markets.

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Strategic

Series’

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

This

letter

reflects

our

analysis

and

opinions

as

of

April

30,

2023,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

Growth

Opportunities

Fund

4

Franklin

Small

Cap

Growth

Fund

10

Franklin

Small-Mid

Cap

Growth

Fund

16

Financial

Highlights

and

Schedules

of

Investments

22

Financial

Statements

52

Notes

to

Financial

Statements

57

Report

of

Independent

Registered

Public

Accounting

Firm

82

Tax

Information

83

Board

Members

and

Officers

84

Shareholder

Information

89

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

+2.66%

total

return

for

the

12

months

ended

April

30,

2023.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

during

the

first

half

of

the

reporting

period,

though

equities

subsequently

rebounded.

Consumer

spending

continued

to

rise

but

deteriorating

financial

conditions,

including

regional

banking

stress

in

March

and

April,

and

investors’

expectations

for

slower

growth

pressured

equity

markets.

Continued

supply-chain

disruptions,

strong

consumer

demand

and

volatile

energy

prices

drove

inflation.

Oil

and

commodity

prices

rose

following

Russia’s

invasion

of

Ukraine

in

February

2022,

before

gradually

receding.

Inflation

peaked

at

9.1%

in

June

2022,

the

highest

annual

rate

since

1981,

before

sliding

to

5.0%

in

March

2023.

The

labor

market

remained

strong

amid

a

high

level

of

nominal

growth,

which

sent

the

U.S.

unemployment

rate

down

to

a

historic

54-year

low

of

3.4%

in

January

2023

before

rising

marginally

to

3.5%

in

March.

U.S.

gross

domestic

product

recovered

from

the

contraction

in

the

second

quarter

of

2022

and

grew

at

a

3.2%

annualized

rate

in

the

third

quarter

of

2022,

eventually

slowing

to

1.1%

in

the

first

quarter

of

2023.

Rising

consumer

spending

and

increased

exports

amid

cooling

inflation

led

to

moderate

economic

growth

over

the

period.

However,

rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

rapidly

restricted

monetary

policy

during

the

period.

The

Fed

raised

the

federal

funds

target

rate

eight

times

to

end

the

period

at

a

range

of

4.75%–5.00%,

pushing

borrowing

costs

to

their

highest

levels

since

2007.

The

interest-rate

hikes

included

four

successive

75-basis-point

increases

at

its

June,

July,

September

and

November

2022

meetings

and

smaller

increases

at

its

remaining

meetings

during

the

period.

At

its

March

2023

meeting,

the

Fed

said

it

would

continue

to

reduce

bond

holdings

but

departed

from

previous

statements

by

softening

its

firm

outlook

on

future

rate

hikes.

Additionally,

Fed

Chair

Jerome

Powell

said

the

central

bank

most

likely

would

not

cut

rates

in

2023.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

April

30,

2023.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund

This

annual

report

for

Franklin

Growth

Opportunities

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Under

normal

conditions,

the

Fund

invests

predominantly

in

equity

securities

of

companies

demonstrating

accelerating

growth,

increasing

profitability,

or

above-average

growth

or

growth

potential

as

compared

with

the

overall

economy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-4.98%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Fund’s

narrow

benchmark,

the

Russell

3000

®

Growth

Index,

which

measures

the

performance

of

those

Russell

3000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+2.25%

cumulative

total

return.

1

The

Fund’s

broad

benchmark,

the

Standard

&

Poor’s

500

Index

(S&P

500

®

),

which

tracks

the

broad

U.S.

stock

market,

posted

a

+2.66%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

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.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Manager’s

Discussion

For

the

one

year

under

review,

Franklin

Growth

Opportunities

Fund

underperformed

its

benchmark

as

rising

interest

rates

disproportionately

hurt

rate-sensitive

growth

stocks

and

took

a

toll

on

the

information

technology

(IT)

sector,

which

was

the

Fund’s

largest

sector

exposure

over

the

period.

A

position

in

payment

solutions

provider

BILL

Holdings

(formerly,

Bill.com

Holdings)

weighed

on

performance.

Additionally,

our

underweight

positioning

in

strongly

performing

technology

companies

Microsoft

and

Apple

detracted

from

relative

returns.

Conversely,

software

firm

Synopsys

was

a

leading

contributor

in

the

IT

sector.

The

company

is

closely

tied

to

the

ongoing

digital

transformation

investments

being

made

by

enterprises

and

is

seeing

strong

growth

in

key

end

markets

of

artificial

intelligence,

machine

Portfolio

Composition

4/30/23

%

of

Total

Net

Assets

Software

19.6%

Financial

Services

8.5%

Interactive

Media

&

Services

6.8%

Semiconductors

&

Semiconductor

Equipment

6.5%

Technology

Hardware,

Storage

&

Peripherals

5.7%

Broadline

Retail

5.3%

Capital

Markets

4.8%

Life

Sciences

Tools

&

Services

4.6%

Pharmaceuticals

3.8%

Health

Care

Providers

&

Services

3.6%

Health

Care

Equipment

&

Supplies

2.8%

Beverages

2.6%

Specialized

REITs

2.6%

Hotels,

Restaurants

&

Leisure

2.4%

Other*

18.0%

Short-Term

Investments

&

Other

Net

Assets

2.4%

1.

Source:

Morningstar.

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

27

.

Franklin

Growth

Opportunities

Fund

5

franklintempleton.com

Annual

Report

learning,

high-performance

computing,

cloud

security

solutions,

5G

processors

and

automotive

safety.

Stock

selection

in

the

health

care

sector

also

pressured

relative

returns,

led

lower

by

FIGS,

as

supply-chain

challenges

and

inventory

constraints

weighed

on

the

health

care

apparel

company.

Elsewhere,

leading

relative

detractors

included

tower

operator

SBA

Communications

in

the

real

estate

sector

and

healthy-food

restaurant

chain

Sweetgreen

in

the

consumer

discretionary

sector.

However,

the

consumer

discretionary

sector

included

two

of

the

five

top

relative

contributors

for

the

period.

An

underweight

in

Tesla

proved

positive

as

negative

headlines

about

the

company

combined

with

investor

concerns

about

consumer

demand

weighed

on

the

electric

carmaker’s

stock.

Also

in

the

sector,

reaccelerating

traffic

trends

driven

by

a

strong

consumer

value

proposition

boosted

the

shares

of

restaurant

chain

Chipotle

Mexican

Grill.

Keeping

with

contributors,

the

Fund

benefited

from

stock

selection

in

the

communication

services

sector

and

a

position

in

Meta

Platforms.

Aggressive

cost

cutting

and

an

increased

focus

toward

artificial

intelligence

has

led

to

a

substantial

rebound

in

the

interactive

media

company’s

stock.

In

the

financials

sector,

index

and

analytics

provider

MSCI

saw

strong

growth

of

its

index

business

over

the

period

resulting

from

expansion

into

new

geographies,

client

types

and

use

cases

for

its

data.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Opportunities

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Grant

Bowers

Lead

Portfolio

Manager

Sara

Araghi,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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.

Top

10

Holdings

4/30/23

Company

Industry

%

of

Total

Net

Assets

a

aa

Microsoft

Corp.

6.3%

Software

Mastercard,

Inc.

5.8%

Financial

Services

Apple,

Inc.

5.7%

Technology

Hardware,

Storage

&

Peripherals

Amazon.com,

Inc.

5.2%

Broadline

Retail

Meta

Platforms,

Inc.

3.4%

Interactive

Media

&

Services

Alphabet,

Inc.

3.4%

Interactive

Media

&

Services

UnitedHealth

Group,

Inc.

2.9%

Health

Care

Providers

&

Services

NVIDIA

Corp.

2.8%

Semiconductors

&

Semiconductor

Equipment

ServiceNow,

Inc.

2.8%

Software

Visa,

Inc.

2.7%

Financial

Services

Performance

Summary

as

of

April

30,

2023

Franklin

Growth

Opportunities

Fund

6

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

4/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-4.98%

-10.20%

5-Year

+50.73%

+7.33%

10-Year

+184.02%

+10.38%

Advisor

1-Year

-4.71%

-4.71%

5-Year

+52.65%

+8.83%

10-Year

+191.51%

+11.29%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Growth

Opportunities

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

See

page

8

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Growth

Opportunities

Fund

Performance

Summary

8

franklintempleton.com

Annual

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

possible

loss

of

principal.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

invest-

ment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

Smaller,

midsized

and

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Historically,

these

securities

have

experienced

more

price

volatility

than

larger-company

stocks,

especially

over

the

short

term.

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.

1.

The

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

3000

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

3000

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

values.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

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

(5/1/22–4/30/23)

Share

Class

Long-Term

Capital

Gain

A

$1.6818

C

$1.6818

R

$1.6818

R6

$1.6818

Advisor

$1.6818

Total

Annual

Operating

Expenses

6

Share

Class

A

0.90%

Advisor

0.65%

Your

Fund’s

Expenses

Franklin

Growth

Opportunities

Fund

9

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,092.00

$4.93

$1,020.08

$4.76

0.95%

C

$1,000

$1,087.80

$8.80

$1,016.37

$8.50

1.70%

R

$1,000

$1,090.80

$6.22

$1,018.85

$6.00

1.20%

R6

$1,000

$1,094.10

$3.03

$1,021.90

$2.92

0.58%

Advisor

$1,000

$1,093.50

$3.59

$1,021.37

$3.46

0.69%

10

franklintempleton.com

Annual

Report

Franklin

Small

Cap

Growth

Fund

This

annual

report

for

Franklin

Small

Cap

Growth

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

the

equity

securities

of

small-cap

companies.

For

this

Fund,

small-cap

companies

are

those

with

market

capitalizations

not

exceeding

$1.5

billion

or

the

highest

market

capitalization

in

the

Russell

2000

®

Index,

whichever

is

greater,

at

the

time

of

purchase.

1

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-2.73%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Russell

2000

®

Growth

Index,

which

measures

the

performance

of

small-cap

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+0.72%

cumulative

total

return.

2

The

Standard

&

Poor’s

500

Index

(S&P

500),

which

tracks

the

broad

U.S.

stock

market,

posted

a

+2.66%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

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

.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Manager’s

Discussion

For

the

one

year

under

review,

the

Fund’s

longer-duration

growth

positioning

was

a

headwind

to

performance

as

inflation

spiked

and

interest

rates

moved

significantly

higher.

Higher

rates

disproportionately

hurt

rate-sensitive

growth

stocks

and

took

a

toll

on

the

information

technology

(IT)

sector,

which

was

a

leading

detractor

from

relative

returns.

A

position

in

CS

Disco

underperformed

on

lowered

guidance

that

dampened

the

shares

of

the

legal

technology

services

company.

Conversely,

robust

demand

for

programmable

chips

led

to

a

strong

revenue

growth

for

Lattice

Semiconductor,

which

was

a

top

contributor

for

the

period.

Portfolio

Composition

4/30/23

%

of

Total

Net

Assets

Software

7.9%

Biotechnology

7.8%

Health

Care

Equipment

&

Supplies

6.7%

Hotels,

Restaurants

&

Leisure

5.6%

Aerospace

&

Defense

5.3%

Specialty

Retail

5.3%

Semiconductors

&

Semiconductor

Equipment

5.0%

Financial

Services

4.5%

Food

Products

4.2%

Health

Care

Providers

&

Services

4.2%

Household

Durables

3.7%

Pharmaceuticals

3.4%

Capital

Markets

3.2%

Construction

&

Engineering

3.0%

Other*

28.8%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

The

Russell

2000

®

Index

is

market

capitalization

weighted

and

measures

performance

of

the

2,000

smallest

companies

in

the

Russell

3000

®

Index,

which

represent

a

small

amount

of

the

total

market

capitalization

of

the

Russell

3000

®

Index.

2.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

36

.

Franklin

Small

Cap

Growth

Fund

11

franklintempleton.com

Annual

Report

Negative

relative

performance

also

resulted

from

positioning

in

the

financials

sector,

which

was

impacted

by

GICS

(global

industry

classification

standard)

reclassification

that

shifted

payment

companies

from

IT

to

financials.

Electronic

bill

payment

vendor

Paymentus

Holdings

was

a

meaningful

detractor

in

this

space

along

with

an

off-index

position

in

Western

Alliance

Bancorp,

which

was

pressured

by

panic

selling

following

the

collapse

of

two

regional

banks.

We

remain

overweight

in

the

consumer

discretionary

sector,

which

was

hindered

by

Petco

Health

&

Wellness.

The

pet

retailer

faced

slowing

sales

driven

by

macroeconomic

pressures.

In

contrast,

a

pullback

in

mortgage

rates

during

the

period’s

second

half

improved

traffic

and

orders

for

new

homes

for

M/I

Homes,

which

was

a

consumer

discretionary

top

contributor.

The

industrials

sector

was

also

a

source

of

negative

relative

performance.

Within

the

sector,

competitive

pressures

were

to

blame,

in

part,

for

the

pullback

of

shares

of

electric

bus

maker

Proterra.

In

contrast,

the

shares

of

law

enforcement

technology

company

Axon

Enterprises

rose

to

all-time

price

highs

in

March,

which

helped

industrials

sector

results.

Accelerating

sales

of

hardware

devices

and

software

subscriptions

was

a

revenue

driver

for

the

company.

The

communication

services

and

health

care

sectors

were

top

contributors

to

annual

relative

performance.

The

communications

sector

was

helped

by

a

lack

of

exposure

to

the

diversified

telecommunication

services

industry,

while

the

health

care

sector

was

boosted

by

Revance

Therapeutics

and

PTC

Therapeutics,

with

Revance

reporting

positive

clinical

trials

for

a

cosmetic

filler

and

PTC

announcing

positive

trials

for

a

muscular

dystrophy

treatment.

We

have

seen

some

market

turnaround

since

mid-October

2022

as

investor

sentiment

about

inflation,

interest

rates

and

recession

shifted

to

a

more

positive

outlook.

This

has

led

us

to

increase

the

quality

of

the

portfolio

and

reduce

some

duration.

Thank

you

for

your

continued

participation

in

Franklin

Small

Cap

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

P.

McCarthy,

CFA

Lead

Portfolio

Manager

Bradley

T.

Carris,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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.

Top

10

Holdings

4/30/23

Company

Industry

%

of

Total

Net

Assets

a

aa

BWX

Technologies,

Inc.

2.0%

Aerospace

&

Defense

Performance

Food

Group

Co.

1.9%

Consumer

Staples

Distribution

&

Retail

Allegiant

Travel

Co.

1.9%

Passenger

Airlines

Arcosa,

Inc.

1.8%

Construction

&

Engineering

Lattice

Semiconductor

Corp.

1.8%

Semiconductors

&

Semiconductor

Equipment

Inspire

Medical

Systems,

Inc.

1.8%

Health

Care

Equipment

&

Supplies

Red

Rock

Resorts,

Inc.

1.8%

Hotels,

Restaurants

&

Leisure

AAR

Corp.

1.7%

Aerospace

&

Defense

Texas

Roadhouse,

Inc.

1.7%

Hotels,

Restaurants

&

Leisure

BellRing

Brands,

Inc.

1.7%

Personal

Care

Products

Performance

Summary

as

of

April

30,

2023

Franklin

Small

Cap

Growth

Fund

12

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

4/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-2.73%

-8.06%

5-Year

+31.57%

+4.45%

10-Year

+139.86%

+8.53%

Advisor

1-Year

-2.50%

-2.50%

5-Year

+33.20%

+5.90%

10-Year

+146.26%

+9.43%

See

page

14

for

Performance

Summary

footnotes.

Franklin

Small

Cap

Growth

Fund

Performance

Summary

13

franklintempleton.com

Annual

Report

See

page

14

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Small

Cap

Growth

Fund

Performance

Summary

14

franklintempleton.com

Annual

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

possible

loss

of

principal.

Smaller,

midsized

and

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Historically,

these

securities

have

experienced

more

price

volatility

than

larger-company

stocks,

especially

over

the

short

term.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

From

time

to

time,

the

trading

market

for

a

particular

security

or

type

of

secu-

rity

in

which

the

Fund

invests

may

become

less

liquid

or

even

illiquid.

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.

1.

The

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

2000

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

2000

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

values.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

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

(5/1/22–4/30/23)

Share

Class

Long-Term

Capital

Gain

A

$0.0971

C

$0.0971

R

$0.0971

R6

$0.0971

Advisor

$0.0971

Total

Annual

Operating

Expenses

6

Share

Class

A

1.03%

Advisor

0.78%

Your

Fund’s

Expenses

Franklin

Small

Cap

Growth

Fund

15

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,062.30

$5.53

$1,019.44

$5.41

1.08%

C

$1,000

$1,058.90

$9.34

$1,015.73

$9.14

1.83%

R

$1,000

$1,061.40

$6.80

$1,018.20

$6.66

1.33%

R6

$1,000

$1,064.90

$3.41

$1,021.49

$3.34

0.67%

Advisor

$1,000

$1,064.00

$4.25

$1,020.68

$4.16

0.83%

16

franklintempleton.com

Annual

Report

Franklin

Small-Mid

Cap

Growth

Fund

This

annual

report

for

Franklin

Small-Mid

Cap

Growth

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

long-term

capital

growth.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

the

equity

securities

of

small-capitalization

(small-

cap)

and

mid-capitalization

(mid-cap)

companies.

For

this

Fund,

small-cap

companies

are

companies

within

the

market

capitalization

range

of

companies

in

the

Russell

2500™

Index,

at

the

time

of

purchase,

and

mid-cap

companies

are

companies

within

the

market

capitalization

range

of

companies

in

the

Russell

Midcap

®

Index,

at

the

time

of

purchase.

1

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-4.07%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Russell

Midcap

®

Growth

Index,

which

measures

the

performance

of

those

Russell

Midcap

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates,

posted

a

+1.60%

cumulative

total

return.

2

Also

in

comparison,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

tracks

the

broad

U.S.

stock

market,

posted

a

+2.66%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

18

.

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.

Investment

Strategy

We

use

fundamental,

bottom-up

research

to

seek

companies

meeting

our

criteria

of

growth

potential,

quality

and

valuation.

In

seeking

sustainable

growth

characteristics,

we

look

for

companies

we

believe

can

produce

sustainable

earnings

and

cash

flow

growth,

evaluating

the

long-term

market

opportunity

and

competitive

structure

of

an

industry.

We

define

quality

companies

as

those

with

strong

and

improving

competitive

positions

in

attractive

markets.

We

also

believe

important

attributes

of

quality

are

experienced

and

talented

management

teams

as

well

as

financial

strength

reflected

in

the

capital

structure,

gross

and

operating

margins,

free

cash

flow

generation

and

returns

on

capital

employed.

Our

valuation

analysis

includes

a

range

of

potential

outcomes

based

on

an

assessment

of

multiple

scenarios.

In

assessing

value,

we

consider

whether

security

prices

fully

reflect

the

balance

of

the

sustainable

growth

opportunities

relative

to

business

and

financial

risks.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Manager’s

Discussion

For

the

one

year

under

review,

negative

relative

performance

for

Franklin

Small-Mid

Cap

Growth

Fund

was

driven

mainly

by

stock

selection

in

the

information

technology

(IT),

industrials

and

financials

sectors.

In

contrast,

stock

selection

and

an

overweight

in

the

consumer

discretionary

sector

added

to

relative

returns.

Portfolio

Composition

4/30/23

%

of

Total

Net

Assets

Software

11.2%

Hotels,

Restaurants

&

Leisure

7.2%

Health

Care

Equipment

&

Supplies

6.2%

Specialty

Retail

6.0%

Life

Sciences

Tools

&

Services

5.3%

Capital

Markets

5.1%

Professional

Services

4.8%

Semiconductors

&

Semiconductor

Equipment

4.5%

Biotechnology

2.9%

Oil,

Gas

&

Consumable

Fuels

2.8%

Textiles,

Apparel

&

Luxury

Goods

2.5%

IT

Services

2.3%

Communications

Equipment

2.0%

Trading

Companies

&

Distributors

1.9%

Other*

29.1%

Short-Term

Investments

&

Other

Net

Assets

6.2%

1.

The

Russell

2500

TM

Index

is

market

capitalization

weighted

and

measures

performance

of

the

2,500

smallest

companies

in

the

Russell

3000

®

Index,

which

represent

a

modest

amount

of

the

Russell

3000

®

Index’s

total

market

capitalization.

The

Russell

Midcap

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

800

smallest

companies

in

the

Russell

1000

®

Index,

which

represent

a

modest

amount

of

the

Russell

1000

®

Index’s

total

market

capitalization.

2.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

46

.

Franklin

Small-Mid

Cap

Growth

Fund

17

franklintempleton.com

Annual

Report

Rising

interest

rates

disproportionately

hurt

interest-rate-

sensitive

growth

stocks

and

took

a

toll

on

many

companies

in

the

information

technology

(IT)

sector.

Stock

selection

in

the

software

industry

resulted

in

weak

performers

that

included

AI

(artificial

intelligence)

computing

platform

Blaize

and

payment

solutions

provider

BILL

Holdings

(formerly

Bill.com

Holdings).

Conversely,

chip

designer

Lattice

Semiconductor

and

electronic

design

automation

company

Synopsys

were

leading

contributors

in

the

IT

sector.

Lower

profit

guidance

due

to

an

increase

in

driver

incentives

pressured

the

shares

of

ride-sharing

company

Lyft

in

the

industrials

sector.

In

addition

to

driver

retention,

other

headwinds

included

higher

gas

prices

and

a

spike

in

COVID

cases

earlier

in

the

period

impacting

rider

volumes.

Conversely,

real

estate

data

and

analytics

company

CoStar

Group

was

a

top

contributor

in

the

industrials

sector,

helped

by

a

strong

rental

market.

In

the

financials

sector,

we

held

shares

of

failed

regional

banks

SVB

Financial

Group

(former

holding

company

for

Silicon

Valley

Bank)

and

First

Republic

Bank,

which

we

exited

over

the

period.

Elsewhere,

several

consumer-

oriented

companies

added

to

annual

relative

performance.

Demand

trends

continue

to

be

strong

for

nutrition

products

company

BellRing

Brands

in

the

consumer

staples

sector,

while

reaccelerating

traffic

trends

and

price

increases

to

offset

inflationary

pressures

boosted

the

shares

of

restaurant

chain

Chipotle

Mexican

Grill

in

the

consumer

discretionary

sector.

Thank

you

for

your

continued

participation

in

Franklin

Small-

Mid

Cap

Growth

Fund.

We

look

forward

to

serving

your

future

investment

needs.

John

P.

Scandalios,

CFA

Lead

Portfolio

Manager

Michael

McCarthy,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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.

Top

10

Holdings

4/30/23

Company

Industry

%

of

Total

Net

Assets

a

aa

Synopsys,

Inc.

3.0%

Software

Chipotle

Mexican

Grill,

Inc.

2.8%

Hotels,

Restaurants

&

Leisure

Lululemon

Athletica,

Inc.

2.4%

Textiles,

Apparel

&

Luxury

Goods

Dexcom,

Inc.

2.0%

Health

Care

Equipment

&

Supplies

Arista

Networks,

Inc.

2.0%

Communications

Equipment

Fastenal

Co.

1.9%

Trading

Companies

&

Distributors

Mettler-Toledo

International,

Inc.

1.8%

Life

Sciences

Tools

&

Services

MSCI,

Inc.

1.8%

Capital

Markets

Tractor

Supply

Co.

1.7%

Specialty

Retail

IDEXX

Laboratories,

Inc.

1.7%

Health

Care

Equipment

&

Supplies

Performance

Summary

as

of

April

30,

2023

Franklin

Small-Mid

Cap

Growth

Fund

18

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

4/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

-4.07%

-9.36%

5-Year

+50.70%

+7.33%

10-Year

+154.51%

+9.17%

Advisor

1-Year

-3.81%

-3.81%

5-Year

+52.56%

+8.82%

10-Year

+160.96%

+10.07%

See

page

20

for

Performance

Summary

footnotes.

Franklin

Small-Mid

Cap

Growth

Fund

Performance

Summary

19

franklintempleton.com

Annual

Report

See

page

20

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Small-Mid

Cap

Growth

Fund

Performance

Summary

20

franklintempleton.com

Annual

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

possible

loss

of

principal.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can,

therefore,

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Smaller,

mid-sized

and

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Historically,

these

securities

have

experienced

more

price

volatility

than

larger-company

stocks,

especially

over

the

short

term.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investment

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

From

time

to

time,

the

trading

market

for

a

particular

security

or

type

of

security

in

which

the

Fund

invests

may

become

less

liquid

or

even

illiquid.

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.

1.

The

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

Russell

Midcap

Growth

Index

is

market

capitalization

weighted

and

measures

performance

of

those

Russell

Midcap

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

values.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

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

(5/1/22–4/30/23)

Share

Class

Long-Term

Capital

Gain

A

$1.8770

C

$1.8770

R

$1.8770

R6

$1.8770

Advisor

$1.8770

Total

Annual

Operating

Expenses

6

Share

Class

A

0.85%

Advisor

0.60%

Your

Fund’s

Expenses

Franklin

Small-Mid

Cap

Growth

Fund

21

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,072.80

$4.52

$1,020.43

$4.41

0.88%

C

$1,000

$1,069.20

$8.37

$1,016.71

$8.16

1.63%

R

$1,000

$1,071.30

$5.81

$1,019.19

$5.66

1.13%

R6

$1,000

$1,075.00

$2.50

$1,022.38

$2.44

0.49%

Advisor

$1,000

$1,074.40

$3.24

$1,021.67

$3.16

0.63%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$43.14

$56.25

$39.60

$39.57

$38.58

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.12)

(0.28)

(0.26)

(0.14)

(0.13)

Net

realized

and

unrealized

gains

(losses)

...........

(2.19)

(7.76)

20.03

3.59

5.29

Total

from

investment

operations

....................

(2.31)

(8.04)

19.77

3.45

5.16

Less

distributions

from:

Net

realized

gains

.............................

(1.68)

(5.07)

(3.12)

(3.42)

(4.17)

Net

asset

value,

end

of

year

.......................

$39.15

$43.14

$56.25

$39.60

$39.57

Total

return

c

...................................

(4.98)%

(16.57)%

50.64%

8.90%

15.91%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.95%

0.90%

0.91%

0.95%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.94%

0.89%

0.91%

e

0.95%

e

0.94%

e

Net

investment

(loss)

............................

(0.30)%

(0.49)%

(0.51)%

(0.35)%

(0.32)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,765,017

$3,215,834

$4,203,693

$2,883,392

$2,819,007

Portfolio

turnover

rate

............................

16.52%

f

17.20%

17.54%

19.47%

24.21%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$32.55

$43.87

$31.61

$32.47

$32.67

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.30)

(0.54)

(0.50)

(0.35)

(0.35)

Net

realized

and

unrealized

gains

(losses)

...........

(1.71)

(5.71)

15.88

2.91

4.32

Total

from

investment

operations

....................

(2.01)

(6.25)

15.38

2.56

3.97

Less

distributions

from:

Net

realized

gains

.............................

(1.68)

(5.07)

(3.12)

(3.42)

(4.17)

Net

asset

value,

end

of

year

.......................

$28.86

$32.55

$43.87

$31.61

$32.47

Total

return

c

...................................

(5.69)%

(17.20)%

49.47%

8.10%

15.10%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.70%

1.65%

1.66%

1.70%

1.69%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.69%

1.64%

1.66%

e

1.70%

e

1.69%

e

Net

investment

(loss)

............................

(1.05)%

(1.23)%

(1.26)%

(1.10)%

(1.07)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$119,070

$158,895

$278,804

$216,757

$244,574

Portfolio

turnover

rate

............................

16.52%

f

17.20%

17.54%

19.47%

24.21%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$40.06

$52.69

$37.32

$37.57

$36.93

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.20)

(0.39)

(0.36)

(0.22)

(0.21)

Net

realized

and

unrealized

gains

(losses)

...........

(2.05)

(7.17)

18.85

3.39

5.02

Total

from

investment

operations

....................

(2.25)

(7.56)

18.49

3.17

4.81

Less

distributions

from:

Net

realized

gains

.............................

(1.68)

(5.07)

(3.12)

(3.42)

(4.17)

Net

asset

value,

end

of

year

.......................

$36.13

$40.06

$52.69

$37.32

$37.57

Total

return

....................................

(5.21)%

(16.79)%

50.26%

8.64%

15.66%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.20%

1.15%

1.15%

1.20%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.19%

1.14%

1.15%

d

1.20%

d

1.19%

d

Net

investment

(loss)

............................

(0.55)%

(0.73)%

(0.75)%

(0.60)%

(0.57)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$22,664

$27,009

$40,396

$31,060

$37,105

Portfolio

turnover

rate

............................

16.52%

e

17.20%

17.54%

19.47%

24.21%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$48.98

$63.06

$43.97

$43.42

$41.78

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.02

(0.10)

(0.10)

0.01

0.01

Net

realized

and

unrealized

gains

(losses)

...........

(2.45)

(8.91)

22.31

3.96

5.80

Total

from

investment

operations

....................

(2.43)

(9.01)

22.21

3.97

5.81

Less

distributions

from:

Net

realized

gains

.............................

(1.68)

(5.07)

(3.12)

(3.42)

(4.17)

Net

asset

value,

end

of

year

.......................

$44.87

$48.98

$63.06

$43.97

$43.42

Total

return

....................................

(4.62)%

(16.32)%

51.13%

9.34%

16.26%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.59%

0.57%

0.57%

0.59%

0.59%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.58%

0.57%

d

0.57%

d

0.59%

d

0.58%

Net

investment

income

(loss)

......................

0.05%

(0.16)%

(0.17)%

0.01%

0.04%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$449,119

$461,475

$563,918

$383,208

$418,174

Portfolio

turnover

rate

............................

16.52%

e

17.20%

17.54%

19.47%

24.21%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$48.07

$62.01

$43.31

$42.87

$41.34

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.02)

(0.15)

(0.14)

(0.04)

(0.03)

Net

realized

and

unrealized

gains

(losses)

...........

(2.41)

(8.72)

21.96

3.90

5.73

Total

from

investment

operations

....................

(2.43)

(8.87)

21.82

3.86

5.70

Less

distributions

from:

Net

realized

gains

.............................

(1.68)

(5.07)

(3.12)

(3.42)

(4.17)

Net

asset

value,

end

of

year

.......................

$43.96

$48.07

$62.01

$43.31

$42.87

Total

return

....................................

(4.71)%

(16.37)%

51.01%

9.20%

16.16%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.69%

0.65%

0.66%

0.70%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.68%

0.64%

0.66%

d

0.70%

d

0.69%

d

Net

investment

(loss)

............................

(0.05)%

(0.24)%

(0.26)%

(0.10)%

(0.07)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$325,234

$636,524

$643,449

$467,727

$506,964

Portfolio

turnover

rate

............................

16.52%

e

17.20%

17.54%

19.47%

24.21%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

Note

3(h).

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Growth

Opportunities

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.5%

Aerospace

&

Defense

1.2%

a

Axon

Enterprise,

Inc.

...................................

United

States

150,118

$

31,631,364

a,b,c

Space

Exploration

Technologies

Corp.,

A

....................

United

States

142,857

10,999,989

42,631,353

Automobiles

0.6%

a

Tesla,

Inc.

...........................................

United

States

128,015

21,034,145

Beverages

2.6%

Constellation

Brands,

Inc.,

A

.............................

United

States

95,374

21,885,472

a

Monster

Beverage

Corp.

................................

United

States

1,316,200

73,707,200

95,592,672

Biotechnology

0.0%

†

a

Heron

Therapeutics,

Inc.

................................

United

States

551,293

1,317,590

Broadline

Retail

5.3%

a

Amazon.com,

Inc.

.....................................

United

States

1,832,386

193,225,104

Capital

Markets

4.8%

Ares

Management

Corp.

................................

United

States

246,436

21,585,330

Intercontinental

Exchange,

Inc.

...........................

United

States

250,211

27,255,484

MSCI,

Inc.

...........................................

United

States

134,700

64,986,015

S&P

Global,

Inc.

......................................

United

States

174,352

63,216,548

177,043,377

Chemicals

1.9%

Linde

plc

............................................

United

States

185,449

68,514,133

Commercial

Services

&

Supplies

1.5%

a,b,c

Celonis

SE

..........................................

Germany

4,619

1,079,626

a,b,c

Celonis

SE,

D

........................................

Germany

25,571

5,976,862

Republic

Services,

Inc.

.................................

United

States

325,579

47,085,235

54,141,723

Electric

Utilities

1.0%

NextEra

Energy,

Inc.

...................................

United

States

462,062

35,407,811

Financial

Services

8.5%

Mastercard,

Inc.,

A

....................................

United

States

562,080

213,607,263

Visa,

Inc.,

A

..........................................

United

States

430,262

100,134,875

313,742,138

Food

Products

1.1%

a

Freshpet,

Inc.

........................................

United

States

192,209

13,256,655

Lamb

Weston

Holdings,

Inc.

.............................

United

States

258,420

28,893,940

42,150,595

Ground

Transportation

1.9%

a

Uber

Technologies,

Inc.

.................................

United

States

1,192,859

37,038,272

Union

Pacific

Corp.

....................................

United

States

170,118

33,292,093

70,330,365

Health

Care

Equipment

&

Supplies

2.8%

a

Figs,

Inc.,

A

..........................................

United

States

1,208,624

8,702,093

a

IDEXX

Laboratories,

Inc.

................................

United

States

52,443

25,810,347

a,b,c

IL

MAKIAGE

Cosmetics

(2013)

Ltd.

........................

Israel

37,734

16,934,771

a

Intuitive

Surgical,

Inc.

..................................

United

States

172,399

51,930,027

103,377,238

Health

Care

Providers

&

Services

3.1%

a

Guardant

Health,

Inc.

..................................

United

States

253,022

5,708,176

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

UnitedHealth

Group,

Inc.

................................

United

States

217,301

$

106,931,649

112,639,825

Health

Care

Technology

0.5%

a

Veeva

Systems,

Inc.,

A

.................................

United

States

109,736

19,651,523

Hotels,

Restaurants

&

Leisure

2.4%

a

Chipotle

Mexican

Grill,

Inc.

..............................

United

States

39,696

82,076,243

a,d

Dutch

Bros,

Inc.,

A

....................................

United

States

232,972

7,257,078

89,333,321

Industrial

Conglomerates

1.0%

Honeywell

International,

Inc.

.............................

United

States

178,869

35,745,181

Interactive

Media

&

Services

6.8%

a

Alphabet,

Inc.,

C

......................................

United

States

1,144,821

123,892,528

a

Meta

Platforms,

Inc.,

A

.................................

United

States

520,968

125,199,030

249,091,558

IT

Services

0.5%

a,b,c

Canva,

Inc.

..........................................

Australia

11,829

9,178,870

a

Snowflake,

Inc.,

A

.....................................

United

States

71,533

10,592,607

19,771,477

Leisure

Products

1.9%

a,b,c

Fanatics

Holdings,

Inc.

.................................

United

States

1,029,939

71,332,234

Life

Sciences

Tools

&

Services

4.6%

Danaher

Corp.

.......................................

United

States

292,404

69,273,432

Thermo

Fisher

Scientific,

Inc.

............................

United

States

85,567

47,481,128

West

Pharmaceutical

Services,

Inc.

........................

United

States

141,335

51,055,855

167,810,415

Machinery

0.1%

a

Proterra,

Inc.

.........................................

United

States

2,480,674

2,902,389

Pharmaceuticals

3.8%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

863,148

63,199,696

Eli

Lilly

&

Co.

........................................

United

States

198,153

78,440,847

141,640,543

Professional

Services

2.2%

a

CoStar

Group,

Inc.

....................................

United

States

663,403

51,048,861

a

Paycom

Software,

Inc.

.................................

United

States

43,500

12,631,095

TransUnion

..........................................

United

States

267,816

18,428,419

82,108,375

Semiconductors

&

Semiconductor

Equipment

6.5%

Analog

Devices,

Inc.

...................................

United

States

231,566

41,654,092

ASML

Holding

NV,

NYRS

...............................

Netherlands

14,607

9,302,614

a,d

GLOBALFOUNDRIES,

Inc.

..............................

United

States

270,998

15,934,682

Monolithic

Power

Systems,

Inc.

...........................

United

States

150,900

69,711,273

NVIDIA

Corp.

........................................

United

States

376,046

104,349,005

240,951,666

Software

18.2%

a

Adobe,

Inc.

..........................................

United

States

91,607

34,587,139

a

Atlassian

Corp.,

A

.....................................

United

States

92,783

13,700,338

a

BILL

Holdings,

Inc.

....................................

United

States

169,882

13,048,636

a,b,c

ClearMotion,

Inc.

......................................

United

States

6,309,366

732,694

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

Confluent,

Inc.,

A

......................................

United

States

299,634

$

6,591,948

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

141,200

16,951,060

Intuit,

Inc.

...........................................

United

States

135,624

60,210,275

Microsoft

Corp.

.......................................

United

States

749,290

230,226,845

a

Monday.com

Ltd.

......................................

United

States

42,563

5,189,281

Oracle

Corp.

.........................................

United

States

190,822

18,074,660

Roper

Technologies,

Inc.

................................

United

States

103,989

47,292,117

a

Salesforce,

Inc.

.......................................

United

States

83,997

16,662,485

a

ServiceNow,

Inc.

......................................

United

States

222,123

102,047,749

a

Synopsys,

Inc.

.......................................

United

States

155,992

57,922,949

a

Tyler

Technologies,

Inc.

.................................

United

States

53,843

20,408,112

a

Workday,

Inc.,

A

......................................

United

States

149,619

27,850,081

671,496,369

Specialized

REITs

2.6%

SBA

Communications

Corp.

.............................

United

States

360,486

94,047,193

Specialty

Retail

1.6%

a

AutoZone,

Inc.

.......................................

United

States

10,586

28,193,800

a

Burlington

Stores,

Inc.

..................................

United

States

157,278

30,324,771

58,518,571

Technology

Hardware,

Storage

&

Peripherals

5.7%

Apple,

Inc.

..........................................

United

States

1,238,359

210,124,755

Textiles,

Apparel

&

Luxury

Goods

0.8%

NIKE,

Inc.,

B

.........................................

United

States

240,502

30,476,413

Total

Common

Stocks

(Cost

$1,513,777,960)

....................................

3,516,150,052

Convertible

Preferred

Stocks

1.0%

Software

1.0%

a,b,c

Databricks,

Inc.,

G

....................................

United

States

338,280

17,159,867

a,b,c

Lacework,

Inc.,

D

.....................................

United

States

810,440

13,042,937

a,b,c

OneTrust

LLC,

C

......................................

United

States

517,056

5,218,729

35,421,533

Total

Convertible

Preferred

Stocks

(Cost

$50,470,099)

...........................

35,421,533

Preferred

Stocks

1.1%

Commercial

Services

&

Supplies

0.2%

a,b,c,e

Optoro,

Inc.,

E

.......................................

United

States

556,026

8,167,495

a

Health

Care

Providers

&

Services

0.5%

a,b,c

Tempus

Labs,

Inc.,

F

...................................

United

States

504,854

15,164,614

a,b,c

Tempus

Labs,

Inc.,

G

..................................

United

States

126,131

3,788,676

18,953,290

Software

0.4%

a,b,c

ClearMotion,

Inc.,

A-3

..................................

United

States

417,667

60,443

a,b,c

ClearMotion,

Inc.,

A-4

..................................

United

States

2,606,463

355,706

a,b,c,e

Talkdesk,

Inc.,

C

......................................

United

States

1,753,060

9,955,707

a,b,c

Tanium,

Inc.,

G

.......................................

United

States

805,800

4,860,798

15,232,654

Total

Preferred

Stocks

(Cost

$44,049,689)

......................................

42,353,439

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

See

A

bbreviations

on

page

81

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,b

Proterra,

Inc.,

Escrow

Account

...........................

United

States

382,355

$

—

a,b

Wheels

Up

Experience,

Inc.,

Escrow

Account

................

United

States

102,780

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$1,608,297,748)

.............................

3,593,925,024

a

Short

Term

Investments

3.0%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.3%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

84,915,861

84,915,861

Total

Money

Market

Funds

(Cost

$84,915,861)

..................................

84,915,861

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.7%

Money

Market

Funds

0.7%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

24,476,348

24,476,348

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$24,476,348)

...........................................................

24,476,348

Total

Short

Term

Investments

(Cost

$109,392,209

)

...............................

109,392,209

a

Total

Investments

(Cost

$1,717,689,957)

100.6%

................................

$3,703,317,233

Other

Assets,

less

Liabilities

(0.6)%

...........................................

(22,214,138)

Net

Assets

100.0%

...........................................................

$3,681,103,095

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

c

See

Note

7

regarding

restricted

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2023.

See

Note

1(d).

e

See

Note

8

regarding

holdings

of

5%

voting

securities.

f

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

h

See

Note

1(d)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$17.78

$30.08

$18.85

$21.46

$23.01

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.09)

(0.14)

(0.18)

(0.11)

(0.15)

Net

realized

and

unrealized

gains

(losses)

...........

(0.40)

(7.89)

14.24

(1.07)

2.86

Total

from

investment

operations

....................

(0.49)

(8.03)

14.06

(1.18)

2.71

Less

distributions

from:

Net

realized

gains

.............................

(0.10)

(4.27)

(2.83)

(1.43)

(4.26)

Net

asset

value,

end

of

year

.......................

$17.19

$17.78

$30.08

$18.85

$21.46

Total

return

c

...................................

(2.73)%

(29.53)%

76.43%

(6.25)%

16.06%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.11%

1.03%

1.03%

1.07%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.10%

1.03%

e

1.02%

1.06%

1.06%

Net

investment

(loss)

............................

(0.54)%

(0.54)%

(0.69)%

(0.51)%

(0.68)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$763,871

$860,536

$1,244,591

$686,791

$713,442

Portfolio

turnover

rate

............................

16.86%

30.88%

47.80%

35.29%

42.10%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$12.37

$22.57

$14.69

$17.15

$19.41

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.15)

(0.25)

(0.29)

(0.21)

(0.28)

Net

realized

and

unrealized

gains

(losses)

...........

(0.28)

(5.68)

11.00

(0.82)

2.28

Total

from

investment

operations

....................

(0.43)

(5.93)

10.71

(1.03)

2.00

Less

distributions

from:

Net

realized

gains

.............................

(0.10)

(4.27)

(2.83)

(1.43)

(4.26)

Net

asset

value,

end

of

year

.......................

$11.84

$12.37

$22.57

$14.69

$17.15

Total

return

c

...................................

(3.44)%

(30.07)%

75.13%

(6.97)%

15.31%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.86%

1.78%

1.78%

1.82%

1.82%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.84%

1.78%

e

1.77%

1.81%

1.81%

Net

investment

(loss)

............................

(1.28)%

(1.31)%

(1.43)%

(1.26)%

(1.43)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$20,551

$32,755

$86,394

$66,269

$90,513

Portfolio

turnover

rate

............................

16.86%

30.88%

47.80%

35.29%

42.10%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.10

$27.76

$17.58

$20.15

$21.93

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.12)

(0.19)

(0.23)

(0.15)

(0.20)

Net

realized

and

unrealized

gains

(losses)

...........

(0.36)

(7.20)

13.24

(0.99)

2.68

Total

from

investment

operations

....................

(0.48)

(7.39)

13.01

(1.14)

2.48

Less

distributions

from:

Net

realized

gains

.............................

(0.10)

(4.27)

(2.83)

(1.43)

(4.26)

Net

asset

value,

end

of

year

.......................

$15.52

$16.10

$27.76

$17.58

$20.15

Total

return

....................................

(2.95)%

(29.71)%

75.96%

(6.47)%

15.78%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.36%

1.28%

1.28%

1.32%

1.32%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.35%

1.28%

d

1.27%

1.31%

1.31%

Net

investment

(loss)

............................

(0.79)%

(0.79)%

(0.93)%

(0.76)%

(0.93)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$39,777

$50,324

$79,314

$54,369

$74,634

Portfolio

turnover

rate

............................

16.86%

30.88%

47.80%

35.29%

42.10%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.73

$34.14

$21.07

$23.73

$24.88

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.02)

(0.04)

(0.09)

(0.02)

(0.07)

Net

realized

and

unrealized

gains

(losses)

...........

(0.46)

(9.10)

15.99

(1.21)

3.18

Total

from

investment

operations

....................

(0.48)

(9.14)

15.90

(1.23)

3.11

Less

distributions

from:

Net

realized

gains

.............................

(0.10)

(4.27)

(2.83)

(1.43)

(4.26)

Net

asset

value,

end

of

year

.......................

$20.15

$20.73

$34.14

$21.07

$23.73

Total

return

....................................

(2.29)%

(29.26)%

77.13%

(5.86)%

16.50%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.68%

0.65%

0.65%

0.67%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.66%

0.64%

0.64%

0.64%

0.64%

Net

investment

(loss)

............................

(0.10)%

(0.15)%

(0.31)%

(0.09)%

(0.26)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,345,064

$1,529,170

$2,149,795

$1,136,759

$1,084,442

Portfolio

turnover

rate

............................

16.86%

30.88%

47.80%

35.29%

42.10%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$20.19

$33.43

$20.70

$23.37

$24.61

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.05)

(0.08)

(0.13)

(0.06)

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

(0.45)

(8.89)

15.69

(1.18)

3.12

Total

from

investment

operations

....................

(0.50)

(8.97)

15.56

(1.24)

3.02

Less

distributions

from:

Net

realized

gains

.............................

(0.10)

(4.27)

(2.83)

(1.43)

(4.26)

Net

asset

value,

end

of

year

.......................

$19.59

$20.19

$33.43

$20.70

$23.37

Total

return

....................................

(2.50)%

(29.34)%

76.86%

(5.99)%

16.30%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.86%

0.78%

0.78%

0.82%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.85%

0.77%

0.77%

0.81%

0.81%

Net

investment

(loss)

............................

(0.29)%

(0.29)%

(0.44)%

(0.26)%

(0.43)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$341,973

$433,191

$739,985

$428,155

$725,622

Portfolio

turnover

rate

............................

16.86%

30.88%

47.80%

35.29%

42.10%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

95.8%

Aerospace

&

Defense

5.3%

a

AAR

Corp.

..........................................

United

States

815,100

$

43,020,978

a

Axon

Enterprise,

Inc.

...................................

United

States

92,200

19,427,462

BWX

Technologies,

Inc.

................................

United

States

782,100

50,508,019

a

Kratos

Defense

&

Security

Solutions,

Inc.

...................

United

States

1,582,464

20,413,786

133,370,245

Banks

1.6%

Pinnacle

Financial

Partners,

Inc.

..........................

United

States

429,904

23,313,694

b

Western

Alliance

Bancorp

...............................

United

States

460,400

17,090,048

40,403,742

Biotechnology

7.8%

a

Alector,

Inc.

..........................................

United

States

581,300

3,836,580

a

Arcutis

Biotherapeutics,

Inc.

.............................

United

States

358,400

4,960,256

a

Ascendis

Pharma

A/S,

ADR

.............................

Denmark

217,200

15,195,312

a

Chinook

Therapeutics,

Inc.

..............................

United

States

410,500

8,214,105

a

Cullinan

Oncology,

Inc.

.................................

United

States

427,500

4,159,575

a

Cytokinetics,

Inc.

......................................

United

States

321,000

12,005,400

a

Day

One

Biopharmaceuticals,

Inc.

.........................

United

States

885,622

10,981,713

a

Dyne

Therapeutics,

Inc.

................................

United

States

736,500

7,630,140

a

Heron

Therapeutics,

Inc.

................................

United

States

1,797,608

4,296,283

a

Insmed,

Inc.

.........................................

United

States

1,099,600

21,442,200

a

IVERIC

bio,

Inc.

......................................

United

States

383,600

12,616,604

a

Karuna

Therapeutics,

Inc.

...............................

United

States

71,700

14,228,148

a

Kura

Oncology,

Inc.

....................................

United

States

571,700

5,568,358

a

Merus

NV

...........................................

Netherlands

312,800

5,999,504

a

Mirati

Therapeutics,

Inc.

................................

United

States

214,900

9,522,219

a

PTC

Therapeutics,

Inc.

.................................

United

States

735,500

40,555,470

a

Sutro

Biopharma,

Inc.

..................................

United

States

968,449

4,125,592

a

Twist

Bioscience

Corp.

.................................

United

States

119,862

1,495,878

a

Vaxcyte,

Inc.

.........................................

United

States

204,100

8,741,603

195,574,940

Building

Products

1.1%

a

Masonite

International

Corp.

.............................

United

States

300,200

27,441,282

Capital

Markets

3.2%

Bridge

Investment

Group

Holdings,

Inc.,

A

...................

United

States

1,410,600

14,091,894

Evercore,

Inc.,

A

......................................

United

States

239,800

27,353,986

Houlihan

Lokey,

Inc.

...................................

United

States

435,600

39,805,128

81,251,008

Communications

Equipment

0.7%

a

Viavi

Solutions,

Inc.

....................................

United

States

1,924,500

17,243,520

Construction

&

Engineering

3.0%

Arcosa,

Inc.

.........................................

United

States

685,200

46,278,408

Granite

Construction,

Inc.

...............................

United

States

772,843

29,468,504

75,746,912

Consumer

Staples

Distribution

&

Retail

1.9%

a

Performance

Food

Group

Co.

............................

United

States

764,400

47,920,236

Diversified

Consumer

Services

0.6%

a

Nerdy,

Inc.

..........................................

United

States

3,825,800

15,188,426

Electronic

Equipment,

Instruments

&

Components

1.2%

Vontier

Corp.

.........................................

United

States

1,091,200

29,604,256

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Energy

Equipment

&

Services

1.4%

Liberty

Energy,

Inc.,

A

..................................

United

States

2,822,200

$

36,152,382

Financial

Services

4.5%

a

Flywire

Corp.

........................................

United

States

1,431,010

41,742,562

a

Marqeta,

Inc.,

A

.......................................

United

States

949,403

3,845,082

a,c

Paymentus

Holdings,

Inc.,

A

.............................

United

States

2,195,300

18,067,319

a

Repay

Holdings

Corp.

..................................

United

States

1,395,637

8,750,644

a

Shift4

Payments,

Inc.,

A

................................

United

States

587,900

39,841,983

112,247,590

Food

Products

4.2%

a

Freshpet,

Inc.

........................................

United

States

414,800

28,608,756

a

Hostess

Brands,

Inc.

...................................

United

States

784,174

20,200,322

a

Nomad

Foods

Ltd.

....................................

United

Kingdom

942,100

17,711,480

a

Simply

Good

Foods

Co.

(The)

............................

United

States

1,055,300

38,381,261

104,901,819

Health

Care

Equipment

&

Supplies

6.7%

a

Figs,

Inc.,

A

..........................................

United

States

957,700

6,895,440

a

Haemonetics

Corp.

....................................

United

States

485,600

40,649,576

a

Inari

Medical,

Inc.

.....................................

United

States

184,700

12,267,774

a

Inspire

Medical

Systems,

Inc.

............................

United

States

168,144

45,000,379

a

Integer

Holdings

Corp.

.................................

United

States

434,900

35,814,015

a

Neogen

Corp.

........................................

United

States

565,932

9,745,349

a

Nevro

Corp.

.........................................

United

States

348,300

10,194,741

a

Pulmonx

Corp.

.......................................

United

States

647,016

7,602,438

168,169,712

Health

Care

Providers

&

Services

4.2%

a

HealthEquity,

Inc.

.....................................

United

States

694,416

37,116,535

a

Hims

&

Hers

Health,

Inc.

................................

United

States

1,606,947

18,624,516

a

NeoGenomics,

Inc.

....................................

United

States

1,270,400

18,573,248

a

Privia

Health

Group,

Inc.

................................

United

States

1,090,200

30,122,226

104,436,525

Health

Care

Technology

2.5%

a

Certara,

Inc.

.........................................

United

States

1,122,500

27,130,825

a

Phreesia,

Inc.

........................................

United

States

1,103,182

34,904,679

62,035,504

Hotel

&

Resort

REITs

0.7%

Pebblebrook

Hotel

Trust

................................

United

States

1,174,800

16,717,404

Hotels,

Restaurants

&

Leisure

5.6%

a

Portillo's,

Inc.,

A

......................................

United

States

920,700

19,905,534

Red

Rock

Resorts,

Inc.,

A

...............................

United

States

903,600

44,095,680

Texas

Roadhouse,

Inc.

.................................

United

States

388,900

43,020,118

Wingstop,

Inc.

........................................

United

States

163,013

32,620,531

139,641,863

Household

Durables

3.7%

a

M/I

Homes,

Inc.

.......................................

United

States

549,546

37,171,291

a

Sonos,

Inc.

..........................................

United

States

874,600

18,489,044

a

Tri

Pointe

Homes,

Inc.

..................................

United

States

1,303,000

37,370,040

93,030,375

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Industrial

REITs

1.4%

Rexford

Industrial

Realty,

Inc.

............................

United

States

616,400

$

34,376,628

IT

Services

0.4%

a

BigCommerce

Holdings,

Inc.,

1

...........................

United

States

1,260,100

9,312,139

Life

Sciences

Tools

&

Services

0.1%

a

CryoPort,

Inc.

........................................

United

States

156,600

3,294,864

Machinery

2.4%

Kennametal,

Inc.

......................................

United

States

920,700

23,901,372

a

Proterra,

Inc.

.........................................

United

States

4,726,443

5,529,938

a

RBC

Bearings,

Inc.

....................................

United

States

141,700

32,167,317

61,598,627

Media

1.0%

New

York

Times

Co.

(The),

A

.............................

United

States

662,156

26,320,701

Oil,

Gas

&

Consumable

Fuels

1.6%

Matador

Resources

Co.

................................

United

States

796,100

39,032,783

Passenger

Airlines

1.9%

a

Allegiant

Travel

Co.

....................................

United

States

448,448

46,598,232

a

Wheels

Up

Experience,

Inc.

.............................

United

States

1,123,619

519,674

a,d

Wheels

Up

Experience,

Inc.

.............................

United

States

1,328,630

614,491

47,732,397

Personal

Care

Products

1.7%

a

BellRing

Brands,

Inc.

...................................

United

States

1,163,300

41,867,167

Pharmaceuticals

3.4%

a

Cymabay

Therapeutics,

Inc.

.............................

United

States

662,700

7,130,652

a,b,c

EyePoint

Pharmaceuticals,

Inc.

...........................

United

States

1,957,100

12,290,588

a

Intra-Cellular

Therapies,

Inc.

.............................

United

States

339,400

21,093,710

a

Pliant

Therapeutics,

Inc.

................................

United

States

521,100

14,721,075

a

Revance

Therapeutics,

Inc.

..............................

United

States

963,592

30,671,133

85,907,158

Professional

Services

2.4%

a

Legalzoom.com,

Inc.

...................................

United

States

2,471,080

23,178,730

a

Paycor

HCM,

Inc.

.....................................

United

States

1,616,200

37,980,700

61,159,430

Semiconductors

&

Semiconductor

Equipment

5.0%

a

Lattice

Semiconductor

Corp.

.............................

United

States

579,400

46,178,180

a

Onto

Innovation,

Inc.

...................................

United

States

453,209

36,700,865

a

Silicon

Laboratories,

Inc.

................................

United

States

62,600

8,720,180

a

SiTime

Corp.

.........................................

United

States

312,212

33,865,636

125,464,861

Software

6.4%

a

Alkami

Technology,

Inc.

.................................

United

States

513,250

6,153,868

a

Alteryx,

Inc.,

A

........................................

United

States

293,900

12,088,107

a

AvePoint,

Inc.

........................................

United

States

1,771,700

7,689,178

a,d,e

ClearMotion,

Inc.

......................................

United

States

3,698,772

429,531

a

CS

Disco,

Inc.

........................................

United

States

2,102,613

12,363,364

a

Envestnet,

Inc.

.......................................

United

States

289,622

18,356,242

a

Freshworks,

Inc.,

A

....................................

United

States

1,529,300

20,431,448

a

Gitlab,

Inc.,

A

........................................

United

States

798,400

24,239,424

a

LiveRamp

Holdings,

Inc.

................................

United

States

1,000,500

24,102,045

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Software

(continued)

a

Monday.com

Ltd.

......................................

United

States

254,900

$

31,077,408

a

Q2

Holdings,

Inc.

.....................................

United

States

204,600

5,037,252

161,967,867

Specialty

Retail

5.0%

American

Eagle

Outfitters,

Inc.

...........................

United

States

1,677,400

22,460,386

a

Boot

Barn

Holdings,

Inc.

................................

United

States

478,660

34,688,490

a

Five

Below,

Inc.

.......................................

United

States

188,400

37,182,624

Lithia

Motors,

Inc.,

A

...................................

United

States

44,726

9,879,526

a

MYT

Netherlands

Parent

BV,

ADR

.........................

Germany

511,104

2,509,521

a

Petco

Health

&

Wellness

Co.,

Inc.

.........................

United

States

1,942,500

19,347,300

126,067,847

Textiles,

Apparel

&

Luxury

Goods

1.1%

a,b

Rent

the

Runway,

Inc.,

A

................................

United

States

1,176,558

3,070,816

Steven

Madden

Ltd.

...................................

United

States

720,950

25,262,088

28,332,904

Trading

Companies

&

Distributors

2.1%

a

Beacon

Roofing

Supply,

Inc.

.............................

United

States

451,000

27,141,180

a

Univar

Solutions,

Inc.

..................................

United

States

705,432

25,042,836

52,184,016

Total

Common

Stocks

(Cost

$2,208,992,125)

....................................

2,405,697,130

Convertible

Preferred

Stocks

2.1%

Diversified

Consumer

Services

0.5%

a,d,e

Newsela,

Inc.,

D

......................................

United

States

709,046

12,019,999

a

Software

1.3%

a,c,d,e

Benchling,

Inc.,

F

.....................................

United

States

382,306

5,803,206

a,d,e

Checkr,

Inc.,

E

.......................................

United

States

1,388,889

20,854,127

a,d,e

OneTrust

LLC,

A

......................................

United

States

625,361

6,311,869

a,d,e

OneTrust

LLC,

A-1

....................................

United

States

56,457

569,829

33,539,031

Specialty

Retail

0.3%

a,c,d,e

1661,

Inc.,

F

.........................................

United

States

3,436,485

6,545,566

a

Total

Convertible

Preferred

Stocks

(Cost

$80,000,001)

...........................

52,104,596

Preferred

Stocks

0.7%

Automobile

Components

0.2%

a,d,e

Tula

eTechnology,

Inc.

..................................

United

States

361,111

—

a,d,e

Tula

eTechnology,

Inc.,

E

...............................

United

States

3,611,111

6,232,998

6,232,998

Commercial

Services

&

Supplies

0.3%

a,c,d,e

Optoro,

Inc.,

E

.......................................

United

States

554,878

8,150,632

a

Software

0.2%

a,d,e

ClearMotion,

Inc.,

A-3

..................................

United

States

1,037,942

150,206

a,d,e

ClearMotion,

Inc.,

A-4

..................................

United

States

6,477,294

883,963

a,d,e

Smule,

Inc.

..........................................

United

States

162,712

2,274,314

a,d,e

Smule,

Inc.,

144A,

G

...................................

United

States

1,542,673

1,309,862

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

See

Abbreviations

on

page

81

.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Preferred

Stocks

(continued)

Software

(continued)

a,d,e

Smule,

Inc.,

144A,

H

...................................

United

States

352,675

$

353,990

4,972,335

Total

Preferred

Stocks

(Cost

$32,909,382)

......................................

19,355,965

Escrows

and

Litigation

Trusts

0.0%

a,e

Proterra,

Inc.,

Escrow

Account

...........................

United

States

344,921

—

a,e

Wheels

Up

Experience,

Inc.,

Escrow

Account

................

United

States

88,098

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$2,321,901,508)

.............................

2,477,157,691

a

Short

Term

Investments

1.8%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.3%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

32,742,362

32,742,362

Total

Money

Market

Funds

(Cost

$32,742,362)

..................................

32,742,362

a

a

a

h

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.5%

Money

Market

Funds

0.5%

f,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

12,159,690

12,159,690

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$12,159,690)

...........................................................

12,159,690

Total

Short

Term

Investments

(Cost

$44,902,052

)

................................

44,902,052

a

Total

Investments

(Cost

$2,366,803,560)

100.4%

................................

$2,522,059,743

Other

Assets,

less

Liabilities

(0.4)%

...........................................

(10,824,804)

Net

Assets

100.0%

...........................................................

$2,511,234,939

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2023.

See

Note

1(d).

c

See

Note

8

regarding

holdings

of

5%

voting

securities.

d

See

Note

7

regarding

restricted

securities.

e

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

f

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

h

See

Note

1(d)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$33.07

$49.66

$32.15

$37.17

$36.07

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.05)

(0.25)

(0.24)

(0.07)

(0.09)

Net

realized

and

unrealized

gains

(losses)

...........

(1.39)

(9.42)

21.89

1.24

5.33

Total

from

investment

operations

....................

(1.44)

(9.67)

21.65

1.17

5.24

Less

distributions

from:

Net

realized

gains

.............................

(1.88)

(6.92)

(4.14)

(6.19)

(4.14)

Net

asset

value,

end

of

year

.......................

$29.75

$33.07

$49.66

$32.15

$37.17

Total

return

c

...................................

(4.07)%

(22.83)%

68.37%

2.97%

17.43%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.90%

0.85%

0.86%

0.88%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.88%

0.84%

0.85%

0.87%

0.87%

Net

investment

(loss)

............................

(0.17)%

(0.54)%

(0.54)%

(0.21)%

(0.25)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,578,199

$3,019,703

$4,217,167

$2,515,801

$2,684,131

Portfolio

turnover

rate

............................

27.75%

48.89%

53.69%

52.98%

54.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$16.20

$27.98

$19.41

$24.98

$25.84

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.13)

(0.32)

(0.33)

(0.22)

(0.26)

Net

realized

and

unrealized

gains

(losses)

...........

(0.74)

(4.54)

13.04

0.84

3.54

Total

from

investment

operations

....................

(0.87)

(4.86)

12.71

0.62

3.28

Less

distributions

from:

Net

realized

gains

.............................

(1.88)

(6.92)

(4.14)

(6.19)

(4.14)

Net

asset

value,

end

of

year

.......................

$13.45

$16.20

$27.98

$19.41

$24.98

Total

return

c

...................................

(4.76)%

(23.43)%

67.11%

2.14%

16.68%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.65%

1.60%

1.61%

1.63%

1.63%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.63%

1.59%

1.60%

1.62%

1.62%

Net

investment

(loss)

............................

(0.92)%

(1.29)%

(1.28)%

(0.96)%

(1.00)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$82,982

$110,596

$198,713

$138,940

$173,334

Portfolio

turnover

rate

............................

27.75%

48.89%

53.69%

52.98%

54.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.11

$43.32

$28.45

$33.66

$33.15

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.11)

(0.32)

(0.30)

(0.14)

(0.16)

Net

realized

and

unrealized

gains

(losses)

...........

(1.19)

(7.97)

19.31

1.12

4.81

Total

from

investment

operations

....................

(1.30)

(8.29)

19.01

0.98

4.65

Less

distributions

from:

Net

realized

gains

.............................

(1.88)

(6.92)

(4.14)

(6.19)

(4.14)

Net

asset

value,

end

of

year

.......................

$24.93

$28.11

$43.32

$28.45

$33.66

Total

return

....................................

(4.30)%

(23.00)%

67.96%

2.69%

17.17%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.15%

1.10%

1.10%

1.12%

1.12%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

1.13%

1.09%

1.09%

1.11%

1.11%

Net

investment

(loss)

............................

(0.42)%

(0.79)%

(0.78)%

(0.45)%

(0.49)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$34,371

$38,761

$60,264

$40,997

$50,721

Portfolio

turnover

rate

............................

27.75%

48.89%

53.69%

52.98%

54.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$39.84

$58.24

$37.12

$41.83

$39.91

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.08

(0.10)

(0.10)

0.07

0.05

Net

realized

and

unrealized

gains

(losses)

...........

(1.65)

(11.38)

25.36

1.41

6.01

Total

from

investment

operations

....................

(1.57)

(11.48)

25.26

1.48

6.06

Less

distributions

from:

Net

realized

gains

.............................

(1.88)

(6.92)

(4.14)

(6.19)

(4.14)

Net

asset

value,

end

of

year

.......................

$36.39

$39.84

$58.24

$37.12

$41.83

Total

return

....................................

(3.70)%

(22.57)%

68.95%

3.40%

17.82%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.53%

0.51%

0.51%

0.52%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.49%

0.50%

0.49%

0.48%

0.49%

Net

investment

income

(loss)

......................

0.23%

(0.19)%

(0.19)%

0.18%

0.13%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$451,447

$540,509

$648,078

$224,341

$259,053

Portfolio

turnover

rate

............................

27.75%

48.89%

53.69%

52.98%

54.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$38.68

$56.79

$36.30

$41.09

$39.33

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

....................

0.03

(0.15)

(0.14)

0.02

0.01

Net

realized

and

unrealized

gains

(losses)

...........

(1.61)

(11.04)

24.77

1.38

5.89

Total

from

investment

operations

....................

(1.58)

(11.19)

24.63

1.40

5.90

Less

distributions

from:

Net

realized

gains

.............................

(1.88)

(6.92)

(4.14)

(6.19)

(4.14)

Net

asset

value,

end

of

year

.......................

$35.22

$38.68

$56.79

$36.30

$41.09

Total

return

....................................

(3.81)%

(22.65)%

68.77%

3.26%

17.67%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.65%

0.60%

0.61%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

c

......

0.63%

0.59%

0.60%

0.62%

0.62%

Net

investment

income

(loss)

......................

0.08

%

(0.28)%

(0.29)%

0.04%

—%

d

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$469,050

$532,573

$552,987

$302,329

$355,141

Portfolio

turnover

rate

............................

27.75%

48.89%

53.69%

52.98%

54.28%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

92.7%

Aerospace

&

Defense

1.7%

TransDigm

Group,

Inc.

.................................

United

States

80,400

$

61,506,000

Automobile

Components

0.0%

†

a

Mobileye

Global,

Inc.,

A

.................................

Israel

20,700

779,148

Beverages

0.9%

Brown-Forman

Corp.,

B

................................

United

States

503,600

32,779,324

Biotechnology

2.9%

a

Alnylam

Pharmaceuticals,

Inc.

............................

United

States

135,600

27,011,520

a

Incyte

Corp.

.........................................

United

States

162,500

12,091,625

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

137,900

13,933,416

a

PTC

Therapeutics,

Inc.

.................................

United

States

512,900

28,281,306

a

Seagen,

Inc.

.........................................

United

States

124,900

24,980,000

106,297,867

Building

Products

1.6%

Trane

Technologies

plc

.................................

United

States

312,100

57,991,301

Capital

Markets

5.1%

Ares

Management

Corp.

................................

United

States

624,400

54,691,196

LPL

Financial

Holdings,

Inc.

.............................

United

States

143,500

29,968,540

MSCI,

Inc.

...........................................

United

States

132,400

63,876,380

Nasdaq,

Inc.

.........................................

United

States

164,400

9,102,828

Tradeweb

Markets,

Inc.,

A

...............................

United

States

389,300

27,410,613

185,049,557

Chemicals

0.6%

Albemarle

Corp.

......................................

United

States

106,600

19,770,036

Commercial

Services

&

Supplies

1.4%

Republic

Services,

Inc.

.................................

United

States

352,300

50,949,626

Communications

Equipment

2.0%

a

Arista

Networks,

Inc.

...................................

United

States

448,100

71,767,696

Containers

&

Packaging

1.0%

Avery

Dennison

Corp.

..................................

United

States

205,700

35,890,536

Electrical

Equipment

1.4%

AMETEK,

Inc.

........................................

United

States

142,300

19,627,439

Rockwell

Automation,

Inc.

...............................

United

States

112,300

31,826,943

51,454,382

Electronic

Equipment,

Instruments

&

Components

1.1%

Amphenol

Corp.,

A

....................................

United

States

47,700

3,599,919

a

Zebra

Technologies

Corp.,

A

.............................

United

States

130,700

37,645,521

41,245,440

Energy

Equipment

&

Services

0.3%

Halliburton

Co.

.......................................

United

States

371,700

12,173,175

Entertainment

0.6%

a

ROBLOX

Corp.,

A

.....................................

United

States

604,800

21,530,880

Financial

Services

1.1%

a,b

Adyen

NV,

144A,

Reg

S

................................

Netherlands

17,200

27,640,357

a

Toast,

Inc.,

A

.........................................

United

States

740,500

13,477,100

41,117,457

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Food

Products

0.6%

a

Freshpet,

Inc.

........................................

United

States

310,900

$

21,442,773

Ground

Transportation

1.6%

Old

Dominion

Freight

Line,

Inc.

...........................

United

States

180,750

57,910,493

Health

Care

Equipment

&

Supplies

6.2%

a

Dexcom,

Inc.

.........................................

United

States

607,056

73,660,175

a

IDEXX

Laboratories,

Inc.

................................

United

States

125,200

61,618,432

a

Inari

Medical,

Inc.

.....................................

United

States

324,200

21,533,364

a

Insulet

Corp.

.........................................

United

States

144,700

46,020,388

a

Penumbra,

Inc.

.......................................

United

States

80,800

22,956,896

225,789,255

Health

Care

Providers

&

Services

0.5%

a

HealthEquity,

Inc.

.....................................

United

States

355,600

19,006,820

Health

Care

Technology

1.9%

a

Certara,

Inc.

.........................................

United

States

551,900

13,339,423

a

Veeva

Systems,

Inc.,

A

.................................

United

States

304,600

54,547,768

67,887,191

Hotels,

Restaurants

&

Leisure

7.2%

a

Chipotle

Mexican

Grill,

Inc.

..............................

United

States

49,000

101,313,380

Darden

Restaurants,

Inc.

...............................

United

States

310,700

47,204,651

a

DoorDash,

Inc.,

A

.....................................

United

States

184,600

11,295,674

a

Expedia

Group,

Inc.

...................................

United

States

426,800

40,102,128

Vail

Resorts,

Inc.

......................................

United

States

135,500

32,590,460

a

Wynn

Resorts

Ltd.

....................................

United

States

238,900

27,301,492

259,807,785

Household

Durables

1.6%

a

NVR,

Inc.

...........................................

United

States

10,000

58,400,000

Industrial

REITs

0.8%

Terreno

Realty

Corp.

...................................

United

States

449,800

27,703,182

Interactive

Media

&

Services

1.8%

a

Match

Group,

Inc.

.....................................

United

States

945,759

34,898,507

a

Pinterest,

Inc.,

A

......................................

United

States

1,256,100

28,890,300

63,788,807

IT

Services

2.3%

a

Cloudflare,

Inc.,

A

.....................................

United

States

605,300

28,479,365

a

MongoDB,

Inc.

.......................................

United

States

119,900

28,771,204

a

Shopify,

Inc.,

A

.......................................

Canada

526,800

25,523,460

82,774,029

Leisure

Products

1.5%

a,c,d

Fanatics

Holdings,

Inc.

.................................

United

States

793,714

54,971,598

Life

Sciences

Tools

&

Services

5.3%

a

10X

Genomics,

Inc.,

A

..................................

United

States

449,600

23,572,528

Agilent

Technologies,

Inc.

...............................

United

States

328,200

44,448,126

a

Mettler-Toledo

International,

Inc.

..........................

United

States

42,900

63,985,350

West

Pharmaceutical

Services,

Inc.

........................

United

States

165,000

59,604,600

191,610,604

Machinery

1.0%

IDEX

Corp.

..........................................

United

States

149,500

30,844,840

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Machinery

(continued)

a

Proterra,

Inc.

.........................................

United

States

2,874,055

$

3,362,644

34,207,484

Oil,

Gas

&

Consumable

Fuels

2.8%

Cheniere

Energy,

Inc.

..................................

United

States

184,000

28,152,000

Coterra

Energy,

Inc.

...................................

United

States

787,300

20,154,880

Hess

Corp.

..........................................

United

States

231,400

33,566,884

Targa

Resources

Corp.

.................................

United

States

257,700

19,464,081

101,337,845

Passenger

Airlines

1.4%

a

Delta

Air

Lines,

Inc.

....................................

United

States

1,512,500

51,893,875

Personal

Care

Products

1.1%

a

BellRing

Brands,

Inc.

...................................

United

States

1,052,900

37,893,871

Pharmaceuticals

1.5%

a

Catalent,

Inc.

........................................

United

States

541,200

27,124,944

a

Jazz

Pharmaceuticals

plc

...............................

United

States

194,100

27,265,227

54,390,171

Professional

Services

4.8%

a

CoStar

Group,

Inc.

....................................

United

States

405,200

31,180,140

Paychex,

Inc.

........................................

United

States

554,800

60,950,328

a

Paylocity

Holding

Corp.

.................................

United

States

193,364

37,375,328

TransUnion

..........................................

United

States

648,100

44,595,761

174,101,557

Residential

REITs

1.0%

Equity

LifeStyle

Properties,

Inc.

...........................

United

States

504,100

34,732,490

Semiconductors

&

Semiconductor

Equipment

4.4%

a

Enphase

Energy,

Inc.

..................................

United

States

122,900

20,180,180

KLA

Corp.

...........................................

United

States

33,600

12,987,744

a

Lattice

Semiconductor

Corp.

.............................

United

States

504,114

40,177,886

Monolithic

Power

Systems,

Inc.

...........................

United

States

103,100

47,629,107

a

SiTime

Corp.

.........................................

United

States

235,214

25,513,662

a

Wolfspeed,

Inc.

.......................................

United

States

235,100

10,943,905

157,432,484

Software

10.4%

a

Alkami

Technology,

Inc.

.................................

United

States

1,110,200

13,311,298

a

ANSYS,

Inc.

.........................................

United

States

160,900

50,509,728

a

Arteris,

Inc.

..........................................

United

States

1,319,600

4,908,912

a

Atlassian

Corp.,

A

.....................................

United

States

160,800

23,743,728

a

BILL

Holdings,

Inc.

....................................

United

States

243,433

18,698,089

a

Crowdstrike

Holdings,

Inc.,

A

.............................

United

States

415,500

49,880,775

a

Datadog,

Inc.,

A

......................................

United

States

282,400

19,028,112

a

Fair

Isaac

Corp.

......................................

United

States

39,400

28,681,230

a

Monday.com

Ltd.

......................................

United

States

135,400

16,507,968

a

Palo

Alto

Networks,

Inc.

................................

United

States

144,000

26,274,240

a

Synopsys,

Inc.

.......................................

United

States

297,000

110,282,040

a

Workday,

Inc.,

A

......................................

United

States

77,900

14,500,306

376,326,426

Specialized

REITs

0.9%

SBA

Communications

Corp.

.............................

United

States

122,000

31,828,580

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Specialty

Retail

6.0%

a

AutoZone,

Inc.

.......................................

United

States

21,100

$

56,195,841

a

Burlington

Stores,

Inc.

..................................

United

States

228,600

44,076,366

a

Five

Below,

Inc.

.......................................

United

States

201,200

39,708,832

a

Petco

Health

&

Wellness

Co.,

Inc.

.........................

United

States

1,391,400

13,858,344

Tractor

Supply

Co.

....................................

United

States

265,400

63,271,360

217,110,743

Textiles,

Apparel

&

Luxury

Goods

2.5%

Levi

Strauss

&

Co.,

A

..................................

United

States

213,300

3,084,318

a

Lululemon

Athletica,

Inc.

................................

United

States

229,200

87,079,956

90,164,274

Trading

Companies

&

Distributors

1.9%

Fastenal

Co.

.........................................

United

States

1,263,800

68,042,992

Total

Common

Stocks

(Cost

$2,627,580,770)

....................................

3,350,857,754

Convertible

Preferred

Stocks

1.1%

Diversified

Consumer

Services

0.2%

a,c,d

Newsela,

Inc.,

D

......................................

United

States

423,782

7,184,103

a

Semiconductors

&

Semiconductor

Equipment

0.1%

a,c,d,e

Phononic

Devices,

Inc.,

F

...............................

United

States

2,970,061

2,020,235

a

Software

0.8%

a,c,d,e

Benchling,

Inc.,

F

.....................................

United

States

347,106

5,268,888

a,c,d,e

Blaize,

Inc.,

D

........................................

United

States

1,948,384

3,051,900

a,c,d,e

Blaize,

Inc.,

D-2

......................................

United

States

1,467,659

1,094,514

a,c,d

Databricks,

Inc.,

G

....................................

United

States

227,829

11,557,040

a,c,d

OneTrust

LLC,

C

......................................

United

States

767,526

7,746,763

28,719,105

Total

Convertible

Preferred

Stocks

(Cost

$83,781,543)

...........................

37,923,443

Preferred

Stocks

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d,e

Phononic

Devices,

Inc.,

G-2

.............................

United

States

513,050

771,484

a,c,d,e

Phononic,

Inc.

........................................

United

States

117,763

563,212

1,334,696

Total

Preferred

Stocks

(Cost

$460,692)

.........................................

1,334,696

Warrants

Warrants

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

a,c,d,e

Phononic,

Inc.,

H,

10/17/27

..............................

United

States

47,104

60,114

Software

0.0%

a,c,d,e

Blaize,

Inc.,

9/19/25

...................................

United

States

146,765

—

a,c,d,e

Blaize,

Inc.,

12/09/25

...................................

United

States

1

—

a,c,d,e

Blaize,

Inc.,

D,

2/28/24

.................................

United

States

260,815

—

—

Total

Warrants

(Cost

$44,091)

.................................................

60,114

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

0.0%

†

Software

0.0%

†

c,d,e

Blaize,

Inc.

,

10

%

,

12/09/24

..............................

United

States

570,121

$

570,178

Total

Corporate

Bonds

(Cost

$570,121)

........................................

570,178

f

Senior

Floating

Rate

Interests

0.0%

†

Semiconductors

&

Semiconductor

Equipment

0.0%

†

c,d,e,g

Phononic,

Inc.

,

Advance

Term

Loan

,

12

%

,

PIK,

6/30/25

.........

United

States

775,689

625,802

Total

Senior

Floating

Rate

Interests

(Cost

$722,182)

.............................

625,802

Shares

a

Escrows

and

Litigation

Trusts

0.0%

a,c

Proterra,

Inc.,

Escrow

Account

...........................

United

States

134,477

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

...................................

—

Total

Long

Term

Investments

(Cost

$2,713,159,399)

.............................

3,391,371,987

a

Short

Term

Investments

6.1%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

5.0%

h,i

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

180,826,526

180,826,526

Total

Money

Market

Funds

(Cost

$180,826,526)

.................................

180,826,526

Principal

Amount

*

a

a

a

Repurchase

Agreements

1.1%

j

Joint

Repurchase

Agreement,

4.693%,

5/01/23

(Maturity

Value

$39,951,390)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$20,146,687)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$7,717,010)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$12,087,693)

Collateralized

by

U.S.

Government

and

Agency

Securities,

2%

-

5.5%,

9/6/24

-

10/15/57;

U.S.

Treasury

Bonds,

Index

Linked,

2%

-

2.38%,

1/15/25

-

1/15/26;

and

U.S.

Treasury

Notes,

0.38%,

7/31/27

(valued

at

$40,756,543)

.........................

39,935,771

39,935,771

Total

Repurchase

Agreements

(Cost

$39,935,771)

...............................

39,935,771

Total

Short

Term

Investments

(Cost

$220,762,297

)

...............................

220,762,297

a

Total

Investments

(Cost

$2,933,921,696)

99.9%

..................................

$3,612,134,284

Other

Assets,

less

Liabilities

0.1%

.............................................

3,915,838

Net

Assets

100.0%

...........................................................

$3,616,050,122

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

51

See

Abbreviations

on

page

81

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

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

April

30,

2023,

the

value

of

this

security

was

$27,640,357,

representing

0.8%

of

net

assets.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

See

Note

7

regarding

restricted

securities.

e

See

Note

8

regarding

holdings

of

5%

voting

securities.

f

See

Note

1(e)

regarding

senior

floating

rate

interests.

g

Income

may

be

received

in

additional

securities

and/or

cash.

h

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

i

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

j

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

April

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$1,585,837,201

$2,208,517,325

$2,665,067,228

Cost

-

Non-controlled

affiliates

(Note

3

f

and

8

)

..................

131,852,756

158,286,235

228,918,697

Cost

-

Unaffiliated

repurchase

agreements

....................

—

—

39,935,771

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$22,746,815,

$11,663,982

and

$—,

respectively)

..........................

$3,575,801,822

$2,426,300,380

$3,377,345,660

Value

-

Non-controlled

affiliates

(Note

3

f

and

8

)

.................

127,515,411

95,759,363

194,852,853

Value

-

Unaffiliated

repurchase

agreements

....................

—

—

39,935,771

Cash

..................................................

56,887

65,786

307,667

Receivables:

Investment

securities

sold

.................................

4,948,891

11,021,374

16,475,146

Capital

shares

sold

......................................

3,007,932

1,914,113

1,545,405

Dividends

and

interest

...................................

609,432

72,598

996,831

Total

assets

........................................

3,711,940,375

2,535,133,614

3,631,459,333

Liabilities:

Payables:

Investment

securities

purchased

............................

—

7,162,419

8,747,426

Capital

shares

redeemed

.................................

2,789,197

2,234,987

2,962,439

Management

fees

.......................................

1,622,810

1,298,623

1,332,428

Distribution

fees

........................................

668,220

190,601

619,333

Transfer

agent

fees

......................................

1,019,834

638,925

1,449,211

Trustees'

fees

and

expenses

...............................

8

10

52

Payable

upon

return

of

securities

loaned

(Note

1

d

)

................

24,476,348

12,159,690

—

Accrued

expenses

and

other

liabilities

.........................

260,863

213,420

298,322

Total

liabilities

.......................................

30,837,280

23,898,675

15,409,211

Net

assets,

at

value

...............................

$3,681,103,095

$2,511,234,939

$3,616,050,122

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,682,507,877

$2,401,810,777

$3,395,524,026

Total

distributable

earnings

(losses)

...........................

1,998,595,218

109,424,162

220,526,096

Net

assets,

at

value

...............................

$3,681,103,095

$2,511,234,939

$3,616,050,122

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

April

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

A:

Net

assets,

at

value

.....................................

$2,765,017,388

$763,870,662

$2,578,199,140

Shares

outstanding

......................................

70,620,010

44,434,052

86,656,136

Net

asset

value

per

share

a

................................

$39.15

$17.19

$29.75

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

..............................................

$41.43

$18.19

$31.48

Class

C:

Net

assets,

at

value

.....................................

$119,069,177

$20,550,654

$82,982,488

Shares

outstanding

......................................

4,125,200

1,735,380

6,168,870

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$28.86

$11.84

$13.45

Class

R:

Net

assets,

at

value

.....................................

$22,664,009

$39,777,145

$34,370,989

Shares

outstanding

......................................

627,244

2,563,589

1,378,460

Net

asset

value

and

maximum

offering

price

per

share

...........

$36.13

$15.52

$24.93

Class

R6:

Net

assets,

at

value

.....................................

$449,118,720

$1,345,063,957

$451,447,243

Shares

outstanding

......................................

10,008,295

66,760,370

12,404,134

Net

asset

value

and

maximum

offering

price

per

share

...........

$44.87

$20.15

$36.39

Advisor

Class:

Net

assets,

at

value

.....................................

$325,233,801

$341,972,521

$469,050,262

Shares

outstanding

......................................

7,398,938

17,455,746

13,317,153

Net

asset

value

and

maximum

offering

price

per

share

...........

$43.96

$19.59

$35.22

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

April

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

*Includes

gains

from

a

redemption

in-kind

(Note

3h)

$145,404,409

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$34,481,

$–

and

$–,

respectively)

Unaffiliated

issuers

......................................

$19,634,477

$11,558,627

$21,017,257

Non-controlled

affiliates

(Note

3

f

and

8

)

.......................

1,253,546

1,078,885

4,766,567

Interest:

Unaffiliated

issuers

......................................

—

—

537,348

Non-controlled

affiliates

(Note

3

f

and

8

)

.......................

—

—

123,311

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

...................

1,902,375

1,179,908

(2,709)

Non-controlled

affiliates

(Note

3

f

)

...........................

965,190

668,562

23,356

Total

investment

income

.................................

23,755,588

14,485,982

26,465,130

Expenses:

Management

fees

(Note

3

a

)

.................................

20,449,298

16,069,980

16,932,459

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

6,936,262

1,919,136

6,609,234

    Class

C

..............................................

1,283,337

237,975

913,693

    Class

R

..............................................

115,374

213,564

169,958

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

3,665,793

1,650,805

4,564,667

    Class

C

..............................................

169,119

51,169

157,622

    Class

R

..............................................

30,434

91,960

58,631

    Class

R6

.............................................

101,841

500,605

247,301

    Advisor

Class

..........................................

500,661

793,877

818,843

Custodian

fees

(Note

4

)

....................................

55,467

9,871

27,209

Reports

to

shareholders

fees

................................

180,813

291,362

204,550

Registration

and

filing

fees

..................................

135,752

125,815

198,280

Professional

fees

.........................................

89,269

77,234

78,429

Trustees'

fees

and

expenses

................................

38,368

28,383

42,882

Interest

expense

.........................................

3,038

581

—

Other

..................................................

174,226

122,248

149,984

Total

expenses

.......................................

33,929,052

22,184,565

31,173,742

Expense

reductions

(Note

4

)

.............................

(3,729)

(4,364)

(193)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(295,600)

(367,575)

(811,464)

Net

expenses

.......................................

33,629,723

21,812,626

30,362,085

Net

investment

income

(loss)

..........................

(9,874,135)

(7,326,644)

(3,896,955)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:*

Unaffiliated

issuers

....................................

159,660,544

(91,504,428)

(241,399,597)

Non-controlled

affiliates

(Note

3

f

and

8

)

.....................

—

(4,131,478)

(28,162)

Foreign

currency

transactions

..............................

(26)

—

(12,122)

Net

realized

gain

(loss)

................................

159,660,518

(95,635,906)

(241,439,881)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(372,838,321)

51,776,610

81,680,018

Non-controlled

affiliates

(Note

3

f

and

8

)

.....................

(18,133,801)

(31,826,808)

(25,393,340)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

...........................................

—

—

13,077

Net

change

in

unrealized

appreciation

(depreciation)

..........

(390,972,122)

19,949,802

56,299,755

Net

realized

and

unrealized

gain

(loss)

..........................

(231,311,604)

(75,686,104)

(185,140,126)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(241,185,739)

$(83,012,748)

$(189,037,081)

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(9,874,135)

$(26,385,964)

$(7,326,644)

$(12,128,676)

Net

realized

gain

(loss)

............

159,660,518

394,534,506

(95,635,906)

202,442,914

Net

change

in

unrealized

appreciation

(depreciation)

.................

(390,972,122)

(1,250,301,003)

19,949,802

(1,434,354,666)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(241,185,739)

(882,152,461)

(83,012,748)

(1,244,040,428)

Distributions

to

shareholders:

Class

A

........................

(117,604,433)

(359,718,850)

(4,398,226)

(181,623,574)

Class

C

........................

(7,051,867)

(24,116,585)

(182,310)

(11,157,943)

Class

R

........................

(1,037,867)

(3,445,814)

(269,006)

(11,001,401)

Class

R6

.......................

(16,500,576)

(45,124,223)

(6,963,574)

(275,811,029)

Advisor

Class

...................

(12,978,865)

(60,941,142)

(1,824,783)

(86,977,922)

Total

distributions

to

shareholders

.....

(155,173,608)

(493,346,614)

(13,637,899)

(566,571,869)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(156,935,909)

(6,279,016)

(65,065,140)

167,442,730

Class

C

........................

(22,566,167)

(67,672,792)

(10,464,989)

(24,866,698)

Class

R

........................

(1,799,745)

(4,737,474)

(8,407,569)

3,295,454

Class

R6

.......................

23,823,563

33,819,307

(136,904,139)

295,833,158

Advisor

Class

...................

(264,796,290)

189,846,207

(77,248,269)

(25,196,039)

Total

capital

share

transactions

.......

(422,274,548)

144,976,232

(298,090,106)

416,508,605

Net

increase

(decrease)

in

net

assets

.....................

(818,633,895)

(1,230,522,843)

(394,740,753)

(1,394,103,692)

Net

assets:

Beginning

of

year

..................

4,499,736,990

5,730,259,833

2,905,975,692

4,300,079,384

End

of

year

......................

$3,681,103,095

$4,499,736,990

$2,511,234,939

$2,905,975,692

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

Franklin

Small-Mid

Cap

Growth

Fund

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(3,896,955)

$(27,433,029)

Net

realized

gain

(loss)

.................................................

(241,439,881)

265,460,024

Net

change

in

unrealized

appreciation

(depreciation)

...........................

56,299,755

(1,518,326,849)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(189,037,081)

(1,280,299,854)

Distributions

to

shareholders:

Class

A

.............................................................

(158,598,985)

(568,582,110)

Class

C

.............................................................

(10,930,574)

(38,633,049)

Class

R

.............................................................

(2,417,236)

(8,635,560)

Class

R6

............................................................

(22,679,273)

(85,137,628)

Advisor

Class

........................................................

(24,693,770)

(83,955,454)

Total

distributions

to

shareholders

..........................................

(219,319,838)

(784,943,801)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(147,703,497)

274,759,286

Class

C

.............................................................

(10,637,467)

(15,778,928)

Class

R

.............................................................

(158,411)

(1,091,727)

Class

R6

............................................................

(44,934,203)

143,151,443

Advisor

Class

........................................................

(14,301,398)

229,136,029

Total

capital

share

transactions

............................................

(217,734,976)

630,176,103

Net

increase

(decrease)

in

net

assets

...................................

(626,091,895)

(1,435,067,552)

Net

assets:

Beginning

of

year

.......................................................

4,242,142,017

5,677,209,569

End

of

year

...........................................................

$3,616,050,122

$4,242,142,017

Franklin

Strategic

Series

57

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

ten

separate

funds, three

of

which

are

included

in

this

report

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

offer five classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6,

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Franklin

Strategic

Series

Notes

to

Financial

Statements

58

franklintempleton.com

Annual

Report

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Funds.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

April

30,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

59

franklintempleton.com

Annual

Report

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

year

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

April

28,

2023.

d.

Securities

Lending

Certain

or

all

Funds

participate

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds. The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statements

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

April

30,

2023,

Franklin

Small-Mid

Cap

Growth

Fund

had

no

securities

on

loan.

e.

Senior

Floating

Rate

Interests

Certain

or

all

Funds

invest

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

Interbank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the

Funds

invest

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

f.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

April

30,

2023, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction.

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

60

franklintempleton.com

Annual

Report

is

received

by

the

Funds.

Certain

or

all

Funds

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Funds.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

h.

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.

i.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

61

franklintempleton.com

Annual

Report

2

.

Shares

of

Beneficial

Interest

At

April

3

0

,

202

3

,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value)

.

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2023

Shares

sold

a

...................................

4,502,909

$173,052,149

6,638,254

$110,403,207

Shares

issued

in

reinvestment

of

distributions

..........

3,214,869

114,802,255

267,974

4,284,631

Shares

redeemed

...............................

(11,643,392)

(444,790,313)

(10,879,344)

(179,752,978)

Net

increase

(decrease)

..........................

(3,925,614)

$(156,935,909)

(3,973,116)

$(65,065,140)

Year

ended

April

30,

2022

Shares

sold

a

...................................

6,890,606

$396,777,803

9,253,728

$238,990,129

Shares

issued

in

reinvestment

of

distributions

..........

6,082,227

350,944,784

7,947,202

176,427,893

Shares

redeemed

...............................

(13,159,714)

(754,001,603)

(10,164,246)

(247,975,292)

Net

increase

(decrease)

..........................

(186,881)

$(6,279,016)

7,036,684

$167,442,730

Class

C

Class

C

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

619,760

$17,604,728

334,406

$3,847,147

Shares

issued

in

reinvestment

of

distributions

..........

266,009

7,022,634

16,407

181,129

Shares

redeemed

a

..............................

(1,642,280)

(47,193,529)

(1,263,004)

(14,493,265)

Net

increase

(decrease)

..........................

(756,511)

$(22,566,167)

(912,191)

$(10,464,989)

Year

ended

April

30,

2022

Shares

sold

...................................

806,835

$35,542,381

365,784

$6,912,044

Shares

issued

in

reinvestment

of

distributions

..........

550,017

24,013,761

717,415

11,112,762

Shares

redeemed

a

..............................

(2,830,083)

(127,228,934)

(2,263,971)

(42,891,504)

Net

increase

(decrease)

..........................

(1,473,231)

$(67,672,792)

(1,180,772)

$(24,866,698)

Class

R

Class

R

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

79,609

$2,804,309

449,685

$6,762,540

Shares

issued

in

reinvestment

of

distributions

..........

31,444

1,037,342

18,629

269,006

Shares

redeemed

...............................

(158,057)

(5,641,396)

(1,031,229)

(15,439,115)

Net

increase

(decrease)

..........................

(47,004)

$(1,799,745)

(562,915)

$(8,407,569)

Year

ended

April

30,

2022

Shares

sold

...................................

76,942

$3,980,274

551,504

$11,946,416

Shares

issued

in

reinvestment

of

distributions

..........

64,252

3,445,813

546,789

11,001,401

Shares

redeemed

...............................

(233,672)

(12,163,561)

(828,577)

(19,652,363)

Net

increase

(decrease)

..........................

(92,478)

$(4,737,474)

269,716

$3,295,454

Class

R6

Franklin

Strategic

Series

Notes

to

Financial

Statements

62

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

1,651,644

$70,823,865

12,663,755

$246,093,068

Shares

issued

in

reinvestment

of

distributions

..........

295,080

12,059,884

331,570

6,203,670

Shares

redeemed

...............................

(1,359,181)

(59,060,186)

(20,016,884)

(389,200,877)

Net

increase

(decrease)

..........................

587,543

$23,823,563

(7,021,559)

$(136,904,139)

Year

ended

April

30,

2022

Shares

sold

...................................

1,240,329

$80,658,673

18,516,718

$540,887,626

Shares

issued

in

reinvestment

of

distributions

..........

492,336

32,218,482

9,701,881

250,696,604

Shares

redeemed

...............................

(1,254,887)

(79,057,848)

(17,399,202)

(495,751,072)

Net

increase

(decrease)

..........................

477,778

$33,819,307

10,819,397

$295,833,158

Advisor

Class

Advisor

Class

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

4,060,600

$171,533,914

4,622,859

$87,576,461

Shares

issued

in

reinvestment

of

distributions

..........

315,501

12,635,806

88,186

1,604,993

Shares

redeemed

in-kind

(Note

3h

)

..................

(5,364,050)

(242,240,519)

—

—

Shares

redeemed

...............................

(4,855,182)

(206,725,491)

(8,708,001)

(166,429,723)

Net

increase

(decrease)

..........................

(5,843,131)

$(264,796,290)

(3,996,956)

$(77,248,269)

Year

ended

April

30,

2022

Shares

sold

...................................

4,816,438

$312,058,174

4,892,787

$136,887,334

Shares

issued

in

reinvestment

of

distributions

..........

934,701

60,035,832

2,985,266

75,198,838

Shares

redeemed

...............................

(2,885,831)

(182,247,799)

(8,558,404)

(237,282,211)

Net

increase

(decrease)

..........................

2,865,308

$189,846,207

(680,351)

$(25,196,039)

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2023

Shares

sold

a

...................................

6,633,600

$198,652,679

Shares

issued

in

reinvestment

of

distributions

..........

5,494,365

154,666,446

Shares

redeemed

...............................

(16,780,836)

(501,022,622)

Net

increase

(decrease)

..........................

(4,652,871)

$(147,703,497)

Year

ended

April

30,

2022

Shares

sold

a

...................................

10,434,368

$484,680,273

Shares

issued

in

reinvestment

of

distributions

..........

12,690,378

554,315,810

Shares

redeemed

...............................

(16,735,087)

(764,236,797)

Net

increase

(decrease)

..........................

6,389,659

$274,759,286

Class

C

2

.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

63

franklintempleton.com

Annual

Report

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Class

C

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

860,980

$12,250,320

Shares

issued

in

reinvestment

of

distributions

..........

851,635

10,866,855

Shares

redeemed

a

..............................

(2,370,166)

(33,754,642)

Net

increase

(decrease)

..........................

(657,551)

$(10,637,467)

Year

ended

April

30,

2022

Shares

sold

...................................

1,058,316

$25,966,238

Shares

issued

in

reinvestment

of

distributions

..........

1,792,755

38,472,525

Shares

redeemed

a

..............................

(3,125,852)

(80,217,691)

Net

increase

(decrease)

..........................

(274,781)

$(15,778,928)

Class

R

Class

R

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

229,482

$5,787,643

Shares

issued

in

reinvestment

of

distributions

..........

101,961

2,408,346

Shares

redeemed

...............................

(331,668)

(8,354,400)

Net

increase

(decrease)

..........................

(225)

$(158,411)

Year

ended

April

30,

2022

Shares

sold

...................................

216,423

$8,644,434

Shares

issued

in

reinvestment

of

distributions

..........

231,763

8,610,007

Shares

redeemed

...............................

(460,531)

(18,346,168)

Net

increase

(decrease)

..........................

(12,345)

$(1,091,727)

Class

R6

Class

R6

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

2,952,937

$107,377,100

Shares

issued

in

reinvestment

of

distributions

..........

581,100

19,984,012

Shares

redeemed

...............................

(4,697,122)

(172,295,315)

Net

increase

(decrease)

..........................

(1,163,085)

$(44,934,203)

Year

ended

April

30,

2022

Shares

sold

...................................

5,242,939

$288,735,264

Shares

issued

in

reinvestment

of

distributions

..........

1,465,418

77,007,708

Shares

redeemed

...............................

(4,268,611)

(222,591,529)

Net

increase

(decrease)

..........................

2,439,746

$143,151,443

Advisor

Class

2

.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

64

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

Franklin

Growth

Opportunities

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Small-Mid

Cap

Growth

Fund

Shares

Amount

Advisor

Class

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

2,320,439

$83,749,485

Shares

issued

in

reinvestment

of

distributions

..........

724,960

24,141,123

Shares

redeemed

...............................

(3,498,606)

(122,192,006)

Net

increase

(decrease)

..........................

(453,207)

$(14,301,398)

Year

ended

April

30,

2022

Shares

sold

...................................

5,277,785

$293,020,383

Shares

issued

in

reinvestment

of

distributions

..........

1,600,230

81,659,747

Shares

redeemed

...............................

(2,845,020)

(145,544,101)

Net

increase

(decrease)

..........................

4,032,995

$229,136,029

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.700%

Up

to

and

including

$500

million

0.600%

Over

$500

million,

up

to

and

including

$1

billion

0.550%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.500%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.475%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.450%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.440%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.430%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.420%

In

excess

of

$21.5

billion

2

.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

65

franklintempleton.com

Annual

Report

Franklin

Small

Cap

Growth

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Small-Mid

Cap

Growth

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

April

30,

2023,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

each

of

the

Funds’

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

Annualized

Fee

Rate

Net

Assets

0.750%

Up

to

and

including

$500

million

0.650%

Over

$500

million,

up

to

and

including

$1

billion

0.600%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.550%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.525%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.500%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.490%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.480%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.470%

In

excess

of

$21.5

billion

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Gross

effective

investment

management

fee

rate

........

0.547%

0.617%

0.457%

3.

Transactions

with

Affiliates

(continued)

a.

Management

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

66

franklintempleton.com

Annual

Report

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

For

Franklin

Growth

Opportunities

Fund

and

Franklin

Small

Cap

Growth

Fund,

the

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

year

ended

April

30,

2023,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

A

...............................

0.35%

0.35%

0.25%

Class

C

...............................

1.00%

1.00%

1.00%

Class

R

...............................

0.50%

0.50%

0.50%

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$210,549

$97,036

$238,484

CDSC

retained

...........................

$11,389

$11,077

$23,273

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Transfer

agent

fees

........................

$1,715,396

$1,301,917

$1,846,470

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

67

franklintempleton.com

Annual

Report

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

April

30,

2023,

investments

in

affiliated

management

investment

companies

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$

66,393,267

$

628,331,750

$

(609,809,156)

$

—

$

—

$

84,915,861

84,915,861

$

1,253,546

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$98,247,070

$356,767,089

$(430,537,811)

$—

$—

$24,476,348

24,476,348

$965,190

Total

Affiliated

Securities

...

$164,640,337

$985,098,839

$(1,040,346,967)

$—

$—

$109,392,209

$2,218,736

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$69,092,890

$418,450,276

$(454,800,804)

$—

$—

$32,742,362

32,742,362

$1,078,885

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$87,800,835

$473,301,521

$(548,942,666)

$—

$—

$12,159,690

12,159,690

$668,562

Total

Affiliated

Securities

...

$156,893,725

$891,751,797

$(1,003,743,470)

$—

$—

$44,902,052

$1,747,447

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$

195,919,198

$

397,298,975

$

(412,391,647)

$

—

$

—

$

180,826,526

180,826,526

$

4,766,567

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

68

franklintempleton.com

Annual

Report

g.

Waiver

and

Expense

Reimbursements

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

August

31,

2023.

h.

Other

Affiliated

Transactions

During

the

year

ended

April

30,

2023,

the

New

Jersey

Better

Educational

Savings

Trust

Program

-

Franklin

Templeton

Managed

Investments

Options

(529

Portfolios)

redeemed

out

of

the

Franklin

Growth

Opportunities

Fund.

As

a

result,

on

July

22,

2022,

the

Fund

delivered

portfolio

securities

and

cash

that

were

transferred

in-kind

to

the

529

Portfolios,

which

included

$145,404,409

of

net

realized

gains.

As

such

gains

are

not

taxable

to

the

Fund

and

are

not

distributed

to

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

to

paid-in

capital.  

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses. During

the

year ended

April

30,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2023,

the

capital

loss

carryforwards

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$22,421,425

$76,653,145

$(99,074,570)

$—

$—

$—

—

$23,356

Total

Affiliated

Securities

...

$218,340,623

$473,952,120

$(511,466,217)

$—

$—

$180,826,526

$4,789,923

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

31,793,662

$

420,583,613

Long

term

.............................

63,983,400

21,321,771

Total

capital

loss

carryforwards

............

$95,777,062

$441,905,384

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

69

franklintempleton.com

Annual

Report

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2023

and

2022,

was

as

follows:

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

April

30,

2023,

the

deferred

losses

were

as

follows:

At

April

30,

2023,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

long

term

capital

gain

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales

and

gains

realized

on

in-kind

shareholder

redemptions.

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

2023

2022

2023

2022

Distributions

paid

from:

Ordinary

income

........................

$—

$20,782,601

$—

$97,151,885

Long

term

capital

gain

....................

155,173,608

472,564,013

13,637,899

469,419,984

$155,173,608

$493,346,614

$13,637,899

$566,571,869

Franklin

Small-Mid

Cap

Growth

Fund

2023

2022

Distributions

paid

from:

Ordinary

income

........................

$—

$145,205,359

Long

term

capital

gain

....................

219,319,838

639,738,442

$219,319,838

$784,943,801

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Late-year

ordinary

loss

...........................

$3,841,241

$972,503

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

a

a

a

a

Cost

of

investments

.......................

$1,718,651,377

$2,374,001,741

$2,956,560,440

Unrealized

appreciation

.....................

$2,084,179,069

$689,844,782

$1,008,786,056

Unrealized

depreciation

.....................

(99,513,213)

(541,786,780)

(353,212,212)

Net

unrealized

appreciation

(depreciation)

.......

$1,984,665,856

$148,058,002

$655,573,844

Distributable

earnings:

Undistributed

long

term

capital

gains

...........

$13,929,361

$—

$—

5.

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

70

franklintempleton.com

Annual

Report

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

year

ended

April

30,

2023,

were

as

follows:

a

Sales

of

investments

excludes

in-kind

transactions

of

$222,425,536.

At

April

30,

2023,

in

connection

with

securities

lending

transactions,

certain

or

all

Funds

loaned

investments

and

received

cash

collateral

as

follows:

7.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

April

30,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Purchases

..............................

$614,847,607

$433,385,627

$983,717,105

Sales

..................................

$994,254,876

a

$697,172,651

$1,455,898,651

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Securities

lending

transactions

a

:

Equity

investments

b

........................

$24,476,348

$12,159,690

$—

a

The

agreements

can

be

terminated

at

any

time.

b

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statements

of

Assets

and

Liabilities.

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

11,829

Canva,

Inc.

................................

12/22/21

$

20,158,531

$

9,178,870

4,619

Celonis

SE

.................................

6/16/21

1,708,060

1,079,626

25,571

Celonis

SE,

D

..............................

6/16/21-10/04/22

9,427,681

5,976,862

6,309,366

ClearMotion,

Inc

.

............................

11/06/17-12/21/18

15,500,000

732,694

417,667

ClearMotion,

Inc.,

A-3

.........................

3/23/23

—

60,443

2,606,463

ClearMotion,

Inc.,

A-4

.

........................

12/21/21

251,500

355,706

338,280

Databricks,

Inc.,

G

...........................

2/01/21

20,000,005

17,159,867

1,029,939

Fanatics

Holdings,

Inc.

........................

8/13/20-3/22/21

19,730,229

71,332,234

37,734

IL

MAKIAGE

Cosmetics

(2013)

Ltd.

..............

12/06/21

16,241,091

16,934,771

810,440

Lacework,

Inc.,

D

............................

11/12/21

20,330,471

13,042,937

517,056

OneTrust

LLC,

C

............................

4/01/21

10,139,623

5,218,729

556,026

Optoro,

Inc.,

E

..............................

7/24/18-12/01/21

10,942,592

8,167,495

Franklin

Strategic

Series

Notes

to

Financial

Statements

71

franklintempleton.com

Annual

Report

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

(continued)

142,857

Space

Exploration

Technologies

Corp.,

A

..........

5/25/22

$

9,999,990

$

10,999,989

1,753,060

Talkdesk,

Inc.,

C

............................

7/15/20

11,517,955

9,955,707

805,800

Tanium,

Inc.,

G

..............................

9/14/15

4,000,233

4,860,798

504,854

Tempus

Labs,

Inc.,

F

.........................

5/29/19

12,499,983

15,164,614

126,131

Tempus

Labs,

Inc.,

G

.........................

2/06/20

4,837,426

3,788,676

Total

Restricted

Securities

(Value

is

5.3%

of

Net

Assets)

..............

$187,285,370

$194,010,018

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Small

Cap

Growth

Fund

3,436,485

1661,

Inc.,

F

................................

5/28/21

$

19,999,999

$

6,545,566

382,306

Benchling,

Inc.,

F

............................

10/20/21

12,499,992

5,803,206

1,388,889

Checkr,

Inc.,

E

..............................

8/24/21

25,000,002

20,854,127

1,037,942

ClearMotion

Inc.,

A-3

.........................

3/23/23

—

150,206

3,698,772

ClearMotion,

Inc.

............................

12/21/18

10,000,000

429,531

6,477,294

ClearMotion,

Inc.,

A-4

.

........................

12/21/21

625,000

883,963

709,046

Newsela,

Inc.,

D

.............................

1/21/21

15,000,010

12,019,999

625,361

OneTrust

LLC,

A

............................

3/10/23

6,878,971

6,311,869

56,457

OneTrust

LLC,

A-1

...........................

3/10/23

621,027

569,829

554,878

Optoro,

Inc.,

E

..............................

7/24/18-12/01/21

10,919,999

8,150,632

162,712

Smule

Inc.

.................................

8/05/22-11/28/22

764,393

2,274,314

1,542,673

Smule,

Inc.,

144A,

G

.........................

5/31/16

11,099,995

1,309,862

352,675

Smule,

Inc.,

144A,

H

.........................

4/27/17

2,999,995

353,990

361,111

Tula

eTechnology,

Inc.

........................

11/01/18

—

—

3,611,111

Tula

eTechnology,

Inc.,

E

......................

9/08/17

6,500,000

6,232,998

1,328,630

a

Wheels

Up

Experience,

Inc.

....................

2/01/21

13,286,300

614,491

Total

Restricted

Securities

(Value

is

2.9%

of

Net

Assets)

..............

$136,195,683

$72,504,583

Principal

Amount

*

/

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Small-Mid

Cap

Growth

Fund

347,106

Benchling,

Inc.,

F

............................

10/20/21

$

11,349,082

$

5,268,888

570,121

Blaize,

Inc.,

10%,

12/09/24

.....................

1/19/23

570,121

570,178

1

Blaize,

Inc.,

12/09/25

.........................

1/19/23

57

—

146,765

Blaize,

Inc.,

9/19/25

..........................

9/20/22-9/22/22

5

—

1,948,384

Blaize,

Inc.,

D

..............................

3/02/21-11/09/21

20,346,009

3,051,900

260,815

Blaize,

Inc.,

D,

2/28/24

........................

3/01/21-11/09/21

—

—

1,467,659

Blaize,

Inc.,

D-2

.............................

4/01/22-9/20/22

7,099,996

1,094,514

227,829

Databricks,

Inc.,

G

...........................

2/01/21

13,469,850

11,557,040

793,714

Fanatics

Holdings,

Inc.

........................

8/13/20-3/22/21

14,052,061

54,971,598

423,782

Newsela,

Inc.,

D

.............................

1/21/21

8,965,193

7,184,103

7.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

72

franklintempleton.com

Annual

Report

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2023,

investments

in

“affiliated

companies”

were

as

follows:

Principal

Amount*/

Shares/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

767,526

OneTrust

LLC,

C

............................

4/01/21

$

15,051,415

$

7,746,763

2,970,061

Phononic

Devices,

Inc.,

F

......................

6/06/19

7,499,998

2,020,235

513,050

Phononic

Devices,

Inc.,

G-2

....................

1/17/20-11/03/20

47

771,484

117,763

Phononic,

Inc.

..............................

10/17/22

460,645

563,212

775,689

Phononic,

Inc.,

Advance

Term

Loan,

12%,

PIK,

6/30/25

10/17/22

722,182

625,802

47,104

Phononic,

Inc.,

H,

10/17/27

....................

10/17/22

44,029

60,114

Total

Restricted

Securities

(Value

is

2.6%

of

Net

Assets)

..............

$99,630,690

$95,485,831

*

In

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$519,674

as

of

April

30,

2023.

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants/

Principal

Amount

*

Held

at

End

of

Year

Investment

Income

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

ClearMotion

Inc.

.....

$

624,624

$

—

$

—

$

—

$

—

a

$—

a

—

a

$

—

ClearMotion,

Inc.,

A-4..

.

—

251,500

b

—

—

—

a

—

a

—

a

—

Optoro,

Inc.,

E

.......

9,587,680

—

—

—

(1,420,185)

8,167,495

556,026

—

Talkdesk,

Inc.,

C

.....

26,669,323

—

—

—

(16,713,616)

9,955,707

1,753,060

—

Interest

ClearMotion,

Inc.,

7%,

12/21/22

.........

301,800

—

(251,500)

b

—

—

a

—

c

—

—

Total

Affiliated

Securities

(Value

is

0.5%

of

Net

Assets)

..........

$37,183,427

$251,500

$(251,500)

$—

$(18,133,801)

$18,123,202

$—

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

1661,

Inc.,

F

........

11,377,470

—

—

—

(4,831,904)

6,545,566

3,436,485

—

Benchling,

Inc.,

F

.....

6,824,162

—

—

—

(1,020,956)

5,803,206

382,306

—

7.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

73

franklintempleton.com

Annual

Report

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants/

Principal

Amount*

Held

at

End

of

Year

Investment

Income

Franklin

Small

Cap

Growth

Fund

(continued)

Non-Controlled

Affiliates

ClearMotion,

Inc.

.....

$

379,232

$

—

$

—

$

—

$

—

a

$—

a

—

a

$

—

ClearMotion,

Inc.,

A-4.

.

—

625,000

b

—

—

—

a

—

a

—

a

—

EyePoint

Pharmaceuticals,

Inc

.............

19,500,410

2,159,555

(516,978)

(287,645)

(8,564,754)

12,290,588

1,957,100

—

Nerdy,

Inc.

.........

16,226,640

118,579

(2,059,167)

(3,843,833)

—

a

—

a

—

a

—

Optoro,

Inc.,

E

.......

9,567,885

—

—

—

(1,417,253)

8,150,632

554,878

—

Paymentus

Holdings,

Inc.,

A

..............

27,620,424

6,438,836

—

—

(15,991,941)

18,067,319

2,195,300

—

Interest

ClearMotion,

Inc.,

7%,

12/21/22

.........

750,000

—

(625,000)

b

—

—

a

—

c

—

—

Total

Affiliated

Securities

(Value

is

2.0%

of

Net

Assets)

..........

$92,246,223

$9,341,970

$(3,201,145)

$(4,131,478)

$(31,826,808)

$50,857,311

$—

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Benchling,

Inc.,

F

.....

6,195,842

—

—

—

(926,954)

5,268,888

347,106

—

Blaize,

Inc.,

12/09/25

..

—

57

—

—

(57)

—

1

—

Blaize,

Inc.,

9/19/25

...

—

5

—

—

(5)

—

146,765

—

Blaize,

Inc.,

D

.......

16,733,295

—

—

—

(13,681,395)

3,051,900

1,948,384

—

Blaize,

Inc.,

D,

2/28/24

.

67,020

—

—

—

(67,020)

—

260,815

—

Blaize,

Inc.,

D-2

......

—

7,099,996

b

—

—

(6,005,482)

1,094,514

1,467,659

—

Phononic

Devices,

Inc.,

F

6,044,404

—

—

—

(4,024,169)

2,020,235

2,970,061

—

Phononic

Devices,

Inc.,

G-2

............

1,605,117

—

—

—

(833,633)

771,484

513,050

—

Phononic,

Inc.

.......

—

460,646

—

—

102,566

563,212

117,763

—

Phononic,

Inc.,

H,

10/17/27

.........

—

44,029

—

—

16,085

60,114

47,104

—

Interest

Blaize,

Inc.,

10%,

12/09/24

—

570,121

—

—

57

570,178

570,121

16,153

Blaize,

Inc.,

D,

10%,

8/24/23

..........

4,725,000

—

(4,725,000)

b

—

—

—

c

—

—

Phononic,

Inc.,

Advance

Term

Loan,

12%,

PIK,

6/30/25

..........

—

722,181

—

—

(96,379)

625,802

775,689

90,579

Phononic,

Inc.,

Advance

Term

Loan,

B,

12%,

PIK,

7/31/26

..........

112,590

3,466

(127,770)

(3,185)

14,899

—

c

—

1,790

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

74

franklintempleton.com

Annual

Report

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

April

30,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares/Warrants/

Principal

Amount*

Held

at

End

of

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Non-Controlled

Affiliates

Phononic,

Inc.,

Advance

Term

Loan,

D,

12%,

PIK,

12/01/25

......

$

266,507

$

8,105

$

(317,720)

$

4,989

$

38,119

$

—

c

—

$

4,400

Phononic,

Inc.,

Term

Loan,

A,

12%,

PIK,

1/17/24.

568,451

17,507

(609,203)

(31,791)

55,036

—

c

—

8,644

Phononic,

Inc.,

Term

Loan,

C,

12%,

PIK,

8/25/24

108,823

3,310

(128,950)

1,825

14,992

—

c

—

1,745

Total

Affiliated

Securities

(Value

is

0.4%

of

Net

Assets)

..........

$36,427,049

$8,929,423

$(5,908,643)

$(28,162)

$(25,393,340)

$14,026,327

$123,311

*

In

U.S.

dollars

unless

otherwise

indicated.

a

As

of

April

30,

2023,

no

longer

an

affiliate.

b

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

c

As

of

April

30,

2023,

no

longer

held

by

the

fund.

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

75

franklintempleton.com

Annual

Report

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

April

30,

2023,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

31,631,364

$

—

$

10,999,989

$

42,631,353

Automobiles

..........................

21,034,145

—

—

21,034,145

Beverages

...........................

95,592,672

—

—

95,592,672

Biotechnology

.........................

1,317,590

—

—

1,317,590

Broadline

Retail

.......................

193,225,104

—

—

193,225,104

Capital

Markets

........................

177,043,377

—

—

177,043,377

Chemicals

...........................

68,514,133

—

—

68,514,133

Commercial

Services

&

Supplies

...........

47,085,235

—

7,056,488

54,141,723

Electric

Utilities

........................

35,407,811

—

—

35,407,811

Financial

Services

......................

313,742,138

—

—

313,742,138

Food

Products

........................

42,150,595

—

—

42,150,595

Ground

Transportation

..................

70,330,365

—

—

70,330,365

Health

Care

Equipment

&

Supplies

.........

86,442,467

—

16,934,771

103,377,238

Health

Care

Providers

&

Services

..........

112,639,825

—

—

112,639,825

Health

Care

Technology

.................

19,651,523

—

—

19,651,523

Hotels,

Restaurants

&

Leisure

.............

89,333,321

—

—

89,333,321

Industrial

Conglomerates

................

35,745,181

—

—

35,745,181

Interactive

Media

&

Services

..............

249,091,558

—

—

249,091,558

IT

Services

...........................

10,592,607

—

9,178,870

19,771,477

Leisure

Products

.......................

—

—

71,332,234

71,332,234

Life

Sciences

Tools

&

Services

............

167,810,415

—

—

167,810,415

Machinery

............................

2,902,389

—

—

2,902,389

Pharmaceuticals

.......................

141,640,543

—

—

141,640,543

Professional

Services

...................

82,108,375

—

—

82,108,375

Semiconductors

&

Semiconductor

Equipment

.

240,951,666

—

—

240,951,666

Software

.............................

670,763,675

—

732,694

671,496,369

Specialized

REITs

......................

94,047,193

—

—

94,047,193

Specialty

Retail

........................

58,518,571

—

—

58,518,571

Technology

Hardware,

Storage

&

Peripherals

.

210,124,755

—

—

210,124,755

Textiles,

Apparel

&

Luxury

Goods

..........

30,476,413

—

—

30,476,413

Convertible

Preferred

Stocks

................

—

—

35,421,533

35,421,533

Preferred

Stocks

.........................

—

—

42,353,439

42,353,439

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

109,392,209

—

—

109,392,209

Total

Investments

in

Securities

...........

$3,509,307,215

$—

$194,010,018

$3,703,317,233

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

133,370,245

—

—

133,370,245

Banks

...............................

40,403,742

—

—

40,403,742

Biotechnology

.........................

195,574,940

—

—

195,574,940

Building

Products

......................

27,441,282

—

—

27,441,282

Capital

Markets

........................

81,251,008

—

—

81,251,008

Communications

Equipment

..............

17,243,520

—

—

17,243,520

Construction

&

Engineering

...............

75,746,912

—

—

75,746,912

Consumer

Staples

Distribution

&

Retail

......

47,920,236

—

—

47,920,236

Diversified

Consumer

Services

............

15,188,426

—

—

15,188,426

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

76

franklintempleton.com

Annual

Report

Level

1

Level

2

Level

3

Total

Franklin

Small

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Electronic

Equipment,

Instruments

&

Components

........................

$

29,604,256

$

—

$

—

$

29,604,256

Energy

Equipment

&

Services

.............

36,152,382

—

—

36,152,382

Financial

Services

......................

112,247,590

—

—

112,247,590

Food

Products

........................

104,901,819

—

—

104,901,819

Health

Care

Equipment

&

Supplies

.........

168,169,712

—

—

168,169,712

Health

Care

Providers

&

Services

..........

104,436,525

—

—

104,436,525

Health

Care

Technology

.................

62,035,504

—

—

62,035,504

Hotel

&

Resort

REITs

...................

16,717,404

—

—

16,717,404

Hotels,

Restaurants

&

Leisure

.............

139,641,863

—

—

139,641,863

Household

Durables

....................

93,030,375

—

—

93,030,375

Industrial

REITs

.......................

34,376,628

—

—

34,376,628

IT

Services

...........................

9,312,139

—

—

9,312,139

Life

Sciences

Tools

&

Services

............

3,294,864

—

—

3,294,864

Machinery

............................

61,598,627

—

—

61,598,627

Media

...............................

26,320,701

—

—

26,320,701

Oil,

Gas

&

Consumable

Fuels

.............

39,032,783

—

—

39,032,783

Passenger

Airlines

.....................

47,732,397

—

—

47,732,397

Personal

Care

Products

.................

41,867,167

—

—

41,867,167

Pharmaceuticals

.......................

85,907,158

—

—

85,907,158

Professional

Services

...................

61,159,430

—

—

61,159,430

Semiconductors

&

Semiconductor

Equipment

.

125,464,861

—

—

125,464,861

Software

.............................

161,538,336

—

429,531

161,967,867

Specialty

Retail

........................

126,067,847

—

—

126,067,847

Textiles,

Apparel

&

Luxury

Goods

..........

28,332,904

—

—

28,332,904

Trading

Companies

&

Distributors

..........

52,184,016

—

—

52,184,016

Convertible

Preferred

Stocks

................

—

—

52,104,596

52,104,596

Preferred

Stocks

.........................

—

—

19,355,965

a

19,355,965

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

44,902,052

—

—

44,902,052

Total

Investments

in

Securities

...........

$2,450,169,651

$—

$71,890,092

$2,522,059,743

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

61,506,000

—

—

61,506,000

Automobile

Components

.................

779,148

—

—

779,148

Beverages

...........................

32,779,324

—

—

32,779,324

Biotechnology

.........................

106,297,867

—

—

106,297,867

Building

Products

......................

57,991,301

—

—

57,991,301

Capital

Markets

........................

185,049,557

—

—

185,049,557

Chemicals

...........................

19,770,036

—

—

19,770,036

Commercial

Services

&

Supplies

...........

50,949,626

—

—

50,949,626

Communications

Equipment

..............

71,767,696

—

—

71,767,696

Containers

&

Packaging

.................

35,890,536

—

—

35,890,536

Electrical

Equipment

....................

51,454,382

—

—

51,454,382

Electronic

Equipment,

Instruments

&

Components

........................

41,245,440

—

—

41,245,440

Energy

Equipment

&

Services

.............

12,173,175

—

—

12,173,175

Entertainment

.........................

21,530,880

—

—

21,530,880

Financial

Services

......................

13,477,100

27,640,357

—

41,117,457

Food

Products

........................

21,442,773

—

—

21,442,773

Ground

Transportation

..................

57,910,493

—

—

57,910,493

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

77

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

At

April

30,

2023,

the

reconciliations are

as follows:

Level

1

Level

2

Level

3

Total

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Health

Care

Equipment

&

Supplies

.........

$

225,789,255

$

—

$

—

$

225,789,255

Health

Care

Providers

&

Services

..........

19,006,820

—

—

19,006,820

Health

Care

Technology

.................

67,887,191

—

—

67,887,191

Hotels,

Restaurants

&

Leisure

.............

259,807,785

—

—

259,807,785

Household

Durables

....................

58,400,000

—

—

58,400,000

Industrial

REITs

.......................

27,703,182

—

—

27,703,182

Interactive

Media

&

Services

..............

63,788,807

—

—

63,788,807

IT

Services

...........................

82,774,029

—

—

82,774,029

Leisure

Products

.......................

—

—

54,971,598

54,971,598

Life

Sciences

Tools

&

Services

............

191,610,604

—

—

191,610,604

Machinery

............................

34,207,484

—

—

34,207,484

Oil,

Gas

&

Consumable

Fuels

.............

101,337,845

—

—

101,337,845

Passenger

Airlines

.....................

51,893,875

—

—

51,893,875

Personal

Care

Products

.................

37,893,871

—

—

37,893,871

Pharmaceuticals

.......................

54,390,171

—

—

54,390,171

Professional

Services

...................

174,101,557

—

—

174,101,557

Residential

REITs

......................

34,732,490

—

—

34,732,490

Semiconductors

&

Semiconductor

Equipment

.

157,432,484

—

—

157,432,484

Software

.............................

376,326,426

—

—

376,326,426

Specialized

REITs

......................

31,828,580

—

—

31,828,580

Specialty

Retail

........................

217,110,743

—

—

217,110,743

Textiles,

Apparel

&

Luxury

Goods

..........

90,164,274

—

—

90,164,274

Trading

Companies

&

Distributors

..........

68,042,992

—

—

68,042,992

Convertible

Preferred

Stocks

................

—

—

37,923,443

37,923,443

Preferred

Stocks

.........................

—

—

1,334,696

1,334,696

Warrants

...............................

—

—

60,114

a

60,114

Corporate

Bonds

........................

—

—

570,178

570,178

Senior

Floating

Rate

Interests

...............

—

—

625,802

625,802

Escrows

and

Litigation

Trusts

...............

—

—

—

a

—

Short

Term

Investments

...................

180,826,526

39,935,771

—

220,762,297

Total

Investments

in

Securities

...........

$3,449,072,325

$67,576,128

b

$95,485,831

$3,612,134,284

a

Includes

financial

instruments

determined

to

have

no

value

at

April

30,

2023.

b

Includes

foreign

securities

valued

at

$27,640,357,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

—

$

9,999,990

$

—

$

—

$

—

$

—

$

—

$

999,999

$

10,999,989

$

999,999

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

78

franklintempleton.com

Annual

Report

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Growth

Opportunities

Fund

(continued)

Assets:

Investments

in

Securities:

Common

Stocks:

Commercial

Services

&

Supplies

........

$

6,164,029

$

4,986,169

$

—

$

—

$

—

$

—

$

—

$

(4,093,710)

$

7,056,488

$

(4,093,710)

Health

Care

Equipment

&

Supplies

.......

14,889,942

—

c

—

—

—

—

—

2,044,829

16,934,771

2,044,829

Hotels,

Restaurants

&

Leisure

.........

29,918,137

—

(15,142,819)

—

—

—

—

(14,775,318)

—

—

IT

Services

........

8,371,768

—

—

—

—

—

—

807,102

9,178,870

807,102

Leisure

Products

....

68,576,928

—

—

—

—

—

—

2,755,306

71,332,234

2,755,306

Software

..........

17,832,356

15,499,999

(12,004,812)

—

—

—

—

(20,594,849)

732,694

(14,767,305)

Convertible

Preferred

Stocks

:

Software

..........

43,394,108

—

c

—

—

—

—

—

(7,972,575)

35,421,533

(7,972,575)

Preferred

Stocks

:

Commercial

Services

&

Supplies

........

9,587,680

—

—

—

—

—

—

(1,420,185)

8,167,495

(1,420,185)

Health

Care

Providers

&

Services

........

21,812,596

—

—

—

—

—

—

(2,859,306)

18,953,290

(2,859,306)

Software

..........

33,530,513

251,500

c

(15,499,999)

—

—

—

—

(3,049,360)

15,232,654

(17,924,734)

Warrants

:

Software

..........

—

c

—

—

c

—

—

—

—

—

—

—

Corporate

Bonds

:

Software

..........

301,800

—

(251,500)

—

—

—

—

(50,300)

—

—

Escrows

and

Litigation

Trusts

:

.

.

.

.

.

.

.

.

.

 —

c

 —

 —

 —

 —

 —

 —

 —

 —

c

 —

Total

Investments

in

Securities

............

$254,379,857

$30,737,658

$(42,899,130)

$—

$—

$—

$—

$(48,208,367)

$194,010,018

$(42,430,579)

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Hotels,

Restaurants

&

Leisure

.........

15,035,973

—

(7,649,483)

—

—

—

—

(7,386,490)

—

—

Software

..........

—

10,000,000

—

—

—

—

—

(9,570,469)

429,531

(9,570,469)

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

12,627,000

—

—

—

—

—

—

(607,001)

12,019,999

(607,001)

Software

..........

33,213,053

7,499,998

—

—

—

—

—

(7,174,020)

33,539,031

(7,174,020)

Specialty

Retail

.....

11,377,470

—

—

—

—

—

—

(4,831,904)

6,545,566

(4,831,904)

Preferred

Stocks

:

Automobile

Components

8,860,467

c

—

—

—

—

—

—

(2,627,469)

6,232,998

c

(2,627,469)

Commercial

Services

&

Supplies

........

9,567,885

—

—

—

—

—

—

(1,417,253)

8,150,632

(1,417,253)

Software

..........

5,054,447

1,389,393

c

(10,000,000)

—

—

—

—

8,528,495

4,972,335

(1,092,274)

Warrants

:

Software

..........

—

c

—

—

c

—

—

—

—

—

—

—

Corporate

Bonds

:

Software

..........

750,000

—

(625,000)

—

—

—

—

(125,000)

—

—

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

79

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

April

30,

2023,

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Small

Cap

Growth

Fund

(continued)

Assets:

Investments

in

Securities:

Escrows

and

Litigation

Trusts

...........

$

—

c

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

c

$

—

Total

Investments

in

Securities

............

$96,486,295

$18,889,391

$(18,274,483)

$—

$—

$—

$—

$(25,211,111)

$71,890,092

$(27,320,390)

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Leisure

Products

....

52,848,244

—

—

—

—

—

—

2,123,354

54,971,598

2,123,354

Convertible

Preferred

Stocks

:

Diversified

Consumer

Services

........

7,546,894

—

—

—

—

—

—

(362,791)

7,184,103

(362,791)

Semiconductors

&

Semiconductor

Equipment

.......

6,044,404

—

—

—

—

—

—

(4,024,169)

2,020,235

(4,024,169)

Software

..........

48,448,409

27,446,005

(20,346,008)

—

—

—

—

(26,829,301)

28,719,105

(27,251,011)

Preferred

Stocks

:

Semiconductors

&

Semiconductor

Equipment

.......

1,605,117

460,64

6

—

—

—

—

—

(731,06

7

)

1,334,696

(731,06

7

)

Warrants

:

Semiconductors

&

Semiconductor

Equipment

.......

—

44,0

29

—

—

—

—

—

16,08

5

60,114

16,08

5

Software

..........

67,020

62

—

—

—

—

—

(67,082

)

—

c

(67,0

82

)

Corporate

Bonds

:

Software

..........

4,725,000

570,121

(4,725,000)

—

—

—

—

57

570,178

57

Senior

Floating

Rate

Interests

:

Semiconductors

&

Semiconductor

Equipment

.......

1,056,371

743,516

(1,176,605)

—

—

14,155

(28,162)

16,527

625,802

(96,380)

Escrows

and

Litigation

Trusts

:

.

.

.

.

.

.

.

.

.

 —

c

 —

 —

 —

 —

 —

 —

 —

 —

c

 —

Total

Investments

in

Securities

............

$122,341,459

$29,264,379

$(26,247,613)

$—

$—

$14,155

$(28,162)

$(29,858,387)

$95,485,831

$(30,393,004)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Includes

financial

instruments

determined

to

have

no

value.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

80

franklintempleton.com

Annual

Report

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Growth

Opportunities

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Leisure

Products.

.

.

.

.

.

.

$71,332,234

Market

comparables

Discount

for

lack

of

marketability

12.8%

Decrease

EV

/

revenue

multiple

1.6x

Increase

All

Other

Investments.

.

.

.

122,677,784

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$194,010,018

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Convertible

Preferred

Stocks:

Software.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

 $20,854,127

Market

comparables

Discount

for

lack

of

marketability

11.2%

Decrease

EV

/

revenue

multiple

4.4x

Increase

Volatility

of

peers

38.4%

Decrease

All

Other

Investments.

.

.

.

51,035,965

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$71,890,092

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Leisure

Products

............

$54,971,598

Market

comparables

Discount

for

lack

of

marketability

12.8%

Decrease

EV

/

revenue

multiple

1.6x

Increase

All

Other

Investments.

.

.

.

.

.

.

.

.

40,514,233

b,c 

Total.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

$95,485,831

a

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

81

franklintempleton.com

Annual

Report

11.

New

Accounting

Pronouncements

In

March

2020,

the FASB

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

LIBOR

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2024.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In June

2022,

the FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

12.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

b

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

c

Includes

financial

instruments

determined

to

have

no

value

at

April

30,

2023.

Abbreviations

List

EV

-

Enterprise

value

Selected

Portfolio

ADR

American

Depositary

Receipt

NYRS

New

York

Registry

Shares

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Report

of

Independent

Registered

Public

Accounting

Firm

82

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Growth

Opportunities

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Growth

Opportunities

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

(three

of

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

April

30,

2023,

the

related

statements

of

operations

for

the

year

ended

April

30,

2023,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

April

30,

2023,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2023

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

June

16,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

83

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amount

s

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

their

fiscal

year.

The

Funds

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2023:

Pursuant

to:

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$155,173,608

$13,637,899

$219,319,838

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$16,228,764

$11,306,499

$19,327,447

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$18,565,097

$11,306,499

$20,182,504

Franklin

Strategic

Series

Board

Members

and

Officers

84

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

Investments

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

118

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

118

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

118

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

85

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

118

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

118

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

118

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

86

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

110

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

January

2023

and

Trustee

since

2013

129

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

1991

118

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Legg

Mason

Partners

Fund

Advisor,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006

to

2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005

to

2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

87

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

88

franklintempleton.com

Annual

Report

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

89

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

STRATEGIC

SERIES

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

18,

2023

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

Franklin

Strategic

Series

Shareholder

Information

90

franklintempleton.com

Annual

Report

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Growth

Opportunities

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund

underperformed

its

benchmark

index,

the

Russell

3000

Growth

Index

(Index),

and

Performance

Universe

over

the

one-,

three-

and

five-year

periods,

with

a

significant

portion

of

the

underperformance

occurring

in

2021

and

2022,

due

to

high

inflation

and

rising

interest

rates

which

disproportionally

impacted

growth

equities.

Management

further

explained

that

the

Fund’s

largest

portfolio

allocations

were

to

the

technology,

health

care,

and

consumer

discretionary

sectors

which

underperformed

the

more

cyclical

exposures

of

the

Fund’s

Performance

Universe

peers.

Management

also

explained

that

the

Fund

underperformed

its

Index

due

to

the

Fund’s

underweight

position

to

mega-cap

technology

or

FANG

stocks

which

generally

outperformed

the

market

and

made

up

a

large

portion

of

the

index.

Management

reviewed

with

the

Board

the

enhancements

it

made

to

the

Fund’s

investment

processes

and

changes

in

the

Fund’s

portfolio

holdings,

which

resulted

in

improved

performance

in

early

2023.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

monitored.

Franklin

Small

Cap

Growth

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

small-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

reported

that

the

Fund’s

five-year

performance

ended

December

31,

2022

exceeded

that

of

its

benchmark,

the

Russell

2000

Growth

Index.

Management

explained

that

the

Fund’s

performance

over

the

12-18

months

ended

December

31,

2022

drove

the

Fund’s

relative

underperformance

for

the

three-

and

five-year

periods

versus

the

Performance

Universe.

Management

further

explained

that

the

Fund’s

relative

bias

toward

smaller

capitalization

stocks

was

a

primary

detractor

from

performance

versus

its

Performance

Universe

as

the

Fund’s

peers

tended

to

hold

larger

market

capitalization

stocks

than

the

Fund

which

outperformed

the

smaller

capitalization

stocks.

Management

reviewed

with

the

Board

the

enhancements

it

made

to

the

Fund’s

investment

processes

in

an

effort

to

improve

performance,

including

the

hiring

of

a

Risk

Analyst.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

monitored.

Franklin

Small-Mid

Cap

Growth

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mid-cap

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Franklin

Strategic

Series

Shareholder

Information

91

franklintempleton.com

Annual

Report

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

each

of

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Growth

Opportunities

Fund

included

the

Fund

and

17

other

multi-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Small

Cap

Growth

Fund

included

the

Fund

and

17

other

small-cap

growth

funds.

The

Expense

Group

for

the

Franklin

Small-Mid

Cap

Growth

Fund

included

the

Fund

and

13

other

mid-cap

growth

funds.

The

Board

noted

that

the

Management

Rates

and

actual

total

expense

ratios

for

these

Funds

were

below

the

medians

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

Franklin

Strategic

Series

Shareholder

Information

92

franklintempleton.com

Annual

Report

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FSS1

A

06/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Series

April

30,

2023

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

12

months

ended

April

30,

2023,

the

U.S.

economy

recovered

from

the

contraction

in

the

second

quarter

of

2022

and

expanded

moderately

in

the

subsequent

three

quarters.

Resilient

consumer

spending

and

improved

exports

amid

cooling

inflation

led

to

moderate

economic

growth.

However,

higher

interest

rates

meant

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity.

In

its

aggressive

fight

against

high

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

eight

times

during

the

period,

bringing

it

to

a

range

of

4.75%–

5.00%,

the

highest

level

since

2007.

At

its

March

2023

meeting,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings

but

softened

its

firm

outlook

on

future

rate

hikes.

Additionally,

Fed

Chair

Jerome

Powell

said

the

central

bank

most

likely

would

not

cut

rates

in

2023.

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

+2.66%

total

return

for

the

12-month

reporting

period

ended

April

30,

2023.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

during

the

first

half

of

the

reporting

period,

though

equities

rebounded

in

the

second

half.

Consumer

spending

continued

to

rise

but

deteriorating

financial

conditions,

including

regional

banking

stress

in

March

and

April,

and

investors’

expectations

for

slower

growth

intermittently

pressured

equity

markets.

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Strategic

Series’

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

This

letter

reflects

our

analysis

and

opinions

as

of

April

30,

2023,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Economic

and

Market

Overview

3

Franklin

Biotechnology

Discovery

Fund

4

Franklin

Natural

Resources

Fund

12

Financial

Highlights

and

Schedules

of

Investments

20

Financial

Statements

35

Notes

to

Financial

Statements

39

Report

of

Independent

Registered

Public

Accounting

Firm

53

Tax

Information

54

Board

Members

and

Officers

55

Shareholder

Information

60

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

posted

a

+2.66%

total

return

for

the

12

months

ended

April

30,

2023.

1

High

inflation,

rising

interest

rates

and

geopolitical

instability

contributed

to

a

sharp

decline

in

equity

prices

during

the

first

half

of

the

reporting

period,

though

equities

subsequently

rebounded

Consumer

spending

continued

to

rise

but

deteriorating

financial

conditions,

including

regional

banking

stress

in

March

and

April,

and

investors’

expectations

for

slower

growth

pressured

equity

markets.

Continued

supply-chain

disruptions,

strong

consumer

demand

and

volatile

energy

prices

drove

inflation.

Oil

and

commodity

prices

rose

following

Russia’s

invasion

of

Ukraine

in

February

2022,

before

gradually

receding.

Inflation

peaked

at

9.1%

in

June

2022,

the

highest

annual

rate

since

1981,

before

sliding

to

5.0%

in

March

2023.

The

labor

market

remained

strong

amid

a

high

level

of

nominal

growth,

which

sent

the

U.S.

unemployment

rate

down

to

a

historic

54-year

low

of

3.4%

in

January

2023

before

rising

marginally

to

3.5%

in

March.

U.S.

gross

domestic

product

recovered

from

the

contraction

in

the

second

quarter

of

2022

and

grew

at

a

3.2%

annualized

rate

in

the

third

quarter

of

2022,

eventually

slowing

to

1.1%

in

the

first

quarter

of

2023.

Rising

consumer

spending

and

increased

exports

amid

cooling

inflation

led

to

moderate

economic

growth

over

the

period.

However,

rising

interest

rates

translated

to

higher

borrowing

costs

for

individuals

and

businesses,

which

dampened

economic

activity,

especially

in

the

housing

and

financial

markets.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

rapidly

restricted

monetary

policy

during

the

period.

The

Fed

raised

the

federal

funds

target

rate

eight

times

to

end

the

period

at

a

range

of

4.75%–5.00%,

pushing

borrowing

costs

to

their

highest

levels

since

2007.

The

interest-rate

hikes

included

four

successive

75-basis-point

increases

at

its

June,

July,

September

and

November

2022

meetings

and

smaller

increases

at

its

remaining

meetings

during

the

period.

At

its

March

2023

meeting,

the

Fed

said

it

would

continue

to

reduce

bond

holdings

but

departed

from

previous

statements

by

softening

its

firm

outlook

on

future

rate

hikes.

Additionally,

Fed

Chair

Jerome

Powell

said

the

central

bank

most

likely

would

not

cut

rates

in

2023.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

April

30,

2023.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Annual

Report

Franklin

Biotechnology

Discovery

Fund

This

annual

report

for

Franklin

Biotechnology

Discovery

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

biotechnology

companies

and

discovery

research

firms

located

in

the

U.S.

and

other

countries.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.58%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

NASDAQ

Biotechnology

Index

®

,

which

tracks

U.S.-

and

international-based

biotechnology

stocks,

posted

a

+12.27%

cumulative

total

return.

1

Also

in

comparison,

the

Standard

&

Poor’s

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

the

U.S.

stock

market,

posted

a

+2.66%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

We

are

research-driven,

fundamental

investors,

pursuing

a

growth

strategy.

As

bottom-up

investors

focusing

primarily

on

individual

securities,

we

choose

companies

that

have

identifiable

drivers

of

future

earnings

growth

and

that

present,

in

our

opinion,

the

best

trade-off

between

potential

earnings

growth,

business

and

financial

risk,

and

valuation.

Also,

in

seeking

sustainable

growth

characteristics,

we

look

for

companies

that

we

believe

can

produce

sustainable

earnings

growth

and

cash

flow

growth

or

the

potential

to

generate

income.

We

rely

on

a

team

of

analysts

to

help

provide

in-depth

industry

expertise

and

use

both

qualitative

and

quantitative

analysis

to

evaluate

companies

for

distinct

and

sustainable

competitive

advantages

likely

to

lead

to

growth

in

earnings

and/or

share

price.

Competitive

advantages,

such

as

a

particular

product

niche,

proven

technology,

sound

financial

position

and

strong

management,

are

all

factors

we

believe

may

contribute

to

strong

growth

potential.

Manager’s

Discussion

The

Fund’s

results

versus

the

benchmark

Nasdaq

Biotechnology

Index

were

supported

primarily

by

favorable

stock

selection

in

the

pharmaceuticals

industry

as

several

overweighted

or

off-benchmark

holdings

posted

exceptional

gains.

Among

the

key

contributors

were

Revance

Therapeutics,

which

saw

its

equity

value

nearly

double

during

the

12

months

under

review;

Pliant

Therapeutics,

which

saw

a

nearly

fivefold

increase

in

its

share

price;

and

smaller

but

nonetheless

impressive

rallies

for

Intra-Cellular

Therapies

(focused

on

treatments

for

complex

psychiatric

and

neurologic

diseases),

CymaBay

Therapeutics

(drug

discovery

in

chronic

metabolic

and

liver

diseases

with

high

unmet

medical

need)

and

several

others.

In

particular,

Revance

announced

unexpectedly

strong

demand

and

revenues

for

Daxxify

(a

skin

wrinkle

treatment

that

lasts

longer

than

Botox

injections)

in

fourth

quarter

2022,

despite

being

on

the

market

for

only

one

month

and

launched

only

to

400

doctors

(total

market

is

about

5,000

doctors).

In

the

latter

half

of

2022,

Pliant

reported

surprisingly

positive

Phase

2a

clinical

trial

data

in

idiopathic

pulmonary

fibrosis

(a

progressive

and

fatal

lung

disease)

for

its

dual-integrin

inhibitor

PLN-74089.

The

treatment

showed

encouraging

preliminary

efficacy

measurements

despite

a

short

treatment

duration,

and

we

found

its

safety

profile

to

be

clean

with

no

treatment

discontinuations

due

to

adverse

reactions

thus

far.

The

Fund

also

fared

well

by

avoiding

certain

industries

tracked

by

the

index.

Though

the

positive

impact

on

relative

returns

was

small,

we

benefited

from

a

lack

of

exposure

to

companies

in

the

health

care

equipment,

health

care

supplies

and

health

care

distributors

industries.

Portfolio

Composition

4/30/23

%

of

Total

Net

Assets

Biotechnology

72.9%

Pharmaceuticals

18.8%

Life

Sciences

Tools

&

Services

5.9%

Other

0.6%

Short-Term

Investments

&

Other

Net

Assets

1.8%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

24

.

Franklin

Biotechnology

Discovery

Fund

5

franklintempleton.com

Annual

Report

The

rest

of

the

major

contributors

were

individual

stocks

that

buoyed

our

overall

results

in

the

biotechnology

industry.

In

particular,

we

saw

exceptional

12-month

gains

in

overweighted

or

off-index

companies

such

as

Prometheus

Biosciences

(sold

by

period-end),

PTC

Therapeutics,

IVERIC

Bio,

Albireo

Pharma

(sold

by

period-end)

and

Argenx,

along

with

a

smaller

benchmark-topping

rally

for

Horizon

Therapeutics

that

was

made

more

impactful

by

the

fact

that

it

was

one

of

the

portfolio’s

largest

holdings

before

we

eventually

liquidated

the

position.

Some

of

our

key

contributors

benefited

from

a

pickup

in

merger-and-

acquisition

(M&A)

activity,

none

more

so

than

autoimmune

drug

developer

Prometheus

Biosciences,

which

posted

an

outsized

gain

leading

up

to

its

buyout

offer.

There’s

been

a

raft

of

recent

M&A

deals

driven

by

large

pharmaceutical

companies

looking

to

refill

their

pipelines

by

buying

biotechnology

companies.

Late

in

the

annual

period,

Merck

(not

held

by

the

Fund)

announced

that

it

will

buy

Prometheus

for

US$10.8

billion

(expected

to

close

in

the

third

quarter

of

2023).

Merck

is

looking

to

boost

its

pipeline

to

prepare

for

Keytruda’s

patent

expiration

around

2028.

Prometheus

has

drugs

for

ulcerative

colitis

and

Crohn’s

disease

that

soon

should

enter

late-stage

trials.

PTC—focused

on

orally

administered

small

molecule

drugs

and

gene

therapies

for

rare

disorders—made

progress

with

its

drug

development

and

clinical

trial

pipeline

efforts.

The

company

reported

a

sizable

first-quarter

2023

revenue

beat

versus

consensus

estimates,

driven

by

Translarna

sales,

which

came

in

45%

above

consensus

expectations

(Translarna

is

a

protein

restoration

therapy

indicated

for

the

treatment

of

Duchenne

muscular

dystrophy).

Translarna

sales

appeared

to

be

on

track

to

meaningfully

outpace

consensus

expectations

for

the

rest

of

2023,

while

PTC

was

preparing

for

upcoming

readouts

on

three

Phase

3

clinical

trials

plus

initial

data

from

its

Phase

2

Huntington’s

disease

trial

in

the

second

quarter

of

2023.

Horizon,

a

biopharmaceutical

company

targeting

unmet

therapeutic

needs

in

arthritis

pain

and

inflammatory

diseases,

entered

into

preliminary

discussions

with

pharmaceutical

giants

Amgen,

Johnson

&

Johnson

(J&J;

not

held

by

the

Fund)

and

Sanofi

(not

held

by

the

Fund

by

period-end)

about

being

acquired.

Their

interest

in

a

potential

bidding

war

over

Horizon

hinged

on

its

strong

product

pipeline

as

it

was

marketing

eight

different

drugs.

One

of

them—thyroid

eye

disease

therapy

Tepezza—is

already

a

blockbuster.

Elsewhere

in

its

product

line-up,

Horizon

believed

that

chronic

gout

drug

Krystexxa

had

potential

peak

U.S.

sales

of

more

than

$1.5

billion.

Shortly

after

the

announcement,

J&J

and

Sanofi

dropped

out

of

the

negotiations,

and

Amgen

subsequently

agreed

to

acquire

Horizon.

Conversely,

stock

selection

and

an

underweighting

in

the

Fund’s

core

biotechnology

industry

allocation—which

averaged

roughly

three-quarters

of

the

overall

portfolio—

proved

detrimental

versus

the

benchmark

index,

though

these

holdings

still

provided

the

bulk

of

the

Fund’s

absolute

gains

for

the

year

under

review.

The

Fund’s

investments

in

the

life

sciences

tools

and

services

industry

and

health

care

services

industry

both

suffered

steep,

double-digit

percentage

declines.

Although

these

were

much

smaller

allocations

than

biotechnology

or

pharmaceuticals,

they

were

nonetheless

overweighted

versus

the

benchmark

index,

thereby

amplifying

the

negative

impact

on

a

relative

basis.

Some

of

our

high-conviction,

overweight

or

off-index

biotech

holdings

suffered

large

double-digit

percentage

declines

for

company-specific

reasons,

including

key

detractors

Iovance

Biotherapeutics,

Mirati

Therapeutics,

Ascendis

Pharma,

Kezar

Life

Sciences,

Heron

Therapeutics

and

VistaGen

Therapeutics

(sold

by

period-end).

VistaGen

fared

worst,

shedding

most

of

its

equity

value

after

its

management

announced

unfavorable

Phase

3

clinical

trial

results

in

PH94B

for

the

acute

treatment

of

social

anxiety

disorder,

which

ultimately

did

not

achieve

its

primary

endpoint,

as

measured

by

changes

from

baseline

using

the

Subjective

Units

of

Distress

Scale

compared

to

placebo.

Cellular

immunotherapy

specialist

Iovance—the

Fund’s

single-largest

detractor—saw

its

share

value

declined

substantially

following

the

release

of

disappointing

results

from

a

pivotal

melanoma

drug

trial

using

tumor-infiltrating

lymphocytes,

or

TILs

(a

type

of

immune

cell

that

can

recognize

and

kill

cancer

cells).

Iovance

had

previously

reported

strong

results

for

metastatic

melanoma

treatment

lifileucel

in

mid-2021

when

it

generated

an

overall

response

rate

of

36%.

However,

in

May

2022,

the

company

reported

a

median

duration

of

response

of

10.4

months,

which

was

substantially

below

what

was

observed

in

its

previous

trial.

The

company

attributed

the

difference

to

a

more

heavily

pre-treated

patient

population

in

the

latest

trial,

which

we

believe

is

a

plausible

explanation,

but

whether

it

will

negatively

impact

commercial

uptake

remains

to

be

seen.

Iovance

remained

optimistic

about

the

drug’s

prospects

and

was

ready

to

present

it

to

regulators

as

it

sought

to

submit

a

biologics

license

application

for

lifileucel

to

the

U.S.

Food

and

Drug

Administration

(FDA).

Additional

biotech

industry

weakness

stemmed

from

an

underweighted

stake

in

Gilead

Sciences,

which

enjoyed

a

huge

rally;

Gilead

was

still

one

of

our

largest

positions

and

a

Franklin

Biotechnology

Discovery

Fund

6

franklintempleton.com

Annual

Report

top

contributor

in

absolute

terms.

In

some

cases,

the

timing

of

trades

factored

into

relative

weakness.

For

example,

we

initiated

a

small

position

in

Alnylam

Pharmaceuticals

(not

held

at

period-end)

that

declined

modestly

from

our

purchase

date

through

period-end,

which

resulted

in

a

wide

performance

gap

with

the

index

as

Alnylam

shares

rose

solidly

for

the

full

12

months

under

review.

A

similar

negative

impact

occurred

with

the

Fund’s

new

position

in

Sarepta

Therapeutics—it

depreciated

from

our

purchase

date

through

period-end

yet

underwent

an

exceptional

full-year

rally

on

the

index.

The

Fund

held

just

one

investment

in

the

health

care

services

industry,

Guardant

Health,

which

shed

substantial

equity

value;

most

of

its

selloff

occurred

in

December

2022.

Guardant

is

a

precision

oncology

company

engaged

in

the

treatment

of

cancer

through

the

use

of

proprietary

blood-based

tests,

vast

data

sets

and

advanced

analytics.

Guardant

reported

results

for

Guardant

Shield,

a

novel

colorectal

cancer

test.

The

83%

sensitivity

for

colorectal

cancer

demonstrated

by

Guardant

Shield

fell

short

of

the

roughly

85%

consensus

expectation

in

investor

surveys,

but

this

result

easily

cleared

the

74%

minimum

sensitivity

requirement

that

has

been

pre-specified

for

U.S.

Medicare

coverage.

In

addition,

there

appeared

to

be

disappointment

in

the

test’s

advanced

adenoma

sensitivity,

which

fell

below

a

key

competitor’s

blood-sample

test

metrics.

Guardant

was

obligated

to

pass

through

the

FDA

approval

process

and

gain

coverage

and

reimbursement

from

Medicare

and

commercial

insurers.

These

events

are

not

without

risk,

but

we

still

saw

Shield

as

becoming

a

commercially

competitive

screening

test

for

colorectal,

and

eventually,

other

cancers.

Guardant

submitted

its

application

for

FDA

approval

for

Shield

in

2023’s

first

quarter,

which

was

later

than

the

previous

submission

guidance.

It

was

a

very

difficult

year

for

life

sciences

tools

and

services

stocks,

nearly

across

the

board.

Most

of

these

companies—

including

those

held

by

the

Fund

and

those

tracked

by

the

benchmark

index—were

shunned

by

investors

and

suffered

double-digit

percentage

losses,

including

key

detractors

Illumina

(overweight)

and

Avantor

(not

an

index

component).

Illumina

makes

tools

and

consumables

for

gene

sequencing.

Its

sequencing

devices

are

among

the

most

widely

distributed

in

global

hospitals

and

laboratories,

and

its

ongoing

years-long

efforts

to

develop

new

technologies

place

it

at

the

cutting

edge

of

the

field,

with

few

notable

competitors.

However,

the

company

has

come

under

some

pressure

as

sales

in

one

of

its

core

markets

decelerated

meaningfully.

It

offers

three

classes

of

gene

sequencers:

low

throughput,

medium

throughput

and

high

throughput.

Illumina’s

2022

low-throughput

device

sales

were

close

to

flat

year-over-year.

Additionally,

legal

issues

surfaced

around

its

US$7.1

billion

acquisition

of

Grail,

a

cancer

diagnostics

biotech

company,

which

hit

some

potential

antitrust

roadblocks

with

U.S.

and

E.U.

regulators,

thereby

prolonging

the

closing

of

the

deal.

Although

pharmaceuticals

industry

holdings

were

an

important

net

contributor

during

the

year,

relative

gains

were

pared

by

some

overweight

or

off-benchmark

outliers

to

the

downside.

The

worst

of

these

detractors

included

a

major

stake

in

Jazz

Pharmaceuticals

and

smaller

positions

in

EyePoint

Pharmaceuticals

and

Athira

Pharma

(not

held

at

period-end).

In

particular,

we

continued

to

see

strong

potential

in

Jazz,

which

focuses

on

neurology

and

oncology

medications,

and

which

has

a

connection

to

novel

cannabis-based

therapies

via

acquisition:

Its

US$7.2

billion

purchase

of

GW

Pharmaceuticals

in

May

2021

brought

with

it

cannabidiol-based

Epidiolex,

a

drug

used

to

treat

seizures

caused

by

a

variety

of

epileptic

conditions,

including

Lennox-Gastaut

syndrome,

Dravet

syndrome

and

tuberous

sclerosis

complex.

However,

Jazz

is

not

a

pure-

play

medical

cannabis

company.

It

also

makes

the

sleep

disorder

drugs

Xyrem

and

Xywav,

which

account

for

more

than

half

of

its

sales.

Jazz

also

sells

cancer

drugs

Rylaze

Vyxeos

and

Zepzelca.

Jazz

has

been

able

to

keep

growing

through

its

own

expanding

product

line,

including

11

new

approvals

and

launches

of

therapies

since

2015,

plus

its

willingness

to

acquire

therapies,

as

it

did

through

the

GW

Pharma

purchase.

We

still

see

upside

potential

based

in

part

on

Jazz’s

diversified

revenue

base

and

multiple

growth

drivers.

After

growing

revenues

at

an

18%

year-over-year

rate

in

2022

(from

US$3.1

billion

in

2021),

its

management

is

Top

10

Holdings

4/30/23

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

Vertex

Pharmaceuticals,

Inc.

7.1%

Biotechnology,

United

States

Amgen,

Inc.

6.5%

Biotechnology,

United

States

Regeneron

Pharmaceuticals,

Inc.

6.5%

Biotechnology,

United

States

Gilead

Sciences,

Inc.

5.7%

Biotechnology,

United

States

AstraZeneca

plc

4.9%

Pharmaceuticals,

United

Kingdom

Biogen,

Inc.

4.4%

Biotechnology,

United

States

Jazz

Pharmaceuticals

plc

4.4%

Pharmaceuticals,

United

States

PTC

Therapeutics,

Inc.

4.2%

Biotechnology,

United

States

Intra-Cellular

Therapies,

Inc.

3.4%

Pharmaceuticals,

United

States

Illumina,

Inc.

3.2%

Life

Sciences

Tools

&

Services,

United

States

Franklin

Biotechnology

Discovery

Fund

7

franklintempleton.com

Annual

Report

projecting

sales

could

top

US$5

billion

in

annual

revenue

by

2025

as

Epidiolex

rolls

out

to

more

countries.

Furthermore,

Jazz

expects

that

its

strong

pipeline

could

result

in

at

least

five

products

obtaining

regulatory

approval

before

the

end

of

the

decade.

Thank

you

for

your

continued

participation

in

Franklin

Biotechnology

Discovery

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Evan

McCulloch,

CFA

Lead

Portfolio

Manager

Wendy

Lam,

Ph.D.

Akiva

Felt

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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.

Performance

Summary

as

of

April

30,

2023

Franklin

Biotechnology

Discovery

Fund

8

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

4/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+10.58%

+4.50%

5-Year

+14.46%

+1.58%

10-Year

+104.79%

+6.82%

Advisor

1-Year

+10.86%

+10.86%

5-Year

+15.91%

+3.00%

10-Year

+110.07%

+7.71%

See

page

10

for

Performance

Summary

footnotes.

Franklin

Biotechnology

Discovery

Fund

Performance

Summary

9

franklintempleton.com

Annual

Report

See

page

10

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Biotechnology

Discovery

Fund

Performance

Summary

10

franklintempleton.com

Annual

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

possible

loss

of

principal.

The

Fund

is

a

non-diversified

fund

that

concentrates

in

a

single

sector,

which

involves

risks

such

as

patent

considerations,

product

liability,

government

regulatory

requirements,

and

regulatory

approval

for

new

drugs

and

medical

products.

Biotechnol-

ogy

companies

often

are

small

and/or

relatively

new.

Smaller

companies

can

be

particularly

sensitive

to

changes

in

economic

conditions

and

have

less

certain

growth

prospects

than

larger,

more

established

companies

and

can

be

volatile,

especially

over

the

short

term.

The

Fund

may

also

invest

in

foreign

companies,

which

involve

special

risks,

including

currency

fluctuations

and

political

uncertainty.

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.

1.

The

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

NASDAQ

Biotechnology

Index

is

a

modified

capitalization-weighted

index

designed

to

measure

the

performance

of

NASDAQ-listed

companies

classified

as

either

biotechnology

or

pharmaceuticals.

The

S&P

500

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

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

(5/1/22–4/30/23)

Share

Class

Net

Investment

Income

A

$0.1411

C

—

R6

$0.5857

Advisor

$0.4163

Total

Annual

Operating

Expenses

6

Share

Class

A

1.04%

Advisor

0.79%

Your

Fund’s

Expenses

Franklin

Biotechnology

Discovery

Fund

11

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,078.20

$5.26

$1,019.73

$5.11

1.02%

C

$1,000

$1,074.20

$9.11

$1,016.01

$8.85

1.77%

R6

$1,000

$1,080.40

$3.21

$1,021.71

$3.12

0.62%

Advisor

$1,000

$1,079.50

$3.98

$1,020.97

$3.86

0.77%

12

franklintempleton.com

Annual

Report

Franklin

Natural

Resources

Fund

This

annual

report

for

Franklin

Natural

Resources

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

high

total

return.

Total

return

consists

of

capital

appreciation

and

current

dividend

and

interest

income.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

equity

and

debt

securities

of

companies

that

own,

produce,

refine,

process,

transport

or

market

natural

resources,

as

well

as

those

that

provide

related

services.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+6.56%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Standard

&

Poor’s

(S&P

®

)

North

American

Natural

Resources

Sector

Index,

which

tracks

companies

involved

in

industries

such

as

mining,

energy,

timber

and

forestry

services,

and

the

production

of

pulp

and

paper,

posted

a

+5.87%

cumulative

total

return.

1

Also

in

comparison,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

the

U.S.

stock

market,

posted

a

+2.66%

cumulative

total

return.

1

Please

note

index

performance

information

is

provided

for

reference

and

we

do

not

attempt

to

track

any

index

but

rather

undertake

investments

on

the

basis

of

fundamental

research.

The

Fund’s

strategy,

which

focuses

on

companies

with

higher

long-term

growth

potential,

differs

from

the

natural

resources

index’s

large

weighting

in

income-oriented

companies

that

we

believe

typically

provide

more

limited

opportunities

for

growth.

This

difference

may

occasionally

lead

to

wide

performance

discrepancies,

especially

in

periods

when

investors

focus

on

short-term

“safety”

and

yield

or,

conversely,

when

investors

focus

more

heavily

on

companies

with

stronger

growth

prospects

and

greater

commodity

price

leverage.

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

16

.

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

.

Investment

Strategy

We

are

research-driven,

fundamental

investors,

pursuing

a

growth

strategy.

As

bottom-up

investors

focusing

primarily

on

individual

securities,

we

choose

companies

that

have

identifiable

drivers

of

future

earnings

growth

and

that

present,

in

our

opinion,

the

best

trade-off

between

potential

earnings

growth,

business

and

financial

risk,

and

valuation.

Also,

in

seeking

sustainable

growth

characteristics,

we

look

for

companies

that

we

believe

can

produce

sustainable

earnings

growth

and

cash

flow

growth

or

the

potential

to

generate

income.

We

rely

on

a

team

of

analysts

to

help

provide

in-depth

industry

expertise

and

use

both

qualitative

and

quantitative

analysis

to

evaluate

companies

for

distinct

and

sustainable

competitive

advantages

likely

to

lead

to

growth

in

earnings

and/or

share

price.

Competitive

advantages,

such

as

a

particular

product

niche,

proven

technology,

sound

financial

position

and

strong

management,

are

all

factors

we

believe

may

contribute

to

strong

growth

potential.

Sector

Overview

Prices

in

the

global

commodities

complex

began

the

annual

period

on

an

upward

track

that

peaked

around

mid-June

2022

as

demand

began

to

loosen

and

commodity

supply-

chain

issues—tied

in

part

to

geopolitical

tensions

and

resulting

shifts

in

global

trade—began

to

resolve.

From

there,

key

commodity

indexes

began

to

lose

steam

in

response

to

emerging

demand

pressures

related

to

weakening

economic

data,

a

slower-than-anticipated

recovery

in

China,

and

a

wave

of

interest-rate

increases

amid

historically

elevated

inflation.

Commodity

gauges

were

largely

rangebound

at

lower

levels

from

July

through

period-end,

though

they

did

succeed

in

generating

a

second

successive

calendar

year

of

gains

in

2022.

Owing

in

part

to

a

quickly

fading

war

premium,

downward

price

trajectories

since

the

2022

peaks

(following

Geographic

Composition

4/30/23

%

of

Total

Net

Assets

North

America

83.8%

Europe

8.3%

Latin

America

&

Caribbean

3.6%

Australia

&

New

Zealand

3.4%

Other

0.8%

Short-Term

Investments

&

Other

Net

Assets

0.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

31

.

Franklin

Natural

Resources

Fund

13

franklintempleton.com

Annual

Report

Russia’s

invasion

of

Ukraine)

occurred

in

most

commodities,

particularly

energy

products

and

grains.

For

example,

Brent

crude

oil

fell

roughly

40%

since

it

peaked

in

March

2022,

the

price

of

U.S.

natural

gas

was

about

75%

below

its

August

2022

peak,

and

the

Bloomberg

Agriculture

Spot

Index

was

down

about

20%

on

a

year-ago

basis.

Additionally,

many

economists,

the

International

Monetary

Fund

and

the

World

Bank

warned

of

a

potential

longer-term

structural

growth

slowdown

across

the

globe

linked

to

weak

investment,

slow

productivity

growth,

surging

government

debt,

restrictive

trade

measures

such

as

tariffs,

and

the

continuing

negative

effects

of

the

COVID-19

pandemic

following

three

years

of

disruptions.

By

the

spring

of

2023,

the

commodities

complex

was

still

climbing

a

“wall

of

worry”

even

though

many

analysts

agreed

the

underlying

fundamentals

were

holding,

though

they

noted

there

might

continue

to

be

a

bifurcation

in

commodities

performance

as

idiosyncratic

factors

(particularly

with

respect

to

supply

dynamics)

drive

divergence

in

returns.

For

the

full

year

under

review,

U.S.

benchmark

crude

oil

futures

prices

fell

26.7%

(to

US$76.78

per

barrel),

while

international

oil

prices

fell

27.3%

(to

US$79.54

per

barrel).

U.S.

natural

gas

futures

were

loss

leaders

that

declined

66.7%

(to

US$2.41

per

million

British

thermal

units).

Industrial

metals

prices

generally

fell

from

the

beginning

of

the

reporting

period

through

mid-July

2022,

then

remained

relatively

unchanged

through

October

before

rising

through

January

2023,

at

which

point

they

gave

back

most

of

that

rally’s

gains

through

period-end.

In

particular,

copper

futures

prices

were

down

12.0%

for

the

year

while

iron

ore

declined

19.9%.

Most

precious

metals

fared

better

than

their

base

metals

counterparts:

although

palladium

prices

dropped

35.2%

in

response

to

declining

industrial

and

automotive

demand,

platinum

prices

advanced

14.8%,

silver

gained

10.0%

and

gold

spot

prices

climbed

4.9%

and

approached

record

highs.

In

the

agricultural

complex,

most

fertilizer

prices

dwindled

steadily

through

year-end,

as

did

major

crop

prices:

wheat

futures

came

down

from

all-time

highs

and

lost

40.6%

overall,

while

corn

and

soybeans

fell

22.3%

and

15.5%,

respectively.

Although

demand

dynamics

began

to

loosen

as

investors

braced

for

a

downshift

in

economic

activity,

the

global

economy

began

the

Fund’s

annual

period

the

way

it

spent

most

of

the

fiscal

year—hard-pressed

to

satisfy

commodity

needs,

which

kept

some

support

under

prices.

As

the

energy

and

raw

materials

price

spikes

from

roughly

one

year

faded

amid

the

rebalance

in

supply

and

demand,

the

Refinitiv

CoreCommodity

CRB

Index

(CRB),

which

tracks

19

significant

commodities,

declined

13.0%

on

a

price-only

basis.

The

U.S.

dollar,

which

fell

0.4%

versus

a

basket

of

six

other

major

currencies,

was

mildly

supportive

of

dollar-

denominated

commodities.

In

U.S.

and

global

stock

markets,

natural

resources

equities

generally

fared

better

than

the

commodities

and

refined

products

they

make.

Energy

was

by

far

the

top-performing

sector,

having

topped

the

broad

equity

index

averages

and

the

10

other

sector

groups

by

wide

margins.

Materials

sector

stocks

fared

considerably

worse

than

energy;

on

average,

they

lost

roughly

3%

to

4%

of

their

value

in

U.S.

and

global

equity

markets.

Despite

the

preponderance

of

multiyear

and

even

all-time

price

peaks

across

the

commodities

complex

recently,

natural

resources

companies

as

a

group

continued

to

take

a

conservative

approach

toward

investing

in

more

capacity

to

alleviate

prospective

supply

shortages.

Within

the

energy

sector,

profit

margins

in

early

2023

were

rolling

over

from

the

record

highs

achieved

during

2022,

while

most

earnings

estimates

for

materials-focused

industries

have

drifted

downward.

Today’s

economic

backdrop

is

unprecedented

as

we

have

seen

soaring

liquidity,

followed

by

four-decade

high

annual

inflation

rates

in

some

regions,

followed

by

aggressive

rate

hikes

by

numerous

central

banks.

Now,

inflation

is

subsiding,

and

many

investors

are

expecting

deterioration

in

company

earnings

and

an

economic

slump.

While

such

an

outcome

can

temporarily

depress

demand,

supply

is

also

likely

to

remain

constrained

when

economic

growth

recovers,

potentially

leading

to

a

resumption

of

pricing

strength

necessary

to

incentivize

additional

investment,

which

we

think

should

present

a

healthy

backdrop

for

related

equities.

Portfolio

Composition

4/30/23

%

of

Total

Net

Assets

Oil

&

Gas

Exploration

&

Production

21.5%

Integrated

Oil

&

Gas

16.7%

Oil

&

Gas

Equipment

&

Services

13.1%

Oil

&

Gas

Storage

&

Transportation

7.9%

Copper

6.7%

Gold

6.7%

Oil

&

Gas

Refining

&

Marketing

5.2%

Diversified

Metals

&

Mining

5.1%

Industrial

Gases

3.0%

Fertilizers

&

Agricultural

Chemicals

1.9%

Electrical

Components

&

Equipment

1.9%

Oil

&

Gas

Drilling

1.5%

Metal,

Glass

&

Plastic

Containers

1.2%

Specialty

Chemicals

1.1%

Other

6.4%

Short-Term

Investments

&

Other

Net

Assets

0.1%

Franklin

Natural

Resources

Fund

14

franklintempleton.com

Annual

Report

Manager’s

Discussion

The

Fund

outperformed

its

benchmark,

the

S&P

North

American

Natural

Resources

Sector

Index,

with

the

support

of

favorable

allocation

decisions.

Twenty

out

of

31

industries

contributed

to

relative

performance,

with

notable

strength

in

oilfield

services

(based

on

a

supportive

combination

of

overweighting

and

stock

selection

versus

the

index);

paper

and

plastic

packaging

products

and

materials

(aided

by

a

substantial

underweighting

versus

the

index

as

this

industry

posted

negative

returns);

and

oil

and

gas

exploration

and

production,

or

E&P

(resulting

primarily

from

strong

stock

selection

as

the

Fund’s

E&P

returns

were

much

higher

than

E&P

companies

tracked

by

the

index).

Several

of

the

Fund’s

oilfield

services

holdings

had

robust

double-digit

percentage

gains,

led

by

overweighted

or

off-

benchmark

contributors

such

as

TechnipFMC,

Nine

Energy

Service

and

Oceaneering

International.

Our

results

in

E&P—the

portfolio’s

single-largest

industry

exposure—were

boosted

by

the

avoidance

of

several

natural

gas-focused

index

component

stocks

that

suffered

large

double-digit

percentage

losses.

To

a

lesser

extent,

relative

returns

were

also

helped

by

stock

selection

among

copper-focused

miners,

with

off-benchmark

positions

in

ERO

Copper

and

Capstone

Copper

serving

as

key

contributors.

We

also

kept

much

less

exposure

to

Enbridge

and

other

energy

pipeline

and

infrastructure

names

than

the

index,

which

strengthened

relative

returns

as

these

stocks

generally

missed

the

energy

sector

rally

and

sold

off.

Elsewhere

in

the

portfolio,

stock

selection

in

the

oil

and

gas

refining

and

marketing

industry

added

incrementally

to

the

Fund’s

relative

gains,

as

did

select

holdings

in

the

gold

industry,

where

key

contributor

Alamos

Gold

(overweighted)

benefited

from

the

rise

in

gold

prices,

finished

2022

with

record

production,

and

provided

forward

guidance

with

an

estimated

9%

higher

production

and

5%

lower

all-in

sustaining

costs

in

2023.

The

Fund

did

not

invest

in

several

industries

that

suffered

double-digit

percentage

declines

on

the

index,

resulting

in

a

net

beneficial

outcome

in

relative

terms.

These

key

contributors-of-omission

included

aluminum-

and

silver-

focused

mining

companies,

forest

products

and

coal

producers.

Aside

from

our

core

holdings

in

the

energy

and

materials

sectors,

returns

were

further

aided

by

investments

in

several

off-benchmark

industries,

many

of

which

are

focused

on

the

long-term

transition

to

renewable

energy

sources

currently

underway

globally.

Chemical

ingredients

distributor

Univar

Solutions,

which

received

an

acquisition

offer,

was

among

them,

as

was

water

and

wastewater

technology

solutions

provider

Xylem.

Stocks

linked

to

solar,

wind

and

next-

generation

energy

grid

solutions

also

offered

strong

support

as

the

shares

of

Shoals

Technologies

Group

more

than

doubled

in

value,

while

those

of

Fluence

Energy

nearly

doubled.

Our

newest

investment

in

the

electrical

components

and

equipment

industry,

NEXTracker

(purchased

during

the

period),

also

enjoyed

a

robust

rally

through

April-end.

To

a

lesser

extent,

investments

linked

to

windmill

manufacturing

(TPI

Composites),

offshore

windmill

construction

(Eneti)

and

solar

inverters

for

photovoltaic

arrays

(SolarEdge

Technologies)

also

fared

better

than

the

benchmark

index.

Conversely,

the

Fund

underperformed

its

benchmark

in

11

industries,

none

more

so

than

the

integrated

oil

and

gas

industry,

where

an

average

roughly

17.5%

of

the

portfolio

was

invested

and

where

our

underweighting

versus

the

index

proved

detrimental,

though

this

impact

was

effectively

offset

by

weightings

in

other

energy

industries.

Relative

performance

was

split

among

the

oil

and

gas

majors,

which

gave

us

some

of

our

top

performers

for

the

year

under

review

(namely

off-benchmark

Europe-based

energy

conglomerates

TotalEnergies

and

Shell)

as

well

as

some

of

our

biggest

detractors,

as

was

the

case

with

much

lighter-

than-index

stakes

in

Exxon

Mobil

and

Chevron—both

of

which

rallied

solidly

and

still

served

as

key

contributors

to

the

Fund’s

absolute,

standalone

gains.

Elsewhere

in

the

energy

sector,

stock

selection

and

overweighting

worked

against

us

in

the

oil

and

gas

drilling

industry;

although

this

was

a

small

allocation

(averaging

just

1.5%

of

total

net

assets),

the

hindrance

was

pronounced

as

a

sizable

negative

performance

gap

opened

up

between

the

index’s

constituent

companies—primarily

offshore-focused

drilling

contractors—

and

the

Fund’s

positions,

which

emphasize

onshore-

Top

10

Holdings

4/30/23

Company

Industry

,

Country

%

of

Total

Net

Assets

a

a

ConocoPhillips

4.4%

Oil,

Gas

&

Consumable

Fuels,

United

States

Exxon

Mobil

Corp.

4.3%

Oil,

Gas

&

Consumable

Fuels,

United

States

Chevron

Corp.

4.0%

Oil,

Gas

&

Consumable

Fuels,

United

States

EOG

Resources,

Inc.

3.5%

Oil,

Gas

&

Consumable

Fuels,

United

States

Shell

plc

3.0%

Oil,

Gas

&

Consumable

Fuels,

Netherlands

Canadian

Natural

Resources

Ltd.

3.0%

Oil,

Gas

&

Consumable

Fuels,

Canada

Schlumberger

NV

2.9%

Energy

Equipment

&

Services,

United

States

Freeport-McMoRan,

Inc.

2.6%

Metals

&

Mining,

United

States

Pioneer

Natural

Resources

Co.

2.3%

Oil,

Gas

&

Consumable

Fuels,

United

States

Suncor

Energy,

Inc.

2.0%

Oil,

Gas

&

Consumable

Fuels,

Canada

Franklin

Natural

Resources

Fund

15

franklintempleton.com

Annual

Report

focused

drillers.

In

particular,

our

overweight

investments

in

Patterson-UTI

Energy

and

Helmerich

&

Payne

were

key

points

of

weakness

as

they

both

lost

more

than

a

quarter

of

their

share

value

during

the

year

under

review.

Diversified

metals

and

mining

companies

hampered

relative

and

absolute

returns,

with

results

versus

the

index

pressured

by

their

significant

overweighting

(such

companies

averaged

just

over

1%

of

the

index

but

nearly

5%

of

the

Fund’s

globally

diversified

portfolio).

Some

of

our

related

off-index

holdings

sustained

heavy

equity

losses

including

key

detractors

29Metals

and

Anglo

American.

Relative

returns

were

further

restrained

by

substantial

declines

in

industries

that

were

not

included

on

the

benchmark.

Battery

electric

heavy-duty

vehicle

and

energy

storage

systems

manufacturer

Proterra,

our

sole

investment

in

the

construction

machinery

and

heavy

transportation

equipment

industry,

was

a

standout

detractor

in

this

regard.

In

the

steel

industry,

our

sole

position

in,

iron

ore

mining

giant

Vale,

tracked

the

metal’s

price

lower

over

the

12-month

period.

Our

small

exposure

to

fertilizers

and

agricultural

chemicals

producers

was

hampered

by

a

substantial

decline

for

Nutrien,

while

Bunge

and

Darling

Ingredients

led

to

negative

returns

in

the

agricultural

products

and

services

industry.

In

the

diversified

chemicals

industry,

Huntsman

International

traded

lower

and

further

impaired

relative

performance,

as

did

all

three

of

our

holdings

in

the

specialty

chemicals

industry,

which

included

lithium

miner

Albemarle.

On

the

reclamation

side

of

the

lithium

value

chain,

our

off-index

position

in

lithium-ion

battery

recycling

specialist

Li-Cycle

Holdings

traded

lower

and

hurt

results

within

the

environmental

facilities

and

services

industry.

The

rest

of

the

major

detractors

were

individual

securities

that

served

to

lessen

the

Fund’s

measure

of

outperformance

in

other

industries.

These

included

SSR

Mining,

which

shed

just

over

a

third

of

its

equity

value

and

nearly

eliminated

our

performance

advantage

in

the

gold

industry;

and

two

battery

manufacturing

startups,

SES

AI

and

FREYR

Battery,

which

partially

offset

our

aforementioned

gains

in

the

electrical

components

and

equipment

industry.

Within

the

energy

sector,

an

off-index

position

in

Aker

BP

fared

poorly

in

the

E&P

industry,

while

overweighted

positions

in

NexTier

Oilfield

Solutions,

Liberty

Energy

and

Cactus

sustained

double-digit

percentage

declines

that

dragged

on

our

otherwise

strong

results

in

the

oilfield

services

industry.

Thank

you

for

your

continued

participation

in

Franklin

Natural

Resources

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Frederick

G.

Fromm,

CFA

Lead

Portfolio

Manager

Matthew

Adams,

CFA

Stephen

M.

Land,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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.

Performance

Summary

as

of

April

30,

2023

Franklin

Natural

Resources

Fund

16

franklintempleton.com

Annual

Report

The

performance

table

and

graphs

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

4/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+6.56%

+0.71%

5-Year

+11.05%

+0.97%

10-Year

-1.75%

-0.74%

Advisor

1-Year

+6.86%

+6.86%

5-Year

+12.44%

+2.37%

10-Year

+0.84%

+0.08%

See

page

18

for

Performance

Summary

footnotes.

Franklin

Natural

Resources

Fund

Performance

Summary

17

franklintempleton.com

Annual

Report

See

page

18

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Natural

Resources

Fund

Performance

Summary

18

franklintempleton.com

Annual

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

possible

loss

of

principal.

Investing

in

a

fund

concentrating

in

the

natural

resources

sector

involves

special

risks,

includ-

ing

increased

susceptibility

to

adverse

economic

and

regulatory

developments

affecting

the

sector.

Growth

stock

prices

may

fall

dramatically

if

the

company

fails

to

meet

projections

of

earnings

or

revenue;

their

prices

may

be

more

volatile

than

other

securities,

particularly

over

the

short

term.

Smaller

companies

can

be

particularly

sensitive

to

changes

in

economic

conditions

and

have

less

certain

growth

prospects

than

larger,

more

established

companies

and

can

be

volatile,

especially

over

the

short

term.

The

Fund

may

also

invest

in

foreign

companies,

which

involve

special

risks,

including

currency

fluctuations

and

political

uncertainty.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

perfor-

mance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

total

annual

operating

expenses

are

sourced

from

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Source:

FactSet.

The

S&P

North

American

Natural

Resources

Sector

Index

is

a

modified

capitalization-weighted

index

that

includes

companies

involved

in

extractive

industries

(mining),

energy

and

forestry

services,

producers

of

pulp

and

paper,

and

owners

and

operators

of

timber

tracts

or

plantations.

The

S&P

500

is

a

market

capitaliza-

tion-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

6.

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

(5/1/22–4/30/23)

Share

Class

Net

Investment

Income

A

$0.6782

C

$0.5386

R6

$0.7529

Advisor

$0.7215

Total

Annual

Operating

Expenses

6

Share

Class

A

1.10%

Advisor

0.85%

Your

Fund’s

Expenses

Franklin

Natural

Resources

Fund

19

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,010.20

$4.67

$1,020.15

$4.69

0.94%

C

$1,000

$1,006.10

$8.39

$1,016.43

$8.43

1.69%

R6

$1,000

$1,011.90

$2.64

$1,022.17

$2.66

0.53%

Advisor

$1,000

$1,011.30

$3.42

$1,021.39

$3.44

0.69%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$101.90

$163.50

$150.48

$138.85

$146.14

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.47)

(0.75)

(0.99)

(0.69)

(0.99)

Net

realized

and

unrealized

gains

(losses)

...........

11.21

(43.17)

38.85

26.48

(1.75)

Total

from

investment

operations

....................

10.74

(43.92)

37.86

25.79

(2.74)

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(1.01)

—

—

—

Net

realized

gains

.............................

—

(16.67)

(24.84)

(14.16)

(4.55)

Total

distributions

...............................

(0.14)

(17.68)

(24.84)

(14.16)

(4.55)

Net

asset

value,

end

of

year

.......................

$112.50

$101.90

$163.50

$150.48

$138.85

Total

return

c

...................................

10.58%

(28.56)%

24.26%

18.52%

(1.60)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.06%

1.04%

0.98%

1.03%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.06%

e

1.04%

d,e

0.97%

d

1.01%

d

1.00%

d

Net

investment

(loss)

............................

(0.45)%

(0.54)%

(0.58)%

(0.49)%

(0.67)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$686,534

$705,915

$1,160,451

$960,305

$924,611

Portfolio

turnover

rate

............................

24.08%

26.25%

47.30%

32.92%

28.62%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$94.59

$152.95

$143.00

$133.51

$141.75

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(1.16)

(1.51)

(2.16)

(1.70)

(2.03)

Net

realized

and

unrealized

gains

(losses)

...........

10.35

(40.18)

36.95

25.35

(1.66)

Total

from

investment

operations

....................

9.19

(41.69)

34.79

23.65

(3.69)

Less

distributions

from:

Net

realized

gains

.............................

—

(16.67)

(24.84)

(14.16)

(4.55)

Net

asset

value,

end

of

year

.......................

$103.78

$94.59

$152.95

$143.00

$133.51

Total

return

c

...................................

9.75%

(29.00)%

23.33%

17.62%

(2.33)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.81%

1.66%

1.73%

1.78%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.81%

e

1.66%

d,e

1.72%

d

1.76%

d

1.75%

d

Net

investment

(loss)

............................

(1.20)%

(1.16)%

(1.32)%

(1.24)%

(1.42)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$29,573

$33,905

$64,801

$48,363

$46,508

Portfolio

turnover

rate

............................

24.08%

26.25%

47.30%

32.92%

28.62%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$108.06

$172.21

$156.99

$143.83

$150.65

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.08)

(0.23)

(0.45)

(0.18)

(0.46)

Net

realized

and

unrealized

gains

(losses)

...........

11.94

(45.64)

40.51

27.50

(1.81)

Total

from

investment

operations

....................

11.86

(45.87)

40.06

27.32

(2.27)

Less

distributions

from:

Net

investment

income

..........................

(0.59)

(1.61)

—

—

—

Net

realized

gains

.............................

—

(16.67)

(24.84)

(14.16)

(4.55)

Total

distributions

...............................

(0.59)

(18.28)

(24.84)

(14.16)

(4.55)

Net

asset

value,

end

of

year

.......................

$119.33

$108.06

$172.21

$156.99

$143.83

Total

return

....................................

11.03%

(28.29)%

24.67%

18.95%

(1.24)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.80%

0.74%

0.71%

0.74%

0.70%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.65%

0.66%

c

0.64%

c

0.64%

c

0.63%

c

Net

investment

(loss)

............................

(0.08)%

(0.16)%

(0.25)%

(0.12)%

(0.30)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$11,692

$9,614

$16,721

$9,484

$6,164

Portfolio

turnover

rate

............................

24.08%

26.25%

47.30%

32.92%

28.62%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$106.46

$169.95

$155.30

$142.56

$149.54

Income

from

investment

operations

a

:

Net

investment

(loss)

b

..........................

(0.22)

(0.42)

(0.59)

(0.34)

(0.63)

Net

realized

and

unrealized

gains

(losses)

...........

11.72

(44.99)

40.08

27.24

(1.80)

Total

from

investment

operations

....................

11.50

(45.41)

39.49

26.90

(2.43)

Less

distributions

from:

Net

investment

income

..........................

(0.42)

(1.41)

—

—

—

Net

realized

gains

.............................

—

(16.67)

(24.84)

(14.16)

(4.55)

Total

distributions

...............................

(0.42)

(18.08)

(24.84)

(14.16)

(4.55)

Net

asset

value,

end

of

year

.......................

$117.54

$106.46

$169.95

$155.30

$142.56

Total

return

....................................

10.86%

(28.39)%

24.56%

18.82%

(1.36)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.81%

0.79%

0.73%

0.78%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliate

s

.......

0.81%

d

0.79%

c,d

0.72%

c

0.76%

c

0.75%

c

Net

investment

(loss)

............................

(0.20)%

(0.29)%

(0.33)%

(0.24)%

(0.42)%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$110,607

$110,726

$206,375

$159,348

$153,874

Portfolio

turnover

rate

............................

24.08%

26.25%

47.30%

32.92%

28.62%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

1

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

97.1%

Biotechnology

72.3%

a

89bio,

Inc.

...........................................

United

States

226,400

$

3,617,872

a

Alector,

Inc.

..........................................

United

States

303,345

2,002,077

Amgen,

Inc.

.........................................

United

States

228,082

54,680,379

a

Apellis

Pharmaceuticals,

Inc.

.............................

United

States

50,736

4,232,904

a,b,c

Applied

Therapeutics,

Inc.

...............................

United

States

2,584,054

4,392,892

a

Arcutis

Biotherapeutics,

Inc.

.............................

United

States

402,520

5,570,877

a

Argenx

SE,

ADR

......................................

Netherlands

68,085

26,408,810

a

Ascendis

Pharma

A/S,

ADR

.............................

Denmark

309,111

21,625,406

a

Avidity

Biosciences,

Inc.

................................

United

States

109,386

1,356,386

a,b

Benitec

Biopharma,

Inc.

................................

Australia

6,203,064

1,247,436

a

Biogen,

Inc.

.........................................

United

States

121,375

36,925,916

a

BioMarin

Pharmaceutical,

Inc.

............................

United

States

259,989

24,969,344

a

Candel

Therapeutics,

Inc.

...............................

United

States

400,800

517,032

a,c

Centessa

Pharmaceuticals

plc,

ADR

.......................

United

States

278,993

1,316,847

a

Chinook

Therapeutics,

Inc.

..............................

United

States

360,446

7,212,524

a

Crinetics

Pharmaceuticals,

Inc.

...........................

United

States

43,322

846,512

a

CRISPR

Therapeutics

AG

...............................

Switzerland

72,193

3,533,125

a

Cullinan

Oncology,

Inc.

.................................

United

States

201,050

1,956,216

a

Cytokinetics,

Inc.

......................................

United

States

232,424

8,692,658

a

Day

One

Biopharmaceuticals,

Inc.

.........................

United

States

812,564

10,075,794

a

Dyne

Therapeutics,

Inc.

................................

United

States

355,434

3,682,296

a,c

Equillium,

Inc.

........................................

United

States

294,800

183,366

Gilead

Sciences,

Inc.

..................................

United

States

582,227

47,864,882

a

Harpoon

Therapeutics,

Inc.

..............................

United

States

445,299

260,544

a

Heron

Therapeutics,

Inc.

................................

United

States

1,739,677

4,157,828

a

HilleVax,

Inc.

.........................................

United

States

423,056

5,922,784

a

Insmed,

Inc.

.........................................

United

States

780,500

15,219,750

a

Iovance

Biotherapeutics,

Inc.

.............................

United

States

738,792

4,166,787

a

IVERIC

bio,

Inc.

......................................

United

States

336,229

11,058,572

a,c

Jasper

Therapeutics,

Inc.

...............................

United

States

1,439,300

1,914,269

a

Karuna

Therapeutics,

Inc.

...............................

United

States

38,051

7,550,840

a

Keros

Therapeutics,

Inc.

................................

United

States

153,551

6,810,755

a

Kezar

Life

Sciences,

Inc.

................................

United

States

449,150

1,091,435

a

Kura

Oncology,

Inc.

....................................

United

States

178,292

1,736,564

a

Legend

Biotech

Corp.,

ADR

.............................

United

States

134,634

9,250,702

a

Merus

NV

...........................................

Netherlands

404,226

7,753,055

a

Mineralys

Therapeutics,

Inc.

.............................

United

States

143,600

1,931,420

a

Mirati

Therapeutics,

Inc.

................................

United

States

132,023

5,849,939

a

Mirum

Pharmaceuticals,

Inc.

.............................

United

States

190,863

5,124,672

a

Moderna,

Inc.

........................................

United

States

104,548

13,893,384

a

Neurocrine

Biosciences,

Inc.

.............................

United

States

177,673

17,952,080

a

PTC

Therapeutics,

Inc.

.................................

United

States

643,974

35,508,726

a

Regeneron

Pharmaceuticals,

Inc.

.........................

United

States

68,033

54,548,179

a,c

Reneo

Pharmaceuticals,

Inc.

.............................

United

States

158,423

1,619,083

a

Rocket

Pharmaceuticals,

Inc.

............................

United

States

217,526

3,898,066

a

Roivant

Sciences

Ltd.

..................................

United

States

518,500

4,433,175

a

Sage

Therapeutics,

Inc.

................................

United

States

101,070

4,937,269

a

Sarepta

Therapeutics,

Inc.

..............................

United

States

33,443

4,105,797

a

Seagen,

Inc.

.........................................

United

States

129,021

25,804,200

a

Sutro

Biopharma,

Inc.

..................................

United

States

564,189

2,403,445

a,c

Taysha

Gene

Therapies,

Inc.

.............................

United

States

304,256

235,798

a

Travere

Therapeutics,

Inc.

...............................

United

States

133,723

2,884,405

a

Ultragenyx

Pharmaceutical,

Inc.

..........................

United

States

60,696

2,650,594

a

Vaxcyte,

Inc.

.........................................

United

States

155,107

6,643,233

a

Vertex

Pharmaceuticals,

Inc.

.............................

United

States

175,594

59,830,144

a

Xenon

Pharmaceuticals,

Inc.

.............................

Canada

55,051

2,217,454

606,276,499

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

0.5%

a

Guardant

Health,

Inc.

..................................

United

States

173,066

$

3,904,369

Life

Sciences

Tools

&

Services

5.5%

a

Avantor,

Inc.

.........................................

United

States

374,400

7,293,312

a

Illumina,

Inc.

.........................................

United

States

129,900

26,702,244

Thermo

Fisher

Scientific,

Inc.

............................

United

States

22,679

12,584,577

46,580,133

Pharmaceuticals

18.8%

AstraZeneca

plc,

ADR

..................................

United

Kingdom

560,008

41,003,786

a

Catalent,

Inc.

........................................

United

States

22,700

1,137,724

a

Cymabay

Therapeutics,

Inc.

.............................

United

States

796,553

8,570,910

a

DICE

Therapeutics,

Inc.

................................

United

States

108,800

3,536,000

a

EyePoint

Pharmaceuticals,

Inc.

...........................

United

States

923,900

5,802,092

a

Intra-Cellular

Therapies,

Inc.

.............................

United

States

461,126

28,658,981

a

Jazz

Pharmaceuticals

plc

...............................

United

States

261,163

36,685,567

a

Marinus

Pharmaceuticals,

Inc.

............................

United

States

327,606

2,981,214

a

Pliant

Therapeutics,

Inc.

................................

United

States

300,500

8,489,125

a

Revance

Therapeutics,

Inc.

..............................

United

States

376,766

11,992,462

a,c

Structure

Therapeutics,

Inc.,

ADR

.........................

United

States

98,555

2,468,803

a

Terns

Pharmaceuticals,

Inc.

.............................

United

States

465,400

6,073,470

157,400,134

Total

Common

Stocks

(Cost

$567,146,470)

.....................................

814,161,135

Preferred

Stocks

0.7%

Biotechnology

0.2%

a,d,e

Pipeline

Therapeutics,

Inc.,

C

............................

United

States

779,505

1,435,375

a

Health

Care

Providers

&

Services

0.1%

a,b,d,e

Artiva

Biotherapeutics,

Inc.,

B

............................

United

States

189,499

829,888

a

Life

Sciences

Tools

&

Services

0.4%

f

Sartorius

AG,

0.41%

...................................

Germany

9,200

3,576,265

Total

Preferred

Stocks

(Cost

$8,357,518)

.......................................

5,841,528

Warrants

Warrants

0.4%

Biotechnology

0.4%

a,b

Applied

Therapeutics,

Inc.,

6/27/27

........................

United

States

814,000

1,383,719

a,b,d

Applied

Therapeutics,

Inc.,

6/27/27

........................

United

States

1,628,100

1,457,250

a,b,d

Benitec

Biopharma,

Inc.,

II,

9/14/27

........................

Australia

7,019,473

366,803

3,207,772

Pharmaceuticals

0.0%

†

a

Nuvation

Bio,

Inc.,

7/07/27

..............................

United

States

115,266

15,849

Total

Warrants

(Cost

$814,621)

................................................

3,223,621

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

See

Abbreviations

on

page

52.

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

0.0%

a,d

Sanofi

SA,

Escrow

Account

..............................

France

2,333,755

$

—

Total

Escrows

and

Litigation

Trusts

(Cost

$9,748)

...............................

—

Total

Long

Term

Investments

(Cost

$576,328,357)

...............................

823,226,284

a

Short

Term

Investments

2.3%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.0%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

16,832,344

16,832,344

Total

Money

Market

Funds

(Cost

$16,832,344)

..................................

16,832,344

a

a

a

i

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.3%

Money

Market

Funds

0.3%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

2,337,680

2,337,680

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$2,337,680)

............................................................

2,337,680

Total

Short

Term

Investments

(Cost

$19,170,024

)

................................

19,170,024

a

Total

Investments

(Cost

$595,498,381)

100.5%

..................................

$842,396,308

Other

Assets,

less

Liabilities

(0.5)%

...........................................

(3,990,915)

Net

Assets

100.0%

...........................................................

$838,405,393

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

8

regarding

holdings

of

5%

voting

securities.

c

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2023.

See

Note

1(c).

d

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

e

See

Note

7

regarding

restricted

securities.

f

Variable

rate

security.

The

rate

shown

represents

the

yield

at

period

end.

g

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

i

See

Note

1(c)

re

garding

securities

on

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$27.01

$20.02

$13.60

$23.58

$27.96

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.68

0.50

0.28

0.34

0.31

Net

realized

and

unrealized

gains

(losses)

...........

1.09

6.77

6.54

(9.96)

(4.20)

Total

from

investment

operations

....................

1.77

7.27

6.82

(9.62)

(3.89)

Less

distributions

from:

Net

investment

income

..........................

(0.68)

(0.28)

(0.40)

(0.36)

(0.49)

Net

asset

value,

end

of

year

.......................

$28.10

$27.01

$20.02

$13.60

$23.58

Total

return

c

...................................

6.56%

36.63%

50.55%

(41.30)%

(13.69)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.97%

1.10%

1.24%

1.17%

1.03%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.96%

d

1.10%

e

1.24%

d,e

1.17%

d,e

1.03%

d,e

Net

investment

income

...........................

2.45%

2.17%

1.71%

1.75%

1.21%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$301,153

$289,403

$176,127

$123,467

$247,362

Portfolio

turnover

rate

............................

23.76%

27.45%

49.23%

25.60%

29.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$26.45

$19.58

$13.25

$22.82

$27.17

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.46

0.32

0.15

0.19

0.11

Net

realized

and

unrealized

gains

(losses)

...........

1.06

6.63

6.38

(9.70)

(4.07)

Total

from

investment

operations

....................

1.52

6.95

6.53

(9.51)

(3.96)

Less

distributions

from:

Net

investment

income

..........................

(0.54)

(0.08)

(0.20)

(0.06)

(0.39)

Net

asset

value,

end

of

year

.......................

$27.43

$26.45

$19.58

$13.25

$22.82

Total

return

c

...................................

5.75%

35.59%

49.42%

(41.71)%

(14.37)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.72%

1.86%

1.99%

1.92%

1.78%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

1.71%

d

1.86%

e

1.99%

d,e

1.92%

d,e

1.78%

d,e

Net

investment

income

...........................

1.72%

1.41%

0.93%

1.00%

0.46%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$25,090

$30,427

$27,753

$23,391

$49,620

Portfolio

turnover

rate

............................

23.76%

27.45%

49.23%

25.60%

29.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$29.17

$21.58

$14.63

$25.22

$29.79

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.79

0.64

0.39

0.54

0.45

Net

realized

and

unrealized

gains

(losses)

...........

1.24

7.31

7.05

(10.76)

(4.49)

Total

from

investment

operations

....................

2.03

7.95

7.44

(10.22)

(4.04)

Less

distributions

from:

Net

investment

income

..........................

(0.75)

(0.36)

(0.49)

(0.37)

(0.53)

Net

asset

value,

end

of

year

.......................

$30.45

$29.17

$21.58

$14.63

$25.22

Total

return

....................................

6.99%

37.24%

51.43%

(41.02)%

(13.31)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.65%

0.80%

0.89%

0.72%

0.62%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.56%

c

0.65%

0.72%

c

0.66%

c

0.59%

c

Net

investment

income

...........................

2.65%

2.53%

2.22%

2.26%

1.65%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$12,387

$4,943

$1,722

$839

$15,627

Portfolio

turnover

rate

............................

23.76%

27.45%

49.23%

25.60%

29.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Year

Ended

April

30,

2023

2022

2021

2020

2019

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$28.97

$21.44

$14.54

$25.20

$29.80

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.80

0.60

0.33

0.41

0.40

Net

realized

and

unrealized

gains

(losses)

...........

1.18

7.24

7.01

(10.64)

(4.49)

Total

from

investment

operations

....................

1.98

7.84

7.34

(10.23)

(4.09)

Less

distributions

from:

Net

investment

income

..........................

(0.72)

(0.31)

(0.44)

(0.43)

(0.51)

Net

asset

value,

end

of

year

.......................

$30.23

$28.97

$21.44

$14.54

$25.20

Total

return

....................................

6.86%

36.93%

50.95%

(41.15)%

(13.50)%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.72%

0.85%

1.00%

0.92%

0.78%

Expenses

net

of

waiver

and

payments

by

affiliates

.......

0.71%

c

0.85%

d

1.00%

c,d

0.92%

c,d

0.78%

c,d

Net

investment

income

...........................

2.71%

2.39%

1.93%

2.00%

1.46%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$82,840

$87,707

$39,562

$28,334

$62,639

Portfolio

turnover

rate

............................

23.76%

27.45%

49.23%

25.60%

29.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

d

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

a

Country

Shares

a

Value

a

Common

Stocks

99.4%

Agricultural

Products

&

Services

1.0%

Bunge

Ltd.

..........................................

United

States

23,800

$

2,227,680

a

Darling

Ingredients,

Inc.

................................

United

States

34,400

2,049,208

4,276,888

Construction

Machinery

&

Heavy

Transportation

Equipment

0.1%

a

Proterra,

Inc.

.........................................

United

States

496,800

581,256

a

Construction

Materials

0.8%

Martin

Marietta

Materials,

Inc.

............................

United

States

9,000

3,268,800

Copper

6.7%

Antofagasta

plc

.......................................

Chile

222,500

4,092,443

a

Capstone

Copper

Corp.

................................

Canada

882,800

4,151,363

a

ERO

Copper

Corp.

....................................

Brazil

246,200

4,849,118

First

Quantum

Minerals

Ltd.

.............................

Zambia

38,400

933,211

Freeport-McMoRan,

Inc.

................................

United

States

290,100

10,997,691

a

Imperial

Metals

Corp.

..................................

Canada

122,760

160,405

Lundin

Mining

Corp.

...................................

Chile

403,100

3,079,939

28,264,170

Diversified

Chemicals

0.9%

Huntsman

Corp.

......................................

United

States

135,500

3,630,045

Diversified

Metals

&

Mining

5.1%

29Metals

Ltd.

........................................

Australia

1,285,800

1,017,148

a

Aclara

Resources,

Inc.

.................................

United

Kingdom

489,200

166,124

a,b

Aclara

Resources,

Inc.,

144A

............................

United

Kingdom

510,754

173,444

Anglo

American

plc

....................................

South

Africa

84,900

2,616,124

BHP

Group

Ltd.,

ADR

..................................

Australia

127,700

7,539,408

Glencore

plc

.........................................

Australia

364,400

2,150,919

Rio

Tinto

plc,

ADR

.....................................

Australia

55,900

3,577,041

Teck

Resources

Ltd.,

B

.................................

Canada

90,000

4,194,000

21,434,208

Electrical

Components

&

Equipment

1.9%

a

Fluence

Energy,

Inc.

...................................

United

States

93,500

1,688,610

a

FREYR

Battery

SA

....................................

Norway

373,500

2,640,645

a

NEXTracker,

Inc.,

A

....................................

United

States

45,500

1,432,795

a

SES

AI

Corp.

........................................

United

States

77,544

126,397

a,c

SES

AI

Corp.

........................................

United

States

150,000

244,500

a

Shoals

Technologies

Group,

Inc.,

A

........................

United

States

83,900

1,752,671

7,885,618

Environmental

&

Facilities

Services

0.3%

a

Li-Cycle

Holdings

Corp.

.................................

Canada

120,000

570,000

a,c

Li-Cycle

Holdings

Corp.

.................................

Canada

173,800

825,550

1,395,550

Fertilizers

&

Agricultural

Chemicals

1.9%

Corteva,

Inc.

.........................................

United

States

70,700

4,321,184

Nutrien

Ltd.

..........................................

Canada

52,300

3,629,620

7,950,804

Gold

6.7%

Agnico

Eagle

Mines

Ltd.

................................

Canada

103,300

5,861,242

Alamos

Gold,

Inc.,

A

...................................

Canada

394,800

5,103,313

Barrick

Gold

Corp.

....................................

Canada

333,791

6,355,381

Newmont

Corp.

.......................................

United

States

149,600

7,091,040

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Gold

(continued)

SSR

Mining,

Inc.

......................................

Canada

268,000

$

3,837,760

28,248,736

Heavy

Electrical

Equipment

0.5%

a

TPI

Composites,

Inc.

...................................

United

States

164,400

2,031,984

a

Industrial

Gases

3.0%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

21,700

6,387,612

Linde

plc

............................................

United

States

17,500

6,465,375

12,852,987

Industrial

Machinery

&

Supplies

&

Components

0.8%

Xylem,

Inc.

..........................................

United

States

31,200

3,239,808

Integrated

Oil

&

Gas

16.5%

Chevron

Corp.

.......................................

United

States

100,100

16,874,858

Exxon

Mobil

Corp.

.....................................

United

States

151,400

17,916,676

Occidental

Petroleum

Corp.

.............................

United

States

99,000

6,091,470

Shell

plc,

ADR

........................................

Netherlands

207,400

12,854,652

Suncor

Energy,

Inc.

....................................

Canada

274,900

8,608,636

TotalEnergies

SE,

ADR

.................................

France

123,310

7,883,208

70,229,500

Marine

Transportation

0.3%

Eneti,

Inc.

...........................................

United

States

155,500

1,332,635

Metal,

Glass

&

Plastic

Containers

1.2%

Ball

Corp.

...........................................

United

States

57,600

3,063,168

Crown

Holdings,

Inc.

...................................

United

States

22,100

1,895,738

4,958,906

Oil

&

Gas

Drilling

1.5%

Helmerich

&

Payne,

Inc.

................................

United

States

76,400

2,533,424

Patterson-UTI

Energy,

Inc.

..............................

United

States

245,900

2,751,621

a

Precision

Drilling

Corp.

.................................

Canada

24,800

1,233,304

6,518,349

Oil

&

Gas

Equipment

&

Services

12.8%

Baker

Hughes

Co.

.....................................

United

States

195,600

5,719,344

Cactus,

Inc.,

A

........................................

United

States

48,200

1,951,136

ChampionX

Corp.

.....................................

United

States

117,800

3,190,024

Halliburton

Co.

.......................................

United

States

167,800

5,495,450

Liberty

Energy,

Inc.,

A

..................................

United

States

264,600

3,389,526

a

NexTier

Oilfield

Solutions,

Inc.

............................

United

States

402,200

3,249,776

a

Nine

Energy

Service,

Inc.

...............................

United

States

105,492

407,199

a

Oceaneering

International,

Inc.

...........................

United

States

147,600

2,616,948

a

Oil

States

International,

Inc.

.............................

United

States

188,200

1,324,928

a

Ranger

Energy

Services,

Inc.

............................

United

States

327,795

3,671,304

Schlumberger

NV

.....................................

United

States

251,800

12,426,330

Schoeller-Bleckmann

Oilfield

Equipment

AG

.................

Austria

17,600

1,105,505

Select

Energy

Services,

Inc.,

A

...........................

United

States

312,900

2,324,847

d

Technip

Energies

NV

...................................

France

76,999

1,708,440

a

TechnipFMC

plc

......................................

United

Kingdom

379,800

5,199,462

53,780,219

Oil

&

Gas

Exploration

&

Production

21.5%

Aker

BP

ASA

.........................................

Norway

139,600

3,337,675

Canadian

Natural

Resources

Ltd.

.........................

Canada

207,800

12,664,970

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Oil

&

Gas

Exploration

&

Production

(continued)

ConocoPhillips

.......................................

United

States

179,200

$

18,437,888

Coterra

Energy,

Inc.

...................................

United

States

336,000

8,601,600

Devon

Energy

Corp.

...................................

United

States

135,500

7,239,765

EOG

Resources,

Inc.

..................................

United

States

122,900

14,682,863

EQT

Corp.

..........................................

United

States

92,900

3,236,636

Hess

Corp.

..........................................

United

States

56,600

8,210,396

Matador

Resources

Co.

................................

United

States

36,600

1,794,498

PDC

Energy,

Inc.

.....................................

United

States

42,300

2,751,615

Pioneer

Natural

Resources

Co.

...........................

United

States

44,001

9,572,417

90,530,323

Oil

&

Gas

Refining

&

Marketing

5.2%

Marathon

Petroleum

Corp.

..............................

United

States

68,000

8,296,000

Phillips

66

...........................................

United

States

73,600

7,286,400

Valero

Energy

Corp.

...................................

United

States

53,500

6,134,845

21,717,245

Oil

&

Gas

Storage

&

Transportation

7.9%

Cheniere

Energy,

Inc.

..................................

United

States

13,600

2,080,800

Enbridge,

Inc.

........................................

Canada

71,000

2,822,960

Kinder

Morgan,

Inc.

....................................

United

States

431,500

7,400,225

New

Fortress

Energy,

Inc.

...............................

United

States

63,400

1,920,386

Targa

Resources

Corp.

.................................

United

States

63,600

4,803,708

TC

Energy

Corp.

......................................

Canada

181,400

7,535,356

Williams

Cos.,

Inc.

(The)

................................

United

States

214,400

6,487,744

33,051,179

Paper

&

Plastic

Packaging

Products

&

Materials

0.6%

Packaging

Corp.

of

America

.............................

United

States

19,600

2,651,096

Semiconductor

Materials

&

Equipment

0.4%

a

SolarEdge

Technologies,

Inc.

............................

United

States

6,100

1,742,343

a

Specialty

Chemicals

1.1%

Albemarle

Corp.

......................................

United

States

10,100

1,873,146

Ecolab,

Inc.

..........................................

United

States

11,800

1,980,512

Neo

Performance

Materials,

Inc.

..........................

Canada

23,600

156,451

b

Neo

Performance

Materials,

Inc.,

144A

.....................

Canada

85,000

563,487

4,573,596

Steel

0.7%

Vale

SA,

ADR

........................................

Brazil

207,400

2,988,634

Total

Common

Stocks

(Cost

$289,673,752)

.....................................

419,134,879

Warrants

a

a

a

a

a

Warrants

0.2%

Integrated

Oil

&

Gas

0.2%

a

Occidental

Petroleum

Corp.,

8/03/27

.......................

United

States

17,900

719,580

Total

Warrants

(Cost

$88,605)

.................................................

719,580

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Convertible

Bonds

0.3%

Oil

&

Gas

Equipment

&

Services

0.3%

Oil

States

International,

Inc.,

Senior

Note,

4.75%,

4/01/26

.......

United

States

1,200,000

$

1,255,869

Total

Convertible

Bonds

(Cost

$1,200,000)

.....................................

1,255,869

Total

Long

Term

Investments

(Cost

$290,962,357)

...............................

421,110,328

a

Short

Term

Investments

0.3%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.1%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

631,197

631,197

Total

Money

Market

Funds

(Cost

$631,197)

.....................................

631,197

g

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.2%

Money

Market

Funds

0.2%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

684,160

684,160

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$684,160)

...................................................................

684,160

Total

Short

Term

Investments

(Cost

$1,315,357

)

.................................

1,315,357

a

Total

Investments

(Cost

$292,277,714)

100.2%

..................................

$422,425,685

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(956,133)

Net

Assets

100.0%

...........................................................

$421,469,552

See

Abbreviations

on

page

52.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

a

Non-income

producing.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

April

30,

2023,

the

aggregate

value

of

these

securities

was

$736,931,

representing

0.2%

of

net

assets.

c

See

Note

7

regarding

restricted

securities.

d

A

portion

or

all

of

the

security

is

on

loan

at

April

30,

2023.

See

Note

1(c).

e

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

g

See

Note

1(c)

regarding

securities

on

loan.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

April

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

..................................................

$559,805,666

$290,962,357

Cost

-

Non-controlled

affiliates

(Note

3

f

and

8

)

...................................

35,692,715

1,315,357

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$2,237,202

and

$666,861,

respectively)

............................................................

$813,548,296

$421,110,328

Value

-

Non-controlled

affiliates

(Note

3

f

and

8

)

..................................

28,848,012

1,315,357

Cash

...................................................................

35,909

26,898

Foreign

currency,

at

value

(cost

$–

and

$105,909,

respectively)

.......................

—

105,909

Receivables:

Investment

securities

sold

..................................................

47,695

—

Capital

shares

sold

.......................................................

154,350

92,379

Dividends

and

interest

....................................................

33,525

418,183

European

Union

tax

reclaims

(Note

1

d

)

........................................

—

100,739

Total

assets

.........................................................

842,667,787

423,169,793

Liabilities:

Payables:

Investment

securities

purchased

.............................................

62,022

—

Capital

shares

redeemed

..................................................

892,173

533,589

Management

fees

........................................................

445,562

180,943

Distribution

fees

.........................................................

100,497

84,756

Transfer

agent

fees

.......................................................

306,942

163,940

Trustees'

fees

and

expenses

................................................

168

625

Payable

upon

return

of

securities

loaned

(Note

1

c

)

.................................

2,337,680

684,160

Accrued

expenses

and

other

liabilities

..........................................

117,350

52,228

Total

liabilities

........................................................

4,262,394

1,700,241

Net

assets,

at

value

................................................

$838,405,393

$421,469,552

Net

assets

consist

of:

Paid-in

capital

............................................................

$621,009,282

$486,492,141

Total

distributable

earnings

(losses)

............................................

217,396,111

(65,022,589)

Net

assets,

at

value

................................................

$838,405,393

$421,469,552

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

April

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Class

A:

Net

assets,

at

value

......................................................

$686,533,954

$301,153,253

Shares

outstanding

.......................................................

6,102,722

10,718,452

Net

asset

value

per

share

a

.................................................

$112.50

$28.10

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

...............

$119.05

$29.74

Class

C:

Net

assets,

at

value

......................................................

$29,572,851

$25,089,718

Shares

outstanding

.......................................................

284,955

914,641

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$103.78

$27.43

Class

R6:

Net

assets,

at

value

......................................................

$11,691,961

$12,386,518

Shares

outstanding

.......................................................

97,982

406,784

Net

asset

value

and

maximum

offering

price

per

share

............................

$119.33

$30.45

Advisor

Class:

Net

assets,

at

value

......................................................

$110,606,627

$82,840,063

Shares

outstanding

.......................................................

941,002

2,740,460

Net

asset

value

and

maximum

offering

price

per

share

............................

$117.54

$30.23

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

April

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$2,167

and

$564,885,

respectively)

Unaffiliated

issuers

.......................................................

$4,484,445

$14,412,405

Non-controlled

affiliates

(Note

3

f

and

8

)

........................................

369,628

204,367

Interest:

Unaffiliated

issuers

.......................................................

872

58,733

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

....................................

101,559

(13,515)

Non-controlled

affiliates

(Note

3

f

)

............................................

70,709

23,856

Other

income

(Note

1

d

)

.....................................................

—

91,163

Total

investment

income

..................................................

5,027,213

14,777,009

Expenses:

Management

fees

(Note

3

a

)

..................................................

5,091,829

2,197,012

Distribution

fees:

(Note

3c

)

    Class

A

...............................................................

1,701,336

766,687

    Class

C

...............................................................

306,839

301,127

Transfer

agent

fees:

(Note

3e

)

    Class

A

...............................................................

1,245,344

573,585

    Class

C

...............................................................

56,150

56,473

    Class

R6

..............................................................

15,502

7,193

    Advisor

Class

...........................................................

201,043

167,275

Custodian

fees

(Note

4

)

.....................................................

3,826

6,597

Reports

to

shareholders

fees

.................................................

(59,356)

(61,263)

Registration

and

filing

fees

...................................................

69,030

84,046

Professional

fees

..........................................................

88,283

60,013

Trustees'

fees

and

expenses

.................................................

4,388

6,179

Interest

expense

..........................................................

554

20

Other

...................................................................

38,372

21,813

Total

expenses

........................................................

8,763,140

4,186,757

Expense

reductions

(Note

4

)

..............................................

—

(364)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

.............................

(74,085)

(41,478)

Net

expenses

........................................................

8,689,055

4,144,915

Net

investment

income

(loss)

...........................................

(3,661,842)

10,632,094

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

27,141,814

11,856,916

Foreign

currency

transactions

...............................................

7,738

(21,902)

Net

realized

gain

(loss)

.................................................

27,149,552

11,835,014

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

57,813,053

1,594,713

Non-controlled

affiliates

(Note

3

f

and

8

)

......................................

1,076,159

—

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

.............

—

9,822

Net

change

in

unrealized

appreciation

(depreciation)

...........................

58,889,212

1,604,535

Net

realized

and

unrealized

gain

(loss)

...........................................

86,038,764

13,439,549

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$82,376,922

$24,071,643

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(3,661,842)

$(6,278,589)

$10,632,094

$6,378,671

Net

realized

gain

(loss)

............

27,149,552

(8,447,950)

11,835,014

22,555,447

Net

change

in

unrealized

appreciation

(depreciation)

.................

58,889,212

(361,108,400)

1,604,535

62,255,900

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

82,376,922

(375,834,939)

24,071,643

91,190,018

Distributions

to

shareholders:

Class

A

........................

(904,691)

(116,449,013)

(7,499,623)

(2,494,288)

Class

C

........................

—

(5,802,207)

(603,835)

(89,554)

Class

R6

.......................

(47,834)

(1,531,760)

(157,126)

(38,089)

Advisor

Class

...................

(416,127)

(18,710,888)

(2,191,684)

(604,573)

Total

distributions

to

shareholders

.....

(1,368,652)

(142,493,868)

(10,452,268)

(3,226,504)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(85,965,290)

(32,374,163)

1,741,488

49,938,829

Class

C

........................

(7,011,858)

(9,481,659)

(6,228,814)

(5,131,362)

Class

R6

.......................

997,279

(1,164,486)

7,004,889

2,505,666

Advisor

Class

...................

(10,783,345)

(26,838,261)

(7,147,183)

32,039,388

Total

capital

share

transactions

.......

(102,763,214)

(69,858,569)

(4,629,620)

79,352,521

Net

increase

(decrease)

in

net

assets

.....................

(21,754,944)

(588,187,376)

8,989,755

167,316,035

Net

assets:

Beginning

of

year

..................

860,160,337

1,448,347,713

412,479,797

245,163,762

End

of

year

......................

$838,405,393

$860,160,337

$421,469,552

$412,479,797

Franklin

Strategic

Series

39

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of ten

separate

funds, two

of

which

are

included

in

this

report

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

offer four classes

of

shares: Class

A,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

Franklin

Strategic

Series

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

April

30,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

Certain

or

all

Funds

participate

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the

Funds. The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statements

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

d.

Income

and

Deferred

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

 As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

certain

or

all

Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(EU

reclaims). Income

recognized,

if

any,

for

EU

reclaims

is

reflected

as

other

income

in

the

Statements of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statements

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

When

uncertainty

exists

as

to

the

ultimate

resolution

of

these

proceedings,

the

likelihood

of

receipt

of

these

EU

reclaims,

and

the

potential

timing

of

payment,

no

amounts

are

reflected

in

the

financial

statements.

For

U.S.

income

tax

purposes,

EU

reclaims

received

by

the

Funds,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or credits

on

their income

tax

returns.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

April

30,

2023, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Funds.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

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

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

42

franklintempleton.com

Annual

Report

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

April

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Year

ended

April

30,

2023

Shares

sold

a

...................................

412,448

$42,946,165

3,647,273

$101,114,332

Shares

issued

in

reinvestment

of

distributions

..........

8,033

859,459

265,105

7,409,681

Shares

redeemed

...............................

(1,245,319)

(129,770,914)

(3,910,363)

(106,782,525)

Net

increase

(decrease)

..........................

(824,838)

$(85,965,290)

2,015

$1,741,488

Year

ended

April

30,

2022

Shares

sold

a

...................................

697,466

$95,076,826

4,574,724

$112,358,901

Shares

issued

in

reinvestment

of

distributions

..........

920,138

111,042,205

113,195

2,454,070

Shares

redeemed

...............................

(1,787,600)

(238,493,194)

(2,769,168)

(64,874,142)

Net

increase

(decrease)

..........................

(169,996)

$(32,374,163)

1,918,751

$49,938,829

Class

C

Class

C

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

23,788

$2,280,883

401,440

$10,974,990

Shares

issued

in

reinvestment

of

distributions

..........

—

—

21,669

592,875

Shares

redeemed

a

..............................

(97,280)

(9,292,741)

(658,964)

(17,796,679)

Net

increase

(decrease)

..........................

(73,492)

$(7,011,858)

(235,855)

$(6,228,814)

Year

ended

April

30,

2022

Shares

sold

...................................

58,272

$7,410,166

528,718

$12,503,124

Shares

issued

in

reinvestment

of

distributions

..........

51,346

5,768,235

4,156

88,531

Shares

redeemed

a

..............................

(174,846)

(22,660,060)

(799,586)

(17,723,017)

Net

increase

(decrease)

..........................

(65,228)

$(9,481,659)

(266,712)

$(5,131,362)

Class

R6

1.

Organization

and

Significant

Accounting

Policies

(continued)

f.

Accounting

Estimates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

43

franklintempleton.com

Annual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

56,562

$6,304,709

343,698

$10,093,852

Shares

issued

in

reinvestment

of

distributions

..........

405

45,955

5,194

157,126

Shares

redeemed

...............................

(47,951)

(5,353,385)

(111,579)

(3,246,089)

Net

increase

(decrease)

..........................

9,016

$997,279

237,313

$7,004,889

Year

ended

April

30,

2022

Shares

sold

...................................

30,316

$4,514,817

136,937

$3,702,675

Shares

issued

in

reinvestment

of

distributions

..........

11,670

1,491,452

1,629

38,088

Shares

redeemed

...............................

(50,114)

(7,170,755)

(48,892)

(1,235,097)

Net

increase

(decrease)

..........................

(8,128)

$(1,164,486)

89,674

$2,505,666

Advisor

Class

Advisor

Class

Shares:

Year

ended

April

30,

2023

Shares

sold

...................................

243,071

$26,463,616

924,804

$27,535,454

Shares

issued

in

reinvestment

of

distributions

..........

3,436

384,000

72,395

2,174,756

Shares

redeemed

...............................

(345,613)

(37,630,961)

(1,283,885)

(36,857,393)

Net

increase

(decrease)

..........................

(99,106)

$(10,783,345)

(286,686)

$(7,147,183)

Year

ended

April

30,

2022

Shares

sold

...................................

212,105

$29,010,753

1,902,955

$49,991,010

Shares

issued

in

reinvestment

of

distributions

..........

134,287

16,914,739

25,738

598,134

Shares

redeemed

...............................

(520,642)

(72,763,753)

(746,824)

(18,549,756)

Net

increase

(decrease)

..........................

(174,250)

$(26,838,261)

1,181,869

$32,039,388

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

44

franklintempleton.com

Annual

Report

a.

Management

Fees

Franklin

Biotechnology

Discovery

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

Franklin

Natural

Resources

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

April

30,

2023,

each

Fund's

gross

effective

investment

management

fee

rate

based

on

average

daily

net

assets

was

as

follows:

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds.

The

fee

is

paid

by

Advisers

based

on

the

Funds’

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

Annualized

Fee

Rate

Net

Assets

0.775%

Up

to

and

including

$100

million

0.650%

Over

$100

million,

up

to

and

including

$200

million

0.635%

Over

$200

million,

up

to

and

including

$250

million

0.585%

Over

$250

million,

up

to

and

including

$700

million

0.550%

Over

$700

billion,

up

to

and

including

$1.2

billion

0.525%

Over

$1.2

billion,

up

to

and

including

$7.5

billion

0.515%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.505%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.495%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.475%

In

excess

of

$15

billion

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Gross

effective

investment

management

fee

rate

........

0.613%

0.508%

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

45

franklintempleton.com

Annual

Report

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

year

ended

April

30,

2023,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Class

A

...............................

0.35%

0.35%

Class

C

...............................

1.00%

1.00%

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$58,064

$68,617

CDSC

retained

...........................

$6,077

$11,790

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Transfer

agent

fees

........................

$466,255

$311,543

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

46

franklintempleton.com

Annual

Report

f.

Investments

in

Affiliated

Management

Investment

Companies

Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

April

30,

2023,

investments

in

affiliated

management

investment

companies

were

as

follows:

g.

Waiver

and

Expense

Reimbursements

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

August

31,

2023.

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$

6,199,878

$

199,287,144

$

(188,654,678)

$

—

$

—

$

16,832,344

16,832,344

$

369,628

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$4,994,101

$92,422,202

$(95,078,623)

$—

$—

$2,337,680

2,337,680

$70,709

Total

Affiliated

Securities

...

$11,193,979

$291,709,346

$(283,733,301)

$—

$—

$19,170,024

$440,337

Franklin

Natural

Resources

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$18,559,837

$96,332,947

$(114,261,587)

$—

$—

$631,197

631,197

$204,367

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$3,718,640

$41,113,370

$(44,147,850)

$—

$—

$684,160

684,160

$23,856

Total

Affiliated

Securities

...

$22,278,477

$137,446,317

$(158,409,437)

$—

$—

$1,315,357

$228,223

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

47

franklintempleton.com

Annual

Report

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

year

ended

April

30,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

April

30,

2023,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended

April

30,

2023,

the

following Funds

utilized

capital

loss

carryforwards

as

follows:

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

April

30,

2023,

the

Franklin

Biotechnology

Discovery

Fund

deferred

late-year

ordinary

losses

of

$977,896.

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2023

and

2022,

was

as

follows:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

19,657,690

$

1,961,609

Long

term

.............................

3,326,369

194,793,518

Total

capital

loss

carryforwards

............

$22,984,059

$196,755,127

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Capital

loss

utilized

carryforwards

....

$—

$11,531,959

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

2023

2022

2023

2022

Distributions

paid

from:

Ordinary

income

........................

$1,368,652

$17,767,039

$10,452,268

$3,226,504

Long

term

capital

gain

....................

—

124,726,829

—

—

$1,368,652

$142,493,868

$10,452,268

$3,226,504

Franklin

Strategic

Series

Notes

to

Financial

Statements

48

franklintempleton.com

Annual

Report

At

April

30,

2023,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

passive

foreign

investment

company

shares,

corporate

actions

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

April

30,

2023,

were

as

follows:

At

April

30,

2023,

in

connection

with

securities

lending

transactions,

certain

or

all

Funds

loaned

investments

and

received

cash

collateral

as

follows:

7.

Restricted

Securities

Certain

or

all

Funds

invest

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

a

a

a

Cost

of

investments

.......................

$601,038,241

$300,212,790

Unrealized

appreciation

.....................

$343,300,603

$148,940,493

Unrealized

depreciation

.....................

(101,942,536)

(26,727,598)

Net

unrealized

appreciation

(depreciation)

.......

$241,358,067

$122,212,895

Distributable

earnings:

Undistributed

ordinary

income

................

$—

$7,247,218

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Purchases

..............................

$197,056,951

$112,974,553

Sales

..................................

$305,368,029

$100,727,892

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Securities

lending

transactions

a

:

Equity

investments

b

........................

$2,337,680

$684,160

a

The

agreements

can

be

terminated

at

any

time.

b

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statements

of

Assets

and

Liabilities.

5.

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

49

franklintempleton.com

Annual

Report

At

April

30,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2023

,

investments

in

“affiliated

companies”

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Biotechnology

Discovery

Fund

189,499

Artiva

Biotherapeutics,

Inc.,

B

...................

2/22/21

$

2,084,489

$

829,888

779,505

Pipeline

Therapeutics,

Inc.,

C

...................

2/09/21

2,088,995

1,435,375

Total

Restricted

Securities

(Value

is

0.3%

of

Net

Assets)

..............

$4,173,484

$2,265,263

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Natural

Resources

Fund

173,800

a

Li-Cycle

Holdings

Corp

........................

2/16/21

$

1,738,000

$

825,550

150,000

b

SES

AI

Corp

...............................

7/09/21

1,500,000

244,500

Total

Restricted

Securities

(Value

is

0.3%

of

Net

Assets)

..............

$3,238,000

$1,070,050

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$570,000

as

of

April

30,

2023.

b

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$126,397

as

of

April

30,

2023.

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

S

S

hares/Warrants

Held

at

End

of

Year

Investment

Income

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Applied

Therapeutics,

Inc.

$

1,499,867

$

1,768,247

$

—

$

—

$

1,124,778

$

4,392,892

2,584,054

$

—

Applied

Therapeutics,

Inc.,

6/27/27

..........

—

813,919

—

—

569,800

1,383,719

814,000

—

Applied

Therapeutics,

Inc.,

6/27/27

.

.........

—

—

a

—

—

1,457,250

1,457,250

1,628,100

—

Artiva

Biotherapeutics,

Inc.,

B

..........

797,876

—

—

—

32,012

829,888

189,499

—

Benitec

Biopharma,

Inc.

—

3,721,218

—

—

(2,473,782)

1,247,436

6,203,064

—

Benitec

Biopharma,

Inc.,

II,

9/14/27

..........

—

702

—

—

366,101

366,803

7,019,473

—

Total

Affiliated

Securities

(Value

is

1.2%

of

Net

Assets)

..........

$2,297,743

$6,304,086

$—

$—

$1,076,159

$9,677,988

$—

7.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

50

franklintempleton.com

Annual

Report

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

year ended

April

30,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

April

30,

2023,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

Level

1

Level

2

Level

3

Total

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

.........................

$

814,161,135

$

—

$

—

$

814,161,135

Preferred

Stocks

:

Biotechnology

.........................

—

—

1,435,375

1,435,375

Health

Care

Providers

&

Services

..........

—

—

829,888

829,888

Life

Sciences

Tools

&

Services

............

—

3,576,265

—

3,576,265

Warrants

:

Biotechnology

.........................

—

1,383,719

1,824,053

3,207,772

Pharmaceuticals

.......................

15,849

—

—

15,849

Escrows

and

Litigation

Trusts

...............

—

—

—

b

—

Short

Term

Investments

...................

19,170,024

—

—

19,170,024

Total

Investments

in

Securities

...........

$833,347,008

$4,959,984

c

$4,089,316

$842,396,308

8.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

51

franklintempleton.com

Annual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year. 

11.

New

Accounting

Pronouncements

In June

2022,

the FASB

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

Natural

Resources

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

:

Agricultural

Products

&

Services

...........

$

4,276,888

$

—

$

—

$

4,276,888

Construction

Machinery

&

Heavy

Transportation

Equipment

..........................

581,256

—

—

581,256

Construction

Materials

..................

3,268,800

—

—

3,268,800

Copper

..............................

24,171,727

4,092,443

—

28,264,170

Diversified

Chemicals

...................

3,630,045

—

—

3,630,045

Diversified

Metals

&

Mining

...............

15,650,017

5,784,191

—

21,434,208

Electrical

Components

&

Equipment

........

7,885,618

—

—

7,885,618

Environmental

&

Facilities

Services

.........

1,395,550

—

—

1,395,550

Fertilizers

&

Agricultural

Chemicals

.........

7,950,804

—

—

7,950,804

Gold

................................

28,248,736

—

—

28,248,736

Heavy

Electrical

Equipment

..............

2,031,984

—

—

2,031,984

Industrial

Gases

.......................

12,852,987

—

—

12,852,987

Industrial

Machinery

&

Supplies

&

Components

3,239,808

—

—

3,239,808

Integrated

Oil

&

Gas

....................

70,229,500

—

—

70,229,500

Marine

Transportation

...................

1,332,635

—

—

1,332,635

Metal,

Glass

&

Plastic

Containers

..........

4,958,906

—

—

4,958,906

Oil

&

Gas

Drilling

......................

6,518,349

—

—

6,518,349

Oil

&

Gas

Equipment

&

Services

...........

50,966,274

2,813,945

—

53,780,219

Oil

&

Gas

Exploration

&

Production

.........

87,192,648

3,337,675

—

90,530,323

Oil

&

Gas

Refining

&

Marketing

............

21,717,245

—

—

21,717,245

Oil

&

Gas

Storage

&

Transportation

.........

33,051,179

—

—

33,051,179

Paper

&

Plastic

Packaging

Products

&

Materials

2,651,096

—

—

2,651,096

Semiconductor

Materials

&

Equipment

......

1,742,343

—

—

1,742,343

Specialty

Chemicals

....................

4,010,109

563,487

—

4,573,596

Steel

................................

2,988,634

—

—

2,988,634

Warrants

..............................

719,580

—

—

719,580

Convertible

Bonds

.......................

—

1,255,869

—

1,255,869

Short

Term

Investments

...................

1,315,357

—

—

1,315,357

Total

Investments

in

Securities

...........

$404,578,075

$17,847,610

d

$—

$422,425,685

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

financial

instruments

determined

to

have

no

value

at

April

30,

2023.

c

Includes

foreign

securities

valued

at

$3,576,265,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

d

Includes

foreign

securities

valued

at

$16,028,254,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

52

franklintempleton.com

Annual

Report

12.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ADR

American

Depositary

Receipt

Franklin

Strategic

Series

53

franklintempleton.com

Annual

Report

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Biotechnology

Discovery

Fund

and

Franklin

Natural

Resources

Fund

Opinions

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Biotechnology

Discovery

Fund

and

Franklin

Natural

Resources

Fund

(two

of

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

April

30,

2023,

the

related

statements

of

operations

for

the

year

ended

April

30,

2023,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

April

30,

2023,

the

results

of

each

of

their

operations

for

the

year

then

ended,

the

changes

in

each

of

their

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023

and

each

of

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2023

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

PricewaterhouseCoopers

LLP

San

Francisco,

California

June

16,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

54

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amount

s

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Funds

below

hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2023:

Pursuant

to:

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$3,676,920

$9,576,627

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$4,474,331

$15,292,409

Section

163(j)

Interest

Dividends

Earned

§163(j)

$

—

$42,591

Franklin

Strategic

Series

Board

Members

and

Officers

55

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

Investments

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

118

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

118

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

118

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

56

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

118

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

118

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

118

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

57

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

110

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

January

2023

and

Trustee

since

2013

129

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

1991

118

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Legg

Mason

Partners

Fund

Advisor,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006

to

2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005

to

2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

58

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

59

franklintempleton.com

Annual

Report

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

60

franklintempleton.com

Annual

Report

BOARD

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENTS

FRANKLIN

STRATEGIC

SERIES

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

18,

2023

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

Franklin

Strategic

Series

Shareholder

Information

61

franklintempleton.com

Annual

Report

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Biotechnology

Discovery

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

health/biotechnology

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund

concentrates

its

investments

within

the

biotechnology

industries,

while

the

Performance

Universe

is

comprised

mostly

of

general

healthcare

funds,

noting

that

healthcare

securities

outperformed

biotechnology

securities

for

the

one-,

three-

and

five-year

periods.

Management

also

noted

that

the

Fund

outperformed

its

narrow

peer

group

of

biotechnology-only

sector

funds

in

the

one-year

period

ending

December

31,

2022.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Natural

Resources

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

global

natural

resources

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-

and

three-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

above

the

median

of

its

Performance

Universe

and

for

the

10-year

period

was

equal

to

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-

related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

The

Board

also

noted

that

the

Fund’s

one-year

annualized

total

return

was

30.47%

and

fell

in

the

second

quintile

of

the

Fund’s

Performance

Universe

and

that

the

Fund’s

one-year

annualized

income

return

was

only

0.02%

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

each

of

the

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

Strategic

Series

Shareholder

Information

62

franklintempleton.com

Annual

Report

The

Expense

Group

for

the

Franklin

Biotechnology

Discovery

Fund

included

the

Fund

and

eight

other

health/

biotechnology

funds.

The

Expense

Group

for

the

Franklin

Natural

Resources

Fund

included

the

Fund,

six

other

global

natural

resources

funds

and

three

natural

resources

funds.

The

Board

noted

that

the

Management

Rates

and

actual

total

expense

ratios

for

the

Funds

were

below

the

medians

of

their

respective

Expense

Groups.

The

Board

concluded

that

the

Management

Rates

charged

to

the

Funds

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Franklin

Biotechnology

Discovery

Fund

had

experienced

a

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

Franklin

Strategic

Series

Shareholder

Information

63

franklintempleton.com

Annual

Report

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FSS2

A

06/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Strategic

Income

Fund

A

Series

of

Franklin

Strategic

Series

April

30,

2023

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Annual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

As

the

U.S.

Federal

Reserve

(Fed)

had

remained

firmly

on

a

hawkish

rate

path

throughout

2022,

September’s

rate

hike

in

2022

marked

the

third

consecutive

75

basis

point

(bp)

increase.

The

Fed

ended

the

calendar

year

with

two

additional

rate

increases

of

75

bps

and

50

bps,

respectively,

at

its

November

and

December

2022

Federal

Open

Market

Committee

meetings.

In

the

last

few

months

of

2022,

markets

focused

on

slowing

inflation

data

and

investors

grappled

with

the

timing

of

a

transition

from

a

rate

hiking

cycle

to

a

potential

Fed

pivot.

Against

this

backdrop,

the

Fed

followed

up

with

two

additional

25

bp

rate

increases

at

its

February

and

March

2023

meetings.

Although

investors

were

encouraged

by

a

general

downward

trend

in

inflation

data

at

the

beginning

of

the

first

quarter

of

2023,

sentiment

was

negatively

affected

in

the

second

half

of

March

as

the

failure

of

Silicon

Valley

Bank

spawned

additional

concerns

over

the

health

of

U.S.

regional

and

Swiss

banks.

Cautious

market

sentiment

carried

over

into

April

amid

the

ongoing

U.S.

debt

ceiling

debate.

During

the

12-month

period,

investor

concerns

about

inflation,

geopolitics

and

interest

rates

pressured

stock

and

bond

valuations.

In

this

environment,

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-0.43%

total

return

for

the

period.

1

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-positioned

for

the

years

ahead.

In

addition,

Franklin

Strategic

Income

Fund’s

annual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Edward

Perks,

CFA

President

and

Chief

Executive

Officer

–

Investment

Management

Franklin

Strategic

Series

This

letter

reflects

our

analysis

and

opinions

as

of

April

30,

2023,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Franklin

Strategic

Income

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

8

Financial

Highlights

and

Schedule

of

Investments

9

Financial

Statements

143

Notes

to

Financial

Statements

148

Report

of

Independent

Registered

Public

Accounting

Firm

168

Tax

Information

169

Board

Members

and

Officers

170

Shareholder

Information

175

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

Strategic

Income

Fund

This

annual

report

for

Franklin

Strategic

Income

Fund

covers

the

fiscal

year

ended

April

30,

2023.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

earn

a

high

level

of

current

income.

A

secondary

goal

is

capital

appreciation

over

the

long

term.

The

Fund

uses

an

active

asset

allocation

process

and

under

normal

market

conditions

invests

at

least

65%

of

its

assets

in

U.S.

and

foreign

debt

securities,

including

those

in

emerging

markets.

The

Fund

may

invest

in

all

varieties

of

fixed,

variable

and

floating

rate

income

securities,

including

bonds,

U.S.

and

foreign

government

and

agency

securities,

corporate

loans

(and

loan

participations),

mortgage-backed

securities

and

other

asset-backed

securities.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+0.73%

cumulative

total

return

for

the

12

months

under

review.

In

comparison,

the

Bloomberg

U.S.

Aggregate

Bond

Index,

which

represents

the

U.S.

investment-grade

fixed

rate

taxable

bond

market,

posted

a

-0.43%

cumulative

total

return.

1

You

can

find

more

of

the

Fund’s

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

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

.

Economic

and

Market

Overview

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-0.43%

total

return

for

the

12-month

period

ended

April

30,

2023.

1

High

inflation

and

tighter

monetary

policy

pressured

bond

prices

(which

move

inversely

to

yields)

early

in

the

period,

but

prices

began

to

recover

in

the

period’s

second

half.

Inflation

showed

signs

of

decelerating,

and

investors

anticipated

an

easing

of

the

current

monetary

tightening

cycle.

Prominent

bank

failures

late

in

the

period

also

benefited

bond

prices,

as

investors

sought

relative

stability

in

an

uncertain

market.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

at

each

of

its

eight

meetings

during

the

period

to

end

at

a

range

of

4.75%–5.00%,

a

full

450

basis

points

(bps)

higher

than

it

began.

1

The

Fed

noted

in

its

March

2023

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

Despite

its

goal

of

2%

long-run

inflation,

the

Fed

softened

its

firm

outlook

on

future

rate

hikes.

Furthermore,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-

backed

security

(MBS)

holdings.

UST

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-0.93%

total

return

for

the

12-month

period.

1

The

10-year

UST

yield,

which

moves

inversely

to

price,

increased

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Short-term

UST

yields

grew

significantly

more

than

long-term

UST

yields,

leading

to

an

inversion

in

the

yield

curve.

MBS,

as

measured

by

the

Bloomberg

U.S.

MBS

Fixed

Rate

Index,

posted

a

-0.88%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

two

decades

and

modest

prepayment

rates

led

to

increasing

interest-rate

sensitivity.

1

However,

corporate

bond

prices

advanced,

as

higher

yields

attracted

investors

despite

concerns

about

the

impact

of

elevated

interest

rates

on

corporate

profits

and

borrowing

costs.

In

this

environment,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Index,

posted

a

+1.22%

total

return,

while

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Investment

Grade

Index,

posted

a

+0.68%

total

return.

1

Investment

Strategy

We

use

an

active

asset

allocation

strategy

to

try

to

achieve

the

Fund’s

investment

goals.

We

employ

a

top-down

analysis

of

macroeconomic

trends

combined

with

a

bottom-

up

fundamental

analysis

of

market

sectors,

industries

and

issuers

to

try

to

take

advantage

of

varying

sector

reactions

to

economic

events.

We

regularly

enter

into

various

currency-

1.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

Strategic

Income

Fund

4

franklintempleton.com

Annual

Report

related

transactions

involving

derivative

instruments,

including

currency

and

cross

currency

forwards,

currency

swaps,

currency

and

currency

index

futures

contracts,

and

currency

options.

The

Fund

also

regularly

enters

into

interest-rate

and

credit-related

transactions

involving

derivative

instruments,

including

interest-rate,

fixed

income

total

return

and

credit

default

swaps

and

interest

rate

and/or

bond

futures

contracts.

Manager’s

Discussion

The

Fed

took

aggressive

action

to

address

the

decades-high

levels

of

inflation

in

the

U.S.,

raising

the

federal

funds

rate

by

450

bps

over

the

period

under

review.

Volatility

in

UST

yields

and

credit

spreads

increased

significantly

as

investor

sentiment

experienced

both

“risk-on”

and

“risk-off”

episodes,

which

were

heavily

influenced

by

macroeconomic

factors,

Fed

policy

adjustments,

and

emerging

U.S.

banking

turmoil.

Fixed

income

sectors

generally

posted

positive

total

returns,

mainly

due

to

falling

UST

yields.

During

the

period,

the

Fund’s

short

U.S.

duration

exposure

relative

to

the

benchmark

was

a

significant

contributor

to

performance,

led

by

positioning

in

the

two-year,10-year

and

longer

portion

of

the

UST

yield

curve.

Sector

allocations

benefited

relative

results,

led

by

out-of-benchmark

allocations

to

high-yield

(HY)

corporate

bonds,

non-

agency

residential

mortgage-backed

securities

(RMBS)

and

emerging

market

(EM)

debt.

Conversely,

allocations

to

bank

loans,

marketplace

loans

and

investment-grade

(IG)

corporate

bonds

detracted

from

performance.

Security

selection

was

a

slight

detractor

as

a

large

contribution

from

selection

in

HY

corporate

bonds

was

offset

by

selection

in

bank

loans,

as

well

as

IG

and

EM

debt.

The

Fund’s

largest

allocations

remained

in

HY

and

IG

corporate

bonds

and

USTs.

Over

the

12-month

period,

we

redeployed

capital

from

reductions

in

senior-secured

floating-rate

bank

loans,

HY,

RMBS

and

collateralized

loan

obligations

into

USTs,

IG

corporate

bonds,

and

MBS,

which

all

increased

over

the

period.

We

also

decreased

our

RMBS

allocation

during

the

year.

Thank

you

for

your

participation

in

Franklin

Strategic

Income

Fund.

We

look

forward

to

continuing

to

serve

your

investment

needs.

Sonal

Desai,

Ph.D.

Patrick

Klein,

Ph.D.

Patricia

O’Connor,

CFA

Thomas

Runkel,

CFA

Benjamin

Cryer,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

April

30,

2023,

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,

country,

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

4/30/23

%

of

Total

Net

Assets

Corporate

Bonds

45.4%

U.S.

Government

and

Agency

Securities

21.1%

Mortgage-Backed

Securities

6.4%

Management

Investment

Companies

5.1%

Asset-Backed

Securities

*

4.9%

Residential

Mortgage-Backed

Securities

3.7%

Foreign

Government

and

Agency

Securities

2.2%

Marketplace

Loans

1.9%

Other

1.2%

Short-Term

Investments

&

Other

Net

Assets

8.1%

*

Includes

non-agency

residential

mortgage

backed

securities,

collateralized

loan

obligations

and

consumer

loan

certificates.

Performance

Summary

as

of

April

30,

2023

Franklin

Strategic

Income

Fund

5

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

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

4/30/2

3

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

1-Year

+0.73%

-3.01%

5-Year

+5.41%

+0.30%

10-Year

+14.56%

+0.98%

Advisor

1-Year

+0.98%

+0.98%

5-Year

+6.83%

+1.33%

10-Year

+17.54%

+1.63%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

4.33%

3.97%

3.93%

Advisor

4.74%

4.38%

4.34%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Strategic

Income

Fund

Performance

Summary

6

franklintempleton.com

Annual

Report

See

page

7

for

Performance

Summary

footnotes.

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

indexes

include

reinvestment

of

any

income

or

distributions.

They

differ

from

the

Fund

in

composition

and

do

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/30/13–4/30/23)

Advisor

Class

(4/30/13–4/30/23)

Franklin

Strategic

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

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

possible

loss

of

principal.

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.

Changes

in

the

financial

strength

of

a

bond

issuer

or

in

a

bond’s

credit

rating

may

affect

its

value.

High

yields

reflect

the

higher

credit

risks

associated

with

certain

lower-rated

securities

held

in

the

portfolio.

Floating-rate

loans

and

high-yield

corporate

bonds

are

rated

below

investment

grade

and

are

subject

to

greater

risk

of

default,

which

could

result

in

loss

of

principal—a

risk

that

may

be

heightened

in

a

slowing

economy.

The

risks

of

foreign

securities

include

currency

fluctuations

and

political

uncertainty.

Investments

in

developing

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

their

relatively

small

size

and

lesser

liquidity.

Investing

in

derivative

securities

and

the

use

of

foreign

currency

techniques

involve

special

risks

as

such

may

not

achieve

the

anticipated

benefits

and/or

may

result

in

losses

to

the

Fund.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

perfor-

mance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

fees

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

8/31/23

without

Board

consent.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

the

sum

of

the

respective

class’s

dividend

distributions

over

the

past

12

months

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

4/30/23.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Source:

FactSet.

The

Bloomberg

U.S.

Aggregate

Bond

Index

measures

the

investment-grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

The

index

includes

Treasuries,

government-related

and

corporate

securities,

mortgage-backed

securities

(agency

fixed-rate

and

hybrid

adjustable-rate

mortgage

pass-throughs),

asset-backed

securities

and

commercial

mortgage-backed

securities

(agency

and

nonagency).

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

Consolidated

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(5/1/22–4/30/23)

Share

Class

Net

Investment

Income

A

$0.3705

C

$0.3353

R

$0.3500

R6

$0.4020

Advisor

$0.3909

Total

Annual

Operating

Expenses

8

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.88%

0.94%

Advisor

0.63%

0.69%

Your

Fund’s

Expenses

Franklin

Strategic

Income

Fund

8

franklintempleton.com

Annual

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

181/365

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

11/1/22

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

Ending

Account

Value

4/30/23

Expenses

Paid

During

Period

11/1/22–4/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,071.30

$4.57

$1,020.39

$4.45

0.89%

C

$1,000

$1,067.60

$6.60

$1,018.41

$6.44

1.29%

R

$1,000

$1,068.90

$5.84

$1,019.15

$5.70

1.14%

R6

$1,000

$1,071.80

$2.64

$1,022.25

$2.57

0.51%

Advisor

$1,000

$1,072.50

$3.28

$1,021.63

$3.20

0.64%

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

9

a

Year

Ended

April

30,

2023

2022

2021

*

2020

a

2019

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.55

$9.44

$8.67

$9.61

$9.61

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.36

0.29

0.37

0.38

0.42

Net

realized

and

unrealized

gains

(losses)

...........

(0.31)

(0.84)

0.75

(0.90)

—

d

Total

from

investment

operations

....................

0.05

(0.55)

1.12

(0.52)

0.42

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.37)

(0.34)

(0.35)

(0.42)

(0.42)

Net

asset

value,

end

of

year

.......................

$8.23

$8.55

$9.44

$8.67

$9.61

Total

return

e

...................................

0.73%

(6.07)%

13.05%

(5.72)%

4.52%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.94%

0.90%

0.88%

0.88%

0.89%

Expenses

net

of

waiver

and

payments

by

affiliates

f

......

0.89%

0.84%

0.86%

0.86%

0.84%

Net

investment

income

...........................

4.34%

3.11%

3.93%

4.01%

4.39%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,285,374

$2,609,533

$2,862,068

$2,686,523

$3,131,799

Portfolio

turnover

rate

............................

69.77%

52.98%

111.72%

g

118.64%

116.21%

g

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

h

....

69.77%

41.46%

54.21%

g

86.69%

39.01%

g

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

h

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

April

30,

2023

2022

2021

*

2020

a

2019

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.55

$9.44

$8.67

$9.61

$9.60

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.32

0.25

0.33

0.34

0.38

Net

realized

and

unrealized

gains

(losses)

...........

(0.30)

(0.84)

0.75

(0.90)

0.01

Total

from

investment

operations

....................

0.02

(0.59)

1.08

(0.56)

0.39

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.34)

(0.30)

(0.31)

(0.38)

(0.38)

Net

asset

value,

end

of

year

.......................

$8.23

$8.55

$9.44

$8.67

$9.61

Total

return

d

...................................

0.30%

(6.48)%

12.58%

(6.11)%

4.19%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.34%

1.29%

1.28%

1.28%

1.29%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

1.29%

1.24%

1.26%

1.26%

1.24%

Net

investment

income

...........................

3.92%

2.70%

3.51%

3.61%

3.99%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$100,037

$171,374

$387,589

$518,795

$716,327

Portfolio

turnover

rate

............................

69.77%

52.98%

111.72%

f

118.64%

116.21%

f

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

69.77%

41.46%

54.21%

f

86.69%

39.01%

f

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

g

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

April

30,

2023

2022

2021

*

2020

a

2019

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.51

$9.40

$8.63

$9.57

$9.57

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.33

0.27

0.34

0.36

0.39

Net

realized

and

unrealized

gains

(losses)

...........

(0.30)

(0.85)

0.76

(0.91)

0.01

Total

from

investment

operations

....................

0.03

(0.58)

1.10

(0.55)

0.40

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.35)

(0.31)

(0.33)

(0.39)

(0.40)

Net

asset

value,

end

of

year

.......................

$8.19

$8.51

$9.40

$8.63

$9.57

Total

return

....................................

0.48%

(6.33)%

12.83%

(5.98)%

4.28%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

1.19%

1.15%

1.13%

1.13%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

1.14%

1.09%

1.11%

1.11%

1.09%

Net

investment

income

...........................

4.09%

2.86%

3.68%

3.76%

4.14%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$40,939

$48,447

$59,366

$62,063

$85,458

Portfolio

turnover

rate

............................

69.77%

52.98%

111.72%

e

118.64%

116.21%

e

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

f

....

69.77%

41.46%

54.21%

e

86.69%

39.01%

e

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

f

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

April

30,

2023

2022

2021

*

2020

a

2019

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.56

$9.45

$8.68

$9.63

$9.62

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.39

0.32

0.40

0.43

0.45

Net

realized

and

unrealized

gains

(losses)

...........

(0.31)

(0.84)

0.75

(0.93)

0.02

Total

from

investment

operations

....................

0.08

(0.52)

1.15

(0.50)

0.47

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.40)

(0.37)

(0.38)

(0.45)

(0.46)

Net

asset

value,

end

of

year

.......................

$8.24

$8.56

$9.45

$8.68

$9.63

Total

return

....................................

1.12%

(5.72)%

13.45%

(5.46)%

5.03%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.58%

0.55%

0.54%

0.52%

0.51%

Expenses

net

of

waiver

and

payments

by

affiliates

d

......

0.51%

0.48%

0.50%

0.49%

0.45%

Net

investment

income

...........................

4.73%

3.47%

4.30%

4.38%

4.78%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$132,950

$136,184

$132,736

$133,575

$307,287

Portfolio

turnover

rate

............................

69.77%

52.98%

111.72%

e

118.64%

116.21%

e

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

f

....

69.77%

41.46%

54.21%

e

86.69%

39.01%

e

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

f

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

April

30,

2023

2022

2021

*

2020

a

2019

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$8.56

$9.45

$8.68

$9.62

$9.62

Income

from

investment

operations

b

:

Net

investment

income

c

.........................

0.38

0.31

0.39

0.40

0.44

Net

realized

and

unrealized

gains

(losses)

...........

(0.31)

(0.84)

0.75

(0.90)

—

d

Total

from

investment

operations

....................

0.07

(0.53)

1.14

(0.50)

0.44

Less

distributions

from:

Net

investment

income

and

net

foreign

currency

gains

..

(0.39)

(0.36)

(0.37)

(0.44)

(0.44)

Net

asset

value,

end

of

year

.......................

$8.24

$8.56

$9.45

$8.68

$9.62

Total

return

....................................

0.98%

(5.83)%

13.32%

(5.47)%

4.88%

Ratios

to

average

net

assets

Expenses

before

waiver

and

payments

by

affiliates

......

0.69%

0.65%

0.63%

0.63%

0.64%

Expenses

net

of

waiver

and

payments

by

affiliates

e

......

0.64%

0.59%

0.61%

0.61%

0.59%

Net

investment

income

...........................

4.59%

3.36%

4.18%

4.26%

4.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$311,142

$390,465

$462,624

$517,522

$608,317

Portfolio

turnover

rate

............................

69.77%

52.98%

111.72%

f

118.64%

116.21%

f

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

g

....

69.77%

41.46%

54.21%

f

86.69%

39.01%

f

*

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II

from

May

1,

2020

through

April

27,

2021.

a

Includes

the

consolidated

operations

of

FT

Holdings

Corporation

II.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

g

See

Note

1(h)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Strategic

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

0.6%

Broadline

Retail

0.0%

a,b,c

K2016470219

South

Africa

Ltd.,

A

.........................

South

Africa

125,940,079

$

—

a,b,c

K2016470219

South

Africa

Ltd.,

B

.........................

South

Africa

12,532,821

—

—

Energy

Equipment

&

Services

0.4%

b

Weatherford

International

plc

.............................

United

States

151,545

9,794,353

Media

0.0%

†

b

Clear

Channel

Outdoor

Holdings,

Inc.

......................

United

States

285,564

362,667

b

iHeartMedia,

Inc.,

A

....................................

United

States

117,026

406,080

768,747

Oil,

Gas

&

Consumable

Fuels

0.2%

b

Amplify

Energy

Corp.

..................................

United

States

5,288

36,540

d

Birch

Permian

Holdings,

Inc.

.............................

United

States

406,124

6,731,505

6,768,045

Total

Common

Stocks

(Cost

$22,627,345)

......................................

17,331,145

Management

Investment

Companies

5.1%

Capital

Markets

5.1%

e

Franklin

Floating

Rate

Income

Fund

.......................

United

States

18,687,540

145,949,688

Total

Management

Investment

Companies

(Cost

$174,404,193)

...................

145,949,688

Warrants

Warrants

0.0%

Oil,

Gas

&

Consumable

Fuels

0.0%

a,b

Canvas

Energy,

Inc.,

10/01/24

............................

United

States

9

—

a,b

Canvas

Energy,

Inc.,

10/01/25

............................

United

States

9

—

—

Software

0.0%

a,b,c

WorkCapital

BSD

SARL,

2/13/26

..........................

Luxembourg

6,000,000

—

Total

Warrants

(Cost

$750,000)

................................................

—

Principal

Amount

*

Convertible

Bonds

0.0%

†

Wireless

Telecommunication

Services

0.0%

†

f,g,h

Digicel

Group

Holdings

Ltd.

,

Sub.

Bond

,

144A,

PIK,

7

%

,

Perpetual

Bermuda

711,806

78,695

Total

Convertible

Bonds

(Cost

$195,531)

.......................................

78,695

Corporate

Bonds

45.4%

Aerospace

&

Defense

0.9%

Boeing

Co.

(The)

,

Senior

Bond,

3.625%,

2/01/31

..........................

United

States

5,000,000

4,578,135

Senior

Note,

5.15%,

5/01/30

...........................

United

States

8,100,000

8,166,046

h

TransDigm,

Inc.

,

Senior

Secured

Note,

144A,

6.25%,

3/15/26

...............

United

States

10,000,000

10,062,922

Senior

Secured

Note,

144A,

6.75%,

8/15/28

...............

United

States

2,500,000

2,541,977

25,349,080

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Air

Freight

&

Logistics

0.1%

h

DAE

Funding

LLC

,

Senior

Note

,

144A,

1.55

%

,

8/01/24

.........

United

Arab

Emirates

2,300,000

$

2,177,132

FedEx

Corp.

,

Senior

Bond

,

4.05

%

,

2/15/48

..................

United

States

1,200,000

979,648

3,156,780

Automobile

Components

1.2%

h

Adient

Global

Holdings

Ltd.

,

Senior

Note,

144A,

8.25%,

4/15/31

......................

United

States

3,300,000

3,384,312

Senior

Secured

Note,

144A,

7%,

4/15/28

..................

United

States

2,000,000

2,053,202

h

Allison

Transmission,

Inc.

,

Senior

Bond,

144A,

5.875%,

6/01/29

.....................

United

States

7,000,000

6,902,700

Senior

Bond,

144A,

3.75%,

1/30/31

......................

United

States

3,400,000

2,906,125

Dana,

Inc.

,

Senior

Note

,

5.625

%

,

6/15/28

...................

United

States

9,000,000

8,313,566

h

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

6,600,000

4,897,731

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

....

United

States

8,300,000

7,346,517

35,804,153

Automobiles

0.2%

h

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

7,000,000

5,802,855

Banks

5.7%

Banco

Santander

SA

,

Sub.

Bond

,

2.749

%

,

12/03/30

...........

Spain

3,000,000

2,382,255

Bank

of

America

Corp.

,

Senior

Bond,

4.571%

to

4/26/32,

FRN

thereafter,

4/27/33

.....

United

States

8,000,000

7,637,026

Senior

Bond,

2.676%

to

6/18/40,

FRN

thereafter,

6/19/41

.....

United

States

4,000,000

2,842,378

Senior

Note,

4.376%

to

4/26/27,

FRN

thereafter,

4/27/28

......

United

States

9,500,000

9,228,583

h

BNP

Paribas

SA

,

Senior

Note

,

144A,

2.819%

to

11/18/24,

FRN

thereafter

,

11/19/25

..................................

France

4,400,000

4,204,208

h

BPCE

SA

,

Senior

Note

,

144A,

2.045%

to

10/18/26,

FRN

thereafter

,

10/19/27

..........................................

France

7,900,000

6,989,487

Citigroup,

Inc.

,

Senior

Note

,

5.61%

to

9/28/25,

FRN

thereafter

,

9/29/26

...........................................

United

States

15,500,000

15,689,323

HSBC

Holdings

plc

,

Senior

Bond,

2.848%

to

6/03/30,

FRN

thereafter,

6/04/31

.....

United

Kingdom

8,300,000

6,989,255

Senior

Note,

4.18%

to

12/08/24,

FRN

thereafter,

12/09/25

.....

United

Kingdom

9,100,000

8,893,439

Senior

Note,

5.21%

to

8/10/27,

FRN

thereafter,

8/11/28

.......

United

Kingdom

5,850,000

5,828,262

JPMorgan

Chase

&

Co.

,

Senior

Bond,

2.522%

to

4/21/30,

FRN

thereafter,

4/22/31

.....

United

States

9,400,000

8,046,125

Senior

Bond,

2.525%

to

11/18/40,

FRN

thereafter,

11/19/41

....

United

States

4,000,000

2,809,588

Senior

Note,

3.845%

to

6/13/24,

FRN

thereafter,

6/14/25

......

United

States

6,800,000

6,678,373

KeyBank

NA

,

Senior

Note

,

4.15

%

,

8/08/25

..................

United

States

5,000,000

4,790,560

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Note

,

5.063%

to

9/11/24,

FRN

thereafter

,

9/12/25

.........................

Japan

9,200,000

9,156,055

National

Bank

of

Canada

,

Senior

Note

,

3.75%

to

6/08/24,

FRN

thereafter

,

6/09/25

...................................

Canada

8,300,000

8,144,750

Santander

UK

Group

Holdings

plc

,

Senior

Note

,

1.673%

to

6/23/26,

FRN

thereafter

,

6/14/27

...............................

United

Kingdom

6,700,000

5,870,308

h

Societe

Generale

SA

,

Senior

Bond,

144A,

2.889%

to

6/08/31,

FRN

thereafter,

6/09/32

France

7,500,000

5,961,587

Senior

Note,

144A,

1.792%

to

6/08/26,

FRN

thereafter,

6/09/27

.

France

7,200,000

6,329,152

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.693

%

,

9/15/27

.....

Canada

9,900,000

9,855,740

Truist

Financial

Corp.

,

Senior

Note

,

5.9%

to

10/27/25,

FRN

thereafter

,

10/28/26

..................................

United

States

7,900,000

7,941,955

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

(continued)

h

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

5,300,000

$

4,246,402

Wells

Fargo

&

Co.

,

Senior

Note,

1.654%

to

6/01/23,

FRN

thereafter,

6/02/24

......

United

States

8,600,000

8,571,453

Senior

Note,

4.54%

to

8/14/25,

FRN

thereafter,

8/15/26

.......

United

States

4,700,000

4,632,466

163,718,730

Beverages

0.3%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

3.5

%

,

6/01/30

Belgium

1,300,000

1,238,815

h

Primo

Water

Holdings,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/30/29

..

Canada

8,000,000

7,062,608

8,301,423

Biotechnology

0.6%

AbbVie,

Inc.

,

Senior

Note

,

3.2

%

,

11/21/29

...................

United

States

6,000,000

5,547,038

Amgen,

Inc.

,

Senior

Bond,

4.2%,

3/01/33

............................

United

States

4,000,000

3,839,712

Senior

Bond,

5.25%,

3/02/33

...........................

United

States

6,600,000

6,793,454

16,180,204

Broadline

Retail

0.0%

a,f,h

K2016470219

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

3

%

,

12/31/22

.......................................

South

Africa

10,914,248

—

a,f,h

K2016470260

South

Africa

Ltd.

,

Senior

Secured

Note

,

144A,

PIK,

25

%

,

12/31/22

......................................

South

Africa

4,807,777

—

—

Building

Products

0.6%

h

Camelot

Return

Merger

Sub,

Inc.

,

Senior

Secured

Note

,

144A,

8.75

%

,

8/01/28

.....................................

United

States

3,300,000

3,130,842

h

Eco

Material

Technologies,

Inc.

,

Senior

Secured

Note

,

144A,

7.875

%

,

1/31/27

.....................................

United

States

5,000,000

4,806,275

h

Knife

River

Holding

Co.

,

Senior

Note

,

144A,

7.75

%

,

5/01/31

.....

United

States

2,300,000

2,334,408

h

Standard

Industries,

Inc.

,

Senior

Bond,

144A,

4.75%,

1/15/28

......................

United

States

4,800,000

4,494,080

Senior

Bond,

144A,

4.375%,

7/15/30

.....................

United

States

1,600,000

1,383,014

Senior

Bond,

144A,

3.375%,

1/15/31

.....................

United

States

1,400,000

1,109,551

17,258,170

Capital

Markets

2.2%

Credit

Suisse

Group

AG

,

Senior

Note,

4.55%,

4/17/26

...........................

Switzerland

4,000,000

3,725,800

h

Senior

Note,

144A,

2.193%

to

6/04/25,

FRN

thereafter,

6/05/26

.

Switzerland

1,000,000

900,016

h

Senior

Note,

144A,

6.373%

to

7/14/25,

FRN

thereafter,

7/15/26

.

Switzerland

3,050,000

2,972,775

Deutsche

Bank

AG

,

Senior

Note

,

5.371

%

,

9/09/27

.............

Germany

7,800,000

7,738,213

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond,

3.21%

to

4/21/41,

FRN

thereafter,

4/22/42

......

United

States

7,000,000

5,269,561

Senior

Note,

5.7%,

11/01/24

...........................

United

States

6,200,000

6,257,705

Senior

Note,

4.387%

to

6/14/26,

FRN

thereafter,

6/15/27

......

United

States

3,400,000

3,343,596

Senior

Note,

1.948%

to

10/20/26,

FRN

thereafter,

10/21/27

....

United

States

3,000,000

2,688,493

h

Jane

Street

Group

/

JSG

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

4.5

%

,

11/15/29

......................................

United

States

3,500,000

3,135,874

Morgan

Stanley

,

Senior

Bond

,

3.591%

to

7/21/27,

FRN

thereafter

,

7/22/28

...........................................

United

States

10,000,000

9,484,362

h

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.25

%

,

8/15/33

...............

United

States

11,800,000

9,598,651

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Capital

Markets

(continued)

h,i

UBS

Group

AG

,

Senior

Note

,

144A,

FRN

,

5.711

%

,

(

1-year

CMT

T-Note

+

1.55

%

),

1/12/27

..............................

Switzerland

8,150,000

$

8,132,212

63,247,258

Chemicals

1.9%

h

ASP

Unifrax

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

9/30/28

...........................................

United

States

3,000,000

2,475,000

h

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,000,000

5,013,750

Celanese

US

Holdings

LLC

,

Senior

Note

,

6.165

%

,

7/15/27

......

United

States

4,850,000

4,912,954

h

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5.625

%

,

10/15/28

..........................................

Switzerland

6,700,000

5,895,900

h

CVR

Partners

LP

/

CVR

Nitrogen

Finance

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/28

...........................

United

States

3,000,000

2,711,598

h

Diamond

BC

BV

,

Senior

Note

,

144A,

4.625

%

,

10/01/29

.........

United

States

2,200,000

2,163,597

h

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

6,600,000

5,831,344

h

Gates

Global

LLC

/

Gates

Corp.

,

Senior

Note

,

144A,

6.25

%

,

1/15/26

United

States

7,900,000

7,830,954

h

GPD

Cos.,

Inc.

,

Senior

Secured

Note

,

144A,

10.125

%

,

4/01/26

...

United

States

5,000,000

4,579,821

f,h

Kobe

US

Midco

2,

Inc.

,

Senior

Note

,

144A,

PIK,

9.25

%

,

11/01/26

..

United

States

2,500,000

1,775,000

Nutrien

Ltd.

,

Senior

Note

,

4.9

%

,

3/27/28

....................

Canada

1,150,000

1,155,350

h

Syngenta

Finance

NV

,

Senior

Note

,

144A,

4.892

%

,

4/24/25

......

Switzerland

6,385,000

6,352,161

Westlake

Corp.

,

Senior

Bond

,

3.375

%

,

6/15/30

...............

United

States

2,500,000

2,225,601

h

Yara

International

ASA

,

Senior

Bond

,

144A,

3.148

%

,

6/04/30

.....

Brazil

1,400,000

1,191,287

54,114,317

Commercial

Services

&

Supplies

0.7%

h

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

6,000,000

5,366,828

h

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

11,000,000

9,845,109

h

Stericycle,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

1/15/29

...........

United

States

6,000,000

5,404,804

20,616,741

Communications

Equipment

0.2%

h

CommScope

Technologies

LLC

,

Senior

Bond

,

144A,

6

%

,

6/15/25

.

United

States

5,518,000

5,194,164

Construction

&

Engineering

0.1%

h

Arcosa,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

4/15/29

.............

United

States

2,600,000

2,371,597

Consumer

Finance

0.6%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond

,

3.4

%

,

10/29/33

.................................

Ireland

4,500,000

3,620,966

h

Park

Aerospace

Holdings

Ltd.

,

Senior

Note

,

144A,

5.5

%

,

2/15/24

.

Ireland

3,100,000

3,069,959

h

PRA

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

10/01/29

............

United

States

7,000,000

5,939,295

h

PROG

Holdings,

Inc.

,

Senior

Note

,

144A,

6

%

,

11/15/29

.........

United

States

5,800,000

5,225,597

17,855,817

Containers

&

Packaging

1.6%

h

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note,

144A,

5.25%,

8/15/27

......................

United

States

3,700,000

3,168,530

Senior

Secured

Note,

144A,

4.125%,

8/15/26

..............

United

States

5,000,000

4,717,869

h

OI

European

Group

BV

,

Senior

Note

,

144A,

4.75

%

,

2/15/30

......

United

States

5,000,000

4,596,250

h

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note

,

144A,

5.875

%

,

8/15/23

...........................................

United

States

2,979,000

2,979,431

h

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

10/15/28

..........

United

States

6,100,000

5,377,486

h

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

.............

United

States

4,600,000

4,145,773

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Containers

&

Packaging

(continued)

h

Sealed

Air

Corp.

,

Senior

Bond,

144A,

5.125%,

12/01/24

....................

United

States

3,000,000

$

2,981,290

Senior

Note,

144A,

6.125%,

2/01/28

.....................

United

States

9,000,000

9,144,144

h

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

5.5

%

,

8/15/26

...........................................

Netherlands

7,000,000

6,802,274

WRKCo,

Inc.

,

Senior

Bond

,

3

%

,

6/15/33

....................

United

States

3,600,000

2,945,519

46,858,566

Distributors

0.2%

h

Ritchie

Bros

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

3/15/31

......................

Canada

2,700,000

2,872,125

Senior

Secured

Note,

144A,

6.75%,

3/15/28

...............

Canada

1,500,000

1,554,375

4,426,500

Diversified

Consumer

Services

0.2%

Grand

Canyon

University

,

Secured

Note

,

5.125

%

,

10/01/28

......

United

States

7,500,000

6,785,475

Diversified

REITs

0.7%

h

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

7,700,000

5,899,622

h

Necessity

Retail

REIT,

Inc.

(The)

/

American

Finance

Operating

Partner

LP

,

Senior

Note

,

144A,

4.5

%

,

9/30/28

...............

United

States

7,600,000

5,643,722

Simon

Property

Group

LP

,

Senior

Bond,

4.25%,

11/30/46

..........................

United

States

3,000,000

2,446,625

Senior

Bond,

3.25%,

9/13/49

...........................

United

States

7,000,000

4,801,167

18,791,136

Diversified

Telecommunication

Services

1.1%

h

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

5,000,000

3,084,154

h

Altice

France

SA

,

Senior

Secured

Note,

144A,

5.5%,

1/15/28

................

France

2,500,000

1,970,621

Senior

Secured

Note,

144A,

5.5%,

10/15/29

...............

France

3,000,000

2,248,442

AT&T,

Inc.

,

Senior

Bond

,

3.65

%

,

9/15/59

....................

United

States

4,000,000

2,832,866

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

4.5

%

,

5/01/32

......................................

United

States

7,000,000

5,612,701

h

Iliad

Holding

SASU

,

Senior

Secured

Note,

144A,

6.5%,

10/15/26

...............

France

2,800,000

2,696,708

Senior

Secured

Note,

144A,

7%,

10/15/28

.................

France

5,400,000

5,114,535

h

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond

,

144A,

4.5

%

,

8/15/30

......................................

United

Kingdom

9,000,000

7,718,967

31,278,994

Electric

Utilities

1.8%

Duke

Energy

Corp.

,

Senior

Bond,

2.45%,

6/01/30

...........................

United

States

3,800,000

3,267,393

Senior

Bond,

3.75%,

9/01/46

...........................

United

States

1,600,000

1,259,574

Duke

Energy

Ohio,

Inc.

,

Senior

Bond

,

5.25

%

,

4/01/33

..........

United

States

1,000,000

1,038,945

h

Enel

Finance

International

NV

,

Senior

Note

,

144A,

2.65

%

,

9/10/24

Italy

7,800,000

7,532,910

Exelon

Corp.

,

Senior

Bond,

4.05%,

4/15/30

...........................

United

States

13,400,000

12,881,523

Senior

Bond,

4.45%,

4/15/46

...........................

United

States

1,400,000

1,223,670

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Note

,

6.051

%

,

3/01/25

United

States

3,300,000

3,356,511

Southern

Co.

(The)

,

Senior

Bond

,

4.4

%

,

7/01/46

..............

United

States

5,000,000

4,401,355

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

6.35

%

,

11/30/37

...

United

States

820,000

921,437

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

h

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

4.375%,

5/01/29

.....................

United

States

11,000,000

$

9,844,538

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

................

United

States

6,000,000

5,544,423

51,272,279

Electrical

Equipment

0.3%

Eaton

Corp.

,

Senior

Bond

,

4.15

%

,

3/15/33

...................

United

States

1,900,000

1,828,986

h

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

8,500,000

7,681,109

9,510,095

Electronic

Equipment,

Instruments

&

Components

0.4%

CDW

LLC

/

CDW

Finance

Corp.

,

Senior

Note

,

3.25

%

,

2/15/29

....

United

States

5,000,000

4,328,121

Flex

Ltd.

,

Senior

Bond

,

4.875

%

,

5/12/30

....................

United

States

7,100,000

6,921,283

11,249,404

Energy

Equipment

&

Services

0.1%

h

Schlumberger

Holdings

Corp.

,

Senior

Note

,

144A,

3.9

%

,

5/17/28

..

United

States

3,800,000

3,684,864

h

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

11

%

,

12/01/24

.

United

States

194,000

199,914

3,884,778

Entertainment

0.5%

Netflix,

Inc.

,

Senior

Bond,

4.375%,

11/15/26

.........................

United

States

11,800,000

11,727,086

Senior

Bond,

6.375%,

5/15/29

..........................

United

States

2,000,000

2,162,799

h

Warnermedia

Holdings,

Inc.

,

Senior

Note

,

144A,

4.054

%

,

3/15/29

.

United

States

2,100,000

1,944,839

15,834,724

Financial

Services

0.3%

a,i

Cia

Securitizadora

de

Creditos

Financeiros

Vert-Fintech

,

12

,

Senior

Secured

Note

,

FRN

,

14.9

%

,

(

BZDIOVRA

+

5.75

%

),

2/14/24

....

Brazil

12,733,484

BRL

1,421,613

h

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

6

%

,

8/15/26

..

United

States

7,000,000

5,982,830

7,404,443

Food

Products

0.7%

h

Bimbo

Bakeries

USA,

Inc.

,

Senior

Bond

,

144A,

4

%

,

5/17/51

.....

Mexico

2,000,000

1,626,672

h

Darling

Ingredients,

Inc.

,

Senior

Note

,

144A,

6

%

,

6/15/30

.......

United

States

8,000,000

7,921,517

General

Mills,

Inc.

,

Senior

Note

,

5.241

%

,

11/18/25

.............

United

States

1,550,000

1,551,280

h

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Note,

144A,

2.5%,

1/15/27

.......................

United

States

6,300,000

5,615,064

Senior

Note,

144A,

3.625%,

1/15/32

.....................

United

States

3,500,000

2,941,680

19,656,213

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

,

Senior

Bond

,

3.35

%

,

6/01/50

....

United

States

2,800,000

2,006,044

Ground

Transportation

0.3%

CSX

Corp.

,

Senior

Bond

,

4.1

%

,

3/15/44

....................

United

States

1,600,000

1,414,700

h

First

Student

Bidco,

Inc.

/

First

Transit

Parent,

Inc.

,

Senior

Secured

Note

,

144A,

4

%

,

7/31/29

..............................

United

States

9,500,000

8,243,886

9,658,586

Health

Care

Equipment

&

Supplies

0.5%

h

Garden

Spinco

Corp.

,

Senior

Note

,

144A,

8.625

%

,

7/20/30

......

United

States

4,700,000

5,066,296

h

GE

HealthCare

Technologies,

Inc.

,

Senior

Note

,

144A,

5.6

%

,

11/15/25

..........................................

United

States

4,700,000

4,762,444

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Equipment

&

Supplies

(continued)

h

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

......

United

States

5,300,000

$

4,589,525

14,418,265

Health

Care

Providers

&

Services

2.0%

Centene

Corp.

,

Senior

Note,

4.25%,

12/15/27

..........................

United

States

3,000,000

2,869,560

Senior

Note,

2.45%,

7/15/28

...........................

United

States

2,300,000

2,001,144

Senior

Note,

4.625%,

12/15/29

.........................

United

States

2,300,000

2,169,820

Senior

Note,

3.375%,

2/15/30

..........................

United

States

1,400,000

1,237,404

Senior

Note,

2.625%,

8/01/31

..........................

United

States

5,300,000

4,345,523

h

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

1,000,000

740,904

Senior

Secured

Note,

144A,

5.625%,

3/15/27

..............

United

States

3,700,000

3,419,081

Senior

Secured

Note,

144A,

6%,

1/15/29

..................

United

States

2,300,000

2,040,825

CVS

Health

Corp.

,

Senior

Bond,

1.75%,

8/21/30

...........................

United

States

4,000,000

3,268,215

Senior

Bond,

2.7%,

8/21/40

............................

United

States

6,300,000

4,519,664

h

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

9,000,000

7,847,721

Elevance

Health,

Inc.

,

Senior

Bond

,

3.7

%

,

9/15/49

............

United

States

1,400,000

1,115,732

HCA,

Inc.

,

Senior

Bond

,

3.5

%

,

9/01/30

.....................

United

States

7,200,000

6,484,386

h

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

5,500,000

3,483,880

Quest

Diagnostics,

Inc.

,

Senior

Bond

,

2.8

%

,

6/30/31

...........

United

States

2,100,000

1,840,792

h

Tenet

Healthcare

Corp.

,

Senior

Secured

Note

,

144A,

6.125

%

,

6/15/30

...........................................

United

States

10,000,000

9,900,117

57,284,768

Health

Care

REITs

0.1%

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

3.5

%

,

3/15/31

......................................

United

States

4,000,000

2,738,830

Hotel

&

Resort

REITs

0.1%

h

XHR

LP

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/01/29

.........

United

States

3,500,000

3,040,835

Hotels,

Restaurants

&

Leisure

1.2%

h

Allwyn

Entertainment

Financing

UK

plc

,

Senior

Secured

Note

,

144A,

7.875

%

,

4/30/29

.....................................

Czech

Republic

4,000,000

4,050,400

h

Boyd

Gaming

Corp.

,

Senior

Bond

,

144A,

4.75

%

,

6/15/31

........

United

States

3,000,000

2,749,459

Las

Vegas

Sands

Corp.

,

Senior

Bond

,

3.9

%

,

8/08/29

...........

United

States

8,300,000

7,581,325

h

Motion

Bondco

DAC

,

Senior

Note

,

144A,

6.625

%

,

11/15/27

......

United

Kingdom

2,000,000

1,812,631

h

Papa

John's

International,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/15/29

United

States

7,500,000

6,487,164

h

Premier

Entertainment

Sub

LLC

/

Premier

Entertainment

Finance

Corp.

,

Senior

Note

,

144A,

5.625

%

,

9/01/29

................

United

States

1,300,000

944,050

h

Station

Casinos

LLC

,

Senior

Note

,

144A,

4.5

%

,

2/15/28

........

United

States

3,100,000

2,853,922

h

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

9,700,000

7,599,950

34,078,901

Household

Durables

0.1%

M/I

Homes,

Inc.

,

Senior

Note

,

3.95

%

,

2/15/30

................

United

States

2,900,000

2,570,067

Household

Products

0.3%

h

Central

Garden

&

Pet

Co.

,

Senior

Bond

,

144A,

4.125

%

,

4/30/31

..

United

States

5,000,000

4,217,169

h

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

4,500,000

3,695,107

7,912,276

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Independent

Power

and

Renewable

Electricity

Producers

1.6%

h

Atlantica

Sustainable

Infrastructure

plc

,

Senior

Note

,

144A,

4.125

%

,

6/15/28

...........................................

Spain

5,000,000

$

4,567,000

h

Calpine

Corp.

,

Senior

Bond,

144A,

5%,

2/01/31

........................

United

States

4,300,000

3,627,449

Senior

Note,

144A,

4.625%,

2/01/29

.....................

United

States

4,000,000

3,480,348

h

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75

%

,

2/15/31

United

States

7,800,000

6,683,729

h

Colbun

SA

,

Senior

Bond,

144A,

3.95%,

10/11/27

.....................

Chile

7,500,000

7,081,151

Senior

Bond,

144A,

3.15%,

3/06/30

......................

Chile

2,900,000

2,552,606

h

Talen

Energy

Supply

LLC

,

j

Senior

Secured

Note,

144A,

7.25%,

5/15/27

...............

United

States

10,800,000

11,286,162

Senior

Secured

Note,

144A,

8.625%,

6/01/30

..............

United

States

7,200,000

7,200,000

46,478,445

Insurance

1.0%

h

AIA

Group

Ltd.

,

Senior

Bond

,

144A,

4.95

%

,

4/04/33

...........

Hong

Kong

3,100,000

3,143,060

h

Alliant

Holdings

Intermediate

LLC

/

Alliant

Holdings

Co-Issuer

,

Senior

Secured

Note

,

144A,

6.75

%

,

4/15/28

.....................

United

States

6,000,000

5,998,930

Arch

Capital

Group

Ltd.

,

Senior

Bond

,

3.635

%

,

6/30/50

.........

United

States

10,000,000

7,598,652

h

Metropolitan

Life

Global

Funding

I

,

Secured

Note,

144A,

5.05%,

1/06/28

.....................

United

States

9,600,000

9,768,761

Secured

Note,

144A,

4.3%,

8/25/29

......................

United

States

3,000,000

2,927,098

29,436,501

Interactive

Media

&

Services

0.3%

h

Tencent

Holdings

Ltd.

,

Senior

Bond

,

144A,

2.39

%

,

6/03/30

......

China

9,100,000

7,705,608

IT

Services

1.0%

h

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

9,200,000

7,687,635

h

Gartner,

Inc.

,

Senior

Note,

144A,

4.5%,

7/01/28

.......................

United

States

7,000,000

6,590,387

Senior

Note,

144A,

3.625%,

6/15/29

.....................

United

States

3,800,000

3,368,674

h

Presidio

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

2/01/27

United

States

11,000,000

10,431,794

28,078,490

Machinery

0.3%

h

Chart

Industries,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

1/01/30

.

United

States

4,500,000

4,640,625

Parker-Hannifin

Corp.

,

Senior

Note

,

4.25

%

,

9/15/27

...........

United

States

3,700,000

3,658,483

8,299,108

Media

1.6%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

,

Senior

Secured

Bond

,

2.8

%

,

4/01/31

.......

United

States

15,900,000

12,839,529

h

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note,

144A,

7.75%,

4/15/28

......................

United

States

5,200,000

3,951,532

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

2,400,000

2,171,154

h

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

3.375

%

,

2/15/31

.......

United

States

5,000,000

3,440,527

h

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

....................

United

States

6,000,000

5,272,018

h

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.75

%

,

12/01/28

...

United

States

9,000,000

6,415,041

Fox

Corp.

,

Senior

Bond

,

3.5

%

,

4/08/30

.....................

United

States

1,400,000

1,272,108

h

Sinclair

Television

Group,

Inc.

,

Senior

Secured

Note

,

144A,

4.125

%

,

12/01/30

..........................................

United

States

2,500,000

1,991,050

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

(continued)

h

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4

%

,

7/15/28

.........

United

States

9,000,000

$

7,608,017

44,960,976

Metals

&

Mining

1.0%

h

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

9,200,000

7,926,858

h

Indonesia

Asahan

Aluminium

PT

/

Mineral

Industri

Indonesia

Persero

PT

,

Senior

Bond

,

144A,

5.45

%

,

5/15/30

...................

Indonesia

6,900,000

6,889,305

h

Novelis

Corp.

,

Senior

Note

,

144A,

3.25

%

,

11/15/26

............

United

States

1,700,000

1,558,150

h

POSCO

,

Senior

Note

,

144A,

5.625

%

,

1/17/26

................

South

Korea

7,950,000

8,071,395

h

SunCoke

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

6/30/29

United

States

6,100,000

5,316,699

29,762,407

Mortgage

Real

Estate

Investment

Trusts

(REITs)

0.3%

h

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp.

,

Senior

Note

,

144A,

4.75

%

,

6/15/29

.................

United

States

10,000,000

7,922,650

Multi-Utilities

0.4%

Dominion

Energy,

Inc.

,

A,

Senior

Note,

4.35%,

8/15/32

.........................

United

States

3,200,000

3,084,685

C,

Senior

Note,

3.375%,

4/01/30

........................

United

States

7,800,000

7,122,292

10,206,977

Oil,

Gas

&

Consumable

Fuels

4.1%

h

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

8,700,000

7,416,631

h

Antero

Resources

Corp.

,

Senior

Note

,

144A,

7.625

%

,

2/01/29

....

United

States

1,269,000

1,300,395

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

2.95

%

,

7/15/30

..

Canada

3,700,000

3,253,983

h

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note

,

144A,

6

%

,

2/01/29

....................

United

States

7,000,000

6,604,290

h

CrownRock

LP

/

CrownRock

Finance,

Inc.

,

Senior

Note

,

144A,

5

%

,

5/01/29

...........................................

United

States

6,500,000

6,147,253

h

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

4.375

%

,

6/15/31

.......

United

States

4,600,000

4,006,277

h

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/30/28

.................................

United

States

8,700,000

8,667,609

Energy

Transfer

LP

,

Senior

Bond

,

3.75

%

,

5/15/30

.............

United

States

7,300,000

6,715,164

EnLink

Midstream

LLC

,

Senior

Bond,

5.375%,

6/01/29

..........................

United

States

10,900,000

10,535,655

h

Senior

Note,

144A,

5.625%,

1/15/28

.....................

United

States

1,700,000

1,676,055

h

EQM

Midstream

Partners

LP

,

Senior

Note

,

144A,

7.5

%

,

6/01/27

..

United

States

800,000

797,980

h

Galaxy

Pipeline

Assets

Bidco

Ltd.

,

Senior

Secured

Bond

,

144A,

2.16

%

,

3/31/34

.....................................

United

Arab

Emirates

2,661,300

2,312,207

h

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond,

144A,

6%,

2/01/31

........................

United

States

6,500,000

6,014,924

Senior

Bond,

144A,

6.25%,

4/15/32

......................

United

States

1,700,000

1,591,004

Senior

Note,

144A,

5.75%,

2/01/29

......................

United

States

2,000,000

1,870,326

h

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875

%

,

6/15/30

........

United

States

5,000,000

4,795,200

MPLX

LP

,

Senior

Note

,

2.65

%

,

8/15/30

.....................

United

States

15,000,000

12,821,819

Sabine

Pass

Liquefaction

LLC

,

Senior

Secured

Note

,

4.5

%

,

5/15/30

United

States

10,000,000

9,688,565

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note

,

4.5

%

,

5/15/29

..

United

States

12,000,000

10,824,716

h

Var

Energi

ASA

,

Senior

Bond

,

144A,

8

%

,

11/15/32

............

Norway

9,000,000

9,765,450

h

Venture

Global

Calcasieu

Pass

LLC

,

Senior

Secured

Bond

,

144A,

4.125

%

,

8/15/31

.....................................

United

States

2,600,000

2,306,298

119,111,801

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Paper

&

Forest

Products

0.3%

Suzano

Austria

GmbH

,

Senior

Bond,

3.75%,

1/15/31

...........................

Brazil

7,100,000

$

6,035,262

DM3N,

Senior

Bond,

3.125%,

1/15/32

....................

Brazil

4,400,000

3,501,630

9,536,892

Passenger

Airlines

0.5%

h

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.75

%

,

4/20/29

............................

United

States

5,900,000

5,614,293

h

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.5

%

,

10/20/25

.....................................

United

States

8,668,000

8,503,648

h

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.375

%

,

4/15/26

.

United

States

1,700,000

1,625,581

15,743,522

Personal

Care

Products

1.1%

h

BellRing

Brands,

Inc.

,

Senior

Note

,

144A,

7

%

,

3/15/30

.........

United

States

6,200,000

6,357,345

h

Coty,

Inc./HFC

Prestige

Products,

Inc./HFC

Prestige

International

US

LLC

,

Senior

Secured

Note

,

144A,

4.75

%

,

1/15/29

............

United

States

8,000,000

7,518,920

h

Kenvue,

Inc.

,

Senior

Note

,

144A,

5.05

%

,

3/22/28

..............

United

States

8,600,000

8,910,373

h

Oriflame

Investment

Holding

plc

,

Senior

Secured

Note

,

144A,

5.125

%

,

5/04/26

.....................................

Switzerland

7,600,000

4,544,800

h

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

3,700,000

3,139,302

30,470,740

Pharmaceuticals

1.1%

h

Bayer

US

Finance

II

LLC

,

Senior

Bond

,

144A,

4.375

%

,

12/15/28

..

Germany

11,700,000

11,356,500

h,j

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco,

Inc.

,

Secured

Note

,

144A,

9.5

%

,

7/31/27

.................................

United

States

6,580,000

378,350

h

Organon

&

Co.

/

Organon

Foreign

Debt

Co-Issuer

BV

,

Senior

Secured

Note

,

144A,

4.125

%

,

4/30/28

....................

United

States

7,000,000

6,448,046

Royalty

Pharma

plc

,

Senior

Bond

,

3.3

%

,

9/02/40

..............

United

States

5,300,000

3,871,418

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

5.125

%

,

5/09/29

.....................................

Israel

9,100,000

8,452,314

30,506,628

Real

Estate

Management

&

Development

0.2%

h

China

Overseas

Finance

Cayman

VI

Ltd.

,

Senior

Bond

,

Reg

S,

5.95

%

,

5/08/24

.....................................

China

4,000,000

4,027,536

h

Country

Garden

Holdings

Co.

Ltd.

,

Senior

Secured

Note

,

Reg

S,

7.25

%

,

4/08/26

.....................................

China

3,450,000

1,794,455

h

Vivion

Investments

SARL

,

Senior

Note

,

Reg

S,

3

%

,

8/08/24

.....

Luxembourg

1,800,000

EUR

1,453,255

7,275,246

Software

0.2%

h

McAfee

Corp.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

............

United

States

6,000,000

4,986,386

Specialty

Retail

0.3%

Advance

Auto

Parts,

Inc.

,

Senior

Note,

5.9%,

3/09/26

............................

United

States

700,000

718,944

Senior

Note,

5.95%,

3/09/28

...........................

United

States

600,000

619,681

AutoNation,

Inc.

,

Senior

Bond

,

4.75

%

,

6/01/30

...............

United

States

1,900,000

1,787,335

h

Gap,

Inc.

(The)

,

Senior

Note

,

144A,

3.625

%

,

10/01/29

..........

United

States

2,500,000

1,772,784

h

Michaels

Cos.,

Inc.

(The)

,

Senior

Secured

Note

,

144A,

5.25

%

,

5/01/28

...........................................

United

States

4,700,000

3,876,560

8,775,304

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.1%

Teledyne

FLIR

LLC

,

Senior

Note

,

2.5

%

,

8/01/30

..............

United

States

2,100,000

$

1,770,428

Textiles,

Apparel

&

Luxury

Goods

0.1%

h

Hanesbrands,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/31

............

United

States

4,100,000

4,201,655

Tobacco

0.8%

Altria

Group,

Inc.

,

Senior

Bond

,

3.4

%

,

5/06/30

................

United

States

12,400,000

11,064,991

h

Imperial

Brands

Finance

plc

,

Senior

Bond,

144A,

4.25%,

7/21/25

......................

United

Kingdom

2,800,000

2,717,956

Senior

Bond,

144A,

3.875%,

7/26/29

.....................

United

Kingdom

2,200,000

1,978,740

Philip

Morris

International,

Inc.

,

Senior

Bond

,

5.375

%

,

2/15/33

....

United

States

7,200,000

7,348,439

23,110,126

Trading

Companies

&

Distributors

0.6%

h

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

10,200,000

8,849,877

h

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

5.5

%

,

7/15/27

..........

United

States

1,800,000

1,721,924

h

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.25

%

,

6/15/28

....

United

States

7,000,000

7,194,803

17,766,604

Transportation

Infrastructure

0.0%

†

h

Rutas

2

and

7

Finance

Ltd.

,

Senior

Secured

Bond

,

144A,

Zero

Cpn.,

9/30/36

...........................................

United

States

1,080,000

702,891

Wireless

Telecommunication

Services

0.6%

f,h

Digicel

Group

Holdings

Ltd.

,

Senior

Note

,

144A,

PIK,

8

%

,

4/01/25

.

Bermuda

146,354

58,176

T-Mobile

USA,

Inc.

,

Senior

Bond,

3.3%,

2/15/51

............................

United

States

4,800,000

3,428,960

Senior

Note,

3.875%,

4/15/30

..........................

United

States

13,400,000

12,624,312

16,111,448

Total

Corporate

Bonds

(Cost

$1,452,501,995)

...................................

1,302,553,301

k

Senior

Floating

Rate

Interests

0.0%

Software

0.0%

a,c,j

WorkCapital

BSD

SARL

,

Term

Loan

,

6.5

%

,

1/01/38

............

Luxembourg

20,000,000

—

Total

Senior

Floating

Rate

Interests

(Cost

$19,530,078)

..........................

—

l

Marketplace

Loans

1.9%

a

Financial

Services

1.9%

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$60,122,469)

....................................

54,177,465

Foreign

Government

and

Agency

Securities

2.2%

h

African

Export-Import

Bank

(The)

,

Senior

Bond

,

144A,

3.994

%

,

9/21/29

...........................................

Supranational

m

13,600,000

11,558,504

h

Banque

Ouest

Africaine

de

Developpement

,

Senior

Bond

,

144A,

5

%

,

7/27/27

...........................................

Supranational

m

11,500,000

10,656,245

Colombia

Government

Bond

,

Senior

Bond,

3.875%,

4/25/27

..........................

Colombia

14,000,000

12,656,681

Senior

Bond,

9.85%,

6/28/27

...........................

Colombia

55,750,000,000

COP

11,125,450

h

Comision

Federal

de

Electricidad

,

Senior

Bond

,

144A,

3.348

%

,

2/09/31

...........................................

Mexico

9,500,000

7,578,815

h

Korea

Electric

Power

Corp.

,

Senior

Note

,

144A,

5.375

%

,

4/06/26

.

South

Korea

3,400,000

3,445,475

h

Petroleos

Mexicanos

,

Senior

Bond

,

144A,

10

%

,

2/07/33

........

Mexico

3,200,000

2,974,765

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

h

Romania

Government

Bond

,

Senior

Bond

,

144A,

6.125

%

,

1/22/44

.

Romania

4,700,000

$

4,536,746

Total

Foreign

Government

and

Agency

Securities

(Cost

$82,820,431)

..............

64,532,681

U.S.

Government

and

Agency

Securities

21.1%

FFCB

,

2.1

%,

2/25/36

...................................

United

States

7,700,000

5,878,559

U.S.

Treasury

Bonds

,

6.25%,

8/15/23

.....................................

United

States

4,000,000

4,014,434

6.875%,

8/15/25

.....................................

United

States

1,000,000

1,066,055

3.75%,

11/15/43

.....................................

United

States

2,200,000

2,185,047

3%,

8/15/48

........................................

United

States

7,500,000

6,560,449

3.375%,

11/15/48

....................................

United

States

5,800,000

5,433,648

3%,

2/15/49

........................................

United

States

17,300,000

15,171,289

2.875%,

5/15/49

.....................................

United

States

17,000,000

14,576,172

U.S.

Treasury

Notes

,

2.625%,

12/31/23

....................................

United

States

8,800,000

8,668,281

2.5%,

4/30/24

......................................

United

States

36,000,000

35,183,265

2.125%,

9/30/24

.....................................

United

States

38,000,000

36,825,859

4.25%,

9/30/24

.....................................

United

States

31,000,000

30,925,527

1.5%,

2/15/25

......................................

United

States

66,800,000

63,726,157

3.5%,

9/15/25

......................................

United

States

32,500,000

32,210,547

4.25%,

10/15/25

.....................................

United

States

62,500,000

63,028,564

2.875%,

11/30/25

....................................

United

States

33,000,000

32,218,828

n

Index

Linked,

0.625%,

1/15/26

..........................

United

States

27,000,000

33,331,296

2.375%,

4/30/26

.....................................

United

States

14,000,000

13,470,352

2%,

11/15/26

.......................................

United

States

39,500,000

37,352,959

3.125%,

8/31/27

.....................................

United

States

4,500,000

4,421,865

4.125%,

9/30/27

.....................................

United

States

45,000,000

46,026,562

3.5%,

1/31/28

......................................

United

States

3,400,000

3,396,547

2.75%,

2/15/28

.....................................

United

States

2,500,000

2,415,039

1.25%,

9/30/28

.....................................

United

States

1,700,000

1,509,945

1.5%,

11/30/28

......................................

United

States

700,000

628,605

2.375%,

3/31/29

.....................................

United

States

17,700,000

16,618,641

3.875%,

11/30/29

....................................

United

States

2,500,000

2,554,688

3.5%,

1/31/30

......................................

United

States

24,100,000

24,116,945

2.75%,

8/15/32

.....................................

United

States

18,300,000

17,323,523

4.125%,

11/15/32

....................................

United

States

28,500,000

30,085,313

3.5%,

2/15/33

......................................

United

States

14,000,000

14,084,219

Total

U.S.

Government

and

Agency

Securities

(Cost

$597,891,548)

................

605,009,180

Asset-Backed

Securities

4.9%

Commercial

Services

&

Supplies

0.1%

h,o

Galaxy

XXVIII

CLO

Ltd.

,

2018-28A

,

C

,

144A,

FRN

,

7.21

%

,

(

3-month

USD

LIBOR

+

1.95

%

),

7/15/31

.

.........................

United

States

3,070,000

2,913,838

Financial

Services

4.8%

h,o

BlueMountain

CLO

Ltd.

,

2018-1A

,

D

,

144A,

FRN

,

7.852

%

,

(

3-month

USD

LIBOR

+

3.05

%

),

7/30/30

.

.........................

United

States

5,000,000

4,224,135

h,o

BlueMountain

Fuji

EUR

CLO

V

DAC

,

5A

,

B

,

144A,

FRN

,

4.727

%

,

(

3-month

EURIBOR

+

1.55

%

),

1/15/33

.

...................

Ireland

6,200,000

EUR

6,462,569

h,o

Burnham

Park

CLO

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

6.75

%

,

(

3-month

USD

LIBOR

+

1.5

%

),

10/20/29

.

.........................

United

States

3,500,000

3,401,475

h,o

Carlyle

Direct

Lending

CLO

LLC

,

2015-1A

,

A2R

,

144A,

FRN

,

7.46

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/15/31

.

..................

United

States

12,000,000

11,288,172

h,o

Carlyle

Global

Market

Strategies

CLO

Ltd.

,

2013-3A,

BR,

144A,

FRN,

6.96%,

(3-month

USD

LIBOR

+

1.7%),

10/15/30

..........................................

United

States

300,000

282,455

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Financial

Services

(continued)

h,o

Carlyle

Global

Market

Strategies

CLO

Ltd.,

(continued)

2014-2RA,

B,

144A,

FRN,

6.689%,

(3-month

USD

LIBOR

+

1.825%),

5/15/31

....................................

United

States

580,000

$

551,227

2014-4RA,

C,

144A,

FRN,

8.16%,

(3-month

USD

LIBOR

+

2.9%),

7/15/30

...........................................

United

States

3,000,000

2,678,841

h,p

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2018-29,

PT,

144A,

FRN,

19.087%,

12/15/43

...............

United

States

60,010

56,144

2019-26,

PT,

144A,

FRN,

18.556%,

8/15/44

................

United

States

579,721

548,630

2019-31,

PT,

144A,

FRN,

16.995%,

9/15/44

................

United

States

474,717

443,094

2019-37,

PT,

144A,

FRN,

18.427%,

10/17/44

...............

United

States

546,556

521,023

2019-42,

PT,

144A,

FRN,

18.313%,

11/15/44

...............

United

States

544,473

512,259

2019-51,

PT,

144A,

FRN,

16.752%,

1/15/45

................

United

States

577,746

545,249

2019-52,

PT,

144A,

FRN,

15.723%,

1/15/45

................

United

States

611,054

580,262

2019-S1,

PT,

144A,

FRN,

12.091%,

4/15/44

................

United

States

165,999

159,983

2019-S2,

PT,

144A,

FRN,

12.22%,

5/16/44

.................

United

States

152,575

140,012

2019-S3,

PT,

144A,

FRN,

11.788%,

6/15/44

................

United

States

268,093

247,786

2019-S4,

PT,

144A,

FRN,

11.746%,

8/15/44

................

United

States

348,634

336,180

2019-S5,

PT,

144A,

FRN,

13.333%,

9/15/44

................

United

States

343,673

323,416

2019-S6,

PT,

144A,

FRN,

10.797%,

10/17/44

...............

United

States

393,042

366,151

2019-S7,

PT,

144A,

FRN,

11.696%,

12/15/44

...............

United

States

263,921

245,689

2019-S8,

PT,

144A,

FRN,

10.185%,

1/15/45

................

United

States

338,272

314,057

2020-2,

PT,

144A,

FRN,

14.271%,

3/15/45

.................

United

States

594,608

561,995

2020-7,

PT,

144A,

FRN,

15.764%,

4/17/45

.................

United

States

331,304

308,110

h,o

Dryden

75

CLO

Ltd.

,

2019-75A

,

AR2

,

144A,

FRN

,

6.3

%

,

(

3-month

USD

LIBOR

+

1.04

%

),

4/15/34

.

.........................

United

States

30,321,000

29,741,110

h

Home

Partners

of

America

Trust

,

2021-2,

B,

144A,

2.302%,

12/17/26

......................

United

States

11,964,243

10,698,735

2021-3,

B,

144A,

2.649%,

1/17/41

.......................

United

States

4,425,770

3,874,083

h,o

LCM

XVII

LP

,

17A

,

BRR

,

144A,

FRN

,

6.86

%

,

(

3-month

USD

LIBOR

+

1.6

%

),

10/15/31

.

...................................

United

States

4,590,000

4,441,921

h,o

LCM

XVIII

LP

,

18A

,

DR

,

144A,

FRN

,

8.05

%

,

(

3-month

USD

LIBOR

+

2.8

%

),

4/20/31

.

.....................................

United

States

6,860,000

5,763,721

h,o

Madison

Park

Euro

Funding

VIII

DAC

,

8A

,

BRN

,

144A,

FRN

,

4.877

%

,

(

3-month

EURIBOR

+

1.7

%

),

4/15/32

.

..............

Ireland

4,100,000

EUR

4,346,523

h,o

Neuberger

Berman

CLO

XXII

Ltd.

,

2016-22A

,

CR

,

144A,

FRN

,

7.46

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

10/17/30

.

............

United

States

2,129,630

2,055,596

h,o

Northwoods

Capital

Ltd.

,

2018-11BA

,

A1

,

144A,

FRN

,

6.365

%

,

(

3-month

USD

LIBOR

+

1.1

%

),

4/19/31

.

...................

United

States

7,565,193

7,480,476

h,o

Octagon

Investment

Partners

28

Ltd.

,

2016-1A

,

BR

,

144A,

FRN

,

7.073

%

,

(

3-month

USD

LIBOR

+

1.8

%

),

10/24/30

.

...........

United

States

3,914,730

3,830,944

h,o

Octagon

Investment

Partners

36

Ltd.

,

2018-1A

,

A1

,

144A,

FRN

,

6.23

%

,

(

3-month

USD

LIBOR

+

0.97

%

),

4/15/31

.

............

United

States

7,475,000

7,409,594

h,p

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

15.626%,

3/15/26

................

United

States

314,214

306,670

2020-PT2,

A,

144A,

FRN,

16.315%,

4/15/26

................

United

States

379,063

362,600

2020-PT3,

A,

144A,

FRN,

9.626%,

5/15/26

.................

United

States

122,813

115,228

h,o

Strata

CLO

I

Ltd.

,

2018-1A

,

B

,

144A,

FRN

,

7.46

%

,

(

3-month

USD

LIBOR

+

2.2

%

),

1/15/31

.

..............................

United

States

14,100,000

14,023,508

h,p

Upgrade

Master

Pass-Thru

Trust

,

2019-PT1,

A,

144A,

FRN,

12.609%,

6/15/25

................

United

States

124,521

112,546

2019-PT2,

A,

144A,

FRN,

15.864%,

2/15/26

................

United

States

294,210

288,390

h,o

Voya

CLO

Ltd.

,

2013-2A,

A2AR,

144A,

FRN,

6.729%,

(3-month

SOFR

+

1.662%),

4/25/31

...........................................

United

States

2,200,000

2,127,766

2013-2A,

BR,

144A,

FRN,

7.179%,

(3-month

SOFR

+

2.112%),

4/25/31

...........................................

United

States

5,770,000

5,442,974

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Asset-Backed

Securities

(continued)

Financial

Services

(continued)

h,o

Voya

CLO

Ltd.,

(continued)

2016-1A,

BR,

144A,

FRN,

7.11%,

(3-month

SOFR

+

2.062%),

1/20/31

...........................................

United

States

590,000

$

554,673

138,075,972

a

a

a

a

a

a

Passenger

Airlines

0.0%

†

United

Airlines

Pass-Through

Trust

,

2020-1

,

B

,

4.875

%

,

7/15/27

.

..

United

States

822,000

797,698

Total

Asset-Backed

Securities

(Cost

$148,992,854)

..............................

141,787,508

Commercial

Mortgage-Backed

Securities

0.6%

Financial

Services

0.6%

h,o

BX

Commercial

Mortgage

Trust

,

2021-VOLT,

A,

144A,

FRN,

5.648%,

(1-month

USD

LIBOR

+

0.7%),

9/15/36

......................................

United

States

2,480,000

2,396,445

2021-VOLT,

B,

144A,

FRN,

5.898%,

(1-month

USD

LIBOR

+

0.95%),

9/15/36

.....................................

United

States

3,890,000

3,721,489

2022-LP2,

A,

144A,

FRN,

5.902%,

(1-month

SOFR

+

1.013%),

2/15/39

...........................................

United

States

8,726,866

8,472,318

p

Commercial

Mortgage

Trust

,

2006-GG7

,

AJ

,

FRN

,

6.214

%

,

7/10/38

United

States

2,336,688

1,522,485

16,112,737

a

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$17,311,116)

................

16,112,737

Mortgage-Backed

Securities

6.4%

q

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.0%

†

FHLMC,

4.348%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

1/01/33

..

United

States

8,682

8,463

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

5.5%

FHLMC

Gold

Pool,

20

Year,

5%,

5/01/27

-

5/01/30

.............

United

States

113,640

115,017

FHLMC

Gold

Pool,

30

Year,

4.5%,

10/01/40

.................

United

States

42,965

43,191

FHLMC

Gold

Pool,

30

Year,

5%,

3/01/34

-

2/01/38

.............

United

States

254,345

257,820

FHLMC

Gold

Pool,

30

Year,

5.5%,

6/01/33

-

6/01/36

...........

United

States

348,603

357,526

FHLMC

Gold

Pool,

30

Year,

6%,

6/01/33

-

6/01/37

.............

United

States

160,097

164,303

FHLMC

Gold

Pool,

30

Year,

6.5%,

12/01/25

-

6/01/36

..........

United

States

33,762

35,082

FHLMC

Gold

Pool,

30

Year,

7%,

8/01/32

....................

United

States

2,234

2,281

FHLMC

Gold

Pool,

30

Year,

7.5%,

1/01/26

-

1/01/31

...........

United

States

1,971

2,077

FHLMC

Gold

Pool,

30

Year,

8%,

11/01/25

...................

United

States

22

21

FHLMC

Gold

Pool,

30

Year,

9%,

12/01/24

...................

United

States

12

13

FHLMC

Pool,

30

Year,

2%,

3/01/52

........................

United

States

36,329,818

30,263,992

FHLMC

Pool,

30

Year,

4%,

6/01/52

........................

United

States

38,947,614

37,272,411

FHLMC

Pool,

30

Year,

4.5%,

8/01/52

.......................

United

States

59,873,287

58,572,189

FHLMC

Pool,

30

Year,

5.5%,

11/01/52

......................

United

States

28,915,772

29,169,148

156,255,071

q

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA,

4.279%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

..

United

States

47,305

46,874

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

0.9%

FNMA,

15

Year,

2.5%,

7/01/27

...........................

United

States

65,350

63,003

FNMA,

20

Year,

4.5%,

3/01/28

...........................

United

States

19,779

19,718

FNMA,

20

Year,

5%,

9/01/23

-

6/01/31

......................

United

States

146,715

147,397

FNMA,

30

Year,

3%,

9/01/48

-

9/01/51

......................

United

States

17,163,728

15,570,268

FNMA,

30

Year,

4%,

2/01/49

.............................

United

States

8,744,494

8,525,348

FNMA,

30

Year,

4.5%,

2/01/41

...........................

United

States

131,652

132,205

FNMA,

30

Year,

5%,

10/01/35

............................

United

States

297,815

303,467

FNMA,

30

Year,

5.5%,

9/01/33

-

12/01/35

...................

United

States

463,335

474,978

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

(continued)

FNMA,

30

Year,

6%,

6/01/34

-

5/01/38

......................

United

States

818,315

$

838,572

FNMA,

30

Year,

6.5%,

3/01/28

-

10/01/37

...................

United

States

129,184

135,846

FNMA,

30

Year,

7.5%,

10/01/29

...........................

United

States

2,380

2,496

FNMA,

30

Year,

8%,

1/01/25

-

5/01/26

......................

United

States

573

579

26,213,877

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

0.0%

†

GNMA

I,

30

Year,

8%,

2/15/25

............................

United

States

5

5

GNMA

I,

Single-family,

30

Year,

5%,

6/15/34

-

7/15/34

..........

United

States

43,954

45,328

GNMA

I,

Single-family,

30

Year,

5.5%,

2/15/33

-

6/15/36

........

United

States

173,213

177,341

GNMA

I,

Single-family,

30

Year,

6%,

8/15/36

.................

United

States

10,500

10,970

GNMA

I,

Single-family,

30

Year,

6.5%,

2/15/29

-

3/15/32

........

United

States

2,943

3,021

GNMA

I,

Single-family,

30

Year,

7%,

11/15/27

-

5/15/28

.........

United

States

3,255

3,270

GNMA

I,

Single-family,

30

Year,

7.5%,

9/15/23

-

5/15/27

........

United

States

250

250

GNMA

I,

Single-family,

30

Year,

8%,

7/15/26

-

9/15/27

..........

United

States

1,487

1,489

GNMA

I,

Single-family,

30

Year,

8.5%,

8/15/24

................

United

States

13

13

GNMA

I,

Single-family,

30

Year,

9%,

1/15/25

.................

United

States

11

11

GNMA

I,

Single-family,

30

Year,

9.5%,

6/15/25

................

United

States

151

151

GNMA

II,

Single-family,

30

Year,

5%,

9/20/33

-

11/20/33

.........

United

States

82,541

84,730

GNMA

II,

Single-family,

30

Year,

5.5%,

6/20/34

...............

United

States

42,894

44,481

GNMA

II,

Single-family,

30

Year,

6%,

11/20/34

................

United

States

45,784

48,308

GNMA

II,

Single-family,

30

Year,

6.5%,

7/20/28

-

12/20/31

.......

United

States

26,861

27,787

GNMA

II,

Single-family,

30

Year,

7.5%,

4/20/32

...............

United

States

7,635

7,886

455,041

Total

Mortgage-Backed

Securities

(Cost

$185,664,893)

...........................

182,979,326

Residential

Mortgage-Backed

Securities

3.7%

Financial

Services

3.7%

h

BRAVO

Residential

Funding

Trust

,

2019-1,

A1C,

144A,

3.5%,

3/25/58

.......................

United

States

1,082,480

1,059,613

p

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

...................

United

States

3,593,693

3,419,961

h,p

CIM

Trust

,

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

..................

United

States

915,094

878,277

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

..................

United

States

1,807,141

1,721,328

h,p

COLT

Mortgage

Loan

Trust

,

2022-4

,

A1

,

144A,

FRN

,

4.301

%

,

3/25/67

...........................................

United

States

3,725,973

3,633,252

o

FHLMC

STACR

Debt

Notes

,

2014-DN3,

M3,

FRN,

9.02%,

(1-month

USD

LIBOR

+

4%),

8/25/24

United

States

195,401

197,874

2014-DN4,

M3,

FRN,

9.57%,

(1-month

USD

LIBOR

+

4.55%),

10/25/24

..........................................

United

States

1,972,448

2,012,178

2015-DNA1,

M3,

FRN,

8.32%,

(1-month

USD

LIBOR

+

3.3%),

10/25/27

..........................................

United

States

376,551

379,912

2015-DNA3,

M3,

FRN,

9.72%,

(1-month

USD

LIBOR

+

4.7%),

4/25/28

...........................................

United

States

6,553,920

6,892,873

2016-DNA2,

M3,

FRN,

9.67%,

(1-month

USD

LIBOR

+

4.65%),

10/25/28

..........................................

United

States

6,065,929

6,357,574

o

FNMA

Connecticut

Avenue

Securities

,

2013-C01,

M2,

FRN,

10.27%,

(1-month

USD

LIBOR

+

5.25%),

10/25/23

..........................................

United

States

3,893,488

3,968,319

2014-C01,

M2,

FRN,

9.42%,

(1-month

USD

LIBOR

+

4.4%),

1/25/24

...........................................

United

States

5,192,073

5,284,366

2014-C03,

2M2,

FRN,

7.92%,

(1-month

USD

LIBOR

+

2.9%),

7/25/24

...........................................

United

States

616,104

622,463

2015-C01,

1M2,

FRN,

9.32%,

(1-month

USD

LIBOR

+

4.3%),

2/25/25

...........................................

United

States

1,355,197

1,405,906

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Residential

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

o

FNMA

Connecticut

Avenue

Securities,

(continued)

2015-C02,

1M2,

FRN,

9.02%,

(1-month

USD

LIBOR

+

4%),

5/25/25

...........................................

United

States

4,948,333

$

5,164,636

2015-C03,

1M2,

FRN,

10.02%,

(1-month

USD

LIBOR

+

5%),

7/25/25

...........................................

United

States

5,801,488

6,176,803

2016-C01,

1M2,

FRN,

11.77%,

(1-month

USD

LIBOR

+

6.75%),

8/25/28

...........................................

United

States

1,003,847

1,085,473

2016-C03,

1M2,

FRN,

10.32%,

(1-month

USD

LIBOR

+

5.3%),

10/25/28

..........................................

United

States

5,470,033

5,783,647

2017-C04,

2M2,

FRN,

7.87%,

(1-month

USD

LIBOR

+

2.85%),

11/25/29

..........................................

United

States

4,333,768

4,407,761

h,p

J.P.

Morgan

Mortgage

Trust

,

2021-13,

A4,

144A,

FRN,

2.5%,

4/25/52

...................

United

States

12,828,140

11,285,106

2021-15,

A4,

144A,

FRN,

2.5%,

6/25/52

...................

United

States

4,141,322

3,626,835

h,p

Mill

City

Mortgage

Loan

Trust

,

2018-4

,

A1B

,

144A,

FRN

,

3.5

%

,

4/25/66

...........................................

United

States

7,115,304

6,874,670

h,p

OBX

Trust

,

2021-J3

,

A4

,

144A,

FRN

,

2.5

%

,

10/25/51

...........

United

States

2,697,083

2,367,803

h,p

Provident

Funding

Associates

LLP

,

2021-J1

,

A3

,

144A,

FRN

,

2.5

%

,

2/20/49

...........................................

United

States

8,614,267

7,544,094

h,p

Provident

Funding

Mortgage

Trust

,

2019-1

,

A2

,

144A,

FRN

,

3

%

,

12/25/49

..........................................

United

States

1,610,443

1,409,405

h,p

PSMC

Trust

,

2021-3

,

A3

,

144A,

FRN

,

2.5

%

,

8/25/51

...........

United

States

15,281,253

13,660,592

107,220,721

a

a

a

a

a

a

Total

Residential

Mortgage-Backed

Securities

(Cost

$117,565,709)

................

107,220,721

Shares

a

Escrows

and

Litigation

Trusts

0.0%

†

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

..............

South

Africa

620,001

—

b

Mesquite

Energy,

Inc.,

Escrow

Account

.....................

United

States

6,000,000

45,000

Total

Escrows

and

Litigation

Trusts

(Cost

$5,707,489)

...........................

45,000

Total

Long

Term

Investments

(Cost

$2,886,085,651)

.............................

2,637,777,447

a

Short

Term

Investments

7.5%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

1.3%

e,r

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

....

United

States

37,364,960

37,364,960

Total

Money

Market

Funds

(Cost

$37,364,960)

..................................

37,364,960

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

6.2%

s

Joint

Repurchase

Agreement,

4.693%,

5/01/23

(Maturity

Value

$177,936,467)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$89,729,802)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$34,370,208)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$53,836,457)

Collateralized

by

U.S.

Government

and

Agency

Securities,

2%

-

5.5%,

9/6/24

-

10/15/57;

U.S.

Treasury

Bonds,

Index

Linked,

2%

-

2.38%,

1/15/25

-

1/15/26;

and

U.S.

Treasury

Notes,

0.38%,

7/31/27

(valued

at

$181,522,477)

........................

177,866,902

$

177,866,902

Total

Repurchase

Agreements

(Cost

$177,866,902)

..............................

177,866,902

Total

Short

Term

Investments

(Cost

$215,231,862

)

...............................

215,231,862

a

Total

Investments

(Cost

$3,101,317,513)

99.4%

..................................

$2,853,009,309

Other

Assets,

less

Liabilities

0.6%

.............................................

17,431,968

Net

Assets

100.0%

...........................................................

$2,870,441,277

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

12

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

8

regarding

restricted

securities.

d

See

Note

10

regarding

holdings

of

5%

voting

securities.

e

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

f

Income

may

be

received

in

additional

securities

and/or

cash.

g

Perpetual

security

with

no

stated

maturity

date.

h

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

April

30,

2023,

the

aggregate

value

of

these

securities

was

$1,042,711,618,

representing

36.3%

of

net

assets.

i

The

coupon

rate

shown

represents

the

rate

at

period

end.

j

See

Note

7

regarding

credit

risk

and

defaulted

securities.

k

See

Note

1(i)

regarding

senior

floating

rate

interests.

l

See

Note

1(g)

regarding

Marketplace

Lending.

See

full

breakdown

of

marketplace

loans

holdings

in

the

table

at

the

end

of

this

schedule.

m

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

n

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(k).

o

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

p

Adjustable

rate

security

with

an

interest

rate

that

is

not

based

on

a

published

reference

index

and

spread.

The

rate

is

based

on

the

structure

of

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

at

period

end.

q

Adjustable

Rate

Mortgage-Backed

Security

(ARM);

the

rate

shown

is

the

effective

rate

at

period

end.

ARM

rates

are

not

based

on

a

published

reference

rate

and

spread,

but

instead

pass-through

weighted

average

interest

income

inclusive

of

any

caps

or

floors,

if

applicable,

from

the

underlying

mortgage

loans

in

which

the

majority

of

mortgages

pay

interest

based

on

the

index

shown

at

their

designated

reset

dates

plus

a

spread,

less

the

applicable

servicing

and

guaranty

fee

(MBS

margin).

r

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

s

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Strategic

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

,

At

April

30,

2023,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(g).

Description

Principal

Amount

Value

Marketplace

Loans

-

1.9%

Block,

Inc.

4786214.SQ.FTS.B,

Zero

Cpn,

5/28/23

...

$

1,128

$

243

4789370.SQ.FTS.B,

Zero

Cpn,

5/29/23

...

11,262

2,933

4790824.SQ.FTS.B,

Zero

Cpn,

5/29/23

...

3,330

588

4792640.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

62

39

4792978.SQ.FTS.B,

Zero

Cpn,

5/30/23

...

929

258

4796651.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

3,524

900

4798843.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

1,576

896

4799719.SQ.FTS.B,

Zero

Cpn,

6/01/23

...

411

278

4807880.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

19,851

2,518

4808500.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

11,566

5,713

4809809.SQ.FTS.B,

Zero

Cpn,

6/02/23

...

291

109

4810075.SQ.FTS.B,

Zero

Cpn,

6/03/23

...

1,707

745

4815617.SQ.FTS.B,

Zero

Cpn,

6/05/23

...

966

332

4815646.SQ.FTS.B,

Zero

Cpn,

6/05/23

...

5,300

2,530

4816871.SQ.FTS.B,

Zero

Cpn,

6/06/23

...

248

152

4817437.SQ.FTS.B,

Zero

Cpn,

6/06/23

...

557

231

4820091.SQ.FTS.B,

Zero

Cpn,

6/07/23

...

2,445

933

4820553.SQ.FTS.B,

Zero

Cpn,

6/07/23

...

10,164

1,619

4821904.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

796

162

4821908.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

461

141

4822253.SQ.FTS.B,

Zero

Cpn,

6/08/23

...

1,835

551

4830906.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

692

256

4830931.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

127

49

4831001.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,270

492

4831110.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

962

247

4831269.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

1,835

529

4831653.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

2,099

436

4831986.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

5,372

2,108

4832297.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

567

267

4832548.SQ.FTS.B,

Zero

Cpn,

6/10/23

...

7,727

933

4833494.SQ.FTS.B,

Zero

Cpn,

6/11/23

...

547

311

4833520.SQ.FTS.B,

Zero

Cpn,

6/11/23

...

4,168

1,251

4834162.SQ.FTS.B,

Zero

Cpn,

6/12/23

...

241

100

4838333.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

750

137

4839102.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

1,596

348

4839768.SQ.FTS.B,

Zero

Cpn,

6/14/23

...

1,790

876

4841116.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

11,234

3,639

4842324.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

157

100

4842421.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

401

190

4842605.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

4,000

762

4842631.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

5,776

1,418

4843200.SQ.FTS.B,

Zero

Cpn,

6/15/23

...

2,039

1,181

4848370.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

12,352

5,314

4848622.SQ.FTS.B,

Zero

Cpn,

6/16/23

...

2,069

985

4861461.SQ.FTS.B,

Zero

Cpn,

6/17/23

...

61

19

4862012.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

140

87

4862192.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

3,999

2,687

4862341.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

527

141

4862443.SQ.FTS.B,

Zero

Cpn,

6/18/23

...

7,578

2,192

4862769.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

7,110

2,918

4862938.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

691

208

4862998.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

1,298

286

4863011.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

120

63

4863062.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

3,882

791

4863186.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

1,844

822

4863238.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

2,993

870

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4863412.SQ.FTS.B,

Zero

Cpn,

6/19/23

...

$

11,632

$

4,684

4863925.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

1,300

883

4865141.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

404

159

4866807.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

48

29

4867257.SQ.FTS.B,

Zero

Cpn,

6/20/23

...

941

201

4867843.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

739

333

4868757.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

3,219

1,188

4868920.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

1,181

852

4869171.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

1,336

272

4869815.SQ.FTS.B,

Zero

Cpn,

6/21/23

...

7,257

2,058

4871837.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,490

290

4872022.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,829

540

4872027.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

3,051

1,552

4872072.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

3,449

979

4872437.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,127

388

4872518.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

105

41

4873297.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

113

50

4873313.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

1,287

395

4873405.SQ.FTS.B,

Zero

Cpn,

6/22/23

...

5,886

3,378

4874157.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,873

1,355

4874535.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

977

260

4874544.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

1,216

542

4874845.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

3,811

1,822

4875940.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

7,944

3,425

4876174.SQ.FTS.B,

Zero

Cpn,

6/23/23

...

600

264

4876827.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,801

1,120

4877017.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,081

117

4877057.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

314

113

4877067.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

1,174

106

4877160.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

147

33

4877161.SQ.FTS.B,

Zero

Cpn,

6/24/23

...

928

506

4877248.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

114

69

4877254.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,462

554

4877394.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

4,239

2,493

4877534.SQ.FTS.B,

Zero

Cpn,

6/25/23

...

1,857

340

4878103.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

627

211

4878504.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

260

191

4878787.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,067

1,053

4878962.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,347

394

4879027.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

417

273

4879124.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

4,098

1,740

4879260.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

3,091

1,458

4879371.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

536

123

4879728.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

2,694

701

4879828.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,701

464

4880063.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

3,473

893

4880273.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

32,499

8,606

4880336.SQ.FTS.B,

Zero

Cpn,

6/27/23

...

1,880

769

4880374.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

12,118

4,583

4880603.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

649

328

4880766.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,605

811

4880840.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

2,437

646

4880881.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

274

55

4881332.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

671

313

4881595.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,106

562

4881625.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,074

125

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4881632.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

$

5,202

$

1,149

4881933.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

502

137

4881967.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

1,311

354

4882127.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

35,043

8,183

4882630.SQ.FTS.B,

Zero

Cpn,

6/28/23

...

5,042

2,307

4886903.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,071

384

4886912.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

2,287

214

4888694.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

4,336

1,490

4889268.SQ.FTS.B,

Zero

Cpn,

6/30/23

...

524

142

4889574.SQ.FTS.B,

Zero

Cpn,

7/01/23

...

3,188

642

4889768.SQ.FTS.B,

Zero

Cpn,

7/01/23

...

193

142

4893066.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

3,265

308

4893123.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

175

101

4894101.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

12,955

4,463

4894444.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

128

111

4894456.SQ.FTS.B,

Zero

Cpn,

7/04/23

...

1,602

644

4895085.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

1,529

567

4895222.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

956

416

4896484.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

723

173

4896547.SQ.FTS.B,

Zero

Cpn,

7/05/23

...

4,712

1,256

4898791.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

502

371

4898852.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

2,213

548

4899151.SQ.FTS.B,

Zero

Cpn,

7/06/23

...

3,147

1,055

4905436.SQ.FTS.B,

Zero

Cpn,

7/10/23

...

594

219

4907364.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

1,373

155

4908064.SQ.FTS.B,

Zero

Cpn,

7/11/23

...

16,568

8,813

4914425.SQ.FTS.B,

Zero

Cpn,

7/13/23

...

657

614

4916400.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

955

373

4916640.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

1,889

590

4916673.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

9,163

2,983

4916836.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

436

330

4922562.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

6,920

2,449

4922790.SQ.FTS.B,

Zero

Cpn,

7/14/23

...

449

121

4923493.SQ.FTS.B,

Zero

Cpn,

7/15/23

...

134

48

4923524.SQ.FTS.B,

Zero

Cpn,

7/16/23

...

903

639

4924642.SQ.FTS.B,

Zero

Cpn,

7/17/23

...

225

130

4925329.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

1,389

217

4925730.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

425

146

4926230.SQ.FTS.B,

Zero

Cpn,

7/18/23

...

2,280

517

4928876.SQ.FTS.B,

Zero

Cpn,

7/19/23

...

764

243

4930391.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

846

490

4931016.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

741

256

4931020.SQ.FTS.B,

Zero

Cpn,

7/20/23

...

10,152

3,441

4934833.SQ.FTS.B,

Zero

Cpn,

7/21/23

...

2,681

1,189

4935485.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

1,195

745

4935511.SQ.FTS.B,

Zero

Cpn,

7/22/23

...

450

137

4935850.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

1,192

668

4935921.SQ.FTS.B,

Zero

Cpn,

7/23/23

...

187

75

4940284.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

3,434

2,004

4940732.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

495

304

4941224.SQ.FTS.B,

Zero

Cpn,

7/25/23

...

4,401

1,156

4941481.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

24

14

4942261.SQ.FTS.B,

Zero

Cpn,

7/26/23

...

740

180

4945879.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

300

113

4947272.SQ.FTS.B,

Zero

Cpn,

7/27/23

...

1,224

441

4948736.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

5,040

1,223

4953337.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

5,454

3,277

4953930.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

6,906

1,660

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4954105.SQ.FTS.B,

Zero

Cpn,

7/28/23

...

$

2,531

$

993

4956468.SQ.FTS.B,

Zero

Cpn,

7/30/23

...

455

118

4960965.SQ.FTS.B,

Zero

Cpn,

7/31/23

...

367

305

4961597.SQ.FTS.B,

Zero

Cpn,

7/31/23

...

6,826

2,791

4964044.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

3,997

2,029

4964338.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

1,028

179

4965729.SQ.FTS.B,

Zero

Cpn,

8/01/23

...

184

154

4967002.SQ.FTS.B,

Zero

Cpn,

8/02/23

...

1,496

443

4971164.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

2,881

1,668

4972172.SQ.FTS.B,

Zero

Cpn,

8/03/23

...

797

542

4975322.SQ.FTS.B,

Zero

Cpn,

8/05/23

...

1,106

100

4975653.SQ.FTS.B,

Zero

Cpn,

8/06/23

...

14,056

3,722

4976561.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

2,306

424

4977066.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

14,863

2,806

4977248.SQ.FTS.B,

Zero

Cpn,

8/07/23

...

23,393

5,400

4978982.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

8,763

6,954

4979273.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

3,252

1,162

4979694.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

7,423

1,333

4980976.SQ.FTS.B,

Zero

Cpn,

8/08/23

...

3,062

962

4981159.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

3,162

602

4981755.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

1,833

637

4981981.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

1,638

954

4983108.SQ.FTS.B,

Zero

Cpn,

8/09/23

...

419

209

4984948.SQ.FTS.B,

Zero

Cpn,

8/10/23

...

443

241

4989295.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

228

139

4989442.SQ.FTS.B,

Zero

Cpn,

8/11/23

...

717

231

4990625.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

771

463

4990668.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

1,655

481

4990781.SQ.FTS.B,

Zero

Cpn,

8/12/23

...

462

69

4995431.SQ.FTS.B,

Zero

Cpn,

8/15/23

...

6,247

813

5004424.SQ.FTS.B,

Zero

Cpn,

8/16/23

...

1,835

549

5016072.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

5,014

1,375

5019704.SQ.FTS.B,

Zero

Cpn,

8/17/23

...

2,760

2,391

5023148.SQ.FTS.B,

Zero

Cpn,

8/18/23

...

1,355

951

5025752.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

6,406

573

5025882.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

1,858

330

5026234.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

1,053

881

5026383.SQ.FTS.B,

Zero

Cpn,

8/19/23

...

155

134

5026934.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

1,253

548

5027018.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

609

567

5027373.SQ.FTS.B,

Zero

Cpn,

8/21/23

...

8,844

892

5030021.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

199

63

5030831.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

5,213

553

5031471.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

5,258

1,571

5031503.SQ.FTS.B,

Zero

Cpn,

8/22/23

...

1,368

883

5032944.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

125

101

5033148.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

471

146

5033157.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

1,437

1,060

5035669.SQ.FTS.B,

Zero

Cpn,

8/23/23

...

3,399

349

5037826.SQ.FTS.B,

Zero

Cpn,

8/24/23

...

1,608

579

5040879.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

1,743

1,630

5042510.SQ.FTS.B,

Zero

Cpn,

8/25/23

...

1,288

809

5043542.SQ.FTS.B,

Zero

Cpn,

8/26/23

...

554

531

5044176.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

327

109

5044258.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

8,147

5,039

5044404.SQ.FTS.B,

Zero

Cpn,

8/27/23

...

1,451

443

5044794.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

5,731

1,644

5045662.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

2,040

216

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5045863.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

$

177

$

116

5047314.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

751

144

5047321.SQ.FTS.B,

Zero

Cpn,

8/28/23

...

5,110

1,303

5049681.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

53

31

5050394.SQ.FTS.B,

Zero

Cpn,

9/01/23

...

4,019

1,609

5051538.SQ.FTS.B,

Zero

Cpn,

9/02/23

...

489

214

5059326.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

13,048

1,386

5060641.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

5,864

4,658

5061493.SQ.FTS.B,

Zero

Cpn,

9/04/23

...

1,559

1,262

5062120.SQ.FTS.B,

Zero

Cpn,

9/05/23

...

888

410

5062300.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

1,128

719

5062340.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

2,118

562

5062512.SQ.FTS.B,

Zero

Cpn,

9/06/23

...

3,648

892

5063823.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

143

126

5065106.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

1,802

863

5065174.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

421

318

5065196.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

9,347

4,045

5065404.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

2,680

258

5065943.SQ.FTS.B,

Zero

Cpn,

9/07/23

...

717

312

5067242.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

5,386

1,944

5067403.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

2,091

1,683

5067489.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

221

194

5068096.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

2,629

1,657

5068551.SQ.FTS.B,

Zero

Cpn,

9/08/23

...

15,715

8,988

5071139.SQ.FTS.B,

Zero

Cpn,

9/09/23

...

3,430

3,060

5072967.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

542

324

5074442.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,909

353

5075119.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,810

697

5075424.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

1,875

681

5075548.SQ.FTS.B,

Zero

Cpn,

9/10/23

...

3,661

2,330

5075923.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

1,557

1,366

5077583.SQ.FTS.B,

Zero

Cpn,

9/11/23

...

3,691

831

5079422.SQ.FTS.B,

Zero

Cpn,

9/13/23

...

3,544

2,412

5080816.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

2,416

1,232

5081105.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

2,207

1,366

5081227.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

4,612

4,145

5081612.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

1,324

592

5081691.SQ.FTS.B,

Zero

Cpn,

9/14/23

...

2,062

1,249

5082283.SQ.FTS.B,

Zero

Cpn,

9/15/23

...

741

452

5084934.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

33,929

9,712

5085496.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

158

104

5085858.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

887

295

5086206.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

703

557

5086589.SQ.FTS.B,

Zero

Cpn,

9/16/23

...

6,492

5,525

5088456.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

110

76

5090272.SQ.FTS.B,

Zero

Cpn,

9/17/23

...

4,187

841

5091720.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

44

37

5092317.SQ.FTS.B,

Zero

Cpn,

9/18/23

...

2,820

1,535

5093863.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

10,192

2,052

5094324.SQ.FTS.B,

Zero

Cpn,

9/19/23

...

1,692

314

5094427.SQ.FTS.B,

Zero

Cpn,

9/20/23

...

2,121

802

5095627.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

765

628

5095917.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

17,638

3,689

5096674.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

13,817

2,197

5097715.SQ.FTS.B,

Zero

Cpn,

9/21/23

...

205

170

5097942.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

735

506

5097995.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

1,578

1,239

5098275.SQ.FTS.B,

Zero

Cpn,

9/22/23

...

6,026

1,508

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5100485.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

$

4,264

$

872

5101793.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

778

560

5102756.SQ.FTS.B,

Zero

Cpn,

9/23/23

...

40

33

5106538.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

11,727

3,369

5106892.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

336

255

5107353.SQ.FTS.B,

Zero

Cpn,

9/24/23

...

1,383

534

5107774.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

702

565

5109145.SQ.FTS.B,

Zero

Cpn,

9/25/23

...

1,195

629

5110636.SQ.FTS.B,

Zero

Cpn,

9/26/23

...

3,379

1,350

5110725.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

1,393

1,147

5110762.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

635

188

5110811.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

2,531

1,724

5111024.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

3,360

830

5111117.SQ.FTS.B,

Zero

Cpn,

9/27/23

...

502

135

5112445.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

777

490

5112955.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

4,811

1,166

5113266.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

1,765

983

5114206.SQ.FTS.B,

Zero

Cpn,

9/28/23

...

1,117

399

5116150.SQ.FTS.B,

Zero

Cpn,

9/29/23

...

2,567

1,713

5117214.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

252

176

5117309.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

584

198

5117854.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

1,086

281

5119131.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,892

997

5119221.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,448

1,353

5119262.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

8

7

5119608.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

2,589

1,412

5121651.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

8,232

6,644

5122643.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

252

150

5124518.SQ.FTS.B,

Zero

Cpn,

9/30/23

...

11,687

4,218

5126438.SQ.FTS.B,

Zero

Cpn,

10/01/23

..

23,217

6,953

5127847.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

24

21

5128413.SQ.FTS.B,

Zero

Cpn,

10/02/23

..

1,332

188

5128523.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

534

432

5128685.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

111

41

5129262.SQ.FTS.B,

Zero

Cpn,

10/03/23

..

2,147

957

5131238.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

4,826

2,078

5131669.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

22,967

7,720

5132006.SQ.FTS.B,

Zero

Cpn,

10/04/23

..

1,229

399

5132946.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

8

7

5132957.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

152

137

5133917.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

425

325

5134297.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

175

159

5134361.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

139

129

5135710.SQ.FTS.B,

Zero

Cpn,

10/05/23

..

347

235

5136782.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

82

45

5136863.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,243

317

5137092.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

538

222

5137109.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

3,862

1,380

5138072.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

4,185

1,462

5138860.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

1,036

285

5138917.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

140

110

5139115.SQ.FTS.B,

Zero

Cpn,

10/06/23

..

532

270

5141482.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

2,827

2,548

5142028.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

612

228

5142049.SQ.FTS.B,

Zero

Cpn,

10/07/23

..

593

456

5145760.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

1,894

767

5145849.SQ.FTS.B,

Zero

Cpn,

10/08/23

..

25

18

5148107.SQ.FTS.B,

Zero

Cpn,

10/09/23

..

3,447

2,262

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5148859.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

$

2,177

$

1,576

5149144.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

951

801

5149170.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

485

172

5149269.SQ.FTS.B,

Zero

Cpn,

10/10/23

..

941

99

5150453.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

911

749

5150470.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

3,079

1,723

5152767.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

4,044

1,616

5152822.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

20,653

7,611

5153190.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

3,393

2,112

5153369.SQ.FTS.B,

Zero

Cpn,

10/11/23

..

12,701

3,277

5153611.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,253

1,187

5153956.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,957

700

5154181.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,613

342

5154314.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

2,780

919

5154612.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,321

356

5154987.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

1,107

907

5156156.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

5,005

3,190

5157152.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

4,641

1,892

5157279.SQ.FTS.B,

Zero

Cpn,

10/12/23

..

9,049

2,758

5157821.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

4,950

1,443

5159226.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

448

442

5159258.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

2,281

903

5159356.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

7,583

3,028

5159643.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

1,281

575

5159726.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

11,301

9,011

5160236.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

13,519

5,274

5160507.SQ.FTS.B,

Zero

Cpn,

10/13/23

..

377

301

5162509.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

55,221

13,904

5163000.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

6,619

3,269

5163312.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

3,944

3,560

5163616.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

6,096

4,382

5164173.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

89

81

5164174.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

2,129

814

5165378.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

4,493

2,405

5165754.SQ.FTS.B,

Zero

Cpn,

10/14/23

..

1,504

291

5168750.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

2,545

1,590

5170843.SQ.FTS.B,

Zero

Cpn,

10/15/23

..

14,553

6,166

5171656.SQ.FTS.B,

Zero

Cpn,

10/16/23

..

875

97

5172517.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

3,356

537

5172607.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

495

341

5172676.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

3,007

1,698

5173148.SQ.FTS.B,

Zero

Cpn,

10/17/23

..

670

616

5175259.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

463

71

5175826.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

3,737

1,577

5176617.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

935

276

5176935.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

920

259

5177078.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,402

1,028

5178365.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

915

716

5178540.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

831

618

5179181.SQ.FTS.B,

Zero

Cpn,

10/18/23

..

1,690

1,008

5181779.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

1,677

1,376

5184366.SQ.FTS.B,

Zero

Cpn,

10/19/23

..

3,564

2,455

5189604.SQ.FTS.B,

Zero

Cpn,

10/20/23

..

5,258

2,851

5202714.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

23,934

12,231

5203664.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

1,445

491

5203735.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

6,108

2,351

5203935.SQ.FTS.B,

Zero

Cpn,

10/21/23

..

395

329

5204240.SQ.FTS.B,

Zero

Cpn,

10/22/23

..

834

327

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5209797.SQ.FTS.B,

Zero

Cpn,

10/23/23

..

$

157

$

143

5209815.SQ.FTS.B,

Zero

Cpn,

10/23/23

..

318

266

5210519.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

11,522

2,130

5210616.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

789

512

5210691.SQ.FTS.B,

Zero

Cpn,

10/24/23

..

2,411

867

5211496.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

208

195

5211869.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

1,238

1,113

5215697.SQ.FTS.B,

Zero

Cpn,

10/25/23

..

2,202

2,114

5219348.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

346

133

5219361.SQ.FTS.B,

Zero

Cpn,

10/26/23

..

2,378

2,153

5223636.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

2,509

1,277

5223661.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

3,190

2,649

5223758.SQ.FTS.B,

Zero

Cpn,

10/27/23

..

105

81

5230330.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

1,320

365

5230521.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

767

446

5230601.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

5,805

1,900

5233083.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

409

354

5234006.SQ.FTS.B,

Zero

Cpn,

10/28/23

..

33,066

11,702

5235712.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

1,124

432

5237941.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

3,517

1,999

5238462.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

475

429

5238828.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

19,166

8,289

5239828.SQ.FTS.B,

Zero

Cpn,

10/29/23

..

772

702

5240481.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,280

953

5240546.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

1,371

137

5240561.SQ.FTS.B,

Zero

Cpn,

10/30/23

..

993

399

5240923.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

7,658

1,905

5241173.SQ.FTS.B,

Zero

Cpn,

11/01/23

..

933

233

5244310.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

3,720

3,440

5244712.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

2,430

2,271

5245023.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,235

325

5245246.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

1,475

1,418

5245556.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

393

336

5245998.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

519

323

5246013.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

956

701

5246421.SQ.FTS.B,

Zero

Cpn,

11/02/23

..

13,880

4,016

5251953.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

1,860

227

5252966.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

2,234

935

5253686.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

1,217

908

5256925.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

20,403

9,042

5257274.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

459

281

5257285.SQ.FTS.B,

Zero

Cpn,

11/04/23

..

338

207

5262837.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,297

1,322

5264439.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

1,003

664

5264599.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

2,504

1,780

5266384.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

897

325

5266471.SQ.FTS.B,

Zero

Cpn,

11/05/23

..

3,433

2,292

5267196.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

2,061

1,538

5267302.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

212

75

5269783.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

1,415

544

5270825.SQ.FTS.B,

Zero

Cpn,

11/06/23

..

4,533

1,272

5273532.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

1,044

779

5273714.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

2,914

1,201

5273786.SQ.FTS.B,

Zero

Cpn,

11/08/23

..

4,342

1,992

5276774.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,264

949

5276919.SQ.FTS.B,

Zero

Cpn,

11/09/23

..

3,556

2,448

5280553.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

4,394

3,990

5280789.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

161

150

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5280986.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

$

1,327

$

275

5281096.SQ.FTS.B,

Zero

Cpn,

11/10/23

..

312

249

5284007.SQ.FTS.B,

Zero

Cpn,

11/11/23

..

1,271

1,129

5286813.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

620

603

5287039.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

10,462

7,935

5287635.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,871

1,502

5288567.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

1,030

546

5288588.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

55,750

16,907

5289293.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

8,417

6,123

5289917.SQ.FTS.B,

Zero

Cpn,

11/12/23

..

702

71

5290432.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

158

123

5292026.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

5,106

1,507

5292089.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

1,398

957

5293536.SQ.FTS.B,

Zero

Cpn,

11/13/23

..

12,278

11,364

5293668.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

2,639

2,375

5293871.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

3,436

826

5293907.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

2,714

968

5293955.SQ.FTS.B,

Zero

Cpn,

11/14/23

..

6,217

2,599

5294289.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

651

587

5294309.SQ.FTS.B,

Zero

Cpn,

11/15/23

..

677

286

5295185.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,658

1,504

5295255.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

4,664

1,230

5296246.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

1,628

456

5296379.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

721

589

5297119.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

453

420

5297175.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

263

249

5297910.SQ.FTS.B,

Zero

Cpn,

11/16/23

..

2,794

2,489

5300321.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

855

149

5300323.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,387

509

5303109.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,345

941

5303269.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

2,303

2,220

5304517.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

5,027

4,000

5304956.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

1,702

1,140

5305103.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

488

77

5305120.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

459

437

5306117.SQ.FTS.B,

Zero

Cpn,

11/17/23

..

903

266

5307959.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

730

331

5308247.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

5,188

4,058

5309391.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

1,987

1,658

5310591.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

2,118

1,054

5311109.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

7,600

3,048

5312373.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

5,462

4,778

5314056.SQ.FTS.B,

Zero

Cpn,

11/18/23

..

30,294

25,342

5316097.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

317

120

5317234.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,509

1,240

5317481.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

593

159

5317587.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

1,255

1,194

5319057.SQ.FTS.B,

Zero

Cpn,

11/19/23

..

2,284

1,731

5319985.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

6,840

6,399

5321250.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,326

618

5322171.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

240

229

5322288.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

76

72

5322315.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,865

2,626

5322921.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,120

1,968

5323101.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

2,442

2,119

5323235.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

1,680

1,632

5323857.SQ.FTS.B,

Zero

Cpn,

11/20/23

..

6,583

6,419

5324550.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

2,145

2,004

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5324739.SQ.FTS.B,

Zero

Cpn,

11/21/23

..

$

2,644

$

1,086

5325009.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

6,505

2,501

5325109.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

3,741

389

5325377.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

500

487

5325394.SQ.FTS.B,

Zero

Cpn,

11/22/23

..

728

693

5325953.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

27,323

12,948

5326788.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

549

289

5329649.SQ.FTS.B,

Zero

Cpn,

11/23/23

..

642

482

5330611.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,625

743

5331997.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,172

208

5332017.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

3,457

1,272

5332382.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,453

153

5333523.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

620

289

5333772.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

967

190

5334010.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

540

223

5334017.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,150

1,091

5334919.SQ.FTS.B,

Zero

Cpn,

11/24/23

..

1,216

219

5336258.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

4,115

3,156

5337318.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,470

1,009

5338841.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

2,205

1,443

5338885.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

127

81

5339131.SQ.FTS.B,

Zero

Cpn,

11/25/23

..

1,368

1,081

5357298.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

701

612

5357594.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

2,260

1,862

5362361.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

722

566

5364095.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

652

513

5364437.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

18,954

14,213

5364900.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,391

346

5365379.SQ.FTS.B,

Zero

Cpn,

11/26/23

..

1,250

811

5369148.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

969

692

5374193.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,427

1,214

5375623.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

596

592

5377413.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

1,143

324

5377620.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

14,504

11,143

5378585.SQ.FTS.B,

Zero

Cpn,

11/27/23

..

392

138

5381712.SQ.FTS.B,

Zero

Cpn,

11/29/23

..

98

93

5382744.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,298

1,180

5382984.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

1,281

1,083

5383047.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

319

318

5383205.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

846

605

5390465.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

2,994

2,139

5392090.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

309

307

5393796.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

785

237

5394331.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

180

172

5397535.SQ.FTS.B,

Zero

Cpn,

11/30/23

..

5,543

1,858

5400184.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

4,431

3,509

5408127.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,021

876

5409973.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,027

800

5411002.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

167

158

5411388.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

801

314

5412456.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

835

313

5412734.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

8,127

2,745

5413159.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,242

1,203

5413423.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

2,550

2,050

5413569.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

496

337

5414157.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

4,943

4,427

5415130.SQ.FTS.B,

Zero

Cpn,

12/01/23

..

1,419

802

5439954.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

528

414

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5440954.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

$

100

$

99

5447166.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

47

36

5447961.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

1,081

1,002

5450371.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

184

180

5452329.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

351

229

5452530.SQ.FTS.B,

Zero

Cpn,

12/02/23

..

8,022

7,899

5456242.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

2,040

847

5456428.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

22,683

11,043

5463036.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,080

518

5467355.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

4,692

2,659

5471418.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

937

740

5471641.SQ.FTS.B,

Zero

Cpn,

12/03/23

..

1,278

711

5472733.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

6,060

4,757

5472760.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

5,627

3,006

5472809.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

1,186

1,069

5472855.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

612

352

5473041.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

1,323

1,119

5473117.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

2,639

2,484

5473353.SQ.FTS.B,

Zero

Cpn,

12/04/23

..

767

535

5474229.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

677

647

5474502.SQ.FTS.B,

Zero

Cpn,

12/05/23

..

3,439

2,759

5475686.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

2,736

663

5478936.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

643

618

5479438.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

1,222

463

5480752.SQ.FTS.B,

Zero

Cpn,

12/06/23

..

3,098

914

5493383.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

32

31

5495504.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

734

675

5502478.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

939

872

5503173.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

348

252

5503358.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

834

820

5504805.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,005

791

5505930.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

1,295

336

5506042.SQ.FTS.B,

Zero

Cpn,

12/07/23

..

2,334

2,259

5506550.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

361

317

5506828.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

5,824

3,635

5507000.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

38,614

12,759

5515187.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

4,692

2,507

5516154.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

12,489

3,673

5517958.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

600

563

5518310.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

502

131

5519364.SQ.FTS.B,

Zero

Cpn,

12/08/23

..

390

345

5531095.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

75

72

5531224.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

523

417

5531950.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

4,182

3,794

5533995.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

4,052

3,121

5534121.SQ.FTS.B,

Zero

Cpn,

12/09/23

..

5,159

2,157

5534560.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

497

421

5534576.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

671

667

5534689.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

28,115

15,646

5535176.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

607

477

5535205.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

1,238

1,139

5535547.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,404

1,493

5536969.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

344

239

5537728.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

2,668

1,333

5537817.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

798

81

5537953.SQ.FTS.B,

Zero

Cpn,

12/10/23

..

4,030

505

5539715.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

847

651

5539822.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

4,931

2,147

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5539948.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

$

1,821

$

849

5540341.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

640

601

5540447.SQ.FTS.B,

Zero

Cpn,

12/11/23

..

3,527

3,270

5540564.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

3,856

3,828

5541044.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

1,581

1,515

5541083.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

504

203

5541094.SQ.FTS.B,

Zero

Cpn,

12/12/23

..

5,085

2,040

5542444.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

1,379

1,222

5542667.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

9,247

3,619

5546515.SQ.FTS.B,

Zero

Cpn,

12/13/23

..

2,702

2,153

5547946.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,134

368

5547986.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

3,887

3,157

5548232.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

48,999

13,857

5550084.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

495

492

5550447.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

809

749

5551702.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

336

329

5552344.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

1,767

475

5552367.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

4,095

3,929

5552832.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

29

28

5552961.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

114

81

5554068.SQ.FTS.B,

Zero

Cpn,

12/14/23

..

453

438

5554641.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

62,255

25,494

5556129.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

1,129

924

5556696.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

5,553

5,072

5558612.SQ.FTS.B,

Zero

Cpn,

12/15/23

..

2,288

2,277

5562047.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

3,095

1,893

5562143.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

513

450

5563038.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

4,772

1,208

5563082.SQ.FTS.B,

Zero

Cpn,

12/16/23

..

476

429

5564602.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,078

592

5564628.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

10,058

8,294

5564683.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

4,043

3,686

5564859.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

296

204

5565862.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

2,278

1,420

5565992.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

5,299

1,982

5566025.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

7,972

7,660

5567586.SQ.FTS.B,

Zero

Cpn,

12/17/23

..

1,570

1,335

5567951.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

8,942

7,026

5568471.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

365

344

5568506.SQ.FTS.B,

Zero

Cpn,

12/18/23

..

1,292

889

5568881.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

1,314

536

5568984.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

6,563

5,244

5569070.SQ.FTS.B,

Zero

Cpn,

12/19/23

..

29,610

14,084

5571209.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

832

757

5572327.SQ.FTS.B,

Zero

Cpn,

12/20/23

..

422

313

5573133.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

691

664

5573188.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

338

336

5573406.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

363

313

5573434.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

6,375

6,071

5573821.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

320

307

5573929.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,795

1,657

5574351.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

10,696

9,028

5575488.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

1,647

1,555

5575886.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

894

730

5575953.SQ.FTS.B,

Zero

Cpn,

12/21/23

..

858

852

5576136.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,654

2,284

5576201.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

830

815

5576258.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

10,880

10,159

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5576489.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

$

9,975

$

2,313

5576772.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

669

614

5576779.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,148

1,128

5577779.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

361

353

5577829.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

1,710

1,664

5577977.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

2,300

2,239

5578058.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

9,863

9,675

5579302.SQ.FTS.B,

Zero

Cpn,

12/22/23

..

3,996

1,735

5581198.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

1,594

1,507

5581252.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

194

154

5583159.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

925

874

5583434.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

2,746

2,369

5584166.SQ.FTS.B,

Zero

Cpn,

12/23/23

..

136

129

5584893.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

134

133

5585235.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,426

1,034

5585522.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

878

600

5585981.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

3,376

1,516

5586899.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

2,468

1,006

5586917.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

408

384

5586936.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,522

1,495

5587431.SQ.FTS.B,

Zero

Cpn,

12/24/23

..

1,715

633

5588060.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

155

139

5588063.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,616

1,530

5588173.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

7,797

4,926

5588206.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

6,181

4,018

5588243.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

1,377

538

5588411.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

205

190

5588462.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

649

281

5588473.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

4,591

3,683

5588504.SQ.FTS.B,

Zero

Cpn,

12/25/23

..

3,205

1,452

5588832.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

7,140

5,072

5588874.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

62

46

5588959.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

1,018

644

5589185.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

603

589

5589322.SQ.FTS.B,

Zero

Cpn,

12/26/23

..

4,040

2,647

5593219.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

13,443

10,991

5593862.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

2,314

2,009

5594180.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

1,014

417

5595540.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

514

150

5595624.SQ.FTS.B,

Zero

Cpn,

12/28/23

..

986

100

5597497.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

2,919

1,136

5597662.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

260

227

5597681.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

4,421

2,941

5598842.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

183

171

5598844.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,797

1,724

5598874.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

7,030

6,623

5599450.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

598

532

5599728.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

4,867

2,524

5599893.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,004

890

5600496.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,519

1,057

5600526.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

1,008

116

5600632.SQ.FTS.B,

Zero

Cpn,

12/29/23

..

3,133

626

5611517.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

2,202

2,129

5611621.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

3,265

2,878

5612128.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

5,141

4,931

5612313.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

10,149

4,289

5612507.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

11,600

6,945

5612708.SQ.FTS.B,

Zero

Cpn,

12/30/23

..

814

459

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5614938.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

$

2,412

$

1,254

5615016.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

9,121

8,600

5615547.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

4,107

3,929

5616046.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,632

353

5616216.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

6,392

5,432

5616524.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

542

468

5616851.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

3,126

2,765

5616972.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,571

1,486

5617036.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,154

1,105

5617510.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

291

134

5617615.SQ.FTS.B,

Zero

Cpn,

1/01/24

...

1,415

1,245

5618116.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

8,099

5,041

5618234.SQ.FTS.B,

Zero

Cpn,

1/02/24

...

284

271

5618604.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

1,227

1,183

5618863.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

2,588

2,127

5618942.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

964

947

5619205.SQ.FTS.B,

Zero

Cpn,

1/03/24

...

333

302

5619451.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

1,074

493

5619464.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

646

438

5619821.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

4,047

2,897

5619915.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

627

620

5619959.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

3,449

3,229

5620066.SQ.FTS.B,

Zero

Cpn,

1/04/24

...

2,868

1,154

5622024.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

2,741

651

5622763.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

566

230

5623339.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

511

433

5623363.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

12,338

8,926

5624299.SQ.FTS.B,

Zero

Cpn,

1/05/24

...

6,091

1,726

5626005.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,368

1,348

5627066.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

1,438

1,009

5627102.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

376

329

5630151.SQ.FTS.B,

Zero

Cpn,

1/06/24

...

506

492

5641025.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

351

347

5641620.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,146

343

5641673.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,578

733

5641753.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,221

1,163

5645286.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,628

1,511

5645369.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,446

1,312

5645630.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

713

696

5645876.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,638

2,147

5646233.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

831

801

5646375.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

912

715

5647775.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

1,305

461

5647807.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

692

686

5647857.SQ.FTS.B,

Zero

Cpn,

1/07/24

...

3,050

2,982

5649633.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

501

426

5650606.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,815

1,506

5651317.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,160

1,148

5651560.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

850

823

5651706.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,089

1,079

5652332.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

287

285

5652373.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

1,258

877

5654133.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

32,774

14,567

5654692.SQ.FTS.B,

Zero

Cpn,

1/08/24

...

17,201

16,159

5655586.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

2,162

1,635

5655643.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

4,363

664

5655850.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

2,412

2,038

5656207.SQ.FTS.B,

Zero

Cpn,

1/09/24

...

8,733

6,116

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5656473.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

$

4,415

$

4,107

5656606.SQ.FTS.B,

Zero

Cpn,

1/10/24

...

761

636

5658162.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

847

793

5659867.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1

1

5662627.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

321

319

5662691.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

731

717

5663218.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

105

80

5663245.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

549

443

5663762.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

1,603

1,567

5663983.SQ.FTS.B,

Zero

Cpn,

1/11/24

...

611

430

5665103.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

11,485

11,212

5665606.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

1,227

1,198

5666806.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

13,430

7,090

5668136.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

6,214

5,404

5669842.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

1,412

1,399

5670327.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

8,665

6,428

5671341.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

489

463

5671405.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

462

405

5671581.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

18,583

13,783

5671991.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

6,640

5,768

5672476.SQ.FTS.B,

Zero

Cpn,

1/12/24

...

3,184

2,961

5672653.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

7,976

3,989

5673131.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

900

881

5673210.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,838

706

5673272.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

245

243

5673451.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,049

1,753

5673720.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

3,619

3,470

5674244.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,831

2,784

5674942.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

1,619

1,468

5675013.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

5,154

3,204

5675130.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

490

473

5676293.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

8,252

7,735

5677938.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

617

565

5678440.SQ.FTS.B,

Zero

Cpn,

1/13/24

...

2,225

1,301

5689248.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,934

702

5690927.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,829

1,687

5692786.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

4,852

4,581

5694816.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

1,074

333

5694822.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

929

825

5694969.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

2,137

1,908

5695450.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

30,936

11,350

5695931.SQ.FTS.B,

Zero

Cpn,

1/14/24

...

4,092

3,956

5696348.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,249

1,226

5696389.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

730

686

5696602.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

730

727

5696963.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

9,444

4,135

5697302.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,930

1,897

5697818.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

9,012

6,275

5698393.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

7,465

5,143

5698819.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,672

1,624

5698927.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,650

1,057

5699419.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

5,298

4,660

5699811.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

378

274

5700306.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

823

628

5700432.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

929

281

5700441.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

257

252

5700842.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,925

1,518

5700933.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

190

185

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5700958.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

$

1,110

$

617

5701882.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

3,576

2,883

5701983.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

673

657

5702094.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

1,417

1,332

5702269.SQ.FTS.B,

Zero

Cpn,

1/15/24

...

4,613

4,493

5702369.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

2,035

2,002

5702466.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

188

135

5702515.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

1,176

752

5702638.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

270

261

5703021.SQ.FTS.B,

Zero

Cpn,

1/16/24

...

722

695

5703213.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

186

181

5703244.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,133

1,041

5703401.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,653

440

5703461.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

244

242

5703531.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,670

1,522

5703688.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

318

316

5703708.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

471

467

5703736.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

138

135

5703743.SQ.FTS.B,

Zero

Cpn,

1/17/24

...

1,876

1,004

5704779.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

4,559

4,474

5706022.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

526

502

5706189.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

292

219

5706985.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

1,950

1,012

5707914.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

5,869

4,648

5708263.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

2,237

822

5708360.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

222

202

5708392.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

9,171

5,187

5708905.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

759

211

5708958.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

14,112

12,638

5709449.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

2,884

1,277

5709549.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

12,160

1,865

5709867.SQ.FTS.B,

Zero

Cpn,

1/18/24

...

588

529

5710117.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

136

131

5711377.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

2,395

2,272

5715475.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

839

747

5715529.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

1,948

1,789

5715755.SQ.FTS.B,

Zero

Cpn,

1/19/24

...

42,074

36,312

5716754.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,495

1,395

5717551.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

922

898

5719446.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

4,009

3,243

5719509.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,548

1,424

5719596.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

7,103

6,214

5719940.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,201

629

5720047.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

12,966

12,346

5720401.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

183

180

5721102.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

1,476

566

5721126.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

7,059

6,727

5721283.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

328

239

5721553.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

171

155

5721582.SQ.FTS.B,

Zero

Cpn,

1/20/24

...

2,026

681

5727358.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

578

510

5728073.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

387

367

5728414.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

4,382

4,109

5728577.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

7,168

4,722

5728944.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

7,780

5,819

5729197.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,276

851

5729373.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,099

976

5729395.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

24,698

18,019

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

39

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5730277.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

$

1,266

$

614

5730283.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

6,727

6,547

5730441.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

1,817

1,804

5730943.SQ.FTS.B,

Zero

Cpn,

1/21/24

...

2,386

1,073

5731025.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

568

553

5731161.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

2,662

2,504

5731303.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

1,828

685

5731779.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

7,312

7,079

5732624.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

11,619

3,550

5732684.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

4,769

3,050

5732996.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

370

336

5733254.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

135

130

5733503.SQ.FTS.B,

Zero

Cpn,

1/22/24

...

972

962

5734747.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

4,016

3,589

5735082.SQ.FTS.B,

Zero

Cpn,

1/23/24

...

3,803

3,033

5735367.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,606

248

5735412.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

1,371

1,288

5735573.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

6,601

4,742

5735989.SQ.FTS.B,

Zero

Cpn,

1/24/24

...

3,679

2,428

5736390.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

789

764

5737632.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

5,796

1,791

5738477.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

3,758

3,384

5738916.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

1,609

1,575

5739412.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

4,008

3,836

5739648.SQ.FTS.B,

Zero

Cpn,

1/25/24

...

444

441

5739811.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,786

1,717

5741187.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,311

1,295

5741303.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

2,973

1,512

5741694.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,568

2,594

5741761.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

3,712

3,687

5742308.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

21,039

17,956

5742580.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

11,811

11,470

5742838.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

1,171

442

5743017.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

23,746

20,723

5743299.SQ.FTS.B,

Zero

Cpn,

1/26/24

...

4,109

3,896

5743462.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,939

1,889

5743589.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

549

441

5744005.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,349

1,880

5744642.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,311

1,276

5744990.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

3,821

1,994

5745062.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

355

349

5745095.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,722

2,617

5745113.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,653

1,364

5745135.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

8,948

4,561

5745280.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

2,458

1,024

5745307.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

9,078

7,873

5745416.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

1,262

960

5745445.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

15,138

11,534

5745765.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

210

110

5745949.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

796

776

5746358.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

389

374

5746530.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

92

92

5746717.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

10,747

9,118

5746823.SQ.FTS.B,

Zero

Cpn,

1/27/24

...

464

454

5749019.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

270

247

5750319.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

103

100

5750330.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

5,214

4,973

5750543.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

3,815

3,707

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5750868.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

$

496

$

436

5751039.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

6,891

6,705

5751352.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

2,388

2,267

5751520.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

2,991

299

5751907.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

1,225

1,217

5752156.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

989

236

5752502.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

2,876

2,210

5752558.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

3,257

3,219

5752717.SQ.FTS.B,

Zero

Cpn,

1/28/24

...

2,554

2,258

5753497.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

261

260

5753743.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

549

495

5754310.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,172

678

5754339.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

3,403

3,046

5754783.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

2,767

1,649

5754815.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,746

1,415

5754944.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

1,613

1,584

5755010.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

216

212

5755282.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

482

400

5755324.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

174

126

5755417.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

2,702

2,355

5755879.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

6,445

4,401

5756120.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

7,554

7,058

5756221.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

46,960

18,767

5756610.SQ.FTS.B,

Zero

Cpn,

1/29/24

...

4,983

2,662

5756833.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

3,036

2,285

5756880.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

529

488

5757071.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

1,500

1,238

5757091.SQ.FTS.B,

Zero

Cpn,

1/30/24

...

6,676

6,257

5757607.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

9,346

1,008

5757861.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

2,126

2,040

5758046.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

7,129

6,568

5758228.SQ.FTS.B,

Zero

Cpn,

1/31/24

...

893

876

5758291.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

5,772

1,947

5758638.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,976

3,837

5759071.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,670

1,644

5759456.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

3,232

2,706

5759876.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,564

1,547

5760007.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

2,152

1,153

5760099.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,501

1,463

5760713.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,115

1,087

5760954.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

2,824

1,176

5761379.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,202

1,171

5761579.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

2,343

2,227

5761857.SQ.FTS.B,

Zero

Cpn,

2/01/24

...

1,468

1,432

5763172.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

6,322

2,904

5763445.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

7,638

6,798

5763642.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

609

425

5763654.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,437

2,171

5763748.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,898

2,855

5764377.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

11,414

11,231

5764702.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

412

403

5764817.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,259

638

5765151.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,166

983

5765451.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

2,999

2,949

5765671.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

1,972

1,777

5765693.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

7,195

7,040

5765966.SQ.FTS.B,

Zero

Cpn,

2/02/24

...

5,343

2,904

5766257.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,349

1,288

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5766290.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

$

5,383

$

5,085

5767311.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,228

1,061

5767488.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,233

673

5767710.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

310

299

5767724.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,712

2,557

5768373.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

797

762

5768433.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

1,747

1,602

5769057.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

2,884

2,107

5769533.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

19,452

14,479

5769683.SQ.FTS.B,

Zero

Cpn,

2/03/24

...

10,507

9,436

5771803.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

928

646

5772634.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

77

76

5772653.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

5,977

5,794

5773116.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

3,729

897

5773499.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

5,931

5,813

5774293.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

763

748

5774528.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

1,800

1,680

5774609.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

13,311

12,341

5775189.SQ.FTS.B,

Zero

Cpn,

2/04/24

...

915

907

5775492.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,183

1,844

5775609.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

791

779

5775623.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

24,601

23,619

5776756.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,323

2,283

5777081.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

5,106

5,057

5777289.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

935

902

5777318.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

27,541

25,882

5777772.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

11,324

3,434

5777894.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

482

386

5777925.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

878

868

5777989.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

1,210

1,156

5778008.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

5,626

5,340

5778275.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,706

2,271

5778432.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

1,194

1,147

5778771.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,253

2,193

5778873.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

3,465

2,876

5778936.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

2,814

2,213

5779041.SQ.FTS.B,

Zero

Cpn,

2/05/24

...

238

237

5779208.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

1,553

1,532

5779366.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

3,340

3,221

5779419.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

3,646

3,350

5779893.SQ.FTS.B,

Zero

Cpn,

2/06/24

...

4,848

4,492

5780063.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

32

31

5780263.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

9,814

6,369

5780470.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

815

726

5780501.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

13,807

10,626

5780663.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

727

712

5780683.SQ.FTS.B,

Zero

Cpn,

2/07/24

...

40

39

5781142.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

8,397

5,564

5781951.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

4,019

2,704

5782060.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,787

5,637

5783310.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,658

1,517

5783381.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

194

183

5783477.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,622

1,191

5783554.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

1,197

619

5783602.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

10,169

9,953

5784327.SQ.FTS.B,

Zero

Cpn,

2/08/24

...

5,992

5,651

5784874.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

3,818

1,376

5785803.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,299

1,259

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5786113.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

$

6,666

$

6,221

5786523.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

7,880

7,481

5787282.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,587

1,560

5787444.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

2,717

2,589

5787643.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

22,246

21,753

5788546.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,344

1,308

5788576.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,945

1,885

5788750.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

1,953

1,940

5788894.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

3,410

3,235

5788939.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

3,320

3,277

5789241.SQ.FTS.B,

Zero

Cpn,

2/09/24

...

11,270

10,154

5790851.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

3,495

3,389

5791689.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,729

1,507

5791778.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,821

1,759

5792518.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

16,456

1,870

5793338.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

14,528

13,485

5794983.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

1,137

899

5795007.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

6,167

5,657

5795364.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

89

86

5795663.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

5,253

5,133

5796001.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

696

606

5796148.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

9,050

8,990

5796718.SQ.FTS.B,

Zero

Cpn,

2/10/24

...

22,401

20,189

5801829.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,441

1,428

5802221.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

554

540

5802241.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

320

319

5802478.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

7,637

4,061

5803237.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,472

2,322

5803548.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

149

144

5803583.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

4,225

4,038

5803935.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

2,114

2,079

5804981.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

236

211

5805008.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,869

1,812

5805153.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

4,572

3,948

5805258.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

5,667

5,058

5806252.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

4,114

2,941

5806298.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,505

1,443

5806339.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,771

1,748

5806427.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

11,480

9,655

5806712.SQ.FTS.B,

Zero

Cpn,

2/11/24

...

1,359

1,343

5807056.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,958

1,672

5807888.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

3,244

3,118

5809201.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

718

525

5809584.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

3,215

3,144

5810334.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

2,928

2,832

5810852.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

3,700

2,991

5811386.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

22,359

21,003

5812068.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

10,005

7,905

5812232.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

17,681

17,412

5812645.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

21,862

7,591

5812884.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,063

1,006

5813184.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

1,676

832

5813253.SQ.FTS.B,

Zero

Cpn,

2/12/24

...

7,952

4,754

5813372.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,424

1,396

5813462.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

2,502

1,854

5813492.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

3,316

3,086

5813600.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

1,035

1,020

5813707.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

10,336

10,145

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

41

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5814016.SQ.FTS.B,

Zero

Cpn,

2/13/24

...

$

3,567

$

2,833

5814092.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

2

2

5814180.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

3,917

3,831

5814332.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

177

172

5814411.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

7,162

6,986

5814576.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

2,223

1,960

5814719.SQ.FTS.B,

Zero

Cpn,

2/14/24

...

9,167

8,016

5815259.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

3,705

3,581

5815447.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

8,603

3,207

5815722.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

3,985

3,319

5816754.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,424

1,400

5816945.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

6,560

6,210

5817070.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

30,140

12,281

5817474.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

1,056

614

5817665.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

7,500

7,228

5818002.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

5,104

4,879

5818388.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

488

476

5818433.SQ.FTS.B,

Zero

Cpn,

2/15/24

...

3,697

3,600

5819068.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

2,796

2,691

5819322.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

480

383

5819327.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,355

1,321

5819453.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

4,851

3,617

5819614.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,452

1,421

5819783.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

32,595

29,515

5820456.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

245

241

5820960.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

224

219

5820980.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

678

553

5821035.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

3,686

3,636

5821105.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,771

1,737

5821163.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

6,460

5,328

5821405.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,077

1,060

5821479.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

8,455

8,189

5821715.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

5,748

5,667

5821898.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

255

253

5822008.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,075

986

5822090.SQ.FTS.B,

Zero

Cpn,

2/16/24

...

1,162

1,148

5822407.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,991

1,742

5822641.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,791

1,774

5822817.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

7,097

6,458

5823030.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,162

1,006

5823084.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,723

1,651

5823283.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

590

531

5823345.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,884

814

5823515.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,382

1,306

5823613.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,398

1,197

5823665.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

835

828

5823710.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,534

913

5824742.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

3,362

2,058

5824788.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

1,386

1,355

5824880.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

496

492

5825002.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

35,998

14,733

5825354.SQ.FTS.B,

Zero

Cpn,

2/17/24

...

5,154

1,846

5827842.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

7,668

1,914

5828601.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

5,605

5,423

5828896.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

2,638

2,565

5828926.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

17,907

11,991

5829358.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

5,980

5,802

5829566.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,030

975

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5829638.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

$

2,477

$

1,865

5829709.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

2,277

2,125

5830037.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

3,386

3,323

5830080.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,591

812

5830253.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

4,225

4,087

5830300.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

10,132

9,851

5830440.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

2,598

1,195

5830467.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

1,440

1,358

5830547.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

8,812

7,913

5830672.SQ.FTS.B,

Zero

Cpn,

2/18/24

...

8,218

7,070

5830986.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

260

255

5831025.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,300

1,225

5831192.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,914

1,301

5831389.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

351

346

5831833.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,952

2,800

5832209.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

26,406

10,589

5832576.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

323

246

5832609.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,194

1,763

5832873.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

4,757

4,660

5832969.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

594

589

5833299.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,181

1,151

5833417.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

7,855

7,454

5833530.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

1,187

1,174

5833657.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

2,888

2,847

5833703.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

7,016

6,583

5833785.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

9,357

8,919

5834028.SQ.FTS.B,

Zero

Cpn,

2/19/24

...

874

554

5834294.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,536

1,358

5834318.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

8,185

4,572

5834411.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

4,952

4,323

5834476.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

2,151

2,023

5834960.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

5,329

5,266

5835079.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

683

247

5835205.SQ.FTS.B,

Zero

Cpn,

2/20/24

...

1,643

1,506

5835279.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

1,783

1,557

5835313.SQ.FTS.B,

Zero

Cpn,

2/21/24

...

4,609

4,517

5836225.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,355

1,282

5836564.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,331

1,252

5836920.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

16,289

13,674

5837211.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,901

1,501

5837252.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,427

406

5837271.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

809

783

5837315.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

4,547

869

5837346.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

8,070

5,455

5837545.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

1,701

1,622

5837759.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

2,104

1,999

5837933.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

752

433

5837962.SQ.FTS.B,

Zero

Cpn,

2/22/24

...

4,321

3,872

5839801.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

151

149

5839815.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

744

383

5839822.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

6,334

5,891

5839979.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,766

4,633

5840394.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

7,735

3,168

5840460.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

215

208

5840501.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

705

671

5840821.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,679

2,743

5840915.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

8,514

8,138

5841516.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

25,982

23,863

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5841824.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

$

1,220

$

1,086

5841864.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

206

197

5841881.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,275

1,983

5841927.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

4,020

3,687

5842048.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

985

916

5842093.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

1,999

971

5842110.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

980

230

5842131.SQ.FTS.B,

Zero

Cpn,

2/23/24

...

2,185

2,119

5843371.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,440

2,351

5843433.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

5,921

5,815

5843590.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

3,344

3,191

5844026.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

9,562

9,352

5844243.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,623

2,595

5844419.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

846

739

5844459.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,334

1,040

5844473.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

506

500

5844510.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

4,582

4,384

5844650.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,446

1,179

5844889.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

6,265

6,111

5845320.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,451

1,424

5845343.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

34,394

32,280

5845971.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,303

1,208

5846004.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,310

2,245

5846033.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

1,190

1,135

5846077.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

2,073

1,973

5846195.SQ.FTS.B,

Zero

Cpn,

2/24/24

...

721

713

5848226.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

9,607

9,431

5848551.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

8,038

7,806

5848782.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

497

463

5848826.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,265

1,207

5848879.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

4,338

4,279

5849073.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,438

1,412

5849234.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

4,105

3,736

5849462.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

165

164

5849709.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,309

1,007

5850047.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

317

314

5850061.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,404

825

5850076.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

7,542

6,618

5850145.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

2,016

1,964

5850429.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

9,973

8,729

5850831.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

16,595

14,608

5851083.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

6,731

6,601

5851616.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

350

324

5851647.SQ.FTS.B,

Zero

Cpn,

2/25/24

...

1,712

1,215

5851929.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,411

1,765

5851937.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

550

518

5852027.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,366

732

5852374.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

5,716

5,452

5852610.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,137

241

5852786.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

905

819

5852840.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

5,532

4,237

5852937.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

516

338

5853330.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

5,637

4,334

5853413.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

88

86

5853422.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

1,496

1,467

5853518.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

19,831

18,291

5853740.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,104

551

5853750.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

6,976

6,780

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5853859.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

$

44,907

$

34,342

5854209.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

309

297

5854219.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

3,886

3,121

5854288.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

2,048

1,771

5854311.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

6,929

6,018

5854366.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

819

807

5854386.SQ.FTS.B,

Zero

Cpn,

2/26/24

...

9,627

5,155

5855181.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

2,198

2,155

5855237.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

256

232

5855240.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

8,714

6,985

5855318.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

6,849

6,216

5855428.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

349

342

5855442.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

7,250

6,196

5855555.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

571

494

5855634.SQ.FTS.B,

Zero

Cpn,

2/27/24

...

18,210

16,028

5855858.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,854

1,083

5855867.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

822

608

5855877.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,720

1,650

5855903.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

849

720

5855911.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,931

1,742

5855925.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

3,540

2,989

5856032.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,711

4,530

5856088.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,913

4,647

5856151.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

3,012

2,556

5856167.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

2,773

2,470

5856236.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

5,747

5,669

5856353.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,714

1,238

5856360.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

1,421

388

5856372.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

961

848

5856382.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

11,984

10,079

5856462.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

4,808

4,581

5856562.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

729

265

5856565.SQ.FTS.B,

Zero

Cpn,

2/28/24

...

495

467

5856576.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,162

946

5856586.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,046

862

5856788.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,953

2,856

5856978.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,930

3,941

5857039.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,330

1,271

5857087.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,803

4,123

5857392.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,340

1,312

5857475.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,148

1,097

5860503.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,425

2,368

5860639.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,130

2,034

5860791.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

642

638

5860847.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,495

2,356

5860913.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,862

3,610

5861025.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,363

2,124

5861125.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

619

236

5861134.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

28,273

24,402

5861962.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

166

157

5861986.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

712

661

5862041.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

573

558

5862058.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

12,112

11,985

5862428.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,115

1,100

5862485.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,892

3,537

5862589.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,955

1,835

5862628.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

137

133

5862630.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

5,065

3,610

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

43

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5862693.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

$

3,386

$

3,081

5862734.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

11,369

11,168

5862950.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,369

1,267

5862969.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,497

3,432

5863049.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

7,829

7,521

5863319.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

825

703

5863356.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,057

1,030

5863373.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,478

2,361

5863415.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,311

6,038

5863548.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,400

3,276

5863628.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

693

656

5863665.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

762

750

5863729.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

11,598

10,948

5863869.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

9,910

9,636

5864060.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,358

6,085

5864228.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,114

5,989

5864327.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4

4

5864352.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

935

923

5865278.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,388

2,348

5865366.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

51

47

5865381.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,158

1,123

5865470.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,546

1,486

5865593.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

16,002

13,729

5865907.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,254

1,195

5865934.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

336

322

5866142.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

4,026

3,680

5866235.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

12,265

11,630

5866310.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

26,930

17,035

5866568.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,915

1,789

5866762.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

7,698

7,496

5866864.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

3,263

2,028

5866921.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

1,464

1,435

5866944.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

14,207

11,835

5867135.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

6,474

5,811

5867175.SQ.FTS.B,

Zero

Cpn,

2/29/24

...

2,502

2,443

5870201.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

21,646

21,421

5871444.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,081

1,074

5871545.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

834

410

5871796.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

13,046

11,946

5872044.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

766

746

5872177.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,729

1,698

5872312.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

627

596

5872318.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

450

424

5872351.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

967

948

5872378.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

248

214

5872385.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

789

756

5872477.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,818

1,767

5872494.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

11,883

8,091

5872625.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,761

1,190

5872980.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,552

1,525

5872993.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,239

2,118

5873069.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

2,794

2,747

5873138.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

3,376

2,669

5873189.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,924

1,363

5873315.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

4,591

3,789

5873613.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

7,417

6,348

5873758.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

7,212

5,415

5873819.SQ.FTS.B,

Zero

Cpn,

3/01/24

...

1,584

805

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5874283.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

$

1,381

$

1,149

5874329.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,242

481

5874482.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

657

136

5874516.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,608

1,307

5874556.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

850

839

5874700.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

4,155

4,003

5874834.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

4,160

4,073

5875168.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,475

1,242

5875319.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,364

2,184

5875427.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

348

298

5875429.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

6,887

6,592

5875785.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,484

1,119

5875789.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

590

574

5875826.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

329

318

5875867.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,804

1,765

5876036.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,748

3,495

5876115.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

2,718

2,640

5876285.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

3,557

3,378

5876406.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

766

722

5876475.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,229

1,228

5877063.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

973

770

5877065.SQ.FTS.B,

Zero

Cpn,

3/02/24

...

1,028

779

5877199.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

3,944

3,620

5877347.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

1,002

965

5877458.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

9,040

8,436

5877714.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

1,446

1,393

5877738.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

2,908

2,704

5877776.SQ.FTS.B,

Zero

Cpn,

3/03/24

...

969

315

5878075.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

888

881

5878138.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

3,629

3,530

5878223.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

2,084

2,050

5878297.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

1,683

1,157

5878314.SQ.FTS.B,

Zero

Cpn,

3/04/24

...

8,229

7,442

5878689.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,579

1,523

5878776.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

436

428

5878790.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

3,209

3,140

5878846.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

1,113

819

5878952.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

324

305

5879023.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

269

266

5879045.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

2,584

2,526

5879122.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

319

77

5879150.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

3,147

3,028

5879290.SQ.FTS.B,

Zero

Cpn,

3/05/24

...

4,340

4,092

5879597.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

2,695

2,641

5881194.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

350

332

5881215.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

2,024

1,978

5881542.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

10,826

10,641

5881995.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

610

604

5882844.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,165

420

5882869.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,564

1,437

5882889.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

2,589

2,224

5882928.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

128

127

5882935.SQ.FTS.B,

Zero

Cpn,

3/06/24

...

1,487

1,450

5883001.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

22,871

21,885

5883334.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,109

623

5883652.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,460

2,297

5883707.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,333

2,217

5883767.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

9,253

8,556

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5883938.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

$

497

$

475

5884117.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

947

626

5884159.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,424

1,317

5884190.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

19,312

14,993

5884450.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,794

2,665

5884477.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,483

470

5884558.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

7,494

7,300

5884736.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

9,071

8,902

5884916.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

751

675

5884947.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

4,478

4,256

5885192.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

2,394

699

5885237.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

603

572

5885297.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,077

1,004

5885371.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

7,857

7,721

5885570.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

10,148

9,915

5885799.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

4,503

4,399

5885850.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

1,838

1,737

5885879.SQ.FTS.B,

Zero

Cpn,

3/07/24

...

3,632

3,563

5887879.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

9,851

9,686

5888804.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,336

1,968

5888851.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

483

474

5888881.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,587

900

5889031.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

809

796

5889080.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

771

742

5889273.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

12,388

11,832

5889436.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

22,177

11,467

5889597.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,660

1,297

5889640.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

7,557

7,420

5889750.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,193

1,126

5889804.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,991

3,836

5889875.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

914

558

5889963.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

1,260

1,128

5889976.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

6,748

3,518

5890012.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

13,846

13,577

5890413.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,957

2,045

5890488.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

5,145

4,591

5890615.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

828

587

5890643.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

21,147

19,307

5890904.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

91

85

5890961.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

3,371

3,281

5891203.SQ.FTS.B,

Zero

Cpn,

3/08/24

...

2,391

2,288

5891237.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,732

1,707

5891279.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

775

701

5891294.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,295

1,260

5891408.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,296

2,261

5891419.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

38,335

32,518

5892149.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

6,706

6,489

5892295.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,688

2,214

5892308.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,035

1,224

5892370.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,823

4,648

5892438.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

3,275

2,566

5892565.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

203

200

5892624.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,187

2,221

5893222.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

214

213

5893496.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,110

1,103

5893541.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

4,112

1,652

5893549.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,744

1,586

5893590.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

320

316

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5893657.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

$

4,105

$

3,188

5893804.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

328

324

5893815.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,195

130

5893845.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,835

1,766

5893929.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

788

407

5893961.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

176

173

5894019.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

1,608

1,020

5894091.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,167

1,250

5894137.SQ.FTS.B,

Zero

Cpn,

3/09/24

...

2,882

2,759

5894435.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

285

278

5894525.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

7,398

7,246

5894683.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

1,653

1,629

5894734.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

2,035

1,858

5894983.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

1,033

764

5895088.SQ.FTS.B,

Zero

Cpn,

3/10/24

...

7,642

6,193

5895353.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

4,893

4,539

5895576.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

4,937

4,723

5895712.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

3,284

3,177

5895783.SQ.FTS.B,

Zero

Cpn,

3/11/24

...

1,798

1,651

5896008.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

233

231

5896158.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

2,342

2,310

5896558.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

2,277

2,146

5897504.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,961

1,838

5897545.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

7,254

7,005

5897823.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,893

1,792

5897891.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

215

204

5897943.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,839

1,776

5898152.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

1,795

1,676

5898206.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

5,418

5,306

5898320.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

8,262

5,033

5898446.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

12,962

12,557

5898769.SQ.FTS.B,

Zero

Cpn,

3/12/24

...

21,421

16,094

5899288.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

218

211

5899301.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

20,884

20,379

5899791.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

148

147

5899826.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,245

2,128

5900021.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

950

896

5900093.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

2,536

1,622

5900145.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

232

230

5900369.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

462

412

5900390.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

18,017

14,064

5900600.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

7,701

4,814

5900766.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

14,554

13,465

5900915.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

242

240

5900918.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,790

5,330

5900989.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,386

3,249

5901073.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

5,366

5,184

5901345.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

4,609

3,357

5901389.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

3,748

3,632

5902038.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

445

419

5902092.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

4,348

4,270

5902210.SQ.FTS.B,

Zero

Cpn,

3/13/24

...

4,739

4,166

5902514.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

562

540

5903081.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,323

1,289

5903117.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,111

2,068

5903341.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,143

1,113

5903364.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

3,363

3,315

5903521.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,018

900

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

45

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5903542.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

$

2,777

$

2,738

5903653.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,430

1,347

5903660.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

14,256

13,907

5903864.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,296

405

5904045.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

946

905

5904231.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

1,030

961

5904259.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,310

2,198

5904548.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,160

2,117

5904620.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

9,472

9,137

5905047.SQ.FTS.B,

Zero

Cpn,

3/14/24

...

2,504

2,476

5906768.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,912

1,843

5907039.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

979

934

5907084.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

8,518

7,904

5907608.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,108

3,975

5908240.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

5,278

5,113

5908488.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

732

707

5908510.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,003

975

5908547.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,818

1,731

5908583.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,744

3,943

5908638.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

1,291

1,228

5908659.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

552

542

5909132.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

2,142

1,953

5909190.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

877

845

5909223.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

16,116

15,520

5909637.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

4,283

4,210

5909898.SQ.FTS.B,

Zero

Cpn,

3/15/24

...

379

374

5910111.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

8,350

6,458

5910344.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

1,116

1,052

5910415.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

1,770

1,742

5910733.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

5,271

5,109

5910869.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

7,242

5,717

5911018.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

457

448

5911038.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

721

709

5911080.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

816

798

5911116.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

19,857

15,777

5911495.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

39,916

38,348

5911900.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,690

2,576

5911917.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,421

3,341

5912024.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,514

3,440

5912389.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

8,356

8,101

5912573.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

7,038

6,839

5912644.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

442

431

5912706.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

12,868

12,225

5912908.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

2,650

2,536

5912999.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

3,730

3,648

5913035.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

21,884

19,793

5913254.SQ.FTS.B,

Zero

Cpn,

3/16/24

...

7,365

7,127

5913407.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

3,385

3,267

5913461.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

291

280

5913481.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

279

275

5913539.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

4,735

4,537

5913641.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,092

1,074

5913655.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

5,587

5,443

5913759.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,562

1,518

5913838.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

6,574

6,242

5913989.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

1,713

1,586

5914043.SQ.FTS.B,

Zero

Cpn,

3/17/24

...

421

412

5914271.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,016

861

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5914290.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

$

4,717

$

2,958

5914330.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

668

656

5914387.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

884

756

5914396.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

1,467

761

5914411.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

3,560

2,620

5914444.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

5,935

5,590

5914535.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

7,115

4,101

5914576.SQ.FTS.B,

Zero

Cpn,

3/18/24

...

2,470

2,372

5915212.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,124

1,093

5915290.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

5,009

4,924

5915505.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

16,318

9,440

5915817.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,291

904

5915849.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

7,401

7,190

5916146.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

777

746

5916984.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

6,174

5,246

5917148.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

10,596

7,359

5917707.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

3,463

2,908

5917741.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,737

1,616

5917799.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

14,230

13,963

5918081.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,932

861

5918143.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

3,162

3,024

5918248.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

2,754

2,710

5918362.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

8,220

7,834

5918436.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

424

413

5918443.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

1,784

1,755

5918534.SQ.FTS.B,

Zero

Cpn,

3/19/24

...

13,622

8,800

5918756.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,987

3,202

5918793.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,939

1,894

5918832.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,897

3,740

5918954.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,027

1,012

5918990.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,414

3,169

5919215.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,378

3,326

5919584.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,852

2,789

5919614.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

695

666

5919638.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,936

3,817

5919673.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

3,078

2,779

5919710.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,309

1,283

5919739.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

669

478

5919774.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

8,396

8,136

5920829.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,433

927

5921220.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

961

740

5921268.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

628

613

5921285.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,698

2,662

5921428.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

2,688

2,020

5921781.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

102

100

5921786.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

4,525

3,941

5921872.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,685

1,655

5921918.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

13,399

12,576

5922194.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

1,907

1,826

5922328.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

6,191

6,053

5922564.SQ.FTS.B,

Zero

Cpn,

3/20/24

...

842

819

5922627.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

9,229

9,141

5923022.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

1,619

1,506

5923047.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

831

807

5923203.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,399

7,240

5923394.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,593

2,554

5923448.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

206

204

5923487.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

17,580

17,247

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5923878.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

$

1,675

$

1,607

5923896.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,900

7,621

5924262.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

1,106

724

5924268.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

108

108

5924327.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

965

882

5924388.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

827

778

5924394.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

7,153

6,825

5924508.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

1,031

1,010

5924530.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,789

2,675

5924782.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

6,708

6,271

5924891.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

4,546

4,349

5924934.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

625

591

5925048.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

5,812

5,687

5925223.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

2,316

2,253

5925421.SQ.FTS.B,

Zero

Cpn,

3/21/24

...

10,978

10,497

5927005.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,913

2,830

5927323.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,427

5,316

5927812.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

952

913

5927900.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

1,958

1,594

5927931.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,858

5,620

5928081.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

11,939

9,639

5928311.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

5,938

5,677

5928459.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

3,514

3,466

5928628.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

1,593

501

5928641.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,615

2,559

5928731.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

11,641

11,375

5928964.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

1,869

1,792

5929041.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

2,137

1,458

5929388.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

46,998

42,463

5930281.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

3,738

3,323

5930510.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

10,384

10,282

5930747.SQ.FTS.B,

Zero

Cpn,

3/22/24

...

6,628

6,037

5930851.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

7,699

6,107

5930895.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,627

1,592

5931040.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,505

3,369

5931080.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

800

776

5931412.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

484

471

5931517.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,499

2,361

5931541.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

802

793

5931664.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

947

936

5931689.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

5,730

5,569

5931806.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

56

55

5931818.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,465

2,306

5931905.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

3,190

3,089

5931964.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

2,077

2,050

5932026.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,736

1,690

5932230.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,342

1,260

5932279.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

272

243

5932293.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,223

1,153

5932569.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,625

1,528

5932601.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

948

830

5932622.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

370

341

5932633.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

1,478

717

5932677.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

6,753

6,613

5932876.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

7,042

6,765

5933094.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

7,398

7,294

5933493.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

953

807

5933571.SQ.FTS.B,

Zero

Cpn,

3/23/24

...

11,213

10,768

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5933888.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

$

1,819

$

1,783

5933926.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

340

317

5933972.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,687

5,022

5934009.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,215

1,939

5934044.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,186

1,671

5934059.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

1,331

223

5934070.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

288

280

5934080.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,459

2,383

5934117.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,793

2,741

5934186.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

614

610

5934219.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

28,211

21,911

5934416.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

2,565

2,382

5934438.SQ.FTS.B,

Zero

Cpn,

3/24/24

...

5,162

5,038

5934579.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

181

176

5934701.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

1,634

445

5934730.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

2,564

371

5934767.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

12,515

11,133

5934895.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

1,894

1,867

5934944.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

10,935

9,011

5935049.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

497

489

5935068.SQ.FTS.B,

Zero

Cpn,

3/25/24

...

12,429

11,141

5935505.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,639

1,587

5935673.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

975

951

5935851.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

9,543

9,265

5936150.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,521

5,436

5936844.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

286

263

5936902.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,373

441

5936923.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

9,927

4,166

5937030.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

160

159

5937124.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

256

42

5937145.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

488

468

5937189.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

369

362

5937439.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,633

1,581

5937475.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,936

525

5937833.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

3,184

3,107

5937918.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

722

713

5937927.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,498

1,450

5937996.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

630

621

5938005.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,372

1,340

5938155.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,292

1,229

5938166.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,339

1,316

5938253.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

533

523

5938321.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

4,570

4,125

5938564.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

1,359

1,317

5938584.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

6,806

5,706

5938667.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

9,004

4,916

5938739.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

5,782

5,695

5938983.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

3,596

3,478

5939062.SQ.FTS.B,

Zero

Cpn,

3/26/24

...

181

178

5939429.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,737

2,397

5939447.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

11,117

10,837

5939494.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,794

1,766

5939542.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

8,278

7,235

5939663.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

14,951

14,489

5939824.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

3,745

3,243

5939895.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

5,749

5,629

5940029.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,895

2,857

5940153.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

142

142

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

47

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5940224.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

$

26,857

$

26,211

5940582.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

11,230

10,086

5940667.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

812

92

5940679.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,091

880

5940682.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

10,648

10,099

5940736.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,454

1,407

5940780.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

565

547

5940805.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

966

884

5940809.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,248

499

5940822.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

1,895

1,883

5940907.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

5,759

5,635

5941017.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

5,738

5,642

5941367.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

7,227

6,738

5941415.SQ.FTS.B,

Zero

Cpn,

3/27/24

...

2,932

2,894

5942908.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,919

1,861

5943004.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

687

484

5943067.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

651

492

5943120.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,118

1,064

5943210.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,586

4,491

5943309.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,421

3,352

5943421.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,665

2,603

5943656.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,276

5,090

5943919.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

110

107

5943947.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,931

738

5944014.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

263

260

5944020.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

5,027

3,416

5944130.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,504

3,211

5944176.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

8,939

8,482

5944394.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,843

1,712

5944413.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

79

78

5944449.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

18,991

18,756

5945082.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,751

2,231

5945097.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,586

2,522

5945214.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,030

966

5945226.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,849

3,474

5945294.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,071

695

5945299.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

26,131

22,235

5945497.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

3,527

3,450

5945528.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

539

440

5945529.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

4,342

4,010

5945707.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,126

1,107

5945798.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

2,047

1,917

5945819.SQ.FTS.B,

Zero

Cpn,

3/28/24

...

1,520

1,453

5948341.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

2,522

2,091

5948365.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

30,641

29,262

5950059.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

3,393

3,283

5950178.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

398

347

5950198.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

2,015

1,945

5950244.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

30,087

20,908

5950686.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

887

731

5950688.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

9,081

7,105

5950961.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

24,271

23,691

5951844.SQ.FTS.B,

Zero

Cpn,

3/29/24

...

2,261

2,215

5952328.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

783

754

5952419.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,535

4,293

5952624.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,449

1,385

5952674.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,328

1,308

5952782.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,211

1,072

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5952845.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

$

2,786

$

2,736

5952964.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

3,874

3,706

5953097.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,059

692

5953124.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

576

569

5953602.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

2,725

2,640

5953666.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,048

4,005

5954092.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,171

4,051

5954189.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,930

1,839

5954440.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

8,106

6,379

5954764.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

1,494

1,431

5954808.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

4,632

4,481

5954932.SQ.FTS.B,

Zero

Cpn,

3/30/24

...

9,783

9,506

5955474.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

511

503

5955510.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

3,155

3,077

5955563.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

8,359

4,755

5955675.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

278

271

5955692.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

8,618

8,450

5955961.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

642

617

5955984.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

1,969

1,943

5956098.SQ.FTS.B,

Zero

Cpn,

4/01/24

...

3,087

3,048

5956268.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

687

593

5956367.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

813

795

5956445.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

2,072

1,996

5956507.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

248

246

5956601.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,522

1,243

5956650.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

619

544

5956673.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

1,523

1,494

5956764.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

2,086

2,044

5956888.SQ.FTS.B,

Zero

Cpn,

4/02/24

...

2,980

2,422

5957186.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,843

1,727

5957515.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

2,606

2,304

5957742.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

15,581

14,692

5958935.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,466

1,387

5959009.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

806

462

5959036.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,645

1,537

5959488.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,521

1,475

5959640.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

4,089

4,032

5959931.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

1,706

1,183

5959978.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

3,059

1,646

5960434.SQ.FTS.B,

Zero

Cpn,

4/03/24

...

514

358

5960600.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,076

2,058

5960772.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,968

1,949

5961004.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

12,844

10,397

5961340.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

3,433

3,384

5961977.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,201

1,185

5962024.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

9,892

9,546

5962366.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,617

1,652

5962409.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

984

939

5962481.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

34,954

33,182

5963604.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

64

63

5963611.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

3,541

3,436

5963691.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,128

1,058

5963712.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

1,907

1,773

5963750.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

886

612

5963754.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

2,639

2,471

5963816.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

76

76

5963929.SQ.FTS.B,

Zero

Cpn,

4/04/24

...

370

338

5964017.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,401

1,188

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5964109.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

$

7,831

$

4,853

5964510.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

3,078

3,015

5964730.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,987

1,868

5964871.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,969

2,783

5964927.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

334

330

5965068.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,733

2,669

5965311.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

13,812

13,597

5965973.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,259

2,204

5966156.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

4,422

2,711

5966242.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

7,422

7,034

5966519.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

2,698

2,648

5966610.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

203

199

5966637.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,543

1,488

5966711.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

1,482

1,458

5967124.SQ.FTS.B,

Zero

Cpn,

4/05/24

...

5,578

5,355

5971133.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

5,582

5,085

5971214.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

560

485

5971229.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

2,081

2,035

5971333.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

6,570

6,368

5971626.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,968

1,897

5971780.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

308

300

5971988.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

1,571

1,509

5972111.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

16,937

16,441

5972789.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

17,818

17,323

5974021.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

4,260

4,204

5974185.SQ.FTS.B,

Zero

Cpn,

4/06/24

...

9,094

8,943

5974741.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

22,386

21,727

5975563.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

1,108

1,091

5975969.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

4,837

2,151

5976083.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,081

3,004

5976212.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

1,238

1,216

5976873.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

2,915

2,133

5976923.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,252

3,141

5976956.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

2,853

2,745

5977010.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

1,145

1,077

5977024.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

3,233

1,417

5977033.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

421

407

5977392.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

997

944

5977411.SQ.FTS.B,

Zero

Cpn,

4/07/24

...

12,441

11,973

5978091.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

1,152

1,128

5978133.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

6,183

3,970

5978631.SQ.FTS.B,

Zero

Cpn,

4/08/24

...

776

606

5978898.SQ.FTS.B,

Zero

Cpn,

4/09/24

...

533

492

5978926.SQ.FTS.B,

Zero

Cpn,

4/09/24

...

16,268

11,029

5979513.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

2,181

2,040

5979619.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

5,383

4,147

5979958.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

745

718

5980012.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

1,882

1,767

5980129.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

777

743

5980160.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

997

972

5980216.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

865

539

5980287.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

3,796

3,702

5980376.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

3,143

3,096

5980582.SQ.FTS.B,

Zero

Cpn,

4/10/24

...

28,158

27,274

5981924.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

25,185

9,186

5983705.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

4,402

3,309

5983869.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

6,795

4,834

5984080.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

1,575

1,133

Description

Principal

Amount

Value

Block,

Inc.

(continued)

5984228.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

$

1,967

$

1,756

5984339.SQ.FTS.B,

Zero

Cpn,

4/11/24

...

1,453

1,414

5985165.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

2,462

2,190

5985249.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

963

938

5985306.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

11,265

10,226

5985801.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

7,109

6,820

5985903.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

366

359

5985949.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,087

1,058

5985976.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

391

389

5986027.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

3,616

1,225

5986141.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

512

506

5986173.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,940

1,851

5986220.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,480

1,179

5986627.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

780

714

5986989.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,781

1,329

5987019.SQ.FTS.B,

Zero

Cpn,

4/12/24

...

1,816

1,784

5989444.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,724

1,636

5989473.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

929

903

5989493.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

7,078

6,915

5989614.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

28,267

27,622

5990599.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,430

3,055

5990680.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,150

4,030

5990921.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,135

2,038

5990975.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,418

1,969

5990989.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

512

501

5990992.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,700

4,185

5991117.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,622

3,506

5991232.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,664

2,625

5991318.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,361

2,911

5991375.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,613

2,336

5991404.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

19,639

15,527

5991763.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

2,209

2,170

5991833.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,233

1,206

5991931.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

4,775

4,662

5992243.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

3,995

3,825

5992296.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

547

532

5992324.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

1,660

1,635

5992400.SQ.FTS.B,

Zero

Cpn,

4/13/24

...

349

340

5993197.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,124

1,091

5993243.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

11,321

11,041

5993648.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

3,439

3,259

5993795.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,412

847

5994006.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

901

885

5994552.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

443

437

5994648.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

5,071

4,909

5994798.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

2,578

2,166

5994965.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

6,466

5,743

5995064.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

8,586

8,279

5995759.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

102

96

5995769.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

4,698

3,354

5995853.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

7,553

2,073

5996001.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

7,331

6,812

5996185.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

2,414

2,350

5996250.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

1,725

1,684

5996290.SQ.FTS.B,

Zero

Cpn,

4/14/24

...

3,255

3,201

5996349.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

6,907

6,477

5996429.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

5,415

5,082

5996493.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

1,579

1,545

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

49

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

5996582.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

$

710

$

450

5996773.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

17,778

12,480

5996999.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

3,095

2,108

5997030.SQ.FTS.B,

Zero

Cpn,

4/15/24

...

1,925

1,879

5997362.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

4,562

4,380

5997474.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

2,100

2,068

5997515.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

6,979

6,689

5997632.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

3,316

3,204

5997690.SQ.FTS.B,

Zero

Cpn,

4/16/24

...

170

166

5998050.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

1,649

1,623

5998144.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

432

413

5998202.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

2,652

2,461

5998388.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

5,996

4,518

5998606.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

6,346

6,008

6000218.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

545

533

6000328.SQ.FTS.B,

Zero

Cpn,

4/17/24

...

2,618

1,210

6001471.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

1,062

1,017

6001519.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

3,963

3,258

6001714.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

1,745

1,507

6001776.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

4,286

4,200

6001985.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

1,050

847

6002029.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

2,444

2,294

6002150.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

10,872

10,657

6003017.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

953

939

6003194.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

5,438

5,281

6003390.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

20,368

19,268

6003974.SQ.FTS.B,

Zero

Cpn,

4/18/24

...

29,088

28,154

6004723.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

6,941

6,418

6004797.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

6,783

5,457

6005091.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

3,993

3,505

6005370.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

1,173

1,144

6005534.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

4,224

3,902

6005706.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

6,616

6,482

6005982.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

392

386

6006206.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

5,834

4,838

6006517.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

3,907

3,680

6006605.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

929

907

6006630.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

10,124

9,779

6007046.SQ.FTS.B,

Zero

Cpn,

4/19/24

...

6,354

6,322

6009386.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

8,084

7,641

6009857.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,245

2,185

6009976.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,903

4,681

6010285.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

3,707

2,048

6010469.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,564

1,537

6010572.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

6,145

3,317

6010664.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

3,888

3,519

6010702.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

344

252

6010705.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,090

2,850

6010780.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,573

890

6010910.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

1,061

1,036

6010969.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

2,098

2,055

6011195.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

4,337

3,925

6011326.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

791

779

6011452.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

3,929

3,854

6011561.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

8,804

4,570

6011639.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

3,434

3,015

6011660.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

45,156

40,287

6012418.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

962

714

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6012451.SQ.FTS.B,

Zero

Cpn,

4/20/24

...

$

10,707

$

10,451

6012736.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,755

2,281

6012819.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,187

1,043

6012841.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

8,159

6,587

6013007.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

967

953

6013116.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

7,971

7,759

6013523.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,925

2,869

6013970.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

304

299

6014045.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,020

3,805

6014197.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,384

278

6014205.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,108

1,941

6014228.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,952

1,741

6014290.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,297

4,216

6014624.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

405

394

6014633.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

961

877

6014649.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

2,984

2,816

6014998.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,326

1,302

6015199.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

4,540

4,283

6015528.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,060

1,042

6015584.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,762

1,670

6015614.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,393

1,379

6015695.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

1,340

956

6015748.SQ.FTS.B,

Zero

Cpn,

4/21/24

...

3,151

527

6015912.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

11,924

11,701

6016109.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

3,582

2,492

6016140.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

810

803

6016221.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

7,796

7,588

6016340.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

1,260

1,231

6016356.SQ.FTS.B,

Zero

Cpn,

4/22/24

...

331

323

6016703.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

5,009

4,920

6016884.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

3,088

2,905

6016939.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

4,265

4,085

6016989.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

3,849

3,750

6017086.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

2,154

2,034

6017118.SQ.FTS.B,

Zero

Cpn,

4/23/24

...

15,130

14,612

6017757.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

1,262

1,202

6017918.SQ.FTS.B,

Zero

Cpn,

4/24/24

...

24,155

22,684

6021186.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

5,951

5,801

6021430.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

15,242

6,494

6022160.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

25,996

25,299

6022999.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,070

843

6023184.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

927

663

6023209.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

11,416

10,624

6023580.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

2,795

2,777

6023754.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

886

852

6023827.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,651

1,593

6023884.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

3,616

3,469

6023977.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

1,430

1,289

6024013.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

10,452

9,799

6024177.SQ.FTS.B,

Zero

Cpn,

4/25/24

...

3,650

3,516

6024243.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

669

646

6024287.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

530

505

6024354.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

13,543

7,814

6024561.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

5,167

5,014

6024771.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

2,062

1,948

6024866.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

983

732

6024913.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

8,211

7,992

6025866.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

7,315

7,145

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6026095.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

$

750

$

739

6026147.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

3,727

3,692

6026339.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

39,026

31,198

6026840.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

1,853

1,805

6026900.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

5,510

5,324

6027029.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

21,328

9,063

6027258.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

5,349

5,164

6027430.SQ.FTS.B,

Zero

Cpn,

4/26/24

...

1,317

1,269

6029253.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

3,271

3,147

6029347.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

6,820

6,499

6029555.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

7,374

7,079

6029679.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

4,973

4,780

6030312.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

20,902

19,654

6031778.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

5,621

5,488

6032144.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

906

809

6032462.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

20,740

20,306

6032854.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

11,063

9,938

6032994.SQ.FTS.B,

Zero

Cpn,

4/27/24

...

5,632

5,272

6033284.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

3,318

3,163

6033361.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

2,037

2,011

6033485.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

20,694

20,470

6035066.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

226

221

6035348.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

8,377

7,115

6035583.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

2,721

2,569

6035704.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

893

861

6035742.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

7,817

7,175

6035865.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

2,607

2,565

6035913.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

9,101

8,858

6036186.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

14,538

13,581

6036579.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

2,575

2,493

6036662.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

2,688

2,589

6036796.SQ.FTS.B,

Zero

Cpn,

4/28/24

...

5,263

5,152

6036971.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

3,004

2,925

6037012.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

783

696

6037028.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

756

729

6037042.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

813

757

6037053.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

1,312

1,287

6037165.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

4,266

4,160

6037240.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

2,610

2,531

6037279.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

4,216

3,955

6037362.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

1,296

955

6037378.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

732

121

6037394.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

16,812

16,307

6037667.SQ.FTS.B,

Zero

Cpn,

4/29/24

...

2,818

2,763

6037727.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

3,055

2,930

6037756.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

2,264

2,176

6037888.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

4,801

4,703

6038015.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

5,181

5,009

6038105.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

207

203

6038142.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

11,231

10,670

6038351.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

966

772

6038361.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

3,014

2,081

6038845.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

2,322

2,238

6039085.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

8,941

8,609

6039429.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

4,529

4,257

6041210.SQ.FTS.B,

Zero

Cpn,

4/30/24

...

808

800

6041854.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

10,849

10,670

6042233.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

3,366

3,204

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6042494.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

$

1,854

$

1,363

6042857.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

5,303

5,134

6043009.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

3,427

3,223

6043250.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

1,419

665

6043309.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

2,133

1,940

6043373.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

2,973

2,905

6043473.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

11,232

11,025

6043867.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

11,134

10,136

6044422.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

2,890

2,799

6044545.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

1,821

1,641

6044600.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

5,033

4,811

6044705.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

17,855

17,488

6045271.SQ.FTS.B,

Zero

Cpn,

5/01/24

...

4,991

4,783

6045615.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

24,951

21,663

6046146.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

5,392

5,306

6046439.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

619

536

6046449.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

4,081

3,945

6046621.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

15,426

15,167

6047066.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

1,810

1,753

6047282.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

6,695

6,450

6047375.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

3,553

3,034

6047432.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

1,978

1,748

6047466.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

4,587

4,460

6047650.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

3,649

3,233

6047772.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

6,698

6,359

6047908.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

6,597

6,460

6048019.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

5,181

4,892

6048065.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

24,258

23,107

6048430.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

1,716

1,667

6048738.SQ.FTS.B,

Zero

Cpn,

5/02/24

...

369

364

6050900.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

20,613

19,658

6051255.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

5,480

5,268

6051478.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

197

195

6051494.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

11,271

10,766

6051957.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

2,236

2,163

6052021.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

1,111

1,095

6052051.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

600

585

6052148.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

369

167

6052166.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

5,950

5,835

6052422.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

5,122

4,741

6052515.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

367

338

6052931.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

607

599

6052991.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

4,260

4,153

6053179.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

16

16

6053228.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

873

829

6053297.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

3,622

3,473

6053494.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

937

917

6053603.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

9,492

8,387

6053802.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

5,251

5,084

6054275.SQ.FTS.B,

Zero

Cpn,

5/03/24

...

17,365

16,834

6054966.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

7,096

6,822

6055177.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,816

1,520

6055223.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

911

896

6055289.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,719

1,678

6055402.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,749

1,656

6055712.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

3,781

3,676

6055822.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

5,233

5,073

6055974.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

3,809

3,727

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

51

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6056074.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

$

3,070

$

3,007

6056160.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

3,432

3,339

6056291.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

556

536

6056341.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,047

1,031

6056392.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

18,755

18,514

6057191.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,471

1,430

6057410.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,528

1,492

6057421.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

5,432

5,268

6057823.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

18,586

13,818

6057935.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

1,847

1,776

6057976.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

2,209

1,527

6058082.SQ.FTS.B,

Zero

Cpn,

5/04/24

...

847

824

6058385.SQ.FTS.B,

Zero

Cpn,

5/05/24

...

2,817

2,165

6058413.SQ.FTS.B,

Zero

Cpn,

5/05/24

...

8,199

6,603

6059116.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

1,815

1,412

6059182.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

89

86

6059199.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

1,057

996

6059272.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

15,002

6,171

6059532.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

2,459

2,377

6059594.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

2,458

2,397

6059695.SQ.FTS.B,

Zero

Cpn,

5/06/24

...

2,688

2,554

6060282.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

2,298

2,207

6060482.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

5,279

5,132

6060917.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

4,456

3,452

6061385.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

4,772

4,383

6061646.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

1,202

1,167

6061696.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

5,662

5,134

6061957.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

3,558

3,277

6062135.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

365

361

6062190.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

4,586

4,366

6062279.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

17,440

16,957

6062718.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

313

208

6062754.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

875

838

6062790.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

648

629

6062815.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

8,364

8,172

6063087.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

4,312

3,441

6063486.SQ.FTS.B,

Zero

Cpn,

5/07/24

...

700

202

6064155.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

2,319

2,012

6064190.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

1,039

836

6064207.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

2,322

2,255

6064243.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

633

603

6064260.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

6,636

6,577

6064464.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

3,001

1,375

6064481.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

26,009

24,908

6065990.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

20,569

19,979

6066533.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

1,229

1,209

6066616.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

11,683

10,694

6066859.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

1,334

1,292

6066945.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

2,816

2,516

6066989.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

1,395

1,052

6067156.SQ.FTS.B,

Zero

Cpn,

5/08/24

...

427

342

6105833.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

429

389

6105858.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

52,138

41,213

6106878.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

8,622

7,681

6107120.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

7,808

5,172

6107298.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

10,227

9,907

6109297.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

5,613

5,522

6111911.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

8,255

7,928

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6120399.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

$

17,722

$

17,374

6120744.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

1,357

1,232

6120787.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

3,791

3,674

6120869.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

3,911

3,772

6120947.SQ.FTS.B,

Zero

Cpn,

5/09/24

...

3,462

3,159

6120978.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

876

801

6121001.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

17,874

17,420

6121348.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

9,421

9,348

6122243.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

9,970

9,545

6122550.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

391

370

6122601.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

1,417

1,396

6122683.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

9,407

1,704

6122851.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

6,385

5,290

6123750.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

1,802

1,747

6123828.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

18,424

17,067

6124061.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

786

753

6124080.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

4,149

4,075

6124197.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

5,801

5,200

6124341.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

357

296

6124549.SQ.FTS.B,

Zero

Cpn,

5/10/24

...

357

342

6124660.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

4,905

4,782

6124776.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

486

478

6124929.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

3,261

2,648

6125005.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

7,730

7,531

6125229.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

6,483

5,690

6125411.SQ.FTS.B,

Zero

Cpn,

5/11/24

...

42,788

21,215

6125976.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

11,647

11,200

6126187.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

2,037

1,924

6126210.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

4,585

4,457

6126292.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

5,384

4,886

6126359.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

8,911

8,758

6126543.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

844

697

6126561.SQ.FTS.B,

Zero

Cpn,

5/12/24

...

1,879

1,820

6126820.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

2,640

2,485

6126868.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

6,124

6,035

6127024.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

1,900

1,846

6127052.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

3,499

1,290

6127092.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

1,093

1,050

6127114.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

960

946

6127148.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

6,850

5,832

6127262.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

1,739

1,700

6127369.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

2,932

2,676

6127392.SQ.FTS.B,

Zero

Cpn,

5/13/24

...

1,892

1,846

6131364.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

452

424

6131376.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

7,134

6,498

6131498.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

507

481

6132461.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

293

286

6132479.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

7,986

7,805

6132964.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

419

406

6133001.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

300

294

6133021.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

3,328

2,787

6133073.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

2,549

2,366

6133138.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

35,007

31,610

6134462.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

14,242

13,385

6134627.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

14,094

13,644

6134736.SQ.FTS.B,

Zero

Cpn,

5/15/24

...

11,294

11,088

6134883.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

3,937

3,814

6134946.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

33,820

31,473

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6135663.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

$

3,964

$

3,888

6135870.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

7,904

7,727

6136040.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

2,030

1,899

6136089.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

1,308

354

6136118.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

2,289

2,040

6136162.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

1,804

1,726

6136274.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

809

779

6136327.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

2,485

2,330

6136426.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

1,424

1,378

6136511.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

7,298

6,282

6136693.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

3,078

2,431

6136797.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

5,455

5,239

6136859.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

7,481

7,131

6136958.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

3,918

3,728

6137027.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

5,308

5,113

6137120.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

3,562

3,148

6137151.SQ.FTS.B,

Zero

Cpn,

5/16/24

...

1,394

1,366

6139568.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

24,133

23,294

6139888.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

2,673

2,618

6139985.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

6,377

5,262

6140560.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

8,238

7,972

6140874.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

3,623

3,562

6141322.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

47,740

44,877

6142703.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

3,032

2,883

6142867.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

3,168

2,756

6143084.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

663

129

6143090.SQ.FTS.B,

Zero

Cpn,

5/17/24

...

2,634

2,560

6143325.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

17,672

16,917

6143654.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

45,553

44,122

6145257.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

1,020

937

6145296.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

1,416

1,400

6145348.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

1,571

1,539

6145383.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

25,311

13,539

6145653.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

1,673

1,634

6145720.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

2,286

2,244

6145811.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

2,317

2,240

6145838.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

1,850

1,782

6145899.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

31,638

30,288

6146581.SQ.FTS.B,

Zero

Cpn,

5/18/24

...

2,917

2,731

6146989.SQ.FTS.B,

Zero

Cpn,

5/19/24

...

6,243

6,031

6147104.SQ.FTS.B,

Zero

Cpn,

5/19/24

...

11,990

9,974

6147397.SQ.FTS.B,

Zero

Cpn,

5/19/24

...

626

612

6147485.SQ.FTS.B,

Zero

Cpn,

5/19/24

...

687

599

6147565.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

2,706

2,658

6147651.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

2,901

2,624

6147718.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

3,779

2,839

6147775.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

1,073

947

6147817.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

1,608

1,545

6147847.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

5,488

5,212

6147979.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

9,057

6,950

6148142.SQ.FTS.B,

Zero

Cpn,

5/20/24

...

4,067

3,877

6148584.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

242

231

6148665.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

551

541

6148772.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,246

1,140

6149141.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,422

1,320

6149233.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

416

407

6149268.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

3,411

2,287

6149355.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

2,167

2,099

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6149472.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

$

1,677

$

1,565

6149564.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

134

132

6149657.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

9,688

8,335

6149923.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

6,875

6,731

6150108.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

2,230

2,191

6150210.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,069

959

6150243.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

3,015

2,899

6150335.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

800

775

6150349.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

14,096

13,463

6150763.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,152

1,125

6150907.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,543

1,487

6150963.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

21,442

11,091

6151488.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,043

978

6151521.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

4,144

3,480

6151607.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

2,553

2,200

6151673.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

1,394

1,343

6151719.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

3,860

3,762

6151826.SQ.FTS.B,

Zero

Cpn,

5/21/24

...

2,029

1,152

6152840.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

11,647

11,435

6153013.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

758

740

6153029.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,076

901

6153050.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

6,847

6,248

6153165.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

11,850

9,565

6153395.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

2,196

2,147

6153479.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

5,229

5,100

6153665.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,933

1,875

6153758.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

5,123

4,984

6153874.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

5,051

4,949

6154040.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,147

1,134

6154074.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

4,557

3,887

6154141.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,167

1,114

6154297.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

15,657

15,084

6154689.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

324

315

6154706.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,428

1,394

6154815.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

22,428

21,256

6155623.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

1,441

1,398

6155652.SQ.FTS.B,

Zero

Cpn,

5/22/24

...

3,685

3,543

6157480.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

745

658

6157483.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,587

1,540

6157502.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

2,527

2,434

6157509.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,691

1,573

6157516.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,244

1,223

6157554.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

26,476

25,436

6158238.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,640

1,486

6158308.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

2,186

2,078

6158399.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

7,849

7,672

6159378.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

2,167

2,098

6159444.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,909

1,834

6159498.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

215

170

6159514.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

845

793

6159521.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

2,748

1,960

6159619.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

3,046

2,311

6159648.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

15,759

15,584

6160108.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

4,815

2,823

6160206.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

2,929

2,808

6160262.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

5,033

4,760

6160357.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

7,132

5,373

6160512.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

1,231

1,197

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

53

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6160528.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

$

2,613

$

2,538

6160578.SQ.FTS.B,

Zero

Cpn,

5/23/24

...

9,862

8,390

6160821.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

4,736

4,512

6160835.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

21,078

20,048

6161028.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

1,452

1,358

6161170.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

2,429

2,276

6161226.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

2,601

2,533

6161261.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

1,545

775

6161341.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

6,023

5,917

6161383.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

2,886

2,830

6161456.SQ.FTS.B,

Zero

Cpn,

5/24/24

...

2,459

2,341

6161898.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

995

971

6161937.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

3,365

3,314

6162505.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

3,884

1,054

6162559.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

14,508

14,241

6163258.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

1,757

1,693

6163373.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

1,024

772

6163434.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

4,039

3,790

6163496.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

6,628

6,350

6163693.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

7,482

7,329

6164137.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

6,746

6,496

6164432.SQ.FTS.B,

Zero

Cpn,

5/25/24

...

6,849

6,650

6164819.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

980

742

6164840.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

6,923

6,674

6164962.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

3,150

1,842

6164977.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

1,102

1,079

6164985.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

3,768

3,530

6165024.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

1,022

1,004

6165053.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

13,994

13,206

6165202.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

2,865

2,757

6165262.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

2,895

2,773

6165291.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

1,832

1,787

6165365.SQ.FTS.B,

Zero

Cpn,

5/26/24

...

6,878

6,663

6165512.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

3,626

3,494

6165596.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

7,310

7,106

6165691.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

1,770

1,373

6165709.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

1,646

1,592

6165725.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

1,974

1,901

6165763.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

4,320

4,264

6165857.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

5,315

5,191

6165941.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

2,815

2,736

6165972.SQ.FTS.B,

Zero

Cpn,

5/27/24

...

2,978

2,820

6166220.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

1,994

1,949

6166298.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

3,362

2,076

6166364.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

6,159

4,419

6168455.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

1,026

1,021

6168570.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

1,919

1,806

6168721.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

18,437

17,449

6169262.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

2,516

2,443

6169368.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

493

453

6169427.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

2,645

2,602

6169516.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

3,584

2,607

6169581.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

2,595

2,382

6169645.SQ.FTS.B,

Zero

Cpn,

5/28/24

...

130

128

6169660.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

48,983

46,599

6171352.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

31,948

31,082

6172108.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

2,735

2,668

6172240.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

34,629

33,558

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6172956.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

$

3,058

$

2,777

6173073.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

4,106

2,975

6173109.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

6,905

5,368

6173156.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

9,122

8,796

6173327.SQ.FTS.B,

Zero

Cpn,

5/29/24

...

1,753

1,709

6173601.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

2,737

2,633

6173754.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

6,027

5,495

6173929.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

1,048

1,025

6173965.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

12,446

8,236

6174420.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

773

760

6174487.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

921

885

6174582.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

5,720

5,570

6174844.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

1,135

1,100

6174898.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

12,975

12,529

6175114.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

15,518

15,099

6175425.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

50,397

30,101

6176018.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

5,134

4,956

6176235.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

10,796

10,566

6176447.SQ.FTS.B,

Zero

Cpn,

5/30/24

...

890

879

6178375.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

1,046

991

6178405.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

4,290

3,837

6178453.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

9,973

9,467

6178565.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

5,230

4,107

6178645.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

1,718

1,668

6178707.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

62,575

59,933

6180683.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

4,780

2,916

6180787.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

10,376

5,290

6180901.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

24,857

23,897

6181494.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

10,897

10,525

6181714.SQ.FTS.B,

Zero

Cpn,

6/01/24

...

9,445

8,931

6181976.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

37,249

36,072

6183302.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

6,369

6,172

6183579.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

13,201

11,723

6183917.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

2,948

2,848

6184005.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

7,887

7,454

6184265.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

27,586

24,366

6185186.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

1,006

983

6185229.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

13,731

13,326

6185582.SQ.FTS.B,

Zero

Cpn,

6/02/24

...

8,247

8,090

6185725.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

2,092

1,741

6185770.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

2,564

1,665

6185794.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

6,372

5,406

6185869.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

3,482

3,363

6185954.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

1,862

825

6185985.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

5,119

4,876

6186115.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

7,377

5,695

6186321.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

472

456

6186378.SQ.FTS.B,

Zero

Cpn,

6/03/24

...

5,918

5,610

6186550.SQ.FTS.B,

Zero

Cpn,

6/04/24

...

2,076

2,029

6186612.SQ.FTS.B,

Zero

Cpn,

6/04/24

...

7,108

6,608

6186758.SQ.FTS.B,

Zero

Cpn,

6/04/24

...

1,329

1,290

6186788.SQ.FTS.B,

Zero

Cpn,

6/04/24

...

11,296

11,073

6187158.SQ.FTS.B,

Zero

Cpn,

6/04/24

...

17,278

16,308

6187852.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

4,501

4,453

6188786.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

4,597

4,482

6188953.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

10,392

10,025

6189395.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

10,577

9,558

6189719.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

4,377

4,181

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6189839.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

$

1,204

$

1,196

6190062.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

552

546

6190072.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

10,497

10,323

6190832.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

2,014

1,984

6190940.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

1,047

983

6190982.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

4,844

4,147

6191057.SQ.FTS.B,

Zero

Cpn,

6/05/24

...

3,622

3,363

6191154.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

5,727

2,152

6191277.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

315

301

6191285.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

11,681

11,435

6191735.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,727

2,498

6191797.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

3,951

3,757

6192002.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

1,710

1,609

6192070.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

1,320

1,283

6192534.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

8,051

7,490

6192725.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

1,956

1,915

6192760.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

6,448

4,439

6193270.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

1,090

950

6193307.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,795

2,662

6193423.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,315

2,291

6193526.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

431

397

6193538.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

3,846

3,457

6193647.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,468

2,256

6193677.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

3,653

3,542

6193800.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,494

2,462

6193879.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

3,820

3,774

6194036.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

511

499

6194057.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

2,410

2,199

6194207.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

4,848

4,554

6194691.SQ.FTS.B,

Zero

Cpn,

6/06/24

...

23,060

22,543

6195071.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

7,329

7,157

6195293.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

585

575

6195323.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

4,320

4,185

6195452.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

9,782

9,585

6195812.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

1,818

1,742

6195876.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

8,148

7,846

6196365.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

2,821

2,714

6196456.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

3,100

3,027

6196549.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

2,893

2,836

6196597.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

2,440

2,358

6196636.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

1,901

1,834

6196677.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

8,300

7,989

6197025.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

3,641

2,263

6197562.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

22,061

18,906

6199979.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

36,556

35,603

6200852.SQ.FTS.B,

Zero

Cpn,

6/07/24

...

15,336

15,080

6202760.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

7,323

6,903

6203127.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

1,762

1,721

6203144.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

41,890

40,803

6204172.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

825

808

6204242.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

1,674

1,603

6204308.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

28,978

18,624

6205057.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

10,989

10,355

6205470.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

268

266

6205579.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

582

546

6205611.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

6,826

6,513

6205829.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

2,493

2,095

6205895.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

891

881

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6205971.SQ.FTS.B,

Zero

Cpn,

6/08/24

...

$

13,670

$

13,349

6206517.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

5,159

4,975

6206619.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

1,745

1,578

6206644.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

12,892

12,373

6207018.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

353

317

6207105.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

11,810

10,390

6207454.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

6,001

5,556

6207705.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

6,319

6,080

6207951.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

3,987

3,584

6208046.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

4,112

3,943

6208463.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

9,798

9,484

6208768.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

13,044

11,956

6208885.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

12,612

12,322

6209210.SQ.FTS.B,

Zero

Cpn,

6/09/24

...

25,144

23,551

6209706.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

4,529

3,941

6209790.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

2,921

2,846

6209843.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

11,987

11,451

6210087.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

8,504

8,152

6210274.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

3,471

3,336

6210392.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

486

474

6210405.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

3,656

2,666

6210480.SQ.FTS.B,

Zero

Cpn,

6/10/24

...

8,406

8,093

6210682.SQ.FTS.B,

Zero

Cpn,

6/11/24

...

13,655

13,287

6211130.SQ.FTS.B,

Zero

Cpn,

6/11/24

...

2,413

2,346

6211187.SQ.FTS.B,

Zero

Cpn,

6/11/24

...

192

188

6211202.SQ.FTS.B,

Zero

Cpn,

6/11/24

...

3,839

3,610

6211496.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

2,582

2,068

6211615.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

1,194

1,150

6211694.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

3,735

2,740

6211842.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

1,240

1,183

6212043.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

7,008

6,760

6212456.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

19,102

18,315

6213129.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

35,956

34,299

6214143.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

9,804

9,555

6214444.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

1,415

1,393

6214513.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

2,599

2,522

6214578.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

4,497

4,392

6214705.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

598

592

6214814.SQ.FTS.B,

Zero

Cpn,

6/12/24

...

16,967

16,362

6214896.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

380

376

6214933.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

5,881

5,660

6215557.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

1,894

1,842

6215598.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

10,242

9,356

6215943.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

445

433

6215963.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

25,695

24,409

6216680.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

19,329

18,476

6217119.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

2,167

2,111

6217191.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

5,110

5,006

6217289.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

726

709

6217315.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

714

684

6217318.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

5,612

5,324

6217413.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

2,935

2,792

6217518.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

1,904

1,858

6217601.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

3,175

3,106

6217699.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

13,846

12,182

6217830.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

8,836

8,498

6217917.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

7,181

6,590

6217998.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

6,816

6,569

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

55

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6218151.SQ.FTS.B,

Zero

Cpn,

6/13/24

...

$

4,522

$

4,378

6218171.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

2,317

2,222

6218284.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

32,211

29,100

6219073.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

751

653

6219108.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

7,303

7,017

6219688.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

3,837

3,658

6219827.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

1,486

1,363

6219911.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

3,238

1,590

6219992.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

5,754

5,521

6220140.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

1,314

1,284

6220212.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

7,130

6,938

6220404.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

14,440

13,305

6220586.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

3,566

2,753

6220625.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

8,666

8,058

6220811.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

1,086

1,043

6220837.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

7,843

7,641

6221138.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

1,209

1,181

6221164.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

11,618

10,205

6221348.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

4,260

3,723

6221384.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

5,420

5,268

6221527.SQ.FTS.B,

Zero

Cpn,

6/14/24

...

24,422

23,404

6223652.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

56,617

54,521

6225507.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

12,280

10,266

6225966.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

5,644

5,363

6226091.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

7,225

6,926

6226298.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

781

746

6226309.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

4,957

4,550

6226444.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

8,914

8,734

6226645.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

5,799

4,616

6226763.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

2,726

2,557

6226903.SQ.FTS.B,

Zero

Cpn,

6/15/24

...

9,766

8,755

6226984.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

435

271

6227044.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

7,220

6,686

6227194.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

2,188

1,300

6227245.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

3,682

3,636

6227541.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

995

944

6227644.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

22,727

20,855

6228193.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

3,505

3,436

6228350.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

11,263

9,813

6228782.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

1,378

1,037

6228820.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

939

901

6228865.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

1,384

1,042

6229024.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

3,102

2,502

6229084.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

7,929

7,515

6229186.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

7,785

7,391

6229407.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

4,984

4,726

6231111.SQ.FTS.B,

Zero

Cpn,

6/16/24

...

20,251

19,810

6235012.SQ.FTS.B,

Zero

Cpn,

6/17/24

...

67,082

64,871

6236255.SQ.FTS.B,

Zero

Cpn,

6/18/24

...

2,969

2,796

6236306.SQ.FTS.B,

Zero

Cpn,

6/18/24

...

4,969

4,303

6236373.SQ.FTS.B,

Zero

Cpn,

6/18/24

...

1,196

1,154

6236438.SQ.FTS.B,

Zero

Cpn,

6/18/24

...

19,579

18,889

6237088.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

1,309

1,276

6237213.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

1,075

839

6237296.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

4,013

3,870

6237489.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

306

299

6237512.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

5,434

5,281

6237776.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

12,827

12,463

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6238378.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

$

3,650

$

3,505

6238498.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

1,122

587

6238527.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

2,379

2,254

6238632.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

781

745

6238676.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

4,145

3,893

6238787.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

3,820

3,550

6238959.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

3,024

2,911

6239050.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

1,309

1,294

6239112.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

23,597

22,349

6239801.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

3,959

3,870

6239995.SQ.FTS.B,

Zero

Cpn,

6/19/24

...

10,397

10,072

6240213.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

2,517

2,211

6240292.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

2,631

2,551

6240356.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

13,378

12,573

6240853.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

8,012

7,574

6240961.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

1,352

1,311

6241005.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

8,593

8,255

6241195.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

3,556

3,412

6241314.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

3,458

3,337

6241476.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

13,217

12,428

6241806.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

2,408

2,347

6241869.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

10,781

10,023

6242060.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

8,582

7,815

6242172.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

2,169

2,083

6242230.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

24,131

23,021

6242670.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

8,959

8,545

6242833.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

19,102

18,415

6243283.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

8,899

8,342

6243468.SQ.FTS.B,

Zero

Cpn,

6/20/24

...

17,762

15,456

6243694.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

3,704

3,601

6243792.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

6,553

6,252

6243926.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

413

398

6243931.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

17,901

17,103

6244281.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

5,176

3,809

6244407.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

5,285

5,078

6244606.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

5,872

5,656

6244739.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

241

239

6244775.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

714

700

6244841.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

985

951

6244872.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

1,127

1,008

6244895.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

9,045

8,901

6245219.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

6,220

6,060

6245369.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

7,633

7,489

6245571.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

1,005

957

6245597.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

8,625

7,674

6245714.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

1,776

1,726

6245757.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

42,006

36,321

6246312.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

6,619

6,291

6246365.SQ.FTS.B,

Zero

Cpn,

6/21/24

...

4,735

4,569

6248726.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

1,754

1,628

6248775.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

3,519

3,345

6248816.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

1,417

1,369

6248830.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

42,450

40,892

6250033.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

2,527

2,405

6250146.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

6,610

5,949

6250342.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

15,329

14,780

6250796.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

11,296

10,724

6250933.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

1,595

1,419

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6250981.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

$

1,317

$

1,270

6251064.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

1,634

1,519

6251101.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

9,554

9,381

6251513.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

2,942

2,870

6251633.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

4,314

4,222

6251727.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

413

390

6251740.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

18,467

17,503

6252082.SQ.FTS.B,

Zero

Cpn,

6/22/24

...

9,743

9,386

6252494.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

18,178

11,514

6252766.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

16,091

15,427

6253192.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

3,867

3,734

6253296.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

8,189

5,676

6253430.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

3,004

2,824

6253492.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

12,638

12,306

6253757.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

2,434

2,377

6253936.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

4,885

4,723

6254110.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

6,823

6,552

6254182.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

816

788

6254212.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

9,686

9,319

6254345.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

444

429

6254361.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

3,596

3,232

6254473.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

15,042

9,347

6254764.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

4,484

3,754

6254841.SQ.FTS.B,

Zero

Cpn,

6/23/24

...

9,814

7,060

6255004.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

6,259

6,095

6255132.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

6,551

6,276

6255243.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

16,742

16,153

6255517.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

206

201

6255520.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

986

906

6255529.SQ.FTS.B,

Zero

Cpn,

6/24/24

...

6,639

6,529

6255653.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

3,170

3,036

6255731.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

1,074

1,018

6255758.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

109

108

6255773.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

1,837

1,781

6255809.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

3,329

3,102

6255897.SQ.FTS.B,

Zero

Cpn,

6/25/24

...

17,840

17,212

6256138.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

1,323

1,253

6256156.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

2,274

2,218

6256200.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

1,246

1,165

6256235.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

1,399

1,334

6256255.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

11,478

11,257

6256501.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

5,185

5,063

6256584.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

2,873

2,703

6256624.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

11,516

9,612

6256788.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

2,572

2,479

6256834.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

3,406

3,347

6256896.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

5,424

5,061

6256974.SQ.FTS.B,

Zero

Cpn,

6/26/24

...

5,314

5,092

6257199.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

3,985

3,775

6257332.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

5,605

5,224

6257669.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

3,003

2,943

6257767.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

885

807

6257786.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

9,650

9,365

6258064.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

16,242

15,813

6258403.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

16,011

15,564

6258694.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

4,731

4,561

6258789.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

36,194

35,152

6259376.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

11,277

10,623

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6259560.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

$

1,368

$

1,243

6259575.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

8,859

5,215

6259695.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

2,364

1,435

6259746.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

4,668

4,468

6259847.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

4,544

4,282

6259881.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

1,628

1,490

6259900.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

586

576

6259920.SQ.FTS.B,

Zero

Cpn,

6/27/24

...

4,626

4,463

6260137.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

41,008

37,373

6260669.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

1,300

1,274

6260717.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

20,406

18,707

6261141.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

2,660

2,544

6261171.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

9,071

8,171

6261328.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

266

260

6261390.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

9,079

8,910

6261598.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

4,658

4,571

6261647.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

4,794

4,520

6261675.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

7,538

7,058

6261777.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

11,569

11,186

6261909.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

11,592

9,759

6262015.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

1,960

1,837

6262066.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

1,179

954

6262078.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

5,446

5,167

6262158.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

628

580

6262166.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

2,198

2,099

6262199.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

2,470

2,402

6262242.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

27,933

24,880

6262492.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

761

747

6262512.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

1,910

1,865

6262536.SQ.FTS.B,

Zero

Cpn,

6/28/24

...

7,545

7,188

6265084.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

867

848

6265132.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

4,038

3,882

6265153.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

25,423

24,231

6265569.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

4,003

3,942

6265760.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

890

870

6265782.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

14,820

14,309

6266234.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

4,939

4,710

6266342.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

737

725

6266370.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

40,801

35,313

6267186.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

1,852

1,764

6267328.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

5,331

5,154

6267443.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

385

381

6267469.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

5,162

4,978

6267553.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

7,298

7,020

6267813.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

809

186

6267832.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

12,763

12,485

6268081.SQ.FTS.B,

Zero

Cpn,

6/29/24

...

7,791

7,273

6268240.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

1,894

1,389

6268406.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

17,192

16,285

6269030.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

14,939

14,329

6269455.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

10,277

9,740

6269850.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

10,339

8,798

6270020.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

579

563

6270053.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

2,174

2,095

6270136.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

2,349

2,264

6270218.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

10,544

9,986

6270505.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

3,531

3,421

6270711.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

7,508

7,222

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

57

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6270801.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

$

1,795

$

1,714

6270838.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

7,256

7,002

6270955.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

5,347

5,152

6271009.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

15,456

14,842

6271231.SQ.FTS.B,

Zero

Cpn,

6/30/24

...

2,767

2,667

6271294.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

7,327

6,765

6271397.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

9,060

8,675

6271508.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

9,404

8,747

6271603.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

6,728

6,482

6271702.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

603

375

6271708.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

5,149

4,784

6271773.SQ.FTS.B,

Zero

Cpn,

7/01/24

...

7,975

7,648

6271885.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

14,955

12,959

6272087.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

3,042

2,946

6272123.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

4,539

4,397

6272188.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

4,427

4,281

6272266.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

7,087

6,809

6272326.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

1,692

1,645

6272382.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

17,820

16,627

6272597.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

3,454

2,888

6272635.SQ.FTS.B,

Zero

Cpn,

7/02/24

...

6,079

6,002

6272996.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

3,768

3,682

6273170.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

6,754

6,293

6273534.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

4,011

3,878

6273667.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

2,068

1,935

6273717.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

2,220

2,131

6273758.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

3,915

2,888

6273863.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

1,542

1,488

6273891.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

1,508

1,451

6273945.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

30,735

29,412

6274482.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

2,655

2,149

6274513.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

25,675

25,006

6275203.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

6,691

6,367

6275326.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

2,797

2,058

6275411.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

7,972

7,617

6275549.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

7,937

7,536

6275684.SQ.FTS.B,

Zero

Cpn,

7/03/24

...

7,759

7,493

6275931.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

19,112

18,734

6276698.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

843

828

6276755.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

12,537

12,043

6277033.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

6,066

4,680

6277121.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

4,079

3,966

6277228.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

18,592

16,947

6277663.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

11,932

11,328

6277813.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

3,766

3,661

6277889.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

3,810

3,636

6277934.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

2,488

1,856

6277968.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

1,058

1,036

6278016.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

3,109

2,937

6278092.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

1,511

1,464

6278139.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

1,673

1,623

6278170.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

799

732

6278193.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

3,970

2,540

6278273.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

11,452

11,267

6278630.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

2,746

2,506

6278671.SQ.FTS.B,

Zero

Cpn,

7/04/24

...

7,707

7,349

6279873.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

29,537

28,654

6280292.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

3,297

3,170

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6280368.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

$

5,118

$

4,975

6280514.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

10,407

9,864

6280839.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

7,798

7,567

6281030.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

21,957

20,713

6281350.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

2,421

2,331

6281432.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

32,833

31,720

6282043.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

1,943

1,854

6282063.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

11,738

10,875

6282214.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

326

315

6282223.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

2,175

2,158

6282550.SQ.FTS.B,

Zero

Cpn,

7/05/24

...

41,247

38,855

6282812.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

39,292

37,102

6283397.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

6,754

6,579

6283581.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

1,098

1,078

6283635.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

4,008

3,763

6283883.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

2,358

2,036

6284278.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

721

715

6284317.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

543

525

6284320.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

7,635

6,996

6284429.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

859

778

6284447.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

5,976

5,630

6284632.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

4,349

3,657

6284726.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

6,546

6,358

6285079.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

828

786

6285105.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

2,566

2,054

6285167.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

1,734

1,701

6285215.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

467

456

6285291.SQ.FTS.B,

Zero

Cpn,

7/06/24

...

43,428

41,255

6285821.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

2,621

1,910

6285853.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

1,476

1,424

6285867.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

4,504

4,273

6285926.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

1,735

1,703

6285959.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

11,068

6,777

6286097.SQ.FTS.B,

Zero

Cpn,

7/07/24

...

28,989

27,446

6286608.SQ.FTS.B,

Zero

Cpn,

7/08/24

...

4,465

4,216

6286796.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

823

773

6286908.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

18,522

17,796

6287694.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

419

392

6287775.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

4,630

4,423

6287996.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

554

534

6288006.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

3,388

3,330

6288150.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

6,292

5,408

6288241.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

15,458

14,978

6288517.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

50,519

48,342

6289281.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

6,772

5,746

6289424.SQ.FTS.B,

Zero

Cpn,

7/09/24

...

3,785

3,632

6289499.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

7,622

7,326

6289694.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

838

833

6289900.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

6,032

5,413

6290034.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

16,839

16,185

6290489.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

2,782

2,676

6290604.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

8,477

7,297

6290763.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

1,407

1,387

6290824.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

2,515

2,422

6290891.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

14,483

14,142

6291150.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

3,658

3,546

6291208.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

2,583

2,422

6291272.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

18,598

18,213

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6291873.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

$

3,745

$

3,691

6291994.SQ.FTS.B,

Zero

Cpn,

7/10/24

...

18,368

17,769

6292289.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

6,829

6,541

6292593.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

528

520

6292603.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

3,192

2,965

6292704.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

7,776

7,540

6292949.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

21,929

21,008

6293420.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

7,611

7,333

6293502.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

6,682

6,386

6293593.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

2,346

2,245

6293614.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

1,647

1,545

6293658.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

1,644

1,528

6293704.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

1,410

1,389

6293855.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

8,174

7,797

6294033.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

2,188

2,088

6294090.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

5,071

4,907

6294205.SQ.FTS.B,

Zero

Cpn,

7/11/24

...

76,277

73,090

6297784.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

3,782

3,657

6297972.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

18,370

16,441

6298559.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

1,715

1,638

6298642.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

3,760

3,140

6298830.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

7,712

7,486

6299236.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

25,355

24,372

6300002.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

4,589

4,418

6300214.SQ.FTS.B,

Zero

Cpn,

7/12/24

...

9,047

8,822

6300599.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

4,738

4,611

6300866.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

885

807

6300875.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

4,888

4,713

6300972.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

7,519

7,219

6301185.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

1,706

1,671

6301259.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

12,435

11,953

6301612.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

4,582

4,361

6301755.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

2,310

1,960

6301864.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

1,773

1,676

6301915.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

20,318

14,342

6302444.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

1,692

1,672

6302603.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

1,368

879

6302633.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

1,884

1,828

6302668.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

2,978

2,506

6302736.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

930

848

6302778.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

101

98

6302813.SQ.FTS.B,

Zero

Cpn,

7/13/24

...

44,853

42,793

6303283.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

12,319

11,693

6303430.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

13,982

13,399

6303610.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

15,106

14,415

6303782.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

1,465

1,428

6303814.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

6,359

6,145

6303891.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

37,026

32,019

6304143.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

5,744

5,628

6304223.SQ.FTS.B,

Zero

Cpn,

7/14/24

...

22,006

20,613

6304471.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

7,174

6,973

6304611.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

4,105

3,918

6304673.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

831

819

6304681.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

9,565

9,145

6304835.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

5,604

5,365

6304928.SQ.FTS.B,

Zero

Cpn,

7/15/24

...

13,993

13,630

6305170.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

18,893

17,513

6305378.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

1,571

1,512

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6305404.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

$

5,854

$

5,559

6305487.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

4,251

4,059

6305535.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

8,391

8,032

6305636.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

2,031

1,917

6305688.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

657

648

6305705.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

3,906

3,571

6305764.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

940

786

6305775.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

830

777

6305783.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

2,180

2,040

6305819.SQ.FTS.B,

Zero

Cpn,

7/16/24

...

1,449

1,408

6305913.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

1,076

992

6306159.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

2,232

2,166

6306239.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

5,866

5,588

6306504.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

6,525

5,979

6306635.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

7,666

7,378

6306842.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

1,431

1,244

6306881.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

3,460

3,333

6306980.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

819

784

6306996.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

3,304

3,110

6307092.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

788

722

6307110.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

10,812

10,412

6307502.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

3,902

3,564

6307582.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

8,035

7,513

6307782.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

4,744

4,520

6307842.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

8,565

8,255

6308012.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

2,151

1,927

6308054.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

4,747

4,615

6308203.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

6,411

6,146

6308340.SQ.FTS.B,

Zero

Cpn,

7/17/24

...

72,069

69,760

6308509.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

642

620

6308551.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

19,104

18,487

6308998.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

6,843

6,418

6309341.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

1,870

1,776

6309408.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

25,198

23,720

6310079.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

721

634

6310094.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

8,645

8,361

6310353.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

4,909

4,592

6310448.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

1,991

1,951

6310487.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

1,275

1,147

6310540.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

42,966

41,052

6311127.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

2,373

1,737

6311146.SQ.FTS.B,

Zero

Cpn,

7/18/24

...

26,307

25,419

6313200.SQ.FTS.B,

Zero

Cpn,

7/19/24

...

4,336

4,093

6313293.SQ.FTS.B,

Zero

Cpn,

7/19/24

...

55,540

50,667

6314763.SQ.FTS.B,

Zero

Cpn,

7/19/24

...

1,615

1,532

6314821.SQ.FTS.B,

Zero

Cpn,

7/19/24

...

47,301

45,170

6316200.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

18,230

16,974

6316752.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

346

327

6316783.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

5,024

4,799

6316975.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

746

723

6317001.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

3,520

3,453

6317457.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

5,020

4,808

6317738.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

11,843

11,206

6318043.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

3,054

2,728

6318142.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

4,012

3,867

6318268.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

7,072

6,500

6318395.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

7,296

6,431

6318502.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

4,498

4,274

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

59

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6318573.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

$

7,642

$

7,131

6318821.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

3,336

2,952

6318905.SQ.FTS.B,

Zero

Cpn,

7/20/24

...

7,784

7,326

6318979.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

522

495

6319003.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

884

861

6319018.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

3,232

3,125

6319056.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

34,501

33,494

6319481.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

3,099

3,068

6319765.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

2,295

2,212

6319792.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

4,295

4,136

6319854.SQ.FTS.B,

Zero

Cpn,

7/21/24

...

59,628

58,119

6321267.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

9,222

8,294

6321602.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

588

574

6321629.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,414

1,325

6321682.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,243

1,191

6321736.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

2,155

2,120

6321837.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

9,466

9,276

6322322.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,838

1,727

6323554.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

7,753

6,864

6328683.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

2,456

1,797

6329781.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

3,197

3,090

6331375.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

9,242

7,121

6335162.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,089

772

6335990.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

3,527

3,295

6337721.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

7,933

7,608

6341104.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,225

1,182

6343346.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

16,635

14,931

6350485.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

969

523

6350994.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

3,657

3,403

6351277.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

6,769

6,401

6351343.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

10,501

8,476

6351545.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

1,451

1,337

6351585.SQ.FTS.B,

Zero

Cpn,

7/23/24

...

52,441

48,996

6351823.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

3,260

2,673

6351887.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

5,677

5,175

6351943.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

160

160

6351975.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

4,375

2,010

6352016.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

2,993

2,841

6352107.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

7,868

7,620

6352272.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

7,962

7,685

6352630.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

14,044

13,172

6352949.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

757

728

6352972.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

4,705

4,568

6353258.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

7,696

7,358

6353401.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

9,279

8,632

6353581.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

2,258

2,199

6353625.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

49,133

44,595

6354516.SQ.FTS.B,

Zero

Cpn,

7/24/24

...

20,627

19,703

6354871.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

28,335

27,466

6355174.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

74,392

70,697

6356992.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

2,989

2,565

6357160.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

16,102

15,228

6357410.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

5,052

4,857

6357497.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

3,447

3,309

6357583.SQ.FTS.B,

Zero

Cpn,

7/25/24

...

4,307

4,115

6359299.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,577

1,526

6359450.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,410

1,235

6359468.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

723

664

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6359481.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

$

5,351

$

5,219

6359616.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

2,255

2,151

6359718.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

3,558

3,270

6359790.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

3,893

3,713

6360221.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,099

1,034

6360299.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,505

1,448

6360376.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,241

1,173

6360466.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

2,010

1,934

6360641.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

1,560

1,518

6360757.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

233

222

6360785.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

76,484

73,826

6362421.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

809

721

6362429.SQ.FTS.B,

Zero

Cpn,

7/26/24

...

16,616

15,702

6362716.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

24,527

23,346

6363645.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

7,499

7,283

6363931.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

1,685

1,634

6363967.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

7,123

6,885

6364154.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

51,053

47,239

6365244.SQ.FTS.B,

Zero

Cpn,

7/27/24

...

58,332

53,493

6365761.SQ.FTS.B,

Zero

Cpn,

7/28/24

...

84,433

81,154

6367500.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

518

476

6367525.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

6,051

5,818

6367873.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

1,501

1,416

6368053.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

10,817

10,421

6368447.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

8,290

8,035

6368654.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

2,342

2,273

6368728.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

5,113

4,852

6368812.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

25,518

24,498

6369494.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

17,844

16,664

6369870.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

1,439

1,291

6369909.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

8,528

8,170

6370182.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

761

710

6370198.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

2,675

2,549

6370285.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

2,266

1,786

6370333.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

775

746

6370339.SQ.FTS.B,

Zero

Cpn,

7/30/24

...

17,819

17,169

6370750.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

30,892

29,740

6371621.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

14,092

13,106

6371938.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

7,118

6,838

6372053.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

3,068

2,944

6372334.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

1,313

1,242

6372376.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

1,995

1,917

6372419.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

5,286

5,136

6372533.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

6,058

5,849

6372603.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

1,878

1,805

6372671.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

2,155

2,053

6372693.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

1,889

1,780

6372714.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

14,334

13,665

6372961.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

66,098

61,918

6373722.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

368

361

6373735.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

7,682

7,417

6373834.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

2,473

2,376

6373877.SQ.FTS.B,

Zero

Cpn,

7/31/24

...

7,945

7,580

6374296.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

5,925

5,684

6374394.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

6,366

6,111

6374599.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

24,579

23,484

6375366.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

1,681

1,558

6375401.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

17,276

16,543

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6375750.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

$

458

$

449

6375767.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

6,166

5,661

6375821.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

17,201

16,171

6376128.SQ.FTS.B,

Zero

Cpn,

8/01/24

...

38,228

36,481

6378594.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

11,061

10,584

6378826.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

3,086

2,975

6378866.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

2,125

1,353

6378943.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

3,732

3,589

6379023.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

1,278

1,227

6379092.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

954

861

6379126.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

5,218

4,999

6379377.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

19,408

17,918

6380018.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

1,735

1,668

6380061.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

3,882

3,728

6380361.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

50,203

46,242

6381139.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

8,016

7,681

6381274.SQ.FTS.B,

Zero

Cpn,

8/02/24

...

35,995

34,091

6382140.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

1,949

1,825

6382243.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

66,873

58,917

6383527.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

19,488

18,424

6383983.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

905

874

6384023.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

34,985

30,502

6384700.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

27,909

25,810

6384961.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

1,148

997

6384969.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

14,618

13,938

6385195.SQ.FTS.B,

Zero

Cpn,

8/03/24

...

44,253

42,645

6385240.SQ.FTS.B,

Zero

Cpn,

8/04/24

...

507

473

6385264.SQ.FTS.B,

Zero

Cpn,

8/04/24

...

12,679

12,088

6385460.SQ.FTS.B,

Zero

Cpn,

8/04/24

...

16,572

16,042

6385875.SQ.FTS.B,

Zero

Cpn,

8/04/24

...

1,152

1,119

6385890.SQ.FTS.B,

Zero

Cpn,

8/04/24

...

6,317

6,039

6385985.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

968

924

6386004.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

619

599

6386045.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

9,330

8,524

6386181.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

389

375

6386189.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

12,078

11,678

6386396.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

3,352

3,232

6386509.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

8,359

7,646

6386635.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

1,518

1,407

6386650.SQ.FTS.B,

Zero

Cpn,

8/05/24

...

5,202

4,895

6386998.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

1,110

1,083

6387053.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

25,400

23,275

6387825.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

7,226

6,983

6387976.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

64,755

62,285

6389202.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

4,377

4,049

6389269.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

5,156

4,028

6389364.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

1,753

1,607

6389398.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

12,820

12,269

6389604.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

6,985

6,774

6389786.SQ.FTS.B,

Zero

Cpn,

8/06/24

...

4,300

4,180

6390152.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

5,335

5,056

6390309.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

46,879

41,706

6391615.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

24,768

22,087

6392027.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

9,184

8,818

6392177.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

1,044

988

6392194.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

5,975

5,695

6392252.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

15,264

14,669

6392690.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

8,143

6,774

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6392793.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

$

2,019

$

1,956

6392802.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

2,710

2,472

6392846.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

7,051

6,723

6392950.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

2,647

2,544

6392987.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

7,666

6,274

6393102.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

826

684

6393111.SQ.FTS.B,

Zero

Cpn,

8/07/24

...

7,100

6,848

6393248.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

1,947

1,864

6393293.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

6,419

6,044

6393441.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

5,226

4,723

6393493.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

12,924

12,510

6393749.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

4,444

4,268

6393821.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

1,642

1,570

6393862.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

20,299

19,161

6394418.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

13,090

12,522

6394736.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

10,543

10,055

6394910.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

1,979

1,890

6394981.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

1,767

1,668

6395015.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

815

724

6395024.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

15,547

15,013

6395270.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

46,882

45,029

6395906.SQ.FTS.B,

Zero

Cpn,

8/08/24

...

48,365

45,728

6397763.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

375

368

6397822.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

7,246

7,032

6398019.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

37,935

36,740

6399251.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

20,169

19,364

6399791.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

6,673

6,069

6399960.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

53,971

51,987

6401009.SQ.FTS.B,

Zero

Cpn,

8/09/24

...

2,989

2,818

6401069.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

5,185

4,921

6401183.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

8,166

7,842

6401384.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

5,620

5,376

6401531.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

3,124

3,025

6401612.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

276

264

6401621.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

13,117

11,754

6401988.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

1,868

1,800

6402027.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

1,437

1,392

6402076.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

1,171

1,062

6402096.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

4,815

4,611

6402213.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

1,785

1,725

6402426.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

37,177

35,161

6403142.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

2,779

2,605

6403183.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

7,137

6,939

6403311.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

2,280

2,167

6403343.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

8,559

8,051

6403462.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

2,770

2,579

6403527.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

604

561

6403694.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

4,130

3,823

6403717.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

3,347

2,824

6403789.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

2,408

2,044

6403845.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

3,587

3,361

6403936.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

934

869

6403953.SQ.FTS.B,

Zero

Cpn,

8/10/24

...

3,690

3,484

6404005.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

1,605

1,532

6404033.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

2,248

2,191

6404091.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

4,942

4,706

6404145.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

6,049

5,715

6404209.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

6,203

5,887

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

61

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6404279.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

$

7,907

$

7,557

6404394.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

11,300

10,871

6404527.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

2,725

2,562

6404565.SQ.FTS.B,

Zero

Cpn,

8/11/24

...

8,359

8,029

6404717.SQ.FTS.B,

Zero

Cpn,

8/12/24

...

873

833

6404726.SQ.FTS.B,

Zero

Cpn,

8/12/24

...

1,597

1,556

6404831.SQ.FTS.B,

Zero

Cpn,

8/12/24

...

33,049

31,818

6405217.SQ.FTS.B,

Zero

Cpn,

8/12/24

...

28,116

26,440

6406161.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

488

445

6406184.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

1,443

1,357

6406224.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

800

780

6406242.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

8,707

7,043

6406410.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

5,060

4,686

6406527.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

7,772

7,447

6406688.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

913

865

6406704.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

3,885

3,769

6406793.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

4,457

4,282

6406886.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

961

897

6406913.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

14,372

12,350

6407281.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

7,087

6,709

6407456.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

6,958

6,628

6407517.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

951

911

6407526.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

17,082

16,559

6407857.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

17,367

16,407

6408116.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

16,759

16,134

6408408.SQ.FTS.B,

Zero

Cpn,

8/13/24

...

38,270

37,100

6408793.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

4,019

3,829

6408893.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

34,037

32,222

6409718.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

501

490

6409759.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

851

824

6409806.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

3,646

3,546

6409917.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

4,882

4,671

6409999.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

2,765

2,431

6410034.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

6,362

6,110

6410113.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

7,932

7,539

6410459.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

779

735

6410478.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

6,836

6,485

6410608.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

24,316

21,864

6410937.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

1,093

1,054

6410971.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

6,588

6,264

6411129.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

2,596

2,261

6411156.SQ.FTS.B,

Zero

Cpn,

8/14/24

...

52,464

48,362

6411960.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

1,643

1,559

6412035.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

3,414

3,131

6412147.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

4,717

4,471

6412219.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

1,225

1,195

6412264.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

1,521

1,386

6412310.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

4,757

4,401

6412453.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

2,649

2,540

6412548.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

24,240

23,094

6413090.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

14,328

12,127

6413381.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

26,610

25,179

6413938.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

11,008

10,582

6414097.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

5,587

5,068

6414217.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

29,858

28,236

6414500.SQ.FTS.B,

Zero

Cpn,

8/15/24

...

67,167

61,797

6417892.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

436

420

6417940.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

31,917

30,366

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6418605.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

$

7,555

$

5,802

6418822.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

2,016

1,908

6418882.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

10,629

10,255

6419246.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

5,610

5,386

6419392.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

14,020

10,258

6419663.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

12,673

8,947

6419928.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

201

190

6419930.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

1,026

991

6419949.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

51,325

49,330

6420983.SQ.FTS.B,

Zero

Cpn,

8/16/24

...

18,322

17,544

6421274.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

1,520

1,301

6421420.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

14,204

13,580

6421824.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

10,572

9,917

6422193.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

4,774

4,581

6422335.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

3,595

3,426

6422493.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

2,239

2,089

6422559.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

12,182

10,452

6422816.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

3,134

3,010

6422872.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

37,286

35,650

6423450.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

2,084

1,995

6423527.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

6,623

6,392

6423716.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

1,445

1,384

6423780.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

2,660

2,492

6423847.SQ.FTS.B,

Zero

Cpn,

8/17/24

...

16,693

15,439

6424176.SQ.FTS.B,

Zero

Cpn,

8/18/24

...

46,574

42,030

6424759.SQ.FTS.B,

Zero

Cpn,

8/18/24

...

8,007

5,701

6424963.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

6,481

6,218

6425057.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

7,417

7,116

6425163.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

571

550

6425198.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

5,875

5,631

6425260.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

1,633

1,550

6425282.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

483

469

6425295.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

5,798

5,541

6425362.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

1,211

1,156

6425371.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

5,001

4,781

6425440.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

1,454

1,398

6425498.SQ.FTS.B,

Zero

Cpn,

8/19/24

...

16,865

16,264

6425709.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

1,580

1,535

6425728.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

2,312

2,186

6425760.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

2,972

2,709

6425836.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

7,309

6,987

6425905.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

6,896

6,600

6426034.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

844

802

6426051.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

3,548

3,327

6426117.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

8,233

7,617

6426228.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

4,980

4,691

6426293.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

994

887

6426300.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

5,503

5,257

6426378.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

8,155

7,765

6426452.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

26,085

22,179

6426769.SQ.FTS.B,

Zero

Cpn,

8/20/24

...

7,588

7,081

6427044.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

11,239

10,725

6427311.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

2,121

2,036

6427394.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

24,535

23,461

6428099.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

17,000

16,158

6428486.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

4,134

3,982

6428569.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

8,494

8,147

6428676.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

1,294

1,260

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6428704.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

$

5,178

$

4,922

6428786.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

4,043

3,114

6428821.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

2,085

1,974

6428900.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

10,305

9,782

6429057.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

11,113

10,691

6429331.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

2,321

2,115

6429360.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

33,248

31,891

6429873.SQ.FTS.B,

Zero

Cpn,

8/21/24

...

25,126

24,093

6430083.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

6,248

5,838

6430225.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

833

801

6430236.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

27,053

25,844

6430693.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

12,552

10,250

6431015.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

7,389

6,636

6431161.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

16,073

15,477

6431580.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

2,426

2,309

6431613.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

5,516

5,276

6432176.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

2,187

2,113

6432211.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

3,529

3,390

6432260.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

43,512

40,902

6432819.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

1,070

1,018

6432840.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

7,519

6,473

6432973.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

2,534

2,413

6433021.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

570

553

6433051.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

2,776

2,262

6433092.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

2,368

2,219

6433182.SQ.FTS.B,

Zero

Cpn,

8/22/24

...

24,528

23,735

6435236.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

24,111

23,149

6435503.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

7,682

7,351

6435561.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

3,891

3,653

6435587.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

13,756

13,217

6435882.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

4,833

4,633

6436087.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

2,714

2,614

6436188.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

956

760

6436224.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

3,010

2,918

6436390.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

5,478

4,717

6436569.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

6,265

5,871

6436784.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

1,065

1,015

6436804.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

3,607

3,477

6436884.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

23,278

21,993

6439473.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

407

394

6439478.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

5,330

4,999

6439581.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

1,685

1,398

6439616.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

4,566

4,385

6439657.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

4,567

4,364

6439737.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

7,088

6,301

6439850.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

9,199

8,690

6439983.SQ.FTS.B,

Zero

Cpn,

8/23/24

...

49,171

47,877

6440981.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

19,549

18,700

6441379.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

6,293

5,893

6441536.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

1,165

1,134

6441592.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

4,708

4,207

6441773.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

8,479

7,280

6442031.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

18,285

17,570

6442480.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

4,972

4,462

6442614.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

2,436

2,303

6442691.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

5,684

5,421

6442768.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

49,556

46,951

6443460.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

12,394

11,219

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6443602.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

$

5,949

$

5,698

6443725.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

6,408

3,799

6443778.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

2,381

2,248

6443882.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

4,404

4,139

6443913.SQ.FTS.B,

Zero

Cpn,

8/24/24

...

23,212

22,320

6444340.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

1,266

1,023

6444365.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

12,204

11,580

6444489.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

1,201

1,154

6444497.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

14,455

13,744

6444717.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

5,545

5,022

6444789.SQ.FTS.B,

Zero

Cpn,

8/25/24

...

13,714

13,343

6445311.SQ.FTS.B,

Zero

Cpn,

8/26/24

...

14,944

14,170

6445595.SQ.FTS.B,

Zero

Cpn,

8/26/24

...

2,279

2,143

6445636.SQ.FTS.B,

Zero

Cpn,

8/26/24

...

13,670

10,367

6446212.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

887

827

6446230.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

23,972

21,904

6447299.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

10,370

9,954

6447683.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

2,419

1,688

6447783.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

6,463

5,985

6447972.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

770

732

6448004.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

3,730

3,516

6448147.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

2,521

2,439

6448230.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

41,174

39,460

6449244.SQ.FTS.B,

Zero

Cpn,

8/27/24

...

6,191

5,933

6449433.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

9,054

8,678

6449585.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,679

2,592

6449652.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

631

616

6449666.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

9,367

9,041

6449941.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

36,376

34,737

6451008.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

3,920

3,778

6451110.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,116

2,004

6451146.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,891

2,739

6451185.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

858

829

6451217.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

8,617

8,059

6451356.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,755

2,689

6451450.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,002

1,822

6451507.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

13,608

13,046

6451730.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

4,313

4,168

6451818.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

42,447

39,260

6452427.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

1,065

1,001

6452462.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

5,408

4,973

6452549.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

6,553

6,280

6452609.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

1,256

1,208

6452634.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

3,467

3,314

6452694.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,839

2,506

6452723.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

1,879

1,064

6452738.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,838

2,695

6452753.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

2,791

2,677

6452770.SQ.FTS.B,

Zero

Cpn,

8/28/24

...

6,034

5,737

6452844.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

1,525

1,265

6452876.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

2,146

1,839

6452903.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

1,014

989

6452929.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

946

904

6452942.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

7,370

6,950

6453032.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

7,068

6,798

6453104.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

2,487

2,387

6453153.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

6,656

6,442

6453306.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

4,917

4,744

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

63

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6453434.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

$

5,969

$

5,676

6453579.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

10,624

10,216

6453799.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

1,518

1,316

6453837.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

9,025

8,556

6453955.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

33,462

31,926

6454314.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

8,838

8,297

6454405.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

49,210

47,141

6454985.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

15,255

14,510

6455205.SQ.FTS.B,

Zero

Cpn,

9/01/24

...

19,729

18,978

6457417.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

5,944

5,623

6457468.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

3,731

3,416

6457547.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

65,582

51,670

6458499.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

5,167

4,795

6458584.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

9,278

8,846

6458708.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

5,639

5,386

6458821.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

4,448

4,195

6458923.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

13,945

12,828

6459160.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

8,071

7,617

6459270.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

58,473

54,435

6460417.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

13,977

13,419

6460667.SQ.FTS.B,

Zero

Cpn,

9/02/24

...

1,478

1,433

6460757.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

5,301

5,119

6461007.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

1,872

1,807

6461088.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

8,592

7,837

6461434.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

20,221

19,268

6461892.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

11,761

11,204

6462068.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

2,328

2,221

6462140.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

9,713

9,258

6462310.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

37,409

34,996

6463011.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

8,131

7,738

6463290.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

1,300

1,260

6463337.SQ.FTS.B,

Zero

Cpn,

9/03/24

...

19,458

17,621

6463659.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

9,890

8,691

6463752.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

1,136

1,087

6463766.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

4,374

4,219

6463822.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

2,939

2,678

6463860.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

2,734

2,593

6463905.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

2,478

2,344

6463928.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

10,199

9,764

6464039.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

3,161

3,028

6464078.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

3,405

3,156

6464106.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

2,169

2,098

6464136.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

15,448

14,735

6464356.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

718

685

6464361.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

8,304

7,913

6464459.SQ.FTS.B,

Zero

Cpn,

9/04/24

...

791

741

6464466.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

6,995

6,658

6464558.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

2,376

2,073

6464587.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

9,660

9,332

6464741.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

2,216

1,909

6464766.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

768

718

6464801.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

8,516

8,264

6464959.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

11,040

10,569

6465084.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

11,302

10,782

6465222.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

4,380

4,178

6465282.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

1,436

1,404

6465305.SQ.FTS.B,

Zero

Cpn,

9/05/24

...

7,843

7,469

6465421.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

1,944

1,894

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6465655.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

$

3,324

$

2,879

6465707.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

221

214

6465715.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

3,777

3,663

6466891.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

1,320

1,291

6466934.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

4,369

3,945

6466996.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

955

934

6467022.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

12,304

11,772

6467319.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

4,162

3,994

6467395.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

5,508

5,294

6467555.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

7,646

6,961

6467681.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

5,574

5,034

6467754.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

12,615

12,093

6467933.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

1,066

1,021

6467942.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

38,884

37,710

6468791.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

2,142

1,754

6468823.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

953

911

6468835.SQ.FTS.B,

Zero

Cpn,

9/06/24

...

5,792

5,564

6469001.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

3,462

3,295

6469096.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

9,579

9,302

6469373.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

3,307

3,229

6469467.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

13,139

11,811

6469746.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

4,959

4,683

6469935.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

1,662

1,465

6469991.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

1,887

1,831

6470076.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

843

804

6470092.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

7,684

7,370

6470311.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

18,339

17,324

6470855.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

2,980

2,848

6470902.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

9,075

8,726

6471045.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

2,601

1,958

6471075.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

7,474

7,055

6471141.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

17,808

17,190

6471460.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

1,836

1,588

6471497.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

60,068

57,318

6472384.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

3,360

3,140

6472450.SQ.FTS.B,

Zero

Cpn,

9/07/24

...

15,876

14,954

6472645.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

3,010

2,886

6472718.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

828

773

6472751.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

25,277

24,397

6473168.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

19,337

17,839

6473520.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

1,177

1,149

6473644.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

28,989

27,748

6474286.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

14,417

13,490

6474853.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

9,428

9,101

6475060.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

10,248

9,354

6475301.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

3,994

3,690

6475346.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

1,534

1,498

6475399.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

723

703

6475412.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

1,802

1,735

6475454.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

4,013

3,712

6475554.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

8,062

6,231

6475710.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

1,352

1,201

6475757.SQ.FTS.B,

Zero

Cpn,

9/08/24

...

3,370

3,183

6477774.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

77,810

68,702

6479516.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

1,646

1,563

6479552.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

1,074

1,037

6479577.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

61,983

59,279

6480370.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

30,660

28,407

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6480941.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

$

6,576

$

6,002

6481120.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

7,635

7,281

6481318.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

995

859

6481328.SQ.FTS.B,

Zero

Cpn,

9/09/24

...

10,718

9,729

6481464.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

13,725

13,114

6481821.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

7,558

7,129

6481997.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

5,212

4,986

6482127.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

1,027

984

6482150.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

1,277

1,216

6482189.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

7,409

7,225

6482477.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

1,975

1,848

6482559.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

1,170

1,141

6482592.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

20,724

19,630

6483182.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

20,945

19,833

6483513.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

11,393

10,360

6483648.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

3,774

3,543

6483692.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

1,581

1,532

6483724.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

3,425

3,324

6483792.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

3,672

3,299

6483819.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

18,968

17,856

6484049.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

3,201

3,085

6484103.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

15,134

14,587

6484336.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

33,887

29,570

6484844.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

9,689

9,286

6484909.SQ.FTS.B,

Zero

Cpn,

9/10/24

...

5,198

4,808

6484986.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

4,350

4,159

6485034.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

4,260

4,078

6485101.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

4,465

4,270

6485148.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

16,959

10,358

6485317.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

3,585

3,404

6485375.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

674

654

6485400.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

8,781

8,416

6485515.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

1,169

1,056

6485531.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

4,453

4,268

6485588.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

1,839

1,765

6485616.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

14,328

13,539

6485785.SQ.FTS.B,

Zero

Cpn,

9/11/24

...

606

591

6485825.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

16,942

16,314

6486133.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

5,803

5,553

6486213.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

2,488

2,381

6486340.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

1,223

1,143

6486361.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

4,438

4,284

6486448.SQ.FTS.B,

Zero

Cpn,

9/12/24

...

8,850

8,275

6486663.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

29,969

26,126

6487708.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

8,440

8,013

6487929.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

1,203

1,090

6487962.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

9,639

9,215

6488228.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

6,969

5,755

6488356.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

5,563

5,393

6488525.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

1,908

1,835

6488588.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

19,016

18,265

6489083.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

9,348

8,709

6489330.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

3,524

3,293

6489405.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

2,913

2,834

6489454.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

2,146

2,031

6489483.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

14,754

13,688

6489711.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

17,790

15,396

6490057.SQ.FTS.B,

Zero

Cpn,

9/13/24

...

7,383

6,617

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6490385.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

$

3,629

$

3,348

6490529.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

6,908

5,675

6490644.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

2,961

2,778

6490736.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

12,776

12,218

6491167.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

6,695

6,475

6491397.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

759

717

6491440.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

2,285

2,193

6491504.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

5,265

4,325

6491615.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

6,149

5,761

6491686.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

15,079

13,999

6491982.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

3,001

2,857

6492051.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

5,351

5,130

6492163.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

414

404

6492188.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

6,153

5,868

6492333.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

3,775

3,554

6492428.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

820

796

6492467.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

7,764

7,432

6492655.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

3,974

3,849

6492699.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

1,887

1,733

6492729.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

473

461

6492739.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

5,918

5,635

6492827.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

1,205

1,153

6492843.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

11,856

11,375

6493034.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

4,537

4,413

6493143.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

6,651

6,316

6493234.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

17,346

16,698

6493440.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

4,068

3,352

6493467.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

3,591

3,061

6493514.SQ.FTS.B,

Zero

Cpn,

9/14/24

...

22,737

21,105

6493797.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

5,683

5,379

6493935.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

4,083

3,742

6493981.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

4,469

4,314

6494091.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

4,248

3,945

6494266.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

19,612

18,443

6494825.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

3,726

3,494

6494878.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

1,946

1,871

6494926.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

9,760

9,247

6495084.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

2,055

1,994

6495115.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

4,395

4,161

6495171.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

18,695

17,649

6495862.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

613

507

6495876.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

20,046

19,174

6496050.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

2,821

2,434

6496082.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

18,598

16,975

6496235.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

11,243

10,697

6496377.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

10,772

10,144

6496520.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

1,989

1,861

6496559.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

27,805

26,266

6496900.SQ.FTS.B,

Zero

Cpn,

9/15/24

...

38,748

37,124

6499056.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

1,102

1,057

6499095.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

28,405

26,962

6499785.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

367

358

6499802.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

4,289

4,067

6499952.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

4,893

4,679

6500088.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

3,900

3,735

6500163.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

19,963

17,982

6500650.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

875

849

6500689.SQ.FTS.B,

Zero

Cpn,

9/16/24

...

86,575

80,898

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

65

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6502610.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

$

3,657

$

3,523

6502748.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

1,927

1,728

6502762.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

12,557

11,891

6503026.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

3,258

2,770

6503133.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

1,945

1,878

6503201.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

2,515

2,408

6503254.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

880

835

6503282.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

12,747

11,969

6503671.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

12,877

12,351

6503916.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

31,531

29,693

6504467.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

11,243

10,846

6504651.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

13,142

12,666

6504928.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

4,282

4,144

6505187.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

9,441

9,054

6505246.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

15,558

13,220

6505415.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

869

832

6505434.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

5,381

5,155

6505579.SQ.FTS.B,

Zero

Cpn,

9/17/24

...

5,578

5,195

6505688.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

12,644

11,731

6505844.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

4,938

4,777

6505929.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

1,017

919

6505938.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

1,291

1,245

6505960.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

4,992

4,794

6506049.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

6,875

6,478

6506151.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

731

704

6506162.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

2,296

2,186

6506191.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

1,897

1,810

6506217.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

1,306

833

6506231.SQ.FTS.B,

Zero

Cpn,

9/18/24

...

16,988

16,343

6506478.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

2,576

2,490

6506524.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

2,730

2,597

6506564.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

4,926

4,060

6506649.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

12,993

12,428

6506817.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

9,875

9,305

6506923.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

6,094

5,843

6506988.SQ.FTS.B,

Zero

Cpn,

9/19/24

...

5,772

4,959

6507269.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

4,218

4,034

6507459.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

7,028

6,518

6507612.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

3,847

3,686

6507748.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

1,132

1,107

6507816.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

7,669

6,731

6508052.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

2,232

2,025

6508097.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

3,111

3,019

6508176.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

257

241

6508186.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

19,899

19,234

6508534.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

4,533

4,217

6508622.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

5,128

4,793

6508745.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

6,016

5,752

6508842.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

13,258

11,591

6509112.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

3,694

3,488

6509173.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

2,156

2,027

6509202.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

5,668

5,442

6509277.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

5,134

4,872

6509330.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

8,396

8,021

6509450.SQ.FTS.B,

Zero

Cpn,

9/20/24

...

70,350

67,260

6510756.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

1,982

1,886

6510832.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

7,545

7,253

6511032.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

5,086

4,821

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6511111.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

$

1,237

$

1,145

6511163.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

4,006

3,830

6511241.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

7,860

7,436

6511428.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

15,951

13,084

6511770.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

540

478

6511781.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

97,457

92,680

6513331.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

20,255

19,412

6513609.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

570

555

6513636.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

16,491

15,495

6513891.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

2,720

2,313

6513921.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

3,551

3,399

6513934.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

770

734

6513946.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

10,494

10,025

6514051.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

2,271

2,185

6514102.SQ.FTS.B,

Zero

Cpn,

9/21/24

...

3,678

3,527

6514129.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

12,124

11,593

6514328.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

13,784

13,143

6514665.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

4,900

4,619

6514800.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

1,798

1,750

6514843.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

4,106

3,671

6514921.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

1,412

1,255

6514936.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

1,512

1,464

6514979.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

11,228

10,590

6515207.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

7,774

7,363

6515331.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

12,042

11,597

6515564.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

19,260

18,174

6515698.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

21,905

21,217

6515990.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

35,486

30,357

6516568.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

2,902

2,746

6516640.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

1,726

1,622

6516654.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

5,871

5,578

6516714.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

3,250

3,120

6516752.SQ.FTS.B,

Zero

Cpn,

9/22/24

...

41,273

38,315

6518779.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

13,553

12,735

6519017.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

4,587

4,308

6519119.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

26,952

25,004

6520171.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

5,401

5,012

6520294.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

39,352

36,855

6520794.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

103,182

96,906

6522390.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

4,779

4,419

6522460.SQ.FTS.B,

Zero

Cpn,

9/23/24

...

3,625

3,326

6522552.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

6,133

5,717

6522783.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

16,044

15,070

6523223.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

1,605

1,491

6523267.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

9,545

8,932

6523516.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

2,081

1,926

6523578.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

7,748

7,209

6523692.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

5,382

5,046

6523808.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

633

578

6523846.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

9,112

8,554

6524017.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

86,089

79,867

6525367.SQ.FTS.B,

Zero

Cpn,

9/24/24

...

47,043

42,494

6525625.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

740

679

6525654.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

20,585

18,971

6526004.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

4,395

4,064

6526048.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

313

286

6526051.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

4,175

3,856

6526119.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

4,526

4,191

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6526189.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

$

5,047

$

4,700

6526245.SQ.FTS.B,

Zero

Cpn,

9/25/24

...

12,490

11,650

6526408.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

1,782

1,644

6526432.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

3,841

3,607

6526489.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

2,089

1,915

6526516.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

1,984

1,837

6526547.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

2,842

2,651

6526582.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

1,007

932

6526591.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

3,150

2,914

6526618.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

2,774

2,524

6526654.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

3,963

3,643

6526709.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

8,729

8,066

6526831.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

8,161

7,614

6527011.SQ.FTS.B,

Zero

Cpn,

9/26/24

...

25,255

23,632

6528009.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

16,920

15,648

6528462.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

13,196

12,140

6528692.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

19,406

17,788

6529125.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

2,674

2,404

6529184.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

5,816

5,380

6529284.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

7,021

6,592

6529388.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

690

629

6529391.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

16,497

15,400

6529622.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

1,516

1,361

6529658.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

2,970

2,746

6529703.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

2,806

2,607

6529852.SQ.FTS.B,

Zero

Cpn,

9/27/24

...

716

636

6530839.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

8,472

7,904

6530993.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

6,785

6,317

6531074.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

25,866

24,081

6531685.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

1,427

1,311

6531719.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

12,349

11,387

6532045.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

9,023

8,369

6532270.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

5,815

5,368

6532409.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

4,494

4,217

6532458.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

13,006

11,980

6532666.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

4,283

3,932

6532722.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

10,723

10,060

6532878.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

19,062

17,727

6533163.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

11,500

10,634

6533333.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

17,794

16,652

6533670.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

10,694

9,898

6533786.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

8,798

8,259

6533923.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

1,404

1,294

6533943.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

6,323

5,880

6534031.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

5,570

5,146

6534091.SQ.FTS.B,

Zero

Cpn,

9/28/24

...

20,424

18,882

6534215.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

517

452

6534257.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

8,523

7,949

6534305.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

1,361

1,251

6534326.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

6,940

6,475

6534533.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

11,954

11,181

6534830.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

5,149

4,747

6534962.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

8,769

8,085

6535186.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

7,209

6,745

6535323.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

10,225

9,501

6535514.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

6,190

5,827

6535607.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

3,341

3,145

6535953.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

10,580

9,862

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6536357.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

$

8,577

$

7,877

6536466.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

4,789

4,433

6536530.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

30,466

28,370

6536919.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

5,818

5,353

6537003.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

2,043

1,918

6537042.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

8,776

8,127

6537176.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

8,900

8,358

6537318.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

7,655

7,188

6537448.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

1,481

1,356

6537472.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

2,567

2,372

6537521.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

14,935

13,943

6537724.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

1,895

1,728

6537747.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

4,022

3,690

6537801.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

15,652

14,420

6537905.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

9,638

8,993

6537983.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

935

849

6537991.SQ.FTS.B,

Zero

Cpn,

9/29/24

...

1,174

1,074

6539700.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

21,006

19,440

6540350.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

965

899

6540379.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

1,549

1,405

6540452.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

5,985

5,602

6540680.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

1,413

1,301

6540738.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

9,904

9,297

6540939.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

13,010

11,827

6541177.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

7,324

6,873

6541317.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

1,082

989

6541345.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

945

863

6541353.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

4,546

4,209

6541454.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

13,020

12,041

6541653.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

57,792

53,824

6542743.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

607

557

6542756.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

2,973

2,798

6542801.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

20,263

18,850

6543102.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

72,435

66,648

6543166.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

6,603

6,071

6543345.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

8,719

8,180

6543864.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

12,469

11,699

6544451.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

1,000

918

6544501.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

17,175

16,034

6545005.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

9,349

8,718

6545243.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

7,427

6,702

6545514.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

8,987

8,360

6545631.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

16,902

15,863

6545882.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

37,130

33,996

6546612.SQ.FTS.B,

Zero

Cpn,

9/30/24

...

41,726

38,653

6546849.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

10,427

9,811

6547032.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

4,666

4,320

6547095.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

10,732

9,949

6547283.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

1,466

1,345

6547304.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

3,407

3,153

6547360.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

2,974

2,780

6547411.SQ.FTS.B,

Zero

Cpn,

10/01/24

..

29,596

27,688

6547843.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

7,043

6,586

6547935.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

1,294

1,186

6547946.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

2,761

2,591

6547983.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

3,528

3,259

6548032.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

2,232

2,087

6548064.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

2,125

1,963

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

67

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6548118.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

$

2,104

$

1,872

6548177.SQ.FTS.B,

Zero

Cpn,

10/02/24

..

5,380

4,961

6548459.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

2,024

1,889

6548489.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

2,133

1,969

6548586.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

1,874

1,738

6548636.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

1,726

1,581

6548750.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

12,750

11,997

6549184.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

7,664

7,195

6549425.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

3,060

2,862

6549468.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

6,159

5,720

6549603.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

2,759

2,589

6549754.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

4,926

4,590

6549954.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

4,751

4,428

6550151.SQ.FTS.B,

Zero

Cpn,

10/03/24

..

106,590

100,036

6551736.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

2,662

2,473

6551856.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

1,951

1,819

6551930.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

6,387

6,007

6552065.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

2,128

1,997

6552110.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

19,535

17,932

6552448.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

19,988

18,572

6552948.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

1,996

1,856

6552996.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

6,347

5,956

6553144.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

4,909

4,551

6553220.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

9,789

9,180

6553336.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

6,203

5,836

6553419.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

50,141

46,672

6554242.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

26,490

24,856

6554737.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

3,905

3,618

6554770.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

3,555

3,317

6554844.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

2,661

2,448

6554875.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

10,367

9,593

6554986.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

3,636

3,406

6555041.SQ.FTS.B,

Zero

Cpn,

10/04/24

..

62,652

58,965

6555344.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

3,801

3,495

6555457.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

4,552

4,190

6555517.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

4,607

4,302

6555644.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

3,429

3,191

6555719.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

3,676

3,380

6555850.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

6,358

5,845

6556002.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

5,332

4,972

6556138.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

2,469

2,277

6556175.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

10,477

9,782

6556395.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

4,252

3,965

6556451.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

17,369

16,117

6556820.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

773

649

6556871.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

2,783

2,563

6556964.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

3,252

3,046

6557037.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

3,885

3,555

6557065.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

29,035

26,974

6557603.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

6,592

6,188

6557695.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

14,359

13,092

6558022.SQ.FTS.B,

Zero

Cpn,

10/05/24

..

107,733

100,995

6559552.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

3,042

2,821

6559711.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

4,220

3,902

6559792.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

14,565

13,465

6560193.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

4,542

4,210

6560334.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

6,098

5,718

6560547.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

1,819

1,670

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6560576.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

$

4,417

$

4,144

6560737.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

1,528

1,403

6560790.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

3,758

3,463

6560968.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

2,189

2,021

6561081.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

7,368

6,782

6561336.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

6,362

5,966

6561504.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

43,497

40,535

6562670.SQ.FTS.B,

Zero

Cpn,

10/06/24

..

26,604

24,571

6563057.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

1,776

1,655

6563116.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

1,547

1,432

6563182.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

3,598

3,365

6563299.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

2,107

1,945

6563384.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

687

604

6563410.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

14,956

13,902

6563953.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

4,908

4,506

6564134.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

3,764

3,501

6564233.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

26,634

24,472

6564756.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

42,553

39,216

6565517.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

5,088

4,734

6565613.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

2,466

2,292

6565661.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

2,319

2,121

6565723.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

1,875

1,732

6565762.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

2,504

2,325

6565793.SQ.FTS.B,

Zero

Cpn,

10/07/24

..

25,594

23,861

6566178.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

12,446

11,467

6566292.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

5,534

5,062

6566349.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

4,359

4,088

6566403.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

19,015

17,678

6566625.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

15,692

14,584

6566798.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

1,906

1,749

6566816.SQ.FTS.B,

Zero

Cpn,

10/08/24

..

12,932

11,978

6566945.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

2,217

2,056

6566968.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

10,947

10,021

6567099.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

1,344

1,240

6567119.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

1,542

1,428

6567140.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

21,416

19,905

6567415.SQ.FTS.B,

Zero

Cpn,

10/09/24

..

11,665

10,875

6567773.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

1,915

1,768

6567913.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

2,021

1,847

6567990.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

18,977

17,782

6568416.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

2,674

2,449

6568530.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

4,396

4,057

6568594.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

159

146

6568600.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

5,348

5,014

6568729.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

5,399

5,046

6568860.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

9,092

8,458

6569010.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

5,249

4,924

6569076.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

19,045

17,344

6569447.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

3,124

2,877

6569497.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

4,285

4,019

6569530.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

9,526

8,777

6569642.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

11,668

10,976

6569857.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

2,668

2,481

6569922.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

1,430

1,314

6569951.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

21,158

19,653

6570379.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

20,961

19,591

6570607.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

4,370

4,099

6570679.SQ.FTS.B,

Zero

Cpn,

10/10/24

..

30,215

27,958

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6571245.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

$

10,811

$

9,991

6571537.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

3,077

2,861

6571609.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

12,474

11,596

6571945.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

4,461

4,129

6572100.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

4,351

4,093

6572171.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

2,668

2,508

6572243.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

7,599

7,009

6572397.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

2,704

2,475

6572466.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

1,309

1,197

6572521.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

4,058

3,796

6572604.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

7,495

6,935

6572718.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

1,489

1,372

6572748.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

2,305

2,136

6572810.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

5,499

5,095

6572938.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

2,172

2,037

6572977.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

53,565

49,932

6573851.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

36,020

33,674

6574331.SQ.FTS.B,

Zero

Cpn,

10/11/24

..

24,273

22,203

6574590.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

4,091

3,743

6574678.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

8,257

7,694

6575241.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

3,647

3,416

6575286.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

5,797

5,302

6575350.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

52,438

49,163

6576235.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

1,735

1,568

6576266.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

2,684

2,510

6576304.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

1,246

1,123

6576333.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

24,813

22,501

6576712.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

2,113

1,969

6576750.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

816

763

6576761.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

5,441

5,053

6576817.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

39,281

36,353

6577518.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

8,124

7,490

6577636.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

5,786

5,373

6577747.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

1,987

1,814

6577779.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

12,509

11,710

6577955.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

2,314

2,129

6577981.SQ.FTS.B,

Zero

Cpn,

10/12/24

..

19,195

17,815

6579840.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

6,647

6,095

6579977.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

4,548

4,258

6580068.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

16,570

15,444

6580399.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

5,827

5,375

6580597.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

5,898

5,428

6580754.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

8,896

8,264

6580943.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

32,295

29,919

6581588.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

1,318

1,236

6581607.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

2,888

2,662

6581647.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

964

880

6581658.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

9,342

8,687

6581786.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

5,853

5,349

6581897.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

17,259

16,088

6582216.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

6,690

6,204

6582337.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

5,026

4,613

6582394.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

23,538

21,855

6582712.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

2,437

2,264

6582733.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

1,961

1,822

6582759.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

13,489

12,620

6583053.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

4,444

4,115

6583101.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

10,473

9,680

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6583189.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

$

6,026

$

5,552

6583280.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

3,926

3,584

6583335.SQ.FTS.B,

Zero

Cpn,

10/13/24

..

11,151

10,275

6583419.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,706

2,525

6583516.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

24,764

22,983

6584141.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

4,613

4,314

6584224.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,464

2,303

6584272.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,194

2,053

6584321.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

5,475

5,132

6584430.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

27,448

25,356

6584904.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

11,956

11,207

6585083.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

5,536

5,180

6585188.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

18,568

17,185

6585390.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

10,528

9,758

6585598.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

16,158

15,062

6585961.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

11,044

10,228

6586037.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

19,059

17,695

6586220.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

3,147

2,906

6586259.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,021

1,862

6586280.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,232

2,039

6586332.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,319

2,161

6586360.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

6,499

6,076

6586488.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

1,869

1,718

6586553.SQ.FTS.B,

Zero

Cpn,

10/14/24

..

2,720

2,504

6586586.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

4,682

4,380

6586654.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

1,077

987

6586666.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

4,418

4,133

6586711.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

4,485

4,105

6586764.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

14,054

13,146

6586919.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

8,173

7,469

6586996.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

4,518

4,228

6587038.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

2,951

2,713

6587070.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

2,877

2,670

6587109.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

1,721

1,595

6587135.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

1,451

1,340

6587152.SQ.FTS.B,

Zero

Cpn,

10/15/24

..

12,532

11,722

6587272.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

22,302

20,634

6587500.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

2,134

1,959

6587523.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

13,566

12,513

6587662.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

5,753

5,315

6587726.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

11,684

10,818

6587839.SQ.FTS.B,

Zero

Cpn,

10/16/24

..

15,232

14,074

6588192.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

7,205

6,714

6588340.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

2,238

2,091

6588371.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

6,105

5,681

6588545.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

18,730

17,524

6589018.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

19,401

18,079

6589277.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

38,776

36,135

6589821.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

6,163

5,772

6589877.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

3,996

3,711

6589926.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

52,856

49,118

6590502.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

38,858

36,216

6590919.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

15,346

14,203

6591053.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

22,483

20,900

6591354.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

5,360

4,911

6591405.SQ.FTS.B,

Zero

Cpn,

10/17/24

..

11,081

10,383

6591444.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

2,193

2,010

6591519.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

50,321

46,489

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

69

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

6592468.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

$

27,534

$

25,581

6592840.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

3,855

3,606

6592890.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

2,537

2,374

6592925.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

3,944

3,643

6592991.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

2,286

2,112

6593036.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

2,733

2,556

6593081.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

63,997

59,116

6593788.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

25,369

23,491

6594185.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

15,892

14,822

6594281.SQ.FTS.B,

Zero

Cpn,

10/18/24

..

71,625

66,999

6594535.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

24,062

22,349

6595155.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

3,672

3,434

6595212.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

6,253

5,772

6595336.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

23,660

21,974

6595701.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

4,036

3,729

6595768.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

1,807

1,684

6595804.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

6,752

6,253

6595923.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

14,667

13,669

6596108.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

1,037

946

6596114.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

1,877

1,724

6596139.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

8,419

7,800

6596278.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

61,036

56,882

6596934.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

13,777

12,642

6597111.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

1,931

1,799

6597134.SQ.FTS.B,

Zero

Cpn,

10/19/24

..

11,425

10,613

6598685.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

33,382

30,816

6599632.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

28,078

25,998

6600209.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

8,633

8,073

6600369.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

9,389

8,780

6600486.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

4,946

4,606

6600558.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

3,986

3,721

6600624.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

1,994

1,825

6600631.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

8,074

7,521

6600801.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

1,196

1,097

6600811.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

3,710

3,447

6600878.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

6,501

6,004

6601001.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

52,699

48,794

6601726.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

954

891

6601739.SQ.FTS.B,

Zero

Cpn,

10/20/24

..

11,981

11,205

6601759.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

2,297

2,097

6601801.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

106,880

99,551

6603713.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

3,107

2,843

6603765.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

23,829

22,112

6604167.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

4,974

4,550

6604282.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

1,317

1,209

6604327.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

1,420

1,311

6604362.SQ.FTS.B,

Zero

Cpn,

10/21/24

..

1,931

1,768

6604385.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

2,359

2,196

6604416.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

1,504

1,379

6604422.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

2,153

1,983

6604437.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

39,490

36,648

6604802.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

8,969

8,324

6604862.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

1,373

1,270

6604880.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

1,488

1,389

6604895.SQ.FTS.B,

Zero

Cpn,

10/22/24

..

15,763

14,738

6605052.SQ.FTS.B,

Zero

Cpn,

10/23/24

..

19,512

18,012

6605226.SQ.FTS.B,

Zero

Cpn,

10/23/24

..

21,403

19,861

6605375.SQ.FTS.B,

Zero

Cpn,

10/23/24

..

1,895

1,739

Description

Principal

Amount

Value

Block,

Inc.

(continued)

6605388.SQ.FTS.B,

Zero

Cpn,

10/23/24

..

$

16,474

$

15,113

6605788.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

1,286

1,174

6605819.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

5,118

4,751

6605987.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

31,310

29,158

6606655.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

31,843

29,392

6607172.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

7,854

7,343

6607281.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

847

791

6607284.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

8,608

7,900

6607385.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

7,836

7,272

6607464.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

92,338

85,464

6608364.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

2,191

2,025

6608375.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

4,360

3,987

6608402.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

2,293

2,135

6608419.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

13,710

12,724

6608485.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

7,216

6,661

6608563.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

9,131

8,430

6608623.SQ.FTS.B,

Zero

Cpn,

10/24/24

..

9,626

8,964

6608756.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

11,901

11,041

6608906.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

10,479

9,772

6609034.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

17,781

16,413

6609603.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

4,196

3,880

6609686.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

1,874

1,749

6609720.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

13,041

12,192

6609917.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

5,670

5,301

6610005.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

21,362

19,720

6610217.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

3,446

3,181

6610240.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

13,897

12,828

6610498.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

17,333

15,903

6610814.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

232

212

6610822.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

3,999

3,711

6610854.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

2,846

2,650

6610873.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

53,865

50,357

6611556.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

1,139

1,060

6611559.SQ.FTS.B,

Zero

Cpn,

10/25/24

..

13,892

12,987

4575478.SQ.FTS.B,

Zero

Cpn,

3/30/33

...

436

63

4578615.SQ.FTS.B,

Zero

Cpn,

4/01/33

...

1,543

153

4580233.SQ.FTS.B,

Zero

Cpn,

4/01/33

...

862

133

4581341.SQ.FTS.B,

Zero

Cpn,

4/02/33

...

3,410

532

4583735.SQ.FTS.B,

Zero

Cpn,

4/04/33

...

400

43

4583983.SQ.FTS.B,

Zero

Cpn,

4/04/33

...

3,383

813

4585288.SQ.FTS.B,

Zero

Cpn,

4/04/33

...

13,554

1,254

4587010.SQ.FTS.B,

Zero

Cpn,

4/05/33

...

1,755

258

4588245.SQ.FTS.B,

Zero

Cpn,

4/05/33

...

3,204

706

4589702.SQ.FTS.B,

Zero

Cpn,

4/05/33

...

3,489

458

4590358.SQ.FTS.B,

Zero

Cpn,

4/05/33

...

614

98

4593141.SQ.FTS.B,

Zero

Cpn,

4/06/33

...

833

157

4598182.SQ.FTS.B,

Zero

Cpn,

4/07/33

...

1,281

145

4598741.SQ.FTS.B,

Zero

Cpn,

4/07/33

...

97

7

4602285.SQ.FTS.B,

Zero

Cpn,

4/08/33

...

31,712

5,615

4604615.SQ.FTS.B,

Zero

Cpn,

4/09/33

...

13,726

3,070

4604837.SQ.FTS.B,

Zero

Cpn,

4/09/33

...

1,484

385

4604886.SQ.FTS.B,

Zero

Cpn,

4/10/33

...

2,273

312

4606179.SQ.FTS.B,

Zero

Cpn,

4/11/33

...

10,364

641

4606224.SQ.FTS.B,

Zero

Cpn,

4/11/33

...

952

78

4606335.SQ.FTS.B,

Zero

Cpn,

4/11/33

...

2,103

306

4606464.SQ.FTS.B,

Zero

Cpn,

4/11/33

...

12,284

2,154

4607515.SQ.FTS.B,

Zero

Cpn,

4/12/33

...

2,178

289

4609496.SQ.FTS.B,

Zero

Cpn,

4/12/33

...

4,672

741

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

4609551.SQ.FTS.B,

Zero

Cpn,

4/12/33

...

$

5,454

$

620

4610443.SQ.FTS.B,

Zero

Cpn,

4/13/33

...

10,147

2,438

4612920.SQ.FTS.B,

Zero

Cpn,

4/13/33

...

2,172

379

4621133.SQ.FTS.B,

Zero

Cpn,

4/15/33

...

9,443

2,373

4622639.SQ.FTS.B,

Zero

Cpn,

4/15/33

...

3,183

535

4624325.SQ.FTS.B,

Zero

Cpn,

4/16/33

...

2,880

795

4624403.SQ.FTS.B,

Zero

Cpn,

4/17/33

...

646

43

4624869.SQ.FTS.B,

Zero

Cpn,

4/17/33

...

1,488

249

4625082.SQ.FTS.B,

Zero

Cpn,

4/17/33

...

1,330

175

4626298.SQ.FTS.B,

Zero

Cpn,

4/18/33

...

10,268

707

4626514.SQ.FTS.B,

Zero

Cpn,

4/18/33

...

2,949

278

4627586.SQ.FTS.B,

Zero

Cpn,

4/18/33

...

4,624

1,159

4629149.SQ.FTS.B,

Zero

Cpn,

4/19/33

...

6,425

1,907

4632596.SQ.FTS.B,

Zero

Cpn,

4/20/33

...

848

80

4632880.SQ.FTS.B,

Zero

Cpn,

4/20/33

...

209

53

4635753.SQ.FTS.B,

Zero

Cpn,

4/21/33

...

11,156

2,663

4636668.SQ.FTS.B,

Zero

Cpn,

4/21/33

...

5,819

1,896

4638157.SQ.FTS.B,

Zero

Cpn,

4/22/33

...

850

136

4642502.SQ.FTS.B,

Zero

Cpn,

4/25/33

...

1,341

155

4643723.SQ.FTS.B,

Zero

Cpn,

4/25/33

...

2,132

635

4643970.SQ.FTS.B,

Zero

Cpn,

4/26/33

...

2,081

537

4651931.SQ.FTS.B,

Zero

Cpn,

4/28/33

...

84

21

4654291.SQ.FTS.B,

Zero

Cpn,

4/29/33

...

7

1

4656958.SQ.FTS.B,

Zero

Cpn,

4/30/33

...

3,103

998

4657373.SQ.FTS.B,

Zero

Cpn,

4/30/33

...

3,122

1,069

4658038.SQ.FTS.B,

Zero

Cpn,

5/01/33

...

2,065

591

4658320.SQ.FTS.B,

Zero

Cpn,

5/01/33

...

4,578

782

4661015.SQ.FTS.B,

Zero

Cpn,

5/01/33

...

2,307

711

4661890.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

2,289

702

4662184.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

2,428

346

4662309.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

12,037

4,733

4662910.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

1,024

328

4663096.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

27,120

6,863

4663916.SQ.FTS.B,

Zero

Cpn,

5/02/33

...

24,742

4,479

4665676.SQ.FTS.B,

Zero

Cpn,

5/03/33

...

4,628

1,255

4671121.SQ.FTS.B,

Zero

Cpn,

5/04/33

...

4,719

1,164

4675799.SQ.FTS.B,

Zero

Cpn,

5/05/33

...

3,286

525

4677655.SQ.FTS.B,

Zero

Cpn,

5/06/33

...

2,716

681

4677749.SQ.FTS.B,

Zero

Cpn,

5/06/33

...

203

29

4677893.SQ.FTS.B,

Zero

Cpn,

5/06/33

...

2,173

489

4681076.SQ.FTS.B,

Zero

Cpn,

5/08/33

...

1,193

368

4684185.SQ.FTS.B,

Zero

Cpn,

5/08/33

...

259

66

4691756.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

7,269

1,658

4692191.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

9,147

3,627

4692642.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

59

11

4692944.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

89

15

4692982.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

430

46

4693423.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

14,883

4,599

4693941.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

8,872

877

4694140.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

1,320

278

4694200.SQ.FTS.B,

Zero

Cpn,

5/09/33

...

698

227

4701939.SQ.FTS.B,

Zero

Cpn,

5/10/33

...

1,446

500

4706450.SQ.FTS.B,

Zero

Cpn,

5/10/33

...

6,009

1,771

4706808.SQ.FTS.B,

Zero

Cpn,

5/10/33

...

5,406

1,362

4707248.SQ.FTS.B,

Zero

Cpn,

5/11/33

...

641

149

4707511.SQ.FTS.B,

Zero

Cpn,

5/11/33

...

562

239

4708881.SQ.FTS.B,

Zero

Cpn,

5/12/33

...

459

204

4711828.SQ.FTS.B,

Zero

Cpn,

5/12/33

...

3,618

506

Description

Principal

Amount

Value

Block,

Inc.

(continued)

4714060.SQ.FTS.B,

Zero

Cpn,

5/13/33

...

$

1,082

$

258

4714469.SQ.FTS.B,

Zero

Cpn,

5/14/33

...

828

132

4729437.SQ.FTS.B,

Zero

Cpn,

5/17/33

...

484

163

4738688.SQ.FTS.B,

Zero

Cpn,

5/18/33

...

840

265

4747188.SQ.FTS.B,

Zero

Cpn,

5/19/33

...

553

116

4750103.SQ.FTS.B,

Zero

Cpn,

5/20/33

...

8,831

2,152

4750803.SQ.FTS.B,

Zero

Cpn,

5/21/33

...

3,382

776

4754132.SQ.FTS.B,

Zero

Cpn,

5/22/33

...

1,271

634

4764584.SQ.FTS.B,

Zero

Cpn,

5/23/33

...

523

160

4773604.SQ.FTS.B,

Zero

Cpn,

5/24/33

...

9,605

2,695

4773759.SQ.FTS.B,

Zero

Cpn,

5/24/33

...

172

43

4774144.SQ.FTS.B,

Zero

Cpn,

5/24/33

...

1,718

501

4777755.SQ.FTS.B,

Zero

Cpn,

5/24/33

...

468

66

4777853.SQ.FTS.B,

Zero

Cpn,

5/24/33

...

1,361

428

4779439.SQ.FTS.B,

Zero

Cpn,

5/25/33

...

982

242

4779678.SQ.FTS.B,

Zero

Cpn,

5/25/33

...

2,842

1,210

4782528.SQ.FTS.B,

Zero

Cpn,

5/26/33

...

290

34

4785399.SQ.FTS.B,

Zero

Cpn,

5/27/33

...

107

39

25,364,351

Freedom

Financial

Asset

Management

LLC

APP-11695207.FP.FTS.B,

15.49%,

12/12/23

4,168

4,196

APP-11798810.FP.FTS.B,

5.99%,

1/21/24

.

314

314

APP-11878331.FP.FTS.B,

5.99%,

1/22/24

.

4,662

4,703

APP-12050449.FP.FTS.B,

5.99%,

1/22/24

.

2,755

2,776

APP-11694096.FP.FTS.B,

5.99%,

1/30/24

.

2,927

2,956

APP-11723164.FP.FTS.B,

17.99%,

2/01/24

854

851

APP-11550730.FP.FTS.B,

23.99%,

2/03/24

4,509

4,583

APP-11695208.FP.FTS.B,

5.99%,

2/04/24

.

3,320

2,137

APP-12436440.FP.FTS.B,

18.99%,

2/09/24

3,699

3,736

APP-12139572.FP.FTS.B,

5.99%,

3/01/24

.

4,538

4,572

APP-12139722.FP.FTS.B,

5.99%,

3/02/24

.

4,771

4,806

APP-12050193.FP.FTS.B,

5.99%,

3/06/24

.

5,007

5,047

APP-12210758.FP.FTS.B,

22.49%,

3/15/24

8,106

8,174

APP-12412711.FP.FTS.B,

5.99%,

3/16/24

.

4,934

4,978

APP-14865243.FP.FTS.B,

5.99%,

6/10/24

.

5,380

5,425

APP-17433587.FP.FTS.B,

5.99%,

8/12/24

.

6,725

6,801

APP-10161712.FP.FTS.B,

23.99%,

8/15/24

3,007

2,943

APP-16681389.FP.FTS.B,

5.99%,

9/01/24

.

4,756

4,800

APP-16681827.FP.FTS.B,

5.99%,

9/01/24

.

6,797

6,866

APP-16688861.FP.FTS.B,

5.99%,

9/01/24

.

7,315

7,390

APP-16667764.FP.FTS.B,

5.99%,

9/10/24

.

6,812

6,892

APP-16650407.FP.FTS.B,

5.99%,

9/13/24

.

3,409

3,449

APP-17479345.FP.FTS.B,

5.99%,

9/13/24

.

3,576

3,618

APP-17493062.FP.FTS.B,

5.99%,

9/13/24

.

6,326

6,395

APP-17508043.FP.FTS.B,

17.49%,

9/13/24

7,776

7,831

APP-16660226.FP.FTS.B,

5.99%,

9/14/24

.

7,121

7,206

APP-16682744.FP.FTS.B,

11.24%,

9/14/24

14,597

14,787

APP-16652913.FP.FTS.B,

16.24%,

9/14/24

28,388

28,679

APP-17325113.FP.FTS.B,

17.49%,

9/14/24

7,072

7,136

APP-17485719.FP.FTS.B,

5.99%,

9/15/24

.

6,119

6,193

APP-16473194.FP.FTS.B,

10.74%,

9/18/24

10,011

10,147

APP-17492345.FP.FTS.B,

5.99%,

9/19/24

.

7,248

7,336

APP-17451429.FP.FTS.B,

5.99%,

9/24/24

.

7,521

7,618

APP-16336846.FP.FTS.B,

14.24%,

9/24/24

13,417

13,597

APP-17490514.FP.FTS.B,

5.99%,

9/27/24

.

5,024

5,093

APP-10876917.FP.FTS.B,

23.99%,

10/19/24

..........................

4,730

4,689

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

71

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-10901539.FP.FTS.B,

15.49%,

11/27/24

$

18,417

$

18,590

APP-10784743.FP.FTS.B,

23.99%,

11/28/24

8,368

8,452

APP-11694740.FP.FTS.B,

7.49%,

12/15/24

12,352

12,455

APP-11595022.FP.FTS.B,

8.49%,

12/16/24

11,093

11,194

APP-11694411.FP.FTS.B,

13.99%,

12/21/24

12,214

3,849

APP-11731526.FP.FTS.B,

16.49%,

12/21/24

8,113

8,166

APP-11694509.FP.FTS.B,

9.74%,

12/22/24

8,158

8,217

APP-11736995.FP.FTS.B,

17.99%,

12/22/24

6,519

6,573

APP-11695015.FP.FTS.B,

18.49%,

12/22/24

22,214

22,335

APP-12144621.FP.FTS.B,

25.49%,

1/21/25

6,686

6,657

APP-11798754.FP.FTS.B,

6.99%,

1/22/25

.

18,252

18,437

APP-12148090.FP.FTS.B,

9.74%,

1/22/25

.

11,114

11,224

APP-12167100.FP.FTS.B,

17.99%,

1/22/25

7,663

729

APP-12173761.FP.FTS.B,

25.49%,

1/22/25

6,026

6,004

APP-12185700.FP.FTS.B,

9.74%,

1/23/25

.

8,586

8,673

APP-12164966.FP.FTS.B,

11.74%,

1/23/25

13,110

13,236

APP-12179908.FP.FTS.B,

18.99%,

1/23/25

6,485

6,517

APP-12087415.FP.FTS.B,

12.99%,

1/25/25

16,560

16,676

APP-11924017.FP.FTS.B,

15.99%,

1/28/25

12,118

12,222

APP-11509368.FP.FTS.B,

14.99%,

1/29/25

16,219

16,360

APP-12365615.FP.FTS.B,

16.99%,

2/01/25

6,568

6,589

APP-12414484.FP.FTS.B,

17.24%,

2/02/25

21,555

21,328

APP-12287483.FP.FTS.B,

12.99%,

2/03/25

15,034

15,020

APP-11733782.FP.FTS.B,

15.74%,

2/03/25

13,674

13,481

APP-11725711.FP.FTS.B,

21.99%,

2/03/25

10,550

1,105

APP-11694464.FP.FTS.B,

11.49%,

2/04/25

8,091

8,167

APP-12175602.FP.FTS.B,

17.49%,

2/25/25

8,928

8,981

APP-12085226.FP.FTS.B,

23.99%,

2/25/25

11,532

1,208

APP-12213351.FP.FTS.B,

13.24%,

2/26/25

6,937

7,012

APP-12165485.FP.FTS.B,

18.99%,

3/01/25

10,207

10,127

APP-12141452.FP.FTS.B,

17.49%,

3/04/25

14,162

13,987

APP-12029075.FP.FTS.B,

15.99%,

3/05/25

13,402

13,354

APP-12155870.FP.FTS.B,

15.99%,

3/05/25

13,478

2,545

APP-12173727.FP.FTS.B,

18.49%,

3/05/25

21,559

21,236

APP-12124683.FP.FTS.B,

16.99%,

3/06/25

9,114

9,012

APP-12172939.FP.FTS.B,

9.74%,

3/07/25

.

12,974

13,096

APP-12142572.FP.FTS.B,

15.24%,

3/07/25

36,970

6,983

APP-10156554.FP.FTS.B,

9.49%,

3/08/25

.

16,555

16,715

APP-12188446.FP.FTS.B,

11.99%,

3/08/25

13,152

13,246

APP-12185763.FP.FTS.B,

12.99%,

3/08/25

16,449

16,453

APP-12168882.FP.FTS.B,

17.49%,

3/08/25

16,301

16,227

APP-12175546.FP.FTS.B,

17.99%,

3/08/25

10,864

10,846

APP-12031531.FP.FTS.B,

20.99%,

3/08/25

11,715

11,475

APP-12414365.FP.FTS.B,

9.74%,

3/09/25

.

9,174

9,268

APP-12139801.FP.FTS.B,

9.49%,

3/11/25

.

14,088

14,234

APP-11853561.FP.FTS.B,

17.99%,

3/18/25

10,173

10,194

APP-12050722.FP.FTS.B,

9.49%,

3/20/25

.

13,111

13,255

APP-12413819.FP.FTS.B,

16.99%,

3/21/25

7,601

7,626

APP-12106203.FP.FTS.B,

9.74%,

3/22/25

.

12,603

12,747

APP-12270743.FP.FTS.B,

16.49%,

3/22/25

10,863

10,918

APP-12381356.FP.FTS.B,

9.74%,

3/24/25

.

10,236

10,352

APP-12414413.FP.FTS.B,

17.99%,

3/25/25

11,513

11,568

APP-12178610.FP.FTS.B,

23.99%,

7/09/25

10,035

9,964

APP-15099844.FP.FTS.B,

19.99%,

7/15/25

12,345

12,260

APP-15072875.FP.FTS.B,

15.49%,

7/18/25

13,674

13,720

APP-15063599.FP.FTS.B,

8.24%,

7/23/25

.

19,090

19,328

APP-15073908.FP.FTS.B,

22.74%,

7/25/25

14,032

13,954

APP-15066363.FP.FTS.B,

10.49%,

7/26/25

18,928

19,166

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-15045529.FP.FTS.B,

25.49%,

7/26/25

$

13,385

$

3,131

APP-15052562.FP.FTS.B,

10.24%,

7/29/25

25,619

25,904

APP-15077310.FP.FTS.B,

25.49%,

7/29/25

8,858

8,808

APP-17112174.FP.FTS.B,

11.74%,

8/12/25

10,227

10,334

APP-10157776.FP.FTS.B,

22.49%,

8/13/25

26,748

27,607

APP-12017283.FP.FTS.B,

14.24%,

8/22/25

24,689

24,817

APP-16709443.FP.FTS.B,

15.24%,

9/02/25

12,567

12,649

APP-17041993.FP.FTS.B,

13.74%,

9/05/25

28,543

28,855

APP-17017611.FP.FTS.B,

11.99%,

9/06/25

33,660

34,031

APP-16692788.FP.FTS.B,

10.74%,

9/10/25

9,674

9,791

APP-16716169.FP.FTS.B,

9.49%,

9/14/25

.

12,640

12,805

APP-17284270.FP.FTS.B,

13.74%,

9/15/25

32,469

32,795

APP-16721812.FP.FTS.B,

14.24%,

9/15/25

11,177

11,306

APP-16622583.FP.FTS.B,

15.99%,

9/16/25

11,100

11,052

APP-16911624.FP.FTS.B,

10.99%,

9/18/25

23,242

23,545

APP-17495714.FP.FTS.B,

11.74%,

9/26/25

12,162

12,339

APP-10861885.FP.FTS.B,

15.49%,

10/17/25

..........................

14,937

4,438

APP-10833798.FP.FTS.B,

15.99%,

10/18/25

..........................

13,925

14,200

APP-16948390.FP.FTS.B,

13.99%,

11/27/25

12,261

12,410

APP-11579289.FP.FTS.B,

10.99%,

12/05/25

9,229

9,328

APP-11678649.FP.FTS.B,

18.49%,

12/17/25

5,425

5,367

APP-11737115.FP.FTS.B,

12.49%,

12/18/25

10,991

11,147

APP-11731020.FP.FTS.B,

19.99%,

12/20/25

23,664

24,193

APP-11531737.FP.FTS.B,

13.99%,

12/22/25

9,503

9,629

APP-11442801.FP.FTS.B,

16.49%,

12/22/25

13,984

14,256

APP-10314724.FP.FTS.B,

11.74%,

1/08/26

18,695

18,889

APP-12165054.FP.FTS.B,

10.24%,

1/14/26

13,791

13,962

APP-12174416.FP.FTS.B,

10.24%,

1/22/26

14,946

15,164

APP-12171910.FP.FTS.B,

12.49%,

1/22/26

11,665

11,832

APP-11799040.FP.FTS.B,

15.74%,

1/22/26

30,113

30,517

APP-12199831.FP.FTS.B,

16.99%,

1/22/26

11,461

11,648

APP-12006366.FP.FTS.B,

20.99%,

1/22/26

7,690

7,816

APP-11687753.FP.FTS.B,

13.49%,

1/25/26

16,467

16,730

APP-11657555.FP.FTS.B,

18.49%,

1/28/26

36,462

37,259

APP-12287012.FP.FTS.B,

17.49%,

2/01/26

10,686

10,762

APP-12458983.FP.FTS.B,

15.99%,

2/02/26

9,201

9,298

APP-11579337.FP.FTS.B,

10.99%,

2/04/26

19,380

19,662

APP-11595092.FP.FTS.B,

19.49%,

2/05/26

30,975

31,322

APP-12168235.FP.FTS.B,

19.49%,

2/23/26

7,055

7,171

APP-12139578.FP.FTS.B,

15.24%,

2/24/26

8,758

8,889

APP-12119897.FP.FTS.B,

10.24%,

2/28/26

16,717

16,921

APP-12176488.FP.FTS.B,

14.99%,

3/04/26

15,420

15,625

APP-12033031.FP.FTS.B,

13.99%,

3/05/26

5,759

5,843

APP-12050179.FP.FTS.B,

16.49%,

3/07/26

13,080

13,272

APP-12128364.FP.FTS.B,

13.24%,

3/08/26

18,897

18,973

APP-12463162.FP.FTS.B,

18.49%,

3/10/26

12,477

12,600

APP-12209184.FP.FTS.B,

19.49%,

3/11/26

12,042

3,911

APP-12287014.FP.FTS.B,

16.99%,

3/15/26

12,161

12,317

APP-12466087.FP.FTS.B,

18.99%,

3/15/26

10,475

10,585

APP-12397804.FP.FTS.B,

16.99%,

3/16/26

9,800

9,931

APP-12400371.FP.FTS.B,

16.99%,

3/16/26

16,648

16,857

APP-12372783.FP.FTS.B,

14.99%,

3/17/26

6,208

6,193

APP-12431691.FP.FTS.B,

9.49%,

3/20/26

.

22,842

23,199

APP-12286988.FP.FTS.B,

10.99%,

3/21/26

37,426

38,042

APP-12343526.FP.FTS.B,

16.99%,

3/21/26

19,957

20,252

APP-12448349.FP.FTS.B,

14.99%,

3/23/26

17,017

17,278

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12414671.FP.FTS.B,

15.99%,

3/23/26

$

18,247

$

18,550

APP-12431061.FP.FTS.B,

10.99%,

3/24/26

37,368

38,015

APP-12443256.FP.FTS.B,

16.74%,

3/24/26

30,021

30,500

APP-12414591.FP.FTS.B,

19.49%,

3/24/26

7,526

7,651

APP-12459668.FP.FTS.B,

14.99%,

3/25/26

15,024

15,280

APP-12463779.FP.FTS.B,

15.99%,

3/25/26

10,807

11,007

APP-12464227.FP.FTS.B,

16.24%,

3/25/26

24,715

25,087

APP-12414582.FP.FTS.B,

18.49%,

3/25/26

15,689

15,962

APP-15117837.FP.FTS.B,

22.24%,

7/15/26

12,873

12,901

APP-15068337.FP.FTS.B,

8.99%,

7/20/26

.

14,670

14,890

APP-14891119.FP.FTS.B,

18.74%,

7/24/26

42,770

43,298

APP-15053612.FP.FTS.B,

13.99%,

7/26/26

9,806

9,975

APP-15053337.FP.FTS.B,

17.99%,

7/26/26

10,282

10,401

APP-15004884.FP.FTS.B,

15.99%,

7/27/26

22,868

23,264

APP-15119191.FP.FTS.B,

18.49%,

7/28/26

5,439

5,517

APP-14912105.FP.FTS.B,

20.99%,

7/29/26

16,101

16,056

APP-16636359.FP.FTS.B,

14.74%,

7/30/26

22,791

23,054

APP-16690474.FP.FTS.B,

9.24%,

8/01/26

.

25,725

26,039

APP-17115035.FP.FTS.B,

18.49%,

8/03/26

10,719

10,743

APP-10174955.FP.FTS.B,

19.49%,

8/15/26

25,023

8,104

APP-16637564.FP.FTS.B,

15.99%,

9/03/26

7,413

7,493

APP-16719236.FP.FTS.B,

10.49%,

9/04/26

15,490

15,686

APP-16676602.FP.FTS.B,

11.24%,

9/05/26

21,568

21,859

APP-10573456.FP.FTS.B,

17.49%,

9/10/26

12,448

7,027

APP-16630984.FP.FTS.B,

14.49%,

9/12/26

13,123

13,310

APP-15072534.FP.FTS.B,

20.49%,

9/13/26

10,651

10,668

APP-17112604.FP.FTS.B,

11.74%,

9/15/26

21,803

22,105

APP-16335651.FP.FTS.B,

14.49%,

9/15/26

14,774

15,021

APP-16632934.FP.FTS.B,

14.49%,

9/15/26

43,809

44,573

APP-17464221.FP.FTS.B,

16.74%,

9/15/26

12,151

12,234

APP-17032039.FP.FTS.B,

10.49%,

9/16/26

22,340

22,701

APP-16710569.FP.FTS.B,

15.49%,

9/16/26

21,937

22,317

APP-16640009.FP.FTS.B,

12.49%,

9/19/26

15,589

15,862

APP-10406165.FP.FTS.B,

18.99%,

9/20/26

14,781

15,081

APP-16275007.FP.FTS.B,

12.49%,

9/22/26

12,157

12,349

APP-17279512.FP.FTS.B,

16.74%,

9/22/26

13,152

13,275

APP-17112160.FP.FTS.B,

12.24%,

9/25/26

21,904

22,259

APP-17112272.FP.FTS.B,

14.24%,

9/25/26

19,844

20,182

APP-17457461.FP.FTS.B,

16.74%,

9/27/26

12,436

12,583

APP-16637316.FP.FTS.B,

18.24%,

9/27/26

15,503

15,691

APP-09994260.FP.FTS.B,

17.49%,

9/28/26

25,490

25,876

APP-10618590.FP.FTS.B,

20.49%,

10/26/26

..........................

13,038

7,762

APP-11021919.FP.FTS.B,

17.99%,

11/03/26

14,409

14,547

APP-11341867.FP.FTS.B,

14.99%,

11/20/26

20,192

20,457

APP-11400385.FP.FTS.B,

14.49%,

11/26/26

9,382

9,519

APP-11381442.FP.FTS.B,

20.49%,

11/26/26

20,147

20,488

APP-10850914.FP.FTS.B,

14.24%,

11/29/26

19,749

5,574

APP-11744624.FP.FTS.B,

13.24%,

12/09/26

18,917

19,127

APP-11579549.FP.FTS.B,

13.49%,

12/15/26

37,127

37,612

APP-11695023.FP.FTS.B,

13.49%,

12/15/26

13,376

13,551

APP-11700609.FP.FTS.B,

19.99%,

12/15/26

40,810

41,260

APP-11737058.FP.FTS.B,

22.49%,

12/15/26

8,084

8,163

APP-11671786.FP.FTS.B,

22.49%,

12/16/26

7,349

7,426

APP-11736851.FP.FTS.B,

19.99%,

12/17/26

11,396

11,531

APP-11693245.FP.FTS.B,

18.49%,

12/18/26

16,906

17,124

APP-11719573.FP.FTS.B,

19.99%,

12/18/26

10,639

10,772

APP-11022370.FP.FTS.B,

16.49%,

12/20/26

8,823

8,969

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-11733566.FP.FTS.B,

19.24%,

12/20/26

$

7,570

$

7,385

APP-11740523.FP.FTS.B,

10.99%,

12/21/26

19,273

19,566

APP-11443178.FP.FTS.B,

11.74%,

12/21/26

11,017

11,185

APP-11694985.FP.FTS.B,

12.99%,

12/21/26

10,923

11,088

APP-11695114.FP.FTS.B,

17.49%,

12/21/26

12,943

13,107

APP-11730592.FP.FTS.B,

17.99%,

12/21/26

34,132

34,636

APP-11723942.FP.FTS.B,

19.49%,

12/21/26

39,124

39,692

APP-11563018.FP.FTS.B,

18.99%,

12/22/26

7,993

1,571

APP-11731905.FP.FTS.B,

18.99%,

12/22/26

16,344

16,592

APP-11735206.FP.FTS.B,

19.49%,

12/22/26

18,256

6,018

APP-11730543.FP.FTS.B,

19.99%,

12/22/26

11,809

11,953

APP-11401848.FP.FTS.B,

15.49%,

1/05/27

10,481

10,551

APP-12116526.FP.FTS.B,

18.99%,

1/05/27

12,260

12,282

APP-11146646.FP.FTS.B,

12.74%,

1/07/27

25,909

26,260

APP-11411446.FP.FTS.B,

17.99%,

1/09/27

41,095

41,703

APP-11208788.FP.FTS.B,

20.99%,

1/09/27

14,701

3,176

APP-11397497.FP.FTS.B,

11.99%,

1/10/27

18,810

19,134

APP-11410185.FP.FTS.B,

22.49%,

1/10/27

24,462

24,516

APP-11413059.FP.FTS.B,

13.74%,

1/11/27

10,529

10,684

APP-11946615.FP.FTS.B,

16.49%,

1/11/27

18,224

18,424

APP-12090452.FP.FTS.B,

16.99%,

1/15/27

16,341

16,480

APP-12139980.FP.FTS.B,

19.99%,

1/15/27

6,203

6,246

APP-12032875.FP.FTS.B,

11.24%,

1/16/27

20,150

20,400

APP-12094650.FP.FTS.B,

18.99%,

1/19/27

7,009

759

APP-12073890.FP.FTS.B,

10.99%,

1/20/27

17,533

17,774

APP-12132313.FP.FTS.B,

11.24%,

1/21/27

10,378

10,523

APP-12137436.FP.FTS.B,

16.99%,

1/21/27

24,492

24,763

APP-12173162.FP.FTS.B,

17.49%,

1/21/27

14,110

14,278

APP-11798808.FP.FTS.B,

10.99%,

1/22/27

15,968

16,197

APP-12172519.FP.FTS.B,

11.24%,

1/22/27

11,980

12,151

APP-12154405.FP.FTS.B,

14.49%,

1/22/27

12,173

12,336

APP-12161019.FP.FTS.B,

20.49%,

1/22/27

8,775

8,860

APP-12122672.FP.FTS.B,

22.99%,

1/22/27

14,350

3,240

APP-12169743.FP.FTS.B,

24.24%,

1/22/27

25,283

25,398

APP-12186510.FP.FTS.B,

9.74%,

1/23/27

.

33,666

34,146

APP-12107351.FP.FTS.B,

16.49%,

1/23/27

18,021

18,251

APP-12105986.FP.FTS.B,

10.99%,

1/25/27

27,416

27,834

APP-12209707.FP.FTS.B,

25.49%,

1/25/27

9,409

9,502

APP-11595106.FP.FTS.B,

13.49%,

1/26/27

11,284

11,463

APP-11579435.FP.FTS.B,

15.49%,

1/28/27

15,742

16,002

APP-11694310.FP.FTS.B,

16.74%,

1/28/27

37,225

37,857

APP-11739118.FP.FTS.B,

16.99%,

1/28/27

13,332

13,554

APP-11595260.FP.FTS.B,

18.99%,

1/29/27

12,219

12,281

APP-11588109.FP.FTS.B,

20.49%,

1/30/27

21,031

21,369

APP-11697560.FP.FTS.B,

12.49%,

1/31/27

32,927

33,499

APP-12414657.FP.FTS.B,

10.99%,

2/01/27

29,418

29,746

APP-12462065.FP.FTS.B,

17.74%,

2/01/27

33,553

11,019

APP-11711469.FP.FTS.B,

19.99%,

2/01/27

13,863

13,884

APP-11705115.FP.FTS.B,

21.49%,

2/01/27

42,310

42,250

APP-11709913.FP.FTS.B,

21.49%,

2/02/27

42,969

42,984

APP-11732543.FP.FTS.B,

20.99%,

2/03/27

12,453

12,436

APP-11694211.FP.FTS.B,

11.99%,

2/04/27

40,750

41,433

APP-11724908.FP.FTS.B,

12.74%,

2/04/27

33,571

34,058

APP-11709701.FP.FTS.B,

16.49%,

2/04/27

12,436

12,599

APP-11712504.FP.FTS.B,

17.99%,

2/04/27

8,338

8,451

APP-11725393.FP.FTS.B,

17.99%,

2/04/27

41,690

41,900

APP-11731565.FP.FTS.B,

18.99%,

2/04/27

41,902

42,196

APP-11695149.FP.FTS.B,

19.49%,

2/04/27

19,307

2,026

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

73

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-11732774.FP.FTS.B,

19.49%,

2/04/27

$

10,082

$

10,114

APP-11694359.FP.FTS.B,

19.99%,

2/04/27

9,544

9,596

APP-11660434.FP.FTS.B,

20.49%,

2/04/27

24,450

24,467

APP-11694079.FP.FTS.B,

10.99%,

2/05/27

17,693

17,952

APP-11722179.FP.FTS.B,

11.99%,

2/05/27

22,616

22,953

APP-11740935.FP.FTS.B,

13.99%,

2/05/27

40,839

41,428

APP-11608429.FP.FTS.B,

17.49%,

2/05/27

33,289

33,750

APP-09759707.FP.FTS.B,

18.99%,

2/05/27

6,290

6,338

APP-11741297.FP.FTS.B,

19.24%,

2/05/27

17,635

17,623

APP-11742867.FP.FTS.B,

23.24%,

2/05/27

17,128

17,111

APP-12337990.FP.FTS.B,

16.49%,

2/07/27

6,661

6,739

APP-11738196.FP.FTS.B,

21.99%,

2/15/27

9,412

9,468

APP-11553389.FP.FTS.B,

12.24%,

2/22/27

16,413

16,636

APP-12029572.FP.FTS.B,

16.99%,

2/24/27

15,682

15,879

APP-12033253.FP.FTS.B,

17.99%,

2/24/27

11,832

11,977

APP-12159528.FP.FTS.B,

18.99%,

2/28/27

12,668

12,661

APP-12050224.FP.FTS.B,

11.74%,

3/01/27

34,635

35,075

APP-12168636.FP.FTS.B,

13.24%,

3/01/27

16,492

16,681

APP-12210481.FP.FTS.B,

15.49%,

3/01/27

22,465

2,611

APP-12171147.FP.FTS.B,

16.24%,

3/01/27

27,852

8,785

APP-12211243.FP.FTS.B,

17.24%,

3/01/27

30,418

30,497

APP-12107891.FP.FTS.B,

17.99%,

3/01/27

13,311

13,277

APP-12175594.FP.FTS.B,

18.99%,

3/01/27

11,848

11,856

APP-12208717.FP.FTS.B,

21.74%,

3/01/27

21,341

21,188

APP-12150597.FP.FTS.B,

25.49%,

3/01/27

9,162

9,078

APP-12176496.FP.FTS.B,

18.49%,

3/02/27

19,699

2,180

APP-12158633.FP.FTS.B,

23.24%,

3/02/27

17,268

17,123

APP-12005996.FP.FTS.B,

15.49%,

3/03/27

10,013

10,042

APP-12185324.FP.FTS.B,

19.99%,

3/04/27

11,874

1,276

APP-12105218.FP.FTS.B,

10.99%,

3/05/27

20,578

20,888

APP-12101962.FP.FTS.B,

13.49%,

3/05/27

13,377

6,776

APP-12214905.FP.FTS.B,

16.49%,

3/05/27

10,067

10,188

APP-12159801.FP.FTS.B,

16.99%,

3/05/27

23,361

23,498

APP-12123398.FP.FTS.B,

19.99%,

3/05/27

18,248

2,099

APP-12164096.FP.FTS.B,

21.49%,

3/05/27

12,323

12,260

APP-12133804.FP.FTS.B,

10.99%,

3/06/27

18,585

5,116

APP-12168034.FP.FTS.B,

18.99%,

3/06/27

13,347

13,383

APP-12172482.FP.FTS.B,

20.49%,

3/06/27

25,146

25,166

APP-12050159.FP.FTS.B,

13.24%,

3/07/27

28,768

29,166

APP-12032991.FP.FTS.B,

14.49%,

3/07/27

20,051

20,278

APP-12125835.FP.FTS.B,

19.99%,

3/07/27

12,108

12,146

APP-12168830.FP.FTS.B,

22.49%,

3/07/27

9,327

1,040

APP-12140862.FP.FTS.B,

8.99%,

3/08/27

.

21,539

21,819

APP-12164888.FP.FTS.B,

8.99%,

3/08/27

.

27,489

27,871

APP-12105970.FP.FTS.B,

10.99%,

3/08/27

18,380

18,645

APP-12155604.FP.FTS.B,

11.24%,

3/08/27

12,919

13,107

APP-12097459.FP.FTS.B,

13.24%,

3/08/27

20,745

21,033

APP-12106008.FP.FTS.B,

13.49%,

3/08/27

13,087

13,271

APP-12050743.FP.FTS.B,

14.99%,

3/08/27

14,680

14,862

APP-12150738.FP.FTS.B,

16.74%,

3/08/27

36,384

36,870

APP-12167178.FP.FTS.B,

17.49%,

3/08/27

23,019

2,269

APP-12188890.FP.FTS.B,

20.49%,

3/08/27

16,354

9,987

APP-12432804.FP.FTS.B,

13.24%,

3/09/27

30,148

30,529

APP-12366828.FP.FTS.B,

16.99%,

3/09/27

13,415

13,562

APP-12176276.FP.FTS.B,

19.99%,

3/09/27

8,599

8,517

APP-11965580.FP.FTS.B,

20.49%,

3/09/27

23,580

23,574

APP-11508449.FP.FTS.B,

8.49%,

3/10/27

.

24,946

25,268

APP-12216897.FP.FTS.B,

10.99%,

3/10/27

32,524

32,945

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12448900.FP.FTS.B,

13.24%,

3/10/27

$

25,955

$

26,269

APP-12450922.FP.FTS.B,

15.24%,

3/10/27

32,132

6,180

APP-12451319.FP.FTS.B,

17.49%,

3/10/27

10,203

6,012

APP-12203395.FP.FTS.B,

22.49%,

3/10/27

9,572

9,580

APP-12199670.FP.FTS.B,

10.99%,

3/11/27

27,416

27,773

APP-12459432.FP.FTS.B,

13.24%,

3/11/27

20,559

20,815

APP-12464629.FP.FTS.B,

16.49%,

3/11/27

12,552

12,720

APP-12459441.FP.FTS.B,

17.49%,

3/11/27

14,251

14,329

APP-12210087.FP.FTS.B,

18.74%,

3/11/27

42,468

42,724

APP-12459768.FP.FTS.B,

19.74%,

3/11/27

29,125

29,263

APP-12071137.FP.FTS.B,

19.99%,

3/11/27

23,289

23,380

APP-12460903.FP.FTS.B,

10.99%,

3/15/27

32,578

33,045

APP-12467297.FP.FTS.B,

13.24%,

3/15/27

25,991

26,349

APP-12442169.FP.FTS.B,

14.49%,

3/15/27

17,380

17,619

APP-12291770.FP.FTS.B,

16.49%,

3/15/27

6,798

6,772

APP-12420649.FP.FTS.B,

16.74%,

3/15/27

35,783

36,247

APP-12422367.FP.FTS.B,

18.49%,

3/15/27

10,802

1,068

APP-12379303.FP.FTS.B,

13.24%,

3/16/27

20,483

20,773

APP-12345397.FP.FTS.B,

19.74%,

3/16/27

13,839

13,493

APP-12196952.FP.FTS.B,

19.99%,

3/16/27

13,433

13,466

APP-12407602.FP.FTS.B,

19.99%,

3/16/27

15,526

15,568

APP-12408935.FP.FTS.B,

19.99%,

3/17/27

11,919

11,955

APP-12462116.FP.FTS.B,

17.49%,

3/18/27

24,436

24,654

APP-11948900.FP.FTS.B,

17.74%,

3/18/27

37,107

37,439

APP-12418630.FP.FTS.B,

17.99%,

3/18/27

17,989

18,004

APP-12433361.FP.FTS.B,

18.49%,

3/18/27

15,910

15,964

APP-12461150.FP.FTS.B,

18.49%,

3/18/27

15,240

15,292

APP-12421799.FP.FTS.B,

19.74%,

3/18/27

24,669

24,794

APP-12463831.FP.FTS.B,

19.99%,

3/18/27

8,448

8,533

APP-12357813.FP.FTS.B,

10.99%,

3/20/27

26,128

26,539

APP-12287686.FP.FTS.B,

11.24%,

3/20/27

19,630

19,920

APP-12422648.FP.FTS.B,

13.24%,

3/20/27

19,132

19,428

APP-12380981.FP.FTS.B,

13.74%,

3/20/27

9,056

9,206

APP-12392789.FP.FTS.B,

18.99%,

3/20/27

15,606

15,722

APP-12230901.FP.FTS.B,

20.24%,

3/20/27

44,056

44,239

APP-12412709.FP.FTS.B,

20.24%,

3/20/27

40,472

40,766

APP-12424835.FP.FTS.B,

23.99%,

3/20/27

28,231

28,328

APP-12459776.FP.FTS.B,

10.99%,

3/21/27

27,591

28,033

APP-12287335.FP.FTS.B,

13.24%,

3/21/27

17,690

17,908

APP-12402614.FP.FTS.B,

13.74%,

3/21/27

21,861

22,220

APP-12450320.FP.FTS.B,

19.99%,

3/21/27

11,957

12,022

APP-12176796.FP.FTS.B,

8.99%,

3/22/27

.

22,694

22,998

APP-12345892.FP.FTS.B,

13.49%,

3/22/27

13,189

13,400

APP-12345261.FP.FTS.B,

15.49%,

3/22/27

20,505

20,707

APP-12443158.FP.FTS.B,

17.49%,

3/22/27

10,136

10,215

APP-12446716.FP.FTS.B,

22.49%,

3/22/27

8,252

8,262

APP-12270745.FP.FTS.B,

17.74%,

3/23/27

32,486

32,758

APP-12429877.FP.FTS.B,

19.74%,

3/23/27

26,047

26,227

APP-12435676.FP.FTS.B,

20.49%,

3/23/27

34,298

34,490

APP-12414131.FP.FTS.B,

10.99%,

3/24/27

17,577

17,875

APP-12420863.FP.FTS.B,

17.49%,

3/24/27

16,183

16,375

APP-12463499.FP.FTS.B,

17.49%,

3/24/27

20,068

20,341

APP-12468743.FP.FTS.B,

18.24%,

3/24/27

27,167

27,459

APP-12468934.FP.FTS.B,

19.99%,

3/24/27

8,848

5,240

APP-12408200.FP.FTS.B,

21.74%,

3/24/27

22,912

22,977

APP-12468566.FP.FTS.B,

19.74%,

3/25/27

27,735

27,855

APP-11872544.FP.FTS.B,

19.99%,

3/25/27

11,738

11,830

APP-11744076.FP.FTS.B,

17.49%,

4/05/27

19,718

19,833

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12171005.FP.FTS.B,

23.99%,

4/08/27

$

27,590

$

27,507

APP-11665810.FP.FTS.B,

20.99%,

5/18/27

29,819

29,754

APP-14835801.FP.FTS.B,

11.24%,

6/05/27

26,414

26,688

APP-15016056.FP.FTS.B,

19.24%,

6/06/27

31,050

30,961

APP-14953646.FP.FTS.B,

24.24%,

6/06/27

37,755

37,580

APP-12402250.FP.FTS.B,

19.99%,

6/30/27

22,574

22,303

APP-15007182.FP.FTS.B,

16.99%,

7/11/27

10,171

10,261

APP-15105817.FP.FTS.B,

11.74%,

7/15/27

19,172

19,420

APP-15110260.FP.FTS.B,

13.99%,

7/15/27

28,098

28,429

APP-14523455.FP.FTS.B,

17.24%,

7/15/27

34,993

35,020

APP-15113452.FP.FTS.B,

18.49%,

7/15/27

11,489

11,519

APP-15103060.FP.FTS.B,

19.99%,

7/15/27

14,126

14,135

APP-15042778.FP.FTS.B,

20.99%,

7/15/27

21,176

4,450

APP-15066730.FP.FTS.B,

20.99%,

7/15/27

13,078

13,002

APP-15072603.FP.FTS.B,

21.24%,

7/15/27

43,037

42,818

APP-15031339.FP.FTS.B,

24.74%,

7/15/27

17,995

1,905

APP-15871573.FP.FTS.B,

10.99%,

7/20/27

29,217

29,541

APP-14544639.FP.FTS.B,

11.99%,

7/21/27

13,115

13,310

APP-16662334.FP.FTS.B,

15.24%,

7/26/27

23,158

23,430

APP-15072881.FP.FTS.B,

17.49%,

7/26/27

13,409

13,612

APP-15066733.FP.FTS.B,

18.99%,

7/26/27

12,682

12,700

APP-15119411.FP.FTS.B,

9.74%,

7/28/27

.

20,749

21,021

APP-15122204.FP.FTS.B,

20.74%,

7/28/27

10,782

10,718

APP-15116487.FP.FTS.B,

21.49%,

7/28/27

15,653

15,469

APP-14371097.FP.FTS.B,

14.74%,

7/29/27

44,947

45,533

APP-16465567.FP.FTS.B,

15.49%,

7/30/27

13,579

13,706

APP-16645516.FP.FTS.B,

10.99%,

7/31/27

18,376

18,584

APP-12459489.FP.FTS.B,

18.24%,

8/01/27

35,387

10,982

APP-16640475.FP.FTS.B,

12.74%,

8/02/27

16,087

16,276

APP-16637899.FP.FTS.B,

15.49%,

8/02/27

17,097

17,271

APP-17319474.FP.FTS.B,

16.49%,

8/07/27

45,247

45,648

APP-17245315.FP.FTS.B,

17.74%,

8/09/27

9,562

9,552

APP-16283011.FP.FTS.B,

11.74%,

8/10/27

44,806

45,309

APP-17385444.FP.FTS.B,

15.24%,

8/12/27

22,618

22,846

APP-17439705.FP.FTS.B,

15.24%,

8/12/27

34,972

35,324

APP-15106325.FP.FTS.B,

23.24%,

8/28/27

17,533

17,291

APP-15098807.FP.FTS.B,

26.99%,

8/28/27

11,165

11,049

APP-16637910.FP.FTS.B,

16.24%,

8/31/27

17,021

1,641

APP-16679044.FP.FTS.B,

8.99%,

9/01/27

.

12,043

12,165

APP-16632155.FP.FTS.B,

11.49%,

9/01/27

15,696

15,876

APP-16448250.FP.FTS.B,

13.49%,

9/01/27

6,311

6,374

APP-16676570.FP.FTS.B,

15.24%,

9/01/27

19,062

19,023

APP-16714770.FP.FTS.B,

14.49%,

9/02/27

45,218

45,747

APP-16709500.FP.FTS.B,

15.49%,

9/02/27

44,944

45,438

APP-16718578.FP.FTS.B,

15.74%,

9/02/27

9,979

10,096

APP-16852920.FP.FTS.B,

10.99%,

9/04/27

34,881

35,300

APP-16640455.FP.FTS.B,

10.99%,

9/05/27

20,211

20,459

APP-16682911.FP.FTS.B,

14.49%,

9/05/27

15,940

8,050

APP-16800634.FP.FTS.B,

15.99%,

9/10/27

44,599

45,166

APP-16335596.FP.FTS.B,

10.99%,

9/12/27

23,943

24,290

APP-16627732.FP.FTS.B,

12.99%,

9/12/27

22,617

22,955

APP-16399010.FP.FTS.B,

15.24%,

9/12/27

19,170

19,438

APP-15052242.FP.FTS.B,

11.74%,

9/13/27

45,472

46,340

APP-16664397.FP.FTS.B,

12.99%,

9/13/27

22,626

22,972

APP-17484422.FP.FTS.B,

15.24%,

9/13/27

20,007

20,216

APP-10624729.FP.FTS.B,

15.74%,

9/13/27

24,602

24,976

APP-17458875.FP.FTS.B,

16.49%,

9/13/27

4,540

4,591

APP-16677695.FP.FTS.B,

12.99%,

9/14/27

24,447

24,829

Description

Principal

Amount

Value

Freedom

Financial

Asset

Management

LLC

(continued)

APP-16617425.FP.FTS.B,

9.49%,

9/15/27

.

$

18,858

$

19,112

APP-16687847.FP.FTS.B,

9.49%,

9/15/27

.

17,917

18,184

APP-17011228.FP.FTS.B,

14.74%,

9/15/27

45,658

46,328

APP-16720658.FP.FTS.B,

15.24%,

9/15/27

35,392

35,904

APP-16686496.FP.FTS.B,

15.74%,

9/15/27

9,135

9,288

APP-17027051.FP.FTS.B,

14.49%,

9/16/27

12,915

13,081

APP-17010091.FP.FTS.B,

15.49%,

9/18/27

36,508

37,089

APP-17488419.FP.FTS.B,

16.49%,

9/20/27

5,465

1,557

APP-16637461.FP.FTS.B,

18.49%,

9/20/27

17,418

17,618

APP-17511251.FP.FTS.B,

17.99%,

9/21/27

21,851

4,158

APP-17497296.FP.FTS.B,

17.74%,

9/23/27

11,908

11,974

APP-17082038.FP.FTS.B,

12.49%,

9/26/27

27,743

28,192

APP-17385910.FP.FTS.B,

15.24%,

9/26/27

34,622

35,160

APP-17490395.FP.FTS.B,

15.24%,

9/26/27

30,066

30,533

APP-17115062.FP.FTS.B,

17.99%,

9/26/27

17,909

18,037

APP-17461708.FP.FTS.B,

12.49%,

9/27/27

28,640

29,113

APP-17239533.FP.FTS.B,

13.74%,

9/27/27

18,150

18,455

APP-17504832.FP.FTS.B,

13.74%,

9/27/27

19,897

20,191

APP-17102136.FP.FTS.B,

14.24%,

9/27/27

45,318

46,079

APP-17485387.FP.FTS.B,

15.24%,

9/27/27

33,473

34,006

APP-10590417.FP.FTS.B,

17.99%,

9/30/27

18,272

10,698

APP-12415203.FP.FTS.B,

21.24%,

11/21/27

21,981

21,893

APP-15602293.FP.FTS.B,

15.49%,

1/30/28

14,521

14,677

7,803,426

LendingClub

Corp.

-

LCX

159198648.LC.FTS.B,

17.74%,

9/25/24

...

5,594

5,524

158981937.LC.FTS.B,

16.12%,

9/26/24

...

5,525

5,467

161888275.LC.FTS.B,

15.24%,

11/14/24

..

6,022

5,875

162030908.LC.FTS.B,

12.4%,

11/19/24

...

6,169

5,659

162266279.LC.FTS.B,

11.02%,

11/22/24

..

11,329

11,004

161858763.LC.FTS.B,

14.3%,

11/29/24

...

2,050

1,988

162318190.LC.FTS.B,

13.08%,

12/13/24

..

2,201

1,998

163115691.LC.FTS.B,

13.08%,

12/13/24

..

15,490

15,035

163517783.LC.FTS.B,

13.08%,

12/18/24

..

9,781

9,013

163479653.LC.FTS.B,

20.55%,

12/30/24

..

5,419

5,274

163615560.LC.FTS.B,

20.55%,

12/30/24

..

7,038

6,878

163919650.LC.FTS.B,

20.55%,

12/30/24

..

2,862

2,797

163989384.LC.FTS.B,

23.05%,

12/30/24

..

9,674

9,452

164050345.LC.FTS.B,

13.08%,

12/31/24

..

12,766

12,305

164510336.LC.FTS.B,

13.08%,

1/15/25

...

12,840

11,999

164586812.LC.FTS.B,

8.19%,

1/27/25

...

5,502

5,193

166081454.LC.FTS.B,

8.19%,

2/07/25

...

16,590

16,210

162966512.LC.FTS.B,

11.02%,

2/12/25

...

9,692

8,749

166603986.LC.FTS.B,

10.33%,

2/15/25

...

6,554

6,354

166880211.LC.FTS.B,

8.19%,

2/18/25

....

8,224

7,642

163292439.LC.FTS.B,

8.19%,

2/23/25

...

6,924

6,350

166833583.LC.FTS.B,

13.08%,

2/24/25

...

11,792

10,862

167466589.LC.FTS.B,

8.19%,

2/27/25

...

5,392

5,068

166039716.LC.FTS.B,

10.33%,

2/28/25

...

16,743

16,102

164067189.LC.FTS.B,

13.08%,

2/28/25

...

16,605

15,936

165441115.LC.FTS.B,

8.81%,

3/24/25

....

6,813

6,253

168296354.LC.FTS.B,

13.08%,

5/13/25

...

10,120

9,257

168006688.LC.FTS.B,

8.19%,

11/21/25

...

13,321

12,112

163941621.LC.FTS.B,

Zero

Cpn,

12/31/32

5,974

–

164077353.LC.FTS.B,

15.24%,

4/30/33

...

656

655

167126995.LC.FTS.B,

23.05%,

5/02/33

...

2,914

2,879

165899098.LC.FTS.B,

Zero

Cpn,

5/10/33

.

2,786

258

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

75

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

LendingClub

Corp.

-

LCX

(continued)

$

240,148

LendingClub

Corp.

-

LCX

PM

169579201.LC.FTS.B,

10.81%,

9/14/23

...

$

4,830

4,774

170462708.LC.FTS.B,

10.81%,

9/17/23

...

3,178

3,141

170309569.LC.FTS.B,

19.12%,

9/17/23

...

1,264

1,033

170617520.LC.FTS.B,

10.81%,

9/22/23

...

3,019

2,964

170507906.LC.FTS.B,

10.81%,

9/23/23

...

953

941

170767991.LC.FTS.B,

15.4%,

9/23/23

...

335

334

170641460.LC.FTS.B,

14.02%,

9/24/23

...

2,237

–

170374076.LC.FTS.B,

18.24%,

9/25/23

...

871

868

170726414.LC.FTS.B,

9.56%,

9/28/23

...

2,245

2,212

170377461.LC.FTS.B,

10.81%,

9/28/23

...

3,228

3,192

170702407.LC.FTS.B,

10.81%,

9/28/23

...

2,088

2,047

170737567.LC.FTS.B,

9.56%,

9/29/23

...

187

184

170808772.LC.FTS.B,

10.81%,

9/29/23

...

4,483

4,424

170929457.LC.FTS.B,

14.02%,

9/30/23

...

236

232

170705708.LC.FTS.B,

9.56%,

10/05/23

...

2,807

2,737

170268845.LC.FTS.B,

10.19%,

10/06/23

..

2,845

2,785

170930834.LC.FTS.B,

10.19%,

10/06/23

..

4,712

4,620

171032133.LC.FTS.B,

10.81%,

10/14/23

..

380

374

170963456.LC.FTS.B,

19.95%,

10/14/23

..

4,253

4,211

171252541.LC.FTS.B,

10.19%,

10/15/23

..

283

279

171215486.LC.FTS.B,

10.81%,

10/15/23

..

949

930

171271973.LC.FTS.B,

19.12%,

10/15/23

..

2,085

2,075

171218548.LC.FTS.B,

9.56%,

10/20/23

...

2,058

2,019

171361625.LC.FTS.B,

10.19%,

10/20/23

..

1,859

1,832

171055998.LC.FTS.B,

14.02%,

10/20/23

..

3,349

3,295

171428113.LC.FTS.B,

18.24%,

10/20/23

..

3,511

3,465

171178790.LC.FTS.B,

8.46%,

10/21/23

...

2,800

2,729

171245584.LC.FTS.B,

8.46%,

10/22/23

...

1,016

1,001

171373758.LC.FTS.B,

10.19%,

10/22/23

..

5,655

5,562

171444548.LC.FTS.B,

10.81%,

10/22/23

..

6,684

6,579

170652695.LC.FTS.B,

14.02%,

10/24/23

..

990

974

170976689.LC.FTS.B,

8.46%,

10/28/23

...

2,899

2,846

171666793.LC.FTS.B,

18.24%,

10/28/23

..

1,919

1,879

171357136.LC.FTS.B,

9.02%,

10/31/23

...

2,179

2,124

171974686.LC.FTS.B,

10.81%,

11/17/23

..

1,543

1,510

172045506.LC.FTS.B,

10.81%,

11/17/23

..

3,246

3,190

172080082.LC.FTS.B,

9.02%,

11/18/23

...

5,403

5,307

172294502.LC.FTS.B,

8.46%,

11/24/23

...

2,147

2,109

172262310.LC.FTS.B,

9.56%,

12/04/23

...

2,970

2,907

173236004.LC.FTS.B,

19.12%,

12/23/23

..

2,737

2,724

173214358.LC.FTS.B,

19.12%,

12/28/23

..

3,056

3,049

173241001.LC.FTS.B,

17.3%,

12/29/23

...

1,138

1,119

173362025.LC.FTS.B,

20.74%,

12/29/23

..

2,327

2,289

173536070.LC.FTS.B,

16.08%,

1/05/24

...

741

730

173391094.LC.FTS.B,

17.3%,

1/05/24

...

900

887

173509997.LC.FTS.B,

10.81%,

1/06/24

...

1,408

1,365

172997854.LC.FTS.B,

19.12%,

1/08/24

...

916

904

173417195.LC.FTS.B,

14.71%,

1/09/24

...

4,396

4,312

173451209.LC.FTS.B,

18.24%,

1/09/24

...

6,990

6,832

173898269.LC.FTS.B,

16.99%,

1/19/24

...

3,950

3,939

173997873.LC.FTS.B,

17.49%,

1/20/24

...

3,308

3,295

173397544.LC.FTS.B,

20.74%,

1/20/24

...

1,117

1,107

173912279.LC.FTS.B,

9.99%,

1/21/24

...

3,622

3,510

174033162.LC.FTS.B,

16.49%,

1/21/24

...

744

743

174050191.LC.FTS.B,

16.99%,

1/22/24

...

1,496

1,489

Description

Principal

Amount

Value

LendingClub

Corp.

-

LCX

PM

(continued)

173826580.LC.FTS.B,

16.99%,

1/24/24

...

$

6,038

$

5,962

174172795.LC.FTS.B,

15.99%,

1/27/24

...

2,061

2,041

174195278.LC.FTS.B,

16.49%,

1/27/24

...

1,786

1,784

174192330.LC.FTS.B,

20.74%,

1/27/24

...

4,982

5,017

174098270.LC.FTS.B,

6.74%,

2/01/24

...

5,966

5,811

174115077.LC.FTS.B,

8.49%,

2/01/24

....

9,111

8,913

174204894.LC.FTS.B,

12.34%,

2/01/24

...

4,739

4,640

174276782.LC.FTS.B,

17.19%,

2/01/24

...

330

328

170877107.LC.FTS.B,

17.3%,

3/02/24

...

5,567

2,246

174033886.LC.FTS.B,

12.49%,

6/05/24

...

8,978

7,594

170431322.LC.FTS.B,

18.24%,

9/14/25

...

2,975

2,891

170592201.LC.FTS.B,

14.02%,

9/16/25

...

11,398

10,956

170055181.LC.FTS.B,

16.08%,

9/16/25

...

8,734

8,491

170639161.LC.FTS.B,

19.12%,

9/18/25

...

6,002

5,841

170786159.LC.FTS.B,

14.02%,

9/25/25

...

13,675

12,901

170163928.LC.FTS.B,

15.4%,

9/25/25

...

5,817

5,665

170812112.LC.FTS.B,

14.02%,

9/29/25

...

11,724

11,117

171032242.LC.FTS.B,

19.12%,

10/02/25

..

9,246

8,935

170941274.LC.FTS.B,

16.08%,

10/05/25

..

17,956

17,067

171264911.LC.FTS.B,

19.12%,

10/14/25

..

9,246

8,965

171461721.LC.FTS.B,

16.08%,

10/20/25

..

6,653

6,451

170983832.LC.FTS.B,

20.74%,

10/20/25

..

16,357

15,730

171322854.LC.FTS.B,

16.08%,

10/22/25

..

14,963

14,375

172156822.LC.FTS.B,

14.02%,

11/24/25

..

6,025

5,506

172665217.LC.FTS.B,

15.4%,

12/04/25

...

7,821

2,753

172752552.LC.FTS.B,

16.08%,

12/10/25

..

7,567

7,353

173203429.LC.FTS.B,

15.4%,

12/23/25

...

21,362

20,686

173295643.LC.FTS.B,

19.12%,

12/28/25

..

7,961

7,768

172820246.LC.FTS.B,

15.4%,

12/30/25

...

17,984

17,432

172843470.LC.FTS.B,

16.08%,

1/06/26

...

11,632

11,344

173301532.LC.FTS.B,

17.3%,

1/06/26

...

19,596

18,746

173496629.LC.FTS.B,

16.08%,

1/14/26

...

17,927

16,619

172611713.LC.FTS.B,

19.12%,

1/14/26

...

10,722

10,381

173772624.LC.FTS.B,

14.44%,

1/15/26

...

3,184

3,039

173580706.LC.FTS.B,

17.3%,

1/15/26

...

15,334

14,856

173816609.LC.FTS.B,

19.44%,

1/15/26

...

3,509

638

173303101.LC.FTS.B,

19.95%,

1/15/26

...

10,219

9,917

173821408.LC.FTS.B,

21.49%,

1/19/26

...

10,554

10,414

173896730.LC.FTS.B,

23.99%,

1/19/26

...

6,900

6,871

173933933.LC.FTS.B,

13.49%,

1/20/26

...

12,626

11,865

173875674.LC.FTS.B,

14.74%,

1/20/26

...

22,988

21,158

173270899.LC.FTS.B,

15.4%,

1/20/26

...

26,058

24,704

173854798.LC.FTS.B,

21.49%,

1/20/26

...

6,803

6,689

173998821.LC.FTS.B,

21.49%,

1/20/26

...

6,765

6,677

173871807.LC.FTS.B,

21.99%,

1/20/26

...

8,210

8,167

174045948.LC.FTS.B,

17.44%,

1/22/26

...

12,426

12,138

174087634.LC.FTS.B,

23.99%,

1/22/26

...

10,350

10,323

172757520.LC.FTS.B,

19.12%,

1/24/26

...

7,643

7,439

173785381.LC.FTS.B,

16.74%,

1/25/26

...

10,465

10,218

173956639.LC.FTS.B,

18.19%,

1/25/26

...

4,369

4,236

173841383.LC.FTS.B,

21.49%,

1/25/26

...

20,466

20,206

173813936.LC.FTS.B,

19.74%,

1/27/26

...

16,005

15,831

173737758.LC.FTS.B,

9.59%,

1/28/26

...

13,172

12,339

173910442.LC.FTS.B,

17.24%,

1/28/26

...

13,452

13,087

173430770.LC.FTS.B,

13.33%,

2/01/26

...

26,041

24,607

174278232.LC.FTS.B,

23.99%,

2/01/26

...

21,022

20,785

700,492

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

1478692.PS.FTS.B,

18.99%,

11/24/23

....

$

1,378

$

1,362

1491946.PS.FTS.B,

15.49%,

12/22/23

...

964

47

1501929.PS.FTS.B,

14.19%,

12/31/23

...

2,545

2,527

1579196.PS.FTS.B,

25.75%,

6/29/24

....

2,805

2,747

1602993.PS.FTS.B,

8.7%,

7/23/24

......

15,593

15,336

1609512.PS.FTS.B,

16%,

8/05/24

.......

4,532

4,406

1603345.PS.FTS.B,

12.8%,

8/06/24

.....

1,262

1,230

1603735.PS.FTS.B,

14.7%,

8/06/24

.....

38

38

1603741.PS.FTS.B,

16.6%,

8/06/24

.....

3,793

3,689

1603033.PS.FTS.B,

24.6%,

8/07/24

.....

4,288

4,232

1611408.PS.FTS.B,

15.4%,

8/09/24

.....

5,013

4,881

1611363.PS.FTS.B,

18.24%,

8/09/24

....

6,141

5,978

1613184.PS.FTS.B,

15.6%,

8/11/24

.....

5,021

4,892

1604249.PS.FTS.B,

13.4%,

8/13/24

.....

2,717

2,643

1602197.PS.FTS.B,

18.41%,

8/14/24

....

2,507

2,442

1610184.PS.FTS.B,

13.4%,

8/15/24

.....

6,472

6,274

1610577.PS.FTS.B,

19.8%,

8/21/24

.....

3,413

3,347

1608881.PS.FTS.B,

14.7%,

8/23/24

.....

1,496

1,464

1609535.PS.FTS.B,

26.21%,

8/24/24

....

5,407

5,419

1610579.PS.FTS.B,

15%,

8/25/24

.......

2,499

2,448

1620627.PS.FTS.B,

16.9%,

8/25/24

.....

5,577

5,461

1615387.PS.FTS.B,

15.1%,

8/27/24

.....

3,097

425

1622424.PS.FTS.B,

16.1%,

8/27/24

.....

2,127

2,116

1623215.PS.FTS.B,

24.81%,

9/20/24

....

2,932

2,907

1634217.PS.FTS.B,

24.51%,

9/21/24

....

5,673

5,641

1623656.PS.FTS.B,

25.71%,

9/21/24

....

5,663

5,653

1628356.PS.FTS.B,

11.6%,

9/22/24

.....

1,288

1,253

1635087.PS.FTS.B,

12.3%,

9/22/24

.....

5,177

5,036

1635063.PS.FTS.B,

14.56%,

9/22/24

....

6,001

5,839

1624643.PS.FTS.B,

15.12%,

9/22/24

....

1,974

1,927

1635060.PS.FTS.B,

16.64%,

9/22/24

....

8,004

7,811

1624631.PS.FTS.B,

17.8%,

9/22/24

.....

10,829

1,526

1624646.PS.FTS.B,

18.4%,

9/22/24

.....

1,620

1,603

1624622.PS.FTS.B,

18.41%,

9/22/24

....

8,584

8,376

1628338.PS.FTS.B,

18.41%,

9/22/24

....

5,353

5,223

1618983.PS.FTS.B,

19.8%,

9/22/24

.....

3,724

3,673

1635348.PS.FTS.B,

26.3%,

9/22/24

.....

1,137

1,135

1635768.PS.FTS.B,

14.89%,

9/23/24

....

5,148

5,026

1629058.PS.FTS.B,

15.7%,

9/23/24

.....

1,326

1,294

1635762.PS.FTS.B,

17.96%,

9/23/24

....

4,543

–

1625948.PS.FTS.B,

11.6%,

9/24/24

.....

5,152

5,016

1636260.PS.FTS.B,

12.76%,

9/24/24

....

1,039

1,011

1636335.PS.FTS.B,

13%,

9/24/24

.......

7,805

7,598

1636458.PS.FTS.B,

13.8%,

9/24/24

.....

2,355

2,292

1636308.PS.FTS.B,

14.56%,

9/24/24

....

1,578

1,536

1626602.PS.FTS.B,

16.1%,

9/24/24

.....

2,337

2,283

1625990.PS.FTS.B,

16.28%,

9/24/24

....

18,631

18,195

1621098.PS.FTS.B,

17.5%,

9/24/24

.....

916

358

1629244.PS.FTS.B,

17.96%,

9/24/24

....

5,223

5,100

1636317.PS.FTS.B,

18.2%,

9/24/24

.....

2,157

2,137

1636947.PS.FTS.B,

20.34%,

9/24/24

....

1,094

1,084

1630390.PS.FTS.B,

11.6%,

9/27/24

.....

5,428

5,349

1630750.PS.FTS.B,

11.7%,

9/27/24

.....

6,359

6,268

1637526.PS.FTS.B,

12.3%,

9/27/24

.....

8,182

8,068

1630264.PS.FTS.B,

13.3%,

9/27/24

.....

2,184

2,156

1626884.PS.FTS.B,

15%,

9/27/24

.......

4,442

4,405

1637235.PS.FTS.B,

15.1%,

9/27/24

.....

2,778

2,755

1630384.PS.FTS.B,

16%,

9/27/24

.......

5,583

5,540

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1630447.PS.FTS.B,

16%,

9/27/24

.......

$

2,235

$

2,218

1637214.PS.FTS.B,

16.39%,

9/27/24

....

3,814

3,781

1630396.PS.FTS.B,

16.43%,

9/27/24

....

10,704

10,626

1630414.PS.FTS.B,

16.43%,

9/27/24

....

1,121

1,113

1630936.PS.FTS.B,

12%,

9/28/24

.......

4,572

4,417

1631188.PS.FTS.B,

13.36%,

9/28/24

....

5,767

5,571

1630918.PS.FTS.B,

13.8%,

9/28/24

.....

4,407

4,257

1630933.PS.FTS.B,

13.81%,

9/28/24

....

8,264

7,982

1627928.PS.FTS.B,

14.7%,

9/28/24

.....

3,107

2,999

1627706.PS.FTS.B,

15.1%,

9/28/24

.....

1,111

1,072

1627796.PS.FTS.B,

15.4%,

9/28/24

.....

5,567

5,372

1628048.PS.FTS.B,

15.4%,

9/28/24

.....

3,820

3,687

1630837.PS.FTS.B,

15.4%,

9/28/24

.....

2,802

2,697

1638096.PS.FTS.B,

16.1%,

9/28/24

.....

1,204

1,173

1627961.PS.FTS.B,

19.3%,

9/28/24

.....

1,141

1,113

1631467.PS.FTS.B,

20.46%,

9/28/24

....

7,155

6,965

1638306.PS.FTS.B,

21.56%,

9/28/24

....

3,163

3,079

1639584.PS.FTS.B,

14.49%,

9/30/24

....

4,311

4,217

1627514.PS.FTS.B,

13.5%,

10/02/24

....

5,556

5,359

1625708.PS.FTS.B,

17.8%,

10/10/24

....

6,846

6,737

1630822.PS.FTS.B,

13.86%,

10/11/24

....

8,893

8,561

1638078.PS.FTS.B,

18.11%,

10/11/24

....

7,133

4,091

1642194.PS.FTS.B,

19.5%,

10/17/24

....

12,018

3,082

1639245.PS.FTS.B,

11.6%,

10/21/24

....

2,933

2,837

1638108.PS.FTS.B,

16.5%,

10/25/24

....

5,353

5,211

1655337.PS.FTS.B,

12%,

10/27/24

......

4,610

4,533

1648597.PS.FTS.B,

15.5%,

10/27/24

....

5,864

5,790

1655466.PS.FTS.B,

17.8%,

10/27/24

....

8,893

8,940

1648606.PS.FTS.B,

18.11%,

10/27/24

....

1,782

1,767

1656180.PS.FTS.B,

10.8%,

10/28/24

....

5,108

4,927

1656192.PS.FTS.B,

10.97%,

10/28/24

...

3,379

–

1649488.PS.FTS.B,

11.7%,

10/28/24

....

6,280

6,057

1646303.PS.FTS.B,

11.89%,

10/28/24

....

8,573

8,269

1656015.PS.FTS.B,

12.3%,

10/28/24

....

5,730

5,527

1649524.PS.FTS.B,

14.39%,

10/28/24

...

1,161

1,118

1649797.PS.FTS.B,

17.05%,

10/28/24

...

7,984

7,667

1656462.PS.FTS.B,

27.62%,

10/28/24

...

9,409

9,211

1647104.PS.FTS.B,

10.8%,

10/29/24

....

2,836

2,736

1647374.PS.FTS.B,

13.13%,

10/29/24

...

4,032

3,884

1650016.PS.FTS.B,

13.5%,

10/29/24

....

11,547

11,123

1650442.PS.FTS.B,

16.57%,

10/29/24

...

8,922

8,571

1656681.PS.FTS.B,

17%,

10/29/24

......

1,394

183

1650046.PS.FTS.B,

19.41%,

10/29/24

...

13,637

13,262

1628921.PS.FTS.B,

13.7%,

10/31/24

....

11,708

11,279

1657803.PS.FTS.B,

13.13%,

11/01/24

....

6,047

5,829

1648730.PS.FTS.B,

17%,

11/02/24

......

7,077

6,896

1651990.PS.FTS.B,

18.41%,

11/02/24

....

14,910

14,337

1651379.PS.FTS.B,

10.8%,

11/05/24

....

9,080

8,772

1654657.PS.FTS.B,

12.3%,

11/05/24

....

15,686

3,664

1661403.PS.FTS.B,

14.11%,

11/05/24

....

14,486

13,993

1635077.PS.FTS.B,

20.57%,

11/05/24

....

9,239

9,011

1658215.PS.FTS.B,

16%,

11/08/24

......

4,966

4,799

1653476.PS.FTS.B,

10.8%,

11/09/24

....

1,703

1,646

1665852.PS.FTS.B,

11.79%,

11/09/24

....

6,853

6,627

1652624.PS.FTS.B,

12.3%,

11/09/24

....

2,292

2,216

1653332.PS.FTS.B,

12.79%,

11/09/24

....

11,494

11,102

1652882.PS.FTS.B,

13.4%,

11/09/24

....

2,674

2,596

1652855.PS.FTS.B,

13.41%,

11/09/24

....

6,181

5,961

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

77

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1659070.PS.FTS.B,

13.7%,

11/09/24

....

$

6,366

$

1,547

1659052.PS.FTS.B,

15.29%,

11/09/24

....

2,335

2,257

1659220.PS.FTS.B,

16.6%,

11/09/24

....

5,904

5,752

1652864.PS.FTS.B,

17%,

11/09/24

......

18,143

–

1659274.PS.FTS.B,

19.5%,

11/09/24

....

8,381

8,194

1665651.PS.FTS.B,

19.6%,

11/09/24

....

8,985

8,785

1652858.PS.FTS.B,

20.24%,

11/09/24

....

1,804

1,763

1654004.PS.FTS.B,

15.29%,

11/10/24

....

2,918

2,822

1654961.PS.FTS.B,

11.88%,

11/12/24

....

8,571

8,294

1654955.PS.FTS.B,

15.5%,

11/12/24

....

5,722

5,538

1660819.PS.FTS.B,

17%,

11/12/24

......

1,769

1,733

1661158.PS.FTS.B,

17%,

11/12/24

......

1,179

1,155

1652873.PS.FTS.B,

19.6%,

11/14/24

....

6,960

1,790

1662559.PS.FTS.B,

13.1%,

11/15/24

....

7,089

–

1486265.PS.FTS.B,

19.99%,

11/16/24

....

6,319

6,207

1658144.PS.FTS.B,

14.49%,

11/17/24

....

17,310

16,923

1672080.PS.FTS.B,

18.41%,

11/19/24

....

6,139

5,955

1503354.PS.FTS.B,

20.74%,

11/24/24

....

3,068

2,989

1680283.PS.FTS.B,

11.07%,

12/16/24

....

2,682

2,594

1674119.PS.FTS.B,

11.6%,

12/16/24

.....

5,978

5,783

1674128.PS.FTS.B,

12.3%,

12/16/24

....

1,518

1,469

1687134.PS.FTS.B,

12.6%,

12/16/24

....

4,209

4,072

1686729.PS.FTS.B,

13.36%,

12/16/24

...

9,061

8,765

1687119.PS.FTS.B,

13.5%,

12/16/24

....

9,068

8,771

1680238.PS.FTS.B,

13.81%,

12/16/24

...

15,141

14,647

1673705.PS.FTS.B,

16%,

12/16/24

......

6,134

5,932

1686747.PS.FTS.B,

16.5%,

12/16/24

....

3,081

3,011

1686726.PS.FTS.B,

18.41%,

12/16/24

...

15,547

15,033

1674134.PS.FTS.B,

19.5%,

12/16/24

....

1,336

1,298

1680268.PS.FTS.B,

19.6%,

12/16/24

....

7,893

1,969

1680457.PS.FTS.B,

13.1%,

12/17/24

....

9,496

7,844

1674263.PS.FTS.B,

18.9%,

12/17/24

....

894

39

1689480.PS.FTS.B,

13.7%,

12/21/24

....

4,613

1,127

1689501.PS.FTS.B,

15.9%,

12/21/24

....

6,131

5,940

1676387.PS.FTS.B,

16.2%,

12/21/24

....

6,141

6,026

1674137.PS.FTS.B,

18.2%,

12/21/24

....

1,248

1,217

1689111.PS.FTS.B,

23.4%,

12/21/24

.....

5,351

–

1689882.PS.FTS.B,

15.29%,

12/22/24

...

3,360

3,257

1683052.PS.FTS.B,

16.2%,

12/22/24

....

1,228

1,206

1683121.PS.FTS.B,

16.8%,

12/22/24

....

15,406

14,932

1689870.PS.FTS.B,

18.09%,

12/22/24

...

3,758

3,675

1683241.PS.FTS.B,

22.6%,

12/22/24

....

2,545

2,524

1678466.PS.FTS.B,

11.4%,

12/24/24

....

4,794

4,643

1690275.PS.FTS.B,

21.5%,

12/25/24

....

5,707

5,580

1677272.PS.FTS.B,

11.6%,

12/28/24

....

8,285

1,061

1685272.PS.FTS.B,

16.7%,

12/28/24

....

15,485

9,181

1681405.PS.FTS.B,

16.9%,

12/28/24

....

9,871

9,516

1692336.PS.FTS.B,

21.8%,

12/28/24

....

6,288

6,053

1686151.PS.FTS.B,

14.6%,

12/29/24

....

1,270

1,218

1675928.PS.FTS.B,

10.97%,

12/30/24

...

6,229

6,020

1679818.PS.FTS.B,

17.8%,

12/30/24

....

10,461

10,165

1693752.PS.FTS.B,

23.9%,

12/30/24

....

3,366

3,262

1686607.PS.FTS.B,

26.09%,

12/30/24

...

2,021

1,999

1676435.PS.FTS.B,

16.93%,

12/31/24

...

8,085

7,797

1694922.PS.FTS.B,

24.11%,

1/03/25

....

2,001

1,953

1695360.PS.FTS.B,

13.3%,

1/04/25

.....

3,152

3,037

1683092.PS.FTS.B,

24.4%,

1/04/25

.....

3,339

3,262

1695489.PS.FTS.B,

25.4%,

1/04/25

.....

7,346

100

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1684433.PS.FTS.B,

24.4%,

1/06/25

.....

$

3,226

$

3,153

1697064.PS.FTS.B,

24.4%,

1/06/25

.....

1,330

1,301

1684775.PS.FTS.B,

24.11%,

1/07/25

....

4,668

4,570

1687799.PS.FTS.B,

13.41%,

1/12/25

....

9,146

8,816

1694614.PS.FTS.B,

11.4%,

1/13/25

.....

2,495

2,410

1688987.PS.FTS.B,

12%,

1/13/25

.......

5,633

5,440

1694584.PS.FTS.B,

12.2%,

1/13/25

.....

12,532

12,102

1701780.PS.FTS.B,

12.3%,

1/13/25

.....

9,404

9,081

1688570.PS.FTS.B,

13.87%,

1/13/25

....

3,794

3,658

1701399.PS.FTS.B,

16%,

1/13/25

.......

4,478

4,317

1688558.PS.FTS.B,

16.43%,

1/13/25

....

1,924

1,854

1701342.PS.FTS.B,

17.7%,

1/13/25

.....

16,137

15,723

1694587.PS.FTS.B,

19.6%,

1/13/25

.....

6,519

6,351

1701789.PS.FTS.B,

22.5%,

1/13/25

.....

1,802

1,509

1694602.PS.FTS.B,

23.3%,

1/13/25

.....

7,873

–

1701807.PS.FTS.B,

24.09%,

1/13/25

....

1,334

1,310

1689359.PS.FTS.B,

12.3%,

1/14/25

.....

3,152

3,042

1689344.PS.FTS.B,

13.9%,

1/14/25

.....

6,325

6,100

1695688.PS.FTS.B,

13.96%,

1/14/25

....

4,113

3,972

1702149.PS.FTS.B,

15%,

1/14/25

.......

6,363

6,136

1695340.PS.FTS.B,

15.7%,

1/14/25

.....

6,387

6,159

1689368.PS.FTS.B,

16.2%,

1/14/25

.....

3,229

3,137

1695364.PS.FTS.B,

16.8%,

1/14/25

.....

3,229

3,107

1695355.PS.FTS.B,

18.4%,

1/14/25

.....

3,239

3,158

1695982.PS.FTS.B,

25.4%,

1/14/25

.....

5,051

4,943

1684772.PS.FTS.B,

24.4%,

1/15/25

.....

3,381

3,295

1702809.PS.FTS.B,

14.89%,

1/18/25

....

15,898

15,355

1690361.PS.FTS.B,

18.5%,

1/18/25

.....

2,593

2,533

1696480.PS.FTS.B,

18.8%,

1/18/25

.....

3,246

3,171

1697491.PS.FTS.B,

16.7%,

1/19/25

.....

3,226

3,142

1704390.PS.FTS.B,

17.8%,

1/19/25

.....

1,292

1,263

1692221.PS.FTS.B,

23%,

1/19/25

.......

4,612

4,548

1676915.PS.FTS.B,

12.3%,

1/20/25

.....

6,333

6,122

1699183.PS.FTS.B,

13.05%,

1/20/25

....

22,035

21,302

1700809.PS.FTS.B,

22.6%,

1/24/25

.....

3,309

3,275

1696034.PS.FTS.B,

13.5%,

1/25/25

.....

1,256

1,217

1709424.PS.FTS.B,

23.4%,

1/26/25

.....

1,418

1,399

1689338.PS.FTS.B,

16.02%,

1/28/25

....

12,631

1,737

1706926.PS.FTS.B,

19.8%,

2/01/25

.....

4,068

3,926

1706807.PS.FTS.B,

17.8%,

2/11/25

.....

2,686

2,607

1715170.PS.FTS.B,

10.8%,

2/15/25

.....

1,945

1,878

1708031.PS.FTS.B,

12.9%,

2/15/25

.....

5,046

4,872

1708067.PS.FTS.B,

13%,

2/15/25

.......

6,557

6,330

1708037.PS.FTS.B,

13.36%,

2/15/25

....

2,298

2,223

1715161.PS.FTS.B,

14.11%,

2/15/25

....

1,633

1,585

1708070.PS.FTS.B,

14.2%,

2/15/25

.....

6,589

6,346

1708871.PS.FTS.B,

14.49%,

2/15/25

....

6,607

6,363

1721421.PS.FTS.B,

16.3%,

2/15/25

.....

12,410

12,028

1715173.PS.FTS.B,

16.6%,

2/15/25

.....

2,684

2,585

1721052.PS.FTS.B,

16.8%,

2/15/25

.....

2,339

2,252

1708055.PS.FTS.B,

20.25%,

2/15/25

....

18,041

2,420

1708904.PS.FTS.B,

23.4%,

2/15/25

.....

3,447

3,381

1708478.PS.FTS.B,

24.34%,

2/15/25

....

3,283

3,216

1708040.PS.FTS.B,

26.46%,

2/15/25

....

2,796

2,741

1716160.PS.FTS.B,

11.55%,

2/16/25

....

6,509

6,285

1715854.PS.FTS.B,

13.2%,

2/16/25

.....

4,529

4,364

1716088.PS.FTS.B,

17.8%,

2/16/25

.....

3,358

3,268

1715845.PS.FTS.B,

19.83%,

2/16/25

....

7,482

1,011

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1709591.PS.FTS.B,

22.6%,

2/16/25

.....

$

10,727

$

9,133

1723593.PS.FTS.B,

22.6%,

2/18/25

.....

10,304

10,126

1722492.PS.FTS.B,

16.64%,

2/20/25

....

6,697

6,439

1709597.PS.FTS.B,

18.5%,

2/20/25

.....

4,054

3,931

1724859.PS.FTS.B,

11.4%,

2/22/25

.....

5,940

5,747

1724148.PS.FTS.B,

12.3%,

2/22/25

.....

5,897

5,700

1718062.PS.FTS.B,

20.4%,

2/22/25

.....

1,360

1,327

1713806.PS.FTS.B,

10.07%,

2/23/25

....

25,835

25,193

1713725.PS.FTS.B,

13.9%,

2/23/25

.....

5,904

5,703

1721427.PS.FTS.B,

17.96%,

2/24/25

....

11,835

11,369

1712954.PS.FTS.B,

12.4%,

2/26/25

.....

2,720

2,631

1716226.PS.FTS.B,

13.9%,

2/28/25

.....

5,795

5,571

1715152.PS.FTS.B,

21%,

2/28/25

.......

7,154

6,959

1708484.PS.FTS.B,

22.6%,

2/28/25

.....

2,889

2,810

1710380.PS.FTS.B,

23.59%,

2/28/25

....

2,130

2,087

1730775.PS.FTS.B,

16.3%,

3/03/25

.....

1,345

1,296

1708448.PS.FTS.B,

15.86%,

3/14/25

....

11,111

9,147

1740433.PS.FTS.B,

8.6%,

3/23/25

......

700

696

1748893.PS.FTS.B,

21.5%,

4/05/25

.....

2,621

–

1635648.PS.FTS.B,

17.54%,

6/30/25

....

10,988

5,319

1683602.PS.FTS.B,

23.4%,

7/05/25

.....

1,714

1,649

1632058.PS.FTS.B,

12.9%,

8/29/25

.....

4,280

4,123

1626683.PS.FTS.B,

15.4%,

9/26/25

.....

3,881

3,724

1655328.PS.FTS.B,

15.4%,

9/27/25

.....

1,992

1,200

1638183.PS.FTS.B,

17.71%,

9/27/25

....

9,563

9,280

1696479.PS.FTS.B,

25.4%,

11/16/25

....

6,960

–

1681039.PS.FTS.B,

14.49%,

11/20/25

....

6,499

–

1489833.PS.FTS.B,

16.99%,

11/30/25

....

6,350

6,104

1705071.PS.FTS.B,

18.7%,

12/01/25

....

3,785

2,357

1689362.PS.FTS.B,

13.77%,

12/14/25

...

29,999

15,539

1485878.PS.FTS.B,

11.99%,

12/17/25

....

9,702

9,574

1706328.PS.FTS.B,

24.4%,

12/21/25

....

484

478

1592846.PS.FTS.B,

15.9%,

7/23/26

.....

5,885

5,684

1599437.PS.FTS.B,

16.5%,

8/05/26

.....

26,336

25,285

1599440.PS.FTS.B,

26.4%,

8/05/26

.....

1,594

1,595

1599782.PS.FTS.B,

29.08%,

8/05/26

....

3,333

883

1600460.PS.FTS.B,

15.2%,

8/06/26

.....

11,193

10,752

1603750.PS.FTS.B,

15.9%,

8/06/26

.....

5,997

5,760

1600466.PS.FTS.B,

18.73%,

8/06/26

....

11,446

10,989

1603759.PS.FTS.B,

20.59%,

8/06/26

....

7,716

7,540

1604551.PS.FTS.B,

13.74%,

8/09/26

....

17,181

16,578

1611384.PS.FTS.B,

13.88%,

8/09/26

....

7,397

7,129

1611387.PS.FTS.B,

19.33%,

8/09/26

....

6,893

6,747

1611390.PS.FTS.B,

22.8%,

8/09/26

.....

1,563

1,569

1611810.PS.FTS.B,

13%,

8/10/26

.......

1,838

1,772

1606042.PS.FTS.B,

14.74%,

8/10/26

....

11,916

11,475

1611807.PS.FTS.B,

19.33%,

8/10/26

....

11,487

11,251

1612131.PS.FTS.B,

19.48%,

8/10/26

....

5,749

5,631

1602347.PS.FTS.B,

20.3%,

8/10/26

.....

1,541

1,509

1612149.PS.FTS.B,

20.7%,

8/10/26

.....

4,633

4,536

1612140.PS.FTS.B,

23.74%,

8/10/26

....

5,107

4,998

1606183.PS.FTS.B,

12.6%,

8/11/26

.....

11,000

10,607

1606945.PS.FTS.B,

12.5%,

8/12/26

.....

5,937

734

1607296.PS.FTS.B,

13.3%,

8/12/26

.....

4,435

4,274

1603532.PS.FTS.B,

20.5%,

8/12/26

.....

8,136

7,942

1602449.PS.FTS.B,

25%,

8/15/26

.......

1,585

1,582

1611322.PS.FTS.B,

12.5%,

8/19/26

.....

25,650

24,777

1618149.PS.FTS.B,

13.7%,

8/19/26

.....

8,127

7,850

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1604576.PS.FTS.B,

18.3%,

8/19/26

.....

$

7,640

$

7,466

1611805.PS.FTS.B,

16.18%,

8/20/26

....

22,152

21,382

1611804.PS.FTS.B,

18%,

8/22/26

.......

19,153

18,693

1619901.PS.FTS.B,

13.5%,

8/24/26

.....

8,854

8,562

1620930.PS.FTS.B,

15.8%,

8/25/26

.....

7,334

7,089

1615105.PS.FTS.B,

12.7%,

8/26/26

.....

14,219

13,757

1615738.PS.FTS.B,

13.3%,

8/27/26

.....

3,005

2,944

1612100.PS.FTS.B,

16.3%,

8/27/26

.....

7,654

7,516

1615246.PS.FTS.B,

16.64%,

8/27/26

....

9,204

9,041

1615636.PS.FTS.B,

12.5%,

8/30/26

.....

11,228

10,845

1612853.PS.FTS.B,

13%,

8/30/26

.......

29,992

28,824

1611798.PS.FTS.B,

25.74%,

9/01/26

....

8,213

8,110

1617610.PS.FTS.B,

15.29%,

9/11/26

....

10,358

9,891

1622321.PS.FTS.B,

19.23%,

9/17/26

....

2,336

2,288

1634619.PS.FTS.B,

19%,

9/21/26

.......

7,775

7,633

1624628.PS.FTS.B,

12.9%,

9/22/26

.....

18,731

18,090

1625300.PS.FTS.B,

11.79%,

9/23/26

....

5,207

5,031

1625246.PS.FTS.B,

12.5%,

9/23/26

.....

7,100

6,858

1626002.PS.FTS.B,

11.7%,

9/24/26

.....

18,586

17,960

1630114.PS.FTS.B,

11.7%,

9/24/26

......

6,691

6,466

1630111.PS.FTS.B,

13.03%,

9/24/26

.....

12,373

11,955

1629628.PS.FTS.B,

14.31%,

9/24/26

....

9,071

8,755

1630660.PS.FTS.B,

11.79%,

9/27/26

....

5,419

1,174

1637199.PS.FTS.B,

12.4%,

9/27/26

.....

12,180

11,913

1637250.PS.FTS.B,

13.4%,

9/27/26

.....

5,708

733

1626860.PS.FTS.B,

15%,

9/27/26

.......

5,026

4,922

1631629.PS.FTS.B,

11.7%,

9/28/26

.....

3,094

2,979

1631647.PS.FTS.B,

12.7%,

9/28/26

.....

11,321

10,868

1638105.PS.FTS.B,

13.4%,

9/28/26

.....

4,978

4,779

1628072.PS.FTS.B,

14.53%,

9/28/26

....

15,498

14,875

1627559.PS.FTS.B,

14.89%,

9/28/26

....

13,135

12,537

1638453.PS.FTS.B,

16.1%,

9/28/26

.....

11,671

11,138

1639041.PS.FTS.B,

11.7%,

9/29/26

.....

11,370

10,918

1627703.PS.FTS.B,

13.41%,

9/30/26

....

4,939

230

1626833.PS.FTS.B,

14.7%,

10/01/26

....

11,611

11,172

1469063.PS.FTS.B,

19.24%,

10/12/26

...

9,018

8,733

1646769.PS.FTS.B,

11.79%,

10/13/26

....

8,503

8,205

1648282.PS.FTS.B,

14%,

10/26/26

......

11,744

11,323

1648288.PS.FTS.B,

14.96%,

10/26/26

...

9,839

9,485

1645223.PS.FTS.B,

10.5%,

10/27/26

....

6,905

6,740

1645646.PS.FTS.B,

10.8%,

10/27/26

....

11,530

11,255

1648582.PS.FTS.B,

10.9%,

10/27/26

....

7,691

7,509

1645232.PS.FTS.B,

11.2%,

10/27/26

....

8,967

8,760

1645649.PS.FTS.B,

12.7%,

10/27/26

....

5,440

5,319

1655325.PS.FTS.B,

13.08%,

10/27/26

...

15,811

15,464

1648945.PS.FTS.B,

14.29%,

10/27/26

...

27,447

26,821

1648588.PS.FTS.B,

14.39%,

10/27/26

...

11,770

11,502

1648621.PS.FTS.B,

15.29%,

10/27/26

...

27,599

26,990

1655580.PS.FTS.B,

21%,

10/27/26

......

12,231

–

1646309.PS.FTS.B,

9.62%,

10/28/26

....

11,850

11,372

1649809.PS.FTS.B,

11.1%,

10/28/26

....

4,668

4,477

1649791.PS.FTS.B,

15.1%,

10/28/26

....

19,693

18,765

1646066.PS.FTS.B,

16.18%,

10/28/26

...

11,885

11,324

1645916.PS.FTS.B,

16.3%,

10/28/26

....

2,725

2,617

1646072.PS.FTS.B,

28.23%,

10/28/26

...

9,898

9,702

1650307.PS.FTS.B,

10.08%,

10/29/26

...

9,949

9,550

1647161.PS.FTS.B,

10.5%,

10/29/26

....

5,371

5,155

1657278.PS.FTS.B,

10.5%,

10/29/26

....

6,043

5,801

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

79

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1650655.PS.FTS.B,

10.71%,

10/29/26

...

$

3,896

$

3,785

1646819.PS.FTS.B,

11.2%,

10/29/26

....

3,082

2,958

1650901.PS.FTS.B,

11.2%,

10/29/26

....

11,941

11,461

1650547.PS.FTS.B,

13.7%,

10/29/26

....

9,209

8,779

1650847.PS.FTS.B,

13.93%,

10/29/26

...

6,261

6,008

1647071.PS.FTS.B,

14.38%,

10/29/26

...

15,692

15,058

1650865.PS.FTS.B,

15.18%,

10/29/26

...

7,880

7,562

1646828.PS.FTS.B,

15.29%,

10/29/26

...

16,559

15,784

1656183.PS.FTS.B,

14.38%,

10/31/26

...

5,894

5,653

1655343.PS.FTS.B,

16.65%,

10/31/26

...

10,627

10,388

1648990.PS.FTS.B,

18.33%,

10/31/26

...

13,655

13,290

1647098.PS.FTS.B,

11.55%,

11/01/26

....

23,136

22,206

1649806.PS.FTS.B,

12.33%,

11/01/26

....

12,000

6,351

1651774.PS.FTS.B,

11.89%,

11/02/26

....

6,575

6,314

1648793.PS.FTS.B,

26.43%,

11/02/26

....

8,328

8,194

1646054.PS.FTS.B,

15.1%,

11/03/26

....

2,509

2,391

1650023.PS.FTS.B,

14.79%,

11/04/26

....

8,649

8,393

1661388.PS.FTS.B,

11.55%,

11/05/26

....

3,088

2,967

1650968.PS.FTS.B,

16.33%,

11/05/26

....

14,272

13,630

1654723.PS.FTS.B,

18.6%,

11/05/26

....

6,820

6,593

1648496.PS.FTS.B,

19%,

11/07/26

......

4,033

3,876

1651754.PS.FTS.B,

10.5%,

11/08/26

....

15,344

14,757

1658080.PS.FTS.B,

14.63%,

11/08/26

....

11,784

11,269

1651784.PS.FTS.B,

16.18%,

11/08/26

....

19,805

18,936

1652300.PS.FTS.B,

21.18%,

11/08/26

....

11,655

11,274

1666515.PS.FTS.B,

11.2%,

11/09/26

.....

18,489

17,785

1665864.PS.FTS.B,

11.97%,

11/09/26

....

6,578

6,327

1666449.PS.FTS.B,

14.6%,

11/09/26

....

9,033

8,641

1658839.PS.FTS.B,

14.68%,

11/09/26

....

11,787

11,335

1658842.PS.FTS.B,

17%,

11/09/26

......

9,946

9,639

1659079.PS.FTS.B,

19%,

11/09/26

......

4,824

4,673

1665660.PS.FTS.B,

27.4%,

11/09/26

....

5,854

5,783

1654196.PS.FTS.B,

11.6%,

11/10/26

.....

15,384

14,802

1667148.PS.FTS.B,

11.6%,

11/10/26

.....

6,950

6,686

1660714.PS.FTS.B,

13.6%,

11/10/26

....

7,950

4,228

1651394.PS.FTS.B,

15.29%,

11/10/26

....

15,816

15,081

1654735.PS.FTS.B,

18.25%,

11/10/26

....

20,091

19,343

1660333.PS.FTS.B,

21.18%,

11/10/26

....

3,249

3,147

1654187.PS.FTS.B,

22.5%,

11/10/26

....

12,291

12,092

1667997.PS.FTS.B,

11.79%,

11/12/26

....

6,957

6,697

1655114.PS.FTS.B,

12.32%,

11/12/26

....

9,305

8,956

1667757.PS.FTS.B,

18.25%,

11/12/26

....

10,412

10,103

1667178.PS.FTS.B,

13.3%,

11/15/26

....

7,819

7,470

1661914.PS.FTS.B,

13.5%,

11/15/26

....

19,516

18,712

1661875.PS.FTS.B,

18.33%,

11/15/26

....

12,019

11,681

1661797.PS.FTS.B,

21%,

11/15/26

......

1,624

1,613

1657538.PS.FTS.B,

21.3%,

11/16/26

....

1,649

1,631

1658339.PS.FTS.B,

16%,

11/17/26

......

5,936

5,778

1653086.PS.FTS.B,

18.2%,

11/19/26

....

10,079

9,726

1656447.PS.FTS.B,

14.38%,

11/27/26

....

17,613

17,118

1664327.PS.FTS.B,

13.5%,

11/30/26

....

3,178

3,026

1687146.PS.FTS.B,

11.43%,

12/16/26

....

9,432

9,084

1687128.PS.FTS.B,

12.3%,

12/16/26

....

7,898

7,606

1680286.PS.FTS.B,

12.5%,

12/16/26

....

7,906

7,614

1687125.PS.FTS.B,

13.4%,

12/16/26

....

7,945

7,651

1680241.PS.FTS.B,

14.38%,

12/16/26

...

19,955

19,216

1680235.PS.FTS.B,

14.41%,

12/16/26

...

27,954

26,919

1674101.PS.FTS.B,

14.53%,

12/16/26

...

14,270

13,741

Description

Principal

Amount

Value

Prosper

Funding

LLC

(continued)

1687113.PS.FTS.B,

15.18%,

12/16/26

....

$

13,231

$

12,669

1680250.PS.FTS.B,

15.84%,

12/16/26

...

430

422

1673690.PS.FTS.B,

16.1%,

12/16/26

....

28,198

26,998

1679824.PS.FTS.B,

18.2%,

12/16/26

....

8,016

7,763

1680301.PS.FTS.B,

18.5%,

12/16/26

....

4,077

3,949

1674113.PS.FTS.B,

24%,

12/16/26

......

8,823

240

1673699.PS.FTS.B,

26.43%,

12/16/26

...

12,672

12,515

1675265.PS.FTS.B,

10.5%,

12/20/26

....

17,985

17,338

1681297.PS.FTS.B,

13.3%,

12/20/26

....

22,794

21,972

1681006.PS.FTS.B,

15.29%,

12/20/26

...

18,454

17,695

1682455.PS.FTS.B,

11.43%,

12/21/26

....

23,581

22,737

1673711.PS.FTS.B,

12.6%,

12/21/26

....

3,567

3,435

1688964.PS.FTS.B,

13.93%,

12/21/26

...

11,950

11,521

1689036.PS.FTS.B,

14.6%,

12/21/26

....

15,990

15,339

1689054.PS.FTS.B,

14.89%,

12/21/26

...

12,010

11,521

1676534.PS.FTS.B,

15.29%,

12/21/26

...

12,035

11,544

1676819.PS.FTS.B,

14.68%,

12/22/26

...

25,594

24,680

1674110.PS.FTS.B,

14.7%,

12/22/26

....

28,087

26,853

1690116.PS.FTS.B,

23.11%,

12/22/26

....

12,493

12,396

1677269.PS.FTS.B,

25.9%,

12/22/26

....

5,060

5,016

1690638.PS.FTS.B,

11.1%,

12/23/26

....

7,454

7,190

1687137.PS.FTS.B,

28.08%,

12/23/26

...

13,640

13,093

1688076.PS.FTS.B,

16.4%,

12/24/26

....

12,125

11,607

1680116.PS.FTS.B,

14%,

12/29/26

......

21,886

20,804

1674146.PS.FTS.B,

18.78%,

12/31/26

...

8,373

8,048

1686735.PS.FTS.B,

25.27%,

12/31/26

...

12,978

12,620

1694608.PS.FTS.B,

10.62%,

1/13/27

....

7,743

7,454

1701387.PS.FTS.B,

11.1%,

1/13/27

.....

6,390

6,149

1694572.PS.FTS.B,

11.6%,

1/13/27

.....

17,459

16,799

1695022.PS.FTS.B,

11.7%,

1/13/27

.....

11,904

11,456

1688996.PS.FTS.B,

11.79%,

1/13/27

....

19,640

18,898

1688534.PS.FTS.B,

12.9%,

1/13/27

.....

20,153

19,390

1694605.PS.FTS.B,

15.2%,

1/13/27

.....

1,712

1,635

1701783.PS.FTS.B,

15.5%,

1/13/27

.....

12,653

2,890

1688990.PS.FTS.B,

17.82%,

1/13/27

....

24,758

23,640

1694623.PS.FTS.B,

18.5%,

1/13/27

.....

5,795

5,585

1701375.PS.FTS.B,

21.69%,

1/13/27

....

8,395

8,246

1694593.PS.FTS.B,

23.4%,

1/13/27

.....

8,696

2,325

1701396.PS.FTS.B,

27.4%,

1/13/27

.....

4,331

4,224

1702062.PS.FTS.B,

11.79%,

1/14/27

....

7,231

6,959

1702152.PS.FTS.B,

12.87%,

1/14/27

....

4,836

4,654

1695343.PS.FTS.B,

12.9%,

1/14/27

.....

4,353

4,189

1702287.PS.FTS.B,

15.29%,

1/14/27

....

8,156

7,793

1689365.PS.FTS.B,

15.8%,

1/14/27

.....

16,351

15,622

1702137.PS.FTS.B,

16.2%,

1/14/27

.....

5,324

5,087

1702161.PS.FTS.B,

18.13%,

1/14/27

....

3,306

3,157

1689329.PS.FTS.B,

18.4%,

1/14/27

.....

8,109

7,820

1689347.PS.FTS.B,

19%,

1/14/27

.......

6,637

6,400

1695361.PS.FTS.B,

26.13%,

1/14/27

....

12,819

12,582

1690286.PS.FTS.B,

18.4%,

1/18/27

.....

19,445

–

1703139.PS.FTS.B,

25.9%,

1/18/27

.....

1,708

1,680

1704984.PS.FTS.B,

10.29%,

1/19/27

....

10,341

9,965

1692188.PS.FTS.B,

11.2%,

1/19/27

.....

19,879

19,156

1691687.PS.FTS.B,

12.7%,

1/19/27

.....

24,160

23,278

1675340.PS.FTS.B,

16%,

1/19/27

.......

11,049

10,689

1692281.PS.FTS.B,

16.5%,

1/19/27

.....

28,709

27,476

1704129.PS.FTS.B,

21.18%,

1/19/27

....

8,590

7,089

1692593.PS.FTS.B,

10.5%,

1/20/27

.....

15,926

15,350

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1698709.PS.FTS.B,

15.2%,

1/20/27

.....

$

12,229

$

11,709

1700548.PS.FTS.B,

25.9%,

1/24/27

.....

4,690

4,632

1695725.PS.FTS.B,

16.1%,

1/25/27

.....

18,585

18,034

1695031.PS.FTS.B,

15.5%,

1/27/27

.....

8,295

8,075

1606453.PS.FTS.B,

14.89%,

2/11/27

....

7,039

3,168

1708451.PS.FTS.B,

10.26%,

2/15/27

....

7,310

7,072

1715164.PS.FTS.B,

11.1%,

2/15/27

.....

4,704

583

1721439.PS.FTS.B,

12%,

2/15/27

.......

2,449

2,357

1721037.PS.FTS.B,

12.24%,

2/15/27

....

9,018

1,176

1715149.PS.FTS.B,

12.62%,

2/15/27

....

20,467

19,701

1708763.PS.FTS.B,

15.62%,

2/15/27

....

19,087

18,221

1715143.PS.FTS.B,

16.33%,

2/15/27

....

16,649

15,892

1708907.PS.FTS.B,

18.13%,

2/15/27

....

12,583

12,008

1708901.PS.FTS.B,

18.33%,

2/15/27

....

16,791

16,144

1720974.PS.FTS.B,

18.4%,

2/15/27

.....

16,494

15,802

1708466.PS.FTS.B,

18.6%,

2/15/27

.....

5,463

5,252

1708103.PS.FTS.B,

18.78%,

2/15/27

....

1,907

1,829

1721007.PS.FTS.B,

22%,

2/15/27

.......

10,224

10,005

1708913.PS.FTS.B,

25.2%,

2/15/27

.....

10,364

8,939

1715353.PS.FTS.B,

25.9%,

2/15/27

.....

1,729

1,690

1709507.PS.FTS.B,

13.5%,

2/16/27

.....

6,576

6,282

1709207.PS.FTS.B,

16%,

2/16/27

.......

9,160

8,783

1709498.PS.FTS.B,

25.9%,

2/16/27

.....

8,644

8,455

1722801.PS.FTS.B,

23.31%,

2/17/27

....

3,853

3,774

1718479.PS.FTS.B,

11.1%,

2/22/27

.....

7,316

7,054

1724556.PS.FTS.B,

17.38%,

2/22/27

....

5,388

5,200

1719415.PS.FTS.B,

10.8%,

2/23/27

.....

9,659

9,316

1719667.PS.FTS.B,

12.5%,

2/23/27

.....

12,274

11,836

1722171.PS.FTS.B,

18.78%,

2/28/27

....

6,400

6,133

1739157.PS.FTS.B,

11.5%,

3/18/27

.....

33,200

31,996

1749003.PS.FTS.B,

19.3%,

3/31/27

.....

6,080

5,746

1749006.PS.FTS.B,

19.53%,

3/31/27

....

9,562

9,036

1749429.PS.FTS.B,

25.9%,

3/31/27

.....

5,327

5,088

1613553.PS.FTS.B,

19.78%,

6/15/27

....

11,672

247

1605754.PS.FTS.B,

28.4%,

7/10/27

.....

4,520

2,768

1637205.PS.FTS.B,

11.7%,

8/27/27

.....

8,268

3,578

1631731.PS.FTS.B,

16.8%,

8/28/27

.....

13,125

6,223

1686133.PS.FTS.B,

10.44%,

11/22/27

....

9,805

9,405

3,597,575

Upgrade,

Inc.

UG25111074UG,

25.26%,

8/26/23

.......

1,983

2,015

UG23712149UG,

29.69%,

11/06/24

......

12,061

12,797

UG24548048UG,

28.99%,

11/20/24

......

21,873

23,092

UG24415650UG,

26.77%,

11/22/24

......

7,190

7,574

UG24697398UG,

26.77%,

11/25/24

......

8,165

8,621

UG24468287UG,

29.69%,

11/26/24

......

18,087

18,951

UG24606347UG,

30.17%,

12/03/24

.....

11,374

11,727

UG24464775UG,

26.77%,

12/19/24

.....

12,494

1,084

UG24618663UG,

29.69%,

12/21/24

.....

13,113

13,969

UG25533971UG,

29.69%,

12/26/24

.....

5,921

6,312

UG25752944UG,

26.77%,

1/03/25

......

9,238

9,644

UG25721348UG,

28.99%,

1/06/25

......

13,870

12,204

UG25684301UG,

29.69%,

1/06/25

......

6,838

7,066

UG25284171UG,

27.74%,

1/14/25

......

10,044

10,602

UG25595802UG,

28.99%,

1/22/25

......

12,485

12,607

UG24508053UG,

22.34%,

11/20/27

......

89

89

UG24442762UG,

Zero

Cpn,

11/30/27

....

519

40

Description

Principal

Amount

Value

Upgrade,

Inc.

(continued)

UG25022405UG,

25.26%,

12/06/27

.....

$

7

$

7

UG25513053UG,

24.29%,

12/24/27

.....

2,218

170

158,571

Upgrade,

Inc.

-

Card

UG991669440UG,

29.49%,

7/20/23

.....

–

–

UG991564235UG,

29.49%,

8/17/23

.....

12

12

UG991687443UG,

29.49%,

9/04/23

.....

12

11

UG991777453UG,

29.49%,

9/23/23

.....

14

13

UG991704902UG,

28.98%,

10/18/23

....

27

27

UG991595661UG,

28.98%,

10/24/23

....

20

18

UG991578462UG,

28.98%,

11/17/23

.....

29

30

UG991622450UG,

29.49%,

11/23/23

.....

29

29

UG991541856UG,

Zero

Cpn,

1/18/24

....

74

5

UG991552729UG,

28.48%,

1/18/24

.....

404

409

UG991592691UG,

28.48%,

1/18/24

.....

42

43

UG991622139UG,

28.48%,

1/18/24

.....

382

382

UG991751743UG,

29.47%,

1/18/24

.....

164

167

UG991536585UG,

29.49%,

1/18/24

.....

101

104

UG991539593UG,

29.49%,

1/18/24

.....

683

50

UG991546280UG,

29.49%,

1/18/24

.....

29

29

UG991546337UG,

29.49%,

1/18/24

.....

79

81

UG991587612UG,

29.49%,

1/18/24

.....

141

143

UG991629208UG,

29.49%,

1/18/24

.....

86

89

UG991727329UG,

29.49%,

1/18/24

.....

152

154

UG991769780UG,

29.49%,

1/18/24

.....

69

70

UG991746052UG,

Zero

Cpn,

1/19/24

....

276

19

UG991769837UG,

Zero

Cpn,

1/19/24

....

86

6

UG991546995UG,

19.99%,

1/19/24

.....

85

86

UG991781416UG,

20.96%,

1/19/24

.....

759

762

UG991545922UG,

25.45%,

1/19/24

.....

27

27

UG991546826UG,

28.48%,

1/19/24

.....

47

48

UG991765474UG,

28.48%,

1/19/24

.....

58

59

UG991781301UG,

28.48%,

1/19/24

.....

110

110

UG991782715UG,

28.98%,

1/19/24

.....

–

–

UG991644301UG,

29.48%,

1/19/24

.....

57

58

UG991689540UG,

29.48%,

1/19/24

.....

92

92

UG991759026UG,

29.48%,

1/19/24

.....

109

111

UG991765371UG,

29.48%,

1/19/24

.....

42

43

UG991542914UG,

29.49%,

1/19/24

.....

97

99

UG991546985UG,

29.49%,

1/19/24

.....

58

60

UG991547308UG,

29.49%,

1/19/24

.....

–

–

UG991547551UG,

29.49%,

1/19/24

.....

319

325

UG991598993UG,

29.49%,

1/19/24

.....

52

53

UG991623047UG,

29.49%,

1/19/24

.....

141

145

UG991662782UG,

29.49%,

1/19/24

.....

–

–

UG991684437UG,

29.49%,

1/19/24

.....

–

–

UG991697701UG,

29.49%,

1/19/24

.....

74

76

UG991712782UG,

29.49%,

1/19/24

.....

271

273

UG991716976UG,

29.49%,

1/19/24

.....

180

184

UG991733265UG,

29.49%,

1/19/24

.....

66

67

UG991756258UG,

29.49%,

1/19/24

.....

17

17

UG991760642UG,

29.49%,

1/19/24

.....

74

75

UG991765089UG,

29.49%,

1/19/24

.....

74

74

UG991768418UG,

29.49%,

1/19/24

.....

22

23

UG991782126UG,

29.49%,

1/19/24

.....

137

21

UG991553257UG,

Zero

Cpn,

1/20/24

....

685

48

UG991563444UG,

Zero

Cpn,

1/20/24

....

150

10

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

81

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991564550UG,

Zero

Cpn,

1/20/24

....

$

71

$

5

UG991575903UG,

Zero

Cpn,

1/20/24

....

530

38

UG991593482UG,

Zero

Cpn,

1/20/24

....

99

7

UG991597626UG,

Zero

Cpn,

1/20/24

....

815

57

UG991610954UG,

Zero

Cpn,

1/20/24

....

88

6

UG991625056UG,

Zero

Cpn,

1/20/24

....

117

8

UG991648571UG,

Zero

Cpn,

1/20/24

....

72

5

UG991763039UG,

Zero

Cpn,

1/20/24

....

220

15

UG991782434UG,

19.3%,

1/20/24

......

501

504

UG991546567UG,

19.99%,

1/20/24

.....

42

43

UG991556410UG,

19.99%,

1/20/24

.....

6

6

UG991558368UG,

19.99%,

1/20/24

.....

444

455

UG991572409UG,

19.99%,

1/20/24

.....

63

63

UG991583492UG,

19.99%,

1/20/24

.....

32

33

UG991591617UG,

19.99%,

1/20/24

.....

35

35

UG991597422UG,

19.99%,

1/20/24

.....

50

50

UG991582394UG,

25.45%,

1/20/24

.....

484

37

UG991663622UG,

25.45%,

1/20/24

.....

41

41

UG991734079UG,

25.45%,

1/20/24

.....

42

3

UG991754836UG,

25.45%,

1/20/24

.....

38

3

UG991573254UG,

26.44%,

1/20/24

.....

102

102

UG991739704UG,

26.44%,

1/20/24

.....

63

(1)

UG991544405UG,

28.48%,

1/20/24

.....

17

17

UG991546473UG,

28.48%,

1/20/24

.....

7

7

UG991549025UG,

28.48%,

1/20/24

.....

130

133

UG991554027UG,

28.48%,

1/20/24

.....

134

136

UG991554902UG,

28.48%,

1/20/24

.....

42

43

UG991559316UG,

28.48%,

1/20/24

.....

56

58

UG991568589UG,

28.48%,

1/20/24

.....

14

14

UG991569197UG,

28.48%,

1/20/24

.....

71

72

UG991583384UG,

28.48%,

1/20/24

.....

44

45

UG991590348UG,

28.48%,

1/20/24

.....

62

63

UG991596321UG,

28.48%,

1/20/24

.....

26

26

UG991612639UG,

28.48%,

1/20/24

.....

76

78

UG991615418UG,

28.48%,

1/20/24

.....

57

58

UG991622252UG,

28.48%,

1/20/24

.....

77

78

UG991644127UG,

28.48%,

1/20/24

.....

125

128

UG991679918UG,

28.48%,

1/20/24

.....

20

20

UG991691451UG,

28.48%,

1/20/24

.....

66

68

UG991704363UG,

28.48%,

1/20/24

.....

70

70

UG991708292UG,

28.48%,

1/20/24

.....

203

55

UG991754575UG,

28.48%,

1/20/24

.....

154

156

UG991756843UG,

28.48%,

1/20/24

.....

40

41

UG991545055UG,

29.46%,

1/20/24

.....

102

104

UG991563815UG,

29.46%,

1/20/24

.....

16

17

UG991596840UG,

29.46%,

1/20/24

.....

15

15

UG991561413UG,

29.47%,

1/20/24

.....

24

24

UG991650318UG,

29.47%,

1/20/24

.....

1

1

UG991546096UG,

29.48%,

1/20/24

.....

121

122

UG991547890UG,

29.48%,

1/20/24

.....

252

257

UG991563118UG,

29.48%,

1/20/24

......

20

20

UG991564976UG,

29.48%,

1/20/24

.....

26

27

UG991573314UG,

29.48%,

1/20/24

.....

140

143

UG991593773UG,

29.48%,

1/20/24

.....

35

36

UG991612779UG,

29.48%,

1/20/24

.....

72

73

UG991615405UG,

29.48%,

1/20/24

.....

6

6

UG991637112UG,

29.48%,

1/20/24

......

349

53

UG991690864UG,

29.48%,

1/20/24

.....

399

408

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991712564UG,

29.48%,

1/20/24

.....

$

189

$

193

UG991723500UG,

29.48%,

1/20/24

.....

61

62

UG991544517UG,

29.49%,

1/20/24

.....

75

77

UG991545295UG,

29.49%,

1/20/24

.....

216

219

UG991545502UG,

29.49%,

1/20/24

.....

200

206

UG991546518UG,

29.49%,

1/20/24

.....

46

7

UG991546601UG,

29.49%,

1/20/24

.....

65

66

UG991547820UG,

29.49%,

1/20/24

.....

–

–

UG991547826UG,

29.49%,

1/20/24

.....

148

151

UG991548275UG,

29.49%,

1/20/24

.....

126

127

UG991548490UG,

29.49%,

1/20/24

.....

142

146

UG991549381UG,

29.49%,

1/20/24

.....

155

159

UG991552461UG,

29.49%,

1/20/24

.....

82

84

UG991552688UG,

29.49%,

1/20/24

.....

23

24

UG991556087UG,

29.49%,

1/20/24

.....

43

45

UG991557821UG,

29.49%,

1/20/24

.....

90

92

UG991558974UG,

29.49%,

1/20/24

.....

60

9

UG991559051UG,

29.49%,

1/20/24

.....

19

19

UG991561923UG,

29.49%,

1/20/24

.....

135

134

UG991562972UG,

29.49%,

1/20/24

.....

383

393

UG991567858UG,

29.49%,

1/20/24

.....

298

298

UG991569020UG,

29.49%,

1/20/24

.....

58

58

UG991569938UG,

29.49%,

1/20/24

.....

44

45

UG991572520UG,

29.49%,

1/20/24

.....

79

7

UG991572954UG,

29.49%,

1/20/24

.....

362

371

UG991573325UG,

29.49%,

1/20/24

.....

29

29

UG991575505UG,

29.49%,

1/20/24

.....

495

502

UG991575740UG,

29.49%,

1/20/24

.....

32

33

UG991576674UG,

29.49%,

1/20/24

.....

43

44

UG991577337UG,

29.49%,

1/20/24

.....

–

–

UG991579389UG,

29.49%,

1/20/24

.....

99

102

UG991579802UG,

29.49%,

1/20/24

.....

109

112

UG991579854UG,

29.49%,

1/20/24

.....

65

67

UG991583578UG,

29.49%,

1/20/24

.....

14

14

UG991585183UG,

29.49%,

1/20/24

.....

40

41

UG991585361UG,

29.49%,

1/20/24

.....

87

89

UG991587497UG,

29.49%,

1/20/24

.....

484

498

UG991588825UG,

29.49%,

1/20/24

.....

44

45

UG991588849UG,

29.49%,

1/20/24

.....

26

26

UG991589138UG,

29.49%,

1/20/24

.....

24

25

UG991591243UG,

29.49%,

1/20/24

.....

35

35

UG991593009UG,

29.49%,

1/20/24

.....

53

55

UG991597653UG,

29.49%,

1/20/24

.....

69

69

UG991598266UG,

29.49%,

1/20/24

.....

106

108

UG991598468UG,

29.49%,

1/20/24

.....

33

34

UG991598552UG,

29.49%,

1/20/24

.....

85

86

UG991601123UG,

29.49%,

1/20/24

......

291

12

UG991601688UG,

29.49%,

1/20/24

.....

184

(7)

UG991603595UG,

29.49%,

1/20/24

.....

92

94

UG991608834UG,

29.49%,

1/20/24

.....

112

115

UG991611241UG,

29.49%,

1/20/24

......

100

103

UG991612399UG,

29.49%,

1/20/24

.....

173

177

UG991612448UG,

29.49%,

1/20/24

.....

78

80

UG991617558UG,

29.49%,

1/20/24

.....

269

277

UG991621373UG,

29.49%,

1/20/24

.....

9

9

UG991622812UG,

29.49%,

1/20/24

.....

11

11

UG991624921UG,

29.49%,

1/20/24

.....

9

9

UG991629452UG,

29.49%,

1/20/24

.....

228

233

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991630097UG,

29.49%,

1/20/24

.....

$

105

$

10

UG991631740UG,

29.49%,

1/20/24

.....

146

147

UG991633536UG,

29.49%,

1/20/24

.....

19

20

UG991634055UG,

29.49%,

1/20/24

.....

181

28

UG991638936UG,

29.49%,

1/20/24

.....

54

56

UG991642104UG,

29.49%,

1/20/24

.....

53

55

UG991642333UG,

29.49%,

1/20/24

.....

61

63

UG991644578UG,

29.49%,

1/20/24

.....

447

37

UG991651171UG,

29.49%,

1/20/24

......

42

43

UG991664444UG,

29.49%,

1/20/24

.....

58

5

UG991673779UG,

29.49%,

1/20/24

.....

62

63

UG991674489UG,

29.49%,

1/20/24

.....

228

233

UG991677407UG,

29.49%,

1/20/24

.....

69

70

UG991678827UG,

29.49%,

1/20/24

.....

156

159

UG991682318UG,

29.49%,

1/20/24

.....

110

111

UG991683321UG,

29.49%,

1/20/24

.....

445

458

UG991685152UG,

29.49%,

1/20/24

.....

12

12

UG991691631UG,

29.49%,

1/20/24

.....

279

283

UG991695976UG,

29.49%,

1/20/24

.....

44

44

UG991697236UG,

29.49%,

1/20/24

.....

200

205

UG991706145UG,

29.49%,

1/20/24

.....

62

63

UG991708222UG,

29.49%,

1/20/24

.....

6

6

UG991709888UG,

29.49%,

1/20/24

.....

79

80

UG991711876UG,

29.49%,

1/20/24

......

16

17

UG991717301UG,

29.49%,

1/20/24

.....

161

164

UG991721227UG,

29.49%,

1/20/24

.....

44

45

UG991730813UG,

29.49%,

1/20/24

.....

88

90

UG991734314UG,

29.49%,

1/20/24

.....

199

203

UG991734330UG,

29.49%,

1/20/24

.....

39

40

UG991739160UG,

29.49%,

1/20/24

.....

11

11

UG991740784UG,

29.49%,

1/20/24

.....

174

14

UG991741702UG,

29.49%,

1/20/24

.....

94

96

UG991750028UG,

29.49%,

1/20/24

.....

97

99

UG991757872UG,

29.49%,

1/20/24

.....

31

31

UG991765334UG,

29.49%,

1/20/24

.....

48

49

UG991782660UG,

29.49%,

1/20/24

.....

44

45

UG991790198UG,

29.49%,

1/20/24

.....

77

78

UG991669590UG,

Zero

Cpn,

1/21/24

....

64

4

UG991701379UG,

Zero

Cpn,

1/21/24

....

59

4

UG991709231UG,

Zero

Cpn,

1/21/24

....

103

7

UG991711423UG,

Zero

Cpn,

1/21/24

....

486

34

UG991718420UG,

Zero

Cpn,

1/21/24

....

166

11

UG991721760UG,

Zero

Cpn,

1/21/24

....

352

25

UG991729600UG,

Zero

Cpn,

1/21/24

....

168

12

UG991767885UG,

21.48%,

1/21/24

.....

44

45

UG991669352UG,

26.49%,

1/21/24

.....

59

61

UG991677773UG,

28.48%,

1/21/24

.....

32

32

UG991693767UG,

28.48%,

1/21/24

.....

40

41

UG991711024UG,

28.48%,

1/21/24

......

77

77

UG991723171UG,

28.48%,

1/21/24

.....

130

133

UG991723414UG,

28.48%,

1/21/24

.....

206

210

UG991730921UG,

28.48%,

1/21/24

.....

155

157

UG991731530UG,

28.48%,

1/21/24

.....

219

223

UG991784545UG,

28.48%,

1/21/24

.....

57

59

UG991702778UG,

29.48%,

1/21/24

.....

73

75

UG991703577UG,

29.48%,

1/21/24

.....

294

301

UG991633202UG,

29.49%,

1/21/24

.....

71

73

UG991663489UG,

29.49%,

1/21/24

.....

72

73

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991672853UG,

29.49%,

1/21/24

.....

$

18

$

2

UG991677244UG,

29.49%,

1/21/24

.....

111

114

UG991680983UG,

29.49%,

1/21/24

.....

52

54

UG991689800UG,

29.49%,

1/21/24

.....

72

74

UG991691567UG,

29.49%,

1/21/24

.....

211

62

UG991693634UG,

29.49%,

1/21/24

.....

55

56

UG991695164UG,

29.49%,

1/21/24

.....

62

62

UG991696264UG,

29.49%,

1/21/24

.....

180

17

UG991703953UG,

29.49%,

1/21/24

.....

83

84

UG991704641UG,

29.49%,

1/21/24

.....

80

76

UG991705635UG,

29.49%,

1/21/24

.....

116

119

UG991706927UG,

29.49%,

1/21/24

.....

56

57

UG991713176UG,

29.49%,

1/21/24

.....

–

–

UG991716207UG,

29.49%,

1/21/24

.....

79

81

UG991717827UG,

29.49%,

1/21/24

.....

137

138

UG991717854UG,

29.49%,

1/21/24

.....

69

71

UG991730534UG,

29.49%,

1/21/24

.....

66

68

UG991732216UG,

29.49%,

1/21/24

.....

33

33

UG991737559UG,

29.49%,

1/21/24

.....

148

151

UG991740725UG,

29.49%,

1/21/24

.....

199

203

UG991741497UG,

29.49%,

1/21/24

.....

135

137

UG991743085UG,

29.49%,

1/21/24

.....

79

(3)

UG991743560UG,

29.49%,

1/21/24

.....

36

37

UG991744629UG,

29.49%,

1/21/24

.....

44

45

UG991747055UG,

29.49%,

1/21/24

.....

130

133

UG991747988UG,

29.49%,

1/21/24

.....

1

1

UG991753846UG,

29.49%,

1/21/24

.....

113

115

UG991761541UG,

29.49%,

1/21/24

.....

86

88

UG991773483UG,

29.49%,

1/21/24

.....

44

45

UG991777657UG,

29.49%,

1/21/24

.....

16

16

UG991782683UG,

29.49%,

1/21/24

.....

353

360

UG991783245UG,

29.49%,

1/21/24

.....

28

28

UG991784482UG,

29.49%,

1/21/24

.....

71

73

UG991792435UG,

29.49%,

1/21/24

.....

662

674

UG991797353UG,

29.49%,

1/21/24

.....

2

2

UG991642188UG,

Zero

Cpn,

1/22/24

....

145

10

UG991722481UG,

Zero

Cpn,

1/22/24

....

110

8

UG991709002UG,

15%,

1/22/24

........

8

8

UG991651259UG,

18.71%,

1/22/24

.....

62

63

UG991651374UG,

18.71%,

1/22/24

.....

24

23

UG991739678UG,

18.71%,

1/22/24

.....

85

85

UG991660263UG,

19.3%,

1/22/24

......

132

132

UG991635081UG,

19.96%,

1/22/24

.....

169

170

UG991712989UG,

20.47%,

1/22/24

.....

117

118

UG991775322UG,

20.47%,

1/22/24

.....

63

63

UG991783332UG,

20.47%,

1/22/24

.....

210

211

UG991663050UG,

20.96%,

1/22/24

.....

360

25

UG991774181UG,

20.96%,

1/22/24

.....

102

103

UG991780816UG,

20.96%,

1/22/24

.....

50

50

UG991651393UG,

21.48%,

1/22/24

.....

183

185

UG991765596UG,

22.47%,

1/22/24

.....

51

52

UG991699664UG,

25.45%,

1/22/24

.....

39

39

UG991631012UG,

28.48%,

1/22/24

.....

78

79

UG991645563UG,

28.48%,

1/22/24

.....

295

45

UG991662739UG,

28.48%,

1/22/24

.....

96

98

UG991725934UG,

28.48%,

1/22/24

.....

56

57

UG991637365UG,

29.48%,

1/22/24

.....

91

3

UG991639954UG,

29.48%,

1/22/24

.....

81

83

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

83

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991608552UG,

29.49%,

1/22/24

.....

$

31

$

31

UG991649089UG,

29.49%,

1/22/24

.....

546

562

UG991660122UG,

29.49%,

1/22/24

.....

33

33

UG991660601UG,

29.49%,

1/22/24

.....

28

28

UG991672504UG,

29.49%,

1/22/24

.....

170

170

UG991692165UG,

29.49%,

1/22/24

.....

9

9

UG991696271UG,

29.49%,

1/22/24

.....

280

285

UG991722363UG,

29.49%,

1/22/24

.....

67

68

UG991723437UG,

29.49%,

1/22/24

.....

56

57

UG991734177UG,

29.49%,

1/22/24

.....

68

69

UG991765647UG,

29.49%,

1/22/24

.....

134

137

UG991772721UG,

29.49%,

1/22/24

.....

1,155

80

UG991786828UG,

29.49%,

1/22/24

.....

23

24

UG991808260UG,

29.49%,

1/22/24

.....

11

11

UG991646006UG,

Zero

Cpn,

1/23/24

....

81

6

UG991661160UG,

Zero

Cpn,

1/23/24

....

71

5

UG991732340UG,

Zero

Cpn,

1/23/24

....

106

7

UG991676903UG,

18.47%,

1/23/24

.....

34

34

UG991774569UG,

18.47%,

1/23/24

.....

48

48

UG991642674UG,

19.3%,

1/23/24

......

18

18

UG991643208UG,

19.3%,

1/23/24

......

101

101

UG991784139UG,

19.3%,

1/23/24

......

992

993

UG991785256UG,

19.3%,

1/23/24

......

81

–

UG991810762UG,

19.96%,

1/23/24

.....

420

422

UG991772621UG,

20.96%,

1/23/24

.....

85

85

UG991802095UG,

20.96%,

1/23/24

.....

485

39

UG991651727UG,

21.48%,

1/23/24

.....

56

5

UG991805841UG,

24.45%,

1/23/24

.....

62

62

UG991637815UG,

26.44%,

1/23/24

.....

206

205

UG991767100UG,

27.99%,

1/23/24

.....

30

30

UG991818118UG,

27.99%,

1/23/24

......

15

16

UG991631116UG,

28.48%,

1/23/24

......

73

74

UG991686637UG,

28.48%,

1/23/24

.....

148

151

UG991692289UG,

28.48%,

1/23/24

.....

27

27

UG991710024UG,

28.48%,

1/23/24

.....

160

163

UG991730901UG,

28.48%,

1/23/24

.....

505

515

UG991743333UG,

28.48%,

1/23/24

.....

14

14

UG991798676UG,

28.48%,

1/23/24

.....

56

57

UG991635388UG,

29.48%,

1/23/24

.....

307

314

UG991678696UG,

29.48%,

1/23/24

.....

121

124

UG991809474UG,

29.48%,

1/23/24

.....

90

91

UG991634459UG,

29.49%,

1/23/24

.....

268

42

UG991637143UG,

29.49%,

1/23/24

.....

92

95

UG991653477UG,

29.49%,

1/23/24

.....

58

60

UG991655971UG,

29.49%,

1/23/24

.....

78

80

UG991661636UG,

29.49%,

1/23/24

.....

46

38

UG991662802UG,

29.49%,

1/23/24

.....

717

731

UG991675288UG,

29.49%,

1/23/24

.....

4

4

UG991681725UG,

29.49%,

1/23/24

.....

–

–

UG991682766UG,

29.49%,

1/23/24

.....

239

191

UG991701176UG,

29.49%,

1/23/24

......

50

51

UG991724292UG,

29.49%,

1/23/24

.....

249

259

UG991731683UG,

29.49%,

1/23/24

.....

355

366

UG991744187UG,

29.49%,

1/23/24

.....

87

88

UG991771610UG,

29.49%,

1/23/24

.....

163

166

UG991575830UG,

Zero

Cpn,

1/24/24

....

731

51

UG991591971UG,

Zero

Cpn,

1/24/24

....

303

21

UG991767615UG,

Zero

Cpn,

1/24/24

....

421

29

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991633382UG,

17.49%,

1/24/24

.....

$

161

$

160

UG991697456UG,

18.71%,

1/24/24

.....

47

1

UG991678748UG,

20.47%,

1/24/24

.....

81

81

UG991675015UG,

21.48%,

1/24/24

.....

427

432

UG991693039UG,

22.47%,

1/24/24

.....

132

133

UG991655876UG,

28.48%,

1/24/24

.....

158

162

UG991679024UG,

28.48%,

1/24/24

.....

160

163

UG991804850UG,

28.48%,

1/24/24

.....

56

57

UG991595875UG,

29.48%,

1/24/24

.....

152

23

UG991795779UG,

29.48%,

1/24/24

.....

50

51

UG991576816UG,

29.49%,

1/24/24

.....

312

(10)

UG991578487UG,

29.49%,

1/24/24

.....

8

8

UG991597915UG,

29.49%,

1/24/24

.....

45

46

UG991636430UG,

29.49%,

1/24/24

.....

34

3

UG991650075UG,

29.49%,

1/24/24

.....

297

298

UG991656328UG,

29.49%,

1/24/24

.....

89

92

UG991661397UG,

29.49%,

1/24/24

.....

65

(1)

UG991665767UG,

29.49%,

1/24/24

.....

41

42

UG991677221UG,

29.49%,

1/24/24

.....

–

–

UG991686888UG,

29.49%,

1/24/24

.....

85

86

UG991688167UG,

29.49%,

1/24/24

.....

60

62

UG991697780UG,

29.49%,

1/24/24

.....

19

19

UG991719521UG,

29.49%,

1/24/24

.....

58

58

UG991729920UG,

29.49%,

1/24/24

.....

8

8

UG991739712UG,

29.49%,

1/24/24

.....

43

44

UG991762599UG,

29.49%,

1/24/24

.....

22

23

UG991768107UG,

29.49%,

1/24/24

.....

43

43

UG991775830UG,

29.49%,

1/24/24

.....

68

70

UG991589305UG,

Zero

Cpn,

1/25/24

....

152

11

UG991591385UG,

Zero

Cpn,

1/25/24

....

17

1

UG991630323UG,

Zero

Cpn,

1/25/24

....

92

7

UG991633345UG,

Zero

Cpn,

1/25/24

....

189

13

UG991701563UG,

Zero

Cpn,

1/25/24

....

258

18

UG991690086UG,

16.49%,

1/25/24

.....

84

85

UG991702421UG,

16.49%,

1/25/24

.....

44

44

UG991642537UG,

18.47%,

1/25/24

.....

60

61

UG991658713UG,

18.47%,

1/25/24

.....

49

49

UG991790759UG,

18.47%,

1/25/24

.....

10

10

UG991642255UG,

18.71%,

1/25/24

.....

88

89

UG991712687UG,

19.3%,

1/25/24

......

34

34

UG991749971UG,

19.96%,

1/25/24

.....

5

5

UG991638927UG,

20.96%,

1/25/24

.....

87

88

UG991639306UG,

21.48%,

1/25/24

.....

38

39

UG991661968UG,

21.48%,

1/25/24

.....

145

146

UG991644518UG,

22.47%,

1/25/24

.....

41

41

UG991653049UG,

22.47%,

1/25/24

.....

171

14

UG991665257UG,

22.47%,

1/25/24

.....

22

22

UG991666345UG,

22.47%,

1/25/24

.....

776

774

UG991675457UG,

22.47%,

1/25/24

.....

60

61

UG991628803UG,

25.44%,

1/25/24

.....

93

93

UG991652053UG,

26.44%,

1/25/24

.....

50

51

UG991729257UG,

27.99%,

1/25/24

.....

124

126

UG991631472UG,

28.48%,

1/25/24

.....

89

92

UG991668456UG,

28.48%,

1/25/24

.....

50

52

UG991710726UG,

28.48%,

1/25/24

.....

46

47

UG991766143UG,

28.48%,

1/25/24

.....

155

155

UG991808857UG,

28.48%,

1/25/24

.....

87

89

UG991606137UG,

29.48%,

1/25/24

.....

40

42

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991616807UG,

29.48%,

1/25/24

.....

$

79

$

81

UG991677136UG,

29.48%,

1/25/24

.....

32

33

UG991585669UG,

29.49%,

1/25/24

.....

136

138

UG991590828UG,

29.49%,

1/25/24

.....

114

118

UG991604373UG,

29.49%,

1/25/24

.....

105

108

UG991619556UG,

29.49%,

1/25/24

.....

37

38

UG991633451UG,

29.49%,

1/25/24

.....

145

150

UG991633646UG,

29.49%,

1/25/24

.....

49

51

UG991641518UG,

29.49%,

1/25/24

.....

20

20

UG991649590UG,

29.49%,

1/25/24

.....

37

38

UG991654938UG,

29.49%,

1/25/24

.....

511

525

UG991663576UG,

29.49%,

1/25/24

.....

503

513

UG991671286UG,

29.49%,

1/25/24

.....

224

229

UG991679898UG,

29.49%,

1/25/24

.....

92

94

UG991686544UG,

29.49%,

1/25/24

.....

13

13

UG991686636UG,

29.49%,

1/25/24

.....

63

65

UG991700265UG,

29.49%,

1/25/24

.....

43

7

UG991700798UG,

29.49%,

1/25/24

.....

44

45

UG991714482UG,

29.49%,

1/25/24

.....

95

97

UG991721326UG,

29.49%,

1/25/24

.....

137

139

UG991726761UG,

29.49%,

1/25/24

.....

271

44

UG991729432UG,

29.49%,

1/25/24

.....

183

187

UG991731430UG,

29.49%,

1/25/24

.....

62

64

UG991732382UG,

29.49%,

1/25/24

.....

51

51

UG991742074UG,

29.49%,

1/25/24

.....

67

69

UG991749150UG,

29.49%,

1/25/24

.....

133

137

UG991751813UG,

29.49%,

1/25/24

.....

153

153

UG991758703UG,

29.49%,

1/25/24

.....

91

93

UG991761336UG,

29.49%,

1/25/24

.....

65

11

UG991766815UG,

29.49%,

1/25/24

.....

71

72

UG991769017UG,

29.49%,

1/25/24

.....

85

87

UG991783583UG,

29.49%,

1/25/24

.....

89

90

UG991786634UG,

29.49%,

1/25/24

.....

158

161

UG991795056UG,

29.49%,

1/25/24

.....

78

80

UG991803621UG,

29.49%,

1/25/24

.....

116

119

UG991806034UG,

29.49%,

1/25/24

.....

23

23

UG991816232UG,

29.49%,

1/25/24

.....

47

48

UG991820253UG,

29.49%,

1/25/24

.....

43

44

UG991823201UG,

29.49%,

1/25/24

.....

157

13

UG991828617UG,

29.49%,

1/25/24

.....

38

39

UG991831119UG,

29.49%,

1/25/24

......

19

19

UG991633662UG,

Zero

Cpn,

1/26/24

....

90

6

UG991681325UG,

Zero

Cpn,

1/26/24

....

46

3

UG991810154UG,

15.47%,

1/26/24

.....

156

157

UG991784174UG,

16.49%,

1/26/24

.....

46

46

UG991828622UG,

16.49%,

1/26/24

.....

87

87

UG991636818UG,

19.96%,

1/26/24

.....

32

32

UG991643141UG,

19.96%,

1/26/24

.....

210

210

UG991671753UG,

19.96%,

1/26/24

.....

138

111

UG991759419UG,

19.96%,

1/26/24

.....

89

–

UG991590508UG,

19.99%,

1/26/24

.....

62

64

UG991671345UG,

19.99%,

1/26/24

.....

257

3

UG991679320UG,

21.48%,

1/26/24

.....

106

107

UG991749734UG,

21.48%,

1/26/24

.....

40

41

UG991620819UG,

28.48%,

1/26/24

.....

8

8

UG991650272UG,

28.48%,

1/26/24

.....

57

9

UG991660260UG,

28.48%,

1/26/24

.....

254

259

UG991661075UG,

28.48%,

1/26/24

.....

313

320

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991699559UG,

28.48%,

1/26/24

.....

$

55

$

55

UG991700697UG,

28.48%,

1/26/24

.....

86

88

UG991706943UG,

28.48%,

1/26/24

.....

182

185

UG991719423UG,

28.48%,

1/26/24

.....

176

180

UG991740916UG,

28.48%,

1/26/24

.....

283

232

UG991801021UG,

28.48%,

1/26/24

.....

66

67

UG991826702UG,

28.48%,

1/26/24

.....

121

124

UG991834361UG,

28.48%,

1/26/24

.....

53

54

UG991651287UG,

29.46%,

1/26/24

.....

–

–

UG991717920UG,

29.48%,

1/26/24

.....

548

562

UG991731025UG,

29.48%,

1/26/24

.....

–

–

UG991775037UG,

29.48%,

1/26/24

.....

18

18

UG991592956UG,

29.49%,

1/26/24

.....

44

45

UG991598750UG,

29.49%,

1/26/24

.....

203

206

UG991599536UG,

29.49%,

1/26/24

.....

291

300

UG991618299UG,

29.49%,

1/26/24

.....

99

102

UG991629683UG,

29.49%,

1/26/24

.....

154

159

UG991633373UG,

29.49%,

1/26/24

.....

197

201

UG991633572UG,

29.49%,

1/26/24

.....

56

9

UG991633631UG,

29.49%,

1/26/24

.....

78

5

UG991636176UG,

29.49%,

1/26/24

.....

223

223

UG991636182UG,

29.49%,

1/26/24

.....

162

163

UG991638287UG,

29.49%,

1/26/24

.....

134

22

UG991640433UG,

29.49%,

1/26/24

.....

33

34

UG991642017UG,

29.49%,

1/26/24

.....

53

54

UG991642061UG,

29.49%,

1/26/24

.....

80

81

UG991648245UG,

29.49%,

1/26/24

.....

92

95

UG991649659UG,

29.49%,

1/26/24

.....

65

66

UG991650388UG,

29.49%,

1/26/24

.....

13

14

UG991654092UG,

29.49%,

1/26/24

.....

36

36

UG991658296UG,

29.49%,

1/26/24

.....

155

159

UG991666721UG,

29.49%,

1/26/24

.....

228

20

UG991668513UG,

29.49%,

1/26/24

.....

41

42

UG991676577UG,

29.49%,

1/26/24

.....

780

791

UG991683106UG,

29.49%,

1/26/24

.....

121

124

UG991692922UG,

29.49%,

1/26/24

.....

388

33

UG991698192UG,

29.49%,

1/26/24

.....

57

58

UG991713721UG,

29.49%,

1/26/24

.....

65

67

UG991725699UG,

29.49%,

1/26/24

.....

417

426

UG991739566UG,

29.49%,

1/26/24

.....

701

554

UG991744088UG,

29.49%,

1/26/24

.....

41

42

UG991752959UG,

29.49%,

1/26/24

.....

46

48

UG991764433UG,

29.49%,

1/26/24

.....

51

52

UG991781162UG,

29.49%,

1/26/24

......

69

70

UG991783361UG,

29.49%,

1/26/24

.....

88

90

UG991784306UG,

29.49%,

1/26/24

.....

40

41

UG991787533UG,

29.49%,

1/26/24

.....

42

43

UG991795277UG,

29.49%,

1/26/24

.....

47

48

UG991799361UG,

29.49%,

1/26/24

.....

9

9

UG991800458UG,

29.49%,

1/26/24

.....

29

30

UG991816323UG,

29.49%,

1/26/24

.....

7

7

UG991819010UG,

29.49%,

1/26/24

.....

67

69

UG991828909UG,

29.49%,

1/26/24

.....

11

11

UG991836284UG,

29.49%,

1/26/24

.....

332

333

UG991836489UG,

29.49%,

1/26/24

.....

95

98

UG991621935UG,

Zero

Cpn,

1/27/24

....

104

7

UG991653265UG,

Zero

Cpn,

1/27/24

....

1,285

90

UG991670151UG,

Zero

Cpn,

1/27/24

....

457

32

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

85

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991773350UG,

Zero

Cpn,

1/27/24

....

$

448

$

31

UG991773994UG,

Zero

Cpn,

1/27/24

....

92

7

UG991842241UG,

15.47%,

1/27/24

.....

35

35

UG991706691UG,

17.49%,

1/27/24

.....

68

68

UG991609765UG,

27.99%,

1/27/24

.....

175

180

UG991601477UG,

28.48%,

1/27/24

.....

44

46

UG991633792UG,

28.48%,

1/27/24

.....

94

94

UG991638924UG,

28.48%,

1/27/24

.....

–

–

UG991661576UG,

28.48%,

1/27/24

.....

120

124

UG991664071UG,

28.48%,

1/27/24

.....

192

197

UG991698388UG,

28.48%,

1/27/24

.....

59

9

UG991711799UG,

28.48%,

1/27/24

......

124

126

UG991723489UG,

28.48%,

1/27/24

.....

99

101

UG991728658UG,

28.48%,

1/27/24

.....

93

95

UG991741153UG,

28.48%,

1/27/24

......

332

342

UG991801395UG,

28.48%,

1/27/24

.....

102

104

UG991614264UG,

29.48%,

1/27/24

.....

99

99

UG991638057UG,

29.48%,

1/27/24

.....

23

24

UG991699163UG,

29.48%,

1/27/24

.....

211

217

UG991594915UG,

29.49%,

1/27/24

.....

68

70

UG991595594UG,

29.49%,

1/27/24

.....

97

99

UG991595863UG,

29.49%,

1/27/24

.....

216

221

UG991596373UG,

29.49%,

1/27/24

.....

79

82

UG991598172UG,

29.49%,

1/27/24

.....

36

37

UG991599797UG,

29.49%,

1/27/24

.....

115

9

UG991602939UG,

29.49%,

1/27/24

.....

65

66

UG991602960UG,

29.49%,

1/27/24

.....

64

66

UG991604986UG,

29.49%,

1/27/24

.....

44

46

UG991605049UG,

29.49%,

1/27/24

.....

92

75

UG991605352UG,

29.49%,

1/27/24

.....

166

168

UG991605361UG,

29.49%,

1/27/24

.....

45

46

UG991610027UG,

29.49%,

1/27/24

.....

58

60

UG991612751UG,

29.49%,

1/27/24

.....

169

175

UG991616984UG,

29.49%,

1/27/24

.....

3

3

UG991621387UG,

29.49%,

1/27/24

.....

73

11

UG991627130UG,

29.49%,

1/27/24

.....

177

182

UG991630132UG,

29.49%,

1/27/24

.....

54

56

UG991630928UG,

29.49%,

1/27/24

.....

57

58

UG991634012UG,

29.49%,

1/27/24

.....

44

44

UG991637485UG,

29.49%,

1/27/24

.....

37

38

UG991646296UG,

29.49%,

1/27/24

.....

49

49

UG991648501UG,

29.49%,

1/27/24

.....

14

15

UG991649457UG,

29.49%,

1/27/24

.....

74

63

UG991649973UG,

29.49%,

1/27/24

.....

95

15

UG991658001UG,

29.49%,

1/27/24

.....

179

185

UG991662634UG,

29.49%,

1/27/24

.....

144

149

UG991664036UG,

29.49%,

1/27/24

.....

126

129

UG991671543UG,

29.49%,

1/27/24

.....

105

106

UG991674709UG,

29.49%,

1/27/24

.....

15

15

UG991680326UG,

29.49%,

1/27/24

.....

323

333

UG991682200UG,

29.49%,

1/27/24

.....

164

14

UG991683102UG,

29.49%,

1/27/24

.....

79

82

UG991687929UG,

29.49%,

1/27/24

.....

80

82

UG991688029UG,

29.49%,

1/27/24

.....

194

200

UG991691583UG,

29.49%,

1/27/24

.....

111

115

UG991695109UG,

29.49%,

1/27/24

.....

26

26

UG991698229UG,

29.49%,

1/27/24

.....

52

53

UG991701338UG,

29.49%,

1/27/24

.....

17

18

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991704857UG,

29.49%,

1/27/24

.....

$

214

$

220

UG991711124UG,

29.49%,

1/27/24

......

67

69

UG991715767UG,

29.49%,

1/27/24

.....

75

77

UG991720808UG,

29.49%,

1/27/24

.....

166

171

UG991739164UG,

29.49%,

1/27/24

.....

446

459

UG991739656UG,

29.49%,

1/27/24

.....

625

528

UG991741014UG,

29.49%,

1/27/24

.....

223

230

UG991750772UG,

29.49%,

1/27/24

.....

84

86

UG991763575UG,

29.49%,

1/27/24

.....

58

60

UG991766023UG,

29.49%,

1/27/24

.....

48

49

UG991769140UG,

29.49%,

1/27/24

.....

64

65

UG991791557UG,

29.49%,

1/27/24

.....

48

49

UG991792738UG,

29.49%,

1/27/24

.....

44

45

UG991793121UG,

29.49%,

1/27/24

.....

89

91

UG991801330UG,

29.49%,

1/27/24

.....

66

68

UG991802537UG,

29.49%,

1/27/24

.....

25

26

UG991811048UG,

29.49%,

1/27/24

......

60

61

UG991815602UG,

29.49%,

1/27/24

.....

54

55

UG991821267UG,

29.49%,

1/27/24

.....

4

4

UG991831813UG,

29.49%,

1/27/24

.....

66

(2)

UG991617189UG,

16.49%,

1/28/24

.....

58

59

UG991827557UG,

15.47%,

1/29/24

.....

103

103

UG991638160UG,

19.96%,

1/29/24

.....

145

147

UG991851931UG,

15.47%,

1/30/24

.....

179

181

UG991677257UG,

17.49%,

1/30/24

.....

46

47

UG991754447UG,

17.49%,

1/30/24

.....

169

171

UG991633973UG,

19.3%,

1/30/24

......

67

67

UG991695974UG,

21.47%,

1/30/24

.....

134

136

UG991688841UG,

22.47%,

1/30/24

.....

159

160

UG991668213UG,

24.45%,

1/30/24

.....

64

64

UG991631266UG,

16.49%,

1/31/24

.....

412

419

UG991635849UG,

16.49%,

1/31/24

.....

94

94

UG991642956UG,

16.49%,

1/31/24

.....

80

81

UG991677334UG,

16.49%,

1/31/24

.....

263

263

UG991705318UG,

16.49%,

1/31/24

.....

39

40

UG991747537UG,

17.47%,

1/31/24

.....

82

83

UG991637676UG,

17.49%,

1/31/24

.....

61

62

UG991637719UG,

17.49%,

1/31/24

.....

62

62

UG991639187UG,

17.49%,

1/31/24

.....

238

239

UG991642846UG,

17.49%,

1/31/24

.....

53

54

UG991780300UG,

17.49%,

1/31/24

.....

107

107

UG991869281UG,

17.49%,

1/31/24

.....

146

147

UG991661216UG,

19.3%,

1/31/24

......

117

118

UG991686127UG,

19.3%,

1/31/24

......

22

22

UG991687417UG,

19.3%,

1/31/24

......

111

111

UG991628348UG,

19.96%,

1/31/24

.....

131

132

UG991642331UG,

19.96%,

1/31/24

.....

6

6

UG991651260UG,

19.96%,

1/31/24

.....

17

17

UG991672930UG,

19.96%,

1/31/24

.....

45

45

UG991681323UG,

19.96%,

1/31/24

.....

85

87

UG991710638UG,

19.96%,

1/31/24

.....

81

73

UG991713238UG,

19.96%,

1/31/24

.....

26

4

UG991650296UG,

20.47%,

1/31/24

.....

376

377

UG991702014UG,

20.47%,

1/31/24

.....

55

55

UG991696310UG,

21.48%,

1/31/24

.....

31

31

UG991705966UG,

21.48%,

1/31/24

.....

68

68

UG991643834UG,

22.45%,

1/31/24

.....

54

55

UG991707815UG,

22.47%,

1/31/24

.....

21

9

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991710192UG,

22.47%,

1/31/24

.....

$

–

$

–

UG991678923UG,

23.45%,

1/31/24

.....

64

64

UG991726930UG,

15%,

2/01/24

........

59

59

UG991764182UG,

15.47%,

2/01/24

.....

157

158

UG991724946UG,

16.49%,

2/01/24

.....

913

919

UG991807161UG,

16.49%,

2/01/24

.....

45

44

UG991668233UG,

17.49%,

2/01/24

.....

48

48

UG991669770UG,

17.49%,

2/01/24

.....

607

610

UG991677316UG,

17.49%,

2/01/24

.....

63

63

UG991785085UG,

17.49%,

2/01/24

.....

45

45

UG991869528UG,

17.49%,

2/01/24

.....

57

58

UG991678784UG,

14.48%,

2/02/24

.....

–

–

UG991722113UG,

15.49%,

2/02/24

......

228

230

UG991668499UG,

16.49%,

2/02/24

.....

59

59

UG991684166UG,

16.49%,

2/02/24

.....

49

50

UG991682132UG,

17.47%,

2/02/24

.....

92

93

UG991688897UG,

17.49%,

2/02/24

.....

259

260

UG991733262UG,

17.49%,

2/02/24

.....

84

84

UG991734120UG,

17.49%,

2/02/24

.....

97

98

UG991689928UG,

Zero

Cpn,

2/03/24

....

88

6

UG991723826UG,

Zero

Cpn,

2/03/24

....

26

2

UG991891498UG,

Zero

Cpn,

2/03/24

....

76

5

UG991681257UG,

17.49%,

2/03/24

.....

74

74

UG991693730UG,

19.99%,

2/03/24

.....

113

113

UG991695190UG,

22.47%,

2/03/24

.....

185

185

UG991702806UG,

23.45%,

2/03/24

.....

222

221

UG991912006UG,

27.99%,

2/03/24

.....

84

5

UG991680261UG,

28.48%,

2/03/24

.....

138

139

UG991690009UG,

28.48%,

2/03/24

.....

176

179

UG991901928UG,

28.48%,

2/03/24

.....

17

17

UG991705815UG,

29.48%,

2/03/24

.....

202

205

UG991659972UG,

29.49%,

2/03/24

.....

45

44

UG991687586UG,

29.49%,

2/03/24

.....

57

58

UG991713394UG,

29.49%,

2/03/24

.....

112

33

UG991714413UG,

29.49%,

2/03/24

.....

4

4

UG991726593UG,

29.49%,

2/03/24

.....

20

20

UG991733227UG,

29.49%,

2/03/24

.....

633

645

UG991763674UG,

29.49%,

2/03/24

.....

4

4

UG991785226UG,

29.49%,

2/03/24

.....

67

67

UG991795299UG,

29.49%,

2/03/24

.....

118

119

UG991815788UG,

29.49%,

2/03/24

.....

67

68

UG991861447UG,

29.49%,

2/03/24

.....

42

43

UG991909246UG,

29.49%,

2/03/24

.....

142

144

UG991842330UG,

Zero

Cpn,

2/04/24

....

128

9

UG991856429UG,

Zero

Cpn,

2/04/24

....

148

10

UG991844970UG,

15%,

2/04/24

........

598

601

UG991776059UG,

15.47%,

2/04/24

.....

43

43

UG991854905UG,

15.47%,

2/04/24

.....

182

183

UG991686911UG,

18.47%,

2/04/24

......

54

54

UG991685554UG,

18.71%,

2/04/24

.....

58

58

UG991702673UG,

28.48%,

2/04/24

.....

86

87

UG991875683UG,

28.48%,

2/04/24

.....

87

12

UG991711305UG,

29.48%,

2/04/24

......

79

80

UG991702984UG,

29.49%,

2/04/24

.....

53

53

UG991715507UG,

29.49%,

2/04/24

.....

9

9

UG991726705UG,

29.49%,

2/04/24

.....

47

46

UG991728226UG,

29.49%,

2/04/24

.....

993

1,014

UG991741875UG,

29.49%,

2/04/24

.....

170

12

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991756664UG,

29.49%,

2/04/24

.....

$

82

$

84

UG991764301UG,

29.49%,

2/04/24

.....

61

62

UG991788801UG,

29.49%,

2/04/24

.....

86

87

UG991790411UG,

29.49%,

2/04/24

......

10

10

UG991796108UG,

29.49%,

2/04/24

.....

11

11

UG991804405UG,

29.49%,

2/04/24

.....

46

46

UG991813259UG,

29.49%,

2/04/24

.....

342

349

UG991829699UG,

29.49%,

2/04/24

.....

24

25

UG991894355UG,

29.49%,

2/04/24

.....

–

–

UG991909049UG,

29.49%,

2/04/24

.....

41

42

UG991910876UG,

29.49%,

2/04/24

.....

201

202

UG991911528UG,

29.49%,

2/04/24

......

159

161

UG991917056UG,

29.49%,

2/04/24

.....

200

202

UG991695845UG,

Zero

Cpn,

2/05/24

....

(4)

(4)

UG991700243UG,

Zero

Cpn,

2/05/24

....

164

11

UG991716267UG,

Zero

Cpn,

2/05/24

....

77

5

UG991751346UG,

Zero

Cpn,

2/05/24

....

109

8

UG991763866UG,

Zero

Cpn,

2/05/24

....

60

4

UG991779478UG,

Zero

Cpn,

2/05/24

....

280

20

UG991854737UG,

Zero

Cpn,

2/05/24

....

657

46

UG991908519UG,

Zero

Cpn,

2/05/24

....

73

5

UG991711452UG,

19.96%,

2/05/24

......

101

102

UG991693126UG,

19.99%,

2/05/24

.....

63

65

UG991815229UG,

19.99%,

2/05/24

.....

8

8

UG991896939UG,

20.47%,

2/05/24

.....

425

425

UG991827138UG,

21.48%,

2/05/24

.....

51

52

UG991854090UG,

21.48%,

2/05/24

.....

108

108

UG991776899UG,

22.47%,

2/05/24

.....

50

50

UG991698945UG,

23.45%,

2/05/24

.....

127

127

UG991725398UG,

23.45%,

2/05/24

.....

38

38

UG991938019UG,

23.45%,

2/05/24

.....

94

94

UG991866679UG,

26.44%,

2/05/24

.....

49

49

UG991712635UG,

28.48%,

2/05/24

.....

184

187

UG991735405UG,

28.48%,

2/05/24

.....

17

17

UG991738161UG,

28.48%,

2/05/24

.....

129

132

UG991739512UG,

28.48%,

2/05/24

.....

76

77

UG991744316UG,

28.48%,

2/05/24

.....

133

136

UG991751198UG,

28.48%,

2/05/24

......

169

172

UG991766340UG,

28.48%,

2/05/24

.....

313

320

UG991785400UG,

28.48%,

2/05/24

.....

64

65

UG991835745UG,

28.48%,

2/05/24

.....

85

86

UG991852618UG,

28.48%,

2/05/24

.....

17

16

UG991886671UG,

28.48%,

2/05/24

.....

21

21

UG991898117UG,

28.48%,

2/05/24

......

83

84

UG991916369UG,

28.48%,

2/05/24

.....

96

97

UG991805200UG,

29.46%,

2/05/24

.....

60

61

UG991697955UG,

29.48%,

2/05/24

.....

210

214

UG991701867UG,

29.48%,

2/05/24

.....

47

47

UG991714933UG,

29.48%,

2/05/24

.....

67

68

UG991716572UG,

29.48%,

2/05/24

.....

48

49

UG991779730UG,

29.48%,

2/05/24

.....

17

17

UG991781448UG,

29.48%,

2/05/24

.....

65

66

UG991797219UG,

29.48%,

2/05/24

.....

390

397

UG991833863UG,

29.48%,

2/05/24

.....

98

100

UG991838320UG,

29.48%,

2/05/24

.....

37

38

UG991898289UG,

29.48%,

2/05/24

.....

48

48

UG991914626UG,

29.48%,

2/05/24

.....

6

6

UG991681844UG,

29.49%,

2/05/24

.....

540

169

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

87

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991692055UG,

29.49%,

2/05/24

.....

$

181

$

58

UG991693089UG,

29.49%,

2/05/24

.....

65

66

UG991693783UG,

29.49%,

2/05/24

.....

33

34

UG991696162UG,

29.49%,

2/05/24

.....

61

63

UG991696616UG,

29.49%,

2/05/24

.....

154

157

UG991696879UG,

29.49%,

2/05/24

.....

304

310

UG991697144UG,

29.49%,

2/05/24

.....

54

55

UG991701473UG,

29.49%,

2/05/24

.....

160

163

UG991704518UG,

29.49%,

2/05/24

.....

28

28

UG991705344UG,

29.49%,

2/05/24

.....

34

13

UG991705462UG,

29.49%,

2/05/24

.....

139

138

UG991705465UG,

29.49%,

2/05/24

.....

45

46

UG991706846UG,

29.49%,

2/05/24

.....

99

101

UG991711063UG,

29.49%,

2/05/24

......

40

40

UG991711397UG,

29.49%,

2/05/24

......

246

251

UG991712546UG,

29.49%,

2/05/24

.....

51

52

UG991713288UG,

29.49%,

2/05/24

.....

31

31

UG991713498UG,

29.49%,

2/05/24

.....

46

47

UG991716734UG,

29.49%,

2/05/24

.....

41

40

UG991718017UG,

29.49%,

2/05/24

.....

62

63

UG991723083UG,

29.49%,

2/05/24

.....

100

102

UG991723420UG,

29.49%,

2/05/24

.....

49

50

UG991724092UG,

29.49%,

2/05/24

.....

15

15

UG991726322UG,

29.49%,

2/05/24

.....

12

12

UG991729702UG,

29.49%,

2/05/24

.....

–

–

UG991730878UG,

29.49%,

2/05/24

.....

183

185

UG991737989UG,

29.49%,

2/05/24

.....

32

33

UG991739387UG,

29.49%,

2/05/24

.....

465

31

UG991741149UG,

29.49%,

2/05/24

......

5

5

UG991741933UG,

29.49%,

2/05/24

.....

13

13

UG991744990UG,

29.49%,

2/05/24

.....

47

48

UG991752632UG,

29.49%,

2/05/24

.....

66

67

UG991757885UG,

29.49%,

2/05/24

.....

282

284

UG991760937UG,

29.49%,

2/05/24

.....

–

–

UG991773526UG,

29.49%,

2/05/24

.....

197

201

UG991779496UG,

29.49%,

2/05/24

.....

184

186

UG991783484UG,

29.49%,

2/05/24

.....

131

134

UG991785049UG,

29.49%,

2/05/24

.....

64

66

UG991786506UG,

29.49%,

2/05/24

.....

122

125

UG991787648UG,

29.49%,

2/05/24

.....

289

296

UG991788922UG,

29.49%,

2/05/24

.....

270

274

UG991791302UG,

29.49%,

2/05/24

.....

–

–

UG991796027UG,

29.49%,

2/05/24

.....

92

94

UG991799165UG,

29.49%,

2/05/24

.....

52

53

UG991801405UG,

29.49%,

2/05/24

.....

232

236

UG991827164UG,

29.49%,

2/05/24

.....

11

11

UG991827302UG,

29.49%,

2/05/24

.....

62

62

UG991831270UG,

29.49%,

2/05/24

.....

133

43

UG991833796UG,

29.49%,

2/05/24

.....

74

75

UG991847475UG,

29.49%,

2/05/24

.....

4

4

UG991852272UG,

29.49%,

2/05/24

.....

9

9

UG991858745UG,

29.49%,

2/05/24

.....

153

157

UG991858849UG,

29.49%,

2/05/24

.....

8

8

UG991858897UG,

29.49%,

2/05/24

.....

15

15

UG991875810UG,

29.49%,

2/05/24

.....

2

2

UG991879388UG,

29.49%,

2/05/24

.....

44

44

UG991889487UG,

29.49%,

2/05/24

.....

49

49

UG991901626UG,

29.49%,

2/05/24

.....

46

45

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991905879UG,

29.49%,

2/05/24

.....

$

60

$

61

UG991912151UG,

29.49%,

2/05/24

.....

216

(7)

UG991932864UG,

29.49%,

2/05/24

.....

32

32

UG991936900UG,

29.49%,

2/05/24

.....

48

49

UG991698911UG,

Zero

Cpn,

2/06/24

....

112

8

UG991700772UG,

Zero

Cpn,

2/06/24

....

196

14

UG991701271UG,

Zero

Cpn,

2/06/24

....

145

10

UG991703003UG,

Zero

Cpn,

2/06/24

....

37

3

UG991705673UG,

Zero

Cpn,

2/06/24

....

29

2

UG991716848UG,

Zero

Cpn,

2/06/24

....

134

9

UG991756004UG,

Zero

Cpn,

2/06/24

....

167

12

UG991791590UG,

Zero

Cpn,

2/06/24

....

95

7

UG991863263UG,

Zero

Cpn,

2/06/24

....

1,427

99

UG991867936UG,

Zero

Cpn,

2/06/24

....

36

3

UG991877592UG,

Zero

Cpn,

2/06/24

....

655

45

UG991902326UG,

Zero

Cpn,

2/06/24

....

34

2

UG991766242UG,

18.47%,

2/06/24

.....

77

77

UG991894070UG,

19.96%,

2/06/24

.....

127

127

UG991750813UG,

19.99%,

2/06/24

.....

68

22

UG991911467UG,

19.99%,

2/06/24

......

25

25

UG991740030UG,

20.47%,

2/06/24

.....

12

12

UG991718257UG,

20.96%,

2/06/24

.....

83

83

UG991809389UG,

20.96%,

2/06/24

.....

199

199

UG991714545UG,

21.48%,

2/06/24

.....

73

72

UG991747919UG,

21.48%,

2/06/24

.....

49

48

UG991764160UG,

21.48%,

2/06/24

.....

82

82

UG991896635UG,

21.48%,

2/06/24

.....

241

241

UG991713027UG,

23.45%,

2/06/24

.....

37

37

UG991734865UG,

25.45%,

2/06/24

.....

74

74

UG991702392UG,

28.48%,

2/06/24

.....

93

95

UG991730449UG,

28.48%,

2/06/24

.....

98

100

UG991738872UG,

28.48%,

2/06/24

.....

14

14

UG991740055UG,

28.48%,

2/06/24

.....

344

351

UG991741244UG,

28.48%,

2/06/24

.....

106

14

UG991780645UG,

28.48%,

2/06/24

.....

181

185

UG991785489UG,

28.48%,

2/06/24

.....

325

331

UG991803786UG,

28.48%,

2/06/24

.....

68

69

UG991827686UG,

28.48%,

2/06/24

.....

127

129

UG991831344UG,

28.48%,

2/06/24

.....

10

10

UG991853055UG,

28.48%,

2/06/24

.....

115

117

UG991853534UG,

28.48%,

2/06/24

.....

96

98

UG991896815UG,

28.48%,

2/06/24

.....

65

65

UG991704767UG,

29.48%,

2/06/24

.....

206

210

UG991711309UG,

29.48%,

2/06/24

......

12

12

UG991819053UG,

29.48%,

2/06/24

.....

47

48

UG991832143UG,

29.48%,

2/06/24

.....

43

44

UG991835222UG,

29.48%,

2/06/24

.....

391

397

UG991894999UG,

29.48%,

2/06/24

.....

340

344

UG991914678UG,

29.48%,

2/06/24

.....

123

124

UG991928677UG,

29.48%,

2/06/24

.....

97

98

UG991700219UG,

29.49%,

2/06/24

.....

6

6

UG991702835UG,

29.49%,

2/06/24

.....

115

117

UG991703043UG,

29.49%,

2/06/24

.....

34

35

UG991703094UG,

29.49%,

2/06/24

.....

24

24

UG991704372UG,

29.49%,

2/06/24

.....

60

61

UG991706376UG,

29.49%,

2/06/24

.....

91

14

UG991706434UG,

29.49%,

2/06/24

.....

171

175

UG991706794UG,

29.49%,

2/06/24

.....

48

48

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991707306UG,

29.49%,

2/06/24

.....

$

304

$

307

UG991709169UG,

29.49%,

2/06/24

.....

51

51

UG991711265UG,

29.49%,

2/06/24

......

108

110

UG991711897UG,

29.49%,

2/06/24

......

64

2

UG991713731UG,

29.49%,

2/06/24

.....

52

17

UG991717524UG,

29.49%,

2/06/24

.....

129

108

UG991718539UG,

29.49%,

2/06/24

.....

46

46

UG991723140UG,

29.49%,

2/06/24

.....

186

190

UG991725101UG,

29.49%,

2/06/24

.....

13

13

UG991726361UG,

29.49%,

2/06/24

.....

589

149

UG991727080UG,

29.49%,

2/06/24

.....

11

11

UG991730343UG,

29.49%,

2/06/24

.....

137

43

UG991731423UG,

29.49%,

2/06/24

.....

64

65

UG991734953UG,

29.49%,

2/06/24

.....

109

111

UG991735402UG,

29.49%,

2/06/24

.....

48

49

UG991736969UG,

29.49%,

2/06/24

.....

95

97

UG991738288UG,

29.49%,

2/06/24

.....

76

77

UG991738514UG,

29.49%,

2/06/24

.....

102

104

UG991739473UG,

29.49%,

2/06/24

.....

59

61

UG991741909UG,

29.49%,

2/06/24

.....

–

–

UG991750749UG,

29.49%,

2/06/24

.....

169

170

UG991754554UG,

29.49%,

2/06/24

.....

65

65

UG991756713UG,

29.49%,

2/06/24

.....

467

476

UG991760581UG,

29.49%,

2/06/24

.....

211

215

UG991762718UG,

29.49%,

2/06/24

.....

86

88

UG991766178UG,

29.49%,

2/06/24

.....

9

9

UG991766882UG,

29.49%,

2/06/24

.....

110

112

UG991767912UG,

29.49%,

2/06/24

.....

90

92

UG991769363UG,

29.49%,

2/06/24

.....

55

8

UG991775218UG,

29.49%,

2/06/24

.....

128

130

UG991780601UG,

29.49%,

2/06/24

.....

67

68

UG991792802UG,

29.49%,

2/06/24

.....

462

66

UG991797851UG,

29.49%,

2/06/24

.....

17

17

UG991802450UG,

29.49%,

2/06/24

.....

85

86

UG991803366UG,

29.49%,

2/06/24

.....

79

79

UG991804272UG,

29.49%,

2/06/24

.....

36

37

UG991811603UG,

29.49%,

2/06/24

......

52

52

UG991812453UG,

29.49%,

2/06/24

.....

71

72

UG991815771UG,

29.49%,

2/06/24

.....

11

11

UG991824369UG,

29.49%,

2/06/24

.....

46

47

UG991845179UG,

29.49%,

2/06/24

.....

98

100

UG991848888UG,

29.49%,

2/06/24

.....

74

76

UG991854055UG,

29.49%,

2/06/24

.....

489

500

UG991854221UG,

29.49%,

2/06/24

.....

489

500

UG991863148UG,

29.49%,

2/06/24

.....

105

107

UG991864157UG,

29.49%,

2/06/24

.....

113

115

UG991865672UG,

29.49%,

2/06/24

.....

170

173

UG991876619UG,

29.49%,

2/06/24

.....

–

–

UG991879365UG,

29.49%,

2/06/24

.....

115

116

UG991894974UG,

29.49%,

2/06/24

.....

288

291

UG991903049UG,

29.49%,

2/06/24

.....

28

28

UG991903768UG,

29.49%,

2/06/24

.....

993

998

UG991908232UG,

29.49%,

2/06/24

.....

49

49

UG991908563UG,

29.49%,

2/06/24

.....

32

32

UG991913163UG,

29.49%,

2/06/24

.....

62

20

UG991916003UG,

29.49%,

2/06/24

.....

153

155

UG991917005UG,

29.49%,

2/06/24

.....

87

12

UG991919051UG,

29.49%,

2/06/24

.....

12

12

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991925585UG,

29.49%,

2/06/24

.....

$

144

$

146

UG991705242UG,

Zero

Cpn,

2/07/24

....

360

26

UG991717577UG,

Zero

Cpn,

2/07/24

....

53

4

UG991726634UG,

Zero

Cpn,

2/07/24

....

235

17

UG991729154UG,

Zero

Cpn,

2/07/24

....

456

32

UG991756174UG,

Zero

Cpn,

2/07/24

....

265

18

UG991765791UG,

Zero

Cpn,

2/07/24

....

133

9

UG991805714UG,

Zero

Cpn,

2/07/24

....

73

5

UG991849970UG,

Zero

Cpn,

2/07/24

....

58

4

UG991860170UG,

Zero

Cpn,

2/07/24

....

280

19

UG991874547UG,

Zero

Cpn,

2/07/24

....

53

4

UG991895135UG,

Zero

Cpn,

2/07/24

....

101

7

UG991918817UG,

Zero

Cpn,

2/07/24

....

98

7

UG991952896UG,

17.49%,

2/07/24

.....

456

457

UG991726829UG,

18.47%,

2/07/24

.....

102

102

UG991908299UG,

18.47%,

2/07/24

.....

46

46

UG991747268UG,

19.96%,

2/07/24

.....

54

54

UG991746536UG,

20.47%,

2/07/24

.....

172

172

UG991728476UG,

22.45%,

2/07/24

.....

99

98

UG991705944UG,

22.47%,

2/07/24

.....

127

126

UG991731634UG,

23.45%,

2/07/24

.....

40

40

UG991706634UG,

28.48%,

2/07/24

.....

447

(17)

UG991741108UG,

28.48%,

2/07/24

......

443

(17)

UG991758069UG,

28.48%,

2/07/24

.....

212

213

UG991764700UG,

28.48%,

2/07/24

.....

54

55

UG991799124UG,

28.48%,

2/07/24

.....

3

3

UG991803011UG,

28.48%,

2/07/24

......

73

74

UG991815918UG,

28.48%,

2/07/24

.....

85

85

UG991818712UG,

28.48%,

2/07/24

.....

209

211

UG991850407UG,

28.48%,

2/07/24

.....

26

26

UG991860532UG,

28.48%,

2/07/24

.....

73

11

UG991917220UG,

28.48%,

2/07/24

.....

102

103

UG991709711UG,

29.48%,

2/07/24

......

180

183

UG991711547UG,

29.48%,

2/07/24

......

57

58

UG991715983UG,

29.48%,

2/07/24

.....

34

34

UG991728869UG,

29.48%,

2/07/24

.....

56

57

UG991731888UG,

29.48%,

2/07/24

.....

7

7

UG991736572UG,

29.48%,

2/07/24

.....

127

128

UG991760237UG,

29.48%,

2/07/24

.....

154

157

UG991761553UG,

29.48%,

2/07/24

.....

31

32

UG991797551UG,

29.48%,

2/07/24

.....

135

138

UG991803460UG,

29.48%,

2/07/24

.....

138

141

UG991810928UG,

29.48%,

2/07/24

.....

490

498

UG991813154UG,

29.48%,

2/07/24

.....

92

93

UG991705840UG,

29.49%,

2/07/24

.....

118

42

UG991707631UG,

29.49%,

2/07/24

.....

71

72

UG991709347UG,

29.49%,

2/07/24

.....

2

2

UG991711441UG,

29.49%,

2/07/24

......

15

14

UG991711765UG,

29.49%,

2/07/24

......

256

261

UG991712265UG,

29.49%,

2/07/24

.....

83

70

UG991712289UG,

29.49%,

2/07/24

.....

73

75

UG991712442UG,

29.49%,

2/07/24

.....

99

99

UG991712942UG,

29.49%,

2/07/24

.....

72

73

UG991714110UG,

29.49%,

2/07/24

......

89

91

UG991714530UG,

29.49%,

2/07/24

.....

79

81

UG991720763UG,

29.49%,

2/07/24

.....

124

126

UG991721981UG,

29.49%,

2/07/24

.....

74

76

UG991724940UG,

29.49%,

2/07/24

.....

252

78

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

89

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991729259UG,

29.49%,

2/07/24

.....

$

149

$

152

UG991729859UG,

29.49%,

2/07/24

.....

282

18

UG991734419UG,

29.49%,

2/07/24

.....

68

70

UG991736257UG,

29.49%,

2/07/24

.....

71

72

UG991742022UG,

29.49%,

2/07/24

.....

105

107

UG991747730UG,

29.49%,

2/07/24

.....

–

–

UG991758864UG,

29.49%,

2/07/24

.....

35

35

UG991760583UG,

29.49%,

2/07/24

.....

41

41

UG991762212UG,

29.49%,

2/07/24

.....

352

109

UG991767246UG,

29.49%,

2/07/24

.....

80

12

UG991768735UG,

29.49%,

2/07/24

.....

583

586

UG991772407UG,

29.49%,

2/07/24

.....

43

44

UG991780524UG,

29.49%,

2/07/24

.....

90

13

UG991781548UG,

29.49%,

2/07/24

.....

477

486

UG991782258UG,

29.49%,

2/07/24

.....

934

(41)

UG991787046UG,

29.49%,

2/07/24

.....

30

12

UG991794751UG,

29.49%,

2/07/24

.....

135

136

UG991795789UG,

29.49%,

2/07/24

.....

90

92

UG991804746UG,

29.49%,

2/07/24

.....

49

3

UG991814041UG,

29.49%,

2/07/24

.....

14

14

UG991817194UG,

29.49%,

2/07/24

.....

69

5

UG991817987UG,

29.49%,

2/07/24

.....

48

49

UG991822013UG,

29.49%,

2/07/24

.....

84

86

UG991835130UG,

29.49%,

2/07/24

.....

73

75

UG991838231UG,

29.49%,

2/07/24

.....

38

6

UG991838362UG,

29.49%,

2/07/24

.....

75

76

UG991840310UG,

29.49%,

2/07/24

.....

98

98

UG991842041UG,

29.49%,

2/07/24

.....

58

57

UG991844653UG,

29.49%,

2/07/24

.....

271

85

UG991845454UG,

29.49%,

2/07/24

.....

449

33

UG991847296UG,

29.49%,

2/07/24

.....

243

245

UG991852247UG,

29.49%,

2/07/24

.....

394

399

UG991852683UG,

29.49%,

2/07/24

.....

85

87

UG991860524UG,

29.49%,

2/07/24

.....

111

110

UG991881568UG,

29.49%,

2/07/24

.....

151

154

UG991889120UG,

29.49%,

2/07/24

.....

152

154

UG991897062UG,

29.49%,

2/07/24

.....

15

15

UG991920447UG,

29.49%,

2/07/24

.....

45

7

UG991920714UG,

29.49%,

2/07/24

.....

72

72

UG991734323UG,

16.49%,

2/09/24

.....

102

102

UG991557990UG,

29.49%,

3/17/24

.....

35

30

UG991817049UG,

Zero

Cpn,

3/24/24

....

495

35

UG991773707UG,

29.49%,

4/05/24

.....

251

36

UG991556675UG,

29.49%,

4/17/24

.....

58

60

UG991638900UG,

29.47%,

4/18/24

.....

44

37

UG991759455UG,

19.99%,

5/07/24

.....

187

159

UG991552817UG,

29.49%,

5/15/24

.....

115

95

UG991671486UG,

29.49%,

5/16/24

.....

167

142

UG991688837UG,

29.49%,

5/18/24

.....

318

272

UG991693378UG,

23.44%,

6/03/24

.....

97

79

UG991658433UG,

16.49%,

6/30/24

.....

513

409

UG991591790UG,

29.49%,

9/21/24

.....

331

262

UG991802395UG,

29.49%,

10/06/24

....

142

113

UG991732331UG,

28.48%,

10/15/24

....

69

54

UG991762808UG,

29.49%,

11/07/24

.....

87

21

UG991487037UG,

14.98%,

1/13/25

.....

1,169

1,196

UG991499314UG,

16.99%,

1/14/25

.....

278

284

UG991512643UG,

16.99%,

1/15/25

.....

1,575

1,074

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991514741UG,

17.99%,

1/15/25

.....

$

724

$

725

UG991515511UG,

16.99%,

1/16/25

......

138

10

UG991534713UG,

Zero

Cpn,

1/18/25

....

356

25

UG991542221UG,

Zero

Cpn,

1/18/25

....

229

16

UG991543705UG,

Zero

Cpn,

1/18/25

....

21

1

UG991545704UG,

Zero

Cpn,

1/18/25

....

151

10

UG991554221UG,

Zero

Cpn,

1/18/25

....

2,408

166

UG991569157UG,

Zero

Cpn,

1/18/25

....

151

11

UG991575618UG,

Zero

Cpn,

1/18/25

....

53

4

UG991578090UG,

Zero

Cpn,

1/18/25

....

–

–

UG991738583UG,

Zero

Cpn,

1/18/25

....

142

10

UG991771306UG,

Zero

Cpn,

1/18/25

....

351

24

UG991534259UG,

19.99%,

1/18/25

.....

1,787

1,860

UG991540248UG,

19.99%,

1/18/25

.....

28

28

UG991542919UG,

19.99%,

1/18/25

.....

367

386

UG991543349UG,

19.99%,

1/18/25

.....

861

904

UG991596625UG,

19.99%,

1/18/25

.....

213

220

UG991613831UG,

19.99%,

1/18/25

.....

266

280

UG991741235UG,

19.99%,

1/18/25

.....

32

33

UG991535930UG,

27.95%,

1/18/25

.....

1,400

1,466

UG991541397UG,

27.95%,

1/18/25

.....

202

207

UG991537321UG,

28.98%,

1/18/25

.....

81

5

UG991541578UG,

28.98%,

1/18/25

.....

54

56

UG991541730UG,

28.98%,

1/18/25

.....

691

706

UG991547864UG,

28.98%,

1/18/25

.....

539

565

UG991548072UG,

28.98%,

1/18/25

.....

882

644

UG991571658UG,

28.98%,

1/18/25

.....

164

168

UG991586801UG,

28.98%,

1/18/25

.....

175

182

UG991605601UG,

28.98%,

1/18/25

.....

35

35

UG991633024UG,

28.98%,

1/18/25

.....

61

61

UG991643127UG,

28.98%,

1/18/25

.....

138

143

UG991643598UG,

28.98%,

1/18/25

.....

121

124

UG991644065UG,

28.98%,

1/18/25

.....

619

(29)

UG991646974UG,

28.98%,

1/18/25

.....

154

161

UG991662279UG,

28.98%,

1/18/25

.....

91

94

UG991669237UG,

28.98%,

1/18/25

.....

57

59

UG991734107UG,

28.98%,

1/18/25

.....

49

–

UG991767339UG,

28.98%,

1/18/25

.....

13

13

UG991770623UG,

28.98%,

1/18/25

.....

601

624

UG991766780UG,

29.45%,

1/18/25

.....

118

122

UG991670069UG,

29.46%,

1/18/25

.....

429

451

UG991567035UG,

29.48%,

1/18/25

.....

442

467

UG991535459UG,

29.49%,

1/18/25

.....

186

198

UG991535708UG,

29.49%,

1/18/25

.....

87

90

UG991536072UG,

29.49%,

1/18/25

.....

346

348

UG991536876UG,

29.49%,

1/18/25

.....

217

226

UG991536929UG,

29.49%,

1/18/25

.....

1,023

1,059

UG991537021UG,

29.49%,

1/18/25

.....

138

145

UG991540546UG,

29.49%,

1/18/25

.....

80

84

UG991540582UG,

29.49%,

1/18/25

.....

971

985

UG991541260UG,

29.49%,

1/18/25

.....

73

76

UG991542253UG,

29.49%,

1/18/25

.....

193

154

UG991543638UG,

29.49%,

1/18/25

.....

109

113

UG991544799UG,

29.49%,

1/18/25

.....

190

199

UG991545277UG,

29.49%,

1/18/25

.....

286

302

UG991560367UG,

29.49%,

1/18/25

.....

379

395

UG991563278UG,

29.49%,

1/18/25

.....

134

140

UG991576670UG,

29.49%,

1/18/25

.....

–

–

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991577286UG,

29.49%,

1/18/25

.....

$

421

$

421

UG991580004UG,

29.49%,

1/18/25

.....

100

(4)

UG991584589UG,

29.49%,

1/18/25

.....

174

177

UG991608770UG,

29.49%,

1/18/25

.....

167

174

UG991637270UG,

29.49%,

1/18/25

.....

51

53

UG991641889UG,

29.49%,

1/18/25

.....

180

25

UG991692788UG,

29.49%,

1/18/25

.....

46

47

UG991705157UG,

29.49%,

1/18/25

.....

68

68

UG991757664UG,

29.49%,

1/18/25

.....

16

16

UG991765962UG,

29.49%,

1/18/25

.....

68

71

UG991766828UG,

29.49%,

1/18/25

.....

146

(5)

UG991768700UG,

29.49%,

1/18/25

.....

174

179

UG991768927UG,

29.49%,

1/18/25

.....

7

7

UG991613322UG,

29.99%,

1/18/25

.....

195

(5)

UG991567374UG,

Zero

Cpn,

1/19/25

....

65

4

UG991616062UG,

Zero

Cpn,

1/19/25

....

308

22

UG991688411UG,

Zero

Cpn,

1/19/25

....

141

10

UG991698039UG,

Zero

Cpn,

1/19/25

....

197

14

UG991706987UG,

Zero

Cpn,

1/19/25

....

719

51

UG991755764UG,

Zero

Cpn,

1/19/25

....

44

3

UG991766229UG,

Zero

Cpn,

1/19/25

....

178

12

UG991664635UG,

18.97%,

1/19/25

.....

–

–

UG991713909UG,

18.97%,

1/19/25

.....

202

204

UG991547598UG,

19.99%,

1/19/25

.....

130

–

UG991553350UG,

19.99%,

1/19/25

.....

51

53

UG991556775UG,

19.99%,

1/19/25

.....

94

98

UG991593524UG,

19.99%,

1/19/25

.....

67

69

UG991610154UG,

19.99%,

1/19/25

.....

588

75

UG991617879UG,

19.99%,

1/19/25

.....

1,033

1,084

UG991640553UG,

19.99%,

1/19/25

.....

123

124

UG991650417UG,

19.99%,

1/19/25

.....

195

203

UG991720021UG,

19.99%,

1/19/25

.....

987

1,027

UG991729446UG,

19.99%,

1/19/25

.....

48

48

UG991764139UG,

19.99%,

1/19/25

.....

36

36

UG991766471UG,

19.99%,

1/19/25

.....

211

(2)

UG991698886UG,

21.46%,

1/19/25

.....

85

85

UG991690575UG,

25.95%,

1/19/25

.....

410

420

UG991779529UG,

27.99%,

1/19/25

.....

277

288

UG991544331UG,

28.98%,

1/19/25

.....

489

508

UG991547565UG,

28.98%,

1/19/25

.....

123

124

UG991556346UG,

28.98%,

1/19/25

.....

173

182

UG991580652UG,

28.98%,

1/19/25

.....

82

86

UG991652010UG,

28.98%,

1/19/25

.....

259

267

UG991669072UG,

28.98%,

1/19/25

.....

179

186

UG991680250UG,

28.98%,

1/19/25

.....

338

342

UG991684419UG,

28.98%,

1/19/25

.....

619

641

UG991689404UG,

28.98%,

1/19/25

.....

149

156

UG991694508UG,

28.98%,

1/19/25

.....

228

236

UG991698089UG,

28.98%,

1/19/25

.....

133

18

UG991729327UG,

28.98%,

1/19/25

.....

98

102

UG991734745UG,

28.98%,

1/19/25

.....

326

339

UG991738232UG,

28.98%,

1/19/25

.....

13

13

UG991746200UG,

28.98%,

1/19/25

.....

369

384

UG991746728UG,

28.98%,

1/19/25

.....

79

83

UG991747421UG,

28.98%,

1/19/25

.....

41

42

UG991748030UG,

28.98%,

1/19/25

.....

110

114

UG991750526UG,

28.98%,

1/19/25

.....

475

494

UG991760907UG,

28.98%,

1/19/25

.....

260

18

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991770244UG,

28.98%,

1/19/25

.....

$

430

$

445

UG991771984UG,

28.98%,

1/19/25

.....

601

43

UG991778450UG,

28.98%,

1/19/25

.....

40

41

UG991783038UG,

28.98%,

1/19/25

.....

381

395

UG991783620UG,

28.98%,

1/19/25

.....

271

282

UG991784176UG,

28.98%,

1/19/25

.....

245

252

UG991616379UG,

29.45%,

1/19/25

.....

105

105

UG991547157UG,

29.46%,

1/19/25

.....

407

411

UG991550875UG,

29.47%,

1/19/25

.....

1,390

1,467

UG991767247UG,

29.47%,

1/19/25

.....

427

445

UG991551878UG,

29.48%,

1/19/25

.....

442

446

UG991681269UG,

29.48%,

1/19/25

.....

164

11

UG991542015UG,

29.49%,

1/19/25

.....

272

269

UG991545568UG,

29.49%,

1/19/25

.....

1,206

1,254

UG991547832UG,

29.49%,

1/19/25

.....

172

177

UG991556769UG,

29.49%,

1/19/25

.....

118

123

UG991557306UG,

29.49%,

1/19/25

.....

754

53

UG991559196UG,

29.49%,

1/19/25

.....

2,219

2,138

UG991563658UG,

29.49%,

1/19/25

.....

823

861

UG991567620UG,

29.49%,

1/19/25

.....

235

243

UG991569855UG,

29.49%,

1/19/25

.....

24

24

UG991571908UG,

29.49%,

1/19/25

.....

120

125

UG991572593UG,

29.49%,

1/19/25

.....

516

528

UG991575387UG,

29.49%,

1/19/25

.....

175

186

UG991579317UG,

29.49%,

1/19/25

.....

109

112

UG991587154UG,

29.49%,

1/19/25

.....

178

181

UG991587244UG,

29.49%,

1/19/25

.....

146

20

UG991589283UG,

29.49%,

1/19/25

.....

546

575

UG991589395UG,

29.49%,

1/19/25

.....

381

392

UG991590614UG,

29.49%,

1/19/25

.....

195

205

UG991666296UG,

29.49%,

1/19/25

.....

145

150

UG991668851UG,

29.49%,

1/19/25

.....

87

91

UG991676239UG,

29.49%,

1/19/25

.....

757

790

UG991700162UG,

29.49%,

1/19/25

.....

51

51

UG991710813UG,

29.49%,

1/19/25

.....

55

57

UG991719174UG,

29.49%,

1/19/25

.....

1,168

1,219

UG991721350UG,

29.49%,

1/19/25

.....

1,703

1,782

UG991732729UG,

29.49%,

1/19/25

.....

228

232

UG991764318UG,

29.49%,

1/19/25

.....

56

58

UG991767220UG,

29.49%,

1/19/25

.....

17

18

UG991769796UG,

29.49%,

1/19/25

.....

105

109

UG991771466UG,

29.49%,

1/19/25

.....

135

140

UG991772043UG,

29.49%,

1/19/25

.....

76

80

UG991773161UG,

29.49%,

1/19/25

.....

340

353

UG991773734UG,

29.49%,

1/19/25

.....

24

24

UG991782580UG,

29.49%,

1/19/25

.....

82

85

UG991783428UG,

29.49%,

1/19/25

.....

1,640

19

UG991551039UG,

Zero

Cpn,

1/20/25

....

2,241

156

UG991553132UG,

Zero

Cpn,

1/20/25

....

168

11

UG991556119UG,

Zero

Cpn,

1/20/25

....

98

7

UG991557051UG,

Zero

Cpn,

1/20/25

....

191

13

UG991557793UG,

Zero

Cpn,

1/20/25

....

401

28

UG991573625UG,

Zero

Cpn,

1/20/25

....

422

29

UG991581619UG,

Zero

Cpn,

1/20/25

....

91

6

UG991598360UG,

Zero

Cpn,

1/20/25

....

187

13

UG991598583UG,

Zero

Cpn,

1/20/25

....

104

7

UG991619887UG,

Zero

Cpn,

1/20/25

....

163

11

UG991620842UG,

Zero

Cpn,

1/20/25

....

495

34

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

91

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991624810UG,

Zero

Cpn,

1/20/25

....

$

298

$

21

UG991628873UG,

Zero

Cpn,

1/20/25

....

267

18

UG991631946UG,

Zero

Cpn,

1/20/25

....

165

11

UG991654755UG,

Zero

Cpn,

1/20/25

....

231

16

UG991659587UG,

Zero

Cpn,

1/20/25

....

172

12

UG991691908UG,

Zero

Cpn,

1/20/25

....

644

45

UG991700996UG,

Zero

Cpn,

1/20/25

....

306

21

UG991710790UG,

Zero

Cpn,

1/20/25

....

324

22

UG991724668UG,

Zero

Cpn,

1/20/25

....

96

7

UG991731119UG,

Zero

Cpn,

1/20/25

....

2,116

146

UG991787423UG,

14.98%,

1/20/25

.....

311

312

UG991546373UG,

19.99%,

1/20/25

.....

21

21

UG991550110UG,

19.99%,

1/20/25

......

264

278

UG991551168UG,

19.99%,

1/20/25

......

1,537

1,608

UG991553870UG,

19.99%,

1/20/25

.....

15

15

UG991558664UG,

19.99%,

1/20/25

.....

307

319

UG991560098UG,

19.99%,

1/20/25

.....

146

153

UG991563863UG,

19.99%,

1/20/25

.....

271

282

UG991567021UG,

19.99%,

1/20/25

.....

360

378

UG991569516UG,

19.99%,

1/20/25

.....

750

787

UG991575551UG,

19.99%,

1/20/25

.....

890

935

UG991575610UG,

19.99%,

1/20/25

.....

1,967

(4)

UG991575708UG,

19.99%,

1/20/25

.....

134

137

UG991579043UG,

19.99%,

1/20/25

.....

1,407

1,098

UG991579154UG,

19.99%,

1/20/25

.....

133

140

UG991579762UG,

19.99%,

1/20/25

.....

226

237

UG991580041UG,

19.99%,

1/20/25

.....

291

298

UG991580804UG,

19.99%,

1/20/25

.....

8

8

UG991580969UG,

19.99%,

1/20/25

.....

912

951

UG991589726UG,

19.99%,

1/20/25

.....

30

31

UG991591112UG,

19.99%,

1/20/25

......

256

265

UG991601962UG,

19.99%,

1/20/25

.....

874

893

UG991611311UG,

19.99%,

1/20/25

......

24

24

UG991612039UG,

19.99%,

1/20/25

.....

104

106

UG991613122UG,

19.99%,

1/20/25

.....

179

188

UG991615000UG,

19.99%,

1/20/25

.....

360

378

UG991626332UG,

19.99%,

1/20/25

.....

400

420

UG991627626UG,

19.99%,

1/20/25

.....

4

4

UG991635746UG,

19.99%,

1/20/25

.....

240

242

UG991642370UG,

19.99%,

1/20/25

.....

218

229

UG991646361UG,

19.99%,

1/20/25

.....

202

210

UG991648690UG,

19.99%,

1/20/25

.....

89

92

UG991650312UG,

19.99%,

1/20/25

.....

227

234

UG991666023UG,

19.99%,

1/20/25

.....

168

176

UG991676336UG,

19.99%,

1/20/25

.....

108

111

UG991699684UG,

19.99%,

1/20/25

.....

114

118

UG991751909UG,

19.99%,

1/20/25

.....

130

135

UG991756492UG,

19.99%,

1/20/25

.....

27

28

UG991674160UG,

25.95%,

1/20/25

.....

201

203

UG991717340UG,

25.95%,

1/20/25

.....

167

119

UG991545216UG,

26.94%,

1/20/25

.....

50

50

UG991552205UG,

26.94%,

1/20/25

.....

89

(2)

UG991696729UG,

26.94%,

1/20/25

.....

149

148

UG991693406UG,

27.95%,

1/20/25

.....

950

939

UG991552965UG,

27.99%,

1/20/25

.....

151

158

UG991567052UG,

27.99%,

1/20/25

.....

73

76

UG991653855UG,

27.99%,

1/20/25

.....

208

217

UG991682363UG,

27.99%,

1/20/25

.....

1,537

1,605

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991723012UG,

27.99%,

1/20/25

.....

$

352

$

367

UG991544408UG,

28.98%,

1/20/25

.....

92

97

UG991544778UG,

28.98%,

1/20/25

.....

39

40

UG991545880UG,

28.98%,

1/20/25

.....

68

71

UG991545892UG,

28.98%,

1/20/25

.....

56

56

UG991546136UG,

28.98%,

1/20/25

.....

67

68

UG991546636UG,

28.98%,

1/20/25

.....

86

91

UG991547409UG,

28.98%,

1/20/25

.....

75

79

UG991547592UG,

28.98%,

1/20/25

.....

5,159

354

UG991547593UG,

28.98%,

1/20/25

.....

244

256

UG991547777UG,

28.98%,

1/20/25

.....

142

145

UG991552067UG,

28.98%,

1/20/25

.....

46

48

UG991552893UG,

28.98%,

1/20/25

.....

397

415

UG991553649UG,

28.98%,

1/20/25

.....

1,042

1,095

UG991554237UG,

28.98%,

1/20/25

.....

–

–

UG991556261UG,

28.98%,

1/20/25

.....

773

803

UG991556547UG,

28.98%,

1/20/25

.....

124

9

UG991557666UG,

28.98%,

1/20/25

.....

1,039

1,073

UG991557809UG,

28.98%,

1/20/25

.....

90

95

UG991558482UG,

28.98%,

1/20/25

.....

1,371

1,440

UG991558522UG,

28.98%,

1/20/25

.....

139

146

UG991559055UG,

28.98%,

1/20/25

.....

2,830

2,883

UG991559725UG,

28.98%,

1/20/25

.....

590

619

UG991561334UG,

28.98%,

1/20/25

.....

371

388

UG991561686UG,

28.98%,

1/20/25

.....

176

175

UG991562380UG,

28.98%,

1/20/25

.....

173

182

UG991563837UG,

28.98%,

1/20/25

.....

550

577

UG991563880UG,

28.98%,

1/20/25

.....

73

75

UG991564330UG,

28.98%,

1/20/25

.....

100

105

UG991564566UG,

28.98%,

1/20/25

.....

5

5

UG991565562UG,

28.98%,

1/20/25

.....

846

(30)

UG991566285UG,

28.98%,

1/20/25

.....

204

214

UG991568378UG,

28.98%,

1/20/25

.....

302

19

UG991568849UG,

28.98%,

1/20/25

.....

128

135

UG991568936UG,

28.98%,

1/20/25

.....

243

255

UG991569159UG,

28.98%,

1/20/25

.....

32

32

UG991570565UG,

28.98%,

1/20/25

.....

105

110

UG991571433UG,

28.98%,

1/20/25

.....

141

148

UG991572223UG,

28.98%,

1/20/25

.....

970

1,019

UG991572292UG,

28.98%,

1/20/25

.....

45

46

UG991575019UG,

28.98%,

1/20/25

.....

415

437

UG991575102UG,

28.98%,

1/20/25

.....

1,021

1,073

UG991575747UG,

28.98%,

1/20/25

.....

39

39

UG991576855UG,

28.98%,

1/20/25

.....

1,959

2,017

UG991579033UG,

28.98%,

1/20/25

.....

152

159

UG991580751UG,

28.98%,

1/20/25

.....

269

273

UG991581464UG,

28.98%,

1/20/25

.....

544

571

UG991581893UG,

28.98%,

1/20/25

.....

278

291

UG991582316UG,

28.98%,

1/20/25

.....

187

189

UG991583116UG,

28.98%,

1/20/25

......

302

(8)

UG991583574UG,

28.98%,

1/20/25

.....

136

138

UG991584117UG,

28.98%,

1/20/25

......

497

517

UG991586736UG,

28.98%,

1/20/25

.....

92

93

UG991588111UG,

28.98%,

1/20/25

......

113

116

UG991589534UG,

28.98%,

1/20/25

.....

413

434

UG991589805UG,

28.98%,

1/20/25

.....

36

37

UG991590552UG,

28.98%,

1/20/25

.....

313

328

UG991591623UG,

28.98%,

1/20/25

.....

81

84

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991592663UG,

28.98%,

1/20/25

.....

$

125

$

126

UG991593515UG,

28.98%,

1/20/25

.....

335

339

UG991593668UG,

28.98%,

1/20/25

.....

220

(8)

UG991594115UG,

28.98%,

1/20/25

......

741

776

UG991594803UG,

28.98%,

1/20/25

.....

77

77

UG991601320UG,

28.98%,

1/20/25

.....

690

725

UG991602891UG,

28.98%,

1/20/25

.....

84

88

UG991603854UG,

28.98%,

1/20/25

.....

283

297

UG991604545UG,

28.98%,

1/20/25

.....

186

193

UG991604665UG,

28.98%,

1/20/25

.....

163

171

UG991606337UG,

28.98%,

1/20/25

.....

95

95

UG991608131UG,

28.98%,

1/20/25

.....

154

162

UG991608902UG,

28.98%,

1/20/25

.....

690

718

UG991609515UG,

28.98%,

1/20/25

.....

345

362

UG991609600UG,

28.98%,

1/20/25

.....

1,153

958

UG991613998UG,

28.98%,

1/20/25

.....

415

436

UG991616232UG,

28.98%,

1/20/25

.....

116

120

UG991617883UG,

28.98%,

1/20/25

.....

1,032

1,084

UG991621078UG,

28.98%,

1/20/25

.....

174

176

UG991624075UG,

28.98%,

1/20/25

.....

–

–

UG991625260UG,

28.98%,

1/20/25

.....

102

106

UG991628122UG,

28.98%,

1/20/25

.....

84

88

UG991629144UG,

28.98%,

1/20/25

.....

480

504

UG991631399UG,

28.98%,

1/20/25

.....

776

792

UG991632637UG,

28.98%,

1/20/25

.....

23

24

UG991634045UG,

28.98%,

1/20/25

.....

122

128

UG991634258UG,

28.98%,

1/20/25

.....

430

445

UG991636177UG,

28.98%,

1/20/25

.....

24

24

UG991639978UG,

28.98%,

1/20/25

.....

137

143

UG991643294UG,

28.98%,

1/20/25

.....

138

143

UG991644226UG,

28.98%,

1/20/25

.....

14

15

UG991645700UG,

28.98%,

1/20/25

.....

858

879

UG991652664UG,

28.98%,

1/20/25

.....

7

7

UG991652792UG,

28.98%,

1/20/25

.....

50

51

UG991653273UG,

28.98%,

1/20/25

.....

122

126

UG991655177UG,

28.98%,

1/20/25

.....

567

595

UG991655284UG,

28.98%,

1/20/25

.....

53

55

UG991657177UG,

28.98%,

1/20/25

.....

2,320

1,628

UG991657299UG,

28.98%,

1/20/25

.....

2,882

3,015

UG991658226UG,

28.98%,

1/20/25

.....

687

715

UG991661646UG,

28.98%,

1/20/25

.....

298

306

UG991662576UG,

28.98%,

1/20/25

.....

331

344

UG991664351UG,

28.98%,

1/20/25

.....

197

199

UG991665002UG,

28.98%,

1/20/25

.....

865

906

UG991666441UG,

28.98%,

1/20/25

.....

343

360

UG991668194UG,

28.98%,

1/20/25

.....

414

434

UG991672473UG,

28.98%,

1/20/25

.....

228

238

UG991678497UG,

28.98%,

1/20/25

.....

75

79

UG991681420UG,

28.98%,

1/20/25

.....

18

18

UG991683658UG,

28.98%,

1/20/25

.....

49

50

UG991684690UG,

28.98%,

1/20/25

.....

296

209

UG991685455UG,

28.98%,

1/20/25

.....

168

176

UG991686339UG,

28.98%,

1/20/25

.....

166

172

UG991688152UG,

28.98%,

1/20/25

.....

135

142

UG991688819UG,

28.98%,

1/20/25

.....

293

304

UG991691824UG,

28.98%,

1/20/25

.....

103

108

UG991695244UG,

28.98%,

1/20/25

.....

39

40

UG991703498UG,

28.98%,

1/20/25

.....

224

16

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991704987UG,

28.98%,

1/20/25

.....

$

64

$

67

UG991708940UG,

28.98%,

1/20/25

.....

44

45

UG991709725UG,

28.98%,

1/20/25

.....

61

64

UG991711174UG,

28.98%,

1/20/25

......

66

68

UG991715023UG,

28.98%,

1/20/25

.....

105

74

UG991719591UG,

28.98%,

1/20/25

.....

303

313

UG991720648UG,

28.98%,

1/20/25

.....

546

567

UG991727362UG,

28.98%,

1/20/25

.....

162

168

UG991731657UG,

28.98%,

1/20/25

.....

407

423

UG991731747UG,

28.98%,

1/20/25

.....

604

(7)

UG991736469UG,

28.98%,

1/20/25

.....

52

8

UG991737941UG,

28.98%,

1/20/25

.....

61

63

UG991740124UG,

28.98%,

1/20/25

.....

83

86

UG991743913UG,

28.98%,

1/20/25

.....

45

46

UG991745775UG,

28.98%,

1/20/25

.....

112

113

UG991746760UG,

28.98%,

1/20/25

.....

18

18

UG991750085UG,

28.98%,

1/20/25

.....

79

83

UG991752117UG,

28.98%,

1/20/25

......

174

180

UG991760438UG,

28.98%,

1/20/25

.....

73

76

UG991764409UG,

28.98%,

1/20/25

.....

–

–

UG991766308UG,

28.98%,

1/20/25

.....

11

11

UG991772528UG,

28.98%,

1/20/25

.....

183

191

UG991773470UG,

28.98%,

1/20/25

.....

79

82

UG991773598UG,

28.98%,

1/20/25

.....

9

9

UG991773610UG,

28.98%,

1/20/25

.....

1,019

1,058

UG991773912UG,

28.98%,

1/20/25

.....

155

161

UG991775579UG,

28.98%,

1/20/25

.....

136

141

UG991775768UG,

28.98%,

1/20/25

.....

114

79

UG991784171UG,

28.98%,

1/20/25

.....

380

26

UG991544892UG,

29.45%,

1/20/25

.....

661

696

UG991546469UG,

29.45%,

1/20/25

.....

248

261

UG991590390UG,

29.45%,

1/20/25

.....

108

114

UG991658510UG,

29.45%,

1/20/25

.....

24

24

UG991708297UG,

29.45%,

1/20/25

.....

12

12

UG991749201UG,

29.45%,

1/20/25

.....

599

620

UG991760144UG,

29.45%,

1/20/25

.....

16

17

UG991546140UG,

29.46%,

1/20/25

.....

344

357

UG991552999UG,

29.46%,

1/20/25

.....

72

74

UG991554451UG,

29.46%,

1/20/25

.....

553

583

UG991556833UG,

29.46%,

1/20/25

.....

302

311

UG991558641UG,

29.46%,

1/20/25

.....

1,224

170

UG991572725UG,

29.46%,

1/20/25

.....

89

92

UG991588559UG,

29.46%,

1/20/25

.....

48

50

UG991607542UG,

29.46%,

1/20/25

.....

715

751

UG991638849UG,

29.46%,

1/20/25

.....

229

240

UG991649368UG,

29.46%,

1/20/25

.....

58

61

UG991666110UG,

29.46%,

1/20/25

......

86

87

UG991559050UG,

29.47%,

1/20/25

.....

654

689

UG991561124UG,

29.47%,

1/20/25

......

718

725

UG991570910UG,

29.47%,

1/20/25

.....

103

106

UG991584353UG,

29.47%,

1/20/25

.....

220

229

UG991584440UG,

29.47%,

1/20/25

.....

173

178

UG991658968UG,

29.47%,

1/20/25

.....

140

148

UG991544991UG,

29.48%,

1/20/25

.....

247

242

UG991545016UG,

29.48%,

1/20/25

.....

527

557

UG991545229UG,

29.48%,

1/20/25

.....

46

45

UG991546168UG,

29.48%,

1/20/25

.....

197

208

UG991551664UG,

29.48%,

1/20/25

.....

22

22

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

93

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991555928UG,

29.48%,

1/20/25

.....

$

209

$

218

UG991620084UG,

29.48%,

1/20/25

.....

209

16

UG991622988UG,

29.48%,

1/20/25

.....

100

106

UG991674255UG,

29.48%,

1/20/25

.....

802

830

UG991768186UG,

29.48%,

1/20/25

.....

171

172

UG991544466UG,

29.49%,

1/20/25

.....

43

43

UG991544749UG,

29.49%,

1/20/25

.....

588

609

UG991544865UG,

29.49%,

1/20/25

.....

196

199

UG991544945UG,

29.49%,

1/20/25

.....

304

322

UG991545269UG,

29.49%,

1/20/25

.....

1,532

1,612

UG991545817UG,

29.49%,

1/20/25

.....

24

24

UG991546174UG,

29.49%,

1/20/25

.....

1,251

1,308

UG991546669UG,

29.49%,

1/20/25

.....

96

97

UG991547049UG,

29.49%,

1/20/25

.....

135

143

UG991547329UG,

29.49%,

1/20/25

.....

109

80

UG991547440UG,

29.49%,

1/20/25

.....

133

138

UG991547641UG,

29.49%,

1/20/25

.....

83

85

UG991547872UG,

29.49%,

1/20/25

.....

472

491

UG991547930UG,

29.49%,

1/20/25

.....

40

41

UG991548160UG,

29.49%,

1/20/25

.....

16

16

UG991549454UG,

29.49%,

1/20/25

.....

487

513

UG991552397UG,

29.49%,

1/20/25

.....

137

145

UG991553841UG,

29.49%,

1/20/25

.....

104

108

UG991554242UG,

29.49%,

1/20/25

.....

132

140

UG991555165UG,

29.49%,

1/20/25

.....

151

161

UG991555378UG,

29.49%,

1/20/25

.....

114

75

UG991556819UG,

29.49%,

1/20/25

.....

146

150

UG991557327UG,

29.49%,

1/20/25

.....

695

733

UG991557621UG,

29.49%,

1/20/25

.....

842

64

UG991557786UG,

29.49%,

1/20/25

.....

1,247

1,309

UG991559618UG,

29.49%,

1/20/25

.....

27

27

UG991559863UG,

29.49%,

1/20/25

.....

243

256

UG991561412UG,

29.49%,

1/20/25

.....

864

908

UG991561854UG,

29.49%,

1/20/25

.....

32

32

UG991562352UG,

29.49%,

1/20/25

.....

52

54

UG991562399UG,

29.49%,

1/20/25

.....

89

93

UG991562787UG,

29.49%,

1/20/25

.....

1,228

1,264

UG991562985UG,

29.49%,

1/20/25

.....

237

251

UG991563554UG,

29.49%,

1/20/25

.....

35

35

UG991565422UG,

29.49%,

1/20/25

.....

105

(4)

UG991565868UG,

29.49%,

1/20/25

.....

374

379

UG991567540UG,

29.49%,

1/20/25

.....

133

141

UG991568535UG,

29.49%,

1/20/25

.....

561

19

UG991568891UG,

29.49%,

1/20/25

.....

9

9

UG991569010UG,

29.49%,

1/20/25

.....

19

19

UG991569026UG,

29.49%,

1/20/25

.....

35

36

UG991570228UG,

29.49%,

1/20/25

.....

123

129

UG991570854UG,

29.49%,

1/20/25

.....

140

144

UG991571176UG,

29.49%,

1/20/25

......

112

118

UG991572440UG,

29.49%,

1/20/25

.....

83

83

UG991573331UG,

29.49%,

1/20/25

.....

94

71

UG991575006UG,

29.49%,

1/20/25

.....

103

7

UG991575963UG,

29.49%,

1/20/25

.....

122

128

UG991576324UG,

29.49%,

1/20/25

.....

2,126

2,247

UG991577211UG,

29.49%,

1/20/25

......

178

187

UG991577516UG,

29.49%,

1/20/25

.....

138

140

UG991577542UG,

29.49%,

1/20/25

.....

48

50

UG991578455UG,

29.49%,

1/20/25

.....

400

423

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991578944UG,

29.49%,

1/20/25

.....

$

147

$

155

UG991579988UG,

29.49%,

1/20/25

.....

145

155

UG991581013UG,

29.49%,

1/20/25

.....

17

17

UG991581659UG,

29.49%,

1/20/25

.....

693

737

UG991582174UG,

29.49%,

1/20/25

.....

113

117

UG991582980UG,

29.49%,

1/20/25

.....

161

169

UG991583081UG,

29.49%,

1/20/25

.....

104

108

UG991583340UG,

29.49%,

1/20/25

.....

111

117

UG991583430UG,

29.49%,

1/20/25

.....

267

282

UG991583502UG,

29.49%,

1/20/25

.....

16

17

UG991584191UG,

29.49%,

1/20/25

.....

908

954

UG991584247UG,

29.49%,

1/20/25

.....

538

572

UG991584881UG,

29.49%,

1/20/25

.....

141

148

UG991585152UG,

29.49%,

1/20/25

.....

108

75

UG991585812UG,

29.49%,

1/20/25

.....

77

(2)

UG991586560UG,

29.49%,

1/20/25

.....

151

(7)

UG991586964UG,

29.49%,

1/20/25

.....

150

157

UG991587665UG,

29.49%,

1/20/25

.....

66

65

UG991587677UG,

29.49%,

1/20/25

.....

670

682

UG991588325UG,

29.49%,

1/20/25

.....

160

167

UG991590941UG,

29.49%,

1/20/25

.....

22

22

UG991591834UG,

29.49%,

1/20/25

.....

149

157

UG991592214UG,

29.49%,

1/20/25

.....

181

186

UG991592560UG,

29.49%,

1/20/25

.....

174

183

UG991593970UG,

29.49%,

1/20/25

.....

845

889

UG991596754UG,

29.49%,

1/20/25

.....

139

141

UG991596930UG,

29.49%,

1/20/25

.....

103

106

UG991598790UG,

29.49%,

1/20/25

.....

196

199

UG991600631UG,

29.49%,

1/20/25

.....

238

33

UG991601559UG,

29.49%,

1/20/25

.....

346

365

UG991601943UG,

29.49%,

1/20/25

.....

6

6

UG991603035UG,

29.49%,

1/20/25

.....

280

9

UG991605866UG,

29.49%,

1/20/25

.....

306

322

UG991606975UG,

29.49%,

1/20/25

.....

103

106

UG991607008UG,

29.49%,

1/20/25

.....

184

185

UG991610063UG,

29.49%,

1/20/25

.....

415

439

UG991612642UG,

29.49%,

1/20/25

.....

61

4

UG991612971UG,

29.49%,

1/20/25

.....

114

16

UG991614076UG,

29.49%,

1/20/25

.....

895

941

UG991615755UG,

29.49%,

1/20/25

.....

122

128

UG991616553UG,

29.49%,

1/20/25

.....

97

103

UG991617166UG,

29.49%,

1/20/25

.....

375

381

UG991617238UG,

29.49%,

1/20/25

.....

344

363

UG991617328UG,

29.49%,

1/20/25

.....

1,725

1,817

UG991617793UG,

29.49%,

1/20/25

.....

157

165

UG991620217UG,

29.49%,

1/20/25

.....

74

77

UG991621352UG,

29.49%,

1/20/25

.....

305

322

UG991626310UG,

29.49%,

1/20/25

.....

197

200

UG991628720UG,

29.49%,

1/20/25

.....

40

40

UG991629054UG,

29.49%,

1/20/25

.....

126

10

UG991631113UG,

29.49%,

1/20/25

......

140

10

UG991633281UG,

29.49%,

1/20/25

.....

127

134

UG991639454UG,

29.49%,

1/20/25

.....

23

23

UG991644250UG,

29.49%,

1/20/25

.....

52

54

UG991648065UG,

29.49%,

1/20/25

.....

163

172

UG991654619UG,

29.49%,

1/20/25

.....

851

(27)

UG991655092UG,

29.49%,

1/20/25

.....

595

621

UG991655877UG,

29.49%,

1/20/25

.....

89

94

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991656357UG,

29.49%,

1/20/25

.....

$

497

$

516

UG991656434UG,

29.49%,

1/20/25

.....

326

338

UG991657357UG,

29.49%,

1/20/25

.....

1,308

1,390

UG991660718UG,

29.49%,

1/20/25

.....

335

348

UG991663176UG,

29.49%,

1/20/25

.....

27

27

UG991666604UG,

29.49%,

1/20/25

.....

688

723

UG991668949UG,

29.49%,

1/20/25

.....

56

59

UG991670103UG,

29.49%,

1/20/25

.....

690

727

UG991672222UG,

29.49%,

1/20/25

.....

311

324

UG991672277UG,

29.49%,

1/20/25

.....

33

34

UG991676079UG,

29.49%,

1/20/25

.....

281

297

UG991678111UG,

29.49%,

1/20/25

......

391

(12)

UG991679088UG,

29.49%,

1/20/25

.....

382

393

UG991681019UG,

29.49%,

1/20/25

.....

1,022

1,074

UG991682846UG,

29.49%,

1/20/25

.....

136

143

UG991686039UG,

29.49%,

1/20/25

.....

291

(10)

UG991689785UG,

29.49%,

1/20/25

.....

117

102

UG991690090UG,

29.49%,

1/20/25

.....

186

193

UG991692295UG,

29.49%,

1/20/25

.....

57

57

UG991692468UG,

29.49%,

1/20/25

.....

170

176

UG991692717UG,

29.49%,

1/20/25

.....

86

91

UG991693352UG,

29.49%,

1/20/25

.....

40

41

UG991693696UG,

29.49%,

1/20/25

.....

217

223

UG991696161UG,

29.49%,

1/20/25

.....

216

226

UG991702622UG,

29.49%,

1/20/25

.....

94

99

UG991704174UG,

29.49%,

1/20/25

.....

84

87

UG991704331UG,

29.49%,

1/20/25

.....

84

89

UG991704554UG,

29.49%,

1/20/25

.....

115

8

UG991705000UG,

29.49%,

1/20/25

.....

20

4

UG991706369UG,

29.49%,

1/20/25

.....

90

95

UG991706803UG,

29.49%,

1/20/25

.....

51

51

UG991709703UG,

29.49%,

1/20/25

.....

105

109

UG991712356UG,

29.49%,

1/20/25

.....

607

641

UG991714458UG,

29.49%,

1/20/25

.....

243

253

UG991716502UG,

29.49%,

1/20/25

.....

801

833

UG991716698UG,

29.49%,

1/20/25

.....

218

(8)

UG991717405UG,

29.49%,

1/20/25

.....

310

323

UG991718671UG,

29.49%,

1/20/25

.....

205

215

UG991718693UG,

29.49%,

1/20/25

.....

137

142

UG991718755UG,

29.49%,

1/20/25

.....

102

106

UG991724082UG,

29.49%,

1/20/25

.....

116

121

UG991724684UG,

29.49%,

1/20/25

.....

66

69

UG991726589UG,

29.49%,

1/20/25

.....

84

87

UG991729024UG,

29.49%,

1/20/25

.....

146

152

UG991731378UG,

29.49%,

1/20/25

.....

81

85

UG991731411UG,

29.49%,

1/20/25

......

526

556

UG991731675UG,

29.49%,

1/20/25

.....

76

80

UG991733097UG,

29.49%,

1/20/25

.....

83

86

UG991734979UG,

29.49%,

1/20/25

.....

97

100

UG991736419UG,

29.49%,

1/20/25

.....

84

88

UG991737012UG,

29.49%,

1/20/25

.....

163

170

UG991740302UG,

29.49%,

1/20/25

.....

117

122

UG991742409UG,

29.49%,

1/20/25

.....

24

24

UG991742496UG,

29.49%,

1/20/25

.....

81

(2)

UG991744616UG,

29.49%,

1/20/25

.....

48

49

UG991745338UG,

29.49%,

1/20/25

.....

106

110

UG991749746UG,

29.49%,

1/20/25

.....

683

707

UG991753458UG,

29.49%,

1/20/25

.....

162

169

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991758540UG,

29.49%,

1/20/25

.....

$

112

$

116

UG991760132UG,

29.49%,

1/20/25

.....

32

33

UG991766510UG,

29.49%,

1/20/25

.....

86

90

UG991766938UG,

29.49%,

1/20/25

.....

183

190

UG991769449UG,

29.49%,

1/20/25

.....

–

–

UG991771215UG,

29.49%,

1/20/25

.....

145

151

UG991771844UG,

29.49%,

1/20/25

.....

95

99

UG991772146UG,

29.49%,

1/20/25

.....

83

87

UG991772908UG,

29.49%,

1/20/25

.....

545

566

UG991775501UG,

29.49%,

1/20/25

.....

248

256

UG991782254UG,

29.49%,

1/20/25

.....

–

–

UG991783396UG,

29.49%,

1/20/25

.....

340

355

UG991653165UG,

Zero

Cpn,

1/21/25

....

3,665

256

UG991663912UG,

Zero

Cpn,

1/21/25

....

37

2

UG991666720UG,

Zero

Cpn,

1/21/25

....

121

8

UG991670006UG,

Zero

Cpn,

1/21/25

....

85

6

UG991683019UG,

Zero

Cpn,

1/21/25

....

322

22

UG991684294UG,

Zero

Cpn,

1/21/25

....

248

17

UG991695921UG,

Zero

Cpn,

1/21/25

....

805

56

UG991700702UG,

Zero

Cpn,

1/21/25

....

1,497

102

UG991707819UG,

Zero

Cpn,

1/21/25

....

1

–

UG991713287UG,

Zero

Cpn,

1/21/25

....

332

23

UG991719451UG,

Zero

Cpn,

1/21/25

....

330

23

UG991720329UG,

Zero

Cpn,

1/21/25

....

2

–

UG991728532UG,

Zero

Cpn,

1/21/25

....

636

44

UG991731609UG,

Zero

Cpn,

1/21/25

....

96

7

UG991749616UG,

Zero

Cpn,

1/21/25

....

1,992

138

UG991770039UG,

Zero

Cpn,

1/21/25

....

360

25

UG991713284UG,

15.97%,

1/21/25

.....

92

92

UG991655053UG,

17.99%,

1/21/25

.....

5,509

5,641

UG991793260UG,

17.99%,

1/21/25

.....

6,441

6,555

UG991764938UG,

18.97%,

1/21/25

.....

175

178

UG991749978UG,

19.8%,

1/21/25

......

226

229

UG991780817UG,

19.8%,

1/21/25

......

234

237

UG991699882UG,

19.99%,

1/21/25

.....

105

109

UG991716662UG,

19.99%,

1/21/25

.....

270

281

UG991722265UG,

19.99%,

1/21/25

.....

1,039

1,078

UG991757989UG,

19.99%,

1/21/25

.....

150

156

UG991700316UG,

20.46%,

1/21/25

.....

80

81

UG991762170UG,

20.46%,

1/21/25

.....

531

536

UG991697508UG,

21.46%,

1/21/25

.....

47

48

UG991700341UG,

21.46%,

1/21/25

.....

198

195

UG991756734UG,

21.46%,

1/21/25

.....

47

47

UG991739544UG,

21.97%,

1/21/25

.....

368

28

UG991658893UG,

21.98%,

1/21/25

.....

452

459

UG991737499UG,

21.98%,

1/21/25

.....

271

275

UG991673663UG,

22.97%,

1/21/25

.....

664

667

UG991741785UG,

27.99%,

1/21/25

.....

165

171

UG991642567UG,

28.98%,

1/21/25

.....

318

331

UG991662823UG,

28.98%,

1/21/25

.....

234

240

UG991664049UG,

28.98%,

1/21/25

.....

9

9

UG991665576UG,

28.98%,

1/21/25

.....

481

505

UG991665938UG,

28.98%,

1/21/25

.....

212

220

UG991670622UG,

28.98%,

1/21/25

.....

346

357

UG991671300UG,

28.98%,

1/21/25

.....

268

279

UG991675079UG,

28.98%,

1/21/25

.....

615

640

UG991678858UG,

28.98%,

1/21/25

.....

132

138

UG991680977UG,

28.98%,

1/21/25

.....

824

852

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

95

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991681791UG,

28.98%,

1/21/25

.....

$

683

$

717

UG991682680UG,

28.98%,

1/21/25

.....

239

251

UG991686463UG,

28.98%,

1/21/25

.....

468

63

UG991687816UG,

28.98%,

1/21/25

.....

411

432

UG991694207UG,

28.98%,

1/21/25

.....

148

154

UG991694819UG,

28.98%,

1/21/25

.....

625

650

UG991695760UG,

28.98%,

1/21/25

.....

–

–

UG991698062UG,

28.98%,

1/21/25

.....

136

143

UG991700940UG,

28.98%,

1/21/25

.....

96

97

UG991701470UG,

28.98%,

1/21/25

.....

314

327

UG991705041UG,

28.98%,

1/21/25

.....

137

142

UG991705300UG,

28.98%,

1/21/25

.....

379

390

UG991706808UG,

28.98%,

1/21/25

.....

454

455

UG991708246UG,

28.98%,

1/21/25

.....

136

138

UG991715240UG,

28.98%,

1/21/25

.....

121

126

UG991716289UG,

28.98%,

1/21/25

.....

830

864

UG991720924UG,

28.98%,

1/21/25

.....

66

67

UG991725073UG,

28.98%,

1/21/25

.....

93

97

UG991733515UG,

28.98%,

1/21/25

.....

97

101

UG991737585UG,

28.98%,

1/21/25

.....

254

262

UG991740862UG,

28.98%,

1/21/25

.....

170

177

UG991749837UG,

28.98%,

1/21/25

.....

3,097

3,207

UG991761552UG,

28.98%,

1/21/25

.....

83

87

UG991761801UG,

28.98%,

1/21/25

.....

146

151

UG991767899UG,

28.98%,

1/21/25

.....

143

146

UG991784133UG,

28.98%,

1/21/25

.....

436

454

UG991788631UG,

28.98%,

1/21/25

.....

67

20

UG991642900UG,

29.49%,

1/21/25

.....

13

13

UG991664093UG,

29.49%,

1/21/25

.....

545

548

UG991665122UG,

29.49%,

1/21/25

.....

758

796

UG991666036UG,

29.49%,

1/21/25

.....

522

546

UG991669205UG,

29.49%,

1/21/25

.....

139

147

UG991672196UG,

29.49%,

1/21/25

.....

77

82

UG991674869UG,

29.49%,

1/21/25

.....

33

(1)

UG991678184UG,

29.49%,

1/21/25

.....

29

29

UG991678591UG,

29.49%,

1/21/25

.....

147

151

UG991681470UG,

29.49%,

1/21/25

.....

30

30

UG991683560UG,

29.49%,

1/21/25

.....

119

(2)

UG991685142UG,

29.49%,

1/21/25

.....

35

(1)

UG991687042UG,

29.49%,

1/21/25

.....

241

246

UG991688094UG,

29.49%,

1/21/25

.....

928

987

UG991689751UG,

29.49%,

1/21/25

.....

220

232

UG991690832UG,

29.49%,

1/21/25

.....

103

109

UG991691552UG,

29.49%,

1/21/25

.....

140

(5)

UG991691912UG,

29.49%,

1/21/25

.....

186

195

UG991693012UG,

29.49%,

1/21/25

.....

188

189

UG991694190UG,

29.49%,

1/21/25

.....

191

203

UG991699877UG,

29.49%,

1/21/25

.....

198

207

UG991706026UG,

29.49%,

1/21/25

.....

106

108

UG991709042UG,

29.49%,

1/21/25

.....

203

208

UG991710343UG,

29.49%,

1/21/25

.....

451

470

UG991711411UG,

29.49%,

1/21/25

......

34

35

UG991712669UG,

29.49%,

1/21/25

.....

99

101

UG991714196UG,

29.49%,

1/21/25

.....

38

38

UG991716170UG,

29.49%,

1/21/25

.....

49

51

UG991717859UG,

29.49%,

1/21/25

.....

279

290

UG991717914UG,

29.49%,

1/21/25

.....

370

385

UG991718350UG,

29.49%,

1/21/25

.....

205

214

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991720068UG,

29.49%,

1/21/25

.....

$

1,752

$

1,827

UG991721576UG,

29.49%,

1/21/25

.....

54

57

UG991722825UG,

29.49%,

1/21/25

.....

478

497

UG991723176UG,

29.49%,

1/21/25

.....

213

222

UG991731739UG,

29.49%,

1/21/25

.....

192

193

UG991732982UG,

29.49%,

1/21/25

.....

23

23

UG991736128UG,

29.49%,

1/21/25

.....

50

52

UG991738527UG,

29.49%,

1/21/25

.....

64

50

UG991740248UG,

29.49%,

1/21/25

.....

265

19

UG991740528UG,

29.49%,

1/21/25

.....

1,795

1,855

UG991740944UG,

29.49%,

1/21/25

.....

198

27

UG991741010UG,

29.49%,

1/21/25

.....

120

125

UG991751558UG,

29.49%,

1/21/25

.....

2,506

2,607

UG991755790UG,

29.49%,

1/21/25

.....

52

53

UG991757964UG,

29.49%,

1/21/25

.....

220

16

UG991758421UG,

29.49%,

1/21/25

.....

126

131

UG991761177UG,

29.49%,

1/21/25

......

90

94

UG991761241UG,

29.49%,

1/21/25

.....

12

12

UG991765747UG,

29.49%,

1/21/25

.....

43

4

UG991773308UG,

29.49%,

1/21/25

.....

62

63

UG991773655UG,

29.49%,

1/21/25

.....

205

213

UG991774166UG,

29.49%,

1/21/25

.....

53

55

UG991774631UG,

29.49%,

1/21/25

.....

255

268

UG991776264UG,

29.49%,

1/21/25

.....

143

128

UG991777444UG,

29.49%,

1/21/25

.....

97

100

UG991777636UG,

29.49%,

1/21/25

.....

110

116

UG991784986UG,

29.49%,

1/21/25

.....

150

(5)

UG991785876UG,

29.49%,

1/21/25

.....

279

292

UG991634393UG,

Zero

Cpn,

1/22/25

....

2,798

191

UG991653648UG,

Zero

Cpn,

1/22/25

....

57

4

UG991718275UG,

14.98%,

1/22/25

.....

1,273

1,304

UG991737948UG,

14.98%,

1/22/25

.....

390

390

UG991790203UG,

14.98%,

1/22/25

.....

119

121

UG991756518UG,

15%,

1/22/25

........

170

173

UG991690554UG,

15.97%,

1/22/25

.....

1,281

1,308

UG991754215UG,

15.97%,

1/22/25

.....

149

152

UG991775455UG,

16.99%,

1/22/25

.....

898

915

UG991698551UG,

17.99%,

1/22/25

.....

418

428

UG991737115UG,

17.99%,

1/22/25

......

450

457

UG991634646UG,

18.97%,

1/22/25

.....

327

335

UG991687893UG,

18.97%,

1/22/25

.....

559

569

UG991707935UG,

18.97%,

1/22/25

.....

269

274

UG991718040UG,

18.97%,

1/22/25

.....

222

226

UG991685413UG,

19.21%,

1/22/25

.....

138

141

UG991691716UG,

19.21%,

1/22/25

.....

1,630

1,669

UG991719610UG,

19.21%,

1/22/25

.....

1,484

117

UG991789966UG,

19.8%,

1/22/25

......

185

188

UG991643928UG,

19.97%,

1/22/25

.....

102

105

UG991683557UG,

19.99%,

1/22/25

.....

1,966

2,070

UG991756568UG,

19.99%,

1/22/25

.....

173

181

UG991788027UG,

19.99%,

1/22/25

.....

185

192

UG991798308UG,

19.99%,

1/22/25

.....

9

9

UG991662768UG,

20.97%,

1/22/25

.....

88

87

UG991725447UG,

20.97%,

1/22/25

.....

11

11

UG991656133UG,

21.46%,

1/22/25

.....

325

333

UG991695092UG,

21.46%,

1/22/25

.....

213

215

UG991754484UG,

21.46%,

1/22/25

.....

117

119

UG991637211UG,

21.97%,

1/22/25

......

148

151

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991678173UG,

21.98%,

1/22/25

.....

$

80

$

80

UG991801534UG,

22.97%,

1/22/25

.....

99

101

UG991672498UG,

23.95%,

1/22/25

.....

112

114

UG991676913UG,

23.95%,

1/22/25

.....

1,489

114

UG991629369UG,

26.94%,

1/22/25

.....

81

83

UG991652030UG,

26.94%,

1/22/25

.....

118

121

UG991664671UG,

26.94%,

1/22/25

.....

106

108

UG991632809UG,

28.98%,

1/22/25

.....

103

107

UG991654067UG,

28.98%,

1/22/25

.....

788

780

UG991655233UG,

28.98%,

1/22/25

.....

189

199

UG991655297UG,

28.98%,

1/22/25

.....

82

83

UG991657460UG,

28.98%,

1/22/25

.....

344

362

UG991662231UG,

28.98%,

1/22/25

.....

89

93

UG991662724UG,

28.98%,

1/22/25

.....

11

11

UG991678788UG,

28.98%,

1/22/25

.....

57

57

UG991683610UG,

28.98%,

1/22/25

.....

99

104

UG991694072UG,

28.98%,

1/22/25

.....

570

600

UG991698065UG,

28.98%,

1/22/25

.....

353

26

UG991711153UG,

28.98%,

1/22/25

......

25

26

UG991722351UG,

28.98%,

1/22/25

.....

683

718

UG991723958UG,

28.98%,

1/22/25

.....

5

5

UG991783308UG,

28.98%,

1/22/25

.....

130

114

UG991802680UG,

28.98%,

1/22/25

.....

144

(9)

UG991628550UG,

29.49%,

1/22/25

.....

64

67

UG991634061UG,

29.49%,

1/22/25

.....

211

15

UG991636661UG,

29.49%,

1/22/25

.....

2,066

161

UG991642874UG,

29.49%,

1/22/25

.....

80

(3)

UG991644808UG,

29.49%,

1/22/25

.....

52

54

UG991646259UG,

29.49%,

1/22/25

.....

490

519

UG991650009UG,

29.49%,

1/22/25

.....

7

7

UG991658593UG,

29.49%,

1/22/25

.....

140

10

UG991663564UG,

29.49%,

1/22/25

.....

290

292

UG991672394UG,

29.49%,

1/22/25

.....

71

75

UG991679933UG,

29.49%,

1/22/25

.....

4

4

UG991682094UG,

29.49%,

1/22/25

.....

547

582

UG991688247UG,

29.49%,

1/22/25

.....

103

109

UG991710294UG,

29.49%,

1/22/25

.....

68

(2)

UG991713706UG,

29.49%,

1/22/25

.....

97

101

UG991718290UG,

29.49%,

1/22/25

.....

134

140

UG991736296UG,

29.49%,

1/22/25

.....

93

97

UG991746532UG,

29.49%,

1/22/25

.....

1,004

1,049

UG991747337UG,

29.49%,

1/22/25

.....

13

13

UG991749787UG,

29.49%,

1/22/25

.....

241

249

UG991751645UG,

29.49%,

1/22/25

.....

79

81

UG991758788UG,

29.49%,

1/22/25

.....

222

232

UG991765455UG,

29.49%,

1/22/25

.....

237

247

UG991779420UG,

29.49%,

1/22/25

.....

227

232

UG991787661UG,

29.49%,

1/22/25

.....

10

10

UG991792431UG,

29.49%,

1/22/25

.....

724

742

UG991794136UG,

29.49%,

1/22/25

.....

9

9

UG991802876UG,

29.49%,

1/22/25

.....

340

356

UG991632479UG,

Zero

Cpn,

1/23/25

....

664

46

UG991635693UG,

Zero

Cpn,

1/23/25

....

170

12

UG991639095UG,

Zero

Cpn,

1/23/25

....

185

13

UG991640768UG,

Zero

Cpn,

1/23/25

....

291

20

UG991649488UG,

Zero

Cpn,

1/23/25

....

234

16

UG991662149UG,

Zero

Cpn,

1/23/25

....

348

24

UG991665228UG,

Zero

Cpn,

1/23/25

....

328

23

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991665357UG,

Zero

Cpn,

1/23/25

....

$

1,776

$

122

UG991693141UG,

Zero

Cpn,

1/23/25

....

62

4

UG991720395UG,

Zero

Cpn,

1/23/25

....

466

32

UG991636779UG,

14.98%,

1/23/25

.....

100

102

UG991673294UG,

14.98%,

1/23/25

.....

3,626

3,640

UG991685301UG,

14.98%,

1/23/25

.....

895

917

UG991810697UG,

14.98%,

1/23/25

.....

950

967

UG991669666UG,

15.97%,

1/23/25

.....

165

169

UG991720270UG,

16.99%,

1/23/25

.....

554

566

UG991806652UG,

17.99%,

1/23/25

.....

260

264

UG991713762UG,

18.21%,

1/23/25

.....

115

116

UG991629464UG,

18.97%,

1/23/25

.....

66

66

UG991637138UG,

18.97%,

1/23/25

.....

4

5

UG991652563UG,

18.97%,

1/23/25

.....

1,205

1,234

UG991654901UG,

18.97%,

1/23/25

.....

6,533

6,691

UG991732049UG,

18.97%,

1/23/25

.....

1,065

1,083

UG991655628UG,

19.21%,

1/23/25

.....

315

322

UG991700455UG,

19.21%,

1/23/25

.....

283

281

UG991801084UG,

19.21%,

1/23/25

.....

643

652

UG991658233UG,

19.8%,

1/23/25

......

656

672

UG991772614UG,

19.8%,

1/23/25

......

2,345

2,384

UG991632705UG,

19.99%,

1/23/25

.....

637

646

UG991655150UG,

19.99%,

1/23/25

.....

374

384

UG991671970UG,

19.99%,

1/23/25

.....

236

248

UG991679224UG,

19.99%,

1/23/25

.....

161

165

UG991811950UG,

19.99%,

1/23/25

......

97

98

UG991665786UG,

20.46%,

1/23/25

.....

194

198

UG991701667UG,

20.46%,

1/23/25

.....

127

130

UG991722899UG,

20.46%,

1/23/25

.....

196

201

UG991705904UG,

20.98%,

1/23/25

.....

65

66

UG991677495UG,

21.46%,

1/23/25

.....

118

121

UG991700214UG,

21.46%,

1/23/25

.....

213

218

UG991710233UG,

21.46%,

1/23/25

.....

428

438

UG991745840UG,

21.46%,

1/23/25

.....

417

423

UG991666562UG,

21.97%,

1/23/25

.....

265

272

UG991641726UG,

21.98%,

1/23/25

.....

732

736

UG991759715UG,

21.98%,

1/23/25

.....

397

403

UG991786528UG,

21.98%,

1/23/25

.....

117

118

UG991784495UG,

25.98%,

1/23/25

.....

128

133

UG991693097UG,

26.94%,

1/23/25

.....

368

373

UG991629548UG,

28.98%,

1/23/25

.....

334

(11)

UG991636074UG,

28.98%,

1/23/25

.....

571

598

UG991636843UG,

28.98%,

1/23/25

.....

333

344

UG991644625UG,

28.98%,

1/23/25

.....

139

140

UG991644719UG,

28.98%,

1/23/25

.....

635

661

UG991656845UG,

28.98%,

1/23/25

.....

152

10

UG991665490UG,

28.98%,

1/23/25

.....

344

362

UG991667605UG,

28.98%,

1/23/25

.....

462

486

UG991671248UG,

28.98%,

1/23/25

.....

131

137

UG991671791UG,

28.98%,

1/23/25

.....

210

213

UG991675411UG,

28.98%,

1/23/25

......

587

608

UG991679075UG,

28.98%,

1/23/25

.....

31

32

UG991693174UG,

28.98%,

1/23/25

.....

170

179

UG991693333UG,

28.98%,

1/23/25

.....

196

204

UG991695544UG,

28.98%,

1/23/25

.....

167

175

UG991700691UG,

28.98%,

1/23/25

.....

28

28

UG991714226UG,

28.98%,

1/23/25

.....

55

56

UG991719766UG,

28.98%,

1/23/25

.....

342

360

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

97

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991720618UG,

28.98%,

1/23/25

.....

$

85

$

90

UG991734227UG,

28.98%,

1/23/25

.....

200

200

UG991740876UG,

28.98%,

1/23/25

.....

3,011

3,111

UG991743895UG,

28.98%,

1/23/25

.....

212

220

UG991755793UG,

28.98%,

1/23/25

.....

155

158

UG991764530UG,

28.98%,

1/23/25

.....

69

68

UG991768584UG,

28.98%,

1/23/25

.....

25

23

UG991772947UG,

28.98%,

1/23/25

.....

674

701

UG991774877UG,

28.98%,

1/23/25

.....

129

135

UG991779183UG,

28.98%,

1/23/25

.....

312

313

UG991782023UG,

28.98%,

1/23/25

.....

334

347

UG991782508UG,

28.98%,

1/23/25

.....

204

212

UG991785616UG,

28.98%,

1/23/25

.....

21

22

UG991807448UG,

28.98%,

1/23/25

.....

251

261

UG991787803UG,

29.46%,

1/23/25

.....

55

55

UG991635514UG,

29.49%,

1/23/25

.....

2,062

2,134

UG991640354UG,

29.49%,

1/23/25

.....

283

299

UG991640844UG,

29.49%,

1/23/25

.....

49

51

UG991643437UG,

29.49%,

1/23/25

.....

120

126

UG991648051UG,

29.49%,

1/23/25

.....

349

370

UG991650076UG,

29.49%,

1/23/25

.....

41

42

UG991651099UG,

29.49%,

1/23/25

.....

98

102

UG991655169UG,

29.49%,

1/23/25

.....

138

147

UG991659040UG,

29.49%,

1/23/25

.....

40

41

UG991661550UG,

29.49%,

1/23/25

.....

69

71

UG991662010UG,

29.49%,

1/23/25

.....

170

178

UG991662703UG,

29.49%,

1/23/25

.....

31

31

UG991664752UG,

29.49%,

1/23/25

.....

1,027

1,071

UG991664791UG,

29.49%,

1/23/25

.....

158

166

UG991669828UG,

29.49%,

1/23/25

.....

210

221

UG991670618UG,

29.49%,

1/23/25

.....

118

121

UG991672381UG,

29.49%,

1/23/25

.....

420

436

UG991672472UG,

29.49%,

1/23/25

.....

126

133

UG991674428UG,

29.49%,

1/23/25

.....

959

1,012

UG991678185UG,

29.49%,

1/23/25

.....

67

71

UG991678811UG,

29.49%,

1/23/25

......

430

453

UG991682804UG,

29.49%,

1/23/25

.....

–

–

UG991684319UG,

29.49%,

1/23/25

.....

59

62

UG991685294UG,

29.49%,

1/23/25

.....

110

110

UG991685999UG,

29.49%,

1/23/25

.....

40

41

UG991688415UG,

29.49%,

1/23/25

.....

363

376

UG991688858UG,

29.49%,

1/23/25

.....

131

135

UG991694241UG,

29.49%,

1/23/25

.....

99

102

UG991705948UG,

29.49%,

1/23/25

.....

69

73

UG991710464UG,

29.49%,

1/23/25

.....

100

104

UG991727898UG,

29.49%,

1/23/25

.....

121

10

UG991731138UG,

29.49%,

1/23/25

......

26

26

UG991740952UG,

29.49%,

1/23/25

.....

150

157

UG991758368UG,

29.49%,

1/23/25

.....

296

307

UG991759014UG,

29.49%,

1/23/25

.....

106

110

UG991762640UG,

29.49%,

1/23/25

.....

115

119

UG991762816UG,

29.49%,

1/23/25

.....

90

94

UG991763398UG,

29.49%,

1/23/25

.....

88

92

UG991764778UG,

29.49%,

1/23/25

.....

114

119

UG991764948UG,

29.49%,

1/23/25

.....

38

39

UG991768574UG,

29.49%,

1/23/25

.....

8

8

UG991781870UG,

29.49%,

1/23/25

.....

253

262

UG991782329UG,

29.49%,

1/23/25

.....

117

(4)

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991791018UG,

29.49%,

1/23/25

.....

$

26

$

26

UG991792329UG,

29.49%,

1/23/25

.....

258

270

UG991792684UG,

29.49%,

1/23/25

.....

703

104

UG991795103UG,

29.49%,

1/23/25

.....

36

37

UG991798958UG,

29.49%,

1/23/25

.....

413

419

UG991816343UG,

29.49%,

1/23/25

.....

114

119

UG991817291UG,

29.49%,

1/23/25

.....

291

(21)

UG991585851UG,

Zero

Cpn,

1/24/25

....

269

19

UG991638528UG,

Zero

Cpn,

1/24/25

....

381

27

UG991658417UG,

Zero

Cpn,

1/24/25

....

120

8

UG991688160UG,

Zero

Cpn,

1/24/25

....

2,418

165

UG991691604UG,

Zero

Cpn,

1/24/25

....

405

28

UG991734778UG,

Zero

Cpn,

1/24/25

....

115

8

UG991768368UG,

Zero

Cpn,

1/24/25

....

70

5

UG991801295UG,

Zero

Cpn,

1/24/25

....

804

56

UG991806077UG,

Zero

Cpn,

1/24/25

....

104

7

UG991755553UG,

14.98%,

1/24/25

.....

246

250

UG991648853UG,

15%,

1/24/25

........

3,143

3,161

UG991800979UG,

15.97%,

1/24/25

.....

4,466

4,549

UG991636992UG,

16.99%,

1/24/25

.....

46

46

UG991708759UG,

17.99%,

1/24/25

.....

1,453

1,488

UG991746840UG,

17.99%,

1/24/25

.....

1,037

1,053

UG991799064UG,

17.99%,

1/24/25

.....

779

506

UG991699954UG,

18.97%,

1/24/25

.....

90

92

UG991702242UG,

18.97%,

1/24/25

.....

26

26

UG991708811UG,

18.97%,

1/24/25

......

631

638

UG991704768UG,

19.21%,

1/24/25

.....

580

387

UG991656757UG,

19.46%,

1/24/25

.....

2,750

2,735

UG991632438UG,

19.8%,

1/24/25

......

1,221

920

UG991697824UG,

19.8%,

1/24/25

......

7

7

UG991576025UG,

19.99%,

1/24/25

.....

139

11

UG991598140UG,

19.99%,

1/24/25

.....

72

74

UG991608248UG,

19.99%,

1/24/25

.....

53

55

UG991629457UG,

19.99%,

1/24/25

.....

432

450

UG991642292UG,

19.99%,

1/24/25

.....

135

141

UG991650113UG,

19.99%,

1/24/25

......

1,918

155

UG991651074UG,

19.99%,

1/24/25

.....

10

10

UG991653352UG,

19.99%,

1/24/25

.....

106

112

UG991799920UG,

19.99%,

1/24/25

.....

1,383

1,439

UG991805172UG,

19.99%,

1/24/25

.....

75

78

UG991805637UG,

19.99%,

1/24/25

.....

171

178

UG991807354UG,

19.99%,

1/24/25

.....

62

63

UG991813869UG,

19.99%,

1/24/25

.....

54

55

UG991722377UG,

20.46%,

1/24/25

.....

1,968

2,016

UG991745755UG,

20.46%,

1/24/25

.....

312

318

UG991786433UG,

20.46%,

1/24/25

.....

127

87

UG991631506UG,

21.46%,

1/24/25

.....

225

230

UG991722423UG,

21.98%,

1/24/25

.....

2,975

3,049

UG991748280UG,

21.98%,

1/24/25

.....

67

68

UG991706518UG,

24.95%,

1/24/25

.....

903

925

UG991780248UG,

27.95%,

1/24/25

.....

71

74

UG991680442UG,

27.99%,

1/24/25

.....

21

2

UG991575802UG,

28.98%,

1/24/25

.....

560

564

UG991577230UG,

28.98%,

1/24/25

.....

138

146

UG991577662UG,

28.98%,

1/24/25

.....

175

180

UG991578656UG,

28.98%,

1/24/25

.....

680

700

UG991586355UG,

28.98%,

1/24/25

.....

18

18

UG991595786UG,

28.98%,

1/24/25

.....

57

58

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991628863UG,

28.98%,

1/24/25

.....

$

606

$

636

UG991634826UG,

28.98%,

1/24/25

.....

550

577

UG991639159UG,

28.98%,

1/24/25

.....

77

80

UG991640485UG,

28.98%,

1/24/25

.....

1,035

1,079

UG991645339UG,

28.98%,

1/24/25

.....

386

398

UG991651901UG,

28.98%,

1/24/25

.....

568

597

UG991659856UG,

28.98%,

1/24/25

.....

100

105

UG991664144UG,

28.98%,

1/24/25

.....

27

27

UG991665878UG,

28.98%,

1/24/25

.....

303

319

UG991667154UG,

28.98%,

1/24/25

.....

347

351

UG991670648UG,

28.98%,

1/24/25

.....

82

85

UG991673929UG,

28.98%,

1/24/25

.....

275

289

UG991681258UG,

28.98%,

1/24/25

.....

930

963

UG991685641UG,

28.98%,

1/24/25

.....

258

264

UG991689399UG,

28.98%,

1/24/25

.....

118

123

UG991692103UG,

28.98%,

1/24/25

.....

412

433

UG991713017UG,

28.98%,

1/24/25

.....

152

160

UG991724136UG,

28.98%,

1/24/25

.....

109

114

UG991725698UG,

28.98%,

1/24/25

.....

229

236

UG991733516UG,

28.98%,

1/24/25

.....

278

290

UG991754851UG,

28.98%,

1/24/25

.....

87

90

UG991762575UG,

28.98%,

1/24/25

.....

546

568

UG991780591UG,

28.98%,

1/24/25

.....

164

162

UG991781585UG,

28.98%,

1/24/25

.....

48

50

UG991781826UG,

28.98%,

1/24/25

.....

362

369

UG991783742UG,

28.98%,

1/24/25

.....

658

683

UG991785319UG,

28.98%,

1/24/25

.....

453

471

UG991789793UG,

28.98%,

1/24/25

.....

931

971

UG991789906UG,

28.98%,

1/24/25

.....

170

177

UG991791199UG,

28.98%,

1/24/25

......

180

186

UG991791520UG,

28.98%,

1/24/25

.....

68

71

UG991808380UG,

28.98%,

1/24/25

.....

101

106

UG991814864UG,

28.98%,

1/24/25

.....

49

51

UG991576301UG,

29.49%,

1/24/25

.....

2,014

2,127

UG991579123UG,

29.49%,

1/24/25

.....

157

166

UG991580987UG,

29.49%,

1/24/25

.....

669

701

UG991581435UG,

29.49%,

1/24/25

.....

251

19

UG991589214UG,

29.49%,

1/24/25

.....

574

602

UG991598092UG,

29.49%,

1/24/25

.....

113

118

UG991598173UG,

29.49%,

1/24/25

.....

297

312

UG991623495UG,

29.49%,

1/24/25

.....

42

36

UG991633359UG,

29.49%,

1/24/25

.....

536

560

UG991635775UG,

29.49%,

1/24/25

.....

225

237

UG991637080UG,

29.49%,

1/24/25

.....

92

98

UG991638944UG,

29.49%,

1/24/25

.....

15

15

UG991645022UG,

29.49%,

1/24/25

.....

84

89

UG991646526UG,

29.49%,

1/24/25

.....

523

543

UG991648884UG,

29.49%,

1/24/25

.....

102

105

UG991650579UG,

29.49%,

1/24/25

.....

437

465

UG991654006UG,

29.49%,

1/24/25

.....

117

122

UG991658664UG,

29.49%,

1/24/25

.....

152

160

UG991658973UG,

29.49%,

1/24/25

.....

289

306

UG991660665UG,

29.49%,

1/24/25

.....

354

356

UG991662002UG,

29.49%,

1/24/25

.....

409

431

UG991670699UG,

29.49%,

1/24/25

.....

29

29

UG991671992UG,

29.49%,

1/24/25

.....

615

650

UG991679445UG,

29.49%,

1/24/25

.....

106

112

UG991680577UG,

29.49%,

1/24/25

.....

28

5

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991684181UG,

29.49%,

1/24/25

.....

$

592

$

625

UG991685612UG,

29.49%,

1/24/25

.....

52

52

UG991692536UG,

29.49%,

1/24/25

.....

263

278

UG991694080UG,

29.49%,

1/24/25

.....

60

63

UG991697044UG,

29.49%,

1/24/25

.....

215

228

UG991700205UG,

29.49%,

1/24/25

.....

325

339

UG991709442UG,

29.49%,

1/24/25

.....

146

155

UG991714607UG,

29.49%,

1/24/25

.....

232

228

UG991714756UG,

29.49%,

1/24/25

.....

43

45

UG991714762UG,

29.49%,

1/24/25

.....

93

98

UG991715066UG,

29.49%,

1/24/25

.....

99

100

UG991723894UG,

29.49%,

1/24/25

.....

229

241

UG991736234UG,

29.49%,

1/24/25

.....

279

282

UG991736519UG,

29.49%,

1/24/25

.....

131

136

UG991738330UG,

29.49%,

1/24/25

.....

84

83

UG991741387UG,

29.49%,

1/24/25

.....

170

177

UG991742865UG,

29.49%,

1/24/25

.....

488

510

UG991746950UG,

29.49%,

1/24/25

.....

154

161

UG991758058UG,

29.49%,

1/24/25

.....

675

702

UG991774946UG,

29.49%,

1/24/25

.....

684

712

UG991776695UG,

29.49%,

1/24/25

.....

129

135

UG991781667UG,

29.49%,

1/24/25

.....

71

74

UG991782230UG,

29.49%,

1/24/25

.....

121

17

UG991784434UG,

29.49%,

1/24/25

.....

15

15

UG991799040UG,

29.49%,

1/24/25

.....

156

163

UG991807220UG,

29.49%,

1/24/25

.....

29

30

UG991818233UG,

29.49%,

1/24/25

.....

104

2

UG991823070UG,

29.49%,

1/24/25

.....

760

788

UG991586398UG,

Zero

Cpn,

1/25/25

....

2,263

152

UG991639145UG,

Zero

Cpn,

1/25/25

....

188

13

UG991667459UG,

Zero

Cpn,

1/25/25

....

–

–

UG991674166UG,

Zero

Cpn,

1/25/25

....

428

29

UG991730145UG,

Zero

Cpn,

1/25/25

....

884

63

UG991733405UG,

Zero

Cpn,

1/25/25

....

126

9

UG991779723UG,

Zero

Cpn,

1/25/25

....

58

4

UG991783420UG,

Zero

Cpn,

1/25/25

....

111

8

UG991822276UG,

Zero

Cpn,

1/25/25

....

210

15

UG991722200UG,

14.98%,

1/25/25

.....

255

261

UG991685938UG,

15.97%,

1/25/25

.....

103

105

UG991691336UG,

15.97%,

1/25/25

.....

11,920

12,212

UG991719427UG,

15.97%,

1/25/25

.....

240

246

UG991706579UG,

16.99%,

1/25/25

.....

76

77

UG991708991UG,

17.99%,

1/25/25

.....

803

809

UG991730945UG,

17.99%,

1/25/25

.....

10

10

UG991658411UG,

18.97%,

1/25/25

......

579

591

UG991749481UG,

18.97%,

1/25/25

.....

508

517

UG991639650UG,

19.21%,

1/25/25

.....

2,146

2,138

UG991667139UG,

19.21%,

1/25/25

.....

319

327

UG991690379UG,

19.21%,

1/25/25

.....

254

256

UG991783060UG,

19.21%,

1/25/25

.....

325

330

UG991811906UG,

19.46%,

1/25/25

......

111

113

UG991596563UG,

19.99%,

1/25/25

.....

209

218

UG991598409UG,

19.99%,

1/25/25

.....

615

648

UG991639253UG,

19.99%,

1/25/25

.....

45

46

UG991647962UG,

19.99%,

1/25/25

.....

232

242

UG991655538UG,

19.99%,

1/25/25

.....

244

248

UG991671306UG,

19.99%,

1/25/25

.....

101

106

UG991751611UG,

19.99%,

1/25/25

......

141

146

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

99

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991754276UG,

19.99%,

1/25/25

.....

$

278

$

289

UG991810011UG,

19.99%,

1/25/25

......

521

543

UG991647666UG,

20.46%,

1/25/25

.....

5,288

5,383

UG991701511UG,

20.46%,

1/25/25

......

1,038

1,054

UG991735068UG,

20.97%,

1/25/25

.....

353

358

UG991659246UG,

21.46%,

1/25/25

.....

102

103

UG991693560UG,

21.46%,

1/25/25

.....

205

206

UG991697266UG,

21.46%,

1/25/25

.....

224

160

UG991702030UG,

21.46%,

1/25/25

.....

1,459

1,494

UG991699663UG,

21.98%,

1/25/25

.....

117

9

UG991721907UG,

21.98%,

1/25/25

.....

794

813

UG991781998UG,

21.98%,

1/25/25

.....

136

138

UG991643275UG,

22.97%,

1/25/25

.....

1,570

1,609

UG991728109UG,

22.97%,

1/25/25

.....

9

9

UG991696083UG,

23.95%,

1/25/25

.....

367

376

UG991589474UG,

27.99%,

1/25/25

.....

209

210

UG991676736UG,

27.99%,

1/25/25

.....

53

55

UG991824491UG,

27.99%,

1/25/25

.....

1,306

1,362

UG991585948UG,

28.98%,

1/25/25

.....

816

848

UG991588444UG,

28.98%,

1/25/25

.....

206

216

UG991591061UG,

28.98%,

1/25/25

.....

38

40

UG991597262UG,

28.98%,

1/25/25

.....

266

(15)

UG991629093UG,

28.98%,

1/25/25

.....

86

86

UG991630315UG,

28.98%,

1/25/25

.....

32

32

UG991632477UG,

28.98%,

1/25/25

.....

102

106

UG991636211UG,

28.98%,

1/25/25

......

789

782

UG991645264UG,

28.98%,

1/25/25

.....

110

116

UG991646347UG,

28.98%,

1/25/25

.....

380

52

UG991652825UG,

28.98%,

1/25/25

.....

34

30

UG991654157UG,

28.98%,

1/25/25

.....

62

64

UG991655910UG,

28.98%,

1/25/25

.....

139

143

UG991662696UG,

28.98%,

1/25/25

.....

50

41

UG991663409UG,

28.98%,

1/25/25

.....

4

4

UG991664838UG,

28.98%,

1/25/25

.....

103

109

UG991665672UG,

28.98%,

1/25/25

.....

678

702

UG991666507UG,

28.98%,

1/25/25

.....

162

170

UG991681316UG,

28.98%,

1/25/25

.....

4

4

UG991684431UG,

28.98%,

1/25/25

.....

291

306

UG991687378UG,

28.98%,

1/25/25

.....

156

162

UG991700250UG,

28.98%,

1/25/25

.....

265

276

UG991708850UG,

28.98%,

1/25/25

.....

223

225

UG991711013UG,

28.98%,

1/25/25

......

265

268

UG991711440UG,

28.98%,

1/25/25

......

50

52

UG991713337UG,

28.98%,

1/25/25

.....

26

27

UG991717265UG,

28.98%,

1/25/25

.....

86

87

UG991739770UG,

28.98%,

1/25/25

.....

91

92

UG991751144UG,

28.98%,

1/25/25

......

222

230

UG991759069UG,

28.98%,

1/25/25

.....

182

17

UG991762497UG,

28.98%,

1/25/25

.....

69

72

UG991764057UG,

28.98%,

1/25/25

.....

52

53

UG991767844UG,

28.98%,

1/25/25

.....

116

121

UG991782171UG,

28.98%,

1/25/25

.....

16

16

UG991782809UG,

28.98%,

1/25/25

.....

196

204

UG991783323UG,

28.98%,

1/25/25

.....

408

(13)

UG991789094UG,

28.98%,

1/25/25

.....

102

106

UG991790856UG,

28.98%,

1/25/25

.....

630

656

UG991801847UG,

28.98%,

1/25/25

.....

139

144

UG991804347UG,

28.98%,

1/25/25

.....

60

61

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991804771UG,

28.98%,

1/25/25

.....

$

391

$

404

UG991813711UG,

28.98%,

1/25/25

......

1,004

1,044

UG991816486UG,

28.98%,

1/25/25

.....

293

305

UG991826324UG,

28.98%,

1/25/25

.....

49

49

UG991832332UG,

28.98%,

1/25/25

.....

169

176

UG991583030UG,

29.49%,

1/25/25

.....

489

503

UG991583154UG,

29.49%,

1/25/25

.....

509

538

UG991583347UG,

29.49%,

1/25/25

.....

181

193

UG991584343UG,

29.49%,

1/25/25

.....

1,580

1,657

UG991584718UG,

29.49%,

1/25/25

.....

1,032

1,076

UG991586667UG,

29.49%,

1/25/25

.....

161

168

UG991586992UG,

29.49%,

1/25/25

.....

82

87

UG991588166UG,

29.49%,

1/25/25

.....

245

259

UG991588873UG,

29.49%,

1/25/25

.....

308

321

UG991591360UG,

29.49%,

1/25/25

.....

551

581

UG991592156UG,

29.49%,

1/25/25

.....

81

82

UG991592411UG,

29.49%,

1/25/25

......

2

2

UG991595877UG,

29.49%,

1/25/25

.....

158

166

UG991595953UG,

29.49%,

1/25/25

.....

691

729

UG991597092UG,

29.49%,

1/25/25

.....

154

159

UG991598369UG,

29.49%,

1/25/25

.....

151

158

UG991604309UG,

29.49%,

1/25/25

.....

85

89

UG991611906UG,

29.49%,

1/25/25

......

302

318

UG991617012UG,

29.49%,

1/25/25

.....

223

236

UG991625116UG,

29.49%,

1/25/25

......

808

853

UG991634734UG,

29.49%,

1/25/25

.....

91

96

UG991637663UG,

29.49%,

1/25/25

.....

66

(2)

UG991638246UG,

29.49%,

1/25/25

.....

130

(3)

UG991638937UG,

29.49%,

1/25/25

.....

46

47

UG991639720UG,

29.49%,

1/25/25

.....

932

970

UG991640216UG,

29.49%,

1/25/25

.....

541

550

UG991640235UG,

29.49%,

1/25/25

.....

2,186

2,266

UG991640515UG,

29.49%,

1/25/25

.....

18

18

UG991641385UG,

29.49%,

1/25/25

.....

864

122

UG991641968UG,

29.49%,

1/25/25

.....

128

136

UG991642393UG,

29.49%,

1/25/25

.....

32

1

UG991642788UG,

29.49%,

1/25/25

.....

99

105

UG991643136UG,

29.49%,

1/25/25

.....

343

340

UG991645432UG,

29.49%,

1/25/25

.....

81

86

UG991647792UG,

29.49%,

1/25/25

.....

89

94

UG991655935UG,

29.49%,

1/25/25

.....

910

127

UG991656796UG,

29.49%,

1/25/25

.....

367

376

UG991659437UG,

29.49%,

1/25/25

.....

115

121

UG991660574UG,

29.49%,

1/25/25

.....

44

(1)

UG991663552UG,

29.49%,

1/25/25

.....

141

150

UG991670639UG,

29.49%,

1/25/25

.....

442

460

UG991670995UG,

29.49%,

1/25/25

.....

118

125

UG991676449UG,

29.49%,

1/25/25

.....

371

52

UG991679229UG,

29.49%,

1/25/25

.....

100

105

UG991679419UG,

29.49%,

1/25/25

.....

411

432

UG991681203UG,

29.49%,

1/25/25

.....

887

18

UG991684401UG,

29.49%,

1/25/25

.....

24

24

UG991684610UG,

29.49%,

1/25/25

.....

212

(13)

UG991686520UG,

29.49%,

1/25/25

.....

341

359

UG991693307UG,

29.49%,

1/25/25

.....

228

32

UG991695356UG,

29.49%,

1/25/25

.....

86

15

UG991697889UG,

29.49%,

1/25/25

.....

7

7

UG991699956UG,

29.49%,

1/25/25

.....

95

100

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991703545UG,

29.49%,

1/25/25

.....

$

228

$

235

UG991705543UG,

29.49%,

1/25/25

.....

–

–

UG991706527UG,

29.49%,

1/25/25

.....

18

18

UG991714470UG,

29.49%,

1/25/25

.....

315

328

UG991716801UG,

29.49%,

1/25/25

.....

116

119

UG991717980UG,

29.49%,

1/25/25

.....

16

16

UG991718230UG,

29.49%,

1/25/25

.....

22

–

UG991719114UG,

29.49%,

1/25/25

......

18

18

UG991721073UG,

29.49%,

1/25/25

.....

243

257

UG991722230UG,

29.49%,

1/25/25

.....

30

30

UG991727305UG,

29.49%,

1/25/25

.....

686

723

UG991727344UG,

29.49%,

1/25/25

.....

92

92

UG991729230UG,

29.49%,

1/25/25

.....

435

437

UG991730401UG,

29.49%,

1/25/25

.....

41

43

UG991732943UG,

29.49%,

1/25/25

.....

143

149

UG991733186UG,

29.49%,

1/25/25

.....

458

63

UG991734934UG,

29.49%,

1/25/25

.....

161

163

UG991737501UG,

29.49%,

1/25/25

.....

173

182

UG991742587UG,

29.49%,

1/25/25

.....

48

49

UG991742823UG,

29.49%,

1/25/25

.....

253

261

UG991750890UG,

29.49%,

1/25/25

.....

185

194

UG991756609UG,

29.49%,

1/25/25

.....

485

509

UG991758553UG,

29.49%,

1/25/25

.....

156

164

UG991759900UG,

29.49%,

1/25/25

.....

229

(7)

UG991762455UG,

29.49%,

1/25/25

.....

1,213

1,265

UG991768411UG,

29.49%,

1/25/25

......

1

1

UG991773006UG,

29.49%,

1/25/25

.....

392

404

UG991777926UG,

29.49%,

1/25/25

.....

85

89

UG991781861UG,

29.49%,

1/25/25

.....

611

639

UG991783087UG,

29.49%,

1/25/25

.....

311

325

UG991783815UG,

29.49%,

1/25/25

.....

146

21

UG991787734UG,

29.49%,

1/25/25

.....

476

66

UG991788573UG,

29.49%,

1/25/25

.....

183

26

UG991789248UG,

29.49%,

1/25/25

.....

128

132

UG991789795UG,

29.49%,

1/25/25

.....

284

285

UG991790746UG,

29.49%,

1/25/25

.....

103

14

UG991798150UG,

29.49%,

1/25/25

.....

591

589

UG991798152UG,

29.49%,

1/25/25

.....

27

28

UG991803714UG,

29.49%,

1/25/25

.....

129

135

UG991809008UG,

29.49%,

1/25/25

.....

4

4

UG991812847UG,

29.49%,

1/25/25

.....

49

51

UG991813221UG,

29.49%,

1/25/25

.....

122

124

UG991814046UG,

29.49%,

1/25/25

.....

4

4

UG991819908UG,

29.49%,

1/25/25

.....

141

146

UG991592192UG,

Zero

Cpn,

1/26/25

....

188

13

UG991629418UG,

Zero

Cpn,

1/26/25

....

808

56

UG991634009UG,

Zero

Cpn,

1/26/25

....

126

9

UG991656180UG,

Zero

Cpn,

1/26/25

....

249

17

UG991659414UG,

Zero

Cpn,

1/26/25

....

112

8

UG991679458UG,

Zero

Cpn,

1/26/25

....

257

18

UG991702578UG,

Zero

Cpn,

1/26/25

....

32

2

UG991710670UG,

Zero

Cpn,

1/26/25

....

510

35

UG991747643UG,

Zero

Cpn,

1/26/25

....

101

7

UG991749224UG,

Zero

Cpn,

1/26/25

....

103

7

UG991750713UG,

Zero

Cpn,

1/26/25

....

59

4

UG991836743UG,

Zero

Cpn,

1/26/25

....

88

6

UG991705574UG,

14.98%,

1/26/25

.....

498

510

UG991588990UG,

16.99%,

1/26/25

.....

1,503

1,535

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991631242UG,

17.99%,

1/26/25

.....

$

428

$

438

UG991635395UG,

17.99%,

1/26/25

.....

520

532

UG991806807UG,

17.99%,

1/26/25

.....

408

416

UG991630337UG,

18.97%,

1/26/25

.....

95

–

UG991639126UG,

18.97%,

1/26/25

.....

129

131

UG991792817UG,

18.97%,

1/26/25

.....

735

747

UG991693301UG,

19.8%,

1/26/25

......

159

163

UG991623713UG,

19.99%,

1/26/25

.....

470

477

UG991664112UG,

19.99%,

1/26/25

......

697

725

UG991684874UG,

19.99%,

1/26/25

.....

90

92

UG991687274UG,

19.99%,

1/26/25

.....

198

206

UG991725855UG,

19.99%,

1/26/25

.....

224

229

UG991726295UG,

19.99%,

1/26/25

.....

207

208

UG991747371UG,

19.99%,

1/26/25

.....

198

208

UG991753153UG,

19.99%,

1/26/25

.....

41

42

UG991815429UG,

19.99%,

1/26/25

.....

718

744

UG991818136UG,

19.99%,

1/26/25

.....

129

135

UG991722451UG,

20.46%,

1/26/25

.....

624

639

UG991691649UG,

20.97%,

1/26/25

.....

495

495

UG991689234UG,

21.46%,

1/26/25

.....

156

160

UG991683377UG,

21.97%,

1/26/25

.....

161

164

UG991690970UG,

21.98%,

1/26/25

.....

993

1,018

UG991718023UG,

22.97%,

1/26/25

.....

308

309

UG991792398UG,

22.97%,

1/26/25

.....

128

130

UG991661911UG,

23.95%,

1/26/25

......

587

588

UG991719060UG,

23.95%,

1/26/25

.....

2,338

2,396

UG991662693UG,

24.95%,

1/26/25

.....

62

5

UG991655277UG,

25.95%,

1/26/25

.....

162

23

UG991702170UG,

26.94%,

1/26/25

.....

166

162

UG991637426UG,

27.99%,

1/26/25

.....

16

16

UG991644445UG,

27.99%,

1/26/25

.....

92

97

UG991665705UG,

27.99%,

1/26/25

.....

113

119

UG991589081UG,

28.98%,

1/26/25

.....

251

266

UG991592909UG,

28.98%,

1/26/25

.....

116

118

UG991593236UG,

28.98%,

1/26/25

.....

239

247

UG991593526UG,

28.98%,

1/26/25

.....

214

225

UG991593781UG,

28.98%,

1/26/25

.....

139

(6)

UG991594391UG,

28.98%,

1/26/25

.....

179

189

UG991602284UG,

28.98%,

1/26/25

.....

1,447

1,489

UG991604950UG,

28.98%,

1/26/25

.....

106

111

UG991611008UG,

28.98%,

1/26/25

......

538

72

UG991611456UG,

28.98%,

1/26/25

......

19

19

UG991618996UG,

28.98%,

1/26/25

.....

–

–

UG991629035UG,

28.98%,

1/26/25

.....

172

181

UG991634636UG,

28.98%,

1/26/25

.....

362

381

UG991636455UG,

28.98%,

1/26/25

.....

79

60

UG991638710UG,

28.98%,

1/26/25

.....

184

187

UG991638977UG,

28.98%,

1/26/25

.....

234

243

UG991641894UG,

28.98%,

1/26/25

.....

118

123

UG991653899UG,

28.98%,

1/26/25

.....

92

97

UG991658925UG,

28.98%,

1/26/25

.....

104

107

UG991661348UG,

28.98%,

1/26/25

.....

996

1,047

UG991661921UG,

28.98%,

1/26/25

.....

69

69

UG991662390UG,

28.98%,

1/26/25

.....

161

168

UG991664416UG,

28.98%,

1/26/25

.....

269

278

UG991668688UG,

28.98%,

1/26/25

.....

461

485

UG991678461UG,

28.98%,

1/26/25

.....

136

141

UG991685049UG,

28.98%,

1/26/25

.....

69

72

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

101

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991688671UG,

28.98%,

1/26/25

.....

$

199

$

207

UG991698131UG,

28.98%,

1/26/25

.....

342

346

UG991701435UG,

28.98%,

1/26/25

.....

229

241

UG991703821UG,

28.98%,

1/26/25

.....

170

179

UG991711212UG,

28.98%,

1/26/25

......

68

71

UG991743995UG,

28.98%,

1/26/25

.....

174

181

UG991745922UG,

28.98%,

1/26/25

.....

79

80

UG991753802UG,

28.98%,

1/26/25

.....

120

123

UG991759756UG,

28.98%,

1/26/25

.....

63

65

UG991764630UG,

28.98%,

1/26/25

.....

50

52

UG991781688UG,

28.98%,

1/26/25

.....

2

2

UG991788301UG,

28.98%,

1/26/25

.....

236

245

UG991788973UG,

28.98%,

1/26/25

.....

347

361

UG991804080UG,

28.98%,

1/26/25

.....

91

95

UG991808600UG,

28.98%,

1/26/25

.....

155

157

UG991808749UG,

28.98%,

1/26/25

.....

25

25

UG991818761UG,

28.98%,

1/26/25

.....

109

113

UG991820446UG,

28.98%,

1/26/25

.....

107

112

UG991826236UG,

28.98%,

1/26/25

.....

562

585

UG991828591UG,

28.98%,

1/26/25

.....

5

5

UG991831863UG,

28.98%,

1/26/25

.....

144

145

UG991834362UG,

28.98%,

1/26/25

.....

295

307

UG991834597UG,

28.98%,

1/26/25

.....

2,952

3,075

UG991712881UG,

29.46%,

1/26/25

.....

534

563

UG991589080UG,

29.49%,

1/26/25

.....

271

279

UG991589676UG,

29.49%,

1/26/25

.....

815

858

UG991589741UG,

29.49%,

1/26/25

.....

73

76

UG991589757UG,

29.49%,

1/26/25

.....

256

21

UG991589763UG,

29.49%,

1/26/25

.....

154

162

UG991591418UG,

29.49%,

1/26/25

.....

354

24

UG991594647UG,

29.49%,

1/26/25

.....

116

8

UG991598816UG,

29.49%,

1/26/25

.....

156

14

UG991606181UG,

29.49%,

1/26/25

.....

241

257

UG991612147UG,

29.49%,

1/26/25

.....

89

95

UG991613744UG,

29.49%,

1/26/25

.....

168

175

UG991614201UG,

29.49%,

1/26/25

.....

8

8

UG991616010UG,

29.49%,

1/26/25

.....

1,328

(43)

UG991616526UG,

29.49%,

1/26/25

.....

166

176

UG991616810UG,

29.49%,

1/26/25

.....

364

379

UG991622618UG,

29.49%,

1/26/25

.....

153

159

UG991630176UG,

29.49%,

1/26/25

.....

63

14

UG991635627UG,

29.49%,

1/26/25

.....

190

(6)

UG991637203UG,

29.49%,

1/26/25

.....

186

198

UG991637588UG,

29.49%,

1/26/25

.....

327

330

UG991637756UG,

29.49%,

1/26/25

.....

1,122

1,127

UG991638709UG,

29.49%,

1/26/25

.....

144

152

UG991640409UG,

29.49%,

1/26/25

.....

105

110

UG991640808UG,

29.49%,

1/26/25

.....

345

362

UG991641553UG,

29.49%,

1/26/25

.....

127

134

UG991645315UG,

29.49%,

1/26/25

.....

80

83

UG991645424UG,

29.49%,

1/26/25

.....

127

134

UG991647827UG,

29.49%,

1/26/25

.....

135

138

UG991656366UG,

29.49%,

1/26/25

.....

345

48

UG991657417UG,

29.49%,

1/26/25

.....

1,975

2,012

UG991662234UG,

29.49%,

1/26/25

.....

112

119

UG991663167UG,

29.49%,

1/26/25

.....

7

7

UG991663623UG,

29.49%,

1/26/25

.....

119

127

UG991664371UG,

29.49%,

1/26/25

.....

318

328

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991668328UG,

29.49%,

1/26/25

.....

$

102

$

108

UG991670459UG,

29.49%,

1/26/25

.....

363

384

UG991673737UG,

29.49%,

1/26/25

.....

2,320

2,396

UG991674552UG,

29.49%,

1/26/25

.....

196

208

UG991677158UG,

29.49%,

1/26/25

.....

192

205

UG991680335UG,

29.49%,

1/26/25

.....

1,271

1,324

UG991682957UG,

29.49%,

1/26/25

.....

897

949

UG991686193UG,

29.49%,

1/26/25

.....

41

42

UG991686518UG,

29.49%,

1/26/25

.....

199

209

UG991686882UG,

29.49%,

1/26/25

.....

249

260

UG991688387UG,

29.49%,

1/26/25

.....

797

839

UG991695946UG,

29.49%,

1/26/25

.....

442

461

UG991698577UG,

29.49%,

1/26/25

.....

378

395

UG991710350UG,

29.49%,

1/26/25

.....

49

50

UG991711068UG,

29.49%,

1/26/25

......

35

35

UG991714720UG,

29.49%,

1/26/25

.....

500

522

UG991722546UG,

29.49%,

1/26/25

.....

27

–

UG991727832UG,

29.49%,

1/26/25

.....

234

247

UG991731015UG,

29.49%,

1/26/25

.....

65

68

UG991742808UG,

29.49%,

1/26/25

.....

388

393

UG991744262UG,

29.49%,

1/26/25

.....

41

42

UG991756106UG,

29.49%,

1/26/25

.....

161

170

UG991772896UG,

29.49%,

1/26/25

.....

2,047

2,137

UG991775324UG,

29.49%,

1/26/25

.....

511

532

UG991779497UG,

29.49%,

1/26/25

.....

265

277

UG991782801UG,

29.49%,

1/26/25

.....

1,979

2,062

UG991783902UG,

29.49%,

1/26/25

.....

257

20

UG991784518UG,

29.49%,

1/26/25

.....

754

786

UG991791204UG,

29.49%,

1/26/25

.....

8

8

UG991793797UG,

29.49%,

1/26/25

.....

201

209

UG991801746UG,

29.49%,

1/26/25

.....

225

231

UG991806530UG,

29.49%,

1/26/25

.....

135

141

UG991820442UG,

29.49%,

1/26/25

.....

113

118

UG991826343UG,

29.49%,

1/26/25

.....

492

513

UG991827132UG,

29.49%,

1/26/25

.....

103

108

UG991829394UG,

29.49%,

1/26/25

.....

565

572

UG991832099UG,

29.49%,

1/26/25

.....

43

44

UG991835725UG,

29.49%,

1/26/25

.....

1,156

1,206

UG991835985UG,

29.49%,

1/26/25

.....

1,088

1,139

UG991596423UG,

Zero

Cpn,

1/27/25

....

1,060

72

UG991602782UG,

Zero

Cpn,

1/27/25

....

71

5

UG991602892UG,

Zero

Cpn,

1/27/25

....

74

5

UG991603339UG,

Zero

Cpn,

1/27/25

....

138

9

UG991606996UG,

Zero

Cpn,

1/27/25

....

68

5

UG991615454UG,

Zero

Cpn,

1/27/25

....

261

18

UG991618978UG,

Zero

Cpn,

1/27/25

....

226

15

UG991621900UG,

Zero

Cpn,

1/27/25

....

291

20

UG991645642UG,

Zero

Cpn,

1/27/25

....

117

8

UG991664680UG,

Zero

Cpn,

1/27/25

....

402

28

UG991733750UG,

Zero

Cpn,

1/27/25

....

8

1

UG991740591UG,

Zero

Cpn,

1/27/25

....

795

56

UG991740609UG,

Zero

Cpn,

1/27/25

....

212

14

UG991749414UG,

Zero

Cpn,

1/27/25

....

154

11

UG991807085UG,

Zero

Cpn,

1/27/25

....

51

3

UG991812993UG,

Zero

Cpn,

1/27/25

....

421

29

UG991649409UG,

14.98%,

1/27/25

.....

–

–

UG991681455UG,

15%,

1/27/25

........

532

542

UG991594447UG,

16.99%,

1/27/25

.....

2,992

3,037

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991653768UG,

16.99%,

1/27/25

.....

$

136

$

136

UG991594369UG,

19.99%,

1/27/25

.....

110

112

UG991603461UG,

19.99%,

1/27/25

.....

546

575

UG991604490UG,

19.99%,

1/27/25

.....

125

132

UG991604987UG,

19.99%,

1/27/25

.....

262

276

UG991606626UG,

19.99%,

1/27/25

.....

273

287

UG991606748UG,

19.99%,

1/27/25

.....

188

196

UG991610646UG,

19.99%,

1/27/25

.....

136

143

UG991613039UG,

19.99%,

1/27/25

.....

584

613

UG991613609UG,

19.99%,

1/27/25

.....

96

98

UG991616276UG,

19.99%,

1/27/25

.....

43

43

UG991622510UG,

19.99%,

1/27/25

.....

25

25

UG991634123UG,

19.99%,

1/27/25

.....

1,473

960

UG991639649UG,

19.99%,

1/27/25

.....

1,567

1,611

UG991653534UG,

19.99%,

1/27/25

.....

137

145

UG991656462UG,

19.99%,

1/27/25

.....

111

117

UG991665857UG,

19.99%,

1/27/25

.....

160

169

UG991670504UG,

19.99%,

1/27/25

.....

66

68

UG991679362UG,

19.99%,

1/27/25

.....

49

51

UG991734391UG,

19.99%,

1/27/25

.....

31

–

UG991740576UG,

19.99%,

1/27/25

.....

365

48

UG991742004UG,

19.99%,

1/27/25

.....

56

58

UG991787817UG,

19.99%,

1/27/25

.....

104

108

UG991611207UG,

22.95%,

1/27/25

......

705

9

UG991666052UG,

25.98%,

1/27/25

.....

100

65

UG991593388UG,

27.99%,

1/27/25

.....

62

65

UG991598032UG,

27.99%,

1/27/25

.....

175

184

UG991629247UG,

27.99%,

1/27/25

.....

153

158

UG991784579UG,

27.99%,

1/27/25

.....

35

35

UG991593724UG,

28.98%,

1/27/25

.....

195

197

UG991594281UG,

28.98%,

1/27/25

.....

237

239

UG991594298UG,

28.98%,

1/27/25

.....

128

130

UG991594312UG,

28.98%,

1/27/25

.....

457

465

UG991594933UG,

28.98%,

1/27/25

.....

1,063

1,107

UG991594966UG,

28.98%,

1/27/25

.....

15

15

UG991595331UG,

28.98%,

1/27/25

.....

48

49

UG991596135UG,

28.98%,

1/27/25

.....

34

35

UG991596472UG,

28.98%,

1/27/25

.....

306

322

UG991596979UG,

28.98%,

1/27/25

.....

648

676

UG991597253UG,

28.98%,

1/27/25

.....

34

35

UG991597711UG,

28.98%,

1/27/25

......

156

161

UG991597724UG,

28.98%,

1/27/25

.....

10

11

UG991598054UG,

28.98%,

1/27/25

.....

16

16

UG991598602UG,

28.98%,

1/27/25

.....

143

150

UG991598783UG,

28.98%,

1/27/25

.....

861

880

UG991599313UG,

28.98%,

1/27/25

.....

370

389

UG991600295UG,

28.98%,

1/27/25

.....

144

151

UG991601203UG,

28.98%,

1/27/25

.....

1,785

1,880

UG991602821UG,

28.98%,

1/27/25

.....

1,179

1,227

UG991602932UG,

28.98%,

1/27/25

.....

89

90

UG991603572UG,

28.98%,

1/27/25

.....

657

672

UG991604001UG,

28.98%,

1/27/25

.....

181

190

UG991605311UG,

28.98%,

1/27/25

......

75

79

UG991605868UG,

28.98%,

1/27/25

.....

255

269

UG991606158UG,

28.98%,

1/27/25

.....

132

19

UG991607306UG,

28.98%,

1/27/25

.....

79

83

UG991608665UG,

28.98%,

1/27/25

.....

446

470

UG991609616UG,

28.98%,

1/27/25

.....

266

280

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991611663UG,

28.98%,

1/27/25

......

$

307

$

211

UG991613097UG,

28.98%,

1/27/25

.....

152

159

UG991614181UG,

28.98%,

1/27/25

.....

210

14

UG991615144UG,

28.98%,

1/27/25

.....

144

151

UG991615892UG,

28.98%,

1/27/25

.....

508

535

UG991617077UG,

28.98%,

1/27/25

.....

184

191

UG991617118UG,

28.98%,

1/27/25

......

61

62

UG991617463UG,

28.98%,

1/27/25

.....

23

23

UG991620928UG,

28.98%,

1/27/25

.....

75

79

UG991621129UG,

28.98%,

1/27/25

......

362

376

UG991623327UG,

28.98%,

1/27/25

.....

23

23

UG991623357UG,

28.98%,

1/27/25

.....

204

214

UG991623437UG,

28.98%,

1/27/25

.....

293

309

UG991624157UG,

28.98%,

1/27/25

.....

134

(1)

UG991630700UG,

28.98%,

1/27/25

.....

280

295

UG991631171UG,

28.98%,

1/27/25

......

227

235

UG991631807UG,

28.98%,

1/27/25

.....

183

191

UG991632093UG,

28.98%,

1/27/25

.....

313

330

UG991632344UG,

28.98%,

1/27/25

.....

92

97

UG991633929UG,

28.98%,

1/27/25

.....

469

494

UG991634644UG,

28.98%,

1/27/25

.....

89

89

UG991635049UG,

28.98%,

1/27/25

.....

447

464

UG991635121UG,

28.98%,

1/27/25

.....

692

729

UG991635670UG,

28.98%,

1/27/25

.....

690

727

UG991636408UG,

28.98%,

1/27/25

.....

343

347

UG991637847UG,

28.98%,

1/27/25

.....

32

32

UG991639732UG,

28.98%,

1/27/25

.....

22

22

UG991643120UG,

28.98%,

1/27/25

.....

393

409

UG991644066UG,

28.98%,

1/27/25

.....

16

16

UG991645234UG,

28.98%,

1/27/25

.....

90

94

UG991645498UG,

28.98%,

1/27/25

.....

235

245

UG991646436UG,

28.98%,

1/27/25

.....

279

294

UG991651616UG,

28.98%,

1/27/25

.....

70

73

UG991653209UG,

28.98%,

1/27/25

.....

2,206

2,324

UG991653220UG,

28.98%,

1/27/25

.....

93

94

UG991654533UG,

28.98%,

1/27/25

.....

170

177

UG991654856UG,

28.98%,

1/27/25

.....

447

470

UG991657182UG,

28.98%,

1/27/25

.....

1,381

1,455

UG991658220UG,

28.98%,

1/27/25

.....

721

760

UG991659335UG,

28.98%,

1/27/25

.....

305

321

UG991660335UG,

28.98%,

1/27/25

.....

178

186

UG991663420UG,

28.98%,

1/27/25

.....

1,569

1,653

UG991664621UG,

28.98%,

1/27/25

.....

152

160

UG991666634UG,

28.98%,

1/27/25

.....

120

126

UG991670133UG,

28.98%,

1/27/25

.....

168

175

UG991671149UG,

28.98%,

1/27/25

......

87

91

UG991672421UG,

28.98%,

1/27/25

.....

276

282

UG991672456UG,

28.98%,

1/27/25

.....

159

158

UG991672656UG,

28.98%,

1/27/25

.....

100

105

UG991679811UG,

28.98%,

1/27/25

......

77

81

UG991681733UG,

28.98%,

1/27/25

.....

180

189

UG991684060UG,

28.98%,

1/27/25

.....

549

556

UG991684799UG,

28.98%,

1/27/25

.....

127

134

UG991684873UG,

28.98%,

1/27/25

.....

80

82

UG991686238UG,

28.98%,

1/27/25

.....

9

9

UG991687681UG,

28.98%,

1/27/25

.....

88

90

UG991693260UG,

28.98%,

1/27/25

.....

47

47

UG991693305UG,

28.98%,

1/27/25

.....

875

909

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

103

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991693530UG,

28.98%,

1/27/25

.....

$

131

$

138

UG991699112UG,

28.98%,

1/27/25

......

102

108

UG991699852UG,

28.98%,

1/27/25

.....

244

34

UG991707195UG,

28.98%,

1/27/25

.....

42

43

UG991711538UG,

28.98%,

1/27/25

......

24

25

UG991714759UG,

28.98%,

1/27/25

.....

116

122

UG991716555UG,

28.98%,

1/27/25

.....

45

46

UG991719023UG,

28.98%,

1/27/25

.....

433

30

UG991721854UG,

28.98%,

1/27/25

.....

336

350

UG991722576UG,

28.98%,

1/27/25

.....

50

52

UG991725390UG,

28.98%,

1/27/25

.....

55

56

UG991730761UG,

28.98%,

1/27/25

.....

131

138

UG991732352UG,

28.98%,

1/27/25

.....

29

30

UG991746915UG,

28.98%,

1/27/25

.....

355

(11)

UG991747891UG,

28.98%,

1/27/25

.....

114

120

UG991751444UG,

28.98%,

1/27/25

.....

7

7

UG991757043UG,

28.98%,

1/27/25

.....

187

191

UG991761556UG,

28.98%,

1/27/25

.....

55

57

UG991772210UG,

28.98%,

1/27/25

.....

2,734

2,849

UG991772279UG,

28.98%,

1/27/25

.....

725

756

UG991772315UG,

28.98%,

1/27/25

.....

740

103

UG991785235UG,

28.98%,

1/27/25

.....

326

340

UG991790040UG,

28.98%,

1/27/25

.....

51

52

UG991792500UG,

28.98%,

1/27/25

.....

170

178

UG991796141UG,

28.98%,

1/27/25

.....

53

55

UG991811211UG,

28.98%,

1/27/25

......

196

204

UG991820015UG,

28.98%,

1/27/25

.....

316

329

UG991822961UG,

28.98%,

1/27/25

.....

267

276

UG991832201UG,

28.98%,

1/27/25

.....

1,807

1,872

UG991832387UG,

28.98%,

1/27/25

.....

678

706

UG991662323UG,

29.47%,

1/27/25

.....

15

15

UG991593828UG,

29.49%,

1/27/25

.....

262

21

UG991594192UG,

29.49%,

1/27/25

.....

249

264

UG991594952UG,

29.49%,

1/27/25

.....

963

1,015

UG991596209UG,

29.49%,

1/27/25

.....

911

972

UG991596228UG,

29.49%,

1/27/25

.....

172

183

UG991596886UG,

29.49%,

1/27/25

.....

183

189

UG991596983UG,

29.49%,

1/27/25

.....

105

111

UG991597441UG,

29.49%,

1/27/25

.....

367

264

UG991598580UG,

29.49%,

1/27/25

.....

113

119

UG991598640UG,

29.49%,

1/27/25

.....

28

29

UG991598931UG,

29.49%,

1/27/25

.....

178

7

UG991600353UG,

29.49%,

1/27/25

.....

205

16

UG991600440UG,

29.49%,

1/27/25

.....

411

434

UG991600674UG,

29.49%,

1/27/25

.....

83

88

UG991604512UG,

29.49%,

1/27/25

.....

140

103

UG991604744UG,

29.49%,

1/27/25

.....

50

52

UG991604802UG,

29.49%,

1/27/25

.....

52

54

UG991605074UG,

29.49%,

1/27/25

.....

37

37

UG991605178UG,

29.49%,

1/27/25

.....

261

276

UG991605218UG,

29.49%,

1/27/25

.....

7

7

UG991605251UG,

29.49%,

1/27/25

.....

31

32

UG991605906UG,

29.49%,

1/27/25

.....

227

230

UG991606270UG,

29.49%,

1/27/25

.....

667

95

UG991606487UG,

29.49%,

1/27/25

.....

333

336

UG991607258UG,

29.49%,

1/27/25

.....

313

330

UG991608429UG,

29.49%,

1/27/25

.....

154

163

UG991608526UG,

29.49%,

1/27/25

.....

275

291

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991609085UG,

29.49%,

1/27/25

.....

$

84

$

6

UG991609299UG,

29.49%,

1/27/25

.....

1,420

1,501

UG991609655UG,

29.49%,

1/27/25

.....

208

218

UG991611049UG,

29.49%,

1/27/25

......

209

221

UG991611862UG,

29.49%,

1/27/25

......

137

145

UG991613792UG,

29.49%,

1/27/25

.....

–

–

UG991613806UG,

29.49%,

1/27/25

.....

2,618

2,734

UG991613940UG,

29.49%,

1/27/25

.....

77

81

UG991614453UG,

29.49%,

1/27/25

.....

219

222

UG991614668UG,

29.49%,

1/27/25

.....

85

3

UG991614714UG,

29.49%,

1/27/25

.....

29

30

UG991616915UG,

29.49%,

1/27/25

.....

170

177

UG991617119UG,

29.49%,

1/27/25

......

720

763

UG991617295UG,

29.49%,

1/27/25

.....

765

806

UG991618276UG,

29.49%,

1/27/25

.....

828

841

UG991619030UG,

29.49%,

1/27/25

.....

135

136

UG991619817UG,

29.49%,

1/27/25

.....

528

556

UG991624512UG,

29.49%,

1/27/25

.....

104

109

UG991624910UG,

29.49%,

1/27/25

.....

80

84

UG991626868UG,

29.49%,

1/27/25

.....

92

95

UG991627621UG,

29.49%,

1/27/25

.....

96

101

UG991628233UG,

29.49%,

1/27/25

.....

39

40

UG991628707UG,

29.49%,

1/27/25

.....

131

132

UG991630944UG,

29.49%,

1/27/25

.....

64

64

UG991633038UG,

29.49%,

1/27/25

.....

822

854

UG991635104UG,

29.49%,

1/27/25

.....

109

85

UG991636506UG,

29.49%,

1/27/25

.....

807

839

UG991637168UG,

29.49%,

1/27/25

.....

115

121

UG991637328UG,

29.49%,

1/27/25

.....

181

27

UG991643691UG,

29.49%,

1/27/25

.....

188

192

UG991643995UG,

29.49%,

1/27/25

.....

318

339

UG991645667UG,

29.49%,

1/27/25

.....

151

107

UG991647854UG,

29.49%,

1/27/25

.....

106

112

UG991648775UG,

29.49%,

1/27/25

.....

2,022

2,138

UG991648967UG,

29.49%,

1/27/25

.....

108

112

UG991649572UG,

29.49%,

1/27/25

.....

51

52

UG991650190UG,

29.49%,

1/27/25

.....

300

309

UG991653371UG,

29.49%,

1/27/25

.....

238

34

UG991654331UG,

29.49%,

1/27/25

.....

264

279

UG991658758UG,

29.49%,

1/27/25

.....

88

12

UG991659287UG,

29.49%,

1/27/25

.....

237

243

UG991660024UG,

29.49%,

1/27/25

.....

44

46

UG991668359UG,

29.49%,

1/27/25

.....

337

346

UG991669942UG,

29.49%,

1/27/25

.....

39

40

UG991670220UG,

29.49%,

1/27/25

.....

38

39

UG991672322UG,

29.49%,

1/27/25

.....

144

149

UG991678623UG,

29.49%,

1/27/25

.....

52

54

UG991680945UG,

29.49%,

1/27/25

.....

246

257

UG991682834UG,

29.49%,

1/27/25

.....

195

205

UG991683132UG,

29.49%,

1/27/25

.....

1,013

147

UG991683393UG,

29.49%,

1/27/25

.....

914

591

UG991689965UG,

29.49%,

1/27/25

.....

177

187

UG991691306UG,

29.49%,

1/27/25

.....

150

157

UG991691664UG,

29.49%,

1/27/25

.....

559

573

UG991695728UG,

29.49%,

1/27/25

.....

490

516

UG991696481UG,

29.49%,

1/27/25

.....

426

452

UG991696793UG,

29.49%,

1/27/25

.....

61

61

UG991698282UG,

29.49%,

1/27/25

.....

34

35

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991698507UG,

29.49%,

1/27/25

.....

$

109

$

113

UG991701480UG,

29.49%,

1/27/25

.....

495

524

UG991702188UG,

29.49%,

1/27/25

.....

106

106

UG991703342UG,

29.49%,

1/27/25

.....

136

143

UG991705606UG,

29.49%,

1/27/25

.....

8

8

UG991705617UG,

29.49%,

1/27/25

.....

192

197

UG991709075UG,

29.49%,

1/27/25

.....

268

276

UG991709652UG,

29.49%,

1/27/25

.....

159

166

UG991710104UG,

29.49%,

1/27/25

.....

44

46

UG991712616UG,

29.49%,

1/27/25

.....

978

(2)

UG991715908UG,

29.49%,

1/27/25

.....

454

(1)

UG991717015UG,

29.49%,

1/27/25

.....

102

108

UG991717964UG,

29.49%,

1/27/25

.....

67

70

UG991718575UG,

29.49%,

1/27/25

.....

124

130

UG991718785UG,

29.49%,

1/27/25

.....

235

166

UG991720299UG,

29.49%,

1/27/25

.....

620

654

UG991728566UG,

29.49%,

1/27/25

.....

174

184

UG991729561UG,

29.49%,

1/27/25

.....

217

164

UG991731570UG,

29.49%,

1/27/25

.....

62

64

UG991732661UG,

29.49%,

1/27/25

.....

82

86

UG991737584UG,

29.49%,

1/27/25

.....

87

92

UG991742966UG,

29.49%,

1/27/25

.....

146

146

UG991743785UG,

29.49%,

1/27/25

.....

136

93

UG991747252UG,

29.49%,

1/27/25

.....

214

224

UG991749269UG,

29.49%,

1/27/25

.....

230

241

UG991749510UG,

29.49%,

1/27/25

.....

202

211

UG991750553UG,

29.49%,

1/27/25

.....

33

33

UG991752239UG,

29.49%,

1/27/25

.....

328

346

UG991753656UG,

29.49%,

1/27/25

.....

8

8

UG991754719UG,

29.49%,

1/27/25

.....

188

15

UG991754815UG,

29.49%,

1/27/25

.....

81

60

UG991756435UG,

29.49%,

1/27/25

.....

409

35

UG991759684UG,

29.49%,

1/27/25

.....

1,001

1,043

UG991770465UG,

29.49%,

1/27/25

.....

86

90

UG991774020UG,

29.49%,

1/27/25

.....

342

357

UG991777410UG,

29.49%,

1/27/25

.....

35

36

UG991780499UG,

29.49%,

1/27/25

.....

336

351

UG991781410UG,

29.49%,

1/27/25

.....

88

92

UG991783887UG,

29.49%,

1/27/25

.....

130

134

UG991784000UG,

29.49%,

1/27/25

.....

157

164

UG991792296UG,

29.49%,

1/27/25

.....

682

711

UG991793218UG,

29.49%,

1/27/25

.....

57

58

UG991793271UG,

29.49%,

1/27/25

.....

205

214

UG991793324UG,

29.49%,

1/27/25

.....

133

140

UG991798454UG,

29.49%,

1/27/25

.....

18

18

UG991800672UG,

29.49%,

1/27/25

.....

98

102

UG991802443UG,

29.49%,

1/27/25

.....

271

285

UG991803603UG,

29.49%,

1/27/25

.....

501

511

UG991812381UG,

29.49%,

1/27/25

.....

105

108

UG991814678UG,

29.49%,

1/27/25

.....

94

99

UG991828600UG,

29.49%,

1/27/25

.....

70

72

UG991832224UG,

29.49%,

1/27/25

.....

42

43

UG991836282UG,

29.49%,

1/27/25

.....

3,437

3,554

UG991689747UG,

14%,

1/28/25

........

216

218

UG991603028UG,

15%,

1/28/25

........

151

152

UG991606397UG,

15.97%,

1/28/25

.....

403

413

UG991800530UG,

15.97%,

1/28/25

.....

486

496

UG991838313UG,

15.97%,

1/28/25

.....

1,229

1,252

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991610101UG,

16.99%,

1/28/25

.....

$

1,475

$

1,508

UG991617374UG,

16.99%,

1/28/25

.....

2,271

2,330

UG991799999UG,

16.99%,

1/28/25

.....

25

25

UG991854471UG,

16.99%,

1/28/25

.....

5,434

5,541

UG991613370UG,

17.99%,

1/28/25

.....

187

190

UG991621866UG,

17.99%,

1/28/25

.....

102

104

UG991716911UG,

17.99%,

1/28/25

......

334

340

UG991720766UG,

17.99%,

1/28/25

.....

649

665

UG991727531UG,

17.99%,

1/28/25

.....

121

123

UG991809155UG,

17.99%,

1/28/25

.....

708

489

UG991843689UG,

17.99%,

1/28/25

.....

4,511

4,598

UG991692051UG,

20.46%,

1/28/25

.....

346

352

UG991653436UG,

20.97%,

1/28/25

.....

435

438

UG991622578UG,

22.97%,

1/28/25

.....

145

147

UG991623640UG,

Zero

Cpn,

1/29/25

....

482

34

UG991629575UG,

Zero

Cpn,

1/29/25

....

516

36

UG991669610UG,

Zero

Cpn,

1/29/25

....

506

35

UG991614133UG,

14.98%,

1/29/25

.....

29

29

UG991621915UG,

14.98%,

1/29/25

.....

271

276

UG991647560UG,

14.98%,

1/29/25

.....

1,122

1,151

UG991864236UG,

14.98%,

1/29/25

.....

6,337

6,461

UG991716164UG,

15.97%,

1/29/25

.....

337

345

UG991670873UG,

16.99%,

1/29/25

.....

177

181

UG991748418UG,

16.99%,

1/29/25

.....

1,887

1,924

UG991669723UG,

17.99%,

1/29/25

.....

176

180

UG991688664UG,

17.99%,

1/29/25

.....

374

384

UG991842042UG,

17.99%,

1/29/25

.....

1,385

1,407

UG991619308UG,

18.97%,

1/29/25

.....

1,359

1,394

UG991667776UG,

18.97%,

1/29/25

.....

1,173

1,203

UG991628531UG,

19.21%,

1/29/25

.....

15

15

UG991667796UG,

19.21%,

1/29/25

.....

248

252

UG991612495UG,

19.8%,

1/29/25

......

290

297

UG991631756UG,

21.98%,

1/29/25

.....

11

11

UG991666414UG,

14.98%,

1/30/25

.....

1,277

1,310

UG991681003UG,

14.98%,

1/30/25

.....

580

595

UG991748200UG,

14.98%,

1/30/25

.....

122

126

UG991871721UG,

16.99%,

1/30/25

.....

149

151

UG991624393UG,

17.99%,

1/30/25

.....

278

283

UG991783304UG,

17.99%,

1/30/25

.....

700

88

UG991627597UG,

18.97%,

1/30/25

.....

244

248

UG991685892UG,

20.46%,

1/30/25

.....

214

216

UG991659919UG,

20.97%,

1/30/25

.....

105

108

UG991706022UG,

20.97%,

1/30/25

.....

105

14

UG991619303UG,

21.46%,

1/30/25

.....

128

131

UG991666898UG,

21.98%,

1/30/25

.....

41

42

UG991620571UG,

22.97%,

1/30/25

.....

305

306

UG991759257UG,

Zero

Cpn,

1/31/25

....

124

9

UG991684639UG,

14.97%,

1/31/25

.....

240

17

UG991832705UG,

14.97%,

1/31/25

.....

224

16

UG991685973UG,

14.98%,

1/31/25

.....

1,045

1,060

UG991718191UG,

14.98%,

1/31/25

.....

332

338

UG991726744UG,

14.98%,

1/31/25

.....

237

242

UG991831913UG,

14.98%,

1/31/25

.....

57

58

UG991851449UG,

14.98%,

1/31/25

.....

40

40

UG991646701UG,

15%,

1/31/25

........

543

555

UG991659852UG,

15%,

1/31/25

........

636

646

UG991692599UG,

15%,

1/31/25

........

183

184

UG991805365UG,

15%,

1/31/25

........

33

33

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

105

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991853717UG,

15%,

1/31/25

........

$

992

$

1,004

UG991638888UG,

15.97%,

1/31/25

.....

97

99

UG991649795UG,

15.97%,

1/31/25

.....

–

–

UG991666372UG,

15.97%,

1/31/25

.....

7,559

537

UG991746713UG,

15.97%,

1/31/25

.....

167

170

UG991754483UG,

15.97%,

1/31/25

.....

197

198

UG991757099UG,

15.97%,

1/31/25

.....

100

102

UG991809317UG,

15.97%,

1/31/25

.....

998

1,008

UG991815664UG,

15.97%,

1/31/25

.....

427

433

UG991740681UG,

15.99%,

1/31/25

.....

38

38

UG991638718UG,

16.99%,

1/31/25

.....

235

239

UG991642283UG,

16.99%,

1/31/25

.....

145

149

UG991662857UG,

16.99%,

1/31/25

.....

213

214

UG991704534UG,

16.99%,

1/31/25

.....

816

827

UG991753549UG,

16.99%,

1/31/25

.....

205

207

UG991757606UG,

16.99%,

1/31/25

.....

324

330

UG991762445UG,

16.99%,

1/31/25

.....

32

32

UG991836242UG,

16.99%,

1/31/25

.....

3,341

3,412

UG991856848UG,

16.99%,

1/31/25

.....

142

144

UG991675482UG,

17.97%,

1/31/25

.....

403

412

UG991636165UG,

17.99%,

1/31/25

.....

505

35

UG991640620UG,

17.99%,

1/31/25

.....

528

536

UG991642242UG,

17.99%,

1/31/25

.....

137

139

UG991646047UG,

17.99%,

1/31/25

.....

1,110

139

UG991659616UG,

17.99%,

1/31/25

.....

21

21

UG991664214UG,

17.99%,

1/31/25

.....

82

83

UG991682270UG,

17.99%,

1/31/25

.....

178

179

UG991696738UG,

17.99%,

1/31/25

.....

104

106

UG991698361UG,

17.99%,

1/31/25

.....

108

111

UG991709244UG,

17.99%,

1/31/25

.....

101

104

UG991712841UG,

17.99%,

1/31/25

.....

417

426

UG991713828UG,

17.99%,

1/31/25

.....

4,225

4,341

UG991743801UG,

17.99%,

1/31/25

.....

591

600

UG991748611UG,

17.99%,

1/31/25

......

337

343

UG991754758UG,

17.99%,

1/31/25

.....

943

958

UG991772768UG,

17.99%,

1/31/25

.....

99

100

UG991822192UG,

17.99%,

1/31/25

.....

670

679

UG991635799UG,

18.97%,

1/31/25

.....

787

808

UG991646069UG,

18.97%,

1/31/25

.....

199

202

UG991702370UG,

18.97%,

1/31/25

.....

137

140

UG991639577UG,

19.21%,

1/31/25

.....

211

217

UG991642378UG,

19.21%,

1/31/25

.....

3

3

UG991684344UG,

19.21%,

1/31/25

.....

291

295

UG991663410UG,

19.8%,

1/31/25

......

2,676

2,706

UG991708296UG,

19.8%,

1/31/25

......

260

263

UG991648537UG,

20.97%,

1/31/25

.....

154

156

UG991653526UG,

20.97%,

1/31/25

.....

269

275

UG991661887UG,

20.97%,

1/31/25

.....

174

177

UG991630777UG,

21.46%,

1/31/25

.....

357

357

UG991656715UG,

21.46%,

1/31/25

.....

2,074

2,099

UG991693835UG,

21.46%,

1/31/25

.....

620

627

UG991672382UG,

21.97%,

1/31/25

.....

5,063

5,087

UG991680366UG,

Zero

Cpn,

2/01/25

....

3,350

236

UG991799359UG,

14%,

2/01/25

........

7

6

UG991883831UG,

14%,

2/01/25

........

76

76

UG991745640UG,

14.97%,

2/01/25

.....

379

386

UG991836618UG,

15%,

2/01/25

........

951

967

UG991666265UG,

16.99%,

2/01/25

.....

465

471

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991668427UG,

17.97%,

2/01/25

.....

$

93

$

92

UG991657130UG,

Zero

Cpn,

2/02/25

....

88

6

UG991657231UG,

13.97%,

2/02/25

.....

3,989

4,066

UG991655483UG,

14%,

2/02/25

........

9,788

6,377

UG991693291UG,

14%,

2/02/25

........

158

161

UG991724492UG,

14%,

2/02/25

........

89

90

UG991725692UG,

14%,

2/02/25

........

207

210

UG991771266UG,

14%,

2/02/25

........

143

146

UG991834440UG,

14%,

2/02/25

........

223

227

UG991687949UG,

14.98%,

2/02/25

.....

235

239

UG991658184UG,

15%,

2/02/25

........

3,145

3,198

UG991681442UG,

15%,

2/02/25

........

35

35

UG991670102UG,

15.97%,

2/02/25

.....

400

405

UG991670480UG,

15.97%,

2/02/25

.....

20

20

UG991760625UG,

15.97%,

2/02/25

.....

262

267

UG991848002UG,

15.97%,

2/02/25

.....

61

61

UG991655255UG,

15.99%,

2/02/25

.....

4,707

4,797

UG991849575UG,

15.99%,

2/02/25

.....

53

53

UG991650925UG,

16.99%,

2/02/25

.....

272

273

UG991676165UG,

16.99%,

2/02/25

.....

227

232

UG991679270UG,

16.99%,

2/02/25

.....

265

270

UG991689542UG,

16.99%,

2/02/25

.....

494

503

UG991781369UG,

16.99%,

2/02/25

.....

650

662

UG991844255UG,

16.99%,

2/02/25

.....

20

20

UG991868233UG,

16.99%,

2/02/25

.....

2,583

2,615

UG991871017UG,

16.99%,

2/02/25

.....

1,190

81

UG991689544UG,

17.97%,

2/02/25

.....

113

115

UG991683457UG,

17.99%,

2/02/25

.....

–

–

UG991731323UG,

17.99%,

2/02/25

.....

279

284

UG991880297UG,

17.99%,

2/02/25

.....

304

301

UG991703345UG,

Zero

Cpn,

2/03/25

....

400

28

UG991704352UG,

Zero

Cpn,

2/03/25

....

410

28

UG991712501UG,

Zero

Cpn,

2/03/25

....

152

11

UG991859515UG,

Zero

Cpn,

2/03/25

....

285

20

UG991885990UG,

Zero

Cpn,

2/03/25

....

147

10

UG991878726UG,

14.98%,

2/03/25

.....

427

432

UG991886549UG,

16.99%,

2/03/25

.....

57

57

UG991907914UG,

17.99%,

2/03/25

.....

134

135

UG991689885UG,

19.99%,

2/03/25

.....

549

572

UG991714434UG,

19.99%,

2/03/25

.....

341

355

UG991913936UG,

21.46%,

2/03/25

.....

8

8

UG991914992UG,

21.97%,

2/03/25

.....

43

43

UG991702146UG,

21.98%,

2/03/25

.....

269

69

UG991705607UG,

23.95%,

2/03/25

.....

1

1

UG991684537UG,

27.99%,

2/03/25

.....

146

153

UG991744807UG,

27.99%,

2/03/25

.....

176

184

UG991680701UG,

28.98%,

2/03/25

.....

231

226

UG991686623UG,

28.98%,

2/03/25

.....

2,386

2,494

UG991688155UG,

28.98%,

2/03/25

.....

337

352

UG991694975UG,

28.98%,

2/03/25

.....

1,846

(93)

UG991699673UG,

28.98%,

2/03/25

.....

180

186

UG991700745UG,

28.98%,

2/03/25

.....

3,642

3,750

UG991708472UG,

28.98%,

2/03/25

.....

63

65

UG991713626UG,

28.98%,

2/03/25

.....

178

186

UG991716236UG,

28.98%,

2/03/25

.....

110

115

UG991716314UG,

28.98%,

2/03/25

.....

133

132

UG991720594UG,

28.98%,

2/03/25

.....

400

415

UG991743871UG,

28.98%,

2/03/25

.....

229

231

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991777700UG,

28.98%,

2/03/25

.....

$

752

$

776

UG991827774UG,

28.98%,

2/03/25

.....

46

47

UG991882827UG,

28.98%,

2/03/25

.....

165

170

UG991910619UG,

28.98%,

2/03/25

.....

402

415

UG991911258UG,

28.98%,

2/03/25

......

90

21

UG991911288UG,

28.98%,

2/03/25

......

63

65

UG991915303UG,

28.98%,

2/03/25

.....

5

5

UG991916599UG,

28.98%,

2/03/25

.....

86

88

UG991676586UG,

29.49%,

2/03/25

.....

162

157

UG991678637UG,

29.49%,

2/03/25

.....

159

168

UG991689327UG,

29.49%,

2/03/25

.....

558

586

UG991722488UG,

29.49%,

2/03/25

.....

173

181

UG991742223UG,

29.49%,

2/03/25

.....

–

–

UG991747483UG,

29.49%,

2/03/25

.....

331

333

UG991756506UG,

29.49%,

2/03/25

.....

131

139

UG991770245UG,

29.49%,

2/03/25

.....

388

410

UG991795655UG,

29.49%,

2/03/25

.....

11

11

UG991803788UG,

29.49%,

2/03/25

.....

16

1

UG991805657UG,

29.49%,

2/03/25

.....

394

407

UG991852488UG,

29.49%,

2/03/25

.....

138

100

UG991864584UG,

29.49%,

2/03/25

.....

119

125

UG991883418UG,

29.49%,

2/03/25

.....

134

30

UG991909621UG,

29.49%,

2/03/25

.....

–

–

UG991912447UG,

29.49%,

2/03/25

.....

126

126

UG991912585UG,

29.49%,

2/03/25

.....

16

15

UG991916903UG,

29.49%,

2/03/25

.....

186

191

UG991917239UG,

29.49%,

2/03/25

.....

224

231

UG991917590UG,

29.49%,

2/03/25

.....

39

39

UG991694525UG,

Zero

Cpn,

2/04/25

....

800

57

UG991717885UG,

Zero

Cpn,

2/04/25

....

1,111

78

UG991738402UG,

Zero

Cpn,

2/04/25

....

89

6

UG991746074UG,

Zero

Cpn,

2/04/25

....

1,171

82

UG991786752UG,

Zero

Cpn,

2/04/25

....

114

8

UG991839430UG,

Zero

Cpn,

2/04/25

....

194

14

UG991911625UG,

Zero

Cpn,

2/04/25

....

1,482

102

UG991916695UG,

Zero

Cpn,

2/04/25

....

98

7

UG991919104UG,

Zero

Cpn,

2/04/25

....

362

26

UG991775705UG,

14.98%,

2/04/25

.....

149

152

UG991871765UG,

14.98%,

2/04/25

.....

232

236

UG991692937UG,

15%,

2/04/25

........

73

73

UG991809306UG,

15.97%,

2/04/25

.....

231

236

UG991700340UG,

16.99%,

2/04/25

.....

156

157

UG991741062UG,

16.99%,

2/04/25

.....

250

252

UG991803848UG,

16.99%,

2/04/25

.....

470

479

UG991809198UG,

16.99%,

2/04/25

.....

432

441

UG991816473UG,

16.99%,

2/04/25

.....

889

886

UG991834171UG,

16.99%,

2/04/25

.....

6,698

6,830

UG991761530UG,

17.99%,

2/04/25

.....

288

287

UG991752793UG,

18.97%,

2/04/25

.....

302

303

UG991729245UG,

19.8%,

2/04/25

......

109

111

UG991685630UG,

19.99%,

2/04/25

.....

301

308

UG991744504UG,

19.99%,

2/04/25

.....

107

108

UG991889300UG,

19.99%,

2/04/25

.....

119

123

UG991913677UG,

19.99%,

2/04/25

.....

166

20

UG991915319UG,

20.46%,

2/04/25

.....

145

146

UG991697789UG,

20.97%,

2/04/25

.....

675

688

UG991925637UG,

21.46%,

2/04/25

.....

20

20

UG991712275UG,

22.97%,

2/04/25

.....

391

47

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991918054UG,

22.97%,

2/04/25

.....

$

1,373

$

1,382

UG991695448UG,

25.95%,

2/04/25

.....

296

(31)

UG991724012UG,

27.99%,

2/04/25

.....

181

188

UG991689281UG,

28.98%,

2/04/25

.....

–

–

UG991696574UG,

28.98%,

2/04/25

.....

123

128

UG991697057UG,

28.98%,

2/04/25

.....

123

122

UG991700907UG,

28.98%,

2/04/25

.....

174

181

UG991714817UG,

28.98%,

2/04/25

.....

127

133

UG991714934UG,

28.98%,

2/04/25

.....

199

199

UG991736129UG,

28.98%,

2/04/25

.....

78

81

UG991738710UG,

28.98%,

2/04/25

.....

204

143

UG991765630UG,

28.98%,

2/04/25

.....

47

48

UG991786787UG,

28.98%,

2/04/25

.....

142

147

UG991805373UG,

28.98%,

2/04/25

.....

53

54

UG991824710UG,

28.98%,

2/04/25

.....

620

640

UG991836806UG,

28.98%,

2/04/25

.....

108

112

UG991867830UG,

28.98%,

2/04/25

.....

14

14

UG991876641UG,

28.98%,

2/04/25

.....

7

7

UG991900572UG,

28.98%,

2/04/25

.....

91

94

UG991911859UG,

28.98%,

2/04/25

......

90

93

UG991926669UG,

28.98%,

2/04/25

.....

57

58

UG991684601UG,

29.49%,

2/04/25

.....

5

5

UG991686694UG,

29.49%,

2/04/25

.....

188

24

UG991686783UG,

29.49%,

2/04/25

.....

76

79

UG991687371UG,

29.49%,

2/04/25

.....

113

114

UG991693725UG,

29.49%,

2/04/25

.....

315

329

UG991694653UG,

29.49%,

2/04/25

.....

484

507

UG991700247UG,

29.49%,

2/04/25

.....

189

196

UG991700295UG,

29.49%,

2/04/25

.....

423

27

UG991700897UG,

29.49%,

2/04/25

.....

25

26

UG991707526UG,

29.49%,

2/04/25

.....

224

222

UG991708603UG,

29.49%,

2/04/25

.....

244

255

UG991713833UG,

29.49%,

2/04/25

.....

593

612

UG991717127UG,

29.49%,

2/04/25

.....

152

159

UG991717208UG,

29.49%,

2/04/25

.....

214

218

UG991737055UG,

29.49%,

2/04/25

.....

617

637

UG991758842UG,

29.49%,

2/04/25

.....

399

412

UG991763796UG,

29.49%,

2/04/25

.....

88

89

UG991769405UG,

29.49%,

2/04/25

.....

8

8

UG991774935UG,

29.49%,

2/04/25

.....

965

1,009

UG991786330UG,

29.49%,

2/04/25

.....

872

899

UG991807327UG,

29.49%,

2/04/25

.....

171

176

UG991808732UG,

29.49%,

2/04/25

.....

114

83

UG991847043UG,

29.49%,

2/04/25

.....

576

592

UG991848466UG,

29.49%,

2/04/25

.....

62

64

UG991849560UG,

29.49%,

2/04/25

.....

78

81

UG991867247UG,

29.49%,

2/04/25

.....

82

81

UG991876144UG,

29.49%,

2/04/25

.....

123

(3)

UG991878368UG,

29.49%,

2/04/25

.....

159

162

UG991879607UG,

29.49%,

2/04/25

.....

192

198

UG991915193UG,

29.49%,

2/04/25

.....

84

87

UG991915888UG,

29.49%,

2/04/25

.....

225

15

UG991916727UG,

29.49%,

2/04/25

.....

42

42

UG991917180UG,

29.49%,

2/04/25

.....

169

175

UG991918511UG,

29.49%,

2/04/25

......

1,715

1,764

UG991923655UG,

29.49%,

2/04/25

.....

11

6

UG991692669UG,

Zero

Cpn,

2/05/25

....

589

41

UG991696109UG,

Zero

Cpn,

2/05/25

....

52

4

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

107

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991717423UG,

Zero

Cpn,

2/05/25

....

$

56

$

4

UG991741813UG,

Zero

Cpn,

2/05/25

....

101

7

UG991775351UG,

Zero

Cpn,

2/05/25

....

841

58

UG991783476UG,

Zero

Cpn,

2/05/25

....

1,273

89

UG991805106UG,

Zero

Cpn,

2/05/25

....

411

28

UG991834388UG,

Zero

Cpn,

2/05/25

....

242

17

UG991834538UG,

Zero

Cpn,

2/05/25

....

268

19

UG991853573UG,

Zero

Cpn,

2/05/25

....

823

57

UG991872851UG,

Zero

Cpn,

2/05/25

....

338

24

UG991887195UG,

Zero

Cpn,

2/05/25

....

94

7

UG991908584UG,

Zero

Cpn,

2/05/25

....

105

7

UG991720650UG,

18.97%,

2/05/25

.....

1,531

1,555

UG991861184UG,

19.21%,

2/05/25

......

162

165

UG991682958UG,

19.99%,

2/05/25

.....

577

578

UG991693229UG,

19.99%,

2/05/25

.....

86

(1)

UG991693967UG,

19.99%,

2/05/25

.....

195

203

UG991693994UG,

19.99%,

2/05/25

.....

115

(1)

UG991709370UG,

19.99%,

2/05/25

.....

50

20

UG991710161UG,

19.99%,

2/05/25

.....

69

71

UG991719379UG,

19.99%,

2/05/25

.....

196

200

UG991725525UG,

19.99%,

2/05/25

.....

222

226

UG991726938UG,

19.99%,

2/05/25

.....

98

102

UG991735635UG,

19.99%,

2/05/25

.....

98

102

UG991739604UG,

19.99%,

2/05/25

.....

1,116

1,165

UG991754294UG,

19.99%,

2/05/25

.....

690

713

UG991817784UG,

19.99%,

2/05/25

.....

130

134

UG991831360UG,

19.99%,

2/05/25

.....

653

683

UG991832671UG,

19.99%,

2/05/25

.....

168

170

UG991895791UG,

19.99%,

2/05/25

.....

42

43

UG991915152UG,

19.99%,

2/05/25

.....

230

231

UG991915773UG,

19.99%,

2/05/25

.....

12

12

UG991918916UG,

19.99%,

2/05/25

.....

29

12

UG991713079UG,

20.46%,

2/05/25

.....

431

438

UG991841527UG,

20.46%,

2/05/25

.....

428

428

UG991707903UG,

20.97%,

2/05/25

.....

107

109

UG991715134UG,

20.97%,

2/05/25

.....

223

227

UG991715412UG,

20.97%,

2/05/25

.....

230

234

UG991832676UG,

20.97%,

2/05/25

.....

8,551

8,707

UG991835755UG,

20.97%,

2/05/25

.....

378

381

UG991834692UG,

21.46%,

2/05/25

.....

825

837

UG991840414UG,

21.46%,

2/05/25

.....

335

332

UG991869250UG,

21.46%,

2/05/25

.....

1,341

1,347

UG991910043UG,

21.46%,

2/05/25

.....

1,216

1,222

UG991911356UG,

21.98%,

2/05/25

......

154

155

UG991708641UG,

22.97%,

2/05/25

.....

64

64

UG991743501UG,

22.97%,

2/05/25

.....

451

459

UG991783388UG,

22.97%,

2/05/25

.....

366

80

UG991794589UG,

22.97%,

2/05/25

.....

141

9

UG991924883UG,

23.95%,

2/05/25

.....

63

17

UG991703789UG,

24.95%,

2/05/25

.....

162

163

UG991707914UG,

25.95%,

2/05/25

.....

30

30

UG991743591UG,

25.95%,

2/05/25

.....

78

78

UG991755942UG,

26.94%,

2/05/25

.....

739

501

UG991737282UG,

27.95%,

2/05/25

.....

103

108

UG991696029UG,

27.99%,

2/05/25

.....

234

170

UG991705622UG,

27.99%,

2/05/25

.....

199

207

UG991717022UG,

27.99%,

2/05/25

.....

196

204

UG991747914UG,

27.99%,

2/05/25

.....

2,288

2,392

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991936016UG,

27.99%,

2/05/25

.....

$

1

$

–

UG991675164UG,

28.98%,

2/05/25

.....

1,359

173

UG991677817UG,

28.98%,

2/05/25

.....

848

856

UG991680083UG,

28.98%,

2/05/25

.....

42

42

UG991683489UG,

28.98%,

2/05/25

.....

2,115

493

UG991700269UG,

28.98%,

2/05/25

.....

142

148

UG991702789UG,

28.98%,

2/05/25

.....

463

466

UG991704666UG,

28.98%,

2/05/25

.....

334

349

UG991705698UG,

28.98%,

2/05/25

.....

63

65

UG991705736UG,

28.98%,

2/05/25

.....

121

125

UG991706202UG,

28.98%,

2/05/25

.....

318

333

UG991706300UG,

28.98%,

2/05/25

.....

232

238

UG991706343UG,

28.98%,

2/05/25

.....

73

74

UG991708055UG,

28.98%,

2/05/25

.....

182

131

UG991708239UG,

28.98%,

2/05/25

.....

159

166

UG991708354UG,

28.98%,

2/05/25

.....

127

128

UG991709411UG,

28.98%,

2/05/25

......

132

133

UG991710032UG,

28.98%,

2/05/25

.....

27

27

UG991712219UG,

28.98%,

2/05/25

.....

826

849

UG991712458UG,

28.98%,

2/05/25

.....

76

77

UG991714493UG,

28.98%,

2/05/25

.....

112

117

UG991715735UG,

28.98%,

2/05/25

.....

79

19

UG991716179UG,

28.98%,

2/05/25

.....

185

42

UG991718944UG,

28.98%,

2/05/25

.....

708

740

UG991721024UG,

28.98%,

2/05/25

.....

636

665

UG991724571UG,

28.98%,

2/05/25

.....

157

164

UG991724730UG,

28.98%,

2/05/25

.....

682

713

UG991726806UG,

28.98%,

2/05/25

.....

121

127

UG991728132UG,

28.98%,

2/05/25

.....

720

734

UG991729522UG,

28.98%,

2/05/25

.....

35

36

UG991730611UG,

28.98%,

2/05/25

......

713

745

UG991732989UG,

28.98%,

2/05/25

.....

288

301

UG991734130UG,

28.98%,

2/05/25

.....

53

55

UG991734853UG,

28.98%,

2/05/25

.....

103

108

UG991735560UG,

28.98%,

2/05/25

.....

72

74

UG991736771UG,

28.98%,

2/05/25

.....

193

200

UG991737214UG,

28.98%,

2/05/25

.....

164

171

UG991739073UG,

28.98%,

2/05/25

.....

193

196

UG991739154UG,

28.98%,

2/05/25

.....

2,363

2,471

UG991739980UG,

28.98%,

2/05/25

.....

286

299

UG991742979UG,

28.98%,

2/05/25

.....

82

86

UG991743526UG,

28.98%,

2/05/25

.....

70

70

UG991744726UG,

28.98%,

2/05/25

.....

74

74

UG991745601UG,

28.98%,

2/05/25

.....

269

280

UG991746873UG,

28.98%,

2/05/25

.....

163

169

UG991747299UG,

28.98%,

2/05/25

.....

74

76

UG991753087UG,

28.98%,

2/05/25

.....

19

19

UG991755981UG,

28.98%,

2/05/25

.....

229

240

UG991759687UG,

28.98%,

2/05/25

.....

245

256

UG991761917UG,

28.98%,

2/05/25

.....

162

169

UG991762144UG,

28.98%,

2/05/25

.....

148

152

UG991762262UG,

28.98%,

2/05/25

.....

120

121

UG991764086UG,

28.98%,

2/05/25

.....

62

64

UG991769018UG,

28.98%,

2/05/25

.....

270

282

UG991772451UG,

28.98%,

2/05/25

.....

856

894

UG991776821UG,

28.98%,

2/05/25

.....

93

97

UG991776933UG,

28.98%,

2/05/25

.....

257

266

UG991783771UG,

28.98%,

2/05/25

.....

1,010

1,044

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991784786UG,

28.98%,

2/05/25

.....

$

37

$

37

UG991788735UG,

28.98%,

2/05/25

.....

431

(19)

UG991789109UG,

28.98%,

2/05/25

.....

255

257

UG991790367UG,

28.98%,

2/05/25

.....

1,098

1,134

UG991796763UG,

28.98%,

2/05/25

.....

45

44

UG991805668UG,

28.98%,

2/05/25

.....

98

101

UG991807068UG,

28.98%,

2/05/25

.....

327

75

UG991808450UG,

28.98%,

2/05/25

.....

121

126

UG991811477UG,

28.98%,

2/05/25

......

712

744

UG991813874UG,

28.98%,

2/05/25

.....

120

125

UG991819745UG,

28.98%,

2/05/25

.....

51

53

UG991819751UG,

28.98%,

2/05/25

.....

570

588

UG991820191UG,

28.98%,

2/05/25

.....

71

74

UG991829108UG,

28.98%,

2/05/25

.....

601

626

UG991833444UG,

28.98%,

2/05/25

.....

248

257

UG991836188UG,

28.98%,

2/05/25

.....

161

165

UG991836325UG,

28.98%,

2/05/25

.....

137

137

UG991842297UG,

28.98%,

2/05/25

.....

92

96

UG991842364UG,

28.98%,

2/05/25

.....

1,072

1,110

UG991844958UG,

28.98%,

2/05/25

.....

889

(83)

UG991853603UG,

28.98%,

2/05/25

.....

310

322

UG991855938UG,

28.98%,

2/05/25

.....

250

261

UG991857568UG,

28.98%,

2/05/25

.....

386

403

UG991857619UG,

28.98%,

2/05/25

.....

165

170

UG991863657UG,

28.98%,

2/05/25

.....

106

111

UG991868870UG,

28.98%,

2/05/25

.....

20

20

UG991884917UG,

28.98%,

2/05/25

.....

398

410

UG991886335UG,

28.98%,

2/05/25

.....

281

290

UG991893126UG,

28.98%,

2/05/25

.....

13

13

UG991894894UG,

28.98%,

2/05/25

.....

1,271

1,312

UG991897007UG,

28.98%,

2/05/25

.....

110

25

UG991900228UG,

28.98%,

2/05/25

.....

10

10

UG991901365UG,

28.98%,

2/05/25

.....

694

715

UG991903733UG,

28.98%,

2/05/25

.....

15

15

UG991911562UG,

28.98%,

2/05/25

......

273

278

UG991914304UG,

28.98%,

2/05/25

.....

113

116

UG991916809UG,

28.98%,

2/05/25

.....

52

53

UG991921265UG,

28.98%,

2/05/25

.....

93

96

UG991922743UG,

28.98%,

2/05/25

.....

72

75

UG991937493UG,

28.98%,

2/05/25

.....

630

650

UG991938119UG,

28.98%,

2/05/25

......

1,245

1,283

UG991681542UG,

29.45%,

2/05/25

.....

75

66

UG991857451UG,

29.45%,

2/05/25

.....

24

21

UG991680433UG,

29.49%,

2/05/25

.....

173

176

UG991693084UG,

29.49%,

2/05/25

.....

90

95

UG991694154UG,

29.49%,

2/05/25

.....

845

826

UG991695320UG,

29.49%,

2/05/25

.....

97

101

UG991695684UG,

29.49%,

2/05/25

.....

214

217

UG991697402UG,

29.49%,

2/05/25

.....

197

207

UG991700073UG,

29.49%,

2/05/25

.....

203

47

UG991700153UG,

29.49%,

2/05/25

.....

306

315

UG991700758UG,

29.49%,

2/05/25

.....

351

364

UG991702103UG,

29.49%,

2/05/25

.....

197

26

UG991702149UG,

29.49%,

2/05/25

.....

256

265

UG991703611UG,

29.49%,

2/05/25

......

89

92

UG991704269UG,

29.49%,

2/05/25

.....

89

90

UG991704974UG,

29.49%,

2/05/25

.....

148

10

UG991705084UG,

29.49%,

2/05/25

.....

60

62

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991708918UG,

29.49%,

2/05/25

.....

$

433

$

437

UG991709219UG,

29.49%,

2/05/25

.....

67

70

UG991709454UG,

29.49%,

2/05/25

.....

168

173

UG991710089UG,

29.49%,

2/05/25

.....

203

209

UG991710338UG,

29.49%,

2/05/25

.....

43

43

UG991710782UG,

29.49%,

2/05/25

.....

908

945

UG991711446UG,

29.49%,

2/05/25

......

34

35

UG991713293UG,

29.49%,

2/05/25

.....

115

121

UG991713639UG,

29.49%,

2/05/25

.....

201

205

UG991713769UG,

29.49%,

2/05/25

.....

8

8

UG991714180UG,

29.49%,

2/05/25

.....

260

272

UG991714380UG,

29.49%,

2/05/25

.....

1,187

829

UG991714508UG,

29.49%,

2/05/25

.....

6

6

UG991714617UG,

29.49%,

2/05/25

.....

112

(5)

UG991715331UG,

29.49%,

2/05/25

.....

230

158

UG991715444UG,

29.49%,

2/05/25

.....

857

880

UG991715800UG,

29.49%,

2/05/25

.....

32

32

UG991716657UG,

29.49%,

2/05/25

.....

29

29

UG991718850UG,

29.49%,

2/05/25

.....

578

585

UG991719235UG,

29.49%,

2/05/25

.....

255

250

UG991719551UG,

29.49%,

2/05/25

.....

236

15

UG991722607UG,

29.49%,

2/05/25

.....

33

2

UG991722812UG,

29.49%,

2/05/25

.....

208

218

UG991723913UG,

29.49%,

2/05/25

.....

53

54

UG991725800UG,

29.49%,

2/05/25

.....

220

229

UG991727032UG,

29.49%,

2/05/25

.....

139

146

UG991727290UG,

29.49%,

2/05/25

.....

7

7

UG991728298UG,

29.49%,

2/05/25

.....

86

91

UG991728509UG,

29.49%,

2/05/25

.....

64

67

UG991731697UG,

29.49%,

2/05/25

.....

206

214

UG991732282UG,

29.49%,

2/05/25

.....

124

129

UG991732719UG,

29.49%,

2/05/25

.....

223

232

UG991733824UG,

29.49%,

2/05/25

.....

1,400

1,467

UG991734685UG,

29.49%,

2/05/25

.....

33

33

UG991737308UG,

29.49%,

2/05/25

.....

375

388

UG991741465UG,

29.49%,

2/05/25

.....

98

99

UG991744524UG,

29.49%,

2/05/25

.....

193

(8)

UG991745068UG,

29.49%,

2/05/25

.....

5,041

5,276

UG991745294UG,

29.49%,

2/05/25

.....

124

131

UG991745434UG,

29.49%,

2/05/25

.....

36

36

UG991745495UG,

29.49%,

2/05/25

.....

58

59

UG991745604UG,

29.49%,

2/05/25

.....

68

4

UG991746165UG,

29.49%,

2/05/25

.....

210

220

UG991747447UG,

29.49%,

2/05/25

.....

551

577

UG991747772UG,

29.49%,

2/05/25

.....

–

–

UG991748176UG,

29.49%,

2/05/25

.....

94

97

UG991748448UG,

29.49%,

2/05/25

.....

1,007

1,041

UG991750763UG,

29.49%,

2/05/25

.....

93

93

UG991751122UG,

29.49%,

2/05/25

......

263

274

UG991751856UG,

29.49%,

2/05/25

.....

39

39

UG991752282UG,

29.49%,

2/05/25

.....

299

295

UG991752383UG,

29.49%,

2/05/25

.....

142

149

UG991753004UG,

29.49%,

2/05/25

.....

285

(11)

UG991754108UG,

29.49%,

2/05/25

.....

121

128

UG991755735UG,

29.49%,

2/05/25

.....

567

37

UG991756132UG,

29.49%,

2/05/25

.....

148

19

UG991756904UG,

29.49%,

2/05/25

.....

27

27

UG991757074UG,

29.49%,

2/05/25

.....

119

84

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

109

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991757533UG,

29.49%,

2/05/25

.....

$

113

$

116

UG991761533UG,

29.49%,

2/05/25

.....

299

301

UG991767013UG,

29.49%,

2/05/25

.....

129

135

UG991768291UG,

29.49%,

2/05/25

.....

100

105

UG991770008UG,

29.49%,

2/05/25

.....

102

102

UG991770185UG,

29.49%,

2/05/25

.....

93

25

UG991770513UG,

29.49%,

2/05/25

.....

85

90

UG991770583UG,

29.49%,

2/05/25

.....

483

118

UG991777615UG,

29.49%,

2/05/25

.....

–

–

UG991779678UG,

29.49%,

2/05/25

.....

134

140

UG991781231UG,

29.49%,

2/05/25

.....

11

11

UG991781254UG,

29.49%,

2/05/25

.....

64

5

UG991781338UG,

29.49%,

2/05/25

.....

856

200

UG991781343UG,

29.49%,

2/05/25

.....

22

23

UG991783713UG,

29.49%,

2/05/25

.....

394

281

UG991788833UG,

29.49%,

2/05/25

.....

203

206

UG991790182UG,

29.49%,

2/05/25

.....

104

109

UG991792046UG,

29.49%,

2/05/25

.....

66

68

UG991792427UG,

29.49%,

2/05/25

.....

214

224

UG991795791UG,

29.49%,

2/05/25

.....

53

4

UG991796894UG,

29.49%,

2/05/25

.....

608

634

UG991811197UG,

29.49%,

2/05/25

......

232

240

UG991811424UG,

29.49%,

2/05/25

......

686

712

UG991812577UG,

29.49%,

2/05/25

.....

140

10

UG991812942UG,

29.49%,

2/05/25

.....

29

30

UG991814320UG,

29.49%,

2/05/25

.....

380

83

UG991814933UG,

29.49%,

2/05/25

.....

170

177

UG991815312UG,

29.49%,

2/05/25

.....

242

253

UG991819334UG,

29.49%,

2/05/25

.....

462

100

UG991819739UG,

29.49%,

2/05/25

.....

873

914

UG991819909UG,

29.49%,

2/05/25

.....

34

34

UG991820737UG,

29.49%,

2/05/25

.....

182

189

UG991820976UG,

29.49%,

2/05/25

.....

453

335

UG991822456UG,

29.49%,

2/05/25

.....

105

73

UG991823481UG,

29.49%,

2/05/25

.....

165

11

UG991831731UG,

29.49%,

2/05/25

.....

79

80

UG991839936UG,

29.49%,

2/05/25

.....

50

49

UG991841623UG,

29.49%,

2/05/25

.....

676

705

UG991842723UG,

29.49%,

2/05/25

.....

125

131

UG991844850UG,

29.49%,

2/05/25

.....

106

111

UG991847860UG,

29.49%,

2/05/25

.....

150

35

UG991850751UG,

29.49%,

2/05/25

.....

202

212

UG991853314UG,

29.49%,

2/05/25

.....

120

125

UG991857355UG,

29.49%,

2/05/25

.....

99

103

UG991857915UG,

29.49%,

2/05/25

.....

406

98

UG991862214UG,

29.49%,

2/05/25

.....

34

34

UG991872236UG,

29.49%,

2/05/25

.....

228

14

UG991875302UG,

29.49%,

2/05/25

.....

110

25

UG991884966UG,

29.49%,

2/05/25

.....

232

55

UG991891596UG,

29.49%,

2/05/25

.....

27

28

UG991896775UG,

29.49%,

2/05/25

.....

21

21

UG991900261UG,

29.49%,

2/05/25

.....

170

22

UG991902380UG,

29.49%,

2/05/25

.....

15

15

UG991902591UG,

29.49%,

2/05/25

.....

252

258

UG991908115UG,

29.49%,

2/05/25

......

57

59

UG991908155UG,

29.49%,

2/05/25

.....

272

280

UG991908665UG,

29.49%,

2/05/25

.....

256

60

UG991917746UG,

29.49%,

2/05/25

.....

128

131

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991919187UG,

29.49%,

2/05/25

.....

$

184

$

188

UG991920123UG,

29.49%,

2/05/25

.....

8

8

UG991921228UG,

29.49%,

2/05/25

.....

57

59

UG991925238UG,

29.49%,

2/05/25

.....

–

–

UG991934337UG,

29.49%,

2/05/25

.....

43

44

UG991937053UG,

29.49%,

2/05/25

.....

318

331

UG991938113UG,

29.49%,

2/05/25

......

340

350

UG991704096UG,

Zero

Cpn,

2/06/25

....

254

17

UG991716238UG,

Zero

Cpn,

2/06/25

....

211

15

UG991720359UG,

Zero

Cpn,

2/06/25

....

118

8

UG991721249UG,

Zero

Cpn,

2/06/25

....

209

15

UG991723663UG,

Zero

Cpn,

2/06/25

....

965

68

UG991742896UG,

Zero

Cpn,

2/06/25

....

446

31

UG991744630UG,

Zero

Cpn,

2/06/25

....

68

5

UG991752731UG,

Zero

Cpn,

2/06/25

....

102

7

UG991765700UG,

Zero

Cpn,

2/06/25

....

143

10

UG991774875UG,

Zero

Cpn,

2/06/25

....

78

5

UG991779405UG,

Zero

Cpn,

2/06/25

....

121

8

UG991801191UG,

Zero

Cpn,

2/06/25

....

1,162

81

UG991810503UG,

Zero

Cpn,

2/06/25

....

1,275

89

UG991850883UG,

Zero

Cpn,

2/06/25

....

411

28

UG991854897UG,

Zero

Cpn,

2/06/25

....

628

43

UG991922466UG,

Zero

Cpn,

2/06/25

....

81

6

UG991945741UG,

15.97%,

2/06/25

.....

389

394

UG991941061UG,

17.99%,

2/06/25

.....

333

338

UG991700171UG,

18.97%,

2/06/25

.....

489

498

UG991873192UG,

18.97%,

2/06/25

.....

109

111

UG991699734UG,

19.21%,

2/06/25

.....

242

247

UG991716319UG,

19.21%,

2/06/25

.....

467

476

UG991786750UG,

19.21%,

2/06/25

.....

178

181

UG991883800UG,

19.21%,

2/06/25

.....

977

988

UG991701533UG,

19.8%,

2/06/25

......

272

277

UG991710752UG,

19.8%,

2/06/25

......

369

376

UG991724990UG,

19.8%,

2/06/25

......

122

122

UG991725148UG,

19.8%,

2/06/25

......

60

61

UG991689655UG,

19.99%,

2/06/25

.....

139

139

UG991698898UG,

19.99%,

2/06/25

.....

1,314

293

UG991701760UG,

19.99%,

2/06/25

.....

49

51

UG991725688UG,

19.99%,

2/06/25

.....

25

25

UG991748014UG,

19.99%,

2/06/25

.....

30

30

UG991752021UG,

19.99%,

2/06/25

.....

294

307

UG991755348UG,

19.99%,

2/06/25

.....

102

106

UG991767533UG,

19.99%,

2/06/25

.....

79

82

UG991802156UG,

19.99%,

2/06/25

.....

681

712

UG991853035UG,

19.99%,

2/06/25

.....

377

(2)

UG991919722UG,

19.99%,

2/06/25

.....

21

21

UG991714002UG,

20.46%,

2/06/25

.....

712

725

UG991754233UG,

20.46%,

2/06/25

.....

168

170

UG991801256UG,

20.46%,

2/06/25

.....

409

417

UG991829259UG,

20.46%,

2/06/25

.....

176

180

UG991863415UG,

20.46%,

2/06/25

.....

749

763

UG991718934UG,

20.97%,

2/06/25

.....

198

199

UG991699332UG,

21.46%,

2/06/25

.....

816

825

UG991714495UG,

21.46%,

2/06/25

.....

119

7

UG991751167UG,

21.46%,

2/06/25

......

9

9

UG991907895UG,

21.97%,

2/06/25

.....

4,796

4,818

UG991726288UG,

21.98%,

2/06/25

.....

176

179

UG991741410UG,

21.98%,

2/06/25

.....

278

281

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991792953UG,

21.98%,

2/06/25

.....

$

3,455

$

3,505

UG991807809UG,

21.98%,

2/06/25

.....

2,132

2,144

UG991845918UG,

21.98%,

2/06/25

.....

277

278

UG991869067UG,

21.98%,

2/06/25

.....

700

712

UG991922957UG,

21.98%,

2/06/25

.....

192

188

UG991713412UG,

22.97%,

2/06/25

.....

42

3

UG991730286UG,

22.97%,

2/06/25

.....

3,478

3,527

UG991768595UG,

22.97%,

2/06/25

.....

57

58

UG991871370UG,

22.97%,

2/06/25

.....

5,687

5,786

UG991927310UG,

22.97%,

2/06/25

.....

62

48

UG991740335UG,

23.95%,

2/06/25

.....

1,032

(23)

UG991769602UG,

23.95%,

2/06/25

.....

985

972

UG991793223UG,

23.95%,

2/06/25

.....

558

564

UG991936216UG,

23.95%,

2/06/25

.....

36

36

UG991892879UG,

25.94%,

2/06/25

.....

41

3

UG991733615UG,

27.95%,

2/06/25

.....

1,016

1,045

UG991759445UG,

27.99%,

2/06/25

.....

235

245

UG991851167UG,

27.99%,

2/06/25

......

56

58

UG991691439UG,

28.98%,

2/06/25

.....

875

891

UG991691947UG,

28.98%,

2/06/25

.....

1,798

114

UG991699864UG,

28.98%,

2/06/25

.....

1,836

1,919

UG991700105UG,

28.98%,

2/06/25

.....

98

103

UG991700313UG,

28.98%,

2/06/25

.....

92

94

UG991701200UG,

28.98%,

2/06/25

.....

91

95

UG991701698UG,

28.98%,

2/06/25

.....

172

176

UG991702178UG,

28.98%,

2/06/25

.....

96

101

UG991703127UG,

28.98%,

2/06/25

.....

430

445

UG991703634UG,

28.98%,

2/06/25

.....

255

264

UG991706049UG,

28.98%,

2/06/25

.....

130

132

UG991706891UG,

28.98%,

2/06/25

.....

82

86

UG991707490UG,

28.98%,

2/06/25

.....

102

103

UG991708571UG,

28.98%,

2/06/25

.....

229

239

UG991709010UG,

28.98%,

2/06/25

.....

526

34

UG991709238UG,

28.98%,

2/06/25

.....

159

167

UG991710098UG,

28.98%,

2/06/25

.....

111

114

UG991711651UG,

28.98%,

2/06/25

......

117

123

UG991711745UG,

28.98%,

2/06/25

......

151

158

UG991712375UG,

28.98%,

2/06/25

.....

28

28

UG991712875UG,

28.98%,

2/06/25

.....

72

75

UG991716198UG,

28.98%,

2/06/25

.....

10

10

UG991717052UG,

28.98%,

2/06/25

.....

435

453

UG991718507UG,

28.98%,

2/06/25

.....

207

216

UG991718999UG,

28.98%,

2/06/25

.....

134

134

UG991724096UG,

28.98%,

2/06/25

.....

170

178

UG991725784UG,

28.98%,

2/06/25

.....

151

158

UG991725860UG,

28.98%,

2/06/25

.....

80

83

UG991726688UG,

28.98%,

2/06/25

.....

98

69

UG991728916UG,

28.98%,

2/06/25

.....

142

144

UG991729192UG,

28.98%,

2/06/25

.....

592

619

UG991729721UG,

28.98%,

2/06/25

.....

334

344

UG991731064UG,

28.98%,

2/06/25

.....

32

32

UG991731987UG,

28.98%,

2/06/25

.....

285

290

UG991732224UG,

28.98%,

2/06/25

.....

234

234

UG991733686UG,

28.98%,

2/06/25

.....

169

175

UG991734751UG,

28.98%,

2/06/25

.....

850

873

UG991734815UG,

28.98%,

2/06/25

.....

211

220

UG991737546UG,

28.98%,

2/06/25

.....

405

419

UG991739880UG,

28.98%,

2/06/25

.....

131

130

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991743323UG,

28.98%,

2/06/25

.....

$

123

$

129

UG991746697UG,

28.98%,

2/06/25

.....

976

1,020

UG991748713UG,

28.98%,

2/06/25

.....

596

598

UG991749171UG,

28.98%,

2/06/25

.....

1,083

1,119

UG991751750UG,

28.98%,

2/06/25

.....

196

200

UG991752424UG,

28.98%,

2/06/25

.....

119

124

UG991753935UG,

28.98%,

2/06/25

.....

516

535

UG991756671UG,

28.98%,

2/06/25

.....

1,476

317

UG991756884UG,

28.98%,

2/06/25

.....

252

263

UG991757545UG,

28.98%,

2/06/25

.....

191

128

UG991758045UG,

28.98%,

2/06/25

.....

593

620

UG991762162UG,

28.98%,

2/06/25

.....

233

242

UG991766105UG,

28.98%,

2/06/25

.....

399

417

UG991766305UG,

28.98%,

2/06/25

.....

386

404

UG991766721UG,

28.98%,

2/06/25

.....

948

991

UG991770800UG,

28.98%,

2/06/25

.....

115

120

UG991773209UG,

28.98%,

2/06/25

.....

213

223

UG991773450UG,

28.98%,

2/06/25

.....

173

173

UG991776146UG,

28.98%,

2/06/25

.....

195

204

UG991777528UG,

28.98%,

2/06/25

.....

1,050

735

UG991787293UG,

28.98%,

2/06/25

.....

113

116

UG991790950UG,

28.98%,

2/06/25

.....

790

211

UG991794977UG,

28.98%,

2/06/25

.....

79

82

UG991813823UG,

28.98%,

2/06/25

.....

145

151

UG991815125UG,

28.98%,

2/06/25

.....

442

441

UG991815323UG,

28.98%,

2/06/25

.....

88

92

UG991817047UG,

28.98%,

2/06/25

.....

652

681

UG991817713UG,

28.98%,

2/06/25

.....

746

96

UG991820156UG,

28.98%,

2/06/25

.....

752

172

UG991823294UG,

28.98%,

2/06/25

.....

221

227

UG991823324UG,

28.98%,

2/06/25

.....

1,306

1,334

UG991826493UG,

28.98%,

2/06/25

.....

94

97

UG991832318UG,

28.98%,

2/06/25

.....

86

89

UG991832752UG,

28.98%,

2/06/25

.....

533

557

UG991834196UG,

28.98%,

2/06/25

.....

144

149

UG991836050UG,

28.98%,

2/06/25

.....

213

223

UG991836125UG,

28.98%,

2/06/25

.....

678

708

UG991837625UG,

28.98%,

2/06/25

.....

125

126

UG991842664UG,

28.98%,

2/06/25

.....

139

145

UG991852569UG,

28.98%,

2/06/25

.....

62

64

UG991855239UG,

28.98%,

2/06/25

.....

591

604

UG991861556UG,

28.98%,

2/06/25

.....

151

156

UG991862866UG,

28.98%,

2/06/25

.....

2,810

2,901

UG991863321UG,

28.98%,

2/06/25

.....

213

222

UG991867036UG,

28.98%,

2/06/25

.....

33

34

UG991868227UG,

28.98%,

2/06/25

.....

609

636

UG991868577UG,

28.98%,

2/06/25

.....

197

206

UG991871855UG,

28.98%,

2/06/25

.....

98

102

UG991878519UG,

28.98%,

2/06/25

.....

47

48

UG991896380UG,

28.98%,

2/06/25

.....

5,295

5,439

UG991908332UG,

28.98%,

2/06/25

.....

15

15

UG991912584UG,

28.98%,

2/06/25

.....

363

83

UG991917174UG,

28.98%,

2/06/25

.....

182

41

UG991917185UG,

28.98%,

2/06/25

.....

162

166

UG991926157UG,

28.98%,

2/06/25

.....

203

25

UG991930551UG,

28.98%,

2/06/25

.....

315

325

UG991934063UG,

28.98%,

2/06/25

.....

69

72

UG991704035UG,

29.45%,

2/06/25

.....

240

249

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

111

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991848757UG,

29.45%,

2/06/25

.....

$

2,400

$

2,480

UG991712510UG,

29.47%,

2/06/25

.....

254

266

UG991830702UG,

29.48%,

2/06/25

.....

138

18

UG991690486UG,

29.49%,

2/06/25

.....

822

836

UG991690939UG,

29.49%,

2/06/25

.....

1,080

1,132

UG991700095UG,

29.49%,

2/06/25

.....

173

177

UG991700980UG,

29.49%,

2/06/25

.....

424

436

UG991701070UG,

29.49%,

2/06/25

.....

89

6

UG991701366UG,

29.49%,

2/06/25

.....

553

579

UG991702235UG,

29.49%,

2/06/25

.....

22

22

UG991704419UG,

29.49%,

2/06/25

.....

243

255

UG991704708UG,

29.49%,

2/06/25

.....

252

263

UG991705352UG,

29.49%,

2/06/25

.....

112

26

UG991706683UG,

29.49%,

2/06/25

.....

72

73

UG991707381UG,

29.49%,

2/06/25

.....

209

213

UG991707856UG,

29.49%,

2/06/25

.....

150

151

UG991708109UG,

29.49%,

2/06/25

.....

151

158

UG991708283UG,

29.49%,

2/06/25

.....

80

84

UG991708927UG,

29.49%,

2/06/25

.....

127

130

UG991709403UG,

29.49%,

2/06/25

.....

250

(11)

UG991709656UG,

29.49%,

2/06/25

.....

463

477

UG991712333UG,

29.49%,

2/06/25

.....

121

118

UG991712745UG,

29.49%,

2/06/25

.....

111

116

UG991713273UG,

29.49%,

2/06/25

.....

26

26

UG991715228UG,

29.49%,

2/06/25

.....

224

157

UG991715596UG,

29.49%,

2/06/25

.....

1,115

1,147

UG991717099UG,

29.49%,

2/06/25

.....

50

51

UG991717494UG,

29.49%,

2/06/25

.....

31

31

UG991718002UG,

29.49%,

2/06/25

.....

144

151

UG991719419UG,

29.49%,

2/06/25

.....

288

301

UG991721139UG,

29.49%,

2/06/25

......

215

225

UG991721483UG,

29.49%,

2/06/25

.....

60

62

UG991725507UG,

29.49%,

2/06/25

.....

277

290

UG991725736UG,

29.49%,

2/06/25

.....

78

82

UG991728380UG,

29.49%,

2/06/25

.....

198

207

UG991728473UG,

29.49%,

2/06/25

.....

1,289

1,333

UG991729831UG,

29.49%,

2/06/25

.....

204

209

UG991730113UG,

29.49%,

2/06/25

......

210

220

UG991730563UG,

29.49%,

2/06/25

.....

418

433

UG991734435UG,

29.49%,

2/06/25

.....

117

123

UG991735284UG,

29.49%,

2/06/25

.....

165

172

UG991737002UG,

29.49%,

2/06/25

.....

71

18

UG991737780UG,

29.49%,

2/06/25

.....

15

15

UG991738035UG,

29.49%,

2/06/25

.....

89

93

UG991738990UG,

29.49%,

2/06/25

.....

634

630

UG991743460UG,

29.49%,

2/06/25

.....

8

8

UG991746112UG,

29.49%,

2/06/25

......

515

539

UG991746952UG,

29.49%,

2/06/25

.....

291

304

UG991747607UG,

29.49%,

2/06/25

.....

147

155

UG991749942UG,

29.49%,

2/06/25

.....

358

376

UG991753304UG,

29.49%,

2/06/25

.....

70

70

UG991754744UG,

29.49%,

2/06/25

.....

242

249

UG991755326UG,

29.49%,

2/06/25

.....

50

15

UG991755928UG,

29.49%,

2/06/25

.....

217

50

UG991757142UG,

29.49%,

2/06/25

.....

90

90

UG991757332UG,

29.49%,

2/06/25

.....

68

68

UG991759741UG,

29.49%,

2/06/25

.....

282

296

UG991764353UG,

29.49%,

2/06/25

.....

17

17

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991766972UG,

29.49%,

2/06/25

.....

$

70

$

73

UG991767120UG,

29.49%,

2/06/25

.....

48

48

UG991767728UG,

29.49%,

2/06/25

.....

165

172

UG991769688UG,

29.49%,

2/06/25

.....

322

337

UG991769928UG,

29.49%,

2/06/25

.....

271

278

UG991771068UG,

29.49%,

2/06/25

.....

101

23

UG991784966UG,

29.49%,

2/06/25

.....

25

25

UG991791088UG,

29.49%,

2/06/25

.....

41

3

UG991796673UG,

29.49%,

2/06/25

.....

199

201

UG991797405UG,

29.49%,

2/06/25

.....

112

83

UG991798596UG,

29.49%,

2/06/25

.....

103

104

UG991800849UG,

29.49%,

2/06/25

.....

63

17

UG991804605UG,

29.49%,

2/06/25

.....

21

21

UG991806859UG,

29.49%,

2/06/25

.....

20

20

UG991812212UG,

29.49%,

2/06/25

.....

133

134

UG991812574UG,

29.49%,

2/06/25

.....

109

115

UG991815396UG,

29.49%,

2/06/25

.....

130

30

UG991815674UG,

29.49%,

2/06/25

.....

369

376

UG991816101UG,

29.49%,

2/06/25

.....

160

168

UG991818985UG,

29.49%,

2/06/25

.....

50

51

UG991821554UG,

29.49%,

2/06/25

.....

101

106

UG991825654UG,

29.49%,

2/06/25

.....

170

178

UG991826190UG,

29.49%,

2/06/25

.....

74

77

UG991826917UG,

29.49%,

2/06/25

.....

447

467

UG991834402UG,

29.49%,

2/06/25

.....

94

98

UG991834986UG,

29.49%,

2/06/25

.....

356

376

UG991835940UG,

29.49%,

2/06/25

.....

143

150

UG991836634UG,

29.49%,

2/06/25

.....

119

121

UG991844028UG,

29.49%,

2/06/25

.....

1,952

2,036

UG991848072UG,

29.49%,

2/06/25

.....

135

141

UG991850107UG,

29.49%,

2/06/25

.....

46

40

UG991852176UG,

29.49%,

2/06/25

.....

107

112

UG991854157UG,

29.49%,

2/06/25

.....

355

372

UG991855511UG,

29.49%,

2/06/25

......

38

39

UG991860077UG,

29.49%,

2/06/25

.....

8

8

UG991862203UG,

29.49%,

2/06/25

.....

20

20

UG991862795UG,

29.49%,

2/06/25

.....

1,066

1,106

UG991863987UG,

29.49%,

2/06/25

.....

878

659

UG991865117UG,

29.49%,

2/06/25

......

313

327

UG991865504UG,

29.49%,

2/06/25

.....

13

13

UG991869807UG,

29.49%,

2/06/25

.....

125

131

UG991870451UG,

29.49%,

2/06/25

.....

94

97

UG991871207UG,

29.49%,

2/06/25

.....

–

–

UG991873395UG,

29.49%,

2/06/25

.....

37

37

UG991873746UG,

29.49%,

2/06/25

.....

65

5

UG991875332UG,

29.49%,

2/06/25

.....

–

–

UG991877935UG,

29.49%,

2/06/25

.....

35

5

UG991886716UG,

29.49%,

2/06/25

.....

101

105

UG991896068UG,

29.49%,

2/06/25

.....

54

55

UG991908415UG,

29.49%,

2/06/25

.....

57

59

UG991914065UG,

29.49%,

2/06/25

.....

138

142

UG991919465UG,

29.49%,

2/06/25

.....

33

33

UG991928851UG,

29.49%,

2/06/25

.....

1,877

432

UG991933771UG,

29.49%,

2/06/25

.....

220

50

UG991934546UG,

29.49%,

2/06/25

.....

102

103

UG991938491UG,

29.49%,

2/06/25

.....

493

509

UG991708677UG,

Zero

Cpn,

2/07/25

....

967

67

UG991715117UG,

Zero

Cpn,

2/07/25

....

599

42

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991717657UG,

Zero

Cpn,

2/07/25

....

$

2,040

$

142

UG991718456UG,

Zero

Cpn,

2/07/25

....

357

25

UG991737147UG,

Zero

Cpn,

2/07/25

....

92

6

UG991747846UG,

Zero

Cpn,

2/07/25

....

36

2

UG991757521UG,

Zero

Cpn,

2/07/25

....

15

1

UG991765277UG,

Zero

Cpn,

2/07/25

....

31

2

UG991783819UG,

Zero

Cpn,

2/07/25

....

343

24

UG991787510UG,

Zero

Cpn,

2/07/25

....

184

13

UG991794634UG,

Zero

Cpn,

2/07/25

....

1,597

110

UG991810153UG,

Zero

Cpn,

2/07/25

....

157

11

UG991836016UG,

Zero

Cpn,

2/07/25

....

3,719

254

UG991912493UG,

Zero

Cpn,

2/07/25

....

901

62

UG991924576UG,

Zero

Cpn,

2/07/25

....

231

16

UG991937488UG,

Zero

Cpn,

2/07/25

....

737

51

UG991736213UG,

14.98%,

2/07/25

.....

339

344

UG991738550UG,

17.99%,

2/07/25

.....

230

230

UG991860327UG,

17.99%,

2/07/25

.....

830

831

UG991933227UG,

17.99%,

2/07/25

.....

45

46

UG991827281UG,

18.97%,

2/07/25

.....

101

102

UG991905123UG,

18.97%,

2/07/25

.....

115

116

UG991748413UG,

19.21%,

2/07/25

.....

446

447

UG991783290UG,

19.21%,

2/07/25

.....

266

271

UG991818350UG,

19.21%,

2/07/25

.....

–

–

UG991874943UG,

19.21%,

2/07/25

.....

194

195

UG991924115UG,

19.21%,

2/07/25

......

81

82

UG991834369UG,

19.8%,

2/07/25

......

340

347

UG991733738UG,

19.99%,

2/07/25

.....

29

30

UG991744988UG,

19.99%,

2/07/25

.....

7

7

UG991808111UG,

19.99%,

2/07/25

......

32

3

UG991856601UG,

19.99%,

2/07/25

.....

309

323

UG991929262UG,

19.99%,

2/07/25

.....

98

101

UG991929766UG,

19.99%,

2/07/25

.....

147

151

UG991770272UG,

20.46%,

2/07/25

.....

478

486

UG991868003UG,

20.46%,

2/07/25

.....

234

239

UG991714732UG,

21.46%,

2/07/25

.....

14

14

UG991922854UG,

21.46%,

2/07/25

.....

36

36

UG991711288UG,

21.98%,

2/07/25

......

155

158

UG991802598UG,

21.98%,

2/07/25

.....

2,147

2,172

UG991843735UG,

21.98%,

2/07/25

.....

427

92

UG991736467UG,

22.97%,

2/07/25

.....

337

343

UG991772252UG,

23.95%,

2/07/25

.....

1,396

1,420

UG991762975UG,

25.95%,

2/07/25

.....

354

360

UG991709714UG,

27.99%,

2/07/25

.....

62

64

UG991748191UG,

27.99%,

2/07/25

.....

230

158

UG991785599UG,

27.99%,

2/07/25

.....

339

339

UG991800353UG,

27.99%,

2/07/25

.....

81

85

UG991880949UG,

27.99%,

2/07/25

.....

60

62

UG991901076UG,

27.99%,

2/07/25

.....

296

301

UG991697103UG,

28.98%,

2/07/25

.....

347

357

UG991697441UG,

28.98%,

2/07/25

.....

56

55

UG991705793UG,

28.98%,

2/07/25

.....

389

400

UG991705973UG,

28.98%,

2/07/25

.....

172

180

UG991706813UG,

28.98%,

2/07/25

.....

390

407

UG991707358UG,

28.98%,

2/07/25

.....

101

106

UG991708937UG,

28.98%,

2/07/25

.....

186

192

UG991708989UG,

28.98%,

2/07/25

.....

212

217

UG991709240UG,

28.98%,

2/07/25

.....

45

(2)

UG991710379UG,

28.98%,

2/07/25

.....

231

242

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991710718UG,

28.98%,

2/07/25

.....

$

98

$

99

UG991710868UG,

28.98%,

2/07/25

.....

115

117

UG991712303UG,

28.98%,

2/07/25

.....

156

163

UG991712542UG,

28.98%,

2/07/25

.....

69

72

UG991712781UG,

28.98%,

2/07/25

.....

54

54

UG991712922UG,

28.98%,

2/07/25

.....

117

122

UG991716650UG,

28.98%,

2/07/25

.....

75

56

UG991717771UG,

28.98%,

2/07/25

.....

255

263

UG991722877UG,

28.98%,

2/07/25

.....

158

20

UG991724076UG,

28.98%,

2/07/25

.....

86

90

UG991724273UG,

28.98%,

2/07/25

.....

1,183

1,236

UG991724529UG,

28.98%,

2/07/25

.....

1,329

1,388

UG991727635UG,

28.98%,

2/07/25

.....

226

236

UG991728955UG,

28.98%,

2/07/25

.....

341

349

UG991731435UG,

28.98%,

2/07/25

.....

179

188

UG991735485UG,

28.98%,

2/07/25

.....

134

96

UG991739386UG,

28.98%,

2/07/25

.....

284

297

UG991740286UG,

28.98%,

2/07/25

.....

717

750

UG991743968UG,

28.98%,

2/07/25

.....

410

429

UG991744414UG,

28.98%,

2/07/25

.....

7

7

UG991747615UG,

28.98%,

2/07/25

.....

502

525

UG991751480UG,

28.98%,

2/07/25

.....

51

52

UG991755398UG,

28.98%,

2/07/25

.....

96

100

UG991755903UG,

28.98%,

2/07/25

.....

180

187

UG991755938UG,

28.98%,

2/07/25

.....

304

39

UG991760350UG,

28.98%,

2/07/25

.....

187

188

UG991762771UG,

28.98%,

2/07/25

.....

19

19

UG991772287UG,

28.98%,

2/07/25

.....

357

374

UG991773314UG,

28.98%,

2/07/25

.....

624

(27)

UG991774768UG,

28.98%,

2/07/25

.....

2,102

2,179

UG991782506UG,

28.98%,

2/07/25

.....

3,572

3,736

UG991783617UG,

28.98%,

2/07/25

.....

308

321

UG991784791UG,

28.98%,

2/07/25

.....

199

205

UG991792456UG,

28.98%,

2/07/25

.....

61

(3)

UG991796956UG,

28.98%,

2/07/25

.....

92

96

UG991799326UG,

28.98%,

2/07/25

.....

505

523

UG991799442UG,

28.98%,

2/07/25

.....

901

934

UG991801184UG,

28.98%,

2/07/25

......

1,995

2,086

UG991803039UG,

28.98%,

2/07/25

.....

683

713

UG991805595UG,

28.98%,

2/07/25

.....

53

55

UG991806653UG,

28.98%,

2/07/25

.....

238

241

UG991807039UG,

28.98%,

2/07/25

.....

278

289

UG991807123UG,

28.98%,

2/07/25

.....

463

463

UG991809459UG,

28.98%,

2/07/25

.....

54

56

UG991810591UG,

28.98%,

2/07/25

.....

26

26

UG991811191UG,

28.98%,

2/07/25

......

1,069

1,092

UG991814223UG,

28.98%,

2/07/25

.....

129

135

UG991830675UG,

28.98%,

2/07/25

.....

161

168

UG991835648UG,

28.98%,

2/07/25

.....

142

149

UG991836592UG,

28.98%,

2/07/25

.....

475

474

UG991838148UG,

28.98%,

2/07/25

.....

494

66

UG991838996UG,

28.98%,

2/07/25

.....

181

182

UG991840095UG,

28.98%,

2/07/25

.....

60

16

UG991843451UG,

28.98%,

2/07/25

.....

23

24

UG991849419UG,

28.98%,

2/07/25

.....

434

452

UG991852363UG,

28.98%,

2/07/25

.....

65

67

UG991854042UG,

28.98%,

2/07/25

.....

177

185

UG991854543UG,

28.98%,

2/07/25

.....

175

181

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

113

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991875987UG,

28.98%,

2/07/25

.....

$

308

$

310

UG991882872UG,

28.98%,

2/07/25

.....

268

276

UG991884000UG,

28.98%,

2/07/25

.....

892

890

UG991891982UG,

28.98%,

2/07/25

.....

–

–

UG991892302UG,

28.98%,

2/07/25

.....

55

56

UG991897778UG,

28.98%,

2/07/25

.....

561

65

UG991907273UG,

28.98%,

2/07/25

.....

353

365

UG991922608UG,

28.98%,

2/07/25

.....

220

222

UG991935487UG,

28.98%,

2/07/25

.....

103

107

UG991727371UG,

29.46%,

2/07/25

.....

115

120

UG991709575UG,

29.48%,

2/07/25

.....

253

267

UG991745671UG,

29.48%,

2/07/25

.....

15

15

UG991693038UG,

29.49%,

2/07/25

.....

1,998

479

UG991695755UG,

29.49%,

2/07/25

.....

159

12

UG991705451UG,

29.49%,

2/07/25

.....

271

(11)

UG991705974UG,

29.49%,

2/07/25

.....

575

583

UG991705983UG,

29.49%,

2/07/25

.....

131

(6)

UG991707049UG,

29.49%,

2/07/25

.....

164

172

UG991707186UG,

29.49%,

2/07/25

.....

280

286

UG991707394UG,

29.49%,

2/07/25

.....

712

(53)

UG991707574UG,

29.49%,

2/07/25

.....

84

85

UG991708039UG,

29.49%,

2/07/25

.....

414

288

UG991709608UG,

29.49%,

2/07/25

.....

228

235

UG991709722UG,

29.49%,

2/07/25

.....

519

533

UG991710141UG,

29.49%,

2/07/25

.....

1

1

UG991710253UG,

29.49%,

2/07/25

.....

37

(2)

UG991711259UG,

29.49%,

2/07/25

......

134

18

UG991712449UG,

29.49%,

2/07/25

.....

149

157

UG991712587UG,

29.49%,

2/07/25

.....

508

522

UG991712867UG,

29.49%,

2/07/25

.....

78

77

UG991712892UG,

29.49%,

2/07/25

.....

254

258

UG991713180UG,

29.49%,

2/07/25

.....

1,558

1,623

UG991713198UG,

29.49%,

2/07/25

.....

42

43

UG991713851UG,

29.49%,

2/07/25

.....

99

13

UG991714825UG,

29.49%,

2/07/25

.....

61

64

UG991715086UG,

29.49%,

2/07/25

.....

38

38

UG991717543UG,

29.49%,

2/07/25

.....

149

157

UG991718167UG,

29.49%,

2/07/25

.....

108

114

UG991719583UG,

29.49%,

2/07/25

.....

576

604

UG991720150UG,

29.49%,

2/07/25

.....

361

366

UG991721040UG,

29.49%,

2/07/25

.....

107

113

UG991721496UG,

29.49%,

2/07/25

.....

97

103

UG991723604UG,

29.49%,

2/07/25

.....

307

313

UG991726856UG,

29.49%,

2/07/25

.....

43

44

UG991728336UG,

29.49%,

2/07/25

.....

52

53

UG991729210UG,

29.49%,

2/07/25

.....

623

646

UG991729425UG,

29.49%,

2/07/25

.....

5

1

UG991729445UG,

29.49%,

2/07/25

.....

76

80

UG991729754UG,

29.49%,

2/07/25

.....

1,006

1,036

UG991729898UG,

29.49%,

2/07/25

.....

70

73

UG991730072UG,

29.49%,

2/07/25

.....

1,061

1,118

UG991730418UG,

29.49%,

2/07/25

.....

1,148

1,195

UG991733135UG,

29.49%,

2/07/25

.....

2,956

3,054

UG991733378UG,

29.49%,

2/07/25

.....

550

562

UG991734242UG,

29.49%,

2/07/25

.....

186

192

UG991734487UG,

29.49%,

2/07/25

.....

263

277

UG991734975UG,

29.49%,

2/07/25

.....

74

77

UG991735633UG,

29.49%,

2/07/25

.....

3

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991735751UG,

29.49%,

2/07/25

.....

$

118

$

124

UG991735777UG,

29.49%,

2/07/25

.....

30

30

UG991735915UG,

29.49%,

2/07/25

.....

274

287

UG991736815UG,

29.49%,

2/07/25

.....

1,191

1,248

UG991736857UG,

29.49%,

2/07/25

.....

1,210

1,269

UG991737666UG,

29.49%,

2/07/25

.....

200

201

UG991738244UG,

29.49%,

2/07/25

.....

111

110

UG991738742UG,

29.49%,

2/07/25

.....

55

57

UG991741355UG,

29.49%,

2/07/25

.....

59

61

UG991745513UG,

29.49%,

2/07/25

.....

241

246

UG991745593UG,

29.49%,

2/07/25

.....

479

477

UG991745877UG,

29.49%,

2/07/25

.....

281

36

UG991747860UG,

29.49%,

2/07/25

.....

41

41

UG991749700UG,

29.49%,

2/07/25

.....

59

17

UG991751851UG,

29.49%,

2/07/25

.....

51

52

UG991754591UG,

29.49%,

2/07/25

.....

119

89

UG991755174UG,

29.49%,

2/07/25

.....

153

160

UG991759359UG,

29.49%,

2/07/25

.....

528

552

UG991759641UG,

29.49%,

2/07/25

.....

145

152

UG991759993UG,

29.49%,

2/07/25

.....

210

220

UG991760081UG,

29.49%,

2/07/25

.....

137

145

UG991761633UG,

29.49%,

2/07/25

.....

117

123

UG991763762UG,

29.49%,

2/07/25

.....

79

11

UG991766156UG,

29.49%,

2/07/25

.....

31

2

UG991767771UG,

29.49%,

2/07/25

.....

515

67

UG991770714UG,

29.49%,

2/07/25

.....

152

20

UG991770778UG,

29.49%,

2/07/25

.....

60

61

UG991771328UG,

29.49%,

2/07/25

.....

199

44

UG991771961UG,

29.49%,

2/07/25

.....

145

152

UG991774019UG,

29.49%,

2/07/25

.....

19

19

UG991777257UG,

29.49%,

2/07/25

.....

109

113

UG991778724UG,

29.49%,

2/07/25

.....

113

116

UG991778729UG,

29.49%,

2/07/25

.....

70

73

UG991778741UG,

29.49%,

2/07/25

.....

256

256

UG991782212UG,

29.49%,

2/07/25

.....

326

338

UG991784501UG,

29.49%,

2/07/25

.....

86

11

UG991787617UG,

29.49%,

2/07/25

.....

83

88

UG991788685UG,

29.49%,

2/07/25

.....

633

648

UG991790908UG,

29.49%,

2/07/25

.....

664

45

UG991791306UG,

29.49%,

2/07/25

.....

119

122

UG991792553UG,

29.49%,

2/07/25

.....

267

275

UG991794594UG,

29.49%,

2/07/25

.....

43

43

UG991795473UG,

29.49%,

2/07/25

.....

186

187

UG991799844UG,

29.49%,

2/07/25

.....

62

65

UG991805572UG,

29.49%,

2/07/25

.....

2

2

UG991807111UG,

29.49%,

2/07/25

......

108

109

UG991808521UG,

29.49%,

2/07/25

.....

498

524

UG991809177UG,

29.49%,

2/07/25

.....

256

263

UG991809318UG,

29.49%,

2/07/25

.....

122

128

UG991813864UG,

29.49%,

2/07/25

.....

49

51

UG991815263UG,

29.49%,

2/07/25

.....

277

288

UG991815974UG,

29.49%,

2/07/25

.....

88

68

UG991818057UG,

29.49%,

2/07/25

.....

149

152

UG991819733UG,

29.49%,

2/07/25

.....

31

31

UG991827340UG,

29.49%,

2/07/25

.....

963

950

UG991832087UG,

29.49%,

2/07/25

.....

113

119

UG991834751UG,

29.49%,

2/07/25

.....

45

46

UG991837440UG,

29.49%,

2/07/25

.....

652

673

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991842138UG,

29.49%,

2/07/25

.....

$

178

$

176

UG991842816UG,

29.49%,

2/07/25

.....

175

183

UG991843151UG,

29.49%,

2/07/25

.....

647

652

UG991843726UG,

29.49%,

2/07/25

.....

532

557

UG991843750UG,

29.49%,

2/07/25

.....

53

55

UG991846574UG,

29.49%,

2/07/25

.....

9

9

UG991848358UG,

29.49%,

2/07/25

.....

249

261

UG991848794UG,

29.49%,

2/07/25

.....

52

53

UG991852183UG,

29.49%,

2/07/25

.....

9

9

UG991852313UG,

29.49%,

2/07/25

.....

–

–

UG991852346UG,

29.49%,

2/07/25

.....

178

187

UG991853938UG,

29.49%,

2/07/25

.....

2,131

2,239

UG991857024UG,

29.49%,

2/07/25

.....

151

154

UG991858094UG,

29.49%,

2/07/25

.....

212

224

UG991860322UG,

29.49%,

2/07/25

.....

133

139

UG991868612UG,

29.49%,

2/07/25

.....

150

153

UG991880489UG,

29.49%,

2/07/25

.....

7

7

UG991883200UG,

29.49%,

2/07/25

.....

489

510

UG991887494UG,

29.49%,

2/07/25

.....

96

99

UG991887497UG,

29.49%,

2/07/25

.....

781

806

UG991895165UG,

29.49%,

2/07/25

.....

–

–

UG991895721UG,

29.49%,

2/07/25

.....

194

190

UG991908268UG,

29.49%,

2/07/25

.....

142

146

UG991913870UG,

29.49%,

2/07/25

.....

1,268

1,289

UG991914240UG,

29.49%,

2/07/25

.....

312

321

UG991918574UG,

29.49%,

2/07/25

.....

304

315

UG991918743UG,

29.49%,

2/07/25

.....

674

86

UG991924888UG,

29.49%,

2/07/25

.....

131

136

UG991927085UG,

29.49%,

2/07/25

.....

170

12

UG991928759UG,

29.49%,

2/07/25

.....

14

14

UG991930808UG,

29.49%,

2/07/25

.....

657

685

UG991783643UG,

14.98%,

2/08/25

.....

1,326

1,353

UG991895441UG,

14.98%,

2/08/25

.....

911

561

UG991946691UG,

14.98%,

2/08/25

.....

46

47

UG991802379UG,

15.97%,

2/08/25

.....

335

342

UG991834646UG,

15.97%,

2/08/25

.....

1,802

1,839

UG991904951UG,

15.97%,

2/08/25

.....

229

232

UG991908489UG,

15.97%,

2/08/25

.....

332

339

UG991917251UG,

15.97%,

2/08/25

.....

264

268

UG991771363UG,

16.99%,

2/08/25

.....

1,684

1,719

UG991784207UG,

16.99%,

2/08/25

.....

202

206

UG991894055UG,

16.99%,

2/08/25

.....

202

206

UG991905481UG,

16.99%,

2/08/25

.....

137

139

UG991721411UG,

17.99%,

2/08/25

......

676

689

UG991731306UG,

17.99%,

2/08/25

.....

10,507

10,722

UG991746485UG,

17.99%,

2/08/25

.....

36

37

UG991868983UG,

17.99%,

2/08/25

.....

275

281

UG991717470UG,

19.21%,

2/08/25

.....

220

222

UG991723395UG,

19.21%,

2/08/25

.....

147

11

UG991715823UG,

19.8%,

2/08/25

......

75

74

UG991729717UG,

19.8%,

2/08/25

......

20

20

UG991716580UG,

20.46%,

2/08/25

.....

452

96

UG991716805UG,

22.97%,

2/08/25

.....

365

26

UG991785523UG,

Zero

Cpn,

2/09/25

....

164

12

UG991809543UG,

Zero

Cpn,

2/09/25

....

260

18

UG991830380UG,

Zero

Cpn,

2/09/25

....

203

14

UG991724869UG,

15%,

2/09/25

........

853

871

UG991746108UG,

15%,

2/09/25

........

275

274

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991746306UG,

15%,

2/09/25

........

$

920

$

925

UG991862382UG,

15%,

2/09/25

........

100

103

UG991908452UG,

15%,

2/09/25

........

1,985

2,026

UG991929779UG,

15%,

2/09/25

........

48

49

UG991781627UG,

15.97%,

2/09/25

.....

368

375

UG991719973UG,

16.99%,

2/09/25

.....

203

207

UG991721989UG,

16.99%,

2/09/25

.....

405

414

UG991778289UG,

16.99%,

2/09/25

.....

772

788

UG991783787UG,

16.99%,

2/09/25

.....

674

688

UG991784826UG,

16.99%,

2/09/25

.....

703

712

UG991863273UG,

16.99%,

2/09/25

.....

1,006

1,027

UG991741247UG,

17.97%,

2/09/25

.....

680

694

UG991724932UG,

17.99%,

2/09/25

.....

37

38

UG991764270UG,

17.99%,

2/09/25

.....

348

355

UG991806884UG,

17.99%,

2/09/25

.....

148

151

UG991867276UG,

17.99%,

2/09/25

.....

188

190

UG991710560UG,

28.98%,

3/05/25

.....

530

390

UG991547229UG,

29.49%,

3/15/25

.....

405

424

UG991720895UG,

16.99%,

3/19/25

.....

4,022

2,613

UG991692427UG,

29.49%,

3/21/25

.....

295

53

UG991693195UG,

29.49%,

3/22/25

.....

–

–

UG991654581UG,

18.97%,

3/26/25

.....

277

63

UG991762048UG,

18.97%,

4/06/25

.....

168

171

UG991789710UG,

29.49%,

4/06/25

.....

372

(36)

UG991550463UG,

19.99%,

5/17/25

.....

1,373

1,002

UG991585964UG,

28.98%,

5/22/25

.....

522

378

UG991772904UG,

19.99%,

6/05/25

.....

144

105

UG991667408UG,

17.97%,

7/02/25

.....

142

98

UG991826636UG,

19.99%,

7/03/25

.....

687

487

UG991726591UG,

28.98%,

7/03/25

.....

192

136

UG991764922UG,

28.98%,

7/05/25

.....

133

94

UG991694848UG,

29.49%,

7/05/25

.....

1,163

826

UG991640372UG,

29.45%,

7/15/25

.....

488

346

UG991788566UG,

29.49%,

7/21/25

.....

94

67

UG991922928UG,

28.98%,

8/04/25

.....

173

123

UG991700916UG,

29.49%,

8/06/25

.....

1,210

859

UG991814652UG,

29.49%,

9/05/25

.....

89

64

UG991688747UG,

28.98%,

9/16/25

.....

91

63

UG991595841UG,

29.49%,

9/17/25

.....

146

103

UG991708117UG,

29.49%,

9/17/25

......

1,452

1,012

UG991735384UG,

29.49%,

10/06/25

....

360

251

UG991726248UG,

21.46%,

10/08/25

....

162

111

UG991686979UG,

29.49%,

12/04/25

....

695

491

UG991723599UG,

29.49%,

12/06/25

....

99

71

UG991709780UG,

27.99%,

1/03/26

.....

217

148

UG991708261UG,

29.49%,

1/04/26

.....

668

458

UG991699796UG,

29.49%,

1/06/26

.....

108

76

UG991771666UG,

29.49%,

4/16/26

.....

420

270

UG991722674UG,

28.98%,

6/07/26

.....

149

98

UG991719643UG,

29.49%,

7/22/26

.....

150

98

UG991658250UG,

16.99%,

1/20/27

.....

1,789

1,825

UG991607046UG,

21.99%,

1/20/27

.....

3,814

3,938

UG991630410UG,

22.36%,

1/26/27

.....

993

1,021

UG991784156UG,

22.36%,

1/26/27

.....

773

411

UG991611832UG,

16.99%,

1/29/27

......

1,281

1,332

UG991624113UG,

17.99%,

1/29/27

......

462

465

UG991610886UG,

18.98%,

1/29/27

.....

2,046

2,138

UG991664785UG,

18.98%,

1/29/27

.....

276

288

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

115

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991678457UG,

19.99%,

1/31/27

.....

$

480

$

268

UG991663324UG,

22.36%,

1/31/27

.....

159

89

UG991676761UG,

16.99%,

2/02/27

.....

982

980

UG991721939UG,

16.99%,

2/02/27

.....

1,177

1,219

UG991734117UG,

17.99%,

2/02/27

......

408

417

UG991734377UG,

17.99%,

2/02/27

.....

55

56

UG991684567UG,

15.99%,

2/03/27

.....

374

383

UG991894965UG,

16.99%,

2/03/27

.....

5,000

5,133

UG991885330UG,

Zero

Cpn,

7/05/27

....

(4)

(4)

UG991753799UG,

29.49%,

9/05/27

.....

–

–

UG991715996UG,

Zero

Cpn,

9/06/27

....

–

–

UG991742233UG,

Zero

Cpn,

9/06/27

....

8

1

UG991713761UG,

Zero

Cpn,

10/05/27

...

7

1

UG991709462UG,

Zero

Cpn,

10/06/27

...

13

1

UG991648817UG,

19.99%,

10/17/27

....

–

–

UG991594819UG,

28.48%,

10/17/27

....

–

–

UG991643179UG,

29.48%,

10/17/27

....

–

–

UG991717801UG,

Zero

Cpn,

11/06/27

...

2

–

UG991830029UG,

28.98%,

11/06/27

.....

–

–

UG991651773UG,

29.49%,

11/16/27

.....

6

–

UG991636984UG,

Zero

Cpn,

11/17/27

...

1

–

UG991741386UG,

Zero

Cpn,

11/17/27

...

1

–

UG991619508UG,

29.49%,

11/17/27

.....

–

–

UG991650331UG,

Zero

Cpn,

11/23/27

...

16

1

UG991595187UG,

Zero

Cpn,

11/24/27

...

–

–

UG991733288UG,

29.49%,

12/05/27

....

–

–

UG991757963UG,

29.49%,

12/05/27

....

–

–

UG991884438UG,

29.49%,

12/05/27

....

–

–

UG991800876UG,

Zero

Cpn,

12/06/27

...

3

–

UG991705248UG,

28.48%,

12/06/27

....

–

–

UG991803197UG,

28.98%,

12/07/27

....

–

–

UG991925769UG,

29.49%,

12/07/27

....

–

–

UG991607820UG,

29.48%,

12/15/27

....

–

–

UG991764374UG,

28.98%,

12/16/27

....

5

5

UG991598888UG,

Zero

Cpn,

12/17/27

...

4

–

UG991568266UG,

29.46%,

12/17/27

....

–

–

UG991668483UG,

29.49%,

12/18/27

....

18

–

UG991686992UG,

Zero

Cpn,

12/20/27

...

5

–

UG991677444UG,

Zero

Cpn,

12/21/27

...

4

–

UG991595329UG,

Zero

Cpn,

12/24/27

...

16

1

UG991646515UG,

29.49%,

12/24/27

....

13

1

UG991911379UG,

28.98%,

1/03/28

......

2

2

UG991773527UG,

28.48%,

1/05/28

.....

–

–

UG991816825UG,

29.49%,

1/05/28

.....

–

–

UG991699874UG,

Zero

Cpn,

1/06/28

....

14

1

UG991902084UG,

Zero

Cpn,

1/07/28

....

12

1

UG991697530UG,

Zero

Cpn,

1/18/28

....

5

–

UG991646401UG,

29.49%,

1/20/28

.....

41

43

UG991797472UG,

Zero

Cpn,

1/21/28

....

6

–

UG991683577UG,

28.48%,

1/21/28

.....

–

–

UG991592816UG,

28.98%,

1/21/28

.....

1

–

UG991824433UG,

29.49%,

1/21/28

.....

–

–

UG991794499UG,

20.96%,

1/22/28

.....

1

–

UG991766090UG,

Zero

Cpn,

1/23/28

....

8

1

UG991717234UG,

29.49%,

1/24/28

.....

142

109

UG991922017UG,

Zero

Cpn,

2/04/28

....

2

–

UG991695683UG,

Zero

Cpn,

2/05/28

....

–

–

UG991923888UG,

Zero

Cpn,

2/05/28

....

14

1

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991693368UG,

29.49%,

2/05/28

.....

$

–

$

–

UG991927325UG,

29.49%,

2/05/28

.....

1

1

UG991705947UG,

Zero

Cpn,

2/06/28

....

47

3

UG991893183UG,

28.98%,

2/06/28

.....

19

19

UG991802472UG,

29.49%,

2/06/28

.....

8

1

UG991878603UG,

29.49%,

2/07/28

.....

–

–

UG991612123UG,

Zero

Cpn,

2/15/28

....

14

1

UG991538752UG,

29.49%,

2/15/28

.....

5

–

UG991553195UG,

29.49%,

2/16/28

.....

5

1

UG991561971UG,

Zero

Cpn,

2/17/28

....

14

1

UG991734822UG,

28.98%,

2/17/28

.....

8

–

UG991760060UG,

29.48%,

2/17/28

.....

–

–

UG991553440UG,

29.49%,

2/17/28

.....

–

–

UG991717440UG,

29.49%,

2/17/28

.....

20

2

UG991663276UG,

Zero

Cpn,

2/18/28

....

34

2

UG991742356UG,

Zero

Cpn,

2/18/28

....

15

1

UG991696216UG,

Zero

Cpn,

2/20/28

....

20

1

UG991629059UG,

28.98%,

2/22/28

.....

2

–

UG991705235UG,

29.49%,

3/03/28

.....

–

–

UG991909211UG,

29.49%,

3/03/28

......

12

2

UG991919432UG,

Zero

Cpn,

3/04/28

....

18

1

UG991700959UG,

19.99%,

3/05/28

.....

4

4

UG991706774UG,

27.99%,

3/05/28

.....

3

1

UG991705668UG,

Zero

Cpn,

3/07/28

....

17

1

UG991709591UG,

29.49%,

3/07/28

.....

23

2

UG991858699UG,

29.49%,

3/07/28

.....

43

13

UG991747495UG,

28.98%,

3/16/28

.....

12

(1)

UG991554925UG,

Zero

Cpn,

3/17/28

....

20

1

UG991757729UG,

21.46%,

3/18/28

.....

11

–

UG991689406UG,

29.49%,

3/18/28

.....

–

–

UG991759963UG,

29.49%,

3/18/28

.....

31

28

UG991805214UG,

29.49%,

3/20/28

.....

2

–

UG991768443UG,

Zero

Cpn,

3/22/28

....

21

1

UG991680531UG,

28.98%,

3/22/28

.....

–

–

UG991683869UG,

Zero

Cpn,

3/23/28

....

20

1

UG991790958UG,

19.99%,

3/24/28

.....

8

1

UG991798159UG,

17.71%,

3/29/28

.....

3

1

UG991861030UG,

19.21%,

4/03/28

.....

1

–

UG991702648UG,

29.48%,

4/05/28

.....

5

5

UG991826871UG,

28.98%,

4/06/28

.....

8

1

UG991828120UG,

27.99%,

4/07/28

.....

–

–

UG991547698UG,

Zero

Cpn,

4/17/28

....

20

1

UG991561556UG,

29.49%,

4/17/28

.....

11

–

UG991563323UG,

29.49%,

4/17/28

.....

4

4

UG991660055UG,

29.49%,

4/17/28

.....

5

4

UG991736947UG,

Zero

Cpn,

4/18/28

....

21

1

UG991664100UG,

29.49%,

4/18/28

.....

6

6

UG991763034UG,

29.49%,

4/20/28

.....

15

15

UG991654015UG,

Zero

Cpn,

4/21/28

....

37

3

UG991671413UG,

19.99%,

4/21/28

.....

–

–

UG991764921UG,

29.49%,

4/21/28

.....

–

–

UG991653933UG,

29.49%,

4/22/28

.....

–

–

UG991789983UG,

Zero

Cpn,

4/23/28

....

25

2

UG991749644UG,

28.98%,

4/24/28

.....

–

–

UG991776277UG,

28.98%,

4/24/28

.....

1

1

UG991797980UG,

28.98%,

4/24/28

.....

23

23

UG991659586UG,

29.49%,

4/24/28

.....

4

4

UG991670891UG,

29.49%,

4/24/28

.....

6

1

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upgrade,

Inc.

-

Card

(continued)

UG991859032UG,

16.99%,

4/29/28

.....

$

2

$

2

UG991912074UG,

29.49%,

5/04/28

.....

5

5

UG991738913UG,

Zero

Cpn,

5/05/28

....

38

3

UG991876008UG,

Zero

Cpn,

5/05/28

....

24

1

UG991909294UG,

21.46%,

5/05/28

.....

3

3

UG991695593UG,

28.98%,

5/05/28

.....

2

2

UG991696008UG,

29.49%,

5/05/28

.....

3

3

UG991711354UG,

29.49%,

5/05/28

......

13

2

UG991741214UG,

29.49%,

5/05/28

.....

4

4

UG991825274UG,

29.49%,

5/05/28

.....

14

2

UG991872516UG,

29.49%,

5/05/28

.....

3

3

UG991887900UG,

Zero

Cpn,

5/06/28

....

27

2

UG991860678UG,

21.46%,

5/06/28

.....

1

1

UG991700308UG,

28.48%,

5/06/28

.....

12

2

UG991710180UG,

28.98%,

5/06/28

.....

5

5

UG991735997UG,

29.49%,

5/06/28

.....

3

3

UG991753959UG,

19.99%,

5/07/28

.....

4

4

UG991847936UG,

28.98%,

5/07/28

.....

4

3

UG991731671UG,

29.49%,

5/07/28

.....

3

3

UG991781431UG,

29.49%,

5/07/28

.....

–

–

UG991826734UG,

29.49%,

5/07/28

.....

3

3

UG991885580UG,

29.49%,

5/07/28

.....

10

10

UG991889654UG,

29.49%,

5/07/28

.....

4

4

UG991921344UG,

29.49%,

5/07/28

.....

–

–

UG991684554UG,

29.49%,

5/16/28

.....

3

4

UG991738510UG,

29.49%,

5/16/28

.....

4

4

UG991593701UG,

Zero

Cpn,

5/17/28

....

29

2

UG991571519UG,

19.99%,

5/17/28

.....

1

1

UG991613294UG,

28.48%,

5/17/28

.....

5

5

UG991555984UG,

28.98%,

5/17/28

.....

4

4

UG991572818UG,

28.98%,

5/17/28

.....

17

1

UG991638060UG,

28.98%,

5/17/28

.....

3

3

UG991573077UG,

29.47%,

5/17/28

.....

2

2

UG991556918UG,

29.48%,

5/17/28

.....

10

10

UG991564043UG,

29.49%,

5/17/28

.....

2

2

UG991585266UG,

29.49%,

5/17/28

.....

18

1

UG991628891UG,

29.49%,

5/17/28

.....

2

2

UG991662133UG,

29.49%,

5/17/28

.....

3

3

UG991697324UG,

29.49%,

5/17/28

.....

5

5

UG991726588UG,

29.49%,

5/17/28

.....

9

9

UG991679126UG,

14.98%,

5/18/28

.....

–

–

UG991684086UG,

28.98%,

5/18/28

.....

–

–

UG991705981UG,

28.98%,

5/18/28

.....

8

8

UG991747057UG,

29.49%,

5/18/28

.....

7

7

UG991763850UG,

29.49%,

5/18/28

.....

1

1

UG991710331UG,

28.48%,

5/20/28

.....

3

3

UG991768579UG,

28.98%,

5/20/28

.....

9

9

UG991702141UG,

29.49%,

5/20/28

.....

3

3

UG991759873UG,

29.49%,

5/21/28

.....

2

2

UG991804599UG,

29.49%,

5/21/28

.....

2

–

UG991811893UG,

28.98%,

5/22/28

......

4

4

UG991694879UG,

Zero

Cpn,

5/23/28

....

33

2

UG991795847UG,

28.48%,

5/23/28

.....

6

6

UG991778410UG,

28.98%,

5/23/28

.....

4

5

UG991826545UG,

28.98%,

5/23/28

.....

15

1

UG991645076UG,

29.49%,

5/23/28

.....

2

2

UG991798511UG,

29.49%,

5/23/28

......

4

4

UG991639949UG,

Zero

Cpn,

5/24/28

....

–

–

Description

Principal

Amount

Value

Upgrade,

Inc.

-

Card

(continued)

UG991643233UG,

28.98%,

5/24/28

.....

$

8

$

8

UG991641800UG,

29.49%,

5/24/28

.....

4

4

UG991690240UG,

29.49%,

5/24/28

.....

19

1

UG991782255UG,

29.49%,

5/24/28

.....

5

5

UG991681664UG,

15.47%,

5/26/28

.....

–

–

UG991596716UG,

Zero

Cpn,

2/22/32

....

66

5

UG991701716UG,

Zero

Cpn,

3/05/32

....

7

1

UG991715282UG,

29.49%,

3/06/32

.....

3

3

UG991763220UG,

29.49%,

3/07/32

.....

15

15

UG991924009UG,

Zero

Cpn,

7/06/32

....

–

–

UG991700115UG,

29.49%,

8/23/32

......

7

(1)

1,096,788

Upstart

Network,

Inc.

L1668275.UP.FTS.B,

5.93%,

9/14/24

....

1,582

1,567

L1708965.UP.FTS.B,

6.03%,

9/14/24

....

841

833

L1711338.UP.FTS.B,

7.31%,

9/14/24

.....

3,727

3,702

FW1711179.UP.FTS.B,

8.08%,

9/14/24

...

4,269

4,244

L1710349.UP.FTS.B,

8.75%,

9/14/24

....

2,524

2,509

L1709609.UP.FTS.B,

9.38%,

9/14/24

....

3,031

3,014

L1709911.UP.FTS.B,

11.09%,

9/14/24

....

3,558

491

L1709151.UP.FTS.B,

12.24%,

9/14/24

....

9,315

9,270

L1709495.UP.FTS.B,

12.77%,

9/14/24

....

1,011

1,003

L1711024.UP.FTS.B,

12.98%,

9/14/24

....

1,616

1,605

L1708601.UP.FTS.B,

13.04%,

9/14/24

....

3,643

3,626

L1709421.UP.FTS.B,

13.37%,

9/14/24

....

2,063

2,053

L1709684.UP.FTS.B,

13.76%,

9/14/24

....

1,044

1,039

L1709615.UP.FTS.B,

14.35%,

9/14/24

....

172

170

L1709128.UP.FTS.B,

16.69%,

9/14/24

....

547

522

L1710058.UP.FTS.B,

17.29%,

9/14/24

....

1,910

1,909

FW1708870.UP.FTS.B,

17.81%,

9/14/24

..

2,164

2,161

L1710277.UP.FTS.B,

18.02%,

9/14/24

....

8,573

8,166

L1711489.UP.FTS.B,

18.07%,

9/14/24

....

2,856

2,721

L1693265.UP.FTS.B,

18.16%,

9/14/24

....

809

810

L1708735.UP.FTS.B,

18.16%,

9/14/24

....

2,699

2,694

L1710205.UP.FTS.B,

18.33%,

9/14/24

....

3,109

449

L1712571.UP.FTS.B,

19.22%,

9/14/24

....

815

816

L1710755.UP.FTS.B,

19.46%,

9/14/24

....

2,720

2,724

L1711631.UP.FTS.B,

20.05%,

9/14/24

....

1,146

1,143

L1701584.UP.FTS.B,

21.4%,

9/14/24

....

1,282

1,276

L1709086.UP.FTS.B,

21.87%,

9/14/24

....

3,849

3,835

L1709006.UP.FTS.B,

22.7%,

9/14/24

....

1,746

1,662

L1712071.UP.FTS.B,

22.99%,

9/14/24

....

1,225

1,221

L1711537.UP.FTS.B,

23.1%,

9/14/24

.....

1,003

1,004

L1711075.UP.FTS.B,

23.16%,

9/14/24

....

836

833

L1709547.UP.FTS.B,

23.36%,

9/14/24

....

4,220

631

L1706779.UP.FTS.B,

23.41%,

9/14/24

....

1,005

1,001

L1711142.UP.FTS.B,

23.72%,

9/14/24

....

725

9

L1709631.UP.FTS.B,

24.23%,

9/14/24

....

3,366

3,354

FW1710815.UP.FTS.B,

26.35%,

9/14/24

..

555

552

FW1709118.UP.FTS.B,

27.71%,

9/14/24

..

1,147

1,143

FW1709444.UP.FTS.B,

27.86%,

9/14/24

..

2,116

149

FW1710922.UP.FTS.B,

28.53%,

9/14/24

..

576

574

FW1710694.UP.FTS.B,

29.46%,

9/14/24

..

11,589

11,549

FW1710062.UP.FTS.B,

30.06%,

9/14/24

..

1,048

1,044

L1873274.UP.FTS.B,

6.44%,

10/18/24

....

3,668

3,633

L1873054.UP.FTS.B,

6.73%,

10/18/24

....

10,158

2,725

L1874011.UP.FTS.B,

6.93%,

10/18/24

....

5,259

5,209

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

117

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW1874507.UP.FTS.B,

7.36%,

10/18/24

..

$

1,582

$

1,570

L1873016.UP.FTS.B,

8.3%,

10/18/24

....

2,124

2,111

L1873058.UP.FTS.B,

8.3%,

10/18/24

....

2,638

2,622

L1873371.UP.FTS.B,

8.48%,

10/18/24

....

6,379

6,340

L1873862.UP.FTS.B,

8.52%,

10/18/24

....

1,064

1,056

L1873876.UP.FTS.B,

8.87%,

10/18/24

....

8,453

7,988

FW1874503.UP.FTS.B,

9.4%,

10/18/24

...

4,859

4,592

L1873457.UP.FTS.B,

9.58%,

10/18/24

....

563

533

L1873276.UP.FTS.B,

10.26%,

10/18/24

...

4,305

4,280

L1873969.UP.FTS.B,

10.92%,

10/18/24

...

541

538

L1873212.UP.FTS.B,

11.39%,

10/18/24

...

8,594

8,546

L1872565.UP.FTS.B,

13.63%,

10/18/24

...

2,753

2,740

FW1873666.UP.FTS.B,

14.61%,

10/18/24

.

860

853

L1873890.UP.FTS.B,

14.95%,

10/18/24

...

1,222

1,223

L1873908.UP.FTS.B,

15.55%,

10/18/24

...

836

837

L1874133.UP.FTS.B,

16.04%,

10/18/24

...

2,773

2,775

L1873474.UP.FTS.B,

16.06%,

10/18/24

...

1,566

1,568

L1873316.UP.FTS.B,

16.33%,

10/18/24

...

1,847

1,849

L1873998.UP.FTS.B,

16.56%,

10/18/24

...

3,368

3,371

L1873175.UP.FTS.B,

17.39%,

10/18/24

...

1,246

346

FW1873590.UP.FTS.B,

17.67%,

10/18/24

.

5,081

5,086

FW1874334.UP.FTS.B,

18.25%,

10/18/24

.

4,823

4,828

L1873935.UP.FTS.B,

18.25%,

10/18/24

...

1,680

1,681

L1873189.UP.FTS.B,

18.36%,

10/18/24

...

3,202

3,200

L1869487.UP.FTS.B,

18.66%,

10/18/24

...

3,415

3,407

L1874319.UP.FTS.B,

19.26%,

10/18/24

...

3,593

3,419

L1873329.UP.FTS.B,

19.32%,

10/18/24

...

1,714

1,716

L1874232.UP.FTS.B,

19.37%,

10/18/24

...

6,162

6,123

FW1859012.UP.FTS.B,

19.54%,

10/18/24

.

8,581

8,552

L1873964.UP.FTS.B,

20.13%,

10/18/24

...

2,412

2,407

L1873264.UP.FTS.B,

20.49%,

10/18/24

...

1,036

1,032

L1873242.UP.FTS.B,

21.35%,

10/18/24

...

1,776

1,769

L1873872.UP.FTS.B,

21.59%,

10/18/24

...

1,129

80

L1872932.UP.FTS.B,

21.9%,

10/18/24

....

11,106

11,057

L1871398.UP.FTS.B,

22.03%,

10/18/24

...

1,232

1,170

L1873367.UP.FTS.B,

22.09%,

10/18/24

...

809

807

L1873736.UP.FTS.B,

22.12%,

10/18/24

...

5,813

5,794

L1873171.UP.FTS.B,

22.25%,

10/18/24

...

1,164

1,160

FW1873087.UP.FTS.B,

22.36%,

10/18/24

.

1,164

1,166

L1873179.UP.FTS.B,

22.76%,

10/18/24

...

1,176

1,168

L1874384.UP.FTS.B,

23.32%,

10/18/24

...

1,113

1,106

L1874136.UP.FTS.B,

23.45%,

10/18/24

...

1,795

1,788

L1874372.UP.FTS.B,

23.49%,

10/18/24

...

886

873

FW1873053.UP.FTS.B,

23.65%,

10/18/24

.

1,291

1,287

L1872590.UP.FTS.B,

23.91%,

10/18/24

...

1,719

1,712

FW1874061.UP.FTS.B,

24.44%,

10/18/24

.

547

543

L1873402.UP.FTS.B,

25.1%,

10/18/24

....

4,011

3,813

FW1866558.UP.FTS.B,

27.33%,

10/18/24

.

2,999

2,989

FW1873960.UP.FTS.B,

28.04%,

10/18/24

.

1,970

1,943

FW1873200.UP.FTS.B,

28.1%,

10/18/24

..

1,506

1,501

FW1870326.UP.FTS.B,

28.36%,

10/18/24

.

6,034

6,013

FW1874036.UP.FTS.B,

28.84%,

10/18/24

.

1,516

1,442

FW1873386.UP.FTS.B,

29.18%,

10/18/24

.

606

604

L2009164.UP.FTS.B,

7.47%,

11/09/24

....

5,553

5,497

L2007742.UP.FTS.B,

8.31%,

11/09/24

....

1,396

1,386

L2009147.UP.FTS.B,

8.62%,

11/09/24

....

1,119

1,111

FW2006255.UP.FTS.B,

8.72%,

11/09/24

..

1,456

1,445

L2006429.UP.FTS.B,

9.93%,

11/09/24

....

28,214

28,006

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2006357.UP.FTS.B,

10.1%,

11/09/24

....

$

602

$

595

FW2005536.UP.FTS.B,

10.27%,

11/09/24

.

2,262

2,246

L2009057.UP.FTS.B,

10.3%,

11/09/24

....

6,572

6,521

L2007334.UP.FTS.B,

10.62%,

11/09/24

...

2,841

2,815

FW2006816.UP.FTS.B,

10.79%,

11/09/24

.

4,606

4,570

FW2008742.UP.FTS.B,

11.03%,

11/09/24

.

5,707

5,657

L2009390.UP.FTS.B,

11.11%,

11/09/24

...

3,866

3,839

L2007022.UP.FTS.B,

11.29%,

11/09/24

...

1,139

1,131

FW1975632.UP.FTS.B,

11.37%,

11/09/24

.

1,766

1,753

L1980258.UP.FTS.B,

12.16%,

11/09/24

...

12,478

12,388

L2008566.UP.FTS.B,

13.59%,

11/09/24

...

605

348

L2008572.UP.FTS.B,

13.72%,

11/09/24

...

3,244

3,219

L2000304.UP.FTS.B,

13.97%,

11/09/24

...

2,373

2,357

L2008598.UP.FTS.B,

14.12%,

11/09/24

...

1,739

1,727

L2009600.UP.FTS.B,

14.49%,

11/09/24

...

2,821

2,811

FW2004099.UP.FTS.B,

15.18%,

11/09/24

.

1,750

1,746

L2009870.UP.FTS.B,

15.75%,

11/09/24

...

1,756

1,744

L2005874.UP.FTS.B,

15.93%,

11/09/24

...

9,962

9,938

L1964575.UP.FTS.B,

16.42%,

11/09/24

...

1,176

1,173

L2006407.UP.FTS.B,

16.56%,

11/09/24

...

4,707

4,696

L2009557.UP.FTS.B,

16.56%,

11/09/24

...

3,529

3,521

FW2006915.UP.FTS.B,

17.05%,

11/09/24

.

1,180

1,177

L2008387.UP.FTS.B,

17.08%,

11/09/24

...

3,507

256

FW2008245.UP.FTS.B,

17.41%,

11/09/24

.

2,956

2,949

L2009227.UP.FTS.B,

17.41%,

11/09/24

...

2,070

2,065

L2007287.UP.FTS.B,

17.58%,

11/09/24

...

8,970

654

FW2006977.UP.FTS.B,

17.62%,

11/09/24

.

2,960

2,953

FW2008456.UP.FTS.B,

17.88%,

11/09/24

.

4,343

4,302

L2006019.UP.FTS.B,

18.67%,

11/09/24

...

1,688

1,682

L2006884.UP.FTS.B,

18.86%,

11/09/24

...

5,184

5,167

FW2008385.UP.FTS.B,

19.08%,

11/09/24

.

1,509

1,501

FW2009194.UP.FTS.B,

19.65%,

11/09/24

.

1,798

1,794

L2007944.UP.FTS.B,

19.85%,

11/09/24

...

2,635

192

L2004937.UP.FTS.B,

19.9%,

11/09/24

....

3,881

3,864

L2007765.UP.FTS.B,

19.9%,

11/09/24

....

4,096

4,074

L2009435.UP.FTS.B,

20.15%,

11/09/24

...

9,915

9,841

L2004417.UP.FTS.B,

20.16%,

11/09/24

...

1,899

1,123

L2008874.UP.FTS.B,

20.27%,

11/09/24

...

5,986

5,939

L2007505.UP.FTS.B,

20.32%,

11/09/24

...

1,925

1,921

L2006510.UP.FTS.B,

20.49%,

11/09/24

...

3,136

3,125

L2005439.UP.FTS.B,

20.7%,

11/09/24

....

1,367

100

L2010279.UP.FTS.B,

20.87%,

11/09/24

...

2,396

2,371

L2008398.UP.FTS.B,

20.91%,

11/09/24

...

1,811

1,797

L2004915.UP.FTS.B,

21%,

11/09/24

.....

6,042

5,997

L2009328.UP.FTS.B,

21.06%,

11/09/24

...

1,027

1,025

FW2010100.UP.FTS.B,

21.34%,

11/09/24

.

3,770

275

L2009663.UP.FTS.B,

21.46%,

11/09/24

...

3,044

3,012

L2008515.UP.FTS.B,

21.79%,

11/09/24

...

5,461

5,420

L2006419.UP.FTS.B,

22.06%,

11/09/24

...

731

52

L2008922.UP.FTS.B,

22.21%,

11/09/24

...

1,216

1,207

L2009367.UP.FTS.B,

22.33%,

11/09/24

...

5,477

5,436

L2009655.UP.FTS.B,

22.54%,

11/09/24

...

2,424

2,405

L2010143.UP.FTS.B,

22.58%,

11/09/24

...

1,334

1,324

L2009735.UP.FTS.B,

22.61%,

11/09/24

...

3,196

3,167

FW2003014.UP.FTS.B,

22.75%,

11/09/24

.

10,677

10,597

L2007564.UP.FTS.B,

23.08%,

11/09/24

...

3,984

2,435

FW2008479.UP.FTS.B,

24.13%,

11/09/24

.

2,973

2,934

FW2009937.UP.FTS.B,

26.34%,

11/09/24

.

2,637

2,606

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2005316.UP.FTS.B,

26.93%,

11/09/24

.

$

624

$

620

FW2008048.UP.FTS.B,

28.27%,

11/09/24

.

629

624

FW2008337.UP.FTS.B,

28.31%,

11/09/24

.

2,519

2,500

FW2008565.UP.FTS.B,

28.92%,

11/09/24

.

2,549

2,524

L2077512.UP.FTS.B,

6.51%,

11/19/24

....

2,759

2,733

L2077314.UP.FTS.B,

7.63%,

11/19/24

....

3,336

3,304

L2079482.UP.FTS.B,

7.7%,

11/19/24

.....

3,615

3,592

FW2078418.UP.FTS.B,

7.82%,

11/19/24

..

27,810

27,631

L2077413.UP.FTS.B,

8.09%,

11/19/24

....

2,351

2,334

L2077593.UP.FTS.B,

8.69%,

11/19/24

....

2,799

2,781

L2077781.UP.FTS.B,

10.54%,

11/19/24

...

1,234

1,226

L2078215.UP.FTS.B,

10.8%,

11/19/24

....

4,199

4,173

L2077816.UP.FTS.B,

11%,

11/19/24

.....

682

677

L2077041.UP.FTS.B,

11.38%,

11/19/24

...

2,832

2,816

L2080776.UP.FTS.B,

11.71%,

11/19/24

...

5,154

5,122

FW2077955.UP.FTS.B,

11.92%,

11/19/24

.

1,396

1,385

L2078813.UP.FTS.B,

13.69%,

11/19/24

...

4,621

4,596

L2076941.UP.FTS.B,

13.71%,

11/19/24

...

6,057

5,758

L2078440.UP.FTS.B,

13.79%,

11/19/24

...

2,119

2,102

L2072646.UP.FTS.B,

15.11%,

11/19/24

...

1,991

292

L2077920.UP.FTS.B,

15.31%,

11/19/24

...

2,919

2,920

L2076486.UP.FTS.B,

15.67%,

11/19/24

...

1,579

1,580

L2079064.UP.FTS.B,

15.95%,

11/19/24

...

2,934

2,925

FW2076817.UP.FTS.B,

16.69%,

11/19/24

.

883

883

L2077340.UP.FTS.B,

17.78%,

11/19/24

...

4,954

4,724

L2077616.UP.FTS.B,

18.56%,

11/19/24

...

4,630

336

FW2078600.UP.FTS.B,

18.83%,

11/19/24

.

596

596

L2077669.UP.FTS.B,

19.72%,

11/19/24

...

551

550

FW2076493.UP.FTS.B,

20.14%,

11/19/24

.

1,502

1,503

L2070757.UP.FTS.B,

20.15%,

11/19/24

...

1,082

1,082

L2077506.UP.FTS.B,

20.58%,

11/19/24

...

3,557

3,540

L2077765.UP.FTS.B,

21.13%,

11/19/24

...

644

613

L2080270.UP.FTS.B,

21.47%,

11/19/24

...

2,422

2,423

FW2078088.UP.FTS.B,

22.1%,

11/19/24

..

882

872

FW2079771.UP.FTS.B,

22.21%,

11/19/24

.

3,041

3,042

L2068552.UP.FTS.B,

22.21%,

11/19/24

...

1,861

135

L2079118.UP.FTS.B,

22.29%,

11/19/24

...

7,120

190

L2077715.UP.FTS.B,

23.03%,

11/19/24

...

1,140

81

L2074944.UP.FTS.B,

23.05%,

11/19/24

...

2,661

2,643

FW2076824.UP.FTS.B,

23.23%,

11/19/24

.

1,957

1,958

FW2078990.UP.FTS.B,

23.53%,

11/19/24

.

3,064

896

FW2078899.UP.FTS.B,

24.04%,

11/19/24

.

4,167

4,139

FW2080736.UP.FTS.B,

25.04%,

11/19/24

.

1,150

1,112

L2076355.UP.FTS.B,

25.17%,

11/19/24

...

4,192

4,175

FW2073639.UP.FTS.B,

25.65%,

11/19/24

.

2,271

163

FW2077958.UP.FTS.B,

27.77%,

11/19/24

.

6,274

6,249

FW2077222.UP.FTS.B,

28.34%,

11/19/24

.

4,663

332

FW2080054.UP.FTS.B,

30.2%,

11/19/24

..

2,205

154

L2077140.UP.FTS.B,

22.69%,

12/01/24

...

3,861

3,835

L2197817.UP.FTS.B,

6.54%,

12/07/24

....

3,477

3,440

L2192487.UP.FTS.B,

8.02%,

12/07/24

....

11,698

11,596

FW2196231.UP.FTS.B,

11.5%,

12/07/24

..

7,169

7,107

L2196723.UP.FTS.B,

12.12%,

12/07/24

...

3,898

3,864

L2196919.UP.FTS.B,

12.98%,

12/07/24

...

2,106

1,206

L2199259.UP.FTS.B,

13.19%,

12/07/24

...

2,715

2,692

FW2199236.UP.FTS.B,

13.4%,

12/07/24

..

906

899

L2199973.UP.FTS.B,

16.17%,

12/07/24

...

1,842

1,833

L2196295.UP.FTS.B,

16.26%,

12/07/24

...

3,312

3,294

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2197093.UP.FTS.B,

16.43%,

12/07/24

...

$

4,045

$

294

L2198109.UP.FTS.B,

16.63%,

12/07/24

...

616

612

L2197668.UP.FTS.B,

17.17%,

12/07/24

...

1,544

1,536

FW2197769.UP.FTS.B,

17.83%,

12/07/24

.

1,566

1,553

L2196102.UP.FTS.B,

17.88%,

12/07/24

...

6,783

6,729

L2199581.UP.FTS.B,

19.33%,

12/07/24

...

1,125

1,119

FW2200254.UP.FTS.B,

19.34%,

12/07/24

.

1,250

1,244

FW2199717.UP.FTS.B,

20.13%,

12/07/24

.

3,139

3,106

L2195358.UP.FTS.B,

20.15%,

12/07/24

...

629

624

L2198118.UP.FTS.B,

20.43%,

12/07/24

...

1,258

1,251

L2198032.UP.FTS.B,

20.55%,

12/07/24

...

2,517

2,490

L2196647.UP.FTS.B,

21.51%,

12/07/24

...

3,820

3,789

L2199295.UP.FTS.B,

21.7%,

12/07/24

....

1,583

1,566

L2199073.UP.FTS.B,

21.87%,

12/07/24

...

1,585

1,576

L2195775.UP.FTS.B,

22.71%,

12/07/24

...

964

951

L2197271.UP.FTS.B,

22.76%,

12/07/24

...

5,783

5,704

FW2198017.UP.FTS.B,

23.08%,

12/07/24

.

1,914

1,893

L2196613.UP.FTS.B,

23.35%,

12/07/24

...

4,258

4,211

FW2195695.UP.FTS.B,

24.83%,

12/07/24

.

3,190

3,154

FW2195888.UP.FTS.B,

24.84%,

12/07/24

.

547

539

FW2199208.UP.FTS.B,

25.58%,

12/07/24

.

2,511

2,482

L2201298.UP.FTS.B,

6.04%,

12/08/24

....

1,048

1,036

L2203520.UP.FTS.B,

6.61%,

12/08/24

....

10,667

10,555

FW2201265.UP.FTS.B,

7.44%,

12/08/24

..

4,080

4,045

L2200896.UP.FTS.B,

7.68%,

12/08/24

....

4,086

4,052

L2200163.UP.FTS.B,

8.73%,

12/08/24

....

4,406

4,369

L2204262.UP.FTS.B,

8.78%,

12/08/24

....

1,175

1,166

L2202574.UP.FTS.B,

9.1%,

12/08/24

....

4,416

4,379

FW2206887.UP.FTS.B,

9.22%,

12/08/24

..

5,915

5,857

L2202371.UP.FTS.B,

9.29%,

12/08/24

....

884

877

L2202647.UP.FTS.B,

9.47%,

12/08/24

....

2,057

2,040

L2201633.UP.FTS.B,

10.05%,

12/08/24

...

5,744

5,697

L2202275.UP.FTS.B,

10.28%,

12/08/24

...

11,860

11,762

L2206909.UP.FTS.B,

11.8%,

12/08/24

....

1,794

1,780

L2205399.UP.FTS.B,

11.81%,

12/08/24

...

597

592

L2201373.UP.FTS.B,

12.48%,

12/08/24

...

1,803

1,788

L2201983.UP.FTS.B,

12.68%,

12/08/24

...

4,827

4,780

L2206888.UP.FTS.B,

12.72%,

12/08/24

...

4,819

4,772

L2200458.UP.FTS.B,

12.89%,

12/08/24

...

3,895

3,863

L2200431.UP.FTS.B,

13.28%,

12/08/24

...

3,647

973

L2205143.UP.FTS.B,

13.35%,

12/08/24

...

1,892

1,082

L2202863.UP.FTS.B,

13.37%,

12/08/24

...

3,612

3,583

L2204453.UP.FTS.B,

13.74%,

12/08/24

...

1,816

1,802

L2204038.UP.FTS.B,

14.23%,

12/08/24

...

6,039

5,990

FW2200839.UP.FTS.B,

14.26%,

12/08/24

.

3,827

3,791

L2201794.UP.FTS.B,

14.37%,

12/08/24

...

5,165

5,142

L2204310.UP.FTS.B,

14.38%,

12/08/24

...

608

603

L2203131.UP.FTS.B,

15.07%,

12/08/24

...

2,230

2,210

FW2198905.UP.FTS.B,

15.38%,

12/08/24

.

3,056

3,043

L2192030.UP.FTS.B,

15.79%,

12/08/24

...

4,656

4,636

L2199002.UP.FTS.B,

16.29%,

12/08/24

...

1,475

1,468

L2201862.UP.FTS.B,

17%,

12/08/24

.....

3,087

3,063

L2204481.UP.FTS.B,

17.12%,

12/08/24

...

2,496

2,460

L2200703.UP.FTS.B,

17.76%,

12/08/24

...

332

327

L2202850.UP.FTS.B,

17.99%,

12/08/24

...

1,150

1,143

L2202296.UP.FTS.B,

18.33%,

12/08/24

...

1,167

1,159

FW2201612.UP.FTS.B,

18.99%,

12/08/24

.

1,248

1,242

L2206681.UP.FTS.B,

19.32%,

12/08/24

...

2,122

2,103

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

119

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2204182.UP.FTS.B,

19.36%,

12/08/24

...

$

5,627

$

5,602

L2203811.UP.FTS.B,

19.85%,

12/08/24

...

1,895

1,881

L2201390.UP.FTS.B,

19.92%,

12/08/24

...

7,528

7,496

L2201524.UP.FTS.B,

19.94%,

12/08/24

...

3,761

3,724

FW2206245.UP.FTS.B,

20.03%,

12/08/24

.

952

945

L2203066.UP.FTS.B,

20.07%,

12/08/24

...

10,925

10,846

FW2201750.UP.FTS.B,

20.37%,

12/08/24

.

1,257

1,252

L2201072.UP.FTS.B,

20.37%,

12/08/24

...

2,200

2,191

L2202128.UP.FTS.B,

20.41%,

12/08/24

...

2,792

149

FW2203151.UP.FTS.B,

21.13%,

12/08/24

.

2,652

2,626

L2202392.UP.FTS.B,

21.41%,

12/08/24

...

2,845

2,818

L2206735.UP.FTS.B,

21.46%,

12/08/24

...

3,189

3,167

L2180897.UP.FTS.B,

21.81%,

12/08/24

...

5,064

5,014

FW2201886.UP.FTS.B,

21.86%,

12/08/24

.

1,087

1,078

FW2206827.UP.FTS.B,

22.71%,

12/08/24

.

3,184

3,153

L2202398.UP.FTS.B,

23.19%,

12/08/24

...

4,469

4,425

FW2206155.UP.FTS.B,

23.2%,

12/08/24

..

1,243

1,230

FW2206719.UP.FTS.B,

24.2%,

12/08/24

..

7,674

7,599

FW2176932.UP.FTS.B,

25.88%,

12/08/24

.

1,625

1,604

FW2201104.UP.FTS.B,

26.62%,

12/08/24

.

650

642

FW2201792.UP.FTS.B,

27.21%,

12/08/24

.

2,282

2,260

FW2201560.UP.FTS.B,

28.51%,

12/08/24

.

1,378

1,365

FW2204026.UP.FTS.B,

28.52%,

12/08/24

.

5,251

5,200

FW2201579.UP.FTS.B,

28.82%,

12/08/24

.

2,038

2,018

FW2201851.UP.FTS.B,

28.82%,

12/08/24

.

1,403

99

FW2205439.UP.FTS.B,

29.01%,

12/08/24

.

2,122

2,096

L2202614.UP.FTS.B,

12.88%,

12/19/24

...

4,838

4,800

FW2203707.UP.FTS.B,

26.53%,

12/23/24

.

2,575

2,550

L2382768.UP.FTS.B,

5.08%,

1/11/25

.....

512

506

L2413126.UP.FTS.B,

5.21%,

1/11/25

.....

2,408

2,382

L2411924.UP.FTS.B,

5.26%,

1/11/25

.....

3,613

3,575

L2411777.UP.FTS.B,

5.56%,

1/11/25

.....

5,441

5,379

L2411090.UP.FTS.B,

5.74%,

1/11/25

.....

4,227

4,182

L2412107.UP.FTS.B,

6.11%,

1/11/25

.....

1,816

1,797

L2413813.UP.FTS.B,

6.18%,

1/11/25

.....

1,816

1,797

L2413053.UP.FTS.B,

6.21%,

1/11/25

.....

3,633

3,595

L2408176.UP.FTS.B,

6.75%,

1/11/25

.....

536

530

L2412917.UP.FTS.B,

6.87%,

1/11/25

.....

1,824

1,804

L2412167.UP.FTS.B,

7.12%,

1/11/25

.....

2,435

2,410

L2410776.UP.FTS.B,

7.38%,

1/11/25

.....

3,659

3,626

FW2411155.UP.FTS.B,

7.59%,

1/11/25

...

2,320

2,295

L2413637.UP.FTS.B,

7.76%,

1/11/25

.....

1,706

1,690

L2402281.UP.FTS.B,

7.89%,

1/11/25

.....

11,459

11,334

FW2408203.UP.FTS.B,

8.04%,

1/11/25

...

1,834

1,818

L2407274.UP.FTS.B,

8.11%,

1/11/25

.....

1,312

1,300

FW2413171.UP.FTS.B,

8.15%,

1/11/25

...

1,837

1,821

L2402983.UP.FTS.B,

8.56%,

1/11/25

.....

1,658

1,641

L2412008.UP.FTS.B,

8.58%,

1/11/25

.....

6,141

6,086

FW2408763.UP.FTS.B,

8.69%,

1/11/25

...

3,946

3,905

L2407827.UP.FTS.B,

8.84%,

1/11/25

.....

2,210

2,190

L2410161.UP.FTS.B,

9.06%,

1/11/25

.....

1,231

1,220

L2407027.UP.FTS.B,

9.18%,

1/11/25

.....

2,772

2,748

L2411609.UP.FTS.B,

9.19%,

1/11/25

.....

1,232

1,221

L2408028.UP.FTS.B,

9.2%,

1/11/25

......

2,147

2,128

FW2412135.UP.FTS.B,

10.19%,

1/11/25

..

1,237

1,226

L2413510.UP.FTS.B,

10.29%,

1/11/25

....

10,230

10,139

L2411555.UP.FTS.B,

10.32%,

1/11/25

....

2,790

2,766

L2408096.UP.FTS.B,

10.52%,

1/11/25

....

2,525

2,501

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2412813.UP.FTS.B,

10.67%,

1/11/25

..

$

621

$

616

L2411669.UP.FTS.B,

10.84%,

1/11/25

....

1,244

1,233

FW2410432.UP.FTS.B,

10.89%,

1/11/25

..

3,110

3,084

L2411242.UP.FTS.B,

10.89%,

1/11/25

....

1,930

1,910

L2413320.UP.FTS.B,

11.28%,

1/11/25

....

12,468

12,358

L2405109.UP.FTS.B,

11.47%,

1/11/25

....

980

559

FW2409055.UP.FTS.B,

12.38%,

1/11/25

..

716

408

L2412366.UP.FTS.B,

12.6%,

1/11/25

.....

628

623

L2408103.UP.FTS.B,

12.61%,

1/11/25

....

1,570

1,557

FW2412082.UP.FTS.B,

12.62%,

1/11/25

..

3,250

3,219

L2410850.UP.FTS.B,

13.07%,

1/11/25

....

944

936

L2412558.UP.FTS.B,

13.17%,

1/11/25

....

945

937

L2410120.UP.FTS.B,

14.05%,

1/11/25

....

1,266

1,255

FW2412033.UP.FTS.B,

14.09%,

1/11/25

..

2,103

2,083

L2410413.UP.FTS.B,

14.16%,

1/11/25

....

9,501

9,447

L2397480.UP.FTS.B,

15.09%,

1/11/25

....

2,614

2,581

L2408428.UP.FTS.B,

15.76%,

1/11/25

....

7,170

1,028

L2410798.UP.FTS.B,

15.99%,

1/11/25

....

6,397

6,361

FW2413230.UP.FTS.B,

16.04%,

1/11/25

..

5,230

383

FW2413492.UP.FTS.B,

16.11%,

1/11/25

..

955

949

FW2411395.UP.FTS.B,

16.37%,

1/11/25

..

1,921

1,910

L2407096.UP.FTS.B,

16.55%,

1/11/25

....

15,081

14,995

L2409614.UP.FTS.B,

17.29%,

1/11/25

....

3,879

3,855

L2411442.UP.FTS.B,

17.42%,

1/11/25

....

12,246

12,176

L2409234.UP.FTS.B,

17.51%,

1/11/25

....

1,934

1,923

L2407062.UP.FTS.B,

17.52%,

1/11/25

....

1,096

1,090

L2411946.UP.FTS.B,

17.59%,

1/11/25

....

5,613

5,581

L2412453.UP.FTS.B,

19.73%,

1/11/25

....

20,285

20,129

L2412506.UP.FTS.B,

19.8%,

1/11/25

.....

6,148

6,095

L2407256.UP.FTS.B,

20.21%,

1/11/25

....

4,577

4,527

L2411253.UP.FTS.B,

20.46%,

1/11/25

....

1,309

1,302

L2413715.UP.FTS.B,

20.58%,

1/11/25

....

614

610

FW2407665.UP.FTS.B,

20.61%,

1/11/25

..

16,383

16,204

FW2388641.UP.FTS.B,

21.09%,

1/11/25

..

657

653

FW2411559.UP.FTS.B,

21.14%,

1/11/25

..

1,643

1,633

L2401534.UP.FTS.B,

21.34%,

1/11/25

....

7,875

7,829

L2413329.UP.FTS.B,

21.38%,

1/11/25

....

10,820

3,102

L2410058.UP.FTS.B,

22.27%,

1/11/25

....

6,992

6,948

L2413428.UP.FTS.B,

23.28%,

1/11/25

....

863

854

L2407636.UP.FTS.B,

23.33%,

1/11/25

....

842

509

FW2411472.UP.FTS.B,

24.01%,

1/11/25

..

6,769

996

FW2408676.UP.FTS.B,

24.16%,

1/11/25

..

2,940

2,899

FW2411482.UP.FTS.B,

24.41%,

1/11/25

..

5,063

5,007

FW2410949.UP.FTS.B,

25.16%,

1/11/25

..

1,014

1,000

FW2408865.UP.FTS.B,

25.5%,

1/11/25

...

1,167

1,144

L2410557.UP.FTS.B,

26.28%,

1/11/25

....

1,685

1,666

FW2409120.UP.FTS.B,

26.65%,

1/11/25

..

3,376

3,338

FW2412539.UP.FTS.B,

27.71%,

1/11/25

..

3,393

3,355

FW2411088.UP.FTS.B,

28.45%,

1/11/25

..

1,362

1,347

FW2412560.UP.FTS.B,

28.48%,

1/11/25

..

3,678

3,637

FW2412871.UP.FTS.B,

28.66%,

1/11/25

..

1,363

1,348

FW2410693.UP.FTS.B,

28.78%,

1/11/25

..

5,851

5,774

FW2408892.UP.FTS.B,

33.73%,

1/11/25

..

3,303

3,257

L2415563.UP.FTS.B,

5.17%,

1/12/25

....

4,514

4,468

L2415408.UP.FTS.B,

5.38%,

1/12/25

....

5,710

5,650

L2398487.UP.FTS.B,

5.43%,

1/12/25

....

21,050

20,832

L2418369.UP.FTS.B,

5.69%,

1/12/25

....

905

896

L2414426.UP.FTS.B,

5.8%,

1/12/25

.....

906

897

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2419630.UP.FTS.B,

6.3%,

1/12/25

....

$

606

$

600

L2420304.UP.FTS.B,

6.48%,

1/12/25

....

1,522

1,506

L2419347.UP.FTS.B,

6.78%,

1/12/25

....

5,173

5,117

L2416428.UP.FTS.B,

6.81%,

1/12/25

....

1,215

1,203

FW2414692.UP.FTS.B,

6.84%,

1/12/25

...

1,216

1,203

L2418759.UP.FTS.B,

6.94%,

1/12/25

....

5,364

5,308

L2419328.UP.FTS.B,

7.52%,

1/12/25

....

4,272

4,228

L2415914.UP.FTS.B,

7.64%,

1/12/25

....

2,137

2,119

FW2418816.UP.FTS.B,

7.73%,

1/12/25

...

3,667

3,636

L2419589.UP.FTS.B,

7.74%,

1/12/25

....

9,169

9,091

L2416890.UP.FTS.B,

7.78%,

1/12/25

....

3,850

3,818

FW2416518.UP.FTS.B,

8.11%,

1/12/25

...

3,062

3,036

L2417943.UP.FTS.B,

8.11%,

1/12/25

.....

3,061

3,036

L2414073.UP.FTS.B,

8.79%,

1/12/25

....

1,346

1,334

L2415019.UP.FTS.B,

8.85%,

1/12/25

....

1,230

1,220

L2416430.UP.FTS.B,

9.01%,

1/12/25

....

3,078

3,052

L2414074.UP.FTS.B,

9.04%,

1/12/25

....

9,234

9,157

FW2416507.UP.FTS.B,

9.11%,

1/12/25

...

3,594

263

L2417145.UP.FTS.B,

9.34%,

1/12/25

....

678

673

L2415812.UP.FTS.B,

9.44%,

1/12/25

....

3,319

3,291

L2417726.UP.FTS.B,

9.57%,

1/12/25

....

3,089

3,063

FW2413836.UP.FTS.B,

10.39%,

1/12/25

..

1,543

1,530

L2396686.UP.FTS.B,

10.42%,

1/12/25

....

3,102

3,076

FW2419415.UP.FTS.B,

10.5%,

1/12/25

...

1,268

1,197

FW2416931.UP.FTS.B,

10.8%,

1/12/25

...

6,839

6,785

L2414847.UP.FTS.B,

11.02%,

1/12/25

....

6,847

6,794

L2414221.UP.FTS.B,

11.17%,

1/12/25

....

3,115

3,091

FW2416547.UP.FTS.B,

11.39%,

1/12/25

..

1,810

1,795

L2420369.UP.FTS.B,

11.76%,

1/12/25

....

10,659

10,551

L2413961.UP.FTS.B,

13.69%,

1/12/25

....

2,373

2,352

L2411232.UP.FTS.B,

15.21%,

1/12/25

....

20,748

2,905

L2419075.UP.FTS.B,

17.01%,

1/12/25

....

1,492

59

L2418199.UP.FTS.B,

17.24%,

1/12/25

....

201

198

L2417700.UP.FTS.B,

17.92%,

1/12/25

....

2,884

419

FW2417716.UP.FTS.B,

18.03%,

1/12/25

..

1,613

1,606

FW2416853.UP.FTS.B,

18.35%,

1/12/25

..

4,706

4,464

L2418715.UP.FTS.B,

19.25%,

1/12/25

....

3,256

3,241

L2417349.UP.FTS.B,

20.05%,

1/12/25

....

1,292

1,285

FW2416638.UP.FTS.B,

22.19%,

1/12/25

..

6,997

6,609

L2417218.UP.FTS.B,

22.21%,

1/12/25

....

2,486

2,471

L2414519.UP.FTS.B,

22.88%,

1/12/25

....

2,187

2,167

L2418909.UP.FTS.B,

22.9%,

1/12/25

....

420

412

L2414032.UP.FTS.B,

23.21%,

1/12/25

....

1,833

1,824

L2352635.UP.FTS.B,

23.27%,

1/12/25

....

4,944

4,895

L2412538.UP.FTS.B,

23.48%,

1/12/25

....

2,688

2,656

FW2417500.UP.FTS.B,

23.65%,

1/12/25

..

1,542

82

FW2414957.UP.FTS.B,

23.71%,

1/12/25

..

7,909

7,871

FW2414041.UP.FTS.B,

23.78%,

1/12/25

..

2,663

2,638

FW2416686.UP.FTS.B,

24.84%,

1/12/25

..

1,621

1,602

FW2415083.UP.FTS.B,

27.47%,

1/12/25

..

4,735

281

FW2414437.UP.FTS.B,

27.76%,

1/12/25

..

2,036

2,017

L2636718.UP.FTS.B,

6.51%,

2/15/25

....

666

178

L2631679.UP.FTS.B,

6.61%,

2/15/25

....

3,166

3,133

L2632890.UP.FTS.B,

6.77%,

2/15/25

....

6,338

6,272

L2634175.UP.FTS.B,

6.95%,

2/15/25

....

5,719

5,660

L2634671.UP.FTS.B,

8.48%,

2/15/25

....

22,418

22,218

L2634533.UP.FTS.B,

8.5%,

2/15/25

.....

12,812

12,697

L2634613.UP.FTS.B,

8.55%,

2/15/25

....

4,481

4,441

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2633581.UP.FTS.B,

9.23%,

2/15/25

....

$

1,348

$

1,335

FW2634377.UP.FTS.B,

10%,

2/15/25

....

646

640

L2634177.UP.FTS.B,

15.21%,

2/15/25

....

1,459

1,450

L2636760.UP.FTS.B,

15.98%,

2/15/25

....

9,164

8,666

FW2634284.UP.FTS.B,

16.22%,

2/15/25

..

6,664

6,623

L2634751.UP.FTS.B,

16.31%,

2/15/25

....

1,267

1,256

L2631912.UP.FTS.B,

16.39%,

2/15/25

....

4,002

3,977

L2636882.UP.FTS.B,

16.54%,

2/15/25

....

3,671

3,649

L2632664.UP.FTS.B,

17.32%,

2/15/25

....

696

659

L2633074.UP.FTS.B,

18.31%,

2/15/25

....

2,378

2,342

L2634161.UP.FTS.B,

18.39%,

2/15/25

....

2,828

2,811

L2631294.UP.FTS.B,

19.11%,

2/15/25

....

727

200

L2632627.UP.FTS.B,

20.79%,

2/15/25

....

6,812

6,737

L2634669.UP.FTS.B,

20.85%,

2/15/25

....

7,086

7,009

L2631763.UP.FTS.B,

20.93%,

2/15/25

....

5,924

5,887

FW2631365.UP.FTS.B,

21.86%,

2/15/25

..

4,450

4,401

FW2637244.UP.FTS.B,

22.65%,

2/15/25

..

687

680

FW2633708.UP.FTS.B,

25.99%,

2/15/25

..

4,534

4,484

FW2631136.UP.FTS.B,

27.13%,

2/15/25

..

1,156

1,138

FW2631651.UP.FTS.B,

27.52%,

2/15/25

..

4,565

4,514

FW2635191.UP.FTS.B,

29%,

2/15/25

....

3,140

476

FW2631826.UP.FTS.B,

31.23%,

2/15/25

..

3,769

3,723

L2639657.UP.FTS.B,

5.92%,

2/16/25

....

948

938

L2639334.UP.FTS.B,

6.42%,

2/16/25

....

4,109

4,064

FW2638680.UP.FTS.B,

7.01%,

2/16/25

...

1,398

1,384

L2639360.UP.FTS.B,

7.14%,

2/16/25

....

3,375

3,339

L2643179.UP.FTS.B,

7.28%,

2/16/25

....

233

231

L2638987.UP.FTS.B,

9.25%,

2/16/25

....

1,468

1,454

L2642308.UP.FTS.B,

10.18%,

2/16/25

....

6,462

6,409

FW2644636.UP.FTS.B,

10.31%,

2/16/25

..

645

639

L2640736.UP.FTS.B,

10.49%,

2/16/25

....

971

963

FW2639791.UP.FTS.B,

11.24%,

2/16/25

..

3,249

3,224

FW2644605.UP.FTS.B,

13.5%,

2/16/25

...

6,233

6,180

FW2640049.UP.FTS.B,

13.66%,

2/16/25

..

7,043

6,990

FW2641858.UP.FTS.B,

14.06%,

2/16/25

..

3,591

3,571

FW2640344.UP.FTS.B,

14.17%,

2/16/25

..

1,686

1,593

L2644835.UP.FTS.B,

14.27%,

2/16/25

....

8,567

8,502

L2639914.UP.FTS.B,

14.3%,

2/16/25

....

4,620

4,597

L2573704.UP.FTS.B,

14.5%,

2/16/25

....

2,643

2,629

FW2642814.UP.FTS.B,

15.64%,

2/16/25

..

3,668

3,640

L2644825.UP.FTS.B,

15.86%,

2/16/25

....

866

853

L2640305.UP.FTS.B,

16.68%,

2/16/25

....

4,343

4,321

FW2644294.UP.FTS.B,

16.92%,

2/16/25

..

2,205

2,194

FW2639338.UP.FTS.B,

17.66%,

2/16/25

..

6,705

6,671

L2641019.UP.FTS.B,

18.97%,

2/16/25

....

10,130

10,079

L2639930.UP.FTS.B,

19.1%,

2/16/25

....

1,487

1,479

L2644145.UP.FTS.B,

19.28%,

2/16/25

....

1,850

521

L2637891.UP.FTS.B,

19.29%,

2/16/25

....

5,680

830

FW2639706.UP.FTS.B,

19.94%,

2/16/25

..

4,342

4,300

L2641952.UP.FTS.B,

19.98%,

2/16/25

....

2,986

2,971

L2641810.UP.FTS.B,

22.34%,

2/16/25

....

698

688

FW2643292.UP.FTS.B,

23.05%,

2/16/25

..

3,373

3,341

L2639553.UP.FTS.B,

23.86%,

2/16/25

....

8,647

1,301

FW2639697.UP.FTS.B,

24.32%,

2/16/25

..

1,219

1,154

FW2638912.UP.FTS.B,

24.71%,

2/16/25

..

2,005

144

FW2643827.UP.FTS.B,

25.41%,

2/16/25

..

3,481

3,449

FW2643384.UP.FTS.B,

26.02%,

2/16/25

..

2,824

2,790

L2627901.UP.FTS.B,

28.31%,

2/16/25

....

9,937

9,844

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

121

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2644671.UP.FTS.B,

5.08%,

2/17/25

....

$

6,284

$

6,221

L2645028.UP.FTS.B,

11.5%,

2/17/25

.....

2,370

2,240

L2604120.UP.FTS.B,

17.7%,

2/17/25

....

6,731

6,681

L1869314.UP.FTS.B,

21.8%,

3/18/25

....

4,261

309

FW1872890.UP.FTS.B,

24.47%,

3/18/25

..

701

691

L2006292.UP.FTS.B,

11.48%,

4/09/25

....

840

831

L2006010.UP.FTS.B,

18.05%,

4/09/25

....

909

898

L2008991.UP.FTS.B,

19.31%,

4/09/25

....

6,556

6,495

FW2007173.UP.FTS.B,

24.62%,

4/09/25

..

781

774

FW2008582.UP.FTS.B,

28.77%,

4/09/25

..

883

871

L2076313.UP.FTS.B,

15.86%,

4/19/25

....

866

856

FW2078328.UP.FTS.B,

19.87%,

4/19/25

..

3,554

3,528

L2078933.UP.FTS.B,

22.16%,

4/19/25

....

8,689

8,194

FW2077645.UP.FTS.B,

27.94%,

4/28/25

..

1,880

1,850

L2197032.UP.FTS.B,

22.34%,

5/07/25

....

1,822

131

L2200082.UP.FTS.B,

23.29%,

5/08/25

....

2,362

2,312

L2201277.UP.FTS.B,

23.37%,

5/08/25

....

2,381

2,337

FW2202263.UP.FTS.B,

23.94%,

5/08/25

..

1,122

1,101

FW2201445.UP.FTS.B,

27.41%,

5/08/25

..

4,242

47

FW2205860.UP.FTS.B,

28.57%,

5/08/25

..

1,625

1,600

FW2202524.UP.FTS.B,

28.64%,

5/08/25

..

1,393

1,368

FW2408831.UP.FTS.B,

10.24%,

6/11/25

..

3,719

271

FW2412930.UP.FTS.B,

12.99%,

6/11/25

..

3,748

982

FW2410127.UP.FTS.B,

20.85%,

6/11/25

..

666

657

L2415625.UP.FTS.B,

8.97%,

6/12/25

....

2,291

2,260

L2414544.UP.FTS.B,

14.43%,

6/12/25

....

1,942

1,918

FW2414761.UP.FTS.B,

23.39%,

6/12/25

..

809

(5)

FW2417137.UP.FTS.B,

28.46%,

6/12/25

..

8,436

1,253

FW1710146.UP.FTS.B,

13.91%,

7/14/25

..

1,704

1,699

FW2631536.UP.FTS.B,

18.63%,

7/15/25

..

1,073

296

L2639542.UP.FTS.B,

8.21%,

7/16/25

....

1,757

1,735

FW2639899.UP.FTS.B,

18.71%,

7/16/25

..

7,419

7,342

FW2639247.UP.FTS.B,

27.74%,

7/16/25

..

6,600

6,210

FW1873996.UP.FTS.B,

28.24%,

8/18/25

..

4,141

635

FW1872459.UP.FTS.B,

28.31%,

8/18/25

..

491

486

L2007014.UP.FTS.B,

20.64%,

9/09/25

....

3,059

3,044

FW2009505.UP.FTS.B,

26.53%,

9/09/25

..

2,426

172

FW2005459.UP.FTS.B,

26.79%,

9/09/25

..

763

218

L2195122.UP.FTS.B,

20.26%,

10/07/25

...

3,982

3,922

L2206982.UP.FTS.B,

9.5%,

10/08/25

....

631

624

FW2418164.UP.FTS.B,

9.41%,

11/12/25

..

1,646

1,629

FW2418415.UP.FTS.B,

26.15%,

11/12/25

.

10,624

3,034

FW2414944.UP.FTS.B,

29.31%,

11/12/25

.

2,147

315

FW2635737.UP.FTS.B,

5.82%,

12/15/25

..

2,599

353

FW2645054.UP.FTS.B,

11.7%,

12/17/25

..

5,546

785

L1711804.UP.FTS.B,

9.08%,

9/14/26

.....

7,305

7,246

L1709773.UP.FTS.B,

9.1%,

9/14/26

.....

1,461

1,449

L1709466.UP.FTS.B,

9.12%,

9/14/26

....

8,032

7,967

L1711063.UP.FTS.B,

9.57%,

9/14/26

.....

10,262

10,178

L1711325.UP.FTS.B,

9.58%,

9/14/26

.....

12,486

12,379

L1710250.UP.FTS.B,

9.72%,

9/14/26

....

5,870

5,819

L1710722.UP.FTS.B,

9.73%,

9/14/26

....

14,676

14,556

L1709358.UP.FTS.B,

10.97%,

9/14/26

....

31,178

30,897

L1709982.UP.FTS.B,

11.59%,

9/14/26

....

8,609

8,530

FW1711975.UP.FTS.B,

11.76%,

9/14/26

..

21,268

2,924

L1711112.UP.FTS.B,

12.03%,

9/14/26

....

14,903

14,774

FW1709227.UP.FTS.B,

12.04%,

9/14/26

..

1,186

1,172

L1711960.UP.FTS.B,

12.48%,

9/14/26

....

2,242

2,222

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1708544.UP.FTS.B,

12.57%,

9/14/26

....

$

2,979

$

2,953

L1709990.UP.FTS.B,

12.82%,

9/14/26

....

1,747

1,730

L1709442.UP.FTS.B,

13.19%,

9/14/26

....

37,531

37,205

L1712219.UP.FTS.B,

13.34%,

9/14/26

....

2,533

2,505

L1711120.UP.FTS.B,

13.48%,

9/14/26

....

4,813

4,771

L1711626.UP.FTS.B,

13.98%,

9/14/26

....

15,088

14,957

L1705354.UP.FTS.B,

14.33%,

9/14/26

....

18,146

17,989

L1709686.UP.FTS.B,

14.5%,

9/14/26

....

15,140

15,009

L1712030.UP.FTS.B,

15.05%,

9/14/26

....

2,278

2,257

L1709833.UP.FTS.B,

15.27%,

9/14/26

....

9,125

9,038

FW1711888.UP.FTS.B,

15.29%,

9/14/26

..

7,606

7,534

L1711759.UP.FTS.B,

15.35%,

9/14/26

....

7,610

7,537

FW1710596.UP.FTS.B,

15.85%,

9/14/26

..

3,816

3,779

L1710000.UP.FTS.B,

16.05%,

9/14/26

....

14,737

14,582

FW1711241.UP.FTS.B,

16.08%,

9/14/26

..

3,057

3,028

L1707201.UP.FTS.B,

16.24%,

9/14/26

....

11,475

11,365

L1708577.UP.FTS.B,

16.66%,

9/14/26

....

5,447

5,387

L1710867.UP.FTS.B,

16.91%,

9/14/26

....

3,392

246

FW1709135.UP.FTS.B,

16.99%,

9/14/26

..

3,982

1,070

L1709613.UP.FTS.B,

17.03%,

9/14/26

....

2,306

2,284

L1711610.UP.FTS.B,

17.32%,

9/14/26

....

19,247

19,041

L1708807.UP.FTS.B,

17.72%,

9/14/26

....

7,717

7,643

L1711190.UP.FTS.B,

17.79%,

9/14/26

....

5,019

4,965

L1710981.UP.FTS.B,

17.81%,

9/14/26

....

7,941

7,474

L1710421.UP.FTS.B,

18.12%,

9/14/26

....

11,386

11,234

FW1709424.UP.FTS.B,

18.79%,

9/14/26

..

11,649

11,537

FW1709134.UP.FTS.B,

18.89%,

9/14/26

..

8,060

2,241

L1710731.UP.FTS.B,

18.91%,

9/14/26

....

2,331

2,306

L1712201.UP.FTS.B,

18.94%,

9/14/26

....

1,928

1,907

L1709877.UP.FTS.B,

19.26%,

9/14/26

....

3,824

3,781

L1711904.UP.FTS.B,

19.49%,

9/14/26

....

15,507

15,486

L1711008.UP.FTS.B,

19.81%,

9/14/26

....

7,811

7,803

L1711215.UP.FTS.B,

19.91%,

9/14/26

....

4,834

4,600

L1709643.UP.FTS.B,

20.04%,

9/14/26

....

3,128

3,094

L1708842.UP.FTS.B,

20.24%,

9/14/26

....

6,131

6,118

L1708429.UP.FTS.B,

20.63%,

9/14/26

....

2,354

2,351

L1710126.UP.FTS.B,

20.84%,

9/14/26

....

5,495

5,489

L1708585.UP.FTS.B,

20.86%,

9/14/26

....

23,549

23,522

L1711983.UP.FTS.B,

20.92%,

9/14/26

....

4,077

1,138

FW1711817.UP.FTS.B,

20.95%,

9/14/26

..

3,773

3,769

L1711180.UP.FTS.B,

21%,

9/14/26

......

18,888

18,828

L1711790.UP.FTS.B,

21.29%,

9/14/26

....

1,036

1,000

FW1708681.UP.FTS.B,

21.58%,

9/14/26

..

500

491

FW1712143.UP.FTS.B,

21.68%,

9/14/26

..

3,946

3,942

L1709159.UP.FTS.B,

22.01%,

9/14/26

....

11,979

11,833

L1707499.UP.FTS.B,

22.03%,

9/14/26

....

7,892

7,882

L1710829.UP.FTS.B,

22.11%,

9/14/26

....

3,956

3,917

L1709427.UP.FTS.B,

22.21%,

9/14/26

....

3,166

3,162

L1710706.UP.FTS.B,

22.62%,

9/14/26

....

2,441

2,437

FW1708581.UP.FTS.B,

23.53%,

9/14/26

..

10,297

10,224

L1712099.UP.FTS.B,

23.67%,

9/14/26

....

1,914

137

L1704673.UP.FTS.B,

23.71%,

9/14/26

....

8,840

8,815

L1709189.UP.FTS.B,

24.05%,

9/14/26

....

29,327

4,402

FW1709337.UP.FTS.B,

24.31%,

9/14/26

..

21,257

380

L1712413.UP.FTS.B,

24.71%,

9/14/26

....

1,121

78

L1709924.UP.FTS.B,

24.74%,

9/14/26

....

1,239

1,179

L1710379.UP.FTS.B,

24.83%,

9/14/26

....

1,043

1,042

L1710592.UP.FTS.B,

25.03%,

9/14/26

....

1,044

1,043

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L1706788.UP.FTS.B,

25.12%,

9/14/26

....

$

1,447

$

1,445

FW1712236.UP.FTS.B,

25.24%,

9/14/26

..

7,219

518

L1710759.UP.FTS.B,

25.29%,

9/14/26

....

885

884

L1712021.UP.FTS.B,

25.29%,

9/14/26

....

2,574

2,571

L1709050.UP.FTS.B,

25.44%,

9/14/26

....

2,415

2,412

L1712014.UP.FTS.B,

25.46%,

9/14/26

....

1,369

1,367

L1710375.UP.FTS.B,

25.49%,

9/14/26

....

1,608

1,606

L1707815.UP.FTS.B,

25.5%,

9/14/26

....

5,929

889

L1711582.UP.FTS.B,

25.87%,

9/14/26

....

21,506

20,464

L1709668.UP.FTS.B,

25.91%,

9/14/26

....

1,210

1,197

L1708800.UP.FTS.B,

25.93%,

9/14/26

....

4,103

45

L1711668.UP.FTS.B,

26.18%,

9/14/26

....

3,798

3,793

L1704675.UP.FTS.B,

26.55%,

9/14/26

....

5,277

5,260

FW1711990.UP.FTS.B,

26.83%,

9/14/26

..

7,458

7,448

FW1712397.UP.FTS.B,

27.52%,

9/14/26

..

2,540

2,414

FW1711280.UP.FTS.B,

28.58%,

9/14/26

..

17,579

16,719

FW1712164.UP.FTS.B,

28.97%,

9/14/26

..

2,881

2,872

FW1701558.UP.FTS.B,

29.38%,

9/14/26

..

9,833

9,817

FW1709270.UP.FTS.B,

29.95%,

9/14/26

..

4,445

4,438

FW1711943.UP.FTS.B,

30.23%,

9/14/26

..

4,165

4,153

FW1708159.UP.FTS.B,

30.6%,

9/14/26

...

1,540

1,533

FW1710725.UP.FTS.B,

30.72%,

9/14/26

..

2,556

2,540

FW1712184.UP.FTS.B,

30.77%,

9/14/26

..

4,595

4,582

FW1708283.UP.FTS.B,

30.95%,

9/14/26

..

3,308

3,303

FW1709045.UP.FTS.B,

31.04%,

9/14/26

..

2,481

2,477

FW1711778.UP.FTS.B,

31.18%,

9/14/26

..

2,732

2,727

FW1709206.UP.FTS.B,

31.24%,

9/14/26

..

1,159

1,157

FW1709237.UP.FTS.B,

31.24%,

9/14/26

..

4,139

4,132

FW1712567.UP.FTS.B,

31.44%,

9/14/26

..

2,403

2,399

FW1711131.UP.FTS.B,

31.51%,

9/14/26

..

1,946

1,851

FW1708209.UP.FTS.B,

31.55%,

9/14/26

..

4,721

4,678

FW1708897.UP.FTS.B,

32.27%,

9/14/26

..

2,603

769

FW1707590.UP.FTS.B,

32.85%,

9/14/26

..

4,312

303

L1873953.UP.FTS.B,

6.89%,

10/18/26

....

36,730

36,438

FW1872946.UP.FTS.B,

7.02%,

10/18/26

..

4,783

4,742

L1873658.UP.FTS.B,

8.56%,

10/18/26

....

27,129

26,916

L1873576.UP.FTS.B,

10.5%,

10/18/26

....

8,104

7,617

L1871496.UP.FTS.B,

10.72%,

10/18/26

...

13,944

13,828

L1873797.UP.FTS.B,

10.87%,

10/18/26

...

3,833

3,604

L1874550.UP.FTS.B,

10.94%,

10/18/26

...

6,025

5,974

L1873178.UP.FTS.B,

11.12%,

10/18/26

...

5,969

5,919

L1873001.UP.FTS.B,

11.14%,

10/18/26

...

5,667

5,620

L1872155.UP.FTS.B,

11.36%,

10/18/26

...

1,518

1,505

L1873842.UP.FTS.B,

11.7%,

10/18/26

....

13,194

13,083

L1873090.UP.FTS.B,

11.9%,

10/18/26

....

1,139

1,129

L1873798.UP.FTS.B,

12.44%,

10/18/26

...

3,047

3,021

L1873392.UP.FTS.B,

12.58%,

10/18/26

...

9,759

9,677

L1874099.UP.FTS.B,

12.59%,

10/18/26

...

13,702

13,586

L1873896.UP.FTS.B,

12.61%,

10/18/26

...

4,507

245

L1873977.UP.FTS.B,

12.66%,

10/18/26

...

9,668

9,586

L1872876.UP.FTS.B,

13.07%,

10/18/26

...

1,912

1,896

L1874284.UP.FTS.B,

13.39%,

10/18/26

...

6,129

6,078

L1873391.UP.FTS.B,

13.44%,

10/18/26

...

7,664

7,600

L1873434.UP.FTS.B,

13.54%,

10/18/26

...

2,275

2,255

FW1873975.UP.FTS.B,

13.55%,

10/18/26

.

4,985

4,943

FW1874302.UP.FTS.B,

13.81%,

10/18/26

.

38,300

37,976

L1873174.UP.FTS.B,

13.86%,

10/18/26

...

12,036

11,912

L1874369.UP.FTS.B,

14.32%,

10/18/26

...

6,167

6,101

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1874287.UP.FTS.B,

14.37%,

10/18/26

...

$

12,332

$

12,229

FW1874328.UP.FTS.B,

14.8%,

10/18/26

..

7,726

7,655

L1860167.UP.FTS.B,

14.86%,

10/18/26

...

1,314

1,302

L1873885.UP.FTS.B,

15.48%,

10/18/26

...

14,738

14,615

L1874280.UP.FTS.B,

15.62%,

10/18/26

...

23,868

22,467

L1873194.UP.FTS.B,

15.66%,

10/18/26

...

1,961

1,943

L1873835.UP.FTS.B,

15.93%,

10/18/26

...

7,951

7,484

L1873166.UP.FTS.B,

16.01%,

10/18/26

...

15,562

15,417

L1872550.UP.FTS.B,

16.04%,

10/18/26

...

3,891

3,850

L1872814.UP.FTS.B,

16.38%,

10/18/26

...

11,651

11,541

L1874290.UP.FTS.B,

16.39%,

10/18/26

...

2,801

727

L1873320.UP.FTS.B,

16.64%,

10/18/26

...

1,562

1,547

L1873808.UP.FTS.B,

16.88%,

10/18/26

...

4,301

4,256

L1874262.UP.FTS.B,

17.04%,

10/18/26

...

5,024

4,969

L1873419.UP.FTS.B,

17.21%,

10/18/26

...

3,917

3,881

L1873707.UP.FTS.B,

17.21%,

10/18/26

...

9,406

9,306

L1874383.UP.FTS.B,

17.27%,

10/18/26

...

7,209

7,134

FW1869707.UP.FTS.B,

17.52%,

10/18/26

.

11,771

11,648

FW1874259.UP.FTS.B,

17.55%,

10/18/26

.

25,671

25,397

FW1873390.UP.FTS.B,

17.6%,

10/18/26

..

9,421

9,322

L1873345.UP.FTS.B,

17.63%,

10/18/26

...

4,648

4,597

FW1874335.UP.FTS.B,

17.64%,

10/18/26

.

31,484

31,216

L1874163.UP.FTS.B,

17.64%,

10/18/26

...

5,485

5,427

FW1874438.UP.FTS.B,

18.01%,

10/18/26

.

4,350

4,271

L1868602.UP.FTS.B,

18.18%,

10/18/26

...

2,757

2,728

L1872889.UP.FTS.B,

18.38%,

10/18/26

...

16,127

15,182

FW1873109.UP.FTS.B,

18.49%,

10/18/26

.

7,495

7,416

L1872957.UP.FTS.B,

18.56%,

10/18/26

...

10,576

2,944

L1874471.UP.FTS.B,

18.86%,

10/18/26

...

993

977

L1872626.UP.FTS.B,

19.06%,

10/18/26

...

5,700

5,639

L1873648.UP.FTS.B,

19.32%,

10/18/26

...

3,570

3,526

L1873350.UP.FTS.B,

19.42%,

10/18/26

...

9,184

9,078

FW1874119.UP.FTS.B,

19.46%,

10/18/26

.

11,898

11,772

L1873155.UP.FTS.B,

19.56%,

10/18/26

...

2,622

2,590

L1873356.UP.FTS.B,

19.63%,

10/18/26

...

1,350

1,349

L1873176.UP.FTS.B,

19.77%,

10/18/26

...

11,918

11,910

FW1873722.UP.FTS.B,

19.81%,

10/18/26

.

5,563

5,505

L1872983.UP.FTS.B,

19.88%,

10/18/26

...

4,785

4,727

FW1873856.UP.FTS.B,

20.15%,

10/18/26

.

4,777

4,726

L1873825.UP.FTS.B,

20.43%,

10/18/26

...

39,865

39,835

L1873221.UP.FTS.B,

20.79%,

10/18/26

...

1,598

1,581

L1872967.UP.FTS.B,

21.07%,

10/18/26

...

5,197

5,192

L1866820.UP.FTS.B,

21.37%,

10/18/26

...

20,093

20,041

L1874536.UP.FTS.B,

21.47%,

10/18/26

...

4,330

4,284

L1873820.UP.FTS.B,

21.93%,

10/18/26

...

2,732

2,730

L1872738.UP.FTS.B,

21.97%,

10/18/26

...

1,206

1,203

L1872849.UP.FTS.B,

21.97%,

10/18/26

...

1,918

1,894

L1873278.UP.FTS.B,

21.98%,

10/18/26

...

4,742

4,738

L1873489.UP.FTS.B,

22.12%,

10/18/26

...

12,066

12,057

L1872778.UP.FTS.B,

22.26%,

10/18/26

...

3,321

960

L1872381.UP.FTS.B,

22.4%,

10/18/26

....

2,014

2,012

L1872881.UP.FTS.B,

22.46%,

10/18/26

...

29,099

28,951

L1872904.UP.FTS.B,

22.48%,

10/18/26

...

4,029

4,026

L1873504.UP.FTS.B,

22.55%,

10/18/26

...

1,061

1,057

L1874352.UP.FTS.B,

22.6%,

10/18/26

....

26,366

26,345

L1874034.UP.FTS.B,

22.67%,

10/18/26

...

1,775

1,773

L1873496.UP.FTS.B,

22.72%,

10/18/26

...

13,169

13,132

L1873741.UP.FTS.B,

22.96%,

10/18/26

...

1,363

1,361

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

123

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW1873716.UP.FTS.B,

23.2%,

10/18/26

..

$

5,252

$

800

L1873307.UP.FTS.B,

23.79%,

10/18/26

...

1,219

1,216

L1873349.UP.FTS.B,

23.8%,

10/18/26

....

1,649

247

L1872931.UP.FTS.B,

23.85%,

10/18/26

...

4,057

4,054

L1873492.UP.FTS.B,

23.95%,

10/18/26

...

14,133

14,117

L1874063.UP.FTS.B,

24.01%,

10/18/26

...

5,684

5,679

L1873180.UP.FTS.B,

24.02%,

10/18/26

...

812

811

L1872601.UP.FTS.B,

24.04%,

10/18/26

...

4,161

3,960

L1873408.UP.FTS.B,

24.34%,

10/18/26

...

2,440

2,438

FW1873441.UP.FTS.B,

24.5%,

10/18/26

..

9,776

702

L1873696.UP.FTS.B,

24.62%,

10/18/26

...

3,941

1,153

L1870381.UP.FTS.B,

24.72%,

10/18/26

...

5,640

5,632

L1873373.UP.FTS.B,

24.83%,

10/18/26

...

4,080

4,069

L1868887.UP.FTS.B,

24.97%,

10/18/26

...

12,021

11,996

L1872882.UP.FTS.B,

24.99%,

10/18/26

...

2,149

325

L1872784.UP.FTS.B,

25.04%,

10/18/26

...

5,305

5,301

L1874475.UP.FTS.B,

25.04%,

10/18/26

...

1,877

1,875

L1873877.UP.FTS.B,

25.05%,

10/18/26

...

3,677

3,666

L1874065.UP.FTS.B,

25.09%,

10/18/26

...

8,126

7,735

L1872998.UP.FTS.B,

25.1%,

10/18/26

....

817

807

FW1874269.UP.FTS.B,

25.11%,

10/18/26

.

4,082

4,078

L1873308.UP.FTS.B,

25.11%,

10/18/26

...

1,245

1,228

L1873304.UP.FTS.B,

25.15%,

10/18/26

...

1,337

1,334

FW1873516.UP.FTS.B,

25.23%,

10/18/26

.

12,328

12,297

L1872941.UP.FTS.B,

25.23%,

10/18/26

...

1,307

1,306

FW1872050.UP.FTS.B,

25.29%,

10/18/26

.

3,499

248

FW1873077.UP.FTS.B,

25.29%,

10/18/26

.

2,451

2,449

L1870436.UP.FTS.B,

25.29%,

10/18/26

...

2,288

2,286

L1873438.UP.FTS.B,

25.33%,

10/18/26

...

1,131

80

L1873627.UP.FTS.B,

25.33%,

10/18/26

...

777

774

L1805232.UP.FTS.B,

25.36%,

10/18/26

...

4,496

4,492

L1872764.UP.FTS.B,

25.4%,

10/18/26

....

1,227

1,226

L1869327.UP.FTS.B,

25.42%,

10/18/26

...

2,454

2,447

L1872094.UP.FTS.B,

25.42%,

10/18/26

...

3,545

254

L1873079.UP.FTS.B,

25.43%,

10/18/26

...

1,144

1,139

L1873235.UP.FTS.B,

25.45%,

10/18/26

...

5,377

5,371

L1874416.UP.FTS.B,

25.46%,

10/18/26

...

24,358

24,328

L1873049.UP.FTS.B,

25.47%,

10/18/26

...

4,010

3,999

L1874151.UP.FTS.B,

25.48%,

10/18/26

...

900

899

L1874395.UP.FTS.B,

25.5%,

10/18/26

....

6,882

2,012

L1873528.UP.FTS.B,

25.71%,

10/18/26

...

6,059

6,054

L1874370.UP.FTS.B,

25.71%,

10/18/26

...

4,391

4,385

L1873151.UP.FTS.B,

25.86%,

10/18/26

...

1,776

1,767

L1874250.UP.FTS.B,

25.87%,

10/18/26

...

8,547

8,518

L1874041.UP.FTS.B,

26.01%,

10/18/26

...

6,115

6,102

FW1874338.UP.FTS.B,

26.12%,

10/18/26

.

8,216

8,193

L1870887.UP.FTS.B,

26.18%,

10/18/26

...

1,395

1,394

L1874047.UP.FTS.B,

26.3%,

10/18/26

....

833

793

FW1874080.UP.FTS.B,

26.63%,

10/18/26

.

1,632

1,591

FW1874049.UP.FTS.B,

26.74%,

10/18/26

.

8,490

8,072

FW1874429.UP.FTS.B,

27.19%,

10/18/26

.

3,134

3,125

FW1873145.UP.FTS.B,

27.24%,

10/18/26

.

8,182

8,170

FW1873640.UP.FTS.B,

27.67%,

10/18/26

.

29,329

27,944

FW1873344.UP.FTS.B,

27.72%,

10/18/26

.

11,572

11,560

FW1873866.UP.FTS.B,

28.25%,

10/18/26

.

816

814

FW1872622.UP.FTS.B,

28.59%,

10/18/26

.

2,479

2,476

FW1873950.UP.FTS.B,

28.68%,

10/18/26

.

1,831

1,825

FW1874321.UP.FTS.B,

28.99%,

10/18/26

.

1,330

1,329

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW1874251.UP.FTS.B,

29.26%,

10/18/26

.

$

4,163

$

4,159

FW1874208.UP.FTS.B,

29.47%,

10/18/26

.

2,916

2,913

FW1873160.UP.FTS.B,

30.04%,

10/18/26

.

1,873

1,867

FW1874215.UP.FTS.B,

30.05%,

10/18/26

.

15,466

(7)

FW1874445.UP.FTS.B,

30.14%,

10/18/26

.

3,596

254

FW1873268.UP.FTS.B,

30.52%,

10/18/26

.

1,507

1,505

FW1872558.UP.FTS.B,

30.55%,

10/18/26

.

1,088

1,087

FW1872779.UP.FTS.B,

30.59%,

10/18/26

.

1,633

1,629

FW1873577.UP.FTS.B,

30.59%,

10/18/26

.

5,023

5,018

FW1872937.UP.FTS.B,

30.6%,

10/18/26

..

3,333

3,329

FW1873917.UP.FTS.B,

30.73%,

10/18/26

.

1,170

82

FW1873110.UP.FTS.B,

30.82%,

10/18/26

.

3,520

3,516

FW1873983.UP.FTS.B,

30.83%,

10/18/26

.

1,929

1,924

FW1873168.UP.FTS.B,

30.88%,

10/18/26

.

3,102

3,098

FW1873018.UP.FTS.B,

31%,

10/18/26

...

933

889

FW1874190.UP.FTS.B,

31.02%,

10/18/26

.

15,833

15,799

FW1873583.UP.FTS.B,

31.05%,

10/18/26

.

1,172

82

FW1874435.UP.FTS.B,

31.05%,

10/18/26

.

1,510

1,508

FW1873245.UP.FTS.B,

31.06%,

10/18/26

.

1,174

1,173

FW1873234.UP.FTS.B,

31.11%,

10/18/26

.

3,677

3,672

FW1873980.UP.FTS.B,

31.12%,

10/18/26

.

2,030

2,024

FW1873675.UP.FTS.B,

31.14%,

10/18/26

.

18,273

18,166

FW1873932.UP.FTS.B,

31.15%,

10/18/26

.

3,132

174

FW1874112.UP.FTS.B,

31.18%,

10/18/26

.

4,113

4,109

FW1873036.UP.FTS.B,

31.2%,

10/18/26

..

2,690

2,682

FW1872966.UP.FTS.B,

31.83%,

10/18/26

.

3,872

3,867

FW1872975.UP.FTS.B,

32.03%,

10/18/26

.

2,612

2,609

FW1873464.UP.FTS.B,

22.91%,

11/03/26

.

2,459

2,453

FW2008579.UP.FTS.B,

5.93%,

11/09/26

..

37,274

37,005

L2010047.UP.FTS.B,

7.23%,

11/09/26

....

7,501

7,437

L2005604.UP.FTS.B,

7.24%,

11/09/26

....

18,050

17,899

L1947969.UP.FTS.B,

8.25%,

11/09/26

....

2,346

2,327

L2004931.UP.FTS.B,

8.92%,

11/09/26

....

14,439

14,320

FW2005584.UP.FTS.B,

8.98%,

11/09/26

..

12,164

12,064

L2009940.UP.FTS.B,

9.06%,

11/09/26

....

25,859

25,646

L2009771.UP.FTS.B,

9.73%,

11/09/26

....

3,819

3,782

L2010120.UP.FTS.B,

9.74%,

11/09/26

....

15,274

15,149

L1982018.UP.FTS.B,

9.85%,

11/09/26

....

3,821

3,790

L2005005.UP.FTS.B,

9.85%,

11/09/26

....

15,287

15,142

L2007402.UP.FTS.B,

10.3%,

11/09/26

....

7,653

7,591

L2008329.UP.FTS.B,

10.3%,

11/09/26

....

4,598

4,560

L2008701.UP.FTS.B,

10.48%,

11/09/26

...

5,317

5,265

L2009188.UP.FTS.B,

10.68%,

11/09/26

...

20,114

19,914

L2008677.UP.FTS.B,

10.77%,

11/09/26

...

7,664

7,591

L2009665.UP.FTS.B,

10.88%,

11/09/26

...

6,536

6,474

L2008105.UP.FTS.B,

10.89%,

11/09/26

...

17,431

17,197

L2006261.UP.FTS.B,

10.9%,

11/09/26

....

4,230

4,190

L2009417.UP.FTS.B,

11.04%,

11/09/26

...

3,734

3,697

L2004983.UP.FTS.B,

11.09%,

11/09/26

...

18,550

18,393

L2009190.UP.FTS.B,

11.31%,

11/09/26

...

15,344

15,199

L2006518.UP.FTS.B,

11.38%,

11/09/26

...

2,612

2,586

L1977043.UP.FTS.B,

11.43%,

11/09/26

...

4,165

4,126

FW2006974.UP.FTS.B,

11.44%,

11/09/26

.

9,643

9,552

FW2007489.UP.FTS.B,

11.63%,

11/09/26

.

5,647

1,427

L2008088.UP.FTS.B,

12.1%,

11/09/26

....

8,131

8,055

L2007707.UP.FTS.B,

12.19%,

11/09/26

...

11,513

11,403

L2005904.UP.FTS.B,

12.3%,

11/09/26

....

2,016

2,000

L1991534.UP.FTS.B,

12.48%,

11/09/26

...

5,222

2,786

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2005066.UP.FTS.B,

12.51%,

11/09/26

...

$

11,644

$

11,535

L2007649.UP.FTS.B,

12.88%,

11/09/26

...

7,780

7,707

FW2009636.UP.FTS.B,

13.06%,

11/09/26

.

4,672

4,628

L2009536.UP.FTS.B,

13.07%,

11/09/26

...

4,672

4,629

L2009639.UP.FTS.B,

13.58%,

11/09/26

...

11,715

11,606

L2009960.UP.FTS.B,

13.6%,

11/09/26

....

2,355

2,332

FW2004957.UP.FTS.B,

13.66%,

11/09/26

.

1,953

1,935

L2006397.UP.FTS.B,

13.66%,

11/09/26

...

7,813

7,741

L2008524.UP.FTS.B,

14.03%,

11/09/26

...

15,584

15,438

L2008113.UP.FTS.B,

14.06%,

11/09/26

...

16,838

16,682

L2009683.UP.FTS.B,

14.08%,

11/09/26

...

4,703

4,656

L2009362.UP.FTS.B,

14.1%,

11/09/26

....

3,990

2,119

L2009234.UP.FTS.B,

14.43%,

11/09/26

...

11,770

11,661

L2008618.UP.FTS.B,

14.73%,

11/09/26

...

4,716

4,672

L2009287.UP.FTS.B,

14.91%,

11/09/26

...

4,563

4,521

FW2009310.UP.FTS.B,

15.19%,

11/09/26

.

3,779

3,741

L2009277.UP.FTS.B,

15.37%,

11/09/26

...

7,333

7,237

L2008691.UP.FTS.B,

15.38%,

11/09/26

...

3,944

3,908

L2008772.UP.FTS.B,

15.55%,

11/09/26

...

7,895

7,806

L2008089.UP.FTS.B,

15.65%,

11/09/26

...

4,219

179

L2007900.UP.FTS.B,

15.91%,

11/09/26

...

2,373

2,346

L2009243.UP.FTS.B,

15.94%,

11/09/26

...

7,912

7,823

FW2006940.UP.FTS.B,

15.96%,

11/09/26

.

2,049

2,013

FW2006699.UP.FTS.B,

16.1%,

11/09/26

..

8,709

629

L2005019.UP.FTS.B,

16.29%,

11/09/26

...

8,771

8,663

L2009814.UP.FTS.B,

16.29%,

11/09/26

...

7,927

7,854

L2006713.UP.FTS.B,

16.47%,

11/09/26

...

9,522

9,435

L2009219.UP.FTS.B,

16.5%,

11/09/26

....

19,547

19,319

FW2010280.UP.FTS.B,

16.52%,

11/09/26

.

12,699

12,556

FW2010216.UP.FTS.B,

16.55%,

11/09/26

.

7,148

7,083

L2008001.UP.FTS.B,

16.67%,

11/09/26

...

11,915

11,806

L2009464.UP.FTS.B,

16.7%,

11/09/26

....

17,298

1,249

L2006903.UP.FTS.B,

16.71%,

11/09/26

...

6,977

507

FW2009372.UP.FTS.B,

16.77%,

11/09/26

.

11,921

11,786

L2010173.UP.FTS.B,

16.8%,

11/09/26

....

6,359

6,288

L2009631.UP.FTS.B,

16.91%,

11/09/26

...

5,535

5,471

L2008272.UP.FTS.B,

17.06%,

11/09/26

...

15,920

15,741

L2008918.UP.FTS.B,

17.09%,

11/09/26

...

5,891

5,825

FW2008938.UP.FTS.B,

17.12%,

11/09/26

.

6,195

6,121

L2005207.UP.FTS.B,

17.16%,

11/09/26

...

9,556

9,448

FW2003971.UP.FTS.B,

17.71%,

11/09/26

.

21,964

21,718

L2006918.UP.FTS.B,

18.03%,

11/09/26

...

26,879

26,527

L2008937.UP.FTS.B,

18.22%,

11/09/26

...

4,837

4,778

L2008467.UP.FTS.B,

18.23%,

11/09/26

...

8,011

7,922

L2009319.UP.FTS.B,

18.37%,

11/09/26

...

1,362

1,347

FW2005538.UP.FTS.B,

18.4%,

11/09/26

..

4,815

4,745

L2009332.UP.FTS.B,

18.58%,

11/09/26

...

1,998

1,971

FW2005908.UP.FTS.B,

18.71%,

11/09/26

.

3,613

3,565

L2006524.UP.FTS.B,

18.79%,

11/09/26

...

4,017

3,964

FW2009511.UP.FTS.B,

18.82%,

11/09/26

.

4,820

4,757

L2006460.UP.FTS.B,

18.86%,

11/09/26

...

2,835

2,801

FW2002309.UP.FTS.B,

18.9%,

11/09/26

..

1,768

1,748

L2006384.UP.FTS.B,

18.95%,

11/09/26

...

8,846

4,921

L2004618.UP.FTS.B,

18.96%,

11/09/26

...

4,823

4,760

L2007966.UP.FTS.B,

18.98%,

11/09/26

...

1,608

1,587

L2007377.UP.FTS.B,

19.06%,

11/09/26

...

13,673

13,520

L2009757.UP.FTS.B,

19.37%,

11/09/26

...

35,962

1,088

L2005634.UP.FTS.B,

19.48%,

11/09/26

...

4,432

322

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2010300.UP.FTS.B,

19.58%,

11/09/26

...

$

806

$

796

L2003306.UP.FTS.B,

19.59%,

11/09/26

...

18,632

18,424

L2008422.UP.FTS.B,

19.84%,

11/09/26

...

4,441

4,383

FW2006347.UP.FTS.B,

19.88%,

11/09/26

.

5,852

422

L2006201.UP.FTS.B,

20.05%,

11/09/26

...

21,116

3,035

L2007782.UP.FTS.B,

20.17%,

11/09/26

...

10,019

2,764

L2007099.UP.FTS.B,

20.26%,

11/09/26

...

26,988

26,878

L2009922.UP.FTS.B,

20.26%,

11/09/26

...

3,443

249

L2008551.UP.FTS.B,

20.27%,

11/09/26

...

17,478

17,411

L2008219.UP.FTS.B,

20.5%,

11/09/26

....

1,267

1,245

L2009017.UP.FTS.B,

20.52%,

11/09/26

...

5,818

831

L2009434.UP.FTS.B,

20.62%,

11/09/26

...

1,768

128

L2006982.UP.FTS.B,

20.66%,

11/09/26

...

4,363

315

L2009697.UP.FTS.B,

20.69%,

11/09/26

...

4,054

4,001

FW2004995.UP.FTS.B,

21%,

11/09/26

...

4,710

4,649

FW2007433.UP.FTS.B,

21.02%,

11/09/26

.

6,091

6,068

FW2009325.UP.FTS.B,

21.04%,

11/09/26

.

5,298

3,030

FW2006513.UP.FTS.B,

21.09%,

11/09/26

.

1,628

1,604

FW2008076.UP.FTS.B,

21.13%,

11/09/26

.

1,966

1,939

L2005679.UP.FTS.B,

21.2%,

11/09/26

....

20,322

20,096

L2009584.UP.FTS.B,

21.3%,

11/09/26

....

9,245

9,209

L2006375.UP.FTS.B,

21.38%,

11/09/26

...

3,046

3,026

L2008251.UP.FTS.B,

21.4%,

11/09/26

....

4,068

4,015

FW2004906.UP.FTS.B,

21.42%,

11/09/26

.

10,395

10,252

FW2008069.UP.FTS.B,

21.82%,

11/09/26

.

8,887

8,854

L2009406.UP.FTS.B,

21.82%,

11/09/26

...

4,007

205

L2007361.UP.FTS.B,

21.89%,

11/09/26

...

3,505

3,480

L2008476.UP.FTS.B,

21.9%,

11/09/26

....

12,316

12,155

L2004302.UP.FTS.B,

21.93%,

11/09/26

...

2,610

2,600

L2008042.UP.FTS.B,

22%,

11/09/26

.....

8,568

8,456

L2005261.UP.FTS.B,

22.11%,

11/09/26

...

7,862

7,819

L2009041.UP.FTS.B,

22.15%,

11/09/26

...

8,836

640

FW2009886.UP.FTS.B,

22.16%,

11/09/26

.

3,267

3,224

L2009468.UP.FTS.B,

22.18%,

11/09/26

...

10,617

10,576

L2009034.UP.FTS.B,

22.22%,

11/09/26

...

5,357

5,320

L2005434.UP.FTS.B,

22.32%,

11/09/26

...

1,777

128

L2008599.UP.FTS.B,

22.35%,

11/09/26

...

1,635

1,614

L2004674.UP.FTS.B,

22.44%,

11/09/26

...

7,129

7,093

L2007307.UP.FTS.B,

22.83%,

11/09/26

...

3,896

3,873

L2008480.UP.FTS.B,

22.94%,

11/09/26

...

12,295

12,249

L2009304.UP.FTS.B,

23.03%,

11/09/26

...

2,852

2,818

L2007937.UP.FTS.B,

23.09%,

11/09/26

...

12,304

12,144

L2007252.UP.FTS.B,

23.46%,

11/09/26

...

7,114

2,029

L2005478.UP.FTS.B,

23.62%,

11/09/26

...

14,801

14,745

L2004813.UP.FTS.B,

23.68%,

11/09/26

...

4,935

4,916

L2009454.UP.FTS.B,

23.92%,

11/09/26

...

6,236

6,205

L2007056.UP.FTS.B,

24.37%,

11/09/26

...

1,994

1,983

FW2009608.UP.FTS.B,

24.41%,

11/09/26

.

17,330

17,265

L2008806.UP.FTS.B,

24.53%,

11/09/26

...

6,417

3,793

L2008130.UP.FTS.B,

24.71%,

11/09/26

...

1,143

164

L2007154.UP.FTS.B,

24.83%,

11/09/26

...

3,647

2,161

L2009932.UP.FTS.B,

24.83%,

11/09/26

...

2,878

2,866

L2009896.UP.FTS.B,

24.89%,

11/09/26

...

2,481

2,472

L2010117.UP.FTS.B,

24.96%,

11/09/26

...

3,309

3,297

FW2006718.UP.FTS.B,

24.97%,

11/09/26

.

4,137

4,121

FW2008266.UP.FTS.B,

25.01%,

11/09/26

.

5,034

2,968

L2008356.UP.FTS.B,

25.02%,

11/09/26

...

2,514

2,473

L2007001.UP.FTS.B,

25.04%,

11/09/26

...

1,242

1,225

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

125

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2009387.UP.FTS.B,

25.09%,

11/09/26

...

$

4,319

$

307

L2006100.UP.FTS.B,

25.1%,

11/09/26

....

3,092

3,049

L2009837.UP.FTS.B,

25.1%,

11/09/26

....

1,242

1,237

L2006519.UP.FTS.B,

25.11%,

11/09/26

...

1,822

1,815

L1992164.UP.FTS.B,

25.12%,

11/09/26

...

2,815

2,805

L2008646.UP.FTS.B,

25.12%,

11/09/26

...

1,076

1,072

L2005357.UP.FTS.B,

25.2%,

11/09/26

....

4,141

4,126

L2008993.UP.FTS.B,

25.21%,

11/09/26

...

7,804

7,770

FW2006444.UP.FTS.B,

25.24%,

11/09/26

.

4,896

4,874

L2009998.UP.FTS.B,

25.28%,

11/09/26

...

957

952

L2009595.UP.FTS.B,

25.31%,

11/09/26

...

3,569

3,518

L2006252.UP.FTS.B,

25.33%,

11/09/26

...

6,446

6,413

L2007046.UP.FTS.B,

25.34%,

11/09/26

...

1,492

1,486

FW2009941.UP.FTS.B,

25.35%,

11/09/26

.

6,912

6,883

L2009460.UP.FTS.B,

25.35%,

11/09/26

...

2,569

2,560

L2005437.UP.FTS.B,

25.37%,

11/09/26

...

829

826

L2007369.UP.FTS.B,

25.4%,

11/09/26

....

1,173

1,160

L2009364.UP.FTS.B,

25.41%,

11/09/26

...

4,175

4,153

L2009802.UP.FTS.B,

25.42%,

11/09/26

...

6,312

6,277

L2007026.UP.FTS.B,

25.44%,

11/09/26

...

1,493

1,487

L2008862.UP.FTS.B,

25.44%,

11/09/26

...

2,819

2,809

L1976857.UP.FTS.B,

25.45%,

11/09/26

...

6,634

6,608

L2008185.UP.FTS.B,

25.45%,

11/09/26

...

3,317

3,304

L2008393.UP.FTS.B,

25.47%,

11/09/26

...

9,610

690

L2005075.UP.FTS.B,

25.48%,

11/09/26

...

1,849

1,833

L2009842.UP.FTS.B,

25.48%,

11/09/26

...

2,514

2,498

FW2005949.UP.FTS.B,

25.57%,

11/09/26

.

6,357

6,292

FW2009730.UP.FTS.B,

25.57%,

11/09/26

.

13,445

955

L2004971.UP.FTS.B,

25.6%,

11/09/26

....

8,261

8,228

L2005577.UP.FTS.B,

25.63%,

11/09/26

...

4,979

4,961

L2007383.UP.FTS.B,

25.64%,

11/09/26

...

3,237

3,225

L2009877.UP.FTS.B,

25.76%,

11/09/26

...

6,451

1,848

FW2006387.UP.FTS.B,

25.89%,

11/09/26

.

2,941

2,926

L2008285.UP.FTS.B,

25.92%,

11/09/26

...

4,653

4,635

L2008078.UP.FTS.B,

26.04%,

11/09/26

...

4,140

2,440

L2007533.UP.FTS.B,

26.06%,

11/09/26

...

7,653

4,327

FW2007576.UP.FTS.B,

26.1%,

11/09/26

..

5,821

5,799

L2009167.UP.FTS.B,

26.14%,

11/09/26

...

8,318

8,286

L2005548.UP.FTS.B,

26.19%,

11/09/26

...

5,491

5,470

FW1993820.UP.FTS.B,

26.38%,

11/09/26

.

4,996

4,977

FW2006658.UP.FTS.B,

26.38%,

11/09/26

.

4,996

4,931

FW2006782.UP.FTS.B,

26.4%,

11/09/26

..

16,655

16,592

L1999796.UP.FTS.B,

26.73%,

11/09/26

...

3,405

3,350

FW2008915.UP.FTS.B,

27.18%,

11/09/26

.

1,305

190

FW2008080.UP.FTS.B,

27.3%,

11/09/26

..

1,254

1,249

FW2009450.UP.FTS.B,

27.39%,

11/09/26

.

7,118

7,087

FW2008423.UP.FTS.B,

27.57%,

11/09/26

.

5,877

38

FW2007457.UP.FTS.B,

27.58%,

11/09/26

.

2,518

2,504

FW2007274.UP.FTS.B,

27.62%,

11/09/26

.

2,064

2,055

FW2007864.UP.FTS.B,

27.83%,

11/09/26

.

4,189

4,174

FW2006870.UP.FTS.B,

27.89%,

11/09/26

.

5,413

5,391

FW2005768.UP.FTS.B,

27.98%,

11/09/26

.

1,259

1,254

FW2008745.UP.FTS.B,

28.05%,

11/09/26

.

5,312

374

FW2005435.UP.FTS.B,

28.32%,

11/09/26

.

12,594

12,547

FW2006392.UP.FTS.B,

28.34%,

11/09/26

.

1,686

1,666

FW2008944.UP.FTS.B,

28.36%,

11/09/26

.

3,846

271

FW2005859.UP.FTS.B,

28.42%,

11/09/26

.

10,992

10,935

FW2009975.UP.FTS.B,

28.52%,

11/09/26

.

844

835

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2006618.UP.FTS.B,

28.54%,

11/09/26

.

$

3,813

$

3,788

FW2009953.UP.FTS.B,

28.59%,

11/09/26

.

3,782

3,768

FW2007255.UP.FTS.B,

28.65%,

11/09/26

.

5,036

5,016

FW2006396.UP.FTS.B,

28.95%,

11/09/26

.

850

846

FW2009473.UP.FTS.B,

29.09%,

11/09/26

.

5,054

5,035

FW2005194.UP.FTS.B,

29.14%,

11/09/26

.

5,097

5,072

FW2008122.UP.FTS.B,

29.26%,

11/09/26

.

692

680

FW2006599.UP.FTS.B,

29.3%,

11/09/26

..

4,962

1,444

FW2007779.UP.FTS.B,

29.31%,

11/09/26

.

4,168

4,149

FW2006841.UP.FTS.B,

29.42%,

11/09/26

.

3,543

3,529

FW2009538.UP.FTS.B,

29.42%,

11/09/26

.

2,626

2,612

FW2009687.UP.FTS.B,

29.61%,

11/09/26

.

5,069

5,050

FW2007420.UP.FTS.B,

29.73%,

11/09/26

.

1,708

7

FW2009107.UP.FTS.B,

29.81%,

11/09/26

.

3,066

3,050

FW2009414.UP.FTS.B,

30.01%,

11/09/26

.

10,315

10,277

FW2006342.UP.FTS.B,

30.28%,

11/09/26

.

2,803

199

FW2005675.UP.FTS.B,

30.41%,

11/09/26

.

1,323

1,307

FW2007884.UP.FTS.B,

30.51%,

11/09/26

.

2,573

1,527

FW2009221.UP.FTS.B,

30.79%,

11/09/26

.

11,394

11,332

FW2008923.UP.FTS.B,

30.84%,

11/09/26

.

2,460

2,451

FW2009706.UP.FTS.B,

30.84%,

11/09/26

.

1,357

1,352

FW2006156.UP.FTS.B,

30.87%,

11/09/26

.

1,321

191

FW2007936.UP.FTS.B,

30.89%,

11/09/26

.

3,479

3,466

FW2006359.UP.FTS.B,

30.96%,

11/09/26

.

1,683

1,673

FW2007277.UP.FTS.B,

30.98%,

11/09/26

.

939

557

FW1996714.UP.FTS.B,

30.99%,

11/09/26

.

911

64

FW1985263.UP.FTS.B,

31.02%,

11/09/26

.

1,362

1,355

FW2008799.UP.FTS.B,

31.02%,

11/09/26

.

1,081

75

FW2005025.UP.FTS.B,

31.15%,

11/09/26

.

6,295

6,261

FW2007426.UP.FTS.B,

31.18%,

11/09/26

.

2,108

609

FW2009431.UP.FTS.B,

31.19%,

11/09/26

.

1,730

255

FW2008461.UP.FTS.B,

31.23%,

11/09/26

.

1,636

1,629

FW2008432.UP.FTS.B,

31.3%,

11/09/26

..

3,743

3,729

FW2008400.UP.FTS.B,

31.31%,

11/09/26

.

2,860

2,847

FW2005541.UP.FTS.B,

31.38%,

11/09/26

.

6,729

6,699

FW2009323.UP.FTS.B,

31.47%,

11/09/26

.

5,125

5,099

FW2009592.UP.FTS.B,

31.5%,

11/09/26

..

2,592

2,568

FW2007089.UP.FTS.B,

31.52%,

11/09/26

.

6,550

3,898

L2076555.UP.FTS.B,

9.38%,

11/19/26

....

5,335

5,294

FW2075880.UP.FTS.B,

9.48%,

11/19/26

..

11,057

10,974

FW2079511.UP.FTS.B,

9.94%,

11/19/26

..

5,187

1,281

L2077362.UP.FTS.B,

10.03%,

11/19/26

...

15,301

15,187

L2077278.UP.FTS.B,

10.24%,

11/19/26

...

1,626

1,614

L2079683.UP.FTS.B,

10.46%,

11/19/26

...

3,425

3,396

L2078817.UP.FTS.B,

10.96%,

11/19/26

...

35,389

35,098

L2077229.UP.FTS.B,

11.22%,

11/19/26

...

15,409

15,282

L2079790.UP.FTS.B,

11.54%,

11/19/26

...

6,561

6,507

L2078831.UP.FTS.B,

11.67%,

11/19/26

...

1,494

1,480

L2075431.UP.FTS.B,

11.87%,

11/19/26

...

17,787

17,642

L2077619.UP.FTS.B,

12.17%,

11/19/26

...

853

846

L2077342.UP.FTS.B,

12.81%,

11/19/26

...

3,110

3,085

L2069545.UP.FTS.B,

12.88%,

11/19/26

...

4,667

4,629

FW2076618.UP.FTS.B,

13.72%,

11/19/26

.

17,978

17,832

L2077586.UP.FTS.B,

13.74%,

11/19/26

...

4,297

4,262

L2079340.UP.FTS.B,

14.05%,

11/19/26

...

2,271

2,252

L2078387.UP.FTS.B,

14.26%,

11/19/26

...

2,257

2,123

L2080759.UP.FTS.B,

14.39%,

11/19/26

...

11,668

11,571

FW2078825.UP.FTS.B,

14.72%,

11/19/26

.

16,506

16,372

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2079956.UP.FTS.B,

14.89%,

11/19/26

...

$

5,602

$

5,279

L2077934.UP.FTS.B,

15.05%,

11/19/26

...

5,906

5,858

L2079762.UP.FTS.B,

15.07%,

11/19/26

...

3,937

3,901

L2078364.UP.FTS.B,

15.16%,

11/19/26

...

4,727

4,684

L2080377.UP.FTS.B,

15.37%,

11/19/26

...

7,099

7,033

L2078013.UP.FTS.B,

15.44%,

11/19/26

...

10,510

10,424

L2076773.UP.FTS.B,

15.83%,

11/19/26

...

4,493

650

L2078858.UP.FTS.B,

16.1%,

11/19/26

....

14,088

13,949

L2077446.UP.FTS.B,

16.31%,

11/19/26

...

5,153

5,106

L2080949.UP.FTS.B,

16.51%,

11/19/26

...

5,432

5,363

L2077345.UP.FTS.B,

16.52%,

11/19/26

...

2,143

2,126

L2078556.UP.FTS.B,

16.55%,

11/19/26

...

3,762

3,723

L2077624.UP.FTS.B,

16.62%,

11/19/26

...

35,748

35,418

L2077136.UP.FTS.B,

16.73%,

11/19/26

...

7,945

7,872

FW2080998.UP.FTS.B,

16.87%,

11/19/26

.

767

759

FW2078513.UP.FTS.B,

16.88%,

11/19/26

.

14,314

14,182

L2079147.UP.FTS.B,

16.93%,

11/19/26

...

13,493

13,367

L2080899.UP.FTS.B,

17.22%,

11/19/26

...

4,943

1,285

L2073789.UP.FTS.B,

17.39%,

11/19/26

...

2,392

2,370

L2078117.UP.FTS.B,

17.47%,

11/19/26

...

2,473

2,450

L2078785.UP.FTS.B,

17.53%,

11/19/26

...

7,979

7,895

FW2077194.UP.FTS.B,

17.96%,

11/19/26

.

7,949

7,874

L2079526.UP.FTS.B,

17.98%,

11/19/26

...

3,039

3,015

FW2077428.UP.FTS.B,

18.23%,

11/19/26

.

8,008

7,924

L2078320.UP.FTS.B,

18.26%,

11/19/26

...

2,697

2,668

L2077316.UP.FTS.B,

18.51%,

11/19/26

...

5,704

5,377

L2078541.UP.FTS.B,

18.53%,

11/19/26

...

2,807

2,778

L2078767.UP.FTS.B,

18.54%,

11/19/26

...

802

795

FW2080677.UP.FTS.B,

18.72%,

11/19/26

.

13,649

13,524

L2080184.UP.FTS.B,

19.05%,

11/19/26

...

4,390

4,384

FW2078252.UP.FTS.B,

19.1%,

11/19/26

..

1,452

1,433

L2079089.UP.FTS.B,

19.11%,

11/19/26

...

4,810

4,765

L2077889.UP.FTS.B,

19.41%,

11/19/26

...

5,962

5,899

L1966479.UP.FTS.B,

19.7%,

11/19/26

....

9,433

8,892

L2079136.UP.FTS.B,

19.7%,

11/19/26

....

13,313

13,303

FW2078808.UP.FTS.B,

19.87%,

11/19/26

.

20,187

19,974

L2077834.UP.FTS.B,

19.87%,

11/19/26

...

12,373

11,651

FW2076082.UP.FTS.B,

20.04%,

11/19/26

.

16,126

15,955

L2078706.UP.FTS.B,

20.11%,

11/19/26

...

6,468

6,400

L2080653.UP.FTS.B,

20.24%,

11/19/26

...

3,641

3,602

L2077864.UP.FTS.B,

20.33%,

11/19/26

...

17,807

17,619

L2076267.UP.FTS.B,

20.73%,

11/19/26

...

12,139

12,010

L2077767.UP.FTS.B,

20.73%,

11/19/26

...

8,110

8,104

FW2079399.UP.FTS.B,

20.8%,

11/19/26

..

14,576

14,563

L2051484.UP.FTS.B,

21.26%,

11/19/26

...

1,626

1,609

L2078669.UP.FTS.B,

21.32%,

11/19/26

...

8,133

8,059

L2077511.UP.FTS.B,

21.66%,

11/19/26

...

3,993

274

FW2080860.UP.FTS.B,

21.93%,

11/19/26

.

16,090

16,063

FW2076510.UP.FTS.B,

22.17%,

11/19/26

.

32,667

32,323

L2080597.UP.FTS.B,

22.59%,

11/19/26

...

1,800

1,799

FW2080574.UP.FTS.B,

23.09%,

11/19/26

.

4,891

349

FW2078029.UP.FTS.B,

23.15%,

11/19/26

.

3,856

3,853

L2078079.UP.FTS.B,

23.52%,

11/19/26

...

4,110

4,066

L2078431.UP.FTS.B,

23.7%,

11/19/26

....

2,510

2,389

L2076582.UP.FTS.B,

24.04%,

11/19/26

...

18,448

1,309

L2079001.UP.FTS.B,

24.08%,

11/19/26

...

12,492

12,452

L2077380.UP.FTS.B,

24.14%,

11/19/26

...

3,964

3,954

FW2076263.UP.FTS.B,

24.18%,

11/19/26

.

2,556

2,533

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2047900.UP.FTS.B,

24.6%,

11/19/26

..

$

6,188

$

168

FW2079138.UP.FTS.B,

24.71%,

11/19/26

.

12,610

11,877

L2051923.UP.FTS.B,

24.73%,

11/19/26

...

1,515

1,508

L2077667.UP.FTS.B,

24.74%,

11/19/26

...

1,656

480

FW2078855.UP.FTS.B,

25.07%,

11/19/26

.

4,426

314

L2075615.UP.FTS.B,

25.09%,

11/19/26

...

2,046

596

FW2078837.UP.FTS.B,

25.18%,

11/19/26

.

2,153

2,131

L2077756.UP.FTS.B,

25.18%,

11/19/26

...

994

993

L2080819.UP.FTS.B,

25.23%,

11/19/26

...

1,408

1,407

L2080514.UP.FTS.B,

25.27%,

11/19/26

...

1,823

1,822

L2055608.UP.FTS.B,

25.35%,

11/19/26

...

1,344

1,281

L2078857.UP.FTS.B,

25.44%,

11/19/26

...

1,410

1,408

L2079168.UP.FTS.B,

25.49%,

11/19/26

...

9,305

2,715

L2079636.UP.FTS.B,

25.5%,

11/19/26

....

2,073

2,072

L2080879.UP.FTS.B,

25.51%,

11/19/26

...

3,483

3,481

FW2080532.UP.FTS.B,

25.55%,

11/19/26

.

17,410

4,961

L2080301.UP.FTS.B,

25.61%,

11/19/26

...

3,302

3,299

L2076428.UP.FTS.B,

25.82%,

11/19/26

...

7,163

6,822

L2076758.UP.FTS.B,

25.84%,

11/19/26

...

3,822

3,819

L2077747.UP.FTS.B,

25.84%,

11/19/26

...

5,981

5,976

FW2075811.UP.FTS.B,

25.85%,

11/19/26

.

914

904

L2076862.UP.FTS.B,

25.93%,

11/19/26

...

5,156

5,152

L2080433.UP.FTS.B,

25.97%,

11/19/26

...

1,995

1,974

FW2080275.UP.FTS.B,

26.15%,

11/19/26

.

2,911

2,909

L2076228.UP.FTS.B,

26.28%,

11/19/26

...

2,921

2,913

FW2078057.UP.FTS.B,

26.47%,

11/19/26

.

1,752

1,747

FW2079458.UP.FTS.B,

26.51%,

11/19/26

.

2,683

2,649

L2080156.UP.FTS.B,

26.56%,

11/19/26

...

2,500

2,498

FW2076617.UP.FTS.B,

26.67%,

11/19/26

.

24,344

24,325

L2076223.UP.FTS.B,

26.74%,

11/19/26

...

8,711

8,690

FW2070515.UP.FTS.B,

26.89%,

11/19/26

.

3,755

3,752

L2075827.UP.FTS.B,

27%,

11/19/26

.....

7,765

7,759

FW2073062.UP.FTS.B,

27.11%,

11/19/26

.

12,530

12,520

FW2076319.UP.FTS.B,

27.45%,

11/19/26

.

3,346

3,343

FW2077691.UP.FTS.B,

28%,

11/19/26

...

6,708

6,702

FW2078778.UP.FTS.B,

28.26%,

11/19/26

.

4,446

4,385

FW2079210.UP.FTS.B,

28.66%,

11/19/26

.

4,564

319

FW2079921.UP.FTS.B,

29.67%,

11/19/26

.

2,499

2,494

FW2072591.UP.FTS.B,

29.87%,

11/19/26

.

2,812

433

FW2077632.UP.FTS.B,

30.15%,

11/19/26

.

9,079

641

FW2077700.UP.FTS.B,

30.18%,

11/19/26

.

7,261

512

FW2077874.UP.FTS.B,

30.42%,

11/19/26

.

6,098

6,093

FW2078643.UP.FTS.B,

30.58%,

11/19/26

.

999

982

FW2078839.UP.FTS.B,

30.61%,

11/19/26

.

699

693

FW2075779.UP.FTS.B,

30.81%,

11/19/26

.

390

384

FW2076598.UP.FTS.B,

31.11%,

11/19/26

.

809

807

FW2074352.UP.FTS.B,

31.13%,

11/19/26

.

934

934

FW2075287.UP.FTS.B,

31.46%,

11/19/26

.

6,934

6,890

FW2076836.UP.FTS.B,

31.47%,

11/19/26

.

6,480

6,178

FW2076209.UP.FTS.B,

31.48%,

11/19/26

.

2,725

2,723

FW2200360.UP.FTS.B,

6%,

12/07/26

....

451

445

L2198358.UP.FTS.B,

7.09%,

12/07/26

....

2,750

2,719

L2196810.UP.FTS.B,

7.42%,

12/07/26

....

4,610

4,568

L2198501.UP.FTS.B,

8.94%,

12/07/26

....

3,100

3,073

L2195995.UP.FTS.B,

9.12%,

12/07/26

....

3,336

3,307

L2199695.UP.FTS.B,

9.66%,

12/07/26

....

4,670

4,628

L2199924.UP.FTS.B,

9.76%,

12/07/26

....

5,451

5,403

L2198890.UP.FTS.B,

10.21%,

12/07/26

...

1,171

1,160

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

127

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2200013.UP.FTS.B,

10.26%,

12/07/26

.

$

10,934

$

10,818

L2199199.UP.FTS.B,

10.28%,

12/07/26

...

7,497

7,418

L2198751.UP.FTS.B,

10.42%,

12/07/26

...

6,253

6,187

L2199240.UP.FTS.B,

10.7%,

12/07/26

....

6,420

6,363

L2196100.UP.FTS.B,

10.99%,

12/07/26

...

1,255

1,243

FW2198003.UP.FTS.B,

11.06%,

12/07/26

.

7,098

7,019

L2197856.UP.FTS.B,

11.23%,

12/07/26

...

4,240

4,195

L2197172.UP.FTS.B,

11.42%,

12/07/26

...

7,792

7,709

L2196592.UP.FTS.B,

11.62%,

12/07/26

...

4,249

4,204

L2197038.UP.FTS.B,

12.26%,

12/07/26

...

3,158

3,125

FW2199260.UP.FTS.B,

12.51%,

12/07/26

.

19,371

19,165

L2199654.UP.FTS.B,

12.66%,

12/07/26

...

4,581

4,530

L2200204.UP.FTS.B,

12.79%,

12/07/26

...

10,295

10,186

FW2198067.UP.FTS.B,

12.9%,

12/07/26

..

5,169

374

L2200250.UP.FTS.B,

13.28%,

12/07/26

...

3,970

3,928

L2197658.UP.FTS.B,

13.72%,

12/07/26

...

3,979

3,937

FW2198165.UP.FTS.B,

14.07%,

12/07/26

.

1,116

1,104

FW2198593.UP.FTS.B,

14.12%,

12/07/26

.

4,785

4,734

L2197131.UP.FTS.B,

14.14%,

12/07/26

...

877

868

L2199997.UP.FTS.B,

14.15%,

12/07/26

...

2,951

2,920

L2196035.UP.FTS.B,

14.38%,

12/07/26

...

4,316

4,267

L2196588.UP.FTS.B,

14.6%,

12/07/26

....

8,949

2,280

L2196864.UP.FTS.B,

14.96%,

12/07/26

...

5,607

5,548

L2198350.UP.FTS.B,

15.19%,

12/07/26

...

775

767

L2196739.UP.FTS.B,

15.37%,

12/07/26

...

12,948

929

L2197260.UP.FTS.B,

15.37%,

12/07/26

...

2,311

94

L2197650.UP.FTS.B,

15.41%,

12/07/26

...

6,022

5,958

L2196913.UP.FTS.B,

15.42%,

12/07/26

...

44,192

3,169

FW2198673.UP.FTS.B,

15.71%,

12/07/26

.

16,642

9,256

L2199860.UP.FTS.B,

16.1%,

12/07/26

....

12,059

11,898

L2199879.UP.FTS.B,

16.31%,

12/07/26

...

12,164

6,451

FW2197646.UP.FTS.B,

16.34%,

12/07/26

.

6,928

6,840

L2198446.UP.FTS.B,

16.58%,

12/07/26

...

40,049

39,514

L2199625.UP.FTS.B,

16.62%,

12/07/26

...

8,079

7,972

L2198880.UP.FTS.B,

16.74%,

12/07/26

...

2,976

2,930

L2198467.UP.FTS.B,

16.99%,

12/07/26

...

16,185

15,935

L2197174.UP.FTS.B,

17.08%,

12/07/26

...

12,146

11,985

L2195329.UP.FTS.B,

17.11%,

12/07/26

...

4,218

4,158

FW2197380.UP.FTS.B,

17.12%,

12/07/26

.

2,429

2,397

L2198345.UP.FTS.B,

17.18%,

12/07/26

...

19,278

19,021

L2195192.UP.FTS.B,

17.22%,

12/07/26

...

2,674

2,638

L2198376.UP.FTS.B,

17.42%,

12/07/26

...

18,437

5,057

L2194879.UP.FTS.B,

17.51%,

12/07/26

...

15,827

15,601

L2192178.UP.FTS.B,

17.53%,

12/07/26

...

6,086

6,005

FW2196193.UP.FTS.B,

17.59%,

12/07/26

.

20,298

20,028

L2199819.UP.FTS.B,

17.72%,

12/07/26

...

14,725

14,563

L2198685.UP.FTS.B,

17.77%,

12/07/26

...

2,555

63

L2199007.UP.FTS.B,

17.87%,

12/07/26

...

5,037

1,378

L2200255.UP.FTS.B,

17.89%,

12/07/26

...

6,558

6,450

L2199726.UP.FTS.B,

18.1%,

12/07/26

....

4,882

4,817

L2195959.UP.FTS.B,

18.12%,

12/07/26

...

9,524

9,398

L2196210.UP.FTS.B,

18.42%,

12/07/26

...

13,757

3,777

FW2198541.UP.FTS.B,

18.65%,

12/07/26

.

21,056

5,768

L2197391.UP.FTS.B,

18.77%,

12/07/26

...

1,854

133

L2196412.UP.FTS.B,

18.83%,

12/07/26

...

1,470

1,450

L2200053.UP.FTS.B,

18.87%,

12/07/26

...

8,430

2,310

L2199248.UP.FTS.B,

19.04%,

12/07/26

...

12,261

12,097

L2196672.UP.FTS.B,

19.58%,

12/07/26

...

7,449

452

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2196821.UP.FTS.B,

19.59%,

12/07/26

...

$

5,806

$

835

L2199663.UP.FTS.B,

19.69%,

12/07/26

...

4,919

4,843

L2169437.UP.FTS.B,

19.73%,

12/07/26

...

8,279

8,141

FW2198520.UP.FTS.B,

20.07%,

12/07/26

.

8,160

8,030

L2199129.UP.FTS.B,

20.12%,

12/07/26

...

1,808

1,783

L2198874.UP.FTS.B,

20.19%,

12/07/26

...

3,288

3,244

L2199523.UP.FTS.B,

20.46%,

12/07/26

...

3,212

3,159

L2196447.UP.FTS.B,

20.62%,

12/07/26

...

5,351

5,279

L2189118.UP.FTS.B,

20.67%,

12/07/26

...

1,981

1,940

L2197655.UP.FTS.B,

20.75%,

12/07/26

...

4,120

4,092

FW2197381.UP.FTS.B,

20.8%,

12/07/26

..

2,778

202

L2197561.UP.FTS.B,

20.81%,

12/07/26

...

4,121

4,093

FW2199633.UP.FTS.B,

20.94%,

12/07/26

.

6,727

3,957

L2196680.UP.FTS.B,

21.47%,

12/07/26

...

5,098

5,017

L2195675.UP.FTS.B,

21.55%,

12/07/26

...

1,429

68

L2197631.UP.FTS.B,

21.55%,

12/07/26

...

3,724

3,661

L2196825.UP.FTS.B,

21.8%,

12/07/26

....

5,387

5,341

FW2198237.UP.FTS.B,

21.87%,

12/07/26

.

4,141

4,113

L2196775.UP.FTS.B,

22.04%,

12/07/26

...

829

816

FW2199825.UP.FTS.B,

22.12%,

12/07/26

.

1,658

1,647

L2196730.UP.FTS.B,

22.21%,

12/07/26

...

14,517

14,418

L2191085.UP.FTS.B,

22.33%,

12/07/26

...

2,720

2,700

L2199874.UP.FTS.B,

22.34%,

12/07/26

...

6,808

6,762

L2192706.UP.FTS.B,

22.47%,

12/07/26

...

8,300

8,243

L2197670.UP.FTS.B,

22.54%,

12/07/26

...

3,181

3,153

L2196119.UP.FTS.B,

22.75%,

12/07/26

...

4,505

326

L2185222.UP.FTS.B,

23.13%,

12/07/26

...

4,926

4,890

FW2200346.UP.FTS.B,

23.2%,

12/07/26

..

8,441

8,375

FW2196522.UP.FTS.B,

23.26%,

12/07/26

.

5,000

4,966

L2195799.UP.FTS.B,

23.37%,

12/07/26

...

8,430

8,308

FW2199894.UP.FTS.B,

23.38%,

12/07/26

.

6,868

1,950

L2198106.UP.FTS.B,

23.42%,

12/07/26

...

5,409

5,371

FW2192438.UP.FTS.B,

23.66%,

12/07/26

.

10,018

9,950

L2198616.UP.FTS.B,

24.08%,

12/07/26

...

2,495

2,477

FW2195703.UP.FTS.B,

24.25%,

12/07/26

.

1,507

1,496

FW2196745.UP.FTS.B,

24.4%,

12/07/26

..

4,996

4,959

FW2200190.UP.FTS.B,

24.4%,

12/07/26

..

2,094

2,079

L2196637.UP.FTS.B,

24.42%,

12/07/26

...

12,481

12,394

L2200210.UP.FTS.B,

24.56%,

12/07/26

...

16,764

16,499

L2197090.UP.FTS.B,

24.84%,

12/07/26

...

4,295

4,255

L2200145.UP.FTS.B,

24.91%,

12/07/26

...

839

834

L2197252.UP.FTS.B,

24.97%,

12/07/26

...

924

263

L2196714.UP.FTS.B,

25.02%,

12/07/26

...

2,584

2,562

L2199551.UP.FTS.B,

25.05%,

12/07/26

...

1,882

133

L2195912.UP.FTS.B,

25.21%,

12/07/26

...

6,892

6,845

L2198146.UP.FTS.B,

25.25%,

12/07/26

...

1,765

1,753

L2196219.UP.FTS.B,

25.27%,

12/07/26

...

7,903

7,848

L2198546.UP.FTS.B,

25.32%,

12/07/26

...

1,261

1,253

L2199586.UP.FTS.B,

25.33%,

12/07/26

...

927

919

L2199876.UP.FTS.B,

25.33%,

12/07/26

...

1,100

1,084

L2195664.UP.FTS.B,

25.4%,

12/07/26

....

493

483

L2199661.UP.FTS.B,

25.4%,

12/07/26

....

2,356

2,339

L2196685.UP.FTS.B,

25.41%,

12/07/26

...

5,607

403

L2198050.UP.FTS.B,

25.44%,

12/07/26

...

4,423

4,387

L2197183.UP.FTS.B,

25.46%,

12/07/26

...

1,430

1,421

L2197844.UP.FTS.B,

25.47%,

12/07/26

...

4,553

4,518

L2198441.UP.FTS.B,

25.48%,

12/07/26

...

11,967

11,869

FW2197368.UP.FTS.B,

25.58%,

12/07/26

.

8,418

8,359

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2199814.UP.FTS.B,

25.68%,

12/07/26

...

$

5,053

$

5,018

L2193871.UP.FTS.B,

25.78%,

12/07/26

...

1,196

1,174

FW2199793.UP.FTS.B,

25.9%,

12/07/26

..

6,743

6,696

FW2199186.UP.FTS.B,

25.95%,

12/07/26

.

2,172

1,282

FW2196103.UP.FTS.B,

26.48%,

12/07/26

.

1,019

1,000

L2200350.UP.FTS.B,

26.67%,

12/07/26

...

5,222

370

FW2195998.UP.FTS.B,

26.86%,

12/07/26

.

15,021

14,896

FW2195958.UP.FTS.B,

27.48%,

12/07/26

.

2,944

2

FW2200008.UP.FTS.B,

27.66%,

12/07/26

.

6,162

(75)

FW2199488.UP.FTS.B,

27.83%,

12/07/26

.

1,980

288

FW2198564.UP.FTS.B,

27.96%,

12/07/26

.

3,841

3,808

FW2195741.UP.FTS.B,

28.07%,

12/07/26

.

1,276

1,267

FW2200076.UP.FTS.B,

28.24%,

12/07/26

.

42,553

42,252

FW2200069.UP.FTS.B,

28.54%,

12/07/26

.

3,621

3,586

FW2200188.UP.FTS.B,

28.66%,

12/07/26

.

4,759

4,714

FW2198203.UP.FTS.B,

29.09%,

12/07/26

.

3,257

1,923

FW2198176.UP.FTS.B,

29.22%,

12/07/26

.

3,471

2,051

FW2195399.UP.FTS.B,

29.81%,

12/07/26

.

1,970

1,956

FW2198433.UP.FTS.B,

29.92%,

12/07/26

.

2,845

202

FW2198601.UP.FTS.B,

30.14%,

12/07/26

.

4,287

4,257

FW2199215.UP.FTS.B,

30.27%,

12/07/26

.

2,745

2,725

FW2198672.UP.FTS.B,

30.42%,

12/07/26

.

5,150

5,113

FW2196744.UP.FTS.B,

30.45%,

12/07/26

.

42,930

42,622

FW2198825.UP.FTS.B,

30.6%,

12/07/26

..

3,042

3,017

FW2197604.UP.FTS.B,

30.64%,

12/07/26

.

2,835

2,814

FW2198515.UP.FTS.B,

30.77%,

12/07/26

.

2,858

202

FW2198089.UP.FTS.B,

30.83%,

12/07/26

.

1,827

1,812

FW2197663.UP.FTS.B,

30.97%,

12/07/26

.

2,290

2,271

FW2198098.UP.FTS.B,

31%,

12/07/26

...

5,142

5,093

FW2196279.UP.FTS.B,

31.01%,

12/07/26

.

3,011

2,989

FW2197407.UP.FTS.B,

31.19%,

12/07/26

.

5,079

5,042

FW2196852.UP.FTS.B,

31.22%,

12/07/26

.

7,380

514

FW2198390.UP.FTS.B,

31.22%,

12/07/26

.

2,326

2,309

FW2197133.UP.FTS.B,

31.45%,

12/07/26

.

3,819

3,787

FW2198397.UP.FTS.B,

32.23%,

12/07/26

.

5,012

4,976

FW2199153.UP.FTS.B,

32.29%,

12/07/26

.

4,149

4,119

FW2199632.UP.FTS.B,

32.42%,

12/07/26

.

4,237

4,207

L2201511.UP.FTS.B,

5.03%,

12/08/26

....

8,741

8,674

L2201100.UP.FTS.B,

5.82%,

12/08/26

....

7,610

7,554

FW2201687.UP.FTS.B,

5.98%,

12/08/26

..

3,529

3,503

L2203382.UP.FTS.B,

6.5%,

12/08/26

....

7,641

7,586

L2203741.UP.FTS.B,

7.33%,

12/08/26

....

15,356

15,225

L2206413.UP.FTS.B,

7.44%,

12/08/26

....

6,915

6,856

L2201126.UP.FTS.B,

7.87%,

12/08/26

....

16,947

16,802

L2200918.UP.FTS.B,

8.74%,

12/08/26

....

3,329

3,301

L2203118.UP.FTS.B,

8.78%,

12/08/26

....

6,017

5,965

L2201288.UP.FTS.B,

9.13%,

12/08/26

....

2,561

2,539

L2203530.UP.FTS.B,

9.65%,

12/08/26

....

15,999

15,859

L2197657.UP.FTS.B,

9.74%,

12/08/26

....

3,348

3,320

FW2202215.UP.FTS.B,

9.76%,

12/08/26

..

34,206

33,849

L2202140.UP.FTS.B,

10.05%,

12/08/26

...

2,958

2,928

L2202043.UP.FTS.B,

10.08%,

12/08/26

...

15,602

15,471

L2206922.UP.FTS.B,

10.23%,

12/08/26

...

13,901

13,754

L2205692.UP.FTS.B,

10.33%,

12/08/26

...

12,892

12,784

L2205203.UP.FTS.B,

10.54%,

12/08/26

...

14,920

14,760

L2203887.UP.FTS.B,

10.82%,

12/08/26

...

6,267

6,204

L2202359.UP.FTS.B,

10.96%,

12/08/26

...

2,822

2,799

L2205258.UP.FTS.B,

10.97%,

12/08/26

...

2,979

2,949

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2202707.UP.FTS.B,

11.01%,

12/08/26

...

$

7,843

$

7,764

L2200873.UP.FTS.B,

11.09%,

12/08/26

...

7,061

6,990

L2205661.UP.FTS.B,

11.13%,

12/08/26

...

9,416

9,322

L2201926.UP.FTS.B,

11.2%,

12/08/26

....

1,570

1,557

FW2202691.UP.FTS.B,

11.21%,

12/08/26

.

2,355

2,335

L2204932.UP.FTS.B,

11.21%,

12/08/26

...

12,561

12,435

L2201522.UP.FTS.B,

11.25%,

12/08/26

...

15,705

15,547

L2200600.UP.FTS.B,

11.71%,

12/08/26

...

4,007

2,121

L2200051.UP.FTS.B,

11.78%,

12/08/26

...

8,348

8,264

L2204302.UP.FTS.B,

11.78%,

12/08/26

...

2,355

2,331

L2205067.UP.FTS.B,

11.79%,

12/08/26

...

9,451

9,357

FW2201210.UP.FTS.B,

12.48%,

12/08/26

.

1,580

1,565

L2201401.UP.FTS.B,

12.51%,

12/08/26

...

5,535

5,479

L2201130.UP.FTS.B,

12.56%,

12/08/26

...

4,032

3,987

L2201683.UP.FTS.B,

13.05%,

12/08/26

...

2,379

2,355

L2201222.UP.FTS.B,

13.13%,

12/08/26

...

39,667

39,273

L2203910.UP.FTS.B,

13.18%,

12/08/26

...

9,126

9,036

L2202867.UP.FTS.B,

13.27%,

12/08/26

...

3,671

3,630

FW2206272.UP.FTS.B,

13.35%,

12/08/26

.

2,383

2,359

L2206693.UP.FTS.B,

13.43%,

12/08/26

...

3,070

223

L2206744.UP.FTS.B,

13.51%,

12/08/26

...

23,847

23,610

L2202159.UP.FTS.B,

13.54%,

12/08/26

...

19,876

19,713

FW2201344.UP.FTS.B,

13.64%,

12/08/26

.

5,343

724

L2202534.UP.FTS.B,

13.68%,

12/08/26

...

11,935

11,816

L2203497.UP.FTS.B,

13.78%,

12/08/26

...

4,776

4,729

L2203117.UP.FTS.B,

13.79%,

12/08/26

...

6,846

6,779

FW2199867.UP.FTS.B,

13.82%,

12/08/26

.

12,036

11,911

L2203856.UP.FTS.B,

13.82%,

12/08/26

...

23,986

23,734

L2200884.UP.FTS.B,

13.99%,

12/08/26

...

5,897

5,839

L2204734.UP.FTS.B,

13.99%,

12/08/26

...

2,936

2,907

L2189789.UP.FTS.B,

14.09%,

12/08/26

...

3,381

3,340

L2200815.UP.FTS.B,

14.17%,

12/08/26

...

1,988

1,969

L2201701.UP.FTS.B,

14.19%,

12/08/26

...

5,584

5,529

L2200543.UP.FTS.B,

14.23%,

12/08/26

...

3,990

3,950

FW2206534.UP.FTS.B,

14.38%,

12/08/26

.

2,554

2,529

FW2201365.UP.FTS.B,

14.41%,

12/08/26

.

11,581

11,466

L2200506.UP.FTS.B,

14.67%,

12/08/26

...

4,799

4,751

L2205095.UP.FTS.B,

14.72%,

12/08/26

...

1,829

1,804

L2205970.UP.FTS.B,

14.78%,

12/08/26

...

2,154

2,133

L2203172.UP.FTS.B,

14.86%,

12/08/26

...

8,006

7,927

FW2203636.UP.FTS.B,

14.99%,

12/08/26

.

4,019

3,977

L2206751.UP.FTS.B,

15.19%,

12/08/26

...

11,007

10,898

L2201429.UP.FTS.B,

15.27%,

12/08/26

...

9,585

9,489

L2201509.UP.FTS.B,

15.29%,

12/08/26

...

3,761

3,709

L2203888.UP.FTS.B,

15.35%,

12/08/26

...

2,408

2,384

L2196904.UP.FTS.B,

15.38%,

12/08/26

...

4,897

2,593

L2202058.UP.FTS.B,

15.4%,

12/08/26

....

2,408

2,379

L2201650.UP.FTS.B,

15.45%,

12/08/26

...

3,212

3,181

L2205307.UP.FTS.B,

15.66%,

12/08/26

...

1,615

1,593

L2193881.UP.FTS.B,

15.75%,

12/08/26

...

3,539

3,495

L2200487.UP.FTS.B,

15.87%,

12/08/26

...

5,150

5,100

L2205432.UP.FTS.B,

15.94%,

12/08/26

...

19,957

19,708

L2205206.UP.FTS.B,

15.97%,

12/08/26

...

24,226

23,899

L2206448.UP.FTS.B,

16%,

12/08/26

.....

8,455

8,372

L2195672.UP.FTS.B,

16.2%,

12/08/26

....

10,317

10,189

L2205672.UP.FTS.B,

16.4%,

12/08/26

....

20,212

20,001

L2201272.UP.FTS.B,

16.5%,

12/08/26

....

4,017

3,977

L2202979.UP.FTS.B,

16.63%,

12/08/26

...

1,616

1,600

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

129

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2203269.UP.FTS.B,

16.66%,

12/08/26

...

$

3,636

$

3,591

L2203656.UP.FTS.B,

16.77%,

12/08/26

...

2,300

1,218

L2205448.UP.FTS.B,

16.81%,

12/08/26

...

8,490

8,366

L2205367.UP.FTS.B,

16.83%,

12/08/26

...

2,508

2,474

L2205691.UP.FTS.B,

16.93%,

12/08/26

...

38,836

38,355

L2206760.UP.FTS.B,

17.01%,

12/08/26

...

36,759

36,274

L2200739.UP.FTS.B,

17.06%,

12/08/26

...

2,186

2,159

L2200406.UP.FTS.B,

17.28%,

12/08/26

...

3,566

3,522

L2202818.UP.FTS.B,

17.33%,

12/08/26

...

8,134

585

L2201984.UP.FTS.B,

17.35%,

12/08/26

...

5,263

5,197

L2204275.UP.FTS.B,

17.48%,

12/08/26

...

4,526

4,469

L2203876.UP.FTS.B,

17.53%,

12/08/26

...

17,861

17,619

L2202653.UP.FTS.B,

17.59%,

12/08/26

...

10,065

9,941

L2203323.UP.FTS.B,

17.63%,

12/08/26

...

1,453

1,433

L2200437.UP.FTS.B,

17.72%,

12/08/26

...

2,030

2,001

L2202435.UP.FTS.B,

17.87%,

12/08/26

...

4,064

4,005

L2206114.UP.FTS.B,

17.92%,

12/08/26

...

1,626

1,606

L2201870.UP.FTS.B,

17.98%,

12/08/26

...

2,440

2,404

L2201314.UP.FTS.B,

18.04%,

12/08/26

...

4,068

4,017

L2203381.UP.FTS.B,

18.04%,

12/08/26

...

8,541

8,436

L2202238.UP.FTS.B,

18.11%,

12/08/26

...

10,579

10,448

L2198222.UP.FTS.B,

18.15%,

12/08/26

...

2,930

2,888

FW2200514.UP.FTS.B,

18.68%,

12/08/26

.

8,319

4,763

L2202316.UP.FTS.B,

18.78%,

12/08/26

...

2,041

2,011

L2203614.UP.FTS.B,

18.9%,

12/08/26

....

12,236

12,057

FW2203630.UP.FTS.B,

18.91%,

12/08/26

.

8,154

8,035

L2201012.UP.FTS.B,

19.03%,

12/08/26

...

40,867

40,274

L2202526.UP.FTS.B,

19.03%,

12/08/26

...

8,299

4,398

FW2204149.UP.FTS.B,

19.13%,

12/08/26

.

4,095

4,030

FW2201703.UP.FTS.B,

19.15%,

12/08/26

.

2,852

2,811

L2171699.UP.FTS.B,

19.26%,

12/08/26

...

8,186

8,141

FW2201480.UP.FTS.B,

19.28%,

12/08/26

.

5,729

5,658

L2198227.UP.FTS.B,

19.34%,

12/08/26

...

1,701

458

FW2206855.UP.FTS.B,

19.38%,

12/08/26

.

4,094

4,054

L2204805.UP.FTS.B,

19.42%,

12/08/26

...

8,762

8,635

L2204012.UP.FTS.B,

19.62%,

12/08/26

...

2,586

1,435

L2201833.UP.FTS.B,

19.78%,

12/08/26

...

4,098

4,038

L2200534.UP.FTS.B,

19.8%,

12/08/26

....

6,771

1,864

L2203346.UP.FTS.B,

19.86%,

12/08/26

...

5,252

5,187

L2203970.UP.FTS.B,

19.89%,

12/08/26

...

1,806

1,780

L2203336.UP.FTS.B,

19.94%,

12/08/26

...

2,714

2,671

FW2185665.UP.FTS.B,

20.17%,

12/08/26

.

12,290

12,137

L2200446.UP.FTS.B,

20.19%,

12/08/26

...

904

890

FW2202220.UP.FTS.B,

20.45%,

12/08/26

.

16,458

16,367

L2198053.UP.FTS.B,

20.47%,

12/08/26

...

3,047

3,001

L2200528.UP.FTS.B,

20.47%,

12/08/26

...

2,880

2,839

L2201790.UP.FTS.B,

20.6%,

12/08/26

....

2,306

2,272

FW2201941.UP.FTS.B,

20.91%,

12/08/26

.

3,216

3,175

FW2201844.UP.FTS.B,

20.97%,

12/08/26

.

2,389

2,339

L2202584.UP.FTS.B,

20.98%,

12/08/26

...

6,226

6,129

FW2205623.UP.FTS.B,

21.01%,

12/08/26

.

9,075

9,025

L2203340.UP.FTS.B,

21.11%,

12/08/26

...

4,135

4,105

L2202911.UP.FTS.B,

21.13%,

12/08/26

...

5,338

5,260

L2201499.UP.FTS.B,

21.34%,

12/08/26

...

9,089

9,038

L2203266.UP.FTS.B,

21.37%,

12/08/26

...

4,236

2,498

L2203685.UP.FTS.B,

21.52%,

12/08/26

...

2,894

2,878

L2207000.UP.FTS.B,

21.53%,

12/08/26

...

16,540

16,300

L2206634.UP.FTS.B,

21.58%,

12/08/26

...

1,820

1,810

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2206963.UP.FTS.B,

21.68%,

12/08/26

.

$

4,318

$

615

FW2200309.UP.FTS.B,

21.86%,

12/08/26

.

2,973

2,956

FW2204080.UP.FTS.B,

22.08%,

12/08/26

.

6,332

1,799

L2200826.UP.FTS.B,

22.16%,

12/08/26

...

8,296

8,250

L2204816.UP.FTS.B,

22.27%,

12/08/26

...

7,934

7,807

FW2202543.UP.FTS.B,

22.46%,

12/08/26

.

1,578

1,555

L2200624.UP.FTS.B,

22.5%,

12/08/26

....

1,661

1,637

L2204327.UP.FTS.B,

22.78%,

12/08/26

...

2,054

2,015

L2201275.UP.FTS.B,

22.92%,

12/08/26

...

3,180

3,156

L2203293.UP.FTS.B,

22.93%,

12/08/26

...

1,415

1,394

FW2203667.UP.FTS.B,

23.01%,

12/08/26

.

12,488

12,419

L2202315.UP.FTS.B,

23.12%,

12/08/26

...

3,240

3,217

L2201018.UP.FTS.B,

23.52%,

12/08/26

...

4,172

4,149

L2204624.UP.FTS.B,

23.54%,

12/08/26

...

17,101

10,128

L2203557.UP.FTS.B,

23.55%,

12/08/26

...

1,371

1,358

L2204118.UP.FTS.B,

23.56%,

12/08/26

...

14,281

14,182

L2200929.UP.FTS.B,

23.61%,

12/08/26

...

2,094

2,080

L2205223.UP.FTS.B,

23.62%,

12/08/26

...

4,179

4,148

L2200784.UP.FTS.B,

23.63%,

12/08/26

...

8,432

8,376

L2197277.UP.FTS.B,

23.68%,

12/08/26

...

5,427

5,397

L2197979.UP.FTS.B,

23.7%,

12/08/26

....

3,340

3,322

L2205882.UP.FTS.B,

23.83%,

12/08/26

...

2,507

2,476

L2204897.UP.FTS.B,

23.87%,

12/08/26

...

22,258

21,979

FW2200085.UP.FTS.B,

23.88%,

12/08/26

.

2,507

2,493

L2169986.UP.FTS.B,

24.03%,

12/08/26

...

12,543

12,474

FW2202739.UP.FTS.B,

24.09%,

12/08/26

.

2,008

1,996

L2205789.UP.FTS.B,

24.11%,

12/08/26

...

5,019

4,991

L2200886.UP.FTS.B,

24.19%,

12/08/26

...

4,212

4,147

FW2200940.UP.FTS.B,

24.2%,

12/08/26

..

1,004

72

L2203589.UP.FTS.B,

24.35%,

12/08/26

...

4,065

4,036

L2201603.UP.FTS.B,

24.38%,

12/08/26

...

4,189

4,165

L2199578.UP.FTS.B,

24.39%,

12/08/26

...

1,232

1,211

L2204440.UP.FTS.B,

24.51%,

12/08/26

...

1,006

1,000

L2203333.UP.FTS.B,

24.53%,

12/08/26

...

2,506

179

L2200752.UP.FTS.B,

24.63%,

12/08/26

...

839

834

FW2202542.UP.FTS.B,

24.64%,

12/08/26

.

3,773

3,753

FW2200668.UP.FTS.B,

24.66%,

12/08/26

.

10,482

10,424

L2205328.UP.FTS.B,

24.68%,

12/08/26

...

1,673

1,663

FW2198942.UP.FTS.B,

24.77%,

12/08/26

.

16,096

15,987

L2200911.UP.FTS.B,

24.82%,

12/08/26

...

3,952

3,919

L2205953.UP.FTS.B,

24.83%,

12/08/26

...

1,798

1,764

L2201876.UP.FTS.B,

24.84%,

12/08/26

...

923

918

L2198801.UP.FTS.B,

24.91%,

12/08/26

...

2,518

2,504

L2200418.UP.FTS.B,

24.91%,

12/08/26

...

6,443

6,349

L2201388.UP.FTS.B,

24.93%,

12/08/26

...

2,471

2,455

L2201658.UP.FTS.B,

24.93%,

12/08/26

...

1,091

1,076

L2200868.UP.FTS.B,

24.96%,

12/08/26

...

2,154

2,134

L2205812.UP.FTS.B,

24.97%,

12/08/26

...

2,990

2,966

L2206379.UP.FTS.B,

24.97%,

12/08/26

...

5,684

123

L2201301.UP.FTS.B,

25.03%,

12/08/26

...

3,798

1,084

L2203217.UP.FTS.B,

25.16%,

12/08/26

...

924

919

L2202329.UP.FTS.B,

25.17%,

12/08/26

...

2,047

2,020

L2198735.UP.FTS.B,

25.18%,

12/08/26

...

5,927

5,891

L2205039.UP.FTS.B,

25.2%,

12/08/26

....

2,882

2,837

L2202422.UP.FTS.B,

25.21%,

12/08/26

...

3,081

3,063

L2201763.UP.FTS.B,

25.22%,

12/08/26

...

5,840

5,764

L2203014.UP.FTS.B,

25.25%,

12/08/26

...

4,203

4,180

L2203187.UP.FTS.B,

25.25%,

12/08/26

...

3,455

109

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2203545.UP.FTS.B,

25.27%,

12/08/26

...

$

1,571

$

450

L2201547.UP.FTS.B,

25.28%,

12/08/26

...

2,104

2,088

L2204236.UP.FTS.B,

25.3%,

12/08/26

....

5,035

4,995

L2205000.UP.FTS.B,

25.31%,

12/08/26

...

905

63

L2203159.UP.FTS.B,

25.32%,

12/08/26

...

12,376

7,303

L2202447.UP.FTS.B,

25.34%,

12/08/26

...

1,701

1,689

L2201267.UP.FTS.B,

25.35%,

12/08/26

...

984

977

L2207019.UP.FTS.B,

25.36%,

12/08/26

...

1,385

1,372

L2203473.UP.FTS.B,

25.37%,

12/08/26

...

1,845

1,818

L2206798.UP.FTS.B,

25.37%,

12/08/26

...

1,669

1,640

L2204385.UP.FTS.B,

25.38%,

12/08/26

...

1,010

1,004

L2204272.UP.FTS.B,

25.42%,

12/08/26

...

1,346

1,335

L2201606.UP.FTS.B,

25.43%,

12/08/26

...

2,271

2,259

L2200539.UP.FTS.B,

25.48%,

12/08/26

...

4,545

4,520

L2200596.UP.FTS.B,

25.49%,

12/08/26

...

8,765

8,701

L2202382.UP.FTS.B,

25.5%,

12/08/26

....

1,515

1,506

L2204469.UP.FTS.B,

25.55%,

12/08/26

...

2,622

2,604

L2206619.UP.FTS.B,

25.63%,

12/08/26

...

6,315

6,280

FW2202148.UP.FTS.B,

25.64%,

12/08/26

.

2,296

340

L2201626.UP.FTS.B,

25.65%,

12/08/26

...

5,389

5,359

FW2202207.UP.FTS.B,

25.82%,

12/08/26

.

9,006

8,955

L2200110.UP.FTS.B,

25.93%,

12/08/26

...

6,325

6,290

L2205529.UP.FTS.B,

25.96%,

12/08/26

...

5,902

5,869

FW2202648.UP.FTS.B,

26.05%,

12/08/26

.

6,756

6,707

L2200501.UP.FTS.B,

26.06%,

12/08/26

...

1,856

1,845

FW2201661.UP.FTS.B,

26.35%,

12/08/26

.

13,022

3,725

FW2204619.UP.FTS.B,

26.36%,

12/08/26

.

2,112

2,100

L2200760.UP.FTS.B,

26.49%,

12/08/26

...

9,296

9,244

L2203179.UP.FTS.B,

26.54%,

12/08/26

...

3,386

3,361

FW2205293.UP.FTS.B,

26.73%,

12/08/26

.

3,383

3,364

FW2205802.UP.FTS.B,

27%,

12/08/26

...

3,004

2,984

FW2205878.UP.FTS.B,

27.25%,

12/08/26

.

1,743

501

FW2200840.UP.FTS.B,

27.39%,

12/08/26

.

7,125

7,085

FW2205131.UP.FTS.B,

27.64%,

12/08/26

.

2,632

2,617

FW2202637.UP.FTS.B,

27.67%,

12/08/26

.

9,343

9,291

FW2204516.UP.FTS.B,

27.99%,

12/08/26

.

4,164

4,135

FW2205704.UP.FTS.B,

28.05%,

12/08/26

.

4,252

4,228

FW2206331.UP.FTS.B,

28.09%,

12/08/26

.

8,931

8,881

FW2205370.UP.FTS.B,

28.26%,

12/08/26

.

5,637

3,336

FW2200263.UP.FTS.B,

28.29%,

12/08/26

.

15,322

15,237

FW2202084.UP.FTS.B,

28.33%,

12/08/26

.

1,278

1,268

FW2206080.UP.FTS.B,

28.43%,

12/08/26

.

2,914

2,895

FW2205751.UP.FTS.B,

28.59%,

12/08/26

.

1,098

78

FW2199479.UP.FTS.B,

28.66%,

12/08/26

.

12,787

12,716

FW2202420.UP.FTS.B,

28.72%,

12/08/26

.

4,085

4,053

FW2203128.UP.FTS.B,

28.72%,

12/08/26

.

857

851

FW2200463.UP.FTS.B,

28.91%,

12/08/26

.

1,024

1,018

FW2206016.UP.FTS.B,

28.92%,

12/08/26

.

1,553

1,524

FW2201925.UP.FTS.B,

29.05%,

12/08/26

.

1,100

1,090

FW2200712.UP.FTS.B,

29.25%,

12/08/26

.

2,588

2,570

FW2195267.UP.FTS.B,

29.27%,

12/08/26

.

6,323

6,288

FW2205727.UP.FTS.B,

29.33%,

12/08/26

.

9,997

701

FW2204212.UP.FTS.B,

29.48%,

12/08/26

.

13,939

13,862

FW2203404.UP.FTS.B,

29.65%,

12/08/26

.

1,537

1,521

FW2201641.UP.FTS.B,

29.67%,

12/08/26

.

7,018

6,979

FW2206862.UP.FTS.B,

29.87%,

12/08/26

.

4,112

4,089

FW2200914.UP.FTS.B,

29.96%,

12/08/26

.

15,370

2,182

FW2201513.UP.FTS.B,

30.22%,

12/08/26

.

1,528

(13)

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2204427.UP.FTS.B,

30.34%,

12/08/26

.

$

6,864

$

6,826

FW2203423.UP.FTS.B,

30.49%,

12/08/26

.

858

854

FW2204255.UP.FTS.B,

30.54%,

12/08/26

.

1,374

1,366

FW2202866.UP.FTS.B,

30.6%,

12/08/26

..

945

939

FW2200422.UP.FTS.B,

30.75%,

12/08/26

.

6,303

910

FW2205386.UP.FTS.B,

30.87%,

12/08/26

.

8,358

8,299

FW2201735.UP.FTS.B,

30.95%,

12/08/26

.

1,044

1,038

FW2201142.UP.FTS.B,

31.05%,

12/08/26

.

860

856

FW2203290.UP.FTS.B,

31.07%,

12/08/26

.

1,205

1,198

FW2206683.UP.FTS.B,

31.07%,

12/08/26

.

1,789

1,777

FW2201843.UP.FTS.B,

31.08%,

12/08/26

.

1,494

430

FW2205002.UP.FTS.B,

31.08%,

12/08/26

.

2,668

2,653

FW2200524.UP.FTS.B,

31.14%,

12/08/26

.

5,761

5,713

FW2201347.UP.FTS.B,

31.17%,

12/08/26

.

2,204

2,190

FW2199311.UP.FTS.B,

31.18%,

12/08/26

.

1,205

1,199

FW2205181.UP.FTS.B,

31.19%,

12/08/26

.

1,913

133

FW2201772.UP.FTS.B,

31.27%,

12/08/26

.

4,736

4,710

FW2203711.UP.FTS.B,

31.37%,

12/08/26

.

8,480

2,444

FW2202425.UP.FTS.B,

31.38%,

12/08/26

.

3,092

891

FW2200697.UP.FTS.B,

31.46%,

12/08/26

.

3,135

(56)

FW2199126.UP.FTS.B,

31.54%,

12/08/26

.

5,344

5,314

FW2203562.UP.FTS.B,

32.34%,

12/08/26

.

5,187

5,158

L2196899.UP.FTS.B,

24.65%,

12/15/26

...

4,863

4,829

FW2201324.UP.FTS.B,

18.84%,

12/22/26

.

3,983

3,916

FW2204874.UP.FTS.B,

17.03%,

12/23/26

.

8,094

7,976

L2200814.UP.FTS.B,

19.64%,

12/23/26

...

4,533

4,467

FW2411209.UP.FTS.B,

5.24%,

1/11/27

...

15,476

15,365

L2411009.UP.FTS.B,

5.26%,

1/11/27

.....

27,085

26,891

FW2412321.UP.FTS.B,

5.36%,

1/11/27

...

38,717

38,440

L2408655.UP.FTS.B,

5.7%,

1/11/27

......

16,370

16,253

L2409091.UP.FTS.B,

5.78%,

1/11/27

.....

1,846

151

L2402399.UP.FTS.B,

6.09%,

1/11/27

.....

21,070

20,920

FW2408524.UP.FTS.B,

6.18%,

1/11/27

...

8,402

8,342

L2413519.UP.FTS.B,

6.19%,

1/11/27

.....

19,483

19,342

FW2411884.UP.FTS.B,

6.2%,

1/11/27

....

19,450

19,311

L2411685.UP.FTS.B,

7.25%,

1/11/27

.....

12,643

887

L2411160.UP.FTS.B,

7.26%,

1/11/27

.....

11,739

11,655

FW2406810.UP.FTS.B,

7.3%,

1/11/27

....

4,949

4,913

L2410292.UP.FTS.B,

7.3%,

1/11/27

......

3,280

3,252

L2408660.UP.FTS.B,

7.61%,

1/11/27

.....

5,410

5,363

L2412785.UP.FTS.B,

7.81%,

1/11/27

.....

1,570

1,556

L2412559.UP.FTS.B,

7.83%,

1/11/27

.....

3,707

3,671

L2408557.UP.FTS.B,

7.86%,

1/11/27

.....

3,926

3,892

L2407811.UP.FTS.B,

7.94%,

1/11/27

.....

6,147

6,093

L2412462.UP.FTS.B,

7.99%,

1/11/27

.....

2,750

2,726

L2412874.UP.FTS.B,

8.03%,

1/11/27

.....

5,500

5,452

L2413039.UP.FTS.B,

8.03%,

1/11/27

.....

11,788

11,686

L2412920.UP.FTS.B,

8.25%,

1/11/27

.....

13,120

962

L2410004.UP.FTS.B,

8.45%,

1/11/27

.....

7,989

1,065

L2410102.UP.FTS.B,

8.56%,

1/11/27

.....

3,015

220

L2410384.UP.FTS.B,

8.56%,

1/11/27

.....

17,855

4,375

FW2413850.UP.FTS.B,

8.58%,

1/11/27

...

8,435

8,362

L2413727.UP.FTS.B,

8.61%,

1/11/27

.....

3,390

3,361

L2412142.UP.FTS.B,

8.74%,

1/11/27

.....

13,332

13,217

FW2410081.UP.FTS.B,

8.78%,

1/11/27

...

14,204

14,081

L2413256.UP.FTS.B,

8.78%,

1/11/27

.....

12

11

FW2409381.UP.FTS.B,

8.85%,

1/11/27

...

3,552

3,521

L2407187.UP.FTS.B,

8.85%,

1/11/27

.....

3,939

3,905

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

131

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2413316.UP.FTS.B,

8.98%,

1/11/27

.....

$

9,474

$

9,392

FW2411415.UP.FTS.B,

9.04%,

1/11/27

...

5,419

5,371

FW2413111.UP.FTS.B,

9.07%,

1/11/27

...

6,301

6,246

FW2411385.UP.FTS.B,

9.23%,

1/11/27

...

7,119

7,057

L2405469.UP.FTS.B,

9.26%,

1/11/27

.....

6,170

3,184

FW2413046.UP.FTS.B,

9.47%,

1/11/27

...

5,657

5,605

L2408994.UP.FTS.B,

9.47%,

1/11/27

.....

5,959

5,906

L2410685.UP.FTS.B,

9.48%,

1/11/27

.....

7,154

7,090

L2412775.UP.FTS.B,

9.82%,

1/11/27

.....

19,739

19,534

FW2406985.UP.FTS.B,

9.83%,

1/11/27

...

2,380

2,360

L2412433.UP.FTS.B,

9.93%,

1/11/27

.....

6,749

6,679

L2404630.UP.FTS.B,

10.03%,

1/11/27

....

39,719

39,376

L2411759.UP.FTS.B,

10.11%,

1/11/27

....

17,416

17,264

L2411458.UP.FTS.B,

10.12%,

1/11/27

....

1,748

1,733

L2411928.UP.FTS.B,

10.18%,

1/11/27

....

3,975

3,934

L2408600.UP.FTS.B,

10.21%,

1/11/27

....

3,408

3,372

L2408318.UP.FTS.B,

10.27%,

1/11/27

....

3,181

3,149

L2413945.UP.FTS.B,

10.53%,

1/11/27

....

17,521

17,340

L2411092.UP.FTS.B,

10.65%,

1/11/27

....

8,144

506

L2411539.UP.FTS.B,

10.75%,

1/11/27

....

4,997

1,261

L2411021.UP.FTS.B,

10.83%,

1/11/27

....

6,372

6,316

FW2412113.UP.FTS.B,

10.85%,

1/11/27

..

19,944

19,737

L2411297.UP.FTS.B,

10.9%,

1/11/27

.....

7,102

7,028

L2413322.UP.FTS.B,

10.93%,

1/11/27

....

8,460

8,373

L2409346.UP.FTS.B,

10.95%,

1/11/27

....

13,233

968

L2413229.UP.FTS.B,

11.26%,

1/11/27

....

14,346

14,197

FW2413104.UP.FTS.B,

11.4%,

1/11/27

...

10,418

757

L2411571.UP.FTS.B,

11.47%,

1/11/27

....

6,215

6,148

L2413044.UP.FTS.B,

11.78%,

1/11/27

....

6,413

6,346

L2410361.UP.FTS.B,

11.82%,

1/11/27

....

8,819

8,728

FW2408471.UP.FTS.B,

11.94%,

1/11/27

..

4,822

4,770

L2405206.UP.FTS.B,

12.1%,

1/11/27

.....

19,333

19,122

L2370107.UP.FTS.B,

12.85%,

1/11/27

....

3,949

3,908

L2412100.UP.FTS.B,

13.07%,

1/11/27

....

5,242

5,188

L2409206.UP.FTS.B,

13.1%,

1/11/27

.....

3,223

3,189

L2411596.UP.FTS.B,

13.42%,

1/11/27

....

4,032

3,990

L2411372.UP.FTS.B,

13.45%,

1/11/27

....

4,956

2,625

FW2412293.UP.FTS.B,

13.57%,

1/11/27

..

4,264

4,219

FW2411936.UP.FTS.B,

13.61%,

1/11/27

..

6,256

6,188

FW2412839.UP.FTS.B,

13.8%,

1/11/27

...

8,680

8,585

FW2407206.UP.FTS.B,

13.82%,

1/11/27

..

4,859

4,808

FW2410061.UP.FTS.B,

13.89%,

1/11/27

..

16,201

16,033

L2409821.UP.FTS.B,

14.42%,

1/11/27

....

4,386

4,340

L2410324.UP.FTS.B,

14.46%,

1/11/27

....

15,691

15,522

L2405215.UP.FTS.B,

14.48%,

1/11/27

....

22,830

22,571

L2408774.UP.FTS.B,

14.55%,

1/11/27

....

3,251

3,209

L2410681.UP.FTS.B,

14.74%,

1/11/27

....

2,041

2,019

L2408843.UP.FTS.B,

14.84%,

1/11/27

....

2,483

2,455

L2412759.UP.FTS.B,

15.38%,

1/11/27

....

4,896

4,832

L2412202.UP.FTS.B,

15.67%,

1/11/27

....

4,903

4,852

L2410725.UP.FTS.B,

15.84%,

1/11/27

....

15,602

15,429

L2413295.UP.FTS.B,

15.96%,

1/11/27

....

5,385

2,987

L2408436.UP.FTS.B,

15.99%,

1/11/27

....

32,732

32,306

FW2412862.UP.FTS.B,

16.01%,

1/11/27

..

8,348

8,261

L2379748.UP.FTS.B,

16.06%,

1/11/27

....

3,602

3,555

L2410414.UP.FTS.B,

16.07%,

1/11/27

....

4,453

324

L2413878.UP.FTS.B,

16.28%,

1/11/27

....

9,838

709

L2413797.UP.FTS.B,

16.41%,

1/11/27

....

8,161

8,053

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2406986.UP.FTS.B,

16.62%,

1/11/27

....

$

4,104

$

4,050

L2412621.UP.FTS.B,

16.62%,

1/11/27

....

3,283

3,240

L2407022.UP.FTS.B,

16.96%,

1/11/27

....

4,110

4,057

L2409264.UP.FTS.B,

16.99%,

1/11/27

....

8,222

8,114

FW2411635.UP.FTS.B,

17.05%,

1/11/27

..

4,194

4,130

FW2412497.UP.FTS.B,

17.05%,

1/11/27

..

8,846

434

FW2407072.UP.FTS.B,

17.38%,

1/11/27

..

4,250

1,091

L2411840.UP.FTS.B,

17.48%,

1/11/27

....

23,539

23,291

FW2410259.UP.FTS.B,

17.51%,

1/11/27

..

7,728

7,631

L2406982.UP.FTS.B,

17.53%,

1/11/27

....

7,498

7,384

L2412808.UP.FTS.B,

17.54%,

1/11/27

....

8,242

8,134

L2410494.UP.FTS.B,

17.56%,

1/11/27

....

16,511

16,278

FW2411466.UP.FTS.B,

17.75%,

1/11/27

..

1,650

1,629

L2407285.UP.FTS.B,

17.96%,

1/11/27

....

4,129

4,066

FW2407640.UP.FTS.B,

18.05%,

1/11/27

..

9,087

8,993

L2410765.UP.FTS.B,

18.19%,

1/11/27

....

6,154

6,071

L2410306.UP.FTS.B,

18.23%,

1/11/27

....

5,804

5,741

FW2413451.UP.FTS.B,

18.29%,

1/11/27

..

2,068

2,036

L2412214.UP.FTS.B,

18.34%,

1/11/27

....

2,489

2,462

L2413233.UP.FTS.B,

18.45%,

1/11/27

....

2,069

2,042

L2412345.UP.FTS.B,

18.51%,

1/11/27

....

2,794

2,751

L2413035.UP.FTS.B,

18.66%,

1/11/27

....

2,438

2,400

FW2406958.UP.FTS.B,

18.83%,

1/11/27

..

2,022

1,994

L2407160.UP.FTS.B,

18.83%,

1/11/27

....

14,508

14,318

FW2406995.UP.FTS.B,

18.92%,

1/11/27

..

10,025

9,877

L2409397.UP.FTS.B,

18.93%,

1/11/27

....

7,030

1,002

L2413429.UP.FTS.B,

19.09%,

1/11/27

....

669

661

L2407535.UP.FTS.B,

19.16%,

1/11/27

....

4,484

4,425

L2412374.UP.FTS.B,

19.25%,

1/11/27

....

10,003

9,923

L2413002.UP.FTS.B,

19.57%,

1/11/27

....

3,660

3,604

FW2410395.UP.FTS.B,

20.34%,

1/11/27

..

4,173

4,109

FW2412607.UP.FTS.B,

20.39%,

1/11/27

..

4,038

2,379

FW2410858.UP.FTS.B,

20.48%,

1/11/27

..

1,849

1,823

L2395966.UP.FTS.B,

20.59%,

1/11/27

....

14,683

1,061

FW2412890.UP.FTS.B,

20.68%,

1/11/27

..

8,404

8,338

FW2410350.UP.FTS.B,

20.75%,

1/11/27

..

8,437

8,373

L2406944.UP.FTS.B,

20.79%,

1/11/27

....

9,088

5,366

L2402977.UP.FTS.B,

20.95%,

1/11/27

....

1,654

1,642

L2407644.UP.FTS.B,

21.08%,

1/11/27

....

3,349

3,327

L2410708.UP.FTS.B,

21.43%,

1/11/27

....

2,028

2,000

L2410907.UP.FTS.B,

21.6%,

1/11/27

.....

2,950

2,927

FW2411595.UP.FTS.B,

21.83%,

1/11/27

..

4,545

327

FW2413140.UP.FTS.B,

22.12%,

1/11/27

..

4,204

4,177

L2413585.UP.FTS.B,

22.13%,

1/11/27

....

6,770

6,717

FW2413038.UP.FTS.B,

22.18%,

1/11/27

..

1,732

495

L2413170.UP.FTS.B,

22.26%,

1/11/27

....

6,315

6,232

L2413345.UP.FTS.B,

22.45%,

1/11/27

....

5,072

5,032

L2410843.UP.FTS.B,

22.81%,

1/11/27

....

3,795

3,770

FW2412276.UP.FTS.B,

22.84%,

1/11/27

..

3,331

3,307

L2410433.UP.FTS.B,

22.92%,

1/11/27

....

1,687

1,661

FW2409793.UP.FTS.B,

22.96%,

1/11/27

..

8,447

8,392

L2410796.UP.FTS.B,

23%,

1/11/27

......

6,052

6,011

L2410622.UP.FTS.B,

23.11%,

1/11/27

....

4,053

4,026

L2413027.UP.FTS.B,

23.16%,

1/11/27

....

6,756

6,712

L2399356.UP.FTS.B,

23.25%,

1/11/27

....

5,069

5,035

FW2412083.UP.FTS.B,

23.34%,

1/11/27

..

3,888

3,862

FW2411494.UP.FTS.B,

23.55%,

1/11/27

..

3,299

496

L2408703.UP.FTS.B,

23.63%,

1/11/27

....

4,979

4,941

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2413529.UP.FTS.B,

23.86%,

1/11/27

..

$

1,694

$

1,683

L2409471.UP.FTS.B,

23.96%,

1/11/27

....

5,084

5,050

L2412292.UP.FTS.B,

24.03%,

1/11/27

....

15,732

15,604

L2413379.UP.FTS.B,

24.03%,

1/11/27

....

16,951

16,838

L2413360.UP.FTS.B,

24.07%,

1/11/27

....

1,695

1,684

FW2412786.UP.FTS.B,

24.26%,

1/11/27

..

7,211

7,163

FW2409686.UP.FTS.B,

24.48%,

1/11/27

..

5,995

5,948

L2411714.UP.FTS.B,

24.56%,

1/11/27

....

2,277

2,261

L2407599.UP.FTS.B,

24.69%,

1/11/27

....

9,998

9,925

L2407837.UP.FTS.B,

24.89%,

1/11/27

....

2,693

194

FW2411057.UP.FTS.B,

24.91%,

1/11/27

..

3,003

2,979

FW2407461.UP.FTS.B,

25.01%,

1/11/27

..

4,254

4,226

L2410747.UP.FTS.B,

25.02%,

1/11/27

....

1,276

1,268

L2413166.UP.FTS.B,

25.02%,

1/11/27

....

2,618

165

L2407824.UP.FTS.B,

25.08%,

1/11/27

....

3,489

3,466

L2389901.UP.FTS.B,

25.09%,

1/11/27

....

597

586

L2412701.UP.FTS.B,

25.09%,

1/11/27

....

1,064

1,052

L2412420.UP.FTS.B,

25.12%,

1/11/27

....

1,270

1,261

L2402682.UP.FTS.B,

25.13%,

1/11/27

....

936

930

L2410276.UP.FTS.B,

25.16%,

1/11/27

....

801

793

L2412631.UP.FTS.B,

25.16%,

1/11/27

....

1,107

1,099

FW2412505.UP.FTS.B,

25.22%,

1/11/27

..

4,002

3,975

L2406959.UP.FTS.B,

25.22%,

1/11/27

....

9,361

9,262

L2413584.UP.FTS.B,

25.24%,

1/11/27

....

1,022

1,006

L2406872.UP.FTS.B,

25.29%,

1/11/27

....

4,517

4,487

L2413560.UP.FTS.B,

25.29%,

1/11/27

....

2,994

2,970

L2410164.UP.FTS.B,

25.3%,

1/11/27

.....

1,033

1,025

L2412052.UP.FTS.B,

25.3%,

1/11/27

.....

10,997

10,863

FW2411982.UP.FTS.B,

25.34%,

1/11/27

..

4,265

4,236

L2411780.UP.FTS.B,

25.37%,

1/11/27

....

2,989

2,950

L2413809.UP.FTS.B,

25.37%,

1/11/27

....

6,733

6,688

L2409900.UP.FTS.B,

25.4%,

1/11/27

.....

854

846

L2411491.UP.FTS.B,

25.4%,

1/11/27

.....

2,062

2,028

L2412889.UP.FTS.B,

25.46%,

1/11/27

....

1,632

1,619

L2406911.UP.FTS.B,

25.47%,

1/11/27

....

1,806

1,061

L2411973.UP.FTS.B,

25.47%,

1/11/27

....

1,108

1,101

L2411979.UP.FTS.B,

25.48%,

1/11/27

....

972

280

L2412081.UP.FTS.B,

25.48%,

1/11/27

....

5,370

5,334

L2411173.UP.FTS.B,

25.49%,

1/11/27

....

1,209

715

L2413595.UP.FTS.B,

25.51%,

1/11/27

....

2,711

2,688

L2412805.UP.FTS.B,

25.53%,

1/11/27

....

6,145

441

FW2412928.UP.FTS.B,

25.61%,

1/11/27

..

1,706

1,694

FW2407809.UP.FTS.B,

25.64%,

1/11/27

..

10,174

10,077

L2406866.UP.FTS.B,

25.98%,

1/11/27

....

1,534

1,524

L2413661.UP.FTS.B,

25.98%,

1/11/27

....

2,237

2,219

L2408715.UP.FTS.B,

26.2%,

1/11/27

.....

12,141

12,053

L2412410.UP.FTS.B,

26.21%,

1/11/27

....

6,621

3,925

FW2411046.UP.FTS.B,

26.47%,

1/11/27

..

7,624

7,568

L2409231.UP.FTS.B,

26.66%,

1/11/27

....

4,113

4,078

L2410155.UP.FTS.B,

26.8%,

1/11/27

.....

6,854

6,807

FW2410552.UP.FTS.B,

27%,

1/11/27

....

1,229

1,209

FW2410687.UP.FTS.B,

27.05%,

1/11/27

..

13,358

1,959

FW2408955.UP.FTS.B,

27.26%,

1/11/27

..

2,149

2,131

FW2413526.UP.FTS.B,

27.48%,

1/11/27

..

8,708

5,157

FW2410353.UP.FTS.B,

27.55%,

1/11/27

..

7,770

7,706

FW2410176.UP.FTS.B,

27.65%,

1/11/27

..

5,509

388

FW2412354.UP.FTS.B,

27.69%,

1/11/27

..

860

854

FW2412160.UP.FTS.B,

27.76%,

1/11/27

..

3,482

3,455

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2406988.UP.FTS.B,

27.86%,

1/11/27

..

$

4,301

$

4,271

FW2408818.UP.FTS.B,

27.86%,

1/11/27

..

9,521

9,425

FW2410159.UP.FTS.B,

27.94%,

1/11/27

..

3,827

3,798

FW2406115.UP.FTS.B,

28.41%,

1/11/27

..

4,864

1,411

FW2405234.UP.FTS.B,

28.71%,

1/11/27

..

962

952

FW2413762.UP.FTS.B,

28.85%,

1/11/27

..

3,503

2,079

FW2410593.UP.FTS.B,

28.88%,

1/11/27

..

7,773

7,720

FW2411293.UP.FTS.B,

29.42%,

1/11/27

..

1,384

1,375

FW2407567.UP.FTS.B,

29.43%,

1/11/27

..

3,462

3,437

FW2407055.UP.FTS.B,

29.46%,

1/11/27

..

4,134

4,097

FW2408568.UP.FTS.B,

29.5%,

1/11/27

...

3,894

3,867

FW2403902.UP.FTS.B,

29.51%,

1/11/27

..

1,918

1,138

FW2410442.UP.FTS.B,

29.53%,

1/11/27

..

1,658

1,644

FW2407473.UP.FTS.B,

30.14%,

1/11/27

..

2,464

2,424

FW2412942.UP.FTS.B,

30.18%,

1/11/27

..

3,324

3,297

FW2413192.UP.FTS.B,

30.3%,

1/11/27

...

5,755

840

FW2413390.UP.FTS.B,

30.33%,

1/11/27

..

3,788

3,759

FW2407748.UP.FTS.B,

30.43%,

1/11/27

..

2,084

2,070

FW2395496.UP.FTS.B,

30.49%,

1/11/27

..

4,943

4,904

FW2413147.UP.FTS.B,

30.55%,

1/11/27

..

3,522

3,495

FW2413018.UP.FTS.B,

30.69%,

1/11/27

..

765

751

FW2408341.UP.FTS.B,

30.72%,

1/11/27

..

533

524

FW2413509.UP.FTS.B,

30.72%,

1/11/27

..

1,104

654

FW2410308.UP.FTS.B,

30.74%,

1/11/27

..

1,008

70

FW2412502.UP.FTS.B,

30.76%,

1/11/27

..

13,037

12,946

FW2410401.UP.FTS.B,

30.79%,

1/11/27

..

1,144

1,135

FW2408824.UP.FTS.B,

30.81%,

1/11/27

..

1,479

1,469

FW2411299.UP.FTS.B,

30.92%,

1/11/27

..

1,482

1,469

FW2392367.UP.FTS.B,

30.94%,

1/11/27

..

1,966

1,950

FW2411172.UP.FTS.B,

30.96%,

1/11/27

..

5,045

5,010

FW2413017.UP.FTS.B,

30.97%,

1/11/27

..

2,343

166

FW2411010.UP.FTS.B,

31.02%,

1/11/27

..

3,916

3,888

FW2409966.UP.FTS.B,

31.03%,

1/11/27

..

2,871

2,851

FW2412503.UP.FTS.B,

31.04%,

1/11/27

..

1,720

122

FW2407947.UP.FTS.B,

31.05%,

1/11/27

..

3,132

3,110

FW2411701.UP.FTS.B,

31.06%,

1/11/27

..

1,942

1,920

FW2411738.UP.FTS.B,

31.08%,

1/11/27

..

1,566

1,555

FW2413942.UP.FTS.B,

31.15%,

1/11/27

..

1,045

1,037

FW2410271.UP.FTS.B,

31.19%,

1/11/27

..

1,666

1,652

FW2412133.UP.FTS.B,

31.2%,

1/11/27

...

1,168

81

FW2410499.UP.FTS.B,

31.67%,

1/11/27

..

1,545

225

FW2411062.UP.FTS.B,

32.46%,

1/11/27

..

6,120

6,076

FW2413772.UP.FTS.B,

32.47%,

1/11/27

..

1,011

992

FW2410751.UP.FTS.B,

34.47%,

1/11/27

..

4,312

4,281

L2419418.UP.FTS.B,

5.42%,

1/12/27

....

13,062

12,969

L2418737.UP.FTS.B,

5.93%,

1/12/27

....

3,107

3,086

L2414458.UP.FTS.B,

5.96%,

1/12/27

....

23,307

23,150

L2393298.UP.FTS.B,

5.98%,

1/12/27

....

569

564

L2414801.UP.FTS.B,

6.11%,

1/12/27

.....

8,552

8,495

L2419934.UP.FTS.B,

6.15%,

1/12/27

....

8,538

624

L2419361.UP.FTS.B,

6.41%,

1/12/27

....

1,168

1,160

L2402757.UP.FTS.B,

6.51%,

1/12/27

....

5,455

5,419

L2416784.UP.FTS.B,

6.53%,

1/12/27

....

1,559

1,548

L2418799.UP.FTS.B,

6.56%,

1/12/27

....

9,362

9,299

L2417049.UP.FTS.B,

6.6%,

1/12/27

.....

4,412

4,378

FW2414856.UP.FTS.B,

6.64%,

1/12/27

...

780

775

L2415375.UP.FTS.B,

6.85%,

1/12/27

....

4,683

4,652

L2416695.UP.FTS.B,

6.86%,

1/12/27

....

3,514

3,491

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

133

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2414595.UP.FTS.B,

7.05%,

1/12/27

....

$

5,863

$

5,815

L2419333.UP.FTS.B,

7.27%,

1/12/27

....

10,937

10,847

FW2415988.UP.FTS.B,

7.29%,

1/12/27

...

15,553

15,426

L2417990.UP.FTS.B,

7.34%,

1/12/27

....

39,146

38,827

L2419307.UP.FTS.B,

7.34%,

1/12/27

....

31,866

31,655

L2417199.UP.FTS.B,

7.43%,

1/12/27

....

35,484

35,189

FW2415894.UP.FTS.B,

7.44%,

1/12/27

...

11,460

11,383

FW2419541.UP.FTS.B,

7.5%,

1/12/27

....

11,754

11,658

L2414153.UP.FTS.B,

7.51%,

1/12/27

....

1,959

1,946

L2417691.UP.FTS.B,

7.69%,

1/12/27

....

17,827

17,709

L2414031.UP.FTS.B,

7.78%,

1/12/27

....

12,557

12,455

L2417969.UP.FTS.B,

8.13%,

1/12/27

....

5,819

5,772

FW2416734.UP.FTS.B,

8.22%,

1/12/27

...

3,798

3,766

L2416137.UP.FTS.B,

8.26%,

1/12/27

....

8,183

8,117

L2417948.UP.FTS.B,

8.36%,

1/12/27

....

867

860

FW2415662.UP.FTS.B,

8.6%,

1/12/27

....

5,535

5,489

L2418166.UP.FTS.B,

8.62%,

1/12/27

....

3,945

3,912

FW2416458.UP.FTS.B,

9.06%,

1/12/27

...

2,531

2,510

FW2419066.UP.FTS.B,

9.06%,

1/12/27

...

1,422

1,409

L2416545.UP.FTS.B,

9.07%,

1/12/27

....

11,294

11,198

L2418009.UP.FTS.B,

9.08%,

1/12/27

....

9,484

9,408

L2414474.UP.FTS.B,

9.1%,

1/12/27

.....

4,940

1,207

L2414926.UP.FTS.B,

9.43%,

1/12/27

....

24,637

24,434

L2413887.UP.FTS.B,

9.49%,

1/12/27

....

4,750

4,705

FW2419389.UP.FTS.B,

9.58%,

1/12/27

...

1,139

1,127

L2418929.UP.FTS.B,

9.6%,

1/12/27

.....

11,929

11,830

FW2415990.UP.FTS.B,

9.9%,

1/12/27

....

23,865

23,622

L2414275.UP.FTS.B,

9.91%,

1/12/27

....

31,753

31,500

L2417012.UP.FTS.B,

10.17%,

1/12/27

....

1,590

1,577

L2415942.UP.FTS.B,

10.21%,

1/12/27

....

11,927

11,832

FW2417548.UP.FTS.B,

10.24%,

1/12/27

..

11,928

11,833

FW2418613.UP.FTS.B,

10.3%,

1/12/27

...

3,122

3,096

FW2417403.UP.FTS.B,

10.31%,

1/12/27

..

5,571

5,517

L2417034.UP.FTS.B,

10.34%,

1/12/27

....

21,248

21,080

L2415901.UP.FTS.B,

10.41%,

1/12/27

....

12,736

12,614

L2414981.UP.FTS.B,

10.47%,

1/12/27

....

10,112

10,015

L2417379.UP.FTS.B,

10.69%,

1/12/27

....

1,510

110

L2414718.UP.FTS.B,

10.85%,

1/12/27

....

3,191

3,160

L2418788.UP.FTS.B,

10.88%,

1/12/27

....

5,580

5,509

L2416866.UP.FTS.B,

11.39%,

1/12/27

....

2,635

2,610

FW2415761.UP.FTS.B,

11.51%,

1/12/27

..

4,017

3,977

FW2419104.UP.FTS.B,

11.58%,

1/12/27

..

6,406

6,345

L2415315.UP.FTS.B,

11.71%,

1/12/27

....

11,967

11,853

L2414779.UP.FTS.B,

11.77%,

1/12/27

....

3,206

3,176

L2414313.UP.FTS.B,

12.04%,

1/12/27

....

8,026

7,950

L2415035.UP.FTS.B,

12.36%,

1/12/27

....

9,691

9,595

L2418046.UP.FTS.B,

12.84%,

1/12/27

....

3,224

3,193

L2419353.UP.FTS.B,

12.95%,

1/12/27

....

26,286

26,039

L2416405.UP.FTS.B,

13.12%,

1/12/27

....

249

246

L2418973.UP.FTS.B,

13.17%,

1/12/27

....

16,951

16,792

L2419419.UP.FTS.B,

13.25%,

1/12/27

....

5,653

5,600

L2419424.UP.FTS.B,

13.54%,

1/12/27

....

7,970

1,100

L2414757.UP.FTS.B,

13.72%,

1/12/27

....

8,840

8,752

L2419716.UP.FTS.B,

13.82%,

1/12/27

....

7,694

7,621

L2418679.UP.FTS.B,

13.97%,

1/12/27

....

8,652

8,558

FW2417958.UP.FTS.B,

14.2%,

1/12/27

...

7,048

6,981

L2414553.UP.FTS.B,

14.38%,

1/12/27

....

16,411

16,251

L2416143.UP.FTS.B,

14.39%,

1/12/27

....

1,624

1,609

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2417256.UP.FTS.B,

14.46%,

1/12/27

....

$

25,840

$

25,599

L2418826.UP.FTS.B,

14.49%,

1/12/27

....

4,647

4,589

L2416103.UP.FTS.B,

14.61%,

1/12/27

....

8,130

8,054

L2419563.UP.FTS.B,

14.64%,

1/12/27

....

24,364

24,136

L2419336.UP.FTS.B,

14.72%,

1/12/27

....

17,895

17,728

L2420324.UP.FTS.B,

14.82%,

1/12/27

....

6,016

1,542

FW2417528.UP.FTS.B,

14.86%,

1/12/27

..

4,230

1,091

L2407266.UP.FTS.B,

14.91%,

1/12/27

....

30,991

2,006

FW2414824.UP.FTS.B,

15.13%,

1/12/27

..

28,562

28,280

L2418818.UP.FTS.B,

15.34%,

1/12/27

....

5,672

5,618

FW2420218.UP.FTS.B,

15.49%,

1/12/27

..

4,865

4,819

L2418960.UP.FTS.B,

15.54%,

1/12/27

....

16,331

16,138

FW2417751.UP.FTS.B,

15.65%,

1/12/27

..

3,268

3,238

L2416354.UP.FTS.B,

15.71%,

1/12/27

....

3,969

3,930

L2417088.UP.FTS.B,

15.78%,

1/12/27

....

6,211

6,138

FW2418121.UP.FTS.B,

15.9%,

1/12/27

...

32,777

32,357

L2414253.UP.FTS.B,

16.15%,

1/12/27

....

6,552

6,474

L2414062.UP.FTS.B,

16.39%,

1/12/27

....

4,345

4,294

L2414473.UP.FTS.B,

16.4%,

1/12/27

....

820

810

L2415142.UP.FTS.B,

16.59%,

1/12/27

....

1,796

1,764

L2420474.UP.FTS.B,

16.75%,

1/12/27

....

12,318

12,204

L2420206.UP.FTS.B,

16.98%,

1/12/27

....

9,043

8,937

L2416327.UP.FTS.B,

17.17%,

1/12/27

....

20,570

20,381

L2417581.UP.FTS.B,

17.27%,

1/12/27

....

3,622

3,579

L2415513.UP.FTS.B,

17.29%,

1/12/27

....

2,980

2,931

FW2414008.UP.FTS.B,

17.55%,

1/12/27

..

2,691

2,666

FW2394068.UP.FTS.B,

18.18%,

1/12/27

..

6,613

6,521

L2416524.UP.FTS.B,

18.36%,

1/12/27

....

4,133

4,095

L2415786.UP.FTS.B,

18.43%,

1/12/27

....

3,722

539

L2415190.UP.FTS.B,

18.58%,

1/12/27

....

4,141

4,083

FW2415024.UP.FTS.B,

19.94%,

1/12/27

..

7,248

7,214

L2414022.UP.FTS.B,

20.3%,

1/12/27

....

35,320

1,059

FW2414368.UP.FTS.B,

20.45%,

1/12/27

..

2,144

2,132

L2418100.UP.FTS.B,

20.74%,

1/12/27

....

15,132

14,923

L2416916.UP.FTS.B,

21.22%,

1/12/27

....

4,195

4,168

L2416598.UP.FTS.B,

21.42%,

1/12/27

....

6,279

6,248

L2404728.UP.FTS.B,

21.56%,

1/12/27

....

1,259

1,253

L2414877.UP.FTS.B,

21.7%,

1/12/27

....

4,642

4,613

L2389418.UP.FTS.B,

22.12%,

1/12/27

....

5,272

5,004

L2415810.UP.FTS.B,

22.13%,

1/12/27

....

4,299

4,078

L2415799.UP.FTS.B,

22.22%,

1/12/27

....

4,100

4,075

FW2408502.UP.FTS.B,

22.28%,

1/12/27

..

5,393

5,358

L2416737.UP.FTS.B,

23.4%,

1/12/27

....

2,284

2,273

FW2416362.UP.FTS.B,

23.42%,

1/12/27

..

4,228

4,208

L2409743.UP.FTS.B,

23.49%,

1/12/27

....

9,266

8,709

FW2418430.UP.FTS.B,

23.78%,

1/12/27

..

1,854

1,824

FW2414282.UP.FTS.B,

23.79%,

1/12/27

..

1,693

1,685

FW2415097.UP.FTS.B,

23.87%,

1/12/27

..

2,293

2,272

L2410860.UP.FTS.B,

23.88%,

1/12/27

....

5,468

5,437

L2415306.UP.FTS.B,

24.21%,

1/12/27

....

9,160

9,116

L2414849.UP.FTS.B,

24.57%,

1/12/27

....

2,875

2,860

L2417607.UP.FTS.B,

24.68%,

1/12/27

....

5,007

4,963

FW2415034.UP.FTS.B,

24.95%,

1/12/27

..

4,783

1,377

L2416370.UP.FTS.B,

25.03%,

1/12/27

....

13,644

3,961

L2416425.UP.FTS.B,

25.07%,

1/12/27

....

852

838

FW2415852.UP.FTS.B,

25.19%,

1/12/27

..

7,694

7,646

L2415512.UP.FTS.B,

25.19%,

1/12/27

....

3,659

522

L2420285.UP.FTS.B,

25.25%,

1/12/27

....

1,780

1,751

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

134

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2418700.UP.FTS.B,

25.3%,

1/12/27

....

$

1,274

$

1,255

FW2414825.UP.FTS.B,

25.31%,

1/12/27

..

4,259

4,239

L2414994.UP.FTS.B,

25.32%,

1/12/27

....

2,525

2,511

L2411740.UP.FTS.B,

25.36%,

1/12/27

....

1,363

1,357

L2419040.UP.FTS.B,

25.37%,

1/12/27

....

1,123

1,056

FW2416291.UP.FTS.B,

25.38%,

1/12/27

..

12,874

924

L2418717.UP.FTS.B,

25.38%,

1/12/27

....

2,898

2,884

FW2414842.UP.FTS.B,

25.41%,

1/12/27

..

876

253

L2414777.UP.FTS.B,

25.43%,

1/12/27

....

1,183

1,176

L2416664.UP.FTS.B,

25.43%,

1/12/27

....

1,275

1,257

L2417967.UP.FTS.B,

25.45%,

1/12/27

....

5,114

5,090

L2417114.UP.FTS.B,

25.49%,

1/12/27

....

1,620

1,612

L2418684.UP.FTS.B,

25.49%,

1/12/27

....

2,370

2,247

FW2415078.UP.FTS.B,

25.67%,

1/12/27

..

3,374

3,355

FW2418617.UP.FTS.B,

25.69%,

1/12/27

..

10,960

10,900

FW2416204.UP.FTS.B,

25.74%,

1/12/27

..

10,984

779

FW2418174.UP.FTS.B,

25.89%,

1/12/27

..

8,480

8,436

L2413654.UP.FTS.B,

25.91%,

1/12/27

....

4,782

4,716

L2414249.UP.FTS.B,

26.35%,

1/12/27

....

3,421

3,405

FW2414970.UP.FTS.B,

26.42%,

1/12/27

..

8,564

8,524

FW2419574.UP.FTS.B,

26.43%,

1/12/27

..

16,473

16,381

FW2415609.UP.FTS.B,

26.58%,

1/12/27

..

1,627

1,619

FW2415999.UP.FTS.B,

26.93%,

1/12/27

..

7,886

7,849

L2414422.UP.FTS.B,

27.95%,

1/12/27

....

2,495

2,484

FW2416040.UP.FTS.B,

27.97%,

1/12/27

..

6,818

480

FW2411493.UP.FTS.B,

28.18%,

1/12/27

..

12,294

12,207

FW2418131.UP.FTS.B,

28.24%,

1/12/27

..

13,550

2,004

FW2417708.UP.FTS.B,

28.27%,

1/12/27

..

8,615

8,574

FW2415920.UP.FTS.B,

28.81%,

1/12/27

..

10,967

88

FW2418008.UP.FTS.B,

28.88%,

1/12/27

..

1,468

1,461

FW2415652.UP.FTS.B,

29.37%,

1/12/27

..

12,109

12,051

FW2419252.UP.FTS.B,

29.51%,

1/12/27

..

2,220

158

FW2416858.UP.FTS.B,

29.58%,

1/12/27

..

4,934

345

FW2418306.UP.FTS.B,

29.61%,

1/12/27

..

6,120

6,085

FW2412114.UP.FTS.B,

30.39%,

1/12/27

..

4,236

21

FW2415348.UP.FTS.B,

30.45%,

1/12/27

..

18,471

18,353

FW2419466.UP.FTS.B,

30.59%,

1/12/27

..

4,691

4,669

FW2414026.UP.FTS.B,

30.61%,

1/12/27

..

961

956

FW2415122.UP.FTS.B,

30.76%,

1/12/27

..

1,999

1,990

FW2417562.UP.FTS.B,

30.84%,

1/12/27

..

869

865

FW2418392.UP.FTS.B,

30.87%,

1/12/27

..

1,894

1,884

FW2418950.UP.FTS.B,

30.94%,

1/12/27

..

1,761

1,739

FW2413630.UP.FTS.B,

30.97%,

1/12/27

..

1,240

1,231

FW2416140.UP.FTS.B,

30.99%,

1/12/27

..

1,914

1,905

FW2415090.UP.FTS.B,

31%,

1/12/27

....

17,630

1,246

FW2417415.UP.FTS.B,

31.03%,

1/12/27

..

1,566

1,559

FW2420487.UP.FTS.B,

31.06%,

1/12/27

..

1,604

1,590

FW2415692.UP.FTS.B,

31.1%,

1/12/27

...

7,447

7,398

FW2415518.UP.FTS.B,

31.11%,

1/12/27

..

5,251

4,985

FW2417950.UP.FTS.B,

31.11%,

1/12/27

..

832

826

FW2414984.UP.FTS.B,

31.12%,

1/12/27

..

3,321

3,301

FW2418991.UP.FTS.B,

31.12%,

1/12/27

..

4,370

4,345

FW2415964.UP.FTS.B,

31.16%,

1/12/27

..

1,116

1,109

FW2417489.UP.FTS.B,

31.18%,

1/12/27

..

1,406

99

FW2416377.UP.FTS.B,

31.22%,

1/12/27

..

4,266

4,246

FW2414360.UP.FTS.B,

33.08%,

1/12/27

..

2,015

2,005

FW2419527.UP.FTS.B,

33.12%,

1/12/27

..

1,188

1,180

FW2414624.UP.FTS.B,

33.41%,

1/12/27

..

2,501

2,486

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2414012.UP.FTS.B,

9.06%,

1/20/27

....

$

7,903

$

7,851

L1711260.UP.FTS.B,

11.26%,

2/14/27

....

1,553

1,534

L1710099.UP.FTS.B,

16.39%,

2/14/27

....

11,332

11,202

FW1709115.UP.FTS.B,

20.14%,

2/14/27

..

4,264

4,191

FW1711645.UP.FTS.B,

20.26%,

2/14/27

..

23,822

22,897

L1711058.UP.FTS.B,

22.48%,

2/14/27

....

7,696

110

FW1710506.UP.FTS.B,

24.97%,

2/14/27

..

5,109

363

L1709217.UP.FTS.B,

25.78%,

2/14/27

....

21,551

20,399

L1710004.UP.FTS.B,

26.05%,

2/14/27

....

9,183

8,950

FW1711816.UP.FTS.B,

27.5%,

2/14/27

...

1,357

1,287

FW1712574.UP.FTS.B,

28.34%,

2/14/27

..

4,392

4,354

FW1712431.UP.FTS.B,

29.12%,

2/14/27

..

2,574

744

FW1710082.UP.FTS.B,

31.29%,

2/14/27

..

826

824

FW1687516.UP.FTS.B,

31.34%,

2/14/27

..

26,772

25,410

FW1709995.UP.FTS.B,

32.33%,

2/14/27

..

13,146

13,104

L2632551.UP.FTS.B,

5.37%,

2/15/27

....

9,477

9,413

L2632779.UP.FTS.B,

5.63%,

2/15/27

....

5,536

5,498

L2633842.UP.FTS.B,

6.31%,

2/15/27

....

6,330

6,275

L2633588.UP.FTS.B,

6.56%,

2/15/27

....

26,224

26,046

L2631314.UP.FTS.B,

6.7%,

2/15/27

.....

16,700

16,587

L2633374.UP.FTS.B,

7.21%,

2/15/27

....

15,149

15,046

L2633603.UP.FTS.B,

8.38%,

2/15/27

....

13,983

13,126

FW2631935.UP.FTS.B,

8.55%,

2/15/27

...

30,703

28,818

L2630774.UP.FTS.B,

8.69%,

2/15/27

....

3,213

3,192

L2635638.UP.FTS.B,

9.41%,

2/15/27

....

7,530

7,462

L2631278.UP.FTS.B,

9.42%,

2/15/27

....

4,031

3,998

FW2633029.UP.FTS.B,

9.57%,

2/15/27

...

1,210

1,200

FW2633295.UP.FTS.B,

9.71%,

2/15/27

...

14,937

14,812

FW2635362.UP.FTS.B,

9.75%,

2/15/27

...

9,691

9,610

L2633022.UP.FTS.B,

9.86%,

2/15/27

....

12,061

11,958

FW2635247.UP.FTS.B,

10.37%,

2/15/27

..

6,936

6,866

L2632143.UP.FTS.B,

10.83%,

2/15/27

....

4,732

4,688

FW2637614.UP.FTS.B,

11.51%,

2/15/27

..

10,483

10,370

L2589493.UP.FTS.B,

11.56%,

2/15/27

....

12,675

12,543

L2637309.UP.FTS.B,

11.72%,

2/15/27

....

40,763

40,354

L2632232.UP.FTS.B,

11.83%,

2/15/27

....

7,281

7,197

L2633836.UP.FTS.B,

12%,

2/15/27

......

8,656

8,569

FW2636201.UP.FTS.B,

12.12%,

2/15/27

..

5,718

5,660

L2630147.UP.FTS.B,

12.15%,

2/15/27

....

32,676

32,348

L2635861.UP.FTS.B,

12.41%,

2/15/27

....

6,952

6,882

L2636245.UP.FTS.B,

12.68%,

2/15/27

....

32,740

32,410

L2628202.UP.FTS.B,

13.1%,

2/15/27

....

5,293

5,239

L2637042.UP.FTS.B,

13.14%,

2/15/27

....

6,566

6,500

L2631332.UP.FTS.B,

13.22%,

2/15/27

....

4,105

4,064

FW2633237.UP.FTS.B,

13.24%,

2/15/27

..

3,284

3,251

L2631964.UP.FTS.B,

14%,

2/15/27

......

6,199

6,134

L2632724.UP.FTS.B,

14.48%,

2/15/27

....

4,377

4,333

FW2634262.UP.FTS.B,

14.51%,

2/15/27

..

13,212

13,079

FW2635512.UP.FTS.B,

14.58%,

2/15/27

..

14,877

14,727

L2637603.UP.FTS.B,

14.83%,

2/15/27

....

5,286

5,232

FW2631558.UP.FTS.B,

15.18%,

2/15/27

..

12,423

12,298

L2635221.UP.FTS.B,

15.45%,

2/15/27

....

6,136

6,074

FW2633986.UP.FTS.B,

15.46%,

2/15/27

..

20,959

19,679

FW2631951.UP.FTS.B,

15.91%,

2/15/27

..

7,418

6,965

FW2634727.UP.FTS.B,

16.18%,

2/15/27

..

5,491

5,421

L2635424.UP.FTS.B,

16.37%,

2/15/27

....

33,303

32,881

L2610013.UP.FTS.B,

16.95%,

2/15/27

....

3,481

939

L2630011.UP.FTS.B,

16.96%,

2/15/27

....

4,174

4,131

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

135

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2631718.UP.FTS.B,

16.99%,

2/15/27

....

$

4,238

$

3,980

L2636076.UP.FTS.B,

17.15%,

2/15/27

....

6,219

6,137

FW2635945.UP.FTS.B,

17.32%,

2/15/27

..

4,597

4,529

FW2635975.UP.FTS.B,

18.14%,

2/15/27

..

13,137

12,337

FW2635531.UP.FTS.B,

18.53%,

2/15/27

..

9,914

9,788

FW2632933.UP.FTS.B,

18.59%,

2/15/27

..

8,405

8,297

FW2632544.UP.FTS.B,

18.69%,

2/15/27

..

21,020

20,707

L2610892.UP.FTS.B,

18.7%,

2/15/27

....

12,650

12,448

L2634353.UP.FTS.B,

19.06%,

2/15/27

....

8,322

8,195

FW2634297.UP.FTS.B,

19.29%,

2/15/27

..

11,125

10,983

FW2629363.UP.FTS.B,

19.37%,

2/15/27

..

5,004

4,927

L2635892.UP.FTS.B,

19.39%,

2/15/27

....

696

99

L2632256.UP.FTS.B,

19.82%,

2/15/27

....

845

834

L2634883.UP.FTS.B,

19.98%,

2/15/27

....

6,800

6,692

L2637386.UP.FTS.B,

20.16%,

2/15/27

....

6,446

6,046

L2635013.UP.FTS.B,

20.25%,

2/15/27

....

5,017

4,939

L2633648.UP.FTS.B,

20.29%,

2/15/27

....

8,639

8,525

FW2632574.UP.FTS.B,

20.97%,

2/15/27

..

11,344

11,124

L2632212.UP.FTS.B,

21.09%,

2/15/27

....

3,279

3,226

FW2637242.UP.FTS.B,

21.26%,

2/15/27

..

7,646

7,548

L2630116.UP.FTS.B,

21.26%,

2/15/27

....

5,097

5,021

L2637476.UP.FTS.B,

21.48%,

2/15/27

....

9,397

8,817

L2633936.UP.FTS.B,

21.75%,

2/15/27

....

2,963

447

FW2631142.UP.FTS.B,

21.84%,

2/15/27

..

2,699

2,681

FW2634641.UP.FTS.B,

22.06%,

2/15/27

..

11,931

11,857

L2636740.UP.FTS.B,

22.15%,

2/15/27

....

853

847

L2633500.UP.FTS.B,

22.28%,

2/15/27

....

4,368

4,139

FW2635428.UP.FTS.B,

22.3%,

2/15/27

...

14,017

13,909

L2631928.UP.FTS.B,

22.74%,

2/15/27

....

6,387

6,346

L2636620.UP.FTS.B,

22.94%,

2/15/27

....

7,445

537

FW2632848.UP.FTS.B,

22.95%,

2/15/27

..

5,057

365

L2635474.UP.FTS.B,

23.01%,

2/15/27

....

7,009

6,642

FW2636073.UP.FTS.B,

23.1%,

2/15/27

...

4,373

4,144

L2632041.UP.FTS.B,

23.26%,

2/15/27

....

10,276

10,120

L2631781.UP.FTS.B,

23.47%,

2/15/27

....

2,401

2,294

FW2633249.UP.FTS.B,

23.49%,

2/15/27

..

4,713

4,683

L2635262.UP.FTS.B,

24.04%,

2/15/27

....

7,727

7,678

L2633254.UP.FTS.B,

24.29%,

2/15/27

....

18,735

18,450

L2632195.UP.FTS.B,

24.38%,

2/15/27

....

1,698

12

FW2632915.UP.FTS.B,

24.46%,

2/15/27

..

13,072

12,989

L2629665.UP.FTS.B,

24.47%,

2/15/27

....

6,081

6,036

FW2634252.UP.FTS.B,

24.49%,

2/15/27

..

5,617

5,321

L2636078.UP.FTS.B,

24.6%,

2/15/27

....

12,994

12,911

FW2632893.UP.FTS.B,

24.67%,

2/15/27

..

18,761

18,641

FW2636783.UP.FTS.B,

24.67%,

2/15/27

..

10,082

724

FW2632707.UP.FTS.B,

24.74%,

2/15/27

..

4,863

1,407

L2631848.UP.FTS.B,

24.9%,

2/15/27

....

5,193

5,153

L2634268.UP.FTS.B,

25.05%,

2/15/27

....

2,069

2,056

FW2635941.UP.FTS.B,

25.09%,

2/15/27

..

4,740

4,710

L2637318.UP.FTS.B,

25.13%,

2/15/27

....

2,921

823

L2631220.UP.FTS.B,

25.21%,

2/15/27

....

2,587

2,570

L2634635.UP.FTS.B,

25.23%,

2/15/27

....

6,704

6,652

L2634539.UP.FTS.B,

25.3%,

2/15/27

....

1,639

1,628

L2630368.UP.FTS.B,

25.31%,

2/15/27

....

2,568

744

L2632154.UP.FTS.B,

25.31%,

2/15/27

....

20,272

20,142

L2633915.UP.FTS.B,

25.37%,

2/15/27

....

1,467

1,444

L2633587.UP.FTS.B,

25.38%,

2/15/27

....

1,467

1,457

L2636370.UP.FTS.B,

25.4%,

2/15/27

....

2,589

2,572

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2631133.UP.FTS.B,

25.41%,

2/15/27

....

$

1,310

$

1,230

L2631893.UP.FTS.B,

25.41%,

2/15/27

....

3,104

3,084

L2636222.UP.FTS.B,

25.41%,

2/15/27

....

17,258

17,147

L2634591.UP.FTS.B,

25.45%,

2/15/27

....

949

943

L2632552.UP.FTS.B,

25.56%,

2/15/27

....

2,851

2,832

FW2631141.UP.FTS.B,

25.72%,

2/15/27

..

11,317

11,244

L2634677.UP.FTS.B,

25.78%,

2/15/27

....

3,456

3,434

FW2635210.UP.FTS.B,

25.81%,

2/15/27

..

5,185

5,152

L2636195.UP.FTS.B,

25.92%,

2/15/27

....

12,967

12,884

FW2634765.UP.FTS.B,

26.22%,

2/15/27

..

15,577

15,476

L2635199.UP.FTS.B,

26.23%,

2/15/27

....

5,452

5,417

FW2635628.UP.FTS.B,

26.36%,

2/15/27

..

2,323

2,283

FW2634760.UP.FTS.B,

26.38%,

2/15/27

..

5,109

5,075

L2634070.UP.FTS.B,

26.45%,

2/15/27

....

21,579

21,439

L2635219.UP.FTS.B,

26.59%,

2/15/27

....

3,640

3,616

FW2637086.UP.FTS.B,

26.68%,

2/15/27

..

2,861

2,842

FW2632673.UP.FTS.B,

27.01%,

2/15/27

..

1,877

1,863

FW2631843.UP.FTS.B,

27.26%,

2/15/27

..

4,367

1,269

FW2637044.UP.FTS.B,

27.28%,

2/15/27

..

1,458

1,436

FW2633233.UP.FTS.B,

27.31%,

2/15/27

..

7,917

557

FW2634310.UP.FTS.B,

27.59%,

2/15/27

..

6,435

6,393

FW2632183.UP.FTS.B,

27.72%,

2/15/27

..

6,090

6,050

FW2636178.UP.FTS.B,

28%,

2/15/27

....

5,287

5,013

FW2632116.UP.FTS.B,

28.1%,

2/15/27

...

9,311

662

FW2634627.UP.FTS.B,

28.11%,

2/15/27

..

5,226

5,192

FW2635226.UP.FTS.B,

28.22%,

2/15/27

..

1,968

1,863

FW2634686.UP.FTS.B,

28.47%,

2/15/27

..

4,727

4,675

FW2587827.UP.FTS.B,

28.49%,

2/15/27

..

10,387

10,312

FW2635435.UP.FTS.B,

28.75%,

2/15/27

..

1,703

1,690

FW2634423.UP.FTS.B,

28.99%,

2/15/27

..

17,914

16,979

FW2632227.UP.FTS.B,

29.31%,

2/15/27

..

17,492

17,375

FW2634087.UP.FTS.B,

29.37%,

2/15/27

..

4,887

4,840

FW2636066.UP.FTS.B,

29.41%,

2/15/27

..

3,029

212

FW2633754.UP.FTS.B,

29.46%,

2/15/27

..

26,342

24,961

FW2635622.UP.FTS.B,

29.54%,

2/15/27

..

4,407

1,282

FW2632506.UP.FTS.B,

29.8%,

2/15/27

...

4,854

4,814

FW2636841.UP.FTS.B,

30.04%,

2/15/27

..

24,352

23,075

FW2631008.UP.FTS.B,

30.31%,

2/15/27

..

839

832

FW2636372.UP.FTS.B,

30.35%,

2/15/27

..

5,265

5,230

FW2632070.UP.FTS.B,

30.58%,

2/15/27

..

2,805

2,786

FW2631994.UP.FTS.B,

30.71%,

2/15/27

..

4,576

4,540

FW2631494.UP.FTS.B,

30.85%,

2/15/27

..

3,955

3,929

FW2635126.UP.FTS.B,

30.85%,

2/15/27

..

1,620

474

FW2629864.UP.FTS.B,

30.9%,

2/15/27

...

2,022

2,008

FW2633675.UP.FTS.B,

30.91%,

2/15/27

..

967

961

FW2634617.UP.FTS.B,

30.93%,

2/15/27

..

3,268

3,242

FW2631125.UP.FTS.B,

30.96%,

2/15/27

..

843

810

FW2631968.UP.FTS.B,

30.98%,

2/15/27

..

6,076

6,013

FW2636445.UP.FTS.B,

31%,

2/15/27

....

1,600

1,517

FW2635952.UP.FTS.B,

31.06%,

2/15/27

..

1,498

106

FW2633314.UP.FTS.B,

31.08%,

2/15/27

..

956

928

FW2637419.UP.FTS.B,

31.1%,

2/15/27

...

2,814

2,788

FW2633604.UP.FTS.B,

31.13%,

2/15/27

..

2,288

2,272

FW2637089.UP.FTS.B,

31.23%,

2/15/27

..

7,392

7,342

FW2632904.UP.FTS.B,

31.38%,

2/15/27

..

3,295

3,124

L2640422.UP.FTS.B,

7.19%,

2/16/27

....

4,767

4,730

FW2639217.UP.FTS.B,

7.48%,

2/16/27

...

10,779

10,695

L2638196.UP.FTS.B,

7.54%,

2/16/27

....

14,798

14,703

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2642691.UP.FTS.B,

8.69%,

2/16/27

....

$

26,418

$

26,212

L2644170.UP.FTS.B,

8.74%,

2/16/27

....

22,097

21,926

L2644467.UP.FTS.B,

8.99%,

2/16/27

....

1,657

1,641

L2641249.UP.FTS.B,

9.09%,

2/16/27

....

11,833

11,741

L2643996.UP.FTS.B,

9.54%,

2/16/27

....

12,101

12,008

FW2640044.UP.FTS.B,

9.77%,

2/16/27

...

4,710

4,673

FW2639996.UP.FTS.B,

9.85%,

2/16/27

...

6,046

5,984

L2644692.UP.FTS.B,

10.37%,

2/16/27

....

3,236

3,211

L2628258.UP.FTS.B,

10.4%,

2/16/27

....

13,202

13,080

L2639939.UP.FTS.B,

10.73%,

2/16/27

....

11,742

11,633

L2642767.UP.FTS.B,

10.84%,

2/16/27

....

10,473

10,377

L2642462.UP.FTS.B,

10.86%,

2/16/27

....

5,684

5,631

FW2639271.UP.FTS.B,

10.98%,

2/16/27

..

43,154

5,962

FW2636951.UP.FTS.B,

11.21%,

2/16/27

..

13,257

13,135

L2643884.UP.FTS.B,

11.41%,

2/16/27

....

6,105

6,049

L2640107.UP.FTS.B,

11.57%,

2/16/27

....

8,717

8,637

L2642580.UP.FTS.B,

11.66%,

2/16/27

....

2,853

2,826

FW2644262.UP.FTS.B,

11.83%,

2/16/27

..

8,157

8,083

L2642829.UP.FTS.B,

11.96%,

2/16/27

....

17,466

17,306

L2643133.UP.FTS.B,

12.13%,

2/16/27

....

8,929

8,847

L2640589.UP.FTS.B,

12.31%,

2/16/27

....

40,874

40,501

L2637999.UP.FTS.B,

12.45%,

2/16/27

....

9,158

9,074

L2644043.UP.FTS.B,

12.51%,

2/16/27

....

4,516

628

FW2642297.UP.FTS.B,

12.63%,

2/16/27

..

7,860

7,788

FW2641042.UP.FTS.B,

12.73%,

2/16/27

..

983

974

FW2644450.UP.FTS.B,

13.29%,

2/16/27

..

1,273

325

L2641626.UP.FTS.B,

13.94%,

2/16/27

....

824

816

L2639543.UP.FTS.B,

14.06%,

2/16/27

....

8,241

8,167

FW2641444.UP.FTS.B,

14.17%,

2/16/27

..

5,360

5,311

L2643434.UP.FTS.B,

14.29%,

2/16/27

....

8,365

7,861

FW2637881.UP.FTS.B,

14.54%,

2/16/27

..

4,945

4,900

L2637807.UP.FTS.B,

14.59%,

2/16/27

....

12,319

12,207

L2643572.UP.FTS.B,

14.72%,

2/16/27

....

1,653

1,638

L2641778.UP.FTS.B,

14.87%,

2/16/27

....

36,895

36,563

FW2640160.UP.FTS.B,

14.88%,

2/16/27

..

19,025

18,853

L2641628.UP.FTS.B,

14.9%,

2/16/27

....

9,701

9,609

FW2644643.UP.FTS.B,

15%,

2/16/27

....

3,642

3,609

L2644502.UP.FTS.B,

15.74%,

2/16/27

....

16,377

16,210

L2643245.UP.FTS.B,

15.83%,

2/16/27

....

18,025

17,863

L2642945.UP.FTS.B,

15.91%,

2/16/27

....

1,246

1,235

FW2643582.UP.FTS.B,

16.21%,

2/16/27

..

17,222

2,473

FW2637690.UP.FTS.B,

16.3%,

2/16/27

...

5,405

5,356

FW2643607.UP.FTS.B,

16.31%,

2/16/27

..

41,616

41,141

FW2638305.UP.FTS.B,

16.48%,

2/16/27

..

8,947

8,838

L2641861.UP.FTS.B,

16.53%,

2/16/27

....

17,109

16,886

L2639711.UP.FTS.B,

16.7%,

2/16/27

.....

1,334

1,319

L2640734.UP.FTS.B,

17.15%,

2/16/27

....

41,656

41,174

FW2641664.UP.FTS.B,

17.29%,

2/16/27

..

4,868

4,811

L2643228.UP.FTS.B,

17.64%,

2/16/27

....

4,186

4,138

L2641429.UP.FTS.B,

17.81%,

2/16/27

....

10,890

10,766

FW2643031.UP.FTS.B,

17.82%,

2/16/27

..

31,833

31,551

L2641792.UP.FTS.B,

17.85%,

2/16/27

....

4,216

4,177

FW2641155.UP.FTS.B,

18.14%,

2/16/27

..

4,635

4,568

L2638277.UP.FTS.B,

18.32%,

2/16/27

....

4,262

4,008

L2643141.UP.FTS.B,

18.53%,

2/16/27

....

18,281

18,065

FW2642517.UP.FTS.B,

18.63%,

2/16/27

..

9,078

8,975

L2640308.UP.FTS.B,

18.76%,

2/16/27

....

29,442

29,047

FW2640157.UP.FTS.B,

18.91%,

2/16/27

..

8,923

8,819

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2639156.UP.FTS.B,

18.92%,

2/16/27

....

$

21,678

$

5,883

L2607183.UP.FTS.B,

19.09%,

2/16/27

....

16,871

16,665

FW2643386.UP.FTS.B,

19.11%,

2/16/27

..

3,283

3,145

L2640102.UP.FTS.B,

19.59%,

2/16/27

....

21,856

21,607

L2642912.UP.FTS.B,

19.59%,

2/16/27

....

16,697

16,504

L2642762.UP.FTS.B,

19.61%,

2/16/27

....

2,142

71

L2637788.UP.FTS.B,

19.66%,

2/16/27

....

2,786

2,748

L2644725.UP.FTS.B,

19.78%,

2/16/27

....

8,451

8,338

L2643324.UP.FTS.B,

19.84%,

2/16/27

....

39,790

39,303

L2639353.UP.FTS.B,

19.93%,

2/16/27

....

27,252

1,942

L2639587.UP.FTS.B,

20.1%,

2/16/27

....

3,382

3,337

FW2640938.UP.FTS.B,

20.16%,

2/16/27

..

9,221

9,181

L2644267.UP.FTS.B,

20.32%,

2/16/27

....

846

839

L2643431.UP.FTS.B,

20.38%,

2/16/27

....

12,144

11,414

L2631654.UP.FTS.B,

20.62%,

2/16/27

....

18,982

18,898

FW2644103.UP.FTS.B,

20.8%,

2/16/27

...

6,363

6,291

FW2639130.UP.FTS.B,

21.01%,

2/16/27

..

3,395

3,380

FW2640179.UP.FTS.B,

21.11%,

2/16/27

..

3,791

3,602

FW2642916.UP.FTS.B,

21.2%,

2/16/27

...

12,598

12,422

L2640498.UP.FTS.B,

21.39%,

2/16/27

....

8,501

8,464

L2638952.UP.FTS.B,

21.6%,

2/16/27

....

24,034

23,702

FW2640087.UP.FTS.B,

21.67%,

2/16/27

..

18,808

1,352

FW2638136.UP.FTS.B,

21.78%,

2/16/27

..

6,811

6,781

FW2643646.UP.FTS.B,

21.86%,

2/16/27

..

13,709

13,649

FW2644820.UP.FTS.B,

21.87%,

2/16/27

..

6,363

457

L2641584.UP.FTS.B,

21.92%,

2/16/27

....

44,215

12,478

L2637535.UP.FTS.B,

21.95%,

2/16/27

....

25,043

24,932

L2641532.UP.FTS.B,

22.02%,

2/16/27

....

5,880

5,854

FW2641686.UP.FTS.B,

22.07%,

2/16/27

..

2,857

801

L2631819.UP.FTS.B,

22.11%,

2/16/27

....

24,556

24,406

L2637903.UP.FTS.B,

22.13%,

2/16/27

....

10,119

9,978

FW2640578.UP.FTS.B,

22.42%,

2/16/27

..

787

781

L2640051.UP.FTS.B,

22.42%,

2/16/27

....

7,715

7,671

L2640329.UP.FTS.B,

22.77%,

2/16/27

....

3,760

3,743

L2639752.UP.FTS.B,

22.85%,

2/16/27

....

42,738

42,166

FW2643850.UP.FTS.B,

23.05%,

2/16/27

..

12,515

12,091

L2644478.UP.FTS.B,

23.24%,

2/16/27

....

17,126

17,050

FW2641930.UP.FTS.B,

23.25%,

2/16/27

..

8,905

8,786

FW2640017.UP.FTS.B,

23.28%,

2/16/27

..

42,776

42,586

L2636952.UP.FTS.B,

23.58%,

2/16/27

....

8,571

8,534

FW2639691.UP.FTS.B,

23.69%,

2/16/27

..

15,606

15,537

FW2643737.UP.FTS.B,

23.79%,

2/16/27

..

13,621

13,549

L2643173.UP.FTS.B,

23.83%,

2/16/27

....

4,370

1,231

FW2639280.UP.FTS.B,

23.91%,

2/16/27

..

1,963

295

L2644184.UP.FTS.B,

24.14%,

2/16/27

....

7,824

7,358

L2638762.UP.FTS.B,

24.36%,

2/16/27

....

2,896

2,882

L2638731.UP.FTS.B,

24.44%,

2/16/27

....

3,439

3,424

FW2641976.UP.FTS.B,

24.71%,

2/16/27

..

11,362

11,312

L2638887.UP.FTS.B,

24.84%,

2/16/27

....

1,722

1,715

L2643360.UP.FTS.B,

24.93%,

2/16/27

....

2,843

2,830

L2642235.UP.FTS.B,

24.97%,

2/16/27

....

1,293

1,287

FW2642257.UP.FTS.B,

25.15%,

2/16/27

..

8,604

8,566

FW2640811.UP.FTS.B,

25.17%,

2/16/27

..

25,864

25,750

L2638208.UP.FTS.B,

25.18%,

2/16/27

....

2,155

2,146

L2644708.UP.FTS.B,

25.19%,

2/16/27

....

3,966

3,949

L2639167.UP.FTS.B,

25.24%,

2/16/27

....

4,140

4,121

L2629944.UP.FTS.B,

25.26%,

2/16/27

....

1,035

1,030

L2639868.UP.FTS.B,

25.27%,

2/16/27

....

1,019

73

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

137

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2639974.UP.FTS.B,

25.28%,

2/16/27

....

$

2,440

$

173

L2644756.UP.FTS.B,

25.29%,

2/16/27

....

2,334

683

FW2644569.UP.FTS.B,

25.34%,

2/16/27

..

8,768

8,321

L2640772.UP.FTS.B,

25.34%,

2/16/27

....

1,377

1,371

L2640475.UP.FTS.B,

25.37%,

2/16/27

....

2,934

2,921

L2641882.UP.FTS.B,

25.38%,

2/16/27

....

2,250

2,170

L2642246.UP.FTS.B,

25.42%,

2/16/27

....

1,899

1,890

L2637328.UP.FTS.B,

25.43%,

2/16/27

....

5,264

5,241

L2643718.UP.FTS.B,

25.45%,

2/16/27

....

1,208

1,203

L2638486.UP.FTS.B,

25.48%,

2/16/27

....

8,891

8,851

L2644251.UP.FTS.B,

25.49%,

2/16/27

....

1,040

1,034

L2643938.UP.FTS.B,

25.5%,

2/16/27

....

1,295

1,289

L2643974.UP.FTS.B,

25.5%,

2/16/27

....

3,138

3,121

L2644656.UP.FTS.B,

25.52%,

2/16/27

....

3,367

3,352

L2638794.UP.FTS.B,

25.6%,

2/16/27

....

11,226

11,176

L2638678.UP.FTS.B,

25.84%,

2/16/27

....

8,642

8,604

FW2639725.UP.FTS.B,

25.86%,

2/16/27

..

10,017

717

FW2642963.UP.FTS.B,

25.88%,

2/16/27

..

4,149

4,131

FW2634599.UP.FTS.B,

26.05%,

2/16/27

..

15,280

1,093

L2640846.UP.FTS.B,

26.29%,

2/16/27

....

21,646

21,551

FW2639867.UP.FTS.B,

26.3%,

2/16/27

...

1,731

1,724

L2640994.UP.FTS.B,

27.05%,

2/16/27

....

17,359

17,283

FW2641067.UP.FTS.B,

27.08%,

2/16/27

..

6,048

6,020

FW2638017.UP.FTS.B,

27.09%,

2/16/27

..

7,465

7,433

FW2640323.UP.FTS.B,

27.2%,

2/16/27

...

5,992

5,966

FW2636711.UP.FTS.B,

27.4%,

2/16/27

...

8,690

8,652

FW2639797.UP.FTS.B,

28.19%,

2/16/27

..

2,440

2,429

FW2644724.UP.FTS.B,

28.24%,

2/16/27

..

45,088

42,813

FW2643525.UP.FTS.B,

28.34%,

2/16/27

..

9,939

9,895

FW2644630.UP.FTS.B,

28.55%,

2/16/27

..

8,745

8,695

FW2642505.UP.FTS.B,

29.14%,

2/16/27

..

1,812

1,803

FW2644598.UP.FTS.B,

29.38%,

2/16/27

..

9,542

9,500

FW2638694.UP.FTS.B,

29.47%,

2/16/27

..

3,291

230

FW2638733.UP.FTS.B,

29.69%,

2/16/27

..

3,766

3,749

FW2637102.UP.FTS.B,

30%,

2/16/27

....

9,999

697

FW2641230.UP.FTS.B,

30.11%,

2/16/27

..

2,123

2,063

FW2639696.UP.FTS.B,

30.14%,

2/16/27

..

877

873

FW2640894.UP.FTS.B,

30.14%,

2/16/27

..

23,855

23,750

FW2644440.UP.FTS.B,

30.21%,

2/16/27

..

1,138

1,133

FW2641475.UP.FTS.B,

30.33%,

2/16/27

..

1,497

1,488

FW2642574.UP.FTS.B,

30.52%,

2/16/27

..

16,213

16,036

FW2639097.UP.FTS.B,

30.54%,

2/16/27

..

888

844

FW2632545.UP.FTS.B,

30.71%,

2/16/27

..

1,771

1,743

FW2644847.UP.FTS.B,

30.77%,

2/16/27

..

1,238

1,226

FW2641207.UP.FTS.B,

30.9%,

2/16/27

...

2,989

2,976

FW2642662.UP.FTS.B,

30.94%,

2/16/27

..

4,860

4,618

FW2641385.UP.FTS.B,

30.96%,

2/16/27

..

885

871

FW2643800.UP.FTS.B,

31.1%,

2/16/27

...

1,294

1,286

FW2638255.UP.FTS.B,

31.12%,

2/16/27

..

1,660

1,640

FW2641109.UP.FTS.B,

31.12%,

2/16/27

..

38,880

36,932

FW2610188.UP.FTS.B,

31.13%,

2/16/27

..

9,006

8,557

FW2641269.UP.FTS.B,

31.13%,

2/16/27

..

10,140

9,644

FW2644572.UP.FTS.B,

31.14%,

2/16/27

..

18,365

(103)

FW2642792.UP.FTS.B,

31.15%,

2/16/27

..

1,049

1,044

FW2639361.UP.FTS.B,

31.17%,

2/16/27

..

1,232

1,226

FW2638060.UP.FTS.B,

31.21%,

2/16/27

..

2,288

2,278

FW2643874.UP.FTS.B,

31.23%,

2/16/27

..

4,128

4,110

FW2638691.UP.FTS.B,

31.42%,

2/16/27

..

8,424

8,379

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2641390.UP.FTS.B,

31.53%,

2/16/27

..

$

15,906

$

(111)

FW2643082.UP.FTS.B,

31.96%,

2/16/27

..

1,614

(10)

FW2641809.UP.FTS.B,

33.83%,

2/16/27

..

1,864

1,855

L2645179.UP.FTS.B,

6.87%,

2/17/27

....

10,212

10,140

FW2645630.UP.FTS.B,

12.87%,

2/17/27

..

10,568

10,472

L2644980.UP.FTS.B,

12.95%,

2/17/27

....

1,585

1,570

L2645342.UP.FTS.B,

13.93%,

2/17/27

....

24,670

24,450

FW2645588.UP.FTS.B,

15.61%,

2/17/27

..

3,295

3,258

FW2645675.UP.FTS.B,

15.8%,

2/17/27

...

22,590

22,337

FW2645832.UP.FTS.B,

18.88%,

2/17/27

..

12,622

12,482

L2645010.UP.FTS.B,

20.52%,

2/17/27

....

9,318

9,196

FW2642053.UP.FTS.B,

21.61%,

2/17/27

..

3,567

3,552

L2645135.UP.FTS.B,

21.7%,

2/17/27

....

1,872

1,865

L2645558.UP.FTS.B,

22.43%,

2/17/27

....

2,461

2,428

L2645378.UP.FTS.B,

22.72%,

2/17/27

....

4,444

4,426

L2645573.UP.FTS.B,

22.94%,

2/17/27

....

1,742

1,638

FW2645101.UP.FTS.B,

24.46%,

2/17/27

..

4,116

293

L2644940.UP.FTS.B,

25.36%,

2/17/27

....

2,718

41

L2645131.UP.FTS.B,

25.45%,

2/17/27

....

1,190

1,184

L2645397.UP.FTS.B,

26.19%,

2/17/27

....

2,176

2,165

FW2645900.UP.FTS.B,

26.25%,

2/17/27

..

1,731

1,724

FW2645472.UP.FTS.B,

26.31%,

2/17/27

..

14,717

14,657

FW2645571.UP.FTS.B,

26.48%,

2/17/27

..

3,465

3,451

FW2645165.UP.FTS.B,

26.81%,

2/17/27

..

834

821

FW2644978.UP.FTS.B,

28.18%,

2/17/27

..

9,361

9,320

FW2644973.UP.FTS.B,

28.39%,

2/17/27

..

7,522

7,487

FW2645842.UP.FTS.B,

30.86%,

2/17/27

..

2,760

2,745

FW2645290.UP.FTS.B,

31.68%,

2/17/27

..

7,849

2,315

L1874015.UP.FTS.B,

15.07%,

3/18/27

....

13,944

13,800

L1874238.UP.FTS.B,

17.32%,

3/18/27

....

4,250

4,185

L1873745.UP.FTS.B,

17.46%,

3/18/27

....

8,376

7,857

FW1873439.UP.FTS.B,

25.66%,

3/18/27

..

1,336

1,289

L1874548.UP.FTS.B,

26.04%,

3/18/27

....

5,937

5,917

L1873838.UP.FTS.B,

26.46%,

3/18/27

....

3,806

3,768

FW1874126.UP.FTS.B,

27.94%,

3/18/27

..

4,042

3,999

FW1860558.UP.FTS.B,

29.76%,

3/18/27

..

5,260

788

FW1873137.UP.FTS.B,

30.77%,

3/18/27

..

1,543

1,493

FW1867639.UP.FTS.B,

31%,

3/18/27

....

2,977

207

L2005122.UP.FTS.B,

12.01%,

4/09/27

....

6,618

6,546

L2006131.UP.FTS.B,

12.37%,

4/09/27

....

16,494

8,718

L2008435.UP.FTS.B,

14.4%,

4/09/27

....

6,089

6,026

L2004642.UP.FTS.B,

15.31%,

4/09/27

....

9,199

2,343

FW1985810.UP.FTS.B,

16.01%,

4/09/27

..

8,452

8,326

L2005313.UP.FTS.B,

17.04%,

4/09/27

....

42,675

42,046

L2008942.UP.FTS.B,

21.92%,

4/09/27

....

2,967

2,945

L2006933.UP.FTS.B,

23.7%,

4/09/27

....

4,735

4,710

FW2009403.UP.FTS.B,

24.22%,

4/09/27

..

6,208

443

L2006560.UP.FTS.B,

24.67%,

4/09/27

....

6,108

6,075

L2009664.UP.FTS.B,

25.29%,

4/09/27

....

1,345

1,340

L2004832.UP.FTS.B,

25.91%,

4/09/27

....

3,580

967

L2004842.UP.FTS.B,

26.33%,

4/09/27

....

6,567

913

FW1997017.UP.FTS.B,

26.42%,

4/09/27

..

3,215

459

FW2009180.UP.FTS.B,

27.72%,

4/09/27

..

15,343

4,391

FW2009830.UP.FTS.B,

28.06%,

4/09/27

..

24,797

(3,600)

FW2008777.UP.FTS.B,

28.16%,

4/09/27

..

2,713

2,679

FW2009466.UP.FTS.B,

29.96%,

4/09/27

..

1,612

1,607

FW2008914.UP.FTS.B,

31.18%,

4/09/27

..

3,256

924

L2079809.UP.FTS.B,

11.68%,

4/19/27

....

5,959

5,596

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

138

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2076923.UP.FTS.B,

15.84%,

4/19/27

....

$

15,662

$

15,515

L2080104.UP.FTS.B,

16.97%,

4/19/27

....

42,671

40,069

L2077275.UP.FTS.B,

17.44%,

4/19/27

....

5,946

5,864

L2079161.UP.FTS.B,

17.64%,

4/19/27

....

4,922

4,868

L2080091.UP.FTS.B,

20.35%,

4/19/27

....

2,203

2,176

L2075161.UP.FTS.B,

20.64%,

4/19/27

....

29,918

29,517

FW2077930.UP.FTS.B,

20.81%,

4/19/27

..

9,175

(63)

L2076557.UP.FTS.B,

21.86%,

4/19/27

....

22,111

21,004

L2071630.UP.FTS.B,

22.65%,

4/19/27

....

6,017

5,973

L2078089.UP.FTS.B,

22.76%,

4/19/27

....

16,624

16,427

FW2077484.UP.FTS.B,

23.29%,

4/19/27

..

12,693

12,622

L2073677.UP.FTS.B,

24.99%,

4/19/27

....

13,641

13,515

L2078594.UP.FTS.B,

25.45%,

4/19/27

....

20,248

2,986

L2078465.UP.FTS.B,

25.48%,

4/19/27

....

4,403

659

FW2079109.UP.FTS.B,

25.53%,

4/19/27

..

5,319

806

L2075052.UP.FTS.B,

25.99%,

4/19/27

....

4,400

4,183

FW2075118.UP.FTS.B,

26.16%,

4/19/27

..

2,272

665

L2077173.UP.FTS.B,

26.59%,

4/19/27

....

10,342

10,289

FW2076494.UP.FTS.B,

27.89%,

4/19/27

..

5,288

5,274

FW2079282.UP.FTS.B,

30.4%,

4/19/27

...

1,085

1,079

FW2077993.UP.FTS.B,

30.84%,

4/19/27

..

2,463

2,344

FW2195774.UP.FTS.B,

11.53%,

5/07/27

..

26,176

25,853

L2198086.UP.FTS.B,

13.28%,

5/07/27

....

8,727

2,197

L2196990.UP.FTS.B,

14.16%,

5/07/27

....

14,196

7,421

L2196542.UP.FTS.B,

14.21%,

5/07/27

....

6,182

6,114

L2197143.UP.FTS.B,

15.39%,

5/07/27

....

8,783

4,850

L2197234.UP.FTS.B,

16.24%,

5/07/27

....

17,012

16,821

L2199844.UP.FTS.B,

16.94%,

5/07/27

....

8,749

8,644

L2195638.UP.FTS.B,

17.49%,

5/07/27

....

8,754

8,604

L2200243.UP.FTS.B,

17.54%,

5/07/27

....

883

869

L2196814.UP.FTS.B,

17.8%,

5/07/27

....

14,195

3,614

L2200120.UP.FTS.B,

19.52%,

5/07/27

....

9,697

5,514

FW2197884.UP.FTS.B,

20.55%,

5/07/27

..

8,708

(18)

L2197644.UP.FTS.B,

20.86%,

5/07/27

....

1,933

497

L2196726.UP.FTS.B,

21.07%,

5/07/27

....

20,267

19,964

L2187878.UP.FTS.B,

21.23%,

5/07/27

....

48,428

3,449

L2197009.UP.FTS.B,

22.01%,

5/07/27

....

5,747

5,715

L2197891.UP.FTS.B,

23.8%,

5/07/27

....

3,474

2,043

FW2197402.UP.FTS.B,

23.87%,

5/07/27

..

2,801

2,780

FW2199514.UP.FTS.B,

25.91%,

5/07/27

..

2,353

1,383

FW2126302.UP.FTS.B,

28.84%,

5/07/27

..

15,216

8,976

FW2197220.UP.FTS.B,

29.81%,

5/07/27

..

2,135

2,108

FW2199905.UP.FTS.B,

30.79%,

5/07/27

..

1,673

235

FW2197058.UP.FTS.B,

31%,

5/07/27

....

4,328

(143)

FW2199111.UP.FTS.B,

31.05%,

5/07/27

..

1,668

1,650

L2205436.UP.FTS.B,

16.02%,

5/08/27

....

23,585

23,199

L2200530.UP.FTS.B,

18.44%,

5/08/27

....

7,792

248

L2194438.UP.FTS.B,

19.48%,

5/08/27

....

5,751

802

L2203740.UP.FTS.B,

19.62%,

5/08/27

....

2,109

2,070

L2203837.UP.FTS.B,

20.89%,

5/08/27

....

10,754

10,632

L2202018.UP.FTS.B,

21.02%,

5/08/27

....

6,766

1,889

L2201398.UP.FTS.B,

22.49%,

5/08/27

....

10,231

10,058

L2169853.UP.FTS.B,

22.52%,

5/08/27

....

4,518

4,474

L2201738.UP.FTS.B,

22.82%,

5/08/27

....

14,565

(821)

FW2205649.UP.FTS.B,

23.84%,

5/08/27

..

3,408

3,373

L2205964.UP.FTS.B,

24.11%,

5/08/27

....

2,503

(10)

L2204697.UP.FTS.B,

24.89%,

5/08/27

....

18,118

10,679

FW2201944.UP.FTS.B,

25.52%,

5/08/27

..

4,672

4,610

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2204916.UP.FTS.B,

25.63%,

5/08/27

....

$

9,344

$

9,287

L2206165.UP.FTS.B,

26.19%,

5/08/27

....

7,401

7,364

FW2201816.UP.FTS.B,

26.65%,

5/08/27

..

4,264

2,522

FW2206860.UP.FTS.B,

28.2%,

5/08/27

...

3,085

3,062

FW2199020.UP.FTS.B,

29.97%,

5/08/27

..

8,984

8,914

FW2199475.UP.FTS.B,

30.86%,

5/08/27

..

3,946

1,143

FW2200744.UP.FTS.B,

30.97%,

5/08/27

..

4,787

339

FW2202450.UP.FTS.B,

31.05%,

5/08/27

..

2,644

2,624

FW2201216.UP.FTS.B,

31.06%,

5/08/27

..

2,395

1,429

FW2200444.UP.FTS.B,

31.21%,

5/08/27

..

3,538

3,512

FW2203796.UP.FTS.B,

31.21%,

5/08/27

..

6,033

420

L2411745.UP.FTS.B,

7.47%,

6/11/27

.....

5,843

5,788

L2412468.UP.FTS.B,

7.67%,

6/11/27

.....

38,987

38,646

L2412901.UP.FTS.B,

8.44%,

6/11/27

.....

12,855

6,527

FW2411320.UP.FTS.B,

10.63%,

6/11/27

..

4,185

565

L2413627.UP.FTS.B,

12.33%,

6/11/27

....

27,497

14,428

L2412970.UP.FTS.B,

14.15%,

6/11/27

....

26,093

25,789

FW2407061.UP.FTS.B,

16.61%,

6/11/27

..

14,338

14,118

FW2407472.UP.FTS.B,

18.08%,

6/11/27

..

22,378

22,120

L2412421.UP.FTS.B,

21.23%,

6/11/27

....

2,408

685

FW2406392.UP.FTS.B,

23.41%,

6/11/27

..

8,278

8,208

L2411082.UP.FTS.B,

23.57%,

6/11/27

....

10,228

6,038

L2413373.UP.FTS.B,

23.72%,

6/11/27

....

27,303

27,106

FW2407476.UP.FTS.B,

24.28%,

6/11/27

..

4,376

4,349

FW2409812.UP.FTS.B,

24.81%,

6/11/27

..

2,679

2,647

L2412285.UP.FTS.B,

25.08%,

6/11/27

....

11,330

11,225

L2406611.UP.FTS.B,

25.32%,

6/11/27

....

20,952

12,374

FW2410079.UP.FTS.B,

25.81%,

6/11/27

..

2,810

2,791

FW2412377.UP.FTS.B,

26.3%,

6/11/27

...

5,466

3,234

FW2411228.UP.FTS.B,

26.37%,

6/11/27

..

3,637

3,596

FW2409497.UP.FTS.B,

26.87%,

6/11/27

..

1,838

1,084

L2407955.UP.FTS.B,

27%,

6/11/27

......

7,657

7,602

FW2412851.UP.FTS.B,

28.09%,

6/11/27

..

4,423

2,601

FW2410113.UP.FTS.B,

29.34%,

6/11/27

..

2,989

2,963

FW2413380.UP.FTS.B,

30.45%,

6/11/27

..

3,783

268

FW2412683.UP.FTS.B,

30.78%,

6/11/27

..

38,075

10,936

FW2410302.UP.FTS.B,

30.97%,

6/11/27

..

1,730

1,715

FW2412394.UP.FTS.B,

31.05%,

6/11/27

..

1,931

1,915

FW2408288.UP.FTS.B,

31.13%,

6/11/27

..

2,070

589

FW2409027.UP.FTS.B,

31.16%,

6/11/27

..

1,442

1,431

FW2407226.UP.FTS.B,

31.18%,

6/11/27

..

2,977

2,946

FW2412681.UP.FTS.B,

31.21%,

6/11/27

..

1,679

235

FW2411177.UP.FTS.B,

31.23%,

6/11/27

..

2,908

2,868

FW2408747.UP.FTS.B,

31.68%,

6/11/27

..

11,206

11,109

FW2418007.UP.FTS.B,

10.28%,

6/12/27

..

2,132

2,109

FW2418154.UP.FTS.B,

10.71%,

6/12/27

..

2,892

212

L2415490.UP.FTS.B,

12.71%,

6/12/27

....

13,650

13,504

L2418555.UP.FTS.B,

15.62%,

6/12/27

....

14,115

13,967

L2419121.UP.FTS.B,

17.04%,

6/12/27

....

6,353

6,267

FW2417755.UP.FTS.B,

18.05%,

6/12/27

..

15,200

14,993

L2415568.UP.FTS.B,

19.57%,

6/12/27

....

3,224

3,050

L2418697.UP.FTS.B,

22.86%,

6/12/27

....

3,955

3,893

L2417908.UP.FTS.B,

23.41%,

6/12/27

....

3,752

271

L2417411.UP.FTS.B,

24%,

6/12/27

......

9,021

8,945

L2418124.UP.FTS.B,

25.47%,

6/12/27

....

21,594

3,182

FW2420083.UP.FTS.B,

27.39%,

6/12/27

..

46,536

46,297

L2417119.UP.FTS.B,

28.65%,

6/12/27

....

8,692

1,262

FW2417889.UP.FTS.B,

30.34%,

6/12/27

..

2,683

(266)

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

139

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

FW2412961.UP.FTS.B,

30.81%,

6/12/27

..

$

1,726

$

251

FW2418092.UP.FTS.B,

30.98%,

6/12/27

..

1,334

1,326

FW2420156.UP.FTS.B,

31.98%,

6/12/27

..

2,616

2,598

FW2416032.UP.FTS.B,

32.75%,

6/12/27

..

17,680

17,549

L1708948.UP.FTS.B,

7.47%,

7/14/27

....

6,761

6,701

L1708685.UP.FTS.B,

16.63%,

7/14/27

....

2,381

2,352

FW1706254.UP.FTS.B,

26.93%,

7/14/27

..

27,799

4,181

FW2637564.UP.FTS.B,

8.54%,

7/15/27

...

12,323

12,219

L2633537.UP.FTS.B,

17.39%,

7/15/27

....

8,623

8,492

FW2634470.UP.FTS.B,

18.69%,

7/15/27

..

4,569

4,284

L2633453.UP.FTS.B,

19.72%,

7/15/27

....

13,572

12,722

L2636132.UP.FTS.B,

21.91%,

7/15/27

....

9,021

8,919

FW2632621.UP.FTS.B,

22.95%,

7/15/27

..

4,922

4,891

L2633167.UP.FTS.B,

24.54%,

7/15/27

....

4,944

4,860

L2631727.UP.FTS.B,

25.43%,

7/15/27

....

12,858

3,661

L2605748.UP.FTS.B,

25.45%,

7/15/27

....

1,613

1,596

L2631820.UP.FTS.B,

25.45%,

7/15/27

....

8,521

611

L2638227.UP.FTS.B,

10.2%,

7/16/27

....

13,171

12,366

FW2639288.UP.FTS.B,

14.3%,

7/16/27

...

13,789

13,643

FW2644039.UP.FTS.B,

16.97%,

7/16/27

..

6,697

6,288

L2639647.UP.FTS.B,

17.04%,

7/16/27

....

8,612

8,489

L2642906.UP.FTS.B,

18.21%,

7/16/27

....

45,625

797

FW2639528.UP.FTS.B,

18.78%,

7/16/27

..

38,672

36,335

L2640760.UP.FTS.B,

19.65%,

7/16/27

....

4,272

4,011

L2639355.UP.FTS.B,

21.49%,

7/16/27

....

3,254

3,203

L2641233.UP.FTS.B,

22.03%,

7/16/27

....

15,461

14,648

L2640849.UP.FTS.B,

22.86%,

7/16/27

....

3,644

261

L2640906.UP.FTS.B,

23.61%,

7/16/27

....

5,685

1,637

L2643831.UP.FTS.B,

24.23%,

7/16/27

....

4,278

1,248

L2643306.UP.FTS.B,

25.49%,

7/16/27

....

17,537

17,412

FW2644628.UP.FTS.B,

30.88%,

7/16/27

..

1,341

1,333

FW2643274.UP.FTS.B,

30.91%,

7/16/27

..

17,339

(1,925)

L2645113.UP.FTS.B,

10.21%,

7/17/27

....

6,775

6,704

L2645909.UP.FTS.B,

19.06%,

7/17/27

....

4,370

4,309

L2642277.UP.FTS.B,

22.82%,

7/17/27

....

5,726

5,636

L2645504.UP.FTS.B,

26.01%,

7/17/27

....

10,207

9,690

FW2645599.UP.FTS.B,

27.57%,

7/17/27

..

22,777

21,534

FW1873026.UP.FTS.B,

30.69%,

8/18/27

..

543

535

L2008894.UP.FTS.B,

11.02%,

9/09/27

....

4,879

4,814

L2006623.UP.FTS.B,

15.18%,

9/09/27

....

9,088

8,964

L2005978.UP.FTS.B,

17.84%,

9/09/27

....

3,363

3,304

FW2007802.UP.FTS.B,

23.93%,

9/09/27

..

30,543

30,065

FW2199121.UP.FTS.B,

15.58%,

10/07/27

.

16,972

16,760

L2199767.UP.FTS.B,

25.65%,

10/07/27

...

5,165

5,104

FW2199624.UP.FTS.B,

25.75%,

10/07/27

.

8,490

8,335

FW2195253.UP.FTS.B,

27.11%,

10/07/27

.

5,859

5,758

L2202846.UP.FTS.B,

8.79%,

10/08/27

....

16,304

16,156

L2206074.UP.FTS.B,

15.01%,

10/08/27

...

6,383

6,314

FW2205781.UP.FTS.B,

22.27%,

10/08/27

.

42,161

41,424

FW2202576.UP.FTS.B,

22.89%,

10/08/27

.

7,058

6,970

L2205138.UP.FTS.B,

24.86%,

10/08/27

...

3,154

3,101

L2206615.UP.FTS.B,

25.87%,

10/08/27

...

13,151

7,784

FW2202975.UP.FTS.B,

30.2%,

10/08/27

..

3,202

3,157

L2407212.UP.FTS.B,

7.8%,

11/11/27

.....

16,266

2,151

FW2411932.UP.FTS.B,

22.38%,

11/11/27

.

4,816

4,763

L2413593.UP.FTS.B,

23.06%,

11/11/27

...

8,012

7,886

L2414318.UP.FTS.B,

8.81%,

11/12/27

....

13,504

13,392

FW2414721.UP.FTS.B,

28.43%,

11/12/27

.

5,305

5,239

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2402573.UP.FTS.B,

32.37%,

11/12/27

.

$

10,294

$

10,150

L2636525.UP.FTS.B,

16.23%,

12/15/27

...

12,856

12,053

FW2634082.UP.FTS.B,

24.01%,

12/15/27

.

5,353

5,275

FW2632167.UP.FTS.B,

30.21%,

12/15/27

.

917

135

L2644100.UP.FTS.B,

5.16%,

12/16/27

....

4,760

4,728

FW2642156.UP.FTS.B,

26.37%,

12/16/27

.

2,538

2,508

FW2639053.UP.FTS.B,

29.06%,

12/16/27

.

3,143

68

FW2643411.UP.FTS.B,

29.58%,

12/16/27

.

5,109

4,843

L1710242.UP.FTS.B,

16.42%,

9/14/28

....

2,563

2,551

L2008544.UP.FTS.B,

14.54%,

11/09/28

...

4,349

4,328

L1973640.UP.FTS.B,

20.1%,

11/09/28

....

9,276

9,232

L2009558.UP.FTS.B,

26.34%,

11/09/28

...

16,716

16,665

L2195991.UP.FTS.B,

26.01%,

12/07/28

...

8,302

8,259

L2197007.UP.FTS.B,

26.07%,

12/07/28

...

2,389

2,369

L2204377.UP.FTS.B,

25.94%,

12/08/28

...

4,042

4,014

L2635238.UP.FTS.B,

13.81%,

2/15/29

....

13,369

13,292

L2631621.UP.FTS.B,

15.64%,

2/15/29

....

19,369

19,249

L2633434.UP.FTS.B,

17.36%,

2/15/29

....

4,158

4,134

L2633742.UP.FTS.B,

25.95%,

2/15/29

....

2,973

2,953

L2634808.UP.FTS.B,

26.03%,

2/15/29

....

1,858

1,841

L2635718.UP.FTS.B,

26.25%,

2/15/29

....

2,380

17

L2633894.UP.FTS.B,

26.42%,

2/15/29

....

4,340

4,296

L2635317.UP.FTS.B,

27.28%,

2/15/29

....

2,144

2,127

L2637431.UP.FTS.B,

26.27%,

7/15/29

....

6,579

6,515

15,216,114

Total

Marketplace

Loans

(Cost

$60,122,469)

....

$54,177,465

Franklin

Strategic

Series

Schedule

of

Investments,

April

30,

2023

Franklin

Strategic

Income

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

140

At

April

30

,

2023,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1

(

d

). 

At

April

30,

2023,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(d). 

At

April

30

,

2023,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d)

. 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

30-day

Federal

Funds

.........................

Short

1,037

$

412,218,871

12/29/23

$

1,398,105

U.S.

Treasury

10

Year

Notes

....................

Long

527

60,712,047

6/21/23

1,781,994

U.S.

Treasury

10

Year

Ultra

Notes

................

Long

463

56,232,797

6/21/23

1,938,155

U.S.

Treasury

2

Year

Notes

.....................

Long

75

15,462,305

6/30/23

(13,572)

U.S.

Treasury

5

Year

Notes

.....................

Long

130

14,266,484

6/30/23

305,538

U.S.

Treasury

Ultra

Bonds

......................

Long

166

23,473,438

6/21/23

967,208

Total

Futures

Contracts

......................................................................

$6,377,428

*

As

of

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Brazilian

Real

......

JPHQ

Sell

6,800,000

1,311,779

5/08/23

$

—

$

(49,749)

Columbian

Peso

....

JPHQ

Sell

54,500,000,000

10,985,689

5/30/23

—

(555,232)

Euro

.............

JPHQ

Sell

17,606,000

19,408,252

6/16/23

—

(45,673)

Euro

.............

JPHQ

Sell

7,150,000

7,611,393

7/10/23

—

(299,066)

Japanese

Yen

......

JPHQ

Buy

1,900,000,000

14,625,398

7/10/23

—

(528,815)

Total

Forward

Exchange

Contracts

...................................................

$

—

$(1,478,535)

Net

unrealized

appreciation

(depreciation)

............................................

$(1,478,535)

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

Credit

Default

Swap

Contracts

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Traded

Index

CDX.NA.HY.39

.

5.00%

Quarterly

12/20/27

19,000,000

$

481,471

$

(277,465)

$

758,936

Non-

Investment

Grade

CDX.NA.HY.40

.

5.00%

Quarterly

6/20/28

4,600,000

90,714

28,444

62,270

Non-

Investment

Grade

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

141

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

(a)

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

(b)

Centrally

Cleared

Swap

Contracts

(continued)

Contracts

to

Sell

Protection

(c)(d)

(continued)

Traded

Index

(continued)

Total

Centrally

Cleared

Swap

Contracts

.....................................

$572,185

$(249,021)

$821,206

OTC

Swap

Contracts

Contracts

to

Sell

Protection

(c)(d)

Single

Name

Carnival

Corp.

..

1.00%

Quarterly

CITI

6/20/27

17,820,000

$

(4,739,884)

$

(2,672,907)

$

(2,066,977)

B-

Traded

Index

(e)

BNP

Paribas

Bespoke

Haverhill

Index,

Mezzanine

Tranche

5-10%

4.10%

Quarterly

BNDP

12/20/23

3,150,000

EUR

39,756

—

39,756

Non-

Investment

Grade

CDX.NA.HY.33

.

5.00%

Quarterly

CITI

12/20/24

15,800,000

(234,933)

(308,931)

73,998

Non-

Investment

Grade

(e)

Citibank

Bespoke

Kenai

Index,

Equity

Tranche

0-5%

—%

Quarterly

CITI

12/20/23

22,100,000

(5,941,831)

(2,165,692)

(3,776,139)

Non-

Investment

Grade

(e)

Citibank

Bespoke

Rotorua

Index,

Mezzanine

Tranche

5-10%

3.60%

Quarterly

CITI

12/20/23

5,300,000

41,113

—

41,113

Non-

Investment

Grade

MCDX.

NA.MAIN.31

.

1.00%

Quarterly

CITI

12/20/23

23,060,000

101,649

29,802

71,847

Investment

Grade

Total

OTC

Swap

Contracts

..............................................

$(10,734,130)

$(5,117,728)

$(5,616,402)

Total

Credit

Default

Swap

Contracts

....................................

$(10,161,945)

$

(5,366,749)

$(4,795,196)

(a)

In

U.S.

dollars

unless

otherwise

indicated.

For

contracts

to

sell

protection,

the

notional

amount

is

equal

to

the

maximum

potential

amount

of

the

future

payments

and

no

recourse

provisions

have

been

entered

into

in

association

with

the

contracts.

(b)

Based

on

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

on

mapping

into

equivalent

ratings

from

external

vendors.

(c)

Performance

triggers

for

settlement

of

contract

include

default,

bankruptcy

or

restructuring

for

single

name

swaps,

and

failure

to

pay

or

bankruptcy

of

the

underlying

securities

for

traded

index

swaps.

(d)

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

(e)

Represents

a

custom

index

comprised

of

a

basket

of

underlying

instruments.

Franklin

Strategic

Series

Schedule

of

Investments

Franklin

Strategic

Income

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

142

At

April

30,

2023,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Note

1(d). 

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Short

(a)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

6/20/23

14,750,000

$

(887,204)

Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

...........................

1-day

SOFR

Quarterly

MSCO

6/20/23

14,750,000

(789,674)

Total

Return

Swap

Contracts

...................................................................

$(1,676,878)

*

In

U.S.

dollars

unless

otherwise

indicated.

(a)

The

Fund

receives

the

total

return

on

the

underlying

instrument

and

pays

a

variable

financing

rate.

See

Note

9

regarding

other

derivative

information.

See

Abbreviations

on

page

167.

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

April

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

143

Franklin

Strategic

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,707,677,273

Cost

-

Controlled

affiliates

(Note

3

f

and

10

)

......................................................

178,408,378

Cost

-

Non-controlled

affiliates

(Note

3

f

and

10

)

...................................................

37,364,960

Cost

-

Unaffiliated

repurchase

agreements

......................................................

177,866,902

Value

-

Unaffiliated

issuers

..................................................................

$2,485,096,254

Value

-

Controlled

affiliates

(Note

3

f

and

10

)

.....................................................

152,681,193

Value

-

Non-controlled

affiliates

(Note

3

f

and

10

)

..................................................

37,364,960

Value

-

Unaffiliated

repurchase

agreements

......................................................

177,866,902

Cash

....................................................................................

4,540,192

Receivables:

Investment

securities

sold

...................................................................

667,544

Capital

shares

sold

........................................................................

1,486,546

Dividends

and

interest

.....................................................................

24,853,285

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

14,740,000

Futures

contracts

........................................................................

4,539,086

Centrally

cleared

swap

contracts

............................................................

1,010,535

Variation

margin

on

futures

contracts

...........................................................

866,444

Variation

margin

on

centrally

cleared

swap

contracts

...............................................

59,226

OTC

swap

contracts

(upfront

payments

$230,998)

..................................................

29,802

Unrealized

appreciation

on

OTC

swap

contracts

....................................................

226,714

Deferred

tax

benefit

.........................................................................

287,971

Total

assets

..........................................................................

2,906,316,654

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

14,643,076

Capital

shares

redeemed

...................................................................

4,055,689

Management

fees

.........................................................................

986,859

Distribution

fees

..........................................................................

542,030

Transfer

agent

fees

........................................................................

1,043,740

Trustees'

fees

and

expenses

.................................................................

19

OTC

swap

contracts

(upfront

receipts

$10,697,350)

.................................................

5,147,530

Unrealized

depreciation

on

OTC

swap

contracts

....................................................

7,519,994

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

1,478,535

Accrued

expenses

and

other

liabilities

...........................................................

457,905

Total

liabilities

.........................................................................

35,875,377

Net

assets,

at

value

.................................................................

$2,870,441,277

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$4,042,030,190

Total

distributable

earnings

(losses)

.............................................................

(1,171,588,913)

Net

assets,

at

value

.................................................................

$2,870,441,277

Franklin

Strategic

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

April

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

144

Franklin

Strategic

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,285,374,107

Shares

outstanding

........................................................................

277,767,721

Net

asset

value

per

share

a

..................................................................

$8.23

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.55

Class

C:

Net

assets,

at

value

.......................................................................

$100,036,669

Shares

outstanding

........................................................................

12,150,347

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$8.23

Class

R:

Net

assets,

at

value

.......................................................................

$40,939,409

Shares

outstanding

........................................................................

4,999,004

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.19

Class

R6:

Net

assets,

at

value

.......................................................................

$132,949,524

Shares

outstanding

........................................................................

16,130,680

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.24

Advisor

Class:

Net

assets,

at

value

.......................................................................

$311,141,568

Shares

outstanding

........................................................................

37,763,507

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.24

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Strategic

Series

Financial

Statements

Statement

of

Operations

for

the

year

ended

April

30,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

145

Franklin

Strategic

Income

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$127,500

Controlled

affiliates

(Note

3

f

and

10

)

...........................................................

20,462,928

Non-controlled

affiliates

(Note

3

f

and

10

)

........................................................

1,020,928

Interest:

(net

of

foreign

taxes

of

$159,052)

Unaffiliated

issuers

........................................................................

136,118,154

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

6,203

Non-controlled

affiliates

(Note

3

f

)

.............................................................

1,120

Total

investment

income

...................................................................

157,736,833

Expenses:

Management

fees

(Note

3

a

)

...................................................................

13,834,674

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

5,942,197

    Class

C

................................................................................

840,848

    Class

R

................................................................................

216,830

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

3,829,220

    Class

C

................................................................................

208,598

    Class

R

................................................................................

69,873

    Class

R6

...............................................................................

60,990

    Advisor

Class

............................................................................

553,869

Reports

to

shareholders

fees

..................................................................

216,841

Registration

and

filing

fees

....................................................................

108,114

Professional

fees

...........................................................................

125,741

Trustees'

fees

and

expenses

..................................................................

17,442

Marketplace

lending

fees

(Note

1

g

)

.............................................................

1,497,245

Other

....................................................................................

257,065

Total

expenses

.........................................................................

27,779,547

Expense

reductions

(Note

4

)

...............................................................

(4,292)

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

..............................................

(1,705,812)

Net

expenses

.........................................................................

26,069,443

Net

investment

income

................................................................

131,667,390

Franklin

Strategic

Series

Financial

Statements

Statement

of

Operations

(continued)

for

the

year

ended

April

30,

2023

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

146

Franklin

Strategic

Income

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(192,667,836)

Controlled

affiliates

(Note

3f

and

10)

..........................................................

(44,843,620)

Foreign

currency

transactions

................................................................

(25,047)

Forward

exchange

contracts

.................................................................

2,127,432

Futures

contracts

.........................................................................

(7,184,032)

TBA

sale

commitments

.....................................................................

53,799

Swap

contracts

...........................................................................

6,700,700

Net

realized

gain

(loss)

..................................................................

(235,838,604)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

81,694,104

Controlled

affiliates

(Note

3f

and

10)

..........................................................

28,050,002

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

8,262

Forward

exchange

contracts

.................................................................

(1,703,360)

Futures

contracts

.........................................................................

7,579,569

Swap

contracts

...........................................................................

(3,236,410)

Change

in

deferred

tax

benefit

...............................................................

(693,084)

Change

in

deferred

taxes

on

unrealized

appreciation

...............................................

31,461

Net

change

in

unrealized

appreciation

(depreciation)

............................................

111,730,544

Net

realized

and

unrealized

gain

(loss)

............................................................

(124,108,060)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$7,559,330

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

147

Franklin

Strategic

Income

Fund

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$131,667,390

$117,877,083

Net

realized

gain

(loss)

.................................................

(235,838,604)

(74,161,229)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

111,730,544

(261,970,566)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

7,559,330

(218,254,712)

Distributions

to

shareholders:

Class

A

.............................................................

(106,771,149)

(104,476,136)

Class

C

.............................................................

(5,088,448)

(7,926,927)

Class

R

.............................................................

(1,845,783)

(1,847,687)

Class

R6

............................................................

(6,146,385)

(5,646,868)

Advisor

Class

........................................................

(16,190,187)

(16,976,765)

Total

distributions

to

shareholders

..........................................

(136,041,952)

(136,874,383)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(224,634,715)

24,319,901

Class

C

.............................................................

(64,606,419)

(198,078,184)

Class

R

.............................................................

(5,595,004)

(5,859,698)

Class

R6

............................................................

1,832,985

17,687,072

Advisor

Class

........................................................

(64,076,114)

(31,320,044)

Total

capital

share

transactions

............................................

(357,079,267)

(193,250,953)

Net

increase

(decrease)

in

net

assets

...................................

(485,561,889)

(548,380,048)

Net

assets:

Beginning

of

year

.......................................................

3,356,003,166

3,904,383,214

End

of

year

...........................................................

$2,870,441,277

$3,356,003,166

Franklin

Strategic

Series

Notes

to

Financial

Statements

Franklin

Strategic

Income

Fund

148

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of ten

separate

funds.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

Franklin

Strategic

Income

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers five classes

of

shares: Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in 

open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

Franklin

Strategic

Series

Notes

to

Financial

Statements

149

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

April

30,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

150

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

year

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

April

28,

2023.

d.

Derivative

Financial

Instruments

The

Fund

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the Statement

of

Operations. 

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Joint

Repurchase

Agreement

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

151

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

The

Fund

entered

into

credit

default

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk.

A

credit

default

swap

is

an

agreement

between

the

Fund

and

a

counterparty

whereby

the

buyer

of

the

contract

receives

credit

protection

and

the

seller

of

the

contract

guarantees

the

credit

worthiness

of

a

referenced

debt

obligation.

These

agreements

may

be

privately

negotiated

in

the

over-the-

counter

market

(OTC

credit

default

swaps)

or

may

be

executed

in

a

multilateral

trade

facility

platform,

such

as

a

registered

exchange

(centrally

cleared

credit

default

swaps).

The

underlying

referenced

debt

obligation

may

be

a

single

issuer

of

corporate

or

sovereign

debt,

a

credit

index,

a

basket

of

issuers

or

indices,

or

a

tranche

of

a

credit

index

or

basket

of

issuers

or

indices.

In

the

event

of

a

default

of

the

underlying

referenced

debt

obligation,

the

buyer

is

entitled

to

receive

the

notional

amount

of

the

credit

default

swap

contract

from

the

seller

in

exchange

for

the

referenced

debt

obligation,

a

net

settlement

amount

equal

to

the

notional

amount

of

the

credit

default

swap

less

the

recovery

value

of

the

referenced

debt

obligation,

or

other

agreed

upon

amount.

For

centrally

cleared

credit

default

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

the

buyer

pays

the

seller

a

periodic

stream

of

payments,

provided

that

no

event

of

default

has

occurred.

Such

periodic

payments

are

accrued

daily

as

an

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

Upfront

payments

and

receipts

are

reflected

in

the Statement

of

Assets

and

Liabilities

and

represent

compensating

factors

between

stated

terms

of

the

credit

default

swap

agreement

and

prevailing

market

conditions

(credit

spreads

and

other

relevant

factors).

These

upfront

payments

and

receipts

are

amortized

over

the

term

of

the

contract

as

a

realized

gain

or

loss

in

the Statement

of

Operations.

The

Fund

entered

into

OTC

total

return

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk

of

an

underlying

instrument

such

as

a

stock,

bond,

index

or

basket

of

securities

or

indices.

A

total

return

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

a

return

linked

to

an

underlying

instrument

for

a

floating

or

fixed

rate

payment,

both

based

upon

a

notional

amount.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

or

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

recognized

as

realized

gain

or

loss.

The

Fund

purchased

or

wrote

OTC

option

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk.

An

option

is

a

contract

entitling

the

holder

to

purchase

or

sell

a

specific

amount

of

shares

or

units

of

an

asset

or

notional

amount

of

a

swap

(swaption),

at

a

specified

price.

When

an

option

is

purchased

or

written,

an

amount

equal

to

the

premium

paid

or

received

is

recorded

as

an

asset

or

liability,

respectively.

Upon

exercise

of

an

option,

the

acquisition

cost

or

sales

proceeds

of

the

underlying

investment

is

adjusted

by

any

premium

received

or

paid.

Upon

expiration

of

an

option,

any

premium

received

or

paid

is

recorded

as

a

realized

gain

or

loss.

Upon

closing

an

option

other

than

through

expiration

or

exercise,

the

difference

between

the

premium

received

or

paid

and

the

cost

to

close

the

position

is

recorded

as

a

realized

gain

or

loss.

At

April

30,

2023,

the

Fund

had

no

OTC

option

contracts. 

See

Note

9

regarding

other

derivative

information.

e.

Loan

Participation

Notes

The

Fund

invests

in

loan

participation

notes

(Participations).

Participations

are

loans

originally

issued

to

a

borrower

by

one

or

more

financial

institutions

(the

Lender)

and

subsequently

sold

to

other

investors,

such

as

the Fund.

Participations

typically

result

in

the

Fund

having

a

contractual

relationship

only

with

the

Lender

and

not

with

the

borrower.

The

Fund

has

the

right

to

receive

from

the

Lender

any

payments

of

principal,

interest

and

fees

which

the

Lender

received

from

the

borrower.

The

Fund

generally

has

no

rights

to

either

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement

or

to

any

collateral

relating

to

the

original

loan.

As

a

result,

the Fund

assumes

the

credit

risk

of

both

the

borrower

and

the

Lender

that

is

selling

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Derivative

Financial

Instruments

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

152

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Participation.

The

Participations

may

also

involve

interest

rate

risk

and

liquidity

risk,

including

the

potential

default

or

insolvency

of

the

borrower

and/or

the

Lender.

f.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement

in

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

At

April

30,

2023,

the

Fund

had

no

securities

on

loan.

g.

Marketplace

Lending

The

Fund

invests

in

loans

obtained

through

marketplace

lending.

Marketplace

lending,

sometimes

referred

to

as

peer-to-peer

lending,

is

a

method

of

financing

in

which

a

platform

facilitates

the

borrowing

and

lending

of

money.

It

is

considered

an

alternative

to

more

traditional

forms

of

debt

financing.

Prospective

borrowers

are

required

to

provide

certain

financial

information

to

the

platform,

including,

but

not

limited

to,

the

intended

purpose

of

the

loan,

income,

employment

information,

credit

score,

debt-to-income

ratio,

credit

history

(including

defaults

and

delinquencies)

and

home

ownership

status.

Based

on

this

and

other

information,

the

platform

assigns

its

own

credit

rating

to

the

borrower

and

sets

the

interest

rate

for

the

requested

loan.

The

platform

then

posts

the

borrowing

requests

online,

giving

investors

the

opportunity

to

purchase

the

loans

based

on

factors

such

as

the

interest

rates

and

expected

yields

of

the

loans,

the

borrower

background

data,

and

the

credit

rating

assigned

by

the

platform.

When

the

Fund

invests

in

these

loans,

it

usually

purchases

all

rights,

title

and

interest

in

the

loans

pursuant

to

a

loan

purchase

agreement

directly

from

the

platform.

The

platform

or

a

third-party

servicer

typically

continues

to

service

the

loans,

collecting

payments

and

distributing

them

to

the

Fund,

less

any

servicing

fees

assessed.

The

servicer

is

typically

responsible

for

taking

actions

against

a

borrower

in

the

event

of

a

default

on

the

loan.

Servicing

fees,

along

with

other

administration

fees,

are

included

in

marketplace

lending

fees

in

the

Statement

of

Operations.

The Fund,

as

an

investor

in

a

loan,

would

be

entitled

to

receive

payment

only

from

the

borrower

and

would

not

be

able

to

recover

any

deficiency

from

the

platform,

except

under

very

narrow

circumstances.

The

loans

in

which

the

Fund

may

invest

are

unsecured.

h.

Mortgage

Dollar

Rolls

The

Fund

enters

into

mortgage

dollar

rolls,

typically

on

a

TBA

basis.

Mortgage

dollar

rolls

are

agreements

between

the

Fund

and

a

financial

institution

where

the

Fund

sells

(or

buys)

mortgage-backed

securities

for

delivery

on

a

specified

date

and

simultaneously

contracts

to

repurchase

(or

sell)

substantially

similar

(same

type,

coupon,

and

maturity)

securities

at

a

future

date

and

at

a

predetermined

price.

Gains

or

losses

are

realized

on

the

initial

sale,

and

the

difference

between

the

repurchase

price

and

the

sale

price

is

recorded

as

an

unrealized

gain

or

loss

to

the

Fund

upon

entering

into

the

mortgage

dollar

roll.

In

addition,

the

Fund

may

invest

the

cash

proceeds

that

are

received

from

the

initial

sale.

During

the

period

between

the

sale

and

repurchase,

the

Fund

is

not

entitled

to

principal

and

interest

paid

on

the

mortgage

backed

securities.

Transactions

in

mortgage

dollar

rolls

are

accounted

for

as

purchases

and

sales

and

may

result

in

an

increase

to

the

Fund's

portfolio

turnover

rate.

The

risks

of

mortgage

dollar

roll

transactions

include

the

potential

inability

of

the

counterparty

to

fulfill

its

obligations.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Loan

Participation

Notes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

153

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

i.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

Interbank

Offered

Rate

(LIBOR)/Senior

Overnight

Financing

Rate

(SOFR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

j.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and if

applicable,

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

April

30,

2023,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

k.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income.

The

Fund

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Fund.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-

dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

154

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statement

of

Operations.

l.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

m.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

April

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

23,791,924

$194,624,798

50,761,516

$476,945,327

Shares

issued

in

reinvestment

of

distributions

..........

12,422,561

101,065,569

10,659,429

98,830,200

Shares

redeemed

...............................

(63,688,712)

(520,325,082)

(59,388,810)

(551,455,626)

Net

increase

(decrease)

..........................

(27,474,227)

$(224,634,715)

2,032,135

$24,319,901

Class

C

Shares:

Shares

sold

...................................

1,064,169

$8,724,896

2,402,939

$22,494,001

Shares

issued

in

reinvestment

of

distributions

..........

605,456

4,931,255

824,330

7,682,094

Shares

redeemed

a

..............................

(9,555,676)

(78,262,570)

(24,241,492)

(228,254,279)

Net

increase

(decrease)

..........................

(7,886,051)

$(64,606,419)

(21,014,223)

$(198,078,184)

Class

R

Shares:

Shares

sold

...................................

728,664

$5,945,032

1,138,464

$10,527,911

Shares

issued

in

reinvestment

of

distributions

..........

226,920

1,837,872

199,131

1,839,350

Shares

redeemed

...............................

(1,648,826)

(13,377,908)

(1,961,445)

(18,226,959)

Net

increase

(decrease)

..........................

(693,242)

$(5,595,004)

(623,850)

$(5,859,698)

Class

R6

Shares:

Shares

sold

...................................

3,982,344

$32,673,110

5,621,353

$52,543,321

Shares

issued

in

reinvestment

of

distributions

..........

632,664

5,157,406

515,123

4,780,872

Shares

redeemed

...............................

(4,387,632)

(35,997,531)

(4,272,613)

(39,637,121)

Net

increase

(decrease)

..........................

227,376

$1,832,985

1,863,863

$17,687,072

1.

Organization

and

Significant

Accounting

Policies

(continued)

k.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

155

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

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

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

year

ended

April

30,

2023,

the

gross

effective

investment

management

fee

rate

was

0.458%

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.

Year

Ended

April

30,

2023

Year

Ended

April

30,

2022

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Shares

sold

...................................

7,495,412

$61,389,999

7,408,475

$68,923,330

Shares

issued

in

reinvestment

of

distributions

..........

1,560,308

12,733,375

1,727,789

16,053,275

Shares

redeemed

...............................

(16,904,453)

(138,199,488)

(12,457,836)

(116,296,649)

Net

increase

(decrease)

..........................

(7,848,733)

$(64,076,114)

(3,321,572)

$(31,320,044)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

Over

$20

billion,

up

to

and

including

$35

billion

0.355%

Over

$35

billion,

up

to

and

including

$50

billion

0.350%

In

excess

of

$50

billion

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

156

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

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

year

ended

April

30,

2023,

the

Fund

paid

transfer

agent

fees

of

$4,722,550,

of

which

$1,846,005

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

year

ended

April

30,

2023,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

0.65%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$43,906

CDSC

retained

..............................................................................

$52,472

3.

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

157

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

g.

Waivers

and

Expense

Reimbursements

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

August

31,

2023.

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 year

ended

April

30,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2023,

the

capital

loss

carryforwards

were

as

follows:

    aa

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

Held

at

End

of

Year

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Strategic

Income

Fund

Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

..................

$

318,685,701

$

—

$

(157,694,500)

$

(44,843,620)

$

29,802,107

$

145,949,688

18,687,540

$

15,163,010

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$

43,841,735

$

9,914,998

$

(16,391,773)

$

—

$

—

$

37,364,960

37,364,960

$

1,020,928

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.483%

$4,261,000

$288,000

$(4,549,000)

$—

$—

$—

—

$1,120

Total

Affiliated

Securities

...

$366,788,436

$10,202,998

$(178,635,273)

$(44,843,620)

$29,802,107

$183,314,648

$16,185,058

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$143,373,255

Long

term

................................................................................

778,328,486

Total

capital

loss

carryforwards

...............................................................

$921,701,741

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

158

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

The

tax

character

of

distributions

paid

during

the

years

ended

April

30,

2023

and

2022,

was

as

follows:

At

April

30,

2023,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

foreign

currency

transactions,

payments-in-kind,

paydown

losses,

bond

discounts

and

premiums

and

swaps.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

April

30,

2023,

aggregated

$1,952,753,772

and

$2,323,180,905,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

April

30,

2023,

the

Fund

had

23.9%

of

its

portfolio

invested

in

high

yield,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

April

30,

2023,

the

aggregate

value

of

these

securities

was

$11,664,512,

representing

0.4%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Schedule

of

Investments.

8.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

2023

2022

Distributions

paid

from:

Ordinary

income

..........................................................

$136,041,952

$136,874,383

Cost

of

investments

..........................................................................

$3,096,334,327

Unrealized

appreciation

........................................................................

$71,679,202

Unrealized

depreciation

........................................................................

(321,944,150)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(250,264,948)

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$1,089,432

5.

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

159

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

At

April

30,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

9.

Other

Derivative

Information

At

April

30,

2023,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

Principal

Amount

*

/

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Strategic

Income

Fund

125,940,079

K2016470219

South

Africa

Ltd.,

A

...............

2/08/13

-

2/01/17

$

977,123

$

—

12,532,821

K2016470219

South

Africa

Ltd.,

B

...............

2/01/17

9,307

—

6,000,000

WorkCapital

BSD

SARL,

2/13/26

................

2/15/19

750,000

—

20,000,000

WorkCapital

BSD

SARL,

Term

Loan,

6.5%,

1/01/38

..

2/13/19

19,530,078

—

Total

Restricted

Securities

(Value

is

—%

of

Net

Assets)

..............

$21,266,508

$—

*

In

U.S.

dollars

unless

otherwise

indicated.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Strategic

Income

Fund

Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

6,391,000

a

Variation

margin

on

futures

contracts

$

13,572

a

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

—

Unrealized

depreciation

on

OTC

forward

exchange

contracts

1,478,535

Credit

contracts

............

Variation

margin

on

centrally

cleared

swap

contracts

821,206

b

Variation

margin

on

centrally

cleared

swap

contracts

—

OTC

swap

contracts

(upfront

payments)

29,802

OTC

swap

contracts

(upfront

receipts)

5,147,530

Unrealized

appreciation

on

OTC

swap

contracts

226,714

Unrealized

depreciation

on

OTC

swap

contracts

7,519,994

Total

....................

$7,468,722

$14,159,631

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

b

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

centrally

cleared

swap

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

8.

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

160

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

For

the

year

ended

April

30,

2023,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

year

ended

April

30,

2023,

the

average

month

end

notional

amount

of

futures

contracts,

swap

contracts

and

options,

and

the

average

month

end

contract

value

for

forward

exchange

contracts,

were

as

follows:

At

April

30,

2023,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Strategic

Income

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Investments

$2,316,225

a

Investments

$—

Futures

contracts

(7,184,032)

Futures

contracts

7,579,569

Foreign

exchange

contracts

.....

Forward

exchange

contracts

2,127,432

Forward

exchange

contracts

(1,703,360)

Credit

contracts

...............

Swap

contracts

6,700,700

Swap

contracts

(3,236,410)

Total

.......................

$3,960,325

$2,639,799

a

Purchased

option

contracts

are

included

in

net

realized

gain

(loss)

from

investments

in

the

Statement

of

Operations.

Franklin

Strategic

Income

Fund

Futures

contracts

.........................

333,056,998

Swap

c

ontracts

...........................

181,644,349

Forward

exchange

contracts

.................

66,912,993

Options

.................................

10,269,231

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Strategic

Income

Fund

Derivatives

Forward

exchange

contracts

.............................

$

—

$

1,478,535

Swap

contracts

.......................................

256,516

12,667,524

Total

.............................................

$256,516

$14,146,059

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

9.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

161

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

At

April

30,

2023,

OTC

derivative

assets,

which

may

be

offset

against

the

Fund's

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

At

April

30,

2023,

OTC

derivative

liabilities,

which

may

be

offset

against

the

Fund's

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(d)

regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

167

.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

BNDP

...................

$39,756

$—

$—

$—

$39,756

CITI

.....................

216,760

(216,760)

—

—

—

JPHQ

...................

—

—

—

—

—

MSCO

...................

—

—

—

—

—

Total

...................

$256,516

$(216,760)

$

—

$—

$39,756

$

1

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

a

Net

Amount

(Not

less

than

zero)

Franklin

Strategic

Income

Fund

Counterparty

BNDP

...................

$—

$—

$—

$—

$—

CITI

.....................

10,990,646

(216,760)

—

(10,773,886)

—

JPHQ

...................

1,478,535

—

—

(1,478,535)

—

MSCO

...................

1,676,878

—

—

(1,470,000)

206,878

Total

...................

$14,146,059

$(216,760)

$—

$(13,722,421)

$206,878

a

In

some

instances,

the

collateral

amounts

disclosed

in

the

table

above

were

adjusted

due

to

the

requirement

to

limit

collateral

amounts

to

avoid

the

effect

of

over

collateralization.

Actual

collateral

received

and/or

pledged

may

be

more

than

the

amounts

disclosed

herein.

9.

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

162

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

year

ended

April

30,

2023,

investments

in

“affiliated

companies”

were

as

follows:

11.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the Statement

of

Operations.

During

the

year

ended

April

30,

2023,

the Fund

did

not

use

the

Global

Credit

Facility.

12.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the

Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

Value

at

Beginning

of

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Year

Number

of

Shares

at

End

of

Year

Investment

Income

Franklin

Strategic

Income

Fund

Controlled

Affiliates

a

Dividends

Birch

Permian

Holdings

,

Inc

.............

$

8,483,610

$

—

$

—

$

—

$

(1,752,105)

$

6,731,505

406,124

$

5,299,918

Total

Affiliated

Securities

(Value

is

0.2%

of

Net

Assets)

..........

$8,483,610

$—

$—

$—

$(1,752,105)

$6,731,505

$5,299,918

a

Issuer

in

which

the

Fund

owns

25%

or

more

of

the

outstanding

voting

securities.

Franklin

Strategic

Series

Notes

to

Financial

Statements

163

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

A

summary

of

inputs

used

as

of

April

30,

2023,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Broadline

Retail

.......................

$

—

$

—

$

—

a

$

—

Energy

Equipment

&

Services

.............

9,794,353

—

—

9,794,353

Media

...............................

768,747

—

—

768,747

Oil,

Gas

&

Consumable

Fuels

.............

36,540

6,731,505

—

6,768,045

Management

Investment

Companies

.........

—

145,949,688

—

145,949,688

Warrants

...............................

—

—

—

a

—

Convertible

Bonds

.......................

—

78,695

—

78,695

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

25,349,080

—

25,349,080

Air

Freight

&

Logistics

...................

—

3,156,780

—

3,156,780

Automobile

Components

.................

—

35,804,153

—

35,804,153

Automobiles

..........................

—

5,802,855

—

5,802,855

Banks

...............................

—

163,718,730

—

163,718,730

Beverages

...........................

—

8,301,423

—

8,301,423

Biotechnology

.........................

—

16,180,204

—

16,180,204

Broadline

Retail

.......................

—

—

—

a

—

Building

Products

......................

—

17,258,170

—

17,258,170

Capital

Markets

........................

—

63,247,258

—

63,247,258

Chemicals

...........................

—

54,114,317

—

54,114,317

Commercial

Services

&

Supplies

...........

—

20,616,741

—

20,616,741

Communications

Equipment

..............

—

5,194,164

—

5,194,164

Construction

&

Engineering

...............

—

2,371,597

—

2,371,597

Consumer

Finance

.....................

—

17,855,817

—

17,855,817

Containers

&

Packaging

.................

—

46,858,566

—

46,858,566

Distributors

...........................

—

4,426,500

—

4,426,500

Diversified

Consumer

Services

............

—

6,785,475

—

6,785,475

Diversified

REITs

......................

—

18,791,136

—

18,791,136

Diversified

Telecommunication

Services

.....

—

31,278,994

—

31,278,994

Electric

Utilities

........................

—

51,272,279

—

51,272,279

Electrical

Equipment

....................

—

9,510,095

—

9,510,095

Electronic

Equipment,

Instruments

&

Components

........................

—

11,249,404

—

11,249,404

Energy

Equipment

&

Services

.............

—

3,884,778

—

3,884,778

Entertainment

.........................

—

15,834,724

—

15,834,724

Financial

Services

......................

—

5,982,830

1,421,613

7,404,443

Food

Products

........................

—

19,656,213

—

19,656,213

Gas

Utilities

..........................

—

2,006,044

—

2,006,044

Ground

Transportation

..................

—

9,658,586

—

9,658,586

Health

Care

Equipment

&

Supplies

.........

—

14,418,265

—

14,418,265

Health

Care

Providers

&

Services

..........

—

57,284,768

—

57,284,768

Health

Care

REITs

.....................

—

2,738,830

—

2,738,830

Hotel

&

Resort

REITs

...................

—

3,040,835

—

3,040,835

Hotels,

Restaurants

&

Leisure

.............

—

34,078,901

—

34,078,901

Household

Durables

....................

—

2,570,067

—

2,570,067

Household

Products

....................

—

7,912,276

—

7,912,276

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

46,478,445

—

46,478,445

Insurance

............................

—

29,436,501

—

29,436,501

Interactive

Media

&

Services

..............

—

7,705,608

—

7,705,608

IT

Services

...........................

—

28,078,490

—

28,078,490

Machinery

............................

—

8,299,108

—

8,299,108

Media

...............................

—

44,960,976

—

44,960,976

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

164

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the

year.

At April

30,

2023,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Strategic

Income

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Metals

&

Mining

.......................

$

—

$

29,762,407

$

—

$

29,762,407

Mortgage

Real

Estate

Investment

Trusts

(REITs)

............................

—

7,922,650

—

7,922,650

Multi-Utilities

..........................

—

10,206,977

—

10,206,977

Oil,

Gas

&

Consumable

Fuels

.............

—

119,111,801

—

119,111,801

Paper

&

Forest

Products

.................

—

9,536,892

—

9,536,892

Passenger

Airlines

.....................

—

15,743,522

—

15,743,522

Personal

Care

Products

.................

—

30,470,740

—

30,470,740

Pharmaceuticals

.......................

—

30,506,628

—

30,506,628

Real

Estate

Management

&

Development

....

—

7,275,246

—

7,275,246

Software

.............................

—

4,986,386

—

4,986,386

Specialty

Retail

........................

—

8,775,304

—

8,775,304

Technology

Hardware,

Storage

&

Peripherals

.

—

1,770,428

—

1,770,428

Textiles,

Apparel

&

Luxury

Goods

..........

—

4,201,655

—

4,201,655

Tobacco

.............................

—

23,110,126

—

23,110,126

Trading

Companies

&

Distributors

..........

—

17,766,604

—

17,766,604

Transportation

Infrastructure

..............

—

702,891

—

702,891

Wireless

Telecommunication

Services

.......

—

16,111,448

—

16,111,448

Senior

Floating

Rate

Interests

...............

—

—

—

a

—

Marketplace

Loans

.......................

—

—

54,177,465

54,177,465

Foreign

Government

and

Agency

Securities

....

—

64,532,681

—

64,532,681

U.S.

Government

and

Agency

Securities

.......

—

605,009,180

—

605,009,180

Asset-Backed

Securities

...................

—

141,787,508

—

141,787,508

Commercial

Mortgage-Backed

Securities

......

—

16,112,737

—

16,112,737

Mortgage-Backed

Securities

................

—

182,979,326

—

182,979,326

Residential

Mortgage-Backed

Securities

.......

—

107,220,721

—

107,220,721

Escrows

and

Litigation

Trusts

...............

—

45,000

—

a

45,000

Short

Term

Investments

...................

37,364,960

177,866,902

—

215,231,862

Total

Investments

in

Securities

...........

$47,964,600

$2,749,445,631

$55,599,078

$2,853,009,309

Other

Financial

Instruments:

Futures

contracts

........................

$

6,391,000

$

—

$

—

$

6,391,000

Swap

contracts

.........................

—

1,047,920

—

1,047,920

Total

Other

Financial

Instruments

.........

$6,391,000

$1,047,920

$—

$7,438,920

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

1,478,535

$

—

$

1,478,535

Futures

contracts

........................

13,572

—

—

13,572

Swap

contracts

..........................

—

7,519,994

—

7,519,994

Total

Other

Financial

Instruments

.........

$13,572

$8,998,529

$—

$9,012,101

a

Includes

financial

instruments

determined

to

have

no

value

at

April

30,

2023.

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

165

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

April

30,

2023,

are

as

follows:

Balance

at

Beginning

of

Year

Purchases

a

Sales

b

Transfer

Into

Level

3

c

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Year

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Year

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Broadline

Retail

.....

$

—

d

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

d

$

—

Media

...........

28,864

—

(44,779)

—

—

—

—

15,915

—

—

Oil,

Gas

&

Consumable

Fuels

..........

—

d

—

(2,534)

—

—

—

(1,255,950)

1,258,484

—

—

Warrants

:

Oil,

Gas

&

Consumable

Fuels

..........

24

d

—

—

d

—

—

—

—

(24)

—

d

—

Software

..........

—

d

—

—

—

—

—

—

—

—

d

—

Corporate

Bonds

:

Broadline

Retail

.....

—

d

—

d

—

—

—

—

—

—

—

d

—

Financial

Services

...

—

—

—

2,297,537

—

(20,503)

—

(855,421)

1,421,613

(855,421)

Senior

Floating

Rate

Interests

:

Software

..........

—

d

—

—

—

—

—

—

—

—

d

—

Marketplace

Loans

:

Financial

Services

...

83,510,806

39,890,047

(64,984,366)

—

—

—

(985,201)

(3,253,821)

54,177,465

(4,317,189)

Escrows

and

Litigation

Trusts

...........

—

d

—

(6,393)

—

—

—

6,393

—

—

d

—

Total

Investments

in

Securities

............

$83,539,694

$39,890,047

$(65,038,072)

$2,297,537

$—

$(20,503)

$(2,234,758)

$(2,834,867)

$55,599,078

$(5,172,610)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Transferred

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

d

Includes

financial

instruments

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Year

Valuation

Technique

Unobservable

Inputs

Amount

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Strategic

Income

Fund

Assets:

Investments

in

Securities:

Marketplace

Loans:

Diversified

Financial

Services

$54,177,465

Discounted

cash

flow

Loss-adjusted

discount

rate

0.3%

–

17.8%

(9.3%)

Decrease

Projected

loss

rate

3.9%

–

39.5%

(16.0%)

Decrease

All

Other

Investments

.

.

.

.

.

.

.

1,421,613

c,d

Total

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.........

$55,599,078

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

166

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

13.

New

Accounting

Pronouncements

In

March

2020,

the

FASB

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021

and

December

2022,

the

FASB

issued

ASU

No.

2021-01

and

ASU

No.

2022-06,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

LIBOR

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2024.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

In June

2022,

the

FASB

issued

ASU

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

14.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

Represents

the

directional

change

in

the

fair

value

of

the

Level

3

financial

instruments

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

in

these

inputs

in

isolation

could

result

in

significantly

higher

or

lower

fair

value

measurements.

c

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

d

Includes

financial

instruments

determined

to

have

no

value

at

April

30,

2023.

12.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

167

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

(continued)

Abbreviations

Counterparty

BNDP

BNP

Paribas

SA

CITI

Citibank

NA

JPHQ

JPMorgan

Chase

Bank

NA

MSCO

Morgan

Stanley

Cu

r

rency

BRL

Brazilian

Real

COP

Colombian

Peso

EUR

Euro

USD

United

States

Dollar

Index

CDX.NA.HY.

Series

number

CDX

North

America

High

Yield

Index

MCDX.NA.

Series

number

MCDX

North

America

Index

Selected

Portfolio

BZDIOVRA

Brazil

Inter-Bank

Deposit

Rate

CLO

Collateralized

Loan

Obligation

CMT

Constant

Monthly

U.S.

Treasury

Securities

Yield

Curve

Rate

Index

CVR

Contingent

Value

Right

EURIBOR

Euro

Inter-Bank

Offer

Rate

FFCB

Federal

Farm

Credit

Banks

Funding

Corp.

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Interbank

Offered

Rate

MBS

Mortgage-Bac

ked

Security

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

T-Note

Treasury

Note

Franklin

Strategic

Series

Report

of

Independent

Registered

Public

Accounting

Firm

168

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Strategic

Income

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

Strategic

Income

Fund

(one

of

the

funds

constituting

Franklin

Strategic

Series,

referred

to

hereafter

as

the

"Fund")

as

of

April

30,

2023,

the

related

statement

of

operations

for

the

year

ended

April

30,

2023,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

April

30,

2023,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

April

30,

2023

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

April

30,

2023

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

April

30,

2023

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

June

16,

2023

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

169

franklintempleton.com

Annual

Report

Franklin

Strategic

Income

Fund

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amount

s

on

their

tax

returns.

The

following

tax

information

for

the

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2023:

Note

(1)

-

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

re

ceived

is

exempt

from

state

income

taxes.

Pursuant

to:

Amount

Reported

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$5,299,918

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$5,299,918

Section

163(j)

Interest

Earned

§163(j)

$119,192,096

Interest

Earned

from

Federal

Obligations

Note

(1)

$19,289,569

Franklin

Strategic

Series

Board

Members

and

Officers

170

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Trust,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton/Legg

Mason

Investments

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1991

118

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

118

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

118

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

Strategic

Series

171

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

118

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

Canadian

National

Railway

(railroad)

(2001-2021),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-

2021),

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

118

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Counselor

and

Special

Advisor

to

the

CEO

and

Board

of

Directors

of

the

Coca-Cola

Company

(beverage

company)

(2021-present);

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(2019-2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

118

Graham

Holdings

Company

(education

and

media

organization)

(2011-2021);

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-

2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-

2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

Strategic

Series

172

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Valerie

M.

Williams

(1956)

Trustee

Since

2021

110

Omnicom

Group,

Inc.

(advertising

and

marketing

communications

services)

(2016-present),

DTE

Energy

Co.

(gas

and

electric

utility)

(2018-present),

Devon

Energy

Corporation

(exploration

and

production

of

oil

and

gas)

(2021-present);

and

formerly

,

WPX

Energy,

Inc.

(exploration

and

production

of

oil

and

gas)

(2018-

2021).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Regional

Assurance

Managing

Partner,

Ernst

&

Young

LLP

(public

accounting)

(2005-2016),

various

roles

of

increasing

responsibility

at

Ernst

&

Young

(1981-2005).

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Chairman

of

the

Board

and

Trustee

Chairman

of

the

Board

since

January

2023

and

Trustee

since

2013

129

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015)

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Trustee

Since

1991

118

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Ted

P.

Becker

(1951)

Chief

Compliance

Officer

Since

June

2023

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Global

Compliance

of

Franklin

Templeton

(since

2020);

Chief

Compliance

Officer

of

Legg

Mason

Partners

Fund

Advisor,

LLC

(since

2006);

Chief

Compliance

Officer

of

certain

funds

associated

with

Legg

Mason

&

Co.

or

its

affiliates

(since

2006);

formerly

,

Director

of

Global

Compliance

at

Legg

Mason

(2006

to

2020);

Managing

Director

of

Compliance

of

Legg

Mason

&

Co.

(2005

to

2020).

Sonal

Desai,

Ph.D.

(1963)

Vice

President

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Independent

Board

Members

(continued)

Franklin

Strategic

Series

173

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton/Legg

Mason

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007

to

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Susan

Kerr

(1949)

Vice

President

–

AML

Compliance

Since

2021

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Compliance

Analyst,

Franklin

Templeton;

Chief

Anti-Money

Laundering

Compliance

Officer,

Legg

Mason

&

Co.,

or

its

affiliates;

Anti

Money

Laundering

Compliance

Officer;

Senior

Compliance

Officer,

LMIS;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Christopher

Kings

(1974)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

2022

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Edward

D.

Perks

(1970)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

President

and

Director,

Franklin

Advisers,

Inc.

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Navid

J.

Tofigh

(1972)

Vice

President

and

Secretary

Vice

President

since

2015

and

Secretary

since

June

2023

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

and

officer

of

certain

funds

in

the

Franklin

Templeton/Legg

Mason

fund

complex.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

174

franklintempleton.com

Annual

Report

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

Strategic

Series

Shareholder

Information

175

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

STRATEGIC

SERIES

Franklin

Strategic

Income

Fund

(Fund)

At

an

in-person

meeting

held

on

April

18,

2023

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Strategic

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Franklin

Strategic

Series

Shareholder

Information

176

franklintempleton.com

Annual

Report

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

multi-sector

income

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

further

noted

management’s

view

regarding

the

income-

related

attributes

of

the

Fund

(e.g.

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

Class

A

shares

for

each

other

fund

in

its

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

13

other

multi-sector

income

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

Franklin

Strategic

Series

Shareholder

Information

177

franklintempleton.com

Annual

Report

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Fund

had

experienced

a

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

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.

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

194

A

06/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

Strategic

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $359,100 for the fiscal year ended April 30, 2023 and $379,212 for the fiscal year ended April 30, 2022.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended April 30, 2023 and $8,000 for the fiscal year ended April 30, 2022. The services for which these fees were paid included preparation of tax returns in relation to the liquidation of previously consolidated entities.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended April 30, 2023, and $0 for the fiscal year ended April 30, 2022. The services for which these fees were paid included global access to tax platform International Tax View. 

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4
were $0 for the fiscal year ended April 30, 2023 and $9,067 for the fiscal year ended April 30, 2022.
The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process. 

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $75,711 for the fiscal year ended April 30, 2023 and $243,743 for the fiscal year ended April 30, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge, fees in connection with a license for accounting and business knowledge platform Viewpoint and professional fees in connection with SOC 1 Reports.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

        (i)     pre-approval of all audit and audit related services;

        (ii)    pre-approval of all non-audit related services to be provided to the Fund by the auditors;

        (iii)   pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

        (iv)    establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $145,711 for the fiscal year ended April 30, 2023 and $260,810 for the fiscal year ended April 30, 2022.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A

(j) 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

STRATEGIC SERIES

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  June 28, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  June 28, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  June 28, 2023