NPORT-EX 2 FSC.htm
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
November
30,
2020
Franklin
Templeton
SMACS:
Series
CH
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
1
See
Abbreviations
on
page
12
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
101.6%
California
101.6%
a
California
Community
Housing
Agency
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
......
$
200,000
$
224,316
b
California
County
Tobacco
Securitization
Agency
,
Gold
Country
Settlement
Funding
Corp.
,
Revenue
,
2020
B-1
,
Refunding
,
4
%
,
6/01/49
........................
100,000
108,749
California
Municipal
Finance
Authority
,
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/49
.
125,000
138,795
Congregational
Home
Obligated
Group
(The),
Revenue,
2019,
Refunding,
5%,
11/15/39
.......................................................
130,000
144,455
California
Statewide
Communities
Development
Authority
,
Special
Assessment,
2019
C,
5%,
9/02/49
...............................
125,000
143,675
Special
Assessment,
2020
A,
4%,
9/02/50
...............................
100,000
105,283
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/39
.......
100,000
116,776
a
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2018
A,
5.5%,
12/01/58
..................................................
250,000
287,990
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
100,000
99,159
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/52
.............
200,000
198,496
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
130,000
147,569
City
of
Rancho
Cordova
,
Grantline
208
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
.......................................
125,000
139,904
City
of
Roseville
,
SVSP
Westpark-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
125,000
140,328
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
130,000
147,196
City
of
Santa
Paula
,
Harvest
Community
Facilities
District
No.
1
,
Special
Tax
,
2020
,
4
%
,
9/01/50
......................................................
125,000
131,604
City
of
Tracy
,
Community
Facilities
District
No.
2016-01
,
Special
Tax
,
2018
,
5
%
,
9/01/48
.........................................................
135,000
150,857
City
of
Upland
,
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2019
A
,
4
%
,
9/01/49
.........................................................
185,000
200,897
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19
,
Special
Tax
,
2019
,
5
%
,
9/01/49
.......................................
100,000
114,552
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue
,
2013
B-2
,
Refunding
,
3.5
%
,
1/15/53
.........................................................
190,000
206,258
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2019
B-1
,
Refunding
,
5
%
,
6/01/48
.........
125,000
149,928
3,096,787
Total
Municipal
Bonds
(Cost
$3,025,564)
.......................................
3,096,787
a
a
a
a
a
Total
Investments
(Cost
$3,025,564)
101.6%
....................................
$3,096,787
Other
Assets,
less
Liabilities
(1.6)%
...........................................
(48,230)
Net
Assets
100.0%
...........................................................
$3,048,557
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
November
30,
2020,
the
aggregate
value
of
these
securities
was
$948,756,
representing
31.1%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
November
30,
2020
Franklin
Templeton
SMACS:
Series
E
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
2
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
84.6%
Aerospace
&
Defense
2.1%
General
Dynamics
Corp.
................................
United
States
600
$
89,610
Automobiles
2.5%
General
Motors
Co.
....................................
United
States
2,438
106,874
Banks
3.6%
Bank
of
America
Corp.
.................................
United
States
3,000
84,480
JPMorgan
Chase
&
Co.
.................................
United
States
600
70,728
155,208
Beverages
4.5%
PepsiCo,
Inc.
........................................
United
States
1,350
194,711
Capital
Markets
2.1%
Morgan
Stanley
.......................................
United
States
1,500
92,745
Communications
Equipment
2.0%
Cisco
Systems,
Inc.
...................................
United
States
2,000
86,040
Diversified
Telecommunication
Services
1.7%
BCE,
Inc.
...........................................
Canada
1,750
75,861
Electric
Utilities
9.2%
Duke
Energy
Corp.
....................................
United
States
2,000
185,320
Edison
International
...................................
United
States
1,500
92,040
Southern
Co.
(The)
....................................
United
States
2,000
119,700
397,060
Equity
Real
Estate
Investment
Trusts
(REITs)
1.0%
Host
Hotels
&
Resorts,
Inc.
..............................
United
States
3,000
42,090
Health
Care
Providers
&
Services
5.1%
CVS
Health
Corp.
.....................................
United
States
3,265
221,334
Insurance
2.1%
MetLife,
Inc.
.........................................
United
States
2,000
92,340
Interactive
Media
&
Services
2.8%
a
Alphabet,
Inc.,
A
......................................
United
States
70
122,808
a
Media
1.5%
Comcast
Corp.,
A
.....................................
United
States
1,300
65,312
Metals
&
Mining
2.7%
Rio
Tinto
plc,
ADR
.....................................
Australia
1,800
116,946
Multiline
Retail
5.4%
Target
Corp.
.........................................
United
States
1,300
233,389
Multi-Utilities
3.5%
Dominion
Energy,
Inc.
..................................
United
States
1,400
109,886
DTE
Energy
Co.
......................................
United
States
350
44,034
153,920
Oil,
Gas
&
Consumable
Fuels
7.0%
Chevron
Corp.
.......................................
United
States
2,600
226,668
TOTAL
SE,
ADR
......................................
France
1,800
75,852
302,520
Pharmaceuticals
11.3%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
3,300
174,702
Bristol-Myers
Squibb
Co.
................................
United
States
3,100
193,440
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
3
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Pharmaceuticals
(continued)
Merck
&
Co.,
Inc.
.....................................
United
States
1,500
$
120,585
488,727
Semiconductors
&
Semiconductor
Equipment
7.2%
Analog
Devices,
Inc.
...................................
United
States
650
90,402
Texas
Instruments,
Inc.
.................................
United
States
1,365
220,106
310,508
Specialty
Retail
3.8%
Home
Depot,
Inc.
(The)
.................................
United
States
600
166,446
Tobacco
3.5%
Philip
Morris
International,
Inc.
...........................
United
States
2,000
151,500
Total
Common
Stocks
(Cost
$3,183,481)
.......................................
3,665,949
Equity-Linked
Securities
5.2%
Internet
&
Direct
Marketing
Retail
2.9%
b
JPMorgan
Chase
Bank
NA
into
Amazon.com,
Inc.,
144A,
Reg
S,
9.5%,
12/07/21
.....................................
United
States
40
125,697
IT
Services
2.3%
b
Credit
Suisse
AG
into
International
Business
Machines
Corp.,
144A,
7.5%,
2/22/21
......................................
United
States
810
100,853
Total
Equity-Linked
Securities
(Cost
$248,787)
..................................
226,550
Convertible
Preferred
Stocks
5.7%
Electric
Utilities
2.6%
American
Electric
Power
Co.,
Inc.,
6.125%
..................
United
States
2,300
115,115
Semiconductors
&
Semiconductor
Equipment
3.1%
Broadcom,
Inc.,
8%,
A
..................................
United
States
100
133,071
Total
Convertible
Preferred
Stocks
(Cost
$212,594)
..............................
248,186
Preferred
Stocks
3.3%
Banks
3.3%
Citigroup,
Inc.,
6.875%,
K
...............................
United
States
5,000
142,450
Total
Preferred
Stocks
(Cost
$137,118)
.........................................
142,450
Units
Index-Linked
Notes
0.9%
Capital
Markets
0.9%
b,c
Credit
Suisse
AG,
Senior
Note,
144A,
11.06%,
2/08/21
.........
United
States
13
41,423
Total
Index-Linked
Notes
(Cost
$39,189)
.......................................
41,423
Total
Long
Term
Investments
(Cost
$3,821,169)
.................................
4,324,558
a
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
E
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
4
See
Abbreviations
on
page
12
.
Short
Term
Investments
3.4%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
3.4%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
146,164
$
146,164
Total
Money
Market
Funds
(Cost
$146,164)
.....................................
146,164
Total
Short
Term
Investments
(Cost
$146,164
)
..................................
146,164
a
Total
Investments
(Cost
$3,967,333)
103.1%
....................................
$4,470,722
Other
Assets,
less
Liabilities
(3.1)%
...........................................
(135,145)
Net
Assets
100.0%
...........................................................
$4,335,577
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
November
30,
2020,
the
aggregate
value
of
these
securities
was
$267,973,
representing
6.2%
of
net
assets.
c
Security
pays
variable
interest
based
on
the
distributions
of
the
strategy
index
and
proceeds
earned
from
related
equity
derivatives.
The
coupon
rate
shown
represents
the
combined
rate
at
period
end.
Cash
payment
at
maturity
or
upon
early
redemption
is
based
on
the
performance
of
the
strategy
index.
d
See
Note
5
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
November
30,
2020
Franklin
Templeton
SMACS:
Series
H
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
5
a
a
Shares
a
Value
a
Management
Investment
Companies
30.1%
Capital
Markets
30.1%
a
Franklin
Liberty
Federal
Intermediate
Tax-Free
Bond
Opportunities
ETF
..........
35,000
$
911,400
Total
Management
Investment
Companies
(Cost
$889,963)
.......................
911,400
Principal
Amount
a
a
a
a
Municipal
Bonds
69.0%
California
4.9%
Tobacco
Securitization
Authority
of
Southern
California,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-1,
Refunding,
5%,
6/01/48
.........
$
125,000
149,928
Colorado
18.9%
Colorado
Health
Facilities
Authority,
Christian
Living
Neighborhoods
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
1/01/38
.................................
100,000
101,517
Denver
Health
&
Hospital
Authority,
Revenue,
2019
A,
Refunding,
4%,
12/01/37
....
100,000
112,046
Hunters
Overlook
Metropolitan
District
No.
5,
GO,
2019
A,
5%,
12/01/39
..........
150,000
158,530
Village
at
Dry
Creek
Metropolitan
District
No.
2
(The),
GO,
2019,
4.375%,
12/01/44
..
200,000
200,162
572,255
Florida
2.0%
Windward
Community
Development
District,
Special
Assessment,
2020
A1,
3%,
5/01/25
.........................................................
60,000
60,577
Indiana
3.8%
Indiana
Finance
Authority,
Marian
University,
Inc.,
Revenue,
2019
A,
5%,
9/15/39
...
100,000
114,903
Louisiana
11.9%
Calcasieu
Parish
Memorial
Hospital
Service
District,
Southwest
Louisiana
Healthcare
System
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
12/01/39
............
200,000
220,740
b
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority,
Parish
of
St.
Martin,
Revenue,
144A,
2019,
4.4%,
11/01/44
...........
135,000
140,207
360,947
Maryland
3.2%
b
City
of
Baltimore,
Harbor
Point
Special
Taxing
District,
Tax
Allocation,
Senior
Lien,
144A,
2019
A,
Refunding,
3.5%,
6/01/39
................................
100,000
96,816
Pennsylvania
3.6%
b
Allentown
Neighborhood
Improvement
Zone
Development
Authority,
Revenue,
144A,
2017,
Refunding,
5%,
5/01/32
........................................
100,000
107,714
Texas
7.4%
b
County
of
Hays,
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/15/30
...............................................
100,000
102,531
b
New
Hope
Cultural
Education
Facilities
Finance
Corp.,
Cityscape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/39
...................................
110,000
120,534
223,065
Washington
3.4%
b
Washington
State
Housing
Finance
Commission,
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019A,
5%,
1/01/49
...
100,000
104,246
Wisconsin
4.6%
b
Public
Finance
Authority,
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/49
.............................................
125,000
138,166
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
H
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
6
See
Abbreviations
on
page
12
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
5.3%
District
of
Columbia
5.3%
District
of
Columbia,
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
.........................................................
$
140,000
$
161,627
Total
Municipal
Bonds
(Cost
$2,062,762)
.......................................
2,090,244
Total
Long
Term
Investments
(Cost
$2,952,725)
.................................
3,001,644
a
a
a
a
a
a
Total
Investments
(Cost
$2,952,725)
99.1%
.....................................
$3,001,644
Other
Assets,
less
Liabilities
0.9%
.............................................
25,954
Net
Assets
100.0%
...........................................................
$3,027,598
a
See
Note
5
regarding
investments
in
affiliated
management
investment
companies.
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
November
30,
2020,
the
aggregate
value
of
these
securities
was
$810,214,
representing
26.8%
of
net
assets.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
November
30,
2020
Franklin
Templeton
SMACS:
Series
I
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
7
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
89.1%
Automobiles
7.0%
Ford
Motor
Co.
,
Senior
Note
,
9
%
,
4/22/25
.................................
$
100,000
$
121,651
General
Motors
Co.
,
Senior
Note
,
6.125
%
,
10/01/25
.........................
100,000
120,561
242,212
Communications
Equipment
1.4%
a
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
................
47,000
48,224
Containers
&
Packaging
3.2%
a
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note
,
144A,
7.25
%
,
4/15/25
......
110,000
110,544
Diversified
Financial
Services
2.1%
a
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
.............
75,000
73,594
Energy
Equipment
&
Services
4.4%
a
Weatherford
International
Ltd.
,
144A,
8.75
%
,
9/01/24
........................
150,000
151,732
Entertainment
2.5%
Netflix,
Inc.
,
Senior
Bond
,
4.875
%
,
4/15/28
................................
75,000
85,997
Equity
Real
Estate
Investment
Trusts
(REITs)
1.6%
a
Iron
Mountain,
Inc.
,
Senior
Note
,
144A,
4.875
%
,
9/15/27
......................
55,000
57,154
Food
Products
3.4%
a
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.625
%
,
1/15/28
.....................
110,000
117,219
Health
Care
Providers
&
Services
26.7%
a
CHS/Community
Health
Systems,
Inc.
,
Senior
Note,
144A,
6.875%,
4/01/28
....................................
425,000
280,234
Senior
Secured
Note,
144A,
8%,
3/15/26
................................
150,000
157,725
Senior
Secured
Note,
144A,
8%,
12/15/27
...............................
174,000
181,830
Tenet
Healthcare
Corp.
,
Senior
Note
,
7
%
,
8/01/25
...........................
300,000
310,379
930,168
Hotels,
Restaurants
&
Leisure
6.8%
a
Golden
Nugget,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
10/15/24
.....................
55,000
53,831
a
Vail
Resorts,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
5/15/25
........................
100,000
107,125
a
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/25
.........................................................
75,000
76,641
237,597
Media
6.5%
DISH
DBS
Corp.
,
Senior
Note
,
5.875
%
,
7/15/22
............................
110,000
115,641
a
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
5.125
%
,
2/15/25
.....
110,000
110,894
226,535
Metals
&
Mining
3.3%
a
Cleveland-Cliffs,
Inc.
,
Senior
Secured
Note
,
144A,
9.875
%
,
10/17/25
.............
100,000
116,750
Oil,
Gas
&
Consumable
Fuels
6.1%
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
7.75%,
4/15/23
.........................................
110,000
106,768
a
Senior
Note,
144A,
11%,
4/15/25
......................................
50,000
50,125
Occidental
Petroleum
Corp.
,
Senior
Note
,
8
%
,
7/15/25
.......................
50,000
54,921
211,814
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Templeton
SMACS:
Series
I
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
8
See
Abbreviations
on
page
12
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Pharmaceuticals
8.7%
a
Bausch
Health
Cos.,
Inc.
,
Senior
Bond
,
144A,
6.125
%
,
4/15/25
.................
$
180,000
$
185,380
a
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
.............
110,000
118,944
304,324
Trading
Companies
&
Distributors
3.9%
United
Rentals
North
America,
Inc.
,
Senior
Bond
,
4.875
%
,
1/15/28
..............
75,000
80,156
a
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
6/15/25
.................
50,000
54,504
134,660
Wireless
Telecommunication
Services
1.5%
Sprint
Communications,
Inc.
,
Senior
Note
,
6
%
,
11/15/22
......................
50,000
53,875
Total
Corporate
Bonds
(Cost
$2,905,246)
.......................................
3,102,399
Asset-Backed
Securities
3.1%
Airlines
3.1%
United
Airlines
Pass
Through
Trust
,
2020-1
,
A
,
5.875
%
,
10/15/27
................
100,000
106,743
Total
Asset-Backed
Securities
(Cost
$100,000)
..................................
106,743
Mortgage-Backed
Securities
7.2%
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
7.2%
GNMA
II,
Single-family,
30
Year,
3%,
7/20/50
...............................
129,179
135,625
GNMA
II,
Single-family,
30
Year,
3%,
10/20/50
..............................
109,567
115,868
251,493
Total
Mortgage-Backed
Securities
(Cost
$252,981)
..............................
251,493
Total
Long
Term
Investments
(Cost
$3,258,227)
.................................
3,460,635
a
a
a
a
a
a
Total
Investments
(Cost
$3,258,227)
99.4%
.....................................
$3,460,635
Other
Assets,
less
Liabilities
0.6%
.............................................
21,765
Net
Assets
100.0%
...........................................................
$3,482,400
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
November
30,
2020,
the
aggregate
value
of
these
securities
was
$2,052,450,
representing
58.9%
of
net
assets.
Franklin
Strategic
Series
9
Notes
to
Statements
of
Investments
(unaudited)
1.
Organization
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
eleven
separate
funds,
four
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP). 
2. 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
Funds’
administrator
has
responsibility
for
oversight
of
valuation,
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
and
exchange
traded
funds
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,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed. 
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.
Occasionally,
events
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,
the
VC
monitors
price
movements
following
the
close
of
trading
in
foreign
stock
markets
through
a
series
of
country
specific
market
proxies
(such
as
baskets
of
American
Depositary
Receipts,
Franklin
Strategic
Series
Notes
to
Statements
of
Investments
(unaudited)
10
futures
contracts
and
exchange
traded
funds).
These
price
movements
are
measured
against
established
trigger
thresholds
for
each
specific
market
proxy
to
assist
in
determining
if
an
event
has
occurred
that
may
call
into
question
the
reliability
of
the
values
of
the
foreign
securities
held
by
the
Funds.
If
such
an
event
occurs,
the
securities
may
be
valued
using
fair
value
procedures,
which
may
include
the
use
of
independent
pricing
services.
At
November
30,
2020,
a
market
event
occurred
resulting
in
a
portion
of
the
securities
held
by
certain
or
all
Funds being
valued
using
fair
value
procedures.
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
significant
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes. 
3.
Concentration
of
Risk 
Franklin
Templeton
SMACS:
Series
CH
invests
a
large
percentage
of
its
total
assets
in
obligations
of
issuers
within
California.
Such
concentration
may
subject
the
Fund
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
California.
In
addition,
investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Funds
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell. 
4. Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
2. Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Statements
of
Investments
(unaudited)
11
5.
Investments
in
Affiliated
Management
Investment
Companies 
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies
for
purposes
other
than
exercising
a
controlling
influence
over
the
management
or
policies.
During
the
period
ended
November
30,
2020,
investments
in
affiliated
management
investment
companies
were
as
follows: 
6. 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
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
a
Franklin
Templeton
SMACS:
Series
E
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$165,509
$469,898
$(489,243)
$—
$—
$146,164
146,164
$—
Total
Affiliated
Securities
....
$165,509
$469,898
$(489,243)
$—
$—
$146,164
$—
Franklin
Templeton
SMACS:
Series
H
Non-Controlled
Affiliates
Dividends
Franklin
Liberty
Federal
Intermediate
Tax-Free
Bond
Opportunities
ETF
..........
$1,022,800
$—
$(127,660)
$522
$15,738
$911,400
35,000
$5,236
Total
Affiliated
Securities
....
$1,022,800
$—
$(127,660)
$522
$15,738
$911,400
$5,236
Franklin
Templeton
SMACS:
Series
I
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$159,307
$249,537
$(408,844)
$—
$—
$—
$—
Total
Affiliated
Securities
....
$159,307
$249,537
$(408,844)
$—
$—
$—
$—
Franklin
Strategic
Series
Notes
to
Statements
of
Investments
(unaudited)
12
A
summary
of
inputs
used
as
of
November
30,
2020,
in
valuing
the
Funds’
assets
carried
at
fair
value,
is
as
follows:  
7.
Subsequent
Events
The
Funds
have evaluated
subsequent
events
through
the
issuance
of
the
Statements of
Investments
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
Templeton
SMACS:
Series
CH
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
$
—
$
3,096,787
$
—
$
3,096,787
Total
Investments
in
Securities
...........
$—
$3,096,787
$—
$3,096,787
Franklin
Templeton
SMACS:
Series
E
Assets:
Investments
in
Securities:
a
Common
Stocks
........................
3,665,949
—
—
3,665,949
Equity-Linked
Securities
...................
—
226,550
—
226,550
Convertible
Preferred
Stocks
...............
248,186
—
—
248,186
Preferred
Stocks
........................
142,450
—
—
142,450
Index-Linked
Notes
......................
—
41,423
—
41,423
Short
Term
Investments
...................
146,164
—
—
146,164
Total
Investments
in
Securities
...........
$4,202,749
$267,973
$—
$4,470,722
Franklin
Templeton
SMACS:
Series
H
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
911,400
—
—
911,400
Municipal
Bonds
.........................
—
2,090,244
—
2,090,244
Total
Investments
in
Securities
...........
$911,400
$2,090,244
$—
$3,001,644
Franklin
Templeton
SMACS:
Series
I
Assets:
Investments
in
Securities:
a
Corporate
Bonds
........................
—
3,102,399
—
3,102,399
Asset-Backed
Securities
..................
—
106,743
—
106,743
Mortgage-Backed
Securities
................
—
251,493
—
251,493
Total
Investments
in
Securities
...........
$—
$3,460,635
$—
$3,460,635
a
For
detailed
categories,
see
the
accompanying
Statement
of
Investments.
Selected
Portfolio
ADR
American
Depositary
Receipt
ETF
Exchange-Traded
Fund
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
6. Fair
Value
Measurements 
(continued)
For
additional
information
on
the
Funds'
significant
accounting
policies,
please
refer
to
the Funds'
most
recent
semiannual
or
annual
shareholder
report.