Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

FSS3-Q3PH

1

Schedules

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CH

2

Franklin

Templeton

SMACS:

Series

E

4

Franklin

Templeton

SMACS:

Series

H

9

Franklin

Templeton

SMACS:

Series

I

11

Notes

to

Schedules

of

Investments

15

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2022

Franklin

Templeton

SMACS:

Series

CH

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

2

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

99.1%

California

99.1%

a

California

Community

Housing

Agency

,

Annadel

Apartments

,

Revenue

,

144A,

2019

A

,

5

%

,

4/01/49

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

$

200,000

$

193,672

California

County

Tobacco

Securitization

Agency

,

Gold

Country

Settlement

Funding

Corp.

,

Revenue

,

2020

B-1

,

Refunding

,

4

%

,

6/01/49

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

100,000

100,087

California

Municipal

Finance

Authority

,

Caritas

Corp.

(The),

Revenue,

2021

B,

Refunding,

4%,

8/15/56

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

115,000

94,511

a

Claremont

Graduate

University,

Revenue,

144A,

2020

B,

Refunding,

5%,

10/01/49

.

125,000

126,949

Congregational

Home

Obligated

Group

(The),

Revenue,

2019,

Refunding,

5%,

11/15/39

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

130,000

136,001

a

California

Pollution

Control

Financing

Authority

,

Rialto

Bioenergy

Facility

LLC

,

Revenue

,

144A,

2018

,

7.5

%

,

12/01/40

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

75,000

50,824

California

Statewide

Communities

Development

Authority

,

Special

Assessment,

2019

C,

5%,

9/02/49

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

125,000

132,725

Special

Assessment,

2020

A,

4%,

9/02/50

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

100,000

94,004

Community

Facilities

District

No.

2016-02,

Special

Tax,

2019,

5%,

9/01/39

.......

100,000

108,271

a

Loma

Linda

University

Medical

Center

Obligated

Group,

Revenue,

144A,

2018

A,

5.5%,

12/01/58

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

250,000

258,542

a

NCCD-Hooper

Street

LLC,

Revenue,

144A,

2019,

5.25%,

7/01/49

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

100,000

92,528

a

NCCD-Hooper

Street

LLC,

Revenue,

144A,

2019,

5.25%,

7/01/52

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

200,000

183,625

City

of

Dublin

,

Community

Facilities

District

No.

2015-1

Improvement

Area

No.

2

,

Special

Tax

,

2019

,

5

%

,

9/01/49

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

130,000

139,018

City

of

Rancho

Cordova

,

Grantline

208

Community

Facilities

District

No.

2018-1

,

Special

Tax

,

2019

,

5

%

,

9/01/49

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

75,000

80,111

City

of

Roseville

,

SVSP

Westpark

-Federico

Community

Facilities

District

No.

1,

Special

Tax,

2019,

5%,

9/01/49

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

125,000

133,127

Villages

at

Sierra

Vista

Community

Facilities

District

No.

1,

Special

Tax,

2019,

5%,

9/01/49

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

130,000

138,453

City

of

Santa

Paula

,

Harvest

Community

Facilities

District

No.

1

,

Special

Tax

,

2020

,

4

%

,

9/01/50

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

125,000

117,505

a

CSCDA

Community

Improvement

Authority

,

Dublin

,

Revenue

,

144A,

2021

B

,

4

%

,

2/01/57

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

140,000

108,699

Foothill-Eastern

Transportation

Corridor

Agency

,

Revenue

,

2013

B-2

,

Refunding

,

3.5

%

,

1/15/53

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

190,000

170,007

River

Islands

Public

Financing

Authority

,

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2021

,

4

%

,

9/01/51

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

140,000

130,309

Tobacco

Securitization

Authority

of

Southern

California

,

San

Diego

County

Tobacco

Asset

Securitization

Corp.

,

Revenue

,

2019

B-1

,

Refunding

,

5

%

,

6/01/48

.........

125,000

127,584

Tracy

Community

Facilities

District

,

City

of

Tracy

Community

Facilities

District

No.

2016-01

,

Special

Tax

,

2018

,

5

%

,

9/01/48

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

110,000

116,297

Upland

Community

Facilities

District

,

City

of

Upland

Community

Facilities

District

No.

2015-1

,

Special

Tax

,

2019

A

,

4

%

,

9/01/49

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

185,000

175,612

3,008,461

Total

Municipal

Bonds

(Cost

$3,276,753)

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

3,008,461

a

a

a

a

a

Total

Investments

(Cost

$3,276,753)

99.1%

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

$3,008,461

Other

Assets,

less

Liabilities

0.9%

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

28,853

Net

Assets

100.0%

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

$3,037,314

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

CH

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

3

See

Abbreviations

on

page

18

.

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

May

31,

2022,

the

aggregate

value

of

these

securities

was

$1,014,839,

representing

33.4%

of

net

assets.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2022

Franklin

Templeton

SMACS:

Series

E

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

4

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

52.8%

Automobiles

0.1%

a

Ford

Motor

Co.

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

United

States

800

$

10,944

Banks

7.0%

a

Bank

of

America

Corp.

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

United

States

570

21,204

a

JPMorgan

Chase

&

Co.

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

United

States

700

92,561

Truist

Financial

Corp.

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

United

States

7,050

350,667

US

Bancorp

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

United

States

1,175

62,357

526,789

Biotechnology

0.3%

a

AbbVie,

Inc.

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

United

States

155

22,842

Chemicals

4.3%

a

Air

Products

and

Chemicals,

Inc.

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

United

States

100

24,616

BASF

SE

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

Germany

5,400

298,233

322,849

Communications

Equipment

0.9%

a

Cisco

Systems,

Inc.

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

United

States

1,500

67,575

Diversified

Telecommunication

Services

1.8%

BCE,

Inc.

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

Canada

2,495

135,919

Electric

Utilities

3.0%

Exelon

Corp.

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

United

States

1,090

53,573

Southern

Co.

(The)

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

United

States

2,330

176,288

229,861

Health

Care

Equipment

&

Supplies

0.3%

a

Medtronic

plc

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

United

States

200

20,030

Health

Care

Providers

&

Services

0.7%

CVS

Health

Corp.

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

United

States

580

56,115

Industrial

Conglomerates

2.6%

a

Honeywell

International,

Inc.

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

United

States

100

19,362

Siemens

AG

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

Germany

1,320

174,252

193,614

Insurance

0.9%

a

MetLife,

Inc.

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

United

States

1,075

72,444

Internet

&

Direct

Marketing

Retail

1.4%

b

Amazon.com,

Inc.

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

United

States

45

108,189

Media

0.2%

a

Comcast

Corp.,

A

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

United

States

400

17,712

Metals

&

Mining

4.8%

a

Barrick

Gold

Corp.

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

Canada

950

19,466

BHP

Group

Ltd.,

ADR

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

Australia

1,500

105,990

a

Freeport-McMoRan,

Inc.

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

United

States

400

15,632

a

Rio

Tinto

plc,

ADR

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

Australia

3,000

220,320

361,408

Multi-Utilities

1.6%

Dominion

Energy,

Inc.

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

United

States

820

69,061

DTE

Energy

Co.

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

United

States

410

54,411

123,472

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

5

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Oil,

Gas

&

Consumable

Fuels

3.0%

a

Chevron

Corp.

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

United

States

200

$

34,932

TotalEnergies

SE,

ADR

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

France

3,225

189,630

224,562

Pharmaceuticals

5.3%

a

Bristol-Myers

Squibb

Co.

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

United

States

3,300

248,985

Sanofi

SA

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

France

1,410

150,888

399,873

Semiconductors

&

Semiconductor

Equipment

5.2%

Analog

Devices,

Inc.

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

United

States

261

43,952

a

Intel

Corp.

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

United

States

200

8,884

a

Microchip

Technology,

Inc.

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

United

States

200

14,530

a

Texas

Instruments,

Inc.

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

United

States

1,830

323,471

390,837

Software

0.4%

a,b

Workday,

Inc.,

A

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

United

States

200

31,260

Specialty

Retail

4.2%

Home

Depot,

Inc.

(The)

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

United

States

1,050

317,887

Tobacco

2.5%

Philip

Morris

International,

Inc.

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

United

States

1,750

185,938

Wireless

Telecommunication

Services

2.3%

Vodafone

Group

plc

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

United

Kingdom

105,230

173,260

Total

Common

Stocks

(Cost

$3,615,063)

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

3,993,380

Equity-Linked

Securities

38.2%

Automobiles

0.9%

c

Merrill

Lynch

International

&

Co.

CV

into

Ford

Motor

Co.,

144A,

12%,

12/07/22

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

United

States

5,000

72,772

Banks

3.4%

c

Credit

Suisse

AG

into

Bank

of

America

Corp.,

144A,

7.5%,

7/19/22

United

States

3,000

111,836

c

J.P.

Morgan

Structured

Products

BV

into

Bank

of

America

Corp.,

144A,

9.5%,

5/12/23

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

United

States

1,600

59,604

c

Mizuho

Markets

Cayman

LP

into

JPMorgan

Chase

&

Co.,

144A,

8%,

6/30/22

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

United

States

650

86,514

257,954

Biotechnology

1.4%

c

BNP

Paribas

Issuance

BV

into

AbbVie,

Inc.,

144A,

8%,

2/23/23

...

United

States

725

103,617

Capital

Markets

2.7%

c,d

UBS

AG

into

Charles

Schwab

Corp.

(The),

144A,

10%,

6/16/23

...

United

States

3,000

201,609

Communications

Equipment

1.0%

c

Royal

Bank

of

Canada

into

Cisco

Systems,

Inc.,

144A,

8%,

12/02/22

United

States

1,600

74,165

Diversified

Financial

Services

0.8%

c

Credit

Suisse

AG

into

Apollo

Global

Management,

Inc.,

144A,

8.5%,

5/15/23

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

United

States

240

58,529

Electric

Utilities

3.0%

c

National

Bank

of

Canada

into

NextEra

Energy,

Inc.,

144A,

8.5%,

12/05/23

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

United

States

3,000

229,305

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

6

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Equity-Linked

Securities

(continued)

Health

Care

Equipment

&

Supplies

1.3%

c

Barclays

Bank

plc

into

Medtronic

plc,

144A,

8%,

3/10/23

........

United

States

1,000

$

99,447

Industrial

Conglomerates

1.5%

c

Goldman

Sachs

International

Bank

into

Honeywell

International,

Inc.,

144A,

8.5%,

4/04/23

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

United

States

600

113,517

Insurance

2.6%

c

BNP

Paribas

Issuance

BV

into

MetLife,

Inc.,

144A,

8.5%,

8/23/22

.

United

States

2,000

129,843

c

Royal

Bank

of

Canada

into

MetLife,

Inc.,

144A,

10%,

5/19/23

....

United

States

1,000

66,788

196,631

Interactive

Media

&

Services

1.5%

c,d

Citigroup

Global

Markets

Holdings,

Inc.

into

Alphabet,

Inc.,

144A,

9%,

6/22/23

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

United

States

50

110,927

Media

1.5%

c

Morgan

Stanley

Finance

II

Ltd.

into

Comcast

Corp.,

144A,

6%,

7/19/22

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

United

States

2,500

110,924

Metals

&

Mining

4.5%

c

Citigroup

Global

Markets

Holdings,

Inc.

into

Barrick

Gold

Corp.,

144A,

9%,

10/13/22

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

Canada

6,500

128,671

c

Citigroup

Global

Markets

Holdings,

Inc.

into

Freeport-McMoRan,

Inc.,

144A,

12%,

10/26/22

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

United

States

3,000

106,966

c

National

Bank

of

Canada

into

Rio

Tinto

plc,

144A,

12.5%,

7/28/22

.

Australia

1,400

104,100

339,737

Oil,

Gas

&

Consumable

Fuels

1.7%

c

UBS

AG

into

Chevron

Corp.,

144A,

10%,

8/16/22

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

United

States

1,200

132,453

Pharmaceuticals

2.8%

c,d

Societe

Generale

SA

into

Pfizer,

Inc.,

144A,

8.5%,

6/09/23

......

United

States

4,000

211,732

Semiconductors

&

Semiconductor

Equipment

6.4%

c

Credit

Suisse

AG

into

Intel

Corp.,

144A,

9%,

7/19/22

...........

United

States

2,000

90,054

c

Goldman

Sachs

International

Bank

into

Texas

Instruments,

Inc.,

144A,

8.5%,

12/14/22

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

United

States

630

113,191

c

Mizuho

Markets

Cayman

LP

into

Microchip

Technology,

Inc.,

144A,

9%,

10/11/22

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

United

States

800

115,803

c

Royal

Bank

of

Canada

into

Analog

Devices,

Inc.,

144A,

10%,

5/19/23

United

States

1,000

162,851

481,899

Software

1.2%

c

Societe

Generale

SA

into

Workday,

Inc.,

144A,

8%,

9/02/22

......

United

States

550

88,154

Total

Equity-Linked

Securities

(Cost

$3,034,495)

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

2,883,372

Convertible

Preferred

Stocks

7.4%

Electric

Utilities

4.3%

American

Electric

Power

Co.,

Inc.,

6.125%

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

United

States

2,680

152,438

NextEra

Energy,

Inc.,

6.219%

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

United

States

3,500

171,675

324,113

Machinery

3.1%

RBC

Bearings,

Inc.,

5%,

A

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

United

States

1,300

126,750

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

7

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Convertible

Preferred

Stocks

(continued)

Machinery

(continued)

Stanley

Black

&

Decker,

Inc.,

5.25%

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

United

States

1,460

$

110,522

237,272

Total

Convertible

Preferred

Stocks

(Cost

$566,871)

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

561,385

Total

Long

Term

Investments

(Cost

$7,216,429)

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

7,438,137

a

Short

Term

Investments

8.2%

a

a

Country

Shares

a

Value

a

a

Money

Market

Funds

8.2%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.437%

....

United

States

623,617

623,617

Total

Money

Market

Funds

(Cost

$623,617)

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

623,617

Total

Short

Term

Investments

(Cost

$623,617

)

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

623,617

a

Total

Investments

(Cost

$7,840,046)

106.6%

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

$8,061,754

Options

Written

(0.0)%

†

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

(2,499)

Other

Assets,

less

Liabilities

(6.6)%

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

(498,874)

Net

Assets

100.0%

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

$7,560,381

Number

of

Contracts

Notional

Amount

#

a

a

a

a

Options

Written

(0.0)%

†

Calls

-

Exchange-Traded

Equity

Options

AbbVie,

Inc.,

June

Strike

Price

$170.00,

Expires

6/17/22

........

1

14,737

(8)

Air

Products

and

Chemicals,

Inc.,

June

Strike

Price

$260.00,

Expires

6/17/22

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

1

24,616

(140)

Bank

of

America

Corp.,

June

Strike

Price

$40.00,

Expires

6/17/22

.

2

7,440

(32)

Bank

of

America

Corp.,

June

Strike

Price

$45.00,

Expires

6/17/22

.

2

7,440

(4)

Barrick

Gold

Corp.,

June

Strike

Price

$25.00,

Expires

6/17/22

....

4

8,196

(12)

Barrick

Gold

Corp.,

June

Strike

Price

$27.00,

Expires

6/17/22

....

5

10,245

(10)

Bristol-Myers

Squibb

Co.,

June

Strike

Price

$80.00,

Expires

6/17/22

10

75,450

(240)

Chevron

Corp.,

June

Strike

Price

$170.00,

Expires

6/17/22

......

1

17,466

(790)

Chevron

Corp.,

June

Strike

Price

$180.00,

Expires

6/17/22

......

1

17,466

(259)

Cisco

Systems,

Inc.,

June

Strike

Price

$55.00,

Expires

6/17/22

...

1

4,505

(1)

Cisco

Systems,

Inc.,

June

Strike

Price

$60.00,

Expires

6/17/22

...

1

4,505

(1)

Comcast

Corp.,

July

Strike

Price

$47.50,

Expires

7/15/22

.......

2

8,856

(84)

Comcast

Corp.,

July

Strike

Price

$52.50,

Expires

7/15/22

.......

2

8,856

(6)

Ford

Motor

Co.,

June

Strike

Price

$17.00,

Expires

6/17/22

.......

4

5,472

(8)

Ford

Motor

Co.,

June

Strike

Price

$19.00,

Expires

6/17/22

.......

4

5,472

(4)

Freeport-McMoRan,

Inc.,

June

Strike

Price

$49.00,

Expires

6/17/22

2

7,816

(10)

Freeport-McMoRan,

Inc.,

June

Strike

Price

$55.00,

Expires

6/17/22

2

7,816

(2)

Honeywell

International,

Inc.,

June

Strike

Price

$200.00,

Expires

6/17/22

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

1

19,362

(179)

Intel

Corp.,

June

Strike

Price

$50.00,

Expires

6/17/22

..........

2

8,884

(14)

JPMorgan

Chase

&

Co.,

June

Strike

Price

$135.00,

Expires

6/17/22

1

13,223

(198)

JPMorgan

Chase

&

Co.,

June

Strike

Price

$150.00,

Expires

6/17/22

1

13,223

(6)

Medtronic

plc,

June

Strike

Price

$115.00,

Expires

6/17/22

.......

1

10,015

(6)

Medtronic

plc,

June

Strike

Price

$120.00,

Expires

6/17/22

.......

1

10,015

(2)

MetLife,

Inc.,

June

Strike

Price

$72.50,

Expires

6/17/22

.........

4

26,956

(60)

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

E

(continued)

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

8

See

Abbreviations

on

page

18

.

a

a

a

Number

of

Contracts

Notional

Amount

#

a

Value

a

a

a

a

a

a

Options

Written

(continued)

Calls

-

Exchange-Traded

(continued)

Equity

Options

(continued)

MetLife,

Inc.,

June

Strike

Price

$77.50,

Expires

6/17/22

.........

1

6,739

$

—

Microchip

Technology,

Inc.,

June

Strike

Price

$75.00,

Expires

6/17/22

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

1

7,265

(115)

Microchip

Technology,

Inc.,

June

Strike

Price

$82.50,

Expires

6/17/22

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

1

7,265

(10)

Rio

Tinto

plc,

June

Strike

Price

$80.00,

Expires

6/17/22

.........

2

14,688

(80)

Rio

Tinto

plc,

July

Strike

Price

$89.38,

Expires

7/15/22

.........

2

14,688

(45)

Texas

Instruments,

Inc.,

June

Strike

Price

$185.00,

Expires

6/17/22

1

17,676

(142)

Texas

Instruments,

Inc.,

June

Strike

Price

$195.00,

Expires

6/17/22

1

17,676

(18)

Workday,

Inc.,

June

Strike

Price

$230.00,

Expires

6/17/22

.......

1

15,630

(13)

Workday,

Inc.,

June

Strike

Price

$260.00,

Expires

6/17/22

.......

1

15,630

—

(2,499)

Total

Options

Written

(Premiums

received

$9,222)

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

$

(2,499)

#

Notional

amount

is

the

number

of

units

specified

in

the

contract,

and

can

include

currency

units,

bushels,

shares,

pounds,

barrels

or

other

units.

Currency

units

are

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

A

portion

or

all

of

the

security

is

held

in

connection

with

written

option

contracts

open

at

period

end.

b

Non-income

producing.

c

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

May

31,

2022,

the

aggregate

value

of

these

securities

was

$2,883,372,

representing

38.1%

of

net

assets.

d

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

e

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2022

Franklin

Templeton

SMACS:

Series

H

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

9

a

a

Shares

a

Value

a

Management

Investment

Companies

27.2%

Capital

Markets

27.2%

a

Franklin

Dynamic

Municipal

Bond

ETF

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

35,000

$

843,500

Total

Management

Investment

Companies

(Cost

$889,963)

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

843,500

Principal

Amount

a

a

a

a

Municipal

Bonds

70.5%

California

4.1%

Tobacco

Securitization

Authority

of

Southern

California

,

San

Diego

County

Tobacco

Asset

Securitization

Corp.

,

Revenue

,

2019

B-1

,

Refunding

,

5

%

,

6/01/48

.........

$

125,000

127,584

Colorado

11.1%

Colorado

Health

Facilities

Authority

,

Christian

Living

Neighborhoods

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

4

%

,

1/01/38

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

100,000

90,370

Denver

Health

&

Hospital

Authority

,

Revenue

,

2019

A

,

Refunding

,

4

%

,

12/01/37

....

100,000

100,143

Hunters

Overlook

Metropolitan

District

No.

5

,

GO

,

2019

A

,

5

%

,

12/01/39

..........

150,000

153,460

343,973

Connecticut

3.1%

b

Steel

Point

Infrastructure

Improvement

District

,

Tax

Allocation

,

144A,

2021

,

4

%

,

4/01/31

100,000

96,881

Florida

10.5%

Cross

Creek

North

Community

Development

District

,

Special

Assessment

,

2022

,

4.5

%

,

5/01/52

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

125,000

117,633

Kindred

Community

Development

District

II

,

Special

Assessment

,

2021

,

3.125

%

,

5/01/41

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

100,000

82,260

Quail

Roost

Community

Development

District

,

Expansion

Area

,

Special

Assessment

,

2021

,

4

%

,

12/15/51

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

75,000

65,910

Windward

Community

Development

District

,

Special

Assessment

,

2020

A-1

,

3

%

,

5/01/25

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

60,000

58,228

324,031

Indiana

3.5%

Indiana

Finance

Authority

,

Marian

University,

Inc.

,

Revenue

,

2019

A

,

5

%

,

9/15/39

...

100,000

106,859

Louisiana

7.5%

Calcasieu

Parish

Memorial

Hospital

Service

District

,

Southwest

Louisiana

Healthcare

System

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

5

%

,

12/01/39

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

100,000

106,302

b

Louisiana

Local

Government

Environmental

Facilities

&

Community

Development

Authority

,

Parish

of

St.

Martin

,

Revenue

,

144A,

2019

,

4.4

%

,

11/01/44

...........

135,000

126,397

232,699

Maryland

2.8%

b

City

of

Baltimore

,

Harbor

Point

Special

Taxing

District

,

Tax

Allocation,

Senior

Lien

,

144A,

2019

A

,

Refunding

,

3.5

%

,

6/01/39

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

100,000

87,234

Minnesota

3.2%

City

of

Apple

Valley

,

PHS

Apple

Valley

Senior

Housing,

Inc.

,

Revenue

,

2021

,

4

%

,

9/01/36

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

105,000

97,837

Pennsylvania

3.4%

b

Allentown

Neighborhood

Improvement

Zone

Development

Authority

,

Revenue

,

144A,

2017

,

5

%

,

5/01/32

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

100,000

106,025

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

H

(continued)

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

10

See

Abbreviations

on

page

18

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

6.6%

b

County

of

Hays

,

La

Cima

Public

Improvement

District

,

Special

Assessment

,

144A,

2020

,

3.25

%

,

9/15/30

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

$

100,000

$

90,290

b

New

Hope

Cultural

Education

Facilities

Finance

Corp.

,

CityScape

Schools,

Inc.

,

Revenue

,

144A,

2019

A

,

5

%

,

8/15/39

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

110,000

112,775

203,065

Washington

3.0%

b

Washington

State

Housing

Finance

Commission

,

Presbyterian

Retirement

Communities

Northwest

Obligated

Group

,

Revenue

,

144A,

2019

A

,

5

%

,

1/01/49

...

100,000

94,117

Wisconsin

4.1%

b

Public

Finance

Authority

,

Friends

Homes

Obligated

Group

,

Revenue

,

144A,

2019

,

Refunding

,

5

%

,

9/01/49

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

125,000

125,367

U.S.

Territories

7.6%

District

of

Columbia

4.6%

District

of

Columbia

,

International

School

Obligated

Group

,

Revenue

,

2019

,

5

%

,

7/01/49

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

140,000

143,531

Puerto

Rico

3.0%

Commonwealth

of

Puerto

Rico

,

GO

,

2022

A-1

,

4

%

,

7/01/46

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

100,000

93,557

Total

U.S.

Territories

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

237,088

Total

Municipal

Bonds

(Cost

$2,356,855)

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

2,182,760

Total

Long

Term

Investments

(Cost

$3,246,818)

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

3,026,260

a

a

a

a

a

a

Total

Investments

(Cost

$3,246,818)

97.7%

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

$3,026,260

Other

Assets,

less

Liabilities

2.3%

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

71,657

Net

Assets

100.0%

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

$3,097,917

a

See

Note

3

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

May

31,

2022,

the

aggregate

value

of

these

securities

was

$839,086,

representing

27.1%

of

net

assets.

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited),

May

31,

2022

Franklin

Templeton

SMACS:

Series

I

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

11

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

95.7%

Aerospace

&

Defense

3.5%

a

Bombardier,

Inc.

,

Senior

Bond

,

144A,

7.5

%

,

3/15/25

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

$

150,000

$

144,371

TransDigm

,

Inc.

,

Senior

Note

,

6.375

%

,

6/15/26

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

200,000

198,850

343,221

Airlines

3.1%

a

American

Airlines

Group,

Inc.

,

Senior

Note

,

144A,

5

%

,

6/01/22

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

100,000

100,000

a

American

Airlines

Inc

/

AAdvantage

Loyalty

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.5

%

,

4/20/26

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

100,000

99,030

a

United

Airlines,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

4/15/29

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

110,000

103,345

302,375

Auto

Components

2.6%

American

Axle

&

Manufacturing,

Inc.

,

Senior

Note

,

5

%

,

10/01/29

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

100,000

89,049

a

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

...........

100,000

79,875

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

5

%

,

7/15/29

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

100,000

91,785

260,709

Automobiles

1.1%

Ford

Motor

Co.

,

Senior

Note

,

9

%

,

4/22/25

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

100,000

112,187

Capital

Markets

0.9%

a

Coinbase

Global,

Inc.

,

Senior

Bond

,

144A,

3.625

%

,

10/01/31

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

125,000

84,635

Chemicals

4.0%

a

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

5.625

%

,

10/15/28

..........

150,000

137,527

a

Rain

CII

Carbon

LLC

/

CII

Carbon

Corp.

,

Secured

Note

,

144A,

7.25

%

,

4/01/25

.....

100,000

96,283

a

SCIH

Salt

Holdings,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

5/01/29

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

100,000

89,707

a

Vibrantz

Technologies,

Inc.

,

Senior

Note

,

144A,

9

%

,

2/15/30

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

100,000

75,229

398,746

Commercial

Services

&

Supplies

1.3%

a

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

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

150,000

127,243

Communications

Equipment

2.2%

a

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

5%,

3/15/27

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

50,000

41,812

Senior

Note,

144A,

6%,

6/15/25

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

187,000

174,528

216,340

Consumer

Finance

3.3%

Ford

Motor

Credit

Co.

LLC

,

Senior

Bond

,

5.113

%

,

5/03/29

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

200,000

195,212

OneMain

Finance

Corp.

,

Senior

Note

,

4

%

,

9/15/30

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

150,000

127,684

322,896

Containers

&

Packaging

5.6%

a

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

8/15/27

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

200,000

167,359

a

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note

,

144A,

7.25

%

,

4/15/25

......

300,000

290,475

a

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

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

100,000

90,695

548,529

Diversified

Financial

Services

1.4%

a

MPH

Acquisition

Holdings

LLC

,

Senior

Note,

144A,

5.75%,

11/01/28

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

75,000

66,879

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

12

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Diversified

Financial

Services

(continued)

a

MPH

Acquisition

Holdings

LLC,

(continued)

Senior

Secured

Note,

144A,

5.5%,

9/01/28

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

$

80,000

$

75,412

142,291

Electric

Utilities

0.7%

PG&E

Corp.

,

Senior

Secured

Note

,

5

%

,

7/01/28

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

75,000

70,967

Electrical

Equipment

0.9%

a

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

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

100,000

89,030

Energy

Equipment

&

Services

2.3%

a

Weatherford

International

Ltd.

,

Senior

Note,

144A,

8.625%,

4/30/30

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

100,000

95,780

Senior

Secured

Note,

144A,

6.5%,

9/15/28

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

135,000

133,053

228,833

Food

Products

1.0%

a

Post

Holdings,

Inc.

,

Senior

Bond

,

144A,

5.5

%

,

12/15/29

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

100,000

95,349

Health

Care

Equipment

&

Supplies

2.7%

a

Avantor

Funding,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

11/01/29

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

100,000

92,969

a

Mozart

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

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

200,000

177,420

270,389

Health

Care

Providers

&

Services

14.7%

a

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.125%,

4/01/30

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

150,000

109,500

Senior

Note,

144A,

6.875%,

4/01/28

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

425,000

291,824

Senior

Secured

Note,

144A,

8%,

3/15/26

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

210,000

210,799

Senior

Secured

Note,

144A,

8%,

12/15/27

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

174,000

174,347

a

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

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

200,000

174,144

a

Tenet

Healthcare

Corp.

,

Senior

Note

,

144A,

6.125

%

,

10/01/28

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

500,000

488,950

1,449,564

Hotels,

Restaurants

&

Leisure

5.1%

a

Caesars

Entertainment,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

10/15/29

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

100,000

85,499

a

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co.,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

1/15/30

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

100,000

86,833

a

Penn

National

Gaming,

Inc.

,

Senior

Note

,

144A,

5.625

%

,

1/15/27

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

100,000

92,441

a

Vail

Resorts,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

5/15/25

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

40,000

41,174

a

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

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

200,000

195,465

501,412

Household

Durables

0.9%

a

Shea

Homes

LP

/

Shea

Homes

Funding

Corp.

,

Senior

Note

,

144A,

4.75

%

,

2/15/28

..

100,000

88,197

Household

Products

1.0%

a

Energizer

Holdings,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

12/31/27

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

100,000

94,567

Independent

Power

and

Renewable

Electricity

Producers

1.0%

a,b

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

....

100,000

96,074

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

See

Notes

to

Schedules

of

Investments.

Quarterly

Schedules

of

Investments

13

a

a

Principal

Amount

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Media

12.2%

a

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note

,

144A,

7.75

%

,

4/15/28

.........

$

200,000

$

168,159

a

CSC

Holdings

LLC

,

Senior

Bond

,

144A,

5.5

%

,

4/15/27

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

200,000

200,504

a

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Senior

Secured

Note

,

144A,

5.375

%

,

8/15/26

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

100,000

33,171

a

Directv

Financing

LLC

/

Directv

Financing

Co-Obligor,

Inc.

,

Senior

Secured

Note

,

144A,

5.875

%

,

8/15/27

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

100,000

94,473

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

7/15/22

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

110,000

110,149

Senior

Note,

5.875%,

11/15/24

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

245,000

225,739

Senior

Note,

7.75%,

7/01/26

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

200,000

171,350

a

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

5.125

%

,

2/15/25

.....

200,000

197,754

1,201,299

Metals

&

Mining

3.0%

a

First

Quantum

Minerals

Ltd.

,

Senior

Note

,

144A,

7.5

%

,

4/01/25

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

200,000

201,913

a

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

4/15/30

.......

100,000

97,846

299,759

Oil,

Gas

&

Consumable

Fuels

5.0%

a

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note,

144A,

11%,

4/15/25

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

150,000

151,545

Senior

Note,

144A,

8.125%,

1/15/27

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

100,000

88,183

a

CITGO

Petroleum

Corp.

,

Senior

Secured

Note

,

144A,

7

%

,

6/15/25

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

100,000

100,475

a

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Note

,

144A,

6

%

,

4/15/30

........

100,000

97,433

Occidental

Petroleum

Corp.

,

Senior

Note

,

8

%

,

7/15/25

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

50,000

54,611

492,247

Personal

Products

1.0%

a

BellRing

Brands,

Inc.

,

Senior

Note

,

144A,

7

%

,

3/15/30

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

100,000

99,898

Pharmaceuticals

10.0%

a

Bausch

Health

Americas,

Inc.

,

Senior

Note,

144A,

9.25%,

4/01/26

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

100,000

83,980

Senior

Note,

144A,

8.5%,

1/31/27

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

400,000

318,460

a

Bausch

Health

Cos.,

Inc.

,

Senior

Note,

144A,

5%,

1/30/28

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

80,000

51,200

Senior

Secured

Note,

144A,

6.125%,

2/01/27

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

450,000

411,300

a

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

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

160,000

125,480

990,420

Software

3.6%

a

Condor

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

7.375

%

,

2/15/30

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

165,000

144,748

a

Minerva

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/30

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

100,000

91,927

a

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

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

150,000

116,902

353,577

Specialty

Retail

1.1%

a

Carvana

Co.

,

Senior

Note

,

144A,

10.25

%

,

5/01/30

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

125,000

111,779

Trading

Companies

&

Distributors

0.5%

a

WESCO

Distribution,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

6/15/25

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

50,000

51,974

Total

Corporate

Bonds

(Cost

$9,825,378)

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

9,444,507

Franklin

Strategic

Series

Schedule

of

Investments

(unaudited)

Franklin

Templeton

SMACS:

Series

I

(continued)

Quarterly

Schedules

of

Investments

See

Notes

to

Schedules

of

Investments.

14

See

Abbreviations

on

page

18

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Senior

Floating

Rate

Interests

0.2%

Media

0.2%

c

Diamond

Sports

Group

LLC

,

First

Lien,

CME

Term

Loan

,

9

%

,

(

1-month

SOFR

+

8

%

),

5/25/26

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

$

14,511

$

14,649

Total

Senior

Floating

Rate

Interests

(Cost

$13,323)

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

14,649

Shares

Escrows

and

Litigation

Trusts

1.0%

a,d

Chesapeake

Energy

Corp.,

Escrow

Account

,

144A

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

100,000

102,750

Total

Escrows

and

Litigation

Trusts

(Cost

$100,000)

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

102,750

Total

Long

Term

Investments

(Cost

$9,938,701)

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

9,561,906

a

a

a

a

a

Short

Term

Investments

4.0%

a

Money

Market

Funds

4.0%

e,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.437%

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

393,619

393,619

Total

Money

Market

Funds

(Cost

$393,619)

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

393,619

Total

Short

Term

Investments

(Cost

$393,619

)

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

393,619

a

Total

Investments

(Cost

$10,332,320)

100.9%

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

$9,955,525

Other

Assets,

less

Liabilities

(0.9)%

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

(85,727)

Net

Assets

100.0%

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

$9,869,798

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

May

31,

2022,

the

aggregate

value

of

these

securities

was

$8,099,674,

representing

82.1%

of

net

assets.

b

Perpetual

security

with

no

stated

maturity

date.

c

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

d

Non-income

producing.

e

See

Note

3

regarding

investments

in

affiliated

management

investment

companies.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

15

Quarterly

Schedules

of

Investments

Notes

to

Schedules

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 ten

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.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Funds’

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

Funds’ net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets. 

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. 

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

16

Quarterly

Schedules

of

Investments

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

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

May

31,

2022,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

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.

3.

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.

During

the

period

ended

May

31,

2022,

investments

in

affiliated

management

investment

companies

were

as

follows: 

    aa

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  

Franklin

Templeton

SMACS:

Series

E

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.437%

$

—

$

4,833,395

$

(4,209,778)

$

—

$

—

$

623,617

623,617

$

97

Total

Affiliated

Securities

...

$—

$4,833,395

$(4,209,778)

$—

$—

$623,617

$97

Franklin

Templeton

SMACS:

Series

H

Non-Controlled

Affiliates

Dividends

Franklin

Dynamic

Municipal

Bond

ETF

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

$945,525

$—

$—

$—

$(102,025)

$843,500

35,000

$14,004

Total

Affiliated

Securities

...

$945,525

$—

$—

$—

$(102,025)

$843,500

$14,004

2. Financial

Instrument

Valuation

(continued)

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

17

Quarterly

Schedules

of

Investments

4. 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

May

31,

2022,

in

valuing

the

Funds’

assets

and

liabilities carried

at

fair

value,

is

as

follows:  

    aa

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

Franklin

Templeton

SMACS:

Series

I

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.437%

$

1,888

$

5,408,980

$

(5,017,249)

$

—

$

—

$

393,619

393,619

$

95

Total

Affiliated

Securities

...

$1,888

$5,408,980

$(5,017,249)

$—

$—

$393,619

$95

Level

1

Level

2

Level

3

Total

Franklin

Templeton

SMACS:

Series

CH

Assets:

Municipal

Bonds

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

$

—

$

3,008,461

$

—

$

3,008,461

Total

Investments

in

Securities

...........

$—

$3,008,461

$—

$3,008,461

Franklin

Templeton

SMACS:

Series

E

Assets:

Investments

in

Securities:

Common

Stocks

:

Automobiles

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

10,944

—

—

10,944

Banks

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

526,789

—

—

526,789

Biotechnology

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

22,842

—

—

22,842

Chemicals

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

24,616

298,233

—

322,849

Communications

Equipment

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

67,575

—

—

67,575

Diversified

Telecommunication

Services

.....

135,919

—

—

135,919

Electric

Utilities

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

229,861

—

—

229,861

Health

Care

Equipment

&

Supplies

.........

20,030

—

—

20,030

Health

Care

Providers

&

Services

..........

56,115

—

—

56,115

Industrial

Conglomerates

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

19,362

174,252

—

193,614

Insurance

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

72,444

—

—

72,444

Internet

&

Direct

Marketing

Retail

..........

108,189

—

—

108,189

Media

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

17,712

—

—

17,712

3.

Investments

in

Affiliated

Management

Investment

Companies 

(continued)

Franklin

Strategic

Series

Notes

to

Schedules

of

Investments

(unaudited)

18

Quarterly

Schedules

of

Investments

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Templeton

SMACS:

Series

E

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Metals

&

Mining

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

$

361,408

$

—

$

—

$

361,408

Multi-Utilities

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

123,472

—

—

123,472

Oil,

Gas

&

Consumable

Fuels

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

224,562

—

—

224,562

Pharmaceuticals

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

248,985

150,888

—

399,873

Semiconductors

&

Semiconductor

Equipment

.

390,837

—

—

390,837

Software

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

31,260

—

—

31,260

Specialty

Retail

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

317,887

—

—

317,887

Tobacco

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

185,938

—

—

185,938

Wireless

Telecommunication

Services

.......

—

173,260

—

173,260

Equity-Linked

Securities

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

—

2,883,372

—

2,883,372

Convertible

Preferred

Stocks

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

561,385

—

—

561,385

Short

Term

Investments

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

623,617

—

—

623,617

Total

Investments

in

Securities

...........

$4,381,749

$3,680,005

a

$—

$8,061,754

Liabilities:

Other

Financial

Instruments:

Options

written

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

$

2,499

$

—

$

—

$

2,499

Total

Other

Financial

Instruments

.........

$2,499

$—

$—

$2,499

Franklin

Templeton

SMACS:

Series

H

Assets:

Investments

in

Securities:

b

Management

Investment

Companies

.........

843,500

—

—

843,500

Municipal

Bonds

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

—

2,182,760

—

2,182,760

Total

Investments

in

Securities

...........

$843,500

$2,182,760

$—

$3,026,260

Franklin

Templeton

SMACS:

Series

I

Assets:

Investments

in

Securities:

b

Corporate

Bonds

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

—

9,444,507

—

9,444,507

Senior

Floating

Rate

Interests

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

—

14,649

—

14,649

Escrows

and

Litigation

Trusts

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

—

102,750

—

102,750

Short

Term

Investments

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

393,619

—

—

393,619

Total

Investments

in

Securities

...........

$393,619

$9,561,906

$—

$9,955,525

a

Includes

foreign

securities

valued

at

$796,633,

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.

b

For

detailed

categories,

see

the

accompanying

schedule

of

investments.

Selected

Portfolio

ADR

American

De

positary

Receipt

CME

Chicago

Mercantile

Exchange

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GO

General

Obligation

SOFR

Secured

Overnight

Financing

Rate

4. 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.