2026-05-2074200010800_FranklinBiotechnologyDiscoveryFund_ClassA


Franklin Biotechnology Discovery Fund
Class A [FBDIX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Biotechnology Discovery Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$134	1.01%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Biotechnology Discovery Fund returned 65.03%. The Fund compares its performance to the NASDAQ Biotechnology Index and the S&P 500 Index, which returned 37.61% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweighted portfolio exposure to mid-, small-, and micro-cap biotechnology stocks, which generally performed well. Performance also benefited from a focus on companies with proven drug delivery platforms, favorable clinical trial catalysts, and strong balance sheets. In addition, an emphasis on identifying clinically or commercially “de-risked” assets appears to have supported relative returns.
↑	Successful stock selection in the biotech industry, where numerous overweighted or off-benchmark holdings more than doubled in value, including key contributors Abivax, Ascendis Pharma, Praxis Precision Medicines, Merus, Spyre Therapeutics, Oruka Therapeutics, Centessa Pharmaceuticals, Dianthus Therapeutics and uniQure.
↑	Stock selection and overweighting in the pharmaceuticals industry, where much larger-than-index positions in Terns Pharmaceuticals and Jazz Pharmaceuticals topped a fairly long list of contributors. To a lesser extent, additional relative-return gains were achieved in three other industries: health care services (due to overweighting), managed health care (not an index component), and health care equipment (lack of exposure).


Top detractors from performance:
↓	Detrimental stock selection created a wide total-return gap in the life sciences tools and services industry; the combined value of the Fund’s related holdings declined, while those tracked by the benchmark index increased sharply.
↓	Several overweighted or off-benchmark biotech and pharma holdings either sold off amid company-specific setbacks or posted muted one-year gains. The key detractors in this regard were LENZ Therapeutics (purchased during the period), Benitec Biopharma, Soleno Therapeutics, ARS Pharmaceuticals, Ionis Pharmaceuticals (purchased during the period), Eli Lilly, MoonLake Immunotherapeutics (bought and sold during the period), Zealand Pharma, Ultragenyx Pharmaceuticals and Day One Biopharmaceuticals. Several of these positions were liquidated by year-end.
↓	The Fund lacked exposure to several index component companies—such as Roivant Sciences, Arrowhead Pharmaceuticals, United Therapeutics, Viatris, and Axsome Therapeutics—that significantly outperformed the benchmark. In addition, the portfolio’s cash allocation (averaging about 2.1% of total net assets) diluted relative performance during a time of robust and broad-based gains across the biotech and pharma industries.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

The Fund’s past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	65.03	8.13	10.09
Class A (with sales charge)	55.94	6.91	9.47
Russell 3000 Index	31.01	11.91	14.76
NASDAQ Biotechnology Index	37.61	3.80	7.65
S&P 500 Index	31.05	13.14	15.26

Total return information is based on net asset values calculated for shareholder transactions. Certain adjustments were made to the net assets of the Fund at the end of the period for financial reporting purposes. Accordingly, adjusted total returns have been disclosed in the Financial Highlights and differ from those reported here.

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$1,037,360,270
Total Number of Portfolio Holdings	110
Total Management Fee Paid	$5,300,115
Portfolio Turnover Rate	37.62%


Franklin Biotechnology Discovery Fund
Class C [FBTDX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$232	1.76%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Biotechnology Discovery Fund returned 63.82%. The Fund compares its performance to the NASDAQ Biotechnology Index and the S&P 500 Index, which returned 37.61% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweighted portfolio exposure to mid-, small-, and micro-cap biotechnology stocks, which generally performed well. Performance also benefited from a focus on companies with proven drug delivery platforms, favorable clinical trial catalysts, and strong balance sheets. In addition, an emphasis on identifying clinically or commercially “de-risked” assets appears to have supported relative returns.
↑	Successful stock selection in the biotech industry, where numerous overweighted or off-benchmark holdings more than doubled in value, including key contributors Abivax, Ascendis Pharma, Praxis Precision Medicines, Merus, Spyre Therapeutics, Oruka Therapeutics, Centessa Pharmaceuticals, Dianthus Therapeutics and uniQure.
↑	Stock selection and overweighting in the pharmaceuticals industry, where much larger-than-index positions in Terns Pharmaceuticals and Jazz Pharmaceuticals topped a fairly long list of contributors. To a lesser extent, additional relative-return gains were achieved in three other industries: health care services (due to overweighting), managed health care (not an index component), and health care equipment (lack of exposure).


Top detractors from performance:
↓	Detrimental stock selection created a wide total-return gap in the life sciences tools and services industry; the combined value of the Fund’s related holdings declined, while those tracked by the benchmark index increased sharply.
↓	Several overweighted or off-benchmark biotech and pharma holdings either sold off amid company-specific setbacks or posted muted one-year gains. The key detractors in this regard were LENZ Therapeutics (purchased during the period), Benitec Biopharma, Soleno Therapeutics, ARS Pharmaceuticals, Ionis Pharmaceuticals (purchased during the period), Eli Lilly, MoonLake Immunotherapeutics (bought and sold during the period), Zealand Pharma, Ultragenyx Pharmaceuticals and Day One Biopharmaceuticals. Several of these positions were liquidated by year-end.
↓	The Fund lacked exposure to several index component companies—such as Roivant Sciences, Arrowhead Pharmaceuticals, United Therapeutics, Viatris, and Axsome Therapeutics—that significantly outperformed the benchmark. In addition, the portfolio’s cash allocation (averaging about 2.1% of total net assets) diluted relative performance during a time of robust and broad-based gains across the biotech and pharma industries.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	63.82	7.35	9.28
Russell 3000 Index	31.01	11.91	14.76
NASDAQ Biotechnology Index	37.61	3.80	7.65
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$1,037,360,270
Total Number of Portfolio Holdings	110
Total Management Fee Paid	$5,300,115
Portfolio Turnover Rate	37.62%


Franklin Biotechnology Discovery Fund
Class R6 [FRBRX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$89	0.67%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Biotechnology Discovery Fund returned 65.61%. The Fund compares its performance to the NASDAQ Biotechnology Index and the S&P 500 Index, which returned 37.61% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweighted portfolio exposure to mid-, small-, and micro-cap biotechnology stocks, which generally performed well. Performance also benefited from a focus on companies with proven drug delivery platforms, favorable clinical trial catalysts, and strong balance sheets. In addition, an emphasis on identifying clinically or commercially “de-risked” assets appears to have supported relative returns.
↑	Successful stock selection in the biotech industry, where numerous overweighted or off-benchmark holdings more than doubled in value, including key contributors Abivax, Ascendis Pharma, Praxis Precision Medicines, Merus, Spyre Therapeutics, Oruka Therapeutics, Centessa Pharmaceuticals, Dianthus Therapeutics and uniQure.
↑	Stock selection and overweighting in the pharmaceuticals industry, where much larger-than-index positions in Terns Pharmaceuticals and Jazz Pharmaceuticals topped a fairly long list of contributors. To a lesser extent, additional relative-return gains were achieved in three other industries: health care services (due to overweighting), managed health care (not an index component), and health care equipment (lack of exposure).


Top detractors from performance:
↓	Detrimental stock selection created a wide total-return gap in the life sciences tools and services industry; the combined value of the Fund’s related holdings declined, while those tracked by the benchmark index increased sharply.
↓	Several overweighted or off-benchmark biotech and pharma holdings either sold off amid company-specific setbacks or posted muted one-year gains. The key detractors in this regard were LENZ Therapeutics (purchased during the period), Benitec Biopharma, Soleno Therapeutics, ARS Pharmaceuticals, Ionis Pharmaceuticals (purchased during the period), Eli Lilly, MoonLake Immunotherapeutics (bought and sold during the period), Zealand Pharma, Ultragenyx Pharmaceuticals and Day One Biopharmaceuticals. Several of these positions were liquidated by year-end.
↓	The Fund lacked exposure to several index component companies—such as Roivant Sciences, Arrowhead Pharmaceuticals, United Therapeutics, Viatris, and Axsome Therapeutics—that significantly outperformed the benchmark. In addition, the portfolio’s cash allocation (averaging about 2.1% of total net assets) diluted relative performance during a time of robust and broad-based gains across the biotech and pharma industries.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	65.61	8.53	10.50
Russell 3000 Index	31.01	11.91	14.76
NASDAQ Biotechnology Index	37.61	3.80	7.65
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$1,037,360,270
Total Number of Portfolio Holdings	110
Total Management Fee Paid	$5,300,115
Portfolio Turnover Rate	37.62%


Franklin Biotechnology Discovery Fund
Advisor Class [FTDZX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$101	0.76%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Biotechnology Discovery Fund returned 65.45%. The Fund compares its performance to the NASDAQ Biotechnology Index and the S&P 500 Index, which returned 37.61% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweighted portfolio exposure to mid-, small-, and micro-cap biotechnology stocks, which generally performed well. Performance also benefited from a focus on companies with proven drug delivery platforms, favorable clinical trial catalysts, and strong balance sheets. In addition, an emphasis on identifying clinically or commercially “de-risked” assets appears to have supported relative returns.
↑	Successful stock selection in the biotech industry, where numerous overweighted or off-benchmark holdings more than doubled in value, including key contributors Abivax, Ascendis Pharma, Praxis Precision Medicines, Merus, Spyre Therapeutics, Oruka Therapeutics, Centessa Pharmaceuticals, Dianthus Therapeutics and uniQure.
↑	Stock selection and overweighting in the pharmaceuticals industry, where much larger-than-index positions in Terns Pharmaceuticals and Jazz Pharmaceuticals topped a fairly long list of contributors. To a lesser extent, additional relative-return gains were achieved in three other industries: health care services (due to overweighting), managed health care (not an index component), and health care equipment (lack of exposure).


Top detractors from performance:
↓	Detrimental stock selection created a wide total-return gap in the life sciences tools and services industry; the combined value of the Fund’s related holdings declined, while those tracked by the benchmark index increased sharply.
↓	Several overweighted or off-benchmark biotech and pharma holdings either sold off amid company-specific setbacks or posted muted one-year gains. The key detractors in this regard were LENZ Therapeutics (purchased during the period), Benitec Biopharma, Soleno Therapeutics, ARS Pharmaceuticals, Ionis Pharmaceuticals (purchased during the period), Eli Lilly, MoonLake Immunotherapeutics (bought and sold during the period), Zealand Pharma, Ultragenyx Pharmaceuticals and Day One Biopharmaceuticals. Several of these positions were liquidated by year-end.
↓	The Fund lacked exposure to several index component companies—such as Roivant Sciences, Arrowhead Pharmaceuticals, United Therapeutics, Viatris, and Axsome Therapeutics—that significantly outperformed the benchmark. In addition, the portfolio’s cash allocation (averaging about 2.1% of total net assets) diluted relative performance during a time of robust and broad-based gains across the biotech and pharma industries.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	65.45	8.40	10.36
Russell 3000 Index	31.01	11.91	14.76
NASDAQ Biotechnology Index	37.61	3.80	7.65
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$1,037,360,270
Total Number of Portfolio Holdings	110
Total Management Fee Paid	$5,300,115
Portfolio Turnover Rate	37.62%


Franklin Core Plus Bond Fund
Class A [FRSTX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Core Plus Bond Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$73	0.71%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Core Plus Bond Fund returned 4.78%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.06% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweight allocation to high-yield (HY) and investment-grade (IG) corporate bonds, agency mortgage-backed securities (MBS), commercial MBS and sovereign emerging market debt.
↑	Out-of-index exposure to residential MBS and collateralized loan obligations (CLOs).
↑	Exposure to the five-, 20- and 30-year portions of the yield curve.


Top detractors from performance:
↓	Security selection in HY corporate bonds, senior secured floating-rate bank loans and IG corporate bonds.
↓	Exposure to the 10-year segment of the yield curve.

Use of derivatives and the impact on performance:

The Fund utilized bond futures to manage duration exposure and high-yield credit default swap (CDS) to manage the Fund’s credit exposure. In aggregate, these instruments detracted slightly from performance.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,625 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	4.78	1.81	2.80
Class A (with sales charge)	0.87	1.03	2.41
Bloomberg U.S. Aggregate Index	4.06	0.18	1.67

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to March 1, 2019, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

The Fund was able to successfully meet its monthly distributions under its managed distribution policy without the return of capital.

Effective December 11, 2024, the Fund changed its name and adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,747,319,270
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	866
Total Management Fee Paid	$6,862,755
Portfolio Turnover Rate	349.54%

HOW HAS THE FUND CHANGED?

Effective September 1, 2025, the Fund’s principal investment strategies were changed to reflect the Fund’s increased investments in collateralized mortgage obligations.

Related risk disclosure was added to the prospectus.

Effective September 30, 2025, Benjamin Cryer and Thomas Runkel no longer serve as portfolio managers of the Fund and Albert Chan was added as a portfolio manager of the Fund.

Effective May 8, 2025, the investment manager contractually agreed to waive fees and/or reimburse operating expenses (excluding the Rule 12b-1 fees and certain non-routine expenses or costs, such as those relating to litigation, indemnification, reorganizations and liquidations) for the Fund so that the ratio of total annual fund operating expenses will not exceed 0.47% for each share class except Class R6 and 0.37% for Class R6 until August 31, 2026.

Additionally, effective May 8, 2025, the Fund’s contractual management fee schedule was reduced to a fee equal to an annual rate based on the value of the Fund’s average daily net assets, as follows: 0.350% up to and including $5 billion; 0.330% over $5 billion up to and including $10 billion; 0.310% over $10 billion up to and including $20 billion; and 0.290% over $20 billion.

This is a summary of certain changes and planned changes to the Fund since May 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by September 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or prospectus.us.franklintempleton@fisglobal.com.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

You will receive the Fund’s shareholder 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 shareholder reports 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) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.


Franklin Core Plus Bond Fund
Class C [FSGCX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$113	1.11%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Core Plus Bond Fund returned 4.35%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.06% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweight allocation to high-yield (HY) and investment-grade (IG) corporate bonds, agency mortgage-backed securities (MBS), commercial MBS and sovereign emerging market debt.
↑	Out-of-index exposure to residential MBS and collateralized loan obligations (CLOs).
↑	Exposure to the five-, 20- and 30-year portions of the yield curve.


Top detractors from performance:
↓	Security selection in HY corporate bonds, senior secured floating-rate bank loans and IG corporate bonds.
↓	Exposure to the 10-year segment of the yield curve.

Use of derivatives and the impact on performance:

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	4.35	1.40	2.40
Class C (with sales charge)	3.35	1.40	2.40
Bloomberg U.S. Aggregate Index	4.06	0.18	1.67

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

The Fund was able to successfully meet its monthly distributions under its managed distribution policy without the return of capital.

Effective December 11, 2024, the Fund changed its name and adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,747,319,270
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	866
Total Management Fee Paid	$6,862,755
Portfolio Turnover Rate	349.54%

HOW HAS THE FUND CHANGED?

Effective September 1, 2025, the Fund’s principal investment strategies were changed to reflect the Fund’s increased investments in collateralized mortgage obligations.

Related risk disclosure was added to the prospectus.

Effective September 30, 2025, Benjamin Cryer and Thomas Runkel no longer serve as portfolio managers of the Fund and Albert Chan was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Core Plus Bond Fund
Class R [FKSRX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$98	0.96%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R shares of Franklin Core Plus Bond Fund returned 4.67%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.06% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweight allocation to high-yield (HY) and investment-grade (IG) corporate bonds, agency mortgage-backed securities (MBS), commercial MBS and sovereign emerging market debt.
↑	Out-of-index exposure to residential MBS and collateralized loan obligations (CLOs).
↑	Exposure to the five-, 20- and 30-year portions of the yield curve.


Top detractors from performance:
↓	Security selection in HY corporate bonds, senior secured floating-rate bank loans and IG corporate bonds.
↓	Exposure to the 10-year segment of the yield curve.

Use of derivatives and the impact on performance:

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R	4.67	1.56	2.56
Bloomberg U.S. Aggregate Index	4.06	0.18	1.67

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

The Fund was able to successfully meet its monthly distributions under its managed distribution policy without the return of capital.

Effective December 11, 2024, the Fund changed its name and adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,747,319,270
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	866
Total Management Fee Paid	$6,862,755
Portfolio Turnover Rate	349.54%

WHAT DID THE FUND INVEST IN? (as of April 30, 2026)

Portfolio Composition^*^,^† (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective September 1, 2025, the Fund’s principal investment strategies were changed to reflect the Fund’s increased investments in collateralized mortgage obligations.

Related risk disclosure was added to the prospectus.

Effective September 30, 2025, Benjamin Cryer and Thomas Runkel no longer serve as portfolio managers of the Fund and Albert Chan was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Core Plus Bond Fund
Class R6 [FGKNX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$37	0.36%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Core Plus Bond Fund returned 5.27%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.06% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweight allocation to high-yield (HY) and investment-grade (IG) corporate bonds, agency mortgage-backed securities (MBS), commercial MBS and sovereign emerging market debt.
↑	Out-of-index exposure to residential MBS and collateralized loan obligations (CLOs).
↑	Exposure to the five-, 20- and 30-year portions of the yield curve.


Top detractors from performance:
↓	Security selection in HY corporate bonds, senior secured floating-rate bank loans and IG corporate bonds.
↓	Exposure to the 10-year segment of the yield curve.

Use of derivatives and the impact on performance:

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	5.27	2.20	3.19
Bloomberg U.S. Aggregate Index	4.06	0.18	1.67

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

The Fund was able to successfully meet its monthly distributions under its managed distribution policy without the return of capital.

Effective December 11, 2024, the Fund changed its name and adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,747,319,270
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	866
Total Management Fee Paid	$6,862,755
Portfolio Turnover Rate	349.54%

WHAT DID THE FUND INVEST IN? (as of April 30, 2026)

Portfolio Composition^*^,^† (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective September 1, 2025, the Fund’s principal investment strategies were changed to reflect the Fund’s increased investments in collateralized mortgage obligations.

Related risk disclosure was added to the prospectus.

Effective September 30, 2025, Benjamin Cryer and Thomas Runkel no longer serve as portfolio managers of the Fund and Albert Chan was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Core Plus Bond Fund
Advisor Class [FKSAX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$47	0.46%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Core Plus Bond Fund returned 5.04%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.06% for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Overweight allocation to high-yield (HY) and investment-grade (IG) corporate bonds, agency mortgage-backed securities (MBS), commercial MBS and sovereign emerging market debt.
↑	Out-of-index exposure to residential MBS and collateralized loan obligations (CLOs).
↑	Exposure to the five-, 20- and 30-year portions of the yield curve.


Top detractors from performance:
↓	Security selection in HY corporate bonds, senior secured floating-rate bank loans and IG corporate bonds.
↓	Exposure to the 10-year segment of the yield curve.

Use of derivatives and the impact on performance:

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	5.04	2.06	3.05
Bloomberg U.S. Aggregate Index	4.06	0.18	1.67

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

The Fund was able to successfully meet its monthly distributions under its managed distribution policy without the return of capital.

Effective December 11, 2024, the Fund changed its name and adopted its current investment strategy.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,747,319,270
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)	866
Total Management Fee Paid	$6,862,755
Portfolio Turnover Rate	349.54%

WHAT DID THE FUND INVEST IN? (as of April 30, 2026)

Portfolio Composition^*^,^† (% of Total Investments)

HOW HAS THE FUND CHANGED?

Effective September 1, 2025, the Fund’s principal investment strategies were changed to reflect the Fund’s increased investments in collateralized mortgage obligations.

Related risk disclosure was added to the prospectus.

Effective September 30, 2025, Benjamin Cryer and Thomas Runkel no longer serve as portfolio managers of the Fund and Albert Chan was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Growth Opportunities Fund
Class A [FGRAX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Growth Opportunities Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$97	0.88%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Growth Opportunities Fund returned 20.74%. The Fund compares its performance to the Russell 3000 Growth Index and the S&P 500 Index, which returned 30.98% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	In the communications services sector, Google parent company Alphabet was a leading relative contributor. The company saw a favorable resolution to its antitrust trial and benefited from the positive impacts of artificial intelligence (AI) on its business.
↑	The Fund benefited most from stock selection in the information technology (IT) sector. Within IT, Monolithic Power Systems was the leading contributor to relative returns. Shares of the analog semiconductor manufacturer advanced sharply amid growing confidence around AI infrastructure-related demand, capped by sharp earnings beat and guidance raise.
↑	In the industrials sector, an off index holding in private company Space Exploration Technologies (SpaceX) was a leading contributor to relative returns. The merger with xAI boosted the private market share price of the company, and expectations increased around a 2026 initial public offering for the aerospace and technology company.


Top detractors from performance:
↓	By sector, stock selection in communication services sector was the largest detractor from relative returns. Among individual detractors, in the IT sector, underweight in AI chip designer NVIDIA held back relative returns. The company continued to benefit from increased AI infrastructure spending, and demand for its advanced chips remained strong across cloud computing, data centers and enterprise AI applications. NVIDIA was the largest position in the Fund on an absolute basis, but the Fund was underweighted on a relative basis due to position size constraints.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was a leading detractor. The nutrition products company reported shrinking profit margins and saw increased competition in the protein shake category. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	In the industrials sector, Axon shares fell as investors expressed concerns about near-term margin pressure from higher investment spending, even though the company continued to report strong revenue growth and solid demand from public safety agencies.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	20.74	6.62	13.94
Class A (with sales charge)	14.10	5.43	13.30
Russell 3000 Index	31.01	11.91	14.76
Russell 3000 Growth Index	30.98	13.23	17.82
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$4,394,400,813
Total Number of Portfolio Holdings	92
Total Management Fee Paid	$24,181,309
Portfolio Turnover Rate	39.14%


Franklin Growth Opportunities Fund
Class C [FKACX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$180	1.64%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Growth Opportunities Fund returned 19.82%. The Fund compares its performance to the Russell 3000 Growth Index and the S&P 500 Index, which returned 30.98% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	In the communications services sector, Google parent company Alphabet was a leading relative contributor. The company saw a favorable resolution to its antitrust trial and benefited from the positive impacts of artificial intelligence (AI) on its business.
↑	The Fund benefited most from stock selection in the information technology (IT) sector. Within IT, Monolithic Power Systems was the leading contributor to relative returns. Shares of the analog semiconductor manufacturer advanced sharply amid growing confidence around AI infrastructure-related demand, capped by sharp earnings beat and guidance raise.
↑	In the industrials sector, an off index holding in private company Space Exploration Technologies (SpaceX) was a leading contributor to relative returns. The merger with xAI boosted the private market share price of the company, and expectations increased around a 2026 initial public offering for the aerospace and technology company.


Top detractors from performance:
↓	By sector, stock selection in communication services sector was the largest detractor from relative returns. Among individual detractors, in the IT sector, underweight in AI chip designer NVIDIA held back relative returns. The company continued to benefit from increased AI infrastructure spending, and demand for its advanced chips remained strong across cloud computing, data centers and enterprise AI applications. NVIDIA was the largest position in the Fund on an absolute basis, but the Fund was underweighted on a relative basis due to position size constraints.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was a leading detractor. The nutrition products company reported shrinking profit margins and saw increased competition in the protein shake category. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	In the industrials sector, Axon shares fell as investors expressed concerns about near-term margin pressure from higher investment spending, even though the company continued to report strong revenue growth and solid demand from public safety agencies.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	19.82	5.83	13.09
Class C (with sales charge)	18.92	5.83	13.09
Russell 3000 Index	31.01	11.91	14.76
Russell 3000 Growth Index	30.98	13.23	17.82
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$4,394,400,813
Total Number of Portfolio Holdings	92
Total Management Fee Paid	$24,181,309
Portfolio Turnover Rate	39.14%


Franklin Growth Opportunities Fund
Class R [FKARX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$126	1.14%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R shares of Franklin Growth Opportunities Fund returned 20.42%. The Fund compares its performance to the Russell 3000 Growth Index and the S&P 500 Index, which returned 30.98% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	In the communications services sector, Google parent company Alphabet was a leading relative contributor. The company saw a favorable resolution to its antitrust trial and benefited from the positive impacts of artificial intelligence (AI) on its business.
↑	The Fund benefited most from stock selection in the information technology (IT) sector. Within IT, Monolithic Power Systems was the leading contributor to relative returns. Shares of the analog semiconductor manufacturer advanced sharply amid growing confidence around AI infrastructure-related demand, capped by sharp earnings beat and guidance raise.
↑	In the industrials sector, an off index holding in private company Space Exploration Technologies (SpaceX) was a leading contributor to relative returns. The merger with xAI boosted the private market share price of the company, and expectations increased around a 2026 initial public offering for the aerospace and technology company.


Top detractors from performance:
↓	By sector, stock selection in communication services sector was the largest detractor from relative returns. Among individual detractors, in the IT sector, underweight in AI chip designer NVIDIA held back relative returns. The company continued to benefit from increased AI infrastructure spending, and demand for its advanced chips remained strong across cloud computing, data centers and enterprise AI applications. NVIDIA was the largest position in the Fund on an absolute basis, but the Fund was underweighted on a relative basis due to position size constraints.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was a leading detractor. The nutrition products company reported shrinking profit margins and saw increased competition in the protein shake category. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	In the industrials sector, Axon shares fell as investors expressed concerns about near-term margin pressure from higher investment spending, even though the company continued to report strong revenue growth and solid demand from public safety agencies.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R	20.42	6.35	13.66
Russell 3000 Index	31.01	11.91	14.76
Russell 3000 Growth Index	30.98	13.23	17.82
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$4,394,400,813
Total Number of Portfolio Holdings	92
Total Management Fee Paid	$24,181,309
Portfolio Turnover Rate	39.14%


Franklin Growth Opportunities Fund
Class R6 [FOPPX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$63	0.57%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Growth Opportunities Fund returned 21.11%. The Fund compares its performance to the Russell 3000 Growth Index and the S&P 500 Index, which returned 30.98% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	In the communications services sector, Google parent company Alphabet was a leading relative contributor. The company saw a favorable resolution to its antitrust trial and benefited from the positive impacts of artificial intelligence (AI) on its business.
↑	The Fund benefited most from stock selection in the information technology (IT) sector. Within IT, Monolithic Power Systems was the leading contributor to relative returns. Shares of the analog semiconductor manufacturer advanced sharply amid growing confidence around AI infrastructure-related demand, capped by sharp earnings beat and guidance raise.
↑	In the industrials sector, an off index holding in private company Space Exploration Technologies (SpaceX) was a leading contributor to relative returns. The merger with xAI boosted the private market share price of the company, and expectations increased around a 2026 initial public offering for the aerospace and technology company.


Top detractors from performance:
↓	By sector, stock selection in communication services sector was the largest detractor from relative returns. Among individual detractors, in the IT sector, underweight in AI chip designer NVIDIA held back relative returns. The company continued to benefit from increased AI infrastructure spending, and demand for its advanced chips remained strong across cloud computing, data centers and enterprise AI applications. NVIDIA was the largest position in the Fund on an absolute basis, but the Fund was underweighted on a relative basis due to position size constraints.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was a leading detractor. The nutrition products company reported shrinking profit margins and saw increased competition in the protein shake category. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	In the industrials sector, Axon shares fell as investors expressed concerns about near-term margin pressure from higher investment spending, even though the company continued to report strong revenue growth and solid demand from public safety agencies.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	21.11	6.97	14.35
Russell 3000 Index	31.01	11.91	14.76
Russell 3000 Growth Index	30.98	13.23	17.82
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$4,394,400,813
Total Number of Portfolio Holdings	92
Total Management Fee Paid	$24,181,309
Portfolio Turnover Rate	39.14%


Franklin Growth Opportunities Fund
Advisor Class [FRAAX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$70	0.63%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Growth Opportunities Fund returned 21.04%. The Fund compares its performance to the Russell 3000 Growth Index and the S&P 500 Index, which returned 30.98% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	In the communications services sector, Google parent company Alphabet was a leading relative contributor. The company saw a favorable resolution to its antitrust trial and benefited from the positive impacts of artificial intelligence (AI) on its business.
↑	The Fund benefited most from stock selection in the information technology (IT) sector. Within IT, Monolithic Power Systems was the leading contributor to relative returns. Shares of the analog semiconductor manufacturer advanced sharply amid growing confidence around AI infrastructure-related demand, capped by sharp earnings beat and guidance raise.
↑	In the industrials sector, an off index holding in private company Space Exploration Technologies (SpaceX) was a leading contributor to relative returns. The merger with xAI boosted the private market share price of the company, and expectations increased around a 2026 initial public offering for the aerospace and technology company.


Top detractors from performance:
↓	By sector, stock selection in communication services sector was the largest detractor from relative returns. Among individual detractors, in the IT sector, underweight in AI chip designer NVIDIA held back relative returns. The company continued to benefit from increased AI infrastructure spending, and demand for its advanced chips remained strong across cloud computing, data centers and enterprise AI applications. NVIDIA was the largest position in the Fund on an absolute basis, but the Fund was underweighted on a relative basis due to position size constraints.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was a leading detractor. The nutrition products company reported shrinking profit margins and saw increased competition in the protein shake category. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	In the industrials sector, Axon shares fell as investors expressed concerns about near-term margin pressure from higher investment spending, even though the company continued to report strong revenue growth and solid demand from public safety agencies.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	21.04	6.89	14.23
Russell 3000 Index	31.01	11.91	14.76
Russell 3000 Growth Index	30.98	13.23	17.82
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$4,394,400,813
Total Number of Portfolio Holdings	92
Total Management Fee Paid	$24,181,309
Portfolio Turnover Rate	39.14%


Franklin Natural Resources Fund
Class A [FRNRX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Natural Resources Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$127	0.96%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Natural Resources Fund returned 64.73%. The Fund compares its performance to the S&P North American Natural Resources Sector Index and the S&P Global Natural Resources Index, which returned 53.73% and 49.88%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Among metals producers, exceptionally strong gains for overweighted or off-benchmark positions in the diversified metals and mining industry, including rare earth development and production companies like Aclara Resources, MP Materials and Lindian Resources (purchased during the period); Copper-focused producers like Lundin Mining, ERO Copper and Antofagasta; and gold miners such as Barrick Mining and Newmont. Many of these stocks more than doubled in value as prices for copper, gold, silver, and other metals rose to all-time or multiyear highs.
↑	In the energy sector, beneficial underweighting and stock selection in the oil and gas storage and transportation industry (led by a much lighter-than-index exposure to Enbridge); overweighting and stock selection in oilfield services, where the Fund’s holdings collectively increased more than 100%; and effective stock selection in integrated oil and gas, as well as oil and gas exploration and production.
↑	Triple-digit percentage gains for select off-benchmark industry allocations, including specialty chemicals (led by key contributor Albemarle); electrical components and equipment (led by T1 Energy); and heavy electrical equipment (led by GE Vernova).


Top detractors from performance:
↓	Benchmark-lagging gains for off-index positions in Linde, as well as Air Products and Chemicals, in the industrial gases industry and, to a lesser extent, Corteva and Nutrien in fertilizers and agricultural chemicals.
↓	Underweighted exposures to select oil and gas refining and marketing companies that rallied well beyond the benchmark averages, including key detractor Valero Energy. Relative returns were further pressured by underweighting’s in other energy-related outliers to the upside, including uranium fuel producer Cameco and drilling contractor Baker Hughes.
↓	Negative returns in some of the Fund’s single-asset, off-benchmark industry allocations, with the detractors focused on water infrastructure plays such as Badger Meter (electronic equipment and instruments industry) and Xylem (industrial machinery, supplies and components).

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	64.73	20.21	8.15
Class A (with sales charge)	55.67	18.86	7.54
Russell 3000 Index	31.01	11.91	14.76
S&P North American Natural Resources Sector Index	53.73	20.81	10.34
S&P Global Natural Resources Index	49.88	12.01	10.96

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$538,915,982
Total Number of Portfolio Holdings	100
Total Management Fee Paid	$1,953,759
Portfolio Turnover Rate	27.09%


Franklin Natural Resources Fund
Class C [FNCRX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$225	1.71%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Natural Resources Fund returned 63.49%. The Fund compares its performance to the S&P North American Natural Resources Sector Index and the S&P Global Natural Resources Index, which returned 53.73% and 49.88%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Among metals producers, exceptionally strong gains for overweighted or off-benchmark positions in the diversified metals and mining industry, including rare earth development and production companies like Aclara Resources, MP Materials and Lindian Resources (purchased during the period); Copper-focused producers like Lundin Mining, ERO Copper and Antofagasta; and gold miners such as Barrick Mining and Newmont. Many of these stocks more than doubled in value as prices for copper, gold, silver, and other metals rose to all-time or multiyear highs.
↑	In the energy sector, beneficial underweighting and stock selection in the oil and gas storage and transportation industry (led by a much lighter-than-index exposure to Enbridge); overweighting and stock selection in oilfield services, where the Fund’s holdings collectively increased more than 100%; and effective stock selection in integrated oil and gas, as well as oil and gas exploration and production.
↑	Triple-digit percentage gains for select off-benchmark industry allocations, including specialty chemicals (led by key contributor Albemarle); electrical components and equipment (led by T1 Energy); and heavy electrical equipment (led by GE Vernova).


Top detractors from performance:
↓	Benchmark-lagging gains for off-index positions in Linde, as well as Air Products and Chemicals, in the industrial gases industry and, to a lesser extent, Corteva and Nutrien in fertilizers and agricultural chemicals.
↓	Underweighted exposures to select oil and gas refining and marketing companies that rallied well beyond the benchmark averages, including key detractor Valero Energy. Relative returns were further pressured by underweighting’s in other energy-related outliers to the upside, including uranium fuel producer Cameco and drilling contractor Baker Hughes.
↓	Negative returns in some of the Fund’s single-asset, off-benchmark industry allocations, with the detractors focused on water infrastructure plays such as Badger Meter (electronic equipment and instruments industry) and Xylem (industrial machinery, supplies and components).

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	63.49	19.31	7.34
Class C (with sales charge)	62.49	19.31	7.34
Russell 3000 Index	31.01	11.91	14.76
S&P North American Natural Resources Sector Index	53.73	20.81	10.34
S&P Global Natural Resources Index	49.88	12.01	10.96

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$538,915,982
Total Number of Portfolio Holdings	100
Total Management Fee Paid	$1,953,759
Portfolio Turnover Rate	27.09%


Franklin Natural Resources Fund
Class R6 [FNCSX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$78	0.59%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Natural Resources Fund returned 65.36%. The Fund compares its performance to the S&P North American Natural Resources Sector Index and the S&P Global Natural Resources Index, which returned 53.73% and 49.88%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Among metals producers, exceptionally strong gains for overweighted or off-benchmark positions in the diversified metals and mining industry, including rare earth development and production companies like Aclara Resources, MP Materials and Lindian Resources (purchased during the period); Copper-focused producers like Lundin Mining, ERO Copper and Antofagasta; and gold miners such as Barrick Mining and Newmont. Many of these stocks more than doubled in value as prices for copper, gold, silver, and other metals rose to all-time or multiyear highs.
↑	In the energy sector, beneficial underweighting and stock selection in the oil and gas storage and transportation industry (led by a much lighter-than-index exposure to Enbridge); overweighting and stock selection in oilfield services, where the Fund’s holdings collectively increased more than 100%; and effective stock selection in integrated oil and gas, as well as oil and gas exploration and production.
↑	Triple-digit percentage gains for select off-benchmark industry allocations, including specialty chemicals (led by key contributor Albemarle); electrical components and equipment (led by T1 Energy); and heavy electrical equipment (led by GE Vernova).


Top detractors from performance:
↓	Benchmark-lagging gains for off-index positions in Linde, as well as Air Products and Chemicals, in the industrial gases industry and, to a lesser extent, Corteva and Nutrien in fertilizers and agricultural chemicals.
↓	Underweighted exposures to select oil and gas refining and marketing companies that rallied well beyond the benchmark averages, including key detractor Valero Energy. Relative returns were further pressured by underweighting’s in other energy-related outliers to the upside, including uranium fuel producer Cameco and drilling contractor Baker Hughes.
↓	Negative returns in some of the Fund’s single-asset, off-benchmark industry allocations, with the detractors focused on water infrastructure plays such as Badger Meter (electronic equipment and instruments industry) and Xylem (industrial machinery, supplies and components).

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	65.36	20.70	8.64
Russell 3000 Index	31.01	11.91	14.76
S&P North American Natural Resources Sector Index	53.73	20.81	10.34
S&P Global Natural Resources Index	49.88	12.01	10.96

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$538,915,982
Total Number of Portfolio Holdings	100
Total Management Fee Paid	$1,953,759
Portfolio Turnover Rate	27.09%


Franklin Natural Resources Fund
Advisor Class [FNRAX]
Annual Shareholder Report \| April 30, 2026

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$93	0.70%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Natural Resources Fund returned 65.18%. The Fund compares its performance to the S&P North American Natural Resources Sector Index and the S&P Global Natural Resources Index, which returned 53.73% and 49.88%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	Among metals producers, exceptionally strong gains for overweighted or off-benchmark positions in the diversified metals and mining industry, including rare earth development and production companies like Aclara Resources, MP Materials and Lindian Resources (purchased during the period); Copper-focused producers like Lundin Mining, ERO Copper and Antofagasta; and gold miners such as Barrick Mining and Newmont. Many of these stocks more than doubled in value as prices for copper, gold, silver, and other metals rose to all-time or multiyear highs.
↑	In the energy sector, beneficial underweighting and stock selection in the oil and gas storage and transportation industry (led by a much lighter-than-index exposure to Enbridge); overweighting and stock selection in oilfield services, where the Fund’s holdings collectively increased more than 100%; and effective stock selection in integrated oil and gas, as well as oil and gas exploration and production.
↑	Triple-digit percentage gains for select off-benchmark industry allocations, including specialty chemicals (led by key contributor Albemarle); electrical components and equipment (led by T1 Energy); and heavy electrical equipment (led by GE Vernova).


Top detractors from performance:
↓	Benchmark-lagging gains for off-index positions in Linde, as well as Air Products and Chemicals, in the industrial gases industry and, to a lesser extent, Corteva and Nutrien in fertilizers and agricultural chemicals.
↓	Underweighted exposures to select oil and gas refining and marketing companies that rallied well beyond the benchmark averages, including key detractor Valero Energy. Relative returns were further pressured by underweighting’s in other energy-related outliers to the upside, including uranium fuel producer Cameco and drilling contractor Baker Hughes.
↓	Negative returns in some of the Fund’s single-asset, off-benchmark industry allocations, with the detractors focused on water infrastructure plays such as Badger Meter (electronic equipment and instruments industry) and Xylem (industrial machinery, supplies and components).

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	65.18	20.52	8.42
Russell 3000 Index	31.01	11.91	14.76
S&P North American Natural Resources Sector Index	53.73	20.81	10.34
S&P Global Natural Resources Index	49.88	12.01	10.96

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$538,915,982
Total Number of Portfolio Holdings	100
Total Management Fee Paid	$1,953,759
Portfolio Turnover Rate	27.09%


Franklin Small Cap Growth Fund
Class A [FSGRX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Small Cap Growth Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$123	1.07%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Small Cap Growth Fund returned 30.13%. The Fund compares its performance to the Russell 2000 Growth Index and the S&P 500 Index, which returned 42.64% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	By sector, the largest contributor to relative returns was stock selection in the health care sector. However, the largest individual contributors all came from the information technology (IT) sector. An off-benchmark position in phototonics specialist Lumentum Holdings led relative contributors after the company reported strong fiscal second quarter 2026 financial results and upbeat forward guidance, driven by surging demand for artificial intelligence (AI) data center optics.
↑	Semiconductor manufacturer SiTime also advanced relative returns. Shares in the company, which makes precision timing chips, soared late in the period after the company posted strong revenue growth amid increased demand from AI data centers.
↑	Onto Innovation supported relative returns. The process control solutions company benefited from surging demand for advanced semiconductor packaging and metrology tools driven by AI chip growth.


Top detractors from performance:
↓	Stock selection and an overweight in the consumer staples sector held back relative returns. Within the sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	Within IT, a broader market pivot away from software stocks had a negative impact on shares of software development platform GitLab, despite the company’s positive earnings reports.
↓	In the health care sector, relative performance was hurt by a position in health care software company Phreesia. The company reduced guidance for 2027, reporting that it is losing visibility into spending commitments from some of its clients.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	30.13	0.99	11.19
Class A (with sales charge)	22.96	-0.14	10.57
Russell 3000 Index	31.01	11.91	14.76
Russell 2000 Growth Index	42.64	4.00	11.19
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,435,287,399
Total Number of Portfolio Holdings	129
Total Management Fee Paid	$15,084,958
Portfolio Turnover Rate	48.01%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund and Jacob Swartz was added as a portfolio manager of the Fund.

This is a summary of certain changes to the Fund since May 1, 2025. For more complete information, you may review the Fund’s current prospectus and any applicable supplements and the Fund’s next prospectus, which we expect to be available by September 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or
prospectus.us.franklintempleton@fisglobal.com.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small Cap Growth Fund
Class C [FCSGX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$209	1.82%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Small Cap Growth Fund returned 29.21%. The Fund compares its performance to the Russell 2000 Growth Index and the S&P 500 Index, which returned 42.64% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	By sector, the largest contributor to relative returns was stock selection in the health care sector. However, the largest individual contributors all came from the information technology (IT) sector. An off-benchmark position in phototonics specialist Lumentum Holdings led relative contributors after the company reported strong fiscal second quarter 2026 financial results and upbeat forward guidance, driven by surging demand for artificial intelligence (AI) data center optics.
↑	Semiconductor manufacturer SiTime also advanced relative returns. Shares in the company, which makes precision timing chips, soared late in the period after the company posted strong revenue growth amid increased demand from AI data centers.
↑	Onto Innovation supported relative returns. The process control solutions company benefited from surging demand for advanced semiconductor packaging and metrology tools driven by AI chip growth.


Top detractors from performance:
↓	Stock selection and an overweight in the consumer staples sector held back relative returns. Within the sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	Within IT, a broader market pivot away from software stocks had a negative impact on shares of software development platform GitLab, despite the company’s positive earnings reports.
↓	In the health care sector, relative performance was hurt by a position in health care software company Phreesia. The company reduced guidance for 2027, reporting that it is losing visibility into spending commitments from some of its clients.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	29.21	0.26	10.38
Class C (with sales charge)	28.21	0.26	10.38
Russell 3000 Index	31.01	11.91	14.76
Russell 2000 Growth Index	42.64	4.00	11.19
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,435,287,399
Total Number of Portfolio Holdings	129
Total Management Fee Paid	$15,084,958
Portfolio Turnover Rate	48.01%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund and Jacob Swartz was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small Cap Growth Fund
Class R [FSSRX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$152	1.32%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R shares of Franklin Small Cap Growth Fund returned 29.79%. The Fund compares its performance to the Russell 2000 Growth Index and the S&P 500 Index, which returned 42.64% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	By sector, the largest contributor to relative returns was stock selection in the health care sector. However, the largest individual contributors all came from the information technology (IT) sector. An off-benchmark position in phototonics specialist Lumentum Holdings led relative contributors after the company reported strong fiscal second quarter 2026 financial results and upbeat forward guidance, driven by surging demand for artificial intelligence (AI) data center optics.
↑	Semiconductor manufacturer SiTime also advanced relative returns. Shares in the company, which makes precision timing chips, soared late in the period after the company posted strong revenue growth amid increased demand from AI data centers.
↑	Onto Innovation supported relative returns. The process control solutions company benefited from surging demand for advanced semiconductor packaging and metrology tools driven by AI chip growth.


Top detractors from performance:
↓	Stock selection and an overweight in the consumer staples sector held back relative returns. Within the sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	Within IT, a broader market pivot away from software stocks had a negative impact on shares of software development platform GitLab, despite the company’s positive earnings reports.
↓	In the health care sector, relative performance was hurt by a position in health care software company Phreesia. The company reduced guidance for 2027, reporting that it is losing visibility into spending commitments from some of its clients.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R	29.79	0.74	10.91
Russell 3000 Index	31.01	11.91	14.76
Russell 2000 Growth Index	42.64	4.00	11.19
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,435,287,399
Total Number of Portfolio Holdings	129
Total Management Fee Paid	$15,084,958
Portfolio Turnover Rate	48.01%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund and Jacob Swartz was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small Cap Growth Fund
Class R6 [FSMLX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$76	0.66%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Small Cap Growth Fund returned 30.66%. The Fund compares its performance to the Russell 2000 Growth Index and the S&P 500 Index, which returned 42.64% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	By sector, the largest contributor to relative returns was stock selection in the health care sector. However, the largest individual contributors all came from the information technology (IT) sector. An off-benchmark position in phototonics specialist Lumentum Holdings led relative contributors after the company reported strong fiscal second quarter 2026 financial results and upbeat forward guidance, driven by surging demand for artificial intelligence (AI) data center optics.
↑	Semiconductor manufacturer SiTime also advanced relative returns. Shares in the company, which makes precision timing chips, soared late in the period after the company posted strong revenue growth amid increased demand from AI data centers.
↑	Onto Innovation supported relative returns. The process control solutions company benefited from surging demand for advanced semiconductor packaging and metrology tools driven by AI chip growth.


Top detractors from performance:
↓	Stock selection and an overweight in the consumer staples sector held back relative returns. Within the sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	Within IT, a broader market pivot away from software stocks had a negative impact on shares of software development platform GitLab, despite the company’s positive earnings reports.
↓	In the health care sector, relative performance was hurt by a position in health care software company Phreesia. The company reduced guidance for 2027, reporting that it is losing visibility into spending commitments from some of its clients.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	30.66	1.40	11.65
Russell 3000 Index	31.01	11.91	14.76
Russell 2000 Growth Index	42.64	4.00	11.19
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,435,287,399
Total Number of Portfolio Holdings	129
Total Management Fee Paid	$15,084,958
Portfolio Turnover Rate	48.01%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund and Jacob Swartz was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small Cap Growth Fund
Advisor Class [FSSAX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$95	0.82%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Small Cap Growth Fund returned 30.50%. The Fund compares its performance to the Russell 2000 Growth Index and the S&P 500 Index, which returned 42.64% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	By sector, the largest contributor to relative returns was stock selection in the health care sector. However, the largest individual contributors all came from the information technology (IT) sector. An off-benchmark position in phototonics specialist Lumentum Holdings led relative contributors after the company reported strong fiscal second quarter 2026 financial results and upbeat forward guidance, driven by surging demand for artificial intelligence (AI) data center optics.
↑	Semiconductor manufacturer SiTime also advanced relative returns. Shares in the company, which makes precision timing chips, soared late in the period after the company posted strong revenue growth amid increased demand from AI data centers.
↑	Onto Innovation supported relative returns. The process control solutions company benefited from surging demand for advanced semiconductor packaging and metrology tools driven by AI chip growth.


Top detractors from performance:
↓	Stock selection and an overweight in the consumer staples sector held back relative returns. Within the sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.
↓	Within IT, a broader market pivot away from software stocks had a negative impact on shares of software development platform GitLab, despite the company’s positive earnings reports.
↓	In the health care sector, relative performance was hurt by a position in health care software company Phreesia. The company reduced guidance for 2027, reporting that it is losing visibility into spending commitments from some of its clients.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	30.50	1.25	11.47
Russell 3000 Index	31.01	11.91	14.76
Russell 2000 Growth Index	42.64	4.00	11.19
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$2,435,287,399
Total Number of Portfolio Holdings	129
Total Management Fee Paid	$15,084,958
Portfolio Turnover Rate	48.01%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund and Jacob Swartz was added as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small-Mid Cap Growth Fund
Class A [FRSGX]
Annual Shareholder Report \| April 30, 2026

This annual shareholder report contains important information about Franklin Small-Mid Cap Growth Fund for the period May 1, 2025, to April 30, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class A	$90	0.84%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class A shares of Franklin Small-Mid Cap Growth Fund returned 14.38%. The Fund compares its performance to the Russell Midcap Growth Index and the S&P 500 Index, which returned 12.86% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	The Fund was helped most by stock selection in the information technology (IT) sector, where an off-benchmark holding in Arteris was a leading relative contributor. The company, which develops network-on-chip (NoC) technology, has been a beneficiary of the artificial intelligence (AI) chip boom, and has seen strong adoption of its Smart NoC product.
↑	Also in IT, Lattice Semiconductor lifted relative returns. The chipmaker reported solid fourth-quarter 2025 financial results and issued strong forward guidance, highlighting accelerating growth in AI and data-center applications.
↑	In the industrials sector, nuclear power components supplier BWX Technologies was a contributor. Shares in the company traded higher on the back of strong operational momentum and major national security contracts.


Top detractors from performance:
↓	Stock selection in the industrials sector weighed on relative returns over the period. Within the sector, data analytics and risk assessment firm, Verisk, was a leading detractor as investors worried that generative AI tools could weaken traditional data and analytics businesses.
↓	In financials, alternative asset manager Blue Owl Capital hampered relative returns. The company put a cap on withdrawals after investors tried to pull over $5 billion from two key funds, amid concerns about unregulated private lending markets.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT ($9,450 AFTER MAXIMUM APPLICABLE SALES CHARGE) –
Class A 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class A	14.38	0.50	10.62
Class A (with sales charge)	8.08	-0.63	9.99
Russell 3000 Index	31.01	11.91	14.76
Russell Midcap Growth Index	12.86	5.54	12.40
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

Performance for periods prior to September 10, 2018, has been restated to reflect the current maximum sales charge, which is lower than the maximum sales charge prior to that date.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$3,532,752,879
Total Number of Portfolio Holdings	87
Total Management Fee Paid	$16,900,774
Portfolio Turnover Rate	32.96%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small-Mid Cap Growth Fund
Class C [FRSIX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class C	$170	1.59%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class C shares of Franklin Small-Mid Cap Growth Fund returned 13.55%. The Fund compares its performance to the Russell Midcap Growth Index and the S&P 500 Index, which returned 12.86% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	The Fund was helped most by stock selection in the information technology (IT) sector, where an off-benchmark holding in Arteris was a leading relative contributor. The company, which develops network-on-chip (NoC) technology, has been a beneficiary of the artificial intelligence (AI) chip boom, and has seen strong adoption of its Smart NoC product.
↑	Also in IT, Lattice Semiconductor lifted relative returns. The chipmaker reported solid fourth-quarter 2025 financial results and issued strong forward guidance, highlighting accelerating growth in AI and data-center applications.
↑	In the industrials sector, nuclear power components supplier BWX Technologies was a contributor. Shares in the company traded higher on the back of strong operational momentum and major national security contracts.


Top detractors from performance:
↓	Stock selection in the industrials sector weighed on relative returns over the period. Within the sector, data analytics and risk assessment firm, Verisk, was a leading detractor as investors worried that generative AI tools could weaken traditional data and analytics businesses.
↓	In financials, alternative asset manager Blue Owl Capital hampered relative returns. The company put a cap on withdrawals after investors tried to pull over $5 billion from two key funds, amid concerns about unregulated private lending markets.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class C 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class C	13.55	-0.25	9.79
Class C (with sales charge)	12.60	-0.25	9.79
Russell 3000 Index	31.01	11.91	14.76
Russell Midcap Growth Index	12.86	5.54	12.40
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$3,532,752,879
Total Number of Portfolio Holdings	87
Total Management Fee Paid	$16,900,774
Portfolio Turnover Rate	32.96%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small-Mid Cap Growth Fund
Class R [FSMRX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R	$117	1.09%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R shares of Franklin Small-Mid Cap Growth Fund returned 14.07%. The Fund compares its performance to the Russell Midcap Growth Index and the S&P 500 Index, which returned 12.86% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	The Fund was helped most by stock selection in the information technology (IT) sector, where an off-benchmark holding in Arteris was a leading relative contributor. The company, which develops network-on-chip (NoC) technology, has been a beneficiary of the artificial intelligence (AI) chip boom, and has seen strong adoption of its Smart NoC product.
↑	Also in IT, Lattice Semiconductor lifted relative returns. The chipmaker reported solid fourth-quarter 2025 financial results and issued strong forward guidance, highlighting accelerating growth in AI and data-center applications.
↑	In the industrials sector, nuclear power components supplier BWX Technologies was a contributor. Shares in the company traded higher on the back of strong operational momentum and major national security contracts.


Top detractors from performance:
↓	Stock selection in the industrials sector weighed on relative returns over the period. Within the sector, data analytics and risk assessment firm, Verisk, was a leading detractor as investors worried that generative AI tools could weaken traditional data and analytics businesses.
↓	In financials, alternative asset manager Blue Owl Capital hampered relative returns. The company put a cap on withdrawals after investors tried to pull over $5 billion from two key funds, amid concerns about unregulated private lending markets.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R	14.07	0.26	10.35
Russell 3000 Index	31.01	11.91	14.76
Russell Midcap Growth Index	12.86	5.54	12.40
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$3,532,752,879
Total Number of Portfolio Holdings	87
Total Management Fee Paid	$16,900,774
Portfolio Turnover Rate	32.96%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small-Mid Cap Growth Fund
Class R6 [FMGGX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Class R6	$54	0.50%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Class R6 shares of Franklin Small-Mid Cap Growth Fund returned 14.79%. The Fund compares its performance to the Russell Midcap Growth Index and the S&P 500 Index, which returned 12.86% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	The Fund was helped most by stock selection in the information technology (IT) sector, where an off-benchmark holding in Arteris was a leading relative contributor. The company, which develops network-on-chip (NoC) technology, has been a beneficiary of the artificial intelligence (AI) chip boom, and has seen strong adoption of its Smart NoC product.
↑	Also in IT, Lattice Semiconductor lifted relative returns. The chipmaker reported solid fourth-quarter 2025 financial results and issued strong forward guidance, highlighting accelerating growth in AI and data-center applications.
↑	In the industrials sector, nuclear power components supplier BWX Technologies was a contributor. Shares in the company traded higher on the back of strong operational momentum and major national security contracts.


Top detractors from performance:
↓	Stock selection in the industrials sector weighed on relative returns over the period. Within the sector, data analytics and risk assessment firm, Verisk, was a leading detractor as investors worried that generative AI tools could weaken traditional data and analytics businesses.
↓	In financials, alternative asset manager Blue Owl Capital hampered relative returns. The company put a cap on withdrawals after investors tried to pull over $5 billion from two key funds, amid concerns about unregulated private lending markets.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Class R6 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Class R6	14.79	0.86	11.05
Russell 3000 Index	31.01	11.91	14.76
Russell Midcap Growth Index	12.86	5.54	12.40
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$3,532,752,879
Total Number of Portfolio Holdings	87
Total Management Fee Paid	$16,900,774
Portfolio Turnover Rate	32.96%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING


Franklin Small-Mid Cap Growth Fund
Advisor Class [FSGAX]
Annual Shareholder Report \| April 30, 2026

This report describes changes to the Fund that occurred during the reporting period.

WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)


Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment^*
Advisor Class	$63	0.59%

*	Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher.

HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?

For the twelve months ended April 30, 2026, Advisor Class shares of Franklin Small-Mid Cap Growth Fund returned 14.69%. The Fund compares its performance to the Russell Midcap Growth Index and the S&P 500 Index, which returned 12.86% and 31.05%, respectively, for the same period.

PERFORMANCE HIGHLIGHTS


Top contributors to performance:
↑	The Fund was helped most by stock selection in the information technology (IT) sector, where an off-benchmark holding in Arteris was a leading relative contributor. The company, which develops network-on-chip (NoC) technology, has been a beneficiary of the artificial intelligence (AI) chip boom, and has seen strong adoption of its Smart NoC product.
↑	Also in IT, Lattice Semiconductor lifted relative returns. The chipmaker reported solid fourth-quarter 2025 financial results and issued strong forward guidance, highlighting accelerating growth in AI and data-center applications.
↑	In the industrials sector, nuclear power components supplier BWX Technologies was a contributor. Shares in the company traded higher on the back of strong operational momentum and major national security contracts.


Top detractors from performance:
↓	Stock selection in the industrials sector weighed on relative returns over the period. Within the sector, data analytics and risk assessment firm, Verisk, was a leading detractor as investors worried that generative AI tools could weaken traditional data and analytics businesses.
↓	In financials, alternative asset manager Blue Owl Capital hampered relative returns. The company put a cap on withdrawals after investors tried to pull over $5 billion from two key funds, amid concerns about unregulated private lending markets.
↓	In the consumer staples sector, an off-benchmark holding in BellRing Brands was the leading detractor. The nutrition products company reported shrinking profit margins and decreasing demand for its protein shakes. Retailer inventory adjustments and reduced full year 2025 guidance were also headwinds for the company.

HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?

VALUE OF A $10,000 INVESTMENT – Advisor Class 4/30/2016 — 4/30/2026

AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended April 30, 2026


	1 Year	5 Year	10 Year
Advisor Class	14.69	0.75	10.89
Russell 3000 Index	31.01	11.91	14.76
Russell Midcap Growth Index	12.86	5.54	12.40
S&P 500 Index	31.05	13.14	15.26

Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/mutual-funds.

Important data provider notices and terms available at www.franklintempletondatasources.com.

KEY FUND STATISTICS (as of April 30, 2026)


Total Net Assets	$3,532,752,879
Total Number of Portfolio Holdings	87
Total Management Fee Paid	$16,900,774
Portfolio Turnover Rate	32.96%

HOW HAS THE FUND CHANGED?

Effective December 31, 2025, Michael McCarthy no longer served as a portfolio manager of the Fund.


	WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
	Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
	• prospectus • proxy voting information • financial information • holdings • tax information

HOUSEHOLDING

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(f) Pursuant to Item 19(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.

The Board of Trustees of the Registrant has determined that Mary C. Choksi, possesses the technical attributes identified in Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mary C. Choksi as the Audit Committee’s financial expert. Mary C. Choksi is an “independent” Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending April 30, 2025 and April 30, 2026 (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $433,006 in April 30, 2025 and $473,742 in April 30, 2026.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in April 30, 2025 and $0 in April 30, 2026.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $60,750 in April 30, 2025 and $60,750 in April 30, 2026. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by 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 (“Service Affiliates”) during the Reporting Periods that required pre-approval by the Audit Committee.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in April 30, 2025 and $0 in April 30, 2026.

There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Registrant’s Audit Committee is directly responsible for approving the services to be provided by the Auditors, including:

(ii) pre-approval of all non-audit related services to be provided to the Registrant by the Auditors;

(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates 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.

(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $377,023 in April 30, 2025 and $1,690,011 in April 30, 2026.

(h) Yes. The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$116.24

$132.38

$112.50

$101.90

$163.50

Income

from

investment

operations

Net

investment

(loss)

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

(0.67)

(0.44)

(0.48)

(0.47)

(0.75)

Net

realized

and

unrealized

gains

(losses)

...........

75.98

(3.94)

20.36

11.21

(43.17)

Total

from

investment

operations

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

75.31

(4.38)

19.88

10.74

(43.92)

Less

distributions

from:

Net

investment

income

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

(3.50)

—

(0.14)

(1.01)

Net

realized

gains

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

(14.42)

(11.76)

—

(16.67)

Total

distributions

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

(17.92)

(11.76)

—

(0.14)

(17.68)

Net

asset

value,

end

year

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

$173.63

$116.24

$132.38

$112.50

$101.90

Total

return

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

65.28%

(3.64)%

17.67%

10.58%

(28.56)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.02%

1.05%

1.06%

1.04%

Expenses

net

waiver

and

payments

affiliates

.......

1.01%

1.04%

1.06%

1.04%

d,e

Net

investment

(loss)

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

(0.45)%

(0.33)%

(0.41)%

(0.45)%

(0.54)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$861,886

$588,965

$705,301

$686,534

$705,915

Portfolio

turnover

rate

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

37.62%

21.87%

35.87%

24.08%

26.25%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$104.63

$121.21

$103.78

$94.59

$152.95

Income

from

investment

operations

Net

investment

(loss)

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

(1.60)

(1.31)

(1.26)

(1.16)

(1.51)

Net

realized

and

unrealized

gains

(losses)

...........

68.13

(3.51)

18.69

10.35

(40.18)

Total

from

investment

operations

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

66.53

(4.82)

17.43

9.19

(41.69)

Less

distributions

from:

Net

investment

income

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

(2.61)

—

Net

realized

gains

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

(14.42)

(11.76)

—

(16.67)

Total

distributions

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

(17.03)

(11.76)

—

(16.67)

Net

asset

value,

end

year

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

$154.13

$104.63

$121.21

$103.78

$94.59

Total

return

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

64.06%

(4.36)%

16.80%

9.75%

(29.00)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.77%

1.80%

1.81%

1.66%

Expenses

net

waiver

and

payments

affiliates

.......

1.76%

1.79%

1.81%

1.66%

d,e

Net

investment

(loss)

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

(1.20)%

(1.07)%

(1.16)%

(1.20)%

(1.16)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$22,572

$17,197

$27,332

$29,573

$33,905

Portfolio

turnover

rate

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

37.62%

21.87%

35.87%

24.08%

26.25%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$124.93

$140.93

$119.33

$108.06

$172.21

Income

from

investment

operations

Net

investment

income

(loss)

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

(0.18)

0.04

(0.06)

(0.08)

(0.23)

Net

realized

and

unrealized

gains

(losses)

...........

81.85

(4.28)

21.66

11.94

(45.64)

Total

from

investment

operations

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

81.67

(4.24)

21.60

11.86

(45.87)

Less

distributions

from:

Net

investment

income

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

(3.98)

—

(0.59)

(1.61)

Net

realized

gains

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

(14.42)

(11.76)

—

(16.67)

Total

distributions

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

(18.40)

(11.76)

—

(0.59)

(18.28)

Net

asset

value,

end

year

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

$188.20

$124.93

$140.93

$119.33

$108.06

Total

return

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

65.86%

(3.31)%

18.10%

11.03%

(28.29)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.78%

0.76%

0.80%

0.74%

Expenses

net

waiver

and

payments

affiliates

.......

0.67%

0.66%

0.68%

0.65%

0.66%

Net

investment

income

(loss)

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

(0.11)%

0.03%

(0.05)%

(0.08)%

(0.16)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$13,158

$6,758

$10,333

$11,692

$9,614

Portfolio

turnover

rate

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

37.62%

21.87%

35.87%

24.08%

26.25%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Biotechnology

Discovery

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$122.62

$138.67

$117.54

$106.46

$169.95

Income

from

investment

operations

Net

investment

(loss)

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

(0.31)

(0.09)

(0.19)

(0.22)

(0.42)

Net

realized

and

unrealized

gains

(losses)

...........

80.26

(4.20)

21.32

11.72

(44.99)

Total

from

investment

operations

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

79.95

(4.29)

21.13

11.50

(45.41)

Less

distributions

from:

Net

investment

income

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

(3.81)

—

(0.42)

(1.41)

Net

realized

gains

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

(14.42)

(11.76)

—

(16.67)

Total

distributions

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

(18.23)

(11.76)

—

(0.42)

(18.08)

Net

asset

value,

end

year

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

$184.34

$122.62

$138.67

$117.54

$106.46

Total

return

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

65.70%

(3.41)%

17.98%

10.86%

(28.39)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.77%

0.80%

0.81%

0.79%

Expenses

net

waiver

and

payments

affiliates

.......

0.76%

0.79%

0.81%

0.79%

c,d

Net

investment

(loss)

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

(0.20)%

(0.07)%

(0.15)%

(0.20)%

(0.29)%

Supplemental

data

Net

assets

end

year

(000’s)

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

$139,744

$94,497

$131,350

$110,607

$110,726

Portfolio

turnover

rate

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

37.62%

21.87%

35.87%

24.08%

26.25%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

95.5%

Biotechnology

76.1%

Abivax

ADR

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

France

141,080

16,559,970

a,b,c

Achieve

Life

Sciences,

Inc.

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

United

States

706,649

2,976,339

a,d

Achieve

Life

Sciences,

Inc.

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

United

States

1,575,682

6,917,244

a,c

Acumen

Pharmaceuticals,

Inc.

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

United

States

223,305

533,699

Acumen

Pharmaceuticals,

Inc.

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

United

States

826,400

1,975,096

Adicet

Bio,

Inc.

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

United

States

225,186

1,700,154

Alkermes

plc

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

United

States

232,937

7,852,306

Alnylam

Pharmaceuticals,

Inc.

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

United

States

54,138

16,755,170

Amgen,

Inc.

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

United

States

141,974

49,158,497

Apogee

Therapeutics,

Inc.

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

United

States

82,737

6,858,070

Arcutis

Biotherapeutics,

Inc.

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

United

States

505,651

11,741,216

Argenx

ADR

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

Netherlands

48,962

38,274,575

a,d

Artiva

Biotherapeutics,

Inc.

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

South

Korea

192,871

1,974,999

Ascendis

Pharma

A/S

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

Denmark

129,742

29,760,220

a,d

Aura

Biosciences,

Inc.

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

United

States

765,617

5,397,600

a,d

Avalo

Therapeutics,

Inc.

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

United

States

111,577

1,495,132

Avalyn

Pharma,

Inc.

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

United

States

137,059

4,041,870

Benitec

Biopharma,

Inc.

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

Australia

995,152

11,991,582

BeOne

Medicines

Ltd.

ADR

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

United

States

33,421

9,868,219

Bicara

Therapeutics,

Inc.

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

United

States

387,402

8,360,135

BioNTech

ADR

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

Germany

73,400

7,593,230

Bridgebio

Pharma,

Inc.

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

United

States

241,119

17,145,972

a,d

Cardiff

Oncology,

Inc.

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

United

States

438,961

759,402

oncology,

Inc.

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

United

States

188,240

12,563,138

Cytokinetics,

Inc.

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

United

States

161,063

10,303,200

Dianthus

Therapeutics,

Inc.

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

United

States

270,799

23,776,152

Dyne

Therapeutics,

Inc.

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

United

States

519,232

9,112,522

a,d

Eikon

Therapeutics,

Inc.

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

United

States

127,376

1,224,720

enGene

Therapeutics,

Inc.

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

Canada

486,579

3,537,429

Gilead

Sciences,

Inc.

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

United

States

368,999

48,279,829

GRAIL,

Inc.

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

United

States

46,433

2,529,670

Ideaya

Biosciences,

Inc.

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

United

States

81,852

2,381,893

a,d

Immix

Biopharma,

Inc.

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

United

States

357,034

3,188,314

a,d

IN8bio,

Inc.

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

United

States

332,083

488,162

Insmed,

Inc.

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

United

States

214,314

29,217,428

a,d

Inventiva

SACA

ADR

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

France

969,588

4,973,986

Ionis

Pharmaceuticals,

Inc.

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

United

States

205,400

15,355,704

Jade

Biosciences,

Inc.

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

United

States

148,736

3,629,158

a,d

Kailera

Therapeutics,

Inc.

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

United

States

146,385

3,659,625

Mineralys

Therapeutics,

Inc.

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

United

States

567,545

15,125,074

Mirum

Pharmaceuticals,

Inc.

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

United

States

215,190

20,940,139

Neurocrine

Biosciences,

Inc.

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

United

States

135,273

17,811,396

a,d

Newamsterdam

Pharma

Co.

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

Netherlands

187,726

5,361,455

Nuvalent,

Inc.

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

United

States

75,535

7,574,650

Olema

Pharmaceuticals,

Inc.

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

United

States

379,464

5,468,076

ORIC

Pharmaceuticals,

Inc.

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

United

States

659,005

6,510,969

Oruka

Therapeutics,

Inc.

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

United

States

316,426

21,646,703

Palisade

Bio,

Inc.

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

United

States

2,119,910

4,239,820

Praxis

Precision

Medicines,

Inc.

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

United

States

81,426

25,961,052

PTC

Therapeutics,

Inc.

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

United

States

319,652

20,796,559

Regeneron

Pharmaceuticals,

Inc.

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

United

States

61,019

43,144,094

Relay

Therapeutics,

Inc.

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

United

States

237,869

3,082,782

Revolution

Medicines,

Inc.

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

United

States

202,430

29,174,212

Satellos

Bioscience,

Inc.

(

CAD

Traded)

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

Canada

96,830

766,314

Satellos

Bioscience,

Inc.

(

USD

Traded)

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

Canada

246,407

1,958,936

a,d

Sensei

Biotherapeutics,

Inc.

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

United

States

48,771

1,298,284

a,d

Sionna

Therapeutics,

Inc.

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

United

States

60,891

2,356,482

Solid

Biosciences,

Inc.

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

United

States

1,253,978

9,103,880

Franklin

Strategic

Series

Schedule

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

(continued)

Biotechnology

(continued)

Spyre

Therapeutics,

Inc.

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

United

States

323,584

24,090,829

Syndax

Pharmaceuticals,

Inc.

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

United

States

492,743

10,559,482

Tango

Therapeutics,

Inc.

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

United

States

447,635

9,677,869

Ultragenyx

Pharmaceutical,

Inc.

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

United

States

108,067

2,668,174

uniQure

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

Netherlands

175,121

3,493,664

Vaxcyte,

Inc.

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

United

States

145,674

8,338,380

Verastem,

Inc.

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

United

States

401,744

2,193,522

Vertex

Pharmaceuticals,

Inc.

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

United

States

97,436

41,642,198

Vicore

Pharma

Holding

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

Sweden

1,307,598

1,413,428

Xenon

Pharmaceuticals,

Inc.

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

Canada

123,767

6,935,903

Zentalis

Pharmaceuticals,

Inc.

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

United

States

440,039

1,764,556

789,010,509

Capital

Markets

0.1%

JATT

Acquisition

Corp.

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

United

States

146,753

1,542,374

Health

Care

Providers

Services

2.1%

Guardant

Health,

Inc.

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

United

States

248,985

21,681,614

Life

Sciences

Tools

Services

0.6%

Sartorius

Stedim

Biotech

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

France

10,100

1,866,598

Thermo

Fisher

Scientific,

Inc.

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

United

States

8,579

4,108,998

5,975,596

Pharmaceuticals

16.6%

Alto

Neuroscience,

Inc.

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

United

States

165,070

4,235,696

a,d

Alto

Neuroscience,

Inc.

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

United

States

240,205

6,163,661

Amylyx

Pharmaceuticals,

Inc.

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

United

States

649,259

10,388,144

AstraZeneca

plc

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

United

Kingdom

102,531

19,211,233

BioAge

Labs,

Inc.

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

United

States

90,709

1,528,447

Context

Therapeutics,

Inc.

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

United

States

1,398,833

3,301,246

Contineum

Therapeutics,

Inc.

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

United

States

676,121

8,667,871

Eli

Lilly

Co.

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

United

States

14,071

13,150,757

EyePoint,

Inc.

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

United

States

1,123,495

14,830,134

Indivior

Pharmaceuticals,

Inc.

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

United

States

332,496

12,229,203

Jazz

Pharmaceuticals

plc

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

United

States

283,073

57,469,480

a,d

LENZ

Therapeutics,

Inc.

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

United

States

176,891

1,588,481

Neumora

Therapeutics,

Inc.

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

United

States

186,984

461,851

Phathom

Pharmaceuticals,

Inc.

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

United

States

487,012

5,454,534

a,d

SpyGlass

Pharma,

Inc.

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

United

States

109,328

2,507,984

Structure

Therapeutics,

Inc.

ADR

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

United

States

136,424

5,654,775

a,d

VeraDermics,

Inc.

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

United

States

53,904

5,336,496

172,179,993

Total

Common

Stocks

(Cost

479,739,791

)

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

990,390,086

Convertible

Preferred

Stocks

0.9%

Biotechnology

0.7%

a,b,c

Ray

Therapeutics,

Inc.

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

United

States

1,389,029

3,399,269

a,b,c

Sensei

Biotherapeutics,

Inc.

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

United

States

132

3,363,564

6,762,833

Household

Products

0.2%

a,b,c

Candid,

Inc.

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

United

States

1,519,609

2,372,462

Total

Convertible

Preferred

Stocks

(Cost

7,322,109

)

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

9,135,295

Franklin

Strategic

Series

Schedule

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Preferred

Stocks

0.5%

Life

Sciences

Tools

Services

0.2%

Sartorius

.34

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

Germany

9,200

2,350,384

Real

Estate

Management

Development

0.3%

a,b,c

Lycia

LLC

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

Japan

859,370

3,017,588

Total

Preferred

Stocks

(Cost

5,938,609

)

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

5,367,972

Warrants

0.8%

Biotechnology

0.8%

a,b,c

Achieve

Life

Sciences,

Inc.

4/10/28

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

United

States

706,649

621,851

a,b

Achieve

Life

Sciences,

Inc.

6/26/30

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

United

States

698,900

1,235,342

a,b

Assembly

Biosciences,

Inc.

8/11/30

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

United

States

44,450

451,057

a,b

Assembly

Biosciences,

Inc.

12/31/26

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

United

States

44,450

28,190

a,b

Benitec

Biopharma,

Inc.

2/20/49

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

Australia

310,881

3,746,085

a,b,c

IN8bio,

Inc.

10/04/27

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

United

States

69,673

5,665

a,b

Palisade

Bio,

Inc.

10/01/30

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

United

States

1,447,549

2,894,953

8,983,143

Total

Warrants

(Cost

1,620,146

)

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

8,983,143

Escrows

and

Litigation

Trusts

0.1%

a,b

Carmot

Therapeutics,

Inc.,

Escrow

Account

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

United

States

83,100

534,289

Sanofi

SA,

Escrow

Account

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

France

2,333,755

—

Total

Escrows

and

Litigation

Trusts

(Cost

–

)

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

534,289

Total

Long

Term

Investments

(Cost

494,620,655

)

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

1,014,410,785

Short

Term

Investments

5.6%

Country

Value

Money

Market

Funds

2.5%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

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

United

States

25,985,537

Total

Money

Market

Funds

(Cost

25,985,537

)

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

25,985,537

Franklin

Strategic

Series

Schedule

Investments

Franklin

Biotechnology

Discovery

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Short

Term

Investments

(continued)

Country

Value

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

3.1%

Money

Market

Funds

3.1%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

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

United

States

31,626,763

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

31,626,763

)

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

31,626,763

Total

Short

Term

Investments

(Cost

57,612,300

)

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

57,612,300

Total

Investments

(Cost

552,232,955

)

103.4

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

$1,072,023,085

Other

Assets,

less

Liabilities

(

3.4

)

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

(34,662,815)

Net

Assets

100.0%

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

$1,037,360,270

See

Abbreviations

page

158.

Non-income

producing.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

See

Note

regarding

restricted

securities.

portion

all

the

security

loan

April

30,

2026.

See

Note

(

Variable

rate

security.

The

rate

shown

represents

the

yield

period

end.

See

Note

(

)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

See

Note

(

)

regarding

securities

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Core

Plus

Bond

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.27

$8.10

$8.23

$8.55

$9.44

Income

from

investment

operations

Net

investment

income

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

0.37

0.38

0.37

0.36

0.29

Net

realized

and

unrealized

gains

(losses)

...........

0.02

0.18

(0.12)

(0.31)

(0.84)

Total

from

investment

operations

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

0.39

0.56

0.25

0.05

(0.55)

Less

distributions

from:

Net

investment

income

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

(0.36)

(0.39)

(0.38)

(0.37)

(0.34)

Net

asset

value,

end

year

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

$8.30

$8.27

$8.10

$8.23

$8.55

Total

return

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

4.78%

6.98%

3.12%

0.73%

(6.07)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.80%

0.90%

0.94%

0.90%

Expenses

net

waiver

and

payments

affiliates

.......

0.71%

0.85%

0.91%

0.89%

0.84%

Net

investment

income

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

4.44%

4.64%

4.55%

4.34%

3.11%

Supplemental

data

Net

assets

end

year

(000’s)

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

$2,044,094

$1,989,034

$2,079,060

$2,285,374

$2,609,533

Portfolio

turnover

rate

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

349.54%

156.08%

65.73%

69.77%

52.98%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

156.76%

84.71%

55.51%

e,f

69.77%

41.46%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.28

$8.11

$8.23

$8.55

$9.44

Income

from

investment

operations

Net

investment

income

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

0.34

0.35

0.34

0.32

0.25

Net

realized

and

unrealized

gains

(losses)

...........

0.02

0.17

(0.12)

(0.30)

(0.84)

Total

from

investment

operations

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

0.36

0.52

0.22

0.02

(0.59)

Less

distributions

from:

Net

investment

income

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

(0.33)

(0.35)

(0.34)

(0.30)

Net

asset

value,

end

year

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

$8.31

$8.28

$8.11

$8.23

$8.55

Total

return

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

4.35%

6.53%

2.80%

0.30%

(6.48)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.20%

1.30%

1.34%

1.29%

Expenses

net

waiver

and

payments

affiliates

.......

1.11%

1.26%

1.31%

1.29%

1.24%

Net

investment

income

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

4.03%

4.24%

4.14%

3.92%

2.70%

Supplemental

data

Net

assets

end

year

(000’s)

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

$45,168

$49,796

$64,894

$100,037

$171,374

Portfolio

turnover

rate

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

349.54%

156.08%

65.73%

69.77%

52.98%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

156.76%

84.71%

55.51%

e,f

69.77%

41.46%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.23

$8.06

$8.19

$8.51

$9.40

Income

from

investment

operations

Net

investment

income

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

0.35

0.36

0.35

0.33

0.27

Net

realized

and

unrealized

gains

(losses)

...........

0.02

0.18

(0.12)

(0.30)

(0.85)

Total

from

investment

operations

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

0.37

0.54

0.23

0.03

(0.58)

Less

distributions

from:

Net

investment

income

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

(0.34)

(0.37)

(0.36)

(0.35)

(0.31)

Net

asset

value,

end

year

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

$8.26

$8.23

$8.06

$8.19

$8.51

Total

return

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

4.67%

6.62%

2.87%

0.48%

(6.33)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.05%

1.15%

1.19%

1.15%

Expenses

net

waiver

and

payments

affiliates

.......

0.96%

1.10%

1.16%

1.14%

1.09%

Net

investment

income

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

4.19%

4.39%

4.30%

4.09%

2.86%

Supplemental

data

Net

assets

end

year

(000’s)

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

$33,525

$34,949

$36,034

$40,939

$48,447

Portfolio

turnover

rate

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

349.54%

156.08%

65.73%

69.77%

52.98%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

156.76%

84.71%

55.51%

d,e

69.77%

41.46%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.28

$8.11

$8.24

$8.56

$9.45

Income

from

investment

operations

Net

investment

income

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

0.40

0.41

0.40

0.39

0.32

Net

realized

and

unrealized

gains

(losses)

...........

0.03

0.18

(0.12)

(0.31)

(0.84)

Total

from

investment

operations

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

0.43

0.59

0.28

0.08

(0.52)

Less

distributions

from:

Net

investment

income

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

(0.39)

(0.42)

(0.41)

(0.40)

(0.37)

Net

asset

value,

end

year

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

$8.32

$8.28

$8.11

$8.24

$8.56

Total

return

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

5.27%

7.35%

3.49%

1.12%

(5.72)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.45%

0.56%

0.58%

0.55%

Expenses

net

waiver

and

payments

affiliates

.......

0.36%

0.50%

0.55%

0.51%

0.48%

Net

investment

income

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

4.79%

4.99%

4.92%

4.73%

3.47%

Supplemental

data

Net

assets

end

year

(000’s)

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

$282,964

$130,729

$133,098

$132,950

$136,184

Portfolio

turnover

rate

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

349.54%

156.08%

65.73%

69.77%

52.98%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

156.76%

84.71%

55.51%

d,e

69.77%

41.46%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

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

$8.28

$8.11

$8.24

$8.56

$9.45

Income

from

investment

operations

Net

investment

income

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

0.39

0.41

0.39

0.38

0.31

Net

realized

and

unrealized

gains

(losses)

...........

0.02

0.17

(0.12)

(0.31)

(0.84)

Total

from

investment

operations

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

0.41

0.58

0.27

0.07

(0.53)

Less

distributions

from:

Net

investment

income

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

(0.38)

(0.41)

(0.40)

(0.39)

(0.36)

Net

asset

value,

end

year

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

$8.31

$8.28

$8.11

$8.24

$8.56

Total

return

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

5.04%

7.24%

3.37%

0.98%

(5.83)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.55%

0.65%

0.69%

0.65%

Expenses

net

waiver

and

payments

affiliates

.......

0.46%

0.60%

0.66%

0.64%

0.59%

Net

investment

income

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

4.68%

4.89%

4.80%

4.59%

3.36%

Supplemental

data

Net

assets

end

year

(000’s)

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

$341,568

$263,738

$272,301

$311,142

$390,465

Portfolio

turnover

rate

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

349.54%

156.08%

65.73%

69.77%

52.98%

Portfolio

turnover

rate

excluding

mortgage

dollar

rolls

....

156.76%

84.71%

55.51%

d,e

69.77%

41.46%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

1(f)

regarding

mortgage

dollar

rolls.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Core

Plus

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

0.1%

Machinery

0.1%

UTEX

Industries,

Inc.

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

United

States

16,788

738,049

Oil,

Gas

Consumable

Fuels

0.0%

†

Amplify

Energy

Corp.

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

United

States

5,288

33,843

Birch

Permian

Holdings,

Inc.

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

United

States

46,176

267,821

301,664

Total

Common

Stocks

(Cost

$11,360,259)

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

1,039,713

Principal

Amount

Corporate

Bonds

38.6%

Aerospace

Defense

1.1%

Axon

Enterprise,

Inc.

Senior

Note,

144A,

6.125%,

3/15/30

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

United

States

1,000,000

1,025,016

Senior

Note,

144A,

6.25%,

3/15/33

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

United

States

750,000

770,078

Boeing

Co.

(The)

Senior

Bond,

3.625%,

2/01/31

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

United

States

5,000,000

4,771,338

Senior

Bond,

6.875%,

3/15/39

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

United

States

2,600,000

2,883,003

Senior

Note,

5.15%,

5/01/30

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

United

States

8,100,000

8,232,960

Bombardier,

Inc.

Senior

Note

144A,

6.75

6/15/33

.........

Canada

1,025,000

1,070,052

Efesto

Bidco

SpA

Efesto

LLC

Senior

Secured

Note

144A,

7.5

2/15/32

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

Italy

1,600,000

1,595,551

Honeywell

Aerospace,

Inc.

Senior

Bond,

144A,

4.95%,

3/16/36

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

United

States

2,020,000

1,997,843

Senior

Bond,

144A,

5.732%,

3/16/56

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

United

States

1,150,000

1,131,875

Senior

Bond,

144A,

5.852%,

3/16/66

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

United

States

770,000

758,494

Senior

Note,

144A,

4.6%,

3/16/33

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

United

States

1,010,000

997,586

Howmet

Aerospace,

Inc.

Senior

Bond,

4.75%,

4/15/36

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

United

States

2,250,000

2,186,554

Senior

Note,

4.85%,

10/15/31

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

United

States

2,100,000

2,118,620

29,538,970

Air

Freight

Logistics

0.0%

†

FedEx

Corp.

Senior

Bond

4.05

2/15/48

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

United

States

1,200,000

909,258

Automobile

Components

0.1%

Forvia

Senior

Note

144A,

6.75

9/15/33

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

France

2,830,000

2,839,614

Automobiles

0.3%

Hyundai

Capital

America

Senior

Note,

144A,

5.35%,

3/19/29

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

United

States

1,300,000

1,323,679

Senior

Note,

144A,

4.75%,

9/26/31

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

United

States

6,000,000

5,952,364

7,276,043

Banks

4.8%

ABN

AMRO

Bank

Senior

Non-Preferred

Note

144A,

6.339%

9/17/26,

FRN

thereafter

9/18/27

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

Netherlands

2,100,000

2,114,761

Banco

Santander

Sub.

Bond

2.749

12/03/30

.........

Spain

3,000,000

2,714,288

Bank

America

Corp.

Senior

Bond,

2.299%

7/20/31,

FRN

thereafter,

7/21/32

...

United

States

3,500,000

3,096,719

Senior

Bond,

4.571%

4/26/32,

FRN

thereafter,

4/27/33

...

United

States

8,000,000

7,874,810

Sub.

Bond,

3.846%

3/07/32,

FRN

thereafter,

3/08/37

.....

United

States

1,434,000

1,332,564

Banque

Federative

Credit

Mutuel

Senior

Preferred

Note

144A,

4.541

1/15/31

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

France

2,070,000

2,046,445

BPCE

Senior

Non-Preferred

Note

144A,

2.045%

10/18/26,

FRN

thereafter

10/19/27

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

France

7,900,000

7,810,970

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Banks

(continued)

Citigroup,

Inc.

Senior

Bond

4.412%

3/30/30,

FRN

thereafter

3/31/31

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

United

States

5,600,000

5,539,991

Fifth

Third

Bancorp

Senior

Note

5.631%

1/28/31,

FRN

thereafter

1/29/32

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

United

States

7,300,000

7,538,047

HSBC

Holdings

plc

Senior

Bond,

2.848%

6/03/30,

FRN

thereafter,

6/04/31

...

United

Kingdom

8,300,000

7,689,339

Senior

Note,

5.21%

8/10/27,

FRN

thereafter,

8/11/28

.....

United

Kingdom

5,850,000

5,898,578

Huntington

Bancshares,

Inc.

Senior

Bond

5.709%

2/01/34,

FRN

thereafter

2/02/35

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

United

States

7,300,000

7,473,184

JPMorgan

Chase

Co.

Senior

Bond,

2.522%

4/21/30,

FRN

thereafter,

4/22/31

...

United

States

9,400,000

8,693,278

Senior

Bond,

1.953%

2/03/31,

FRN

thereafter,

2/04/32

...

United

States

3,400,000

3,000,967

Senior

Bond,

5.336%

1/22/34,

FRN

thereafter,

1/23/35

...

United

States

2,500,000

2,534,809

Sub.

Bond,

5.576%

7/22/35,

FRN

thereafter,

7/23/36

.....

United

States

1,620,000

1,644,284

Mizuho

Financial

Group,

Inc.

Senior

Note

5.778%

7/05/28,

FRN

thereafter

7/06/29

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

Japan

5,100,000

5,237,979

Royal

Bank

Canada

Senior

Note

5.2

8/01/28

..........

Canada

1,800,000

1,833,938

Santander

Group

Holdings

plc

Senior

Note

1.673%

6/23/26,

FRN

thereafter

6/14/27

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

United

Kingdom

6,700,000

6,675,406

Societe

Generale

Senior

Non-Preferred

Bond,

144A,

2.889%

6/08/31,

FRN

thereafter,

6/09/32

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

France

7,500,000

6,762,598

Senior

Non-Preferred

Note,

144A,

1.792%

6/08/26,

FRN

thereafter,

6/09/27

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

France

7,200,000

7,178,996

Toronto-Dominion

Bank

(The)

Senior

Note

4.693

9/15/27

...

Canada

9,900,000

9,954,277

UniCredit

SpA

Senior

Preferred

Bond

144A,

3.127%

6/02/31,

FRN

thereafter

6/03/32

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

Italy

5,300,000

4,885,875

Wells

Fargo

Co.

Senior

Note,

6.303%

10/22/28,

FRN

thereafter,

10/23/29

United

States

7,400,000

7,704,007

Senior

Note,

5.198%

1/22/29,

FRN

thereafter,

1/23/30

....

United

States

4,400,000

4,475,098

131,711,208

Beverages

0.0%

†

Keurig

Dr.

Pepper,

Inc.

Senior

Bond

5.3

3/15/34

.........

United

States

1,330,000

1,327,410

Biotechnology

0.5%

AbbVie,

Inc.

Senior

Bond,

4.75%,

3/15/36

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

United

States

520,000

508,676

Senior

Note,

4.4%,

3/15/33

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

United

States

1,510,000

1,482,798

Amgen,

Inc.

Senior

Bond,

4.2%,

3/01/33

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

United

States

4,000,000

3,863,207

Senior

Bond,

5.25%,

3/02/33

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

United

States

6,600,000

6,756,043

Genmab

A/S

Genmab

Finance

LLC

Senior

Secured

Note

144A,

6.25

12/15/32

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

Denmark

2,230,000

2,289,820

14,900,544

Broadline

Retail

0.3%

Amazon.com,

Inc.

Senior

Bond,

4.875%,

3/13/36

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

United

States

1,829,000

1,802,877

Senior

Bond,

5.8%,

3/13/56

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

United

States

260,000

256,082

Senior

Bond,

6.05%,

3/13/76

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

United

States

1,636,000

1,613,250

Senior

Note,

4.55%,

3/13/33

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

United

States

1,235,000

1,220,564

a,c,d

K2016470219

South

Africa

Ltd.

Senior

Secured

Note

144A,

12/31/22

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

South

Africa

10,914,248

—

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Broadline

Retail

(continued)

a,c,d

K2016470260

South

Africa

Ltd.

Senior

Secured

Note

144A,

12/31/22

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

South

Africa

4,807,777

—

Wayfair

LLC

Senior

Secured

Note

144A,

7.25

10/31/29

....

United

States

2,500,000

2,563,532

7,456,305

Building

Products

0.3%

Carlisle

Cos.,

Inc.

Senior

Bond

5.25

9/15/35

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

United

States

665,000

668,599

North

America

Holdings,

Inc.

Senior

Secured

Note

144A,

5.875

1/31/31

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

United

States

475,000

475,152

Owens

Corning

Senior

Bond

5.7

6/15/34

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

United

States

7,300,000

7,573,553

8,717,304

Capital

Markets

2.6%

Deutsche

Bank

Senior

Preferred

Note

5.371

9/09/27

...

Germany

4,800,000

4,874,083

Goldman

Sachs

Group,

Inc.

(The)

Senior

Bond,

2.383%

7/20/31,

FRN

thereafter,

7/21/32

...

United

States

6,500,000

5,757,005

Senior

Bond,

5.536%

1/27/35,

FRN

thereafter,

1/28/36

...

United

States

9,800,000

9,964,461

Senior

Bond,

5.065%

1/20/36,

FRN

thereafter,

1/21/37

...

United

States

1,035,000

1,012,237

Senior

Note,

4.387%

6/14/26,

FRN

thereafter,

6/15/27

....

United

States

3,400,000

3,399,696

Senior

Note,

1.948%

10/20/26,

FRN

thereafter,

10/21/27

United

States

3,000,000

2,965,605

Senior

Note,

5.094%

4/19/33,

FRN

thereafter,

4/20/34

....

United

States

895,000

893,149

Jane

Street

Group

JSG

Finance,

Inc.

Senior

Secured

Note

144A,

6.125

11/01/32

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

United

States

3,600,000

3,620,979

Morgan

Stanley

Senior

Bond,

3.591%,

7/22/28

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

United

States

10,000,000

9,890,980

Senior

Bond,

1.794%

2/12/31,

FRN

thereafter,

2/13/32

...

United

States

5,000,000

4,353,024

Senior

Bond,

5.466%

1/17/34,

FRN

thereafter,

1/18/35

...

United

States

1,900,000

1,936,628

Senior

Bond,

5.073%

1/29/36,

FRN

thereafter,

1/30/37

...

United

States

1,585,000

1,551,454

Senior

Bond,

5.9%

3/12/46,

FRN

thereafter,

3/13/47

.....

United

States

1,615,000

1,618,931

Senior

Note,

4.493%

1/15/31,

FRN

thereafter,

1/16/32

....

United

States

1,555,000

1,530,420

Senior

Note,

4.708%

3/11/31,

FRN

thereafter,

3/12/32

....

United

States

2,325,000

2,307,571

Sub.

Bond,

5.948%

1/18/33,

FRN

thereafter,

1/19/38

.....

United

States

542,000

558,560

MSCI,

Inc.

Senior

Bond

144A,

3.25

8/15/33

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

United

States

11,800,000

10,345,681

Prologis

Targeted

Logistics

Fund

Senior

Note

144A,

5.25

4/01/29

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

United

States

2,400,000

2,447,541

StoneX

Group,

Inc.

Secured

Note

144A,

7.875

3/01/31

....

United

States

2,600,000

2,739,329

71,767,334

Chemicals

0.3%

Cerdia

Finanz

GmbH

Senior

Secured

Note

144A,

9.375

10/03/31

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

Germany

1,000,000

962,500

Element

Solutions,

Inc.

Senior

Note

144A,

3.875

9/01/28

...

United

States

3,000,000

2,926,790

FMC

Corp.

Sub.

Bond

8.45%

10/31/30,

FRN

thereafter

11/01/55

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

United

States

875,000

580,487

Rain

Carbon,

Inc.

Senior

Secured

Note

144A,

12.25

9/01/29

United

States

2,550,000

2,686,111

7,155,888

Commercial

Services

Supplies

0.5%

Neptune

Bidco

US,

Inc.

Senior

Secured

Note

144A,

9.5

2/15/33

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

United

States

800,000

801,635

Republic

Services,

Inc.

Senior

Note

5.15

3/15/35

.........

United

States

5,300,000

5,401,397

Donnelley

Sons

Co.

Senior

Secured

Note

144A,

9.5

8/01/29

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

United

States

2,000,000

2,066,020

Waste

Connections,

Inc.

Senior

Bond

4.8

7/15/36

........

United

States

1,895,000

1,855,795

Waste

Pro

USA,

Inc.

Senior

Note

144A,

2/01/33

........

United

States

800,000

816,964

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Commercial

Services

Supplies

(continued)

Wrangler

Holdco

Corp.

Senior

Note

144A,

6.625

4/01/32

...

Canada

2,500,000

2,581,020

13,522,831

Communications

Equipment

0.3%

Motorola

Solutions,

Inc.

Senior

Bond

5.4

4/15/34

.........

United

States

7,300,000

7,399,781

Construction

Engineering

0.1%

Arcosa,

Inc.

Senior

Note

144A,

4.375

4/15/29

...........

United

States

2,000,000

1,954,328

Consumer

Finance

1.6%

AerCap

Ireland

Capital

DAC

AerCap

Global

Aviation

Trust

Senior

Bond,

3.4%,

10/29/33

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

Ireland

7,700,000

6,845,494

Senior

Note,

4.125%,

2/28/29

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

Ireland

710,000

701,375

American

Express

Co.

Senior

Bond

5.442%

1/29/35,

FRN

thereafter

1/30/36

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

United

States

10,000,000

10,223,177

Avolon

Holdings

Funding

Ltd.

Senior

Note

144A,

4.9

10/10/30

Ireland

7,735,000

7,697,454

Capital

One

Financial

Corp.

Senior

Bond

5.268%

5/09/32,

FRN

thereafter

5/10/33

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

United

States

8,600,000

8,633,033

FirstCash,

Inc.

Senior

Note

144A,

6.875

3/01/32

.........

United

States

3,000,000

3,078,392

General

Motors

Financial

Co.,

Inc.

Senior

Bond,

5.45%,

9/06/34

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

United

States

1,265,000

1,265,078

Senior

Note,

4.2%,

10/27/28

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

United

States

815,000

808,488

Jefferson

Capital

Holdings

LLC

Senior

Note

144A,

8.25

5/15/30

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

United

States

3,000,000

3,141,123

OneMain

Finance

Corp.

Senior

Note

6.75

9/15/33

........

United

States

2,000,000

1,969,696

44,363,310

Consumer

Staples

Distribution

Retail

0.1%

Foods,

Inc.

Senior

Note

144A,

4.625

6/01/30

.........

United

States

2,300,000

2,251,194

Containers

Packaging

0.2%

AptarGroup,

Inc.

Senior

Note

4.75

3/30/31

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

United

States

1,550,000

1,539,563

Clydesdale

Acquisition

Holdings,

Inc.

Senior

Secured

Note

144A,

6.75

4/15/32

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

United

States

1,300,000

1,224,141

Toucan

FinCo

Ltd.

Toucan

FinCo

Can,

Inc.

Toucan

FinCo

LLC

Senior

Secured

Note

144A,

9.5

5/15/30

...........

Canada

500,000

438,559

WRKCo,

Inc.

Senior

Bond

6/15/33

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

United

States

3,600,000

3,168,733

6,370,996

Diversified

Consumer

Services

0.1%

Grand

Canyon

University

Secured

Note

5.125

10/01/28

....

United

States

1,700,000

1,688,571

Diversified

REITs

0.3%

Global

Net

Lease,

Inc.

Global

Net

Lease

Operating

Partnership

Senior

Note

144A,

3.75

12/15/27

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

United

States

3,000,000

2,934,215

VICI

Properties

Senior

Note

5.625

4/01/35

...........

United

States

5,000,000

5,018,152

7,952,367

Diversified

Telecommunication

Services

1.4%

APLD

ComputeCo

LLC

Senior

Secured

Note

144A,

6.75

3/15/31

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

United

States

1,545,000

1,530,624

APLD

ComputeCo

LLC

Senior

Secured

Note

144A,

9.25

12/15/30

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

United

States

2,100,000

2,258,361

AT&T,

Inc.

Senior

Bond,

2.55%,

12/01/33

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

United

States

5,000,000

4,228,974

Senior

Bond,

5.125%,

4/30/36

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

United

States

1,320,000

1,298,857

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Diversified

Telecommunication

Services

(continued)

AT&T,

Inc.,

(continued)

Senior

Bond,

6.2%,

10/30/56

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

United

States

1,150,000

1,139,975

Senior

Bond,

3.65%,

9/15/59

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

United

States

4,000,000

2,559,604

Black

Pearl

Compute

LLC

Senior

Secured

Note

144A,

6.125

2/15/31

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

United

States

900,000

914,254

CCO

Holdings

LLC

CCO

Holdings

Capital

Corp.

Senior

Bond

4.5

5/01/32

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

United

States

2,000,000

1,757,535

Cipher

Compute

LLC

Senior

Secured

Note

144A,

7.125

11/15/30

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

United

States

895,000

928,794

Comcast

Corp.

Senior

Bond

4.8

5/15/33

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

United

States

5,200,000

5,167,367

RNO

Property

Owner

LLC

Senior

Secured

Note

144A,

6.5

5/01/31

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

United

States

515,000

510,751

Michigan

Property

Owner

LLC

Senior

Secured

Bond

144A,

7.5

3/30/45

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

United

States

3,785,000

3,786,144

RNO

Property

Owner

LLC

Senior

Secured

Note

144A,

5.875

3/01/31

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

United

States

1,385,000

1,359,791

Verizon

Communications,

Inc.

Senior

Bond,

5.25%,

4/02/35

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

United

States

697,000

697,123

Senior

Note,

2.355%,

3/15/32

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

United

States

8,400,000

7,347,287

Senior

Note,

4.75%,

1/15/33

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

United

States

1,386,000

1,368,139

WULF

Compute

LLC

Senior

Secured

Note

144A,

7.75

10/15/30

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

United

States

1,310,000

1,377,609

38,231,189

Electric

Utilities

2.6%

American

Electric

Power

Co.,

Inc.

Junior

Sub.

Bond,

5.8%

3/14/31,

FRN

thereafter,

3/15/56

United

States

2,600,000

2,587,151

Junior

Sub.

Bond,

6.05%

3/14/36,

FRN

thereafter,

3/15/56

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

United

States

865,000

862,659

California

Buyer

Ltd.

Atlantica

Sustainable

Infrastructure

plc

Senior

Note

144A,

6.375

2/15/32

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

United

Kingdom

2,000,000

1,988,921

DTE

Electric

Co.

Senior

Bond,

5.25%,

5/15/35

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

United

States

740,000

750,779

Senior

Bond,

4.85%,

3/01/36

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

United

States

1,530,000

1,496,589

Duke

Energy

Corp.

Senior

Bond,

2.45%,

6/01/30

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

United

States

6,200,000

5,720,470

Senior

Bond,

3.75%,

9/01/46

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

United

States

1,600,000

1,179,350

Duke

Energy

Ohio,

Inc.

Senior

Bond

5.25

4/01/33

........

United

States

1,000,000

1,022,487

Enel

Finance

International

Senior

Note

144A,

4.375

9/30/30

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

Italy

2,770,000

2,725,470

Exelon

Corp.

Senior

Bond,

4.05%,

4/15/30

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

United

States

13,400,000

13,130,012

Senior

Bond,

4.45%,

4/15/46

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

United

States

1,400,000

1,150,667

NRG

Energy,

Inc.

Senior

Bond

144A,

1/15/36

..........

United

States

2,300,000

2,285,387

Pacific

Gas

and

Electric

Co.

Senior

Bond,

5.2%,

5/01/36

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

United

States

770,000

750,310

Senior

Secured

Bond,

3.25%,

6/01/31

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

United

States

6,000,000

5,557,790

Southern

Co.

(The)

Senior

Bond,

4.4%,

7/01/46

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

United

States

5,000,000

4,122,841

Senior

Note,

5.5%,

3/15/29

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

United

States

6,100,000

6,273,207

Virginia

Electric

and

Power

Co.

Senior

Bond,

4.95%,

3/15/36

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

United

States

2,970,000

2,896,597

Senior

Bond,

6.35%,

11/30/37

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

United

States

820,000

889,500

Vistra

Operations

Co.

LLC

Senior

Bond,

144A,

5.25%,

10/15/35

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

United

States

1,000,000

971,037

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Electric

Utilities

(continued)

Vistra

Operations

Co.

LLC,

(continued)

Senior

Note,

144A,

4.375%,

5/01/29

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

United

States

3,000,000

2,949,021

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

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

United

States

6,000,000

5,889,887

Xcel

Energy,

Inc.

Senior

Bond,

4.6%,

6/01/32

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

United

States

2,900,000

2,855,670

Senior

Bond,

5.45%,

8/15/33

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

United

States

4,500,000

4,598,273

72,654,075

Electrical

Equipment

0.2%

Eaton

Corp.

Senior

Bond

4.8

3/06/36

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

United

States

1,600,000

1,575,766

Vertiv

Holdings

Co.

Senior

Bond,

4.85%,

3/15/36

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

United

States

2,669,000

2,599,221

Senior

Bond,

5.8%,

3/15/56

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

United

States

620,000

601,707

4,776,694

Electronic

Equipment,

Instruments

Components

0.6%

Amphenol

Corp.

Senior

Note

4.4

2/15/33

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

United

States

2,845,000

2,782,095

CDW

LLC

CDW

Finance

Corp.

Senior

Note

3.25

2/15/29

United

States

5,000,000

4,780,620

Flex

Ltd.

Senior

Bond

4.875

5/12/30

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

United

States

7,100,000

7,105,268

TTM

Technologies,

Inc.

Senior

Note

144A,

3/01/29

......

United

States

2,000,000

1,936,162

16,604,145

Energy

Equipment

Services

0.3%

Archrock

Services

Archrock

Partners

Finance

Corp.

Senior

Note

144A,

2/01/34

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

United

States

1,045,000

1,052,274

Kodiak

Gas

Services

LLC

Senior

Note

144A,

5.875

4/01/31

United

States

1,185,000

1,194,125

Transocean

International

Ltd.

Senior

Secured

Note

144A,

8.75

2/15/30

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

United

States

2,800,000

2,934,025

Weatherford

International

Ltd.

Senior

Note

144A,

6.75

10/15/33

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

United

States

1,805,000

1,873,337

7,053,761

Entertainment

0.2%

Banijay

Entertainment

SAS

Senior

Secured

Note,

144A,

7%,

5/01/29

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

France

1,200,000

EUR

1,452,104

Senior

Secured

Note,

144A,

8.125%,

5/01/29

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

France

308,809

318,943

Discovery

Global

Holdings,

Inc.

Senior

Note

4.054

3/15/29

United

States

2,100,000

2,045,043

OAK-Eagle

Acquireco,

Inc.

Senior

Note,

144A,

8.75%,

7/01/34

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

United

States

590,000

614,330

Senior

Secured

Note,

144A,

7.25%,

7/01/33

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

United

States

705,000

726,764

5,157,184

Financial

Services

0.3%

Corebridge

Financial,

Inc.

Senior

Note

6.05

9/15/33

.......

United

States

4,900,000

5,152,587

Freedom

Mortgage

Holdings

LLC

Senior

Note

144A,

8.375

4/01/32

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

United

States

2,000,000

2,028,910

Petronas

Capital

Ltd.

Senior

Note

144A,

4.95

1/03/31

.....

Malaysia

2,540,000

2,601,805

9,783,302

Food

Products

0.7%

Froneri

Lux

FinCo

SARL

Senior

Secured

Note

144A,

8/01/32

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

United

Kingdom

970,000

959,932

Industrial

F&B

Investments

III,

Inc.

Senior

Secured

Note

144A,

7.75

2/11/33

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

United

States

1,075,000

1,087,186

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Food

Products

(continued)

JBS

USA

Foods

Group

Holdings,

Inc.

JBS

USA

Food

Co.

Holdings

Senior

Bond,

144A,

5.625%,

3/10/37

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

United

States

595,000

594,283

Senior

Bond,

144A,

6.4%,

5/10/57

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

United

States

580,000

571,115

Senior

Note,

3%,

2/02/29

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

United

States

1,500,000

1,441,584

Senior

Note,

3.625%,

1/15/32

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

United

States

3,500,000

3,240,829

Kraft

Heinz

Foods

Co.

Senior

Bond

6/04/42

...........

United

States

3,175,000

2,808,818

Mars,

Inc.

Senior

Note

144A,

5.2

3/01/35

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

United

States

8,580,000

8,659,536

19,363,283

Gas

Utilities

0.1%

Piedmont

Natural

Gas

Co.,

Inc.

Senior

Bond

3.35

6/01/50

United

States

2,800,000

1,894,327

Ground

Transportation

0.5%

Ashtead

Capital,

Inc.

Senior

Bond

144A,

5.8

4/15/34

......

United

Kingdom

900,000

923,777

Burlington

Northern

Santa

LLC

Senior

Bond

5.55

3/15/56

United

States

1,355,000

1,311,802

SMBC

Aviation

Capital

Finance

DAC

Senior

Bond,

144A,

5.7%,

7/25/33

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

Ireland

7,300,000

7,490,278

Senior

Note,

144A,

5.1%,

4/01/30

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

Ireland

1,400,000

1,411,865

Watco

Cos.

LLC

Watco

Finance

Corp.

Senior

Note

144A,

7.125

8/01/32

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

United

States

1,700,000

1,768,002

XPO,

Inc.

Senior

Note

144A,

7.125

2/01/32

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

United

States

2,000,000

2,087,104

14,992,828

Health

Care

Equipment

Supplies

0.4%

Bausch

Lomb

Corp.

Senior

Secured

Note

144A,

8.375

10/01/28

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

United

States

3,000,000

3,101,250

Baxter

International,

Inc.

Senior

Note

2.272

12/01/28

......

United

States

4,700,000

4,397,652

Medline

Borrower

Senior

Secured

Note

144A,

3.875

4/01/29

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

United

States

3,355,000

3,261,270

10,760,172

Health

Care

Providers

Services

1.6%

CHS/Community

Health

Systems,

Inc.

Senior

Secured

Note,

144A,

6%,

1/15/29

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

United

States

1,800,000

1,786,941

Senior

Secured

Note,

144A,

9.75%,

1/15/34

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

United

States

1,000,000

1,032,660

Cigna

Group

(The)

Senior

Bond

5.25

2/15/34

...........

United

States

7,300,000

7,406,102

Concentra

Health

Services,

Inc.

Senior

Note

144A,

6.875

7/15/32

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

United

States

1,500,000

1,556,311

CVS

Health

Corp.

Senior

Bond,

1.75%,

8/21/30

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

United

States

4,000,000

3,542,737

Senior

Bond,

1.875%,

2/28/31

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

United

States

990,000

868,315

Senior

Bond,

5.3%,

6/01/33

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

United

States

3,000,000

3,040,921

Senior

Bond,

2.7%,

8/21/40

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

United

States

6,300,000

4,416,135

DaVita,

Inc.

Senior

Note

144A,

4.625

6/01/30

...........

United

States

3,000,000

2,905,508

Elevance

Health,

Inc.

Senior

Bond

3.7

9/15/49

..........

United

States

1,400,000

1,002,074

HCA,

Inc.

Senior

Bond,

3.5%,

9/01/30

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

United

States

11,900,000

11,316,894

Senior

Note,

4.6%,

11/15/32

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

United

States

1,385,000

1,351,723

Icon

Investments

Six

DAC

Senior

Secured

Bond,

6%,

5/08/34

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

United

States

460,000

470,295

Senior

Secured

Note,

5.849%,

5/08/29

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

United

States

765,000

779,639

Kedrion

SpA

Senior

Secured

Note

144A,

6.5

9/01/29

......

Italy

2,000,000

1,959,972

c,e

MPH

Acquisition

Holdings

LLC

Senior

Secured

Note

144A,

PIK,

11.5

12/31/30

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

United

States

332

307

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Health

Care

Providers

Services

(continued)

Tenet

Healthcare

Corp.

Senior

Note

144A,

11/15/33

.....

United

States

1,360,000

1,375,265

44,811,799

Health

Care

REITs

0.3%

Alexandria

Real

Estate

Equities,

Inc.

Senior

Bond,

1.875%,

2/01/33

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

United

States

6,400,000

5,158,376

Senior

Bond,

5.25%,

5/15/36

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

United

States

2,200,000

2,144,981

7,303,357

Health

Care

Technology

0.1%

IQVIA,

Inc.

Senior

Note

144A,

6.25

6/01/32

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

United

States

3,000,000

3,058,938

Hotel

Resort

REITs

0.1%

RHP

Hotel

Properties

RHP

Finance

Corp.

Senior

Note

144A,

6.5

4/01/32

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

United

States

2,500,000

2,566,842

Hotels,

Restaurants

Leisure

0.7%

1011778

ULC

New

Red

Finance,

Inc.

Secured

Bond

144A,

10/15/30

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

Canada

2,000,000

1,903,797

c,f

A&K

Travel

Group

Holdings

Ltd.

Senior

Note

144A,

7.5

5/15/33

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

Jersey

570,000

573,522

Airbnb,

Inc.

Senior

Bond,

5.25%,

3/16/36

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

United

States

605,000

603,599

Senior

Note,

4.65%,

3/16/31

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

United

States

1,205,000

1,203,305

Carnival

Corp.

Senior

Note,

144A,

5.75%,

3/15/30

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

United

States

2,500,000

2,537,610

Senior

Note,

144A,

5.75%,

8/01/32

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

United

States

670,000

674,206

Marriott

International,

Inc.

Senior

Note

4.5

5/01/33

........

United

States

1,640,000

1,590,047

NCL

Corp.

Ltd.

Senior

Note

144A,

6.25

9/15/33

..........

United

States

600,000

581,119

Rivers

Enterprise

Borrower

LLC

Senior

Secured

Note

144A,

6.25

10/15/30

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

United

States

645,000

656,447

Royal

Caribbean

Cruises

Ltd.

Senior

Note,

144A,

5.625%,

9/30/31

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

United

States

1,500,000

1,520,869

Senior

Note,

144A,

6%,

2/01/33

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

United

States

5,500,000

5,585,750

Viking

Cruises

Ltd.

Senior

Note

144A,

5.875

10/15/33

.....

United

States

2,030,000

2,036,163

19,466,434

Household

Durables

0.3%

Ashton

Woods

USA

LLC

Ashton

Woods

Finance

Co.

Senior

Note

144A,

6.875

8/01/33

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

United

States

940,000

923,426

Toll

Brothers

Finance

Corp.

Senior

Bond

3.8

11/01/29

.....

United

States

4,900,000

4,775,779

Weekley

Homes

LLC

Weekley

Finance

Corp.

Senior

Note

144A,

4.875

9/15/28

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

United

States

2,000,000

1,958,565

7,657,770

Independent

Power

and

Renewable

Electricity

Producers

0.6%

AES

Andes

Senior

Note

144A,

6.25

3/14/32

..........

Chile

1,080,000

1,119,699

Atlantica

Sustainable

Infrastructure

Ltd.

Senior

Note

144A,

4.125

6/15/28

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

Spain

1,528,000

1,493,403

Clearway

Energy

Operating

LLC

Senior

Note

144A,

3.75

2/15/31

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

United

States

2,800,000

2,621,613

Constellation

Energy

Generation

LLC

Senior

Bond,

5.8%,

3/01/33

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

United

States

3,000,000

3,146,624

Senior

Bond,

6.125%,

1/15/34

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

United

States

2,000,000

2,143,845

Senior

Note,

4.4%,

1/15/31

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

United

States

1,110,000

1,098,721

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Independent

Power

and

Renewable

Electricity

Producers

(continued)

Leeward

Renewable

Energy

Operations

LLC

Senior

Note

144A,

4.25

7/01/29

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

United

States

2,300,000

2,201,767

Talen

Energy

Supply

LLC

Senior

Note

144A,

6.375

5/01/33

United

States

1,740,000

1,743,108

15,568,780

Insurance

1.9%

AIA

Group

Ltd.

Senior

Bond

144A,

4.95

4/04/33

.........

Hong

Kong

3,100,000

3,171,727

Arch

Capital

Group

Ltd.

Senior

Bond

3.635

6/30/50

.......

United

States

6,400,000

4,592,041

Arthur

Gallagher

Co.

Senior

Note

2/15/32

..........

United

States

2,075,000

2,081,297

Asurion

LLC

Asurion

Co-Issuer,

Inc.

Senior

Secured

Note,

144A,

8%,

12/31/32

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

United

States

1,100,000

1,149,719

Senior

Secured

Note,

144A,

8.375%,

2/01/34

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

United

States

1,600,000

1,579,861

Athene

Global

Funding

Secured

Note,

144A,

5.033%,

7/17/30

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

United

States

3,800,000

3,765,739

Senior

Secured

Bond,

144A,

5.543%,

8/22/35

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

United

States

1,200,000

1,179,488

Brown

Brown,

Inc.

Senior

Bond

5.65

6/11/34

..........

United

States

7,300,000

7,379,432

Corebridge

Global

Funding

Secured

Note

144A,

5.9

9/19/28

United

States

2,100,000

2,163,876

F&G

Annuities

Life,

Inc.

Senior

Note

6.5

6/04/29

.......

United

States

2,200,000

2,226,921

Metropolitan

Life

Global

Funding

Secured

Note,

144A,

5.05%,

1/06/28

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

United

States

9,600,000

9,701,735

Secured

Note,

144A,

4.3%,

8/25/29

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

United

States

3,000,000

2,986,774

RGA

Global

Funding

Secured

Note

144A,

5.5

1/11/31

.....

United

States

6,400,000

6,599,877

Sammons

Financial

Group,

Inc.

Senior

Bond

144A,

6.875

4/15/34

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

United

States

3,700,000

3,920,626

52,499,113

Interactive

Media

Services

0.1%

Meta

Platforms,

Inc.

Senior

Bond,

5.25%,

5/15/36

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

United

States

1,790,000

1,787,048

Senior

Bond,

6.3%,

5/15/56

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

United

States

1,280,000

1,284,544

3,071,592

Services

0.2%

Beignet

Investor

LLC

Senior

Secured

Bond

144A,

6.581

5/30/49

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

United

States

1,532,000

1,583,537

Cogent

Communications

Group

LLC

Cogent

Finance,

Inc.

Senior

Secured

Note

144A,

6.5

7/01/32

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

United

States

2,000,000

1,857,200

Fortress

Intermediate

Inc.

Senior

Secured

Note

144A,

7.5

6/01/31

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

United

States

2,000,000

2,022,466

5,463,203

Leisure

Products

0.0%

†

Brunswick

Corp.

Senior

Bond

2.4

8/18/31

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

United

States

1,300,000

1,133,408

Life

Sciences

Tools

Services

0.0%

†

Thermo

Fisher

Scientific,

Inc.

Senior

Bond

4.902

2/12/36

...

United

States

1,380,000

1,366,649

Machinery

0.2%

ESAB

Corp.

Senior

Note

144A,

6.25

4/15/29

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

United

States

2,900,000

2,941,928

Terex

Corp.

Senior

Note

144A,

6.25

10/15/32

...........

United

States

2,000,000

2,034,434

4,976,362

Media

1.1%

Charter

Communications

Operating

LLC

Charter

Communications

Operating

Capital

Corp.

Senior

Secured

Bond,

2.8%,

4/01/31

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

United

States

15,900,000

14,241,763

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Media

(continued)

Charter

Communications

Operating

LLC

Charter

Communications

Operating

Capital

Corp.,

(continued)

Senior

Secured

Bond,

5.85%,

12/01/35

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

United

States

1,255,000

1,225,236

Clear

Channel

Outdoor

Holdings,

Inc.

Senior

Secured

Note

144A,

7.5

3/15/33

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

United

States

2,000,000

2,102,308

Directv

Financing

LLC

Senior

Secured

Note

144A,

8.875

2/01/30

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

United

States

1,440,000

1,468,399

Fox

Corp.

Senior

Bond

6.5

10/13/33

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

United

States

5,500,000

5,908,094

Nexstar

Media,

Inc.

Senior

Note

144A,

7.25

4/15/34

......

United

States

1,545,000

1,555,979

Sinclair

Television

Group,

Inc.

Senior

Secured

Note

144A,

8.125

2/15/33

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

United

States

2,000,000

2,072,430

Univision

Communications,

Inc.

Senior

Secured

Note,

144A,

9.375%,

8/01/32

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

United

States

500,000

517,802

Senior

Secured

Note,

144A,

8.875%,

4/15/33

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

United

States

385,000

387,385

Secured

Financing

Senior

Secured

Note

144A,

7.5

1/15/33

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

Netherlands

1,000,000

970,057

30,449,453

Metals

Mining

0.3%

Anglo

American

Capital

plc

Senior

Note

144A,

3/21/33

...

South

Africa

2,155,000

2,132,042

Commercial

Metals

Co.

Senior

Bond,

144A,

6%,

12/15/35

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

United

States

1,040,000

1,039,480

Senior

Note,

144A,

5.75%,

11/15/33

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

United

States

520,000

521,166

Glencore

Funding

LLC

Senior

Bond

144A,

5.508

4/01/36

...

Australia

2,165,000

2,181,031

Mineral

Resources

Ltd.

Senior

Note,

144A,

7%,

4/01/31

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

Australia

685,000

711,625

Senior

Note,

144A,

6%,

5/01/32

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

Australia

335,000

332,704

Novelis

Corp.

Senior

Note

144A,

6.375

8/15/33

..........

United

States

2,480,000

2,492,157

9,410,205

Multi-Utilities

0.7%

Dominion

Energy,

Inc.

Senior

Note,

4.35%,

8/15/32

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

United

States

3,200,000

3,105,315

Senior

Note,

3.375%,

4/01/30

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

United

States

7,800,000

7,454,317

DTE

Energy

Co.

Senior

Note

4.875

6/01/28

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

United

States

5,700,000

5,745,928

Public

Service

Enterprise

Group,

Inc.

Senior

Bond

5.4

3/15/35

United

States

2,225,000

2,248,260

18,553,820

Oil,

Gas

Consumable

Fuels

4.2%

Aker

ASA

Senior

Bond

144A,

3.1

7/15/31

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

Norway

8,700,000

7,970,893

Calumet

Specialty

Products

Partners

Calumet

Finance

Corp.

Senior

Secured

Note

144A,

9.25

7/15/29

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

United

States

2,400,000

2,436,000

Canadian

Natural

Resources

Ltd.

Senior

Bond

2.95

7/15/30

Canada

8,200,000

7,715,757

Cheniere

Energy,

Inc.

Senior

Bond,

144A,

5.2%,

7/30/36

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

United

States

430,000

425,266

Senior

Note,

5.65%,

4/15/34

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

United

States

1,600,000

1,648,779

Crescent

Energy

Finance

LLC

Senior

Note,

144A,

7.375%,

1/15/33

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

United

States

750,000

768,006

Senior

Note,

144A,

8.375%,

1/15/34

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

United

States

1,865,000

1,973,291

Midstream,

Inc.

Senior

Bond

144A,

4.375

6/15/31

.....

United

States

6,600,000

6,381,587

Eastern

Energy

Gas

Holdings

LLC

Senior

Bond

5.8

1/15/35

United

States

6,700,000

6,974,226

Energy

Transfer

Senior

Note,

6.4%,

12/01/30

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

United

States

6,000,000

6,405,926

Senior

Note,

144A,

6%,

2/01/29

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

United

States

4,000,000

4,037,762

Hess

Midstream

Operations

Senior

Note

144A,

6.5

6/01/29

United

States

2,700,000

2,767,824

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Oil,

Gas

Consumable

Fuels

(continued)

Hilcorp

Energy

Hilcorp

Finance

Co.

Senior

Bond

144A,

6.25

4/15/32

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

United

States

910,000

904,616

KazMunayGas

National

Co.

JSC

Senior

Bond

Reg

5.375

4/24/30

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

Kazakhstan

1,120,000

1,140,864

Kinetik

Holdings

Senior

Note

144A,

5.875

6/15/30

......

United

States

3,000,000

3,011,799

MPLX

Senior

Bond

5.4

4/01/35

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

United

States

9,100,000

9,100,456

Murphy

Oil

Corp.

Senior

Note,

6%,

10/01/32

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

United

States

135,000

135,971

Senior

Note,

6.5%,

2/15/34

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

United

States

500,000

504,141

ONEOK,

Inc.

Senior

Bond,

5.375%,

6/01/29

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

United

States

10,900,000

11,129,140

Senior

Note,

144A,

5.625%,

1/15/28

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

United

States

1,700,000

1,721,202

Pertamina

Hulu

Energi

Senior

Note

144A,

5.25

5/21/30

Indonesia

1,700,000

1,718,903

Sabine

Pass

Liquefaction

LLC

Senior

Secured

Note

4.5

5/15/30

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

United

States

10,000,000

9,990,556

Sunoco

Senior

Note,

144A,

5.375%,

7/15/31

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

United

States

1,075,000

1,070,577

Senior

Note,

144A,

5.625%,

7/15/34

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

United

States

640,000

631,738

Targa

Resources

Corp.

Senior

Note

4.35

4/15/31

........

United

States

1,320,000

1,294,342

Transcontinental

Gas

Pipe

Line

Co.

LLC

Senior

Note

5.1

3/15/36

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

United

States

1,525,000

1,513,730

Var

Energi

ASA

Senior

Bond

144A,

11/15/32

..........

Norway

9,000,000

10,248,673

Venture

Global

Calcasieu

Pass

LLC

Senior

Secured

Bond,

144A,

4.125%,

8/15/31

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

United

States

2,600,000

2,437,086

Senior

Secured

Bond,

144A,

6%,

5/01/36

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

United

States

1,080,000

1,088,913

Venture

Global

LNG,

Inc.

Senior

Secured

Note

144A,

8.375

6/01/31

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

United

States

2,500,000

2,607,760

Venture

Global

Plaquemines

LNG

LLC

Senior

Secured

Bond,

144A,

7.75%,

5/01/35

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

United

States

900,000

1,012,652

Senior

Secured

Bond,

144A,

6.75%,

1/15/36

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

United

States

730,000

776,366

Senior

Secured

Note,

144A,

7.5%,

5/01/33

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

United

States

500,000

554,699

Viper

Energy

Partners

LLC

Senior

Bond

5.7

8/01/35

......

United

States

1,840,000

1,868,950

Western

Midstream

Operating

Senior

Note

144A,

7.25

4/01/30

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

United

States

1,900,000

2,003,845

115,972,296

Paper

Forest

Products

0.1%

Georgia-Pacific

LLC

Senior

Note

144A,

4.9

5/15/33

.......

United

States

2,055,000

2,051,461

Personal

Care

Products

0.4%

Coty,

Inc.

HFC

Prestige

Products,

Inc.

HFC

Prestige

International

LLC

Senior

Secured

Note

144A,

4.75

1/15/29

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

United

States

8,000,000

7,753,960

Opal

Bidco

SAS

Senior

Secured

Note

144A,

6.5

3/31/32

...

France

2,000,000

2,037,354

9,791,314

Pharmaceuticals

1.1%

Bayer

Finance

LLC

Senior

Bond

144A,

4.375

12/15/28

Germany

11,700,000

11,616,909

Merck

Co.,

Inc.

Senior

Bond,

4.75%,

12/04/35

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

United

States

1,190,000

1,165,321

Senior

Note,

4.45%,

12/04/32

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

United

States

740,000

733,254

Novartis

Capital

Corp.

Senior

Bond,

4.9%,

3/18/36

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

United

States

1,780,000

1,768,360

Senior

Bond,

5.7%,

3/18/56

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

United

States

955,000

957,258

Senior

Note,

4.1%,

11/05/30

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

United

States

5,305,000

5,237,050

Senior

Note,

4.6%,

3/18/33

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

United

States

1,445,000

1,435,440

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Pharmaceuticals

(continued)

Pfizer

Investment

Enterprises

Pte.

Ltd.

Senior

Bond

4.75

5/19/33

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

United

States

3,500,000

3,486,249

Royalty

Pharma

plc

Senior

Bond,

5.2%,

9/25/35

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

United

States

1,250,000

1,239,192

Senior

Bond,

3.3%,

9/02/40

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

United

States

5,300,000

4,060,787

31,699,820

Residential

REITs

0.1%

Essex

Portfolio

Senior

Bond

5.375

4/01/35

...........

United

States

2,600,000

2,644,537

Semiconductors

Semiconductor

Equipment

0.7%

Broadcom,

Inc.

Senior

Bond,

4.95%,

1/15/36

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

United

States

1,230,000

1,218,379

Senior

Bond,

5.7%,

1/15/56

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

United

States

185,000

184,048

Foundry

Holdco

LLC

Senior

Secured

Bond,

144A,

6.25%,

1/25/35

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

United

States

7,400,000

7,821,414

Senior

Secured

Bond,

144A,

6.4%,

1/25/38

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

United

States

1,315,000

1,406,272

Senior

Secured

Note,

144A,

5.9%,

1/25/33

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

United

States

1,565,000

1,629,604

Intel

Corp.

Senior

Bond,

5.3%,

5/15/36

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

United

States

1,310,206

1,305,208

Senior

Bond,

6.125%,

5/15/56

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

United

States

806,577

801,129

Marvell

Technology,

Inc.

Senior

Bond

5.3

4/15/36

........

United

States

3,370,000

3,373,139

Qnity

Electronics,

Inc.

Senior

Note,

144A,

6.25%,

8/15/33

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

United

States

320,000

327,801

Senior

Secured

Note,

144A,

5.75%,

8/15/32

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

United

States

550,000

555,979

18,622,973

Software

0.7%

Gen

Digital,

Inc.

Senior

Note

144A,

6.25

4/01/33

.........

United

States

750,000

731,314

Oracle

Corp.

Senior

Bond,

4.3%,

7/08/34

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

United

States

8,000,000

7,118,896

Senior

Bond,

5.7%,

2/04/36

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

United

States

2,855,000

2,743,234

Senior

Bond,

6.7%,

2/04/56

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

United

States

935,000

862,388

Senior

Note,

4.8%,

9/26/32

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

United

States

915,000

870,385

Salesforce,

Inc.

Senior

Note

5.2

3/15/33

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

United

States

3,505,000

3,499,733

Synopsys,

Inc.

Senior

Bond

5.15

4/01/35

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

United

States

4,631,000

4,633,137

20,459,087

Specialized

REITs

0.2%

American

Tower

Corp.

Senior

Note

4.7

12/15/32

.........

United

States

925,000

913,872

Iron

Mountain,

Inc.

Senior

Note

144A,

2/15/29

.........

United

States

2,700,000

2,760,861

Millrose

Properties,

Inc.

Senior

Note

144A,

6.375

8/01/30

United

States

1,995,000

2,021,940

5,696,673

Specialty

Retail

0.1%

AutoNation,

Inc.

Senior

Bond

4.75

6/01/30

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

United

States

1,900,000

1,892,026

Technology

Hardware,

Storage

Peripherals

0.5%

Dell

International

LLC

EMC

Corp.

Senior

Bond

5.4

4/15/34

United

States

7,800,000

7,940,235

Hewlett

Packard

Enterprise

Co.

Senior

Note

4.85

10/15/31

United

States

4,500,000

4,475,448

Seagate

Data

Storage

Technology

Pte.

Ltd.

Senior

Note

144A,

5.875

7/15/30

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

United

States

1,600,000

1,635,883

14,051,566

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Corporate

Bonds

(continued)

Textiles,

Apparel

Luxury

Goods

0.1%

Tapestry,

Inc.

Senior

Bond

5.5

3/11/35

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

United

States

1,820,000

1,829,278

Tobacco

0.5%

BAT

Capital

Corp.

Senior

Bond,

4.39%,

8/15/37

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

United

Kingdom

1,700,000

1,549,053

Senior

Note,

4.625%,

3/22/33

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

United

Kingdom

4,985,000

4,886,551

Philip

Morris

International,

Inc.

Senior

Bond

5.375

2/15/33

United

States

7,200,000

7,407,594

13,843,198

Trading

Companies

Distributors

0.1%

EquipmentShare.com,

Inc.

Secured

Note

144A,

8.625

5/15/32

United

States

1,500,000

1,592,722

WESCO

Distribution,

Inc.

Senior

Note

144A,

6.375

3/15/29

United

States

2,000,000

2,041,870

3,634,592

Transportation

Infrastructure

0.0%

†

c,g

Rutas

and

Finance

Ltd.

Senior

Secured

Bond

144A,

2.6%

9/30/36

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

United

States

196,000

149,940

Wireless

Telecommunication

Services

0.8%

Connect

Finco

SARL

Connect

Finco

LLC

Senior

Secured

Note

144A,

9/15/29

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

United

Kingdom

2,500,000

2,639,842

a,g

Digicel

Group

Holdings

Ltd.

29.35%,

11/17/33

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

Bermuda

677,343

21,434

32.05%,

11/17/33

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

Bermuda

72,906

8,936

T-Mobile

USA,

Inc.

Senior

Bond,

5%,

2/15/36

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

United

States

2,485,000

2,432,675

Senior

Bond,

3.3%,

2/15/51

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

United

States

4,800,000

3,113,867

Senior

Note,

3.875%,

4/15/30

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

United

States

13,400,000

13,050,268

21,267,022

Total

Corporate

Bonds

(Cost

$1,086,608,718)

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

1,061,337,724

Senior

Floating

Rate

Interests

3.0%

Aerospace

Defense

0.1%

TransDigm,

Inc.,

First

Lien,

CME

Term

Loan,

5.902%,

(1-month

SOFR

2.25%),

3/22/30

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

United

States

1,020,872

1,023,603

TransDigm,

Inc.,

First

Lien,

CME

Term

Loan,

6.152%,

(1-month

SOFR

2.5%),

2/14/33

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

United

States

1,186,047

1,189,350

VSE

Corp.,

First

Lien,

CME

Term

Loan,

5.474%,

(12-month

SOFR

2%),

3/17/33

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

United

States

150,961

151,842

2,364,795

Air

Freight

Logistics

0.1%

Rand

Parent

LLC,

First

Lien,

CME

Term

Loan,

6.7%,

(3-month

SOFR

3%),

3/18/30

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

United

States

392,381

394,454

Stonepeak

Nile

Parent

LLC,

First

Lien,

Amendment

No.

CME

Term

Loan,

5.919%,

(3-month

SOFR

2.25%),

4/09/32

.....

United

States

1,097,250

1,102,226

1,496,680

Automobile

Components

0.0%

†

American

Axle

Manufacturing,

Inc.,

First

Lien,

CME

Term

Loan,

6.912%,

(3-month

SOFR

3.25%),

2/03/33

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

United

States

292,444

292,809

Clarios

Global

LP,

First

Lien,

Amendment

No.

Dollar

CME

Term

Loan,

6.402%,

(1-month

SOFR

2.75%),

1/28/32

.........

United

States

766,091

770,722

First

Brands

Group

LLC,

First

Lien,

2021

CME

Term

Loan,

PIK,

3.779%,

(1-month

SOFR

7%),

3/30/27

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

United

States

71,058

166

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Automobile

Components

(continued)

First

Brands

Group

LLC,

First

Lien,

Debtor-In-Possession

Roll

CME

Term

Loan,

PIK,

10.661%,

(1-month

SOFR

7%),

6/29/26

United

States

705,417

2,776

First

Brands

Group

LLC,

First

Lien,

USD

Debtor-In-Possession

New

Money

CME

Term

Loan,

PIK,

13.657%,

(1-month

SOFR

10%),

6/29/26

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

United

States

276,894

68,446

First

Brands

Group

LLC,

Second

Lien,

2021

CME

Term

Loan,

PIK,

14.279%,

(1-month

SOFR

10.615%),

3/30/28

........

United

States

1,132,040

1,528

1,136,447

Beverages

0.0%

†

Primo

Brands

Corp.,

First

Lien,

2026

Refinancing

CME

Term

Loan,

6.45%,

(3-month

SOFR

2.75%),

3/31/31

..........

United

States

316,298

318,658

Biotechnology

0.1%

f,i

BioMarin

Pharmaceutical,

Inc.,

First

Lien,

CME

Term

Loan,

5.174%,

(12-month

SOFR

1.75%),

1/28/33

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

United

States

2,657,291

2,668,093

Broadline

Retail

0.0%

†

Peer

Holding

III

BV,

First

Lien,

CME

Term

Loan,

B5B,

6.2%,

(3-month

SOFR

2.5%),

7/01/31

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

Netherlands

316,236

317,501

Building

Products

0.0%

†

EMRLD

Borrower

LP,

First

Lien,

Second

Amendment

Incremental

CME

Term

Loan,

5.95%,

(1-month

SOFR

2.25%),

8/04/31

United

States

218,578

219,130

Quikrete

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

B2,

5.902%,

(1-month

SOFR

2.25%),

3/19/29

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

United

States

400,116

400,991

Quikrete

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

B3,

5.902%,

(1-month

SOFR

2.25%),

2/10/32

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

United

States

273,103

273,641

893,762

Capital

Markets

0.2%

Citadel

Securities

Global

Holdings

LLC,

First

Lien,

2024

CME

Term

Loan,

5.7%,

(3-month

SOFR

2%),

10/31/31

........

United

States

696,724

700,110

CPI

Holdco

LLC,

First

Lien,

2025

Fourth

Amendment

Incremental

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

5/19/31

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

United

States

1,000,000

1,001,020

Jane

Street

Group

LLC,

First

Lien,

Extended

CME

Term

Loan,

5.673%,

(3-month

SOFR

2%),

12/15/31

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

United

States

2,696,776

2,695,428

4,396,558

Chemicals

0.1%

Albaugh

LLC,

First

Lien,

Initial

CME

Term

Loan,

7.413%,

(1-month

SOFR

3.75;

3-month

SOFR

3.75),

4/06/29

.....

United

States

611,336

594,742

Minerals

Technologies,

Inc.,

First

Lien,

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

11/26/31

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

United

States

1,000,000

1,003,750

Solstice

Advanced

Materials,

Inc.,

First

Lien,

CME

Term

Loan,

5.413%,

(3-month

SOFR

1.75%),

10/29/32

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

United

States

225,090

226,955

1,825,447

Commercial

Services

Supplies

0.1%

APi

Group

DE,

Inc.,

First

Lien,

2021

Incremental

CME

Term

Loan,

5.402%,

(1-month

SOFR

1.75%),

1/03/29

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

United

States

1,100,000

1,104,587

Cimpress

USA,

Inc.,

First

Lien,

2024-2

Refinancing

CME

Term

Loan,

B1,

6.168%,

(1-month

SOFR

2.5%),

5/17/28

.......

Ireland

459,268

460,990

Prime

Security

Services

Borrower

LLC,

First

Lien,

2025

Incremental

CME

Term

Loan,

B2,

5.407%,

(1-month

SOFR

1.75%),

3/08/32

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

United

States

1,097,229

1,087,371

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Commercial

Services

Supplies

(continued)

Spin

Holdco,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

7.928%,

(3-month

SOFR

4%),

9/04/30

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

United

States

131,898

93,318

WMB

Holdings,

Inc.,

First

Lien,

USD

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

11/05/29

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

United

States

1,042,559

1,046,145

3,792,411

Communications

Equipment

0.0%

†

Viavi

Solutions,

Inc.,

First

Lien,

CME

Term

Loan,

6.18%,

(3-month

SOFR

2.5%),

10/18/32

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

United

States

155,709

156,732

Containers

Packaging

0.1%

Clydesdale

Acquisition

Holdings,

Inc.,

First

Lien,

2025

Incremental

Closing

Date

CME

Term

Loan,

6.902%,

(1-month

SOFR

3.25%),

4/01/32

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

United

States

585,040

544,368

Owens-Brockway

Glass

Container,

Inc.,

First

Lien,

CME

Term

Loan,

B1,

6.652%,

(1-month

SOFR

3%),

9/30/32

.........

United

States

1,006,577

995,254

1,539,622

Distributors

0.0%

†

Core

Main

LP,

First

Lien,

CME

Term

Loan,

5.654%,

(1-month

SOFR

2%),

7/27/28

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

United

States

453,446

455,239

Electric

Utilities

0.3%

Alpha

Generation

LLC,

First

Lien,

Initial

CME

Term

Loan,

5.402%,

(1-month

SOFR

1.75%),

9/30/31

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

United

States

2,643,661

2,646,912

Astoria

Energy

LLC,

First

Lien,

Advance

CME

Term

Loan,

5.919%,

(1-month

SOFR

2.25;

3-month

SOFR

2.25),

6/23/32

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

United

States

164,017

164,799

Constellation

Renewables

LLC,

First

Lien,

CME

Term

Loan,

5.673%,

(3-month

SOFR

2%),

12/15/27

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

United

States

2,700,000

2,704,225

NRG

Energy,

Inc.,

First

Lien,

Incremental

CME

Term

Loan,

5.561%,

(12-month

SOFR

1.75%),

4/15/33

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

United

States

2,746,199

2,759,587

8,275,523

Entertainment

0.2%

Delta

(Lux)

SARL,

First

Lien,

CME

Term

Loan,

5.45%,

(1-month

SOFR

1.75%),

9/30/31

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

Luxembourg

750,000

752,438

Live

Nation

Entertainment,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

5.657%,

(1-month

SOFR

2%),

10/21/32

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

United

States

1,000,000

1,002,500

Playtika

Holding

Corp.,

First

Lien,

CME

Term

Loan,

B1,

6.517%,

(1-month

SOFR

2.75%),

3/13/28

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

United

States

683,423

658,912

TKO

Worldwide

Holdings

LLC,

First

Lien,

CME

Term

Loan,

B5,

5.664%,

(3-month

SOFR

2%),

11/21/31

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

United

States

2,629,463

2,639,507

5,053,357

Financial

Services

0.1%

Colossus

Acquireco

LLC,

First

Lien,

Initial

CME

Term

Loan,

5.38%,

(1-day

SOFR

1.75%),

7/30/32

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

United

States

2,697,243

2,700,615

First

Eagle

Holdings,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

7.2%,

(3-month

SOFR

3.5%),

8/16/32

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

United

States

482,834

482,298

3,182,913

Food

Products

0.1%

Chobani

LLC,

First

Lien,

Closing

Date

CME

Term

Loan,

5.918%,

(1-month

SOFR

2.25%),

10/28/32

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

United

States

271,960

273,805

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Food

Products

(continued)

Froneri

International

Ltd.,

First

Lien,

CME

Term

Loan,

B4,

5.877%,

(6-month

SOFR

2.25%),

9/30/31

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

United

Kingdom

2,374,387

2,360,508

Wayne-Sanderson

Farms

LLC,

First

Lien,

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

5/21/32

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

United

States

1,000,000

1,001,250

3,635,563

Ground

Transportation

0.2%

Aggreko

Holdings,

Inc.,

First

Lien,

2025

Amended

USD

CME

Term

Loan,

6.664%,

(3-month

SOFR

3%),

5/21/31

.......

United

Kingdom

87,316

87,851

First

Student

Bidco,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

5.95%,

(3-month

SOFR

2.25%),

8/15/30

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

United

States

1,075,527

1,077,318

First

Student

Bidco,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

5.95%,

(3-month

SOFR

2.25%),

8/15/30

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

United

States

196,795

197,123

Genesee

Wyoming,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

5.45%,

(3-month

SOFR

1.75%),

4/10/31

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

United

States

2,697,215

2,702,569

4,064,861

Health

Care

Equipment

Supplies

0.0%

†

Hologic,

Inc.,

First

Lien,

CME

Term

Loan,

5.924%,

(3-month

SOFR

2.25%),

4/07/33

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

United

States

500,000

497,815

Health

Care

Providers

Services

0.0%

†

Medical

Solutions

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

7.263%,

(3-month

SOFR

3.5%),

11/01/28

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

United

States

636,821

105,477

Paradigm

Parent

LLC,

First

Lien,

Initial

CME

Term

Loan,

8.2%,

(3-month

SOFR

4.5%),

4/16/32

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

United

States

248,750

217,113

Surgery

Center

Holdings,

Inc.,

First

Lien,

2025

Refinancing

CME

Term

Loan,

6.168%,

(1-month

SOFR

2.5%),

12/19/30

.....

United

States

57,487

57,706

380,296

Health

Care

Technology

0.0%

†

Cotiviti,

Inc.,

First

Lien,

New

CME

Term

Loan,

6.415%,

(1-month

SOFR

2.75%),

5/01/31

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

United

States

310,139

285,715

Hotels,

Restaurants

Leisure

0.3%

1011778

ULC,

First

Lien,

CME

Term

Loan,

B5,

5.418%,

(1-month

SOFR

1.75%),

9/20/30

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

Canada

2,700,000

2,705,899

Caesars

Entertainment,

Inc.,

First

Lien,

2023

Incremental

CME

Term

Loan,

5.902%,

(1-month

SOFR

2.25%),

2/06/30

...

United

States

299,208

291,106

Crown

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

5.411%,

(1-month

SOFR

1.75%),

3/04/32

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

United

States

1,097,229

1,100,274

Flutter

Financing

BV,

First

Lien,

2024

Refinancing

CME

Term

Loan,

5.45%,

(3-month

SOFR

1.75%),

12/02/30

.......

Ireland

1,300,000

1,298,375

Raising

Cane's

Restaurants

LLC,

First

Lien,

First

Amendment

New

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

11/03/32

United

States

2,697,250

2,703,157

8,098,811

Household

Products

0.0%

†

Energizer

Holdings,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

3/19/32

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

United

States

1,096,911

1,100,564

Independent

Power

and

Renewable

Electricity

Producers

0.0%

†

Calpine

Construction

Finance

Co.

LP,

First

Lien,

2025

Refinancing

CME

Term

Loan,

5.402%,

(1-month

SOFR

1.75%),

7/31/30

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

United

States

300,000

301,354

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Independent

Power

and

Renewable

Electricity

Producers

(continued)

Talen

Energy

Supply

LLC,

First

Lien,

2024-1

Incremental

CME

Term

Loan,

6.153%,

(3-month

SOFR

2.5%),

12/15/31

...

United

States

132,848

133,500

434,854

Insurance

0.1%

Asurion

LLC,

First

Lien,

New

CME

Term

Loan,

B10,

7.763%,

(3-month

SOFR

4%),

8/21/28

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

United

States

234,752

235,316

Asurion

LLC,

First

Lien,

New

CME

Term

Loan,

B11,

8.013%,

(3-month

SOFR

4.25%),

8/21/28

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

United

States

10,216

10,232

Lockton,

Inc.,

First

Lien,

CME

Term

Loan,

5.811%,

(12-month

SOFR

2%),

4/25/33

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

United

States

2,290,000

2,298,587

2,544,135

Services

0.0%

†

Sub

LLC,

First

Lien,

2024

December

New

CME

Term

Loan,

7.902%,

(1-month

SOFR

4.25%),

12/31/31

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

United

States

101,386

80,405

Machinery

0.0%

†

Columbus

McKinnon

Corp.,

First

Lien,

Initial

CME

Term

Loan,

7.2%,

(3-month

SOFR

3.5%),

2/03/33

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

United

States

63,934

64,121

Media

0.2%

Advantage

Sales

Marketing,

Inc.,

First

Lien,

Exchange

CME

Term

Loan,

9.93%,

(3-month

SOFR

6%),

4/19/30

........

United

States

280,556

230,408

Charter

Communications

Operating

LLC,

First

Lien,

CME

Term

Loan

B5,

5.942%,

(3-month

SOFR

2.25%),

12/15/31

......

United

States

1,097,222

1,097,853

Nexstar

Media,

Inc.,

First

Lien,

CME

Term

Loan,

B7,

6.402%,

(1-month

SOFR

2.75%),

3/18/33

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

United

States

2,685,000

2,686,477

4,014,738

Mortgage

Real

Estate

Investment

Trusts

(REITs)

0.0%

†

Starwood

Property

Mortgage

LLC,

First

Lien,

CME

Term

Loan,

B5,

5.668%,

(1-month

SOFR

2%),

1/02/30

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

United

States

246,884

248,119

Oil,

Gas

Consumable

Fuels

0.2%

CQP

Holdco

LP,

First

Lien,

CME

Term

Loan,

5.45%,

(3-month

SOFR

1.75%),

12/31/32

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

United

States

2,700,000

2,701,863

Delek

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

7.268%,

(1-month

SOFR

3.5%),

11/19/29

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

United

States

446,538

447,690

UGI

Energy

Services

LLC,

First

Lien,

Initial

CME

Term

Loan,

6.152%,

(1-month

SOFR

2.5%),

2/22/30

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

United

States

517,472

521,353

Venture

Global

Calcasieu

Pass

LLC,

First

Lien,

Initial

CME

Term

Loan,

6.724%,

(12-month

SOFR

3.25%),

4/11/33

........

United

States

2,652,382

2,663,986

6,334,892

Passenger

Airlines

0.1%

AAdvantage

Loyalty

Ltd.,

First

Lien,

2025

Incremental

CME

Term

Loan,

6.425%,

(3-month

SOFR

2.75%),

5/28/32

.....

United

States

1,097,229

1,094,371

AAdvantage

Loyalty

Ltd.,

First

Lien,

CME

Term

Loan,

5.925%,

(3-month

SOFR

2.25%),

4/20/28

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

United

States

291,067

289,873

Mileage

Plan

Ltd.,

First

Lien,

Initial

CME

Term

Loan,

5.425%,

(3-month

SOFR

1.75%),

10/15/31

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

United

States

421,541

422,529

United

Airlines,

Inc.,

First

Lien,

CME

Term

Loan,

5.404%,

(1-month

SOFR

1.75%),

2/24/31

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

United

States

1,059,455

1,063,762

2,870,535

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Senior

Floating

Rate

Interests

(continued)

Professional

Services

0.1%

Maximus,

Inc.,

First

Lien,

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

5/30/31

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

United

States

278,276

278,536

SS&C

Technologies,

Inc.,

First

Lien,

CME

Term

Loan,

B8,

5.652%,

(1-month

SOFR

2%),

5/09/31

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

United

States

2,600,000

2,603,237

2,881,773

Real

Estate

Management

Development

0.0%

†

f,i

Greystar

Real

Estate

Partners

LLC,

First

Lien,

CME

Term

Loan,

B3,

6.173%,

(3-month

SOFR

2.5%),

8/21/30

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

United

States

362,500

363,859

Software

0.1%

Adeia,

Inc.,

First

Lien,

Initial

CME

Term

Loan,

B6,

6.168%,

(1-month

SOFR

2.5%),

6/08/28

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

United

States

999,911

1,002,411

Gen

Digital,

Inc.,

First

Lien,

CME

Term

Loan,

5.402%,

(1-month

SOFR

1.75%),

9/12/29

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

United

States

1,000,000

986,180

a,d

WorkCapital

BSD

SARL,

Term

Loan,

6.5%,

1/01/38

..........

Luxembourg

20,000,000

—

1,988,591

Specialty

Retail

0.1%

GNC

Holdings,

Inc.,

Second

Lien,

CME

Term

Loan,

PIK,

9.768%,

(1-month

SOFR

6%),

10/07/26

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

United

States

3,335,320

2,597,380

Great

Outdoors

Group

LLC,

First

Lien,

CME

Term

Loan,

6.902%,

(1-month

SOFR

3.25%),

1/23/32

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

United

States

439,451

442,802

3,040,182

Trading

Companies

Distributors

0.1%

Herc

Holdings,

Inc.,

First

Lien,

CME

Term

Loan,

5.402%,

(1-month

SOFR

1.75%),

6/02/32

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

United

States

463,003

465,649

QXO

Building

Products,

Inc.,

First

Lien,

CME

Term

Loan,

5.652%,

(1-month

SOFR

2%),

4/30/32

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

United

States

1,100,000

1,101,694

1,567,343

Water

Utilities

0.0%

†

Deep

Blue

Operating

LLC,

First

Lien,

Initial

CME

Term

Loan,

6.411%,

(1-month

SOFR

2.75%),

10/01/32

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

United

States

124,304

125,081

Total

Senior

Floating

Rate

Interests

(Cost

$104,939,861)

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

82,495,991

Marketplace

Loans

0.1%

Financial

Services

0.1%

Total

Marketplace

Loans

(Cost

$9,189,510)

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

2,232,026

Foreign

Government

and

Agency

Securities

2.7%

Angola

Government

Bond

Senior

Bond

144A,

8.25

5/09/28

Angola

1,560,000

1,600,534

Bank

Gospodarstwa

Krajowego

Senior

Bond

Reg

5.375

5/22/33

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

Poland

1,560,000

1,595,066

Benin

Government

Bond

Senior

Bond

Reg

4.95

1/22/35

Benin

1,660,000

EUR

1,762,612

Brazil

Government

Bond

Senior

Bond,

3.875%,

6/12/30

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

Brazil

3,100,000

2,978,325

Senior

Bond,

6%,

10/20/33

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

Brazil

720,000

728,136

Bulgaria

Government

Bond

Senior

Bond,

Reg

5%,

3/05/37

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

Bulgaria

530,000

517,453

Senior

Note,

Reg

3.625%,

9/05/32

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

Bulgaria

1,230,000

EUR

1,460,425

Chile

Government

Bond

Senior

Note

4.85

1/22/29

........

Chile

1,660,000

1,682,825

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Foreign

Government

and

Agency

Securities

(continued)

Colombia

Government

Bond

Senior

Bond,

7.5%,

2/02/34

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

Colombia

1,550,000

1,625,175

Senior

Note,

4.5%,

11/26/30

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

Colombia

1,030,000

EUR

1,189,578

Comision

Federal

Electricidad

Senior

Bond

144A,

3.348

2/09/31

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

Mexico

2,000,000

1,817,740

Corp.

Nacional

del

Cobre

Chile

Senior

Bond

Reg

3.75

1/15/31

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

Chile

1,570,000

1,495,224

Costa

Rica

Government

Bond

Senior

Bond

144A,

6.125

2/19/31

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

Costa

Rica

1,930,000

2,010,964

Dominican

Republic

Government

Bond

Senior

Bond,

Reg

6%,

7/19/28

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

Dominican

Republic

1,540,000

1,564,871

Senior

Bond,

Reg

4.875%,

9/23/32

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

Dominican

Republic

1,630,000

1,541,898

Eagle

Funding

Luxco

SARL

Senior

Note

144A,

5.5

8/17/30

Mexico

1,100,000

1,109,845

Ecopetrol

Senior

Bond

4.625

11/02/31

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

Colombia

880,000

793,367

Egypt

Government

Bond

Senior

Bond

Reg

7.6

3/01/29

Egypt

1,120,000

1,151,514

Salvador

Government

Bond

Senior

Bond

Reg

8.625

2/28/29

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

Salvador

1,430,000

1,524,401

Electricite

France

Senior

Note

144A,

5.7

5/23/28

....

France

1,700,000

1,738,406

Guatemala

Government

Bond

Senior

Bond,

Reg

6.6%,

6/13/36

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

Guatemala

2,200,000

2,365,000

Senior

Note,

144A,

7.05%,

10/04/32

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

Guatemala

710,000

775,125

Hungary

Government

Bond

Senior

Note

Reg

5.25

6/16/29

Hungary

1,680,000

1,710,033

Indonesia

Government

Bond

Senior

Bond

Reg

4.35

1/08/27

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

Indonesia

1,570,000

1,573,672

Ivory

Coast

Government

Bond

Senior

Bond

Reg

6.125

6/15/33

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

Ivory

Coast

2,470,000

2,418,580

Kazakhstan

Government

Bond

Senior

Bond

Reg

4.714

4/09/35

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

Kazakhstan

1,890,000

1,864,026

Mexico

Government

Bond

Senior

Bond

2.659

5/24/31

.....

Mexico

1,990,000

1,771,399

Montenegro

Government

Bond

Senior

Note

144A,

4.875

4/01/32

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

Montenegro

990,000

EUR

1,169,647

Nigeria

Government

Bond

Senior

Note

144A,

8.375

3/24/29

Nigeria

1,450,000

1,551,268

North

Macedonia

Government

Bond

Senior

Note

144A,

4.75

1/21/34

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

North

Macedonia

450,000

EUR

515,181

Paraguay

Government

Bond

Senior

Bond

144A,

3.849

6/28/33

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

Paraguay

2,950,000

2,770,787

Peru

Government

Bond

Senior

Bond

2.783

1/23/31

.......

Peru

2,660,000

2,451,057

Petroleos

Mexicanos

Senior

Note

6.7

2/16/32

...........

Mexico

980,000

983,807

Philippines

Government

Bond

Senior

Bond

5.5

2/04/35

....

Philippines

2,360,000

2,424,809

Power

Finance

Corp.

Ltd.

Senior

Bond

Reg

3.95

4/23/30

India

1,690,000

1,636,730

Romania

Government

Bond

Senior

Bond,

Reg

5.625%,

2/22/36

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

Romania

1,960,000

EUR

2,243,358

Senior

Note,

Reg

3%,

2/27/27

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

Romania

1,990,000

1,960,872

Serbia

Government

Bond

Senior

Note

144A,

6.25

5/26/28

Serbia

1,880,000

1,931,326

South

Africa

Government

Bond

Senior

Bond,

4.85%,

9/27/27

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

South

Africa

1,470,000

1,473,961

Senior

Bond,

5.875%,

4/20/32

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

South

Africa

1,530,000

1,553,013

Turkiye

Government

Bond

Senior

Bond

5.95

1/15/31

......

Turkiye

3,430,000

3,368,805

Uruguay

Government

Bond

Senior

Bond

4.375

1/23/31

....

Uruguay

2,660,000

2,672,768

Uzbekistan

Government

Bond

Senior

Note

144A,

6.9

2/28/32

Uzbekistan

1,620,000

1,739,774

Total

Foreign

Government

and

Agency

Securities

(Cost

$71,803,891)

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

72,813,357

U.S.

Government

and

Agency

Securities

14.6%

FFCB

2.1

2/25/36

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

United

States

7,700,000

6,160,168

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

U.S.

Government

and

Agency

Securities

(continued)

U.S.

Treasury

Bonds

3.875%,

2/15/43

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

United

States

19,000,000

16,753,399

4.125%,

8/15/44

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

United

States

18,500,000

16,638,076

2.5%,

5/15/46

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

United

States

40,450,000

27,529,701

2.875%,

5/15/49

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

United

States

55,250,000

38,851,973

4.25%,

8/15/54

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

United

States

134,700,000

119,175,298

4.75%,

8/15/55

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

United

States

1,105,000

1,063,217

U.S.

Treasury

Notes

3.625%,

5/15/26

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

United

States

3,500,000

3,499,825

4.375%,

8/15/26

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

United

States

12,100,000

12,122,817

1.875%,

2/28/27

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

United

States

48,200,000

47,464,672

3.875%,

11/30/27

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

United

States

43,700,000

43,698,293

2.875%,

5/15/28

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

United

States

37,000,000

36,269,395

4.5%,

5/31/29

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

United

States

6,930,000

7,045,861

4.375%,

11/30/30

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

United

States

24,000,000

24,361,406

Total

U.S.

Government

and

Agency

Securities

(Cost

$415,225,550)

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

400,634,101

Asset-Backed

Securities

9.2%

Consumer

Finance

0.2%

Financial

Consumer

Automobile

Receivables

Trust

2026-2

4.15

8/18/31

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

United

States

6,067,000

6,065,334

Financial

Services

9.0%

c,i

Allegro

CLO

XIII

Ltd.

2021-1A

D1R

144A,

FRN

6.825

(

3-month

SOFR

3.15

7/20/38

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

United

States

2,500,000

2,513,595

c,i

Angel

Oak

Mortgage

Trust

2025-HB1

144A,

FRN

5.445

(

30-day

SOFR

Average

1.8

2/25/55

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

United

States

1,155,255

1,161,691

c,i

Apex

Credit

CLO

LLC

2021-2A

A1AR

144A,

FRN

4.855

(

3-month

SOFR

1.18

10/20/34

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

United

States

5,100,000

5,105,905

c,i

Bain

Capital

Credit

CLO

Ltd.

2022-2A

A1R

144A,

FRN

4.814

(

3-month

SOFR

1.15

4/22/35

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

United

States

5,200,000

5,205,144

c,i

Black

Diamond

CLO

Ltd.

2021-1A

A1AR

144A,

FRN

4.914

(

3-month

SOFR

1.25

11/22/34

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

United

States

4,132,000

4,137,685

c,i

BlueMountain

CLO

XXXI

Ltd.

2021-31A

A1R

144A,

FRN

4.775

(

3-month

SOFR

1.1

4/19/34

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

United

States

12,470,000

12,481,173

BofA

Auto

Trust

2026-1A

144A,

4.18

10/15/30

.......

United

States

8,620,000

8,603,470

BRAVO

Residential

Funding

Trust

2024-CES1,

A1A,

144A,

6.377%,

4/25/54

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

United

States

2,489,631

2,512,508

2025-HE1,

A1,

144A,

FRN,

4.995%,

(30-day

SOFR

Average

1.35%),

9/25/72

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

United

States

2,612,774

2,620,190

c,i

Carlyle

Global

Market

Strategies

CLO

Ltd.

2014-2RA

144A,

FRN

5.739

(

3-month

SOFR

2.087

5/15/31

........

United

States

580,000

581,762

CarMax

Auto

Owner

Trust

2026-2,

A2A,

4.11%,

8/15/29

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

United

States

8,288,000

8,295,857

2026-2,

A3,

4.22%,

6/16/31

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

United

States

5,086,000

5,089,342

c,i

CIFC

Funding

Ltd.

2017-4A,

A2R,

144A,

FRN,

5.479%,

(3-month

SOFR

1.812%),

10/24/30

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

United

States

4,319,957

4,320,042

2020-1A,

A1R,

144A,

FRN,

5.085%,

(3-month

SOFR

1.412%),

7/15/36

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

United

States

6,090,000

6,101,190

Compass

Datacenters

Issuer

LLC

2024-2A,

A1,

144A,

5.022%,

8/25/49

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

United

States

1,191,000

1,190,676

2025-1A,

A1,

144A,

5.316%,

5/25/50

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

United

States

1,279,000

1,284,775

2025-2A,

A1,

144A,

4.926%,

11/25/50

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

United

States

6,207,000

6,101,459

Compass

Datacenters

Issuer

III

LLC

2025-1A

144A,

5.656

2/25/50

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

United

States

3,900,000

3,926,788

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Asset-Backed

Securities

(continued)

Financial

Services

(continued)

c,i

Dryden

CLO

Ltd.

2017-53A

144A,

FRN

4.673

(

3-month

SOFR

1/15/31

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

United

States

3,070,379

3,070,414

c,i

Dryden

CLO

Ltd.

2019-75A

AR3

144A,

FRN

4.713

(

3-month

SOFR

1.04

4/14/34

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

United

States

12,600,000

12,590,891

FIGRE

Trust

2025-FL1,

A1,

144A,

5.265%,

7/25/55

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

United

States

1,917,296

1,917,539

2025-FL2,

A1,

144A,

5.053%,

11/25/55

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

United

States

1,620,604

1,612,232

2025-HE4,

144A,

FRN,

5.408%,

7/25/55

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

United

States

4,634,844

4,649,144

2025-HE5,

144A,

FRN,

5.285%,

8/25/55

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

United

States

1,390,593

1,390,082

c,i

Greywolf

CLO

Ltd.

2013-1A

A1SR

144A,

FRN

5.073

(

3-month

SOFR

1.4

4/15/34

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

United

States

1,000,000

1,001,665

Mortgage-Backed

Securities

Trust

2025-CES2,

A1,

144A,

5.18%,

9/25/55

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

United

States

2,102,907

2,099,132

2025-HE1,

A1,

144A,

FRN,

5.195%,

(30-day

SOFR

Average

1.55%),

10/25/55

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

United

States

3,091,097

3,101,102

Home

Partners

America

Trust

2021-2,

144A,

2.302%,

12/17/26

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

United

States

11,867,096

11,678,566

2021-3,

144A,

2.649%,

1/17/41

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

United

States

4,265,909

3,998,349

c,f

Iskandar

Enterprise

LLC

2026-1A

A21

144A,

5.049

4/17/56

United

States

10,262,000

10,285,730

J.P.

Morgan

Mortgage

Trust

2024-CES1,

A1A,

144A,

5.919%,

6/25/54

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

United

States

893,964

898,466

2025-CES2,

A1,

144A,

FRN,

5.592%,

6/25/55

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

United

States

2,789,998

2,801,106

2025-HE3,

A1,

144A,

FRN,

4.99%,

(30-day

SOFR

Average

1.35%),

3/20/56

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

United

States

1,594,376

1,600,596

c,i

LCM

Ltd.

34A

A1R

144A,

FRN

4.855

(

3-month

SOFR

1.18

10/20/34

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

United

States

10,900,000

10,905,295

c,i

MidOcean

Credit

CLO

XVIII

LLC

2025-18A

144A,

FRN

4.845

(

3-month

SOFR

1.17

10/18/35

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

United

States

10,000,000

10,006,767

c,i

Neuberger

Berman

Loan

Advisers

CLO

Ltd.

2021-45A

144A,

FRN

4.729

(

3-month

SOFR

1.06

10/14/36

...

United

States

850,000

850,850

c,i

Neuberger

Berman

Loan

Advisers

CLO

Ltd.

2022-50A

AR2

144A,

FRN

4.706

(

3-month

SOFR

1.04

7/23/36

....

Jersey

1,820,000

1,818,071

c,i

Neuberger

Berman

Loan

Advisers

CLO

Ltd.

2022-51A

AR2

144A,

FRN

4.666

(

3-month

SOFR

10/23/36

......

Jersey

11,300,000

11,276,616

c,i

Octagon

Ltd.

2021-1A

144A,

FRN

4.743

(

3-month

SOFR

1.07

10/15/34

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

United

States

2,125,000

c,i

Octagon

Investment

Partners

Ltd.

2019-1A

A1RR

144A,

FRN

4.823

(

3-month

SOFR

1.15

4/15/35

.........

United

States

7,180,000

7,187,131

ALIFT

Loan

Funding

2025-2

144A,

4.75

3/15/43

United

States

1,194,037

1,182,830

ALIFT

Loan

Funding

2026-1

144A,

4.614

9/15/43

United

States

1,186,000

1,163,264

PRET

LLC

2026-NPL3

144A,

4.968

2/25/56

.........

United

States

8,406,045

8,347,845

Sabey

Data

Center

Issuer

LLC

2026-1

144A,

5.482

1/20/51

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

United

States

4,974,000

4,937,821

c,i

Trinitas

CLO

XVIII

Ltd.

2021-18A

A1R

144A,

FRN

4.895

(

3-month

SOFR

1.22

1/20/35

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

United

States

10,000,000

10,013,904

Truist

Bank

Auto

Credit-Linked

Notes

2025-1

144A,

4.728

9/26/33

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

United

States

2,842,774

2,843,214

c,i

Venture

CLO

Ltd.

2022-45A

A1R

144A,

FRN

4.945

(

3-month

SOFR

1.27

7/20/35

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

Jersey

13,000,000

13,019,046

c,i

Voya

CLO

Ltd.

2013-2A,

A2AR,

144A,

FRN,

5.328%,

(3-month

SOFR

1.662%),

4/25/31

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

United

States

1,760,885

1,764,387

2013-2A,

BR,

144A,

FRN,

5.778%,

(3-month

SOFR

2.112%),

4/25/31

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

United

States

5,770,000

5,789,907

2016-1A,

BR,

144A,

FRN

5.737%,

(3-month

SOFR

2.062%),

1/20/31

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

United

States

590,000

591,986

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Asset-Backed

Securities

(continued)

Financial

Services

(continued)

c,i

Voya

CLO

Ltd.,

(continued)

2019-3A,

AR,

144A,

FRN,

5.022%,

(3-month

SOFR

1.342%),

10/17/32

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

United

States

1,449,634

1,449,657

c,i

Wind

River

CLO

Ltd.

2021-4A

144A,

FRN

4.902

(

3-month

SOFR

1.23

1/20/35

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

United

States

6,500,000

6,509,144

245,711,001

Total

Asset-Backed

Securities

(Cost

$252,262,099)

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

251,776,335

Commercial

Mortgage-Backed

Securities

6.2%

Financial

Services

6.1%

Banc

America

Commercial

Mortgage

Trust

2015-UBS7

FRN

4.429

9/15/48

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

United

States

1,059,534

1,049,290

k,l

BANK

2020-BN26

IO,

FRN

1.305

3/15/63

..........

United

States

26,468,234

879,500

BANK5

Trust

c,l

2025-5YR13,

XA,

IO,

144A,

FRN,

1.284%,

1/15/58

.........

United

States

49,381,938

1,762,244

2025-5YR14,

XA,

IO,

FRN,

1.2%,

4/15/58

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

United

States

50,114,123

1,734,325

2025-5YR18,

AS,

FRN,

5.466%,

12/15/58

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

United

States

3,758,000

3,793,309

k,l

BBCMS

Mortgage

Trust

2024-5C31,

XA,

IO,

FRN,

1.281%,

12/15/57

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

United

States

38,512,897

1,296,895

2025-5C33,

XA,

IO,

FRN,

1.038%,

3/15/58

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

United

States

89,250,615

2,508,129

BBCMS

Trust

2026-5C41

FRN

5/15/69

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

United

States

3,000,000

3,029,876

Benchmark

Mortgage

Trust

2019-B13,

A2,

2.889%,

8/15/57

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

United

States

5,285,807

5,084,721

k,l

2020-B20,

XA,

IO,

FRN,

1.62%,

10/15/53

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

United

States

35,780,061

1,605,999

k,l

2020-B22,

XA,

IO,

FRN,

1.602%,

1/15/54

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

United

States

26,297,137

1,458,952

k,l

2024-V12,

XA,

IO,

FRN,

1.067%,

12/15/57

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

United

States

51,021,128

1,449,163

k,l

2025-V13,

XA,

IO,

FRN,

1.132%,

2/15/58

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

United

States

46,939,000

1,325,487

k,l

2025-V14,

XA,

IO,

FRN,

0.981%,

4/15/57

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

United

States

78,337,435

2,106,838

2025-V19,

AS,

FRN,

5.597%,

1/15/58

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

United

States

3,779,000

3,858,609

2026-V21,

AS,

5.506%,

3/15/59

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

United

States

2,696,000

2,745,892

k,l

2026-V21,

XA,

IO,

FRN,

1.648%,

3/15/59

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

United

States

24,070,864

1,481,304

k,l

BMO

Mortgage

Trust

2024-5C8,

XA,

IO,

FRN,

1.239%,

12/15/57

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

United

States

47,149,769

1,576,669

2025-5C9,

XA,

IO,

FRN,

0.923%,

4/15/58

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

United

States

73,077,203

1,821,895

c,i

Commercial

Mortgage

Trust

2026-CSMO

144A,

FRN

5.355

(

1-month

SOFR

1.7

2/15/43

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

United

States

5,400,000

5,419,508

Trust

2025-ARIA,

144A,

FRN,

5.701%,

12/13/42

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

United

States

5,210,000

5,233,936

2025-VOLT,

144A,

FRN,

5.355%,

(1-month

SOFR

1.7%),

12/15/44

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

United

States

1,834,000

1,836,043

CFCRE

Commercial

Mortgage

Trust

2016-C6,

3.804%,

11/10/49

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

United

States

3,371,000

3,224,719

2016-C7,

A3,

3.839%,

12/10/54

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

United

States

2,540,000

2,527,317

CGMS

Commercial

Mortgage

Trust

2017-B1

FRN

3.711

8/15/50

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

United

States

3,326,000

3,259,006

Citigroup

Commercial

Mortgage

Trust

2016-C3

3.154

11/15/49

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

United

States

6,526,137

6,481,947

COMM

Mortgage

Trust

2012-CR3,

144A,

3.922%,

10/15/45

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

United

States

3,404,473

3,323,096

2012-CR4,

AM,

3.251%,

10/15/45

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

United

States

2,790,000

2,728,436

2014-CR14,

FRN,

3.246%,

2/10/47

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

United

States

1,548,000

1,517,956

2014-CR17,

4.377%,

5/10/47

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

United

States

2,634,330

2,611,404

c,k

2014-UBS6,

144A,

FRN,

3.959%,

12/10/47

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

United

States

2,766,321

2,679,672

2015-CR26,

FRN,

4.837%,

10/10/48

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

United

States

905,026

887,859

2015-LC19,

FRN,

4.567%,

2/10/48

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

United

States

1,119,500

1,092,261

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Commercial

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

k,l

CSAIL

Commercial

Mortgage

Trust

2021-C20

IO,

FRN

1.11

3/15/54

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

United

States

39,258,253

1,371,063

c,k

CSTL

Commercial

Mortgage

Trust

2025-GATE2

144A,

FRN

4.712

11/10/42

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

United

States

3,422,000

3,371,075

Mortgage

Securities

Trust

c,k

2013-GC13,

AS,

144A,

FRN,

3.983%,

7/10/46

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

United

States

999,559

992,293

2014-GC24,

FRN,

4.447%,

9/10/47

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

United

States

1,378,580

1,334,969

2016-GS2,

A4,

3.05%,

5/10/49

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

United

States

412,771

412,159

2016-GS3,

A3,

2.592%,

10/10/49

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

United

States

4,989,001

4,973,862

J.P.

Morgan

Chase

Commercial

Mortgage

Securities

Trust

2016-JP2,

AS,

3.056%,

8/15/49

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

United

States

2,684,000

2,642,960

2016-JP3,

AS,

3.144%,

8/15/49

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

United

States

3,990,000

3,869,651

2016-JP3,

FRN,

3.397%,

8/15/49

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

United

States

1,368,000

1,278,054

c,k

JPMBB

Commercial

Mortgage

Securities

Trust

2014-C19

144A,

FRN

3.75

4/15/47

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

United

States

3,098,225

3,043,645

JPMCC

Commercial

Mortgage

Securities

Trust

2016-C4

3.385

12/15/49

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

United

States

5,571,000

5,360,267

c,k

MAD

Commercial

Mortgage

Trust

2025-11MD

144A,

FRN

6.571

10/15/42

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

United

States

4,951,000

5,014,492

Morgan

Stanley

Bank

America

Merrill

Lynch

Trust

2013-C10,

FRN,

4.082%,

7/15/46

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

United

States

3,221,993

3,065,743

2013-C10,

FRN,

4.082%,

7/15/46

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

United

States

4,935,000

4,574,484

2013-C9,

FRN,

3.708%,

5/15/46

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

United

States

2,886,507

2,757,476

2013-C9,

FRN,

3.829%,

5/15/46

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

United

States

3,888,000

3,599,506

k,l

2025-5C1,

XA,

IO,

FRN,

1.377%,

3/15/58

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

United

States

39,340,212

1,522,222

2025-5C2,

AS,

5.384%,

11/15/58

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

United

States

4,968,000

5,025,397

Morgan

Stanley

Capital

Trust

2018-H3,

AS,

FRN,

4.429%,

7/15/51

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

United

States

2,265,000

2,232,636

2021-L5,

XA,

IO,

FRN,

1.382%,

5/15/54

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

United

States

32,952,093

1,484,960

c,k

NYC

Commercial

Mortgage

Trust

2025-28L

144A,

FRN

4.824

11/05/38

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

United

States

4,200,000

4,190,886

c,k

VEGAS

2024-GCS

144A,

FRN

6.424

7/10/36

.........

United

States

2,750,000

2,734,996

c,k

VRTX

Trust

2025-HQ

144A,

FRN

6.815

8/05/42

.......

United

States

3,960,000

3,960,459

Wells

Fargo

Commercial

Mortgage

Trust

2016-C33,

144A,

3.123%,

3/15/59

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

United

States

2,482,514

2,428,209

c,k

2016-C34,

144A,

FRN,

5.294%,

6/15/49

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

United

States

2,819,995

2,754,761

2018-C46,

AS,

4.382%,

8/15/51

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

United

States

2,363,000

2,321,777

k,l

2025-5C3,

XA,

IO,

FRN,

1.044%,

1/15/58

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

United

States

41,712,264

1,143,316

2025-5C4,

AS,

6.093%,

5/15/58

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

United

States

3,517,000

3,641,533

WFRBS

Commercial

Mortgage

Trust

2014-C21,

FRN,

4.213%,

8/15/47

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

United

States

2,301,088

2,267,601

2014-C23,

FRN,

4.408%,

10/15/57

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

United

States

1,881,000

1,849,041

168,611,750

Retail

REITs

0.1%

c,k

Fashion

Show

Mall

LLC

2024-SHOW

144A,

FRN

5.274

10/10/41

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

United

States

2,962,000

2,986,492

Total

Commercial

Mortgage-Backed

Securities

(Cost

$171,321,140)

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

171,598,242

Mortgage-Backed

Securities

30.7%

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Adjustable

Rate

0.0%

†

FHLMC,

5.848%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

1/01/33

United

States

6,556

6,680

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

3.5%

FHLMC

Gold

Pool,

Year,

5%,

5/01/27

5/01/30

...........

United

States

32,279

32,500

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Mortgage-Backed

Securities

(continued)

Federal

Home

Loan

Mortgage

Corp.

(FHLMC)

Fixed

Rate

(continued)

FHLMC

Gold

Pool,

Year,

4.5%,

10/01/40

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

United

States

28,719

28,527

FHLMC

Gold

Pool,

Year,

5%,

3/01/34

2/01/38

...........

United

States

148,988

150,197

FHLMC

Gold

Pool,

Year,

5.5%,

6/01/33

6/01/36

.........

United

States

239,553

246,027

FHLMC

Gold

Pool,

Year,

6%,

6/01/33

6/01/37

...........

United

States

119,619

124,108

FHLMC

Gold

Pool,

Year,

6.5%,

6/01/29

6/01/36

.........

United

States

24,079

25,455

FHLMC

Gold

Pool,

Year,

7%,

8/01/32

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

United

States

1,074

1,135

FHLMC

Gold

Pool,

Year,

7.5%,

1/01/31

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

United

States

862

890

FHLMC

Pool,

Year,

2%,

3/01/52

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

United

States

30,227,648

24,322,475

FHLMC

Pool,

Year,

4%,

6/01/52

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

United

States

31,212,528

29,363,712

FHLMC

Pool,

Year,

4.5%,

8/01/52

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

United

States

21,188,032

20,459,284

FHLMC

Pool,

Year,

5.5%,

11/01/52

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

United

States

21,191,294

21,425,138

96,179,448

Federal

National

Mortgage

Association

(FNMA)

Adjustable

Rate

0.0%

†

FNMA,

6.05%,

(1-year

CMT

T-Note

+/-

MBS

Margin),

12/01/34

United

States

24,417

25,068

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

18.6%

FNMA,

Year,

2.5%,

7/01/27

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

United

States

10,989

10,887

FNMA,

Year,

4.5%,

3/01/28

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

United

States

1,964

1,961

FNMA,

Year,

5%,

3/01/28

6/01/31

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

United

States

54,021

54,316

FNMA,

Year,

2%,

4/01/52

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

United

States

91,977,236

74,002,276

FNMA,

Year,

3%,

9/01/48

9/01/51

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

United

States

12,817,309

11,383,038

FNMA,

Year,

3.5%,

8/01/52

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

United

States

29,816,427

27,380,575

FNMA,

Year,

4%,

2/01/49

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

United

States

6,373,621

6,101,913

FNMA,

Year,

4.5%,

2/01/41

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

United

States

93,600

92,862

FNMA,

Year,

5%,

10/01/35

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

United

States

187,849

190,241

FNMA,

Year,

5%,

4/01/53

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

United

States

20,426,406

20,235,354

FNMA,

Year,

5.5%,

9/01/33

12/01/35

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

United

States

275,432

281,425

FNMA,

Year,

6%,

6/01/34

5/01/38

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

United

States

471,619

487,063

FNMA,

Year,

6%,

8/01/53

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

United

States

16,693,055

17,133,415

FNMA,

Year,

6.5%,

3/01/28

10/01/37

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

United

States

76,304

80,308

FNMA,

Year,

7.5%,

10/01/29

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

United

States

958

980

Uniform

Mortgage-Backed

Securities,

1.5%,

TBA,

5/25/56

.....

United

States

15,910,000

12,189,343

Uniform

Mortgage-Backed

Securities,

2%,

TBA,

5/25/56

......

United

States

7,099,000

5,681,772

Uniform

Mortgage-Backed

Securities,

2.5%,

TBA,

5/25/56

.....

United

States

110,861,000

92,847,788

Uniform

Mortgage-Backed

Securities,

3%,

TBA,

5/25/56

......

United

States

51,901,000

45,444,776

Uniform

Mortgage-Backed

Securities,

4.5%,

TBA,

5/25/56

.....

United

States

46,500,000

44,734,862

Uniform

Mortgage-Backed

Securities,

5%,

TBA,

5/25/56

......

United

States

43,050,000

42,418,225

Uniform

Mortgage-Backed

Securities,

5.5%,

TBA,

5/25/56

.....

United

States

79,590,000

79,998,345

Uniform

Mortgage-Backed

Securities,

6%,

TBA,

5/25/56

......

United

States

29,040,000

29,649,514

510,401,239

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

8.6%

GNMA

Single-family,

Year,

5%,

6/15/34

7/15/34

........

United

States

22,778

22,958

GNMA

Single-family,

Year,

5.5%,

2/15/33

6/15/36

......

United

States

116,170

117,030

GNMA

Single-family,

Year,

6%,

8/15/36

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

United

States

5,272

5,523

GNMA

Single-family,

Year,

7.5%,

5/15/27

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

United

States

GNMA

II,

Single-family,

Year,

2%,

5/15/56

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

United

States

34,310,000

28,237,765

GNMA

II,

Single-family,

Year,

2.5%,

5/15/56

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

United

States

14,570,000

12,482,616

GNMA

II,

Single-family,

Year,

3.5%,

5/15/56

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

United

States

19,960,000

18,045,867

GNMA

II,

Single-family,

Year,

4.5%,

5/15/56

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

United

States

23,000,000

22,184,219

GNMA

II,

Single-family,

Year,

5%,

9/20/33

11/20/33

.......

United

States

46,030

46,580

GNMA

II,

Single-family,

Year,

5%,

5/15/56

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

United

States

18,439,000

18,281,816

GNMA

II,

Single-family,

Year,

5.5%,

6/20/34

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

United

States

25,006

25,777

GNMA

II,

Single-family,

Year,

5.5%,

5/15/56

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

United

States

27,833,000

28,032,938

GNMA

II,

Single-family,

Year,

6%,

11/20/34

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

United

States

28,178

29,510

GNMA

II,

Single-family,

Year,

6%,

5/15/56

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

United

States

81,518,000

83,116,894

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Mortgage-Backed

Securities

(continued)

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

(continued)

GNMA

II,

Single-family,

Year,

6.5%,

7/20/28

12/20/31

.....

United

States

12,992

13,598

GNMA

II,

Single-family,

Year,

6.5%,

5/15/56

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

United

States

23,635,000

24,690,741

GNMA

II,

Single-family,

Year,

7.5%,

4/20/32

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

United

States

3,810

3,895

235,337,784

Total

Mortgage-Backed

Securities

(Cost

$842,876,345)

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

841,950,219

Residential

Mortgage-Backed

Securities

3.0%

Financial

Services

3.0%

c,i

Bellemeade

Ltd.

2021-3A

144A,

FRN

7.495

(

30-day

SOFR

Average

3.85

9/25/31

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

United

States

2,675,000

2,749,788

BRAVO

Residential

Funding

Trust

2019-2,

A3,

144A,

FRN,

3.5%,

10/25/44

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

United

States

1,663,600

1,598,234

2023-NQM6,

A1,

144A,

6.602%,

9/25/63

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

United

States

820,828

822,961

2024-NQM3,

A1,

144A,

6.191%,

3/25/64

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

United

States

780,395

786,334

c,i

Chase

Home

Lending

Mortgage

Trust

2025-3,

A11,

144A,

FRN,

4.945%,

(

30-day

SOFR

Average

1.3%),

2/25/56

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

United

States

1,788,235

1,786,735

2025-7,

A11,

144A,

FRN,

5.045%,

(30-day

SOFR

Average

1.4%),

5/25/56

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

United

States

1,577,870

1,583,936

c,k

CIM

Trust

2019-INV1,

A1,

144A,

FRN,

4%,

2/25/49

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

United

States

368,820

352,562

2019-INV2,

A3,

144A,

FRN,

4%,

5/25/49

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

United

States

1,085,630

1,029,429

c,i

Citigroup

Mortgage

Loan

Trust

2025-4

A28

144A,

FRN

4.945

(

30-day

SOFR

Average

1.3

10/25/55

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

United

States

1,426,211

1,431,094

Cross

Mortgage

Trust

2024-H1

144A,

6.085

12/25/68

United

States

584,285

587,518

c,i

FHLMC

STACR

REMIC

Trust

2023-DNA2,

M1A,

144A,

FRN,

5.745%,

(30-day

SOFR

Average

2.1%),

4/25/43

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

United

States

1,348,666

1,366,040

2025-DNA1,

A1,

144A,

FRN,

4.595%,

(30-day

SOFR

Average

0.95%),

1/25/45

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

United

States

1,750,770

1,752,683

2025-DNA3,

M1,

144A,

FRN,

4.745%,

(30-day

SOFR

Average

1.1%),

9/25/45

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

United

States

2,655,378

2,656,685

c,i

FNMA

Connecticut

Avenue

Securities

Trust

2025-R01,

1M1,

144A,

FRN,

4.745%,

(30-day

SOFR

Average

1.1%),

1/25/45

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

United

States

944,679

945,056

2025-R02,

1A1,

144A,

FRN,

4.645%,

(30-day

SOFR

Average

1%),

2/25/45

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

United

States

1,076,263

1,078,382

2025-R03,

2A1,

144A,

FRN,

5.095%,

(30-day

SOFR

Average

1.45%),

3/25/45

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

United

States

1,398,972

1,407,189

2025-R04,

1A1,

144A,

FRN,

4.645%,

(30-day

SOFR

Average

1%),

5/25/45

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

United

States

1,300,303

1,302,503

2026-R01,

2M1,

144A,

FRN,

4.645%,

(30-day

SOFR

Average

1%),

1/25/46

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

United

States

3,175,594

3,177,587

2026-R03,

2A1,

144A,

FRN,

4.74%,

(30-day

SOFR

Average

1.1%),

4/25/46

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

United

States

8,991,000

9,055,721

c,i

Mortgage-Backed

Securities

Trust

2025-PJ8

A27

144A,

FRN

4.945

(

30-day

SOFR

Average

1.3

2/25/56

.....

United

States

719,423

721,376

c,i

Home

Ltd.

2026-1

M1C

144A,

FRN

6.245

(

30-day

SOFR

Average

2.6

1/25/36

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

United

States

978,000

984,890

HOMES

Trust

2024-NQM1

144A,

5.915

7/25/69

......

United

States

563,192

567,048

Imperial

Fund

Mortgage

Trust

2023-NQM1

144A,

5.941

2/25/68

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

United

States

1,669,896

1,673,082

J.P.

Morgan

Mortgage

Trust

2021-15,

A4,

144A,

FRN,

2.5%,

6/25/52

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

United

States

3,110,898

2,787,051

2025-VIS2,

A2,

144A,

5.638%,

12/25/55

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

United

States

2,937,729

2,943,580

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Residential

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

c,k

LHOME

Mortgage

Trust

2025-RTL2

144A,

FRN

5.612

4/25/40

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

United

States

897,000

901,552

c,k

Mill

City

Mortgage

Loan

Trust

2018-4

A1B

144A,

FRN

3.5

4/25/66

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

United

States

3,156,124

3,106,246

Morgan

Stanley

Residential

Mortgage

Loan

Trust

2024-NQM1

144A,

6.152

12/25/68

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

United

States

1,658,416

1,669,296

OBX

Trust

2021-J3,

A4,

144A,

FRN,

2.5%,

10/25/51

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

United

States

881,829

792,841

2023-NQM7,

A1,

144A,

6.844%,

4/25/63

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

United

States

1,504,543

1,512,104

2024-NQM2,

A1,

144A,

5.878%,

12/25/63

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

United

States

948,739

953,300

2024-NQM3,

A1,

144A,

6.129%,

12/25/63

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

United

States

1,262,363

1,270,794

2024-NQM8,

A1,

144A,

6.233%,

5/25/64

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

United

States

1,936,039

1,954,879

2025-J2,

AF,

144A,

FRN,

4.945%,

(

30-day

SOFR

Average

1.3%),

9/25/55

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

United

States

3,016,134

3,026,662

c,k

OLIT

2025-HB2

144A,

FRN

11/25/38

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

United

States

2,001,781

1,957,411

c,k

Onity

Loan

Investment

Trust

2025-HB1

144A,

FRN

6/25/38

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

United

States

1,249,794

1,227,347

c,i

PMT

Loan

Trust

2025-J2

A11

144A,

FRN

4.995

(

30-day

SOFR

Average

1.35

8/25/56

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

United

States

456,006

458,161

c,k

Provident

Funding

Associates

LLP

2021-J1

144A,

FRN

2.5

2/20/49

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

United

States

1,428,306

1,277,022

c,k

Provident

Funding

Mortgage

Trust

2019-1

144A,

FRN

12/25/49

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

United

States

1,215,806

1,059,082

PRPM

LLC

2026-1

144A,

5.185

2/25/31

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

United

States

3,800,130

3,767,265

c,k

PSMC

Trust

2021-3

144A,

FRN

2.5

8/25/51

.........

United

States

7,790,182

7,044,184

c,i

Radian

Mortgage

Capital

Trust

2025-J3

A25

144A,

FRN

5.145

(

30-day

SOFR

Average

1.5

12/25/55

........

United

States

2,186,648

2,198,380

c,i

Sequoia

Mortgage

Trust

2025-8

A26F

144A,

FRN

5.045

(

30-

day

SOFR

Average

1.4

9/25/55

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

United

States

1,633,825

1,641,078

Verus

Securitization

Trust

2023-6,

A1,

144A,

6.665%,

9/25/68

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

United

States

363,884

365,476

2024-4,

A1,

144A,

6.218%,

6/25/69

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

United

States

1,259,235

1,273,187

82,603,731

Total

Residential

Mortgage-Backed

Securities

(Cost

$84,420,817)

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

82,603,731

Agency

Commercial

Mortgage-Backed

Securities

4.5%

Financial

Services

4.5%

FHLMC

4988,

LI,

IO,

4%,

7/25/50

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

United

States

25,548,481

5,888,858

5052,

KI,

IO,

4%,

12/25/50

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

United

States

19,247,359

3,944,660

5070,

HI,

IO,

3.5%,

2/25/51

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

United

States

28,976,200

5,420,949

5124,

YI,

IO,

3%,

7/25/51

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

United

States

14,700,640

2,543,539

5125,

IL,

IO,

4.5%,

11/15/47

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

United

States

22,106,705

4,660,124

5147,

NI,

IO,

3%,

10/25/46

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

United

States

66,099,337

9,394,652

5164,

IC,

IO,

4%,

11/25/51

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

United

States

22,592,216

4,700,618

5187,

EI,

IO,

4.5%,

1/25/52

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

United

States

11,843,493

2,723,019

5206,

IV,

IO,

4%,

1/25/50

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

United

States

30,592,534

4,991,701

5365,

IO,

2.5%,

7/25/51

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

United

States

46,673,093

7,445,586

5457,

IO,

5%,

10/25/54

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

United

States

15,440,818

3,260,712

5529,

EI,

IO,

4.5%,

11/25/51

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

United

States

18,813,393

4,147,941

FNMA

2021-12,

MI,

IO,

3%,

3/25/51

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

United

States

15,683,918

2,938,327

2024-105,

KF,

FRN,

4.645%,

(30-day

SOFR

Average

1%),

1/25/55

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

United

States

8,374,242

8,433,253

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Agency

Commercial

Mortgage-Backed

Securities

(continued)

Financial

Services

(continued)

FNMA,

(continued)

2024-87,

FB,

FRN,

4.745%,

(30-day

SOFR

Average

1.1%),

12/25/54

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

United

States

8,364,979

8,446,386

GNMA

2019-137,

PI,

IO,

3.5%,

11/20/49

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

United

States

28,937,421

5,633,005

2020-151,

MI,

IO,

2.5%,

10/20/50

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

United

States

27,935,517

4,160,825

2022-78,

IO,

3%,

8/20/51

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

United

States

23,102,220

3,864,877

2023-168,

IE,

IO,

3%,

11/20/51

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

United

States

33,531,376

5,457,768

2023-171,

IO,

3%,

2/20/51

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

United

States

14,852,389

2,434,700

2023-40,

CI,

IO,

2%,

10/20/50

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

United

States

20,843,062

2,073,949

2024-79,

IN,

IO,

3%,

11/20/51

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

United

States

22,190,257

4,687,618

2025-169,

FB,

FRN,

4.64%,

(30-day

SOFR

Average

1%),

10/20/55

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

United

States

5,898,651

5,938,680

2025-173,

DI,

IO,

3%,

8/20/51

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

United

States

25,450,062

4,414,440

2025-25,

IG,

IO,

4.5%,

12/20/52

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

United

States

10,921,180

2,182,067

2025-5,

IO,

3.5%,

4/20/51

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

United

States

26,434,098

4,984,427

124,772,681

Total

Agency

Commercial

Mortgage-Backed

Securities

(Cost

$123,805,800)

......

124,772,681

Municipal

Bonds

0.9%

California

0.4%

California

Health

Facilities

Financing

Authority

State

California

Personal

Income

Tax

Revenue

2022

4.19

6/01/37

......

United

States

2,875,000

2,693,267

City

Orange

Revenue

2021

Refunding

2.65

6/01/34

....

United

States

1,305,000

1,119,354

City

Pomona

Revenue

2020

3.716

8/01/40

........

United

States

795,000

683,620

County

Fresno

Revenue

2004

NATL

Insured

4.71

8/15/32

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

United

States

1,710,000

1,280,055

County

Tulare

Revenue

2018

4.445

6/01/37

..........

United

States

2,495,000

2,377,064

State

California

4.35

11/01/32

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

United

States

3,575,000

3,570,935

11,724,295

Florida

0.1%

State

Board

Administration

Finance

Corp.

Florida

Hurricane

Catastrophe

Fund

Revenue

2024

5.526

7/01/34

......

United

States

2,540,000

2,656,664

Georgia

0.0%

†

Georgia

Higher

Education

Facilities

Authority

University

System

Georgia

Revenue

2026

5.273

1/01/40

...........

United

States

615,000

614,961

Illinois

0.1%

State

Illinois

2026

4.954

4/01/33

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

United

States

2,390,000

2,417,780

New

Jersey

0.0%

†

New

Jersey

Transportation

Trust

Fund

Authority

State

New

Jersey

Revenue

2010

6.561

12/15/40

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

United

States

525,000

575,281

New

York

0.1%

New

York

City

Transitional

Finance

Authority

Future

Tax

Secured

Revenue

2026

F-2

4.66

2/01/36

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

United

States

1,925,000

1,887,291

Ohio

0.0%

†

JobsOhio

Beverage

System

Revenue,

Senior

Lien

2020

ETM,

2.833

1/01/38

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

United

States

1,575,000

1,316,401

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Principal

Amount

Value

Municipal

Bonds

(continued)

Pennsylvania

0.2%

Pennsylvania

Economic

Development

Financing

Authority

Revenue

2025

5.689

6/01/54

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

United

States

1,855,000

1,862,680

Redevelopment

Authority

the

City

Philadelphia

City

Philadelphia

Revenue

2026

5.002

11/01/38

.........

United

States

2,895,000

2,852,990

4,715,670

Total

Municipal

Bonds

(Cost

$26,342,800)

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

25,908,343

Escrows

and

Litigation

Trusts

0.0%

†

a,b

All

Day

Electric,

Inc.,

Escrow

Account

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

United

States

291

—

a,b

K2016470219

South

Africa

Ltd.,

Escrow

Account

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

South

Africa

620,001

9,813

Mesquite

Energy,

Inc.,

Escrow

Account

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

United

States

6,000,000

30,300

Total

Escrows

and

Litigation

Trusts

(Cost

$5,707,489)

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

40,113

Total

Long

Term

Investments

(Cost

$3,205,864,279)

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

3,119,202,576

Number

Contracts

Notional

Amount

Options

Purchased

0.1%

Puts

Over-the-Counter

Interest

Rate

Swaptions

0.1%

Receive

Floating

1-day

SOFR,

Pay

Fixed

3.88%,

Counterparty

CITI,

Expires

7/10/26

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

25,374,000

374,491

Receive

Floating

1-day

SOFR,

Pay

Fixed

4.3%,

Counterparty

CITI,

Expires

7/10/26

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

50,748,000

145,602

Receive

Floating

3-month

EURIBOR,

Pay

Fixed

2.765%,

Counterparty

BOFA,

Expires

3/19/27

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

248,789,000

EUR

1,073,850

1,593,943

Total

Options

Purchased

(Cost

$1,482,034)

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

1,593,943

Short

Term

Investments

8.6%

Country

Value

Money

Market

Funds

8.6%

o,p

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

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

United

States

234,995,433

Total

Money

Market

Funds

(Cost

$234,995,433)

...............................

234,995,433

Total

Short

Term

Investments

(Cost

$234,995,433

)

.............................

234,995,433

Total

Investments

(Cost

$3,442,341,746)

122.3%

..............................

$3,355,791,952

TBA

Sale

Commitments

(0.8)%

..............................................

(21,469,454)

Options

Written

(0.1)%

.....................................................

(1,611,285)

Other

Assets,

less

Liabilities

(21.4

........................................

(585,391,943)

Net

Assets

100.0%

.........................................................

$2,747,319,270

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

TBA

Sale

Commitments

(0.8)%

Mortgage-Backed

Securities

(0.8)%

Federal

National

Mortgage

Association

(FNMA)

Fixed

Rate

(0.8)%

Uniform

Mortgage-Backed

Securities

3.5%,

TBA,

5/25/56

................................

United

States

(5,811,000)

(5,290,164)

4%,

TBA,

5/25/56

..................................

United

States

(17,250,000)

(16,179,290)

(21,469,454)

Total

TBA

Sale

Commitments

(Proceeds

$(21,612,812))

........................

$(21,469,454)

Number

Contracts

Notional

Amount

Options

Written

(0.1)%

Puts

Over-the-Counter

Interest

Rate

Swaptions

(0.1)%

Receive

Floating

1-day

SOFR,

Pay

Fixed

4.09%,

Counterparty

CITI,

Expires

7/10/26

...............................

(76,122,000)

(509,880)

Receive

Floating

3-month

EURIBOR,

Pay

Fixed

3.165%,

Counterparty

BOFA,

Expires

3/19/27

...................

(248,789,000)

EUR

(667,713)

Receive

Floating

3-month

EURIBOR,

Pay

Fixed

3.565%,

Counterparty

BOFA,

Expires

3/19/27

...................

(248,789,000)

EUR

(433,692)

(1,611,285)

Total

Options

Written

(Premiums

received

$1,504,514)

.........................

(1,611,285)

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Notional

amount

the

number

contracts

multiplied

contract

size,

and

may

multiplied

the

underlying

price.

May

include

currency

units,

bushels,

shares,

pounds,

barrels

other

units.

Currency

units

are

stated

U.S.

dollars

unless

otherwise

indicated.

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

less

than

0.1%

net

assets.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

Non-income

producing.

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

April

30,

2026,

the

aggregate

value

these

securities

was

$818,189,185,

representing

29.8%

net

assets.

Defaulted

security

for

which

income

has

been

deemed

uncollectible.

See

Note

Income

may

received

additional

securities

and/or

cash.

portion

all

the

security

purchased

delayed

delivery

basis.

See

Note

1(c).

The

rate

shown

represents

the

yield

period

end.

See

Note

1(g)

regarding

senior

floating

rate

interests.

The

coupon

rate

shown

represents

the

rate

inclusive

any

caps

floors,

applicable,

effect

period

end.

See

Note

1(h)

regarding

Marketplace

Lending.

See

full

breakdown

marketplace

loans

holdings

the

table

the

end

this

schedule.

Adjustable

rate

security

with

interest

rate

that

not

based

published

reference

index

and

spread.

The

rate

based

the

structure

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

period

end.

Investment

interest-only

security

entitles

holders

receive

only

the

interest

payment

the

underlying

instruments.

The

principal

amount

shown

the

notional

amount

the

underlying

instruments.

Adjustable

Rate

Mortgage-Backed

Security

(ARM);

the

rate

shown

the

effective

rate

period

end.

ARM

rates

are

not

based

published

reference

rate

and

spread;

they

are

based

the

weighted

average

rates

the

underlying

mortgage

loans,

less

the

applicable

servicing

and

guarantee

fees

(MBS

margin).

Security

purchased

to-be-announced

(TBA)

basis.

See

Note

1(c).

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

Security

sold

to-be-announced

(TBA)

basis

resulting

short

position.

such,

the

Fund

not

subject

fees

and

expenses

associated

with

short

sale

transactions.

See

Note

1(c).

See

Note

1(d)

regarding

written

options.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Core

Plus

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

April

30,

2026,

the

Fund

had

the

following

marketplace

loans

outstanding.

See

Note

1(h).

Description

Principal

Amount

Value

Marketplace

Loans

0.1%

Block,

Inc.

8440181.SQ.FTS.B,

5.639%,

6/02/26

....

1,263

595

8439564.SQ.FTS.B,

5.908%,

6/02/26

....

671

420

a,b

8439931.SQ.FTS.B,

6.559%,

6/02/26

....

1,480

8444430.SQ.FTS.B,

5.666%,

6/03/26

....

386

333

a,b

8445397.SQ.FTS.B,

6.325%,

6/03/26

....

12,637

224

8452856.SQ.FTS.B,

4.769%,

6/04/26

....

a,b

8451575.SQ.FTS.B,

5.409%,

6/04/26

....

20,874

971

8449424.SQ.FTS.B,

6.419%,

6/04/26

....

1,146

668

a,b

8458127.SQ.FTS.B,

5.114%,

6/05/26

....

19,354

344

8461445.SQ.FTS.B,

4.78%,

6/06/26

.....

3,192

2,911

8463921.SQ.FTS.B,

4.948%,

6/06/26

....

582

351

a,b

8463484.SQ.FTS.B,

6.672%,

6/06/26

....

9,869

172

8467646.SQ.FTS.B,

6.657%,

6/08/26

....

915

470

a,b

8470542.SQ.FTS.B,

5.114%,

6/09/26

....

9,729

6,556

a,b

8471165.SQ.FTS.B,

5.635%,

6/09/26

....

18,441

491

a,b

8470455.SQ.FTS.B,

6.325%,

6/09/26

....

984

8476774.SQ.FTS.B,

6.326%,

6/10/26

....

341

191

8480113.SQ.FTS.B,

6.533%,

6/11/26

....

309

157

8485153.SQ.FTS.B,

4.78%,

6/12/26

.....

786

609

8488063.SQ.FTS.B,

4.957%,

6/12/26

....

1,079

459

a,b

8485522.SQ.FTS.B,

6.42%,

6/12/26

.....

13,205

254

8490622.SQ.FTS.B,

4.781%,

6/13/26

....

855

783

8492444.SQ.FTS.B,

5.11%,

6/14/26

.....

710

652

8497694.SQ.FTS.B,

5.11%,

6/16/26

.....

584

567

8496689.SQ.FTS.B,

6.15%,

6/16/26

.....

2,010

998

8506309.SQ.FTS.B,

4.778%,

6/18/26

....

1,411

1,198

a,b

8503138.SQ.FTS.B,

6.415%,

6/18/26

....

1,828

a,b

8512865.SQ.FTS.B,

5.912%,

6/19/26

....

21,196

545

8520522.SQ.FTS.B,

6.114%,

6/22/26

....

176

126

a,b

8520316.SQ.FTS.B,

6.442%,

6/22/26

....

2,461

1,093

8524499.SQ.FTS.B,

4.707%,

6/23/26

....

594

497

a,b

8523060.SQ.FTS.B,

4.979%,

6/23/26

....

1,036

a,b

8523082.SQ.FTS.B,

6.335%,

6/23/26

....

3,415

8525381.SQ.FTS.B,

4.776%,

6/24/26

....

2,135

1,630

8526175.SQ.FTS.B,

4.927%,

6/24/26

....

187

105

a,b

8530595.SQ.FTS.B,

6.289%,

6/25/26

....

11,746

191

8533616.SQ.FTS.B,

5.338%,

6/26/26

....

682

558

8531192.SQ.FTS.B,

5.914%,

6/26/26

....

2,730

1,667

a,b

8534044.SQ.FTS.B,

6.448%,

6/26/26

....

11,141

226

a,b

8539874.SQ.FTS.B,

5.031%,

6/28/26

....

8,313

101

a,b

8540718.SQ.FTS.B,

5.343%,

6/29/26

....

3,501

8546597.SQ.FTS.B,

4.717%,

6/30/26

....

593

515

a,b

8557100.SQ.FTS.B,

4.945%,

7/03/26

....

2,142

8560945.SQ.FTS.B,

5.904%,

7/05/26

....

568

384

8586236.SQ.FTS.B,

5.029%,

7/06/26

....

322

315

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

8590354.SQ.FTS.B,

5.348%,

7/06/26

....

2,989

a,b

8592557.SQ.FTS.B,

6.095%,

7/06/26

....

2,028

8593881.SQ.FTS.B,

4.717%,

7/07/26

....

a,b

8596048.SQ.FTS.B,

5.598%,

7/07/26

....

15,182

551

8598300.SQ.FTS.B,

4.717%,

7/08/26

....

8598520.SQ.FTS.B,

5.031%,

7/08/26

....

2,831

2,578

8598846.SQ.FTS.B,

5.596%,

7/08/26

....

2,941

2,505

a,b

8603241.SQ.FTS.B,

5.031%,

7/09/26

....

5,719

117

a,b

8604154.SQ.FTS.B,

5.031%,

7/09/26

....

26,722

17,752

8605739.SQ.FTS.B,

5.621%,

7/09/26

....

a,b

8608202.SQ.FTS.B,

5.66%,

7/10/26

.....

340

a,b

8606413.SQ.FTS.B,

6.45%,

7/10/26

.....

5,442

100

8609461.SQ.FTS.B,

5.031%,

7/11/26

....

159

148

8613403.SQ.FTS.B,

4.717%,

7/13/26

....

1,904

1,832

8611635.SQ.FTS.B,

4.722%,

7/13/26

....

1,498

1,067

8612102.SQ.FTS.B,

6.099%,

7/13/26

....

903

748

8617158.SQ.FTS.B,

6.101%,

7/14/26

....

645

569

8618340.SQ.FTS.B,

4.95%,

7/15/26

.....

151

8621156.SQ.FTS.B,

5.347%,

7/15/26

....

7,890

7,076

a,b

8621035.SQ.FTS.B,

6.443%,

7/15/26

....

1,808

8627682.SQ.FTS.B,

4.721%,

7/16/26

....

1,343

1,259

a,b

8627433.SQ.FTS.B,

5.603%,

7/16/26

....

2,693

1,580

8625165.SQ.FTS.B,

5.64%,

7/16/26

.....

1,051

550

a,b

8625097.SQ.FTS.B,

6.081%,

7/16/26

....

1,551

a,b

8625055.SQ.FTS.B,

6.44%,

7/16/26

.....

1,294

a,b

8624623.SQ.FTS.B,

6.445%,

7/16/26

....

1,687

951

a,b

8630161.SQ.FTS.B,

4.928%,

7/17/26

....

738

345

a,b

8630113.SQ.FTS.B,

6.11%,

7/17/26

.....

3,058

a,b

8632209.SQ.FTS.B,

5.619%,

7/18/26

....

348

8633413.SQ.FTS.B,

5.028%,

7/20/26

....

860

751

8633610.SQ.FTS.B,

5.918%,

7/20/26

....

8633174.SQ.FTS.B,

6.289%,

7/20/26

....

413

203

8634408.SQ.FTS.B,

4.715%,

7/21/26

....

2,896

1,876

8635256.SQ.FTS.B,

5.031%,

7/21/26

....

16,661

12,113

8639095.SQ.FTS.B,

5.031%,

7/22/26

....

18,046

11,279

8637462.SQ.FTS.B,

6.1%,

7/22/26

......

4,426

3,781

8640249.SQ.FTS.B,

6.448%,

7/22/26

....

2,329

1,417

8646055.SQ.FTS.B,

6.094%,

7/23/26

....

790

618

a,b

8652314.SQ.FTS.B,

6.447%,

7/26/26

....

1,492

a,b

8659412.SQ.FTS.B,

4.72%,

7/28/26

.....

7,284

3,876

8656818.SQ.FTS.B,

5.031%,

7/28/26

....

2,451

1,823

a,b

8661211.SQ.FTS.B,

6.499%,

7/28/26

....

130

8665558.SQ.FTS.B,

4.719%,

7/29/26

....

2,284

1,996

8666384.SQ.FTS.B,

6.1%,

7/29/26

......

15,283

11,241

a,b

8662647.SQ.FTS.B,

6.445%,

7/29/26

....

3,734

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

8673280.SQ.FTS.B,

5.036%,

7/30/26

....

2,193

1,728

8674563.SQ.FTS.B,

5.344%,

7/30/26

....

4,294

3,149

a,b

8671964.SQ.FTS.B,

5.346%,

7/30/26

....

6,031

2,311

a,b

8674744.SQ.FTS.B,

6.472%,

7/30/26

....

879

447

8677309.SQ.FTS.B,

4.719%,

7/31/26

....

5,220

4,395

8680247.SQ.FTS.B,

5.027%,

8/01/26

....

8680461.SQ.FTS.B,

5.031%,

8/01/26

....

2,569

2,372

8684229.SQ.FTS.B,

4.722%,

8/03/26

....

675

605

8689297.SQ.FTS.B,

5.031%,

8/04/26

....

1,843

1,755

8688026.SQ.FTS.B,

5.912%,

8/04/26

....

291

277

a,b

8692180.SQ.FTS.B,

5.912%,

8/04/26

....

34,128

718

8693676.SQ.FTS.B,

5.031%,

8/05/26

....

874

844

a,b

8697792.SQ.FTS.B,

5.343%,

8/05/26

....

5,744

113

8704195.SQ.FTS.B,

5.612%,

8/06/26

....

8706579.SQ.FTS.B,

5.597%,

8/07/26

....

7,714

5,191

8712364.SQ.FTS.B,

6.447%,

8/09/26

....

662

369

8715175.SQ.FTS.B,

5.361%,

8/10/26

....

319

267

a,b

8713665.SQ.FTS.B,

5.6%,

8/10/26

......

951

8720364.SQ.FTS.B,

5.353%,

8/11/26

....

1,341

939

8719381.SQ.FTS.B,

6.102%,

8/11/26

....

1,820

1,660

a,b

8723059.SQ.FTS.B,

4.717%,

8/12/26

....

20,170

550

a,b

8723864.SQ.FTS.B,

5.627%,

8/12/26

....

9,920

231

a,b

8722338.SQ.FTS.B,

5.63%,

8/12/26

.....

1,713

8734581.SQ.FTS.B,

4.717%,

8/13/26

....

1,610

1,339

a,b

8734472.SQ.FTS.B,

6.444%,

8/13/26

....

3,490

a,b

8738312.SQ.FTS.B,

6.45%,

8/14/26

.....

6,129

a,b

8739327.SQ.FTS.B,

6.447%,

8/15/26

....

10,390

220

a,b

8740558.SQ.FTS.B,

5.031%,

8/16/26

....

23,179

648

a,b

8740399.SQ.FTS.B,

5.597%,

8/16/26

....

6,482

4,680

a,b

8741215.SQ.FTS.B,

5.595%,

8/17/26

....

5,716

1,826

8744200.SQ.FTS.B,

5.342%,

8/18/26

....

2,707

1,787

8748954.SQ.FTS.B,

4.719%,

8/19/26

....

2,844

2,747

8757818.SQ.FTS.B,

5.348%,

8/21/26

....

3,346

3,146

8760036.SQ.FTS.B,

5.598%,

8/21/26

....

664

450

8757666.SQ.FTS.B,

6.102%,

8/21/26

....

a,b

8757027.SQ.FTS.B,

6.105%,

8/21/26

....

3,241

8763721.SQ.FTS.B,

4.72%,

8/24/26

.....

2,579

1,909

a,b

8764217.SQ.FTS.B,

5.346%,

8/24/26

....

8,186

194

8769719.SQ.FTS.B,

6.287%,

8/25/26

....

890

669

a,b

8767996.SQ.FTS.B,

6.447%,

8/25/26

....

7,938

144

a,b

8768460.SQ.FTS.B,

6.451%,

8/25/26

....

4,904

8775913.SQ.FTS.B,

5.031%,

8/26/26

....

3,961

1,877

8772121.SQ.FTS.B,

5.6%,

8/26/26

......

6,091

4,479

8775615.SQ.FTS.B,

5.6%,

8/26/26

......

1,993

1,302

8773308.SQ.FTS.B,

6.103%,

8/26/26

....

2,766

1,425

8783977.SQ.FTS.B,

5.036%,

8/28/26

....

2,718

1,932

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

8784101.SQ.FTS.B,

6.095%,

8/28/26

....

1,625

8786222.SQ.FTS.B,

6.453%,

8/28/26

....

701

443

8789099.SQ.FTS.B,

6.459%,

9/01/26

....

409

376

a,b

8789983.SQ.FTS.B,

5.031%,

9/02/26

....

9,342

206

8794574.SQ.FTS.B,

4.941%,

9/03/26

....

172

8793937.SQ.FTS.B,

6.439%,

9/03/26

....

180

151

a,b

8798528.SQ.FTS.B,

4.937%,

9/04/26

....

15,404

7,387

8797084.SQ.FTS.B,

5.346%,

9/04/26

....

1,553

1,429

8797688.SQ.FTS.B,

6.1%,

9/04/26

......

7,998

5,666

a,b

8799251.SQ.FTS.B,

6.293%,

9/04/26

....

2,686

742

8797465.SQ.FTS.B,

6.314%,

9/04/26

....

333

153

8800909.SQ.FTS.B,

4.717%,

9/05/26

....

1,172

1,111

a,b

8803302.SQ.FTS.B,

5.031%,

9/05/26

....

7,833

175

8803453.SQ.FTS.B,

6.289%,

9/05/26

....

2,970

857

a,b

8803185.SQ.FTS.B,

6.448%,

9/05/26

....

6,688

121

8810202.SQ.FTS.B,

4.714%,

9/06/26

....

433

419

a,b

8808155.SQ.FTS.B,

4.949%,

9/06/26

....

713

8814570.SQ.FTS.B,

4.719%,

9/07/26

....

3,206

2,792

8813700.SQ.FTS.B,

5.031%,

9/07/26

....

6,146

5,626

8811330.SQ.FTS.B,

5.346%,

9/07/26

....

20,477

17,057

8810676.SQ.FTS.B,

5.591%,

9/07/26

....

1,694

692

8816217.SQ.FTS.B,

4.717%,

9/09/26

....

10,239

8,468

8817896.SQ.FTS.B,

4.718%,

9/10/26

....

3,728

3,308

8819695.SQ.FTS.B,

5.342%,

9/10/26

....

1,495

1,270

8824350.SQ.FTS.B,

4.717%,

9/11/26

....

6,229

5,175

a,b

8824912.SQ.FTS.B,

4.939%,

9/11/26

....

7,671

3,826

8823852.SQ.FTS.B,

5.027%,

9/11/26

....

1,602

1,155

8822169.SQ.FTS.B,

5.348%,

9/11/26

....

1,927

1,733

a,b

8822671.SQ.FTS.B,

6.099%,

9/11/26

....

2,827

8825752.SQ.FTS.B,

4.715%,

9/12/26

....

190

189

8830042.SQ.FTS.B,

4.721%,

9/12/26

....

597

587

8829866.SQ.FTS.B,

6.1%,

9/12/26

......

5,460

4,003

a,b

8836466.SQ.FTS.B,

5.911%,

9/13/26

....

1,364

922

8838758.SQ.FTS.B,

5.918%,

9/13/26

....

419

379

8841697.SQ.FTS.B,

5.031%,

9/14/26

....

3,170

2,498

8842210.SQ.FTS.B,

5.583%,

9/14/26

....

313

294

8845787.SQ.FTS.B,

4.946%,

9/15/26

....

1,151

552

8844470.SQ.FTS.B,

5.041%,

9/15/26

....

253

245

a,b

8846019.SQ.FTS.B,

6.095%,

9/15/26

....

1,341

8846996.SQ.FTS.B,

5.6%,

9/16/26

......

1,684

1,475

8848129.SQ.FTS.B,

5.597%,

9/17/26

....

7,312

4,656

a,b

8855947.SQ.FTS.B,

5.358%,

9/18/26

....

1,680

a,b

8862132.SQ.FTS.B,

6.1%,

9/19/26

......

4,940

110

a,b

8860499.SQ.FTS.B,

6.455%,

9/19/26

....

1,554

8867824.SQ.FTS.B,

4.719%,

9/20/26

....

5,060

4,147

8869520.SQ.FTS.B,

4.719%,

9/20/26

....

1,371

1,339

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

8867817.SQ.FTS.B,

4.953%,

9/20/26

....

580

8865647.SQ.FTS.B,

5.031%,

9/20/26

....

163

156

a,b

8865093.SQ.FTS.B,

5.914%,

9/20/26

....

5,963

1,791

8866511.SQ.FTS.B,

6.289%,

9/20/26

....

6,099

1,645

8869364.SQ.FTS.B,

6.289%,

9/20/26

....

1,157

713

a,b

8866657.SQ.FTS.B,

6.447%,

9/20/26

....

26,140

417

8871615.SQ.FTS.B,

4.719%,

9/21/26

....

2,563

2,186

8873146.SQ.FTS.B,

4.719%,

9/21/26

....

3,331

3,242

8873449.SQ.FTS.B,

5.35%,

9/21/26

.....

2,347

2,054

a,b

8870696.SQ.FTS.B,

5.618%,

9/21/26

....

1,558

8875640.SQ.FTS.B,

6.102%,

9/22/26

....

1,015

800

8876611.SQ.FTS.B,

4.717%,

9/23/26

....

2,825

2,789

8876148.SQ.FTS.B,

4.72%,

9/23/26

.....

2,705

1,729

8877024.SQ.FTS.B,

6.45%,

9/24/26

.....

948

812

8881961.SQ.FTS.B,

4.717%,

9/25/26

....

804

798

8881760.SQ.FTS.B,

5.038%,

9/25/26

....

1,663

1,363

8882306.SQ.FTS.B,

5.595%,

9/25/26

....

8886794.SQ.FTS.B,

5.346%,

9/26/26

....

8,127

6,770

8890340.SQ.FTS.B,

5.597%,

9/26/26

....

3,604

2,067

8888248.SQ.FTS.B,

6.436%,

9/26/26

....

774

291

a,b

8886342.SQ.FTS.B,

6.445%,

9/26/26

....

4,893

1,377

8888165.SQ.FTS.B,

6.457%,

9/26/26

....

767

527

8895373.SQ.FTS.B,

5.026%,

9/27/26

....

1,349

1,235

a,b

8894126.SQ.FTS.B,

6.447%,

9/27/26

....

4,659

8898889.SQ.FTS.B,

5.031%,

9/28/26

....

746

628

8898952.SQ.FTS.B,

5.598%,

9/28/26

....

4,199

3,996

8898743.SQ.FTS.B,

6.105%,

9/28/26

....

545

363

8903852.SQ.FTS.B,

4.717%,

9/29/26

....

8,267

7,801

8908825.SQ.FTS.B,

4.719%,

9/30/26

....

4,528

3,256

8904946.SQ.FTS.B,

5.346%,

9/30/26

....

741

719

a,b

8906652.SQ.FTS.B,

6.102%,

9/30/26

....

6,028

107

8913761.SQ.FTS.B,

5.342%,

10/01/26

...

894

315

8913778.SQ.FTS.B,

5.355%,

10/01/26

...

483

466

8914772.SQ.FTS.B,

4.714%,

10/02/26

...

1,449

1,323

a,b

8916787.SQ.FTS.B,

4.717%,

10/02/26

...

5,743

141

8918904.SQ.FTS.B,

4.717%,

10/02/26

...

4,173

3,358

a,b

8916567.SQ.FTS.B,

6.316%,

10/02/26

...

645

8918224.SQ.FTS.B,

6.476%,

10/02/26

...

306

248

8922950.SQ.FTS.B,

4.717%,

10/03/26

...

4,496

4,374

8923924.SQ.FTS.B,

4.717%,

10/03/26

...

2,706

2,624

8925868.SQ.FTS.B,

4.962%,

10/03/26

...

444

214

8925982.SQ.FTS.B,

5.031%,

10/03/26

...

1,877

1,673

a,b

8925548.SQ.FTS.B,

6.099%,

10/03/26

...

5,133

115

a,b

8921608.SQ.FTS.B,

6.473%,

10/03/26

...

711

a,b

8928016.SQ.FTS.B,

5.6%,

10/04/26

.....

4,939

a,b

8927566.SQ.FTS.B,

6.449%,

10/04/26

...

6,399

108

Description

Principal

Amount

Value

Block,

Inc.

(continued)

8927942.SQ.FTS.B,

6.452%,

10/04/26

...

753

453

8930299.SQ.FTS.B,

4.717%,

10/05/26

...

2,286

2,271

8935811.SQ.FTS.B,

5.031%,

10/07/26

...

7,208

4,984

8940929.SQ.FTS.B,

4.717%,

10/08/26

...

2,785

2,653

8939540.SQ.FTS.B,

4.719%,

10/08/26

...

3,231

2,680

8937064.SQ.FTS.B,

6.447%,

10/08/26

...

925

609

8942058.SQ.FTS.B,

5.031%,

10/09/26

...

20,415

15,462

8942926.SQ.FTS.B,

5.603%,

10/09/26

...

318

313

a,b

8943220.SQ.FTS.B,

6.447%,

10/09/26

...

9,148

233

8942798.SQ.FTS.B,

6.45%,

10/09/26

....

1,355

1,189

8948714.SQ.FTS.B,

5.912%,

10/10/26

...

3,433

3,039

8955300.SQ.FTS.B,

6.478%,

10/11/26

...

239

203

8958970.SQ.FTS.B,

4.717%,

10/13/26

...

2,951

2,903

8963717.SQ.FTS.B,

5.034%,

10/14/26

...

3,668

2,567

a,b

8964612.SQ.FTS.B,

6.446%,

10/15/26

...

5,657

1,536

8971413.SQ.FTS.B,

5.338%,

10/16/26

...

550

496

8977614.SQ.FTS.B,

5.037%,

10/17/26

...

800

692

8979331.SQ.FTS.B,

6.1%,

10/17/26

.....

1,533

1,450

a,b

8977675.SQ.FTS.B,

6.277%,

10/17/26

...

971

8978308.SQ.FTS.B,

6.447%,

10/17/26

...

655

568

a,b

8983195.SQ.FTS.B,

6.11%,

10/18/26

....

1,220

553

8985653.SQ.FTS.B,

4.969%,

10/19/26

...

620

284

8985454.SQ.FTS.B,

5.029%,

10/19/26

...

293

288

8985623.SQ.FTS.B,

5.36%,

10/19/26

....

846

775

8986677.SQ.FTS.B,

5.031%,

10/20/26

...

1,852

1,680

8995697.SQ.FTS.B,

5.346%,

10/22/26

...

9,400

6,148

a,b

8995610.SQ.FTS.B,

6.1%,

10/22/26

.....

6,434

8996846.SQ.FTS.B,

4.719%,

10/23/26

...

3,685

3,573

8999594.SQ.FTS.B,

5.92%,

10/23/26

....

1,089

744

8999514.SQ.FTS.B,

6.441%,

10/23/26

...

1,232

1,038

9006035.SQ.FTS.B,

4.722%,

10/24/26

...

818

797

a,b

9006269.SQ.FTS.B,

5.597%,

10/24/26

...

20,237

320

9009247.SQ.FTS.B,

4.712%,

10/25/26

...

2,108

1,837

9008810.SQ.FTS.B,

4.717%,

10/25/26

...

2,392

2,220

9009735.SQ.FTS.B,

6.447%,

10/25/26

...

10,663

7,983

9012361.SQ.FTS.B,

4.717%,

10/26/26

...

1,226

1,101

a,b

4578615.SQ.FTS.B,

4.717%,

4/01/33

....

1,525

–

a,b

4583983.SQ.FTS.B,

4.403%,

4/04/33

....

3,383

–

a,b

4585288.SQ.FTS.B,

4.874%,

4/04/33

....

13,554

–

a,b

4587010.SQ.FTS.B,

3.938%,

4/05/33

....

1,755

–

a,b

4590358.SQ.FTS.B,

3.953%,

4/05/33

....

226

–

a,b

4588245.SQ.FTS.B,

4.558%,

4/05/33

....

3,204

–

a,b

4589702.SQ.FTS.B,

4.569%,

4/05/33

....

3,489

–

a,b

4598182.SQ.FTS.B,

4.574%,

4/07/33

....

1,281

–

a,b

4602285.SQ.FTS.B,

4.403%,

4/08/33

....

31,712

–

a,b

4604615.SQ.FTS.B,

4.56%,

4/09/33

.....

13,726

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

4604886.SQ.FTS.B,

4.717%,

4/10/33

....

2,273

–

a,b

4606179.SQ.FTS.B,

3.932%,

4/11/33

....

10,364

–

a,b

4606464.SQ.FTS.B,

4.403%,

4/11/33

....

12,284

a,b

4606335.SQ.FTS.B,

4.882%,

4/11/33

....

2,103

–

a,b

4609551.SQ.FTS.B,

4.56%,

4/12/33

.....

5,454

–

a,b

4612920.SQ.FTS.B,

3.314%,

4/13/33

....

2,172

–

a,b

4610443.SQ.FTS.B,

4.403%,

4/13/33

....

10,147

–

a,b

4622639.SQ.FTS.B,

3.928%,

4/15/33

....

3,183

–

a,b

4624869.SQ.FTS.B,

4.554%,

4/17/33

....

1,488

–

a,b

4626298.SQ.FTS.B,

3.934%,

4/18/33

....

10,268

–

a,b

4627586.SQ.FTS.B,

4.403%,

4/18/33

....

4,624

–

a,b

4626514.SQ.FTS.B,

5.031%,

4/18/33

....

2,949

a,b

4629149.SQ.FTS.B,

4.403%,

4/19/33

....

6,425

–

a,b

4632596.SQ.FTS.B,

4.705%,

4/20/33

....

848

–

a,b

4635753.SQ.FTS.B,

4.874%,

4/21/33

....

11,156

–

a,b

4642502.SQ.FTS.B,

4.868%,

4/25/33

....

662

–

a,b

4643970.SQ.FTS.B,

4.56%,

4/26/33

.....

2,081

–

a,b

4657373.SQ.FTS.B,

3.296%,

4/30/33

....

3,122

–

a,b

4656958.SQ.FTS.B,

4.717%,

4/30/33

....

3,103

–

a,b

4661015.SQ.FTS.B,

4.566%,

5/01/33

....

2,307

–

a,b

4661890.SQ.FTS.B,

3.931%,

5/02/33

....

2,289

–

a,b

4663096.SQ.FTS.B,

4.403%,

5/02/33

....

27,120

–

a,b

4663916.SQ.FTS.B,

4.403%,

5/02/33

....

24,742

a,b

4662184.SQ.FTS.B,

5.031%,

5/02/33

....

2,428

–

a,b

4665676.SQ.FTS.B,

4.564%,

5/03/33

....

4,604

–

a,b

4675799.SQ.FTS.B,

3.306%,

5/05/33

....

3,282

–

a,b

4677893.SQ.FTS.B,

5.031%,

5/06/33

....

2,173

–

a,b

4693423.SQ.FTS.B,

4.403%,

5/09/33

....

7,036

–

a,b

4693941.SQ.FTS.B,

4.561%,

5/09/33

....

8,872

–

a,b

4692191.SQ.FTS.B,

4.562%,

5/09/33

....

9,113

–

a,b

4692982.SQ.FTS.B,

4.591%,

5/09/33

....

430

–

a,b

4691756.SQ.FTS.B,

4.715%,

5/09/33

....

7,269

–

a,b

4706450.SQ.FTS.B,

4.561%,

5/10/33

....

6,009

–

a,b

4706808.SQ.FTS.B,

4.563%,

5/10/33

....

4,870

–

a,b

4701939.SQ.FTS.B,

4.717%,

5/10/33

....

1,446

–

a,b

4707248.SQ.FTS.B,

4.732%,

5/11/33

....

641

–

a,b

4711828.SQ.FTS.B,

5.031%,

5/12/33

....

3,618

–

a,b

4714060.SQ.FTS.B,

5.031%,

5/13/33

....

1,082

–

a,b

4714469.SQ.FTS.B,

3.27%,

5/14/33

.....

828

–

a,b

4738688.SQ.FTS.B,

4.418%,

5/18/33

....

840

–

a,b

4747188.SQ.FTS.B,

3.31%,

5/19/33

.....

553

–

a,b

4750103.SQ.FTS.B,

4.403%,

5/20/33

....

8,831

–

a,b

4750803.SQ.FTS.B,

4.403%,

5/21/33

....

3,382

–

a,b

4764584.SQ.FTS.B,

5.031%,

5/23/33

....

523

–

a,b

4773604.SQ.FTS.B,

4.403%,

5/24/33

....

9,605

–

a,b

4777853.SQ.FTS.B,

4.565%,

5/24/33

....

1,347

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

4774144.SQ.FTS.B,

4.57%,

5/24/33

.....

1,718

–

a,b

4779678.SQ.FTS.B,

3.301%,

5/25/33

....

899

–

a,b

4796651.SQ.FTS.B,

4.564%,

6/01/33

....

3,524

–

a,b

4808500.SQ.FTS.B,

4.403%,

6/02/33

....

7,711

–

a,b

4807880.SQ.FTS.B,

4.56%,

6/02/33

.....

19,691

a,b

4815646.SQ.FTS.B,

4.403%,

6/05/33

....

5,300

–

a,b

4820091.SQ.FTS.B,

4.564%,

6/07/33

....

1,630

–

a,b

4820553.SQ.FTS.B,

4.875%,

6/07/33

....

10,164

–

a,b

4821904.SQ.FTS.B,

4.56%,

6/08/33

.....

796

–

a,b

4831001.SQ.FTS.B,

3.774%,

6/10/33

....

847

–

a,b

4831653.SQ.FTS.B,

3.926%,

6/10/33

....

2,099

–

a,b

4830931.SQ.FTS.B,

4.528%,

6/10/33

....

–

a,b

4831110.SQ.FTS.B,

4.57%,

6/10/33

.....

962

–

a,b

4834162.SQ.FTS.B,

4.574%,

6/12/33

....

208

–

a,b

4839102.SQ.FTS.B,

3.296%,

6/14/33

....

1,596

–

a,b

4838333.SQ.FTS.B,

3.941%,

6/14/33

....

750

–

a,b

4842631.SQ.FTS.B,

3.302%,

6/15/33

....

5,776

–

a,b

4842605.SQ.FTS.B,

3.937%,

6/15/33

....

4,000

–

a,b

4841116.SQ.FTS.B,

4.562%,

6/15/33

....

11,234

–

a,b

4848622.SQ.FTS.B,

3.302%,

6/16/33

....

2,069

–

a,b

4862341.SQ.FTS.B,

2.982%,

6/18/33

....

522

–

a,b

4862443.SQ.FTS.B,

4.227%,

6/18/33

....

7,578

–

a,b

4863062.SQ.FTS.B,

4.391%,

6/19/33

....

3,882

–

a,b

4863238.SQ.FTS.B,

4.42%,

6/19/33

.....

2,993

–

a,b

4862998.SQ.FTS.B,

4.559%,

6/19/33

....

1,027

–

a,b

4863412.SQ.FTS.B,

4.56%,

6/19/33

.....

11,561

–

a,b

4862938.SQ.FTS.B,

5.031%,

6/19/33

....

691

–

a,b

4867257.SQ.FTS.B,

3.939%,

6/20/33

....

607

–

a,b

4867843.SQ.FTS.B,

3.675%,

6/21/33

....

493

–

a,b

4868757.SQ.FTS.B,

4.406%,

6/21/33

....

3,219

a,b

4869815.SQ.FTS.B,

4.56%,

6/21/33

.....

7,257

–

a,b

4873297.SQ.FTS.B,

3.376%,

6/22/33

....

113

–

a,b

4871837.SQ.FTS.B,

3.928%,

6/22/33

....

1,490

–

a,b

4872072.SQ.FTS.B,

4.557%,

6/22/33

....

4,085

–

a,b

4873405.SQ.FTS.B,

4.56%,

6/22/33

.....

5,886

–

a,b

4873313.SQ.FTS.B,

5.031%,

6/22/33

....

1,287

–

a,b

4874535.SQ.FTS.B,

3.306%,

6/23/33

....

977

–

a,b

4875940.SQ.FTS.B,

4.539%,

6/23/33

....

7,944

a,b

4874845.SQ.FTS.B,

4.559%,

6/23/33

....

3,811

–

a,b

4874157.SQ.FTS.B,

4.877%,

6/23/33

....

3,873

–

a,b

4877067.SQ.FTS.B,

3.562%,

6/24/33

....

1,174

–

a,b

4877254.SQ.FTS.B,

3.774%,

6/25/33

....

1,462

–

a,b

4877394.SQ.FTS.B,

4.225%,

6/25/33

....

4,239

–

a,b

4877534.SQ.FTS.B,

4.931%,

6/25/33

....

1,841

–

a,b

4879828.SQ.FTS.B,

2.958%,

6/27/33

....

1,403

–

a,b

4879371.SQ.FTS.B,

3.443%,

6/27/33

....

536

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

4879124.SQ.FTS.B,

4.073%,

6/27/33

....

4,098

–

a,b

4878787.SQ.FTS.B,

4.233%,

6/27/33

....

4,067

–

a,b

4880273.SQ.FTS.B,

4.416%,

6/27/33

....

32,499

a,b

4879728.SQ.FTS.B,

4.695%,

6/27/33

....

2,694

–

a,b

4878103.SQ.FTS.B,

5.346%,

6/27/33

....

627

–

a,b

4881967.SQ.FTS.B,

2.297%,

6/28/33

....

358

–

a,b

4881632.SQ.FTS.B,

2.333%,

6/28/33

....

5,202

–

a,b

4880881.SQ.FTS.B,

2.411%,

6/28/33

....

274

–

a,b

4882630.SQ.FTS.B,

3.643%,

6/28/33

....

5,042

a,b

4881595.SQ.FTS.B,

4.069%,

6/28/33

....

1,106

–

a,b

4881625.SQ.FTS.B,

4.427%,

6/28/33

....

1,074

–

a,b

4881933.SQ.FTS.B,

4.55%,

6/28/33

.....

502

–

a,b

4882127.SQ.FTS.B,

4.561%,

6/28/33

....

35,043

–

a,b

4880840.SQ.FTS.B,

4.719%,

6/28/33

....

1,128

–

a,b

4886903.SQ.FTS.B,

3.296%,

6/30/33

....

2,071

–

a,b

4889268.SQ.FTS.B,

3.31%,

6/30/33

.....

524

–

a,b

4886912.SQ.FTS.B,

4.563%,

6/30/33

....

2,287

–

a,b

4889574.SQ.FTS.B,

4.877%,

7/01/33

....

2,517

–

a,b

4894101.SQ.FTS.B,

4.717%,

7/04/33

....

12,955

a,b

4893066.SQ.FTS.B,

5.031%,

7/04/33

....

3,265

–

a,b

4896547.SQ.FTS.B,

5.849%,

7/05/33

....

4,712

–

a,b

4899151.SQ.FTS.B,

4.563%,

7/06/33

....

3,147

–

a,b

4898852.SQ.FTS.B,

4.874%,

7/06/33

....

2,213

–

a,b

4908064.SQ.FTS.B,

4.403%,

7/11/33

....

16,814

a,b

4907364.SQ.FTS.B,

5.031%,

7/11/33

....

1,373

–

a,b

4922562.SQ.FTS.B,

4.56%,

7/14/33

.....

6,112

–

a,b

4916400.SQ.FTS.B,

4.569%,

7/14/33

....

955

–

a,b

4916673.SQ.FTS.B,

4.719%,

7/14/33

....

9,163

–

a,b

4923493.SQ.FTS.B,

3.354%,

7/15/33

....

134

–

a,b

4925329.SQ.FTS.B,

4.145%,

7/18/33

....

1,389

–

a,b

4928876.SQ.FTS.B,

3.333%,

7/19/33

....

514

–

a,b

4931020.SQ.FTS.B,

4.56%,

7/20/33

.....

10,152

–

a,b

4935511.SQ.FTS.B,

4.403%,

7/22/33

....

450

–

a,b

4941224.SQ.FTS.B,

5.031%,

7/25/33

....

4,401

–

a,b

4947272.SQ.FTS.B,

4.885%,

7/27/33

....

1,224

–

a,b

4954105.SQ.FTS.B,

4.557%,

7/28/33

....

2,531

–

a,b

4961597.SQ.FTS.B,

3.303%,

7/31/33

....

6,826

–

a,b

4964338.SQ.FTS.B,

4.886%,

8/01/33

....

1,028

–

a,b

4975322.SQ.FTS.B,

4.539%,

8/05/33

....

1,106

–

a,b

4976561.SQ.FTS.B,

4.553%,

8/07/33

....

2,306

–

a,b

4977248.SQ.FTS.B,

4.56%,

8/07/33

.....

23,393

a,b

4980976.SQ.FTS.B,

4.557%,

8/08/33

....

3,062

–

a,b

4978982.SQ.FTS.B,

4.561%,

8/08/33

....

8,763

a,b

4979694.SQ.FTS.B,

6.253%,

8/08/33

....

7,423

–

a,b

4981159.SQ.FTS.B,

4.717%,

8/09/33

....

3,017

–

a,b

4983108.SQ.FTS.B,

5.031%,

8/09/33

....

419

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

4989442.SQ.FTS.B,

6.239%,

8/11/33

....

717

–

a,b

4990668.SQ.FTS.B,

3.935%,

8/12/33

....

1,655

–

a,b

4995431.SQ.FTS.B,

4.556%,

8/15/33

....

6,247

–

a,b

5004424.SQ.FTS.B,

4.56%,

8/16/33

.....

1,829

–

a,b

5016072.SQ.FTS.B,

5.435%,

8/17/33

....

5,014

–

a,b

5025752.SQ.FTS.B,

2.033%,

8/19/33

....

6,406

–

a,b

5025882.SQ.FTS.B,

4.885%,

8/19/33

....

1,669

–

a,b

5027373.SQ.FTS.B,

4.018%,

8/21/33

....

8,844

–

a,b

5030831.SQ.FTS.B,

4.56%,

8/22/33

.....

5,213

–

a,b

5031471.SQ.FTS.B,

4.563%,

8/22/33

....

5,258

–

a,b

5033148.SQ.FTS.B,

3.906%,

8/23/33

....

471

–

a,b

5035669.SQ.FTS.B,

4.725%,

8/23/33

....

3,399

–

a,b

5044258.SQ.FTS.B,

5.149%,

8/27/33

....

8,147

a,b

5045662.SQ.FTS.B,

4.574%,

8/28/33

....

2,040

–

a,b

5047314.SQ.FTS.B,

4.591%,

8/28/33

....

460

–

a,b

5047321.SQ.FTS.B,

4.717%,

8/28/33

....

5,110

–

a,b

5044794.SQ.FTS.B,

4.807%,

8/28/33

....

5,731

–

a,b

5059326.SQ.FTS.B,

4.561%,

9/04/33

....

13,048

–

a,b

5062512.SQ.FTS.B,

2.6%,

9/06/33

......

3,648

–

a,b

5062340.SQ.FTS.B,

4.883%,

9/06/33

....

2,074

–

a,b

5065404.SQ.FTS.B,

4.572%,

9/07/33

....

2,639

–

a,b

5067242.SQ.FTS.B,

4.382%,

9/08/33

....

5,352

–

a,b

5067403.SQ.FTS.B,

5.351%,

9/08/33

....

2,045

–

a,b

5071139.SQ.FTS.B,

3.848%,

9/09/33

....

2,742

a,b

5075119.SQ.FTS.B,

3.748%,

9/10/33

....

1,106

–

a,b

5072967.SQ.FTS.B,

4.066%,

9/10/33

....

542

–

a,b

5074442.SQ.FTS.B,

4.861%,

9/10/33

....

1,909

–

a,b

5077583.SQ.FTS.B,

5.031%,

9/11/33

....

3,691

–

a,b

5081612.SQ.FTS.B,

4.666%,

9/14/33

....

1,324

–

a,b

5084934.SQ.FTS.B,

3.774%,

9/16/33

....

33,929

–

a,b

5085858.SQ.FTS.B,

3.936%,

9/16/33

....

884

–

a,b

5090272.SQ.FTS.B,

4.563%,

9/17/33

....

4,187

–

a,b

5093863.SQ.FTS.B,

4.558%,

9/19/33

....

9,864

–

a,b

5094427.SQ.FTS.B,

3.774%,

9/20/33

....

2,121

–

a,b

5096674.SQ.FTS.B,

4.56%,

9/21/33

.....

13,763

a,b

5095917.SQ.FTS.B,

5.031%,

9/21/33

....

17,638

–

a,b

5098275.SQ.FTS.B,

6.063%,

9/22/33

....

6,026

–

a,b

5100485.SQ.FTS.B,

5.722%,

9/23/33

....

4,264

–

a,b

5106538.SQ.FTS.B,

4.562%,

9/24/33

....

11,727

–

a,b

5107353.SQ.FTS.B,

5.031%,

9/24/33

....

1,383

–

a,b

5109145.SQ.FTS.B,

5.031%,

9/25/33

....

1,195

–

a,b

5111024.SQ.FTS.B,

4.724%,

9/27/33

....

670

–

a,b

5112445.SQ.FTS.B,

3.774%,

9/28/33

....

344

–

a,b

5114206.SQ.FTS.B,

4.571%,

9/28/33

....

573

–

a,b

5112955.SQ.FTS.B,

5.031%,

9/28/33

....

4,811

–

a,b

5113266.SQ.FTS.B,

5.387%,

9/28/33

....

1,765

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

5124518.SQ.FTS.B,

3.351%,

9/30/33

....

11,687

–

a,b

5119221.SQ.FTS.B,

4.403%,

9/30/33

....

2,448

–

a,b

5119131.SQ.FTS.B,

4.56%,

9/30/33

.....

1,885

–

a,b

5126438.SQ.FTS.B,

3.495%,

10/01/33

...

22,782

a,b

5128413.SQ.FTS.B,

3.917%,

10/02/33

...

1,332

–

a,b

5131669.SQ.FTS.B,

4.56%,

10/04/33

....

22,967

–

a,b

5132006.SQ.FTS.B,

5.007%,

10/04/33

...

790

–

a,b

5138072.SQ.FTS.B,

4.672%,

10/06/33

...

4,185

–

a,b

5142028.SQ.FTS.B,

3.927%,

10/07/33

...

612

–

a,b

5142049.SQ.FTS.B,

4.503%,

10/07/33

...

537

–

a,b

5141482.SQ.FTS.B,

4.508%,

10/07/33

...

2,827

–

a,b

5149269.SQ.FTS.B,

4.974%,

10/10/33

...

941

–

a,b

5153369.SQ.FTS.B,

4.559%,

10/11/33

...

12,680

–

a,b

5153956.SQ.FTS.B,

3.94%,

10/12/33

....

2,957

–

a,b

5157152.SQ.FTS.B,

4.407%,

10/12/33

...

4,186

–

a,b

5154314.SQ.FTS.B,

4.567%,

10/12/33

...

2,780

–

a,b

5154612.SQ.FTS.B,

4.57%,

10/12/33

....

1,314

–

a,b

5157821.SQ.FTS.B,

4.557%,

10/13/33

...

4,950

–

a,b

5159643.SQ.FTS.B,

4.886%,

10/13/33

...

1,281

–

a,b

5163000.SQ.FTS.B,

3.303%,

10/14/33

...

6,619

–

a,b

5162509.SQ.FTS.B,

4.561%,

10/14/33

...

55,221

–

a,b

5165754.SQ.FTS.B,

4.566%,

10/14/33

...

1,218

–

a,b

5170843.SQ.FTS.B,

4.403%,

10/15/33

...

14,553

–

a,b

5168750.SQ.FTS.B,

4.558%,

10/15/33

...

2,545

–

a,b

5171656.SQ.FTS.B,

4.053%,

10/16/33

...

875

–

a,b

5172517.SQ.FTS.B,

3.302%,

10/17/33

...

3,231

–

a,b

5173148.SQ.FTS.B,

5.012%,

10/17/33

...

670

–

a,b

5175259.SQ.FTS.B,

3.354%,

10/18/33

...

–

a,b

5176617.SQ.FTS.B,

4.294%,

10/18/33

...

935

–

a,b

5175826.SQ.FTS.B,

4.557%,

10/18/33

...

3,657

–

a,b

5176935.SQ.FTS.B,

5.031%,

10/18/33

...

489

–

a,b

5177078.SQ.FTS.B,

5.189%,

10/18/33

...

260

–

a,b

5184366.SQ.FTS.B,

3.774%,

10/19/33

...

3,564

–

a,b

5189604.SQ.FTS.B,

3.774%,

10/20/33

...

4,636

–

a,b

5203735.SQ.FTS.B,

3.298%,

10/21/33

...

6,108

–

a,b

5210519.SQ.FTS.B,

5.535%,

10/24/33

...

11,522

–

a,b

5223636.SQ.FTS.B,

4.563%,

10/27/33

...

2,509

–

a,b

5230601.SQ.FTS.B,

3.301%,

10/28/33

...

5,805

–

a,b

5234006.SQ.FTS.B,

4.403%,

10/28/33

...

25,481

a,b

5230330.SQ.FTS.B,

4.717%,

10/28/33

...

1,320

–

a,b

5238828.SQ.FTS.B,

3.774%,

10/29/33

...

19,166

–

a,b

5240546.SQ.FTS.B,

3.953%,

10/30/33

...

1,371

–

a,b

5240481.SQ.FTS.B,

4.563%,

10/30/33

...

1,280

–

a,b

5240561.SQ.FTS.B,

4.95%,

10/30/33

....

993

–

a,b

5240923.SQ.FTS.B,

4.56%,

11/01/33

....

7,658

–

a,b

5245023.SQ.FTS.B,

3.936%,

11/02/33

...

1,235

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

5252966.SQ.FTS.B,

4.188%,

11/04/33

...

2,234

–

a,b

5256925.SQ.FTS.B,

4.403%,

11/04/33

...

12,494

–

a,b

5251953.SQ.FTS.B,

4.553%,

11/04/33

...

1,860

–

a,b

5267302.SQ.FTS.B,

3.354%,

11/06/33

...

212

–

a,b

5267196.SQ.FTS.B,

4.723%,

11/06/33

...

2,396

–

a,b

5270825.SQ.FTS.B,

4.877%,

11/06/33

...

4,533

–

a,b

5273714.SQ.FTS.B,

4.563%,

11/08/33

...

2,002

–

a,b

5276774.SQ.FTS.B,

4.556%,

11/09/33

...

3,264

–

a,b

5280986.SQ.FTS.B,

4.555%,

11/10/33

...

1,327

–

a,b

5284007.SQ.FTS.B,

4.403%,

11/11/33

...

1,049

–

a,b

5289917.SQ.FTS.B,

3.774%,

11/12/33

...

702

–

a,b

5287039.SQ.FTS.B,

4.475%,

11/12/33

...

8,749

–

a,b

5288567.SQ.FTS.B,

6.146%,

11/12/33

...

487

–

a,b

5292026.SQ.FTS.B,

4.719%,

11/13/33

...

5,106

–

a,b

5293955.SQ.FTS.B,

4.721%,

11/14/33

...

5,278

–

a,b

5293907.SQ.FTS.B,

4.874%,

11/14/33

...

2,714

–

a,b

5295255.SQ.FTS.B,

3.303%,

11/16/33

...

1,890

a,b

5296246.SQ.FTS.B,

4.26%,

11/16/33

....

1,628

–

a,b

5300323.SQ.FTS.B,

4.569%,

11/17/33

...

1,387

–

a,b

5312373.SQ.FTS.B,

4.56%,

11/18/33

....

721

–

a,b

5317481.SQ.FTS.B,

4.528%,

11/19/33

...

593

–

a,b

5319057.SQ.FTS.B,

5.031%,

11/19/33

...

2,284

–

a,b

5325009.SQ.FTS.B,

3.047%,

11/22/33

...

6,356

–

a,b

5325109.SQ.FTS.B,

4.114%,

11/22/33

...

3,741

–

a,b

5325953.SQ.FTS.B,

3.673%,

11/23/33

...

26,736

a,b

5331997.SQ.FTS.B,

3.29%,

11/24/33

....

1,138

–

a,b

5333772.SQ.FTS.B,

3.324%,

11/24/33

...

967

–

a,b

5334010.SQ.FTS.B,

3.33%,

11/24/33

....

435

–

a,b

5332017.SQ.FTS.B,

4.403%,

11/24/33

...

3,457

–

a,b

5334017.SQ.FTS.B,

4.403%,

11/24/33

...

710

–

a,b

5334919.SQ.FTS.B,

4.56%,

11/24/33

....

1,216

–

a,b

5332382.SQ.FTS.B,

4.858%,

11/24/33

...

1,453

–

a,b

5333523.SQ.FTS.B,

4.881%,

11/24/33

...

620

–

a,b

5337318.SQ.FTS.B,

3.962%,

11/25/33

...

1,470

–

a,b

5336258.SQ.FTS.B,

4.558%,

11/25/33

...

4,115

–

a,b

5365379.SQ.FTS.B,

4.56%,

11/26/33

....

768

–

a,b

5364900.SQ.FTS.B,

4.571%,

11/26/33

...

1,391

–

a,b

5377413.SQ.FTS.B,

3.944%,

11/27/33

...

944

–

a,b

5378585.SQ.FTS.B,

3.953%,

11/27/33

...

392

–

a,b

5369148.SQ.FTS.B,

4.354%,

11/27/33

...

969

–

a,b

5377620.SQ.FTS.B,

4.414%,

11/27/33

...

13,408

a,b

5397535.SQ.FTS.B,

3.585%,

11/30/33

...

5,543

–

a,b

5393796.SQ.FTS.B,

5.031%,

11/30/33

...

–

a,b

5408127.SQ.FTS.B,

3.774%,

12/01/33

...

1,021

–

a,b

5412734.SQ.FTS.B,

3.992%,

12/01/33

...

8,127

–

a,b

5413423.SQ.FTS.B,

4.879%,

12/01/33

...

2,550

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

5411388.SQ.FTS.B,

5.031%,

12/01/33

...

563

–

a,b

5447961.SQ.FTS.B,

4.557%,

12/02/33

...

697

–

a,b

5472760.SQ.FTS.B,

4.479%,

12/04/33

...

3,648

–

a,b

5475686.SQ.FTS.B,

4.56%,

12/06/33

....

2,736

–

a,b

5479438.SQ.FTS.B,

4.866%,

12/06/33

...

631

–

a,b

5480752.SQ.FTS.B,

5.031%,

12/06/33

...

3,098

–

a,b

5505930.SQ.FTS.B,

6.289%,

12/07/33

...

1,048

–

a,b

5518310.SQ.FTS.B,

3.913%,

12/08/33

...

390

–

a,b

5515187.SQ.FTS.B,

4.403%,

12/08/33

...

4,692

–

a,b

5516154.SQ.FTS.B,

4.72%,

12/08/33

....

12,489

–

a,b

5507000.SQ.FTS.B,

4.758%,

12/08/33

...

38,614

a,b

5533995.SQ.FTS.B,

3.277%,

12/09/33

...

813

–

a,b

5534121.SQ.FTS.B,

5.031%,

12/09/33

...

5,159

–

a,b

5534689.SQ.FTS.B,

3.346%,

12/10/33

...

3,849

–

a,b

5537817.SQ.FTS.B,

4.193%,

12/10/33

...

798

–

a,b

5537728.SQ.FTS.B,

4.447%,

12/10/33

...

2,668

–

a,b

5535547.SQ.FTS.B,

4.724%,

12/10/33

...

4,404

–

a,b

5537953.SQ.FTS.B,

5.029%,

12/10/33

...

4,030

–

a,b

5539948.SQ.FTS.B,

4.239%,

12/11/33

...

1,314

–

a,b

5541083.SQ.FTS.B,

2.917%,

12/12/33

...

114

–

a,b

5541094.SQ.FTS.B,

4.721%,

12/12/33

...

5,085

–

a,b

5546515.SQ.FTS.B,

4.556%,

12/13/33

...

2,064

–

a,b

5552344.SQ.FTS.B,

3.537%,

12/14/33

...

1,674

–

a,b

5547946.SQ.FTS.B,

5.031%,

12/14/33

...

1,134

–

a,b

5554641.SQ.FTS.B,

3.292%,

12/15/33

...

62,255

–

a,b

5556696.SQ.FTS.B,

5.344%,

12/15/33

...

5,553

a,b

5563038.SQ.FTS.B,

4.564%,

12/16/33

...

4,772

–

a,b

5562047.SQ.FTS.B,

4.565%,

12/16/33

...

3,095

–

a,b

5564628.SQ.FTS.B,

3.302%,

12/17/33

...

2,787

–

a,b

5565992.SQ.FTS.B,

4.875%,

12/17/33

...

2,616

–

a,b

5568881.SQ.FTS.B,

3.298%,

12/19/33

...

1,314

–

a,b

5569070.SQ.FTS.B,

4.568%,

12/19/33

...

29,610

–

a,b

5572327.SQ.FTS.B,

4.572%,

12/20/33

...

243

–

a,b

5574351.SQ.FTS.B,

4.403%,

12/21/33

...

10,696

a,b

5573406.SQ.FTS.B,

4.546%,

12/21/33

...

363

–

a,b

5575886.SQ.FTS.B,

4.557%,

12/21/33

...

894

–

a,b

5586899.SQ.FTS.B,

3.653%,

12/24/33

...

2,468

–

a,b

5585522.SQ.FTS.B,

4.55%,

12/24/33

....

445

–

a,b

5588173.SQ.FTS.B,

3.774%,

12/25/33

...

2,866

–

a,b

5589322.SQ.FTS.B,

4.564%,

12/26/33

...

4,040

–

a,b

5588832.SQ.FTS.B,

4.719%,

12/26/33

...

7,140

–

a,b

5594180.SQ.FTS.B,

2.869%,

12/28/33

...

732

–

a,b

5595624.SQ.FTS.B,

4.567%,

12/28/33

...

789

–

a,b

5600496.SQ.FTS.B,

2.664%,

12/29/33

...

371

–

a,b

5599728.SQ.FTS.B,

2.797%,

12/29/33

...

4,867

–

a,b

5597497.SQ.FTS.B,

4.56%,

12/29/33

....

1,451

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

5600632.SQ.FTS.B,

5.031%,

12/29/33

...

3,133

–

a,b

5600526.SQ.FTS.B,

5.296%,

12/29/33

...

1,008

–

a,b

5611517.SQ.FTS.B,

4.558%,

12/30/33

...

2,001

–

a,b

5612507.SQ.FTS.B,

4.56%,

12/30/33

....

11,600

a,b

5616046.SQ.FTS.B,

2.619%,

1/01/34

....

1,631

–

a,b

5616216.SQ.FTS.B,

3.563%,

1/01/34

....

5,841

a,b

5614938.SQ.FTS.B,

4.555%,

1/01/34

....

2,188

–

a,b

5618116.SQ.FTS.B,

4.875%,

1/02/34

....

8,099

a,b

5618863.SQ.FTS.B,

3.774%,

1/03/34

....

1,492

–

a,b

5619959.SQ.FTS.B,

4.559%,

1/04/34

....

2,374

–

a,b

5620066.SQ.FTS.B,

4.566%,

1/04/34

....

2,868

–

a,b

5619464.SQ.FTS.B,

4.582%,

1/04/34

....

646

–

a,b

5623363.SQ.FTS.B,

4.559%,

1/05/34

....

10,990

–

a,b

5624299.SQ.FTS.B,

4.712%,

1/05/34

....

6,091

–

a,b

5630151.SQ.FTS.B,

3.936%,

1/06/34

....

506

–

a,b

5647775.SQ.FTS.B,

4.257%,

1/07/34

....

1,305

–

a,b

5654133.SQ.FTS.B,

4.875%,

1/08/34

....

32,774

–

a,b

5655643.SQ.FTS.B,

3.936%,

1/09/34

....

4,363

–

a,b

5656207.SQ.FTS.B,

4.559%,

1/09/34

....

8,733

a,b

5663245.SQ.FTS.B,

3.302%,

1/11/34

....

500

–

a,b

5663983.SQ.FTS.B,

3.826%,

1/11/34

....

461

–

a,b

5662691.SQ.FTS.B,

4.56%,

1/11/34

.....

573

–

a,b

5666806.SQ.FTS.B,

3.304%,

1/12/34

....

13,430

–

a,b

5671581.SQ.FTS.B,

4.559%,

1/12/34

....

18,583

–

a,b

5673210.SQ.FTS.B,

3.934%,

1/13/34

....

2,838

–

a,b

5675130.SQ.FTS.B,

4.718%,

1/13/34

....

490

–

a,b

5695450.SQ.FTS.B,

3.323%,

1/14/34

....

26,182

a,b

5694816.SQ.FTS.B,

3.38%,

1/14/34

.....

1,074

–

a,b

5689248.SQ.FTS.B,

4.556%,

1/14/34

....

1,934

–

a,b

5700432.SQ.FTS.B,

4.193%,

1/15/34

....

929

–

a,b

5696963.SQ.FTS.B,

4.559%,

1/15/34

....

8,836

–

a,b

5703401.SQ.FTS.B,

5.031%,

1/17/34

....

1,653

–

a,b

5703743.SQ.FTS.B,

5.031%,

1/17/34

....

855

–

a,b

5708905.SQ.FTS.B,

3.906%,

1/18/34

....

553

–

a,b

5709549.SQ.FTS.B,

4.174%,

1/18/34

....

12,160

–

a,b

5708392.SQ.FTS.B,

4.561%,

1/18/34

....

9,171

–

a,b

5706022.SQ.FTS.B,

5.179%,

1/18/34

....

194

–

a,b

5721102.SQ.FTS.B,

4.871%,

1/20/34

....

1,302

–

a,b

5728577.SQ.FTS.B,

4.56%,

1/21/34

.....

3,241

–

a,b

5732624.SQ.FTS.B,

4.56%,

1/22/34

.....

11,619

–

a,b

5731303.SQ.FTS.B,

4.574%,

1/22/34

....

1,418

–

a,b

5735573.SQ.FTS.B,

4.403%,

1/24/34

....

5,816

a,b

5737632.SQ.FTS.B,

3.931%,

1/25/34

....

5,796

–

a,b

5741303.SQ.FTS.B,

4.567%,

1/26/34

....

2,044

–

a,b

5751520.SQ.FTS.B,

3.308%,

1/28/34

....

2,991

–

a,b

5754310.SQ.FTS.B,

3.164%,

1/29/34

....

1,070

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

5756610.SQ.FTS.B,

3.774%,

1/29/34

....

4,556

–

a,b

5757607.SQ.FTS.B,

3.929%,

1/31/34

....

9,346

–

a,b

5760954.SQ.FTS.B,

4.102%,

2/01/34

....

2,824

–

a,b

5758291.SQ.FTS.B,

4.565%,

2/01/34

....

5,772

–

a,b

5767488.SQ.FTS.B,

4.566%,

2/03/34

....

1,220

–

a,b

5773116.SQ.FTS.B,

4.87%,

2/04/34

.....

3,729

–

a,b

5777772.SQ.FTS.B,

4.558%,

2/05/34

....

8,178

–

a,b

5778008.SQ.FTS.B,

4.687%,

2/05/34

....

4,729

–

a,b

5781951.SQ.FTS.B,

4.557%,

2/08/34

....

4,019

–

a,b

5784874.SQ.FTS.B,

5.153%,

2/09/34

....

3,818

–

a,b

5792518.SQ.FTS.B,

4.876%,

2/10/34

....

16,456

–

a,b

5802478.SQ.FTS.B,

3.774%,

2/11/34

....

7,637

–

a,b

5812068.SQ.FTS.B,

3.302%,

2/12/34

....

2,493

–

a,b

5809201.SQ.FTS.B,

3.975%,

2/12/34

....

718

–

a,b

5812645.SQ.FTS.B,

4.529%,

2/12/34

....

2,690

–

a,b

5810852.SQ.FTS.B,

4.558%,

2/12/34

....

3,602

–

a,b

5813253.SQ.FTS.B,

4.558%,

2/12/34

....

7,311

–

a,b

5813184.SQ.FTS.B,

4.894%,

2/12/34

....

1,676

–

a,b

5813462.SQ.FTS.B,

4.687%,

2/13/34

....

1,394

–

a,b

5814016.SQ.FTS.B,

4.876%,

2/13/34

....

2,868

–

a,b

5814576.SQ.FTS.B,

3.308%,

2/14/34

....

2,223

–

a,b

5816945.SQ.FTS.B,

4.876%,

2/15/34

....

4,384

–

a,b

5815447.SQ.FTS.B,

5.156%,

2/15/34

....

1,227

–

a,b

5817070.SQ.FTS.B,

5.158%,

2/15/34

....

30,140

–

a,b

5823345.SQ.FTS.B,

3.944%,

2/17/34

....

1,884

–

a,b

5825002.SQ.FTS.B,

4.56%,

2/17/34

.....

35,998

–

a,b

5823283.SQ.FTS.B,

4.633%,

2/17/34

....

–

a,b

5824742.SQ.FTS.B,

4.688%,

2/17/34

....

3,322

–

a,b

5825354.SQ.FTS.B,

4.723%,

2/17/34

....

4,905

–

a,b

5827842.SQ.FTS.B,

4.561%,

2/18/34

....

7,668

–

a,b

5830440.SQ.FTS.B,

4.562%,

2/18/34

....

2,577

–

a,b

5828926.SQ.FTS.B,

4.685%,

2/18/34

....

17,907

–

a,b

5832209.SQ.FTS.B,

4.403%,

2/19/34

....

26,120

–

a,b

5832609.SQ.FTS.B,

4.929%,

2/19/34

....

2,194

–

a,b

5834318.SQ.FTS.B,

3.304%,

2/20/34

....

8,185

–

a,b

5834294.SQ.FTS.B,

4.537%,

2/20/34

....

502

–

a,b

5835079.SQ.FTS.B,

5.031%,

2/20/34

....

683

–

a,b

5837211.SQ.FTS.B,

4.56%,

2/22/34

.....

2,901

–

a,b

5837315.SQ.FTS.B,

4.561%,

2/22/34

....

4,547

–

a,b

5837252.SQ.FTS.B,

5.262%,

2/22/34

....

1,427

–

a,b

5840394.SQ.FTS.B,

4.809%,

2/23/34

....

7,735

–

a,b

5839815.SQ.FTS.B,

4.859%,

2/23/34

....

615

–

a,b

5842093.SQ.FTS.B,

4.874%,

2/23/34

....

1,240

–

a,b

5851647.SQ.FTS.B,

4.534%,

2/25/34

....

1,396

–

a,b

5848551.SQ.FTS.B,

4.685%,

2/25/34

....

1,094

–

a,b

5852027.SQ.FTS.B,

4.82%,

2/26/34

.....

497

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

5854311.SQ.FTS.B,

5.158%,

2/26/34

....

663

–

a,b

5853740.SQ.FTS.B,

5.288%,

2/26/34

....

2,104

–

a,b

5855240.SQ.FTS.B,

5.19%,

2/27/34

.....

6,098

–

a,b

5866864.SQ.FTS.B,

4.019%,

2/28/34

....

2,964

–

a,b

5857039.SQ.FTS.B,

4.523%,

2/28/34

....

219

–

a,b

5861134.SQ.FTS.B,

4.529%,

2/28/34

....

14,061

a,b

5866568.SQ.FTS.B,

4.617%,

2/28/34

....

2,638

–

a,b

5855911.SQ.FTS.B,

4.687%,

2/28/34

....

2,925

–

a,b

5861125.SQ.FTS.B,

4.772%,

2/28/34

....

619

–

a,b

5862630.SQ.FTS.B,

5.067%,

2/28/34

....

5,065

–

a,b

5873819.SQ.FTS.B,

5.09%,

3/01/34

.....

1,232

–

a,b

5874482.SQ.FTS.B,

4.762%,

3/02/34

....

657

–

a,b

5874329.SQ.FTS.B,

5.179%,

3/02/34

....

422

–

a,b

5877776.SQ.FTS.B,

5.458%,

3/03/34

....

691

–

a,b

5878846.SQ.FTS.B,

5.302%,

3/05/34

....

356

–

a,b

5885192.SQ.FTS.B,

5.384%,

3/07/34

....

2,394

–

a,b

5884477.SQ.FTS.B,

5.518%,

3/07/34

....

988

–

a,b

5883334.SQ.FTS.B,

5.524%,

3/07/34

....

1,109

–

a,b

5889080.SQ.FTS.B,

4.718%,

3/08/34

....

771

–

a,b

5889436.SQ.FTS.B,

4.844%,

3/08/34

....

14,724

–

a,b

5889875.SQ.FTS.B,

5.174%,

3/08/34

....

–

a,b

5889597.SQ.FTS.B,

5.287%,

3/08/34

....

1,085

–

a,b

5894091.SQ.FTS.B,

4.599%,

3/09/34

....

2,167

–

a,b

5893929.SQ.FTS.B,

4.751%,

3/09/34

....

788

–

a,b

5893541.SQ.FTS.B,

5.441%,

3/09/34

....

4,112

–

a,b

5893815.SQ.FTS.B,

5.451%,

3/09/34

....

1,195

–

a,b

5898769.SQ.FTS.B,

3.93%,

3/12/34

.....

2,169

–

a,b

5898320.SQ.FTS.B,

5.031%,

3/12/34

....

8,262

–

a,b

5900989.SQ.FTS.B,

3.935%,

3/13/34

....

5,386

–

a,b

5900390.SQ.FTS.B,

4.434%,

3/13/34

....

13,495

–

a,b

5900600.SQ.FTS.B,

5.093%,

3/13/34

....

7,701

–

a,b

5903864.SQ.FTS.B,

5.043%,

3/14/34

....

2,296

–

a,b

5911495.SQ.FTS.B,

4.309%,

3/16/34

....

40,359

a,b

5910869.SQ.FTS.B,

5.031%,

3/16/34

....

2,092

–

a,b

5913989.SQ.FTS.B,

5.445%,

3/17/34

....

1,336

–

a,b

5914396.SQ.FTS.B,

5.177%,

3/18/34

....

1,467

–

a,b

5915505.SQ.FTS.B,

5.283%,

3/19/34

....

16,318

a,b

5917707.SQ.FTS.B,

5.541%,

3/19/34

....

3,053

–

a,b

5921285.SQ.FTS.B,

4.747%,

3/20/34

....

2,698

–

a,b

5921918.SQ.FTS.B,

5.156%,

3/20/34

....

11,547

–

a,b

5923022.SQ.FTS.B,

5.284%,

3/21/34

....

1,435

–

a,b

5934059.SQ.FTS.B,

5.076%,

3/24/34

....

1,242

–

a,b

5934219.SQ.FTS.B,

5.158%,

3/24/34

....

22,371

–

a,b

5934730.SQ.FTS.B,

4.74%,

3/25/34

.....

2,564

–

a,b

5936923.SQ.FTS.B,

4.526%,

3/26/34

....

9,927

–

a,b

5938584.SQ.FTS.B,

5.097%,

3/26/34

....

6,806

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

5937124.SQ.FTS.B,

5.189%,

3/26/34

....

181

–

a,b

5941367.SQ.FTS.B,

4.717%,

3/27/34

....

4,768

–

a,b

5945082.SQ.FTS.B,

3.927%,

3/28/34

....

2,500

–

a,b

5943947.SQ.FTS.B,

4.74%,

3/28/34

.....

1,308

–

a,b

5945214.SQ.FTS.B,

5.367%,

3/28/34

....

656

–

a,b

5950686.SQ.FTS.B,

4.744%,

3/29/34

....

810

–

a,b

5954440.SQ.FTS.B,

4.843%,

3/30/34

....

7,514

–

a,b

5953097.SQ.FTS.B,

5.031%,

3/30/34

....

885

–

a,b

5956888.SQ.FTS.B,

4.221%,

4/02/34

....

2,980

–

a,b

5956650.SQ.FTS.B,

5.084%,

4/02/34

....

182

–

a,b

5956268.SQ.FTS.B,

5.096%,

4/02/34

....

609

–

a,b

5960434.SQ.FTS.B,

5.182%,

4/03/34

....

375

–

a,b

5959931.SQ.FTS.B,

5.429%,

4/03/34

....

1,644

–

a,b

5959978.SQ.FTS.B,

5.543%,

4/03/34

....

1,182

–

a,b

5966156.SQ.FTS.B,

4.03%,

4/05/34

.....

4,893

–

a,b

5964109.SQ.FTS.B,

5.28%,

4/05/34

.....

3,134

a,b

5980129.SQ.FTS.B,

4.947%,

4/10/34

....

695

–

a,b

5981924.SQ.FTS.B,

4.843%,

4/11/34

....

12,026

a,b

5983869.SQ.FTS.B,

5.031%,

4/11/34

....

1,723

–

a,b

5983705.SQ.FTS.B,

5.441%,

4/11/34

....

4,402

–

a,b

5986027.SQ.FTS.B,

5.095%,

4/12/34

....

3,601

–

a,b

5991404.SQ.FTS.B,

4.591%,

4/13/34

....

1,408

a,b

5995853.SQ.FTS.B,

4.028%,

4/14/34

....

7,553

–

a,b

5995769.SQ.FTS.B,

4.938%,

4/14/34

....

4,698

–

a,b

5996582.SQ.FTS.B,

5.428%,

4/15/34

....

330

–

a,b

6000328.SQ.FTS.B,

5.275%,

4/17/34

....

2,618

–

a,b

6001519.SQ.FTS.B,

4.591%,

4/18/34

....

505

–

a,b

6010572.SQ.FTS.B,

4.216%,

4/20/34

....

6,145

–

a,b

6010705.SQ.FTS.B,

4.906%,

4/20/34

....

4,090

–

a,b

6015748.SQ.FTS.B,

4.756%,

4/21/34

....

3,151

–

a,b

6023977.SQ.FTS.B,

5.196%,

4/25/34

....

871

–

a,b

6024354.SQ.FTS.B,

5.439%,

4/26/34

....

4,215

–

a,b

6037378.SQ.FTS.B,

4.751%,

4/29/34

....

732

–

a,b

6038361.SQ.FTS.B,

4.526%,

4/30/34

....

2,968

–

a,b

6057823.SQ.FTS.B,

4.905%,

5/04/34

....

17,364

–

a,b

6063087.SQ.FTS.B,

4.305%,

5/07/34

....

4,299

–

a,b

6064155.SQ.FTS.B,

5.379%,

5/08/34

....

694

–

a,b

6064464.SQ.FTS.B,

5.542%,

5/08/34

....

3,001

–

a,b

6111911.SQ.FTS.B,

5.379%,

5/09/34

.....

1,257

a,b

6120978.SQ.FTS.B,

4.769%,

5/10/34

....

836

–

a,b

6123828.SQ.FTS.B,

4.906%,

5/10/34

....

15,343

–

a,b

6122851.SQ.FTS.B,

5.157%,

5/10/34

....

5,276

–

a,b

6122683.SQ.FTS.B,

5.438%,

5/10/34

....

9,407

–

a,b

6126543.SQ.FTS.B,

5.457%,

5/12/34

....

452

–

a,b

6127052.SQ.FTS.B,

5.539%,

5/13/34

....

2,897

–

a,b

6134462.SQ.FTS.B,

4.527%,

5/15/34

....

5,519

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

6143084.SQ.FTS.B,

5.515%,

5/17/34

....

140

–

a,b

6145383.SQ.FTS.B,

5.158%,

5/18/34

....

25,311

a,b

6147718.SQ.FTS.B,

5.373%,

5/20/34

....

3,339

–

a,b

6147775.SQ.FTS.B,

5.453%,

5/20/34

....

1,022

–

a,b

6149657.SQ.FTS.B,

4.748%,

5/21/34

....

8,931

–

a,b

6149268.SQ.FTS.B,

5.031%,

5/21/34

....

3,411

–

a,b

6154074.SQ.FTS.B,

4.534%,

5/22/34

....

4,237

–

a,b

6160262.SQ.FTS.B,

4.751%,

5/23/34

....

4,566

–

a,b

6159444.SQ.FTS.B,

4.901%,

5/23/34

....

605

–

a,b

6161261.SQ.FTS.B,

5.287%,

5/24/34

....

1,545

–

a,b

6164819.SQ.FTS.B,

5.444%,

5/26/34

....

480

–

a,b

6164962.SQ.FTS.B,

5.445%,

5/26/34

....

3,092

–

a,b

6169262.SQ.FTS.B,

5.444%,

5/28/34

....

142

–

a,b

6173109.SQ.FTS.B,

4.311%,

5/29/34

....

732

–

a,b

6173073.SQ.FTS.B,

4.906%,

5/29/34

....

1,600

–

a,b

6185954.SQ.FTS.B,

5.441%,

6/03/34

....

1,742

–

a,b

6185770.SQ.FTS.B,

5.547%,

6/03/34

....

2,564

–

a,b

6190982.SQ.FTS.B,

4.314%,

6/05/34

....

4,546

–

a,b

6191154.SQ.FTS.B,

5.532%,

6/06/34

....

2,148

–

a,b

6209210.SQ.FTS.B,

4.309%,

6/09/34

....

6,712

a,b

6209706.SQ.FTS.B,

5.036%,

6/10/34

....

2,323

–

a,b

6211694.SQ.FTS.B,

5.372%,

6/12/34

....

3,075

–

a,b

6217699.SQ.FTS.B,

4.748%,

6/13/34

....

3,192

–

a,b

6217315.SQ.FTS.B,

5.031%,

6/13/34

....

687

–

a,b

6220586.SQ.FTS.B,

5.031%,

6/14/34

....

3,429

–

a,b

6220625.SQ.FTS.B,

5.378%,

6/14/34

....

8,814

–

a,b

6227194.SQ.FTS.B,

5.02%,

6/16/34

.....

1,771

–

a,b

6236255.SQ.FTS.B,

5.436%,

6/18/34

....

2,023

–

a,b

6237088.SQ.FTS.B,

4.742%,

6/19/34

....

1,309

–

a,b

6237213.SQ.FTS.B,

5.438%,

6/19/34

....

994

–

a,b

6243468.SQ.FTS.B,

4.969%,

6/20/34

....

12,676

–

a,b

6243792.SQ.FTS.B,

5.374%,

6/21/34

....

2,999

–

a,b

6245571.SQ.FTS.B,

5.674%,

6/21/34

....

502

–

a,b

6254473.SQ.FTS.B,

5.251%,

6/23/34

....

13,950

–

a,b

6254361.SQ.FTS.B,

5.374%,

6/23/34

....

1,745

–

a,b

6254841.SQ.FTS.B,

5.443%,

6/23/34

....

4,682

–

a,b

6259695.SQ.FTS.B,

5.545%,

6/27/34

....

2,225

–

a,b

6265153.SQ.FTS.B,

5.127%,

6/29/34

....

11,421

–

a,b

6266370.SQ.FTS.B,

5.252%,

6/29/34

....

5,770

–

a,b

6275326.SQ.FTS.B,

5.44%,

7/03/34

.....

2,114

–

a,b

6277033.SQ.FTS.B,

5.25%,

7/04/34

.....

3,011

–

a,b

6278139.SQ.FTS.B,

5.61%,

7/04/34

.....

931

–

a,b

6282812.SQ.FTS.B,

4.969%,

7/06/34

....

15,894

–

a,b

6285291.SQ.FTS.B,

4.969%,

7/06/34

....

21,510

–

a,b

6285821.SQ.FTS.B,

5.609%,

7/07/34

....

1,998

–

a,b

6300866.SQ.FTS.B,

5.66%,

7/13/34

.....

274

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

6309341.SQ.FTS.B,

5.767%,

7/18/34

....

1,719

–

a,b

6314763.SQ.FTS.B,

4.749%,

7/19/34

....

982

–

a,b

6319056.SQ.FTS.B,

4.748%,

7/21/34

....

430

–

a,b

6351823.SQ.FTS.B,

4.966%,

7/24/34

....

1,939

–

a,b

6353581.SQ.FTS.B,

5.118%,

7/24/34

....

916

–

a,b

6351975.SQ.FTS.B,

5.478%,

7/24/34

....

2,638

–

a,b

6359468.SQ.FTS.B,

5.627%,

7/26/34

....

432

–

a,b

6370285.SQ.FTS.B,

5.757%,

7/30/34

....

1,998

–

a,b

6372961.SQ.FTS.B,

5.377%,

7/31/34

....

57,137

–

a,b

6379092.SQ.FTS.B,

5.66%,

8/02/34

.....

954

–

a,b

6382243.SQ.FTS.B,

4.969%,

8/03/34

....

40,502

–

a,b

6386635.SQ.FTS.B,

4.99%,

8/05/34

.....

1,423

–

a,b

6389269.SQ.FTS.B,

5.373%,

8/06/34

....

5,046

–

a,b

6389202.SQ.FTS.B,

5.751%,

8/06/34

....

3,677

–

a,b

6392987.SQ.FTS.B,

4.75%,

8/07/34

.....

7,102

–

a,b

6392793.SQ.FTS.B,

5.48%,

8/07/34

.....

432

–

a,b

6393441.SQ.FTS.B,

4.971%,

8/08/34

....

2,464

–

a,b

6404033.SQ.FTS.B,

4.755%,

8/11/34

....

2,159

–

a,b

6410608.SQ.FTS.B,

5.471%,

8/14/34

....

23,537

–

a,b

6413090.SQ.FTS.B,

5.251%,

8/15/34

....

14,328

–

a,b

6422493.SQ.FTS.B,

4.96%,

8/17/34

.....

–

a,b

6424176.SQ.FTS.B,

4.969%,

8/18/34

....

22,930

a,b

6427394.SQ.FTS.B,

4.75%,

8/21/34

.....

24,524

–

a,b

6427044.SQ.FTS.B,

5.471%,

8/21/34

....

637

–

a,b

6431015.SQ.FTS.B,

4.969%,

8/22/34

....

2,894

–

a,b

6439616.SQ.FTS.B,

4.969%,

8/23/34

....

2,924

–

a,b

6439850.SQ.FTS.B,

5.472%,

8/23/34

....

7,981

–

a,b

6436390.SQ.FTS.B,

5.597%,

8/23/34

....

3,413

–

a,b

6442480.SQ.FTS.B,

5.383%,

8/24/34

....

1,919

–

a,b

6451818.SQ.FTS.B,

4.528%,

8/28/34

....

32,683

a,b

6452723.SQ.FTS.B,

4.75%,

8/28/34

.....

1,840

–

a,b

6454314.SQ.FTS.B,

4.97%,

9/01/34

.....

6,133

–

a,b

6461434.SQ.FTS.B,

5.252%,

9/03/34

....

6,632

a,b

6464078.SQ.FTS.B,

5.121%,

9/04/34

....

818

–

a,b

6467555.SQ.FTS.B,

5.377%,

9/06/34

....

3,596

–

a,b

6465421.SQ.FTS.B,

5.451%,

9/06/34

....

1,180

–

a,b

6470092.SQ.FTS.B,

5.469%,

9/07/34

....

3,576

–

a,b

6475454.SQ.FTS.B,

5.126%,

9/08/34

....

2,557

–

a,b

6475554.SQ.FTS.B,

5.597%,

9/08/34

....

8,062

–

a,b

6481328.SQ.FTS.B,

4.748%,

9/09/34

....

6,302

–

a,b

6483513.SQ.FTS.B,

4.528%,

9/10/34

....

7,992

–

a,b

6484336.SQ.FTS.B,

5.253%,

9/10/34

....

22,221

a,b

6488356.SQ.FTS.B,

5.66%,

9/13/34

.....

3,633

–

a,b

6496050.SQ.FTS.B,

5.598%,

9/15/34

....

2,621

–

a,b

6503201.SQ.FTS.B,

4.755%,

9/17/34

....

1,828

–

a,b

6508534.SQ.FTS.B,

5.66%,

9/20/34

.....

3,125

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

6523267.SQ.FTS.B,

4.84%,

9/24/34

.....

5,923

–

a,b

6531074.SQ.FTS.B,

5.031%,

9/28/34

....

24,833

–

a,b

6533670.SQ.FTS.B,

5.44%,

9/28/34

.....

2,210

a,b

6537472.SQ.FTS.B,

5.437%,

9/29/34

....

2,567

–

a,b

6541353.SQ.FTS.B,

5.597%,

9/30/34

....

727

–

a,b

6547411.SQ.FTS.B,

4.749%,

10/01/34

...

14,177

a,b

6552948.SQ.FTS.B,

5.131%,

10/04/34

...

1,758

–

a,b

6553144.SQ.FTS.B,

5.44%,

10/04/34

....

734

–

a,b

6563116.SQ.FTS.B,

5.436%,

10/07/34

...

626

–

a,b

6566625.SQ.FTS.B,

5.189%,

10/08/34

...

10,420

–

a,b

6570679.SQ.FTS.B,

5.44%,

10/10/34

....

15,812

–

a,b

6577981.SQ.FTS.B,

5.251%,

10/12/34

...

10,021

–

a,b

6581786.SQ.FTS.B,

5.755%,

10/13/34

...

584

–

a,b

6582337.SQ.FTS.B,

6.008%,

10/13/34

...

569

–

a,b

6592468.SQ.FTS.B,

5.188%,

10/18/34

...

26,389

–

a,b

6591444.SQ.FTS.B,

6.157%,

10/18/34

...

1,914

–

a,b

6608375.SQ.FTS.B,

6.263%,

10/24/34

...

1,568

–

a,b

6614457.SQ.FTS.B,

5.759%,

10/26/34

...

2,216

–

a,b

6617414.SQ.FTS.B,

6.006%,

10/27/34

...

2,152

–

a,b

6623607.SQ.FTS.B,

6.419%,

10/28/34

...

2,737

–

a,b

6624957.SQ.FTS.B,

6.411%,

10/30/34

...

3,183

–

a,b

6628247.SQ.FTS.B,

4.937%,

11/01/34

...

3,665

–

a,b

6626404.SQ.FTS.B,

6.006%,

11/01/34

...

693

–

a,b

6628104.SQ.FTS.B,

6.162%,

11/01/34

...

8,424

–

a,b

6629787.SQ.FTS.B,

5.57%,

11/02/34

....

7,692

–

a,b

6632388.SQ.FTS.B,

6.413%,

11/02/34

...

6,201

–

a,b

6633231.SQ.FTS.B,

4.745%,

11/03/34

...

238

–

a,b

6639032.SQ.FTS.B,

5.442%,

11/04/34

...

11,342

–

a,b

6644191.SQ.FTS.B,

5.189%,

11/05/34

...

32,363

–

a,b

6641907.SQ.FTS.B,

5.372%,

11/05/34

...

3,766

–

a,b

6641788.SQ.FTS.B,

5.445%,

11/05/34

...

1,794

–

a,b

6651688.SQ.FTS.B,

4.654%,

11/09/34

...

53,478

–

a,b

6649660.SQ.FTS.B,

5.185%,

11/09/34

...

121

–

a,b

6651437.SQ.FTS.B,

5.454%,

11/09/34

...

494

–

a,b

6655130.SQ.FTS.B,

5.442%,

11/10/34

...

888

–

a,b

6663871.SQ.FTS.B,

4.935%,

11/12/34

...

3,838

–

a,b

6662849.SQ.FTS.B,

4.936%,

11/12/34

...

4,461

–

a,b

6662189.SQ.FTS.B,

6.013%,

11/12/34

...

858

–

a,b

6664005.SQ.FTS.B,

6.167%,

11/12/34

...

3,617

–

a,b

6665226.SQ.FTS.B,

6.006%,

11/13/34

...

660

–

a,b

6668780.SQ.FTS.B,

5.566%,

11/15/34

...

9,273

–

a,b

6672424.SQ.FTS.B,

5.377%,

11/16/34

...

4,203

a,b

6670037.SQ.FTS.B,

5.571%,

11/16/34

...

6,805

–

a,b

6674961.SQ.FTS.B,

5.44%,

11/17/34

....

5,853

–

a,b

6678696.SQ.FTS.B,

4.936%,

11/18/34

...

19,360

–

a,b

6681578.SQ.FTS.B,

4.937%,

11/18/34

...

10,776

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

6679343.SQ.FTS.B,

5.379%,

11/18/34

...

3,191

–

a,b

6684387.SQ.FTS.B,

4.738%,

11/19/34

...

1,197

–

a,b

6682519.SQ.FTS.B,

5.381%,

11/19/34

...

771

–

a,b

6685009.SQ.FTS.B,

5.752%,

11/20/34

...

2,633

–

a,b

6685907.SQ.FTS.B,

5.568%,

11/21/34

...

5,699

–

a,b

6686639.SQ.FTS.B,

4.937%,

11/22/34

...

1,131

–

a,b

6686940.SQ.FTS.B,

4.937%,

11/22/34

...

2,880

–

a,b

6689856.SQ.FTS.B,

4.659%,

11/23/34

...

4,087

–

a,b

6692529.SQ.FTS.B,

5.186%,

11/23/34

...

6,099

–

a,b

6689979.SQ.FTS.B,

5.377%,

11/23/34

...

12,919

–

a,b

6709316.SQ.FTS.B,

5.767%,

11/29/34

...

108

–

a,b

6719810.SQ.FTS.B,

6.432%,

12/01/34

...

1,571

–

a,b

6724464.SQ.FTS.B,

4.747%,

12/02/34

...

9,907

–

a,b

6729931.SQ.FTS.B,

6.262%,

12/05/34

...

5,140

–

a,b

6731838.SQ.FTS.B,

4.654%,

12/06/34

...

5,855

–

a,b

6731255.SQ.FTS.B,

5.188%,

12/06/34

...

1,286

–

a,b

6730881.SQ.FTS.B,

5.755%,

12/06/34

...

5,559

–

a,b

6737291.SQ.FTS.B,

5.203%,

12/07/34

...

1,511

–

a,b

6742103.SQ.FTS.B,

6.26%,

12/08/34

....

970

–

a,b

6746092.SQ.FTS.B,

4.659%,

12/09/34

...

1,222

–

a,b

6745247.SQ.FTS.B,

4.74%,

12/09/34

....

775

–

a,b

6746977.SQ.FTS.B,

5.188%,

12/10/34

...

15,911

–

a,b

6753247.SQ.FTS.B,

4.655%,

12/13/34

...

9,691

–

a,b

6753008.SQ.FTS.B,

4.749%,

12/13/34

...

6,085

–

a,b

6756294.SQ.FTS.B,

5.751%,

12/14/34

...

756

–

a,b

6764489.SQ.FTS.B,

4.937%,

12/15/34

...

21,402

–

a,b

6770530.SQ.FTS.B,

5.39%,

12/19/34

....

1,058

–

a,b

6771134.SQ.FTS.B,

6.006%,

12/19/34

...

18,256

–

a,b

6774551.SQ.FTS.B,

5.567%,

12/20/34

...

17,810

–

a,b

6781272.SQ.FTS.B,

5.566%,

12/22/34

...

37,439

–

a,b

6783369.SQ.FTS.B,

6.27%,

12/23/34

....

1,854

–

a,b

6792314.SQ.FTS.B,

6.005%,

12/27/34

...

6,421

–

a,b

6795315.SQ.FTS.B,

6.417%,

12/28/34

...

1,229

–

a,b

6800044.SQ.FTS.B,

6.258%,

12/29/34

...

4,752

–

a,b

6804745.SQ.FTS.B,

5.449%,

12/30/34

...

180

–

a,b

6806677.SQ.FTS.B,

5.568%,

12/30/34

...

3,293

–

a,b

6808256.SQ.FTS.B,

5.546%,

1/01/35

....

794

–

a,b

6812850.SQ.FTS.B,

4.652%,

1/03/35

....

1,848

–

a,b

6812517.SQ.FTS.B,

5.566%,

1/03/35

....

14,910

–

a,b

6810642.SQ.FTS.B,

6.009%,

1/03/35

....

5,633

–

a,b

6815367.SQ.FTS.B,

5.371%,

1/05/35

....

1,775

–

a,b

6822097.SQ.FTS.B,

4.751%,

1/06/35

....

1,805

–

a,b

6818955.SQ.FTS.B,

4.938%,

1/06/35

....

7,512

–

a,b

6826532.SQ.FTS.B,

5.749%,

1/08/35

....

3,960

–

a,b

6836269.SQ.FTS.B,

4.747%,

1/12/35

....

758

–

a,b

6833875.SQ.FTS.B,

5.189%,

1/12/35

....

1,457

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

6836478.SQ.FTS.B,

5.749%,

1/12/35

....

673

–

a,b

6841626.SQ.FTS.B,

4.748%,

1/13/35

....

5,625

–

a,b

6838796.SQ.FTS.B,

6.176%,

1/13/35

....

1,173

–

a,b

6839643.SQ.FTS.B,

6.205%,

1/13/35

....

576

–

a,b

6843667.SQ.FTS.B,

6.415%,

1/14/35

....

32,216

–

a,b

6845960.SQ.FTS.B,

4.748%,

1/15/35

....

2,477

–

a,b

6846131.SQ.FTS.B,

5.747%,

1/15/35

....

690

–

a,b

6846797.SQ.FTS.B,

5.191%,

1/16/35

....

623

–

a,b

6846652.SQ.FTS.B,

5.773%,

1/16/35

....

183

–

a,b

6849498.SQ.FTS.B,

4.655%,

1/17/35

....

5,530

–

a,b

6849711.SQ.FTS.B,

4.743%,

1/17/35

....

628

–

a,b

6849119.SQ.FTS.B,

5.563%,

1/17/35

....

196

–

a,b

6848265.SQ.FTS.B,

6.172%,

1/17/35

....

1,144

–

a,b

6852615.SQ.FTS.B,

4.756%,

1/18/35

....

1,041

–

a,b

6855849.SQ.FTS.B,

4.653%,

1/19/35

....

3,144

–

a,b

6862957.SQ.FTS.B,

6.254%,

1/21/35

....

4,171

–

a,b

6871369.SQ.FTS.B,

5.567%,

1/25/35

....

499

–

a,b

6871155.SQ.FTS.B,

6.012%,

1/25/35

....

3,560

–

a,b

6873383.SQ.FTS.B,

6.15%,

1/26/35

.....

334

–

a,b

6880856.SQ.FTS.B,

5.366%,

1/28/35

....

1,568

–

a,b

6884787.SQ.FTS.B,

6.262%,

1/29/35

....

3,067

–

a,b

6889119.SQ.FTS.B,

6.008%,

1/31/35

....

3,513

–

a,b

6889109.SQ.FTS.B,

6.258%,

1/31/35

....

1,082

–

a,b

6891067.SQ.FTS.B,

6.255%,

2/01/35

....

5,566

–

a,b

6895588.SQ.FTS.B,

4.657%,

2/02/35

....

10,603

–

a,b

6893023.SQ.FTS.B,

5.378%,

2/02/35

....

14,273

a,b

6899300.SQ.FTS.B,

4.643%,

2/03/35

....

1,221

–

a,b

6899194.SQ.FTS.B,

4.754%,

2/03/35

....

463

–

a,b

6903284.SQ.FTS.B,

4.654%,

2/04/35

....

3,163

–

a,b

6904989.SQ.FTS.B,

5.189%,

2/05/35

....

22,112

–

a,b

6904822.SQ.FTS.B,

5.573%,

2/05/35

....

285

–

a,b

6908001.SQ.FTS.B,

5.565%,

2/07/35

....

23,167

–

a,b

6909141.SQ.FTS.B,

5.379%,

2/08/35

....

19,068

–

a,b

6913052.SQ.FTS.B,

4.942%,

2/09/35

....

2,970

–

a,b

6914678.SQ.FTS.B,

5.758%,

2/09/35

....

3,385

–

a,b

6916173.SQ.FTS.B,

5.577%,

2/10/35

....

512

–

a,b

6920447.SQ.FTS.B,

6.006%,

2/11/35

....

24,973

–

a,b

6923496.SQ.FTS.B,

6.258%,

2/15/35

....

2,278

a,b

6934833.SQ.FTS.B,

4.938%,

2/17/35

....

4,744

–

a,b

6934329.SQ.FTS.B,

6.258%,

2/17/35

....

12,367

–

a,b

6936990.SQ.FTS.B,

4.748%,

2/18/35

....

3,340

–

a,b

6937130.SQ.FTS.B,

6.132%,

2/18/35

....

381

–

a,b

6938552.SQ.FTS.B,

6.416%,

2/18/35

....

6,233

–

a,b

6942251.SQ.FTS.B,

4.656%,

2/20/35

....

3,601

–

a,b

6946120.SQ.FTS.B,

6.164%,

2/21/35

....

10,031

–

a,b

6944161.SQ.FTS.B,

6.261%,

2/21/35

....

1,708

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

6966531.SQ.FTS.B,

4.749%,

2/28/35

....

3,997

–

a,b

6978952.SQ.FTS.B,

4.937%,

2/28/35

....

51,353

a,b

6967741.SQ.FTS.B,

5.189%,

2/28/35

....

1,401

–

a,b

6966362.SQ.FTS.B,

5.376%,

2/28/35

....

238

–

a,b

6968103.SQ.FTS.B,

5.455%,

2/28/35

....

537

–

a,b

6966621.SQ.FTS.B,

5.569%,

2/28/35

....

1,752

–

a,b

6971755.SQ.FTS.B,

5.975%,

2/28/35

....

353

–

a,b

6970716.SQ.FTS.B,

6.005%,

2/28/35

....

1,583

–

a,b

6966412.SQ.FTS.B,

6.167%,

2/28/35

....

2,449

–

a,b

6978418.SQ.FTS.B,

6.247%,

2/28/35

....

1,258

–

a,b

6966854.SQ.FTS.B,

6.26%,

2/28/35

.....

3,823

–

a,b

6981964.SQ.FTS.B,

5.376%,

3/01/35

....

13,283

–

a,b

6984708.SQ.FTS.B,

5.567%,

3/02/35

....

1,263

–

a,b

6987569.SQ.FTS.B,

5.754%,

3/05/35

....

3,671

–

a,b

6993089.SQ.FTS.B,

4.76%,

3/06/35

.....

594

–

a,b

7009269.SQ.FTS.B,

6.165%,

3/12/35

....

22,063

–

a,b

7014159.SQ.FTS.B,

5.56%,

3/13/35

.....

1,246

–

a,b

7021732.SQ.FTS.B,

5.376%,

3/15/35

....

2,798

a,b

7022730.SQ.FTS.B,

6.259%,

3/15/35

....

3,666

–

a,b

7028537.SQ.FTS.B,

5.189%,

3/18/35

....

66,996

a,b

7032279.SQ.FTS.B,

5.567%,

3/19/35

....

1,308

–

a,b

7043444.SQ.FTS.B,

5.376%,

3/21/35

....

6,529

–

a,b

7040179.SQ.FTS.B,

5.564%,

3/21/35

....

8,893

–

a,b

7046836.SQ.FTS.B,

6.261%,

3/22/35

....

2,078

–

a,b

7050197.SQ.FTS.B,

4.749%,

3/25/35

....

13,025

–

a,b

7052668.SQ.FTS.B,

4.936%,

3/25/35

....

1,948

–

a,b

7052092.SQ.FTS.B,

5.754%,

3/25/35

....

4,535

–

a,b

7050592.SQ.FTS.B,

6.263%,

3/25/35

....

912

–

a,b

7054612.SQ.FTS.B,

6.006%,

3/26/35

....

5,385

–

a,b

7061323.SQ.FTS.B,

5.189%,

3/28/35

....

34,494

–

a,b

7062421.SQ.FTS.B,

6.006%,

3/28/35

....

896

–

a,b

7062617.SQ.FTS.B,

6.164%,

3/28/35

....

20,347

–

a,b

7067874.SQ.FTS.B,

6.003%,

3/29/35

....

3,096

–

a,b

7065573.SQ.FTS.B,

6.258%,

3/29/35

....

13,691

–

a,b

7071000.SQ.FTS.B,

4.721%,

4/02/35

....

645

–

a,b

7071948.SQ.FTS.B,

6.248%,

4/02/35

....

631

–

a,b

7080510.SQ.FTS.B,

6.274%,

4/04/35

....

1,437

–

a,b

7085620.SQ.FTS.B,

6.007%,

4/05/35

....

8,877

–

a,b

7089901.SQ.FTS.B,

5.375%,

4/06/35

....

7,927

–

a,b

7091540.SQ.FTS.B,

5.756%,

4/06/35

....

10,017

–

a,b

7091737.SQ.FTS.B,

6.421%,

4/06/35

....

949

–

a,b

7095396.SQ.FTS.B,

5.76%,

4/09/35

.....

2,090

–

a,b

7098792.SQ.FTS.B,

4.653%,

4/10/35

....

2,031

–

a,b

7101698.SQ.FTS.B,

5.393%,

4/11/35

....

1,010

–

a,b

7102724.SQ.FTS.B,

5.566%,

4/11/35

....

4,584

a,b

7102932.SQ.FTS.B,

6.255%,

4/11/35

....

1,825

–

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

7105121.SQ.FTS.B,

4.938%,

4/12/35

....

1,161

–

a,b

7106451.SQ.FTS.B,

5.377%,

4/12/35

....

11,899

–

a,b

7108839.SQ.FTS.B,

4.653%,

4/13/35

....

3,313

–

a,b

7109927.SQ.FTS.B,

6.418%,

4/13/35

....

8,573

–

a,b

7112255.SQ.FTS.B,

6.155%,

4/14/35

....

2,323

–

a,b

7115405.SQ.FTS.B,

4.655%,

4/16/35

....

32,107

a,b

7115331.SQ.FTS.B,

5.762%,

4/16/35

....

561

–

a,b

7121272.SQ.FTS.B,

6.012%,

4/17/35

....

2,783

–

a,b

7122345.SQ.FTS.B,

4.762%,

4/18/35

....

402

–

a,b

7123668.SQ.FTS.B,

4.936%,

4/18/35

....

2,218

–

a,b

7123343.SQ.FTS.B,

6.006%,

4/18/35

....

2,848

a,b

7134939.SQ.FTS.B,

5.756%,

4/19/35

....

9,292

–

a,b

7137611.SQ.FTS.B,

5.189%,

4/20/35

....

10,916

a,b

7147597.SQ.FTS.B,

5.364%,

4/23/35

....

1,926

–

a,b

7147279.SQ.FTS.B,

5.38%,

4/23/35

.....

6,849

–

a,b

7154719.SQ.FTS.B,

5.759%,

4/25/35

....

6,577

–

a,b

7163900.SQ.FTS.B,

6.413%,

4/27/35

....

5,443

a,b

7164193.SQ.FTS.B,

5.377%,

4/28/35

....

5,624

–

a,b

7165931.SQ.FTS.B,

5.385%,

4/29/35

....

1,875

–

a,b

7168044.SQ.FTS.B,

5.764%,

4/30/35

....

2,062

–

a,b

7176646.SQ.FTS.B,

4.762%,

5/01/35

....

1,231

–

a,b

7176634.SQ.FTS.B,

5.445%,

5/01/35

....

1,458

–

a,b

7173920.SQ.FTS.B,

5.759%,

5/01/35

....

251

–

a,b

7173881.SQ.FTS.B,

6.415%,

5/01/35

....

2,005

–

a,b

7180807.SQ.FTS.B,

4.654%,

5/02/35

....

2,907

–

a,b

7180850.SQ.FTS.B,

4.935%,

5/02/35

....

2,462

–

a,b

7179318.SQ.FTS.B,

5.189%,

5/02/35

....

11,067

–

a,b

7196096.SQ.FTS.B,

6.003%,

5/07/35

....

8,216

–

a,b

7201085.SQ.FTS.B,

6.419%,

5/08/35

....

1,847

–

a,b

7203631.SQ.FTS.B,

4.745%,

5/09/35

....

1,386

–

a,b

7204614.SQ.FTS.B,

5.184%,

5/09/35

....

3,537

–

a,b

7206450.SQ.FTS.B,

5.373%,

5/09/35

....

1,582

–

a,b

7204933.SQ.FTS.B,

5.409%,

5/09/35

....

381

–

a,b

7206160.SQ.FTS.B,

6.258%,

5/09/35

....

11,872

–

a,b

7215803.SQ.FTS.B,

4.932%,

5/13/35

....

3,486

–

a,b

7215930.SQ.FTS.B,

6.257%,

5/13/35

....

13,761

–

a,b

7224254.SQ.FTS.B,

5.757%,

5/15/35

....

2,770

–

a,b

7222451.SQ.FTS.B,

6.258%,

5/15/35

....

1,539

–

a,b

7235145.SQ.FTS.B,

6.008%,

5/18/35

....

20,605

–

a,b

7237806.SQ.FTS.B,

5.384%,

5/20/35

....

768

–

a,b

7243413.SQ.FTS.B,

5.382%,

5/21/35

....

837

a,b

7244368.SQ.FTS.B,

6%,

5/21/35

.......

620

–

a,b

7243236.SQ.FTS.B,

6.26%,

5/21/35

.....

8,746

–

a,b

7247605.SQ.FTS.B,

5.185%,

5/22/35

....

1,856

–

a,b

7249679.SQ.FTS.B,

6.422%,

5/22/35

....

245

–

a,b

7249518.SQ.FTS.B,

6.424%,

5/22/35

....

1,960

–

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

7253237.SQ.FTS.B,

6.01%,

5/24/35

.....

270

–

a,b

7252834.SQ.FTS.B,

6.167%,

5/24/35

....

4,847

–

a,b

7256122.SQ.FTS.B,

5.365%,

5/25/35

....

1,533

–

a,b

7256570.SQ.FTS.B,

4.935%,

5/26/35

....

5,380

a,b

7262532.SQ.FTS.B,

4.752%,

5/28/35

....

3,144

–

a,b

7262602.SQ.FTS.B,

5.43%,

5/28/35

.....

462

–

a,b

7264204.SQ.FTS.B,

4.654%,

5/29/35

....

20,052

a,b

7275604.SQ.FTS.B,

5.374%,

6/01/35

....

756

–

a,b

7280873.SQ.FTS.B,

5.192%,

6/04/35

....

5,514

a,b

7281601.SQ.FTS.B,

5.409%,

6/04/35

....

1,132

–

a,b

7282811.SQ.FTS.B,

6.248%,

6/04/35

....

529

–

a,b

7281210.SQ.FTS.B,

6.261%,

6/04/35

....

901

–

a,b

7287176.SQ.FTS.B,

6.006%,

6/05/35

....

5,152

–

a,b

7284693.SQ.FTS.B,

6.007%,

6/05/35

....

1,055

–

a,b

7287732.SQ.FTS.B,

6.184%,

6/05/35

....

300

–

a,b

7287144.SQ.FTS.B,

6.267%,

6/05/35

....

1,419

–

a,b

7290056.SQ.FTS.B,

5.377%,

6/06/35

....

5,162

a,b

7289261.SQ.FTS.B,

5.565%,

6/06/35

....

1,039

–

a,b

7299621.SQ.FTS.B,

4.654%,

6/08/35

....

35,360

a,b

7300176.SQ.FTS.B,

6.008%,

6/08/35

....

136

a,b

7303540.SQ.FTS.B,

5.565%,

6/10/35

....

1,343

a,b

7303522.SQ.FTS.B,

6.265%,

6/10/35

....

335

–

a,b

7314543.SQ.FTS.B,

5.191%,

6/12/35

....

3,475

–

a,b

7316842.SQ.FTS.B,

4.743%,

6/13/35

....

1,433

a,b

7317981.SQ.FTS.B,

5.434%,

6/13/35

....

1,348

a,b

7314697.SQ.FTS.B,

5.559%,

6/13/35

....

3,748

a,b

7318018.SQ.FTS.B,

5.564%,

6/13/35

....

6,392

a,b

7323718.SQ.FTS.B,

6.006%,

6/14/35

....

3,869

–

a,b

7327791.SQ.FTS.B,

4.748%,

6/15/35

....

8,988

a,b

7324925.SQ.FTS.B,

5.182%,

6/15/35

....

1,333

a,b

7328914.SQ.FTS.B,

5.566%,

6/16/35

....

10,484

–

a,b

7329210.SQ.FTS.B,

6.42%,

6/17/35

.....

3,315

a,b

7334014.SQ.FTS.B,

5.459%,

6/18/35

....

1,044

a,b

7330422.SQ.FTS.B,

6.162%,

6/18/35

....

625

a,b

7336581.SQ.FTS.B,

4.937%,

6/19/35

....

49,530

a,b

7335932.SQ.FTS.B,

5.566%,

6/19/35

....

8,474

–

a,b

7334863.SQ.FTS.B,

5.763%,

6/19/35

....

1,344

a,b

7339897.SQ.FTS.B,

4.653%,

6/20/35

....

3,395

a,b

7340806.SQ.FTS.B,

6.008%,

6/20/35

....

3,592

a,b

7344575.SQ.FTS.B,

6.009%,

6/21/35

....

4,098

a,b

7346393.SQ.FTS.B,

6.164%,

6/21/35

....

62,612

a,b

7348505.SQ.FTS.B,

6.038%,

6/22/35

....

564

a,b

7351981.SQ.FTS.B,

4.654%,

6/23/35

....

17,215

a,b

7352490.SQ.FTS.B,

4.752%,

6/23/35

....

1,987

a,b

7352850.SQ.FTS.B,

6.257%,

6/24/35

....

12,690

a,b

7353901.SQ.FTS.B,

6.167%,

6/25/35

....

4,755

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

7359006.SQ.FTS.B,

5.439%,

6/27/35

....

2,767

a,b

7371685.SQ.FTS.B,

5.752%,

6/30/35

....

3,456

a,b

7370367.SQ.FTS.B,

5.764%,

6/30/35

....

1,662

a,b

7370851.SQ.FTS.B,

6.02%,

6/30/35

.....

664

a,b

7375076.SQ.FTS.B,

5.374%,

7/02/35

....

6,359

a,b

7377813.SQ.FTS.B,

5.76%,

7/03/35

.....

5,830

a,b

7387529.SQ.FTS.B,

5.372%,

7/06/35

....

631

a,b

7389966.SQ.FTS.B,

4.756%,

7/08/35

....

1,331

a,b

7389892.SQ.FTS.B,

5.193%,

7/08/35

....

2,172

a,b

7402047.SQ.FTS.B,

5.75%,

7/11/35

.....

5,039

a,b

7401076.SQ.FTS.B,

6.161%,

7/11/35

....

4,234

a,b

7411525.SQ.FTS.B,

6.169%,

7/16/35

....

946

a,b

7412344.SQ.FTS.B,

4.707%,

7/17/35

....

212

–

a,b

7412972.SQ.FTS.B,

5.377%,

7/17/35

....

6,512

a,b

7416105.SQ.FTS.B,

4.939%,

7/18/35

....

2,940

a,b

7417924.SQ.FTS.B,

5.566%,

7/18/35

....

5,269

a,b

7423387.SQ.FTS.B,

5.574%,

7/21/35

....

1,914

a,b

7426750.SQ.FTS.B,

4.758%,

7/22/35

....

1,835

a,b

7430504.SQ.FTS.B,

4.654%,

7/24/35

....

68,115

a,b

7438053.SQ.FTS.B,

5.566%,

7/25/35

....

9,004

a,b

7441625.SQ.FTS.B,

4.937%,

7/26/35

....

27,213

1,989

a,b

7443079.SQ.FTS.B,

6.271%,

7/28/35

....

415

a,b

7447048.SQ.FTS.B,

4.749%,

7/29/35

....

43,825

a,b

7446590.SQ.FTS.B,

5.377%,

7/29/35

....

8,070

a,b

7461359.SQ.FTS.B,

6.162%,

8/02/35

....

10,885

a,b

7468484.SQ.FTS.B,

4.653%,

8/06/35

....

27,792

a,b

7473943.SQ.FTS.B,

5.377%,

8/07/35

....

2,381

a,b

7483714.SQ.FTS.B,

5.453%,

8/10/35

....

442

–

a,b

7484428.SQ.FTS.B,

5.189%,

8/11/35

....

4,409

a,b

7483959.SQ.FTS.B,

5.756%,

8/11/35

....

2,817

a,b

7488673.SQ.FTS.B,

5.581%,

8/13/35

....

805

a,b

7489102.SQ.FTS.B,

5.757%,

8/13/35

....

1,307

a,b

7490203.SQ.FTS.B,

6.424%,

8/13/35

....

509

a,b

7500824.SQ.FTS.B,

6.258%,

8/15/35

....

27,055

a,b

7508686.SQ.FTS.B,

4.934%,

8/16/35

....

2,765

a,b

7508856.SQ.FTS.B,

4.932%,

8/17/35

....

3,854

a,b

7511303.SQ.FTS.B,

4.939%,

8/19/35

....

5,973

a,b

7511680.SQ.FTS.B,

5.381%,

8/19/35

....

5,184

a,b

7511795.SQ.FTS.B,

5.761%,

8/19/35

....

2,165

a,b

7514863.SQ.FTS.B,

4.654%,

8/20/35

....

9,340

a,b

7519968.SQ.FTS.B,

6.415%,

8/21/35

....

10,143

a,b

7533921.SQ.FTS.B,

5.566%,

8/26/35

....

9,844

a,b

7535779.SQ.FTS.B,

4.653%,

8/27/35

....

3,761

a,b

7537580.SQ.FTS.B,

4.937%,

8/27/35

....

25,953

a,b

7539738.SQ.FTS.B,

5.566%,

8/27/35

....

8,562

1,079

a,b

7542074.SQ.FTS.B,

4.654%,

8/28/35

....

5,237

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

7549987.SQ.FTS.B,

5.732%,

8/29/35

....

653

a,b

7552166.SQ.FTS.B,

5.418%,

9/01/35

....

717

a,b

7560015.SQ.FTS.B,

6.262%,

9/04/35

....

1,773

a,b

7573684.SQ.FTS.B,

4.764%,

9/07/35

....

481

a,b

7573640.SQ.FTS.B,

4.937%,

9/07/35

....

3,544

a,b

7573480.SQ.FTS.B,

5.571%,

9/07/35

....

3,736

a,b

7573972.SQ.FTS.B,

6.003%,

9/07/35

....

4,128

254

a,b

7571507.SQ.FTS.B,

6.169%,

9/07/35

....

2,659

a,b

7578877.SQ.FTS.B,

4.78%,

9/09/35

.....

–

a,b

7580830.SQ.FTS.B,

5.189%,

9/11/35

....

4,100

a,b

7581869.SQ.FTS.B,

6.01%,

9/11/35

.....

1,493

a,b

7581762.SQ.FTS.B,

6.253%,

9/11/35

....

384

a,b

7586278.SQ.FTS.B,

4.654%,

9/12/35

....

8,025

a,b

7586914.SQ.FTS.B,

5.375%,

9/12/35

....

9,130

a,b

7590230.SQ.FTS.B,

5.196%,

9/13/35

....

855

a,b

7596084.SQ.FTS.B,

4.94%,

9/14/35

.....

7,889

1,304

a,b

7599917.SQ.FTS.B,

6.447%,

9/15/35

....

492

a,b

7600486.SQ.FTS.B,

4.769%,

9/16/35

....

645

a,b

7600104.SQ.FTS.B,

5.752%,

9/16/35

....

3,186

a,b

7601096.SQ.FTS.B,

5.377%,

9/17/35

....

12,879

a,b

7603430.SQ.FTS.B,

5.38%,

9/18/35

.....

4,283

a,b

7602494.SQ.FTS.B,

6.255%,

9/18/35

....

2,210

a,b

7608442.SQ.FTS.B,

5.565%,

9/19/35

....

5,862

a,b

7617942.SQ.FTS.B,

5.758%,

9/21/35

....

2,823

a,b

7621404.SQ.FTS.B,

6.413%,

9/23/35

....

3,184

a,b

7623850.SQ.FTS.B,

5.19%,

9/25/35

.....

482

a,b

7623781.SQ.FTS.B,

5.379%,

9/25/35

....

1,952

a,b

7624159.SQ.FTS.B,

6.261%,

9/25/35

....

668

a,b

7629674.SQ.FTS.B,

5.189%,

9/26/35

....

7,987

a,b

7626558.SQ.FTS.B,

5.564%,

9/26/35

....

970

a,b

7629259.SQ.FTS.B,

5.565%,

9/26/35

....

2,930

a,b

7629134.SQ.FTS.B,

6.413%,

9/26/35

....

4,696

a,b

7630481.SQ.FTS.B,

5.189%,

9/27/35

....

11,930

a,b

7643054.SQ.FTS.B,

6.165%,

9/29/35

....

373

a,b

7639746.SQ.FTS.B,

6.415%,

9/29/35

....

63,645

129

a,b

7643615.SQ.FTS.B,

6.134%,

9/30/35

....

212

a,b

7648077.SQ.FTS.B,

4.75%,

10/01/35

....

6,098

a,b

7647696.SQ.FTS.B,

5.441%,

10/01/35

...

11,385

a,b

7654130.SQ.FTS.B,

6.264%,

10/03/35

...

247

a,b

7669547.SQ.FTS.B,

5.432%,

10/07/35

...

1,096

177

a,b

7674523.SQ.FTS.B,

6.289%,

10/09/35

...

6,179

a,b

7675618.SQ.FTS.B,

6.415%,

10/09/35

...

38,440

a,b

7679612.SQ.FTS.B,

5.562%,

10/10/35

...

2,603

a,b

7682366.SQ.FTS.B,

5.376%,

10/11/35

...

4,325

a,b

7684952.SQ.FTS.B,

5.567%,

10/11/35

...

741

188

a,b

7685699.SQ.FTS.B,

6.305%,

10/11/35

...

968

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

7686665.SQ.FTS.B,

5.569%,

10/12/35

...

2,104

a,b

7694250.SQ.FTS.B,

4.749%,

10/15/35

...

606

a,b

7693783.SQ.FTS.B,

5.378%,

10/15/35

...

11,907

a,b

7696123.SQ.FTS.B,

5.912%,

10/16/35

...

1,117

a,b

7696300.SQ.FTS.B,

5.912%,

10/16/35

...

5,166

a,b

7695636.SQ.FTS.B,

6.27%,

10/16/35

....

276

a,b

7703086.SQ.FTS.B,

5.093%,

10/18/35

...

1,487

a,b

7714659.SQ.FTS.B,

5.193%,

10/24/35

...

5,959

a,b

7723470.SQ.FTS.B,

4.78%,

10/25/35

....

302

a,b

7725398.SQ.FTS.B,

5.907%,

10/26/35

...

3,637

a,b

7725775.SQ.FTS.B,

6.163%,

10/26/35

...

3,004

a,b

7729059.SQ.FTS.B,

6.165%,

10/26/35

...

13,362

a,b

7726167.SQ.FTS.B,

6.289%,

10/26/35

...

224

a,b

7735985.SQ.FTS.B,

6.479%,

10/29/35

...

2,176

a,b

7740921.SQ.FTS.B,

4.779%,

10/30/35

...

11,985

a,b

7738357.SQ.FTS.B,

5.723%,

10/30/35

...

36,237

166

a,b

7742677.SQ.FTS.B,

5.094%,

11/01/35

...

5,339

a,b

7751779.SQ.FTS.B,

5.105%,

11/02/35

...

894

a,b

7755332.SQ.FTS.B,

5.357%,

11/03/35

...

124

a,b

7755761.SQ.FTS.B,

5.723%,

11/03/35

...

8,935

a,b

7756617.SQ.FTS.B,

5.725%,

11/03/35

...

590

a,b

7763863.SQ.FTS.B,

4.783%,

11/06/35

...

361

a,b

7764093.SQ.FTS.B,

4.767%,

11/07/35

...

1,341

a,b

7765591.SQ.FTS.B,

6.162%,

11/07/35

...

3,020

886

a,b

7769643.SQ.FTS.B,

6.178%,

11/08/35

...

1,249

a,b

7768040.SQ.FTS.B,

6.293%,

11/08/35

...

1,043

a,b

7781183.SQ.FTS.B,

6.289%,

11/10/35

...

4,278

1,329

a,b

7779968.SQ.FTS.B,

6.479%,

11/10/35

...

604

a,b

7781843.SQ.FTS.B,

6.164%,

11/11/35

...

675

a,b

7782479.SQ.FTS.B,

6.272%,

11/11/35

...

955

274

a,b

7782836.SQ.FTS.B,

6.302%,

11/12/35

...

1,154

a,b

7786042.SQ.FTS.B,

6.167%,

11/13/35

...

7,212

a,b

7791025.SQ.FTS.B,

4.783%,

11/14/35

...

6,835

a,b

7790524.SQ.FTS.B,

6.16%,

11/14/35

....

2,565

a,b

7794575.SQ.FTS.B,

4.78%,

11/15/35

....

17,650

170

a,b

7791568.SQ.FTS.B,

5.537%,

11/15/35

...

2,384

a,b

7791405.SQ.FTS.B,

6.16%,

11/15/35

....

6,235

a,b

7794434.SQ.FTS.B,

6.169%,

11/15/35

...

6,526

a,b

7794291.SQ.FTS.B,

6.173%,

11/15/35

...

1,915

a,b

7805584.SQ.FTS.B,

5.536%,

11/19/35

...

750

240

a,b

7808746.SQ.FTS.B,

5.346%,

11/20/35

...

13,544

137

a,b

7812943.SQ.FTS.B,

4.765%,

11/21/35

...

1,044

a,b

7811957.SQ.FTS.B,

6.287%,

11/21/35

...

4,258

a,b

7812879.SQ.FTS.B,

6.48%,

11/21/35

....

2,192

a,b

7816821.SQ.FTS.B,

4.749%,

11/22/35

...

3,477

a,b

7815015.SQ.FTS.B,

5.719%,

11/22/35

...

3,550

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

7813617.SQ.FTS.B,

5.91%,

11/22/35

....

9,140

a,b

7822474.SQ.FTS.B,

4.781%,

11/23/35

...

937

357

a,b

7826745.SQ.FTS.B,

5.094%,

11/24/35

...

2,952

360

a,b

7829173.SQ.FTS.B,

5.912%,

11/24/35

...

5,086

a,b

7830023.SQ.FTS.B,

4.78%,

11/25/35

....

11,398

3,778

a,b

7831708.SQ.FTS.B,

5.535%,

11/27/35

...

2,942

a,b

7835424.SQ.FTS.B,

4.749%,

11/28/35

...

17,516

a,b

7836267.SQ.FTS.B,

6.475%,

11/28/35

...

590

a,b

7840090.SQ.FTS.B,

4.75%,

11/29/35

....

1,654

a,b

7836996.SQ.FTS.B,

5.912%,

11/29/35

...

961

313

a,b

7846633.SQ.FTS.B,

4.75%,

11/30/35

....

5,174

a,b

7848953.SQ.FTS.B,

5.723%,

11/30/35

...

16,191

125

a,b

7851585.SQ.FTS.B,

5.915%,

12/02/35

...

221

a,b

7856432.SQ.FTS.B,

4.776%,

12/03/35

...

2,066

268

a,b

7854215.SQ.FTS.B,

6.167%,

12/03/35

...

1,540

a,b

7858606.SQ.FTS.B,

5.094%,

12/04/35

...

11,300

a,b

7858486.SQ.FTS.B,

5.954%,

12/04/35

...

814

a,b

7869186.SQ.FTS.B,

4.772%,

12/06/35

...

226

a,b

7867381.SQ.FTS.B,

6.163%,

12/06/35

...

10,339

a,b

7869657.SQ.FTS.B,

6.168%,

12/06/35

...

1,298

a,b

7872677.SQ.FTS.B,

5.094%,

12/07/35

...

10,160

108

a,b

7874634.SQ.FTS.B,

5.103%,

12/08/35

...

972

a,b

7874816.SQ.FTS.B,

5.921%,

12/08/35

...

1,135

a,b

7875298.SQ.FTS.B,

6.287%,

12/09/35

...

1,516

188

a,b

7876499.SQ.FTS.B,

4.762%,

12/10/35

...

600

a,b

7883146.SQ.FTS.B,

4.747%,

12/11/35

...

7,837

a,b

7880155.SQ.FTS.B,

6.164%,

12/11/35

...

1,351

a,b

7886840.SQ.FTS.B,

4.747%,

12/12/35

...

511

a,b

7885173.SQ.FTS.B,

5.433%,

12/12/35

...

636

a,b

7886251.SQ.FTS.B,

5.912%,

12/12/35

...

10,832

112

a,b

7885639.SQ.FTS.B,

6.163%,

12/12/35

...

3,984

a,b

7889998.SQ.FTS.B,

4.78%,

12/13/35

....

4,101

a,b

7895307.SQ.FTS.B,

6.289%,

12/14/35

...

20,016

115

a,b

7898689.SQ.FTS.B,

5.346%,

12/15/35

...

7,135

2,778

a,b

7899279.SQ.FTS.B,

6.156%,

12/15/35

...

1,617

a,b

7900211.SQ.FTS.B,

4.745%,

12/16/35

...

1,260

a,b

7901651.SQ.FTS.B,

4.78%,

12/17/35

....

769

320

a,b

7910537.SQ.FTS.B,

5.346%,

12/19/35

...

16,066

183

a,b

7914153.SQ.FTS.B,

5.348%,

12/20/35

...

5,956

a,b

7913994.SQ.FTS.B,

6.177%,

12/20/35

...

1,646

a,b

7915978.SQ.FTS.B,

5.094%,

12/21/35

...

36,680

341

a,b

7919163.SQ.FTS.B,

5.102%,

12/22/35

...

282

a,b

7919471.SQ.FTS.B,

5.912%,

12/22/35

...

5,680

a,b

7923129.SQ.FTS.B,

4.781%,

12/24/35

...

6,985

a,b

7926597.SQ.FTS.B,

5.911%,

12/25/35

...

3,105

a,b

7931961.SQ.FTS.B,

5.439%,

12/26/35

...

3,056

892

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

7929420.SQ.FTS.B,

6.281%,

12/26/35

...

2,513

a,b

7935066.SQ.FTS.B,

4.725%,

12/27/35

...

208

a,b

7935729.SQ.FTS.B,

6.153%,

12/27/35

...

1,923

a,b

7939914.SQ.FTS.B,

5.534%,

12/28/35

...

7,671

106

a,b

7942180.SQ.FTS.B,

4.757%,

12/29/35

...

2,229

a,b

7942057.SQ.FTS.B,

5.904%,

12/29/35

...

3,066

a,b

7944955.SQ.FTS.B,

5.093%,

1/01/36

....

24,782

242

a,b

7950936.SQ.FTS.B,

5.347%,

1/02/36

....

1,955

885

a,b

7951446.SQ.FTS.B,

5.719%,

1/02/36

....

3,188

a,b

7950515.SQ.FTS.B,

5.911%,

1/02/36

....

1,304

a,b

7960559.SQ.FTS.B,

5.912%,

1/05/36

....

a,b

7962505.SQ.FTS.B,

6.163%,

1/05/36

....

20,002

135

a,b

7964764.SQ.FTS.B,

4.759%,

1/07/36

....

1,606

a,b

7968350.SQ.FTS.B,

4.746%,

1/08/36

....

1,919

a,b

7969237.SQ.FTS.B,

5.097%,

1/09/36

....

667

a,b

7970839.SQ.FTS.B,

5.718%,

1/09/36

....

2,510

1,120

a,b

7978500.SQ.FTS.B,

4.766%,

1/11/36

....

771

a,b

7977115.SQ.FTS.B,

5.436%,

1/11/36

....

1,089

a,b

7983953.SQ.FTS.B,

5.723%,

1/12/36

....

5,877

2,717

a,b

7984842.SQ.FTS.B,

4.741%,

1/13/36

....

3,159

a,b

7984169.SQ.FTS.B,

6.164%,

1/13/36

....

24,072

270

a,b

7986712.SQ.FTS.B,

6.165%,

1/15/36

....

1,216

490

a,b

7990281.SQ.FTS.B,

6.165%,

1/16/36

....

9,974

a,b

7993294.SQ.FTS.B,

6.151%,

1/17/36

....

1,119

a,b

8000517.SQ.FTS.B,

6.284%,

1/17/36

....

1,021

a,b

7997671.SQ.FTS.B,

6.289%,

1/17/36

....

580

a,b

8004096.SQ.FTS.B,

6.163%,

1/18/36

....

67,437

529

a,b

8008266.SQ.FTS.B,

4.722%,

1/19/36

....

232

a,b

8008601.SQ.FTS.B,

4.78%,

1/19/36

.....

6,115

a,b

8010295.SQ.FTS.B,

5.911%,

1/20/36

....

13,906

a,b

8010866.SQ.FTS.B,

5.547%,

1/21/36

....

528

a,b

8012825.SQ.FTS.B,

5.906%,

1/22/36

....

779

a,b

8015166.SQ.FTS.B,

6.158%,

1/22/36

....

740

a,b

8016257.SQ.FTS.B,

5.095%,

1/23/36

....

238

109

a,b

8016541.SQ.FTS.B,

6.477%,

1/23/36

....

4,399

a,b

8021419.SQ.FTS.B,

4.759%,

1/24/36

....

1,975

a,b

8021596.SQ.FTS.B,

5.093%,

1/24/36

....

2,023

a,b

8020710.SQ.FTS.B,

6.162%,

1/24/36

....

5,242

a,b

8021730.SQ.FTS.B,

6.478%,

1/24/36

....

10,299

123

a,b

8025995.SQ.FTS.B,

5.422%,

1/25/36

....

943

a,b

8031599.SQ.FTS.B,

5.346%,

1/27/36

....

872

157

a,b

8031473.SQ.FTS.B,

5.445%,

1/27/36

....

3,422

a,b

8040547.SQ.FTS.B,

5.351%,

1/30/36

....

1,219

652

a,b

8037317.SQ.FTS.B,

6.165%,

1/30/36

....

205

a,b

8048220.SQ.FTS.B,

4.78%,

2/01/36

.....

618

a,b

8050429.SQ.FTS.B,

4.78%,

2/01/36

.....

527

282

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

8051888.SQ.FTS.B,

4.744%,

2/02/36

....

1,531

a,b

8052271.SQ.FTS.B,

6.163%,

2/02/36

....

669

a,b

8050565.SQ.FTS.B,

6.164%,

2/02/36

....

6,532

a,b

8056576.SQ.FTS.B,

6.477%,

2/05/36

....

669

a,b

8070315.SQ.FTS.B,

5.902%,

2/08/36

....

121

a,b

8074535.SQ.FTS.B,

4.78%,

2/09/36

.....

17,750

2,666

a,b

8073409.SQ.FTS.B,

6.296%,

2/09/36

....

1,109

a,b

8076636.SQ.FTS.B,

4.776%,

2/10/36

....

547

a,b

8076650.SQ.FTS.B,

5.094%,

2/10/36

....

2,948

1,396

a,b

8083196.SQ.FTS.B,

5.347%,

2/13/36

....

3,791

1,887

a,b

8085032.SQ.FTS.B,

6.48%,

2/14/36

.....

9,808

155

a,b

8097211.SQ.FTS.B,

5.909%,

2/17/36

....

1,063

509

a,b

8098527.SQ.FTS.B,

5.72%,

2/18/36

.....

1,559

220

a,b

8099364.SQ.FTS.B,

5.917%,

2/19/36

....

855

126

a,b

8104579.SQ.FTS.B,

6.474%,

2/20/36

....

2,671

a,b

8113190.SQ.FTS.B,

6.543%,

2/22/36

....

2,143

a,b

8117156.SQ.FTS.B,

6.152%,

2/23/36

....

10,731

5,801

a,b

8119065.SQ.FTS.B,

6.155%,

2/24/36

....

3,355

a,b

8122481.SQ.FTS.B,

4.78%,

2/26/36

.....

12,947

2,245

a,b

8125247.SQ.FTS.B,

4.749%,

2/27/36

....

2,612

a,b

8124817.SQ.FTS.B,

5.644%,

2/27/36

....

1,528

a,b

8137603.SQ.FTS.B,

4.782%,

2/28/36

....

3,443

2,100

a,b

8139332.SQ.FTS.B,

6.318%,

2/28/36

....

107

a,b

8139400.SQ.FTS.B,

6.423%,

2/28/36

....

564

a,b

8155930.SQ.FTS.B,

5.114%,

3/05/36

....

651

368

8158885.SQ.FTS.B,

5.92%,

3/05/36

.....

347

176

a,b

8162440.SQ.FTS.B,

6.421%,

3/07/36

....

6,964

127

a,b

8163826.SQ.FTS.B,

6.4%,

3/08/36

......

676

a,b

8165084.SQ.FTS.B,

5.41%,

3/09/36

.....

11,638

218

a,b

8164934.SQ.FTS.B,

6.159%,

3/09/36

....

802

415

a,b

8165043.SQ.FTS.B,

6.348%,

3/09/36

....

1,227

503

a,b

8177398.SQ.FTS.B,

4.779%,

3/12/36

....

7,486

163

a,b

8178539.SQ.FTS.B,

4.78%,

3/12/36

.....

9,322

178

a,b

8181148.SQ.FTS.B,

5.628%,

3/13/36

....

3,453

491

8180916.SQ.FTS.B,

6.346%,

3/13/36

....

232

120

8185295.SQ.FTS.B,

5.101%,

3/15/36

....

160

102

a,b

8185861.SQ.FTS.B,

6.336%,

3/15/36

....

900

a,b

8187056.SQ.FTS.B,

4.779%,

3/16/36

....

28,286

7,451

8190366.SQ.FTS.B,

5.119%,

3/17/36

....

400

a,b

8193726.SQ.FTS.B,

5.114%,

3/18/36

....

14,703

290

8203270.SQ.FTS.B,

5.413%,

3/20/36

....

1,696

1,103

8205825.SQ.FTS.B,

5.614%,

3/20/36

....

290

160

a,b

8205976.SQ.FTS.B,

5.912%,

3/20/36

....

3,822

986

a,b

8205369.SQ.FTS.B,

6.329%,

3/20/36

....

1,746

a,b

8204610.SQ.FTS.B,

6.682%,

3/20/36

....

2,461

8206989.SQ.FTS.B,

6.551%,

3/21/36

....

1,589

847

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

8209177.SQ.FTS.B,

6.148%,

3/23/36

....

4,860

8213268.SQ.FTS.B,

4.958%,

3/24/36

....

1,115

608

8215602.SQ.FTS.B,

4.784%,

3/25/36

....

535

367

8216882.SQ.FTS.B,

5.66%,

3/25/36

.....

3,816

2,212

a,b

8216590.SQ.FTS.B,

6.314%,

3/25/36

....

1,287

a,b

8221997.SQ.FTS.B,

6.536%,

3/26/36

....

342

8226398.SQ.FTS.B,

5.627%,

3/27/36

....

348

209

8227883.SQ.FTS.B,

5.913%,

3/27/36

....

2,327

1,472

8228042.SQ.FTS.B,

4.779%,

3/28/36

....

8,824

5,097

8237680.SQ.FTS.B,

4.956%,

4/01/36

....

9,120

5,208

a,b

8247535.SQ.FTS.B,

6.552%,

4/03/36

....

1,830

8248806.SQ.FTS.B,

6.675%,

4/03/36

....

8,029

4,532

8250977.SQ.FTS.B,

4.778%,

4/04/36

....

1,943

1,365

8250191.SQ.FTS.B,

6.334%,

4/04/36

....

267

128

a,b

8255354.SQ.FTS.B,

4.958%,

4/07/36

....

655

a,b

8255421.SQ.FTS.B,

5.41%,

4/07/36

.....

7,188

2,437

8277202.SQ.FTS.B,

5.113%,

4/11/36

....

1,713

1,015

8276869.SQ.FTS.B,

5.114%,

4/11/36

....

4,242

2,947

a,b

8283179.SQ.FTS.B,

5.117%,

4/15/36

....

6,353

157

a,b

8281860.SQ.FTS.B,

5.408%,

4/15/36

....

3,357

148

8284751.SQ.FTS.B,

5.63%,

4/15/36

.....

8284791.SQ.FTS.B,

5.66%,

4/15/36

.....

403

242

8283828.SQ.FTS.B,

6.324%,

4/15/36

....

1,079

618

a,b

8287641.SQ.FTS.B,

5.112%,

4/16/36

....

4,543

205

a,b

8287420.SQ.FTS.B,

5.909%,

4/16/36

....

2,138

a,b

8288479.SQ.FTS.B,

6.326%,

4/16/36

....

5,431

a,b

8286845.SQ.FTS.B,

6.411%,

4/16/36

....

1,221

a,b

8287565.SQ.FTS.B,

6.414%,

4/16/36

....

553

345

a,b

8286690.SQ.FTS.B,

6.534%,

4/16/36

....

1,636

8298827.SQ.FTS.B,

5.41%,

4/19/36

.....

3,744

2,682

8299881.SQ.FTS.B,

4.782%,

4/20/36

....

1,524

1,135

8304334.SQ.FTS.B,

5.409%,

4/21/36

....

2,178

1,315

a,b

8301755.SQ.FTS.B,

6.326%,

4/21/36

....

4,584

a,b

8304151.SQ.FTS.B,

6.673%,

4/21/36

....

2,265

a,b

8304649.SQ.FTS.B,

6.325%,

4/22/36

....

2,215

8308031.SQ.FTS.B,

4.776%,

4/23/36

....

406

305

8318235.SQ.FTS.B,

5.646%,

4/25/36

....

1,382

766

a,b

8319657.SQ.FTS.B,

5.66%,

4/25/36

.....

16,364

8,055

8322385.SQ.FTS.B,

4.78%,

4/27/36

.....

1,082

803

a,b

8322107.SQ.FTS.B,

6.54%,

4/27/36

.....

1,115

485

8329865.SQ.FTS.B,

5.114%,

4/29/36

....

1,179

899

8327713.SQ.FTS.B,

5.413%,

4/29/36

....

782

594

8333158.SQ.FTS.B,

5.115%,

4/30/36

....

418

297

8334093.SQ.FTS.B,

5.635%,

4/30/36

....

2,627

1,518

a,b

8339247.SQ.FTS.B,

6.673%,

4/30/36

....

8,515

149

8340531.SQ.FTS.B,

5.409%,

5/01/36

....

21,358

12,388

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Block,

Inc.

(continued)

a,b

8344345.SQ.FTS.B,

6.329%,

5/02/36

....

2,204

1,302

8344398.SQ.FTS.B,

6.359%,

5/02/36

....

109

a,b

8345584.SQ.FTS.B,

6.415%,

5/03/36

....

1,848

a,b

8348402.SQ.FTS.B,

4.952%,

5/04/36

....

328

197

8347538.SQ.FTS.B,

5.115%,

5/04/36

....

1,605

965

a,b

8347967.SQ.FTS.B,

5.117%,

5/04/36

....

2,187

1,523

8348640.SQ.FTS.B,

5.66%,

5/04/36

.....

675

506

a,b

8349157.SQ.FTS.B,

6.327%,

5/04/36

....

5,772

114

8352758.SQ.FTS.B,

4.78%,

5/05/36

.....

44,359

32,601

8351752.SQ.FTS.B,

6.422%,

5/05/36

....

4,250

2,009

8362642.SQ.FTS.B,

5.113%,

5/07/36

....

4,698

2,537

8360828.SQ.FTS.B,

5.66%,

5/07/36

.....

8,464

4,997

8361678.SQ.FTS.B,

6.141%,

5/07/36

....

234

142

a,b

8367859.SQ.FTS.B,

4.78%,

5/08/36

.....

2,964

146

8367817.SQ.FTS.B,

4.954%,

5/08/36

....

1,251

582

a,b

8368633.SQ.FTS.B,

5.675%,

5/09/36

....

512

260

a,b

8370594.SQ.FTS.B,

5.615%,

5/11/36

....

252

120

8370406.SQ.FTS.B,

6.154%,

5/11/36

....

135

a,b

8370392.SQ.FTS.B,

6.301%,

5/11/36

....

311

a,b

8370612.SQ.FTS.B,

6.42%,

5/11/36

.....

4,659

a,b

8373458.SQ.FTS.B,

5.912%,

5/12/36

....

2,677

1,747

a,b

8373052.SQ.FTS.B,

6.141%,

5/12/36

....

2,470

8372657.SQ.FTS.B,

6.154%,

5/12/36

....

4,702

2,788

a,b

8373371.SQ.FTS.B,

6.321%,

5/12/36

....

3,913

100

8374700.SQ.FTS.B,

6.424%,

5/12/36

....

3,675

2,161

a,b

8376661.SQ.FTS.B,

4.956%,

5/13/36

....

1,560

a,b

8376230.SQ.FTS.B,

5.66%,

5/13/36

.....

4,232

a,b

8381919.SQ.FTS.B,

4.965%,

5/14/36

....

1,506

8383275.SQ.FTS.B,

5.404%,

5/14/36

....

938

723

a,b

8382098.SQ.FTS.B,

6.149%,

5/14/36

....

8,174

229

a,b

8383353.SQ.FTS.B,

6.15%,

5/14/36

.....

37,881

1,009

a,b

8382493.SQ.FTS.B,

6.55%,

5/14/36

.....

10,128

144

8385298.SQ.FTS.B,

5.66%,

5/15/36

.....

208

174

8387911.SQ.FTS.B,

4.781%,

5/16/36

....

2,323

1,181

8388466.SQ.FTS.B,

5.125%,

5/16/36

....

624

388

8388312.SQ.FTS.B,

5.427%,

5/16/36

....

618

434

a,b

8392372.SQ.FTS.B,

4.78%,

5/18/36

.....

3,862

195

a,b

8391986.SQ.FTS.B,

5.112%,

5/18/36

....

5,055

242

8390042.SQ.FTS.B,

5.66%,

5/18/36

.....

916

482

8390639.SQ.FTS.B,

6.427%,

5/18/36

....

a,b

8396180.SQ.FTS.B,

4.959%,

5/19/36

....

1,271

a,b

8395941.SQ.FTS.B,

6.146%,

5/19/36

....

2,108

1,099

8396223.SQ.FTS.B,

6.152%,

5/19/36

....

3,884

2,151

a,b

8398764.SQ.FTS.B,

5.66%,

5/20/36

.....

21,029

572

8406914.SQ.FTS.B,

6.547%,

5/21/36

....

4,280

2,722

8412573.SQ.FTS.B,

4.784%,

5/22/36

....

3,263

2,213

Description

Principal

Amount

Value

Block,

Inc.

(continued)

a,b

8408339.SQ.FTS.B,

6.551%,

5/22/36

....

5,451

8414495.SQ.FTS.B,

4.781%,

5/24/36

....

2,543

1,971

a,b

8418827.SQ.FTS.B,

5.409%,

5/25/36

....

63,980

1,305

8422169.SQ.FTS.B,

5.663%,

5/26/36

....

4,809

3,358

8424605.SQ.FTS.B,

5.911%,

5/26/36

....

3,964

2,424

8423665.SQ.FTS.B,

6.152%,

5/26/36

....

3,025

2,455

8431678.SQ.FTS.B,

6.153%,

5/28/36

....

991

710

a,b

8435782.SQ.FTS.B,

4.943%,

5/29/36

....

1,958

8436467.SQ.FTS.B,

4.962%,

5/29/36

....

783

446

a,b

8435257.SQ.FTS.B,

5.917%,

5/29/36

....

1,285

615,067

Freedom

Financial

Asset

Management

LLC

APP-15053612.FP.FTS.B,

13.99%,

7/26/26

515

517

APP-15053337.FP.FTS.B,

17.99%,

7/26/26

841

855

APP-16719236.FP.FTS.B,

10.49%,

9/04/26

1,801

1,809

APP-16630984.FP.FTS.B,

14.49%,

9/12/26

1,714

1,727

APP-16335651.FP.FTS.B,

14.49%,

9/15/26

1,959

1,971

APP-17464221.FP.FTS.B,

16.74%,

9/15/26

1,169

1,182

APP-16710569.FP.FTS.B,

15.49%,

9/16/26

2,922

2,941

APP-17279512.FP.FTS.B,

16.74%,

9/22/26

1,754

1,785

APP-16676602.FP.FTS.B,

11.24%,

11/05/26

1,440

1,442

APP-11381442.FP.FTS.B,

20.49%,

11/26/26

4,117

4,235

APP-11579549.FP.FTS.B,

13.49%,

12/15/26

..........................

5,002

5,028

APP-11022370.FP.FTS.B,

16.49%,

12/20/26

..........................

1,411

1,422

APP-11740523.FP.FTS.B,

10.99%,

12/21/26

..........................

4,097

4,133

APP-11723942.FP.FTS.B,

19.49%,

12/21/26

..........................

10,986

11,340

APP-12116526.FP.FTS.B,

18.99%,

1/05/27

2,908

2,961

APP-11410185.FP.FTS.B,

22.49%,

1/10/27

6,718

6,948

APP-12032875.FP.FTS.B,

11.24%,

1/16/27

4,648

4,695

APP-11694985.FP.FTS.B,

12.99%,

1/21/27

3,002

3,036

APP-12169743.FP.FTS.B,

24.24%,

1/22/27

6,973

7,245

APP-12186510.FP.FTS.B,

9.74%,

1/23/27

7,297

7,364

APP-11595106.FP.FTS.B,

13.49%,

1/26/27

2,519

2,547

APP-11595260.FP.FTS.B,

18.99%,

1/30/27

796

803

APP-11709701.FP.FTS.B,

16.49%,

2/04/27

2,636

2,659

APP-11725393.FP.FTS.B,

17.99%,

2/04/27

11,267

11,522

APP-11694359.FP.FTS.B,

19.99%,

2/04/27

141

140

APP-11660434.FP.FTS.B,

20.49%,

2/04/27

7,372

7,634

APP-11694079.FP.FTS.B,

10.99%,

2/05/27

4,130

4,162

APP-11722179.FP.FTS.B,

11.99%,

2/05/27

5,541

5,587

APP-11742867.FP.FTS.B,

23.24%,

2/05/27

5,087

5,265

APP-12337990.FP.FTS.B,

16.49%,

2/07/27

1,831

1,848

APP-11738196.FP.FTS.B,

21.99%,

2/15/27

2,861

2,950

APP-12029572.FP.FTS.B,

16.99%,

2/24/27

1,207

1,217

APP-12050224.FP.FTS.B,

11.74%,

3/01/27

9,017

9,087

APP-12168636.FP.FTS.B,

13.24%,

3/01/27

4,318

4,356

APP-12158633.FP.FTS.B,

23.24%,

3/02/27

5,367

5,540

APP-12050159.FP.FTS.B,

13.24%,

3/07/27

7,592

7,672

APP-12105970.FP.FTS.B,

10.99%,

3/08/27

4,763

4,805

APP-12155604.FP.FTS.B,

11.24%,

3/08/27

1,389

1,392

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Freedom

Financial

Asset

Management

LLC

(continued)

APP-12106008.FP.FTS.B,

13.49%,

3/08/27

3,553

3,591

APP-12432804.FP.FTS.B,

13.24%,

3/09/27

7,909

7,986

APP-11508449.FP.FTS.B,

8.49%,

3/10/27

6,142

6,194

APP-12203395.FP.FTS.B,

22.49%,

3/10/27

3,750

1,412

APP-12210087.FP.FTS.B,

18.74%,

3/11/27

11,317

11,601

APP-12071137.FP.FTS.B,

19.99%,

3/11/27

7,040

7,253

APP-12460903.FP.FTS.B,

10.99%,

3/15/27

8,368

8,446

APP-12467297.FP.FTS.B,

13.24%,

3/15/27

6,798

6,876

APP-12418630.FP.FTS.B,

17.99%,

3/18/27

4,877

5,018

APP-12463831.FP.FTS.B,

19.99%,

3/18/27

2,189

2,245

APP-12380981.FP.FTS.B,

13.74%,

3/20/27

2,084

2,103

APP-12230901.FP.FTS.B,

20.24%,

3/20/27

11,183

11,524

APP-12424835.FP.FTS.B,

23.99%,

3/20/27

9,053

9,452

APP-12459776.FP.FTS.B,

10.99%,

3/21/27

7,178

7,253

APP-12287335.FP.FTS.B,

13.24%,

3/21/27

5,222

5,292

APP-12270745.FP.FTS.B,

17.74%,

3/23/27

7,597

7,816

APP-12429877.FP.FTS.B,

19.74%,

3/23/27

8,621

8,922

APP-12107351.FP.FTS.B,

16.49%,

3/24/27

5,829

6,016

APP-12468743.FP.FTS.B,

18.24%,

3/24/27

793

795

APP-11397497.FP.FTS.B,

11.99%,

4/19/27

6,131

6,204

APP-12033253.FP.FTS.B,

17.99%,

4/24/27

4,091

4,261

APP-12133804.FP.FTS.B,

10.99%,

4/30/27

5,989

6,051

APP-12097459.FP.FTS.B,

13.24%,

5/08/27

6,658

6,737

APP-12345892.FP.FTS.B,

13.49%,

5/22/27

2,986

3,017

APP-12468566.FP.FTS.B,

19.74%,

6/25/27

13,331

13,910

APP-15007182.FP.FTS.B,

16.99%,

7/11/27

3,584

3,637

APP-15105817.FP.FTS.B,

11.74%,

7/15/27

6,356

6,427

APP-16662334.FP.FTS.B,

15.24%,

7/26/27

8,338

8,458

APP-15116487.FP.FTS.B,

21.49%,

7/28/27

6,075

6,364

APP-16465567.FP.FTS.B,

15.49%,

7/30/27

5,165

5,247

APP-16640475.FP.FTS.B,

12.74%,

8/02/27

5,926

5,988

APP-12159801.FP.FTS.B,

16.99%,

8/15/27

8,933

9,203

APP-15106325.FP.FTS.B,

23.24%,

8/28/27

539

541

APP-16632155.FP.FTS.B,

11.49%,

9/01/27

5,681

5,741

APP-16448250.FP.FTS.B,

13.49%,

9/01/27

2,345

2,374

APP-16676570.FP.FTS.B,

15.24%,

9/01/27

7,132

7,303

APP-12175594.FP.FTS.B,

18.99%,

9/01/27

2,016

2,034

APP-16852920.FP.FTS.B,

10.99%,

9/04/27

12,540

12,679

APP-16640455.FP.FTS.B,

10.99%,

9/05/27

7,274

7,353

APP-15052242.FP.FTS.B,

11.74%,

9/13/27

16,801

17,088

APP-17458875.FP.FTS.B,

16.49%,

9/13/27

1,749

1,769

APP-16687847.FP.FTS.B,

9.49%,

9/15/27

6,388

6,470

APP-17490395.FP.FTS.B,

15.24%,

9/26/27

11,640

11,832

APP-17504832.FP.FTS.B,

13.74%,

9/27/27

1,818

1,826

APP-12176796.FP.FTS.B,

8.99%,

10/25/27

3,415

3,438

APP-16627732.FP.FTS.B,

12.99%,

10/25/27

..........................

9,998

10,158

APP-16800634.FP.FTS.B,

15.99%,

10/28/27

..........................

22,740

2,805

APP-11872544.FP.FTS.B,

19.99%,

11/25/27

1,828

1,867

APP-12199831.FP.FTS.B,

16.99%,

5/22/36

682

688

453,087

LendingClub

Corp.

LCX

162966512.LC.FTS.B,

11.02%,

4/12/35

...

1,591

–

Description

Principal

Amount

Value

LendingClub

Corp.

LCX

172665217.LC.FTS.B,

15.4%,

12/04/35

...

531

Prosper

Funding

LLC

1592846.PS.FTS.B,

15.9%,

7/23/26

.....

575

581

1599440.PS.FTS.B,

26.4%,

8/05/26

.....

275

278

1600466.PS.FTS.B,

18.73%,

8/06/26

....

1,499

1,509

1603759.PS.FTS.B,

20.59%,

8/06/26

....

1,036

1,042

1611384.PS.FTS.B,

13.88%,

8/09/26

....

906

905

1611810.PS.FTS.B,

13%,

8/10/26

.......

223

222

1606042.PS.FTS.B,

14.74%,

8/10/26

....

2,574

1,821

1611807.PS.FTS.B,

19.33%,

8/10/26

....

1,545

1,558

1612149.PS.FTS.B,

20.7%,

8/10/26

.....

660

667

1612140.PS.FTS.B,

23.74%,

8/10/26

....

715

721

1603532.PS.FTS.B,

20.5%,

8/12/26

.....

1,156

1,168

1611322.PS.FTS.B,

12.5%,

8/19/26

.....

3,081

3,084

1618149.PS.FTS.B,

13.7%,

8/19/26

.....

878

879

1615738.PS.FTS.B,

13.3%,

8/27/26

.....

358

359

1611798.PS.FTS.B,

25.74%,

9/01/26

....

1,719

1,751

1625300.PS.FTS.B,

11.79%,

9/23/26

....

752

755

1631647.PS.FTS.B,

12.7%,

9/28/26

.....

1,786

1,793

1638105.PS.FTS.B,

13.4%,

9/28/26

.....

861

865

1648282.PS.FTS.B,

14%,

10/26/26

......

2,016

2,047

1645223.PS.FTS.B,

10.5%,

10/27/26

....

1,127

1,131

1648588.PS.FTS.B,

14.39%,

10/27/26

...

2,031

2,063

1646309.PS.FTS.B,

9.62%,

10/28/26

....

2,219

2,227

1646072.PS.FTS.B,

28.23%,

10/28/26

...

1,987

2,045

1646819.PS.FTS.B,

11.2%,

10/29/26

....

590

598

1650901.PS.FTS.B,

11.2%,

10/29/26

....

2,285

2,316

1489833.PS.FTS.B,

16.99%,

10/30/26

...

1,375

1,383

1649809.PS.FTS.B,

11.1%,

10/31/26

....

1,272

1,276

1656183.PS.FTS.B,

14.38%,

10/31/26

...

1,190

1,194

1650023.PS.FTS.B,

14.79%,

11/04/26

....

1,735

1,737

1649791.PS.FTS.B,

15.1%,

11/05/26

....

4,017

4,085

1651754.PS.FTS.B,

10.5%,

11/08/26

....

2,905

1658080.PS.FTS.B,

14.63%,

11/08/26

....

2,006

2,024

1666449.PS.FTS.B,

14.6%,

11/09/26

....

1,807

1,830

1658839.PS.FTS.B,

14.68%,

11/09/26

....

2,361

2,362

1658842.PS.FTS.B,

17%,

11/09/26

......

2,088

2,113

1667757.PS.FTS.B,

18.25%,

11/12/26

....

2,185

2,219

1661797.PS.FTS.B,

21%,

11/15/26

......

437

450

1664327.PS.FTS.B,

13.5%,

11/30/26

....

813

830

1687146.PS.FTS.B,

11.43%,

12/16/26

....

2,022

2,023

1680241.PS.FTS.B,

14.38%,

12/16/26

...

4,445

4,453

1680301.PS.FTS.B,

18.5%,

12/16/26

....

960

975

1675265.PS.FTS.B,

10.5%,

12/20/26

....

3,805

3,811

1688964.PS.FTS.B,

13.93%,

12/21/26

...

4,186

–

1689036.PS.FTS.B,

14.6%,

12/21/26

....

3,783

3,840

1676819.PS.FTS.B,

14.68%,

12/22/26

...

6,409

5,680

1680116.PS.FTS.B,

14%,

12/29/26

......

5,340

5,497

1690116.PS.FTS.B,

23.11%,

12/31/26

....

3,542

3,665

1694572.PS.FTS.B,

11.6%,

1/13/27

.....

4,119

4,124

1694593.PS.FTS.B,

23.4%,

1/13/27

.....

5,579

–

1702152.PS.FTS.B,

12.87%,

1/14/27

....

1,161

1,162

1688534.PS.FTS.B,

12.9%,

1/16/27

.....

761

759

1704984.PS.FTS.B,

10.29%,

1/19/27

....

2,397

2,403

1698709.PS.FTS.B,

15.2%,

1/20/27

.....

3,026

3,074

1674146.PS.FTS.B,

18.78%,

1/20/27

....

2,417

2,458

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Prosper

Funding

LLC

(continued)

1721439.PS.FTS.B,

12%,

2/15/27

.......

566

1708901.PS.FTS.B,

18.33%,

2/15/27

....

4,689

4,778

1720974.PS.FTS.B,

18.4%,

2/15/27

.....

4,657

4,735

1709498.PS.FTS.B,

25.9%,

2/16/27

.....

2,641

2,666

1708466.PS.FTS.B,

18.6%,

2/22/27

.....

1,544

1,569

1709507.PS.FTS.B,

13.5%,

3/15/27

.....

929

932

1749006.PS.FTS.B,

19.53%,

3/31/27

....

3,134

3,163

1749429.PS.FTS.B,

25.9%,

4/01/27

.....

1,895

1,944

1603750.PS.FTS.B,

15.9%,

5/20/27

.....

3,120

417

1722171.PS.FTS.B,

18.78%,

6/14/27

....

2,574

1,372

1682455.PS.FTS.B,

11.43%,

11/21/27

....

16,126

992

1739157.PS.FTS.B,

11.5%,

12/18/27

....

12,327

6,872

1708907.PS.FTS.B,

18.13%,

2/20/28

....

9,391

9,278

1689368.PS.FTS.B,

16.2%,

1/14/35

.....

354

–

140,001

Upgrade,

Inc.

Card

991762816.UG.FTS.B,

29.49%,

6/20/26

991545568.UG.FTS.B,

29.49%,

8/16/26

477

498

991721350.UG.FTS.B,

29.49%,

8/16/26

516

468

991573331.UG.FTS.B,

29.49%,

9/17/26

991658250.UG.FTS.B,

16.99%,

1/20/27

100

101

991645022.UG.FTS.B,

29.49%,

1/21/27

991721939.UG.FTS.B,

16.99%,

2/02/27

325

334

991894965.UG.FTS.B,

16.99%,

2/03/27

1,363

1,397

991579043.UG.FTS.B,

19.99%,

4/17/27

1,291

1,032

991663324.UG.FTS.B,

22.36%,

5/29/27

991727635.UG.FTS.B,

28.98%,

6/07/27

173

–

991579317.UG.FTS.B,

29.49%,

6/16/27

991693097.UG.FTS.B,

26.94%,

9/20/27

317

991716805.UG.FTS.B,

22.97%,

11/08/27

285

291

991664785.UG.FTS.B,

18.98%,

12/26/27

161

111

991735384.UG.FTS.B,

29.49%,

6/06/29

360

373

991587677.UG.FTS.B,

29.49%,

1/17/30

438

464

991719643.UG.FTS.B,

29.49%,

8/22/30

150

991883200.UG.FTS.B,

29.49%,

1/07/31

991758368.UG.FTS.B,

29.49%,

1/20/31

991754815.UG.FTS.B,

29.49%,

2/24/31

991695320.UG.FTS.B,

29.49%,

3/05/31

–

5,479

Upstart

Network,

Inc.

L1711804.UP.FTS.B,

9.08%,

9/14/26

.....

1,015

1,000

L1709773.UP.FTS.B,

9.1%,

9/14/26

.....

L1710250.UP.FTS.B,

9.72%,

9/14/26

....

823

812

L1711112.UP.FTS.B,

12.03%,

9/14/26

....

573

567

L1711626.UP.FTS.B,

13.98%,

9/14/26

....

2,242

2,213

L1707201.UP.FTS.B,

16.24%,

9/14/26

....

1,757

1,737

L1711610.UP.FTS.B,

17.32%,

9/14/26

....

2,981

2,940

L1708807.UP.FTS.B,

17.72%,

9/14/26

....

1,202

1,189

L1710981.UP.FTS.B,

17.81%,

9/14/26

....

1,300

1,282

L1709643.UP.FTS.B,

20.04%,

9/14/26

....

499

493

L1708429.UP.FTS.B,

20.63%,

9/14/26

....

381

375

L1709924.UP.FTS.B,

24.74%,

9/14/26

....

420

L1710379.UP.FTS.B,

24.83%,

9/14/26

....

L1710592.UP.FTS.B,

25.03%,

9/14/26

....

212

182

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1712014.UP.FTS.B,

25.46%,

9/14/26

....

236

232

L1710375.UP.FTS.B,

25.49%,

9/14/26

....

272

268

L1711582.UP.FTS.B,

25.87%,

9/14/26

....

4,270

4,207

L1709668.UP.FTS.B,

25.91%,

9/14/26

....

209

206

FW1708283.UP.FTS.B,

30.95%,

9/14/26

698

605

FW1709045.UP.FTS.B,

31.04%,

9/14/26

686

146

FW1709237.UP.FTS.B,

31.24%,

9/14/26

760

749

FW1712567.UP.FTS.B,

31.44%,

9/14/26

447

441

L1709686.UP.FTS.B,

14.5%,

9/16/26

....

2,280

2,250

FW1711817.UP.FTS.B,

20.95%,

9/20/26

617

608

L1873953.UP.FTS.B,

6.89%,

10/18/26

....

9,434

796

L1873001.UP.FTS.B,

11.14%,

10/18/26

...

1,123

942

L1872155.UP.FTS.B,

11.36%,

10/18/26

...

169

167

L1873842.UP.FTS.B,

11.7%,

10/18/26

....

2,149

2,120

L1873090.UP.FTS.B,

11.9%,

10/18/26

....

193

191

FW1873975.UP.FTS.B,

13.55%,

10/18/26

863

852

L1874369.UP.FTS.B,

14.32%,

10/18/26

...

1,088

1,076

FW1874328.UP.FTS.B,

14.8%,

10/18/26

1,363

1,348

L1860167.UP.FTS.B,

14.86%,

10/18/26

...

269

224

L1873835.UP.FTS.B,

15.93%,

10/18/26

...

1,407

1,228

L1872814.UP.FTS.B,

16.38%,

10/18/26

...

1,897

1,877

L1873320.UP.FTS.B,

16.64%,

10/18/26

...

282

279

L1873707.UP.FTS.B,

17.21%,

10/18/26

...

913

903

FW1869707.UP.FTS.B,

17.52%,

10/18/26

2,150

2,123

L1874163.UP.FTS.B,

17.64%,

10/18/26

...

975

962

L1873356.UP.FTS.B,

19.63%,

10/18/26

...

211

208

L1872983.UP.FTS.B,

19.88%,

10/18/26

...

548

514

FW1873856.UP.FTS.B,

20.15%,

10/18/26

904

893

L1873825.UP.FTS.B,

20.43%,

10/18/26

...

7,565

7,460

L1873221.UP.FTS.B,

20.79%,

10/18/26

...

307

303

L1873820.UP.FTS.B,

21.93%,

10/18/26

...

426

420

L1874034.UP.FTS.B,

22.67%,

10/18/26

...

283

280

L1873180.UP.FTS.B,

24.02%,

10/18/26

...

161

159

L1873408.UP.FTS.B,

24.34%,

10/18/26

...

487

481

L1870381.UP.FTS.B,

24.72%,

10/18/26

...

1,009

995

L1868887.UP.FTS.B,

24.97%,

10/18/26

...

2,779

1,140

L1872784.UP.FTS.B,

25.04%,

10/18/26

...

1,073

1,058

L1873304.UP.FTS.B,

25.15%,

10/18/26

...

174

172

FW1873077.UP.FTS.B,

25.29%,

10/18/26

494

488

L1872764.UP.FTS.B,

25.4%,

10/18/26

....

248

245

L1874416.UP.FTS.B,

25.46%,

10/18/26

...

4,047

3,993

L1874151.UP.FTS.B,

25.48%,

10/18/26

...

181

179

L1870887.UP.FTS.B,

26.18%,

10/18/26

...

284

281

FW1874429.UP.FTS.B,

27.19%,

10/18/26

650

641

FW1873344.UP.FTS.B,

27.72%,

10/18/26

2,403

2,372

FW1872622.UP.FTS.B,

28.59%,

10/18/26

553

546

FW1874208.UP.FTS.B,

29.47%,

10/18/26

619

611

FW1873268.UP.FTS.B,

30.52%,

10/18/26

324

320

FW1872558.UP.FTS.B,

30.55%,

10/18/26

234

231

FW1874112.UP.FTS.B,

31.18%,

10/18/26

895

883

L1874280.UP.FTS.B,

15.62%,

11/01/26

...

4,694

4,645

L2010047.UP.FTS.B,

7.23%,

11/09/26

....

1,343

1,321

L1982018.UP.FTS.B,

9.85%,

11/09/26

....

716

704

L2008329.UP.FTS.B,

10.3%,

11/09/26

....

867

853

L2009188.UP.FTS.B,

10.68%,

11/09/26

...

3,071

3,028

L2009665.UP.FTS.B,

10.88%,

11/09/26

...

1,242

1,223

L2006518.UP.FTS.B,

11.38%,

11/09/26

...

394

388

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2005066.UP.FTS.B,

12.51%,

11/09/26

...

2,293

2,259

FW2004957.UP.FTS.B,

13.66%,

11/09/26

385

380

L2006397.UP.FTS.B,

13.66%,

11/09/26

...

1,545

1,522

L2008524.UP.FTS.B,

14.03%,

11/09/26

...

2,988

2,944

L2009234.UP.FTS.B,

14.43%,

11/09/26

...

1,091

1,077

L2008618.UP.FTS.B,

14.73%,

11/09/26

...

943

929

L2009287.UP.FTS.B,

14.91%,

11/09/26

...

915

902

L2008691.UP.FTS.B,

15.38%,

11/09/26

...

740

730

L2008772.UP.FTS.B,

15.55%,

11/09/26

...

1,596

1,576

L2009243.UP.FTS.B,

15.94%,

11/09/26

...

1,609

1,589

FW2010280.UP.FTS.B,

16.52%,

11/09/26

2,603

2,571

FW2009372.UP.FTS.B,

16.77%,

11/09/26

2,448

2,418

L2008272.UP.FTS.B,

17.06%,

11/09/26

...

3,282

3,241

L2006918.UP.FTS.B,

18.03%,

11/09/26

...

5,207

5,126

FW2005908.UP.FTS.B,

18.71%,

11/09/26

760

749

FW2009511.UP.FTS.B,

18.82%,

11/09/26

1,010

994

L2007966.UP.FTS.B,

18.98%,

11/09/26

...

340

334

L2007377.UP.FTS.B,

19.06%,

11/09/26

...

2,883

2,847

L2007099.UP.FTS.B,

20.26%,

11/09/26

...

5,547

5,450

L2008551.UP.FTS.B,

20.27%,

11/09/26

...

3,780

3,713

FW2004995.UP.FTS.B,

21%,

11/09/26

...

1,021

1,005

FW2006513.UP.FTS.B,

21.09%,

11/09/26

288

283

L2006375.UP.FTS.B,

21.38%,

11/09/26

...

316

311

FW2009886.UP.FTS.B,

22.16%,

11/09/26

722

711

L2009468.UP.FTS.B,

22.18%,

11/09/26

...

2,331

2,291

L2009034.UP.FTS.B,

22.22%,

11/09/26

...

473

464

L2007056.UP.FTS.B,

24.37%,

11/09/26

...

475

467

FW2006718.UP.FTS.B,

24.97%,

11/09/26

946

930

L2007001.UP.FTS.B,

25.04%,

11/09/26

...

283

278

L2009837.UP.FTS.B,

25.1%,

11/09/26

....

286

281

L2005357.UP.FTS.B,

25.2%,

11/09/26

....

944

928

L2006252.UP.FTS.B,

25.33%,

11/09/26

...

399

392

L2007046.UP.FTS.B,

25.34%,

11/09/26

...

341

336

FW2009941.UP.FTS.B,

25.35%,

11/09/26

1,499

1,473

L2009460.UP.FTS.B,

25.35%,

11/09/26

...

586

577

L2007026.UP.FTS.B,

25.44%,

11/09/26

...

342

336

L1976857.UP.FTS.B,

25.45%,

11/09/26

...

1,516

1,491

L2008185.UP.FTS.B,

25.45%,

11/09/26

...

767

754

FW2007576.UP.FTS.B,

26.1%,

11/09/26

969

952

L2009167.UP.FTS.B,

26.14%,

11/09/26

...

1,918

1,885

FW2006658.UP.FTS.B,

26.38%,

11/09/26

1,155

1,137

FW2008080.UP.FTS.B,

27.3%,

11/09/26

293

288

FW2009450.UP.FTS.B,

27.39%,

11/09/26

1,516

1,490

FW2005859.UP.FTS.B,

28.42%,

11/09/26

2,752

2,706

FW2005194.UP.FTS.B,

29.14%,

11/09/26

1,306

1,285

FW2005025.UP.FTS.B,

31.15%,

11/09/26

1,558

1,532

FW2008400.UP.FTS.B,

31.31%,

11/09/26

704

695

FW2009323.UP.FTS.B,

31.47%,

11/09/26

1,265

1,244

FW2009221.UP.FTS.B,

30.79%,

11/12/26

3,104

2,344

L2005604.UP.FTS.B,

7.24%,

11/15/26

....

3,725

2,985

L2009697.UP.FTS.B,

20.69%,

11/15/26

...

890

876

L2077278.UP.FTS.B,

10.24%,

11/19/26

...

237

234

L2079683.UP.FTS.B,

10.46%,

11/19/26

...

616

607

L2077229.UP.FTS.B,

11.22%,

11/19/26

...

2,940

2,900

L2079790.UP.FTS.B,

11.54%,

11/19/26

...

1,271

1,253

L2069545.UP.FTS.B,

12.88%,

11/19/26

...

911

899

L2080759.UP.FTS.B,

14.39%,

11/19/26

...

2,192

2,163

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2077934.UP.FTS.B,

15.05%,

11/19/26

...

1,187

1,171

L2077136.UP.FTS.B,

16.73%,

11/19/26

...

2,286

420

FW2080998.UP.FTS.B,

16.87%,

11/19/26

117

116

FW2078513.UP.FTS.B,

16.88%,

11/19/26

2,947

2,918

L2079147.UP.FTS.B,

16.93%,

11/19/26

...

2,655

2,629

L2073789.UP.FTS.B,

17.39%,

11/19/26

...

654

242

L2079089.UP.FTS.B,

19.11%,

11/19/26

...

1,001

991

L2079136.UP.FTS.B,

19.7%,

11/19/26

....

2,838

2,801

FW2076082.UP.FTS.B,

20.04%,

11/19/26

2,431

2,401

L2077767.UP.FTS.B,

20.73%,

11/19/26

...

1,752

1,729

FW2080860.UP.FTS.B,

21.93%,

11/19/26

3,142

3,100

L2080597.UP.FTS.B,

22.59%,

11/19/26

...

398

393

L2079001.UP.FTS.B,

24.08%,

11/19/26

...

1,399

1,380

FW2076263.UP.FTS.B,

24.18%,

11/19/26

944

FW2080275.UP.FTS.B,

26.15%,

11/19/26

670

662

L2075827.UP.FTS.B,

27%,

11/19/26

.....

1,808

1,786

L2078364.UP.FTS.B,

15.16%,

11/20/26

...

954

944

FW2009687.UP.FTS.B,

29.61%,

11/21/26

1,038

1,021

L2008677.UP.FTS.B,

10.77%,

11/23/26

...

1,466

1,444

L2010117.UP.FTS.B,

24.96%,

11/23/26

...

764

751

FW2007433.UP.FTS.B,

21.02%,

11/24/26

1,305

1,283

L2079956.UP.FTS.B,

14.89%,

12/01/26

...

1,268

1,255

FW2080677.UP.FTS.B,

18.72%,

12/04/26

3,678

2,601

L2196810.UP.FTS.B,

7.42%,

12/07/26

....

934

917

L2198501.UP.FTS.B,

8.94%,

12/07/26

....

640

629

L2195995.UP.FTS.B,

9.12%,

12/07/26

....

692

680

L2197856.UP.FTS.B,

11.23%,

12/07/26

...

906

892

FW2199260.UP.FTS.B,

12.51%,

12/07/26

4,204

4,138

L2200250.UP.FTS.B,

13.28%,

12/07/26

...

872

858

L2197658.UP.FTS.B,

13.72%,

12/07/26

...

895

655

FW2198593.UP.FTS.B,

14.12%,

12/07/26

1,695

122

L2199997.UP.FTS.B,

14.15%,

12/07/26

...

655

644

L2198350.UP.FTS.B,

15.19%,

12/07/26

...

139

137

L2199879.UP.FTS.B,

16.31%,

12/07/26

...

2,346

961

L2198446.UP.FTS.B,

16.58%,

12/07/26

...

8,555

8,443

L2198345.UP.FTS.B,

17.18%,

12/07/26

...

5,774

1,153

L2198376.UP.FTS.B,

17.42%,

12/07/26

...

4,226

4,154

L2199726.UP.FTS.B,

18.1%,

12/07/26

....

1,141

1,126

L2196412.UP.FTS.B,

18.83%,

12/07/26

...

346

342

L2199248.UP.FTS.B,

19.04%,

12/07/26

...

2,961

2,922

L2199129.UP.FTS.B,

20.12%,

12/07/26

...

434

428

L2197655.UP.FTS.B,

20.75%,

12/07/26

...

999

980

L2196680.UP.FTS.B,

21.47%,

12/07/26

...

1,199

1,179

L2199874.UP.FTS.B,

22.34%,

12/07/26

...

1,683

1,651

L2192706.UP.FTS.B,

22.47%,

12/07/26

...

2,043

2,006

FW2196522.UP.FTS.B,

23.26%,

12/07/26

761

L2200210.UP.FTS.B,

24.56%,

12/07/26

...

6,477

461

L2198546.UP.FTS.B,

25.32%,

12/07/26

...

322

317

L2197183.UP.FTS.B,

25.46%,

12/07/26

...

367

361

L2197844.UP.FTS.B,

25.47%,

12/07/26

...

601

589

L2199814.UP.FTS.B,

25.68%,

12/07/26

...

1,297

1,273

FW2199793.UP.FTS.B,

25.9%,

12/07/26

1,735

1,704

FW2200069.UP.FTS.B,

28.54%,

12/07/26

774

617

FW2198176.UP.FTS.B,

29.22%,

12/07/26

610

598

FW2199632.UP.FTS.B,

32.42%,

12/07/26

1,179

1,158

L2201100.UP.FTS.B,

5.82%,

12/08/26

....

1,508

1,478

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2203382.UP.FTS.B,

6.5%,

12/08/26

....

1,527

1,498

L2206413.UP.FTS.B,

7.44%,

12/08/26

....

1,024

1,008

L2201126.UP.FTS.B,

7.87%,

12/08/26

....

1,493

1,473

L2200918.UP.FTS.B,

8.74%,

12/08/26

....

687

676

FW2202215.UP.FTS.B,

9.76%,

12/08/26

4,165

4,106

L2205258.UP.FTS.B,

10.97%,

12/08/26

...

504

496

L2202707.UP.FTS.B,

11.01%,

12/08/26

...

677

668

L2200873.UP.FTS.B,

11.09%,

12/08/26

...

1,504

1,481

L2205661.UP.FTS.B,

11.13%,

12/08/26

...

2,006

1,975

FW2202691.UP.FTS.B,

11.21%,

12/08/26

502

494

FW2201210.UP.FTS.B,

12.48%,

12/08/26

342

337

L2202867.UP.FTS.B,

13.27%,

12/08/26

...

694

158

L2202534.UP.FTS.B,

13.68%,

12/08/26

...

2,634

2,593

L2200884.UP.FTS.B,

13.99%,

12/08/26

...

1,307

1,286

L2201701.UP.FTS.B,

14.19%,

12/08/26

...

1,240

1,221

L2200543.UP.FTS.B,

14.23%,

12/08/26

...

979

964

FW2206534.UP.FTS.B,

14.38%,

12/08/26

567

558

FW2201365.UP.FTS.B,

14.41%,

12/08/26

2,578

2,539

L2205970.UP.FTS.B,

14.78%,

12/08/26

...

471

464

L2203172.UP.FTS.B,

14.86%,

12/08/26

...

1,795

1,767

L2203888.UP.FTS.B,

15.35%,

12/08/26

...

543

534

L2205432.UP.FTS.B,

15.94%,

12/08/26

...

4,228

4,174

L2195672.UP.FTS.B,

16.2%,

12/08/26

....

2,371

2,341

L2203269.UP.FTS.B,

16.66%,

12/08/26

...

835

824

L2200406.UP.FTS.B,

17.28%,

12/08/26

...

825

815

L2203876.UP.FTS.B,

17.53%,

12/08/26

...

4,698

3,363

L2202653.UP.FTS.B,

17.59%,

12/08/26

...

2,339

2,309

L2200437.UP.FTS.B,

17.72%,

12/08/26

...

472

464

L2206114.UP.FTS.B,

17.92%,

12/08/26

...

385

380

L2201870.UP.FTS.B,

17.98%,

12/08/26

...

570

561

L2202316.UP.FTS.B,

18.78%,

12/08/26

...

579

211

L2171699.UP.FTS.B,

19.26%,

12/08/26

...

1,692

1,661

FW2201480.UP.FTS.B,

19.28%,

12/08/26

1,363

1,345

L2201833.UP.FTS.B,

19.78%,

12/08/26

...

972

957

L2203346.UP.FTS.B,

19.86%,

12/08/26

...

1,257

1,241

L2200528.UP.FTS.B,

20.47%,

12/08/26

...

694

683

L2201790.UP.FTS.B,

20.6%,

12/08/26

....

557

548

L2203266.UP.FTS.B,

21.37%,

12/08/26

...

1,058

1,039

L2203685.UP.FTS.B,

21.52%,

12/08/26

...

707

694

L2206634.UP.FTS.B,

21.58%,

12/08/26

...

444

436

FW2202543.UP.FTS.B,

22.46%,

12/08/26

241

237

L2200624.UP.FTS.B,

22.5%,

12/08/26

....

410

404

L2203293.UP.FTS.B,

22.93%,

12/08/26

...

351

345

L2203557.UP.FTS.B,

23.55%,

12/08/26

...

132

130

L2197277.UP.FTS.B,

23.68%,

12/08/26

...

1,999

155

FW2200085.UP.FTS.B,

23.88%,

12/08/26

477

L2204440.UP.FTS.B,

24.51%,

12/08/26

...

254

250

L2200752.UP.FTS.B,

24.63%,

12/08/26

...

213

209

FW2200668.UP.FTS.B,

24.66%,

12/08/26

1,550

1,521

L2201876.UP.FTS.B,

24.84%,

12/08/26

...

236

232

L2200418.UP.FTS.B,

24.91%,

12/08/26

...

1,407

1,384

L2204236.UP.FTS.B,

25.3%,

12/08/26

....

353

346

L2204385.UP.FTS.B,

25.38%,

12/08/26

...

262

257

L2204272.UP.FTS.B,

25.42%,

12/08/26

...

188

185

L2200539.UP.FTS.B,

25.48%,

12/08/26

...

1,183

1,162

L2202382.UP.FTS.B,

25.5%,

12/08/26

....

388

381

L2206619.UP.FTS.B,

25.63%,

12/08/26

...

1,621

1,593

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2205529.UP.FTS.B,

25.96%,

12/08/26

...

1,520

1,493

FW2200840.UP.FTS.B,

27.39%,

12/08/26

1,868

1,836

FW2200263.UP.FTS.B,

28.29%,

12/08/26

4,301

4,227

FW2203128.UP.FTS.B,

28.72%,

12/08/26

225

221

FW2201641.UP.FTS.B,

29.67%,

12/08/26

1,887

1,855

FW2206862.UP.FTS.B,

29.87%,

12/08/26

265

261

FW2202866.UP.FTS.B,

30.6%,

12/08/26

329

229

FW2203290.UP.FTS.B,

31.07%,

12/08/26

329

324

FW2205002.UP.FTS.B,

31.08%,

12/08/26

744

731

FW2200524.UP.FTS.B,

31.14%,

12/08/26

784

770

FW2199311.UP.FTS.B,

31.18%,

12/08/26

330

325

FW2199186.UP.FTS.B,

25.95%,

12/09/26

460

452

FW2200076.UP.FTS.B,

28.24%,

12/13/26

11,318

11,117

L2202911.UP.FTS.B,

21.13%,

12/14/26

...

1,255

1,234

FW2203667.UP.FTS.B,

23.01%,

12/14/26

3,066

3,012

L2196899.UP.FTS.B,

24.65%,

12/15/26

...

1,241

1,219

FW2199126.UP.FTS.B,

31.54%,

12/15/26

1,480

1,456

L2200110.UP.FTS.B,

25.93%,

12/16/26

...

1,768

1,446

L2203117.UP.FTS.B,

13.79%,

12/17/26

...

1,519

1,495

L2201499.UP.FTS.B,

21.34%,

12/17/26

...

3,493

255

FW2205704.UP.FTS.B,

28.05%,

12/18/26

1,127

1,108

L2206448.UP.FTS.B,

16%,

12/19/26

.....

1,778

1,752

L2196775.UP.FTS.B,

22.04%,

12/19/26

...

205

202

FW2197646.UP.FTS.B,

16.34%,

1/01/27

2,680

193

L2411009.UP.FTS.B,

5.26%,

1/11/27

.....

5,848

5,726

L2402399.UP.FTS.B,

6.09%,

1/11/27

.....

4,602

4,507

L2413519.UP.FTS.B,

6.19%,

1/11/27

.....

3,805

3,730

FW2406810.UP.FTS.B,

7.3%,

1/11/27

....

761

748

L2408660.UP.FTS.B,

7.61%,

1/11/27

.....

1,208

1,186

L2412785.UP.FTS.B,

7.81%,

1/11/27

.....

351

345

L2413727.UP.FTS.B,

8.61%,

1/11/27

.....

871

304

L2407187.UP.FTS.B,

8.85%,

1/11/27

.....

891

875

FW2411415.UP.FTS.B,

9.04%,

1/11/27

...

1,113

1,094

L2410685.UP.FTS.B,

9.48%,

1/11/27

.....

1,914

1,249

FW2406985.UP.FTS.B,

9.83%,

1/11/27

...

547

537

L2411458.UP.FTS.B,

10.12%,

1/11/27

....

404

397

L2413945.UP.FTS.B,

10.53%,

1/11/27

....

4,069

4,005

L2413044.UP.FTS.B,

11.78%,

1/11/27

....

1,565

1,540

L2412100.UP.FTS.B,

13.07%,

1/11/27

....

1,274

1,254

L2411596.UP.FTS.B,

13.42%,

1/11/27

....

969

954

FW2412839.UP.FTS.B,

13.8%,

1/11/27

...

2,141

2,107

FW2407206.UP.FTS.B,

13.82%,

1/11/27

1,178

1,160

L2409821.UP.FTS.B,

14.42%,

1/11/27

....

1,073

1,056

L2410324.UP.FTS.B,

14.46%,

1/11/27

....

3,988

3,925

L2408774.UP.FTS.B,

14.55%,

1/11/27

....

796

787

L2408843.UP.FTS.B,

14.84%,

1/11/27

....

427

421

L2406986.UP.FTS.B,

16.62%,

1/11/27

....

1,033

1,020

L2412621.UP.FTS.B,

16.62%,

1/11/27

....

826

816

FW2411635.UP.FTS.B,

17.05%,

1/11/27

1,061

1,044

L2411840.UP.FTS.B,

17.48%,

1/11/27

....

6,377

4,384

L2406982.UP.FTS.B,

17.53%,

1/11/27

....

2,170

1,501

FW2411466.UP.FTS.B,

17.75%,

1/11/27

422

416

L2407285.UP.FTS.B,

17.96%,

1/11/27

....

1,233

431

L2410765.UP.FTS.B,

18.19%,

1/11/27

....

1,512

1,493

L2412345.UP.FTS.B,

18.51%,

1/11/27

....

628

618

FW2406958.UP.FTS.B,

18.83%,

1/11/27

328

323

L2407160.UP.FTS.B,

18.83%,

1/11/27

....

3,753

3,708

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2412374.UP.FTS.B,

19.25%,

1/11/27

....

2,657

2,610

FW2410395.UP.FTS.B,

20.34%,

1/11/27

1,100

1,083

FW2412890.UP.FTS.B,

20.68%,

1/11/27

2,300

2,260

L2407644.UP.FTS.B,

21.08%,

1/11/27

....

890

875

L2410907.UP.FTS.B,

21.6%,

1/11/27

.....

808

794

L2410622.UP.FTS.B,

23.11%,

1/11/27

....

1,105

1,087

FW2412083.UP.FTS.B,

23.34%,

1/11/27

1,061

1,043

FW2412786.UP.FTS.B,

24.26%,

1/11/27

1,744

1,715

FW2407461.UP.FTS.B,

25.01%,

1/11/27

1,187

1,167

L2407824.UP.FTS.B,

25.08%,

1/11/27

....

975

958

L2406959.UP.FTS.B,

25.22%,

1/11/27

....

416

409

L2413560.UP.FTS.B,

25.29%,

1/11/27

....

871

856

FW2411982.UP.FTS.B,

25.34%,

1/11/27

1,780

128

L2411780.UP.FTS.B,

25.37%,

1/11/27

....

142

L2409900.UP.FTS.B,

25.4%,

1/11/27

.....

208

205

L2411491.UP.FTS.B,

25.4%,

1/11/27

.....

131

129

L2411973.UP.FTS.B,

25.47%,

1/11/27

....

310

305

FW2412928.UP.FTS.B,

25.61%,

1/11/27

480

472

FW2411046.UP.FTS.B,

26.47%,

1/11/27

2,397

1,690

L2409231.UP.FTS.B,

26.66%,

1/11/27

....

1,381

251

FW2406988.UP.FTS.B,

27.86%,

1/11/27

1,241

1,220

FW2410159.UP.FTS.B,

27.94%,

1/11/27

1,008

991

FW2411293.UP.FTS.B,

29.42%,

1/11/27

407

400

FW2407567.UP.FTS.B,

29.43%,

1/11/27

1,132

809

FW2408568.UP.FTS.B,

29.5%,

1/11/27

...

1,141

1,123

FW2412942.UP.FTS.B,

30.18%,

1/11/27

1,061

1,044

FW2413390.UP.FTS.B,

30.33%,

1/11/27

1,054

1,037

FW2413147.UP.FTS.B,

30.55%,

1/11/27

1,318

896

FW2412502.UP.FTS.B,

30.76%,

1/11/27

3,873

3,811

FW2411299.UP.FTS.B,

30.92%,

1/11/27

430

423

FW2392367.UP.FTS.B,

30.94%,

1/11/27

537

528

FW2411010.UP.FTS.B,

31.02%,

1/11/27

1,172

1,153

FW2407947.UP.FTS.B,

31.05%,

1/11/27

963

707

FW2411738.UP.FTS.B,

31.08%,

1/11/27

439

432

FW2410751.UP.FTS.B,

34.47%,

1/11/27

1,335

1,322

L2414801.UP.FTS.B,

6.11%,

1/12/27

.....

1,851

1,813

L2419361.UP.FTS.B,

6.41%,

1/12/27

....

256

251

L2402757.UP.FTS.B,

6.51%,

1/12/27

....

1,055

1,035

L2416784.UP.FTS.B,

6.53%,

1/12/27

....

343

336

L2418799.UP.FTS.B,

6.56%,

1/12/27

....

2,073

2,030

FW2414856.UP.FTS.B,

6.64%,

1/12/27

...

172

168

L2416695.UP.FTS.B,

6.86%,

1/12/27

....

777

761

L2414595.UP.FTS.B,

7.05%,

1/12/27

....

1,299

1,275

L2410292.UP.FTS.B,

7.3%,

1/12/27

.....

642

631

L2417990.UP.FTS.B,

7.34%,

1/12/27

....

8,704

8,549

L2417199.UP.FTS.B,

7.43%,

1/12/27

....

6,731

6,618

FW2419541.UP.FTS.B,

7.5%,

1/12/27

....

2,300

2,261

L2414153.UP.FTS.B,

7.51%,

1/12/27

....

436

427

L2417691.UP.FTS.B,

7.69%,

1/12/27

....

3,918

3,838

L2418009.UP.FTS.B,

9.08%,

1/12/27

....

2,159

2,121

L2414926.UP.FTS.B,

9.43%,

1/12/27

....

5,739

5,636

L2413887.UP.FTS.B,

9.49%,

1/12/27

....

1,090

1,073

FW2415990.UP.FTS.B,

9.9%,

1/12/27

....

6,212

4,193

L2414275.UP.FTS.B,

9.91%,

1/12/27

....

6,394

6,286

L2417012.UP.FTS.B,

10.17%,

1/12/27

....

322

316

FW2417548.UP.FTS.B,

10.24%,

1/12/27

2,759

2,710

FW2417403.UP.FTS.B,

10.31%,

1/12/27

1,292

1,272

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L2414718.UP.FTS.B,

10.85%,

1/12/27

....

744

732

L2414779.UP.FTS.B,

11.77%,

1/12/27

....

757

746

L2419353.UP.FTS.B,

12.95%,

1/12/27

....

6,312

6,215

L2414553.UP.FTS.B,

14.38%,

1/12/27

....

4,409

2,994

L2418960.UP.FTS.B,

15.54%,

1/12/27

....

4,052

4,005

L2414253.UP.FTS.B,

16.15%,

1/12/27

....

1,650

1,630

L2414473.UP.FTS.B,

16.4%,

1/12/27

....

178

176

L2420474.UP.FTS.B,

16.75%,

1/12/27

....

3,126

3,079

L2417581.UP.FTS.B,

17.27%,

1/12/27

....

919

909

FW2415024.UP.FTS.B,

19.94%,

1/12/27

1,903

1,872

L2418100.UP.FTS.B,

20.74%,

1/12/27

....

4,011

3,951

L2389418.UP.FTS.B,

22.12%,

1/12/27

....

1,658

564

FW2416362.UP.FTS.B,

23.42%,

1/12/27

989

973

L2409743.UP.FTS.B,

23.49%,

1/12/27

....

3,098

1,993

L2415306.UP.FTS.B,

24.21%,

1/12/27

....

2,529

2,488

L2411740.UP.FTS.B,

25.36%,

1/12/27

....

382

376

L2414777.UP.FTS.B,

25.43%,

1/12/27

....

312

307

L2418684.UP.FTS.B,

25.49%,

1/12/27

....

722

710

FW2418174.UP.FTS.B,

25.89%,

1/12/27

2,280

2,244

FW2419574.UP.FTS.B,

26.43%,

1/12/27

4,267

4,198

FW2418008.UP.FTS.B,

28.88%,

1/12/27

555

103

FW2418392.UP.FTS.B,

30.87%,

1/12/27

523

515

FW2416140.UP.FTS.B,

30.99%,

1/12/27

572

563

FW2419527.UP.FTS.B,

33.12%,

1/12/27

271

266

L2418737.UP.FTS.B,

5.93%,

1/16/27

....

678

664

L2410494.UP.FTS.B,

17.56%,

1/16/27

....

4,230

4,178

L2413379.UP.FTS.B,

24.03%,

1/18/27

....

4,723

4,644

FW2415348.UP.FTS.B,

30.45%,

1/19/27

5,146

5,063

L2419563.UP.FTS.B,

14.64%,

1/27/27

....

5,683

5,596

L2417088.UP.FTS.B,

15.78%,

2/12/27

....

1,756

1,736

L1708544.UP.FTS.B,

12.57%,

2/14/27

....

761

749

FW1708581.UP.FTS.B,

23.53%,

2/14/27

876

863

L1709217.UP.FTS.B,

25.78%,

2/14/27

....

8,173

6,384

L2632551.UP.FTS.B,

5.37%,

2/15/27

....

2,228

2,179

L2632779.UP.FTS.B,

5.63%,

2/15/27

....

1,305

1,276

L2630774.UP.FTS.B,

8.69%,

2/15/27

....

791

773

L2635638.UP.FTS.B,

9.41%,

2/15/27

....

1,297

1,276

FW2633029.UP.FTS.B,

9.57%,

2/15/27

...

301

295

FW2635247.UP.FTS.B,

10.37%,

2/15/27

1,712

1,684

L2633836.UP.FTS.B,

12%,

2/15/27

......

2,281

2,244

L2630147.UP.FTS.B,

12.15%,

2/15/27

....

8,435

8,302

L2635861.UP.FTS.B,

12.41%,

2/15/27

....

1,796

1,768

L2637042.UP.FTS.B,

13.14%,

2/15/27

....

1,715

1,688

L2631332.UP.FTS.B,

13.22%,

2/15/27

....

1,073

1,056

FW2633237.UP.FTS.B,

13.24%,

2/15/27

762

750

L2632724.UP.FTS.B,

14.48%,

2/15/27

....

1,485

246

L2637603.UP.FTS.B,

14.83%,

2/15/27

....

1,402

1,380

FW2631558.UP.FTS.B,

15.18%,

2/15/27

3,327

3,275

L2635221.UP.FTS.B,

15.45%,

2/15/27

....

1,285

1,266

FW2631951.UP.FTS.B,

15.91%,

2/15/27

2,252

1,721

L2635424.UP.FTS.B,

16.37%,

2/15/27

....

9,059

8,958

FW2635945.UP.FTS.B,

17.32%,

2/15/27

1,265

1,246

FW2635531.UP.FTS.B,

18.53%,

2/15/27

2,769

2,738

L2633648.UP.FTS.B,

20.29%,

2/15/27

....

2,347

2,320

L2632212.UP.FTS.B,

21.09%,

2/15/27

....

950

936

FW2631142.UP.FTS.B,

21.84%,

2/15/27

744

732

L2636740.UP.FTS.B,

22.15%,

2/15/27

....

251

247

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2633500.UP.FTS.B,

22.28%,

2/15/27

....

1,281

1,261

L2629665.UP.FTS.B,

24.47%,

2/15/27

....

1,972

1,548

L2634268.UP.FTS.B,

25.05%,

2/15/27

....

584

575

L2632154.UP.FTS.B,

25.31%,

2/15/27

....

6,139

6,047

L2631893.UP.FTS.B,

25.41%,

2/15/27

....

892

879

L2634591.UP.FTS.B,

25.45%,

2/15/27

....

288

283

FW2631141.UP.FTS.B,

25.72%,

2/15/27

3,470

3,418

L2634677.UP.FTS.B,

25.78%,

2/15/27

....

1,053

1,037

L2636195.UP.FTS.B,

25.92%,

2/15/27

....

3,952

3,893

L2635199.UP.FTS.B,

26.23%,

2/15/27

....

1,667

1,642

FW2634760.UP.FTS.B,

26.38%,

2/15/27

1,564

1,540

FW2637086.UP.FTS.B,

26.68%,

2/15/27

880

866

FW2632183.UP.FTS.B,

27.72%,

2/15/27

1,916

1,888

FW2629864.UP.FTS.B,

30.9%,

2/15/27

...

732

576

FW2631968.UP.FTS.B,

30.98%,

2/15/27

802

790

FW2633604.UP.FTS.B,

31.13%,

2/15/27

751

740

L2641249.UP.FTS.B,

9.09%,

2/16/27

....

2,927

2,873

FW2640044.UP.FTS.B,

9.77%,

2/16/27

...

1,117

1,097

L2628258.UP.FTS.B,

10.4%,

2/16/27

....

3,320

3,268

L2639939.UP.FTS.B,

10.73%,

2/16/27

....

2,943

2,897

L2640107.UP.FTS.B,

11.57%,

2/16/27

....

2,229

2,195

L2642580.UP.FTS.B,

11.66%,

2/16/27

....

730

719

L2642829.UP.FTS.B,

11.96%,

2/16/27

....

4,489

4,420

L2637999.UP.FTS.B,

12.45%,

2/16/27

....

2,367

2,331

L2639543.UP.FTS.B,

14.06%,

2/16/27

....

2,178

2,145

L2637807.UP.FTS.B,

14.59%,

2/16/27

....

3,183

3,135

L2643572.UP.FTS.B,

14.72%,

2/16/27

....

440

434

FW2640160.UP.FTS.B,

14.88%,

2/16/27

5,079

5,001

FW2643607.UP.FTS.B,

16.31%,

2/16/27

11,304

11,183

FW2638305.UP.FTS.B,

16.48%,

2/16/27

2,484

2,457

L2639711.UP.FTS.B,

16.7%,

2/16/27

.....

364

360

L2641429.UP.FTS.B,

17.81%,

2/16/27

....

3,015

2,983

L2638277.UP.FTS.B,

18.32%,

2/16/27

....

1,177

1,164

FW2640938.UP.FTS.B,

20.16%,

2/16/27

2,637

2,597

L2643431.UP.FTS.B,

20.38%,

2/16/27

....

4,039

3,098

FW2639130.UP.FTS.B,

21.01%,

2/16/27

977

963

L2631819.UP.FTS.B,

22.11%,

2/16/27

....

4,432

4,365

L2637903.UP.FTS.B,

22.13%,

2/16/27

....

2,857

2,817

FW2643737.UP.FTS.B,

23.79%,

2/16/27

4,481

1,528

L2644184.UP.FTS.B,

24.14%,

2/16/27

....

2,556

2,530

L2638887.UP.FTS.B,

24.84%,

2/16/27

....

519

511

L2642235.UP.FTS.B,

24.97%,

2/16/27

....

392

386

L2644251.UP.FTS.B,

25.49%,

2/16/27

....

325

321

L2643938.UP.FTS.B,

25.5%,

2/16/27

....

415

409

L2638678.UP.FTS.B,

25.84%,

2/16/27

....

1,770

1,744

FW2638017.UP.FTS.B,

27.09%,

2/16/27

2,306

2,274

FW2636711.UP.FTS.B,

27.4%,

2/16/27

...

2,704

2,666

FW2644630.UP.FTS.B,

28.55%,

2/16/27

2,916

2,876

FW2639696.UP.FTS.B,

30.14%,

2/16/27

280

276

FW2639361.UP.FTS.B,

31.17%,

2/16/27

397

392

FW2638060.UP.FTS.B,

31.21%,

2/16/27

742

732

FW2645630.UP.FTS.B,

12.87%,

2/17/27

1,906

1,879

L2644980.UP.FTS.B,

12.95%,

2/17/27

....

347

342

FW2645588.UP.FTS.B,

15.61%,

2/17/27

875

750

L2645010.UP.FTS.B,

20.52%,

2/17/27

....

3,456

592

FW2642053.UP.FTS.B,

21.61%,

2/17/27

1,026

1,011

L2645131.UP.FTS.B,

25.45%,

2/17/27

....

329

325

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

FW2645571.UP.FTS.B,

26.48%,

2/17/27

1,063

1,049

FW2645842.UP.FTS.B,

30.86%,

2/17/27

773

762

FW2639867.UP.FTS.B,

26.3%,

2/19/27

...

558

550

L2633374.UP.FTS.B,

7.21%,

2/22/27

....

3,665

3,583

FW2636201.UP.FTS.B,

12.12%,

2/28/27

1,483

1,459

FW2645675.UP.FTS.B,

15.8%,

2/28/27

...

6,143

6,080

L2643974.UP.FTS.B,

25.5%,

2/28/27

....

963

950

FW2644598.UP.FTS.B,

29.38%,

3/01/27

3,239

3,194

L1874284.UP.FTS.B,

13.39%,

3/18/27

....

1,599

1,575

L1874238.UP.FTS.B,

17.32%,

3/18/27

....

1,703

1,302

L1873877.UP.FTS.B,

25.05%,

3/18/27

....

2,038

148

FW1873866.UP.FTS.B,

28.25%,

3/18/27

283

FW1872975.UP.FTS.B,

32.03%,

3/18/27

1,693

121

L1874548.UP.FTS.B,

26.04%,

3/26/27

....

2,004

1,978

L1873528.UP.FTS.B,

25.71%,

3/28/27

....

3,114

224

FW2204427.UP.FTS.B,

30.34%,

4/08/27

2,842

1,832

L1947969.UP.FTS.B,

8.25%,

4/09/27

....

695

428

L2004674.UP.FTS.B,

22.44%,

4/09/27

....

3,420

3,365

L2006933.UP.FTS.B,

23.7%,

4/09/27

....

1,801

1,771

L2006560.UP.FTS.B,

24.67%,

4/09/27

....

2,395

2,354

L2004971.UP.FTS.B,

25.6%,

4/09/27

....

2,937

2,882

FW2007255.UP.FTS.B,

28.65%,

4/09/27

1,565

1,539

FW2009107.UP.FTS.B,

29.81%,

4/09/27

1,191

1,170

FW2008461.UP.FTS.B,

31.23%,

4/09/27

457

450

L2079526.UP.FTS.B,

17.98%,

4/19/27

....

1,024

771

L2078541.UP.FTS.B,

18.53%,

4/19/27

....

891

878

L2076557.UP.FTS.B,

21.86%,

4/19/27

....

7,337

7,248

L2078089.UP.FTS.B,

22.76%,

4/19/27

....

6,295

6,211

FW2077484.UP.FTS.B,

23.29%,

4/19/27

6,043

1,915

FW2076494.UP.FTS.B,

27.89%,

4/19/27

1,461

1,444

L2005313.UP.FTS.B,

17.04%,

4/20/27

....

11,268

11,132

FW2009466.UP.FTS.B,

29.96%,

4/24/27

224

221

L2412142.UP.FTS.B,

8.74%,

4/26/27

....

4,937

4,838

L2196542.UP.FTS.B,

14.21%,

5/07/27

....

2,903

1,711

FW2198673.UP.FTS.B,

15.71%,

5/07/27

7,453

4,443

L2197891.UP.FTS.B,

23.8%,

5/07/27

....

940

923

FW2198564.UP.FTS.B,

27.96%,

5/07/27

1,776

1,111

FW2197220.UP.FTS.B,

29.81%,

5/07/27

932

916

L2203856.UP.FTS.B,

13.82%,

5/08/27

....

12,256

883

L2205436.UP.FTS.B,

16.02%,

5/08/27

....

13,386

2,061

L2201272.UP.FTS.B,

16.5%,

5/08/27

....

1,407

1,381

L2205691.UP.FTS.B,

16.93%,

5/08/27

....

9,261

670

L2203740.UP.FTS.B,

19.62%,

5/08/27

....

710

698

FW2202220.UP.FTS.B,

20.45%,

5/08/27

10,488

824

L2204624.UP.FTS.B,

23.54%,

5/08/27

....

8,815

5,509

L2204118.UP.FTS.B,

23.56%,

5/08/27

....

6,251

6,140

FW2202542.UP.FTS.B,

24.64%,

5/08/27

1,665

1,638

L2203217.UP.FTS.B,

25.16%,

5/08/27

....

391

385

FW2201944.UP.FTS.B,

25.52%,

5/08/27

2,347

1,433

L2195192.UP.FTS.B,

17.22%,

5/15/27

....

1,129

1,115

L2197038.UP.FTS.B,

12.26%,

5/16/27

....

1,395

101

FW2198942.UP.FTS.B,

24.77%,

5/18/27

6,397

4,819

FW2645832.UP.FTS.B,

18.88%,

5/21/27

5,156

5,103

L2194879.UP.FTS.B,

17.51%,

5/22/27

....

5,980

5,906

L2195912.UP.FTS.B,

25.21%,

5/22/27

....

2,414

2,368

FW2195399.UP.FTS.B,

29.81%,

5/22/27

1,048

1,032

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Description

Principal

Amount

Value

Marketplace

Loans

(continued)

Upstart

Network,

Inc.

(continued)

L2203741.UP.FTS.B,

7.33%,

5/23/27

....

4,128

4,043

FW2199867.UP.FTS.B,

13.82%,

5/23/27

5,400

5,307

L2203381.UP.FTS.B,

18.04%,

5/23/27

....

1,994

1,969

L2204897.UP.FTS.B,

23.87%,

5/23/27

....

11,416

8,380

L2206744.UP.FTS.B,

13.51%,

5/28/27

....

7,052

6,933

FW2185665.UP.FTS.B,

20.17%,

6/08/27

2,760

198

L2412468.UP.FTS.B,

7.67%,

6/11/27

.....

13,688

7,649

L2412874.UP.FTS.B,

8.03%,

6/11/27

.....

1,994

580

L2412901.UP.FTS.B,

8.44%,

6/11/27

.....

4,199

2,370

L2408318.UP.FTS.B,

10.27%,

6/11/27

....

1,184

1,162

L2413229.UP.FTS.B,

11.26%,

6/11/27

....

7,138

7,009

FW2407472.UP.FTS.B,

18.08%,

6/11/27

9,110

8,951

L2413373.UP.FTS.B,

23.72%,

6/11/27

....

16,202

1,174

FW2409812.UP.FTS.B,

24.81%,

6/11/27

1,188

1,168

FW2411228.UP.FTS.B,

26.37%,

6/11/27

1,770

1,744

FW2413018.UP.FTS.B,

30.69%,

6/11/27

309

303

L2415490.UP.FTS.B,

12.71%,

6/12/27

....

6,033

436

L2418697.UP.FTS.B,

22.86%,

6/12/27

....

1,820

288

L2416737.UP.FTS.B,

23.4%,

6/12/27

....

750

511

FW2418092.UP.FTS.B,

30.98%,

6/12/27

582

573

FW2411936.UP.FTS.B,

13.61%,

6/26/27

2,237

2,197

L2198053.UP.FTS.B,

20.47%,

7/08/27

....

1,817

283

FW1711888.UP.FTS.B,

15.29%,

7/14/27

2,103

2,079

L2637476.UP.FTS.B,

21.48%,

7/15/27

....

4,389

315

L2633167.UP.FTS.B,

24.54%,

7/15/27

....

2,466

2,429

FW2634310.UP.FTS.B,

27.59%,

7/15/27

3,560

2,592

FW2634423.UP.FTS.B,

28.99%,

7/15/27

10,120

9,985

FW2637881.UP.FTS.B,

14.54%,

7/16/27

1,860

1,826

L2639355.UP.FTS.B,

21.49%,

7/16/27

....

1,351

1,331

FW2639691.UP.FTS.B,

23.69%,

7/16/27

6,238

6,135

L2645113.UP.FTS.B,

10.21%,

7/17/27

....

2,420

2,376

FW2645472.UP.FTS.B,

26.31%,

7/17/27

6,533

6,440

FW2632915.UP.FTS.B,

24.46%,

7/20/27

5,573

5,481

FW2644628.UP.FTS.B,

30.88%,

7/24/27

690

682

L2642277.UP.FTS.B,

22.82%,

7/28/27

....

2,706

2,666

L2407955.UP.FTS.B,

27%,

8/11/27

......

2,542

182

L2009631.UP.FTS.B,

16.91%,

9/09/27

....

2,838

2,803

FW2007802.UP.FTS.B,

23.93%,

9/09/27

13,669

13,378

L2004302.UP.FTS.B,

21.93%,

9/24/27

....

1,023

1,004

FW2005949.UP.FTS.B,

25.57%,

9/24/27

2,979

2,925

FW2192438.UP.FTS.B,

23.66%,

10/07/27

3,578

3,509

L2202159.UP.FTS.B,

13.54%,

10/08/27

...

8,409

8,213

L2203340.UP.FTS.B,

21.11%,

10/08/27

...

882

L2206615.UP.FTS.B,

25.87%,

10/08/27

...

8,166

4,428

FW2202975.UP.FTS.B,

30.2%,

10/08/27

2,397

161

L2641861.UP.FTS.B,

16.53%,

10/17/27

...

4,451

322

L2200600.UP.FTS.B,

11.71%,

10/23/27

...

1,677

1,156

L2201626.UP.FTS.B,

25.65%,

11/08/27

...

1,425

103

FW2410081.UP.FTS.B,

8.78%,

11/11/27

2,977

216

FW2415964.UP.FTS.B,

31.16%,

11/12/27

496

312

FW2410499.UP.FTS.B,

31.67%,

11/16/27

753

741

L2645397.UP.FTS.B,

26.19%,

11/19/27

...

1,295

203

FW2406392.UP.FTS.B,

23.41%,

12/11/27

3,126

226

L2644100.UP.FTS.B,

5.16%,

12/16/27

....

987

967

FW2643411.UP.FTS.B,

29.58%,

12/16/27

2,727

2,686

L1710242.UP.FTS.B,

16.42%,

9/14/28

....

1,399

1,377

Description

Principal

Amount

Value

Upstart

Network,

Inc.

(continued)

L1973640.UP.FTS.B,

20.1%,

11/09/28

....

5,691

405

L2009558.UP.FTS.B,

26.34%,

11/09/28

...

9,332

9,288

L2195991.UP.FTS.B,

26.01%,

12/07/28

...

5,404

5,389

L2204377.UP.FTS.B,

25.94%,

12/08/28

...

2,614

2,582

L2635238.UP.FTS.B,

13.81%,

2/15/29

....

7,786

7,735

L2631621.UP.FTS.B,

15.64%,

2/15/29

....

11,526

11,331

L2633434.UP.FTS.B,

17.36%,

2/15/29

....

2,529

2,517

L2413593.UP.FTS.B,

23.06%,

4/11/29

....

4,860

352

1,017,861

Total

Marketplace

Loans

(Cost

$9,189,510

)

.......................

$2,232,026

The

rate

shown

represents

the

yield

period

end.

Defaulted

security

for

which

income

has

been

deemed

uncollectible.

See

Note

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Core

Plus

Bond

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

April

30,

2026

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

(

April

30,

2026

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

(

April

30,

2026

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(d)

Futures

Contracts

Description

Type

Number

Contracts

Notional

Amount

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Interest

rate

contracts

Euro-Bobl

..................................

Short

3,522,945

6/08/26

49,656

Euro-Bund

.................................

Short

4,119,605

6/08/26

82,185

U.S.

Treasury

Year

Notes

....................

Short

366

40,477,312

6/18/26

518,655

U.S.

Treasury

Year

Ultra

Notes

................

Long

206

23,249,031

6/18/26

(

193,405

)

U.S.

Treasury

Year

Notes

.....................

Long

314

65,037,250

6/30/26

(

108,202

)

U.S.

Treasury

Year

Notes

.....................

Long

214

23,076,891

6/30/26

(

93,910

)

U.S.

Treasury

Long

Bonds

.....................

Long

791

89,259,406

6/18/26

(

2,858,180

)

U.S.

Treasury

Ultra

Bonds

......................

Long

276

31,748,625

6/18/26

(

1,175,415

)

Total

Futures

Contracts

......................................................................

$(3,778,616)

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

Type

Quantity

Contract

Amount

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

OTC

Forward

Exchange

Contracts

Euro

.............

JPHQ

Sell

3,974,000

4,614,963

5/26/26

—

(

54,085

)

Euro

.............

JPHQ

Sell

2,600,000

3,085,770

6/22/26

27,212

—

Euro

.............

JPHQ

Buy

846,000

996,657

7/13/26

—

(

553

)

Euro

.............

JPHQ

Sell

2,381,000

2,805,012

7/13/26

1,556

—

Total

Forward

Exchange

Contracts

...................................................

$28,768

$(54,638)

Net

unrealized

appreciation

(depreciation)

............................................

$(25,870)

U.S.

dollars

unless

otherwise

indicated.

May

comprised

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

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

Centrally

Cleared

Swap

Contracts

Buy

Protection

Traded

Index

iTraxx

Europe

Main

....

(1.00)%

Quarterly

6/20/31

69,880,000

EUR

(

1,683,607

)

(

990,819

)

(

692,788

)

Franklin

Strategic

Series

Schedule

Investments

Franklin

Core

Plus

Bond

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

See

Note 9 regarding

other

derivative

information.

See

Abbreviations

page

158.

Credit

Default

Swap

Contracts

(continued)

Description

Periodic

Payment

Rate

Received

(Paid)

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Amount

Value

Upfront

Payments

(Receipts)

Unrealized

Appreciation

(Depreciation)

Rating

Centrally

Cleared

Swap

Contracts

(continued)

Contracts

Sell

Protection

c,d

Traded

Index

CDX.NA.HY.45

5.00%

Quarterly

12/20/30

10,230,000

797,704

732,056

65,648

Non-

Investment

Grade

CDX.NA.HY.46

5.00%

Quarterly

6/20/31

18,400,000

1,418,605

951,748

466,857

Non-

Investment

Grade

CDX.NA.IG.46

1.00%

Quarterly

6/20/31

80,470,000

1,784,139

1,232,845

551,294

Investment

Grade

Total

Centrally

Cleared

Swap

Contracts

.....................................

$2,316,841

$1,925,830

$391,011

OTC

Swap

Contracts

Buy

Protection

Traded

Index

CDX.NA.HY.45

(5.00)%

Quarterly

CITI

12/20/30

9,300,000

(

1,414,531

)

(

1,291,228

)

(

123,303

)

Total

OTC

Swap

Contracts

..............................................

$(1,414,531)

$(1,291,228)

$(123,303)

Total

Credit

Default

Swap

Contracts

....................................

$902,310

634,602

$267,708

U.S.

dollars

unless

otherwise

indicated.

For

contracts

sell

protection,

the

notional

amount

equal

the

maximum

potential

amount

the

future

payments

and

recourse

provisions

have

been

entered

into

association

with

the

contracts.

Based

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

mapping

into

equivalent

ratings

from

external

vendors.

Performance

triggers

for

settlement

contract

include

default,

bankruptcy

restructuring

for

single

name

swaps,

and

failure

pay

bankruptcy

the

underlying

securities

for

traded

index

swaps.

The

fund

enters

contracts

sell

protection

create

long

credit

position.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$44.86

$45.99

$39.15

$43.14

$56.25

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.25)

(0.16)

(0.20)

(0.12)

(0.28)

Net

realized

and

unrealized

gains

(losses)

...........

9.34

4.24

12.81

(2.19)

(7.76)

Total

from

investment

operations

....................

9.09

4.08

12.61

(2.31)

(8.04)

Less

distributions

from:

Net

realized

gains

.............................

(8.65)

(5.21)

(5.77)

(1.68)

(5.07)

Net

asset

value,

end

year

.......................

$45.30

$44.86

$45.99

$39.15

$43.14

Total

return

...................................

20.74%

7.85%

33.49%

(4.98)%

(16.57)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.89%

0.91%

0.95%

0.90%

Expenses

net

waiver

and

payments

affiliates

.......

0.88%

0.89%

0.91%

d,e

0.94%

0.89%

Net

investment

(loss)

............................

(0.53)%

(0.32)%

(0.45)%

(0.30)%

(0.49)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$3,569,378

$3,383,277

$3,453,647

$2,765,017

$3,215,834

Portfolio

turnover

rate

............................

39.14%

27.59%

27.49%

16.52%

17.20%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$29.51

$31.99

$28.86

$32.55

$43.87

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.39)

(0.36)

(0.38)

(0.30)

(0.54)

Net

realized

and

unrealized

gains

(losses)

...........

6.05

3.09

9.28

(1.71)

(5.71)

Total

from

investment

operations

....................

5.66

2.73

8.90

(2.01)

(6.25)

Less

distributions

from:

Net

realized

gains

.............................

(8.65)

(5.21)

(5.77)

(1.68)

(5.07)

Net

asset

value,

end

year

.......................

$26.52

$29.51

$31.99

$28.86

$32.55

Total

return

...................................

19.82%

7.03%

32.52%

(5.69)%

(17.20)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.64%

1.66%

1.70%

1.65%

Expenses

net

waiver

and

payments

affiliates

.......

1.64%

1.66%

d,e

1.69%

1.64%

Net

investment

(loss)

............................

(1.28)%

(1.07)%

(1.18)%

(1.05)%

(1.23)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$67,999

$75,994

$87,686

$119,070

$158,895

Portfolio

turnover

rate

............................

39.14%

27.59%

27.49%

16.52%

17.20%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$40.28

$41.85

$36.13

$40.06

$52.69

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.33)

(0.26)

(0.29)

(0.20)

(0.39)

Net

realized

and

unrealized

gains

(losses)

...........

8.35

3.90

11.78

(2.05)

(7.17)

Total

from

investment

operations

....................

8.02

3.64

11.49

(2.25)

(7.56)

Less

distributions

from:

Net

realized

gains

.............................

(8.65)

(5.21)

(5.77)

(1.68)

(5.07)

Net

asset

value,

end

year

.......................

$39.65

$40.28

$41.85

$36.13

$40.06

Total

return

....................................

20.42%

7.57%

33.18%

(5.21)%

(16.79)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.14%

1.16%

1.20%

1.15%

Expenses

net

waiver

and

payments

affiliates

.......

1.14%

1.16%

c,d

1.19%

1.14%

Net

investment

(loss)

............................

(0.78)%

(0.57)%

(0.70)%

(0.55)%

(0.73)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$25,148

$25,260

$28,933

$22,664

$27,009

Portfolio

turnover

rate

............................

39.14%

27.59%

27.49%

16.52%

17.20%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$53.48

$53.82

$44.87

$48.98

$63.06

Income

from

investment

operations

Net

investment

income

(loss)

....................

(0.12)

(—)

(0.05)

0.02

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

11.19

4.87

14.77

(2.45)

(8.91)

Total

from

investment

operations

....................

11.07

4.87

14.72

(2.43)

(9.01)

Less

distributions

from:

Net

realized

gains

.............................

(8.65)

(5.21)

(5.77)

(1.68)

(5.07)

Net

asset

value,

end

year

.......................

$55.90

$53.48

$53.82

$44.87

$48.98

Total

return

....................................

21.11%

8.19%

33.94%

(4.62)%

(16.32)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.57%

0.58%

0.59%

0.57%

Expenses

net

waiver

and

payments

affiliates

.......

0.57%

0.58%

d,e

0.58%

0.57%

d,e

Net

investment

income

(loss)

......................

(0.21)%

(—)%

(0.11)%

0.05%

(0.16)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$408,527

$371,773

$375,777

$449,119

$461,475

Portfolio

turnover

rate

............................

39.14%

27.59%

27.49%

16.52%

17.20%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Amount

rounds

less

than

$0.01

per

share.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$52.06

$52.54

$43.96

$48.07

$62.01

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.16)

(0.04)

(0.10)

(0.02)

(0.15)

Net

realized

and

unrealized

gains

(losses)

...........

10.89

4.77

14.45

(2.41)

(8.72)

Total

from

investment

operations

....................

10.73

4.73

14.35

(2.43)

(8.87)

Less

distributions

from:

Net

realized

gains

.............................

(8.65)

(5.21)

(5.77)

(1.68)

(5.07)

Net

asset

value,

end

year

.......................

$54.14

$52.06

$52.54

$43.96

$48.07

Total

return

....................................

21.04%

8.12%

33.80%

(4.71)%

(16.37)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.64%

0.66%

0.69%

0.65%

Expenses

net

waiver

and

payments

affiliates

.......

0.63%

0.64%

0.66%

c,d

0.68%

0.64%

Net

investment

(loss)

............................

(0.28)%

(0.08)%

(0.19)%

(0.05)%

(0.24)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$323,349

$304,150

$291,914

$325,234

$636,524

Portfolio

turnover

rate

............................

39.14%

27.59%

27.49%

16.52%

17.20%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

current

year

information.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Growth

Opportunities

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

96.2%

Aerospace

Defense

5.8%

a,b,c

Anduril

Industries,

Inc.

.............................

United

States

117,526

8,103,418

a,b,c

Anduril

Industries,

Inc.

.............................

United

States

3,792

Axon

Enterprise,

Inc.

.................................

United

States

80,066

32,167,316

BWX

Technologies,

Inc.

..............................

United

States

168,598

36,482,921

Curtiss-Wright

Corp.

.................................

United

States

83,386

60,054,597

Howmet

Aerospace,

Inc.

..............................

United

States

183,253

44,537,809

a,b,c

Space

Exploration

Technologies

Corp.

..................

United

States

142,857

75,227,068

256,576,921

Automobiles

1.9%

Tesla,

Inc.

.........................................

United

States

223,200

85,179,816

Beverages

0.6%

Coca-Cola

Co.

(The)

.................................

United

States

326,610

25,723,803

Biotechnology

1.6%

Insmed,

Inc.

.......................................

United

States

227,635

31,033,479

Natera,

Inc.

........................................

United

States

193,955

39,985,763

71,019,242

Broadline

Retail

5.3%

Amazon.com,

Inc.

...................................

United

States

873,802

231,609,958

Building

Products

1.2%

Trane

Technologies

plc

...............................

United

States

110,655

54,502,014

Capital

Markets

0.7%

S&P

Global,

Inc.

....................................

United

States

72,600

31,307,298

Chemicals

0.9%

Linde

plc

..........................................

United

States

80,837

40,510,654

Commercial

Services

Supplies

1.1%

a,b,c

Celonis

........................................

Germany

4,619

416,631

a,b,c

Celonis

......................................

Germany

25,571

2,306,491

a,b

Optoro,

Inc.

........................................

United

States

556,026

—

Republic

Services,

Inc.

.............................

United

States

209,953

43,926,367

46,649,489

Communications

Equipment

1.7%

Arista

Networks,

Inc.

.................................

United

States

284,115

49,069,502

Ciena

Corp.

.......................................

United

States

46,431

24,496,067

73,565,569

Construction

Engineering

0.5%

Comfort

Systems

USA,

Inc.

............................

United

States

12,815

23,582,804

Construction

Materials

0.8%

Martin

Marietta

Materials,

Inc.

..........................

United

States

53,572

33,164,818

Consumer

Staples

Distribution

Retail

2.2%

Casey's

General

Stores,

Inc.

...........................

United

States

115,652

95,083,292

Electric

Utilities

0.7%

Entergy

Corp.

......................................

United

States

251,944

29,706,717

Electrical

Equipment

2.3%

Forgent

Power

Solutions,

Inc.

........................

United

States

332,179

12,496,574

Vernova,

Inc.

....................................

United

States

59,727

64,711,815

nVent

Electric

plc

...................................

United

States

158,665

22,673,229

99,881,618

Franklin

Strategic

Series

Schedule

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

Components

3.3%

Amphenol

Corp.

..................................

United

States

640,449

94,318,924

Celestica,

Inc.

......................................

Canada

70,419

28,842,918

Coherent

Corp.

.....................................

United

States

72,133

23,061,642

146,223,484

Entertainment

2.1%

Netflix,

Inc.

........................................

United

States

757,944

70,951,138

ROBLOX

Corp.

...................................

United

States

402,009

22,215,017

93,166,155

Financial

Services

1.5%

Mastercard,

Inc.

..................................

United

States

126,585

63,662,128

Ground

Transportation

0.8%

Old

Dominion

Freight

Line,

Inc.

.........................

United

States

170,767

36,276,034

Health

Care

Equipment

Supplies

0.9%

Dexcom,

Inc.

.......................................

United

States

359,238

21,392,623

Intuitive

Surgical,

Inc.

................................

United

States

41,520

18,999,967

40,392,590

Health

Care

Providers

Services

1.6%

McKesson

Corp.

....................................

United

States

85,928

70,048,506

Hotels,

Restaurants

Leisure

0.7%

DoorDash,

Inc.

...................................

United

States

183,223

30,900,559

Interactive

Media

Services

11.2%

Alphabet,

Inc.

....................................

United

States

864,803

330,302,858

Meta

Platforms,

Inc.

...............................

United

States

261,427

159,969,795

490,272,653

Services

1.7%

a,b,c

Canva

Australia

Holdings

Pty.

Ltd.

.....................

Australia

3,094

5,093,157

a,b,c

Canva

Australia

Holdings

Pty.

Ltd.

.....................

Australia

11,829

19,472,190

Cloudflare,

Inc.

...................................

United

States

126,315

25,890,786

Shopify,

Inc.

.....................................

Canada

217,662

26,365,398

76,821,531

Life

Sciences

Tools

Services

0.5%

Repligen

Corp.

.....................................

United

States

88,804

10,506,401

b,d

Tempus

AI,

Inc.

...................................

United

States

186,393

10,341,084

20,847,485

Machinery

1.0%

Parker-Hannifin

Corp.

................................

United

States

47,348

43,059,218

Pharmaceuticals

3.2%

Eli

Lilly

Co.

......................................

United

States

107,712

100,667,635

Jazz

Pharmaceuticals

plc

.............................

United

States

192,521

39,085,614

139,753,249

Semiconductors

Semiconductor

Equipment

24.7%

Advanced

Micro

Devices,

Inc.

..........................

United

States

105,207

37,294,829

Analog

Devices,

Inc.

.................................

United

States

100,531

40,439,600

Broadcom,

Inc.

.....................................

United

States

510,415

213,062,534

KLA

Corp.

.........................................

United

States

17,181

30,072,763

Lam

Research

Corp.

.................................

United

States

191,021

49,256,675

Lattice

Semiconductor

Corp.

...........................

United

States

437,397

53,484,905

MACOM

Technology

Solutions

Holdings,

Inc.

..............

United

States

78,346

22,063,017

Micron

Technology,

Inc.

...............................

United

States

50,525

26,129,509

Franklin

Strategic

Series

Schedule

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Semiconductors

Semiconductor

Equipment

(continued)

Monolithic

Power

Systems,

Inc.

.........................

United

States

54,601

88,148,400

NVIDIA

Corp.

......................................

United

States

2,144,801

428,037,936

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

ADR

.........

Taiwan

160,443

63,545,055

Teradyne,

Inc.

......................................

United

States

98,639

33,879,537

1,085,414,760

Software

6.5%

AppLovin

Corp.

...................................

United

States

36,621

16,345,783

a,b,c

ClearMotion,

Inc.

....................................

United

States

6,309,366

650,899

Crowdstrike

Holdings,

Inc.

...........................

United

States

57,593

25,672,080

Microsoft

Corp.

.....................................

United

States

443,757

180,955,230

a,b,c

OpenAI

Foundation

..................................

United

States

8,668

5,960,897

a,b,c

Plaid,

Inc.

.......................................

United

States

56,433

13,666,978

a,b,c

Stripe,

Inc.

......................................

United

States

260,482

16,635,683

Synopsys,

Inc.

.....................................

United

States

53,327

25,735,610

285,623,160

Specialty

Retail

1.0%

AutoZone,

Inc.

.....................................

United

States

8,320

30,817,530

Carvana

Co.

.....................................

United

States

32,968

13,048,734

43,866,264

Technology

Hardware,

Storage

Peripherals

7.8%

Apple,

Inc.

........................................

United

States

1,138,591

308,956,668

Dell

Technologies,

Inc.

.............................

United

States

107,581

22,479,050

Everpure,

Inc.

....................................

United

States

162,855

11,635,989

343,071,707

Trading

Companies

Distributors

0.4%

b,d

QXO,

Inc.

.........................................

United

States

931,611

18,697,433

Total

Common

Stocks

(Cost

1,980,982,888

)

..................................

4,226,160,929

Convertible

Preferred

Stocks

2.4%

Aerospace

Defense

0.3%

a,b,c

Anduril

Industries,

Inc.

.............................

United

States

180,222

12,426,307

Automobile

Components

0.3%

a,b,c

Flock

Group,

Inc.

.................................

United

States

750,387

11,729,975

a,b,c

Flock

Group,

Inc.

.................................

United

States

80,684

1,261,244

a,b,c

Flock

Group,

Inc.

F-1

................................

United

States

21,303

333,006

13,324,225

Software

1.8%

a,b,c

Anthropic

PBC

G-1

.................................

United

States

38,589

9,999,815

a,b,c

Databricks,

Inc.

..................................

United

States

338,280

64,623,462

a,b,c

OneTrust

LLC

....................................

United

States

517,056

4,805,902

79,429,179

Total

Convertible

Preferred

Stocks

(Cost

60,096,304

)

.........................

105,179,711

Preferred

Stocks

0.3%

Software

0.3%

a,b,c

Anthropic

PBC

F-1

..................................

United

States

49,656

12,867,677

a,b,c

ClearMotion,

Inc.

A-3

................................

United

States

417,667

60,170

Franklin

Strategic

Series

Schedule

Investments

Franklin

Growth

Opportunities

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Preferred

Stocks

(continued)

Software

(continued)

a,b,c

ClearMotion,

Inc.

A-4

................................

United

States

2,606,463

341,496

13,269,343

Total

Preferred

Stocks

(Cost

7,251,387

)

.....................................

13,269,343

Escrows

and

Litigation

Trusts

0.0%

a,b

Fortinet,

Inc.,

Escrow

Account

..........................

United

States

810,440

—

a,b

Wheels

Experience,

Inc.,

Escrow

Account

..............

United

States

514

—

Total

Escrows

and

Litigation

Trusts

(Cost

–

)

.................................

—

Total

Long

Term

Investments

(Cost

2,048,330,579

)

...........................

4,344,609,983

Short

Term

Investments

1.5%

Country

Value

Money

Market

Funds

1.1%

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

.........................................

United

States

47,555,504

Total

Money

Market

Funds

(Cost

47,555,504

)

................................

47,555,504

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.4%

Money

Market

Funds

0.4%

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

.........................................

United

States

19,950,750

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

19,950,750

)

.........................................................

19,950,750

Total

Short

Term

Investments

(Cost

67,506,254

)

..............................

67,506,254

Total

Investments

(Cost

2,115,836,833

)

100.4

...............................

$4,412,116,237

Other

Assets,

less

Liabilities

(

0.4

)

.........................................

(17,715,424)

Net

Assets

100.0%

.........................................................

$4,394,400,813

See

Abbreviations

page

158

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

Non-income

producing.

See

Note

regarding

restricted

securities.

portion

all

the

security

loan

April

30,

2026.

See

Note

1(e).

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

See

Note

1(e)

regarding

securities

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$28.15

$30.98

$28.10

$27.01

$20.02

Income

from

investment

operations

Net

investment

income

.........................

0.51

0.52

0.55

0.68

0.50

Net

realized

and

unrealized

gains

(losses)

...........

17.56

(2.67)

2.90

1.09

6.77

Total

from

investment

operations

....................

18.07

(2.15)

3.45

1.77

7.27

Less

distributions

from:

Net

investment

income

..........................

(0.62)

(0.68)

(0.57)

(0.68)

(0.28)

Net

asset

value,

end

year

.......................

$45.60

$28.15

$30.98

$28.10

$27.01

Total

return

...................................

64.73%

(6.87)%

12.41%

6.56%

36.63%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.97%

1.00%

1.02%

0.97%

1.10%

Expenses

net

waiver

and

payments

affiliates

.......

0.96%

0.99%

1.01%

0.96%

1.10%

Net

investment

income

...........................

1.40%

1.72%

1.90%

2.45%

2.17%

Supplemental

data

Net

assets

end

year

(000’s)

.....................

$389,699

$221,768

$272,081

$301,153

$289,403

Portfolio

turnover

rate

............................

27.09%

19.72%

11.86%

23.76%

27.45%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$27.48

$30.12

$27.43

$26.45

$19.58

Income

from

investment

operations

Net

investment

income

.........................

0.24

0.29

0.33

0.46

0.32

Net

realized

and

unrealized

gains

(losses)

...........

17.12

(2.58)

2.82

1.06

6.63

Total

from

investment

operations

....................

17.36

(2.29)

3.15

1.52

6.95

Less

distributions

from:

Net

investment

income

..........................

(0.38)

(0.35)

(0.46)

(0.54)

(0.08)

Net

asset

value,

end

year

.......................

$44.46

$27.48

$30.12

$27.43

$26.45

Total

return

...................................

63.49%

(7.58)%

11.60%

5.75%

35.59%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.72%

1.75%

1.77%

1.72%

1.86%

Expenses

net

waiver

and

payments

affiliates

.......

1.71%

1.74%

1.76%

1.71%

1.86%

Net

investment

income

...........................

0.67%

0.99%

1.16%

1.72%

1.41%

Supplemental

data

Net

assets

end

year

(000’s)

.....................

$18,182

$13,076

$17,371

$25,090

$30,427

Portfolio

turnover

rate

............................

27.09%

19.72%

11.86%

23.76%

27.45%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$30.67

$33.71

$30.45

$29.17

$21.58

Income

from

investment

operations

Net

investment

income

.........................

0.68

0.69

0.73

0.79

0.64

Net

realized

and

unrealized

gains

(losses)

...........

19.18

(2.91)

3.15

1.24

7.31

Total

from

investment

operations

....................

19.86

(2.22)

3.88

2.03

7.95

Less

distributions

from:

Net

investment

income

..........................

(0.73)

(0.82)

(0.62)

(0.75)

(0.36)

Net

asset

value,

end

year

.......................

$49.80

$30.67

$33.71

$30.45

$29.17

Total

return

....................................

65.36%

(6.56)%

12.90%

6.99%

37.24%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.64%

0.67%

0.65%

0.80%

Expenses

net

waiver

and

payments

affiliates

.......

0.59%

0.62%

0.61%

0.56%

0.65%

Net

investment

income

...........................

1.70%

2.09%

2.34%

2.65%

2.53%

Supplemental

data

Net

assets

end

year

(000’s)

.....................

$19,396

$6,894

$7,995

$12,387

$4,943

Portfolio

turnover

rate

............................

27.09%

19.72%

11.86%

23.76%

27.45%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Natural

Resources

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$30.43

$33.43

$30.23

$28.97

$21.44

Income

from

investment

operations

Net

investment

income

.........................

0.64

0.65

0.67

0.80

0.60

Net

realized

and

unrealized

gains

(losses)

...........

19.02

(2.89)

3.13

1.18

7.24

Total

from

investment

operations

....................

19.66

(2.24)

3.80

1.98

7.84

Less

distributions

from:

Net

investment

income

..........................

(0.69)

(0.76)

(0.60)

(0.72)

(0.31)

Net

asset

value,

end

year

.......................

$49.40

$30.43

$33.43

$30.23

$28.97

Total

return

....................................

65.18%

(6.68)%

12.72%

6.86%

36.93%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.71%

0.75%

0.77%

0.72%

0.85%

Expenses

net

waiver

and

payments

affiliates

.......

0.70%

0.74%

0.76%

0.71%

0.85%

Net

investment

income

...........................

1.62%

1.97%

2.15%

2.71%

2.39%

Supplemental

data

Net

assets

end

year

(000’s)

.....................

$111,640

$52,147

$76,028

$82,840

$87,707

Portfolio

turnover

rate

............................

27.09%

19.72%

11.86%

23.76%

27.45%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchases

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

97.5%

Agricultural

Products

Services

0.8%

Bunge

Global

.....................................

United

States

34,700

4,409,329

Coal

Consumable

Fuels

0.8%

Cameco

Corp.

.......................................

Canada

36,100

4,441,744

Construction

Engineering

0.5%

a,b

Cadeler

A/S

ADR

.....................................

Denmark

100,624

2,785,272

Construction

Materials

2.0%

Martin

Marietta

Materials,

Inc.

............................

United

States

17,100

10,586,097

Copper

4.4%

Antofagasta

plc

.......................................

Chile

88,600

4,296,899

Capstone

Copper

Corp.

................................

Canada

185,600

1,546,724

ERO

Copper

Corp.

....................................

Brazil

50,300

1,300,131

Freeport-McMoRan,

Inc.

................................

United

States

222,500

12,856,050

Lundin

Mining

Corp.

...................................

Chile

156,800

4,024,035

24,023,839

Diversified

Metals

Mining

9.4%

Aclara

Resources,

Inc.

.................................

United

Kingdom

549,700

1,966,755

a,c

Aclara

Resources,

Inc.

144A

............................

United

Kingdom

455,354

1,629,198

Anglo

American

plc

....................................

South

Africa

57,316

2,836,281

BHP

Group

Ltd.

ADR

..................................

Australia

159,900

12,680,070

Brazilian

Rare

Earths

Ltd.

...............................

Australia

630,000

2,258,771

Glencore

plc

.........................................

Australia

546,900

4,250,418

Hudbay

Minerals,

Inc.

..................................

Canada

67,600

1,563,656

IperionX

Ltd.

.........................................

Australia

933,700

2,848,064

Ivanhoe

Electric,

Inc.

...................................

United

States

99,000

1,270,170

Ivanhoe

Mines

Ltd.

..................................

Congo

306,600

2,482,865

Lindian

Resources

Ltd.

.................................

Australia

5,058,152

2,981,523

a,b

Materials

Corp.

....................................

United

States

68,700

4,536,948

Rio

Tinto

plc

ADR

.....................................

Australia

43,600

4,380,928

South32

Ltd.

.........................................

Australia

685,800

2,032,402

Teck

Resources

Ltd.

.................................

Canada

52,200

3,050,046

50,768,095

Electrical

Components

Equipment

0.9%

Otovo

ASA

..........................................

Norway

1,518,096

1,751,734

Energy,

Inc.

.......................................

Norway

704,800

3,383,040

5,134,774

Electronic

Equipment

Instruments

0.5%

Badger

Meter,

Inc.

.....................................

United

States

23,700

2,865,567

Fertilizers

Agricultural

Chemicals

3.8%

Corteva,

Inc.

.........................................

United

States

115,200

9,332,352

Nutrien

Ltd.

..........................................

Canada

147,500

11,210,000

20,542,352

Gold

10.7%

Agnico

Eagle

Mines

Ltd.

................................

Canada

66,300

12,467,338

Alamos

Gold,

Inc.

...................................

Canada

130,100

5,191,166

Barrick

Mining

Corp.

...................................

Canada

326,900

12,860,246

Coeur

Mining,

Inc.

.....................................

United

States

132,900

2,388,213

Equinox

Gold

Corp.

....................................

Canada

509,400

7,111,224

Newmont

Corp.

.......................................

United

States

159,700

17,741,073

57,759,260

Franklin

Strategic

Series

Schedule

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

(continued)

Heavy

Electrical

Equipment

1.1%

Forgent

Power

Solutions,

Inc.

..........................

United

States

56,700

2,133,054

Vernova,

Inc.

......................................

United

States

3,400

3,683,764

5,816,818

Industrial

Gases

4.1%

Air

Products

and

Chemicals,

Inc.

..........................

United

States

33,100

9,931,655

Linde

plc

............................................

United

States

24,000

12,027,360

21,959,015

Industrial

Machinery

Supplies

Components

0.5%

Xylem,

Inc.

..........................................

United

States

21,800

2,575,888

Integrated

Oil

Gas

15.3%

plc

ADR

.........................................

United

States

274,500

13,005,810

Chevron

Corp.

.......................................

United

States

76,140

14,718,624

Exxon

Mobil

Corp.

.....................................

United

States

135,806

20,958,940

Occidental

Petroleum

Corp.

.............................

United

States

102,200

6,191,276

Shell

plc

ADR

........................................

United

States

96,600

8,758,722

Suncor

Energy,

Inc.

....................................

Canada

131,800

9,031,504

TotalEnergies

.....................................

France

111,800

10,364,978

83,029,854

Metal,

Glass

Plastic

Containers

1.0%

Ball

Corp.

...........................................

United

States

42,000

2,565,360

Crown

Holdings,

Inc.

...................................

United

States

25,700

2,526,567

5,091,927

Oil

Gas

Drilling

0.8%

Patterson-UTI

Energy,

Inc.

..............................

United

States

210,300

2,569,866

Precision

Drilling

Corp.

.................................

Canada

17,200

1,605,276

4,175,142

Oil

Gas

Equipment

Services

7.7%

Baker

Hughes

Co.

...................................

United

States

65,100

4,535,517

Cactus,

Inc.

........................................

United

States

51,800

2,886,296

Flowco

Holdings,

Inc.

................................

United

States

77,000

1,911,910

Halliburton

Co.

.......................................

United

States

65,400

2,766,420

Liberty

Energy,

Inc.

..................................

United

States

134,600

4,548,134

Oceaneering

International,

Inc.

...........................

United

States

34,700

1,302,638

Ranger

Energy

Services,

Inc.

..........................

United

States

77,000

1,344,420

Select

Water

Solutions,

Inc.

............................

United

States

147,718

2,471,322

SLB

Ltd.

............................................

United

States

126,400

7,189,632

Solaris

Energy

Infrastructure,

Inc.

.......................

United

States

28,300

2,089,672

Technip

Energies

...................................

France

58,099

2,748,523

TechnipFMC

plc

......................................

United

Kingdom

86,500

6,536,805

Trican

Well

Service

Ltd.

.................................

Canada

249,600

1,324,854

41,656,143

Oil

Gas

Exploration

Production

17.8%

Aker

ASA

.........................................

Norway

186,100

7,275,081

Canadian

Natural

Resources

Ltd.

.........................

Canada

212,600

10,148,330

ConocoPhillips

.......................................

United

States

149,100

18,753,798

Coterra

Energy,

Inc.

...................................

United

States

316,400

11,361,924

EOG

Resources,

Inc.

..................................

United

States

94,000

13,213,580

EQT

Corp.

..........................................

United

States

115,700

6,951,256

Infinity

Natural

Resources,

Inc.

.........................

United

States

283,800

4,623,102

Matador

Resources

Co.

................................

United

States

93,300

5,918,952

Ovintiv,

Inc.

..........................................

United

States

125,900

7,749,145

Franklin

Strategic

Series

Schedule

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Oil

Gas

Exploration

Production

(continued)

Permian

Resources

Corp.

.............................

United

States

195,700

4,231,034

Tamboran

Resources

Corp.

..............................

Australia

65,400

2,360,940

Tourmaline

Oil

Corp.

...................................

Canada

57,200

2,770,832

95,357,974

Oil

Gas

Refining

Marketing

4.2%

Marathon

Petroleum

Corp.

..............................

United

States

26,500

6,579,685

Phillips

...........................................

United

States

55,600

9,960,740

Valero

Energy

Corp.

...................................

United

States

25,000

6,314,500

22,854,925

Oil

Gas

Storage

Transportation

8.5%

Cheniere

Energy,

Inc.

..................................

United

States

10,300

2,831,985

Enbridge,

Inc.

........................................

Canada

76,900

4,261,798

Kinder

Morgan,

Inc.

....................................

United

States

276,200

9,078,694

ONEOK,

Inc.

.........................................

United

States

20,800

1,923,168

Targa

Resources

Corp.

.................................

United

States

33,000

8,582,640

Energy

Corp.

......................................

Canada

114,900

7,690,257

Williams

Cos.,

Inc.

(The)

................................

United

States

145,800

11,125,998

45,494,540

Paper

Plastic

Packaging

Products

Materials

0.6%

Packaging

Corp.

America

.............................

United

States

16,700

3,564,615

Precious

Metals

Minerals

0.1%

Valterra

Platinum

Ltd.

..................................

South

Africa

5,648

458,862

Specialty

Chemicals

0.6%

Albemarle

Corp.

......................................

United

States

800

157,360

Neo

Performance

Materials,

Inc.

..........................

Canada

74,300

1,383,877

Neo

Performance

Materials,

Inc.

144A

.....................

Canada

85,000

1,583,171

3,124,408

Steel

1.4%

Reliance,

Inc.

........................................

United

States

11,400

4,132,500

Vale

ADR

......................................

Brazil

186,500

3,051,140

7,183,640

Total

Common

Stocks

(Cost

276,440,161

)

.....................................

525,660,080

Convertible

Preferred

Stocks

0.8%

Environmental

Facilities

Services

0.4%

a,d,e

Redwood

Materials,

Inc.

..............................

United

States

39,802

1,899,983

Specialty

Chemicals

0.4%

Albemarle

Corp.

7.25

................................

United

States

30,800

2,400,552

Total

Convertible

Preferred

Stocks

(Cost

3,439,983

)

............................

4,300,535

Warrants

0.1%

Integrated

Oil

Gas

0.1%

Occidental

Petroleum

Corp.

8/03/27

.......................

United

States

17,900

690,045

Total

Warrants

(Cost

88,605

)

.................................................

690,045

Franklin

Strategic

Series

Schedule

Investments

Franklin

Natural

Resources

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Principal

Amount

Value

Convertible

Bonds

0.3%

Gold

0.3%

B2Gold

Corp.

Senior

Note

144A,

2.75

2/01/30

.............

Canada

933,000

1,500,497

Total

Convertible

Bonds

(Cost

933,000

)

.......................................

1,500,497

Total

Long

Term

Investments

(Cost

280,901,749

)

...............................

532,151,157

Short

Term

Investments

3.8%

Country

Value

Money

Market

Funds

1.4%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

United

States

7,586,679

Total

Money

Market

Funds

(Cost

7,586,679

)

...................................

7,586,679

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

2.4%

Money

Market

Funds

2.4%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

United

States

12,868,615

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

12,868,615

)

................................................................

12,868,615

Total

Short

Term

Investments

(Cost

20,455,294

)

................................

20,455,294

Total

Investments

(Cost

301,357,043

)

102.5

..................................

$552,606,451

Other

Assets,

less

Liabilities

(

2.5

)

...........................................

(13,690,469)

Net

Assets

100.0%

...........................................................

$538,915,982

See

Abbreviations

page

158

The

principal

amount

stated

U.S.

dollars

unless

otherwise

indicated.

Non-income

producing.

portion

all

the

security

loan

April

30,

2026.

See

Note

1(e).

Security

was

purchased

pursuant

Rule

144A

Regulation

under

the

Securities

Act

1933.

144A

securities

may

sold

transactions

exempt

from

registration

only

qualified

institutional

buyers

public

offering

registered

under

the

Securities

Act

1933.

Regulation

securities

cannot

sold

the

United

States

without

either

effective

registration

statement

filed

pursuant

the

Securities

Act

1933,

pursuant

exemption

from

registration.

April

30,

2026,

the

aggregate

value

these

securities

was

$4,712,866,

representing

0.9%

net

assets.

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

See

Note

regarding

restricted

securities.

See

Note

3(f)

regarding

investments

affiliated

management

investment

companies.

The

rate

shown

the

annualized

seven-day

effective

yield

period

end.

See

Note

1(e)

regarding

securities

loan.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$20.25

$20.93

$17.19

$17.78

$30.08

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.15)

(0.14)

(0.09)

(0.14)

Net

realized

and

unrealized

gains

(losses)

...........

6.20

(0.54)

3.83

(0.40)

(7.89)

Total

from

investment

operations

....................

6.05

(0.68)

3.74

(0.49)

(8.03)

Less

distributions

from:

Net

realized

gains

.............................

(2.04)

—

(0.10)

(4.27)

Net

asset

value,

end

year

.......................

$24.26

$20.25

$20.93

$17.19

$17.78

Total

return

...................................

30.13%

(3.25)%

21.76%

(2.73)%

(29.53)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.07%

1.04%

1.08%

1.11%

1.03%

Expenses

net

waiver

and

payments

affiliates

.......

1.07%

1.04%

1.07%

1.10%

1.03%

d,e

Net

investment

(loss)

............................

(0.67)%

(0.64)%

(0.48)%

(0.54)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$873,630

$778,491

$881,445

$763,871

$860,536

Portfolio

turnover

rate

............................

48.01%

16.31%

15.99%

16.86%

30.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$13.75

$14.32

$11.84

$12.37

$22.57

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.22)

(0.21)

(0.16)

(0.15)

(0.25)

Net

realized

and

unrealized

gains

(losses)

...........

4.19

(0.36)

2.64

(0.28)

(5.68)

Total

from

investment

operations

....................

3.97

(0.57)

2.48

(0.43)

(5.93)

Less

distributions

from:

Net

realized

gains

.............................

(2.04)

—

(0.10)

(4.27)

Net

asset

value,

end

year

.......................

$15.68

$13.75

$14.32

$11.84

$12.37

Total

return

...................................

29.21%

(3.98)%

20.95%

(3.44)%

(30.07)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.82%

1.79%

1.83%

1.86%

1.78%

Expenses

net

waiver

and

payments

affiliates

.......

1.82%

1.79%

1.82%

1.84%

1.78%

d,e

Net

investment

(loss)

............................

(1.41)%

(1.39)%

(1.23)%

(1.28)%

(1.31)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$17,343

$19,333

$22,351

$20,551

$32,755

Portfolio

turnover

rate

............................

48.01%

16.31%

15.99%

16.86%

30.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$18.18

$18.85

$15.52

$16.10

$27.76

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.19)

(0.18)

(0.12)

(0.19)

Net

realized

and

unrealized

gains

(losses)

...........

5.57

(0.49)

3.45

(0.36)

(7.20)

Total

from

investment

operations

....................

5.38

(0.67)

3.33

(0.48)

(7.39)

Less

distributions

from:

Net

realized

gains

.............................

(2.04)

—

(0.10)

(4.27)

Net

asset

value,

end

year

.......................

$21.52

$18.18

$18.85

$15.52

$16.10

Total

return

....................................

29.79%

(3.50)%

21.46%

(2.95)%

(29.71)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.32%

1.29%

1.33%

1.36%

1.28%

Expenses

net

waiver

and

payments

affiliates

.......

1.32%

1.29%

1.32%

1.35%

1.28%

c,d

Net

investment

(loss)

............................

(0.92)%

(0.89)%

(0.73)%

(0.79)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$48,833

$40,535

$39,963

$39,777

$50,324

Portfolio

turnover

rate

............................

48.01%

16.31%

15.99%

16.86%

30.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$23.92

$24.63

$20.15

$20.73

$34.14

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.07)

(0.02)

(0.04)

Net

realized

and

unrealized

gains

(losses)

...........

7.35

(0.64)

4.50

(0.46)

(9.10)

Total

from

investment

operations

....................

7.28

(0.71)

4.48

(0.48)

(9.14)

Less

distributions

from:

Net

realized

gains

.............................

(2.04)

—

(0.10)

(4.27)

Net

asset

value,

end

year

.......................

$29.16

$23.92

$24.63

$20.15

$20.73

Total

return

....................................

30.66%

(2.88)%

22.23%

(2.29)%

(29.26)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.67%

0.66%

0.67%

0.68%

0.65%

Expenses

net

waiver

and

payments

affiliates

.......

0.66%

0.65%

0.66%

0.64%

Net

investment

(loss)

............................

(0.26)%

(0.25)%

(0.07)%

(0.10)%

(0.15)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$1,151,092

$1,113,133

$1,458,516

$1,345,064

$1,529,170

Portfolio

turnover

rate

............................

48.01%

16.31%

15.99%

16.86%

30.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$23.19

$23.91

$19.59

$20.19

$33.43

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.11)

(0.10)

(0.05)

(0.08)

Net

realized

and

unrealized

gains

(losses)

...........

7.13

(0.62)

4.37

(0.45)

(8.89)

Total

from

investment

operations

....................

7.02

(0.72)

4.32

(0.50)

(8.97)

Less

distributions

from:

Net

realized

gains

.............................

(2.04)

—

(0.10)

(4.27)

Net

asset

value,

end

year

.......................

$28.17

$23.19

$23.91

$19.59

$20.19

Total

return

....................................

30.50%

(3.05)%

22.10%

(2.50)%

(29.34)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.82%

0.79%

0.83%

0.86%

0.78%

Expenses

net

waiver

and

payments

affiliates

.......

0.82%

0.79%

0.82%

0.85%

0.77%

Net

investment

(loss)

............................

(0.42)%

(0.38)%

(0.23)%

(0.29)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$344,389

$326,857

$390,099

$341,973

$433,191

Portfolio

turnover

rate

............................

48.01%

16.31%

15.99%

16.86%

30.88%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Small

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

96.8%

Aerospace

Defense

6.2%

AAR

Corp.

........................................

United

States

426,041

47,022,145

a,b

Aevex

Corp.

.....................................

United

States

465,304

14,075,446

BWX

Technologies,

Inc.

..............................

United

States

301,978

65,345,019

Kratos

Defense

Security

Solutions,

Inc.

.................

United

States

389,378

24,550,283

150,992,893

Banks

2.1%

Financial

Corp.

..................................

United

States

442,703

23,936,951

Western

Alliance

Bancorp

.............................

United

States

337,723

27,537,934

51,474,885

Biotechnology

11.2%

Alkermes

plc

.......................................

United

States

317,039

10,687,385

Apogee

Therapeutics,

Inc.

.............................

United

States

68,595

5,685,839

Arcutis

Biotherapeutics,

Inc.

...........................

United

States

398,931

9,263,178

a,b

Ascendis

Pharma

A/S

................................

Denmark

131,118

30,075,847

Benitec

Biopharma,

Inc.

..............................

Australia

357,531

4,308,249

Bicara

Therapeutics,

Inc.

..............................

United

States

505,080

10,899,626

Bridgebio

Pharma,

Inc.

...............................

United

States

429,950

30,573,744

oncology,

Inc.

...................................

United

States

202,961

13,545,617

Cytokinetics,

Inc.

....................................

United

States

214,074

13,694,314

Dianthus

Therapeutics,

Inc.

............................

United

States

208,194

18,279,433

Dyne

Therapeutics,

Inc.

..............................

United

States

505,324

8,868,436

Mirum

Pharmaceuticals,

Inc.

...........................

United

States

162,759

15,838,078

a,b

Newamsterdam

Pharma

Co.

........................

Netherlands

296,852

8,478,093

a,b

Olema

Pharmaceuticals,

Inc.

...........................

United

States

382,477

5,511,494

Oruka

Therapeutics,

Inc.

..............................

United

States

213,110

14,578,855

Praxis

Precision

Medicines,

Inc.

........................

United

States

25,376

8,090,630

PTC

Therapeutics,

Inc.

...............................

United

States

185,128

12,044,428

Relay

Therapeutics,

Inc.

..............................

United

States

460,495

5,968,015

Revolution

Medicines,

Inc.

.............................

United

States

84,606

12,193,417

Spyre

Therapeutics,

Inc.

..............................

United

States

155,799

11,599,236

Syndax

Pharmaceuticals,

Inc.

..........................

United

States

563,259

12,070,640

Xenon

Pharmaceuticals,

Inc.

...........................

Canada

200,051

11,210,858

273,465,412

Building

Products

3.3%

AAON,

Inc.

........................................

United

States

474,302

44,257,120

Modine

Manufacturing

Co.

............................

United

States

143,981

36,661,882

80,919,002

Capital

Markets

3.7%

Evercore,

Inc.

....................................

United

States

76,714

24,647,441

Hamilton

Lane,

Inc.

................................

United

States

166,979

15,360,398

Houlihan

Lokey,

Inc.

...............................

United

States

169,911

26,293,727

Miami

International

Holdings,

Inc.

.......................

United

States

505,985

23,523,243

89,824,809

Commercial

Services

Supplies

0.0%

a,c

Optoro,

Inc.

........................................

United

States

554,878

—

Communications

Equipment

1.8%

Lumentum

Holdings,

Inc.

..............................

United

States

48,526

43,785,980

Construction

Engineering

6.3%

Arcosa,

Inc.

.......................................

United

States

543,335

68,715,577

Granite

Construction,

Inc.

.............................

United

States

441,767

60,553,003

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Construction

Engineering

(continued)

a,b

Solv

Energy,

Inc.

..................................

United

States

620,471

24,719,565

153,988,145

Construction

Materials

0.3%

Titan

America

...................................

Belgium

465,636

7,678,338

Consumer

Staples

Distribution

Retail

1.5%

Performance

Food

Group

Co.

..........................

United

States

391,733

35,475,340

Diversified

Consumer

Services

0.1%

a,b

Nerdy,

Inc.

........................................

United

States

1,988,031

1,777,697

Electrical

Equipment

1.3%

Forgent

Power

Solutions,

Inc.

........................

United

States

836,032

31,451,524

Electronic

Equipment,

Instruments

Components

4.6%

Badger

Meter,

Inc.

...................................

United

States

151,859

18,361,272

Fabrinet

..........................................

Thailand

61,026

41,709,440

Mirion

Technologies,

Inc.

............................

United

States

770,242

15,212,279

Vontier

Corp.

.......................................

United

States

1,037,534

37,226,720

112,509,711

Energy

Equipment

Services

2.6%

Cactus,

Inc.

......................................

United

States

421,346

23,477,399

Liberty

Energy,

Inc.

................................

United

States

1,155,269

39,036,540

62,513,939

Financial

Services

1.9%

Flywire

Corp.

......................................

United

States

1,029,716

13,911,463

Paymentus

Holdings,

Inc.

...........................

United

States

1,136,062

31,866,539

45,778,002

Food

Products

0.8%

Freshpet,

Inc.

......................................

United

States

285,124

19,211,655

Health

Care

Equipment

Supplies

3.1%

Ceribell,

Inc.

.......................................

United

States

767,437

15,471,530

Haemonetics

Corp.

..................................

United

States

315,365

18,950,283

Integer

Holdings

Corp.

...............................

United

States

282,278

24,984,426

Kestra

Medical

Technologies

Ltd.

.......................

United

States

792,087

16,412,042

75,818,281

Health

Care

Providers

Services

5.5%

Ensign

Group,

Inc.

(The)

..............................

United

States

124,880

23,313,847

GeneDx

Holdings

Corp.

.............................

United

States

201,666

12,682,775

Guardant

Health,

Inc.

................................

United

States

304,272

26,496,006

HealthEquity,

Inc.

...................................

United

States

292,152

23,965,229

Hinge

Health,

Inc.

.................................

United

States

348,510

15,543,546

Privia

Health

Group,

Inc.

..............................

United

States

1,272,198

31,614,120

133,615,523

Health

Care

REITs

0.0%

†

Janus

Living,

Inc.

A-1

................................

United

States

22,515

590,794

Hotel

Resort

REITs

0.7%

Pebblebrook

Hotel

Trust

..............................

United

States

1,142,568

16,053,080

Hotels,

Restaurants

Leisure

3.4%

Cava

Group,

Inc.

....................................

United

States

315,564

29,476,833

Navan,

Inc.

......................................

United

States

560,849

9,809,249

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Common

Stocks

(continued)

Hotels,

Restaurants

Leisure

(continued)

Texas

Roadhouse,

Inc.

.............................

United

States

156,627

25,215,381

Wingstop,

Inc.

......................................

United

States

115,426

18,936,790

83,438,253

Household

Durables

1.0%

M/I

Homes,

Inc.

.....................................

United

States

195,570

25,715,499

Services

0.6%

DigitalOcean

Holdings,

Inc.

............................

United

States

143,861

13,872,516

Life

Sciences

Tools

Services

1.8%

Bio-Techne

Corp.

...................................

United

States

300,718

16,635,720

Repligen

Corp.

.....................................

United

States

234,118

27,698,500

44,334,220

Machinery

3.0%

Alliance

Laundry

Holdings,

Inc.

.........................

United

States

787,743

19,985,040

RBC

Bearings,

Inc.

..................................

United

States

87,266

52,280,188

72,265,228

Media

1.6%

New

York

Times

Co.

(The)

...........................

United

States

502,038

39,676,063

Oil,

Gas

Consumable

Fuels

2.4%

Infinity

Natural

Resources,

Inc.

.......................

United

States

1,176,185

19,160,054

Matador

Resources

Co.

..............................

United

States

611,064

38,765,900

57,925,954

Passenger

Airlines

1.6%

Alaska

Air

Group,

Inc.

................................

United

States

491,479

19,221,744

Allegiant

Travel

Co.

..................................

United

States

251,350

19,012,114

38,233,858

Personal

Care

Products

0.6%

BellRing

Brands,

Inc.

.................................

United

States

870,171

15,489,044

Pharmaceuticals

3.5%

Amylyx

Pharmaceuticals,

Inc.

..........................

United

States

751,245

12,019,920

EyePoint,

Inc.

......................................

United

States

1,506,751

19,889,113

Jazz

Pharmaceuticals

plc

.............................

United

States

188,758

38,321,649

a,b

LENZ

Therapeutics,

Inc.

..............................

United

States

147,282

1,322,593

Phathom

Pharmaceuticals,

Inc.

.........................

United

States

565,898

6,338,058

Structure

Therapeutics,

Inc.

ADR

.......................

United

States

185,223

7,677,493

85,568,826

Professional

Services

1.9%

a,b

Andersen

Group,

Inc.

..............................

United

States

952,087

33,684,838

Legalzoom.com,

Inc.

.................................

United

States

1,914,759

12,350,196

46,035,034

Semiconductors

Semiconductor

Equipment

8.5%

Credo

Technology

Group

Holding

Ltd.

....................

United

States

263,118

45,785,163

Lattice

Semiconductor

Corp.

...........................

United

States

443,407

54,219,808

Onto

Innovation,

Inc.

.................................

United

States

187,795

55,410,793

SiTime

Corp.

.......................................

United

States

90,474

50,859,959

206,275,723

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

Country

Value

Common

Stocks

(continued)

Software

6.7%

a,c,d

ClearMotion,

Inc.

....................................

United

States

3,698,772

381,580

Freshworks,

Inc.

..................................

United

States

1,001,040

8,168,486

Gitlab,

Inc.

......................................

United

States

637,482

14,113,852

Intapp,

Inc.

........................................

United

States

499,138

11,205,648

JFrog

Ltd.

.........................................

United

States

332,466

15,439,721

Klaviyo,

Inc.

.....................................

United

States

941,201

18,908,728

LiveRamp

Holdings,

Inc.

..............................

United

States

532,998

15,579,532

nCino,

Inc.

........................................

United

States

1,045,050

18,267,474

Netskope,

Inc.

....................................

United

States

1,070,518

10,662,359

Procore

Technologies,

Inc.

............................

United

States

468,167

26,488,889

ServiceTitan,

Inc.

.................................

United

States

395,472

23,514,765

162,731,034

Specialty

Retail

1.5%

Boot

Barn

Holdings,

Inc.

..............................

United

States

122,754

21,046,173

Lithia

Motors,

Inc.

.................................

United

States

57,385

16,648,536

37,694,709

Textiles,

Apparel

Luxury

Goods

0.6%

Steven

Madden

Ltd.

.................................

United

States

410,498

15,418,305

Trading

Companies

Distributors

1.1%

Herc

Holdings,

Inc.

..................................

United

States

204,177

25,914,145

Total

Common

Stocks

(Cost

1,616,015,433

)

..................................

2,357,513,421

Convertible

Preferred

Stocks

2.8%

Automobile

Components

0.6%

a,c,d

Flock

Group,

Inc.

.................................

United

States

987,540

15,437,126

Communications

Equipment

0.2%

a,c,d

Astranis

Space

Technologies

Corp.

....................

United

States

311,952

5,999,994

Diversified

Consumer

Services

0.5%

a,c,d

Newsela,

Inc.

....................................

United

States

709,046

12,707,441

Software

1.3%

a,c,d

Benchling,

Inc.

...................................

United

States

382,306

1,803,489

a,c,d

Checkr,

Inc.

.....................................

United

States

1,388,889

21,170,063

a,c,d

OneTrust

LLC

....................................

United

States

625,361

5,812,569

a,c,d

OneTrust

LLC

A-1

..................................

United

States

56,457

524,753

a,c,d

Smule,

Inc.

......................................

United

States

162,712

1,603,972

30,914,846

Specialty

Retail

0.2%

a,c,d

1661,

Inc.

.......................................

United

States

3,436,485

3,786,378

Total

Convertible

Preferred

Stocks

(Cost

96,764,288

)

.........................

68,845,785

Preferred

Stocks

0.2%

Automobile

Components

0.2%

a,c,d

Tula

eTechnology,

Inc.

................................

United

States

361,111

—

a,c,d

Tula

eTechnology,

Inc.

.............................

United

States

3,611,111

3,872,916

Software

0.0%

†

a,c,d

ClearMotion,

Inc.

A-3

................................

United

States

1,037,942

149,527

a,c,d

ClearMotion,

Inc.

A-4

................................

United

States

6,477,294

848,649

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Country

Value

Preferred

Stocks

(continued)

Software

(continued)

a,c,d

Smule,

Inc.

144A

.................................

United

States

1,542,673

177,103

a,c,d

Smule,

Inc.

144A

.................................

United

States

352,675

47,866

1,223,145

Total

Preferred

Stocks

(Cost

21,224,989

)

....................................

5,096,061

Rights

0.0%

Biotechnology

0.0%

a,c,d

Chinook

Therapeutics,

Inc.,

CVR

6/30/30

.................

United

States

410,500

—

Total

Rights

(Cost

–

)

......................................................

—

Escrows

and

Litigation

Trusts

0.0%

a,c

Wheels

Experience,

Inc.,

Escrow

Account

..............

United

States

440

—

Total

Escrows

and

Litigation

Trusts

(Cost

–

)

.................................

—

Total

Long

Term

Investments

(Cost

1,734,004,710

)

...........................

2,431,455,267

Short

Term

Investments

2.6%

Country

Value

Money

Market

Funds

0.5%

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

.........................................

United

States

11,427,550

Total

Money

Market

Funds

(Cost

11,427,550

)

................................

11,427,550

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

2.1%

Money

Market

Funds

2.1%

e,f

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

.........................................

United

States

51,918,825

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

51,918,825

)

.........................................................

51,918,825

Total

Short

Term

Investments

(Cost

63,346,375

)

..............................

63,346,375

Total

Investments

(Cost

1,797,351,085

)

102.4

..............................

$2,494,801,642

Other

Assets,

less

Liabilities

(

2.4

)

.........................................

(59,514,243)

Net

Assets

100.0%

.........................................................

$2,435,287,399

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$36.02

$35.22

$29.75

$33.07

$49.66

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.12)

(0.08)

(0.01)

(0.05)

(0.25)

Net

realized

and

unrealized

gains

(losses)

...........

5.29

0.88

5.48

(1.39)

(9.42)

Total

from

investment

operations

....................

5.17

0.80

5.47

(1.44)

(9.67)

Less

distributions

from:

Net

realized

gains

.............................

(3.04)

—

(1.88)

(6.92)

Net

asset

value,

end

year

.......................

$38.15

$36.02

$35.22

$29.75

$33.07

Total

return

...................................

14.38%

2.27%

18.39%

(4.07)%

(22.83)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.85%

0.84%

0.87%

0.90%

0.85%

Expenses

net

waiver

and

payments

affiliates

.......

0.84%

0.85%

0.88%

0.84%

Net

investment

(loss)

............................

(0.29)%

(0.20)%

(0.02)%

(0.17)%

(0.54)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$2,595,224

$2,596,499

$2,822,866

$2,578,199

$3,019,703

Portfolio

turnover

rate

............................

32.96%

33.86%

37.02%

27.75%

48.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

100

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$16.04

$15.80

$13.45

$16.20

$27.98

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.18)

(0.16)

(0.11)

(0.13)

(0.32)

Net

realized

and

unrealized

gains

(losses)

...........

2.35

0.40

2.46

(0.74)

(4.54)

Total

from

investment

operations

....................

2.17

0.24

2.35

(0.87)

(4.86)

Less

distributions

from:

Net

realized

gains

.............................

(3.04)

—

(1.88)

(6.92)

Net

asset

value,

end

year

.......................

$15.17

$16.04

$15.80

$13.45

$16.20

Total

return

...................................

13.55%

1.52%

17.47%

(4.76)%

(23.43)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.60%

1.59%

1.62%

1.65%

1.60%

Expenses

net

waiver

and

payments

affiliates

.......

1.59%

1.60%

1.63%

1.59%

Net

investment

(loss)

............................

(1.04)%

(0.95)%

(0.77)%

(0.92)%

(1.29)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$41,625

$48,685

$60,281

$82,982

$110,596

Portfolio

turnover

rate

............................

32.96%

33.86%

37.02%

27.75%

48.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Total

return

does

not

reflect

sales

commissions

contingent

deferred

sales

charges,

applicable.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

101

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$30.04

$29.44

$24.93

$28.11

$43.32

Income

from

investment

operations

Net

investment

(loss)

..........................

(0.18)

(0.14)

(0.07)

(0.11)

(0.32)

Net

realized

and

unrealized

gains

(losses)

...........

4.40

0.74

4.58

(1.19)

(7.97)

Total

from

investment

operations

....................

4.22

0.60

4.51

(1.30)

(8.29)

Less

distributions

from:

Net

realized

gains

.............................

(3.04)

—

(1.88)

(6.92)

Net

asset

value,

end

year

.......................

$31.22

$30.04

$29.44

$24.93

$28.11

Total

return

....................................

14.07%

2.04%

18.09%

(4.30)%

(23.00)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

1.10%

1.09%

1.12%

1.15%

1.10%

Expenses

net

waiver

and

payments

affiliates

.......

1.09%

1.10%

1.13%

1.09%

Net

investment

(loss)

............................

(0.54)%

(0.45)%

(0.27)%

(0.42)%

(0.79)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$34,130

$33,211

$37,276

$34,371

$38,761

Portfolio

turnover

rate

............................

32.96%

33.86%

37.02%

27.75%

48.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

102

Year

Ended

April

30,

2026

2025

2024

2023

2022

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$44.32

$43.23

$36.39

$39.84

$58.24

Income

from

investment

operations

Net

investment

income

(loss)

....................

0.02

0.07

0.14

0.08

(0.10)

Net

realized

and

unrealized

gains

(losses)

...........

6.52

1.07

6.70

(1.65)

(11.38)

Total

from

investment

operations

....................

6.54

1.14

6.84

(1.57)

(11.48)

Less

distributions

from:

Net

investment

income

..........................

—

(0.05)

—

Net

realized

gains

.............................

(3.04)

—

(1.88)

(6.92)

Total

distributions

...............................

(3.04)

(0.05)

—

(1.88)

(6.92)

Net

asset

value,

end

year

.......................

$47.82

$44.32

$43.23

$36.39

$39.84

Total

return

....................................

14.79%

2.61%

18.82%

(3.70)%

(22.57)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.51%

0.53%

0.51%

Expenses

net

waiver

and

payments

affiliates

.......

0.50%

0.49%

0.50%

Net

investment

income

(loss)

......................

0.05%

0.14%

0.34%

0.23%

(0.19)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$437,861

$437,087

$539,962

$451,447

$540,509

Portfolio

turnover

rate

............................

32.96%

33.86%

37.02%

27.75%

48.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Financial

Highlights

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

103

Year

Ended

April

30,

2026

2025

2024

2023

2022

Advisor

Class

Per

operating

performance

(for

outstanding

throughout

the

year)

Net

asset

value,

beginning

year

...................

$42.85

$41.79

$35.22

$38.68

$56.79

Income

from

investment

operations

Net

investment

income

(loss)

....................

(0.02)

0.02

0.09

0.03

(0.15)

Net

realized

and

unrealized

gains

(losses)

...........

6.30

1.04

6.48

(1.61)

(11.04)

Total

from

investment

operations

....................

6.28

1.06

6.57

(1.58)

(11.19)

Less

distributions

from:

Net

investment

income

..........................

—

(—)

—

Net

realized

gains

.............................

(3.04)

—

(1.88)

(6.92)

Net

asset

value,

end

year

.......................

$46.09

$42.85

$41.79

$35.22

$38.68

Total

return

....................................

14.69%

2.52%

18.68%

(3.81)%

(22.65)%

Ratios

average

net

assets

Expenses

before

waiver

and

payments

affiliates

......

0.60%

0.59%

0.62%

0.65%

0.60%

Expenses

net

waiver

and

payments

affiliates

.......

0.59%

0.60%

0.63%

0.59%

Net

investment

income

(loss)

......................

(0.04)%

0.05%

0.23%

0.08%

(0.28)%

Supplemental

data

Net

assets,

end

year

(000’s)

.....................

$423,911

$416,492

$435,671

$469,050

$532,573

Portfolio

turnover

rate

............................

32.96%

33.86%

37.02%

27.75%

48.89%

The

amount

shown

for

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

Operations

for

the

period

due

the

timing

sales

and

repurchas-

the

Fund’s

relation

income

earned

and/or

fluctuating

fair

value

the

investments

the

Fund.

Based

average

daily

outstanding.

Amount

rounds

less

than

$0.01

per

share.

Benefit

waiver

and

payments

affiliates

rounds

less

than

0.01%.

Benefit

expense

reduction

rounds

less

than

0.01%.

Excludes

the

value

portfolio

activity

result

in-kind

transactions.

See

Note

for

prior

year

information.

Franklin

Strategic

Series

Schedule

Investments,

April

30,

2026

Franklin

Small-Mid

Cap

Growth

Fund

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

104

Country

Value

Common

Stocks

94.1%

Aerospace

Defense

7.5%

Arxis,

Inc.

.......................................

United

States

222,303

7,780,605

Axon

Enterprise,

Inc.

.................................

United

States

172,026

69,113,166

BWX

Technologies,

Inc.

..............................

United

States

250,270

54,155,925

Howmet

Aerospace,

Inc.

..............................

United

States

551,035

133,923,546

264,973,242

Banks

1.2%

Fifth

Third

Bancorp

..................................

United

States

851,600

43,227,216

Biotechnology

5.4%

Alnylam

Pharmaceuticals,

Inc.

..........................

United

States

158,320

48,998,457

Ascendis

Pharma

A/S

................................

Denmark

72,761

16,689,918

oncology,

Inc.

...................................

United

States

200,480

13,380,035

Insmed,

Inc.

.......................................

United

States

235,515

32,107,760

Ionis

Pharmaceuticals,

Inc.

............................

United

States

167,060

12,489,406

Natera,

Inc.

........................................

United

States

324,800

66,960,768

190,626,344

Building

Products

1.6%

AAON,

Inc.

........................................

United

States

597,073

55,712,882

Capital

Markets

7.1%

Ares

Management

Corp.

............................

United

States

411,312

48,288,029

LPL

Financial

Holdings,

Inc.

...........................

United

States

139,948

46,760,825

MSCI,

Inc.

.......................................

United

States

109,440

64,723,910

Nasdaq,

Inc.

.......................................

United

States

443,736

40,783,776

Robinhood

Markets,

Inc.

............................

United

States

220,553

16,076,108

Tradeweb

Markets,

Inc.

.............................

United

States

296,376

33,564,582

250,197,230

Construction

Engineering

3.2%

Comfort

Systems

USA,

Inc.

............................

United

States

61,667

113,482,697

Consumer

Staples

Distribution

Retail

1.8%

Casey's

General

Stores,

Inc.

...........................

United

States

60,400

49,657,860

Performance

Food

Group

Co.

..........................

United

States

136,395

12,351,931

62,009,791

Electrical

Equipment

6.8%

AMETEK,

Inc.

......................................

United

States

265,345

62,488,747

Vertiv

Holdings

Co.

................................

United

States

537,785

176,656,995

239,145,742

Entertainment

2.1%

ROBLOX

Corp.

...................................

United

States

1,338,959

73,990,874

Financial

Services

0.8%

Paymentus

Holdings,

Inc.

...........................

United

States

954,396

26,770,808

Ground

Transportation

1.5%

Old

Dominion

Freight

Line,

Inc.

.........................

United

States

244,488

51,936,586

Health

Care

Equipment

Supplies

2.9%

Dexcom,

Inc.

.......................................

United

States

1,035,580

61,668,789

IDEXX

Laboratories,

Inc.

..............................

United

States

75,336

42,248,429

103,917,218

Health

Care

Providers

Services

2.0%

Cencora,

Inc.

......................................

United

States

231,186

71,207,600

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

105

Country

Value

Common

Stocks

(continued)

Health

Care

Technology

0.7%

Veeva

Systems,

Inc.

...............................

United

States

166,734

26,005,502

Hotels,

Restaurants

Leisure

11.6%

Cava

Group,

Inc.

....................................

United

States

461,336

43,093,396

DoorDash,

Inc.

...................................

United

States

269,209

45,402,098

Hilton

Worldwide

Holdings,

Inc.

.........................

United

States

266,715

86,434,330

Marriott

International,

Inc.

...........................

United

States

151,450

54,777,950

Royal

Caribbean

Cruises

Ltd.

..........................

United

States

410,701

108,326,496

Texas

Roadhouse,

Inc.

.............................

United

States

278,884

44,897,535

Wingstop,

Inc.

......................................

United

States

167,672

27,508,268

410,440,073

Household

Durables

0.8%

NVR,

Inc.

.........................................

United

States

4,717

29,791,959

Independent

Power

and

Renewable

Electricity

Producers

2.1%

Vistra

Corp.

........................................

United

States

475,201

75,005,726

Interactive

Media

Services

0.3%

Pinterest,

Inc.

....................................

United

States

437,741

8,605,988

Services

2.2%

Cloudflare,

Inc.

...................................

United

States

370,301

75,900,596

Life

Sciences

Tools

Services

1.0%

Repligen

Corp.

.....................................

United

States

296,425

35,070,042

Machinery

0.9%

Xylem,

Inc.

........................................

United

States

275,637

32,569,268

Media

1.3%

New

York

Times

Co.

(The)

...........................

United

States

585,501

46,272,144

Oil,

Gas

Consumable

Fuels

3.3%

Cheniere

Energy,

Inc.

................................

United

States

88,393

24,303,655

Targa

Resources

Corp.

...............................

United

States

358,980

93,363,519

117,667,174

Professional

Services

1.5%

Verisk

Analytics,

Inc.

...............................

United

States

291,117

53,708,175

Real

Estate

Management

Development

0.6%

Jones

Lang

LaSalle,

Inc.

..............................

United

States

62,023

19,731,377

Residential

REITs

0.4%

Equity

LifeStyle

Properties,

Inc.

.........................

United

States

197,734

12,514,585

Semiconductors

Semiconductor

Equipment

6.2%

Credo

Technology

Group

Holding

Ltd.

....................

United

States

166,730

29,012,687

Lattice

Semiconductor

Corp.

...........................

United

States

435,091

53,202,928

Monolithic

Power

Systems,

Inc.

.........................

United

States

74,528

120,318,748

Onto

Innovation,

Inc.

.................................

United

States

57,063

16,837,009

219,371,372

Software

7.5%

Arteris,

Inc.

........................................

United

States

1,456,454

42,178,908

Datadog,

Inc.

....................................

United

States

519,477

68,669,664

Fair

Isaac

Corp.

....................................

United

States

33,957

34,805,925

Guidewire

Software,

Inc.

..............................

United

States

237,365

32,848,942

Manhattan

Associates,

Inc.

............................

United

States

102,085

14,076,501

a,b,c

Plaid,

Inc.

.......................................

United

States

30,940

7,493,068

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

106

Country

Value

Common

Stocks

(continued)

Software

(continued)

Procore

Technologies,

Inc.

............................

United

States

552,941

31,285,402

Tyler

Technologies,

Inc.

...............................

United

States

98,554

33,620,711

264,979,121

Specialty

Retail

6.8%

AutoZone,

Inc.

.....................................

United

States

15,400

57,042,062

Burlington

Stores,

Inc.

................................

United

States

178,660

57,172,987

Carvana

Co.

.....................................

United

States

200,070

79,187,706

Tractor

Supply

Co.

..................................

United

States

1,377,833

48,361,938

241,764,693

Technology

Hardware,

Storage

Peripherals

1.0%

Everpure,

Inc.

....................................

United

States

504,541

36,049,454

Trading

Companies

Distributors

2.0%

Fastenal

Co.

.......................................

United

States

417,357

18,751,850

United

Rentals,

Inc.

..................................

United

States

54,446

52,259,449

71,011,299

Total

Common

Stocks

(Cost

2,246,150,861

)

..................................

3,323,656,778

Convertible

Preferred

Stocks

2.7%

Aerospace

Defense

0.8%

a,b,c

Anduril

Industries,

Inc.

..............................

United

States

414,483

28,578,603

Diversified

Consumer

Services

0.2%

a,b,c

Newsela,

Inc.

....................................

United

States

423,782

7,594,972

Semiconductors

Semiconductor

Equipment

0.2%

a,b,c

Phononic

Devices,

Inc.

F-S

...........................

United

States

2,970,061

6,046,293

Software

1.5%

a,b,c

Benchling,

Inc.

...................................

United

States

347,106

1,637,436

a,b,c

Databricks,

Inc.

..................................

United

States

227,829

43,523,409

a,b,c

OneTrust

LLC

....................................

United

States

767,526

7,133,956

52,294,801

Total

Convertible

Preferred

Stocks

(Cost

65,344,990

)

.........................

94,514,669

Preferred

Stocks

0.0%

†

Semiconductors

Semiconductor

Equipment

0.0%

†

a,b,c

Phononic

Devices,

Inc.

G-2-S

..........................

United

States

513,050

1,824,398

a,b,c

Phononic,

Inc.

H-S

..................................

United

States

117,763

584,839

2,409,237

Total

Preferred

Stocks

(Cost

460,692

)

.......................................

2,409,237

Warrants

0.0%

†

Semiconductors

Semiconductor

Equipment

0.0%

†

a,b,c

Phononic,

Inc.

H-S

12/31/29

..........................

United

States

23,970

32,191

a,b,c

Phononic,

Inc.

H-S-X

12/31/29

........................

United

States

47,104

63,259

95,450

Total

Warrants

(Cost

44,031

)

...............................................

95,450

Franklin

Strategic

Series

Schedule

Investments

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

107

Country

Principal

Amount

Value

Convertible

Bonds

0.0%

†

Semiconductors

Semiconductor

Equipment

0.0%

†

b,c

Phononic,

Inc.

5.31

11/30/27

........................

United

States

66,235

79,754

b,c

Phononic,

Inc.

H-S

5.31

11/30/27

....................

United

States

66,235

81,015

b,c

Phononic,

Inc.

H-S

5.31

11/30/27

....................

United

States

66,235

82,304

243,073

Total

Convertible

Bonds

(Cost

198,704

)

.....................................

243,073

Senior

Floating

Rate

Interests

0.1%

Semiconductors

Semiconductor

Equipment

0.1%

b,e

Phononic,

Inc.,

First

Lien,

Term

Loan,

PIK,

12/31/27

...

United

States

1,174,043

1,010,160

Total

Senior

Floating

Rate

Interests

(Cost

1,127,742

)

.........................

1,010,160

Escrows

and

Litigation

Trusts

0.0%

a,b

Blaize

Events

Media,

Inc.,

Escrow

Account

...............

United

States

343,168

—

a,b

Blaize

Holdings,

Inc.,

Escrow

Account

....................

United

States

114,150

—

Total

Escrows

and

Litigation

Trusts

(Cost

–

)

.................................

—

Total

Long

Term

Investments

(Cost

2,313,327,020

)

...........................

3,421,929,367

Short

Term

Investments

2.1%

Country

Value

Money

Market

Funds

2.1%

f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

3.593

.........................................

United

States

74,959,605

Total

Money

Market

Funds

(Cost

74,959,605

)

................................

74,959,605

Total

Short

Term

Investments

(Cost

74,959,605

)

..............................

74,959,605

Total

Investments

(Cost

2,388,286,625

)

99.0

................................

$3,496,888,972

Other

Assets,

less

Liabilities

1.0

...........................................

35,863,907

Net

Assets

100.0%

.........................................................

$3,532,752,879

Franklin

Strategic

Series

Financial

Statements

Assets

and

Liabilities

April

30,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

109

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

.................................

$494,620,655

$3,207,346,313

$2,048,330,579

Cost

Non-controlled

affiliates

(Note

)

......................

57,612,300

234,995,433

67,506,254

Value

Unaffiliated

issuers

(Includes

securities

loaned

$31,272,989,

$—

and

$19,958,958,

respectively)

..........................

$1,014,410,785

$3,120,796,519

$4,344,609,983

Value

Non-controlled

affiliates

(Note

)

......................

57,612,300

234,995,433

67,506,254

Cash

..................................................

93,044

—

35,681

Foreign

currency,

value

(cost

$113,

$167,265

and

$–,

respectively)

116

169,148

—

Receivables:

Investment

securities

sold

.................................

313,172

1,844,303

105,530,395

Receivable

for

sales

TBA

securities

(Note

)

................

–

21,612,812

–

Capital

sold

......................................

450,599

2,714,380

1,230,540

Dividends

and

interest

...................................

229,019

27,901,807

223,896

Deposits

with

brokers

for:

OTC

derivative

contracts

................................

—

1,040,000

—

TBA

transactions

(Note

1c)

..............................

—

2,003,000

—

Futures

contracts

......................................

—

5,198,156

—

Centrally

cleared

swap

contracts

..........................

—

237,200

—

Variation

margin

centrally

cleared

swap

contracts

.............

—

145,230

—

Unrealized

appreciation

OTC

forward

exchange

contracts

........

—

28,768

—

Unrealized

appreciation

unfunded

commitments

(Note

)

........

311,468

—

Total

assets

........................................

1,073,420,503

3,418,686,756

4,519,136,749

Liabilities:

Payables:

Investment

securities

purchased

............................

2,798,212

52,335,774

11,844,549

Payable

for

purchases

TBA

securities

(Note

)

...............

—

590,170,941

—

Capital

redeemed

.................................

656,925

1,461,089

89,323,250

Management

fees

.......................................

510,798

852,087

1,881,512

Distribution

fees

........................................

135,819

460,215

770,434

Transfer

agent

fees

......................................

261,242

704,098

826,168

Trustees'

fees

and

expenses

...............................

247

190

Variation

margin

futures

contracts

.........................

—

37,617

—

Funds

advanced

custodian

...............................

—

411,174

—

OTC

swap

contracts

(upfront

receipts

$–,

$1,419,283

and

$–,

respectively)

............................................

—

1,291,228

—

Unrealized

depreciation

OTC

swap

contracts

..................

—

123,303

—

Options

written,

value

(premiums

received

$–,

$1,504,514

and

$–,

respectively)

............................................

—

1,611,285

—

Unrealized

depreciation

OTC

forward

exchange

contracts

........

—

54,638

—

TBA

sale

commitments,

value

(proceeds

$–,

$21,612,812

and

$–)

(Note

1c)

...............................................

—

21,469,454

—

Payable

upon

return

securities

loaned

(Note

)

................

31,626,763

—

19,950,750

Unrealized

depreciation

unfunded

loan

commitments

(Note

)

.....

—

Accrued

expenses

and

other

liabilities

.........................

70,227

384,301

139,219

Total

liabilities

.......................................

36,060,233

671,367,486

124,735,936

Net

assets,

value

...............................

$1,037,360,270

$2,747,319,270

$4,394,400,813

Net

assets

consist

of:

Paid-in

capital

...........................................

$455,619,045

$3,901,923,879

$1,889,321,150

Total

distributable

earnings

(losses)

...........................

581,741,225

(1,154,604,609)

2,505,079,663

Net

assets,

value

...............................

$1,037,360,270

$2,747,319,270

$4,394,400,813

Franklin

Strategic

Series

Financial

Statements

Assets

and

Liabilities

(continued)

April

30,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

110

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Class

Net

assets,

value

.....................................

$861,885,514

$2,044,094,482

$3,569,378,187

outstanding

......................................

4,963,881

246,238,308

78,797,446

Net

asset

value

per

a,b

................................

$173.63

$8.30

$45.30

Maximum

offering

price

per

(net

asset

value

per

94.50%,

96.25%

and

94.50%,

respectively)

..........................

$183.74

$8.62

$47.94

Class

Net

assets,

value

.....................................

$22,571,899

$45,167,848

$67,998,689

outstanding

......................................

146,448

5,433,207

2,563,799

Net

asset

value

and

maximum

offering

price

per

a,b

..........

$154.13

$8.31

$26.52

Class

Net

assets,

value

.....................................

$—

$33,525,075

$25,147,654

outstanding

......................................

—

4,060,396

634,251

Net

asset

value

and

maximum

offering

price

per

...........

$—

$8.26

$39.65

Class

R6:

Net

assets,

value

.....................................

$13,158,425

$282,963,666

$408,527,105

outstanding

......................................

69,918

34,022,747

7,307,798

Net

asset

value

and

maximum

offering

price

per

...........

$188.20

$8.32

$55.90

Advisor

Class:

Net

assets,

value

.....................................

$139,744,432

$341,568,199

$323,349,178

outstanding

......................................

758,068

41,079,666

5,972,224

Net

asset

value

and

maximum

offering

price

per

...........

$184.34

$8.31

$54.14

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Net

asset

value

per

may

not

recalculate

due

rounding.

Franklin

Strategic

Series

Financial

Statements

Assets

and

Liabilities

(continued)

April

30,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

111

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Assets:

Investments

securities:

Cost

Unaffiliated

issuers

.................................

$280,901,749

$1,734,004,710

$2,313,327,020

Cost

Non-controlled

affiliates

(Note

)

......................

20,455,294

63,346,375

74,959,605

Value

Unaffiliated

issuers

(Includes

securities

loaned

$12,988,816,

$52,624,457

and

$—,

respectively)

..........................

$532,151,157

$2,431,455,267

$3,421,929,367

Value

Non-controlled

affiliates

(Note

)

......................

20,455,294

63,346,375

74,959,605

Cash

..................................................

106,660

—

6,840

Foreign

currency,

value

(cost

$81,082,

$–

and

$166,

respectively)

81,170

—

171

Receivables:

Investment

securities

sold

(Includes

securities

loaned

$–,

$659,884

and

$–

respectively)

.....................................

13,633

8,024,054

39,684,882

Capital

sold

......................................

475,050

532,160

646,247

Dividends

and

interest

...................................

265,462

173,340

725,732

European

Union

tax

reclaims

(Note

)

.......................

65,052

—

Due

from

custodian

......................................

—

1,198,750

—

Total

assets

........................................

553,613,478

2,504,729,946

3,537,952,844

Liabilities:

Payables:

Investment

securities

purchased

............................

947,270

1,064,280

—

Capital

redeemed

.................................

414,660

12,960,156

2,185,246

Management

fees

.......................................

212,261

1,220,464

1,290,045

Distribution

fees

........................................

93,950

210,207

568,976

Transfer

agent

fees

......................................

117,327

532,122

986,223

Trustees'

fees

and

expenses

...............................

134

216

Funds

advanced

custodian

...............................

—

198,324

—

Payable

upon

return

securities

loaned

(Note

)

................

12,868,615

53,117,575

—

Accrued

expenses

and

other

liabilities

.........................

43,314

139,285

169,259

Total

liabilities

.......................................

14,697,496

69,442,547

5,199,965

Net

assets,

value

...............................

$538,915,982

$2,435,287,399

$3,532,752,879

Net

assets

consist

of:

Paid-in

capital

...........................................

$413,537,403

$1,422,126,677

$2,353,006,343

Total

distributable

earnings

(losses)

...........................

125,378,579

1,013,160,722

1,179,746,536

Net

assets,

value

...............................

$538,915,982

$2,435,287,399

$3,532,752,879

Franklin

Strategic

Series

Financial

Statements

Assets

and

Liabilities

(continued)

April

30,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

112

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

Net

assets,

value

.....................................

$389,698,549

$873,630,329

$2,595,224,470

outstanding

......................................

8,546,118

36,008,822

68,026,218

Net

asset

value

per

a,b

................................

$45.60

$24.26

$38.15

Maximum

offering

price

per

(net

asset

value

per

94.50%)

..............................................

$48.25

$25.67

$40.37

Class

Net

assets,

value

.....................................

$18,181,552

$17,343,081

$41,625,312

outstanding

......................................

408,925

1,106,148

2,743,939

Net

asset

value

and

maximum

offering

price

per

a,b

..........

$44.46

$15.68

$15.17

Class

Net

assets,

value

.....................................

$—

$48,833,074

$34,130,448

outstanding

......................................

—

2,269,284

1,093,125

Net

asset

value

and

maximum

offering

price

per

...........

$—

$21.52

$31.22

Class

R6:

Net

assets,

value

.....................................

$19,396,026

$1,151,091,967

$437,861,376

outstanding

......................................

389,460

39,474,981

9,157,059

Net

asset

value

and

maximum

offering

price

per

...........

$49.80

$29.16

$47.82

Advisor

Class:

Net

assets,

value

.....................................

$111,639,855

$344,388,948

$423,911,273

outstanding

......................................

2,259,931

12,227,193

9,198,420

Net

asset

value

and

maximum

offering

price

per

...........

$49.40

$28.17

$46.09

Redemption

price

equal

net

asset

value

less

contingent

deferred

sales

charges,

applicable.

Net

asset

value

per

may

not

recalculate

due

rounding.

Franklin

Strategic

Series

Financial

Statements

Operations

for

the

year

ended

April

30,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

113

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$2,384,

$–

and

$58,437,

respectively)

Unaffiliated

issuers

......................................

$3,565,905

$114,279

$14,836,331

Non-controlled

affiliates

(Note

)

...........................

728,255

4,256,023

1,104,970

Interest:

Unaffiliated

issuers

......................................

—

127,813,171

—

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

...................

(517,768)

12,459

(697,248)

Non-controlled

affiliates

(Note

)

...........................

1,177,751

4,804

759,446

Total

investment

income

.................................

4,954,143

132,200,736

16,003,499

Expenses:

Management

fees

(Note

)

.................................

5,380,598

9,035,652

24,268,214

Distribution

fees:

(Note

)

Class

..............................................

1,834,630

5,057,427

9,150,742

Class

..............................................

202,109

305,467

762,908

Class

..............................................

—

171,023

130,470

Transfer

agent

fees:

(Note

)

Class

..............................................

896,470

2,825,585

3,072,065

Class

..............................................

24,857

65,466

64,243

Class

..............................................

—

47,724

21,932

Class

.............................................

14,443

63,726

72,616

Advisor

Class

..........................................

144,189

420,845

279,522

Custodian

fees

..........................................

4,447

17,900

24,954

Reports

shareholders

fees

................................

79,251

282,439

213,823

Registration

and

filing

fees

..................................

88,876

119,636

91,715

Professional

fees

.........................................

107,254

288,620

138,980

Trustees'

fees

and

expenses

................................

9,894

27,991

48,949

Marketplace

lending

fees

(Note

)

...........................

—

546,604

—

Other

..................................................

29,668

180,249

118,357

Total

expenses

.......................................

8,816,686

19,456,354

38,459,490

Expenses

waived/paid

affiliates

(Note

and

)

............

(91,716)

(2,187,640)

(86,905)

Net

expenses

.......................................

8,724,970

17,268,714

38,372,585

Net

investment

income

(loss)

..........................

(3,770,827)

114,932,022

(22,369,086)

Franklin

Strategic

Series

Financial

Statements

Operations

(continued)

for

the

year

ended

April

30,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

114

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

132,431,714

(16,231,490)

719,356,046

Non-controlled

affiliates

(Note

)

..........................

—

338,565

—

Written

options

.........................................

—

1,771,572

—

Foreign

currency

transactions

..............................

1,922

11,840

—

Forward

exchange

contracts

...............................

—

(339,383)

—

Futures

contracts

.......................................

—

(2,182,585)

—

TBA

sale

commitments

...................................

—

3,064,225

—

Swap

contracts

.........................................

—

(2,182,807)

—

Net

realized

gain

(loss)

................................

132,433,636

(15,750,063)

719,356,046

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

301,996,177

23,149,775

137,236,875

Non-controlled

affiliates

(Note

)

..........................

—

(1,061,917)

—

Translation

other

assets

and

liabilities

denominated

foreign

currencies

...........................................

(5)

(1,721)

—

Unfunded

commitments

(Note

)

...........................

311,468

—

Unfunded

loan

commitments

(Note

)

........................

—

(24)

—

Written

options

.........................................

—

(106,771)

—

Forward

exchange

contracts

...............................

—

144,902

—

Futures

contracts

.......................................

—

(2,216,598)

—

TBA

sale

commitments

...................................

—

143,358

—

Swap

contracts

.........................................

—

(252,763)

—

Change

deferred

tax

benefit

.............................

—

(287,971)

—

Net

change

unrealized

appreciation

(depreciation)

..........

302,307,640

19,510,270

137,236,875

Net

realized

and

unrealized

gain

(loss)

..........................

434,741,276

3,760,207

856,592,921

Net

increase

(decrease)

net

assets

resulting

from

operations

........

$430,970,449

$118,692,229

$834,223,835

Franklin

Strategic

Series

Financial

Statements

Operations

(continued)

for

the

year

ended

April

30,

2026

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

115

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Investment

income:

Dividends:

(net

foreign

taxes

$404,047,

$–

and

$–,

respectively)

Unaffiliated

issuers

......................................

$8,508,739

$7,808,790

$17,622,223

Non-controlled

affiliates

(Note

)

...........................

372,469

1,668,928

2,630,648

Interest:

Unaffiliated

issuers

......................................

77,907

—

103,876

Income

from

securities

loaned:

Unaffiliated

entities

(net

fees

and

rebates)

...................

(375,984)

(1,569,913)

(273,403)

Non-controlled

affiliates

(Note

)

...........................

459,264

1,928,892

373,347

Other

income

(Note

1i)

.....................................

63,005

—

Total

investment

income

.................................

9,105,400

9,836,697

20,456,691

Expenses:

Management

fees

(Note

)

.................................

1,993,550

15,248,855

17,048,347

Distribution

fees:

(Note

)

Class

..............................................

715,888

2,129,580

6,850,563

Class

..............................................

154,305

188,919

477,203

Class

..............................................

—

226,686

176,179

Transfer

agent

fees:

(Note

)

Class

..............................................

406,877

1,552,754

3,361,698

Class

..............................................

22,096

34,519

58,772

Class

..............................................

—

82,586

43,191

Class

.............................................

8,143

351,158

176,088

Advisor

Class

..........................................

104,662

630,027

550,080

Custodian

fees

..........................................

5,009

13,779

28,126

Reports

shareholders

fees

................................

39,138

177,980

269,042

Registration

and

filing

fees

..................................

45,900

94,571

71,909

Professional

fees

.........................................

89,132

120,188

127,925

Trustees'

fees

and

expenses

................................

4,395

27,021

41,028

Other

..................................................

47,453

58,197

85,375

Total

expenses

.......................................

3,636,548

20,936,820

29,365,526

Expenses

waived/paid

affiliates

(Note

and

)

............

(44,498)

(163,897)

(185,250)

Net

expenses

.......................................

3,592,050

20,772,923

29,180,276

Net

investment

income

(loss)

..........................

5,513,350

(10,936,226)

(8,723,585)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

25,796,403

384,753,801

264,955,392

Foreign

currency

transactions

..............................

15,489

—

Net

realized

gain

(loss)

................................

25,811,892

384,753,801

264,955,392

Net

change

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

162,285,186

270,177,712

245,936,725

Translation

other

assets

and

liabilities

denominated

foreign

currencies

...........................................

(1,700)

—

Net

change

unrealized

appreciation

(depreciation)

..........

162,283,486

270,177,712

245,936,729

Net

realized

and

unrealized

gain

(loss)

..........................

188,095,378

654,931,513

510,892,121

Net

increase

(decrease)

net

assets

resulting

from

operations

........

$193,608,728

$643,995,287

$502,168,536

Includes

gains

from

redemption

in-kind.

See

Note

11.

Franklin

Strategic

Series

Financial

Statements

Changes

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

116

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(3,770,827)

$(2,590,143)

$114,932,022

$119,294,173

Net

realized

gain

(loss)

............

132,433,636

73,170,652

(15,750,063)

(38,648,459)

Net

change

unrealized

appreciation

(depreciation)

.................

302,307,640

(94,432,247)

19,510,270

93,676,023

Net

increase

(decrease)

net

assets

resulting

from

operations

430,970,449

(23,851,738)

118,692,229

174,321,737

Distributions

shareholders:

Class

........................

(83,604,188)

(58,160,749)

(86,978,395)

(95,594,345)

Class

........................

(2,442,259)

(2,094,936)

(1,820,476)

(2,412,060)

Class

........................

—

(1,393,969)

(1,613,364)

Class

.......................

(1,454,759)

(718,012)

(7,647,352)

(6,689,754)

Advisor

Class

...................

(13,121,806)

(10,336,804)

(13,660,378)

(13,313,957)

Total

distributions

shareholders

.....

(100,623,012)

(71,310,501)

(111,500,570)

(119,623,480)

Capital

transactions:

(Note

)

Class

........................

(2,040,920)

(38,843,761)

47,867,343

(133,993,404)

Class

........................

(1,895,840)

(7,618,126)

(4,826,778)

(16,499,318)

Class

........................

—

(1,542,895)

(1,822,597)

Class

.......................

2,873,926

(2,735,688)

152,958,148

(5,214,894)

Advisor

Class

...................

659,401

(22,539,823)

77,426,224

(14,309,594)

Total

capital

transactions

.......

(403,433)

(71,737,398)

271,882,042

(171,839,807)

Net

increase

(decrease)

net

assets

.....................

329,944,004

(166,899,637)

279,073,701

(117,141,550)

Net

assets:

Beginning

year

..................

707,416,266

874,315,903

2,468,245,569

2,585,387,119

End

year

......................

$1,037,360,270

$707,416,266

$2,747,319,270

$2,468,245,569

Franklin

Strategic

Series

Financial

Statements

Changes

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

integral

part

these

financial

statements.

Annual

Report

117

Franklin

Growth

Opportunities

Fund

Franklin

Natural

Resources

Fund

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(22,369,086)

$(13,326,269)

$5,513,350

$5,936,093

Net

realized

gain

(loss)

............

719,356,046

635,930,982

25,811,892

40,252,844

Net

change

unrealized

appreciation

(depreciation)

.................

137,236,875

(271,511,394)

162,283,486

(69,393,925)

Net

increase

(decrease)

net

assets

resulting

from

operations

834,223,835

351,093,319

193,608,728

(23,204,988)

Distributions

shareholders:

Class

........................

(612,663,084)

(369,084,244)

(4,817,152)

(5,502,509)

Class

........................

(19,015,638)

(12,622,834)

(160,066)

(182,237)

Class

........................

(4,900,231)

(3,415,709)

—

Class

.......................

(56,931,350)

(34,745,269)

(219,156)

(189,377)

Advisor

Class

...................

(48,211,191)

(28,758,057)

(1,265,420)

(1,473,063)

Total

distributions

shareholders

.....

(741,721,494)

(448,626,113)

(6,461,794)

(7,347,186)

Capital

transactions:

(Note

)

Class

........................

122,601,424

13,326,108

29,895,817

(27,661,206)

Class

........................

(2,901,437)

(6,183,112)

(2,366,776)

(2,902,346)

Class

........................

(123,716)

(2,540,912)

—

Class

.......................

16,732,533

(1,469,348)

7,011,085

(408,268)

Advisor

Class

...................

5,135,808

16,896,851

23,343,521

(18,065,354)

Total

capital

transactions

.......

141,444,612

20,029,587

57,883,647

(49,037,174)

Net

increase

(decrease)

net

assets

.....................

233,946,953

(77,503,207)

245,030,581

(79,589,348)

Net

assets:

Beginning

year

..................

4,160,453,860

4,237,957,067

293,885,401

373,474,749

End

year

......................

$4,394,400,813

$4,160,453,860

$538,915,982

$293,885,401

Franklin

Strategic

Series

Financial

Statements

Changes

Net

Assets

(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

integral

part

these

financial

statements.

118

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Year

Ended

April

30,

2026

Year

Ended

April

30,

2025

Increase

(decrease)

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(10,936,226)

$(11,377,359)

$(8,723,585)

$(5,524,130)

Net

realized

gain

(loss)

............

384,753,801

144,656,230

264,955,392

307,720,259

Net

change

unrealized

appreciation

(depreciation)

.................

270,177,712

(178,380,414)

245,936,729

(192,741,089)

Net

increase

(decrease)

net

assets

resulting

from

operations

643,995,287

(45,101,543)

502,168,536

109,455,040

Distributions

shareholders:

Class

........................

(72,040,761)

—

(202,149,326)

—

Class

........................

(2,329,693)

—

(7,705,668)

—

Class

........................

(4,258,273)

—

(3,099,620)

—

Class

.......................

(82,542,335)

—

(27,526,306)

(584,008)

Advisor

Class

...................

(24,999,071)

—

(27,635,120)

(36,409)

Total

distributions

shareholders

.....

(186,170,133)

—

(268,116,040)

(620,417)

Capital

transactions:

(Note

)

Class

........................

(55,079,343)

(82,255,977)

(165,615,063)

(300,799,425)

Class

........................

(4,584,322)

(2,290,623)

(5,737,002)

(13,148,119)

Class

........................

933,597

3,114,250

(603,930)

(5,075,773)

Class

.......................

(193,227,775)

(332,174,220)

(35,047,398)

(122,929,048)

Advisor

Class

...................

(48,928,040)

(55,318,476)

(26,269,429)

(30,964,132)

Total

capital

transactions

.......

(300,885,883)

(468,925,046)

(233,272,822)

(472,916,497)

Net

increase

(decrease)

net

assets

.....................

156,939,271

(514,026,589)

779,674

(364,081,874)

Net

assets:

Beginning

year

..................

2,278,348,128

2,792,374,717

3,531,973,205

3,896,055,079

End

year

......................

$2,435,287,399

$2,278,348,128

$3,532,752,879

$3,531,973,205

Franklin

Strategic

Series

119

franklintempleton.com

Annual

Report

Notes

Financial

Statements

Organization

and

Significant

Accounting

Policies

Franklin

Strategic

Series

(Trust)

registered

under

the

Investment

Company

Act

1940

(1940

Act)

open-end

management

investment

company,

consisting

of t

welve

separate

funds,

six

which

are

included

this

report (Funds).

The

Funds

the

accounting

and

reporting

guidance

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

classes

offered

within

each

the

Funds

are

indicated

below.

Class

automatically

convert

Class

monthly

basis,

after

they

have

been

held

for

years.

Each

class

may

differ

its initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

matters

affecting

single

class,

its

exchange

privilege

and

fees

due

differing

arrangements

for

distribution

and

transfer

agent

fees.

Class

Advisor

Class

Franklin

Biotechnology

Discovery

Fund

Franklin

Natural

Resources

Fund

Class

Advisor

Class

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

The

following

summarizes

the Funds'

significant

accounting

policies

Financial

Instrument

Valuation

The Funds'

investments

financial

instruments

are

carried

fair

value

daily.

Fair

value

the

price

that

would

received

sell

asset

paid

transfer

liability

orderly

transaction

between

market

participants

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

each

business

day

p.m.

Eastern

time

the

regularly

scheduled

the

New

York

Stock

Exchange

(NYSE),

whichever

earlier. Under

compliance

policies

and

procedures

approved

the

Trust’s

Board

Trustees

(the

Board),

the

Board

has

designated

the

Funds’

investment

manager

the

valuation

designee

and

has

responsibility

for

oversight

valuation.

The

investment

manager

assisted

the

Funds'

administrator

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

determine

fair

value.

Equity

securities

and

derivative

financial instruments listed

exchange

the

NASDAQ

National

Market

System

are

valued

the

last

quoted

sale

price

the

official

closing

price of

the

day,

respectively. Foreign

equity

securities

are

valued

the

trading

the

foreign

stock

exchange

which

the

security

primarily

traded,

p.m.

Eastern

time.

The

value

then

converted

into

its

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

day

that

the

value

the

security

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

multiple

markets

multiple

exchanges

are

valued

according

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

relationships

similar

securities.

Debt

securities

generally

trade

the

OTC

market rather

than

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

determine

fair

value.

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

market-based

approach

through

which

quotes

from

market

makers

are

used

determine

fair

value.

instances

where

sufficient

market

activity

may

not

exist

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

principal

repayments,

underlying

collateral,

and

other

unique

security

features

order

estimate

the

relevant

cash

flows,

which

are

then

discounted

calculate

the

fair

value.

Securities

denominated

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

the

foreign

exchange

rate

effect

p.m.

Eastern

time

the

date

that

the

values

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

the

closing

NAV.

Certain

derivative

financial

instruments

are

centrally

cleared

trade

the

OTC

market.

The

Funds' pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

determine

the

fair

value

those

instruments.

The

Funds' net

Franklin

Strategic

Series

Notes

Financial

Statements

120

franklintempleton.com

Annual

Report

benefit

obligation

under

the

derivative

contract,

measured

the

fair

value

the

contract,

included

net

assets.

The

Funds

have

procedures

determine

the

fair

value

financial

instruments

for

which

market

prices

are

not

reliable

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

market-based

approach

which

may

use

comparable

assets

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

determine

the

fair

value

the

investment.

income-based

valuation

approach

may

also

used

which

the

anticipated

future

cash

flows

the

investment

are

discounted

calculate

fair

value.

Discounts

may

also

applied

due

the

nature

duration

any

restrictions

the

disposition

the

investments.

Due

the

inherent

uncertainty

valuations

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

active

market

existed.

Trading

securities

foreign

securities

stock

exchanges

and

OTC

markets

may

completed

before

p.m.

Eastern

time.

addition,

trading

certain

foreign

markets

may

not

take

place

every

Funds'

business

day.

Events

can occur

between

the

time

which

trading

foreign

security

completed

and

p.m.

Eastern

time

that

might

call

into

question

the

reliability

the

value

portfolio

security

held

the

Fund.

result,

differences

may

arise

between

the

value

the

Funds'

portfolio

securities

determined

the

foreign

market

and

the

latest

indications

value

p.m.

Eastern

time.

order

minimize

the

potential

for

these

differences,

independent

pricing

service

may

used

adjust

the

value

the

Funds'

portfolio

securities

the

latest

indications

fair

value

p.m.

Eastern

time.

April

30,

2026,

certain

securities

may

have

been

fair

valued

using

these

procedures,

which

case

the

securities

were

categorized

Level

within

the

fair

value

hierarchy

(referred

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

information.

When

the

last

day

the

reporting

period

non-business

day,

certain

foreign

markets

may

open

those

days

that

the

Funds'

NAV

not

calculated,

which

could

result

differences

between

the

value

the

Funds'

portfolio

securities

the

last

business

day

and

the

last

calendar

day

the

reporting

period.

Any

security

valuation

changes

due

open

foreign

market

are

adjusted

and

reflected

the

Funds

for

financial

reporting

purposes.

Foreign

Currency

Translation

Portfolio

securities

and

other

assets

and

liabilities

denominated

foreign

currencies

are

translated

into

U.S.

dollars

based

the

exchange

rate

such

currencies

against

U.S.

dollars

the

date

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

facilitate

transactions

denominated

foreign

currency.

Purchases

and

sales

securities,

income

and

expense

items

denominated

foreign

currencies

are

translated

into

U.S.

dollars

the

exchange

rate

effect

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

foreign

currencies

contain

risks

that

those

currencies

will

decline

value

relative

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

reliability

foreign

exchange

rates

used

convert

the

U.S.

dollar

equivalent

value.

such

event

occurs,

the

foreign

exchange

rate

will

valued

fair

value

using

procedures

established

and

approved

the

Board.

The

Funds

not

separately

report

the

effect

changes

foreign

exchange

rates

from

changes

market

prices

securities

held.

Such

changes

are

included

net

realized

and

unrealized

gain

loss

from

investments

the

Statements

Operations.

Realized

foreign

exchange

gains

losses

arise

from

sales

foreign

currencies,

currency

gains

losses

realized

between

the

trade

and

settlement

dates

securities

transactions

and

the

difference

between

the

recorded

amounts

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

the

amounts

actually

received

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

foreign

exchange

rates

foreign

denominated

assets

and

liabilities

other

than

investments

securities

held

the

end

the

reporting

period.

Securities

Purchased

When-Issued,

Forward Commitment or

Delayed

Delivery

Basis

and

TBA

Basis

Certain

all

Funds

may

purchase

securities

when-

issued,

forward

commitment

delayed

delivery and to-

be-announced

(TBA)

basis,

with

payment

and

delivery

scheduled

for

future

date.

These

transactions

are

subject

Organization

and

Significant

Accounting

Policies

(continued)

Financial

Instrument

Valuation

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

121

franklintempleton.com

Annual

Report

market

fluctuations

and

are

subject

the

risk

that

the

value

delivery

may

less

than

the

trade

date

purchase

price.

Although

the

Funds

will

generally

purchase

these

securities

with

the

intention

holding

the

securities, they

may

sell

the

securities

before

the

settlement

date.

Collateral

has

been

pledged

and/or

received

for

open

TBA

trades.

These

types

securities

may

considered

unfunded

and

the

Fund

may

obligated

perform

such

agreements

future

date.

Unfunded

commitments

are

marked

market

daily

and

any

unrealized

appreciation

depreciation

included

the

Statement

Assets

and

Liabilities

and

the

Statement

Operations.

April

30,

2026,

unfunded

commitments

were

follows:

Derivative

Financial

Instruments

Certain

all

Funds

invested

derivative

financial

instruments

order

manage

risk

gain

exposure

various

other

investments

markets.

Derivatives

are

financial

contracts

based

underlying

notional

amount,

require

initial

investment

initial

net

investment

that

smaller

than

would

normally

required

have

similar

response

changes

market

factors,

and

require

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

the

counterparty

fulfill

their

obligations

under

the

terms

the

contract,

the

potential

for

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

gains

losses

excess

the

amounts

shown

the

Statements

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

these

contracts

for

the

period

are

included

the

Statements

Operations.

Derivative

counterparty

credit

risk

managed

through

formal

evaluation

the

creditworthiness

all

potential

counterparties.

Certain

all

Funds

attempt

reduce

their

exposure

counterparty

credit

risk

OTC

derivatives,

whenever

possible,

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

collateral

requirements,

events

default,

early

termination.

Termination

events

applicable

the

counterparty

include

certain

deteriorations

the

credit

quality

the

counterparty.

Termination

events

applicable

the

Funds

include

failure

the

Funds

maintain

certain

net

asset

levels

and/or

limit

the

decline

net

assets

over

various

periods

time.

the

event

default

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

net

and

close-out

all

transactions

traded,

whether

not

arising

under

the

ISDA

agreement,

one

net

amount

payable

one

counterparty

the

other.

However,

absent

event

default

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

the

Statements

Assets

and

Liabilities.

Early

termination

the

counterparty

may

result

immediate

payment

the

Funds

any

net

liability

owed

that

counterparty

under

the

ISDA

agreement.

April

30,

2026,

certain

all

Funds

had

OTC

derivatives

net

liability

position

counterparty

and

the

aggregate

value

collateral

pledged

for

such

contracts

was

follows:

Collateral

requirements

differ

type

derivative.

Collateral

initial

margin

requirements

are

set

the

broker

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

held

the

exchange

the

broker and

can

the

form

cash

and/or

securities.

For

OTC

derivatives

traded

under

ISDA

master

agreement,

posting

collateral

required

either

the

Fund

the

applicable

counterparty

the

total

net

exposure

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

$250,000,

and

can

vary

depending

the

counterparty

and

the

type

agreement.

Generally,

collateral

determined

the

Fund

business

each

day

and

any

additional

collateral

required

due

changes

derivative

values

may

delivered

the

Fund

the

counterparty

the

business

day,

within

few

business

days.

Collateral

pledged

and/or

received

the

Fund

for

OTC

derivatives,

any,

held

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

the

form

cash

and/or

securities.

Unrestricted

Investment

Unfunded

Commitment

Franklin

Biotechnology

Discovery

Fund

Candid

Therapeutics,

Inc.,

$3,046,668

Obsidian

Therapeutics,

Inc.,

$3,667,504

$6,714,172

Net

Liability

Position

Aggregate

Value

Collateral

Pledged

Franklin

Core

Plus

Bond

Fund

$1,457,743

$1,300,000

Organization

and

Significant

Accounting

Policies

(continued)

Securities

Purchased

When-Issued,

Forward Commitment or

Delayed

Delivery

Basis

and

TBA

Basis

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

122

franklintempleton.com

Annual

Report

cash

may

invested

according

the

Funds'

investment

objectives.

the

extent

that

the

amounts

due

the

Fund

from

its

counterparties

are

not

subject

collateralization

are

not

fully

collateralized,

the

Fund

bears

the

risk

loss

from

counterparty

non-performance.

Certain

all

Funds

entered

into

exchange

traded

futures

contracts

primarily

manage

and/or

gain

exposure

interest

rate

risk. A

futures

contract

agreement

between

the

Fund

and

counterparty

buy

sell

asset

specified

price

future

date.

Required

initial

margins

are

pledged

the

Fund,

and

the

daily

change

fair

value

accounted

for

variation

margin

payable

receivable

the

Statements

Assets

and

Liabilities.

Futures

contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

Certain

all

Funds

entered

into

OTC

forward

exchange

contracts

primarily

manage

and/or

gain

exposure

certain

foreign

currencies.

forward

exchange

contract

agreement

between

the

Fund

and

counterparty

buy

sell

foreign

currency at

specific

exchange

rate

future

date. Forward

exchange

contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

Certain

all

Funds

entered

into

credit

default

swap

contracts

primarily

manage

and/or

gain

exposure

credit

risk.

credit

default

swap

agreement

between

the

Fund

and

counterparty

whereby

the

buyer

the

contract

receives

credit

protection

and

the

seller

the

contract

guarantees

the

credit

worthiness

referenced

debt

obligation.

These

agreements

may

privately

negotiated

the

over-the-counter

market

(OTC

credit

default

swaps)

may

executed

multilateral

trade

facility

platform,

such

registered

exchange

(centrally

cleared

credit

default

swaps).

The

underlying

referenced

debt

obligation

may

single

issuer

corporate

sovereign

debt,

credit

index,

basket

issuers

indices,

tranche

credit

index

basket

issuers

indices.

the

event

default

the

underlying

referenced

debt

obligation,

the

buyer

entitled

receive

the

notional

amount

the

credit

default

swap

contract

from

the

seller

exchange

for

the

referenced

debt

obligation,

net

settlement

amount

equal

the

notional

amount

the

credit

default

swap

less

the

recovery

value

the

referenced

debt

obligation,

other

agreed

upon

amount.

For

centrally

cleared

credit

default

swaps,

required

initial

margins

are

pledged

the

Fund,

and

the

daily

change

fair

value

accounted

for

variation

margin

payable

receivable

the

Consolidated

Statements

Assets

and

Liabilities.

Over

the

term

the

contract,

the

buyer

pays

the

seller

periodic

stream

payments,

provided

that

event

default

has

occurred.

Such

periodic

payments

are

accrued

daily

unrealized

appreciation or

depreciation

until

the

payments

are

made,

which

time

they

are

realized.

Upfront

payments

and

receipts

are

reflected

the Statements

Assets

and

Liabilities

and

represent

compensating

factors

between

stated

terms

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

the

contract

realized

gain

loss

the

Statements

Operations.

Credit

default

swap

contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

Certain

all

Funds

purchased

wrote

exchange

traded and/or

OTC option

contracts

primarily

manage

and/

gain

exposure

equity

volatility

and

credit risk.

option

contract

entitling

the

holder

purchase

sell

specific

amount

units

asset

notional

amount

swap

(swaption),

specified

price.

When

option

purchased

written,

amount

equal

the

premium

paid

received

recorded

asset

liability,

respectively.

Upon

exercise

option,

the

acquisition

cost

sales

proceeds

the

underlying

investment

adjusted

any

premium

received

paid.

Upon

expiration

option,

any

premium

received

paid

recorded

realized

gain

loss.

Upon

closing

option

other

than

through

expiration

exercise,

the

difference

between

the

premium

received

paid

and

the

cost

the

position

recorded

realized

gain

loss.

Option

contracts

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

See

Note

regarding

other

derivative

information.

Securities

Lending

Certain

all

Funds

participate

agency

based

securities

lending

program

earn

additional

income.

The

Fund

receives

collateral

the

form

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

amount

equal

least

102%

the

fair

value

the

loaned

securities.

Collateral

maintained

over

the

life

the

loan

amount

not

less

than

100%

the

fair

value

loaned

securities,

determined

the

Fund

business

each

day;

any

additional

collateral

required

Organization

and

Significant

Accounting

Policies

(continued)

Derivative

Financial

Instruments

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

123

franklintempleton.com

Annual

Report

due

changes

security

values

delivered

the

Fund

the

business

day.

Any

cash

collateral

received

deposited

into

joint

cash

account

with

other

funds

and

used

invest

money

market

fund

managed

Franklin

Advisers,

Inc.,

affiliate

the

Funds,

and/or

uninvested

cash

included

due

from

custodian

the

Statements

Assets

and

Liabilities. The

Fund

may

receive

income

from

the

investment

cash

collateral,

addition

lending

fees

paid

the

borrower.

Income

from

securities

loaned,

net

fees

paid

the

securities

lending

agent

and/or

third-

party

vendor,

reported

separately

the Statements of

Operations.

The

Fund

bears

the

market

risk

with

respect

any

cash

collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

its

obligations

the

Fund.

the

borrower

defaults

its

obligation

return

the

securities

loaned,

the

Fund

has

the

right

repurchase

the

securities

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

indemnify

the

Fund

the

event

default

third

party

borrower.

Securities

loan

outstanding

period

end,

any,

are

listed

the

Funds'

Schedules

Investments.

Mortgage

Dollar

Rolls

Certain

all

Funds

enter

into

mortgage

dollar

rolls,

typically

TBA

basis.

Mortgage

dollar

rolls

are

agreements

between

the

Fund

and

financial

institution

where

the

Fund

sells

(or

buys)

mortgage-backed

securities

for

delivery

specified

date

and

simultaneously

contracts

repurchase

(or

sell)

substantially

similar

(same

type,

coupon,

and

maturity)

securities

future

date

and

predetermined

price.

Gains

losses

are

realized

the

initial

sale,

and

the

difference

between

the

repurchase

price

and

the

sale

price

recorded

unrealized

gain

loss

the

Fund

upon

entering

into

the

mortgage

dollar

roll.

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

not

entitled

principal

and

interest

paid

the

mortgage

backed

securities.

Transactions

mortgage

dollar

rolls

are

accounted

for

purchases

and

sales

and

may

result

increase

the

Fund's

portfolio

turnover

rate.

The

risks

mortgage

dollar

roll

transactions

include

the

potential

inability

the

counterparty

fulfill

its

obligations.

Senior

Floating

Rate

Interests

Certain

all

Funds

invest

senior

secured

corporate

loans

that

pay

interest

rates

which

are

periodically

reset

reference

base

lending

rate

plus

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

designated

U.S.

bank

the

Secured

Overnight

Financing

Rate

(SOFR).

Senior

secured

corporate

loans

often

require

prepayment

principal

from

excess

cash

flows

the

discretion

the

borrower.

result,

actual

maturity

may

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

which

the

Funds

invest

are

generally

readily

marketable,

but

may

subject

certain

restrictions

resale.

Marketplace

Lending

Certain

all

Funds

invest in

loans

obtained

through

marketplace

lending.

Marketplace

lending,

sometimes

referred

peer-to-peer

lending,

method

financing

which

platform

facilitates

the

borrowing

and

lending

money.

considered

alternative

traditional

forms

debt

financing.

Prospective

borrowers

are

required

provide

certain

financial

information

the

platform,

including,

but

not

limited

to,

the

intended

purpose

the

loan,

income,

employment

information,

credit

score,

debt-

to-income

ratio,

credit

history

(including

defaults

and

delinquencies)

and

home

ownership

status.

Based

this

and

other

information,

the

platform

assigns

its

own

credit

rating

the

borrower

and

sets

the

interest

rate

for

the

requested

loan.

The

platform

then

posts

the

borrowing

requests

online,

giving

investors

the

opportunity

purchase

the

loans

based

factors

such

the

interest

rates

and

expected

yields

the

loans,

the

borrower

background

data,

and

the

credit

rating

assigned

the

platform.

When

the

Funds

invest

these

loans,

they

usually

purchase

all

rights,

title

and

interest

the

loans

pursuant

loan

purchase

agreement

directly

from

the

platform.

The

platform

third-party

servicer

typically

continues

service

the

loans,

collecting

payments

and

distributing

them

the

Funds,

less

any

servicing

fees

assessed.

The

servicer

typically

responsible

for

taking

actions

against

borrower

the

event

default

the

loan.

Servicing

fees,

along

with

other

administration

fees,

are

included

marketplace

lending

fees

the

Statements

Operations.

The

Funds,

investors

loan,

would

entitled

receive

payment

only

from

the

borrower

and

would

not

able

recover

Organization

and

Significant

Accounting

Policies

(continued)

Securities

Lending

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

124

franklintempleton.com

Annual

Report

any

deficiency

from

the

platform,

except

under

very

narrow

circumstances.

The

loans

which

the

Funds

may

invest

are

unsecured.

Income

and

Deferred

Taxes

is each

Fund's

policy

qualify

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

distribute

shareholders

substantially

all

its

taxable

income

and

net

realized

gains

relieve

from

federal

income

and excise

taxes.

result,

provision

for

U.S.

federal

income

taxes

required.

The

Funds

may

subject

foreign

taxation

income

received,

capital

gains

the

sale

securities

and

certain

foreign

currency

transactions

the

foreign

jurisdictions

which the

Funds invest.

Foreign

taxes,

any,

are

recorded

based

the

tax

regulations

and

rates

that

exist

the

foreign

markets

which

the

Funds

invest.

some

cases,

the

Funds

may

entitled

reclaim

all

portion

such

taxes,

and

such

reclaim

amounts,

any,

are

reflected

dividend

receivable

the

Statements

Assets

and

Liabilities

and

dividend

income

the

Statements

Operations.

many

cases,

however,

the

Funds

may

not

receive

such

amounts

for

extended

period

time,

depending

the

country

investment.

When

capital

gain

tax

determined

apply, certain

or all Funds record

estimated

deferred

tax

liability

amount

that

would

payable

the

securities

were

disposed

the

valuation

date.

result

several

court

cases,

certain

countries

across

the

European

Union, certain

all Funds

filed

additional

tax

reclaims

for

previously

withheld

taxes

dividends

earned

those

countries

(EU

reclaims). Income

recognized,

any,

for

reclaims

reflected

other

income

the

Statements

Operations

and

any

receivable,

any,

reflected

European

Union

tax

reclaims

the

Statements

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

other

expenses in

the

Statements

Operations.

When

uncertainty

exists

the

ultimate

resolution

these

proceedings,

the

likelihood

receipt

these

reclaims,

and

the

potential

timing

payment,

amounts

are

reflected

the

financial

statements.

For

U.S.

income

tax

purposes,

reclaims

received

the

Funds,

any,

reduce

the

amount

foreign

taxes

Fund

shareholders

can

use

tax

deductions

or credits

their

income

tax

returns.

Each

Fund

may

recognize

income

tax

liability

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

less

than

50%

probability

that

will

sustained

upon

examination

the

tax

authorities

based

its

technical

merits.

April

30,

2026, each

Fund

has

determined

that

tax

liability

required

its

financial

statements

uncertain

tax

positions

for

any

open

tax

years

(or

expected

taken

future

tax

years).

The

Funds'

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

examination

the

Internal

Revenue

Service

and

state

departments

revenue.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

trade

date.

Realized

gains

and

losses

security

transactions

are

determined

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

any)

and

estimated

expenses

are

accrued

daily.

Amortization

premium

and

accretion

discount

debt

securities

are

included

interest

income.

Paydown

gains

and

losses

are

recorded

adjustment

interest

income.

Certain

all

Funds

may

receive

other

income

from

investments

senior

secured

corporate

loans

unfunded

commitments,

including

amendment

fees,

consent

fees

commitment

fees.

These

fees

are

recorded

income

when

received

the

Funds.

Facility

fees

are

recognized

income

over

the

expected

term

the

loan.

Dividend

income

recorded

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

not

available.

such

cases,

the

dividend

recorded

soon

the

information

received

the

Funds.

Distributions

shareholders

are

recorded

the

ex-dividend

date.

Distributable

earnings

are

determined

according

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

accordance

with

U.S.

GAAP.

These

differences

may

permanent

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

reflect

their

tax

character.

These

reclassifications

have

impact

net

assets

the

results

operations.

Temporary

differences

are

not

reclassified,

they

may

reverse

subsequent

periods.

Organization

and

Significant

Accounting

Policies

(continued)

Marketplace

Lending

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

125

franklintempleton.com

Annual

Report

Common

expenses

incurred

the

Trust

are

allocated

among

the

Funds

based

the

ratio

net

assets

each

Fund

the

combined

net

assets

the

Trust

based

the

ratio

number

shareholders

each

Fund

the

combined

number

shareholders

the

Trust.

Fund

specific

expenses

are

charged

directly

the

Fund

that

incurred

the

expense.

Realized

and

unrealized gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

each

class

based

upon

the

relative

proportion

net

assets

each

class.

Differences

per

distributions

class

are

generally

due

differences

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

decreases

the

security's

interest

accruals,

face

amount,

principal

redemption

value,

amounts

corresponding

the

rate

inflation

measured

index.

Any

increase

decrease

the

face

amount

principal

redemption

value

will

included

interest

income in

the

Statements of

Operations.

Accounting

Estimates

The

preparation

financial

statements

accordance

with

U.S.

GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

reported

amounts

assets

and

liabilities

the

date

the

financial

statements

and

the

amounts

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Guarantees

and

Indemnifications

Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

the Trust against

certain

liabilities

arising

out

the

performance

their

duties

the

Trust.

Additionally,

the

normal

course

business,

the Trust,

behalf

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

unknown

this

would

involve

future

claims

that

may

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

loss

remote.

Beneficial

Interest

April

30,

2026,

there

were

unlimited

number

authorized

(without

par value).

Transactions

the

Funds'

were

follows:

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

452,826

$71,581,297

39,993,641

$335,013,734

issued

reinvestment

distributions

..........

471,712

79,384,475

9,897,465

82,552,750

redeemed

...............................

(1,027,573)

(153,006,692)

(44,244,021)

(369,699,141)

Net

increase

(decrease)

..........................

(103,035)

$(2,040,920)

5,647,085

$47,867,343

Year

ended

April

30,

2025

sold

...................................

332,355

$44,053,974

22,481,003

$186,387,121

issued

reinvestment

distributions

..........

458,575

55,359,208

10,959,008

90,763,522

redeemed

...............................

(1,051,742)

(138,256,943)

(49,596,623)

(411,144,047)

Net

increase

(decrease)

..........................

(260,812)

$(38,843,761)

(16,156,612)

$(133,993,404)

Class

Organization

and

Significant

Accounting

Policies

(continued)

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

126

franklintempleton.com

Annual

Report

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

26,661

$3,563,880

1,562,595

$13,103,380

issued

reinvestment

distributions

..........

16,176

2,422,884

211,384

1,764,984

redeemed

..............................

(60,742)

(7,882,604)

(2,356,029)

(19,695,142)

Net

increase

(decrease)

..........................

(17,905)

$(1,895,840)

(582,050)

$(4,826,778)

Year

ended

April

30,

2025

sold

...................................

19,046

$2,353,553

753,774

$6,257,260

issued

reinvestment

distributions

..........

19,065

2,077,266

281,445

2,334,099

redeemed

..............................

(99,243)

(12,048,945)

(3,024,923)

(25,090,677)

Net

increase

(decrease)

..........................

(61,132)

$(7,618,126)

(1,989,704)

$(16,499,318)

Class

Year

ended

April

30,

2026

sold

...................................

—

$—

1,260,218

$10,482,036

issued

reinvestment

distributions

..........

—

167,768

1,392,158

redeemed

...............................

—

(1,616,566)

(13,417,089)

Net

increase

(decrease)

..........................

—

$—

(188,580)

$(1,542,895)

Year

ended

April

30,

2025

sold

...................................

—

$—

1,024,893

$8,467,666

issued

reinvestment

distributions

..........

—

195,600

1,611,622

redeemed

...............................

—

(1,443,030)

(11,901,885)

Net

increase

(decrease)

..........................

—

$—

(222,537)

$(1,822,597)

Class

Year

ended

April

30,

2026

sold

...................................

62,072

$10,713,579

22,290,109

$186,905,014

issued

reinvestment

distributions

..........

7,740

1,410,180

776,337

6,488,881

redeemed

...............................

(53,986)

(9,249,833)

(4,827,510)

(40,435,747)

Net

increase

(decrease)

..........................

15,826

$2,873,926

18,238,936

$152,958,148

Year

ended

April

30,

2025

sold

...................................

16,934

$2,422,327

2,929,164

$24,331,763

issued

reinvestment

distributions

..........

5,289

685,392

691,054

5,733,962

redeemed

...............................

(41,454)

(5,843,407)

(4,242,650)

(35,280,619)

Net

increase

(decrease)

..........................

(19,231)

$(2,735,688)

(622,432)

$(5,214,894)

Advisor

Class

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

127

franklintempleton.com

Annual

Report

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Amount

Advisor

Class

Year

ended

April

30,

2026

sold

...................................

203,282

$34,026,257

17,131,235

$143,549,189

issued

reinvestment

distributions

..........

72,286

12,903,771

1,200,545

10,031,756

redeemed

...............................

(288,166)

(46,270,627)

(9,102,941)

(76,154,721)

Net

increase

(decrease)

..........................

(12,598)

$659,401

9,228,839

$77,426,224

Year

ended

April

30,

2025

sold

...................................

220,200

$30,743,369

6,280,226

$52,139,748

issued

reinvestment

distributions

..........

80,296

10,216,149

1,138,066

9,442,088

redeemed

...............................

(477,052)

(63,499,341)

(9,142,865)

(75,891,430)

Net

increase

(decrease)

..........................

(176,556)

$(22,539,823)

(1,724,573)

$(14,309,594)

Franklin

Growth

Opportunities

Fund

Franklin

Natural

Resources

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

4,683,801

$223,489,392

2,541,925

$100,691,102

issued

reinvestment

distributions

..........

13,485,705

596,472,754

129,315

4,725,177

redeemed

...............................

(14,790,752)

(697,360,722)

(2,004,183)

(75,520,462)

Net

increase

(decrease)

..........................

3,378,754

$122,601,424

667,057

$29,895,817

Year

ended

April

30,

2025

sold

...................................

5,031,942

$250,874,920

925,041

$27,838,462

issued

reinvestment

distributions

..........

7,302,641

359,874,058

194,399

5,414,009

redeemed

...............................

(12,005,894)

(597,422,870)

(2,024,155)

(60,913,677)

Net

increase

(decrease)

..........................

328,689

$13,326,108

(904,715)

$(27,661,206)

Class

Year

ended

April

30,

2026

sold

...................................

291,912

$8,795,031

86,187

$3,223,767

issued

reinvestment

distributions

..........

729,395

18,942,404

4,463

159,430

redeemed

..............................

(1,032,731)

(30,638,872)

(157,628)

(5,749,973)

Net

increase

(decrease)

..........................

(11,424)

$(2,901,437)

(66,978)

$(2,366,776)

Year

ended

April

30,

2025

sold

...................................

356,759

$12,096,577

94,231

$2,813,600

issued

reinvestment

distributions

..........

387,090

12,580,477

6,634

180,856

redeemed

..............................

(910,033)

(30,860,166)

(201,667)

(5,896,802)

Net

increase

(decrease)

..........................

(166,184)

$(6,183,112)

(100,802)

$(2,902,346)

Class

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

128

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund

Franklin

Natural

Resources

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

74,393

$3,207,758

—

$—

issued

reinvestment

distributions

..........

126,458

4,900,231

—

redeemed

...............................

(193,793)

(8,231,705)

—

Net

increase

(decrease)

..........................

7,058

$(123,716)

—

$—

Year

ended

April

30,

2025

sold

...................................

93,018

$4,125,976

—

$—

issued

reinvestment

distributions

..........

77,139

3,415,709

—

redeemed

...............................

(234,362)

(10,082,597)

—

Net

increase

(decrease)

..........................

(64,205)

$(2,540,912)

—

$—

Class

Year

ended

April

30,

2026

sold

...................................

1,978,710

$110,802,413

235,117

$9,847,873

issued

reinvestment

distributions

..........

1,043,128

56,881,762

5,498

219,156

redeemed

in-kind

(Not

11)

..................

(1,529,052)

(85,474,006)

—

redeemed

...............................

(1,136,364)

(65,477,636)

(75,943)

(3,055,944)

Net

increase

(decrease)

..........................

356,422

$16,732,533

164,672

$7,011,085

Year

ended

April

30,

2025

sold

...................................

455,037

$26,879,630

60,752

$1,999,816

issued

reinvestment

distributions

..........

591,573

34,713,486

6,248

189,377

redeemed

...............................

(1,077,443)

(63,062,464)

(79,392)

(2,597,461)

Net

increase

(decrease)

..........................

(30,833)

$(1,469,348)

(12,392)

$(408,268)

Advisor

Class

Advisor

Class

Year

ended

April

30,

2026

sold

...................................

570,840

$32,104,980

831,085

$34,993,830

issued

reinvestment

distributions

..........

890,650

47,044,169

31,875

1,260,631

redeemed

...............................

(1,331,401)

(74,013,341)

(316,660)

(12,910,940)

Net

increase

(decrease)

..........................

130,089

$5,135,808

546,300

$23,343,521

Year

ended

April

30,

2025

sold

...................................

841,794

$48,289,642

299,136

$9,817,889

issued

reinvestment

distributions

..........

487,232

27,840,441

48,788

1,467,544

redeemed

...............................

(1,042,578)

(59,233,232)

(908,746)

(29,350,787)

Net

increase

(decrease)

..........................

286,448

$16,896,851

(560,822)

$(18,065,354)

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

129

franklintempleton.com

Annual

Report

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

3,101,248

$71,345,735

4,205,625

$165,499,049

issued

reinvestment

distributions

..........

2,972,039

70,229,288

5,216,816

198,030,341

redeemed

...............................

(8,512,645)

(196,654,366)

(13,485,096)

(529,144,453)

Net

increase

(decrease)

..........................

(2,439,358)

$(55,079,343)

(4,062,655)

$(165,615,063)

Year

ended

April

30,

2025

sold

...................................

4,955,470

$109,647,310

5,367,190

$203,572,054

redeemed

...............................

(8,615,492)

(191,903,287)

(13,437,841)

(504,371,479)

Net

increase

(decrease)

..........................

(3,660,022)

$(82,255,977)

(8,070,651)

$(300,799,425)

Class

Year

ended

April

30,

2026

sold

...................................

181,432

$2,778,167

326,799

$5,525,953

issued

reinvestment

distributions

..........

151,481

2,319,174

505,294

7,645,105

redeemed

..............................

(632,578)

(9,681,663)

(1,122,915)

(18,908,060)

Net

increase

(decrease)

..........................

(299,665)

$(4,584,322)

(290,822)

$(5,737,002)

Year

ended

April

30,

2025

sold

...................................

223,183

$3,388,766

364,289

$6,156,727

redeemed

..............................

(377,681)

(5,679,389)

(1,144,009)

(19,304,846)

Net

increase

(decrease)

..........................

(154,498)

$(2,290,623)

(779,720)

$(13,148,119)

Class

Year

ended

April

30,

2026

sold

...................................

401,464

$8,291,387

157,905

$5,097,476

issued

reinvestment

distributions

..........

202,968

4,258,273

99,567

3,095,521

redeemed

...............................

(564,298)

(11,616,063)

(270,081)

(8,796,927)

Net

increase

(decrease)

..........................

40,134

$933,597

(12,609)

$(603,930)

Year

ended

April

30,

2025

sold

...................................

798,778

$16,855,590

194,991

$6,053,095

redeemed

...............................

(690,039)

(13,741,340)

(355,454)

(11,128,868)

Net

increase

(decrease)

..........................

108,739

$3,114,250

(160,463)

$(5,075,773)

Class

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

130

franklintempleton.com

Annual

Report

Transactions

with

Affiliates

Franklin

Resources,

Inc.

the

holding

company

for

various

subsidiaries

that

together

are

referred

Franklin

Templeton.

Certain

officers

and

trustees

the Trust are

also

officers

and/or

directors

the

following

subsidiaries:

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Amount

Class

Year

ended

April

30,

2026

sold

...................................

8,190,921

$222,960,058

1,934,449

$93,878,361

issued

reinvestment

distributions

..........

2,551,955

72,373,453

505,819

24,036,539

redeemed

...............................

(17,808,329)

(488,561,286)

(3,145,268)

(152,962,298)

Net

increase

(decrease)

..........................

(7,065,453)

$(193,227,775)

(705,000)

$(35,047,398)

Year

ended

April

30,

2025

sold

...................................

8,186,126

$213,802,927

2,024,595

$92,994,472

issued

reinvestment

distributions

..........

—

10,403

510,275

redeemed

in-kind

(Not

11)

..................

(2,046,951)

(51,319,956)

(530,869)

(23,798,846)

redeemed

...............................

(18,809,271)

(494,657,191)

(4,131,407)

(192,634,949)

Net

increase

(decrease)

..........................

(12,670,096)

$(332,174,220)

(2,627,278)

$(122,929,048)

Advisor

Class

Advisor

Class

Year

ended

April

30,

2026

sold

...................................

1,669,576

$44,082,030

1,384,638

$64,724,024

issued

reinvestment

distributions

..........

818,641

22,438,962

581,876

26,655,751

redeemed

...............................

(4,355,250)

(115,449,032)

(2,487,808)

(117,649,204)

Net

increase

(decrease)

..........................

(1,867,033)

$(48,928,040)

(521,294)

$(26,269,429)

Year

ended

April

30,

2025

sold

...................................

2,433,680

$61,722,891

1,568,765

$70,783,754

issued

reinvestment

distributions

..........

—

743

35,253

redeemed

...............................

(4,651,378)

(117,041,367)

(2,274,042)

(101,783,139)

Net

increase

(decrease)

..........................

(2,217,698)

$(55,318,476)

(704,534)

$(30,964,132)

May

include

portion

Class

that

were

automatically

converted

Class

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

Beneficial

Interest

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

131

franklintempleton.com

Annual

Report

Management

Fees

Franklin

Biotechnology

Discovery

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

the

Fund

follows:

Prior

May

2025,

Franklin

Core

Plus

Bond

Fund

paid

fees,

calculated

daily

and

paid

monthly,

Advisers

based

the

average

daily

net

assets

the

Fund

follows:

Effective

May

2025,

Franklin

Core

Plus

Bond

Fund

pays

investment

management

fee,

calculated

daily

and

paid

monthly,

Advisers

based

the

average

daily

net

assets

the

Fund

follows:

Annualized

Fee

Rate

Net

Assets

0.775%

and

including

$100

million

0.650%

Over

$100

million,

and

including

$200

million

0.635%

Over

$200

million,

and

including

$250

million

0.585%

Over

$250

million,

and

including

$700

million

0.550%

Over

$700

million,

and

including

$1.2

billion

0.525%

Over

$1.2

billion,

and

including

$7.5

billion

0.515%

Over

$7.5

billion,

and

including

$10

billion

0.505%

Over

$10

billion,

and

including

$12.5

billion

0.495%

Over

$12.5

billion,

and

including

$15

billion

0.475%

excess

$15

billion

Annualized

Fee

Rate

Net

Assets

0.625%

and

including

$100

million

0.500%

Over

$100

million,

and

including

$250

million

0.450%

Over

$250

million,

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

and

including

$10

billion

0.430%

Over

$10

billion,

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

and

including

$15

billion

0.400%

Over

$15

billion,

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

and

including

$20

billion

0.360%

Over

$20

billion,

and

including

$35

billion

0.355%

Over

$35

billion,

and

including

$50

billion

0.350%

excess

$50

billion

Annualized

Fee

Rate

Net

Assets

0.350%

and

including

billion

0.330%

Over

billion,

and

including

$10

billion

0.310%

Over

$10

billion,

and

including

$20

billion

0.290%

excess

$20

billion

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

132

franklintempleton.com

Annual

Report

Franklin

Growth

Opportunities

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

the

Fund

follows:

Franklin

Natural

Resources

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund pay

investment

management fee,

calculated

daily and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

each

the

Funds

follows:

Franklin

Small

Cap

Growth

Fund pays

investment

management fee,

calculated

daily

and

paid

monthly,

to Advisers based

on the

average

daily

net

assets

the

Fund

follows:

Annualized

Fee

Rate

Net

Assets

0.700%

and

including

$500

million

0.600%

Over

$500

million,

and

including

billion

0.550%

Over

billion,

and

including

$1.5

billion

0.500%

Over

$1.5

billion,

and

including

$6.5

billion

0.475%

Over

$6.5

billion,

and

including

$11.5

billion

0.450%

Over

$11.5

billion,

and

including

$16.5

billion

0.440%

Over

$16.5

billion,

and

including

$19

billion

0.430%

Over

$19

billion,

and

including

$21.5

billion

0.420%

excess

$21.5

billion

Annualized

Fee

Rate

Net

Assets

0.625%

and

including

$100

million

0.500%

Over

$100

million,

and

including

$250

million

0.450%

Over

$250

million,

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

and

including

$10

billion

0.430%

Over

$10

billion,

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

and

including

$15

billion

0.400%

excess

$15

billion

Annualized

Fee

Rate

Net

Assets

0.750%

and

including

$500

million

0.650%

Over

$500

million,

and

including

billion

0.600%

Over

billion,

and

including

$1.5

billion

0.550%

Over

$1.5

billion,

and

including

$6.5

billion

0.525%

Over

$6.5

billion,

and

including

$11.5

billion

0.500%

Over

$11.5

billion,

and

including

$16.5

billion

0.490%

Over

$16.5

billion,

and

including

$19

billion

0.480%

Over

$19

billion,

and

including

$21.5

billion

0.470%

excess

$21.5

billion

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

133

franklintempleton.com

Annual

Report

For

the

year

ended

April

30,

2026,

each

Fund's

gross

effective

investment

management

fee

rate

based

average

daily

net

assets

was

follows:

Administrative

Fees

Under

agreement

with

Advisers,

Services

provides

administrative

services

the

Funds.

The

fee

paid

Advisers

based

each

of the

Funds'

average

daily

net

assets,

and

not

additional

expense

the

Funds.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

class,

with

the

exception

Class

and

Advisor

Class

shares,

pursuant

Rule

12b-1

under

the

1940

Act.

Under

the

Funds'

Class

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate.

Under

the

Class

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

reimbursed

subsequent

periods.

addition,

under

the

Funds'

Class

and

R compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

monitoring

compliance

with

the

maximum

annual

plan

rates,

February

through

January

for

each

Fund.

The

maximum

annual

plan

rates,

based

the

average

daily

net

assets,

for

each

class,

are

follows:

For

Franklin

Biotechnology

Discovery

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Natural

Resources

Fund

and

Franklin

Small

Cap

Growth

Fund,

the

Board

has

set

the

current

rate

0.25%

per

year

for

Class

until

further

notice

and

approval

the

Board.

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Gross

effective

investment

management

fee

rate

...................

0.609%

0.352%

0.539%

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Gross

effective

investment

management

fee

rate

...................

0.515%

0.621%

0.457%

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Class

................................................

0.35%

0.25%

0.35%

Class

................................................

1.00%

0.65%

1.00%

Class

................................................

—%

0.50%

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Class

................................................

0.35%

0.25%

Class

................................................

1.00%

Class

................................................

—%

0.50%

Transactions

with

Affiliates

(continued)

Management

Fees

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

134

franklintempleton.com

Annual

Report

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

not

represent

expenses

the

Funds.

These

charges

are

deducted

from

the

proceeds

sales

fund

prior

investment

from

redemption

proceeds

prior

remittance,

applicable.

Distributors

has

advised

the

Funds

the

following

commission

transactions

the

sales

and

redemptions

the

Funds'

for

the

year:

Transfer

Agent

Fees

Each

class

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

shareholder

servicing

obligations. The

fees

are based

fixed

margin

earned

Investor

Services

and

are allocated

the Funds

based

upon

relative

assets

and

relative

transactions. In

addition,

each

class reimburses

Investor

Services

for

out

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

third

parties.

These

fees

paid

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

such

classes'

aggregate

net

assets.

Class

pays

Investor

Services

transfer

agent

fees

allocated

specifically

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

April

30,

2026,

the Funds

paid

transfer

agent

fees

noted

the

Statements of

Operations

which

the

following

amounts

were

retained

Investor

Services:

Investments

Affiliated

Management

Investment

Companies

Certain

all

Funds

invest

one

affiliated

management

investment

companies.

defined

the

1940

Act,

investment

deemed

“Controlled

Affiliate”

fund

when

fund

owns,

either

directly

indirectly,

25%

the

affiliated

fund’s

outstanding

has

the

power

exercise

control

over

management

policies

such

fund.

The

Funds

not

invest

for

purposes

exercising

controlling

influence

over

the

management

policies.

Management

fees

paid

the

Funds

are

waived

assets

invested

the

affiliated

management

investment

companies,

noted

the

Statements

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/

dealers

..................................................

$52,630

$52,907

$217,954

CDSC

retained

............................................

$8,887

$27,743

$26,969

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Sales

charges

retained

net

commissions

paid

unaffiliated

brokers/

dealers

..................................................

$55,347

$79,280

$157,806

CDSC

retained

............................................

$7,772

$7,144

$11,820

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Transfer

agent

fees

.........................................

$359,690

$1,300,999

$1,248,145

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Transfer

agent

fees

.........................................

$207,535

$1,133,086

$1,274,363

Transactions

with

Affiliates

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

135

franklintempleton.com

Annual

Report

Operations,

amount

not

exceed

the

management

and

administrative

fees,

applicable, paid

directly

indirectly

each

affiliate.

During

the

year

ended

April

30,

2026,

investments

affiliated

management

investment

companies

were

follows:

Value

Beginning

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Year

Number

Held

End

Year

Investment

Income

Franklin

Biotechnology

Discovery

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$17,698,635

$263,259,822

$(254,972,920)

$—

$25,985,537

25,985,537

$728,255

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$6,416,814

$478,451,846

$(453,241,897)

$—

$31,626,763

31,626,763

$1,177,751

Total

Affiliated

Securities

...

$24,115,449

$741,711,668

$(708,214,817)

$—

$57,612,300

$1,906,006

Franklin

Core

Plus

Bond

Fund

Non-Controlled

Affiliates

Dividends

Franklin

BSP

Real

Estate

Debt

BDC

..................

$24,292,230

$—

$(23,568,878)

$338,565

$(1,061,917)

$—

—

$663,723

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

20,674,651

790,237,907

(575,917,125)

—

234,995,433

3,592,300

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$—

$10,224,000

$(10,224,000)

$—

—

$4,804

Total

Affiliated

Securities

...

$44,966,881

$800,461,907

$(609,710,003)

$338,565

$(1,061,917)

$234,995,433

$4,260,827

Franklin

Growth

Opportunities

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$40,512,033

$1,007,079,188

$(1,000,035,717)

$—

$47,555,504

47,555,504

$1,104,970

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

136

franklintempleton.com

Annual

Report

Value

Beginning

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Year

Number

Held

End

Year

Investment

Income

Franklin

Growth

Opportunities

Fund

(continued)

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$9,816,000

$391,493,861

$(381,359,111)

$—

$19,950,750

19,950,750

$759,446

Total

Affiliated

Securities

...

$50,328,033

$1,398,573,049

$(1,381,394,828)

$—

$67,506,254

$1,864,416

Franklin

Natural

Resources

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$12,963,979

$98,547,424

$(103,924,724)

$—

$7,586,679

7,586,679

$372,469

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$8,457,500

$343,725,970

$(339,314,855)

$—

$12,868,615

12,868,615

$459,264

Total

Affiliated

Securities

...

$21,421,479

$442,273,394

$(443,239,579)

$—

$20,455,294

$831,733

Franklin

Small

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$27,922,674

$729,777,542

$(746,272,666)

$—

$11,427,550

11,427,550

$1,668,928

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$19,765,870

$908,752,513

$(876,599,558)

$—

$51,918,825

51,918,825

$1,928,892

Total

Affiliated

Securities

...

$47,688,544

$1,638,530,055

$(1,622,872,224)

$—

$63,346,375

$3,597,820

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

137

franklintempleton.com

Annual

Report

Waiver

and

Expense

Reimbursements

Effective

May

2025,

Advisers

has

contractually

agreed

advance

waive

limit

its

respective

fees

and

assume

their

own

expense

certain

expenses

otherwise

payable

Franklin

Core

Plus

Bond

Fund

that

the

operating

expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

costs,

such

those

relating

litigation,

indemnification,

reorganizations

and

liquidations)

for

each

Class

not

exceed

0.47%,

and

for

Class

not

exceed

0.37%,

based

the

average

net

assets

each

Class

until

August

31,

2026.

Total

expenses

waived

paid

are

not

subject

recapture

subsequent

the

Fund’s

fiscal

year

end.

Prior

May

2025,

the

expenses

(excluding

certain

fees

and

expenses

previously

disclosed)

for

each

Class

Franklin

Core

Plus

Bond

were

limited

0.58%

and

for

Class

were

limited

0.48%

based

average

net

assets

each

Class.

Effective

September

2025,

operating

expenses

include

acquired

fund

fees

and

expenses.

Transfer

agent

fees

Class

the

Funds have

been

capped

that

transfer

agent

fees

for

that

class

not

exceed

0.03%

based

the

average

net

assets

the

class

until

August

31,

2026.

Interfund

Transactions

Certain

all

Funds

engaged

purchases

and

sales

investments

with

funds

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

officers.

These

purchases,

sales

and

the

net

realized

gains

(losses),

any,

(excluding

in-kind

transactions)

for

the

year

ended

April

30,

2026,

were

follows:

Value

Beginning

Year

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

Unrealized

Appreciation

(Depreciation)

Value

End

Year

Number

Held

End

Year

Investment

Income

Franklin

Small-Mid

Cap

Growth

Fund

Non-Controlled

Affiliates

Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$67,276,399

$596,622,727

$(588,939,521)

$—

$74,959,605

74,959,605

$2,630,648

Non-Controlled

Affiliates

Income

from

securities

loaned

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.593%

............

$8,437,275

$394,069,592

$(402,506,867)

$—

—

$373,347

Total

Affiliated

Securities

...

$75,713,674

$990,692,319

$(991,446,388)

$—

$74,959,605

$3,003,995

Franklin

Small

Cap

Growth

Fund

Purchases

..............................

$2,011,609

Sales

..................................

—

Net

Realized

Gains

(Losses)

.................

—

Transactions

with

Affiliates

(continued)

Investments

Affiliated

Management

Investment

Companies

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

138

franklintempleton.com

Annual

Report

Income

Taxes

For

tax

purposes,

capital

losses

may

carried

over

offset

future

capital

gains.

April

30,

2026,

the

capital

loss

carryforwards

were

follows:

During

the

year

ended April

30,

2026,

the

utilized

capital

loss

carryforwards

were

follows:

For

tax

purposes,

the

Funds

may

elect

defer

any

portion

post-October

capital

loss

late-year

ordinary

loss

the

first

day

the

following

fiscal

year.

At April

30,

2026,

the

deferred

losses

were

follows:

The

tax

character

distributions

paid

during

the

years

ended

April

30,

2026

and

2025,

was

follows:

Franklin

Core

Plus

Bond

Fund

Franklin

Natural

Resources

Fund

Capital

loss

carryforwards

not

subject

expiration:

Short

term

...............................................................

156,787,169

—

Long

term

...............................................................

892,305,908

130,116,851

Total

capital

loss

carryforwards

..............................................

$1,049,093,077

$130,116,851

Franklin

Core

Plus

Bond

Fund

Franklin

Natural

Resources

Fund

Capital

loss

utilized

carryforwards

...............................................

$9,879,476

$24,920,135

Franklin

Growth

Opportunities

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Late-year

ordinary

loss

...........................................

$8,322,509

$6,079,144

$2,892,994

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

2026

2025

2026

2025

Distributions

paid

from:

Ordinary

income

........................

$23,180,444

$23,129,664

$111,500,570

$119,623,480

Long

term

capital

gain

....................

77,442,568

48,180,837

—

$100,623,012

$71,310,501

$111,500,570

$119,623,480

Franklin

Growth

Opportunities

Fund

Franklin

Natural

Resources

Fund

2026

2025

2026

2025

Distributions

paid

from:

Ordinary

income

........................

$—

$15,984,820

$6,461,794

$7,347,186

Long

term

capital

gain

....................

741,721,494

432,641,293

—

$741,721,494

$448,626,113

$6,461,794

$7,347,186

Franklin

Strategic

Series

Notes

Financial

Statements

139

franklintempleton.com

Annual

Report

April

30,

2026,

the

cost

investments,

net

unrealized

appreciation

(depreciation)

undistributed

ordinary

income

and

undistributed

long

term

capital

gains

for

income

tax

purposes

were

follows:

Differences

between

income

and/or

capital

gains

determined

book

basis

and

tax

basis

are

primarily

due

differing

treatments

foreign

currency

transactions,

wash

sales,

passive

foreign

investment

company

shares,

paydown

losses,

payments-in-kind,

bond

discounts

and

premiums,

derivative

financial

instruments,

corporate

actions,

net

operating

losses

and

in-kind

transactions.

The

Funds

except

for

Franklin

Core

Plus

Bond

Fund

utilized

tax

accounting

practice

treat

portion

the

proceeds

from

capital

redeemed

distribution

from

net

investment

income

and realized

capital

gains.

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

2026

2025

2026

2025

Distributions

paid

from:

Ordinary

income

........................

$—

$619,958

Long

term

capital

gain

....................

186,170,133

—

268,116,040

459

$186,170,133

$—

$268,116,040

$620,417

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Cost

investments

........................................

$560,575,683

$3,434,784,833

$2,126,355,381

Unrealized

appreciation

......................................

$545,633,836

$33,072,041

$2,374,512,544

Unrealized

depreciation

......................................

(34,186,434)

(138,047,837)

(88,751,688)

Net

unrealized

appreciation

(depreciation)

........................

$511,447,402

$(104,975,796)

$2,285,760,856

Distributable

earnings:

Undistributed

ordinary

income

.................................

$22,915,030

$440,424

$—

Undistributed

long

term

capital

gains

............................

47,067,252

—

227,641,315

Total

distributable

earnings

...................................

$69,982,282

$440,424

$227,641,315

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Cost

investments

........................................

$310,295,982

$1,811,356,098

$2,389,603,262

Unrealized

appreciation

......................................

$254,773,699

$907,419,139

$1,238,300,507

Unrealized

depreciation

......................................

(12,463,230)

(223,973,595)

(131,014,797)

Net

unrealized

appreciation

(depreciation)

........................

$242,310,469

$683,445,544

$1,107,285,710

Distributable

earnings:

Undistributed

ordinary

income

.................................

$10,953,923

$67,778,784

$—

Undistributed

long

term

capital

gains

............................

—

207,031,075

67,523,676

Total

distributable

earnings

...................................

$10,953,923

$274,809,859

$67,523,676

Income

Taxes

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

140

franklintempleton.com

Annual

Report

Investment

Transactions

Purchases

and

sales

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

year

ended

April

30,

2026,

were

follows:

April

30,

2026,

connection

with

securities

lending

transactions,

certain

all

Funds

loaned

investments

and

received

cash

collateral

follows:

Credit

Risk

and

Defaulted

Securities

April

30,

2026,

Franklin

Core

Plus

Bond

Fund

had 9.2% of

its

portfolio

invested

high

yield

securities,

senior

secured

floating

rate

loans,

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

sensitive

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

greater

risk

loss

due

default

than

higher

rated

securities.

Franklin

Core

Plus

Bond

Fund held

a defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

April

30,

2026,

the

value

these

securities represents

less

than

0.1% of

the

Fund's net

assets.

The

Fund

discontinues

accruing

income

securities

for

which

income

has

been

deemed

uncollectible

and

provides

estimate

for

losses

interest

receivable.

The

securities

have

been

identified

the

accompanying

Schedule

Investments.

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Purchases

...............................................

$327,287,523

$10,863,346,451

$1,745,001,151

Sales

...................................................

$432,213,700

$10,647,482,976

$2,281,579,353

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Purchases

...............................................

$166,483,610

$1,152,570,981

$1,201,163,393

Sales

...................................................

$103,189,120

$1,586,946,987

$1,706,729,543

Sales

investments

excludes

in-kind

transactions

$79,782,475.

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Securities

lending

transactions

Equity

investments

.........................................

$31,626,763

$—

$19,950,750

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-

Mid

Cap

Growth

Fund

Securities

lending

transactions

Equity

investments

.........................................

$12,868,615

$53,117,575

$—

The

agreements

can

terminated

any

time.

The

gross

amount

recognized

liability

for

such

transactions

included

payable

upon

return

securities

loaned

the

Statements

Assets

and

Liabilities.

Franklin

Strategic

Series

Notes

Financial

Statements

141

franklintempleton.com

Annual

Report

Restricted

Securities

Certain

all

Funds

invest

securities

that

are

restricted

under

the

Securities

Act

1933

(1933

Act).

Restricted

securities

are

often

purchased

private

placement

transactions,

and

cannot

sold

without

prior

registration

unless

the

sale

pursuant

exemption

under

the

1933

Act.

Disposal

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

acceptable

price

may

difficult.

The

Funds

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

April

30,

2026,

investments

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

follows:

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Biotechnology

Discovery

Fund

706,649

Achieve

Life

Sciences,

Inc.

.....................

4/17/26

2,568,669

2,976,339

706,649

Achieve

Life

Sciences,

Inc.,

4/10/28

..............

4/17/26

621,851

223,305

Acumen

Pharmaceuticals,

Inc.

..................

3/16/26

736,906

533,699

2,735,200

Candid

Therapeutics,

Inc.

......................

3/02/26

2,735,200

3,046,668

1,519,609

Candid,

Inc.,

..............................

8/19/24

1,823,531

2,372,462

69,673

IN8bio,

Inc.,

10/04/27

.......................

10/10/24

—

5,665

859,370

Lycia

LLC,

...............................

4/26/24

1,754,576

3,017,589

1,389,029

Ray

Therapeutics,

Inc.,

.....................

4/17/26

3,671,204

3,399,269

132

Sensei

Biotherapeutics,

Inc.,

..................

2/20/26

1,827,374

3,363,564

Total

Restricted

Securities

(Value

1.9%

Net

Assets)

...............

$15,117,531

$19,337,106

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

117,526

Anduril

Industries,

Inc.,

......................

7/22/25

4,804,792

8,103,418

Anduril

Industries,

Inc.,

......................

7/22/25

2,249

3,792

180,222

Anduril

Industries,

Inc.,

......................

5/08/25

7,367,980

12,426,307

49,656

Anthropic

PBC,

F-1

..........................

8/29/25

6,999,887

12,867,677

38,589

Anthropic

PBC,

G-1

..........................

2/12/26

9,999,815

3,094

Canva

Australia

Holdings

Pty.

Ltd.,

.............

3/18/24

3,300,249

5,093,157

11,829

Canva

Australia

Holdings

Pty.

Ltd.,

.............

12/22/21

20,158,531

19,472,190

4,619

Celonis

.................................

6/16/21

1,708,060

416,631

25,571

Celonis

SE,

..............................

6/16/21

10/04/22

9,427,681

2,306,491

6,309,366

ClearMotion,

Inc.

............................

11/06/17

12/21/18

15,500,000

650,899

417,667

ClearMotion,

Inc.,

A-3

.........................

3/23/23

—

60,170

2,606,463

ClearMotion,

Inc.,

A-4

.........................

12/21/21

251,500

341,496

338,280

Databricks,

Inc.,

...........................

2/01/21

20,000,005

64,623,462

750,387

Flock

Group,

Inc.,

..........................

3/26/25

11,082,616

11,729,975

80,684

Flock

Group,

Inc.,

..........................

3/26/25

1,191,638

1,261,244

21,303

Flock

Group,

Inc.,

F-1

........................

3/26/25

314,628

333,006

517,056

OneTrust

LLC,

............................

4/01/21

10,139,623

4,805,902

8,668

OpenAI

Foundation

..........................

10/03/25

3,727,240

5,960,897

56,433

Plaid,

Inc.,

................................

3/31/25

11,511,011

13,666,978

142,857

Space

Exploration

Technologies

Corp.,

..........

5/25/22

9,999,990

75,227,068

Franklin

Strategic

Series

Notes

Financial

Statements

142

franklintempleton.com

Annual

Report

Issuer

Acquisition

Date

Cost

Value

Franklin

Growth

Opportunities

Fund

(continued)

260,482

Stripe,

Inc.,

...............................

4/30/25

9,377,352

16,635,683

Total

Restricted

Securities

(Value

6.1%

Net

Assets)

...............

$156,864,847

$265,986,258

Issuer

Acquisition

Date

Cost

Value

Franklin

Natural

Resources

Fund

39,802

Redwood

Materials,

Inc.,

.....................

10/20/25

1,899,983

Total

Restricted

Securities

(Value

0.4%

Net

Assets)

...............

$1,899,983

Issuer

Acquisition

Date

Cost

Value

Franklin

Small

Cap

Growth

Fund

3,436,485

1661,

Inc.,

................................

5/28/21

19,999,999

3,786,378

311,952

Astranis

Space

Technologies

Corp.,

............

2/10/26

5,999,994

382,306

Benchling,

Inc.,

............................

10/20/21

12,499,992

1,803,489

1,388,889

Checkr,

Inc.,

..............................

8/24/21

25,000,002

21,170,063

410,500

Chinook

Therapeutics,

Inc.,

CVR,

6/30/30

.........

8/14/23

—

3,698,772

ClearMotion,

Inc.

............................

12/21/18

10,000,000

381,580

1,037,942

ClearMotion,

Inc.,

A-3

.........................

3/23/23

—

149,527

6,477,294

ClearMotion,

Inc.,

A-4

.........................

12/21/21

625,000

848,649

987,540

Flock

Group,

Inc.,

..........................

3/08/24

9,999,899

15,437,126

709,046

Newsela,

Inc.,

.............................

1/21/21

15,000,010

12,707,441

625,361

OneTrust

LLC,

............................

3/10/23

6,878,971

5,812,569

56,457

OneTrust

LLC,

A-1

...........................

3/10/23

621,027

524,753

1,542,673

Smule,

Inc.,

144A,

.........................

5/31/16

11,099,995

177,103

352,675

Smule,

Inc.,

144A,

.........................

4/27/17

2,999,995

47,866

162,712

Smule,

Inc.,

...............................

8/05/22

11/28/22

764,393

1,603,972

361,111

Tula

eTechnology,

Inc.

........................

11/01/18

—

3,611,111

Tula

eTechnology,

Inc.,

......................

9/08/17

6,500,000

3,872,916

Total

Restricted

Securities

(Value

3.1%

Net

Assets)

...............

$127,989,277

$74,323,426

Principal

Amount

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Small-Mid

Cap

Growth

Fund

414,483

Anduril

Industries,

Inc.,

......................

7/17/24

9,009,451

28,578,603

347,106

Benchling,

Inc.,

............................

10/20/21

11,349,082

1,637,436

227,829

Databricks,

Inc.,

...........................

2/01/21

13,469,851

43,523,409

423,782

Newsela,

Inc.,

.............................

1/21/21

8,965,193

7,594,972

767,526

OneTrust

LLC,

............................

4/01/21

15,051,415

7,133,956

2,970,061

Phononic

Devices,

Inc.,

F-S

....................

6/06/19

7,499,998

6,046,293

513,050

Phononic

Devices,

Inc.,

G-2-S

..................

1/17/20

11/03/20

1,824,398

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

143

franklintempleton.com

Annual

Report

Unfunded

Loan

Commitments

Certain

all

Funds

enter

into

certain

credit

agreements,

all

portion

which

may

unfunded.

The

Funds

are

obligated

fund

these

loan

commitments

the

borrowers’

discretion.

Unfunded

loan

commitments

and

funded

portions

credit

agreements

are

marked

market

daily

and

any

unrealized

appreciation

depreciation

included

the

Statements

Assets

and

Liabilities

and

the

Statements

Operations.

Funded

portions

credit

agreements

are

presented

the

Schedules

Investments.

April

30,

2026,

unfunded

commitments

were

follows:

Principal

Amount*/

Shares/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

66,235

Phononic,

Inc.,

5.31%,

11/30/27

.................

2/11/25

66,235

79,754

117,763

Phononic,

Inc.,

H-S

..........................

10/17/22

460,645

584,839

23,970

Phononic,

Inc.,

H-S,

12/31/29

...................

5/15/24

2/11/25

32,191

66,235

Phononic,

Inc.,

H-S,

5.31%,

11/30/27

.............

10/01/24

66,235

81,015

66,235

Phononic,

Inc.,

H-S,

5.31%,

11/30/27

............

5/15/24

66,235

82,304

47,104

Phononic,

Inc.,

H-S-X,

12/31/29

.................

10/17/22

44,029

63,259

30,940

Plaid,

Inc.,

................................

3/31/25

6,311,036

7,493,068

Total

Restricted

Securities

(Value

3.0%

Net

Assets)

...............

$72,359,454

$104,755,497

U.S.

dollars

unless

otherwise

indicated.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$8,152,586

April

30,

2026.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$1,975,096

April

30,

2026.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$488,162

April

30,

2026.

The

Fund

also

invests

unrestricted

securities

the

issuer,

valued

$1,298,284

April

30,

2026.

Borrower

Unfunded

Commitment

Franklin

Core

Plus

Bond

Fund

First

Eagle

Holdings,

Inc.

82,642

Restricted

Securities

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

144

franklintempleton.com

Annual

Report

Other

Derivative

Information

April

30,

2026,

investments

derivative

contracts

are

reflected

the

Statements

Assets

and

Liabilities

follows:

For

the

year

ended

April

30,

2026

the

effect

derivative

contracts

the

Statements

Operations

was

follows:

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Assets

and

Liabilities

Location

Fair

Value

Statement

Assets

and

Liabilities

Location

Fair

Value

Franklin

Core

Plus

Bond

Fund

Interest

rate

contracts

.......

Investments

securities,

value

1,593,943

Options

written,

value

1,611,285

Variation

margin

futures

contracts

650,496

Variation

margin

futures

contracts

4,429,112

Foreign

exchange

contracts

Unrealized

appreciation

OTC

forward

exchange

contracts

28,768

Unrealized

depreciation

OTC

forward

exchange

contracts

54,638

Credit

contracts

............

Variation

margin

centrally

cleared

swap

contracts

1,083,799

Variation

margin

centrally

cleared

swap

contracts

692,788

OTC

swap

contracts

(upfront

payments)

—

OTC

swap

contracts

(upfront

receipts)

1,291,228

Unrealized

appreciation

OTC

swap

contracts

—

Unrealized

depreciation

OTC

swap

contracts

123,303

Total

....................

$3,357,006

$8,202,354

Purchased

option

contracts

are

included

investments

securities,

value

the

Statement

Assets

and

Liabilities.

This

amount

reflects

the

cumulative

appreciation

(depreciation)

futures

contracts

and

centrally

cleared

swap

contracts

reported

the

Schedule

Investments.

Only

the

variation

margin

receivable/payable

year

end

separately

reported

within

the

Statement

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

cash

upon

receipt

payment.

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

Operations

Location

Net

Change

Unrealized

Appreciation

(Depreciation)

for

the

Year

Franklin

Core

Plus

Bond

Fund

Net

realized

gain

(loss)

from:

Net

change

unrealized

appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Investments

$(1,631,260)

Investments

$111,909

Written

options

—

Written

options

(106,771)

Futures

contracts

(2,182,585)

Futures

contracts

(2,216,598)

Swap

contracts

357,057

Swap

contracts

—

Foreign

exchange

contracts

.....

Investments

(1,389,903)

Investments

—

Written

options

548,510

Written

options

—

Forward

exchange

contracts

(339,383)

Forward

exchange

contracts

144,902

Franklin

Strategic

Series

Notes

Financial

Statements

145

franklintempleton.com

Annual

Report

For

the

year

ended

April

30,

2026,

the

average

month

end

notional

amount

futures

contracts,

swap

contracts

and

options,

and

the

average month

end

contract

value

for forward

exchange

contracts,

were as

follows:

See

Note

1(d) regarding

derivative

financial

instruments.

10.

Upcoming

Reorganization

May

19,

2026,

the

Board

for

Franklin

Total

Return

Fund

approved

proposal

reorganize

Franklin

Total

Return

Fund

with

and

into

Franklin

Core

Plus

Bond.

Upon

completion

the

reorganization

about

October

2026,

assets

Franklin

Total

Return

Fund

will

transferred

into

Franklin

Core

Plus

Bond

Fund.

11.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

Franklin

Templeton,

are

borrowers

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility)

which

matures

January

29,

2027.

This

Global

Credit

Facility

provides

source

funds

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

meet

future

unanticipated

unusually

large

redemption

requests.

Under

the

terms

the

Global

Credit

Facility,

the

Funds

may,

addition

interest

charged

any

borrowings

made

the

Funds

and

other

costs

incurred

the

Funds,

pay

their

fees

and

expenses

incurred

connection

with

the

implementation

and

maintenance

the

Global

Credit

Facility,

based

upon

their

relative

the

aggregate

net

assets

all

the

Borrowers,

including

annual

commitment

fee

0.15%

based

upon

the

unused

portion

the

Global

Credit

Facility.

These

fees

are

reflected

other

expenses

the

Statements

Operations.

During

the

year ended

April

30,

2026,

the

Funds

did

not

use

the

Global

Credit

Facility.

Derivative

Contracts

Not

Accounted

for

Hedging

Instruments

Statement

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Year

Statement

Operations

Location

Net

Change

Unrealized

Appreciation

(Depreciation)

for

the

Year

Credit

contracts

...............

Investments

(2,325,086)

Investments

—

Written

options

1,223,062

Written

options

—

Swap

contracts

(2,539,864)

Swap

contracts

(252,763)

Total

.......................

$(8,279,452)

$(2,319,321)

Purchased

option

contracts

are

included

net

realized

gain

(loss)

from

investments

and

net

change

unrealized

appreciation

(depreciation)

investments

the

Statements

Operations.

Franklin

Core

Plus

Bond

Fund

Futures

contracts

............................................................................

$322,252,528

Swap

contracts

..............................................................................

100,565,574

Forward

exchange

contracts

....................................................................

10,416,184

Options

....................................................................................

184,083,762

Other

Derivative

Information

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

146

franklintempleton.com

Annual

Report

12.

Redemption

In-Kind

During

the

period

ended

April

30,

2026,

Franklin

Growth

Opportunities

Fund

realized

$65,126,047

net

gains

resulting

from

non-pro

rata

redemptions

in-kind

which

shareholders

redeemed

fund

for

cash

and

selected

portfolio

securities

held

the

Fund,

whereby

portfolio

securities

selected

the

investment

manager

were

distributed

the

redeeming

shareholders

the

Fund.

such

gains

are

not

taxable

the

Fund

and

are

not

distributed

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gain

paid-in

capital.

During

the year

ended

April

30,

2025,

Franklin

Small

Cap

Growth

Fund

realized

$11,579,715

net

gains

resulting

from

redemptions in-kind

which

shareholders

redeemed

fund

for

cash

and

securities

held

the

Fund.

Because

such

gains

are

not

taxable

the

Fund,

and

are

not

distributed

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

paid-in

capital.

During

the year

ended

April

30,

2025,

Franklin

Small-Mid

Cap

Growth

Fund

realized

$5,735,544

net

gains

resulting

from

redemption in-kind

which

shareholder

redeemed

fund

for

cash

and

securities

held

the

Fund.

Because

such

gains

are

not

taxable

the

Fund,

and

are

not

distributed

remaining

shareholders,

they

are

reclassified

from

accumulated

net

realized

gains

paid-in

capital.

13.

Fair

Value

Measurements

The Funds

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

determining

the

value

the Funds' financial

instruments

and

are

summarized

the

following

fair

value

hierarchy:

Level

–

quoted

prices

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

determining

the

fair

value

financial

instruments)

The

input

levels

are

not

necessarily

indication

the

risk

liquidity

associated

with

financial

instruments

that

level.

summary

inputs

used

April

30,

2026,

valuing

the

Funds'

assets

and

liabilities carried

fair

value,

follows:

Level

Total

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

Securities:

Common

Stocks

Biotechnology

.........................

785,500,471

533,699

2,976,339

789,010,509

Capital

Markets

........................

1,542,374

—

1,542,374

Health

Care

Providers

Services

..........

21,681,614

—

21,681,614

Life

Sciences

Tools

Services

............

4,108,998

1,866,598

—

5,975,596

Pharmaceuticals

.......................

172,179,993

—

172,179,993

Convertible

Preferred

Stocks

................

—

9,135,295

Preferred

Stocks

Life

Sciences

Tools

Services

............

—

2,350,384

—

2,350,384

Real

Estate

Management

Development

....

—

3,017,588

Warrants

...............................

—

8,983,143

Escrows

and

Litigation

Trusts

...............

—

534,289

Short

Term

Investments

...................

57,612,300

—

57,612,300

Total

Investments

Securities

...........

$1,042,625,750

$4,750,681

$24,646,654

$1,072,023,085

Franklin

Strategic

Series

Notes

Financial

Statements

147

franklintempleton.com

Annual

Report

Level

Total

Franklin

Biotechnology

Discovery

Fund

(continued)

Assets:

(continued)

Other

Financial

Instruments:

Unfunded

Commitments

..................

$—

$311,468

Total

Other

Financial

Instruments

.........

$—

$311,468

Franklin

Core

Plus

Bond

Fund

Assets:

Investments

Securities:

Common

Stocks

Machinery

............................

—

738,049

Oil,

Gas

Consumable

Fuels

.............

33,843

267,821

—

301,664

Corporate

Bonds

Aerospace

Defense

...................

—

29,538,970

—

29,538,970

Air

Freight

Logistics

...................

—

909,258

—

909,258

Automobile

Components

.................

—

2,839,614

—

2,839,614

Automobiles

..........................

—

7,276,043

—

7,276,043

Banks

...............................

—

131,711,208

—

131,711,208

Beverages

...........................

—

1,327,410

—

1,327,410

Biotechnology

.........................

—

14,900,544

—

14,900,544

Broadline

Retail

.......................

—

7,456,305

—

7,456,305

Building

Products

......................

—

8,717,304

—

8,717,304

Capital

Markets

........................

—

71,767,334

—

71,767,334

Chemicals

...........................

—

7,155,888

—

7,155,888

Commercial

Services

Supplies

...........

—

13,522,831

—

13,522,831

Communications

Equipment

..............

—

7,399,781

—

7,399,781

Construction

Engineering

...............

—

1,954,328

—

1,954,328

Consumer

Finance

.....................

—

44,363,310

—

44,363,310

Consumer

Staples

Distribution

Retail

......

—

2,251,194

—

2,251,194

Containers

Packaging

.................

—

6,370,996

—

6,370,996

Diversified

Consumer

Services

............

—

1,688,571

—

1,688,571

Diversified

REITs

......................

—

7,952,367

—

7,952,367

Diversified

Telecommunication

Services

.....

—

38,231,189

—

38,231,189

Electric

Utilities

........................

—

72,654,075

—

72,654,075

Electrical

Equipment

....................

—

4,776,694

—

4,776,694

Electronic

Equipment,

Instruments

Components

........................

—

16,604,145

—

16,604,145

Energy

Equipment

Services

.............

—

7,053,761

—

7,053,761

Entertainment

.........................

—

5,157,184

—

5,157,184

Financial

Services

......................

—

9,783,302

—

9,783,302

Food

Products

........................

—

19,363,283

—

19,363,283

Gas

Utilities

..........................

—

1,894,327

—

1,894,327

Ground

Transportation

..................

—

14,992,828

—

14,992,828

Health

Care

Equipment

Supplies

.........

—

10,760,172

—

10,760,172

Health

Care

Providers

Services

..........

—

44,811,799

—

44,811,799

Health

Care

REITs

.....................

—

7,303,357

—

7,303,357

Health

Care

Technology

.................

—

3,058,938

—

3,058,938

Hotel

Resort

REITs

...................

—

2,566,842

—

2,566,842

Hotels,

Restaurants

Leisure

.............

—

19,466,434

—

19,466,434

Household

Durables

....................

—

7,657,770

—

7,657,770

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

15,568,780

—

15,568,780

Insurance

............................

—

52,499,113

—

52,499,113

Interactive

Media

Services

..............

—

3,071,592

—

3,071,592

Services

...........................

—

5,463,203

—

5,463,203

Leisure

Products

.......................

—

1,133,408

—

1,133,408

Life

Sciences

Tools

Services

............

—

1,366,649

—

1,366,649

Machinery

............................

—

4,976,362

—

4,976,362

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

148

franklintempleton.com

Annual

Report

Level

Total

Franklin

Core

Plus

Bond

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Corporate

Bonds:

(continued)

Media

...............................

—

30,449,453

—

30,449,453

Metals

Mining

.......................

—

9,410,205

—

9,410,205

Multi-Utilities

..........................

—

18,553,820

—

18,553,820

Oil,

Gas

Consumable

Fuels

.............

—

115,972,296

—

115,972,296

Paper

Forest

Products

.................

—

2,051,461

—

2,051,461

Personal

Care

Products

.................

—

9,791,314

—

9,791,314

Pharmaceuticals

.......................

—

31,699,820

—

31,699,820

Residential

REITs

......................

—

2,644,537

—

2,644,537

Semiconductors

Semiconductor

Equipment

—

18,622,973

—

18,622,973

Software

.............................

—

20,459,087

—

20,459,087

Specialized

REITs

......................

—

5,696,673

—

5,696,673

Specialty

Retail

........................

—

1,892,026

—

1,892,026

Technology

Hardware,

Storage

Peripherals

—

14,051,566

—

14,051,566

Textiles,

Apparel

Luxury

Goods

..........

—

1,829,278

—

1,829,278

Tobacco

.............................

—

13,843,198

—

13,843,198

Trading

Companies

Distributors

..........

—

3,634,592

—

3,634,592

Transportation

Infrastructure

..............

—

149,940

—

149,940

Wireless

Telecommunication

Services

.......

—

21,236,652

30,370

21,267,022

Senior

Floating

Rate

Interests

...............

—

82,495,991

—

82,495,991

Marketplace

Loans

.......................

—

2,232,026

Foreign

Government

and

Agency

Securities

....

—

72,813,357

—

72,813,357

U.S.

Government

and

Agency

Securities

.......

—

400,634,101

—

400,634,101

Asset-Backed

Securities

...................

—

251,776,335

—

251,776,335

Commercial

Mortgage-Backed

Securities

......

—

171,598,242

—

171,598,242

Mortgage-Backed

Securities

................

—

841,950,219

—

841,950,219

Residential

Mortgage-Backed

Securities

.......

—

82,603,731

—

82,603,731

Agency

Commercial

Mortgage-Backed

Securities

—

124,772,681

—

124,772,681

Municipal

Bonds

.........................

—

25,908,343

—

25,908,343

Escrows

and

Litigation

Trusts

...............

—

30,300

9,813

40,113

Options

Purchased

.......................

—

1,593,943

—

1,593,943

Short

Term

Investments

...................

234,995,433

—

234,995,433

Total

Investments

Securities

...........

$235,029,276

$3,117,752,418

$3,010,258

$3,355,791,952

Other

Financial

Instruments:

Forward

Exchange

Contracts

...............

$—

$28,768

$—

$28,768

Futures

Contracts

.......................

650,496

—

650,496

Swap

Contracts

.........................

—

1,083,799

—

1,083,799

Total

Other

Financial

Instruments

.........

$650,496

$1,112,567

$—

$1,763,063

–

Liabilities:

Other

Financial

Instruments:

TBA

Sale

Commitments

...................

—

21,469,454

—

21,469,454

Options

Written

..........................

—

1,611,285

—

1,611,285

Forward

Exchange

Contracts

...............

—

54,638

—

54,638

Futures

Contracts

........................

4,429,112

—

4,429,112

Swap

Contracts

.........................

—

816,091

—

816,091

Unfunded

Loan

Commitments

...............

—

Total

Other

Financial

Instruments

.........

$4,429,112

$23,951,560

$—

$28,380,672

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

149

franklintempleton.com

Annual

Report

Level

Total

Franklin

Growth

Opportunities

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

173,242,643

—

83,334,278

256,576,921

Automobiles

..........................

85,179,816

—

85,179,816

Beverages

...........................

25,723,803

—

25,723,803

Biotechnology

.........................

71,019,242

—

71,019,242

Broadline

Retail

.......................

231,609,958

—

231,609,958

Building

Products

......................

54,502,014

—

54,502,014

Capital

Markets

........................

31,307,298

—

31,307,298

Chemicals

...........................

40,510,654

—

40,510,654

Commercial

Services

Supplies

...........

43,926,367

—

2,723,122

46,649,489

Communications

Equipment

..............

73,565,569

—

73,565,569

Construction

Engineering

...............

23,582,804

—

23,582,804

Construction

Materials

..................

33,164,818

—

33,164,818

Consumer

Staples

Distribution

Retail

......

95,083,292

—

95,083,292

Electric

Utilities

........................

29,706,717

—

29,706,717

Electrical

Equipment

....................

99,881,618

—

99,881,618

Electronic

Equipment,

Instruments

Components

........................

146,223,484

—

146,223,484

Entertainment

.........................

93,166,155

—

93,166,155

Financial

Services

......................

63,662,128

—

63,662,128

Ground

Transportation

..................

36,276,034

—

36,276,034

Health

Care

Equipment

Supplies

.........

40,392,590

—

40,392,590

Health

Care

Providers

Services

..........

70,048,506

—

70,048,506

Hotels,

Restaurants

Leisure

.............

30,900,559

—

30,900,559

Interactive

Media

Services

..............

490,272,653

—

490,272,653

Services

...........................

52,256,184

—

24,565,347

76,821,531

Life

Sciences

Tools

Services

............

20,847,485

—

20,847,485

Machinery

............................

43,059,218

—

43,059,218

Pharmaceuticals

.......................

139,753,249

—

139,753,249

Semiconductors

Semiconductor

Equipment

1,085,414,760

—

1,085,414,760

Software

.............................

248,708,703

—

36,914,457

285,623,160

Specialty

Retail

........................

43,866,264

—

43,866,264

Technology

Hardware,

Storage

Peripherals

343,071,707

—

343,071,707

Trading

Companies

Distributors

..........

18,697,433

—

18,697,433

Convertible

Preferred

Stocks

................

—

105,179,711

Preferred

Stocks

.........................

—

13,269,343

Escrows

and

Litigation

Trusts

...............

—

Short

Term

Investments

...................

67,506,254

—

67,506,254

Total

Investments

Securities

...........

$4,146,129,979

$—

$265,986,258

$4,412,116,237

Level

Total

Franklin

Natural

Resources

Fund

Assets:

Investments

Securities:

Common

Stocks

Agricultural

Products

Services

...........

4,409,329

—

4,409,329

Coal

Consumable

Fuels

................

4,441,744

—

4,441,744

Construction

Engineering

...............

2,785,272

—

2,785,272

Construction

Materials

..................

10,586,097

—

10,586,097

Copper

..............................

19,726,940

4,296,899

—

24,023,839

Diversified

Metals

Mining

...............

35,819,407

14,948,688

—

50,768,095

Electrical

Components

Equipment

........

3,383,040

1,751,734

—

5,134,774

Electronic

Equipment

Instruments

........

2,865,567

—

2,865,567

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

150

franklintempleton.com

Annual

Report

Level

Total

Franklin

Natural

Resources

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Fertilizers

Agricultural

Chemicals

.........

20,542,352

—

20,542,352

Gold

................................

57,759,260

—

57,759,260

Heavy

Electrical

Equipment

..............

5,816,818

—

5,816,818

Industrial

Gases

.......................

21,959,015

—

21,959,015

Industrial

Machinery

Supplies

Components

2,575,888

—

2,575,888

Integrated

Oil

Gas

....................

83,029,854

—

83,029,854

Metal,

Glass

Plastic

Containers

..........

5,091,927

—

5,091,927

Oil

Gas

Drilling

......................

4,175,142

—

4,175,142

Oil

Gas

Equipment

Services

...........

38,907,620

2,748,523

—

41,656,143

Oil

Gas

Exploration

Production

.........

88,082,893

7,275,081

—

95,357,974

Oil

Gas

Refining

Marketing

............

22,854,925

—

22,854,925

Oil

Gas

Storage

Transportation

.........

45,494,540

—

45,494,540

Paper

Plastic

Packaging

Products

Materials

3,564,615

—

3,564,615

Precious

Metals

Minerals

...............

—

458,862

—

458,862

Specialty

Chemicals

....................

3,124,408

—

3,124,408

Steel

................................

7,183,640

—

7,183,640

Convertible

Preferred

Stocks

Environmental

Facilities

Services

.........

—

1,899,983

Specialty

Chemicals

....................

2,400,552

—

2,400,552

Warrants

..............................

690,045

—

690,045

Convertible

Bonds

.......................

—

1,500,497

—

1,500,497

Short

Term

Investments

...................

20,455,294

—

20,455,294

Total

Investments

Securities

...........

$517,726,184

$32,980,284

$1,899,983

$552,606,451

Level

Total

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

150,992,893

—

150,992,893

Banks

...............................

51,474,885

—

51,474,885

Biotechnology

.........................

273,465,412

—

273,465,412

Building

Products

......................

80,919,002

—

80,919,002

Capital

Markets

........................

89,824,809

—

89,824,809

Commercial

Services

Supplies

...........

—

Communications

Equipment

..............

43,785,980

—

43,785,980

Construction

Engineering

...............

153,988,145

—

153,988,145

Construction

Materials

..................

7,678,338

—

7,678,338

Consumer

Staples

Distribution

Retail

......

35,475,340

—

35,475,340

Diversified

Consumer

Services

............

1,777,697

—

1,777,697

Electrical

Equipment

....................

31,451,524

—

31,451,524

Electronic

Equipment,

Instruments

Components

........................

112,509,711

—

112,509,711

Energy

Equipment

Services

.............

62,513,939

—

62,513,939

Financial

Services

......................

45,778,002

—

45,778,002

Food

Products

........................

19,211,655

—

19,211,655

Health

Care

Equipment

Supplies

.........

75,818,281

—

75,818,281

Health

Care

Providers

Services

..........

133,615,523

—

133,615,523

Health

Care

REITs

.....................

590,794

—

590,794

Hotel

Resort

REITs

...................

16,053,080

—

16,053,080

Hotels,

Restaurants

Leisure

.............

83,438,253

—

83,438,253

Household

Durables

....................

25,715,499

—

25,715,499

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

151

franklintempleton.com

Annual

Report

Level

Total

Franklin

Small

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Services

...........................

13,872,516

—

13,872,516

Life

Sciences

Tools

Services

............

44,334,220

—

44,334,220

Machinery

............................

72,265,228

—

72,265,228

Media

...............................

39,676,063

—

39,676,063

Oil,

Gas

Consumable

Fuels

.............

57,925,954

—

57,925,954

Passenger

Airlines

.....................

38,233,858

—

38,233,858

Personal

Care

Products

.................

15,489,044

—

15,489,044

Pharmaceuticals

.......................

85,568,826

—

85,568,826

Professional

Services

...................

46,035,034

—

46,035,034

Semiconductors

Semiconductor

Equipment

206,275,723

—

206,275,723

Software

.............................

162,349,454

—

381,580

162,731,034

Specialty

Retail

........................

37,694,709

—

37,694,709

Textiles,

Apparel

Luxury

Goods

..........

15,418,305

—

15,418,305

Trading

Companies

Distributors

..........

25,914,145

—

25,914,145

Convertible

Preferred

Stocks

................

—

68,845,785

Preferred

Stocks

.........................

—

5,096,061

Rights

.................................

—

Escrows

and

Litigation

Trusts

...............

—

Short

Term

Investments

...................

63,346,375

—

63,346,375

Total

Investments

Securities

...........

$2,420,478,216

$—

$74,323,426

$2,494,801,642

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

...................

264,973,242

—

264,973,242

Banks

...............................

43,227,216

—

43,227,216

Biotechnology

.........................

190,626,344

—

190,626,344

Building

Products

......................

55,712,882

—

55,712,882

Capital

Markets

........................

250,197,230

—

250,197,230

Construction

Engineering

...............

113,482,697

—

113,482,697

Consumer

Staples

Distribution

Retail

......

62,009,791

—

62,009,791

Electrical

Equipment

....................

239,145,742

—

239,145,742

Entertainment

.........................

73,990,874

—

73,990,874

Financial

Services

......................

26,770,808

—

26,770,808

Ground

Transportation

..................

51,936,586

—

51,936,586

Health

Care

Equipment

Supplies

.........

103,917,218

—

103,917,218

Health

Care

Providers

Services

..........

71,207,600

—

71,207,600

Health

Care

Technology

.................

26,005,502

—

26,005,502

Hotels,

Restaurants

Leisure

.............

410,440,073

—

410,440,073

Household

Durables

....................

29,791,959

—

29,791,959

Independent

Power

and

Renewable

Electricity

Producers

..........................

75,005,726

—

75,005,726

Interactive

Media

Services

..............

8,605,988

—

8,605,988

Services

...........................

75,900,596

—

75,900,596

Life

Sciences

Tools

Services

............

35,070,042

—

35,070,042

Machinery

............................

32,569,268

—

32,569,268

Media

...............................

46,272,144

—

46,272,144

Oil,

Gas

Consumable

Fuels

.............

117,667,174

—

117,667,174

Professional

Services

...................

53,708,175

—

53,708,175

Real

Estate

Management

Development

....

19,731,377

—

19,731,377

Residential

REITs

......................

12,514,585

—

12,514,585

Semiconductors

Semiconductor

Equipment

219,371,372

—

219,371,372

Software

.............................

257,486,053

—

7,493,068

264,979,121

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

152

franklintempleton.com

Annual

Report

reconciliation

which

Level

inputs

are

used

determining

fair

value

presented

when

there

are

significant

Level

assets

and/or

liabilities

the

beginning

and/or

end

the year.

April

30,

2026,

the

reconciliations

are

follows:

Level

Total

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Common

Stocks:

(continued)

Specialty

Retail

........................

241,764,693

—

241,764,693

Technology

Hardware,

Storage

Peripherals

36,049,454

—

36,049,454

Trading

Companies

Distributors

..........

71,011,299

—

71,011,299

Convertible

Preferred

Stocks

................

—

94,514,669

Preferred

Stocks

.........................

—

2,409,237

Warrants

...............................

—

95,450

Convertible

Bonds

.......................

—

243,073

Senior

Floating

Rate

Interests

...............

—

1,010,160

Escrows

and

Litigation

Trusts

...............

—

Short

Term

Investments

...................

74,959,605

—

74,959,605

Total

Investments

Securities

...........

$3,391,123,315

$—

$105,765,657

$3,496,888,972

For

detailed

categories,

see

the

accompanying

Schedule

Investments.

Includes

financial

instruments

determined

have

value.

Includes

foreign

securities

valued

$4,216,982,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Includes

foreign

securities

valued

$31,479,787,

which

were

categorized

Level

result

the

application

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

information.

Balance

Beginning

Year

Purchases

Sales

Transfer

Into

Level

Transfer

Out

Level

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

(

Depreciation

)

Balance

End

Year

Net

Change

Unrealized

Appreciation

(Depreciation)

Assets

Held

Year

End

Franklin

Biotechnology

Discovery

Fund

Assets:

Investments

Securities:

Common

Stocks

Biotechnology

......

—

2,568,669

—

407,670

2,976,339

407,670

Convertible

Preferred

Stocks

Biotechnology

......

—

5,498,578

—

1,264,255

6,762,833

1,264,255

Household

Products

1,275,136

—

1,097,326

2,372,462

1,097,326

Preferred

Stocks

Real

Estate

Management

Development

.....

1,311,980

—

1,705,608

3,017,588

1,705,609

Warrants

Biotechnology

......

289,723

1,020,208

(9)

4,224,842

—

(13)

3,448,392

8,983,143

3,659,042

Escrows

and

Litigation

Trusts

400,031

—

(838,547)

—

838,547

134,258

534,289

134,258

Total

Investments

Securities

............

$3,276,870

$9,087,455

$(838,556)

$4,224,842

$—

$838,534

$8,057,509

$24,646,654

$8,268,160

Other

Financial

Instruments:

Unfunded

Commitments

......

$—

$311,468

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

153

franklintempleton.com

Annual

Report

Balance

Beginning

Year

Purchases

Sales

Transfer

Into

Level

Transfer

Out

Level

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

End

Year

Net

Change

Unrealized

Appreciation

(Depreciation)

Assets

Held

Year

End

Franklin

Core

Plus

Bond

Fund

Assets:

Investments

Securities:

Common

Stocks

Broadline

Retail

.....

—

(986,430)

986,430

—

Machinery

.........

750,386

—

(12,337)

738,049

(12,337)

Management

Investment

Companies

Capital

Markets

.....

24,292,230

—

(23,568,844)

—

338,532

(1,061,918)

—

Warrants

Machinery

.........

1,787

—

(1,272)

(515)

—

Oil,

Gas

Consumable

Fuels

..........

—

Software

..........

—

(750,000)

750,000

—

Corporate

Bonds

Broadline

Retail

.....

—

Financial

Services

...

—

(20,345)

—

(1,446,931)

1,467,276

—

Wireless

Telecommunication

Services

........

30,370

—

22,053

—

(22,053)

30,370

(22,053)

Senior

Floating

Rate

Interests

Software

..........

—

Marketplace

Loans

Financial

Services

...

29,226,804

115,577

(27,046,640)

—

269,176

(332,891)

2,232,026

(5,273,594)

Escrows

and

Litigation

Trusts

...........

8,787

—

1,026

9,813

1,026

Total

Investments

Securities

............

$54,310,364

$115,577

$(50,635,829)

$—

$22,053

$(2,576,925)

$1,775,018

$3,010,258

$(5,306,958)

Franklin

Growth

Opportunities

Fund

Assets:

Investments

Securities:

Common

Stocks

Aerospace

Defense

26,428,545

4,807,041

—

52,098,692

83,334,278

52,098,692

Commercial

Services

Supplies

........

6,471,119

—

(13,532)

—

13,532

(3,747,997)

2,723,122

(3,747,997)

Services

........

19,175,724

—

5,389,623

24,565,347

5,389,623

Leisure

Products

....

55,397,163

—

(51,496,420)

—

31,766,190

(35,666,933)

—

Software

..........

21,592,488

3,727,240

—

11,594,729

36,914,457

11,594,729

Convertible

Preferred

Stocks

Aerospace

Defense

—

7,367,980

—

5,058,327

12,426,307

5,058,327

Automobile

Components

12,588,882

—

735,343

13,324,225

735,343

Software

..........

37,296,393

9,999,815

—

32,132,971

79,429,179

32,132,971

Preferred

Stocks

Commercial

Services

Supplies

........

7,445,041

—

(549,993)

—

(10,392,598)

3,497,550

—

Software

..........

5,669,986

6,999,887

(3,223,200)

—

(777,033)

4,599,703

13,269,343

5,877,087

Escrows

and

Litigation

Trusts

—

Total

Investments

Securities

............

$192,065,341

$32,901,963

$(55,283,145)

$—

$20,610,091

$75,692,008

$265,986,258

$109,138,775

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

154

franklintempleton.com

Annual

Report

Balance

Beginning

Year

Purchases

Sales

Transfer

Into

Level

Transfer

Out

Level

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

End

Year

Net

Change

Unrealized

Appreciation

(Depreciation)

Assets

Held

Year

End

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

Securities:

Common

Stocks

Commercial

Services

Supplies

........

—

(13,504)

—

13,504

—

Software

..........

412,783

—

(31,203)

381,580

(31,203)

Convertible

Preferred

Stocks

Automobile

Components

14,585,176

—

851,950

15,437,126

851,950

Communications

Equipment

.......

—

5,999,994

—

5,999,994

—

Diversified

Consumer

Services

........

11,929,905

—

777,536

12,707,441

777,536

Software

..........

36,310,373

—

(5,395,527)

30,914,846

(5,395,527)

Specialty

Retail

.....

5,047,362

—

(1,260,984)

3,786,378

(1,260,984)

Preferred

Stocks

Automobile

Components

7,317,732

—

(3,444,816)

3,872,916

(3,444,816)

Commercial

Services

Supplies

........

7,429,670

—

(548,858)

—

(10,371,141)

3,490,329

—

Software

..........

1,456,951

—

(233,806)

1,223,145

(233,806)

Rights

Biotechnology

......

802,045

—

(821,000)

—

660,906

(641,951)

—

(641,951)

Escrows

and

Litigation

Trusts

...........

—

Total

Investments

Securities

............

$85,291,997

$5,999,994

$(1,383,362)

$—

$(9,696,731)

$(5,888,472)

$74,323,426

$(9,378,801)

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

Securities:

Common

Stocks

Leisure

Products

....

42,691,367

—

(39,684,882)

—

25,632,821

(28,639,306)

—

Software

..........

6,311,036

—

1,182,032

7,493,068

1,182,032

Convertible

Preferred

Stocks

Aerospace

Defense

16,944,894

—

11,633,709

28,578,603

11,633,709

Diversified

Consumer

Services

........

7,130,256

—

464,716

7,594,972

464,716

Semiconductors

Semiconductor

Equipment

.......

135,046

—

5,911,247

6,046,293

5,911,247

Software

..........

35,005,434

—

17,289,367

52,294,801

17,289,367

Preferred

Stocks

Semiconductors

Semiconductor

Equipment

.......

180,297

—

2,228,940

2,409,237

2,228,940

Warrants

Semiconductors

Semiconductor

Equipment

.......

6,183

—

89,267

95,450

89,267

Convertible

Bonds

Semiconductors

Semiconductor

Equipment

.......

198,705

—

44,368

243,073

44,368

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

155

franklintempleton.com

Annual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

fair

value

result

changes

unobservable

valuation

inputs

April

30,

2026,

are

follows:

Balance

Beginning

Year

Purchases

Sales

Transfer

Into

Level

Transfer

Out

Level

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

End

Year

Net

Change

Unrealized

Appreciation

(Depreciation)

Assets

Held

Year

End

Franklin

Small-Mid

Cap

Growth

Fund

(continued)

Assets:

(continued)

Investments

Securities:

(continued)

Senior

Floating

Rate

Interests

Semiconductors

Semiconductor

Equipment

.......

824,303

109,594

—

(14,078)

—

90,341

1,010,160

90,341

Escrows

and

Litigation

Trusts

—

Total

Investments

Securities

............

$109,427,521

$109,594

$(39,684,882)

$—

$(14,078)

$25,632,821

$10,294,681

$105,765,657

$38,933,987

Purchases

include

all

purchases

securities

and

securities

received

corporate

actions.

Sales

include

all

sales

securities,

maturities,

paydowns

and

securities

tendered

corporate

actions.

Transferred

into

Level

result

the

unavailability

quoted

market

price

active

market

for

identical

securities

result

the

unreliability

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

corporate

action.

Includes

financial

instruments

determined

have

value.

Description

Fair

Value

End

Year

Valuation

Technique

Unobservable

Inputs

Amount

Range

(Weighted

Average)

Impact

Fair

Value

Input

Increases

Franklin

Growth

Opportunities

Fund

Assets:

Investments

Securities:

Convertible

Preferred

Stocks:

Software.

$64,623,462

Market

comparables

Discount

for

lack

marketability

12.4%

Decrease

Revenue

multiple

27.9x

Increase

Revenue

$5.7

bil

Increase

Trade

price

$190.0

Increase

All

Other

Investments.

201,362,796

b,c,d

Total.

$265,986,258

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

156

franklintempleton.com

Annual

Report

Description

Fair

Value

End

Year

Valuation

Technique

Unobservable

Inputs

Amount

Range

(Weighted

Average)

Impact

Fair

Value

Input

Increases

Franklin

Small

Cap

Growth

Fund

Assets:

Investments

Securities:

Convertible

Preferred

Stocks:

Diversified

Consumer

Services.

$12,707,441

Market

comparables

Discount

for

lack

marketability

9.1%

Decrease

EBITDA

multiple

5.8x

Increase

Revenue

multiple

1.3x

Increase

Volatility

41.9%

Increase

Software

21,170,063

Market

comparables

Discount

for

lack

marketability

11.0%

Decrease

Revenue

multiple

2.5x

Increase

Volatility

48.9%

Increase

All

Other

Investments.

40,445,922

b,c,d

Total.

$74,323,426

Description

Fair

Value

End

Year

Valuation

Technique

Unobservable

Inputs

Amount

Range

(Weighted

Average)

Impact

Fair

Value

Input

Increases

Franklin

Small-Mid

Cap

Growth

Fund

Assets:

Investments

Securities:

Convertible

Preferred

Stocks:

Software

.......................

$43,523,409

Market

comparables

Discount

for

lack

marketability

12.4%

Decrease

Revenue

multiple

27.9x

Increase

Revenue

$5.7

bil

Increase

Trade

price

$190.0

Increase

All

Other

Investments.

62,242,248

b,c,d

Total.

$105,765,657

Represents

the

directional

change

the

fair

value

the

Level

financial

instruments

that

would

result

from

significant

and

reasonable

increase

the

corresponding

input.

significant

and

reasonable

decrease

the

input

would

have

the

opposite

effect.

Significant

increases

and

decreases

these

inputs

isolation

could

result

significantly

higher

lower

fair

value

measurements.

Includes

the

fair

value

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

Includes

financial

instruments

determined

have

value.

Includes

the

fair

value

assets

and/or

liabilities

derived

from

recent

transactions,

private

transaction

prices,

non-public

third-party

pricing

information

that

unobservable.

Abbreviations

List

EBITDA

Earnings

before

interest,

taxes,

depreciation

and

amortization

Enterprise

value

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

Notes

Financial

Statements

157

franklintempleton.com

Annual

Report

Level

financial

instruments,

for

the

Franklin

Biotechnology

Discovery

Fund,

include

the

fair

value

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

14.

Operating

Segments

Each

Fund

operates

single

operating

segment,

which

investment

portfolio.

The

portfolio

managers

assigned

the

Fund

within the

Funds'

investment

manager

serve

the

Chief

Operating

Decision

Maker

(“CODM”)

and are

responsible

for

evaluating each

Fund's

operating

results

and

allocating

resources

accordance

with each

Fund’s

investment

strategy.

Internal

reporting

provided

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

the

financial

statements.

For

information

regarding

segment

assets,

segment

profit

loss,

and

significant

expenses,

refer

the

Statements

Assets

and

Liabilities

and

the

Statements

Operations,

along

with

the

notes

the

financial

statements.

The

Schedules

Investments

provides

details

the

Funds'

investments

that

generate

returns

such

interest,

dividends,

and

realized

and

unrealized

gains

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

the

Financial

Highlights.

15.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

the

financial

statements

and

determined

that

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

the

financial

statements.

13.

Fair

Value

Measurements

(continued)

Franklin

Strategic

Series

159

franklintempleton.com

Annual

Report

Independent

Registered

Public

Accounting

Firm

the

Board

Trustees

Franklin

Strategic

Series

and

Shareholders

Franklin

Biotechnology

Discovery

Fund,

Franklin

Core

Plus

Bond

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Natural

Resources

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

Opinions

the

Financial

Statements

have

audited

the

accompanying

statements

assets

and

liabilities,

including

the

schedules

investments,

Franklin

Biotechnology

Discovery

Fund,

Franklin

Core

Plus

Bond

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Natural

Resources

Fund,

Franklin

Small

Cap

Growth

Fund

and

Franklin

Small-Mid

Cap

Growth

Fund

(six

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

the

"Funds")

April

30,

2026,

the

statements

operations

for

the

year

ended

April

30,

2026,

the

statements

changes

net

assets

for

each

the

two

years

the

period

ended

April

30,

2026,

including

the

notes,

and

the

financial

highlights

for

each

the

five

years

the

period

ended

April

30,

2026

(collectively

referred

the

“financial

statements”).

our

opinion,

the

financial

statements

present

fairly,

all

material

respects,

the

financial

position

each

the

Funds

April

30,

2026,

the

results

each

their

operations

for

the

year

then

ended,

the

changes

each

their

net

assets

for

each

the

two

years

the

period

ended

April

30,

2026

and

each

the

financial

highlights

for

each

the

five

years

the

period

ended

April

30,

2026

conformity

with

accounting

principles

generally

accepted

the

United

States

America.

Basis

for

Opinions

These

financial

statements

are

the

responsibility

the

Funds’

management.

Our

responsibility

express

opinion

the

Funds’

financial

statements

based

our

audits.

are

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

independent

with

respect

the

Funds

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

the

Securities

and

Exchange

Commission

and

the

PCAOB.

conducted

our

audits

these

financial

statements

accordance

with

the

standards

the

PCAOB.

Those

standards

require

that

plan

and

perform

the

audit

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

material

misstatement,

whether

due

error

fraud.

Our

audits

included

performing

procedures

assess

the

risks

material

misstatement

the

financial

statements,

whether

due

error

fraud,

and

performing

procedures

that

respond

those

risks.

Such

procedures

included

examining,

test

basis,

evidence

regarding

the

amounts

and

disclosures

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

management,

well

evaluating

the

overall

presentation

the

financial

statements.

Our

procedures

included

confirmation

securities

owned

April

30,

2026

correspondence

with

the

custodians,

transfer

agent,

private

placement

agents,

agent

banks,

portfolio

companies

and

brokers;

when

replies

were

not

received

from

private

placement

agents,

agent

banks,

brokers,

performed

other

auditing

procedures.

believe

that

our

audits

provide

reasonable

basis

for

our

opinions.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

June

17,

2026

have

served

the

auditor

one

investment

companies

the

Franklin

Templeton

Group

Funds

since

1948.

Franklin

Strategic

Series

Tax

Information

(unaudited)

160

franklintempleton.com

Annual

Report

mid-February,

tax

information

shareholder's

proportionate

distributions

paid

during

the

preceding

calendar

year

will

received,

applicable.

Please

also

refer

www.franklintempleton.com

for

per

tax

information

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

consult

with

their

tax

advisors

for

further

information

the

treatment

these

amounts

their

tax

returns.

The

following

tax

information

for

the

Funds

required

furnished

shareholders

with

respect

income

earned

and

distributions

paid

during their

fiscal

year.

The

Funds

below hereby

report

the

following

amounts,

subsequently

determined

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

April

30,

2026:

Note

(1)

The

Law

varies

each

state

whether

and

what

percentage

dividend

income

attributable

Federal

obligations

exempt

from

state

income

tax.

Shareholders

are

advised

consult

with

their

tax

advisors

determine

any

portion

the

dividends

received

exempt

from

state

income

taxes.

Pursuant

to:

Franklin

Biotechnology

Discovery

Fund

Franklin

Core

Plus

Bond

Fund

Franklin

Growth

Opportunities

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

$77,442,568

—

$776,486,096

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$3,229,092

$778,002

$13,529,794

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$3,467,481

$778,002

$15,057,578

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$11,766,876

—

Section

163(j)

Interest

Dividends

Earned

§163(j)

—

$121,271,847

—

Interest

Earned

from

Federal

Obligations

Note

(1)

—

$17,545,319

—

Pursuant

to:

Franklin

Natural

Resources

Fund

Franklin

Small

Cap

Growth

Fund

Franklin

Small-Mid

Cap

Growth

Fund

Long-Term

Capital

Gain

Dividends

Distributed

§852(b)(3)(C)

—

$203,398,002

$283,156,503

Income

Eligible

for

Dividends

Received

Deduction

(DRD)

§854(b)(1)(A)

$4,573,547

$7,816,686

$15,980,516

Qualified

Dividend

Income

Earned

(QDI)

§854(b)(1)(B)

$8,009,347

$7,869,850

$15,988,209

Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

—

$7,530,976

—

Section

163(j)

Interest

Dividends

Earned

§163(j)

$58,692

$1,308,109

—

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

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.

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, there unto duly authorized.

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/ Christopher Kings
	Christopher Kings
	Chief Executive Officer – Finance and Administration

Date:	June 25, 2026

By:	/s/ Jeffrey White
	Jeffrey White
	Chief Financial Officer, Chief Accounting Officer and Treasurer

Date:	June 25, 2026