false 0000881309 N-1A N-CSRS 0000881309 tsr:C000205976Member 2026-03-01 2026-08-31 0000881309 tsr:C000205976Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274045_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274047_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274048_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274049_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274053_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409043993_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274046_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409044002_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274050_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274054_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274051_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202409274052_8628Member 2026-08-31 0000881309 tsr:C000205976Member tsr:bench202503265260_8628Member 2026-08-31 0000881309 2026-03-01 2026-08-31 tsr:Years iso4217:USD xbrli:pure xbrli:shares iso4217:USD xbrli:shares 0000881309 tsr:C000018537Member 2026-03-01 2026-08-31 0000881309 tsr:C000018537Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274045_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274047_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274048_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274049_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274053_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409043993_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274046_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409044002_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274050_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274054_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274051_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202409274052_8627Member 2026-08-31 0000881309 tsr:C000018537Member tsr:bench202503265260_8627Member 2026-08-31 0000881309 tsr:C000018539Member 2026-03-01 2026-08-31 0000881309 tsr:C000018539Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274045_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274047_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274048_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274049_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274053_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409043993_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274046_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409044002_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274050_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274054_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274051_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202409274052_8629Member 2026-08-31 0000881309 tsr:C000018539Member tsr:bench202503265260_8629Member 2026-08-31 0000881309 tsr:C000194351Member 2026-03-01 2026-08-31 0000881309 tsr:C000194351Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274045_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274047_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274048_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274049_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274053_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409043993_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274046_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409044002_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274050_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274054_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274051_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202409274052_8630Member 2026-08-31 0000881309 tsr:C000194351Member tsr:bench202503265260_8630Member 2026-08-31 0000881309 tsr:C000040036Member 2026-03-01 2026-08-31 0000881309 tsr:C000040036Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274045_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274047_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274048_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274049_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274053_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409043993_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274046_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409044002_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274050_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274054_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274051_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202409274052_8626Member 2026-08-31 0000881309 tsr:C000040036Member tsr:bench202503265260_8626Member 2026-08-31
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-06481

 

Franklin Municipal Securities Trust

(Exact name of registrant as specified in charter)

 

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

 

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (650) 312-2000

 

Date of fiscal year end: February 28

 

Date of reporting period: August 31, 2026

 

 

 

ITEM 1. REPORT TO STOCKHOLDERS

 

  (a) The Report to Shareholders is filed herewith
Franklin California High Yield Municipal Fund
image
Class A   [FCQAX]
Semi-Annual Shareholder Report | August 31, 2026
image
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2026, to August 31, 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 SIX MONTHS? (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
$40
0.80%
† Annualized.
KEY FUND STATISTICS (as of August 31, 2026)
Total Net Assets
$3,301,186,543
Total Number of Portfolio Holdings
831
Portfolio Turnover Rate
3.43%
WHAT DID THE FUND INVEST IN? (as of August 31, 2026)
Portfolio Composition* (% of Total Investments)
image
* Does not include derivatives, except purchased options, if any.  
image
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
Franklin California High Yield Municipal Fund  PAGE 1  1175-STSR-1026
23.520.612.611.39.46.96.34.51.71.60.90.40.3
 
Franklin California High Yield Municipal Fund
image
Class A1   [FCAMX]
Semi-Annual Shareholder Report | August 31, 2026
image
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2026, to August 31, 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 SIX MONTHS? (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 A1
$33
0.65%
† Annualized.
KEY FUND STATISTICS (as of August 31, 2026)
Total Net Assets
$3,301,186,543
Total Number of Portfolio Holdings
831
Portfolio Turnover Rate
3.43%
WHAT DID THE FUND INVEST IN? (as of August 31, 2026)
Portfolio Composition* (% of Total Investments)
image
* Does not include derivatives, except purchased options, if any.  
image
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
Franklin California High Yield Municipal Fund  PAGE 1  175-STSR-1026
23.520.612.611.39.46.96.34.51.71.60.90.40.3
 
Franklin California High Yield Municipal Fund
image
Class C   [FCAHX]
Semi-Annual Shareholder Report | August 31, 2026
image
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2026, to August 31, 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 SIX MONTHS? (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
$60
1.20%
† Annualized.
KEY FUND STATISTICS (as of August 31, 2026)
Total Net Assets
$3,301,186,543
Total Number of Portfolio Holdings
831
Portfolio Turnover Rate
3.43%
WHAT DID THE FUND INVEST IN? (as of August 31, 2026)
Portfolio Composition* (% of Total Investments)
image
* Does not include derivatives, except purchased options, if any.  
image
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
Franklin California High Yield Municipal Fund  PAGE 1  275-STSR-1026
23.520.612.611.39.46.96.34.51.71.60.90.40.3
 
Franklin California High Yield Municipal Fund
image
Class R6   [FCAQX]
Semi-Annual Shareholder Report | August 31, 2026
image
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2026, to August 31, 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 SIX MONTHS? (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
$25
0.50%
† Annualized.
KEY FUND STATISTICS (as of August 31, 2026)
Total Net Assets
$3,301,186,543
Total Number of Portfolio Holdings
831
Portfolio Turnover Rate
3.43%
WHAT DID THE FUND INVEST IN? (as of August 31, 2026)
Portfolio Composition* (% of Total Investments)
image
* Does not include derivatives, except purchased options, if any.  
image
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
Franklin California High Yield Municipal Fund  PAGE 1  8175-STSR-1026
23.520.612.611.39.46.96.34.51.71.60.90.40.3
 
Franklin California High Yield Municipal Fund
image
Advisor Class   [FVCAX]
Semi-Annual Shareholder Report | August 31, 2026
image
This semi-annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2026, to August 31, 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 SIX MONTHS? (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
$28
0.55%
† Annualized.
KEY FUND STATISTICS (as of August 31, 2026)
Total Net Assets
$3,301,186,543
Total Number of Portfolio Holdings
831
Portfolio Turnover Rate
3.43%
WHAT DID THE FUND INVEST IN? (as of August 31, 2026)
Portfolio Composition* (% of Total Investments)
image
* Does not include derivatives, except purchased options, if any.  
image
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
Franklin California High Yield Municipal Fund  PAGE 1  675-STSR-1026
23.520.612.611.39.46.96.34.51.71.60.90.40.3
 
  (b) Not applicable

 

ITEM 2. CODE OF ETHICS.

 

Not applicable

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

 

Not applicable

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

 

Not applicable.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

 

Not applicable.

 

ITEM 6. SCHEDULE OF INVESTMENTS.

 

  (a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.
     
  (b) Not applicable.
 

 

ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

Franklin
California
High
Yield
Municipal
Fund
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
August
31, 2026
If
you
need
assistance
accessing
this
content,
please
reach
out
to
your
sales
representative
or
send
an
email
to
accessibility@franklintempleton.com
.
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information—Semiannual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
31
Notes
to
Financial
Statements
35
Changes
In
and
Disagreements
with
Accountants
44
Results
of
Meeting(s)
of
Shareholders
44
Remuneration
Paid
to
Directors,
Officers
and
Others
44
Board
Approval
of
Management
and
Subadvisory
Agreements
44
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
2026
2025
2024
a
2023
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
............
$9.86
$9.91
$9.85
$9.69
$11.02
$11.49
$10.81
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.20
0.41
0.39
0.39
0.36
0.26
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.06)
0.06
0.16
(1.35)
(0.49)
0.67
Total
from
investment
operations
...........
(0.12)
0.35
0.45
0.55
(0.99)
(0.23)
1.02
Less
distributions
from:
Net
investment
income
..
(0.20)
(0.40)
(0.39)
(0.39)
(0.34)
(0.24)
(0.34)
Net
asset
value,
end
of
period
..............
$9.54
$9.86
$9.91
$9.85
$9.69
$11.02
$11.49
Total
return
e
...........
(1.19)%
3.74%
4.67%
5.85%
(9.03)%
(2.09)%
9.57%
Ratios
to
average
net
assets
f
Expenses
.............
0.80%
0.81%
0.80%
g
0.84%
g
0.88%
g
0.81%
g
0.79%
g
Net
investment
income
...
4.19%
4.21%
3.98%
4.10%
3.63%
2.88%
3.10%
Supplemental
data
Net
assets,
end
of
period
(000’s)
..............
$1,205,935
$1,168,018
$981,536
$710,549
$595,614
$714,052
$618,967
Portfolio
turnover
rate
....
3.43%
13.89%
10.33%
10.93%
18.77%
10.19%
9.20%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
2026
2025
2024
a
2023
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
............
$9.84
$9.89
$9.83
$9.67
$10.99
$11.47
$10.79
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.21
0.42
0.41
0.41
0.38
0.26
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.05)
0.06
0.15
(1.35)
(0.49)
0.67
Total
from
investment
operations
...........
(0.11)
0.37
0.47
0.56
(0.97)
(0.23)
1.04
Less
distributions
from:
Net
investment
income
..
(0.21)
(0.42)
(0.41)
(0.40)
(0.35)
(0.25)
(0.36)
Net
asset
value,
end
of
period
..............
$9.52
$9.84
$9.89
$9.83
$9.67
$10.99
$11.47
Total
return
e
...........
(1.11)%
3.91%
4.84%
6.02%
(8.83)%
(2.07)%
9.76%
Ratios
to
average
net
assets
f
Expenses
.............
0.65%
0.66%
0.65%
g
0.69%
g
0.72%
g
0.66%
g
0.64%
g
Net
investment
income
...
4.34%
4.37%
4.13%
4.25%
3.78%
3.04%
3.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
..............
$619,494
$662,265
$712,086
$776,199
$862,312
$1,166,095
$1,254,701
Portfolio
turnover
rate
....
3.43%
13.89%
10.33%
10.93%
18.77%
10.19%
9.20%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
2026
2025
2024
a
2023
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
............
$9.91
$9.97
$9.91
$9.75
$11.08
$11.56
$10.87
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.18
0.37
0.35
0.36
0.32
0.21
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.07)
0.06
0.15
(1.35)
(0.49)
0.69
Total
from
investment
operations
...........
(0.14)
0.30
0.41
0.51
(1.03)
(0.28)
0.99
Less
distributions
from:
Net
investment
income
..
(0.18)
(0.36)
(0.35)
(0.35)
(0.30)
(0.20)
(0.30)
Net
asset
value,
end
of
period
..............
$9.59
$9.91
$9.97
$9.91
$9.75
$11.08
$11.56
Total
return
e
...........
(1.38)%
3.20%
4.22%
5.39%
(9.35)%
(2.46)%
9.18%
Ratios
to
average
net
assets
f
Expenses
.............
1.20%
1.20%
1.20%
g
1.23%
g
1.27%
g
1.20%
g
1.19%
g
Net
investment
income
...
3.76%
3.78%
3.54%
3.66%
3.19%
2.47%
2.69%
Supplemental
data
Net
assets,
end
of
period
(000’s)
..............
$66,357
$73,036
$85,107
$92,877
$118,149
$180,173
$223,652
Portfolio
turnover
rate
....
3.43%
13.89%
10.33%
10.93%
18.77%
10.19%
9.20%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
2026
2025
2024
a
2023
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
............
$9.87
$9.93
$9.86
$9.70
$11.03
$11.51
$10.82
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.22
0.43
0.42
0.42
0.39
0.27
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.06)
0.07
0.16
(1.35)
(0.49)
0.68
Total
from
investment
operations
...........
(0.10)
0.37
0.49
0.58
(0.96)
(0.22)
1.06
Less
distributions
from:
Net
investment
income
..
(0.22)
(0.43)
(0.42)
(0.42)
(0.37)
(0.26)
(0.37)
Net
asset
value,
end
of
period
..............
$9.55
$9.87
$9.93
$9.86
$9.70
$11.03
$11.51
Total
return
e
...........
(1.03)%
4.05%
4.97%
6.14%
(8.76)%
(1.96)%
9.97%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...
0.50%
0.51%
0.51%
0.55%
0.58%
0.53%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
...
0.50%
0.51%
0.51%
g
0.55%
g
0.58%
g,h
0.52%
g
0.51%
g
Net
investment
income
...
4.52%
4.50%
4.26%
4.38%
3.91%
3.16%
3.37%
Supplemental
data
Net
assets,
end
of
period
(000’s)
..............
$154,938
$77,623
$65,877
$50,713
$44,724
$60,366
$45,216
Portfolio
turnover
rate
....
3.43%
13.89%
10.33%
10.93%
18.77%
10.19%
9.20%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
Year
Ended
February
28,
2022
b
Year
Ended
May
31,
2021
2026
2025
2024
a
2023
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
............
$9.86
$9.91
$9.85
$9.69
$11.02
$11.50
$10.82
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.22
0.43
0.42
0.42
0.39
0.27
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.05)
0.06
0.15
(1.36)
(0.49)
0.67
Total
from
investment
operations
...........
(0.10)
0.38
0.48
0.57
(0.97)
(0.22)
1.05
Less
distributions
from:
Net
investment
income
..
(0.22)
(0.43)
(0.42)
(0.41)
(0.36)
(0.26)
(0.37)
Net
asset
value,
end
of
period
..............
$9.54
$9.86
$9.91
$9.85
$9.69
$11.02
$11.50
Total
return
e
...........
(1.06)%
4.00%
4.93%
6.11%
(8.80)%
(1.99)%
9.84%
Ratios
to
average
net
assets
f
Expenses
.............
0.55%
0.56%
0.55%
g
0.59%
g
0.62%
g
0.56%
g
0.54%
g
Net
investment
income
...
4.43%
4.46%
4.22%
4.34%
3.87%
3.13%
3.35%
Supplemental
data
Net
assets,
end
of
period
(000’s)
..............
$1,254,463
$1,300,318
$1,185,778
$914,542
$922,275
$1,186,382
$1,113,278
Portfolio
turnover
rate
....
3.43%
13.89%
10.33%
10.93%
18.77%
10.19%
9.20%
a
For
the
year
ended
February
29.
b
For
the
period
June
1,
2021
to
February
28,
2022.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited),
August
31,
2026
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Shares
a
Value
a
Common
Stocks
0.0%
Independent
Power
and
Renewable
Electricity
Producers
0.0%
a,b
AES
Guayama
Holdings
BV
...........................................
60,804
$
—
b
Total
Common
Stocks
(Cost
$
–
)
...............................................
—
Warrants
a
a
a
a
Warrants
0.0%
Financial
Services
0.0%
a,b
Brightline
Train
Holdings
West
LLC
,
11/26/35
..............................
86,700
—
Total
Warrants
(Cost
$
–
)
......................................................
—
Principal
Amount
Corporate
Bonds
2.0%
Commercial
Services
&
Supplies
0.5%
a
,c
,d
CalPlant
I
LLC
,
Senior
Secured
Note
,
144A,
15
%
,
2/28/27
...............................
$
4,195,000
4,195,000
21
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
9/30/23
..........................
1,370,000
178,100
21
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
9/30/23
..........................
5,220,000
678,600
22
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
9/30/23
..........................
2,875,000
373,750
22
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
9/30/23
..........................
250,000
32,500
22
C
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,885,000
1,885,000
22
X
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
2,830,000
2,830,000
23
A
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,000,000
1,000,000
23
B
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
890,000
890,000
23
C
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,415,000
1,415,000
23
D
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,230,000
1,230,000
23
E
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/31/23
..........................
1,385,000
1,385,000
16,092,950
Diversified
Consumer
Services
1.2%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
41,035,000
40,601,260
Electric
Utilities
0.3%
d
Mission
Rock
Utilities,
Inc.
,
144A,
7
%
,
7/01/27
..............................
9,600,000
9,708,527
Total
Corporate
Bonds
(Cost
$
75,152,563
)
......................................
66,402,737
Municipal
Bonds
95.6%
Arizona
0.4%
d
Maricopa
County
Industrial
Development
Authority
,
Grand
Canyon
University
Obligated
Group
,
Revenue
,
144A,
2024
,
7.375
%
,
10/01/29
..........................
13,640,000
14,131,354
California
88.9%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/38
........................................................
850,000
873,816
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/43
........................................................
1,000,000
1,005,967
City
of
Alameda
Community
Facilities
District
No.
22-1
,
Special
Tax
,
2023
,
5
%
,
9/01/53
........................................................
1,000,000
985,106
Bay
Area
Toll
Authority
,
Revenue
,
2025
F-1
,
Refunding
,
5
%
,
4/01/53
.............
1,785,000
1,850,187
Benicia
Unified
School
District
,
GO
,
2024
B
,
5
%
,
8/01/58
......................
7,000,000
7,191,635
Burbank-Glendale-Pasadena
Airport
Authority
Brick
Campaign
,
Revenue,
Senior
Lien
,
2024
B
,
AG
Insured
,
4.375
%
,
7/01/49
.................
5,000,000
4,709,323
Revenue,
Senior
Lien
,
2024
B
,
AG
Insured
,
4.5
%
,
7/01/54
...................
5,750,000
5,372,312
Revenue,
Senior
Lien
,
2026
B
,
AG
Insured
,
5.5
%
,
7/01/51
...................
9,000,000
9,460,560
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Community
Choice
Financing
Authority
,
e
Revenue
,
2021
B-1
,
Mandatory
Put
,
4
%
,
8/01/31
..........................
$
10,000,000
$
10,040,302
e
Revenue
,
2024
B
,
Mandatory
Put
,
5
%
,
12/01/32
...........................
10,000,000
10,161,136
e
Revenue
,
2024
D
,
Mandatory
Put
,
5
%
,
9/01/32
...........................
10,000,000
10,696,023
e
Revenue
,
2024
E
,
Mandatory
Put
,
5
%
,
9/01/32
............................
10,000,000
10,480,863
e
Revenue
,
2025
A
,
Mandatory
Put
,
5
%
,
5/01/35
............................
5,000,000
5,097,836
e
Revenue
,
2025
C
,
Mandatory
Put
,
5
%
,
10/01/33
...........................
12,500,000
12,960,875
Revenue
,
2026
B
,
5
%
,
3/01/36
........................................
12,800,000
13,154,912
Revenue
,
2026
E
,
5
%
,
7/01/35
........................................
5,500,000
5,901,759
California
Community
College
Financing
Authority
,
d
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
A
,
5.75
%
,
7/01/60
.....
30,295,000
20,311,492
d
NCCD-Napa
Valley
Properties
LLC
,
Revenue
,
144A,
2022
B
,
7.75
%
,
7/01/30
.....
2,035,000
1,990,125
c,d
NCCD-Napa
Valley
Properties
LLC
,
Revenue,
Sub.
Lien
,
144A,
2022
C
,
6.75
%
,
7/01/60
........................................................
7,050,000
4,930,057
NCCD-Orange
Coast
Properties
LLC
,
Revenue
,
2018
,
5.25
%
,
5/01/48
..........
225,000
225,701
NCCD-Orange
Coast
Properties
LLC
,
Revenue
,
2018
,
5.25
%
,
5/01/53
..........
7,785,000
7,790,282
d
California
Community
Housing
Agency
,
Annadel
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
4/01/49
..................
27,050,000
20,809,105
Arbors
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
8/01/50
....................
8,100,000
7,458,035
Brio
Apartments
&
Next
on
Lex
Apartments
,
Revenue,
Sub.
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
....................................................
9,265,000
7,149,293
Exchange
at
Bayfront
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/51
........................................................
13,000,000
5,747,387
Mira
Vista
Hills
Apartments
,
Revenue
,
144A,
2021
A
,
4
%
,
2/01/56
.............
18,800,000
9,079,172
Serenity
at
Larkspur
Apartments
,
Revenue
,
144A,
2020
A
,
5
%
,
2/01/50
.........
4,954,579
94,137
Summit
at
Sausalito
Apartments
,
Revenue
,
144A,
2021
A-2
,
4
%
,
2/01/50
........
10,000,000
7,335,978
Twin
Creek
Apartments
,
Revenue,
Junior
Lien
,
144A,
2022
B
,
5.5
%
,
2/01/40
.....
7,475,000
6,133,547
Verdant
at
Green
Valley
Apartments
,
Revenue
,
144A,
2019
A
,
5
%
,
8/01/49
.......
15,000,000
13,678,790
California
County
Tobacco
Securitization
Agency
,
Merced
County
Tobacco
Funding
Corp.
,
Revenue
,
2020
B
,
Refunding
,
5
%
,
6/01/50
3,000,000
2,757,290
f
Sonoma
County
Securitization
Corp.
,
Revenue
,
2020
B-2
,
Refunding
,
5.77
%,
6/01/55
10,000,000
1,992,815
California
Educational
Facilities
Authority
,
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/37
.......
1,265,000
1,278,014
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/38
.......
1,125,000
1,133,547
Art
Center
College
of
Design
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/44
.......
10,375,000
10,255,208
Leland
Stanford
Junior
University
(The)
,
Revenue
,
T-1
,
5
%
,
3/15/39
............
4,185,000
4,791,434
Leland
Stanford
Junior
University
(The)
,
Revenue
,
U-3
,
5
%
,
6/01/43
............
5,815,000
6,592,814
University
of
Southern
California
,
Revenue
,
2025
A
,
5
%
,
10/01/55
.............
15,000,000
15,601,104
California
Enterprise
Development
Authority
,
Castilleja
School
Foundation
,
Revenue
,
2024
,
4
%
,
6/01/54
...................
10,000,000
8,869,742
d
Real
Journey
Academies
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/54
..
2,000,000
1,862,990
d
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/36
250,000
237,662
d
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/51
630,000
503,804
d
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/61
845,000
646,133
d
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2024
,
5
%
,
6/01/54
.........
1,400,000
1,297,811
d
Rocklin
Academy
Obligated
Group
,
Revenue
,
144A,
2024
,
5
%
,
6/01/64
.........
1,350,000
1,222,958
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
4
%
,
3/01/39
........................................................
6,190,000
5,802,462
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
12/01/43
4,980,000
5,180,728
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
12/01/44
4,720,000
4,881,288
Children's
Hospital
Los
Angeles
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
4
%
,
8/15/49
........................................................
3,375,000
2,829,276
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
12/01/49
......
10,775,000
11,249,996
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2024
A
,
5
%
,
12/01/54
.........
5,225,000
5,295,223
Kaiser
Foundation
Hospitals
,
Revenue
,
2017
A-2
,
5
%
,
11/01/47
...............
21,565,000
23,045,996
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Health
Facilities
Financing
Authority,
(continued)
Kaiser
Foundation
Hospitals
,
Revenue
,
A-2
,
BAM
Insured
,
5
%
,
11/01/47
........
$
10,000,000
$
10,975,601
Sutter
Health
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/48
...............
12,485,000
12,616,824
California
Housing
Finance
Agency
,
Revenue
,
2019-2
,
A
,
4
%
,
3/20/33
......................................
45,344
45,690
d,e
300
De
Haro
Venture
LP
,
Revenue
,
144A,
2025
P-S
,
Mandatory
Put
,
8
%
,
1/01/44
.
16,970,000
17,040,067
d
Foothill
San
Regis
Apartments
LLC
,
Revenue
,
144A,
2026
U-2
,
II
,
6.85
%
,
4/01/36
.
4,471,000
4,391,744
d
Redwood
Gardens
Renewal
LP
,
Revenue
,
144A,
2021
N-S
,
4
%
,
3/01/37
........
3,165,000
2,730,353
d,e
Shermanair
Apartments
Owner
LP
,
Revenue
,
144A,
2021
Q-S
,
Mandatory
Put
,
4.5
%
,
9/01/36
........................................................
4,000,000
3,660,578
California
Infrastructure
&
Economic
Development
Bank
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2024
A
,
5.25
%
,
7/01/49
6,000,000
6,062,153
d,e
Desertxpress
Enterprises
LLC
,
Revenue
,
144A,
2025
B
,
Refunding
,
Mandatory
Put
,
12
%
,
11/02/26
...................................................
720,000
457,200
Equitable
School
Revolving
Fund
LLC
Obligated
Group
,
Revenue
,
2024
B
,
5
%
,
11/01/49
.......................................................
250,000
253,391
Equitable
School
Revolving
Fund
LLC
Obligated
Group
,
Revenue
,
2024
B
,
5
%
,
11/01/54
.......................................................
3,000,000
3,008,533
Equitable
School
Revolving
Fund
LLC
Obligated
Group
,
Revenue
,
2024
B
,
5
%
,
11/01/59
.......................................................
1,000,000
998,104
d
Goodwill
Industries
of
Sacramento
Valley
&
Northern
Nevada,
Inc.
,
Revenue
,
144A,
2016
A
,
5
%
,
1/01/47
..............................................
10,360,000
7,917,516
d
La
Scuola
International
School
,
Revenue
,
144A,
2024
,
5
%
,
7/01/44
............
1,375,000
1,315,930
d
La
Scuola
International
School
,
Revenue
,
144A,
2024
,
5.125
%
,
7/01/54
.........
1,630,000
1,473,835
d
La
Scuola
International
School
,
Revenue
,
144A,
2024
,
5.25
%
,
7/01/64
..........
3,075,000
2,764,435
d
WFCS
Holdings
II
LLC
,
Revenue
,
144A,
2021
A-1
,
5
%
,
1/01/56
...............
1,600,000
1,348,905
d
WFCS
Holdings
LLC
,
Revenue
,
144A,
2020
A-1
,
5
%
,
1/01/55
.................
2,300,000
1,952,396
California
Municipal
Finance
Authority
,
a
8
%
,
12/01/42
.....................................................
8,300,000
8,223,757
d,e
Revenue
,
144A,
2023
B-1
,
Mandatory
Put
,
7
%
,
4/01/33
.....................
20,770,000
20,514,465
d,e
Revenue
,
144A,
2023
B-2
,
Mandatory
Put
,
7
%
,
4/01/33
.....................
13,825,000
13,619,526
d
Revenue
,
144A,
2025
B
,
7.375
%
,
8/01/37
...............................
7,900,000
8,026,072
Revenue
,
2025
B
,
7.1
%
,
12/01/37
.....................................
3,875,000
3,823,395
e
Revenue
,
2026
A-S
,
Mandatory
Put
,
9
%
,
2/01/45
..........................
4,685,000
4,606,781
d
Revenue
,
144A,
2023
,
II
,
7
%
,
7/01/51
..................................
12,655,000
11,994,046
d,g
Revenue,
Sub.
Lien
,
144A,
FRN
,
2025-1
,
B
,
3.439
%
,
6/20/49
.................
4,500,000
2,885,315
Special
Tax
,
2024
D
,
5
%
,
9/01/54
......................................
1,000,000
965,501
Special
Tax
,
2025
B
,
5.125
%
,
9/01/55
..................................
1,825,000
1,821,394
Special
Tax
,
2025
D
,
5
%
,
9/01/50
......................................
1,455,000
1,413,662
h
Special
Tax
,
2026
B
,
5
%
,
9/01/46
......................................
1,965,000
1,929,365
h
Special
Tax
,
2026
B
,
5.125
%
,
9/01/51
..................................
3,000,000
2,936,294
h
Special
Tax
,
2026
B
,
5.25
%
,
9/01/56
...................................
3,550,000
3,486,113
c
1717
University
Associates
LLC
,
Revenue
,
2020
A-S
,
9
%
,
9/01/57
.............
1,175,000
841,448
e
21010
Vanowen
LP
,
Revenue
,
2026
A-S
,
Mandatory
Put
,
8
%
,
10/01/45
.........
2,500,000
2,500,000
d,e
4252
Crenshaw
Preservation
LLC
,
Revenue
,
144A,
2025
B-1
,
Mandatory
Put
,
7.5
%
,
6/01/36
........................................................
5,715,000
5,590,295
d,e
4252
Crenshaw
Preservation
LLC
,
Revenue
,
144A,
2025
B-2
,
Mandatory
Put
,
9
%
,
6/01/36
........................................................
1,835,000
1,826,186
e
5435
Balboa
LP
,
Revenue
,
2025
A-S
,
Mandatory
Put
,
8
%
,
3/01/44
.............
4,000,000
4,057,266
ACI
Royal
York,
Inc.
,
Revenue
,
2020
A
,
4
%
,
2/15/55
........................
2,375,000
1,867,896
American
Heritage/Escondido/Heritage
K-8
Charter
School
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
6/01/36
.............................
3,000,000
3,001,103
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6
%
,
9/01/52
................
2,920,000
3,027,149
BOLD
Program
,
Special
Tax
,
2022
B
,
Refunding
,
6.3
%
,
9/01/52
...............
1,205,000
1,267,603
BOLD
Program
,
Special
Tax
,
2022
C
,
6.25
%
,
9/01/52
.......................
4,030,000
4,229,121
BOLD
Program
,
Special
Tax
,
2022
D
,
6.125
%
,
9/01/52
......................
6,885,000
7,181,414
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
BOLD
Program
,
Special
Tax
,
2023
A
,
5.5
%
,
9/01/53
........................
$
3,000,000
$
3,081,941
BOLD
Program
,
Special
Tax
,
2023
C
,
5.25
%
,
9/01/53
.......................
1,300,000
1,305,876
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/39
.........................
275,000
279,041
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/44
.........................
625,000
627,664
BOLD
Program
,
Special
Tax
,
2024
A
,
5
%
,
9/01/48
.........................
300,000
299,284
BOLD
Program
,
Special
Tax
,
2024
A
,
5.125
%
,
9/01/54
......................
1,000,000
995,404
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/44
.........................
940,000
954,410
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/49
.........................
1,070,000
1,064,742
BOLD
Program
,
Special
Tax
,
2024
B
,
5
%
,
9/01/54
.........................
1,250,000
1,217,623
BOLD
Program
,
Special
Tax
,
2025
D
,
5
%
,
9/01/45
.........................
950,000
946,484
BOLD
Program
,
Special
Tax
,
2025
D
,
5
%
,
9/01/55
.........................
2,000,000
1,895,170
Boone
534
LLC
,
Revenue
,
2026
B
,
7.1
%
,
2/01/38
.........................
8,050,000
7,932,212
Bowles
Hall
Foundation
,
Revenue
,
2015
A
,
5
%
,
6/01/35
.....................
600,000
600,315
Bowles
Hall
Foundation
,
Revenue
,
2015
A
,
5
%
,
6/01/50
.....................
3,250,000
3,153,585
d
California
Baptist
University
,
Revenue
,
144A,
2015
A
,
5.375
%
,
11/01/40
.........
5,000,000
4,957,609
d
California
Baptist
University
,
Revenue
,
144A,
2015
A
,
5.5
%
,
11/01/45
...........
10,000,000
9,763,971
d
California
Baptist
University
,
Revenue
,
144A,
2016
A
,
5
%
,
11/01/36
............
2,500,000
2,501,188
d
California
Baptist
University
,
Revenue
,
144A,
2025
A
,
Refunding
,
5
%
,
11/01/35
...
2,250,000
2,338,611
d
California
Baptist
University
,
Revenue
,
144A,
2025
A
,
Refunding
,
5.125
%
,
11/01/40
1,350,000
1,364,634
d
California
Baptist
University
,
Revenue
,
144A,
2025
A
,
Refunding
,
5.375
%
,
11/01/45
775,000
784,216
d
California
Baptist
University
,
Revenue
,
144A,
2025
A
,
Refunding
,
5.625
%
,
11/01/54
1,000,000
998,058
d
Capital
Christian
Center
,
Revenue
,
144A,
2021
A
,
5
%
,
10/01/51
...............
8,425,000
6,833,505
d
Capital
Christian
Center
,
Revenue
,
144A,
2021
B
,
Refunding
,
4
%
,
10/01/37
......
7,645,000
6,522,303
d
CHF-Aptos
LLC
,
Revenue
,
144A,
2025
A
,
5.375
%
,
7/01/50
..................
10,000,000
9,858,056
d
CHF-Aptos
LLC
,
Revenue
,
144A,
2025
A
,
5.5
%
,
7/01/57
....................
10,000,000
9,822,351
d
CHF-Aptos
LLC
,
Revenue
,
144A,
2025
B
,
7.5
%
,
7/01/57
....................
1,250,000
1,231,886
CHF-Davis
I
LLC
,
Revenue
,
2018
,
5
%
,
5/15/51
...........................
5,000,000
4,944,440
CHF-Davis
II
LLC
,
Revenue
,
2021
,
BAM
Insured
,
3
%
,
5/15/51
................
550,000
399,374
CHF-Riverside
I
LLC
,
Revenue
,
2018
,
5
%
,
5/15/40
.........................
1,500,000
1,512,245
CHF-Riverside
II
LLC
,
Revenue
,
2019
,
5
%
,
5/15/49
........................
9,575,000
9,451,029
City
of
Chula
Vista
Community
Facilities
District
No.
2021-11
,
Special
Tax
,
2022
,
5
%
,
9/01/52
........................................................
2,500,000
2,486,136
City
of
Hesperia
Community
Facilities
District
No.
2023-11
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5.125
%
,
9/01/55
...................................
1,000,000
986,159
d
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/39
.
1,120,000
1,133,911
d
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/49
.
4,290,000
4,114,073
d
Claremont
Graduate
University
,
Revenue
,
144A,
2020
B
,
Refunding
,
5
%
,
10/01/54
.
1,875,000
1,760,121
Community
Facilities
District
2024-11
,
Special
Tax
,
2026
,
5
%
,
9/01/46
..........
700,000
685,595
Community
Facilities
District
2024-11
,
Special
Tax
,
2026
,
5
%
,
9/01/51
..........
725,000
701,013
Community
Facilities
District
2024-11
,
Special
Tax
,
2026
,
5
%
,
9/01/56
..........
1,000,000
946,383
Community
Facilities
District
No.
2021-13
,
Special
Tax
,
2022
,
5
%
,
9/01/42
.......
1,000,000
1,009,449
Community
Facilities
District
No.
2021-13
,
Special
Tax
,
2022
,
5
%
,
9/01/52
.......
5,150,000
5,033,855
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
6
%
,
9/01/52
....................................................
4,350,000
4,509,622
Community
Facilities
District
No.
2022-6
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.25
%
,
9/01/45
..................................................
600,000
605,548
Community
Facilities
District
No.
2022-6
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.375
%
,
9/01/50
.................................................
1,000,000
1,008,250
Community
Facilities
District
No.
2022-6
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.375
%
,
9/01/55
.................................................
1,300,000
1,300,631
Community
Facilities
District
No.
2022-8
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........
500,000
501,069
Community
Facilities
District
No.
2022-8
,
Special
Tax
,
2024
,
5
%
,
9/01/49
........
500,000
494,187
Community
Facilities
District
No.
2022-8
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........
1,570,000
1,518,074
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/44
....................................................
500,000
505,014
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/49
....................................................
$
800,000
$
785,381
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5
%
,
9/01/54
....................................................
1,125,000
1,082,993
Community
Facilities
District
No.
2023-11
Improvement
Area
A
,
Special
Tax
,
2024
,
5.125
%
,
9/01/59
.................................................
1,550,000
1,514,695
Community
Facilities
District
No.
2023-11
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5.25
%
,
9/01/60
.............................................
1,000,000
993,508
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/48
........................................................
600,000
619,752
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
........................................................
1,060,000
1,087,889
Community
Facilities
District
No.
2023-5
Area
No.
1
,
Special
Tax
,
2023
,
5.8
%
,
9/01/53
........................................................
3,190,000
3,306,368
Community
Facilities
District
No.
2023-5
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/44
....................................................
1,210,000
1,217,350
Community
Facilities
District
No.
2023-5
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/49
....................................................
1,835,000
1,813,668
Community
Facilities
District
No.
2023-5
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
....................................................
2,165,000
2,105,805
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5.25
%
,
9/01/45
..................................................
1,535,000
1,550,297
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/50
....................................................
2,965,000
2,928,769
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/55
....................................................
3,245,000
3,130,411
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5.375
%
,
9/01/55
.................................................
7,000,000
7,003,396
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5
%
,
9/01/50
..................................................
1,415,000
1,397,709
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5
%
,
9/01/55
..................................................
1,500,000
1,447,031
Community
Facilities
District
No.
2025-9
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5.125
%
,
9/01/55
...............................................
355,000
349,044
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
4
%
,
12/01/26
.......................................................
200,000
200,190
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/27
.......................................................
100,000
101,654
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/29
.......................................................
50,000
52,191
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/31
.......................................................
130,000
136,270
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/36
.......................................................
350,000
359,615
d
Community
Health
Centers
of
The
Central
Coast,
Inc.
,
Revenue
,
144A,
2021
A
,
5
%
,
12/01/54
.......................................................
2,000,000
1,896,710
Community
Hospitals
of
Central
California
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
4
%
,
2/01/42
............................................
10,000,000
9,131,958
Congregational
Homes,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/39
.......................................................
2,670,000
2,707,893
Congregational
Homes,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/49
.......................................................
480,000
471,217
d
Creative
Center
of
Los
Altos
(The)
,
Revenue
,
144A,
2016
B
,
4
%
,
11/01/36
.......
1,395,000
1,352,322
d
Creative
Center
of
Los
Altos
(The)
,
Revenue
,
144A,
2016
B
,
4.5
%
,
11/01/46
......
1,600,000
1,481,872
Del
Harbor
Foundation
,
Revenue
,
2015
,
Refunding
,
5
%
,
11/01/32
.............
3,020,000
3,023,959
Del
Harbor
Foundation
,
Revenue
,
2015
,
Refunding
,
5
%
,
11/01/39
.............
6,525,000
6,530,336
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
Eisenhower
Medical
Center
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
7/01/37
.........
$
1,625,000
$
1,632,677
Eisenhower
Medical
Center
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
7/01/47
.........
5,000,000
4,877,475
Gateways
Hospital
and
Mental
Health
Center
,
Revenue
,
2026
A
,
5
%
,
9/01/41
.....
635,000
627,819
Gateways
Hospital
and
Mental
Health
Center
,
Revenue
,
2026
A
,
5
%
,
9/01/46
.....
675,000
661,110
Gateways
Hospital
and
Mental
Health
Center
,
Revenue
,
2026
A
,
5.25
%
,
9/01/55
..
1,625,000
1,615,861
HumanGood
California
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
10/01/44
5,500,000
5,502,614
HumanGood
California
Obligated
Group
,
Revenue
,
2021
,
3
%
,
10/01/49
.........
5,000,000
3,576,033
Ignatian
Corp.
(The)
,
Revenue
,
2024
A
,
5
%
,
9/01/49
.......................
600,000
615,254
Ignatian
Corp.
(The)
,
Revenue
,
2024
A
,
5
%
,
9/01/54
.......................
9,060,000
9,205,559
d,f
IH
Parkside
Fairfield
LLC
,
Revenue,
Sub.
Lien
,
144A,
2023
B
,
2.617
%,
9/01/43
...
20,710,000
16,379,717
Integrity
Housing
Obligated
Group
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
........
16,700,000
13,897,521
Integrity
Housing
Obligated
Group
,
Revenue
,
2022
B
,
10
%
,
12/01/62
...........
7,000,000
3,832,940
d
King/Chavez
Facilities
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
5/01/36
.....
1,815,000
1,759,671
d
King/Chavez
Facilities
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
5/01/46
.....
2,775,000
2,608,923
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/31/43
13,915,000
13,990,366
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
4
%
,
12/31/47
6,085,000
5,318,667
LAX
Integrated
Express
Solutions
LLC
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/31/47
22,250,000
21,980,176
Learning
Choice
Academy
Obligated
Group
(The)
,
Revenue
,
2025
A
,
5.7
%
,
7/01/55
3,000,000
2,905,696
Literacy
First
Charter
School
Issuer
LLC
,
Revenue
,
2019
A
,
5
%
,
12/01/49
.......
4,165,000
4,038,654
Northbay
Healthcare
Corp.
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/01/35
......
1,100,000
1,100,083
Northbay
Healthcare
Corp.
Obligated
Group
,
Revenue
,
2017
A
,
5.25
%
,
11/01/47
..
3,000,000
2,894,530
Northbay
Healthcare
Group
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/01/44
......
1,050,000
989,252
d
P3
Claremont
Holdings
LLC
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/30
.............
520,000
527,527
d
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2016
A
,
5
%
,
7/01/36
..
2,750,000
2,749,831
d
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2016
A
,
5
%
,
7/01/41
..
1,750,000
1,674,671
d
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
3.875
%
,
7/01/28
400,000
396,102
d
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
5
%
,
7/01/38
..
1,100,000
1,097,932
d
Palmdale
Aerospace
Academy,
Inc.
(The)
,
Revenue
,
144A,
2018
A
,
5
%
,
7/01/49
..
3,600,000
3,319,639
d,e
Palmdale
Family
Housing
LP
,
Revenue
,
144A,
2025
A-S
,
Mandatory
Put
,
8.125
%
,
8/01/44
........................................................
3,300,000
3,276,508
Porter
1107
LLC
,
Revenue
,
2025
B
,
7.2
%
,
11/01/37
........................
12,950,000
12,926,329
PRG
-
Potrero
Properties
LLC
,
Revenue
,
2026
A
,
5
%
,
9/01/60
................
5,000,000
5,048,456
PRG
-
Potrero
Properties
LLC
,
Revenue
,
2026
A
,
5.5
%
,
9/01/60
...............
3,500,000
3,692,989
PRS-California
Obligated
Group
,
Revenue
,
2024
A
,
Refunding
,
5
%
,
4/01/44
......
2,830,000
2,891,069
PRS-California
Obligated
Group
,
Revenue
,
2024
A
,
Refunding
,
5
%
,
4/01/49
......
1,500,000
1,505,511
SAC
Health
System
,
Revenue
,
2026
,
5.5
%
,
9/01/46
........................
750,000
783,056
SAC
Health
System
,
Revenue
,
2026
,
6
%
,
9/01/56
.........................
2,000,000
2,173,719
d
Santa
Rosa
Academy
LLC
,
Revenue
,
144A,
2015
,
5.125
%
,
7/01/35
............
450,000
450,034
d
Santa
Rosa
Academy
LLC
,
Revenue
,
144A,
2015
,
5.375
%
,
7/01/45
............
1,400,000
1,339,444
Scripps
College
,
Revenue
,
2025
,
5
%
,
7/01/55
............................
3,320,000
3,350,908
d
Sierra
Ridge
3600
LLC
,
Revenue
,
144A,
2024
B
,
6.75
%
,
11/01/39
.............
11,012,000
10,700,901
d
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5
%
,
5/01/34
...
275,000
282,707
d
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.5
%
,
5/01/44
..
510,000
514,833
d
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.75
%
,
5/01/54
.
510,000
509,142
d
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
144A,
2024
A
,
5.875
%
,
5/01/59
700,000
702,016
St.
Mary
and
All
Angels
Christian
Church
,
Revenue
,
2024
B
,
4.65
%
,
5/01/30
.....
420,000
427,543
d
STREAM
Charter
School
,
Revenue
,
144A,
2020
A
,
5
%
,
6/15/41
...............
925,000
872,089
d
STREAM
Charter
School
,
Revenue
,
144A,
2020
A
,
5
%
,
6/15/51
...............
2,770,000
2,466,073
d
STREAM
Charter
School
,
Revenue
,
144A,
2020
B
,
6.4
%
,
6/15/32
.............
575,000
561,233
d
Verner
6430
LLC
,
Revenue
,
144A,
2026
B
,
7.1
%
,
6/01/38
...................
6,950,000
6,858,120
d
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5
%
,
6/15/34
...........
500,000
522,112
d
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5.5
%
,
6/15/39
..........
655,000
683,947
d
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
5.9
%
,
6/15/44
..........
1,635,000
1,719,237
d
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.2
%
,
6/15/54
..........
2,900,000
3,004,575
d
Westside
Neighborhood
School
,
Revenue
,
144A,
2024
,
6.375
%
,
6/15/64
........
3,000,000
3,118,971
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
d
California
Pollution
Control
Financing
Authority
,
a,c
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
7
%
,
7/01/22
........................
$
3,500,000
$
35
a,c
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
7.5
%
,
7/01/32
.......................
13,000,000
130
a,c
CalPlant
I
LLC
,
Revenue
,
144A,
2017
,
8
%
,
7/01/39
........................
11,500,000
115
a,c
CalPlant
I
LLC
,
Revenue
,
144A,
2020
,
7.5
%
,
7/01/32
.......................
4,500,000
45
Channelside
Water
Resources
LP
,
Revenue
,
144A,
2012
,
5
%
,
11/21/45
.........
21,685,000
21,690,805
California
Public
Finance
Authority
,
d
Crossroads
Christian
Schools
Obligated
Group
,
Revenue
,
144A,
2020
,
5
%
,
1/01/56
4,015,000
3,442,759
d
Ed
Brokers
Educational
Services
,
Revenue
,
144A,
2025
A
,
5.625
%
,
6/15/55
......
1,200,000
1,187,950
d
Ed
Brokers
Educational
Services
,
Revenue
,
144A,
2025
A
,
6
%
,
6/15/65
.........
5,000,000
5,037,844
Henry
Mayo
Newhall
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/15/37
.......................................................
1,100,000
1,100,207
d
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/36
.......................................................
1,000,000
1,014,509
d
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
A
,
Refunding
,
5
%
,
11/15/56
.......................................................
2,135,000
1,878,588
d
California
School
Finance
Authority
,
Revenue
,
144A,
2017
,
5
%
,
6/01/47
....................................
700,000
648,436
Alliance
for
College
Ready
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2016
C
,
5
%
,
7/01/46
....................................................
10,000,000
9,614,527
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/41
.......
500,000
392,225
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/51
.......
2,835,000
1,959,901
Alternative
Schools,
Inc.
,
Revenue
,
144A,
2021
A
,
Refunding
,
4
%
,
6/01/61
.......
3,675,000
2,346,670
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
,
Refunding
,
5
%
,
8/01/40
........................................................
1,000,000
974,751
Aspire
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2016
,
5
%
,
8/01/41
......
2,010,000
1,940,471
Citizens
of
the
World
Los
Angeles
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.25
%
,
4/01/52
........................................................
2,000,000
1,979,193
Citizens
of
the
World
Los
Angeles
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.375
%
,
4/01/62
.................................................
2,000,000
1,973,169
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
10/01/37
.......................................................
1,485,000
1,488,498
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
10/01/44
.......................................................
5,610,000
5,398,290
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2020
A
,
5
%
,
10/01/40
.....
500,000
492,865
Classical
Academy
Obligated
Group
,
Revenue
,
144A,
2020
A
,
5
%
,
10/01/50
.....
3,570,000
3,271,396
Ednovate
Obligated
Group
,
Revenue
,
144A,
2018
,
5
%
,
6/01/48
...............
1,000,000
899,522
Ednovate
Obligated
Group
,
Revenue
,
144A,
2018
,
5
%
,
6/01/56
...............
1,710,000
1,457,617
Envision
Education
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/54
......
900,000
763,724
Fenton
Charter
Public
Schools
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/40
...........
225,000
217,008
Fenton
Charter
Public
Schools
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/50
...........
1,275,000
1,134,749
Granada
Hills
Charter
High
School
Obligated
Group
,
Revenue
,
144A,
2019
,
5
%
,
7/01/43
........................................................
1,000,000
958,827
Granada
Hills
Charter
High
School
Obligated
Group
,
Revenue
,
144A,
2019
,
5
%
,
7/01/49
........................................................
5,750,000
5,345,588
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
8/01/35
.
2,325,000
2,325,136
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
8/01/45
.
3,500,000
3,315,163
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5
%
,
8/01/38
.
1,000,000
1,001,906
Green
Dot
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5
%
,
8/01/48
.
1,750,000
1,624,962
Harbor
Springs
Obligated
Group
,
Revenue
,
144A,
2024
A
,
5.5
%
,
7/01/54
........
2,235,000
2,242,905
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/31
.....................
235,000
228,292
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/41
.....................
435,000
404,505
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/51
.....................
600,000
519,531
iLEAD
Lancaster
,
Revenue
,
144A,
2021
A
,
5
%
,
6/01/61
.....................
1,320,000
1,096,400
Integrity
Charter
School
,
Revenue
,
144A,
2024
,
5
%
,
7/01/39
.................
1,000,000
941,491
Integrity
Charter
School
,
Revenue
,
144A,
2024
,
5.25
%
,
7/01/44
...............
800,000
740,806
Integrity
Charter
School
,
Revenue
,
144A,
2024
,
5.5
%
,
7/01/54
................
1,600,000
1,435,917
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
d
California
School
Finance
Authority,
(continued)
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
4.5
%
,
7/01/32
.
$
535,000
$
537,658
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5
%
,
7/01/42
...
2,140,000
2,067,779
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5
%
,
7/01/52
...
3,175,000
2,843,821
John
Adams
Academies
Obligated
Group
,
Revenue
,
144A,
2022
A
,
5.125
%
,
7/01/62
8,125,000
7,177,523
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
7/01/35
1,125,000
1,125,542
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2015
A
,
5
%
,
7/01/45
1,675,000
1,646,707
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
7/01/49
2,150,000
2,088,199
KIPP
SoCal
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
7/01/54
1,150,000
1,091,001
Larchmont
Schools
,
Revenue
,
144A,
2018
A
,
5
%
,
6/01/55
...................
3,050,000
2,747,550
Larchmont
Schools
,
Revenue
,
144A,
2026
,
6.25
%
,
6/01/65
..................
1,350,000
1,391,887
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
3
%
,
7/01/30
.....
205,000
197,248
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/45
.....
1,200,000
1,156,879
Lifeline
Education
Charter
School,
Inc.
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/55
.....
1,235,000
1,133,428
Lighthouse
Community
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.375
%
,
6/01/52
.................................................
1,250,000
1,276,832
Lighthouse
Community
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.5
%
,
6/01/62
...................................................
1,500,000
1,531,072
Magnolia
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2026
A
,
5.25
%
,
7/01/56
1,040,000
995,942
Magnolia
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2026
A
,
5.375
%
,
7/01/65
2,275,000
2,155,872
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/31
.......
1,000,000
991,876
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/36
.......
1,670,000
1,576,876
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/51
.......
16,730,000
13,339,430
NCCD-Santa
Rosa
Properties
LLC
,
Revenue
,
144A,
2021
A
,
4
%
,
11/01/55
.......
1,400,000
1,084,721
New
Designs
Charter
School
,
Revenue
,
144A,
2024
A
,
Refunding
,
5
%
,
6/01/54
...
650,000
598,533
New
Designs
Charter
School
,
Revenue
,
144A,
2024
A
,
Refunding
,
5
%
,
6/01/64
...
1,600,000
1,426,610
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5
%
,
6/01/33
........................................................
650,000
662,095
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.625
%
,
6/01/43
.................................................
560,000
564,411
Orange
County
Educational
Arts
Academy
,
Revenue
,
144A,
2023
A
,
Refunding
,
5.875
%
,
6/01/53
.................................................
600,000
601,058
Orange
Springs
Obligated
Group
,
Revenue
,
144A,
2026
A
,
5.375
%
,
7/01/46
.....
1,275,000
1,225,481
Orange
Springs
Obligated
Group
,
Revenue
,
144A,
2026
A
,
5.75
%
,
7/01/56
......
2,915,000
2,771,797
Orange
Springs
Obligated
Group
,
Revenue
,
144A,
2026
A
,
6
%
,
7/01/61
.........
2,150,000
2,085,312
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5
%
,
8/01/33
............................................
520,000
514,957
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.25
%
,
8/01/38
.........................................
500,000
483,157
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.5
%
,
8/01/43
..........................................
550,000
522,190
Partnerships
to
Uplift
Communities
Obligated
Group
,
Revenue
,
144A,
2023
,
Refunding
,
5.5
%
,
8/01/47
..........................................
525,000
488,779
Real
Journey
Academies
Obligated
Group
,
Revenue
,
144A,
2019
A
,
5
%
,
6/01/49
..
7,105,000
6,766,533
Rex
&
Margaret
Fortune
School
of
Education
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/44
2,000,000
1,749,204
Rex
&
Margaret
Fortune
School
of
Education
,
Revenue
,
144A,
2024
A
,
5
%
,
6/01/54
2,350,000
1,855,965
Rex
&
Margaret
Fortune
School
of
Education
,
Revenue
,
144A,
2024
A
,
5.125
%
,
6/01/59
........................................................
1,500,000
1,182,828
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/30
........
750,000
755,527
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/37
........
2,000,000
2,000,069
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/47
........
1,975,000
1,814,120
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2017
A
,
5
%
,
7/01/52
........
1,340,000
1,179,066
River
Springs
Charter
School,
Inc.
,
Revenue
,
144A,
2023
A
,
5.75
%
,
7/01/42
......
960,000
976,195
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5
%
,
6/01/34
....
750,000
750,299
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5.125
%
,
6/01/47
.
845,000
797,591
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
A
,
5.25
%
,
6/01/52
..
2,440,000
2,246,602
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
G
,
5
%
,
6/01/30
....
275,000
276,691
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
d
California
School
Finance
Authority,
(continued)
Rocketship
Education
Obligated
Group
,
Revenue
,
144A,
2017
G
,
5
%
,
6/01/37
....
$
360,000
$
359,209
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/31
........................................................
260,000
201,891
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/41
........................................................
600,000
420,413
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/51
........................................................
800,000
536,934
Santa
Clarita
Valley
International
Charter
School
,
Revenue
,
144A,
2021
A
,
4
%
,
6/01/61
........................................................
1,300,000
810,930
Summit
Public
Schools
Obligated
Group
,
Revenue
,
144A,
2017
,
Pre-Refunded
,
5
%
,
6/01/47
........................................................
800,000
812,762
California
State
Public
Works
Board
,
Revenue
,
2025
A
,
5
%
,
4/01/50
.............
7,500,000
7,770,358
California
Statewide
Communities
Development
Authority
,
Revenue
,
2015
R-1
,
Refunding
,
5
%
,
9/02/40
.............................
2,230,000
2,230,624
d
Revenue
,
144A,
2026
E-2
,
II
,
6.85
%
,
6/01/36
.............................
6,370,000
6,197,769
Special
Assessment
,
2016
A
,
5
%
,
9/02/36
...............................
1,035,000
1,035,785
Special
Assessment
,
2017
A
,
4
%
,
9/02/27
...............................
525,000
526,717
Special
Assessment
,
2017
A
,
5
%
,
9/02/37
...............................
1,970,000
1,986,842
Special
Assessment
,
2017
A
,
5
%
,
9/02/46
...............................
2,455,000
2,459,599
Special
Assessment
,
2017
B
,
5
%
,
9/02/37
...............................
3,260,000
3,291,703
Special
Assessment
,
2017
B
,
5
%
,
9/02/47
...............................
2,520,000
2,525,280
Special
Assessment
,
2017
C
,
5
%
,
9/02/37
...............................
2,755,000
2,738,692
Special
Assessment
,
2018
A
,
5
%
,
9/02/38
...............................
2,150,000
2,181,745
Special
Assessment
,
2018
A
,
5
%
,
9/02/47
...............................
3,745,000
3,756,065
Special
Assessment
,
2018
B
,
5
%
,
9/02/38
...............................
2,760,000
2,798,105
Special
Assessment
,
2018
B
,
5
%
,
9/02/43
...............................
4,690,000
4,708,228
Special
Assessment
,
2018
B
,
5
%
,
9/02/48
...............................
4,605,000
4,612,977
Special
Assessment
,
2018
C
,
5
%
,
9/02/38
...............................
4,995,000
5,068,751
Special
Assessment
,
2018
C
,
5
%
,
9/02/48
...............................
6,605,000
6,617,689
Special
Assessment
,
2019
A
,
5
%
,
9/02/39
...............................
1,600,000
1,627,113
Special
Assessment
,
2019
A
,
5
%
,
9/02/44
...............................
940,000
945,530
Special
Assessment
,
2019
B
,
5
%
,
9/02/44
...............................
1,150,000
1,166,069
Special
Assessment
,
2019
C
,
5
%
,
9/02/39
...............................
805,000
810,090
Special
Assessment
,
2020
A
,
5
%
,
9/02/40
...............................
1,250,000
1,267,740
Special
Assessment
,
2020
A
,
4
%
,
9/02/50
...............................
900,000
736,979
Special
Assessment
,
2020
A
,
5
%
,
9/02/50
...............................
1,000,000
990,513
Special
Assessment
,
2020
B
,
4
%
,
9/02/40
...............................
565,000
508,767
Special
Assessment
,
2020
B
,
4
%
,
9/02/50
...............................
695,000
563,231
Special
Assessment
,
2021
A
,
4
%
,
9/02/41
...............................
995,000
892,917
Special
Assessment
,
2021
A
,
4
%
,
9/02/51
...............................
3,175,000
2,618,684
Special
Assessment
,
2021
B
,
4
%
,
9/02/41
...............................
3,280,000
2,959,605
Special
Assessment
,
2021
B
,
4
%
,
9/02/51
...............................
3,145,000
2,593,940
Special
Assessment
,
2021
C-1
,
4
%
,
9/02/41
..............................
2,435,000
2,112,762
Special
Assessment
,
2021
C-1
,
4
%
,
9/02/51
..............................
3,610,000
2,934,291
Special
Assessment
,
2021
C-2
,
5
%
,
9/02/41
..............................
3,030,000
2,551,247
Special
Assessment
,
2021
C-2
,
5.5
%
,
9/02/51
............................
3,575,000
2,603,592
Special
Assessment
,
2022
B
,
5
%
,
9/02/42
...............................
3,000,000
3,022,135
Special
Assessment
,
2022
B
,
5
%
,
9/02/52
...............................
2,990,000
2,905,885
Special
Assessment
,
2022
C
,
5.375
%
,
9/02/52
............................
1,990,000
2,005,871
Special
Assessment
,
2023
D
,
5.5
%
,
9/02/53
..............................
1,000,000
1,010,279
Special
Assessment
,
2026
A-1
,
5
%
,
9/02/46
..............................
2,175,000
2,213,341
Special
Assessment
,
2026
A-1
,
5.25
%
,
9/02/51
...........................
2,000,000
2,047,058
Special
Tax
,
2023
C-1
,
5.25
%
,
9/02/53
..................................
3,000,000
2,973,387
Special
Tax
,
2025
A
,
5
%
,
9/02/50
......................................
5,500,000
5,516,304
d
Bedford
Sunterra
Apartments
LLC
,
Revenue
,
144A,
2026
D-S-A
,
7.5
%
,
1/01/37
...
2,500,000
2,418,185
d
California
Baptist
University
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
11/01/32
...
1,135,000
1,140,100
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
d
California
Baptist
University
,
Revenue
,
144A,
2017
A
,
Refunding
,
5
%
,
11/01/41
...
$
1,875,000
$
1,783,211
Cedars-Sinai
Medical
Center
Obligated
Group
,
Revenue
,
2018
,
4
%
,
7/01/48
.....
6,000,000
5,416,894
Community
Facilities
District
2022-7
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,500,000
1,452,532
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2016
A
,
5
%
,
9/01/46
......
10,480,000
10,480,015
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
1,230,000
1,243,615
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2019
,
5
%
,
9/01/49
.......
2,000,000
1,968,757
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2020
,
4
%
,
9/01/40
.......
3,345,000
3,114,199
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2020
,
4
%
,
9/01/50
.......
2,845,000
2,359,940
Community
Facilities
District
No.
2016-02
,
Special
Tax
,
2022
,
5.5
%
,
9/01/52
......
7,475,000
7,540,101
Community
Facilities
District
No.
2018-01
,
Special
Tax
,
2019
,
5
%
,
9/01/39
.......
1,610,000
1,627,357
Community
Facilities
District
No.
2018-01
,
Special
Tax
,
2019
,
5
%
,
9/01/48
.......
2,000,000
2,003,086
Community
Facilities
District
No.
2022-08
Improvement
Area
,
Special
Tax
,
2024
,
5.25
%
,
9/01/39
..................................................
2,360,000
2,412,439
Community
Facilities
District
No.
2022-08
Improvement
Area
,
Special
Tax
,
2024
,
5.25
%
,
9/01/45
..................................................
2,750,000
2,774,938
Community
Facilities
District
No.
2022-12
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/44
................................................
2,270,000
2,290,373
Community
Facilities
District
No.
2022-12
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
................................................
1,350,000
1,305,351
Community
Facilities
District
No.
2023-08
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
.............................................
1,700,000
1,680,497
Community
Facilities
District
No.
2024-9
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........
400,000
404,805
Community
Facilities
District
No.
2024-9
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........
700,000
676,849
Community
Infrastructure
Program
Assessment
District
No.
20-02
,
Special
Assessment
,
2023
,
5.75
%
,
9/02/53
...................................
1,875,000
1,921,378
d
CORE
700
Hotel
Venture
LLC
,
Revenue
,
144A,
2026
,
5
%
,
9/02/40
.............
265,000
264,531
d
CORE
700
Hotel
Venture
LLC
,
Revenue
,
144A,
2026
,
5.125
%
,
9/02/48
.........
585,000
579,406
d
Foothill
Almaden
Terrace
LLC
,
Revenue
,
144A,
2026
C-S-A
,
7.5
%
,
1/01/37
......
9,960,000
9,654,414
e
Foothill
Oak
Park
Apartments
LLC
,
Revenue
,
2025
H-S-A
,
Mandatory
Put
,
7.5
%
,
3/01/36
........................................................
3,430,000
3,448,158
John
Muir
Health
Obligated
Group
,
Revenue
,
2024
A
,
Refunding
,
5.25
%
,
12/01/54
.
10,000,000
10,344,681
d
Lancer
Educational
Housing
LLC
,
Revenue
,
144A,
2016
A
,
Refunding
,
5
%
,
6/01/46
12,735,000
12,410,343
d
Lancer
Educational
Housing
LLC
,
Revenue
,
144A,
2019
A
,
5
%
,
6/01/39
.........
950,000
952,495
d
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5
%
,
12/01/41
...................................................
1,245,000
1,246,244
d
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2016
A
,
5.25
%
,
12/01/56
.................................................
20,755,000
20,765,346
d
Loma
Linda
University
Medical
Center
Obligated
Group
,
Revenue
,
144A,
2018
A
,
5.5
%
,
12/01/58
..................................................
6,250,000
6,261,658
d
Maison
613
LLC
,
Revenue
,
144A,
2026
,
5
%
,
9/02/45
.......................
335,000
330,508
d
Maison
613
LLC
,
Revenue
,
144A,
2026
,
5.2
%
,
9/02/51
.....................
650,000
636,710
d
Maison
613
LLC
,
Revenue
,
144A,
2026
,
5.3
%
,
9/02/62
.....................
1,215,000
1,184,261
Marin
General
Hospital
Obligated
Group
,
Revenue
,
2018
A
,
4
%
,
8/01/45
........
1,500,000
1,332,922
d
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/39
.............
4,325,000
4,363,590
d
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/49
.............
8,000,000
7,927,526
d
NCCD-Hooper
Street
LLC
,
Revenue
,
144A,
2019
,
5.25
%
,
7/01/52
.............
2,635,000
2,550,853
Odd
Fellows
Home
of
California
,
Revenue
,
2026
A
,
California
Mortgage
Insured
,
5
%
,
4/01/49
........................................................
550,000
558,926
Odd
Fellows
Home
of
California
,
Revenue
,
2026
A
,
California
Mortgage
Insured
,
5
%
,
4/01/50
........................................................
415,000
419,037
d
PACE
Assessments
,
Revenue
,
144A,
2026
,
5
%
,
9/02/35
....................
210,000
212,365
d
PACE
Assessments
,
Revenue
,
144A,
2026
,
5.25
%
,
9/02/61
..................
1,200,000
1,184,590
Panorama
II
Preservation
LP
,
Revenue
,
2024
F
,
FNMA
Insured
,
4.25
%
,
12/01/40
..
7,380,000
7,122,826
USC
Obligated
Group
,
Revenue
,
2018
,
Refunding
,
5
%
,
1/01/43
...............
5,000,000
5,059,735
Central
Valley
Energy
Authority
,
Revenue
,
2026
,
5
%
,
8/01/34
..................
2,520,000
2,627,160
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Chino
Community
Facilities
District
,
City
of
Chino
Community
Facilities
District
No.
2003-3
Improvement
Area
No.
6
,
Special
Tax
,
2015
,
5
%
,
9/01/45
..............
$
1,665,000
$
1,665,236
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
1
,
Special
Tax
,
2020
,
4
%
,
9/01/50
....................................................
1,950,000
1,626,862
d
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2
,
Special
Tax
,
144A,
2022
A
,
4
%
,
9/01/52
..............................................
5,270,000
4,297,258
d
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2
,
Special
Tax
,
144A,
2023
A
,
5.5
%
,
9/01/53
.............................................
2,045,000
2,079,150
d
Infrastructure
&
Revitalization
Financing
District
No.
1
Facilities
Increment
,
Tax
Allocation
,
144A,
2022
A
,
5
%
,
9/01/37
.................................
385,000
394,614
d
Infrastructure
&
Revitalization
Financing
District
No.
1
Facilities
Increment
,
Tax
Allocation
,
144A,
2022
A
,
5
%
,
9/01/52
.................................
2,000,000
1,855,120
d
Infrastructure
&
Revitalization
Financing
District
No.
1
Housing
Increment
,
Tax
Allocation
,
144A,
2022
B
,
5
%
,
9/01/52
.................................
1,000,000
927,560
d
Special
Tax
District
No.
2020-1
Development
,
Special
Tax
,
144A,
2021
C
,
4
%
,
9/01/51
........................................................
3,900,000
3,202,602
d
City
&
County
San
Francisco
,
Infrastructure
&
Revitalization
Financing
District
No.
1
,
Tax
Allocation
,
144A,
2025
A
,
5
%
,
9/01/46
....................................................
1,625,000
1,567,999
Infrastructure
&
Revitalization
Financing
District
No.
1
,
Tax
Allocation
,
144A,
2025
A
,
5
%
,
9/01/55
....................................................
2,500,000
2,323,897
City
of
Dixon
,
Community
Facilities
District
No.
2013-1
Parklane
,
Special
Tax
,
2019
,
5
%
,
9/01/49
......................................................
2,400,000
2,394,690
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/39
....................................................
2,765,000
2,811,092
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/44
....................................................
2,925,000
2,943,821
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2
,
Special
Tax
,
2019
,
5
%
,
9/01/49
....................................................
4,100,000
4,104,936
City
of
El
Paso
Robles
,
Community
Facilities
District
No.
2022-1N
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5
%
,
9/01/51
..............................................
2,000,000
1,907,052
Community
Facilities
District
No.
2022-1N
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5
%
,
9/01/56
..............................................
2,115,000
1,986,625
Community
Facilities
District
No.
2022-1N
Improvement
Area
No.
2
,
Special
Tax
,
2025
A
,
5
%
,
9/01/51
..............................................
1,680,000
1,601,924
Community
Facilities
District
No.
2022-1N
Improvement
Area
No.
2
,
Special
Tax
,
2025
A
,
5
%
,
9/01/56
..............................................
2,125,000
1,996,018
City
of
Fairfield
,
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/44
..................................................
2,000,000
1,977,258
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/49
..................................................
2,000,000
1,963,453
City
of
Fillmore
,
Community
Facilities
District
No.
5
,
Special
Tax
,
2015
,
5
%
,
9/01/40
............
1,500,000
1,502,365
Community
Facilities
District
No.
5
,
Special
Tax
,
2015
,
5
%
,
9/01/45
............
2,630,000
2,630,636
City
of
Fremont
,
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/40
....
4,655,000
4,656,880
Community
Facilities
District
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/45
....
3,255,000
3,242,953
City
of
Galt
,
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5.125
%
,
9/01/45
...............................................
2,050,000
2,071,280
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5.25
%
,
9/01/50
................................................
3,230,000
3,260,269
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Galt,
(continued)
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2025
B
,
5.375
%
,
9/01/55
...............................................
$
7,180,000
$
7,296,159
City
of
Irvine
,
Community
Facilities
District
No.
2013-3
Improvement
Area
No.
8
,
Special
Tax
,
2018
,
5
%
,
9/01/43
.......................................
5,000,000
5,100,000
City
of
La
Verne
,
Copacabana
Mobilehome
Park
,
Revenue
,
2014
,
Refunding
,
5
%
,
6/15/49
.........................................................
1,765,000
1,764,928
City
of
Lincoln
,
Community
Facilities
District
No.
2025-1
,
Special
Tax
,
2025
,
5
%
,
9/01/50
........
550,000
531,451
Community
Facilities
District
No.
2025-1
,
Special
Tax
,
2025
,
5
%
,
9/01/55
........
775,000
733,290
Community
Facilities
District
No.
2025-1
,
Special
Tax
,
2025
,
5.05
%
,
9/01/55
......
360,000
342,242
City
of
Los
Angeles
,
h
Department
of
Airports
,
Revenue
,
2026
A
,
Refunding
,
5.5
%
,
5/15/51
...........
5,000,000
5,237,377
Department
of
Airports
,
Revenue,
Sub.
Lien
,
2019
D
,
4
%
,
5/15/44
.............
5,525,000
5,052,563
City
of
Manteca
,
Community
Facilities
District
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........................................................
1,000,000
992,118
Community
Facilities
District
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,580,000
1,516,533
Community
Facilities
District
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........................................................
870,000
868,233
Community
Facilities
District
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/49
........................................................
1,320,000
1,278,571
Community
Facilities
District
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,735,000
1,665,307
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
5
%
,
9/01/40
........................................................
165,000
166,329
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
5
%
,
9/01/45
........................................................
430,000
427,368
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
5
%
,
9/01/50
........................................................
750,000
726,695
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
5
%
,
9/01/55
........................................................
1,110,000
1,062,832
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
4
%
,
9/01/31
...........
85,000
83,802
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/36
...........
280,000
284,893
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/41
...........
560,000
555,984
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/46
...........
925,000
911,634
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/51
...........
1,420,000
1,373,019
Community
Facilities
District
2025-1
,
Special
Tax
,
2026
,
5
%
,
9/01/57
...........
2,350,000
2,235,944
City
of
Menifee
,
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/46
......
1,125,000
1,124,092
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/51
......
1,485,000
1,462,313
City
of
Mountain
House
,
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
6
,
Special
Tax
,
2025
,
5.125
%
,
9/01/45
.................................................
420,000
423,139
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
6
,
Special
Tax
,
2025
,
5.25
%
,
9/01/50
..................................................
765,000
767,539
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
6
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
..................................................
1,000,000
994,376
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
7
,
Special
Tax
,
2025
,
5.125
%
,
9/01/45
.................................................
400,000
402,989
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
7
,
Special
Tax
,
2025
,
5.25
%
,
9/01/50
..................................................
580,000
581,925
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
7
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
..................................................
630,000
626,457
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Ontario
,
Community
Facilities
District
No.
28
,
Special
Tax
,
2017
,
5
%
,
9/01/42
...........
$
1,000,000
$
1,002,058
Community
Facilities
District
No.
28
,
Special
Tax
,
2017
,
5
%
,
9/01/47
...........
500,000
500,466
c
City
of
Oroville
,
Oroville
Hospital
,
Revenue
,
2019
,
5.25
%
,
4/01/49
.........................
4,500,000
3,150,000
Oroville
Hospital
,
Revenue
,
2019
,
5.25
%
,
4/01/54
.........................
3,000,000
2,070,000
City
of
Palm
Desert
,
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2024
,
5
%
,
9/01/49
........
600,000
598,673
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2024
,
5
%
,
9/01/53
........
525,000
517,938
City
of
Rancho
Cordova
,
Arista
Del
Sol
Community
Facilities
District
No.
2022-1
Improvement
Area
No.
2
,
Special
Tax
,
2026
,
5
%
,
9/01/55
......................................
640,000
619,253
Community
Facilities
District
No.
2014-1
,
Special
Tax
,
2022
,
5
%
,
9/01/51
........
1,200,000
1,188,354
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1
,
Special
Tax
,
2022
,
5.25
%
,
9/01/52
..........................................
2,000,000
2,014,467
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5
%
,
9/01/40
............................................
360,000
362,899
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5
%
,
9/01/45
............................................
565,000
566,090
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5
%
,
9/01/50
............................................
750,000
737,773
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2025
,
5
%
,
9/01/54
............................................
240,000
234,477
City
of
Roseville
,
Amoruso
Ranch
Community
Facilities
District
1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/49
............................................
1,125,000
1,101,470
Amoruso
Ranch
Community
Facilities
District
1
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
............................................
1,500,000
1,448,252
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
1
,
Special
Tax
,
2020
,
5
%
,
9/01/45
................................................
1,280,000
1,287,807
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5
%
,
9/01/43
................................................
500,000
503,500
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2
,
Special
Tax
,
2023
,
5.25
%
,
9/01/53
.............................................
1,850,000
1,863,029
Creekview
Phase
5
Community
Facilities
District
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/55
........................................................
1,375,000
1,306,806
d
Fiddyment
Ranch
Community
Facilities
District
No.
5
,
Special
Tax
,
144A,
2017
,
Refunding
,
5
%
,
9/01/32
............................................
1,265,000
1,280,003
d
Fiddyment
Ranch
Community
Facilities
District
No.
5
,
Special
Tax
,
144A,
2017
,
Refunding
,
5
%
,
9/01/47
............................................
6,500,000
6,504,805
HP
Campus
Oaks
Community
Facilities
District
No.
1
,
Special
Tax
,
2016
,
5
%
,
9/01/36
........................................................
1,950,000
1,951,703
HP
Campus
Oaks
Community
Facilities
District
No.
1
,
Special
Tax
,
2016
,
5.5
%
,
9/01/46
........................................................
6,415,000
6,421,747
SVSP
Westpark-Federico
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/44
........................................................
1,000,000
1,001,453
Torrente
at
Sierra
Vista
Community
Facilities
District
No.
1
,
Special
Tax
,
2023
,
6
%
,
9/01/53
........................................................
1,500,000
1,562,326
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
........................................................
3,870,000
3,874,659
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/29
....
420,000
420,609
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/34
....
1,100,000
1,101,026
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/39
....
1,885,000
1,885,858
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2014
,
5
%
,
9/01/44
....
1,650,000
1,650,183
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/40
....
1,670,000
1,687,252
Westbrook
Community
Facilities
District
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
....
2,130,000
2,130,803
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Sacramento
,
Delta
Shores
Community
Facilities
District
No.
2019-01
Improvement
Area
No.
1
,
Special
Tax
,
2024
,
5
%
,
9/01/54
......................................
$
2,000,000
$
1,956,878
Greenbriar
Community
Facilities
District
No.
2018-03
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/49
......................................
1,000,000
989,712
d
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/32
...........................................
300,000
302,238
d
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/37
...........................................
710,000
710,684
d
Natomas
Meadows
Community
Facilities
District
No.
2007-1
Area
No.
1
,
Special
Tax
,
144A,
2017
,
5
%
,
9/01/47
...........................................
1,900,000
1,865,278
City
of
San
Diego
,
Tobacco
Settlement
Revenue
Funding
Corp.
,
Revenue,
Sub.
Lien
,
2018
C
,
Refunding
,
4
%
,
6/01/32
.......................................
160,000
160,934
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
11,500,000
9,447,896
City
of
South
San
Francisco
,
Community
Facilities
District
No.
2021-01
,
Special
Tax
,
2025
,
5
%
,
9/01/40
.......
375,000
379,138
Community
Facilities
District
No.
2021-01
,
Special
Tax
,
2025
,
5
%
,
9/01/45
.......
600,000
603,003
Community
Facilities
District
No.
2021-01
,
Special
Tax
,
2025
,
5.125
%
,
9/01/50
....
1,000,000
1,002,591
Community
Facilities
District
No.
2021-01
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
.....
1,500,000
1,509,823
City
of
Stockton
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.125
%
,
9/01/52
....................................
3,660,000
3,658,097
City
of
Vacaville
,
Community
Facilities
District
No.
13
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5
%
,
9/01/35
....................................................
390,000
400,800
Community
Facilities
District
No.
13
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5
%
,
9/01/40
....................................................
375,000
372,122
Community
Facilities
District
No.
13
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5
%
,
9/01/45
....................................................
810,000
797,268
Community
Facilities
District
No.
13
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5.125
%
,
9/01/50
.................................................
1,225,000
1,191,418
Community
Facilities
District
No.
13
Improvement
Area
No.
1
,
Special
Tax
,
2025
A
,
5.25
%
,
9/01/55
..................................................
1,475,000
1,451,657
City
of
Vernon
,
Electric
System
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/01/36
........
1,525,000
1,582,963
City
of
Wildomar
,
Community
Facilities
District
No.
2023-1
,
Special
Tax
,
2026
,
5
%
,
9/01/55
.........................................................
550,000
537,798
f
Clovis
Unified
School
District
,
GO
,
2004
A
,
NATL
Insured
,
ETM,
2.77
%,
8/01/27
..........................
1,205,000
1,175,167
GO
,
2004
A
,
NATL
Insured
,
2.58
%,
8/01/27
..............................
6,295,000
6,149,307
GO
,
2004
A
,
NATL
Insured
,
2.67
%,
8/01/28
..............................
3,000,000
2,851,919
d
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
13,810,000
12,121,926
d
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Junior
Lien
,
144A,
2022
A-2
,
4.5
%
,
8/01/51
.........................................................
39,885,000
27,435,500
d
CMFA
Special
Finance
Agency
I
,
Mix
at
CTR
City
(The)
,
Revenue
,
144A,
2021
A-T
,
5
%
,
4/01/41
.........................................................
7,545,000
7,160,041
d
CMFA
Special
Finance
Agency
VII
,
Breakwater
Apartments
(The)
,
Revenue
,
144A,
2021
A-2
,
4
%
,
8/01/47
..............................................
1,500,000
1,350,515
d
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
30,280,000
24,476,305
f
Coachella
Valley
Unified
School
District
,
GO
,
2012
D
,
AG
Insured
,
4.61
%,
8/01/42
................................
8,500,000
4,150,442
GO
,
2012
D
,
AG
Insured
,
4.64
%,
8/01/43
................................
3,000,000
1,392,654
County
of
Imperial
,
Community
Facilities
District
No.
1998-1
,
Special
Tax
,
1999
,
LOC
BNP
Paribas
SA
,
6.5
%
,
9/01/31
.......................................
3,095,000
3,131,756
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
County
of
Madera
,
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1
,
Special
Tax
,
2022
,
5.875
%
,
9/01/53
.................................................
$
1,100,000
$
1,125,786
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.75
%
,
9/01/53
..................................................
3,080,000
3,153,268
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.875
%
,
9/01/53
.................................................
1,100,000
1,125,787
County
of
Orange
,
Community
Facilities
District
No.
2025-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
8/15/41
..................................................
775,000
797,098
Community
Facilities
District
No.
2025-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
8/15/51
..................................................
3,225,000
3,207,211
County
of
Sacramento
,
Airport
System
,
Revenue
,
2024
,
5.25
%
,
7/01/49
...........................
3,000,000
3,159,855
Airport
System
,
Revenue
,
2024
,
5
%
,
7/01/54
.............................
7,000,000
7,183,748
Airport
System
,
Revenue
,
2024
,
5.25
%
,
7/01/54
...........................
8,000,000
8,340,297
Airport
System
,
Revenue
,
2025
D
,
AG
Insured
,
5.25
%
,
7/01/55
...............
10,000,000
10,241,963
County
of
San
Bernardino
,
Community
Facilities
District
No.
2006-1
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/40
....................................................
1,000,000
1,000,246
Community
Facilities
District
No.
2006-1
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/45
....................................................
1,000,000
1,000,032
County
of
San
Joaquin
,
Community
Facilities
District
No.
2009-1
,
Special
Tax
,
2026
,
5
%
,
9/01/51
........
2,000,000
1,907,052
Community
Facilities
District
No.
2009-1
,
Special
Tax
,
2026
,
5
%
,
9/01/56
........
2,000,000
1,881,425
d
CSCDA
Community
Improvement
Authority
,
Crescent
(The)
,
Revenue
,
144A,
2022
B
,
5.5
%
,
7/01/59
.....................
16,000,000
11,763,000
Park
Crossing
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/48
.............
10,000,000
7,590,543
Renaissance
at
City
Center
,
Revenue
,
144A,
2020
A
,
5
%
,
7/01/51
.............
3,050,000
2,843,020
Theo
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
5/01/57
.....................
10,000,000
6,912,417
Wood
Creek
Apartments
,
Revenue,
Sub.
Lien
,
144A,
2021
B
,
4
%
,
12/01/59
......
31,800,000
16,176,262
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue,
Sub.
Lien
,
2007
B
,
Refunding
,
5.85
%
,
12/15/47
...............................
4,120,000
4,123,038
Del
Mar
Race
Track
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
..........
2,000,000
2,006,216
Downey
Unified
School
District
,
GO
,
B
,
4
%
,
8/01/57
.........................
5,500,000
4,858,057
f
Duarte
Redevelopment
Agency
,
Tax
Allocation,
Sub.
Lien
,
1999
,
ETM,
4.95
%,
12/01/28
3,665,000
3,287,303
East
Bay
Municipal
Utility
District
,
Wastewater
System
,
Revenue
,
2026
A
,
5
%
,
6/01/51
........................
1,250,000
1,316,065
Wastewater
System
,
Revenue
,
2026
A
,
5
%
,
6/01/56
........................
3,000,000
3,133,671
f
El
Rancho
Unified
School
District
,
GO
,
2004
,
NATL
Insured
,
3.13
%,
8/01/29
.......
2,400,000
2,193,606
d
Elsinore
Valley
Municipal
Water
District
,
Community
Facilities
District
No.
2020-1
Area
No.
2A
,
Special
Tax
,
144A,
2021
A
,
4
%
,
9/01/51
....................................................
1,245,000
1,028,373
Community
Facilities
District
No.
2020-1
Area
No.
3A
,
Special
Tax
,
144A,
2021
A
,
4.5
%
,
9/01/51
...................................................
2,500,000
2,244,179
Fairfield
Community
Facilities
District
,
d
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1
,
Special
Tax
,
144A,
2020
A
,
5
%
,
9/01/35
...............................
1,000,000
1,031,804
d
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1
,
Special
Tax
,
144A,
2020
A
,
5
%
,
9/01/50
...............................
5,255,000
5,183,620
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/54
..................................................
9,630,000
9,284,082
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/42
..................................................
1,125,000
1,119,268
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Fairfield
Community
Facilities
District,
(continued)
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/46
..................................................
$
615,000
$
603,848
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5
%
,
9/01/51
..................................................
600,000
576,112
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
1
,
Special
Tax
,
2026
A
,
5.125
%
,
9/01/56
...............................................
1,175,000
1,135,493
g
,i
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
FRN
,
2019-ML06
,
XCA
,
1.105
%
,
7/25/35
................................
126,520,143
6,118,514
d
Revenue
,
144A,
FRN
,
2020-ML07
,
XCA
,
2.133
%
,
1/25/37
...................
114,873,556
12,660,215
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19
,
Special
Tax
,
2017
,
5
%
,
9/01/47
1,000,000
1,001,222
City
of
Folsom
Community
Facilities
District
No.
20
,
Special
Tax
,
2018
,
5
%
,
9/01/33
530,000
541,048
City
of
Folsom
Community
Facilities
District
No.
20
,
Special
Tax
,
2018
,
5
%
,
9/01/48
1,675,000
1,655,613
Community
Facilities
District
No.
23
Improvement
Area
No.
7
,
Special
Tax
,
2026
,
5
%
,
9/01/51
........................................................
1,435,000
1,419,069
Community
Facilities
District
No.
23
Improvement
Area
No.
7
,
Special
Tax
,
2026
,
5
%
,
9/01/54
........................................................
1,050,000
1,025,839
Foothill-Eastern
Transportation
Corridor
Agency
,
f
Revenue
,
2013
A
,
Refunding
,
4.67
%,
1/15/42
.............................
75,000,000
37,183,012
Revenue
,
2013
B-1
,
Refunding
,
3.95
%
,
1/15/53
...........................
23,000,000
19,746,540
Revenue
,
2013
B-2
,
Refunding
,
3.5
%
,
1/15/53
............................
15,500,000
12,052,428
f
Revenue
,
2015
A
,
Refunding
,
3.48
%,
1/15/33
.............................
19,000,000
15,280,676
Fremont
Union
High
School
District
,
GO
,
2026
,
4.125
%
,
8/01/50
................
5,500,000
5,225,790
Fullerton
Joint
Union
High
School
District
,
GO
,
2026
B
,
4.25
%
,
8/01/55
...........
7,895,000
7,506,010
Galt
Community
Facilities
District
,
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
5.5
%
,
9/01/43
...................................
1,860,000
1,927,236
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
5.75
%
,
9/01/48
..................................
2,945,000
3,070,928
City
of
Galt
Community
Facilities
District
No.
2020-2
Improvement
Area
No.
1
,
Special
Tax
,
2023
A
,
6
%
,
9/01/53
....................................
2,895,000
3,023,890
d
Golden
State
Connect
Authority
,
Revenue
,
144A,
2025
,
6.5
%
,
12/01/60
...........
22,000,000
21,008,909
f
Hanford
Joint
Union
High
School
District
,
GO
,
B
,
AG
Insured
,
3.34
%,
8/01/32
....................................
3,635,000
2,993,162
GO
,
B
,
AG
Insured
,
3.45
%,
8/01/33
....................................
3,705,000
2,930,576
GO
,
B
,
AG
Insured
,
3.69
%,
8/01/35
....................................
4,120,000
2,981,857
f
Hartnell
Community
College
District
,
GO
,
2009
D
,
4.57
%,
8/01/49
...............
10,000,000
3,587,792
a
Illinois
Finance
Authority
,
Student
Housing
&
Academic
Facility
,
12
%
,
1/01/65
......
720,000
—
Independent
Cities
Finance
Authority
,
Augusta
Communities
III
LLC
,
Revenue
,
2021
,
Refunding
,
4
%
,
11/15/56
........
8,160,000
5,876,591
Augusta
Communities
IV
LLC
,
Revenue
,
2024
A
,
5
%
,
11/15/45
...............
1,685,000
1,642,948
Augusta
Communities
IV
LLC
,
Revenue
,
2024
A
,
5
%
,
11/15/50
...............
2,160,000
2,023,086
Augusta
Communities
IV
LLC
,
Revenue
,
2024
A
,
5
%
,
11/15/59
...............
5,540,000
4,978,537
COACH
of
San
Diego
LLC
,
Revenue
,
2014
A
,
Refunding
,
5.25
%
,
5/15/44
.......
2,015,000
2,015,718
COACH
of
San
Diego
LLC
,
Revenue
,
2014
A
,
Refunding
,
5.25
%
,
5/15/49
.......
4,800,000
4,800,942
Millennium
Housing
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/45
.............
5,000,000
5,000,964
Millennium
Housing
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/50
.............
4,900,000
4,899,831
Millennium
Housing
LLC
,
Revenue
,
2021
,
Refunding
,
3
%
,
5/15/56
.............
4,000,000
2,657,130
Millennium
Housing
of
California
,
Revenue
,
2019
,
Refunding
,
5
%
,
5/15/48
.......
1,000,000
999,974
Inland
Valley
Development
Agency
,
Tax
Allocation
,
2014
A
,
Refunding
,
5.25
%
,
9/01/37
.........................
7,500,000
7,569,988
Tax
Allocation
,
2014
A
,
Refunding
,
5
%
,
9/01/44
...........................
9,000,000
9,082,058
Irvine
Facilities
Financing
Authority
,
City
of
Irvine
Community
Facilities
District
No.
2013-3
,
Special
Tax
,
2023
A
,
BAM
Insured
,
4
%
,
9/01/58
.....................
6,500,000
5,828,612
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Irvine
Unified
School
District
,
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2017
B
,
5
%
,
9/01/42
........
$
995,000
$
996,086
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2017
C
,
5
%
,
9/01/47
........
995,000
974,316
Community
Facilities
District
No.
09-1
,
Special
Tax
,
2018
A
,
Refunding
,
5
%
,
9/01/49
3,975,000
3,881,398
Kaweah
Delta
Health
Care
District
Guild
,
Revenue
,
2015
B
,
5
%
,
6/01/40
..........
1,250,000
1,186,885
Lake
Tahoe
Unified
School
District
,
GO
,
2012
,
5.3
%
,
8/01/40
...................
1,140,000
1,200,475
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2014-1
Improvement
Area
No.
1
,
Special
Tax
,
2017
,
5
%
,
9/01/42
....................................................
2,750,000
2,769,536
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2025
,
5
%
,
9/01/45
........
2,000,000
2,007,124
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2025
,
5.125
%
,
9/01/50
.....
3,750,000
3,759,717
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2025
,
5.25
%
,
9/01/55
......
5,250,000
5,306,979
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
,
5
%
,
9/01/46
........
850,000
841,917
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
,
5
%
,
9/01/51
........
1,310,000
1,270,208
Community
Facilities
District
No.
2024-1
,
Special
Tax
,
2026
,
5
%
,
9/01/56
........
2,375,000
2,254,439
Las
Virgenes
Unified
School
District
,
GO
,
2011
C
,
6.75
%
,
8/01/33
...............
8,050,000
9,693,217
Lemon
Grove
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2014
,
Refunding
,
AG
Insured
,
4
%
,
8/01/34
...............................
1,000,000
1,008,304
f
Lemon
Grove
School
District
,
GO
,
2010
B
,
AG
Insured
,
5.936
%,
8/01/45
..........
6,500,000
6,768,978
Lompoc
Valley
Medical
Center
,
Revenue
,
2026
,
5
%
,
2/01/41
.........................................
1,000,000
979,958
Revenue
,
2026
,
5
%
,
2/01/46
.........................................
1,190,000
1,143,321
Long
Beach
Bond
Finance
Authority
,
Revenue
,
2007
A
,
5
%
,
11/15/29
............
4,630,000
4,859,616
Long
Beach
Community
College
District
,
GO
,
2025
E
,
5
%
,
8/01/52
..............
2,000,000
2,084,872
Long
Beach
Unified
School
District
,
GO
,
D
,
4.25
%
,
8/01/49
....................
17,600,000
16,910,216
Los
Alamitos
Unified
School
District
,
COP
,
2012
,
5.95
%
,
8/01/34
..........................................
1,500,000
1,622,280
COP
,
2012
,
6.05
%
,
8/01/42
..........................................
4,500,000
4,767,079
Los
Angeles
Department
of
Water
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
7/01/50
......
18,805,000
19,033,295
Los
Angeles
Department
of
Water
&
Power
,
Revenue
,
2026
B
,
Refunding
,
5
%
,
7/01/52
...............................
5,000,000
5,059,742
Power
System
,
Revenue
,
2025
A
,
Refunding
,
5
%
,
7/01/50
...................
10,000,000
10,136,241
Power
System
,
Revenue
,
2025
D
,
Refunding
,
5.25
%
,
7/01/56
................
9,175,000
9,414,718
Water
System
,
Revenue
,
2021
B
,
Refunding
,
5
%
,
7/01/46
...................
15,080,000
15,345,459
Water
System
,
Revenue
,
2022
D
,
Refunding
,
5
%
,
7/01/47
...................
12,090,000
12,325,952
Water
System
,
Revenue
,
2025
C
,
Refunding
,
5
%
,
7/01/52
...................
10,000,000
10,143,042
d
Los
Angeles
Housing
Authority
,
Housing
Pathways,
Inc.
,
Revenue
,
144A,
2024
B
,
6
%
,
12/01/62
........................................................
33,500,000
31,298,491
Los
Angeles
Unified
School
District
,
GO
,
2024
QRR
,
4
%
,
7/01/49
.........................................
10,000,000
9,162,952
GO
,
2024
QRR
,
5.25
%
,
7/01/49
.......................................
9,945,000
10,467,590
GO
,
2025
A-1
,
5
%
,
7/01/49
..........................................
10,000,000
10,348,499
Mendocino-Lake
Community
College
District
,
GO
,
2011
B
,
AG
Insured
,
6.55
%
,
8/01/36
................................
5,150,000
5,956,101
GO
,
2011
B
,
AG
Insured
,
6.85
%
,
8/01/40
................................
7,500,000
9,223,113
Menifee
Union
School
District
,
Community
Facilities
District
No.
2011-1
Improvement
Area
No.
3
,
Special
Tax
,
2018
,
5
%
,
9/01/43
....................................................
1,000,000
1,005,586
Community
Facilities
District
No.
2011-1
Improvement
Area
No.
3
,
Special
Tax
,
2018
,
5
%
,
9/01/48
....................................................
1,500,000
1,504,579
Middle
Fork
Project
Finance
Authority
,
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/34
.................................
1,100,000
1,143,921
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/35
.................................
1,150,000
1,191,317
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2015-3
,
Special
Tax
,
2019
,
4.125
%
,
9/01/48
..........................................
360,000
312,271
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Mountain
House
Community
Facilities
District
,
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/40
.................................
$
500,000
$
500,744
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/45
.................................
1,000,000
992,673
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/50
.................................
2,125,000
2,081,730
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
1
,
Special
Tax
,
2025
,
5
%
,
9/01/55
.................................
3,600,000
3,462,500
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
3
,
Special
Tax
,
2026
,
5
%
,
9/01/41
.................................
500,000
497,453
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
3
,
Special
Tax
,
2026
,
5
%
,
9/01/46
.................................
1,365,000
1,346,958
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
3
,
Special
Tax
,
2026
,
5
%
,
9/01/51
.................................
1,280,000
1,242,859
City
of
Mountain
House
Community
Facilities
District
No.
2024-1
Improvement
Area
No.
3
,
Special
Tax
,
2026
,
5
%
,
9/01/56
.................................
800,000
766,303
Mountain
House
Financing
Authority
,
Special
Tax
,
2026
A
,
5
%
,
9/01/46
......................................
470,000
464,368
Special
Tax
,
2026
A
,
5
%
,
9/01/51
......................................
580,000
563,170
Special
Tax
,
2026
A
,
5
%
,
9/01/56
......................................
675,000
642,671
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
32,300,000
37,887,021
f
Newman-Crows
Landing
Unified
School
District
,
GO
,
2008
B
,
AG
Insured
,
0.414
%,
8/01/49
.........................................................
2,290,000
2,036,849
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue
,
2017
A
,
Refunding
,
BAM
Insured
,
4
%
,
3/01/42
...........................................
5,000,000
4,619,436
Oak
Park
Unified
School
District
,
GO
,
2011
A
,
7.1
%
,
8/01/38
...................
6,600,000
7,653,972
Orange
County
Community
Facilities
District
,
County
of
Orange
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2015
A
,
5
%
,
8/15/34
........................................................
1,495,000
1,496,553
County
of
Orange
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2015
A
,
5.25
%
,
8/15/45
..................................................
4,880,000
4,885,208
County
of
Orange
Community
Facilities
District
No.
2017-1
Area
No.
1
,
Special
Tax
,
2018
A
,
5
%
,
8/15/47
..............................................
9,550,000
9,554,454
Palomar
Health
,
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/01/39
..................
12,190,000
12,191,595
Palomar
Health
Obligated
Group
,
COP
,
4
%
,
11/01/38
.......................
5,000,000
4,473,920
Palomar
Health
Obligated
Group
,
COP
,
4
%
,
11/01/47
.......................
6,000,000
4,733,945
f
Paso
Robles
Joint
Unified
School
District
,
GO
,
2010
A
,
4.78
%,
9/01/45
...........
15,000,000
6,179,685
Perris
Community
Facilities
District
,
City
of
Perris
Community
Facilities
District
No.
2001-2
,
Special
Tax
,
2014
A
,
Refunding
,
5.25
%
,
9/01/32
....................
4,500,000
4,506,524
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2001-1
,
Special
Tax
,
2014
E
,
Refunding
,
4.25
%
,
9/01/38
........................................................
4,120,000
3,867,585
Community
Facilities
District
No.
2014-1
Improvement
Area
No.
2
,
Special
Tax
,
2018
A
,
4
%
,
9/01/48
..................................................
1,530,000
1,303,918
Rancho
Mirage
Community
Facilities
District
,
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/44
....................................................
2,200,000
2,204,706
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/49
....................................................
1,500,000
1,472,590
Community
Facilities
District
No.
5
Improvement
Area
No.
1
,
Special
Tax
,
2024
A
,
5
%
,
9/01/54
....................................................
1,400,000
1,359,708
Redondo
Beach
Unified
School
District
,
GO
,
2011
E
,
6.2
%
,
8/01/31
..............
2,750,000
3,093,487
f
Richland
School
District
,
GO
,
2009
C
,
AG
Insured
,
5.15
%,
8/01/49
..............
22,000,000
6,958,162
Rio
Hondo
Community
College
District
,
GO
,
2010
C
,
6.85
%
,
8/01/42
.............
13,000,000
15,524,696
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Rio
Vista
Community
Facilities
District
,
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2018
,
Refunding
,
5
%
,
9/01/33
............................................
$
1,625,000
$
1,655,159
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2018
,
Refunding
,
5
%
,
9/01/48
............................................
1,190,000
1,190,044
River
Islands
Public
Financing
Authority
,
Special
Tax
,
2026
A
,
AG
Insured
,
5
%
,
9/01/52
............................
1,650,000
1,694,637
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.25
%,
9/01/53
..........................
2,500,000
627,754
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.29
%,
9/01/55
..........................
4,000,000
895,861
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.33
%,
9/01/57
..........................
6,950,000
1,388,888
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.36
%,
9/01/59
..........................
7,300,000
1,302,578
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.38
%,
9/01/61
..........................
5,500,000
877,390
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.43
%,
9/01/63
..........................
7,000,000
989,722
f
Special
Tax
,
2026
A
,
AG
Insured
,
5.47
%,
9/01/65
..........................
2,690,000
337,392
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5
%
,
9/01/38
...
500,000
511,177
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/43
.
1,985,000
2,048,446
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.5
%
,
9/01/48
.
3,080,000
3,117,784
Community
Facilities
District
2023-1
Area
No.
1
,
Special
Tax
,
2023
,
5.625
%
,
9/01/53
4,810,000
4,841,155
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
Refunding
,
5
%
,
9/01/50
............................................
5,000,000
4,778,838
Community
Facilities
District
2023-1
Improvement
Area
No.
3
,
Special
Tax
,
2025
,
Refunding
,
5
%
,
9/01/55
............................................
14,600,000
13,671,896
Community
Facilities
District
No
2003-1
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.75
%
,
9/01/52
..................................................
4,250,000
4,284,584
Community
Facilities
District
No.
2016-1
,
Special
Tax
,
2025
,
AG
Insured
,
5
%
,
9/01/55
2,315,000
2,359,001
Community
Facilities
District
No.
2020-1
Public
Improvements
,
Special
Tax
,
2025
,
AG
Insured
,
5
%
,
9/01/55
..............................................
4,000,000
4,076,027
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
2.625
%
,
9/01/34
.....
860,000
743,296
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
2.625
%
,
9/01/35
.....
925,000
785,498
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
4
%
,
9/01/46
........
1,490,000
1,227,829
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/48
....................................................
1,650,000
1,588,632
Community
Facilities
District
No.
2023-1
Improvement
Area
No.
2
,
Special
Tax
,
2024
,
5
%
,
9/01/54
....................................................
2,625,000
2,447,024
f
Riverbank
Unified
School
District
,
GO
,
2008
B
,
AG
Insured
,
4.4
%,
8/01/38
.................................
6,690,000
4,006,348
GO
,
2008
B
,
AG
Insured
,
4.69
%,
8/01/43
................................
8,750,000
4,029,011
Riverside
County
Community
Facilities
Districts
,
County
of
Riverside
Community
Facilities
District
No.
03-1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/30
..........
1,500,000
1,508,808
f
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien
,
2013
B
,
5
%,
6/01/43
.........................................................
7,500,000
3,309,643
Romoland
School
District
,
Community
Facilities
District
No.
2004-1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
4,690,000
4,713,754
Community
Facilities
District
No.
2004-1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/38
3,000,000
3,015,058
Community
Facilities
District
No.
2004-1
Improvement
Area
No.
3
,
Special
Tax
,
2013
,
5
%
,
9/01/36
....................................................
1,500,000
1,501,101
f
Rowland
Unified
School
District
,
GO
,
2009
B
,
4.12
%,
8/01/34
.........................................
5,000,000
3,631,755
GO
,
2009
B
,
4.52
%,
8/01/39
.........................................
15,000,000
8,478,048
GO
,
2009
B
,
4.39
%,
8/01/42
.........................................
10,750,000
5,423,557
f
San
Bernardino
Community
College
District
,
GO
,
2009
B
,
4.63
%,
8/01/44
.........
12,495,000
5,554,106
San
Diego
Unified
School
District
,
f
GO
,
2010
C
,
6.408
%,
7/01/47
........................................
26,025,000
25,425,722
f
GO
,
2012
E
,
4.784
%,
7/01/42
.........................................
6,940,000
5,808,186
f
GO
,
2012
E
,
5.213
%,
7/01/47
.........................................
13,500,000
11,016,390
GO
,
2025
C-3
,
5
%
,
7/01/50
..........................................
4,910,000
5,134,840
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
San
Francisco
Bay
Area
Rapid
Transit
District
,
GO
,
2020
C-1
,
4
%
,
8/01/45
........
$
10,000,000
$
9,651,124
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
5
%
,
5/01/37
........................................
5,535,000
5,700,573
Revenue
,
2019
A
,
5
%
,
5/01/44
........................................
10,000,000
10,111,871
Revenue
,
2019
A
,
5
%
,
5/01/49
........................................
10,000,000
9,937,180
Revenue,
Second
Series
,
2019
E
,
5
%
,
5/01/50
............................
24,520,000
24,354,274
Revenue,
Second
Series
,
2022
B
,
Refunding
,
5
%
,
5/01/52
...................
5,250,000
5,377,452
Revenue,
Second
Series
,
2024
A
,
Refunding
,
5.25
%
,
5/01/44
.................
8,605,000
9,049,048
Revenue,
Second
Series
,
2024
A
,
Refunding
,
5.25
%
,
5/01/49
.................
350,000
361,650
Revenue,
Second
Series
,
2025
A
,
5.25
%
,
5/01/55
.........................
6,045,000
6,189,039
Revenue,
Second
Series
,
2025
A
,
5.5
%
,
5/01/55
..........................
10,000,000
10,434,532
Revenue,
Second
Series
,
2026
A
,
Refunding
,
5.5
%
,
5/01/56
.................
5,000,000
5,231,828
Revenue,
Second
Series
,
2026
B
,
Refunding
,
5
%
,
5/01/56
...................
4,000,000
4,135,677
San
Francisco
City
&
County
Public
Utilities
Commission
,
Wastewater
,
Revenue
,
2024
C
,
5
%
,
10/01/54
...................................................
10,000,000
10,317,387
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
Mission
Bay
South
Redevelopment
Area
Tax
Increment
Financing
District
,
Tax
Allocation
,
2014
A
,
5
%
,
8/01/43
......................................................
2,500,000
2,501,035
San
Joaquin
Hills
Transportation
Corridor
Agency
,
f
Revenue
,
1997
A
,
Refunding
,
NATL
Insured
,
3.54
%,
1/15/32
.................
50,225,000
41,658,438
f
Revenue,
Junior
Lien
,
ETM,
2.43
%,
1/01/28
..............................
19,150,000
18,544,808
Revenue,
Junior
Lien
,
2014
B
,
Refunding
,
5.25
%
,
1/15/44
...................
1,125,000
1,125,306
Revenue,
Junior
Lien
,
2014
B
,
Refunding
,
5.25
%
,
1/15/49
...................
13,790,000
13,793,875
e
San
Joaquin
Valley
Clean
Energy
Authority
,
Revenue
,
2025
A
,
Mandatory
Put
,
5.5
%
,
7/01/35
.........................................................
21,250,000
22,942,033
d,f
Santa
Barbara
Housing
Authority
,
Revenue
,
144A,
2025
A-S
,
8.14
%,
5/01/44
......
14,600,000
3,665,879
Santa
Barbara
Unified
School
District
,
GO
,
2011
A
,
7
%
,
8/01/36
................
8,000,000
9,898,897
f
Siskiyou
Union
High
School
District
,
GO
,
2009
B
,
AG
Insured
,
5.14
%,
8/01/49
......
15,015,000
4,758,048
St.
Helena
Unified
School
District
,
GO
,
2011
B
,
6.45
%
,
6/01/36
.................
10,000,000
12,371,610
State
of
California
,
GO
,
Refunding
,
4.125
%
,
3/01/45
......................................
12,000,000
11,733,210
GO
,
4.125
%
,
3/01/49
...............................................
5,500,000
5,311,043
GO
,
5
%
,
3/01/55
..................................................
8,000,000
8,275,308
GO
,
5
%
,
10/01/56
.................................................
10,000,000
10,344,939
State
of
California
Department
of
Water
Resources
,
Water
Supply
,
Revenue
,
2026
A
,
5
%
,
12/01/56
.....................................................
15,000,000
15,548,298
Stockton
Community
Facilities
District
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
4
,
Special
Tax
,
2025
,
5
%
,
9/01/45
....................................................
1,000,000
995,088
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
4
,
Special
Tax
,
2025
,
5
%
,
9/01/50
....................................................
1,500,000
1,463,403
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
4
,
Special
Tax
,
2025
,
5
%
,
9/01/55
....................................................
1,550,000
1,490,799
Sulphur
Springs
Union
School
District
,
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2018
,
5
%
,
9/01/43
.......................................
2,820,000
2,827,514
f
Susanville
School
District
,
GO
,
2010
,
AG
Insured
,
5.13
%,
8/01/49
...............
17,505,000
5,566,308
Tejon
Ranch
Public
Facilities
Finance
Authority
,
Tejon
Industrial
Complex
Public
Improvements
–
East
Community
Facilities
District
No.
2008-1
,
Special
Tax
,
2024
A
,
Refunding
,
5
%
,
9/01/54
.............................................
2,250,000
2,175,584
Temescal
Valley
Water
District
,
Community
Facilities
District
No.
4
Improvement
Area
No.
3
,
Special
Tax
,
2024
,
5
%
,
9/01/44
........................................................
600,000
607,605
Community
Facilities
District
No.
4
Improvement
Area
No.
3
,
Special
Tax
,
2024
,
5
%
,
9/01/54
........................................................
1,185,000
1,164,628
Three
Rivers
Levee
Improvement
Authority
,
Special
Tax
,
2021
B
,
Refunding
,
4
%
,
9/01/51
.........................................................
2,710,000
2,302,024
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
f
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2006
C
,
10.75
%,
6/01/46
................
$
13,500,000
$
1,795,545
f
Torrance
Unified
School
District
,
GO
,
2009
B-1
,
4.99
%,
8/01/34
.................
4,690,000
3,190,473
Tracy
Community
Facilities
District
,
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2018
,
5
%
,
9/01/43
......................................
5,500,000
5,510,972
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2018
,
5
%
,
9/01/48
......................................
6,490,000
6,465,946
City
of
Tracy
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1
,
Special
Tax
,
2019
,
5
%
,
9/01/49
......................................
1,960,000
1,924,184
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation
,
2020
B
,
5
%
,
10/01/38
..................
550,000
550,797
Truckee-Donner
Public
Utility
District
,
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2004
,
5.75
%
,
9/01/29
........
1,915,000
1,903,583
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2004
,
5.8
%
,
9/01/35
........
4,470,000
4,357,079
Community
Facilities
District
No.
04-1
,
Special
Tax
,
2005
,
5.25
%
,
9/01/30
........
4,990,000
4,863,818
University
of
California
,
Revenue
,
2025
CC
,
5
%
,
5/15/47
......................................
12,500,000
13,135,219
Revenue
,
2025
CC
,
5
%
,
5/15/53
......................................
20,200,000
21,034,438
Revenue
,
2026
CF
,
Refunding
,
5
%
,
11/15/45
.............................
1,250,000
1,326,863
Vallejo
Redevelopment
Agency
,
Tax
Allocation
,
2001
A
,
7
%
,
10/01/31
............
1,560,000
1,564,412
f
Victor
Valley
Community
College
District
,
GO
,
2008
C
,
4.9
%,
6/01/49
............
11,940,000
4,023,010
Washington
Township
Health
Care
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
7/01/35
...............................
2,000,000
1,910,921
Revenue
,
2017
B
,
Refunding
,
4
%
,
7/01/36
...............................
1,900,000
1,791,328
Westside
Union
School
District
,
Community
Facilities
District
No.
2018-1
Area
1
,
Special
Tax
,
2021
,
4
%
,
9/01/46
.......................................
360,000
307,754
2,933,935,968
Florida
0.3%
d,f
Capital
Trust
Authority
,
Gulf
Coast
Portfolio
Obligated
Group
,
Revenue
,
144A,
2024
,
Refunding
,
6.56
%,
3/01/29
...........................................
8,200,000
6,996,305
d
,e
Florida
Development
Finance
Corp.
,
Brightline
Florida
Holdings
LLC
,
Revenue
,
144A,
2025
B
,
Mandatory
Put
,
10
%
,
9/01/26
..................................
3,625,000
2,356,250
9,352,555
Minnesota
0.1%
d
City
of
Fridley
,
Roers
Fridley
Apartments
Owner
II
LLC
,
Revenue
,
144A,
2023
B-2
,
9
%
,
6/01/41
.........................................................
3,250,000
3,200,833
Texas
0.5%
d
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Junior
Lien
,
144A,
2022
B
,
6.25
%
,
12/01/54
..............................
10,100,000
8,422,377
d
Texas
Community
Housing
&
Economic
Development
Corp.
,
f
Agape
Helotes,
Inc.
,
Revenue,
Junior
Lien
,
144A,
2025
B
,
7.736
%,
1/01/65
......
163,530,000
8,103,941
Agape
Helotes,
Inc.
,
Revenue,
Senior
Lien
,
144A,
2025
A-2
,
12
%
,
1/01/65
.......
1,070,000
1,060,505
17,586,823
Virginia
0.2%
d
Virginia
Small
Business
Financing
Authority
,
P3
VB
Holdings
LLC
,
Revenue,
Senior
Lien
,
144A,
2023
A
,
8.5
%
,
12/01/52
....................................
5,250,000
5,020,496
Wisconsin
0.3%
d
Public
Finance
Authority
,
FAH
Tree
House
LLC
,
Revenue
,
144A,
2023
B
,
6.625
%
,
2/01/46
..............
7,000,000
5,795,068
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
d
Public
Finance
Authority,
(continued)
f
Pine
Forest
2022
Obligated
Group
,
Revenue,
Sub.
Lien
,
144A,
2022
,
2.279
%,
12/01/45
.......................................................
$
6,000,000
$
4,804,068
10,599,136
U.S.
Territories
4.9%
American
Samoa
0.0%
†
d
American
Samoa
Economic
Development
Authority
,
Revenue
,
144A,
2025
B
,
5.25
%
,
9/01/45
.........................................................
1,125,000
1,097,217
Guam
0.6%
Guam
Government
Waterworks
Authority
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/40
..
9,885,000
9,899,808
Guam
Power
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/38
..............
4,750,000
4,774,410
Territory
of
Guam
,
Revenue
,
2021
F
,
Refunding
,
4
%
,
1/01/36
...............................
250,000
245,901
Revenue
,
2021
F
,
Refunding
,
4
%
,
1/01/42
...............................
1,125,000
1,035,136
Hotel
Occupancy
Tax
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
11/01/35
.............
3,000,000
3,096,533
19,051,788
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
1,455,000
1,473,855
Puerto
Rico
3.9%
Commonwealth
of
Puerto
Rico
,
f,g
GO
,
FRN
,
2.567
%,
11/01/43
..........................................
2,826,453
2,017,381
GO
,
2022
A-1
,
5.625
%
,
7/01/27
.......................................
403,843
410,475
GO
,
2022
A-1
,
5.625
%
,
7/01/29
.......................................
796,704
837,116
GO
,
2022
A-1
,
5.75
%
,
7/01/31
........................................
773,832
835,235
GO
,
2022
A-1
,
4
%
,
7/01/33
..........................................
733,796
731,245
GO
,
2022
A-1
,
4
%
,
7/01/35
..........................................
659,584
650,045
GO
,
2022
A-1
,
4
%
,
7/01/37
..........................................
566,098
549,099
GO
,
2022
A-1
,
4
%
,
7/01/41
..........................................
769,676
714,890
GO
,
2022
A-1
,
4
%
,
7/01/46
..........................................
11,300,453
10,040,190
f
GO
,
2022
A-1
,
4.7
%,
7/01/33
.........................................
944,324
690,096
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
10,773,540
10,632,252
HTA
CL
6
Trust
,
Revenue
,
L-2028
,
5.25
%
,
7/01/38
..........................
685,869
686,032
Puerto
Rico
Electric
Power
Authority
,
c
Revenue
,
1
,
10
%
,
1/01/21
...........................................
1,768,493
1,370,582
c
Revenue
,
2
,
10
%
,
7/01/21
...........................................
1,768,493
1,370,582
c
Revenue
,
2013
A
,
10
%
,
7/01/19
.......................................
1,601,766
1,241,368
c
Revenue
,
2013
A
,
7
%
,
7/01/33
........................................
10,290,000
7,743,225
c
Revenue
,
2016
B-1
,
10
%
,
7/01/19
.....................................
1,601,765
1,241,368
c
Revenue
,
3
,
10
%
,
1/01/22
...........................................
600,000
465,000
c
Revenue
,
4
,
10
%
,
7/01/22
...........................................
600,000
465,000
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
....................
1,800,000
1,810,511
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Revenue
,
2000
A
,
6.625
%
,
1/01/27
....................................
362,482
361,949
Revenue
,
2000
A
,
6.625
%
,
1/01/28
....................................
2,764,591
2,755,763
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
4.55
%
,
7/01/40
................................
100,000
99,020
Sales
Tax
,
Revenue
,
A-1
,
4.75
%
,
7/01/53
................................
18,244,000
17,263,996
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
..................................
13,695,000
13,290,794
f
Sales
Tax
,
Revenue
,
A-1
,
5.29
%,
7/01/46
................................
20,000,000
7,198,986
f
Sales
Tax
,
Revenue
,
A-1
,
5.54
%,
7/01/51
................................
47,945,000
12,565,569
Sales
Tax
,
Revenue
,
A-2
,
4.329
%
,
7/01/40
...............................
4,419,000
4,325,403
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.,
(continued)
Sales
Tax
,
Revenue
,
A-2
,
4.784
%
,
7/01/58
...............................
$
28,616,000
$
27,020,300
129,383,472
Virgin
Islands
0.3%
Matching
Fund
Special
Purpose
Securitization
Corp.
,
United
States
Virgin
Islands
Federal
Excise
Tax
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
10/01/39
...............
9,660,000
9,867,083
Total
U.S.
Territories
....................................................................
160,873,415
Total
Municipal
Bonds
(Cost
$
3,253,591,390
)
...................................
3,154,700,580
Total
Long
Term
Investments
(Cost
$
3,328,743,953
)
.............................
3,221,103,317
a
a
a
a
a
Short
Term
Investments
1.9%
Municipal
Bonds
1.9%
California
1.9%
j
Anaheim
Housing
&
Public
Improvements
Authority
,
City
of
Anaheim
Water
System
,
Revenue,
Second
Lien
,
2024
A
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.4
%
,
10/01/54
...................................................
7,700,000
7,700,000
j
Bay
Area
Toll
Authority
,
Revenue
,
2024
H
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.35
%
,
4/01/59
................................................
10,000,000
10,000,000
j
Eastern
Municipal
Water
District
,
Revenue
,
2018
A
,
Refunding
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.3
%
,
7/01/46
.................................
20,900,000
20,900,000
j
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
2.4
%
,
5/15/48
...................
20,100,000
20,100,000
Revenue
,
2013
AL-3
,
Refunding
,
Daily
VRDN
and
Put
,
2.35
%
,
5/15/48
..........
800,000
800,000
Revenue
,
2013
AL-4
,
Refunding
,
Daily
VRDN
and
Put
,
2.25
%
,
5/15/48
..........
3,200,000
3,200,000
62,700,000
Total
Municipal
Bonds
(Cost
$
62,700,000
)
......................................
62,700,000
Total
Short
Term
Investments
(Cost
$
62,700,000
)
................................
62,700,000
a
Total
Investments
(Cost
$
3,391,443,953
)
99.5
%
..................................
$3,283,803,317
Other
Assets,
less
Liabilities
0.5
%
.............................................
17,383,226
Net
Assets
100.0%
...........................................................
$3,301,186,543
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
See
Abbreviations
on
page
43
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
b
Non-income
producing.
c
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
6.
d
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2026,
the
aggregate
value
of
these
securities
was
$928,757,088,
representing
28.1%
of
net
assets.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
f
The
rate
shown
represents
the
yield
at
period
end.
g
The
coupon
rate
shown
represents
the
rate
at
period
end.
h
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
i
Investment
in
an
interest-only
security
entitles
holders
to
receive
only
the
interest
payment
on
the
underlying
instruments.
The
principal
amount
shown
is
the
notional
amount
of
the
underlying
instruments.
j
Variable
rate
demand
notes
(VRDN)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
pay-
ment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
August
31,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$3,391,443,953
Value
-
Unaffiliated
issuers
..................................................................
$3,283,803,317
Cash
....................................................................................
499,484
Receivables:
Capital
shares
sold
........................................................................
1,967,153
Interest
.................................................................................
46,187,181
Total
assets
..........................................................................
3,332,457,135
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
13,637,379
Capital
shares
redeemed
...................................................................
13,464,940
Management
fees
.........................................................................
1,295,667
Distribution
fees
..........................................................................
346,459
Transfer
agent
fees
........................................................................
694,822
Trustees'
fees
and
expenses
.................................................................
124
Distributions
to
shareholders
.................................................................
1,498,638
Accrued
expenses
and
other
liabilities
...........................................................
332,563
Total
liabilities
.........................................................................
31,270,592
Net
assets,
at
value
.................................................................
$3,301,186,543
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,615,022,989
Total
distributable
earnings
(losses)
.............................................................
(313,836,446)
Net
assets,
at
value
.................................................................
$3,301,186,543
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
August
31,
2026
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
Franklin
California
High
Yield
Municipal
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,205,934,669
Shares
outstanding
........................................................................
126,423,840
Net
asset
value
per
share
a
,b
..................................................................
$9.54
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
b
................................
$9.91
Class
A1:
Net
assets,
at
value
.......................................................................
$619,494,142
Shares
outstanding
........................................................................
65,071,951
Net
asset
value
per
share
a
,b
..................................................................
$9.52
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96
.25
%
)
b
................................
$9.89
Class
C:
Net
assets,
at
value
.......................................................................
$66,357,486
Shares
outstanding
........................................................................
6,916,758
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$9.59
Class
R6:
Net
assets,
at
value
.......................................................................
$154,937,601
Shares
outstanding
........................................................................
16,222,341
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$9.55
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,254,462,645
Shares
outstanding
........................................................................
131,472,469
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$9.54
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
August
31,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
Franklin
California
High
Yield
Municipal
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$82,570,275
Expenses:
Management
fees
(Note
3
a
)
...................................................................
7,568,227
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
1,489,638
    Class
A1
...............................................................................
323,139
    Class
C
................................................................................
228,730
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
433,687
    Class
A1
...............................................................................
235,089
    Class
C
................................................................................
25,593
    Class
R6
...............................................................................
10,592
    Advisor
Class
............................................................................
460,495
Custodian
fees
.............................................................................
8,793
Reports
to
shareholders
fees
..................................................................
30,205
Registration
and
filing
fees
....................................................................
82,916
Professional
fees
...........................................................................
110,418
Trustees'
fees
and
expenses
..................................................................
17,335
Other
....................................................................................
135,591
Total
expenses
.........................................................................
11,160,448
Net
investment
income
................................................................
71,409,827
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(3,440,153)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(104,683,593)
Net
realized
and
unrealized
gain
(loss)
............................................................
(108,123,746)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(36,713,919)
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Franklin
California
High
Yield
Municipal
Fund
Six
Months
Ended
August
31,
2026
(unaudited)
Year
Ended
February
28,
2026
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$71,409,827
$131,697,527
Net
realized
gain
(loss)
.................................................
(3,440,153)
(22,899,997)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(104,683,593)
10,390,092
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(36,713,919)
119,187,622
Distributions
to
shareholders:
Class
A
.............................................................
(25,044,287)
(42,934,054)
Class
A1
............................................................
(14,075,440)
(29,103,317)
Class
C
.............................................................
(1,326,173)
(2,847,729)
Class
R6
............................................................
(3,020,649)
(2,966,424)
Advisor
Class
........................................................
(28,139,466)
(53,477,488)
Total
distributions
to
shareholders
..........................................
(71,606,015)
(131,329,012)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
77,046,059
187,910,278
Class
A1
............................................................
(21,790,084)
(44,741,509)
Class
C
.............................................................
(4,415,300)
(11,177,350)
Class
R6
............................................................
80,991,459
11,943,438
Advisor
Class
........................................................
(3,585,919)
119,081,951
Total
capital
share
transactions
............................................
128,246,215
263,016,808
Net
increase
(decrease)
in
net
assets
...................................
19,926,281
250,875,418
Net
assets:
Beginning
of
period
.....................................................
3,281,260,262
3,030,384,844
End
of
period
..........................................................
$3,301,186,543
$3,281,260,262
Franklin
Municipal
Securities
Trust
35
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Municipal
Securities
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of one fund,
Franklin
California
High
Yield
Municipal
Fund (Fund).
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class. Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
The
Fund
may
purchase
securities
on
a when-issued,
forward
commitment
or
delayed
delivery basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
purchase
these
securities
with
the
intention
of
holding
the
securities, it
may
sell
the
securities
before
the
settlement
date.
c.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its income
and
net
realized
gains
to
relieve
it
from
federal
income
and 
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2026, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Fund's federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income. Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
g.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
August
31,
2026,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
August
31,
2026
Year
Ended
February
28,
2026
Shares
Amount
Shares
Amount
Class
A
Shares:
(27391596)
–
Shares
sold
a
...................................
18,166,758
$175,899,326
41,732,767
$401,695,487
Shares
issued
in
reinvestment
of
distributions
..........
2,299,325
22,244,346
3,947,930
37,995,370
Shares
redeemed
...............................
(12,543,925)
(121,097,613)
(26,211,259)
(251,780,579)
Net
increase
(decrease)
..........................
7,922,158
$77,046,059
19,469,438
$187,910,278
Class
A1
Shares:
6914322
–
Shares
sold
...................................
1,071,071
$10,394,585
3,630,181
$34,981,543
Shares
issued
in
reinvestment
of
distributions
..........
1,236,810
11,944,127
2,564,612
24,614,926
Shares
redeemed
...............................
(4,558,216)
(44,128,796)
(10,858,779)
(104,337,978)
Net
increase
(decrease)
..........................
(2,250,335)
$(21,790,084)
(4,663,986)
$(44,741,509)
Class
C
Shares:
1620772
–
Shares
sold
...................................
719,397
$7,004,586
1,889,121
$18,341,101
Shares
issued
in
reinvestment
of
distributions
..........
130,360
1,268,349
281,809
2,724,875
Shares
redeemed
a
..............................
(1,300,555)
(12,688,235)
(3,340,904)
(32,243,326)
Net
increase
(decrease)
..........................
(450,798)
$(4,415,300)
(1,169,974)
$(11,177,350)
Class
R6
Shares:
(9584890)
–
Shares
sold
...................................
9,397,738
$91,078,129
4,029,244
$38,839,226
Shares
issued
in
reinvestment
of
distributions
..........
199,172
1,928,783
296,749
2,859,932
Shares
redeemed
...............................
(1,239,121)
(12,015,453)
(3,098,892)
(29,755,720)
Net
increase
(decrease)
..........................
8,357,789
$80,991,459
1,227,101
$11,943,438
Advisor
Class
Shares:
(11869320)
–
Shares
sold
...................................
21,095,436
$204,552,815
51,742,281
$496,706,665
Shares
issued
in
reinvestment
of
distributions
..........
2,494,261
24,133,885
4,573,865
44,017,698
Shares
redeemed
...............................
(24,004,541)
(232,272,619)
(44,031,982)
(421,642,412)
Net
increase
(decrease)
..........................
(414,844)
$(3,585,919)
12,284,164
$119,081,951
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
3.
Transactions
with
Affiliates
Effective
August
17,
2026,
Franklin
Resources,
Inc.
was
renamed
Franklin
Templeton,
Inc.
Franklin
Templeton,
Inc.
is
the
holding
company
for
various
subsidiaries.
Certain
officers
and trustees
of
the Trust are
also
officers
and/or directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management fee,
calculated daily and
paid
monthly,
to
Advisers based
on the
average
daily net
assets
of
the
Fund
as
follows:
For
the
period
ended
August
31,
2026,
the
annualized
gross
effective
investment
management
fee
rate
was 0.458%
of
the
Fund’s
average daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Advisers
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
Class
A
and
A1
reimbursement
distribution
plans,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Distributors
has
agreed
to
limit
the
current
rate
to
0.10%
per
year
for
Class
A1.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the Fund's shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. The
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Fund
based
upon
relative
assets
and
relative
transactions. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
August
31,
2026,
the Fund
paid
transfer
agent
fees
as
noted
in
the
Statement of
Operations,
of
which
$317,858
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Advisers
has contractually
agreed
in
advance
to
waive
or
limit
its fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed 0.65%
based
on
the
average
net
assets
of
each
class
until
June
30,
2027.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund's
fiscal
year
end.
Transfer
agent
fees
on
Class
R6
shares
of
the
Fund have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2027.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
August
31,
2026,
these
purchase
and
sale
transactions
aggregated
$66,617,453
and
$59,800,000,
respectively.
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.15%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$10,834
CDSC
retained
..............................................................................
$76,829
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
28,
2026,
the
capital
loss
carryforwards
were
as
follows:
At
August
31,
2026,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
wash
sales
and
bond
discounts
and
premiums.
5.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
August
31,
2026,
aggregated
$233,526,674 and
$110,042,133,
respectively. 
6.
Credit
Risk
and
Defaulted
Securities
At
August
31,
2026,
the
Fund
had 34.9%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade as
determined
by
Nationally
Recognized
Statistical
Credit
Ratings
Organizations
and/or
internally,
by
investment
management
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
August
31,
2026,
the
aggregate
value
of
these
securities
was $40,981,905
representing 1.2%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying Schedule
of
Investments.
7.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
its total
assets
in
obligations
of
issuers
within California
and
U.S.
territories.
Such
concentration
may
subject
the
Fund
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within California
and
U.S.
territories. Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$
108,517,455
Long
term
................................................................................
98,154,154
Total
capital
loss
carryforwards
...............................................................
$206,671,609
Cost
of
investments
..........................................................................
$3,395,996,561
Unrealized
appreciation
........................................................................
$95,796,807
Unrealized
depreciation
........................................................................
(207,990,051)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(112,193,244)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
8.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
29,
2027.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
may,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
August
31,
2026,
the Fund
did
not
use
the
Global
Credit
Facility.
9.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of August
31,
2026,
in
valuing
the
Fund's
assets carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
.........................
$
—
$
—
$
—
b
$
—
Warrants
...............................
—
—
—
b
—
Corporate
Bonds
:
Commercial
Services
&
Supplies
...........
—
—
16,092,950
16,092,950
Diversified
Consumer
Services
............
—
40,601,260
—
40,601,260
Electric
Utilities
........................
—
9,708,527
—
9,708,527
Municipal
Bonds
:
Arizona
..............................
—
14,131,354
—
14,131,354
California
.............................
—
2,925,711,886
8,224,082
b
2,933,935,968
Florida
...............................
—
9,352,555
—
9,352,555
Minnesota
............................
—
3,200,833
—
3,200,833
Texas
...............................
—
17,586,823
—
17,586,823
Virginia
..............................
—
5,020,496
—
5,020,496
Wisconsin
............................
—
10,599,136
—
10,599,136
U.S.
Territories
American
Samoa
.......................
—
1,097,217
—
1,097,217
Guam
...............................
—
19,051,788
—
19,051,788
Pacific
Islands
.........................
—
1,473,855
—
1,473,855
Puerto
Rico
...........................
—
129,383,472
—
129,383,472
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
10.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
portfolio
managers
assigned
to
the
Fund
within
the
Fund’s
investment
manager serve
as
the
Chief
Operating
Decision
Maker
(“CODM”)
and
are
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund’s
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights. 
11.
New
Accounting
Pronouncements
In
September
2026,
the
FASB
issued
Accounting
Standards
Update
(ASU)
No.
2026-03,
Fair
Value
Measurement
(Topic
820)—Investment
Companies
with
Equity
Securities
Subject
to
Contractual
Sale
Restrictions.
The
amendments
in
the
ASU
require
contractual
sale
restrictions
to
be
considered
in
measuring
the
fair
value
of
equity
securities
and
require
disclosure
of
the
amount
of
the
discount
attributable
to
the
contractual
sale
restriction.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2027,
with
early
adoption
permitted.
Management
is
currently
evaluating
the
impact
on
the
financial
statements.
12.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
(continued)
Assets:
(continued)
U.S.
Territories
(continued)
Virgin
Islands
..........................
$
—
$
9,867,083
$
—
$
9,867,083
Short
Term
Investments
...................
—
62,700,000
—
62,700,000
Total
Investments
in
Securities
...........
$—
$3,259,486,285
$24,317,032
$3,283,803,317
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
financial
instruments
determined
to
have
no
value.
9.
Fair
Value
Measurements
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
Abbreviations
Selected
Portfolio
AG
Assured
Guaranty,
Inc.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
Franklin
Municipal
Securities
Trust
44
franklintempleton.com
Semiannual
Report
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(Fund)
At
an
in-person
meeting
held
on
April
14,
2026
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Municipal
Securities
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
to
consider
the
renewal
of
the
Management
Agreement.
In
considering
the
continuance
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
also
considered
prior
to
and
at
the
Meeting.
On
several
occasions,
both
prior
to,
and
at
the
Meeting,
the
Independent
Trustees
met
with
senior
executives
of
Franklin
Templeton,
Inc.
(FTI),
the
Manager’s
parent,
to
discuss
management’s
perspectives
on
and
ask
questions
regarding
the
performance
of
and
long-term
business
strategies
for
the
Municipal
and
Tax-Free
Funds,
including
on
topics
such
as
the
positioning
of
the
Municipal
and
Tax-Free
Funds
within
the
broader
Franklin
Templeton
product
offering
line
up,
management’s
assessment
of
the
overall
performance
of
the
Municipal
and
Tax-Free
Funds
compared
to
other
similar
suites
of
funds
in
the
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund’s
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Franklin
Municipal
Securities
Trust
45
franklintempleton.com
Semiannual
Report
marketplace,
and
the
appropriateness
of
the
Broadridge
Performance
Universe
selected
for
each
Municipal
and
Tax-Free
Fund.
The
Board
further
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
the
information
it
received
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
FT’s
regular
updates
to
the
Board
on
strategic
initiatives,
ongoing
attention
to
the
service
level
quality
of
third-party
service
providers,
ongoing
efforts
to
modernize
its
mutual
fund
lineup,
mutual
fund
to
ETF
conversions,
integration
of
private
market
investments
into
existing
mutual
funds,
creation
of
additional
blockchain-compatible
money
market
funds,
and
sharpening
of
its
active,
income-oriented
offerings,
along
with
the
impact
on
FT
of
team
integrations
and
staff
reductions.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
the
Manager’s
parent,
Franklin
Resources,
Inc.
(FTI),
FTI’s
continued
growth
of
its
global,
multi-asset
franchise,
and
its
commitment
to
the
mutual
fund
business.
The
Board
further
noted
FTI’s
continued
reassessment
of
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
FTI’s
focus
on
technology-driven
transformation,
expansion
of
its
private
market
investment
capabilities
and
global
alternatives
platform,
and
leveraging
of
artificial
intelligence
(AI),
blockchain
and
digital
wealth
platforms.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2025.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
This
year,
in
addition
to
providing
Class
A
performance
(and
expense)
data,
Broadridge
included
Advisor
Class
performance
data
for
the
Fund
to
align
with
the
performance
reporting
provided
at
Board
meetings
throughout
the
year.
Going
forward,
Broadridge
will
provide
the
Board
solely
with
the
Fund’s
Advisor
Class
performance
information.
Franklin
Municipal
Securities
Trust
46
franklintempleton.com
Semiannual
Report
The
Performance
Universe
for
the
Fund
included
the
Fund,
the
Fund’s
Advisor
Class
shares
and
all
retail
and
institutional
California
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-
and
five-year
periods
was
above
the
median
and
in
the
first
(best)
quintile
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-
and
five-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-related
attributes
of
the
Fund
(e.g.,
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
the
Fund
and
for
Class
A
or
Investor
Class
shares,
as
applicable
for
each
other
fund
in
its
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
10
other
California
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
equal
to
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
above
the
median
of
its
Expense
Group.
The
Board
discussed
the
above
median
actual
total
expense
ratio
with
management
and
management
explained
that
the
Expense
Group
is
comprised
of
California
municipal
debt
funds
that
predominantly
invest
in
investment
grade
bonds
and
of
the
11
funds
within
the
Expense
Group,
only
two
other
funds
have
a
high
yield
investment
mandate.
Management
further
explained
that
high
yield
fixed
income
investment
mandates
generally
require
greater
research
expertise,
risk
management,
trading
and
legal
resources.
The
Board
also
noted
that
the
Fund’s
actual
total
expense
ratio
reflected
an
expense
cap
on
operating
expenses.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2025,
being
the
most
recent
fiscal
year-end
for
FTI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
Franklin
Municipal
Securities
Trust
47
franklintempleton.com
Semiannual
Report
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager,
but
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuance
of
the
Management
Agreement
for
an
additional
one-year
period.
MUN-SFSOI
10/26
©
2026
Franklin
Templeton.
All
rights
reserved.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

 

ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

 

ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.

 

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.

 

ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.

 

The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.

 

ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

 

Not applicable.

 

ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

 

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

 

ITEM 16. CONTROLS AND PROCEDURES.

 

  (a) The Registrants acknowledge the Staff’s comment. In future filings on Form N-CSR, the certifications required by Rule 30a-2 and Item 19(a)(3) will include the designations “principal executive officer” and “principal financial officer” in the signature blocks, reflecting the capacity in which each signatory executes the certification, in conformity with the language of the Rule and Form N-CSR. The Registrants may also include each signatory’s actual title with respect to the Funds alongside the required designation.
     
  (b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected or are likely to materially affect the Registrant’s internal control over financial reporting.

 

ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

 

Not applicable.

 

ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

 

(a) Not applicable.

 

(b) Not applicable.

 

ITEM 19. EXHIBITS.

 

(a) (1) Not applicable

Exhibit 99.CODE ETH

 

(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

 

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Franklin Municipal Securities Trust  
     
By: /s/ Christopher Kings  
  Christopher Kings  
  Chief Executive Officer – Finance and Administration  
     
Date: October 27, 2026  

 

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: October 27, 2026  
     
By: /s/ Jeffrey White  
  Jeffrey White  
  Chief Financial Officer, Chief Accounting Officer and Treasurer  
     
Date: October 27, 2026  
 
ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

XBRL SCHEMA FILE

XBRL DEFINITION FILE

XBRL LABEL FILE

XBRL PRESENTATION FILE

IDEA: R1.htm

IDEA: R2.htm

IDEA: R3.htm

IDEA: R4.htm

IDEA: R5.htm

IDEA: R6.htm

IDEA: R7.htm

IDEA: FilingSummary.xml

IDEA: MetaLinks.json

IDEA: fchymf-efp27771_ncsrs_htm.xml