# EDGAR Filing Document

**Accession Number:** 0000872625
**File Stem:** 0001133228-26-002535
**Filing Date:** 2026-2
**Character Count:** 200300
**Document Hash:** e3f8561dc5efc1ce54f9b8ecc308b00c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-002535.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001133228-26-002535

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 30

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**EFFECTIVENESS DATE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FRANKLIN STRATEGIC SERIES
- **CENTRAL INDEX KEY:** 0000872625

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-06243
- **FILM NUMBER:** 26696523

**BUSINESS ADDRESS:**
- **STREET 1:** ONE FRANKLIN PARKWAY
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403-1906
- **BUSINESS PHONE:** 650-570-3000

**MAIL ADDRESS:**
- **STREET 1:** ONE FRANKLIN PARKWAY
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403-1906

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FRANKLIN CALIFORNIA 250 GROWTH FUND
- **DATE OF NAME CHANGE:** 19911216

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FRANKLIN CALIFORNIA 250 GROWTH INDEX FUND
- **DATE OF NAME CHANGE:** 19910917

## Series and Classes Contracts Data

### Franklin Templeton SMACS: Series C (Series ID: S000092788)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000260830 | Franklin Templeton SMACS: Series C | FACBX           |

### Franklin Templeton SMACS: Series CP (Series ID: S000092789)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000260831 | Franklin Templeton SMACS: Series CP | FASBX           |

?xml version='1.0' encoding='ASCII'? 2026-01-1574200192900_FranklinTempletonSMACSSeriesC_SingleClass_TSRAnnual

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 **811-06243**

 **Franklin Strategic Series**

(Exact name of registrant as specified in charter)

**One Franklin Parkway, San Mateo, CA 94403-1906**

(Address of principal executive offices) (Zip code)

Alison Baur

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: **December 31**

Date of reporting period: **December 31, 2025**

ITEM 1. REPORT TO STOCKHOLDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Report to Shareholders is filed herewith

---

| | |
|:---|:---|
| **Franklin Templeton SMACS: Series C**  | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Templeton SMACS: Series C for the period June 20, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

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

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

---

| | | |
|:---|:---|:---|
| **Fund Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Franklin Templeton SMACS: Series C<sup>1,</sup><sup>2</sup>  | $0 | 0.00% |

---

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

---

| | |
|:---|:---|
| 1 | Amounts are for the period June 20, 2025 through December 31, 2025. Expenses for the full reporting period would have been higher. |

---

2 Does not reflect the effect of fees and expenses associated with a separately managed account, or a management fee or other operating expenses of the Fund.

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

For the period June 20, 2025, to December 31, 2025, Franklin Templeton SMACS: Series C Fund returned 4.62%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.23% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Overweight agency mortgage-backed securities |
| ↑ | Overweight investment-grade corporate bonds |
| ↑ | Duration positioning |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Security selection in agency mortgage-backed securities |
| ↓ | Security selection in investment-grade corporate bonds |
| ↓ | Lack of exposure to sovereign emerging market debt |

---

Franklin Templeton SMACS: Series C PAGE 1 3011-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares, or the effect of fees and expenses borne by investors at the separately managed account level.

**VALUE OF A $** **10,000 INVESTMENT –** **Franklin Templeton SMACS: Series C** 6/20/2025 — 12/31/2025

![image](ts6373img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | |
|:---|:---|
|  | **Since Inception**<br>**(6/20/2025)** |
| **Franklin Templeton SMACS: Series C**  | 4.62 |
| **Bloomberg U.S. Aggregate Index**  | 4.23 |

---

Returns for less than one year have not been annualized.

Performance figures do not reflect the effect of fees and expenses associated with a separately managed account or a management fee or other operating expenses of the Fund, which if reflected, would reduce performance of the Fund.

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

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

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

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $8230975 |
| **Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)** | 220 |
| **Total Management Fee Paid** | $0 |
| **Portfolio Turnover Rate** | 10.52% |

---

Franklin Templeton SMACS: Series C PAGE 2 3011-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6373img004.jpg)

\* Does not include derivatives, except purchased options, if any.

**HOW HAS THE FUND CHANGED?**

Effective September 30, 2025, Thomas Runkel, CFA stepped down as a member of the Fund's portfolio management team.

This is a summary of certain changes to the Fund since June 20, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or

prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Templeton SMACS: Series C PAGE 3 3011-ATSR-0226

------

---

| | |
|:---|:---|
| **Franklin Templeton SMACS: Series CP**  | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| December 31, 2025  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin Templeton SMACS: Series CP for the period June 20, 2025, to December 31, 2025.

You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.

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

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

---

| | | |
|:---|:---|:---|
| **Fund Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment**<sup>\*</sup>  |
| Franklin Templeton SMACS: Series CP<sup>1,</sup><sup>2</sup>  | $0 | 0.00% |

---

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

---

| | |
|:---|:---|
| 1 | Amounts are for the period June 20, 2025 through December 31, 2025. Expenses for the full reporting period would have been higher. |

---

2 Does not reflect the effect of fees and expenses associated with a separately managed account, or a management fee or other operating expenses of the Fund.

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

For the period June 20, 2025, to December 31, 2025, Franklin Templeton SMACS: Series CP Fund returned 4.95%. The Fund compares its performance to the Bloomberg U.S. Aggregate Index, which returned 4.23% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Out-of-Index allocation to high-yield corporate bonds |
| ↑ | Security selection in emerging market debt |
| ↑ | Overweight exposure to investment-grade corporate bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Security selection in senior secured floating-rate bank loans |
| ↓ | Security selection in high-yield corporate bonds |
| ↓ | Underweight exposure to bonds with 20 years to maturity |

---

**Use of derivatives and the impact on performance:**

The Fund utilized swap contracts to manage duration, which contributed to performance.

Franklin Templeton SMACS: Series CP PAGE 1 3012-ATSR-0226

------

**HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?**

**The Fund's past performance is not necessarily an indication of how the Fund will perform in the future.** The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares, or the effect of fees and expenses borne by investors at the separately managed account level.

**VALUE OF A $** **10,000 INVESTMENT –** **Franklin Templeton SMACS: Series CP** 6/20/2025 — 12/31/2025

![image](ts6374img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended December 31, 2025

---

| | |
|:---|:---|
|  | **Since Inception**<br>**(6/20/2025)** |
| **Franklin Templeton SMACS: Series CP**  | 4.95 |
| **Bloomberg U.S. Aggregate Index**  | 4.23 |

---

Returns for less than one year have not been annualized.

Performance figures do not reflect the effect of fees and expenses associated with a separately managed account or a management fee or other operating expenses of the Fund, which if reflected, would reduce performance of the Fund.

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

For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit

https://www.franklintempleton.com/investments/options/mutual-funds.

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

**KEY FUND STATISTICS** (as of December 31, 2025)

---

| | |
|:---|:---|
| **Total Net Assets** | $8235087 |
| **Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)** | 261 |
| **Total Management Fee Paid** | $0 |
| **Portfolio Turnover Rate** | 8.31% |

---

Franklin Templeton SMACS: Series CP PAGE 2 3012-ATSR-0226

------

**WHAT DID THE FUND INVEST IN?** (as of December 31, 2025)

**Portfolio Composition**<sup>\*</sup> **(% of Total Investments)**

![image](ts6374img004.jpg)

\* Does not include derivatives, except purchased options, if any.

**HOW HAS THE FUND CHANGED?**

Effective September 30, 2025, Thomas Runkel, CFA stepped down as a member of the Fund's portfolio management team.

This is a summary of certain changes to the Fund since June 20, 2025. For more complete information, you may review the Fund's current prospectus and any applicable supplements and the Fund's next prospectus, which we expect to be available by May 1, 2026, at https://www.franklintempleton.com/regulatory-fund-documents or upon request at (800) DIAL BEN/342-5236 or

prospectus.us.franklintempleton@fisglobal.com.

---

| | |
|:---|:---|
| ![image](img11308_202405310907293.jpg) | **WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?** |
| ![image](img11308_202405310907293.jpg) | Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its: |
| ![image](img11308_202405310907293.jpg) | • prospectus • proxy voting information • financial information • holdings • tax information |

---

Franklin Templeton SMACS: Series CP PAGE 3 3012-ATSR-0226

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

ITEM 2. CODE OF ETHICS.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Audit Fees</u>. The aggregate fees billed for the fiscal year ending December 31, 2025 (the "Reporting Period") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Period, $0 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Audit-Related Fees</u>. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tax Fees</u>. The aggregate fees billed in the Reporting Period for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $19,500 in December 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to the Registrant's investment manager and any entity controlling, controlled by, or under common control with the investment manager that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>All Other Fees</u>. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in December 31, 2024 and $0 in December 31, 2025.

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pre-approval of all audit and audit related services;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pre-approval of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services relate directly to the operations or financial reporting of the Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) establishment by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $1,690,011 in December 31, 2025.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable*.*

ITEM 6. SCHEDULE OF INVESTMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

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

#### Franklin

#### Strategic

#### Series

#### Financial

#### Statements

#### and

#### Other

#### Important

#### Information

#### Annual
\|

December

31,

2025

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### Table

#### of

#### Contents
franklintempleton.com

Financial

Statements

and

Other

Important

Information—Annual

Financial

Highlights

and

Schedules

of

Investments

#### 2
Financial

Statements

#### 26
Notes

to

Financial

Statements

#### 29
Report

of

Independent

Registered

Public

Accounting

Firm

#### 40
Tax

Information

#### 41
Changes

In

and

Disagreements

with

Accountants

#### 42
Results

of

Meeting(s)

of

Shareholders

Remuneration

Paid

to

Directors,

Officers

and

Others

Board

Approval

of

Management

and

Subadvisory

Agreements

Franklin

Strategic

Series

Financial

Highlights

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### a

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c

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

0.26 Net

realized

and

unrealized

gains

(losses)

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

0.19 Total

from

investment

operations

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

0.45 Less

distributions

from:

Net

investment

income

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

(0.25)

Net

realized

gains

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

(—)

d

Net

asset

value,

end

of

year

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

$10.20

Total

return

e

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

4.62%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

before

waiver

and

payments

by

affiliates

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

2.48%

Expenses

net

of

waiver

and

payments

by

affiliates

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

—%

Net

investment

income

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

4.79%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

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

$8,231

Portfolio

turnover

rate

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

10.52%

a

For

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025. b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Strategic

Series

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds

#### 33.8%

#### Aerospace

#### &

#### Defense

#### 1.3%
Boeing

Co.

(The)

,

Senior

Bond

,

2.95 %

,

2/01/30

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

$

8,000

$

7,583

Senior

Bond

,

6.125 %

,

2/15/33

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

11,000

11,852

Senior

Bond

,

6.875 %

,

3/15/39

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

10,000

11,285

Senior

Bond

,

3.375 %

,

6/15/46

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

12,000

8,531

Senior

Bond

,

3.9 %

,

5/01/49

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

11,000

8,227

Senior

Bond

,

6.858 %

,

5/01/54

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

7,000

7,867

Senior

Note

,

2.196 %

,

2/04/26

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

20,000

19,963

Howmet

Aerospace,

Inc.

,

Senior

Bond

,

6.75 %

,

1/15/28

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

8,000

8,424

Senior

Bond

,

5.95 %

,

2/01/37

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

11,000

11,905

Senior

Note

,

%

,

1/15/29

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

8,000

7,763

103,400

#### Automobiles

#### 0.5%
a

Hyundai

Capital

America

,

Senior

Note

,

144A,

6.5 %

,

1/16/29

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

38,000

40,269

#### Banks

#### 3.8%
Bank

of

America

Corp.

,

Senior

Bond

,

5.468%

to

1/22/34,

FRN

thereafter

,

1/23/35

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

8,000

8,336

Senior

Note

,

2.551%

to

2/03/27,

FRN

thereafter

,

2/04/28

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

12,000

11,807

Sub.

Bond

,

5.425%

to

8/14/34,

FRN

thereafter

,

8/15/35

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

15,000

15,346

Sub.

Bond

,

3.846%

to

3/07/32,

FRN

thereafter

,

3/08/37

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

35,000

32,970

Citigroup,

Inc.

,

Sub.

Bond

,

4.45 %

,

9/29/27

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

31,000

31,210

Sub.

Bond

,

6.174%

to

5/24/33,

FRN

thereafter

,

5/25/34

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

8,000

8,502

Fifth

Third

Bancorp

,

Senior

Note

,

6.339%

to

7/26/28,

FRN

thereafter

,

7/27/29

......

11,000

11,587

JPMorgan

Chase

&

Co.

,

b

KK

,

Junior

Sub.

Bond

,

3.65%

to

5/31/26,

FRN

thereafter

,

Perpetual

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

7,000

6,965

Senior

Bond

,

3.782%

to

1/31/27,

FRN

thereafter

,

2/01/28

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

31,000

30,938

Senior

Bond

,

5.502%

to

1/23/35,

FRN

thereafter

,

1/24/36

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

8,000

8,366

Sub.

Bond

,

5.717%

to

9/13/32,

FRN

thereafter

,

9/14/33

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

16,000

16,920

PNC

Financial

Services

Group,

Inc.

(The)

,

Sub.

Bond

,

4.626%

to

6/05/32,

FRN

thereafter

,

6/06/33

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

28,000

27,790

Royal

Bank

of

Canada

,

Senior

Note

,

5.2 %

,

8/01/28

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

20,000

20,624

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.108 %

,

6/08/27

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

20,000

20,067

US

Bancorp

,

Sub.

Bond

,

2.491%

to

11/02/31,

FRN

thereafter

,

11/03/36

...........

14,000

12,227

Wells

Fargo

&

Co.

,

b

BB

,

Junior

Sub.

Bond

,

3.9%

to

3/14/26,

FRN

thereafter

,

Perpetual

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

12,000

11,970

Senior

Bond

,

2.879%

to

10/29/29,

FRN

thereafter

,

10/30/30

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

43,000

40,920

316,545

#### Biotechnology

#### 0.8%
AbbVie,

Inc.

,

Senior

Bond

,

5.05 %

,

3/15/34

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

40,000

41,121

Amgen,

Inc.

,

Senior

Bond

,

5.65 %

,

3/02/53

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

7,000

6,859

Senior

Note

,

5.25 %

,

3/02/30

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

8,000

8,307

a

CSL

Finance

plc

,

Senior

Bond

,

144A,

4.625 %

,

4/27/42

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

14,000

12,698

68,985

#### Capital

#### Markets

#### 2.2%
Ares

Capital

Corp.

,

Senior

Note

,

3.875 %

,

1/15/26

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

8,000

7,999

Senior

Note

,

%

,

1/15/27

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

8,000

8,201

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Capital

#### Markets
(continued)

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

4.223%

to

4/30/28,

FRN

thereafter

,

5/01/29

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

$

20,000

$

20,059

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

1.85 %

,

9/15/32

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

29,000

24,749

a

KKR

Group

Finance

Co.

VI

LLC

,

Senior

Bond

,

144A,

3.75 %

,

7/01/29

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

12,000

11,759

LPL

Holdings,

Inc.

,

Senior

Note

,

5.2 %

,

3/15/30

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

20,000

20,476

Morgan

Stanley

,

Senior

Note

,

5.123%

to

1/31/28,

FRN

thereafter

,

2/01/29

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

20,000

20,419

Senior

Note

,

5.23%

to

1/14/30,

FRN

thereafter

,

1/15/31

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

16,000

16,507

Sub.

Bond

,

5.942%

to

2/06/34,

FRN

thereafter

,

2/07/39

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

8,000

8,412

a

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.625 %

,

9/01/30

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

22,000

21,031

S&P

Global,

Inc.

,

Senior

Bond

,

2.5 %

,

12/01/29

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

22,000

20,750

180,362

#### Chemicals

#### 0.1%
FMC

Corp.

,

Senior

Bond

,

3.45 %

,

10/01/29

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

13,000

11,538

#### Commercial

#### Services

#### &

#### Supplies

#### 0.6%
Republic

Services,

Inc.

,

Senior

Note

,

%

,

11/15/29

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

20,000

20,703

Waste

Connections,

Inc.

,

Senior

Bond

,

4.25 %

,

12/01/28

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

8,000

8,058

Senior

Bond

,

%

,

3/01/34

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

16,000

16,355

Waste

Management,

Inc.

,

Senior

Note

,

4.875 %

,

2/15/29

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

8,000

8,209

53,325

#### Communications

#### Equipment

#### 0.6%
Cisco

Systems,

Inc.

,

Senior

Bond

,

5.05 %

,

2/26/34

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

20,000

20,588

Motorola

Solutions,

Inc.

,

Senior

Bond

,

2.3 %

,

11/15/30

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

7,000

6,365

Senior

Note

,

4.85 %

,

8/15/30

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

8,000

8,165

Senior

Note

,

5.2 %

,

8/15/32

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

11,000

11,347

46,465

#### Consumer

#### Finance

#### 0.9%
Ally

Financial,

Inc.

,

Senior

Bond

,

%

,

11/01/31

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

11,000

12,501

Capital

One

Financial

Corp.

,

Senior

Note

,

7.624%

to

10/29/30,

FRN

thereafter

,

10/30/31

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

18,000

20,349

General

Motors

Financial

Co.,

Inc.

,

Senior

Note

,

4.9 %

,

10/06/29

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

16,000

16,258

a

Macquarie

Airfinance

Holdings

Ltd.

,

Senior

Note

,

144A,

5.15 %

,

3/17/30

...........

24,000

24,348

73,456

#### Consumer

#### Staples

#### Distribution

#### &

#### Retail

#### 0.3%
a

7-Eleven,

Inc.

,

Senior

Bond

,

144A,

1.8 %

,

2/10/31

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

2,000

1,754

Senior

Note

,

144A,

1.3 %

,

2/10/28

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

11,000

10,391

a

Alimentation

Couche-Tard,

Inc.

,

Senior

Bond

,

144A,

2.95 %

,

1/25/30

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

13,000

12,324

24,469

#### Containers

#### &

#### Packaging

#### 0.3%
Berry

Global,

Inc.

,

Senior

Secured

Note

,

1.65 %

,

1/15/27

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

11,000

10,714

WestRock

MWV

LLC

,

Senior

Bond

,

7.95 %

,

2/15/31

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

12,000

13,749

24,463

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Diversified

#### REITs

#### 0.5%
GLP

Capital

LP

/

GLP

Financing

II,

Inc.

,

Senior

Bond

,

3.25 %

,

1/15/32

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

$

12,000

$

10,889

VICI

Properties

LP

,

Senior

Bond

,

5.75 %

,

4/01/34

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

8,000

8,260

a

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.875 %

,

2/15/29

......

21,000

20,620

39,769

#### Diversified

#### Telecommunication

#### Services

#### 1.1%
AT&T,

Inc.

,

Senior

Bond

,

2.25 %

,

2/01/32

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

11,000

9,653

Senior

Bond

,

2.55 %

,

12/01/33

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

16,000

13,660

Senior

Bond

,

4.75 %

,

5/15/46

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

7,000

6,081

Sprint

Capital

Corp.

,

Senior

Bond

,

6.875 %

,

11/15/28

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

45,000

48,306

Verizon

Communications,

Inc.

,

Senior

Note

,

2.355 %

,

3/15/32

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

14,000

12,342

90,042

#### Electric

#### Utilities

#### 3.4%
a

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65 %

,

1/15/32

........

23,000

20,740

Appalachian

Power

Co.

,

L

,

Senior

Bond

,

5.8 %

,

10/01/35

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

12,000

12,742

Commonwealth

Edison

Co.

,

Senior

Bond

,

5.875 %

,

2/01/33

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

8,000

8,541

Duke

Energy

Carolinas

LLC

,

Senior

Bond

,

4.25 %

,

12/15/41

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

8,000

7,040

Duke

Energy

Corp.

,

Senior

Bond

,

5.45 %

,

6/15/34

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

12,000

12,520

Senior

Note

,

4.85 %

,

1/05/29

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

8,000

8,167

Exelon

Corp.

,

Senior

Bond

,

5.625 %

,

6/15/35

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

12,000

12,568

Senior

Note

,

5.15 %

,

3/15/29

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

12,000

12,343

Georgia

Power

Co.

,

Senior

Bond

,

5.25 %

,

3/15/34

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

40,000

41,310

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Bond

,

5.9 %

,

3/15/55

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

8,000

8,094

Senior

Note

,

5.3 %

,

3/15/32

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

20,000

20,843

a

NRG

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

2.45 %

,

12/02/27

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

21,000

20,312

Pacific

Gas

and

Electric

Co.

,

Senior

Bond

,

5.9 %

,

6/15/32

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

8,000

8,395

Senior

Bond

,

6.75 %

,

1/15/53

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

4,000

4,276

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

5.05 %

,

8/15/34

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

31,000

31,457

a

Vistra

Operations

Co.

LLC

,

Senior

Secured

Bond

,

144A,

4.3 %

,

7/15/29

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

12,000

11,922

Senior

Secured

Bond

,

144A,

6.95 %

,

10/15/33

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

11,000

12,291

Xcel

Energy,

Inc.

,

Senior

Bond

,

5.6 %

,

4/15/35

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

24,000

24,875

278,436

#### Entertainment

#### 0.1%
Netflix,

Inc.

,

Senior

Bond

,

5.4 %

,

8/15/54

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

8,000

7,758

#### Financial

#### Services

#### 0.3%
Corebridge

Financial,

Inc.

,

Senior

Note

,

3.85 %

,

4/05/29

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

21,000

20,670

#### Food

#### Products

#### 1.4%
a

JBS

USA

Lux

SARL

/

JBS

USA

Food

Co.

/

JBS

USA

Foods

Group,

Inc.

,

Senior

Bond

,

144A,

5.95 %

,

4/20/35

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

14,000

14,735

Kellanova

,

Senior

Bond

,

2.1 %

,

6/01/30

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

22,000

20,160

Senior

Bond

,

4.5 %

,

4/01/46

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

19,000

16,751

Senior

Bond

,

5.75 %

,

5/16/54

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

8,000

8,029

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Food

#### Products
(continued)

Kellanova,

(continued)

B

,

Senior

Bond

,

7.45 %

,

4/01/31

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

$

8,000

$

9,159

Kraft

Heinz

Foods

Co.

,

Senior

Bond

,

%

,

6/04/42

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

5,000

4,591

a

Mars,

Inc.

,

Senior

Note

,

144A,

5.2 %

,

3/01/35

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

16,000

16,451

Pilgrim's

Pride

Corp.

,

Senior

Bond

,

6.25 %

,

7/01/33

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

19,000

20,335

Senior

Note

,

3.5 %

,

3/01/32

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

8,000

7,397

117,608

#### Ground

#### Transportation

#### 0.1%
a

Penske

Truck

Leasing

Co.

LP

/

PTL

Finance

Corp.

,

Senior

Note

,

144A,

4.4 %

,

7/01/27

12,000

12,044

#### Health

#### Care

#### Providers

#### &

#### Services

#### 1.2%
Centene

Corp.

,

Senior

Note

,

2.625 %

,

8/01/31

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

12,000

10,330

CVS

Health

Corp.

,

Senior

Bond

,

4.78 %

,

3/25/38

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

22,000

20,776

HCA,

Inc.

,

Senior

Note

,

3.625 %

,

3/15/32

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

33,000

31,209

UnitedHealth

Group,

Inc.

,

Senior

Bond

,

5.8 %

,

3/15/36

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

12,000

12,829

Senior

Note

,

5.3 %

,

2/15/30

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

8,000

8,343

Universal

Health

Services,

Inc.

,

Senior

Secured

Note

,

4.625 %

,

10/15/29

..........

12,000

12,067

95,554

#### Hotels,

#### Restaurants

#### &

#### Leisure

#### 0.6%
a

Carnival

Corp.

,

Senior

Secured

Note

,

144A,

%

,

8/01/28

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

21,000

20,701

Hyatt

Hotels

Corp.

,

Senior

Note

,

5.25 %

,

6/30/29

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

28,000

28,830

49,531

#### Household

#### Durables

#### 0.4%
DR

Horton,

Inc.

,

Senior

Bond

,

%

,

10/15/34

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

9,000

9,107

Senior

Bond

,

5.5 %

,

10/15/35

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

14,000

14,585

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

4.35 %

,

2/15/28

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

12,000

12,050

35,742

#### Independent

#### Power

#### and

#### Renewable

#### Electricity

#### Producers

#### 0.5%
Constellation

Energy

Generation

LLC

,

Senior

Bond

,

6.125 %

,

1/15/34

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

8,000

8,677

Senior

Bond

,

6.5 %

,

10/01/53

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

11,000

12,002

Senior

Note

,

5.6 %

,

3/01/28

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

16,000

16,515

37,194

#### Industrial

#### REITs

#### 0.1%
Prologis

LP

,

Senior

Bond

,

%

,

3/15/34

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

12,000

12,242

#### Insurance

#### 1.1%
Arthur

J

Gallagher

&

Co.

,

Senior

Note

,

4.85 %

,

12/15/29

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

20,000

20,479

a

Athene

Global

Funding

,

Secured

Note

,

144A,

5.322 %

,

11/13/31

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

24,000

24,359

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond

,

4.3 %

,

5/15/43

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

7,000

6,230

Brown

&

Brown,

Inc.

,

Senior

Bond

,

2.375 %

,

3/15/31

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

32,000

28,719

Fairfax

Financial

Holdings

Ltd.

,

Senior

Note

,

4.85 %

,

4/17/28

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

12,000

12,172

91,959

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Interactive

#### Media

#### &

#### Services

#### 0.2%
Meta

Platforms,

Inc.

,

Senior

Bond

,

5.4 %

,

8/15/54

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

$

17,000

$

15,830

#### IT

#### Services

#### 0.2%
a

Gartner,

Inc.

,

Senior

Note

,

144A,

3.625 %

,

6/15/29

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

13,000

12,547

#### Leisure

#### Products

#### 0.1%
Brunswick

Corp.

,

Senior

Bond

,

2.4 %

,

8/18/31

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

14,000

12,268

#### Media

#### 0.8%
Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

Corp.

,

Senior

Secured

Bond

,

3.5 %

,

6/01/41

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

22,000

15,668

Senior

Secured

Note

,

2.25 %

,

1/15/29

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

22,000

20,599

Paramount

Global

,

Senior

Bond

,

4.2 %

,

6/01/29

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

7,000

6,822

Senior

Bond

,

4.2 %

,

5/19/32

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

8,000

7,231

Time

Warner

Cable

Enterprises

LLC

,

Senior

Secured

Bond

,

8.375 %

,

7/15/33

......

14,000

16,182

66,502

#### Metals

#### &

#### Mining

#### 0.1%
a

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5 %

,

9/01/30

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

13,000

11,923

#### Multi-Utilities

#### 0.7%
DTE

Energy

Co.

,

Senior

Bond

,

5.85 %

,

6/01/34

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

12,000

12,803

Senior

Note

,

4.95 %

,

7/01/27

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

8,000

8,109

NiSource,

Inc.

,

Senior

Note

,

5.2 %

,

7/01/29

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

12,000

12,377

Southern

Co.

Gas

Capital

Corp.

,

Senior

Bond

,

5.15 %

,

9/15/32

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

16,000

16,455

Senior

Bond

,

4.95 %

,

9/15/34

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

7,000

7,038

56,782

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 2.0%
Cheniere

Energy

Partners

LP

,

Senior

Bond

,

3.25 %

,

1/31/32

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

8,000

7,372

Senior

Note

,

4.5 %

,

10/01/29

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

16,000

16,039

a

Columbia

Pipelines

Operating

Co.

LLC

,

Senior

Note

,

144A,

5.927 %

,

8/15/30

.......

11,000

11,653

a

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

5.8 %

,

12/15/34

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

12,000

12,460

Eastern

Energy

Gas

Holdings

LLC

,

Senior

Bond

,

5.8 %

,

1/15/35

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

16,000

16,905

Senior

Bond

,

5.65 %

,

10/15/54

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

12,000

11,619

El

Paso

Natural

Gas

Co.

LLC

,

Senior

Bond

,

8.375 %

,

6/15/32

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

20,000

24,062

Energy

Transfer

LP

,

Senior

Bond

,

6.5 %

,

2/01/42

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

8,000

8,450

Senior

Note

,

5.2 %

,

4/01/30

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

12,000

12,369

ONEOK,

Inc.

,

Senior

Note

,

4.75 %

,

10/15/31

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

20,000

20,115

Targa

Resources

Partners

LP

/

Targa

Resources

Partners

Finance

Corp.

,

Senior

Bond

,

4.875 %

,

2/01/31

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

12,000

12,076

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

5.6 %

,

3/15/35

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

12,000

12,508

165,628

#### Paper

#### &

#### Forest

#### Products

#### 0.5%
a

Georgia-Pacific

LLC

,

Senior

Note

,

144A,

4.95 %

,

6/30/32

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

40,000

41,182

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Passenger

#### Airlines

#### 0.1%
a

AS

Mileage

Plan

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.021 %

,

10/20/29

..........

$

12,000

$

12,104

#### Personal

#### Care

#### Products

#### 0.4%
Kenvue,

Inc.

,

Senior

Note

,

4.85 %

,

5/22/32

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

30,000

30,728

#### Pharmaceuticals

#### 0.6%
Royalty

Pharma

plc

,

Senior

Bond

,

5.4 %

,

9/02/34

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

12,000

12,301

Senior

Note

,

5.15 %

,

9/02/29

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

12,000

12,339

Zoetis,

Inc.

,

Senior

Bond

,

%

,

5/15/30

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

23,000

21,054

45,694

#### Professional

#### Services

#### 0.2%
Paychex,

Inc.

,

Senior

Note

,

5.1 %

,

4/15/30

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

12,000

12,360

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 0.9%
Analog

Devices,

Inc.

,

Senior

Note

,

5.05 %

,

4/01/34

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

12,000

12,405

a

Broadcom,

Inc.

,

Senior

Bond

,

144A,

4.926 %

,

5/15/37

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

42,000

41,472

Marvell

Technology,

Inc.

,

Senior

Note

,

5.75 %

,

2/15/29

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

8,000

8,345

Senior

Note

,

5.95 %

,

9/15/33

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

8,000

8,558

70,780

#### Software

#### 0.7%
Oracle

Corp.

,

Senior

Bond

,

3.65 %

,

3/25/41

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

24,000

17,523

ServiceNow,

Inc.

,

Senior

Bond

,

1.4 %

,

9/01/30

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

23,000

20,275

Synopsys,

Inc.

,

Senior

Bond

,

5.15 %

,

4/01/35

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

20,000

20,334

58,132

#### Specialized

#### REITs

#### 1.5%
American

Tower

Corp.

,

Senior

Bond

,

3.125 %

,

1/15/27

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

27,000

26,756

Senior

Bond

,

2.7 %

,

4/15/31

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

31,000

28,481

Crown

Castle,

Inc.

,

Senior

Bond

,

3.65 %

,

9/01/27

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

12,000

11,914

Senior

Bond

,

4.75 %

,

5/15/47

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

6,000

5,216

Senior

Note

,

4.9 %

,

9/01/29

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

8,000

8,136

EPR

Properties

,

Senior

Bond

,

4.5 %

,

6/01/27

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

20,000

20,041

Equinix,

Inc.

,

Senior

Bond

,

3.2 %

,

11/18/29

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

20,000

19,209

119,753

#### Specialty

#### Retail

#### 0.2%
Dick's

Sporting

Goods,

Inc.

,

Senior

Bond

,

3.15 %

,

1/15/32

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

14,000

12,875

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 0.3%
Hewlett

Packard

Enterprise

Co.

,

Senior

Note

,

4.55 %

,

10/15/29

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

27,000

27,162

#### Textiles,

#### Apparel

#### &

#### Luxury

#### Goods

#### 0.3%
Tapestry,

Inc.

,

Senior

Bond

,

5.5 %

,

3/11/35

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

8,000

8,184

Senior

Note

,

5.1 %

,

3/11/30

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

20,000

20,562

28,746

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Tobacco

#### 0.6%
Philip

Morris

International,

Inc.

,

Senior

Note

,

5.125 %

,

2/15/30

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

$

20,000

$

20,681

Senior

Note

,

4.75 %

,

11/01/31

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

30,000

30,648

51,329

#### Trading

#### Companies

#### &

#### Distributors

#### 0.5%
Air

Lease

Corp.

,

Senior

Bond

,

3.25 %

,

10/01/29

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

26,000

24,855

a

Aviation

Capital

Group

LLC

,

Senior

Note

,

144A,

5.125 %

,

4/10/30

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

20,000

20,316

45,171

#### Wireless

#### Telecommunication

#### Services

#### 0.7%
Rogers

Communications,

Inc.

,

Senior

Note

,

%

,

2/15/29

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

16,000

16,310

Senior

Note

,

3.8 %

,

3/15/32

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

8,000

7,540

T-Mobile

USA,

Inc.

,

Senior

Bond

,

5.05 %

,

7/15/33

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

8,000

8,166

Senior

Note

,

3.75 %

,

4/15/27

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

24,000

23,932

55,948

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $

#### 2,729,985

####)
.......................................

#### 2,785,270

#### Foreign

#### Government

#### and

#### Agency

#### Securities

#### 0.2%
a

Electricite

de

France

SA

,

Senior

Bond

,

144A,

4.75 %

,

10/13/35

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

13,000

12,845

#### Total

#### Foreign

#### Government

#### and

#### Agency

#### Securities

#### (Cost

#### $

#### 12,297

####)
.................

#### 12,845

#### U.S.

#### Government

#### and

#### Agency

#### Securities

#### 8.6%
U.S.

Treasury

Bonds

,

%,

11/15/45

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

10,000

7,644

1.25 %,

5/15/50

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

80,000

38,322

4.75 %,

5/15/55

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

100,000

98,289

4.625 %,

11/15/55

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

90,000

86,724

U.S.

Treasury

Notes

,

0.5 %,

6/30/27

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

130,000

124,414

4.25 %,

2/15/28

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

95,000

96,466

0.625 %,

5/15/30

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

180,000

157,996

4.25 %,

5/15/35

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

100,000

100,851

#### Total

#### U.S.

#### Government

#### and

#### Agency

#### Securities

#### (Cost

#### $

#### 712,966

####)
....................

#### 710,706

#### Commercial

#### Mortgage-Backed

#### Securities

#### 2.7%

#### Financial

#### Services

#### 2.7%
c

BANK5

Trust

,

2025-5YR17

,

AS

,

FRN

,

5.626 %

,

11/15/58

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

10,000

10,322

2025-5YR18

,

AS

,

FRN

,

5.466 %

,

12/15/58

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

12,000

12,344

Barclays

Commercial

Mortgage

Trust

,

2019-C3

,

A2

,

3.438 %

,

5/15/52

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

3,421

3,380

c

BBCMS

Mortgage

Trust

,

2023-C21

,

A3

,

FRN

,

6.296 %

,

9/15/56

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

10,000

10,681

2025-5C37

,

AS

,

FRN

,

5.382 %

,

9/15/58

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

12,000

12,259

Benchmark

Mortgage

Trust

,

2020-B17

,

A2

,

2.211 %

,

3/15/53

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

16,568

15,706

2019-B13

,

A2

,

2.889 %

,

8/15/57

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

26,519

25,655

2019-B14

,

A2

,

2.915 %

,

12/15/62

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

6,174

5,991

c

2025-V17

,

AM

,

FRN

,

5.425 %

,

9/15/58

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

10,000

10,233

c,d

2025-V17

,

XA

,

IO,

FRN

,

1.511 %

,

9/15/58

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

70,000

4,316

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Commercial

#### Mortgage-Backed

#### Securities
(continued)

#### Financial

#### Services
(continued)

BMO

Mortgage

Trust

,

c

2024-5C8

,

AS

,

FRN

,

5.94 %

,

12/15/57

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

$

10,000

$

10,399

2025-5C11

,

AS

,

5.938 %

,

7/15/58

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

10,000

10,415

Cantor

Commercial

Real

Estate

Lending

LP

,

2019-CF3

,

A2

,

2.942 %

,

1/15/53

.......

6,459

6,218

Citigroup

Commercial

Mortgage

Trust

,

2020-GC46

,

A2

,

2.708 %

,

2/15/53

..........

6,208

5,971

CSAIL

Commercial

Mortgage

Trust

,

2017-CX10

,

A3

,

3.398 %

,

11/15/50

...........

6,291

6,281

GS

Mortgage

Securities

Trust

,

2019-GC42

,

A2

,

2.933 %

,

9/10/52

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

15,800

15,422

c

2014-GC24

,

AS

,

FRN

,

4.162 %

,

9/10/47

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

8,097

7,920

JPMBB

Commercial

Mortgage

Securities

Trust

,

2014-C25

,

AS

,

4.065 %

,

11/15/47

...

10,000

9,733

JPMCC

Commercial

Mortgage

Securities

Trust

,

2019-COR5

,

A2

,

3.15 %

,

6/13/52

....

5,793

5,756

c

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

,

2013-C9

,

B

,

FRN

,

3.708 %

,

5/15/46

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

12,256

11,943

2013-C10

,

B

,

FRN

,

3.952 %

,

7/15/46

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

9,216

8,802

Wells

Fargo

Commercial

Mortgage

Trust

,

2016-LC24

,

AS

,

3.367 %

,

10/15/49

.......

15,000

14,706

224,453

a

a

a

a

a

#### Total

#### Commercial

#### Mortgage-Backed

#### Securities

#### (Cost

#### $

#### 224,205

####)
...................

#### 224,453

#### Mortgage-Backed

#### Securities

#### 49.5%

#### Federal

#### National

#### Mortgage

#### Association
(FNMA)

#### Fixed

#### Rate

#### 35.1%
FNMA,

Year

,

%,

5/01/52

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

1,501,754

1,218,803

FNMA,

Year

,

4.5 %,

7/01/53

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

784,484

768,498

FNMA,

Year

,

5.5 %,

12/01/54

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

886,791

899,872

2,887,173

#### Government

#### National

#### Mortgage

#### Association
(GNMA)

#### Fixed

#### Rate

#### 14.4%
GNMA

II,

Single-family,

Year

,

%,

2/20/52

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

365,650

303,177

GNMA

II,

Single-family,

Year

,

4.5 %,

10/20/52

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

550,435

540,431

GNMA

II,

Single-family,

Year

,

%,

6/20/55

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

332,901

339,601

1,183,209

#### Total

#### Mortgage-Backed

#### Securities

#### (Cost

#### $

#### 3,960,693

####)
.............................

#### 4,070,382

#### Residential

#### Mortgage-Backed

#### Securities

#### 3.1%

#### Financial

#### Services

#### 3.1%
a

Cross

Mortgage

Trust

,

2024-H1

,

A1

,

144A,

6.085 %

,

12/25/68

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

69,871

70,475

a

J.P.

Morgan

Mortgage

Trust

,

2024-VIS2

,

A1

,

144A,

5.853 %

,

11/25/64

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

41,824

42,340

a

OBX

Trust

,

2023-NQM7

,

A1

,

144A,

6.844 %

,

4/25/63

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

54,018

54,537

a

,e

Radian

Mortgage

Capital

Trust

,

2025-J3

,

A25

,

144A,

FRN

,

5.374 %

,

(30-day

SOFR

Average

+

1.5 %),

12/25/55

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

89,565

89,972

257,324

a

a

a

a

a

#### Total

#### Residential

#### Mortgage-Backed

#### Securities

#### (Cost

#### $

#### 256,865

####)
....................

#### 257,324

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 7,897,011

####)
.................................

#### 8,060,980

#### a
a

a

a

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Short

#### Term

#### Investments

#### 1.8%
a

a

#### Shares
a

#### Value
a

#### Money

#### Market

#### Funds

#### 1.8%
f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund

,

3.681 %

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

151,650

$

151,650

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $

#### 151,650

####)
.....................................

#### 151,650

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 151,650

####)
..................................

#### 151,650

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 8,048,661

####)
99.7 #### %
.....................................

#### $8,212,630

#### Other

#### Assets,

#### less

#### Liabilities
0.3 #### %
.............................................

#### 18,345

#### Net

#### Assets

#### 100.0%

#### ...........................................................

#### $8,230,975
a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$742,575,

representing

9.0%

of

net

assets.

b

Perpetual

security

with

no

stated

maturity

date.

c

Adjustable

rate

security

with

an

interest

rate

that

is

not

based

on

a

published

reference

index

and

spread.

The

rate

is

based

on

the

structure

of

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

at

period

end.

d

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.

e

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

f

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

At

December

31,

2025

,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

(b).

#### Futures

#### Contracts

#### Description

#### Type

#### Number

#### of

#### Contracts

#### Notional

#### Amount

#### \*

#### Expiration

#### Date

#### Value/

#### Unrealized

#### Appreciation
(Depreciation)

#### Interest

#### rate

#### contracts
U.S.

Treasury

Year

Ultra

Notes

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

Long

$

575,078

3/20/26

$

(4,960)

U.S.

Treasury

Year

Notes

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

Long

417,578

3/31/26

(139)

U.S.

Treasury

Year

Notes

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

Long

437,219

3/31/26

(1,443)

Total

Futures

Contracts

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

$(6,542)

\*

As

of

period

end.

See

Note 7 regarding

other

derivative

information.

See

Abbreviations

on

.

Franklin

Strategic

Series

Financial

Highlights

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### a

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

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

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c

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

0.27 Net

realized

and

unrealized

gains

(losses)

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

0.22 Total

from

investment

operations

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

0.49 Less

distributions

from:

Net

investment

income

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

(0.28)

Net

asset

value,

end

of

year

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

$10.21

Total

return

d

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

4.95%

#### Ratios

#### to

#### average

#### net

#### assets

#### e
Expenses

before

waiver

and

payments

by

affiliates

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

2.48%

Expenses

net

of

waiver

and

payments

by

affiliates

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

—%

Net

investment

income

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

5.14%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

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

$8,235

Portfolio

turnover

rate

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

8.31%

a

For

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025. b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

Franklin

Strategic

Series

Schedule

of

Investments,

December

31,

2025

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds

#### 60.2%

#### Aerospace

#### &

#### Defense

#### 2.7%
ATI,

Inc.

,

Senior

Note

,

7.25 %

,

8/15/30

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

$

50,000

$

52,854

a

Axon

Enterprise,

Inc.

,

Senior

Note

,

144A,

6.125 %

,

3/15/30

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

25,000

25,871

Boeing

Co.

(The)

,

Senior

Bond,

2.95%,

2/01/30

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

9,000

8,531

Senior

Bond,

6.125%,

2/15/33

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

13,000

14,007

Senior

Bond,

6.875%,

3/15/39

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

10,000

11,285

Senior

Bond,

3.375%,

6/15/46

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

13,000

9,242

Senior

Bond,

3.9%,

5/01/49

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

13,000

9,723

Senior

Bond,

6.858%,

5/01/54

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

8,000

8,991

Senior

Note,

2.196%,

2/04/26

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

22,000

21,959

a

Bombardier,

Inc.

,

Senior

Note

,

144A,

%

,

6/01/32

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

25,000

26,447

Howmet

Aerospace,

Inc.

,

Senior

Bond,

6.75%,

1/15/28

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

9,000

9,477

Senior

Bond,

5.95%,

2/01/37

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

13,000

14,070

Senior

Note,

3%,

1/15/29

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

8,000

7,763

220,220

#### Automobiles

#### 0.6%
a

Hyundai

Capital

America

,

Senior

Note

,

144A,

6.5 %

,

1/16/29

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

43,000

45,568

#### Banks

#### 4.3%
Bank

of

America

Corp.

,

Senior

Bond,

5.468%

to

1/22/34,

FRN

thereafter,

1/23/35

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

9,000

9,378

Senior

Note,

2.551%

to

2/03/27,

FRN

thereafter,

2/04/28

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

13,000

12,791

Sub.

Bond,

5.425%

to

8/14/34,

FRN

thereafter,

8/15/35

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

17,000

17,392

Sub.

Bond,

3.846%

to

3/07/32,

FRN

thereafter,

3/08/37

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

39,000

36,738

Citigroup,

Inc.

,

Sub.

Bond,

4.45%,

9/29/27

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

35,000

35,237

Sub.

Bond,

6.174%

to

5/24/33,

FRN

thereafter,

5/25/34

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

9,000

9,564

Fifth

Third

Bancorp

,

Senior

Note

,

6.339%

to

7/26/28,

FRN

thereafter

,

7/27/29

......

13,000

13,694

JPMorgan

Chase

&

Co.

,

b

KK,

Junior

Sub.

Bond,

3.65%

to

5/31/26,

FRN

thereafter,

Perpetual

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

8,000

7,960

Senior

Bond,

3.782%

to

1/31/27,

FRN

thereafter,

2/01/28

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

34,000

33,932

Senior

Bond,

5.502%

to

1/23/35,

FRN

thereafter,

1/24/36

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

9,000

9,412

Sub.

Bond,

5.717%

to

9/13/32,

FRN

thereafter,

9/14/33

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

17,000

17,978

PNC

Financial

Services

Group,

Inc.

(The)

,

Sub.

Bond

,

4.626%

to

6/05/32,

FRN

thereafter

,

6/06/33

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

31,000

30,767

Royal

Bank

of

Canada

,

Senior

Note

,

5.2 %

,

8/01/28

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

22,000

22,686

Toronto-Dominion

Bank

(The)

,

Senior

Note

,

4.108 %

,

6/08/27

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

23,000

23,078

US

Bancorp

,

Sub.

Bond

,

2.491%

to

11/02/31,

FRN

thereafter

,

11/03/36

...........

16,000

13,974

Wells

Fargo

&

Co.

,

b

BB,

Junior

Sub.

Bond,

3.9%

to

3/14/26,

FRN

thereafter,

Perpetual

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

14,000

13,965

Senior

Bond,

2.879%

to

10/29/29,

FRN

thereafter,

10/30/30

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

48,000

45,678

354,224

#### Biotechnology

#### 0.9%
AbbVie,

Inc.

,

Senior

Bond

,

5.05 %

,

3/15/34

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

45,000

46,261

Amgen,

Inc.

,

Senior

Bond,

5.65%,

3/02/53

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

8,000

7,839

Senior

Note,

5.25%,

3/02/30

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

9,000

9,346

a

CSL

Finance

plc

,

Senior

Bond

,

144A,

4.625 %

,

4/27/42

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

15,000

13,605

77,051

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Building

#### Products

#### 0.6%
a

Quikrete

Holdings,

Inc.

,

Senior

Note

,

144A,

6.75 %

,

3/01/33

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

$

50,000

$

52,249

#### Capital

#### Markets

#### 3.1%
Ares

Capital

Corp.

,

Senior

Note,

3.875%,

1/15/26

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

9,000

8,999

Senior

Note,

7%,

1/15/27

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

9,000

9,226

Goldman

Sachs

Group,

Inc.

(The)

,

Senior

Bond

,

4.223%

to

4/30/28,

FRN

thereafter

,

5/01/29

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

23,000

23,067

Intercontinental

Exchange,

Inc.

,

Senior

Bond

,

1.85 %

,

9/15/32

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

33,000

28,162

a

Jane

Street

Group

/

JSG

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

6.125 %

,

11/01/32

50,000

50,911

a

KKR

Group

Finance

Co.

VI

LLC

,

Senior

Bond

,

144A,

3.75 %

,

7/01/29

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

14,000

13,719

LPL

Holdings,

Inc.

,

Senior

Note

,

5.2 %

,

3/15/30

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

22,000

22,524

Morgan

Stanley

,

Senior

Note,

5.123%

to

1/31/28,

FRN

thereafter,

2/01/29

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

22,000

22,461

Senior

Note,

5.23%

to

1/14/30,

FRN

thereafter,

1/15/31

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

18,000

18,571

Sub.

Bond,

5.942%

to

2/06/34,

FRN

thereafter,

2/07/39

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

9,000

9,463

a

MSCI,

Inc.

,

Senior

Bond

,

144A,

3.625 %

,

9/01/30

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

24,000

22,943

S&P

Global,

Inc.

,

Senior

Bond

,

2.5 %

,

12/01/29

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

24,000

22,637

252,683

#### Chemicals

#### 0.8%
a

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875 %

,

9/01/28

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

25,000

24,453

FMC

Corp.

,

Senior

Bond

,

3.45 %

,

10/01/29

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

15,000

13,313

a

Rain

Carbon,

Inc.

,

Senior

Secured

Note

,

144A,

12.25 %

,

9/01/29

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

25,000

26,065

63,831

#### Commercial

#### Services

#### &

#### Supplies

#### 1.0%
Republic

Services,

Inc.

,

Senior

Note

,

%

,

11/15/29

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

22,000

22,773

Waste

Connections,

Inc.

,

Senior

Bond,

4.25%,

12/01/28

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

9,000

9,065

Senior

Bond,

5%,

3/01/34

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

18,000

18,400

Waste

Management,

Inc.

,

Senior

Note

,

4.875 %

,

2/15/29

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

9,000

9,235

a

Waste

Pro

USA,

Inc.

,

Senior

Note

,

144A,

%

,

2/01/33

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

25,000

25,795

85,268

#### Communications

#### Equipment

#### 0.6%
Cisco

Systems,

Inc.

,

Senior

Bond

,

5.05 %

,

2/26/34

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

22,000

22,646

Motorola

Solutions,

Inc.

,

Senior

Bond,

2.3%,

11/15/30

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

8,000

7,274

Senior

Note,

4.85%,

8/15/30

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

9,000

9,186

Senior

Note,

5.2%,

8/15/32

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

13,000

13,411

52,517

#### Construction

#### &

#### Engineering

#### 0.3%
a

Arcosa

,

Inc.

,

Senior

Note

,

144A,

4.375 %

,

4/15/29

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

25,000

24,630

#### Consumer

#### Finance

#### 1.6%
Ally

Financial,

Inc.

,

Senior

Bond

,

%

,

11/01/31

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

13,000

14,774

Capital

One

Financial

Corp.

,

Senior

Note

,

7.624%

to

10/29/30,

FRN

thereafter

,

10/30/31

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

20,000

22,610

a

FirstCash,

Inc.

,

Senior

Note

,

144A,

6.875 %

,

3/01/32

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

50,000

52,073

General

Motors

Financial

Co.,

Inc.

,

Senior

Note

,

4.9 %

,

10/06/29

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

18,000

18,290

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Consumer

#### Finance
(continued)

a

Macquarie

Airfinance

Holdings

Ltd.

,

Senior

Note

,

144A,

5.15 %

,

3/17/30

...........

$

27,000

$

27,391

135,138

#### Consumer

#### Staples

#### Distribution

#### &

#### Retail

#### 0.7%
a

7-Eleven,

Inc.

,

Senior

Bond,

144A,

1.8%,

2/10/31

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

2,000

1,753

Senior

Note,

144A,

1.3%,

2/10/28

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

13,000

12,281

a

Alimentation

Couche-Tard,

Inc.

,

Senior

Bond

,

144A,

2.95 %

,

1/25/30

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

15,000

14,220

a

US

Foods,

Inc.

,

Senior

Note

,

144A,

5.75 %

,

4/15/33

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

25,000

25,488

53,742

#### Containers

#### &

#### Packaging

#### 0.9%
Berry

Global,

Inc.

,

Senior

Secured

Note

,

1.65 %

,

1/15/27

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

12,000

11,688

a

Clydesdale

Acquisition

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

6.75 %

,

4/15/32

..

50,000

51,447

WestRock

MWV

LLC

,

Senior

Bond

,

7.95 %

,

2/15/31

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

13,000

14,895

78,030

#### Distributors

#### 0.3%
a

Gates

Corp.

,

Senior

Note

,

144A,

6.875 %

,

7/01/29

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

25,000

25,993

#### Diversified

#### REITs

#### 0.8%
a

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75 %

,

12/15/27

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

25,000

24,362

GLP

Capital

LP

/

GLP

Financing

II,

Inc.

,

Senior

Bond

,

3.25 %

,

1/15/32

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

13,000

11,796

VICI

Properties

LP

,

Senior

Bond

,

5.75 %

,

4/01/34

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

9,000

9,293

a

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.875 %

,

2/15/29

......

23,000

22,584

68,035

#### Diversified

#### Telecommunication

#### Services

#### 1.8%
AT&T,

Inc.

,

Senior

Bond,

2.25%,

2/01/32

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

13,000

11,408

Senior

Bond,

2.55%,

12/01/33

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

17,000

14,514

Senior

Bond,

4.75%,

5/15/46

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

8,000

6,950

a

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

4.25 %

,

2/01/31

50,000

45,973

Sprint

Capital

Corp.

,

Senior

Bond

,

6.875 %

,

11/15/28

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

50,000

53,674

Verizon

Communications,

Inc.

,

Senior

Note

,

2.355 %

,

3/15/32

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

16,000

14,104

146,623

#### Electric

#### Utilities

#### 4.4%
a

American

Transmission

Systems,

Inc.

,

Senior

Bond

,

144A,

2.65 %

,

1/15/32

........

26,000

23,445

Appalachian

Power

Co.

,

L

,

Senior

Bond

,

5.8 %

,

10/01/35

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

13,000

13,804

Commonwealth

Edison

Co.

,

Senior

Bond

,

5.875 %

,

2/01/33

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

9,000

9,608

Duke

Energy

Carolinas

LLC

,

Senior

Bond

,

4.25 %

,

12/15/41

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

8,000

7,040

Duke

Energy

Corp.

,

Senior

Bond,

5.45%,

6/15/34

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

13,000

13,563

Senior

Note,

4.85%,

1/05/29

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

9,000

9,188

Exelon

Corp.

,

Senior

Bond,

5.625%,

6/15/35

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

13,000

13,616

Senior

Note,

5.15%,

3/15/29

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

13,000

13,371

Georgia

Power

Co.

,

Senior

Bond

,

5.25 %

,

3/15/34

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

44,000

45,441

NextEra

Energy

Capital

Holdings,

Inc.

,

Senior

Bond,

5.9%,

3/15/55

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

9,000

9,106

Senior

Note,

5.3%,

3/15/32

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

22,000

22,927

a

NRG

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

2.45 %

,

12/02/27

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

24,000

23,214

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Electric

#### Utilities
(continued)

Pacific

Gas

and

Electric

Co.

,

Senior

Bond,

5.9%,

6/15/32

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

$

9,000

$

9,444

Senior

Bond,

6.75%,

1/15/53

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

5,000

5,345

Virginia

Electric

and

Power

Co.

,

Senior

Bond

,

5.05 %

,

8/15/34

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

34,000

34,501

a

Vistra

Operations

Co.

LLC

,

Senior

Note,

144A,

6.875%,

4/15/32

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

50,000

52,694

Senior

Secured

Bond,

144A,

4.3%,

7/15/29

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

14,000

13,909

Senior

Secured

Bond,

144A,

6.95%,

10/15/33

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

12,000

13,409

Xcel

Energy,

Inc.

,

Senior

Bond

,

5.6 %

,

4/15/35

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

27,000

27,985

361,610

#### Energy

#### Equipment

#### &

#### Services

#### 0.6%
a

Kodiak

Gas

Services

LLC

,

Senior

Note

,

144A,

7.25 %

,

2/15/29

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

25,000

26,024

a

Transocean

Titan

Financing

Ltd.

,

Senior

Secured

Note

,

144A,

8.375 %

,

2/01/28

.....

20,238

20,683

46,707

#### Entertainment

#### 0.1%
Netflix,

Inc.

,

Senior

Bond

,

5.4 %

,

8/15/54

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

9,000

8,728

#### Financial

#### Services

#### 1.5%
Corebridge

Financial,

Inc.

,

Senior

Note

,

3.85 %

,

4/05/29

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

23,000

22,639

a

Jefferson

Capital

Holdings

LLC

,

Senior

Note

,

144A,

8.25 %

,

5/15/30

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

50,000

52,623

a

Rocket

Cos.,

Inc.

,

Senior

Note

,

144A,

6.375 %

,

8/01/33

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

50,000

52,194

127,456

#### Food

#### Products

#### 1.6%
a

JBS

USA

Lux

SARL

/

JBS

USA

Food

Co.

/

JBS

USA

Foods

Group,

Inc.

,

Senior

Bond

,

144A,

5.95 %

,

4/20/35

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

16,000

16,840

Kellanova

,

Senior

Bond,

2.1%,

6/01/30

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

25,000

22,909

Senior

Bond,

4.5%,

4/01/46

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

21,000

18,514

Senior

Bond,

5.75%,

5/16/54

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

9,000

9,032

B,

Senior

Bond,

7.45%,

4/01/31

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

9,000

10,305

Kraft

Heinz

Foods

Co.

,

Senior

Bond

,

%

,

6/04/42

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

5,000

4,591

a

Mars,

Inc.

,

Senior

Note

,

144A,

5.2 %

,

3/01/35

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

18,000

18,508

Pilgrim's

Pride

Corp.

,

Senior

Bond,

6.25%,

7/01/33

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

21,000

22,475

Senior

Note,

3.5%,

3/01/32

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

9,000

8,322

131,496

#### Ground

#### Transportation

#### 0.8%
a

Penske

Truck

Leasing

Co.

LP

/

PTL

Finance

Corp.

,

Senior

Note

,

144A,

4.4 %

,

7/01/27

14,000

14,051

a

Watco

Cos.

LLC

/

Watco

Finance

Corp.

,

Senior

Note

,

144A,

7.125 %

,

8/01/32

......

25,000

26,197

a

XPO,

Inc.

,

Senior

Note

,

144A,

7.125 %

,

2/01/32

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

25,000

26,387

66,635

#### Health

#### Care

#### Equipment

#### &

#### Supplies

#### 0.3%
a

Bausch

+

Lomb

Corp.

,

Senior

Secured

Note

,

144A,

8.375 %

,

10/01/28

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

25,000

26,125

#### Health

#### Care

#### Providers

#### &

#### Services

#### 1.9%
Centene

Corp.

,

Senior

Note

,

2.625 %

,

8/01/31

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

14,000

12,052

CVS

Health

Corp.

,

Senior

Bond

,

4.78 %

,

3/25/38

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

25,000

23,608

a

DaVita,

Inc.

,

Senior

Bond

,

144A,

3.75 %

,

2/15/31

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

50,000

46,294

HCA,

Inc.

,

Senior

Note

,

3.625 %

,

3/15/32

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

37,000

34,992

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Health

#### Care

#### Providers

#### &

#### Services
(continued)

UnitedHealth

Group,

Inc.

,

Senior

Bond,

5.8%,

3/15/36

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

$

13,000

$

13,898

Senior

Note,

5.3%,

2/15/30

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

9,000

9,386

Universal

Health

Services,

Inc.

,

Senior

Secured

Note

,

4.625 %

,

10/15/29

..........

14,000

14,078

154,308

#### Health

#### Care

#### Technology

#### 0.6%
a

IQVIA,

Inc.

,

Senior

Note

,

144A,

6.25 %

,

6/01/32

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

50,000

52,308

#### Hotel

#### &

#### Resort

#### REITs

#### 0.6%
a

RHP

Hotel

Properties

LP

/

RHP

Finance

Corp.

,

Senior

Note

,

144A,

6.5 %

,

6/15/33

...

25,000

26,089

a

XHR

LP

,

Senior

Note

,

144A,

6.625 %

,

5/15/30

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

25,000

25,834

51,923

#### Hotels,

#### Restaurants

#### &

#### Leisure

#### 2.2%
a

1011778

BC

ULC

/

New

Red

Finance,

Inc.

,

Secured

Bond

,

144A,

%

,

10/15/30

.....

25,000

23,838

a

Caesars

Entertainment,

Inc.

,

Senior

Note

,

144A,

%

,

10/15/32

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

50,000

48,660

a

Carnival

Corp.

,

Senior

Note,

144A,

5.75%,

3/15/30

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

25,000

25,732

Senior

Secured

Note,

144A,

4%,

8/01/28

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

23,000

22,672

a

Great

Canadian

Gaming

Corp.

/

Raptor

LLC

,

Senior

Secured

Note

,

144A,

8.75 %

,

11/15/29

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

25,000

25,271

Hyatt

Hotels

Corp.

,

Senior

Note

,

5.25 %

,

6/30/29

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

31,000

31,919

178,092

#### Household

#### Durables

#### 1.7%
DR

Horton,

Inc.

,

Senior

Bond,

5%,

10/15/34

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

10,000

10,119

Senior

Bond,

5.5%,

10/15/35

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

16,000

16,669

Newell

Brands,

Inc.

,

Senior

Note

,

6.625 %

,

5/15/32

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

50,000

48,577

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

4.35 %

,

2/15/28

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

14,000

14,058

a

Weekley

Homes

LLC

/

Weekley

Finance

Corp.

,

Senior

Note

,

144A,

4.875 %

,

9/15/28

.

50,000

49,349

138,772

#### Independent

#### Power

#### and

#### Renewable

#### Electricity

#### Producers

#### 1.1%
a

Clearway

Energy

Operating

LLC

,

Senior

Note

,

144A,

3.75 %

,

2/15/31

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

50,000

46,886

Constellation

Energy

Generation

LLC

,

Senior

Bond,

6.125%,

1/15/34

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

8,000

8,677

Senior

Bond,

6.5%,

10/01/53

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

13,000

14,184

Senior

Note,

5.6%,

3/01/28

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

17,000

17,547

87,294

#### Industrial

#### REITs

#### 0.2%
Prologis

LP

,

Senior

Bond

,

%

,

3/15/34

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

14,000

14,282

#### Insurance

#### 1.9%
a

Alliant

Holdings

Intermediate

LLC

/

Alliant

Holdings

Co-Issuer

,

Senior

Secured

Note

,

144A,

%

,

1/15/31

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

50,000

51,908

Arthur

J

Gallagher

&

Co.

,

Senior

Note

,

4.85 %

,

12/15/29

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

22,000

22,527

a

Athene

Global

Funding

,

Secured

Note

,

144A,

5.322 %

,

11/13/31

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

27,000

27,404

Berkshire

Hathaway

Finance

Corp.

,

Senior

Bond

,

4.3 %

,

5/15/43

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

8,000

7,120

Brown

&

Brown,

Inc.

,

Senior

Bond

,

2.375 %

,

3/15/31

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

36,000

32,310

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Insurance
(continued)

Fairfax

Financial

Holdings

Ltd.

,

Senior

Note

,

4.85 %

,

4/17/28

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

$

13,000

$

13,186

154,455

#### Interactive

#### Media

#### &

#### Services

#### 0.2%
Meta

Platforms,

Inc.

,

Senior

Bond

,

5.4 %

,

8/15/54

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

19,000

17,692

#### IT

#### Services

#### 1.6%
a

Cogent

Communications

Group

LLC

/

Cogent

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

6.5 %

,

7/01/32

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

75,000

70,234

a

Fortress

Intermediate

3,

Inc.

,

Senior

Secured

Note

,

144A,

7.5 %

,

6/01/31

..........

50,000

52,235

a

Gartner,

Inc.

,

Senior

Note

,

144A,

3.625 %

,

6/15/29

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

14,000

13,512

135,981

#### Leisure

#### Products

#### 0.2%
Brunswick

Corp.

,

Senior

Bond

,

2.4 %

,

8/18/31

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

16,000

14,020

#### Media

#### 1.2%
Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

Corp.

,

Senior

Secured

Bond,

3.5%,

6/01/41

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

25,000

17,804

Senior

Secured

Note,

2.25%,

1/15/29

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

24,000

22,472

Paramount

Global

,

Senior

Bond,

4.2%,

6/01/29

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

8,000

7,797

Senior

Bond,

4.2%,

5/19/32

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

9,000

8,135

a

Sinclair

Television

Group,

Inc.

,

Senior

Secured

Note

,

144A,

8.125 %

,

2/15/33

.......

25,000

26,128

Time

Warner

Cable

Enterprises

LLC

,

Senior

Secured

Bond

,

8.375 %

,

7/15/33

......

16,000

18,493

100,829

#### Metals

#### &

#### Mining

#### 0.2%
a

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5 %

,

9/01/30

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

15,000

13,758

#### Multi-Utilities

#### 0.8%
DTE

Energy

Co.

,

Senior

Bond,

5.85%,

6/01/34

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

13,000

13,870

Senior

Note,

4.95%,

7/01/27

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

9,000

9,123

NiSource,

Inc.

,

Senior

Note

,

5.2 %

,

7/01/29

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

13,000

13,408

Southern

Co.

Gas

Capital

Corp.

,

Senior

Bond,

5.15%,

9/15/32

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

18,000

18,512

Senior

Bond,

4.95%,

9/15/34

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

8,000

8,043

62,956

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels

#### 4.6%
Cheniere

Energy

Partners

LP

,

Senior

Bond,

3.25%,

1/31/32

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

9,000

8,294

Senior

Note,

4.5%,

10/01/29

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

17,000

17,041

a

Columbia

Pipelines

Operating

Co.

LLC

,

Senior

Note

,

144A,

5.927 %

,

8/15/30

.......

13,000

13,772

a

Crescent

Energy

Finance

LLC

,

Senior

Note

,

144A,

7.375 %

,

1/15/33

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

50,000

47,481

a

DT

Midstream,

Inc.

,

Senior

Bond

,

144A,

5.8 %

,

12/15/34

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

13,000

13,498

Eastern

Energy

Gas

Holdings

LLC

,

Senior

Bond,

5.8%,

1/15/35

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

17,000

17,962

Senior

Bond,

5.65%,

10/15/54

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

13,000

12,586

El

Paso

Natural

Gas

Co.

LLC

,

Senior

Bond

,

8.375 %

,

6/15/32

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

22,000

26,469

Energy

Transfer

LP

,

Senior

Bond,

6.5%,

2/01/42

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

9,000

9,506

Senior

Note,

5.2%,

4/01/30

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

13,000

13,400

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Oil,

#### Gas

#### &

#### Consumable

#### Fuels
(continued)

a

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond

,

144A,

6.25 %

,

4/15/32

......

$

50,000

$

47,244

a

Kinetik

Holdings

LP

,

Senior

Note

,

144A,

5.875 %

,

6/15/30

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

50,000

50,478

ONEOK,

Inc.

,

Senior

Note

,

4.75 %

,

10/15/31

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

23,000

23,132

Targa

Resources

Partners

LP

/

Targa

Resources

Partners

Finance

Corp.

,

Senior

Bond

,

4.875 %

,

2/01/31

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

14,000

14,089

a

Venture

Global

Plaquemines

LNG

LLC

,

Senior

Secured

Note

,

144A,

7.5 %

,

5/01/33

..

50,000

54,053

Williams

Cos.,

Inc.

(The)

,

Senior

Bond

,

5.6 %

,

3/15/35

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

13,000

13,550

382,555

#### Paper

#### &

#### Forest

#### Products

#### 0.6%
a

Georgia-Pacific

LLC

,

Senior

Note

,

144A,

4.95 %

,

6/30/32

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

45,000

46,330

#### Passenger

#### Airlines

#### 0.5%
a

AS

Mileage

Plan

IP

Ltd.

,

Senior

Secured

Note

,

144A,

5.021 %

,

10/20/29

..........

14,000

14,121

a

OneSky

Flight

LLC

,

Senior

Note

,

144A,

8.875 %

,

12/15/29

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

25,000

26,772

40,893

#### Personal

#### Care

#### Products

#### 0.4%
Kenvue,

Inc.

,

Senior

Note

,

4.85 %

,

5/22/32

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

34,000

34,825

#### Pharmaceuticals

#### 1.2%
a

Endo

Finance

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

8.5 %

,

4/15/31

..........

50,000

52,910

Royalty

Pharma

plc

,

Senior

Bond,

5.4%,

9/02/34

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

13,000

13,327

Senior

Note,

5.15%,

9/02/29

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

13,000

13,367

Zoetis,

Inc.

,

Senior

Bond

,

%

,

5/15/30

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

25,000

22,884

102,488

#### Professional

#### Services

#### 0.2%
Paychex,

Inc.

,

Senior

Note

,

5.1 %

,

4/15/30

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

13,000

13,390

#### Semiconductors

#### &

#### Semiconductor

#### Equipment

#### 1.0%
Analog

Devices,

Inc.

,

Senior

Note

,

5.05 %

,

4/01/34

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

13,000

13,439

a

Broadcom,

Inc.

,

Senior

Bond

,

144A,

4.926 %

,

5/15/37

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

47,000

46,409

Marvell

Technology,

Inc.

,

Senior

Note,

5.75%,

2/15/29

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

9,000

9,388

Senior

Note,

5.95%,

9/15/33

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

9,000

9,628

78,864

#### Software

#### 1.4%
a

Gen

Digital,

Inc.

,

Senior

Note

,

144A,

6.25 %

,

4/01/33

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

50,000

51,772

Oracle

Corp.

,

Senior

Bond

,

3.65 %

,

3/25/41

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

27,000

19,713

ServiceNow,

Inc.

,

Senior

Bond

,

1.4 %

,

9/01/30

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

26,000

22,919

Synopsys,

Inc.

,

Senior

Bond

,

5.15 %

,

4/01/35

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

22,000

22,368

116,772

#### Specialized

#### REITs

#### 1.6%
American

Tower

Corp.

,

Senior

Bond,

3.125%,

1/15/27

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

30,000

29,729

Senior

Bond,

2.7%,

4/15/31

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

34,000

31,237

Crown

Castle,

Inc.

,

Senior

Bond,

3.65%,

9/01/27

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

14,000

13,899

Senior

Bond,

4.75%,

5/15/47

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

6,000

5,216

Senior

Note,

4.9%,

9/01/29

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

9,000

9,153

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Corporate

#### Bonds
(continued)

#### Specialized

#### REITs
(continued)

EPR

Properties

,

Senior

Bond

,

4.5 %

,

6/01/27

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

$

23,000

$

23,048

Equinix,

Inc.

,

Senior

Bond

,

3.2 %

,

11/18/29

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

22,000

21,130

133,412

#### Specialty

#### Retail

#### 0.2%
Dick's

Sporting

Goods,

Inc.

,

Senior

Bond

,

3.15 %

,

1/15/32

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

15,000

13,794

#### Technology

#### Hardware,

#### Storage

#### &

#### Peripherals

#### 0.7%
Hewlett

Packard

Enterprise

Co.

,

Senior

Note

,

4.55 %

,

10/15/29

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

31,000

31,186

a

Seagate

Data

Storage

Technology

Pte.

Ltd.

,

Senior

Note

,

144A,

5.875 %

,

7/15/30

...

25,000

25,803

56,989

#### Textiles,

#### Apparel

#### &

#### Luxury

#### Goods

#### 0.4%
Tapestry,

Inc.

,

Senior

Bond,

5.5%,

3/11/35

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

9,000

9,207

Senior

Note,

5.1%,

3/11/30

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

22,000

22,618

31,825

#### Tobacco

#### 0.7%
Philip

Morris

International,

Inc.

,

Senior

Note,

5.125%,

2/15/30

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

22,000

22,749

Senior

Note,

4.75%,

11/01/31

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

34,000

34,734

57,483

#### Trading

#### Companies

#### &

#### Distributors

#### 1.2%
Air

Lease

Corp.

,

Senior

Bond

,

3.25 %

,

10/01/29

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

29,000

27,723

a

Aviation

Capital

Group

LLC

,

Senior

Note

,

144A,

5.125 %

,

4/10/30

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

22,000

22,347

a

EquipmentShare.com,

Inc.

,

Secured

Note

,

144A,

8.625 %

,

5/15/32

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

25,000

26,438

a

Herc

Holdings,

Inc.

,

Senior

Note

,

144A,

%

,

6/15/30

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

25,000

26,326

102,834

#### Wireless

#### Telecommunication

#### Services

#### 0.8%
Rogers

Communications,

Inc.

,

Senior

Note,

5%,

2/15/29

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

18,000

18,348

Senior

Note,

3.8%,

3/15/32

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

9,000

8,483

T-Mobile

USA,

Inc.

,

Senior

Bond,

5.05%,

7/15/33

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

9,000

9,187

Senior

Note,

3.75%,

4/15/27

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

27,000

26,923

62,941

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $4,872,584)

#### .......................................

#### 4,956,624

#### Foreign

#### Government

#### and

#### Agency

#### Securities

#### 0.2%
a

Electricite

de

France

SA,

Senior

Bond,

144A,

4.75%,

10/13/35

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

14,000

13,834

#### Total

#### Foreign

#### Government

#### and

#### Agency

#### Securities

#### (Cost

#### $13,243)

#### .................

#### 13,834

#### U.S.

#### Government

#### and

#### Agency

#### Securities

#### 4.9%
U.S.

Treasury

Bonds

,

3.125%,

8/15/44

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

100,000

79,180

1.25%,

5/15/50

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

190,000

91,014

4.75%,

5/15/55

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

85,000

83,546

U.S.

Treasury

Notes

,

4.25%,

5/15/35

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

55,000

55,469

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### U.S.

#### Government

#### and

#### Agency

#### Securities
(continued)

U.S.

Treasury

Notes,

(continued)

4%,

11/15/35

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

$

100,000

$

98,570

#### Total

#### U.S.

#### Government

#### and

#### Agency

#### Securities

#### (Cost

#### $414,613)

#### ....................

#### 407,779

#### Commercial

#### Mortgage-Backed

#### Securities

#### 2.6%

#### Financial

#### Services

#### 2.6%
c

BANK5

Trust

,

2025-5YR18

,

AS

,

FRN

,

5.466 %

,

12/15/58

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

12,000

12,344

c

BBCMS

Mortgage

Trust

,

2025-5C37

,

AS

,

FRN

,

5.382 %

,

9/15/58

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

12,000

12,259

Benchmark

Mortgage

Trust

,

2020-B17,

A2,

2.211%,

3/15/53

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

13,896

13,173

2019-B13,

A2,

2.889%,

8/15/57

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

17,237

16,676

c,d

2025-V17,

XA,

IO,

FRN,

1.511%,

9/15/58

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

61,000

3,761

a,c

BX

Trust

,

2025-ARIA

,

C

,

144A,

FRN

,

5.517 %

,

12/13/42

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

13,000

13,112

Cantor

Commercial

Real

Estate

Lending

LP

,

2019-CF3

,

A2

,

2.942 %

,

1/15/53

.......

7,750

7,461

c

Citigroup

Commercial

Mortgage

Trust

,

2015-GC33,

B,

FRN,

4.335%,

9/10/58

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

8,776

8,541

2014-GC21,

C,

FRN,

4.78%,

5/10/47

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

3,109

3,043

GS

Mortgage

Securities

Trust

,

2019-GC42,

A2,

2.933%,

9/10/52

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

19,069

18,613

c

2014-GC24,

AS,

FRN,

4.162%,

9/10/47

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

8,097

7,920

J.P.

Morgan

Chase

Commercial

Mortgage

Securities

Trust

,

2016-JP3

,

AS

,

3.144 %

,

8/15/49

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

13,000

12,722

JPMBB

Commercial

Mortgage

Securities

Trust

,

2014-C25

,

AS

,

4.065 %

,

11/15/47

...

17,000

16,546

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

,

2025-5C2,

AS,

5.384%,

11/15/58

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

15,000

15,377

c

2013-C9,

B,

FRN,

3.708%,

5/15/46

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

10,341

10,077

c

2013-C10,

B,

FRN,

3.952%,

7/15/46

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

11,981

11,443

c

2013-C10,

C,

FRN,

3.952%,

7/15/46

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

23,000

21,393

c

Morgan

Stanley

Capital

I

Trust

,

2018-H3

,

AS

,

FRN

,

4.429 %

,

7/15/51

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

10,000

9,923

214,384

a

a

a

a

a

#### Total

#### Commercial

#### Mortgage-Backed

#### Securities

#### (Cost

#### $212,839)

#### ...................

#### 214,384

#### Mortgage-Backed

#### Securities

#### 27.4%

#### Federal

#### National

#### Mortgage

#### Association
(FNMA)

#### Fixed

#### Rate

#### 23.9%
FNMA,

Year,

2%,

5/01/52

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

746,774

606,072

FNMA,

Year,

2.5%,

5/01/52

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

829,009

712,208

FNMA,

Year,

4.5%,

7/01/53

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

443,404

434,368

FNMA,

Year,

5.5%,

12/01/54

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

210,723

213,831

1,966,479

#### Government

#### National

#### Mortgage

#### Association
(GNMA)

#### Fixed

#### Rate

#### 3.5%
GNMA

II,

Single-family,

Year,

5.5%,

10/20/54

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

109,786

111,121

GNMA

II,

Single-family,

Year,

6%,

6/20/55

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

176,242

179,789

290,910

#### Total

#### Mortgage-Backed

#### Securities

#### (Cost

#### $2,182,594)

#### .............................

#### 2,257,389

#### Residential

#### Mortgage-Backed

#### Securities

#### 3.1%

#### Financial

#### Services

#### 3.1%
a

Cross

Mortgage

Trust

,

2024-H1

,

A1

,

144A,

6.085 %

,

12/25/68

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

69,871

70,475

a

J.P.

Morgan

Mortgage

Trust

,

2024-VIS2

,

A1

,

144A,

5.853 %

,

11/25/64

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

41,824

42,340

a

OBX

Trust

,

2023-NQM7

,

A1

,

144A,

6.844 %

,

4/25/63

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

54,018

54,537

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Principal

#### Amount
a

#### Value
a

a

#### a
a

#### Residential

#### Mortgage-Backed

#### Securities
(continued)

#### Financial

#### Services
(continued)

a,e

Radian

Mortgage

Capital

Trust

,

2025-J3

,

A25

,

144A,

FRN

,

5.374 %

,

(30-day

SOFR

Average

+

1.5 %),

12/25/55

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

$

88,678

$

89,081

256,433

a

a

a

a

a

#### Total

#### Residential

#### Mortgage-Backed

#### Securities

#### (Cost

#### $255,979)

#### ....................

#### 256,433

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $7,951,852)

#### .................................

#### 8,106,443

#### a
a

a

a

#### Short

#### Term

#### Investments

#### 1.2%

#### Shares
a

#### Money

#### Market

#### Funds

#### 1.2%
f,g

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

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

95,898

95,898

#### Total

#### Money

#### Market

#### Funds

#### (Cost

#### $95,898)

#### ......................................

#### 95,898

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $95,898)

#### ...................................

#### 95,898

#### a

#### Total

#### Investments

#### (Cost

#### $8,047,750)

#### 99.6%

#### .....................................

#### $8,202,341

#### Other

#### Assets,

#### less

#### Liabilities

#### 0.4%

#### .............................................

#### 32,746

#### Net

#### Assets

#### 100.0%

#### ...........................................................

#### $8,235,087
a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

December

31,

2025,

the

aggregate

value

of

these

securities

was

$2,559,369,

representing

31.1%

of

net

assets.

b

Perpetual

security

with

no

stated

maturity

date.

c

Adjustable

rate

security

with

an

interest

rate

that

is

not

based

on

a

published

reference

index

and

spread.

The

rate

is

based

on

the

structure

of

the

agreement

and

current

market

conditions.

The

coupon

rate

shown

represents

the

rate

at

period

end.

d

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.

e

The

coupon

rate

shown

represents

the

rate

inclusive

of

any

caps

or

floors,

if

applicable,

in

effect

at

period

end.

f

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

At

December

31,

2025,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(b).

At

December

31,

2025,

the

Fund

had

the

following credit

default

swap

contracts outstanding.

See

Note

1(b).

#### Futures

#### Contracts

#### Description

#### Type

#### Number

#### of

#### Contracts

#### Notional

#### Amount

#### \*

#### Expiration

#### Date

#### Value/

#### Unrealized

#### Appreciation
(Depreciation)

#### Interest

#### rate

#### contracts
U.S.

Treasury

Year

Ultra

Notes

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

Long

$

345,047

3/20/26

$

(2,746)

U.S.

Treasury

Year

Notes

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

Long

417,578

3/31/26

(139) U.S.

Treasury

Year

Notes

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

Long

327,914

3/31/26

(1,082)

Total

Futures

Contracts

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

$(3,967)

\*

As

of

period

end.

#### Credit

#### Default

#### Swap

#### Contracts

#### Description

#### Periodic

#### Payment

#### Rate

#### Received
(Paid)

#### Payment

#### Frequency

#### Maturity

#### Date

#### Notional

#### Amount

#### a

#### Value

#### Upfront

#### Payments
(Receipts)

#### Unrealized

#### Appreciation
(Depreciation)

#### Rating

#### b

#### Centrally

#### Cleared

#### Swap

#### Contracts

#### to

#### Sell

#### Protection

#### c,d

#### Traded

#### Index
CDX. NA.EM.43

...

1.00%

Quarterly

6/20/30

480,000

$

(2,344)

$

(11,135)

$

8,791

Investment

Grade

Total

Credit

Default

Swap

Contracts

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

$(2,344)

$(11,135)

$8,791

a

In

U.S.

dollars

unless

otherwise

indicated.

For

contracts

to

sell

protection,

the

notional

amount

is

equal

to

the

maximum

potential

amount

of

the

future

payments

and

no

recourse

provisions

have

been

entered

into

in

association

with

the

contracts.

b

Based

on

Standard

and

Poor's

(S&P)

Rating

for

single

name

swaps

and

internal

ratings

for

index

swaps.

Internal

ratings

based

on

mapping

into

equivalent

ratings

from

external

vendors.

c

Performance

triggers

for

settlement

of

contract

include

default,

bankruptcy

or

restructuring

for

single

name

swaps,

and

failure

to

pay

or

bankruptcy

of

the

underlying

securities

for

traded

index

swaps.

d

The

fund

enters

contracts

to

sell

protection

to

create

a

long

credit

position.

Franklin

Strategic

Series

Schedule

of

Investments

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

At

December

31,

2025,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Note

1(b).

#### Total

#### Return

#### Swap

#### Contracts

#### Underlying

#### Instruments

#### Financing

#### Rate

#### Payment

#### Frequency

#### Counter-

#### party

#### Maturity

#### Date

#### Notional

#### Value

#### \*

#### Value/

#### Unrealized

#### Appreciation
(Depreciation)

#### OTC

#### Swap

#### Contracts

#### Long

#### a
Markit

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

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

1-day

SOFR

Quarterly

JPHQ

3/20/26

415,000

$

14,602

Total

Return

Swap

Contracts

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

$14,602

\*

In

U.S.

dollars

unless

otherwise

indicated.

a

The

Fund

receives

the

total

return

on

the

underlying

instrument

and

pays

a

variable

financing

rate.

See

Note

regarding

other

derivative

information.

See

Abbreviations

on

.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

December

31,

2025

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$7,897,011

$7,951,852

Cost

-

Non-controlled

affiliates

(Note

d)

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

151,650

95,898

Value

-

Unaffiliated

issuers

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

$8,060,980

$8,106,443

Value

-

Non-controlled

affiliates

(Note

d)

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

151,650

95,898

Cash

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

—

Receivables:

Investment

securities

sold

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

71,777

30,753

Interest

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

53,561

71,115

Affiliates

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

37,456

37,475

Deposits

with

brokers

for:

Futures

contracts

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

20,150

13,800

Centrally

cleared

swap

contracts

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

—

56,100

Unrealized

appreciation

on

OTC

swap

contracts

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

—

14,602

Offering

costs

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

30,036

30,036

Total

assets

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

8,425,610

8,456,268

Liabilities:

Payables:

Investment

securities

purchased

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

72,107

99,031

Transfer

agent

fees

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

Professional

fees

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

71,746

71,746

Offering

costs

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

25,213

25,213

Organization

costs

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

20,000

20,000

Variation

margin

on

futures

contracts

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

1,547

1,055

Variation

margin

on

centrally

cleared

swap

contracts

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

—

Accrued

expenses

and

other

liabilities

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

3,897

3,978

Total

liabilities

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

194,635

221,181

Net

assets,

at

value

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

$8,230,975

$8,235,087

Net

assets

consist

of:

Paid-in

capital

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

$8,068,006

$8,069,033

Total

distributable

earnings

(losses)

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

162,969

166,054

Net

assets,

at

value

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

$8,230,975

$8,235,087

Shares

outstanding

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

806,745

806,844

Net

asset

value

per

share

a

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

$10.20

$10.21

a

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Franklin

Strategic

Series

Financial

Statements

Statements

of

Operations

for

the

year

ended

December

31,

2025

a

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Investment

income:

Dividends:

Non-controlled

affiliates

(Note

d)

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

$4,831

$4,026

Interest:

Unaffiliated

issuers:

Paydown

gain

(loss)

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

15,315

11,535

Paid

in

cash

b

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

185,639

205,226

Other

income

c

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

Total

investment

income

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

205,812

220,810

Expenses:

Transfer

agent

fees

(Note

3c)

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

699

711

Custodian

fees

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

Reports

to

shareholders

fees

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

1,445

1,445

Professional

fees

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

72,452

72,452

Trustees'

fees

and

expenses

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

Organization

costs

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

20,000

20,000

Amortization

of

offering

costs

(Note

e)

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

33,333

33,333

Other

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

3,745

3,754

Total

expenses

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

131,959

132,012

Expenses

waived/paid

by

affiliates

(Note

d

and

e)

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

(131,959)

(132,012)

Net

expenses

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

—

—

Net

investment

income

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

205,812

220,810

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

3,887

2,377

Futures

contracts

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

4,749

(125) Swap

contracts

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

—

(4,201)

Net

realized

gain

(loss)

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

8,636

(1,949)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

163,969

154,591

Futures

contracts

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

(6,542)

(3,967)

Swap

contracts

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

—

23,393

Net

change

in

unrealized

appreciation

(depreciation)

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

157,427

174,017

Net

realized

and

unrealized

gain

(loss)

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

166,063

172,068

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$371,875

$392,878

a

For

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025. b

Includes

amortization

of

premium

and

accretion

of

discount.

c

Other

income

includes

payments

by

Advisers

for

acquired

fund

fees

and

expenses

(See

Note

3e).

Franklin

Strategic

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### a

#### Year

#### Ended

#### December

#### 31,

#### 2025

#### a
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$205,812

$220,810

Net

realized

gain

(loss)

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

8,636

(1,949)

Net

change

in

unrealized

appreciation

(depreciation)

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

157,427

174,017

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

371,875

392,878

Distributions

to

shareholders

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

(208,906)

(226,824)

Capital

share

transactions

(Note

2)

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

8,068,006

8,069,033

Net

increase

(decrease)

in

net

assets

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

8,230,975

8,235,087

Net

assets:

End

of

year

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

$8,230,975

$8,235,087

a

For

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025. Franklin

Strategic

Series

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
Franklin

Strategic

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

twelve

separate

funds, two of

which

are

included

in

this

report

(Funds).

The Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946. Effective June

20,

2025,

the

Trust

began

offering

shares

of

Franklin

Templeton

SMACS:

Series

C

and

Franklin

Templeton

SMACS:

Series

CP.

The

following

summarizes

the Funds'

significant

accounting

policies.

a. #### Financial

#### Instrument

#### Valuation
The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier. Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Funds'

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Funds'

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value.

Debt

securities

generally

trade

in

the

over-the-counter

(OTC)

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Derivative

financial

instruments

listed

on

an

exchange

are

valued

at

the

official

closing

price

of

the

day.

Certain

derivative

financial

instruments

are

centrally

cleared

or

trade

in

the

OTC

market.

The

Funds' pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Funds' net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

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. #### Derivative

#### Financial

#### Instruments
Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

Certain

or

all Funds

attempt

to

reduce their

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Funds

include

failure

of

the

Funds

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Funds

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

December

31,

2025,

Franklin

Templeton

SMACS:

Series

CP

Fund

had

no

OTC

derivatives

in

a

net

liability

position

for

such

contracts.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

or

at

the

broker and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Funds'

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Certain

or

all

Funds

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

risk. A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statements

of

Assets

and

Liabilities.

Futures

contracts

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

Certain

or

all

Funds

entered

into

credit

default

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

risk.

A

credit

default

swap

is

an

agreement

between

the

Fund

and

a

counterparty

whereby

the

buyer

of

the

contract

receives

credit

protection

and

the

seller

of

the

contract

guarantees

the

credit

worthiness

of

a

referenced

debt

obligation.

These

agreements

may

be

privately

negotiated

in

the

over-the-counter

market

(OTC

credit

default

swaps)

or

may

be

executed

in

a

multilateral

trade

facility

platform,

such

as

a

registered

exchange

(centrally

cleared

credit

default

swaps).

The

underlying

referenced

debt

obligation

may

be

a

single

issuer

of

corporate

or

sovereign

debt,

a

credit

index,

a

basket

of

issuers

or

indices,

or

a

tranche

of

a

credit

index

or

basket

of

issuers

or

indices.

In

the

event

of

a

default

of

the

underlying

referenced

debt

obligation,

the

buyer

is

entitled

to

receive

the

notional

amount

of

the

credit

default

swap

contract

from

the

seller

in

exchange

for

the

referenced

debt

obligation,

a

net

settlement

amount

equal

to

the

notional

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

b. #### Derivative

#### Financial

#### Instruments
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

amount

of

the

credit

default

swap

less

the

recovery

value

of

the

referenced

debt

obligation,

or

other

agreed

upon

amount.

For

centrally

cleared

credit

default

swaps,

required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statements

of

Assets

and

Liabilities.

Over

the

term

of

the

contract,

the

buyer

pays

the

seller

a

periodic

stream

of

payments,

provided

that

no

event

of

default

has

occurred.

Such

periodic

payments

are

accrued

daily

as

an

unrealized

appreciation or

depreciation

until

the

payments

are

made,

at

which

time

they

are

realized.

Upfront

payments

and

receipts

are

reflected

in

the Statements

of

Assets

and

Liabilities

and

represent

compensating

factors

between

stated

terms

of

the

credit

default

swap

agreement

and

prevailing

market

conditions

(credit

spreads

and

other

relevant

factors).

These

upfront

payments

and

receipts

are

amortized

over

the

term

of

the

contract

as

a

realized

gain

or

loss

in

the

Statements

of

Operations.

Credit

default

swap

contracts

outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

Certain

or

all

Funds

entered

into

OTC

total

return

swap

contracts

primarily

to

manage

and/or

gain exposure

to

credit risk

of

an

underlying

instrument

such

as

a

stock,

bond,

index

or

basket

of

securities

or

indices.

A

total

return

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

a

return

linked

to

an

underlying

instrument

for

a

floating

or

fixed

rate

payment,

both

based

upon

a

notional

amount.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

or

received

are

accrued

daily

and

recorded

as

unrealized

appreciation or

depreciation

until

the

payments

are

made,

at

which

time

they

are

recognized

as

realized

gain

or

loss.

Total

return

swap contracts outstanding

at

period

end,

if

any,

are

listed

in

the

Funds'

Schedules

of

Investments.

See

Note

7 regarding

other

derivative

information.

c. #### Income

#### and

#### Deferred

#### Taxes
It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

December

31,

2025, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

The

Funds'

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

separately

on

the

Statements

of

Operations.

Dividend

income

is recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

b. #### Derivative

#### Financial

#### Instruments
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

e. #### Organization

#### and

#### Offering

#### Costs
Organization

costs

were

expensed

as

incurred.

Offering

costs

are

amortized

on

a

straight

line

basis

over

twelve

months.

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.

g. #### Guarantees

#### and

#### Indemnifications
Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

by

the Trust against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the Trust,

on

behalf

of

the

Funds, enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the Trust

that

have

not

yet

occurred.

Currently,

the Trust

expects

the

risk

of

loss

to

be

remote.

2. #### Shares

#### of

#### Beneficial

#### Interest
At

December

31,

2025,

there

were

an

unlimited

number

of

shares

authorized

(without

par value).

Transactions

in

the

Funds'

shares

were

as

follows:

3. #### Transactions

#### with

#### Affiliates
Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the Trust are

also

officers

and/or

directors

of

the

following

subsidiaries:

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### Shares

#### Amount

#### Shares

#### Amount
Single

Class

Year

ended

December

31,

2025

a

Shares

sold

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

806,745

$8,068,006

806,844

$8,069,033

Net

increase

(decrease)

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

806,745

$8,068,006

806,844

$8,069,033

a

For

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025. #### 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

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

d. #### Security

#### Transactions,

#### Investment

#### Income,

#### Expenses

#### and

#### Distributions
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

a. #### Management

#### Fees
Advisers provides

investment

management

services

to

the

Funds.

The

Funds

do

not

pay

a

fee

for

these

services.

b. #### Administrative

#### Fees
Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the services.

c. #### Transfer

#### Agent

#### Fees
The

Funds

pay

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 Funds

based

upon

relative

assets

and

relative

transactions. In

addition,

the

Fund reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and reimburses

shareholder

servicing

fees

paid

to

third

parties.

For

the

year

ended

December

31,

2025,

the Funds

paid

transfer

agent

fees

as

noted

in

the

Statements of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

d. #### Investments

#### in

#### Affiliated

#### Management

#### Investment

#### Companies
Certain

or

all

Funds

invest

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

"Controlled

Affiliate"

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund's

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Funds

do

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies. Advisers

has

contractually

agreed

to

reimburse

expenses

of

the

Funds

in

an

amount

equal

to

fees

indirectly

borne

by

the

Funds

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statements

of

Operations.

During

the year

ended

December

31,

2025,

investments

in

affiliated

management

investment

companies

were

as

follows:

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Transfer

agent

fees

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

$660

$642

#### &nbsp;&nbsp;&nbsp;&nbsp;aa

#### Value

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### Sales

#### Realized

#### Gain
(Loss)

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### Value

#### at

#### End

#### of

#### Year

#### Number

#### of

#### Shares

#### Held

#### at

#### End

#### of

#### Year

#### Investment

#### Income

#### a&nbsp;&nbsp;&nbsp;&nbsp;

#### a

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

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

$—

$1,587,162

$(1,435,512)

$—

$—

$151,650

151,650

$4,831

#### Total

#### Affiliated

#### Securities

#### ...
$—

$1,587,162

$(1,435,512)

$—

$—

$151,650

$4,831

3. #### Transactions

#### with

#### Affiliates
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

e. #### 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

Funds

so

that

the

operating

expenses

(excluding

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses

of

the

Funds do

not

exceed

0.00%

based

on

the

average

net

assets

of

each

class

until April

30,

2027. Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Acquired

fund

fees

and

expenses

are

indirect

expenses,

and

therefore

Advisers

may

make

payments,

if

necessary,

to

the

Funds

to

offset

these

estimated

indirect

expenses.

Payments

by

Advisers for

the year

ended

December

31,

2025,

are

reflected

as

other

income

in

the

Statements

of

Operations.

f. #### Other

#### Affiliated

#### Transactions
At

December

31,

2025,

Templeton

International

Inc.

owned

a

percentage

of

the

Funds'

outstanding

shares

as

follows:

a

Investment

activities

of

significant

shareholders

could

have

a

material

impact

on

the

Fund.

4. #### Income

#### Taxes
For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2025,

the

capital

loss

carryforwards

were

as

follows:

#### &nbsp;&nbsp;&nbsp;&nbsp;aa

#### Value

#### at

#### Beginning

#### of

#### Year

#### Purchases

#### Sales

#### Realized

#### Gain
(Loss)

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### Value

#### at

#### End

#### of

#### Year

#### Number

#### of

#### Shares

#### Held

#### at

#### End

#### of

#### Year

#### Investment

#### Income

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### Non-Controlled

#### Affiliates
Dividends

Franklin

Institutional

U.S.

Government

Money

Market

Fund,

3.681%

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

$—

$1,432,701

$(1,336,803)

$—

$—

$95,898

95,898

$4,026

#### Total

#### Affiliated

#### Securities

#### ...
$—

$1,432,701

$(1,336,803)

$—

$—

$95,898

$4,026

#### Shares

#### Percentage

#### of

#### Outstanding

#### Shares

#### ~

#### a

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
Templeton

International

Inc.

800,000

99.2%

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Templeton

International

Inc.

800,000

99.2%

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

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

$

2,025

3. #### Transactions

#### with

#### Affiliates
(continued)

d. #### Investments

#### in

#### Affiliated

#### Management

#### Investment

#### Companies
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At December

31,

2025,

the

deferred

losses

were

as

follows:

The

tax

character

of

distributions

paid

during

the

year

ended

December

31,

2025,

was

as

follows:

At

December

31,

2025,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

paydown

losses

and

derivative

financial

instruments.

5. #### Investment

#### Transactions
Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

December

31,

2025,

were

as

follows:

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
Post-October

capital

loss

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

$1,596

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### 2025
Distributions

paid

from:

Ordinary

income

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

$208,906

$226,824

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
a

a

a

Cost

of

investments

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

$8,041,900

$8,045,593

Unrealized

appreciation

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

$176,564

$198,592

Unrealized

depreciation

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

(12,376)

(33,553)

Net

unrealized

appreciation

(depreciation)

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

$164,188

$165,039

Distributable

earnings:

Undistributed

ordinary

income

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

$377

$3,040

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Purchases

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

$8,674,179

$8,556,277

Sales

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

$834,662

$656,786

4. #### Income

#### Taxes
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

6. #### Credit

#### Risk
At

December

31,

2025,

Franklin

Templeton

SMACS:

Series

CP had 21.3%

of

its

portfolio

invested

in

high

yield

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

7. #### Other

#### Derivative

#### Information
At

December

31,

2025,

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

#### Asset

#### Derivatives

#### Liability

#### Derivatives

#### Derivative

#### Contracts

#### Not

#### Accounted

#### for

#### as

#### Hedging

#### Instruments

#### Statement

#### of

#### Assets

#### and

#### Liabilities

#### Location

#### Fair

#### Value

#### Statement

#### of

#### Assets

#### and

#### Liabilities

#### Location

#### Fair

#### Value

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

$

—

Variation

margin

on

futures

contracts

$

6,542

a

Total

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

$—

$6,542

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Interest

rate

contracts

.......

Variation

margin

on

futures

contracts

—

Variation

margin

on

futures

contracts

3,967

a

Credit

contracts

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

Variation

margin

on

centrally

cleared

swap

contracts

8,791

a

Variation

margin

on

centrally

cleared

swap

contracts

—

Unrealized

appreciation

on

OTC

swap

contracts

14,602

Unrealized

depreciation

on

OTC

swap

contracts

—

Total

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

$23,393

$3,967

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

and

centrally

cleared

swap

contracts

as

reported

in

the

Schedules

of

Investments.

Only

the

variation

margin

receivable/payable

at

year

end

is

separately

reported

within

the

Statements

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

For

the

year

ended

December

31,

2025,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

For

the

year

ended

December

31,

2025,

the

average

month

end

notional

amount

of

futures

contracts

and

swaps

contracts

were

as

follows:

See

Note

1(b) regarding

derivative

financial

instruments.

8. #### Credit

#### Facility
Effective

January

30,

2026,

the

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility).

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

may,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

#### Derivative

#### Contracts

#### Not

#### Accounted

#### for

#### as

#### Hedging

#### Instruments

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Realized

#### Gain
(Loss)

#### for

#### the

#### Period

#### Statement

#### of

#### Operations

#### Location

#### Net

#### Change

#### in

#### Unrealized

#### Appreciation
(Depreciation)

#### for

#### the

#### Period

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C
Net

realized

gain

(loss)

from:

Net

change

in

unrealized

&nbsp;&nbsp;&nbsp;&nbsp;appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

$4,749

Futures

contracts

$(6,542)

Total

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

$4,749

$(6,542)

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Net

realized

gain

(loss)

from:

Net

change

in

unrealized

&nbsp;&nbsp;&nbsp;&nbsp;appreciation

(depreciation)

on:

Interest

rate

contracts

..........

Futures

contracts

(125) Futures

contracts

(3,967)

Credit

contracts

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

Swap

contracts

(4,201)

Swap

contracts

23,393

Total

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

$(4,326)

$19,426

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Futures

contracts

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

$1,121,623

$1,021,392

Swap

contracts

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

—

895,000

7. #### Other

#### Derivative

#### Information
(continued)

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

9. #### Fair

#### Value

#### Measurements
The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

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

December

31,

2025,

in

valuing

the

Funds'

assets

and

liabilities carried

at

fair

value,

is

as

follows:

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Assets:
Investments

in

Securities:

a

Corporate

Bonds

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

$

—

$

2,785,270

$

—

$

2,785,270

Foreign

Government

and

Agency

Securities

....

—

12,845

—

12,845

U.S.

Government

and

Agency

Securities

.......

—

710,706

—

710,706

Commercial

Mortgage-Backed

Securities

......

—

224,453

—

224,453

Mortgage-Backed

Securities

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

—

4,070,382

—

4,070,382

Residential

Mortgage-Backed

Securities

.......

—

257,324

—

257,324

Short

Term

Investments

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

151,650

—

—

151,650

Total

Investments

in

Securities

...........

$151,650

$8,060,980

$—

$8,212,630

#### Liabilities:
Other

Financial

Instruments:

Futures

Contracts

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

$6,542

$—

$—

$6,542

Total

Other

Financial

Instruments

.........

$6,542

$—

$—

$6,542

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP

#### Assets:
Investments

in

Securities:

a

Corporate

Bonds

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

—

4,956,624

—

4,956,624

Foreign

Government

and

Agency

Securities

....

—

13,834

—

13,834

U.S.

Government

and

Agency

Securities

.......

—

407,779

—

407,779

Commercial

Mortgage-Backed

Securities

......

—

214,384

—

214,384

Mortgage-Backed

Securities

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

—

2,257,389

—

2,257,389

Residential

Mortgage-Backed

Securities

.......

—

256,433

—

256,433

Short

Term

Investments

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

95,898

—

—

95,898

Total

Investments

in

Securities

...........

$95,898

$8,106,443

$—

$8,202,341

Other

Financial

Instruments:

Swap

Contracts

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

$—

$23,393

$—

$23,393

Total

Other

Financial

Instruments

.........

$—

$23,393

$—

$23,393

#### Liabilities:
Other

Financial

Instruments:

Futures

Contracts

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

$3,967

$—

$—

$3,967

Total

Other

Financial

Instruments

.........

$3,967

$—

$—

$3,967

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Franklin

Strategic

Series

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

10. #### Operating

#### Segments
Each

Fund

operates

as

a

single

operating

segment,

which

is

an

investment

portfolio.

The

portfolio

managers

assigned

to

the

Fund

within the

Funds'

Investment

manager

serve

as

the

Chief

Operating

Decision

Maker

("CODM")

and are

responsible

for

evaluating each

Fund's

operating

results

and

allocating

resources

in

accordance

with each

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

Statements

of

Assets

and

Liabilities

and

the

Statements

of

Operations,

along

with

the

related

notes

to

the

financial

statements.

The

Schedules

of

Investments

provides

details

of

the

Funds'

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. #### Subsequent

#### Events
The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

#### Abbreviations

#### Counterparty

#### JPHQ
JPMorgan

Chase

Bank

NA

#### Index

#### CDX.NA.EM.

#### Series

#### number
CDX

North

America

Emerging

Markets

Index

#### Selected

#### Portfolio

#### FNMA
Federal

National

Mortgage

Association

#### FRN
Floating

Rate

Note

#### GNMA
Government

National

Mortgage

Association

#### IO
Interest

Only

#### REIT
Real

Estate

Investment

Trust

#### SOFR
Secured

Overnight

Financing

Rate

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

#### Reference

#### Index

#### Reference

#### Rate
1-day

SOFR

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

3.87%

Franklin

Strategic

Series

Report

of

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Strategic

Series

and

Shareholders

of

Franklin

Templeton

SMACS:

Series

C

and

Franklin

Templeton

SMACS:

Series

CP

#### Opinions

#### on

#### the

#### Financial

#### Statements
We

have

audited

the

accompanying

statements

of

assets

and

liabilities,

including

the

schedules

of

investments,

of

Franklin

Templeton

SMACS:

Series

C

and

Franklin

Templeton

SMACS:

Series

CP

(two

of

the

funds

constituting

Franklin

Strategic

Series,

hereafter

collectively

referred

to

as

the

"Funds")

as

of

December

31,

2025,

the

related

statements

of

operations

and

changes

in

net

assets,

including

the

related

notes,

and

the

financial

highlights

for

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025

(collectively

referred

to

as

the

"financial

statements").

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

as

of

December

31,

2025

and

the

results

of

each

of

their

operations,

changes

in

each

of

their

net

assets

and

each

of

the

financial

highlights

for

the

period

June

20,

2025

(commencement

of

operations)

to

December

31,

2025

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

#### Basis

#### for

#### Opinions
These

financial

statements

are

the

responsibility

of

the

Funds'

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds'

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2025

by

correspondence

with

the

custodian,

transfer

agents

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinions.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

February

19,

2026

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948. Franklin

Strategic

Series

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

By

mid-February,

tax

information

related

to

a

shareholder's

proportionate

share

of

distributions

paid

during

the

preceding

calendar

year

will

be

received,

if

applicable.

Please

also

refer

to

www.franklintempleton.com

for

per

share

tax

information

related

to

any

distributions

paid

during

the

preceding

calendar

year.

Shareholders

are

advised

to

consult

with

their

tax

advisors

for

further

information

on

the

treatment

of

these

amounts

on

their

tax

returns.

The

following

tax

information

for

the

Funds

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during their

fiscal

year.

The

Funds

below hereby

report

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

December

31,

2025:

Note

(1) -

The

Law

varies

in

each

state

as

to

whether

and

what

percentage

of

dividend

income

attributable

to

Federal

obiligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

consult

with

their

tax

advisors

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

taxes.

#### Pursuant

#### to:

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### C

#### Franklin

#### Templeton

#### SMACS:

#### Series

#### CP
Short-Term

Capital

Gain

Dividends

Distributed

§871(k)(2)(C)

$3,546

$—

Section

163(j)

Interest

Dividends

Earned

§163(j)

$204,900

$218,032

Interest

Earned

from

Federal

Obligations

Note

(1) $11,032

$51,042

Franklin

Strategic

Series

franklintempleton.com

Annual

Report

#### 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

Funds'

investment

manager

according

to

the

terms

of

the

agreement.

#### Board

#### Approval

#### of

#### Management

#### and

#### Subadvisory

#### Agreements
For

the

period

covered

by

this

report

Not

applicable.

FSS4-AFSOI

02/26©

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registrant's chief executive officer and chief financial officer have concluded that the Registrant's disclosure controls
 and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective
 as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their
 evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange
 Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

ITEM 19. EXHIBITS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (1) Code of Ethics attached hereto.](fss-efp22374_ex99code.htm)

Exhibit 99.CODE ETH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.](fss-efp22374_ex99cert.htm)

Exhibit 99.CERT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.](fss-efp22374_ex99906cert.htm)

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, there unto duly authorized.

**Franklin Strategic Series**

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer – Finance and Administration |
| Date: | February 26, 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: | February 26, 2026 |

---

---

| | |
|:---|:---|
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |
| Date: | February 26, 2026 |

---

## Ex-99.Codeeth

**Code of Ethics for Principal Executives & Senior Financial Officers**

---

| | |
|:---|:---|
| **Procedures** | &nbsp;&nbsp;&nbsp;Revised [September 27, 2024] |

---

**FRANKLIN TEMPLETON AFFILIATED FUNDS**

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND**

**SENIOR FINANCIAL OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Covered Officers
 and Purpose of the Code

This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers") of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission ("SEC") (collectively, "FT Funds") for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Honest
 and ethical conduct, including the ethical resolution of actual or apparent conflicts of
 interest between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Full,
 fair, accurate, timely and understandable disclosure in reports and documents that a registrant
 files with, or submits to, the SEC and in other public communications made by or on behalf
 of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance
 with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 prompt internal reporting of violations of the Code to an appropriate person or persons identified
 in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accountability
 for adherence to the Code.

Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

*\** Rule 38a-1 under the Investment Company Act of 1940 ("1940 Act") and Rule 206(4)-7 under the Investment Advisers Act of 1940 ("Advisers Act") (together the "Compliance Rule") require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws ("Compliance Rule Policies and Procedures").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Other Policies
 and Procedures

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.

Franklin Resources, Inc. has separately adopted the <u>Code of Ethics and Business Conduct</u> ("Business Conduct"), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee's business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee policies.

Additionally, the Franklin Templeton Funds have separately adopted the <u>FTI Personal Investments and Insider Trading Policy</u> governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.

Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Covered
 Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of a position with the FT Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds' and the investment advisers' compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or for all three), be involved in establishing policies and implementing decisions that will have different effects on the

adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 use his or her personal influence or personal relationships improperly to influence investment
 decisions or financial reporting by the FT Funds whereby the Covered Officer would benefit
 personally to the detriment of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 cause the FT Funds to take action, or fail to take action, for the individual personal benefit
 of the Covered Officer rather than the benefit of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not
 retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated
 persons for reports of potential violations that are made in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report
 at least annually the following affiliations or other relationships:<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all
 directorships for public companies and all companies that are required to file reports with
 the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent directors of the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect business relationship with any independent public accounting firm (which
 are not related to the routine issues related to the firm's service as the Covered
 Persons accountant); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 direct or indirect interest in any transaction with any FT Fund that will benefit the officer
 (not including benefits derived from the advisory, sub-advisory, distribution or service
 agreements with affiliates of Franklin Resources).

These reports will be reviewed by the Legal Department for compliance with the Code.

There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include<sup>2</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Service
 as a director on the board of any public or private Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any gifts in excess of $100 from any person, from any corporation or association.

<sup>1</sup> Reporting of these affiliations or other relationships shall be made by completing the annual Directors and Officers Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General Counsel.

<sup>2</sup> Any activity or relationship that would present a conflict for a Covered Officer may also present a conflict for the Covered Officer if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Covered Person should also obtain written approval by FT's General Counsel in such situations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 receipt of any entertainment from any Company with which the FT Funds has current or prospective
 business dealings unless such entertainment is business related, reasonable in cost, appropriate
 as to time and place, and not so frequent as to raise any question of impropriety. Notwithstanding
 the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources
 General Counsel for any entertainment with a value in excess of $1000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 ownership interest in, or any consulting or employment relationship with, any of the FT Fund's
 service providers, other than an investment adviser, principal underwriter, administrator
 or any affiliated person thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A
 direct or indirect financial interest in commissions, transaction charges or spreads paid
 by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other
 than an interest arising from the Covered Officer's employment, such as compensation
 or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel, or the Chief Compliance Officer, will
 provide a report to the FT Funds Audit Committee of any approvals granted at the next regularly
 scheduled meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Disclosure
 and Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should familiarize himself with the disclosure requirements generally applicable
 to the FT Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts
 about the FT Funds to others, whether within or outside the FT Funds, including to the FT
 Funds' directors and auditors, and to governmental regulators and self- regulatory
 organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each
 Covered Officer should, to the extent appropriate within his or her area of responsibility,
 consult with other officers and employees of the FT Funds, the FT Fund's adviser and
 the administrator with the goal of promoting full, fair, accurate, timely and understandable
 disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and
 in other public communications made by the FT Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It
 is the responsibility of each Covered Officer to promote compliance with the standards and
 restrictions imposed by applicable laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Reporting
 and Accountability

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon
 becoming a covered officer affirm in writing to the Board that he or she has received, read,
 and understands the Code (see Exhibit A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually
 thereafter affirm to the Board that he has complied with the requirements of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Notify
 Franklin Resources' General Counsel or Deputy General Counsel promptly if he or she
 knows of any violation of this Code. Failure to do so is itself is a violation of this Code.

Franklin Resources' General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.<sup>3</sup> However, the Independent Directors of the respective FT Funds will consider any approvals or waivers<sup>4</sup> sought by any Chief Executive Officers of the Funds.

The FT Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Franklin
 Resources General Counsel or Deputy General Counsel will take all appropriate action to investigate
 any potential violations reported to the Legal Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If,
 after such investigation, the General Counsel or Deputy General Counsel believes that no
 violation has occurred, The General Counsel is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 matter that the General Counsel or Deputy General Counsel believes is a violation will be
 reported to the Independent Directors of the appropriate FT Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If
 the Independent Directors concur that a violation has occurred, it will inform and make a
 recommendation to the Board of the appropriate FT Fund or Funds, which will consider appropriate
 action, which may include review of, and appropriate modifications to, applicable policies
 and procedures; notification to appropriate personnel of the investment adviser or its board;
 or a recommendation to dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The
 Independent Directors will be responsible for granting waivers, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any
 changes to or waivers of this Code will, to the extent required, are disclosed as provided
 by SEC rules.<sup>5</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. Other
 Policies and Procedures

This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund's principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT's Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Amendments

Any amendments to this Code must be approved or ratified by a majority vote of the FT Funds' Board including a majority of independent directors.

<sup>3</sup> Franklin Resources General Counsel and Deputy General Counsel are authorized to consult, as appropriate, with members of the Audit Committee, counsel to the FT Funds and counsel to the Independent Directors, and are encouraged to do so.

<sup>4</sup> Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.

<sup>5</sup> See Part X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds' Board and their counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. Internal
 Use

The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Disclosure
 on Form N-CSR

Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.

The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this intention.

The Legal Department shall be responsible for ensuring that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a
 copy of the Code is filed with the SEC as an exhibit to each Fund's annual report;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any
 amendments to, or waivers (including implicit waivers) from, a provision of the Code is disclosed
 in the registrant's annual report on Form N-CSR.

In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N- CSR.

In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

**Exhibit A**

**ACKNOWLEDGMENT FORM**

**Franklin Templeton Funds Code of Ethics**

**For Principal Executives and Senior Financial Officers**

**Instructions:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Complete
 all sections of this form.

&nbsp;&nbsp;&nbsp;&nbsp;2. Print
 the completed form, sign, and date.

&nbsp;&nbsp;&nbsp;&nbsp;3. Submit
 completed form to FT's General Counsel c/o Code of Ethics Administration within 10
 days of becoming a Covered Officer and by February 15<sup>th</sup> of each subsequent year.

---

| | |
|:---|:---|
| **E-mail:** | Code of Ethics Inquiries & Requests (internal address);<br> lpreclear@franklintempleton.com (external address) |

---

---

| |
|:---|
| **Covered Officer's Name:** |
| **Title:** |
| **Department:** |
| **Location:** |
| **Certification for Year Ending:** |

---

***To: Franklin Resources General Counsel, Legal Department***

I acknowledge receiving, reading and understanding the Franklin Templeton Fund's Code of Ethics for Principal Executive Officers and Senior Financial Officers (the "Code"). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.

---

| | |
|:---|:---|
| ***Signature*** | ***Date signed*** |

---

## Ex-99.Cert

CERTIFICATIONS PURSUANT TO SECTION 302

EX-99.CERT

**<u>CERTIFICATIONS</u>**

I, Christopher Kings, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of **Franklin Strategic Series;** 

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required
to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

Date: February 26, 2026

---

| |
|:---|
| /s/ Christopher Kings |
| Christopher Kings |
| Chief Executive Officer – Finance and Administration |

---

**<u>CERTIFICATIONS</u>**

I, Jeffrey White, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form N-CSR of **Franklin Strategic Series**;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial information included in this report, and the financial statements
on which the financial information is based, fairly present in all material respects the financial condition, results of operations, changes
in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of,
and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report
based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal control over financial reporting.

Date: February 26, 2026

---

| |
|:---|
| /s/ Jeffrey White |
| Jeffrey White |
| Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

## Exhibit 99.906

CERTIFICATIONS PURSUANT TO SECTION 906

EX-99.906CERT

**CERTIFICATION**

**Christopher Kings,** Chief Executive Officer – Finance and Administration, and **Jeffrey White,** Chief Financial Officer, Chief Accounting Officer and Treasurer of **Franklin Strategic Series (the "Registrant"), each certify to the best of** their knowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Registrant's periodic report on Form N-CSR for the period ended **December 31, 2025** (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| **Chief Executive Officer –** | **Chief Financial Officer, Chief** |
| **Finance and Administration** | **Accounting Officer and Treasurer** |
| Franklin Strategic Series | Franklin Strategic Series |
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: February 26, 2026 | Date: February 26, 2026 |

---

This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Commission.