# EDGAR Filing Document

**Accession Number:** 0000881309
**File Stem:** 0001133228-26-007458
**Filing Date:** 2026-4
**Character Count:** 262556
**Document Hash:** 35f2731a1de87f6d1778a20bdfb9f01c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-007458.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001133228-26-007458

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 44

**CONFORMED PERIOD OF REPORT**: 20260228

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**EFFECTIVENESS DATE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FRANKLIN MUNICIPAL SECURITIES TRUST
- **CENTRAL INDEX KEY:** 0000881309

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-06481
- **FILM NUMBER:** 26923939

**BUSINESS ADDRESS:**
- **STREET 1:** ONE FRANKLIN PARKWAY
- **CITY:** SAN MATEO
- **STATE:** CA
- **ZIP:** 94403-1906
- **BUSINESS PHONE:** 650-312-2000

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

## Series and Classes Contracts Data

### FRANKLIN CALIFORNIA HIGH YIELD MUNICIPAL FUND (Series ID: S000006860)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000018537 | CLASS A1      | FCAMX           |
| C000018539 | CLASS C       | FCAHX           |
| C000040036 | ADVISOR CLASS | FVCAX           |
| C000194351 | CLASS R6      | FCAQX           |
| C000205976 | Class A       | FCQAX           |

?xml version='1.0' encoding='ASCII'? 2026-03-1874200012400_FranklinCaliforniaHighYieldMunicipalFund_ClassA_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 **811-06481**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Franklin Municipal Securities Trust** 

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

Alison Baur

Franklin Templeton

One Franklin Parkway

San Mateo, CA 94403-1906

(Name and address of agent for service)

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

Date of fiscal year end: **February 28**

Date of reporting period: **February 28, 2026**

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 California High Yield Municipal Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A [FCQAX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| February 28, 2026  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2025, to February 28, 2026.

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

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment** |
| Class A | $83 | 0.81% |

---

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

For the twelve months ended February 28, 2026, Class A shares of Franklin California High Yield Municipal Fund returned 3.74%. The Fund compares its performance to the Bloomberg Municipal Bond California Exempt Index, which returned 4.98% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Selection in bonds with no external credit rating |
| ↑ | Underweight to bonds with 30 years to maturity |
| ↑ | Selection in B rated bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Overweight to bonds with no external credit rating |
| ↓ | Overweight to bonds with 20 years to maturity |
| ↓ | Underweight bonds with 5 years or less to maturity  |

---

Franklin California High Yield Municipal Fund PAGE 1 1175-ATSR-0426

------

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

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

**VALUE OF A $** **10,000 INVESTMENT ($** **9,625 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A** 2/29/2016 — 2/28/2026

![image](ts6674img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A**  | 3.74 | 1.03 | 2.60 |
| **Class A (with sales charge)**  | -0.15 | 0.26 | 2.20 |
| **Bloomberg Municipal Bond Index**  | 4.96 | 1.44 | 2.43 |
| **Bloomberg Municipal Bond California Exempt Index**  | 4.98 | 1.45 | 2.37 |

---

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

The Fund began offering Class A shares on 9/10/2018. Returns for periods before 9/10/2018, are based on the Fund's Class A1 performance, which has been adjusted to take into account differences in class-specific operating expenses and maximum sales charges. For periods after the share class offering, performance for the specific share class is used, reflecting the applicable expenses and maximum sales charges.

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

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 February 28, 2026)

---

| | |
|:---|:---|
| **Total Net Assets** | $3281260262 |
| **Total Number of Portfolio Holdings** | 745 |
| **Total Management Fee Paid** | $13902397 |
| **Portfolio Turnover Rate** | 13.89% |

---

Franklin California High Yield Municipal Fund PAGE 2 1175-ATSR-0426

------

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

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

![image](ts6674img004.jpg)

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

---

| | |
|:---|:---|
| ![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 |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin California High Yield Municipal Fund PAGE 3 1175-ATSR-0426

96259737100841048011778117551183110763113931192512435100001002510276107001171311837117591115911764121121271310000999710259106541169311763116761112411738120421264222.920.512.910.89.28.16.34.32.01.50.70.50.3 ------

---

| | |
|:---|:---|
| **Franklin California High Yield Municipal Fund**  | ![image](img2199_202405220716489.jpg) |
| Class A1 [FCAMX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| February 28, 2026  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2025, to February 28, 2026.

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

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment** |
| Class A1 | $67 | 0.66% |

---

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

For the twelve months ended February 28, 2026, Class A1 shares of Franklin California High Yield Municipal Fund returned 3.91%. The Fund compares its performance to the Bloomberg Municipal Bond California Exempt Index, which returned 4.98% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Selection in bonds with no external credit rating |
| ↑ | Underweight to bonds with 30 years to maturity |
| ↑ | Selection in B rated bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Overweight to bonds with no external credit rating |
| ↓ | Overweight to bonds with 20 years to maturity |
| ↓ | Underweight bonds with 5 years or less to maturity  |

---

Franklin California High Yield Municipal Fund PAGE 1 175-ATSR-0426

------

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

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

**VALUE OF A $** **10,000 INVESTMENT ($** **9,625 AFTER MAXIMUM APPLICABLE SALES CHARGE) –**

**Class A1** 2/29/2016 — 2/28/2026

![image](ts6673img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class A1**  | 3.91 | 1.18 | 2.70 |
| **Class A1 (with sales charge)**  | -0.04 | 0.41 | 2.31 |
| **Bloomberg Municipal Bond Index**  | 4.96 | 1.44 | 2.43 |
| **Bloomberg Municipal Bond California Exempt Index**  | 4.98 | 1.45 | 2.37 |

---

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

Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available.

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

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 February 28, 2026)

---

| | |
|:---|:---|
| **Total Net Assets** | $3281260262 |
| **Total Number of Portfolio Holdings** | 745 |
| **Total Management Fee Paid** | $13902397 |
| **Portfolio Turnover Rate** | 13.89% |

---

Franklin California High Yield Municipal Fund PAGE 2 175-ATSR-0426

------

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

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

![image](ts6673img004.jpg)

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

---

| | |
|:---|:---|
| ![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 |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin California High Yield Municipal Fund PAGE 3 175-ATSR-0426

96259738100851052211845118401192410872115261208412556100001002510276107001171311837117591115911764121121271310000999710259106541169311763116761112411738120421264222.920.512.910.89.28.16.34.32.01.50.70.50.3 ------

---

| | |
|:---|:---|
| **Franklin California High Yield Municipal Fund**  | ![image](img2199_202405220716489.jpg) |
| Class C [FCAHX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| February 28, 2026  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2025, to February 28, 2026.

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

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment** |
| Class C | $122 | 1.20% |

---

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

For the twelve months ended February 28, 2026, Class C shares of Franklin California High Yield Municipal Fund returned 3.20%. The Fund compares its performance to the Bloomberg Municipal Bond California Exempt Index, which returned 4.98% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Selection in bonds with no external credit rating |
| ↑ | Underweight to bonds with 30 years to maturity |
| ↑ | Selection in B rated bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Overweight to bonds with no external credit rating |
| ↓ | Overweight to bonds with 20 years to maturity |
| ↓ | Underweight bonds with 5 years or less to maturity  |

---

Franklin California High Yield Municipal Fund PAGE 1 275-ATSR-0426

------

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

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

**VALUE OF A $** **10,000 INVESTMENT –** **Class C** 2/29/2016 — 2/28/2026

![image](ts6675img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class C**  | 3.20 | 0.58 | 2.11 |
| **Class C (with sales charge)**  | 2.21 | 0.58 | 2.11 |
| **Bloomberg Municipal Bond Index**  | 4.96 | 1.44 | 2.43 |
| **Bloomberg Municipal Bond California Exempt Index**  | 4.98 | 1.45 | 2.37 |

---

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 February 28, 2026)

---

| | |
|:---|:---|
| **Total Net Assets** | $3281260262 |
| **Total Number of Portfolio Holdings** | 745 |
| **Total Management Fee Paid** | $13902397 |
| **Portfolio Turnover Rate** | 13.89% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

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

![image](ts6675img004.jpg)

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

Franklin California High Yield Municipal Fund PAGE 2 275-ATSR-0426

------

---

| | |
|:---|:---|
| ![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 |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin California High Yield Municipal Fund PAGE 3 275-ATSR-0426

1000010069103681075512043119741199210871114571194112323100001002510276107001171311837117591115911764121121271310000999710259106541169311763116761112411738120421264222.920.512.910.89.28.16.34.32.01.50.70.50.3 ------

---

| | |
|:---|:---|
| **Franklin California High Yield Municipal Fund**  | ![image](img2199_202405220716489.jpg) |
| Class R6 [FCAQX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| February 28, 2026  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2025, to February 28, 2026.

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

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment** |
| Class R6 | $52 | 0.51% |

---

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

For the twelve months ended February 28, 2026, Class R6 shares of Franklin California High Yield Municipal Fund returned 4.05%. The Fund compares its performance to the Bloomberg Municipal Bond California Exempt Index, which returned 4.98% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Selection in bonds with no external credit rating |
| ↑ | Underweight to bonds with 30 years to maturity |
| ↑ | Selection in B rated bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Overweight to bonds with no external credit rating |
| ↓ | Overweight to bonds with 20 years to maturity |
| ↓ | Underweight bonds with 5 years or less to maturity  |

---

Franklin California High Yield Municipal Fund PAGE 1 8175-ATSR-0426

------

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

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

**VALUE OF A $** **10,000 INVESTMENT –** **Class R6** 2/29/2016 — 2/28/2026

![image](ts6676img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Class R6**  | 4.05 | 1.30 | 2.83 |
| **Bloomberg Municipal Bond Index**  | 4.96 | 1.44 | 2.43 |
| **Bloomberg Municipal Bond California Exempt Index**  | 4.98 | 1.45 | 2.37 |

---

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

The Fund began offering Class R6 shares on 8/1/2017. Returns for periods before 8/1/2017, are based on the Fund's Advisor Class performance, which has been adjusted to take into account differences in class-specific operating expenses and maximum sales charges. For periods after the share class offering, performance for the specific share class is used, reflecting the applicable expenses and maximum sales charges.

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 February 28, 2026)

---

| | |
|:---|:---|
| **Total Net Assets** | $3281260262 |
| **Total Number of Portfolio Holdings** | 745 |
| **Total Management Fee Paid** | $13902397 |
| **Portfolio Turnover Rate** | 13.89% |

---

Franklin California High Yield Municipal Fund PAGE 2 8175-ATSR-0426

------

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

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

![image](ts6676img004.jpg)

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

---

| | |
|:---|:---|
| ![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 |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin California High Yield Municipal Fund PAGE 3 8175-ATSR-0426

1000010118104861095112351123631246711376120751267513188100001002510276107001171311837117591115911764121121271310000999710259106541169311763116761112411738120421264222.920.512.910.89.28.16.34.32.01.50.70.50.3 ------

---

| | |
|:---|:---|
| **Franklin California High Yield Municipal Fund**  | ![image](img2199_202405220716489.jpg) |
| Advisor Class [FVCAX] | ![image](img2199_202405220716489.jpg) |
| Annual Shareholder Report \| February 28, 2026  | ![image](img2199_202405220716489.jpg) |
| ![image](img2195_202408190904545.jpg) | ![image](img2195_202408190904545.jpg) |

---

This annual shareholder report contains important information about Franklin California High Yield Municipal Fund for the period March 1, 2025, to February 28, 2026.

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

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

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000** **investment** | **Costs paid as a percentage of a** **$10,000 investment** |
| Advisor Class | $57 | 0.56% |

---

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

For the twelve months ended February 28, 2026, Advisor Class shares of Franklin California High Yield Municipal Fund returned 4.00%. The Fund compares its performance to the Bloomberg Municipal Bond California Exempt Index, which returned 4.98% for the same period.

**PERFORMANCE HIGHLIGHTS**

---

| | |
|:---|:---|
| **Top contributors to performance:** | **Top contributors to performance:** |
| ↑ | Selection in bonds with no external credit rating |
| ↑ | Underweight to bonds with 30 years to maturity |
| ↑ | Selection in B rated bonds |

---

---

| | |
|:---|:---|
| **Top detractors from performance:** | **Top detractors from performance:** |
| ↓ | Overweight to bonds with no external credit rating |
| ↓ | Overweight to bonds with 20 years to maturity |
| ↓ | Underweight bonds with 5 years or less to maturity  |

---

Franklin California High Yield Municipal Fund PAGE 1 675-ATSR-0426

------

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

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

**VALUE OF A $** **10,000 INVESTMENT –** **Advisor Class** 2/29/2016 — 2/28/2026

![image](ts6672img003.jpg)

**AVERAGE ANNUAL TOTAL RETURNS (%)** Period Ended February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
|  | **1 Year** | **5 Year** | **10 Year** |
| **Advisor Class**  | 4.00 | 1.28 | 2.79 |
| **Bloomberg Municipal Bond Index**  | 4.96 | 1.44 | 2.43 |
| **Bloomberg Municipal Bond California Exempt Index**  | 4.98 | 1.45 | 2.37 |

---

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 February 28, 2026)

---

| | |
|:---|:---|
| **Total Net Assets** | $3281260262 |
| **Total Number of Portfolio Holdings** | 745 |
| **Total Management Fee Paid** | $13902397 |
| **Portfolio Turnover Rate** | 13.89% |

---

**WHAT DID THE FUND INVEST IN?** (as of February 28, 2026)

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

![image](ts6672img004.jpg)

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

Franklin California High Yield Municipal Fund PAGE 2 675-ATSR-0426

------

---

| | |
|:---|:---|
| ![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 |

---

**HOUSEHOLDING**

You will receive the Fund's shareholder reports every six months. In addition, you will receive an annual updated summary prospectus (detail prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the shareholder reports and summary prospectus. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) DIAL BEN/342-5236. At any time, you may view current prospectuses/summary prospectuses and shareholder reports on our website. If you choose, you may receive these documents through electronic delivery.

Franklin California High Yield Municipal Fund PAGE 3 675-ATSR-0426

1000010127104971096112360123561246711370120641265913166100001002510276107001171311837117591115911764121121271310000999710259106541169311763116761112411738120421264222.920.512.910.89.28.16.34.32.01.50.70.50.3 ------

&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 in the last two fiscal years ending February 28, 2025 and February 28, 2026 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $50,486 in February 28, 2025 and $48,542 in February 28, 2026.

&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 Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in February 28, 2025 and $0 in February 28, 2026.

&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 Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $10,000 in February 28, 2025 and $10,000 in February 28, 2026. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

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

&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 February 28, 2025 and $0 in February 28, 2026.

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

&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 $489,326 in February 28, 2025 and $1,690,011 in February 28, 2026.

&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 HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund

#### Financial

#### Statements

#### and

#### Other

#### Important

#### Information

#### Annual
\|

February

28,

2026

#### If

#### you

#### need

#### assistance

#### accessing

#### this

#### content,

#### please

#### reach

#### out

#### to

#### your

#### sales

#### representative

#### or

#### send

#### an

#### email

#### to

#### accessibility@franklintempleton.com

#### .

#### Table

#### of

#### Contents
franklintempleton.com

Financial

Statements

and

Other

Important

Information—Annual

Financial

Highlights

and

Schedule

of

Investments

#### 2
Financial

Statements

#### 29
Notes

to

Financial

Statements

#### 33
Report

of

Independent

Registered

Public

Accounting

Firm

#### 42
Tax

Information

#### 43
Changes

In

and

Disagreements

with

Accountants

#### 44
Results

of

Meeting(s)

of

Shareholders

Remuneration

Paid

to

Directors,

Officers

and

Others

Board

Approval

of

Management

and

Subadvisory

Agreements

Franklin

Municipal

Securities

Trust

Financial

Highlights

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### February

#### 28,

#### Year

#### Ended

#### February

#### 28,

#### 2022

#### b

#### Year

#### Ended

#### May

#### 31,

#### 2021

#### 2026

#### 2025

#### 2024

#### a

#### 2023

#### Class

#### A

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

.......

$9.91

$9.85

$9.69

$11.02

$11.49

$10.81

Income

from

investment

operations

c

:

Net

investment

income

d

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

0.41 0.39 0.39 0.36 0.26 0.35 Net

realized

and

unrealized

gains

(losses)

(0.06)

0.06 0.16 (1.35)

(0.49)

0.67 Total

from

investment

operations

........

0.35 0.45 0.55 (0.99)

(0.23)

1.02 Less

distributions

from:

Net

investment

income

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

(0.40)

(0.39)

(0.39)

(0.34)

(0.24)

(0.34)

Net

asset

value,

end

of

year

...........

$9.86

$9.91

$9.85

$9.69

$11.02

$11.49

Total

return

e

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

3.74%

4.67%

5.85%

(9.03)%

(2.09)%

9.57%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

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

0.81%

0.80%

g

0.84%

g

0.88%

g

0.81%

g

0.79%

g

Net

investment

income

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

4.21%

3.98%

4.10%

3.63%

2.88%

3.10%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.........

$1,168,018

$981,536

$710,549

$595,614

$714,052

$618,967

Portfolio

turnover

rate

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

13.89%

10.33%

10.93%

18.77%

10.19%

9.20%

a

For

the

year

ended

February

29. b

For

the

period

June

1,

2021

to

February

28,

2022. c

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Municipal

Securities

Trust

Financial

Highlights

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### February

#### 28,

#### Year

#### Ended

#### February

#### 28,

#### 2022

#### b

#### Year

#### Ended

#### May

#### 31,

#### 2021

#### 2026

#### 2025

#### 2024

#### a

#### 2023

#### Class

#### A1

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

.......

$9.89

$9.83

$9.67

$10.99

$11.47

$10.79

Income

from

investment

operations

c

:

Net

investment

income

d

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

0.42 0.41 0.41 0.38 0.26 0.37 Net

realized

and

unrealized

gains

(losses)

(0.05)

0.06 0.15 (1.35)

(0.49)

0.67 Total

from

investment

operations

........

0.37 0.47 0.56 (0.97)

(0.23)

1.04 Less

distributions

from:

Net

investment

income

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

(0.42)

(0.41)

(0.40)

(0.35)

(0.25)

(0.36)

Net

asset

value,

end

of

year

...........

$9.84

$9.89

$9.83

$9.67

$10.99

$11.47

Total

return

e

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

3.91%

4.84%

6.02%

(8.83)%

(2.07)%

9.76%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

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

0.66%

0.65%

g

0.69%

g

0.72%

g

0.66%

g

0.64%

g

Net

investment

income

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

4.37%

4.13%

4.25%

3.78%

3.04%

3.27%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.........

$662,265

$712,086

$776,199

$862,312

$1,166,095

$1,254,701

Portfolio

turnover

rate

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

13.89%

10.33%

10.93%

18.77%

10.19%

9.20%

a

For

the

year

ended

February

29. b

For

the

period

June

1,

2021

to

February

28,

2022. c

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Municipal

Securities

Trust

Financial

Highlights

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### February

#### 28,

#### Year

#### Ended

#### February

#### 28,

#### 2022

#### b

#### Year

#### Ended

#### May

#### 31,

#### 2021

#### 2026

#### 2025

#### 2024

#### a

#### 2023

#### Class

#### C

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

.......

$9.97

$9.91

$9.75

$11.08

$11.56

$10.87

Income

from

investment

operations

c

:

Net

investment

income

d

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

0.37 0.35 0.36 0.32 0.21 0.30 Net

realized

and

unrealized

gains

(losses)

(0.07)

0.06 0.15 (1.35)

(0.49)

0.69 Total

from

investment

operations

........

0.30 0.41 0.51 (1.03)

(0.28)

0.99 Less

distributions

from:

Net

investment

income

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

(0.36)

(0.35)

(0.35)

(0.30)

(0.20)

(0.30)

Net

asset

value,

end

of

year

...........

$9.91

$9.97

$9.91

$9.75

$11.08

$11.56

Total

return

e

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

3.20%

4.22%

5.39%

(9.35)%

(2.46)%

9.18%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

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

1.20%

1.20%

g

1.23%

g

1.27%

g

1.20%

g

1.19%

g

Net

investment

income

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

3.78%

3.54%

3.66%

3.19%

2.47%

2.69%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.........

$73,036

$85,107

$92,877

$118,149

$180,173

$223,652

Portfolio

turnover

rate

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

13.89%

10.33%

10.93%

18.77%

10.19%

9.20%

a

For

the

year

ended

February

29. b

For

the

period

June

1,

2021

to

February

28,

2022. c

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Municipal

Securities

Trust

Financial

Highlights

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

#### Year

#### Ended

#### February

#### 28,

#### Year

#### Ended

#### February

#### 28,

#### 2022

#### b

#### Year

#### Ended

#### May

#### 31,

#### 2021

#### 2026

#### 2025

#### 2024

#### a

#### 2023

#### Class

#### R6

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

.......

$9.93

$9.86

$9.70

$11.03

$11.51

$10.82

Income

from

investment

operations

c

:

Net

investment

income

d

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

0.43 0.42 0.42 0.39 0.27 0.38 Net

realized

and

unrealized

gains

(losses)

(0.06)

0.07 0.16 (1.35)

(0.49)

0.68 Total

from

investment

operations

........

0.37 0.49 0.58 (0.96)

(0.22)

1.06 Less

distributions

from:

Net

investment

income

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

(0.43)

(0.42)

(0.42)

(0.37)

(0.26)

(0.37)

Net

asset

value,

end

of

year

...........

$9.87

$9.93

$9.86

$9.70

$11.03

$11.51

Total

return

e

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

4.05%

4.97%

6.14%

(8.76)%

(1.96)%

9.97%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

before

waiver

and

payments

by

affiliates

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

0.51%

0.51%

0.55%

0.58%

0.53%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

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

0.51%

0.51%

g

0.55%

g

0.58%

g,h

0.52%

g

0.51%

g

Net

investment

income

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

4.50%

4.26%

4.38%

3.91%

3.16%

3.37%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.........

$77,623

$65,877

$50,713

$44,724

$60,366

$45,216

Portfolio

turnover

rate

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

13.89%

10.33%

10.93%

18.77%

10.19%

9.20%

a

For

the

year

ended

February

29. b

For

the

period

June

1,

2021

to

February

28,

2022. c

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Municipal

Securities

Trust

Financial

Highlights

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

a

#### Year

#### Ended

#### February

#### 28,

#### Year

#### Ended

#### February

#### 28,

#### 2022

#### b

#### Year

#### Ended

#### May

#### 31,

#### 2021

#### 2026

#### 2025

#### 2024

#### a

#### 2023

#### Advisor

#### Class

#### Per

#### share

#### operating

#### performance
(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

.......

$9.91

$9.85

$9.69

$11.02

$11.50

$10.82

Income

from

investment

operations

c

:

Net

investment

income

d

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

0.43 0.42 0.42 0.39 0.27 0.38 Net

realized

and

unrealized

gains

(losses)

(0.05)

0.06 0.15 (1.36)

(0.49)

0.67 Total

from

investment

operations

........

0.38 0.48 0.57 (0.97)

(0.22)

1.05 Less

distributions

from:

Net

investment

income

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

(0.43)

(0.42)

(0.41)

(0.36)

(0.26)

(0.37)

Net

asset

value,

end

of

year

...........

$9.86

$9.91

$9.85

$9.69

$11.02

$11.50

Total

return

e

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

4.00%

4.93%

6.11%

(8.80)%

(1.99)%

9.84%

#### Ratios

#### to

#### average

#### net

#### assets

#### f
Expenses

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

0.56%

0.55%

g

0.59%

g

0.62%

g

0.56%

g

0.54%

g

Net

investment

income

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

4.46%

4.22%

4.34%

3.87%

3.13%

3.35%

#### Supplemental

#### data
Net

assets,

end

of

year

(000's)

.........

$1,300,318

$1,185,778

$914,542

$922,275

$1,186,382

$1,113,278

Portfolio

turnover

rate

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

13.89%

10.33%

10.93%

18.77%

10.19%

9.20%

a

For

the

year

ended

February

29. b

For

the

period

June

1,

2021

to

February

28,

2022. c

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund's

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Municipal

Securities

Trust

Schedule

of

Investments,

February

28,

2026

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

a

a

#### Shares
a

#### Value
a

#### Common

#### Stocks

#### 0.0%

#### Financial

#### Services

#### 0.0%
a,b

Brightline

Train

Holdings

West

LLC

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

86,700

$

—

b

#### Independent

#### Power

#### and

#### Renewable

#### Electricity

#### Producers

#### 0.0%
a,b

AES

Guayama

Holdings

BV

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

60,804

—

b

#### Total

#### Common

#### Stocks

#### (Cost

#### $

#### –

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

#### —

#### Principal

#### Amount
a

#### a
a

#### Corporate

#### Bonds

#### 2.1%

#### Commercial

#### Services

#### &

#### Supplies

#### 0.5%
a

,c

CalPlant

I

LLC

,

Senior

Secured

Note

,

144A,

%

,

2/28/27

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

$

4,195,000

4,195,000

d

A

,

Senior

Secured

Note

,

144A,

9.5 %

,

9/30/23

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

1,370,000

178,100

d

B

,

Senior

Secured

Note

,

144A,

9.5 %

,

9/30/23

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

5,220,000

678,600

d

A

,

Senior

Secured

Note

,

144A,

9.5 %

,

9/30/23

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

2,875,000

373,750

d

B

,

Senior

Secured

Note

,

144A,

9.5 %

,

9/30/23

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

250,000

32,500

d

C

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

1,885,000

1,885,000

d

X

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

2,830,000

2,830,000

d

A

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

1,000,000

1,000,000

d

B

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

890,000

890,000

d

C

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

1,415,000

1,415,000

d

D

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

1,230,000

1,230,000

d

E

,

Senior

Secured

Note

,

144A,

9.5 %

,

8/31/23

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

1,385,000

1,385,000

16,092,950

#### Diversified

#### Consumer

#### Services

#### 1.3%
Grand

Canyon

University

,

Secured

Note

,

5.125 %

,

10/01/28

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

41,035,000

41,264,072

#### Electric

#### Utilities

#### 0.3%
c

Mission

Rock

Utilities,

Inc.

,

144A,

%

,

7/01/27

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

9,600,000

9,715,012

#### Total

#### Corporate

#### Bonds

#### (Cost

#### $

#### 75,139,634

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

#### 67,072,034

#### Municipal

#### Bonds

#### 95.2%

#### Arizona

#### 0.4%
c

Maricopa

County

Industrial

Development

Authority

,

Grand

Canyon

University

Obligated

Group

,

Revenue

,

144A,

2024

,

7.375 %

,

10/01/29

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

13,640,000

14,726,987

#### California

#### 88.3%
Alameda

Community

Facilities

District

,

City

of

Alameda

Community

Facilities

District

No.

22-1

,

Special

Tax

,

2023

,

%

,

9/01/38

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

850,000

910,010

City

of

Alameda

Community

Facilities

District

No.

22-1

,

Special

Tax

,

2023

,

%

,

9/01/43

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

1,000,000

1,042,784

City

of

Alameda

Community

Facilities

District

No.

22-1

,

Special

Tax

,

2023

,

%

,

9/01/53

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

1,000,000

1,014,861

Bay

Area

Toll

Authority

,

Revenue

,

2025

,

Refunding

,

%

,

4/01/53

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

1,785,000

1,905,497

Benicia

Unified

School

District

,

GO

,

2024

B

,

%

,

8/01/58

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

7,000,000

7,431,213

Burbank-Glendale-Pasadena

Airport

Authority

Brick

Campaign

,

Revenue,

Senior

Lien

,

2024

B

,

AG

Insured

,

4.375 %

,

7/01/49

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

5,000,000

4,903,751

Revenue,

Senior

Lien

,

2024

B

,

AG

Insured

,

4.5 %

,

7/01/54

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

5,750,000

5,690,731

California

Community

Choice

Financing

Authority

,

e

Revenue

,

2021

,

Mandatory

Put

,

%

,

8/01/31

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

10,000,000

10,394,865

e

Revenue

,

2024

B

,

Mandatory

Put

,

%

,

12/01/32

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

10,000,000

10,574,368

e

Revenue

,

2024

D

,

Mandatory

Put

,

%

,

9/01/32

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

10,000,000

11,071,076

e

Revenue

,

2024

E

,

Mandatory

Put

,

%

,

9/01/32

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

10,000,000

10,945,378

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Community

Choice

Financing

Authority,

(continued)

e

Revenue

,

2025

C

,

Mandatory

Put

,

%

,

10/01/33

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

$

12,500,000

$

13,571,957

Revenue

,

2026

B

,

%

,

3/01/36

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

7,800,000

8,508,641

California

Community

College

Financing

Authority

,

c

NCCD-Napa

Valley

Properties

LLC

,

Revenue

,

144A,

2022

A

,

5.75 %

,

7/01/60

.....

30,295,000

20,977,406

c

NCCD-Napa

Valley

Properties

LLC

,

Revenue

,

144A,

2022

B

,

7.75 %

,

7/01/30

.....

2,405,000

2,399,429

c

NCCD-Napa

Valley

Properties

LLC

,

Revenue,

Sub.

Lien

,

144A,

2022

C

,

6.75 %

,

7/01/60

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

7,050,000

5,076,087

NCCD-Orange

Coast

Properties

LLC

,

Revenue

,

2018

,

5.25 %

,

5/01/48

..........

225,000

227,844

NCCD-Orange

Coast

Properties

LLC

,

Revenue

,

2018

,

5.25 %

,

5/01/53

..........

7,785,000

7,860,182

c

California

Community

Housing

Agency

,

Annadel

Apartments

,

Revenue

,

144A,

2019

A

,

%

,

4/01/49

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

27,050,000

21,956,001

Brio

Apartments

&

Next

on

Lex

Apartments

,

Revenue,

Sub.

Lien

,

144A,

2021

,

%

,

8/01/47

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

9,265,000

7,482,411

Exchange

at

Bayfront

Apartments

,

Revenue,

Junior

Lien

,

144A,

2021

,

%

,

8/01/51

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

13,000,000

5,846,025

Mira

Vista

Hills

Apartments

,

Revenue

,

144A,

2021

A

,

%

,

2/01/56

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

18,800,000

9,274,119

Serenity

at

Larkspur

Apartments

,

Revenue

,

144A,

2020

A

,

%

,

2/01/50

.........

22,525,000

17,231,625

Summit

at

Sausalito

Apartments

,

Revenue

,

144A,

2021

,

%

,

2/01/50

........

10,000,000

7,557,629

Twin

Creek

Apartments

,

Revenue,

Junior

Lien

,

144A,

2022

B

,

5.5 %

,

2/01/40

.....

7,475,000

6,738,040

Verdant

at

Green

Valley

Apartments

,

Revenue

,

144A,

2019

A

,

%

,

8/01/49

.......

15,000,000

14,114,559

California

County

Tobacco

Securitization

Agency

,

Merced

County

Tobacco

Funding

Corp.

,

Revenue

,

2020

B

,

Refunding

,

%

,

6/01/50

3,000,000

2,830,607

f

Sonoma

County

Securitization

Corp.

,

Revenue

,

2020

,

Refunding

,

5.58 %,

6/01/55

10,000,000

2,039,822

California

Educational

Facilities

Authority

,

Art

Center

College

of

Design

,

Revenue

,

2018

A

,

Refunding

,

%

,

12/01/37

.......

1,265,000

1,309,543

Art

Center

College

of

Design

,

Revenue

,

2018

A

,

Refunding

,

%

,

12/01/38

.......

1,125,000

1,161,406

Art

Center

College

of

Design

,

Revenue

,

2018

A

,

Refunding

,

%

,

12/01/44

.......

10,375,000

10,507,088

Leland

Stanford

Junior

University

(The)

,

Revenue

,

,

%

,

3/15/39

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

4,185,000

5,287,221

Leland

Stanford

Junior

University

(The)

,

Revenue

,

,

%

,

6/01/43

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

5,815,000

7,167,866

g

University

of

Southern

California

,

Revenue

,

2025

A

,

%

,

10/01/55

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

15,000,000

15,940,174

California

Enterprise

Development

Authority

,

Castilleja

School

Foundation

,

Revenue

,

2024

,

%

,

6/01/54

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

10,000,000

9,252,132

c

Real

Journey

Academies

Obligated

Group

,

Revenue

,

144A,

2024

A

,

%

,

6/01/54

..

2,000,000

1,973,519

c

Rocklin

Academy

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/36

250,000

251,245

c

Rocklin

Academy

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/51

630,000

533,752

c

Rocklin

Academy

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/61

845,000

693,519

c

Rocklin

Academy

Obligated

Group

,

Revenue

,

144A,

2024

,

%

,

6/01/54

.........

1,400,000

1,384,255

c

Rocklin

Academy

Obligated

Group

,

Revenue

,

144A,

2024

,

%

,

6/01/64

.........

1,350,000

1,309,505

California

Health

Facilities

Financing

Authority

,

Adventist

Health

System/West

Obligated

Group

,

Revenue

,

2016

A

,

Refunding

,

%

,

3/01/39

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

8,190,000

8,189,827

Adventist

Health

System/West

Obligated

Group

,

Revenue

,

2024

A

,

5.25 %

,

12/01/43

4,980,000

5,384,354

Adventist

Health

System/West

Obligated

Group

,

Revenue

,

2024

A

,

5.25 %

,

12/01/44

4,720,000

5,041,969

Children's

Hospital

Los

Angeles

Obligated

Group

,

Revenue

,

2017

A

,

Refunding

,

%

,

8/15/49

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

3,375,000

2,834,237

CommonSpirit

Health

Obligated

Group

,

Revenue

,

2024

A

,

5.25 %

,

12/01/49

......

10,775,000

11,519,725

CommonSpirit

Health

Obligated

Group

,

Revenue

,

2024

A

,

%

,

12/01/54

.........

5,225,000

5,440,476

El

Camino

Hospital

LP

,

Revenue

,

2017

,

%

,

2/01/42

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

6,500,000

6,535,797

El

Camino

Hospital

LP

,

Revenue

,

2017

,

%

,

2/01/42

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

5,000,000

5,098,014

Kaiser

Foundation

Hospitals

,

Revenue

,

2017

,

%

,

11/01/47

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

21,565,000

24,313,151

Kaiser

Foundation

Hospitals

,

Revenue

,

,

BAM

Insured

,

%

,

11/01/47

........

10,000,000

11,573,026

Sutter

Health

Obligated

Group

,

Revenue

,

2018

A

,

%

,

11/15/48

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

12,485,000

12,628,912

California

Housing

Finance

Agency

,

Revenue

,

2019-2

,

A

,

%

,

3/20/33

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

47,610

49,593

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Housing

Finance

Agency,

(continued)

c,e

De

Haro

Venture

LP

,

Revenue

,

144A,

2025

P-S

,

Mandatory

Put

,

%

,

1/01/44

.

$

16,970,000

$

17,289,739

c

Redwood

Gardens

Renewal

LP

,

Revenue

,

144A,

2021

N-S

,

%

,

3/01/37

........

3,165,000

2,875,472

c,e

Shermanair

Apartments

Owner

LP

,

Revenue

,

144A,

2021

Q-S

,

Mandatory

Put

,

4.5 %

,

9/01/36

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

4,000,000

3,690,911

California

Infrastructure

&

Economic

Development

Bank

,

c,e

Desertxpress

Enterprises

LLC

,

Revenue

,

144A,

2025

B

,

Refunding

,

Mandatory

Put

,

%

,

11/02/26

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

3,745,000

2,022,300

Equitable

School

Revolving

Fund

LLC

Obligated

Group

,

Revenue

,

2024

B

,

%

,

11/01/49

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

250,000

260,532

Equitable

School

Revolving

Fund

LLC

Obligated

Group

,

Revenue

,

2024

B

,

%

,

11/01/54

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

3,000,000

3,092,372

Equitable

School

Revolving

Fund

LLC

Obligated

Group

,

Revenue

,

2024

B

,

%

,

11/01/59

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

1,000,000

1,026,781

c

Goodwill

Industries

of

Sacramento

Valley

&

Northern

Nevada,

Inc.

,

Revenue

,

144A,

2016

A

,

%

,

1/01/47

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

10,360,000

8,143,109

c

La

Scuola

International

School

,

Revenue

,

144A,

2024

,

%

,

7/01/44

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

1,375,000

1,374,296

c

La

Scuola

International

School

,

Revenue

,

144A,

2024

,

5.125 %

,

7/01/54

.........

1,630,000

1,540,522

c

La

Scuola

International

School

,

Revenue

,

144A,

2024

,

5.25 %

,

7/01/64

..........

3,075,000

2,905,465

Roseville

Sustainable

Energy

Partner

LLC

,

Revenue

,

2024

A

,

5.25 %

,

7/01/49

....

6,000,000

6,166,592

c

WFCS

Holdings

II

LLC

,

Revenue

,

144A,

2021

,

%

,

1/01/56

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

1,600,000

1,403,206

c

WFCS

Holdings

LLC

,

Revenue

,

144A,

2020

,

%

,

1/01/55

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

2,300,000

2,038,878

California

Municipal

Finance

Authority

,

a

%

,

12/01/42

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

8,300,000

8,398,643

c,e

Revenue

,

144A,

2023

,

Mandatory

Put

,

%

,

4/01/33

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

20,770,000

20,753,590

c,e

Revenue

,

144A,

2023

,

Mandatory

Put

,

%

,

4/01/33

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

13,825,000

13,776,086

c,e

Revenue

,

144A,

2025

A-S

,

Mandatory

Put

,

8.125 %

,

8/01/44

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

3,300,000

3,330,776

c

Revenue

,

144A,

2025

B

,

7.375 %

,

8/01/37

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

7,900,000

8,336,655

Revenue

,

2025

B

,

7.1 %

,

12/01/37

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

3,875,000

3,979,349

c

Revenue

,

144A,

2023

,

II

,

%

,

7/01/51

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

12,655,000

12,417,685

c,h

Revenue,

Sub.

Lien

,

144A,

FRN

,

2025-1

,

B

,

3.537 %

,

6/20/49

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

4,500,000

2,879,330

Special

Tax

,

2024

D

,

%

,

9/01/54

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

1,000,000

1,008,621

Special

Tax

,

2025

B

,

5.125 %

,

9/01/55

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

1,825,000

1,853,485

Special

Tax

,

2025

D

,

%

,

9/01/45

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

950,000

979,190

Special

Tax

,

2025

D

,

%

,

9/01/50

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

1,455,000

1,468,621

d

1717

University

Associates

LLC

,

Revenue

,

2020

A-S

,

%

,

9/01/57

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

1,175,000

875,313

c,e

4252

Crenshaw

Preservation

LLC

,

Revenue

,

144A,

2025

,

Mandatory

Put

,

7.5 %

,

6/01/36

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

5,715,000

5,645,698

c,e

4252

Crenshaw

Preservation

LLC

,

Revenue

,

144A,

2025

,

Mandatory

Put

,

%

,

6/01/36

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

1,835,000

1,844,216

e

5435

Balboa

LP

,

Revenue

,

2025

A-S

,

Mandatory

Put

,

%

,

3/01/44

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

4,000,000

4,133,818

ACI

Royal

York,

Inc.

,

Revenue

,

2020

A

,

%

,

2/15/55

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

2,375,000

1,939,288

American

Heritage/Escondido/Heritage

Charter

School

Obligated

Group

,

Revenue

,

2016

A

,

Refunding

,

%

,

6/01/36

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

3,000,000

3,009,187

BOLD

Program

,

Special

Tax

,

2022

B

,

Refunding

,

%

,

9/01/52

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

2,920,000

3,096,101

BOLD

Program

,

Special

Tax

,

2022

B

,

Refunding

,

6.3 %

,

9/01/52

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

1,205,000

1,289,162

BOLD

Program

,

Special

Tax

,

2022

C

,

6.25 %

,

9/01/52

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

4,030,000

4,305,066

BOLD

Program

,

Special

Tax

,

2022

D

,

6.125 %

,

9/01/52

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

6,885,000

7,327,580

BOLD

Program

,

Special

Tax

,

2023

A

,

5.5 %

,

9/01/53

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

3,000,000

3,147,934

BOLD

Program

,

Special

Tax

,

2023

C

,

5.25 %

,

9/01/53

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

1,300,000

1,333,868

BOLD

Program

,

Special

Tax

,

2024

A

,

%

,

9/01/39

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

275,000

293,106

BOLD

Program

,

Special

Tax

,

2024

A

,

%

,

9/01/44

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

625,000

649,155

BOLD

Program

,

Special

Tax

,

2024

A

,

%

,

9/01/48

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

300,000

306,273

BOLD

Program

,

Special

Tax

,

2024

A

,

5.125 %

,

9/01/54

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

1,000,000

1,015,551

BOLD

Program

,

Special

Tax

,

2024

B

,

%

,

9/01/44

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

940,000

973,594

BOLD

Program

,

Special

Tax

,

2024

B

,

%

,

9/01/49

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

1,070,000

1,080,411

BOLD

Program

,

Special

Tax

,

2024

B

,

%

,

9/01/54

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

1,250,000

1,255,595

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Municipal

Finance

Authority,

(continued)

BOLD

Program

,

Special

Tax

,

2025

D

,

%

,

9/01/55

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

$

2,000,000

$

2,003,263

Bowles

Hall

Foundation

,

Revenue

,

2015

A

,

%

,

6/01/35

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

600,000

600,666

Bowles

Hall

Foundation

,

Revenue

,

2015

A

,

%

,

6/01/50

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

3,250,000

3,250,183

c

California

Baptist

University

,

Revenue

,

144A,

2015

A

,

5.375 %

,

11/01/40

.........

5,000,000

5,003,575

c

California

Baptist

University

,

Revenue

,

144A,

2015

A

,

5.5 %

,

11/01/45

...........

10,000,000

10,002,220

c

California

Baptist

University

,

Revenue

,

144A,

2016

A

,

%

,

11/01/36

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

2,500,000

2,510,340

c

California

Baptist

University

,

Revenue

,

144A,

2025

A

,

Refunding

,

%

,

11/01/35

...

2,250,000

2,429,030

c

California

Baptist

University

,

Revenue

,

144A,

2025

A

,

Refunding

,

5.125 %

,

11/01/40

1,350,000

1,442,483

c

California

Baptist

University

,

Revenue

,

144A,

2025

A

,

Refunding

,

5.375 %

,

11/01/45

775,000

804,833

c

California

Baptist

University

,

Revenue

,

144A,

2025

A

,

Refunding

,

5.625 %

,

11/01/54

1,000,000

1,026,885

c

Capital

Christian

Center

,

Revenue

,

144A,

2021

A

,

%

,

10/01/51

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

8,425,000

7,053,379

c

Capital

Christian

Center

,

Revenue

,

144A,

2021

B

,

Refunding

,

%

,

10/01/37

......

7,645,000

6,688,238

c

CHF-Aptos

LLC

,

Revenue

,

144A,

2025

A

,

5.375 %

,

7/01/50

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

10,000,000

10,084,963

c

CHF-Aptos

LLC

,

Revenue

,

144A,

2025

A

,

5.5 %

,

7/01/57

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

10,000,000

10,115,198

c

CHF-Aptos

LLC

,

Revenue

,

144A,

2025

B

,

7.5 %

,

7/01/57

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

1,250,000

1,263,949

CHF-Davis

I

LLC

,

Revenue

,

2018

,

%

,

5/15/51

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

5,000,000

5,013,379

CHF-Davis

II

LLC

,

Revenue

,

2021

,

BAM

Insured

,

%

,

5/15/51

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

550,000

418,058

CHF-Riverside

I

LLC

,

Revenue

,

2018

,

%

,

5/15/40

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

1,500,000

1,538,568

CHF-Riverside

II

LLC

,

Revenue

,

2019

,

%

,

5/15/49

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

9,575,000

9,584,269

City

of

Chula

Vista

Community

Facilities

District

No.

2021-11

,

Special

Tax

,

2022

,

%

,

9/01/52

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

2,500,000

2,534,671

City

of

Hesperia

Community

Facilities

District

No.

2023-11

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.125 %

,

9/01/55

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

1,000,000

1,015,608

c

Claremont

Graduate

University

,

Revenue

,

144A,

2020

B

,

Refunding

,

%

,

10/01/39

.

1,120,000

1,137,844

c

Claremont

Graduate

University

,

Revenue

,

144A,

2020

B

,

Refunding

,

%

,

10/01/49

.

4,290,000

4,064,309

c

Claremont

Graduate

University

,

Revenue

,

144A,

2020

B

,

Refunding

,

%

,

10/01/54

.

1,875,000

1,739,903

Community

Facilities

District

No.

2021-13

,

Special

Tax

,

2022

,

%

,

9/01/42

.......

1,000,000

1,052,037

Community

Facilities

District

No.

2021-13

,

Special

Tax

,

2022

,

%

,

9/01/52

.......

5,150,000

5,207,077

Community

Facilities

District

No.

2021-6

Improvement

Area

No.

,

Special

Tax

,

2022

,

%

,

9/01/52

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

4,350,000

4,612,343

Community

Facilities

District

No.

2022-6

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/45

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

600,000

628,933

Community

Facilities

District

No.

2022-6

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.375 %

,

9/01/50

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

1,000,000

1,043,006

Community

Facilities

District

No.

2022-6

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.375 %

,

9/01/55

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

1,300,000

1,352,633

Community

Facilities

District

No.

2022-8

,

Special

Tax

,

2024

,

%

,

9/01/44

........

500,000

520,738

Community

Facilities

District

No.

2022-8

,

Special

Tax

,

2024

,

%

,

9/01/49

........

500,000

504,865

Community

Facilities

District

No.

2022-8

,

Special

Tax

,

2024

,

%

,

9/01/54

........

1,570,000

1,585,711

Community

Facilities

District

No.

2023-11

Improvement

Area

A

,

Special

Tax

,

2024

,

%

,

9/01/44

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

500,000

517,869

Community

Facilities

District

No.

2023-11

Improvement

Area

A

,

Special

Tax

,

2024

,

%

,

9/01/49

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

800,000

803,361

Community

Facilities

District

No.

2023-11

Improvement

Area

A

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,125,000

1,119,099

Community

Facilities

District

No.

2023-11

Improvement

Area

A

,

Special

Tax

,

2024

,

5.125 %

,

9/01/59

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

1,550,000

1,548,569

Community

Facilities

District

No.

2023-11

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/60

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

1,000,000

1,007,398

Community

Facilities

District

No.

2023-5

Area

No.

,

Special

Tax

,

2023

,

5.5 %

,

9/01/48

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

600,000

635,232

Community

Facilities

District

No.

2023-5

Area

No.

,

Special

Tax

,

2023

,

5.625 %

,

9/01/53

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

1,060,000

1,113,729

Community

Facilities

District

No.

2023-5

Area

No.

,

Special

Tax

,

2023

,

5.8 %

,

9/01/53

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

3,190,000

3,386,483

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Municipal

Finance

Authority,

(continued)

Community

Facilities

District

No.

2023-5

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/44

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

$

1,210,000

$

1,261,056

Community

Facilities

District

No.

2023-5

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/49

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

1,835,000

1,865,631

Community

Facilities

District

No.

2023-5

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

2,165,000

2,183,664

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/45

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

1,535,000

1,609,021

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/50

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

2,965,000

2,965,960

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/55

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

3,245,000

3,230,997

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.375 %

,

9/01/55

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

7,000,000

7,283,408

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

%

,

9/01/50

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

1,415,000

1,415,458

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

%

,

9/01/55

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

1,500,000

1,484,422

Community

Facilities

District

No.

2025-9

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

5.125 %

,

9/01/55

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

355,000

354,291

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/26

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

200,000

201,234

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/27

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

100,000

103,050

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/29

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

50,000

53,623

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/31

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

130,000

141,000

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/36

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

350,000

372,199

c

Community

Health

Centers

of

The

Central

Coast,

Inc.

,

Revenue

,

144A,

2021

A

,

%

,

12/01/54

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

2,000,000

2,004,464

Community

Hospitals

of

Central

California

Obligated

Group

,

Revenue

,

2017

A

,

Refunding

,

%

,

2/01/42

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

10,000,000

9,977,746

Congregational

Homes,

Inc.

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

%

,

11/15/39

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

2,670,000

2,769,455

Congregational

Homes,

Inc.

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

%

,

11/15/49

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

480,000

480,888

c

Creative

Center

of

Los

Altos

(The)

,

Revenue

,

144A,

2016

B

,

%

,

11/01/36

.......

1,395,000

1,396,463

c

Creative

Center

of

Los

Altos

(The)

,

Revenue

,

144A,

2016

B

,

4.5 %

,

11/01/46

......

1,600,000

1,522,219

Del

Harbor

Foundation

,

Revenue

,

2015

,

Refunding

,

%

,

11/01/32

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

3,020,000

3,024,869

Del

Harbor

Foundation

,

Revenue

,

2015

,

Refunding

,

%

,

11/01/39

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

6,525,000

6,532,792

Eisenhower

Medical

Center

,

Revenue

,

2017

A

,

Refunding

,

%

,

7/01/37

.........

1,625,000

1,653,933

Eisenhower

Medical

Center

,

Revenue

,

2017

B

,

Refunding

,

%

,

7/01/47

.........

5,000,000

5,014,594

HumanGood

California

Obligated

Group

,

Revenue

,

2019

A

,

Refunding

,

%

,

10/01/44

5,500,000

5,523,232

HumanGood

California

Obligated

Group

,

Revenue

,

2021

,

%

,

10/01/49

.........

5,000,000

3,773,230

Ignatian

Corp.

(The)

,

Revenue

,

2024

A

,

%

,

9/01/49

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

600,000

631,427

Ignatian

Corp.

(The)

,

Revenue

,

2024

A

,

%

,

9/01/54

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

9,060,000

9,523,992

c,f

IH

Parkside

Fairfield

LLC

,

Revenue,

Sub.

Lien

,

144A,

2023

B

,

2.617 %,

9/01/43

...

20,710,000

16,432,269

Inland

Counties

Regional

Center,

Inc.

,

Revenue

,

2015

,

Refunding

,

%

,

6/15/37

...

8,965,000

8,972,802

Integrity

Housing

Obligated

Group

,

Revenue

,

2022

,

4.25 %

,

12/01/37

........

16,700,000

14,071,894

Integrity

Housing

Obligated

Group

,

Revenue

,

2022

B

,

%

,

12/01/62

...........

7,000,000

3,877,359

c

King/Chavez

Facilities

LLC

,

Revenue

,

144A,

2016

A

,

Refunding

,

%

,

5/01/36

.....

1,815,000

1,815,159

c

King/Chavez

Facilities

LLC

,

Revenue

,

144A,

2016

A

,

Refunding

,

%

,

5/01/46

.....

2,775,000

2,676,279

LAX

Integrated

Express

Solutions

LLC

,

Revenue,

Senior

Lien

,

2018

A

,

%

,

12/31/43

13,915,000

14,149,434

LAX

Integrated

Express

Solutions

LLC

,

Revenue,

Senior

Lien

,

2018

A

,

%

,

12/31/47

6,085,000

5,479,577

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Municipal

Finance

Authority,

(continued)

LAX

Integrated

Express

Solutions

LLC

,

Revenue,

Senior

Lien

,

2018

A

,

%

,

12/31/47

$

22,250,000

$

22,371,783

Learning

Choice

Academy

Obligated

Group

(The)

,

Revenue

,

2025

A

,

5.7 %

,

7/01/55

3,000,000

2,992,005

Literacy

First

Charter

School

Issuer

LLC

,

Revenue

,

2019

A

,

%

,

12/01/49

.......

4,165,000

4,190,278

Northbay

Healthcare

Corp.

Obligated

Group

,

Revenue

,

2015

,

%

,

11/01/35

......

1,100,000

1,100,520

Northbay

Healthcare

Group

Obligated

Group

,

Revenue

,

2015

,

%

,

11/01/44

......

1,050,000

1,050,000

Northbay

Healthcare

Group

Obligated

Group

,

Revenue

,

2017

A

,

5.25 %

,

11/01/47

..

3,000,000

3,001,018

c

P3

Claremont

Holdings

LLC

,

Revenue

,

144A,

2020

A

,

%

,

7/01/30

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

520,000

535,979

c

Palmdale

Aerospace

Academy,

Inc.

(The)

,

Revenue

,

144A,

2016

A

,

%

,

7/01/36

..

2,750,000

2,755,069

c

Palmdale

Aerospace

Academy,

Inc.

(The)

,

Revenue

,

144A,

2016

A

,

%

,

7/01/41

..

1,750,000

1,751,036

c

Palmdale

Aerospace

Academy,

Inc.

(The)

,

Revenue

,

144A,

2018

A

,

3.875 %

,

7/01/28

600,000

597,224

c

Palmdale

Aerospace

Academy,

Inc.

(The)

,

Revenue

,

144A,

2018

A

,

%

,

7/01/38

..

1,100,000

1,113,880

c

Palmdale

Aerospace

Academy,

Inc.

(The)

,

Revenue

,

144A,

2018

A

,

%

,

7/01/49

..

3,600,000

3,430,646

Porter

1107

LLC

,

Revenue

,

2025

B

,

7.2 %

,

11/01/37

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

12,950,000

13,434,346

PRS-California

Obligated

Group

,

Revenue

,

2024

A

,

Refunding

,

%

,

4/01/44

......

2,830,000

3,002,809

PRS-California

Obligated

Group

,

Revenue

,

2024

A

,

Refunding

,

%

,

4/01/49

......

1,500,000

1,542,583

c

Santa

Rosa

Academy

LLC

,

Revenue

,

144A,

2015

,

5.125 %

,

7/01/35

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

450,000

450,228

c

Santa

Rosa

Academy

LLC

,

Revenue

,

144A,

2015

,

5.375 %

,

7/01/45

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

1,400,000

1,384,652

Scripps

College

,

Revenue

,

2025

,

%

,

7/01/55

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

3,320,000

3,463,609

c

Sierra

Ridge

3600

LLC

,

Revenue

,

144A,

2024

B

,

6.75 %

,

11/01/39

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

11,012,000

11,236,439

c

St.

Mary

and

All

Angels

Christian

Church

,

Revenue

,

144A,

2024

A

,

%

,

5/01/34

...

300,000

315,469

c

St.

Mary

and

All

Angels

Christian

Church

,

Revenue

,

144A,

2024

A

,

5.5 %

,

5/01/44

..

510,000

523,134

c

St.

Mary

and

All

Angels

Christian

Church

,

Revenue

,

144A,

2024

A

,

5.75 %

,

5/01/54

.

510,000

515,684

c

St.

Mary

and

All

Angels

Christian

Church

,

Revenue

,

144A,

2024

A

,

5.875 %

,

5/01/59

700,000

710,957

St.

Mary

and

All

Angels

Christian

Church

,

Revenue

,

2024

B

,

4.65 %

,

5/01/30

.....

420,000

435,589

c

STREAM

Charter

School

,

Revenue

,

144A,

2020

A

,

%

,

6/15/41

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

925,000

927,723

c

STREAM

Charter

School

,

Revenue

,

144A,

2020

A

,

%

,

6/15/51

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

2,770,000

2,550,264

c

STREAM

Charter

School

,

Revenue

,

144A,

2020

B

,

6.4 %

,

6/15/32

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

660,000

661,954

c

Westside

Neighborhood

School

,

Revenue

,

144A,

2024

,

%

,

6/15/34

...........

500,000

538,248

c

Westside

Neighborhood

School

,

Revenue

,

144A,

2024

,

5.5 %

,

6/15/39

..........

655,000

706,423

c

Westside

Neighborhood

School

,

Revenue

,

144A,

2024

,

5.9 %

,

6/15/44

..........

1,635,000

1,752,231

c

Westside

Neighborhood

School

,

Revenue

,

144A,

2024

,

6.2 %

,

6/15/54

..........

2,900,000

3,054,234

c

Westside

Neighborhood

School

,

Revenue

,

144A,

2024

,

6.375 %

,

6/15/64

........

3,000,000

3,172,284

c

California

Pollution

Control

Financing

Authority

,

a,d

CalPlant

I

LLC

,

Revenue

,

144A,

2017

,

%

,

7/01/22

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

3,500,000

a,d

CalPlant

I

LLC

,

Revenue

,

144A,

2017

,

7.5 %

,

7/01/32

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

13,000,000

a,d

CalPlant

I

LLC

,

Revenue

,

144A,

2017

,

%

,

7/01/39

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

11,500,000

a,d

CalPlant

I

LLC

,

Revenue

,

144A,

2020

,

7.5 %

,

7/01/32

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

4,500,000

Channelside

Water

Resources

LP

,

Revenue

,

144A,

2012

,

%

,

11/21/45

.........

21,685,000

21,713,091

California

Public

Finance

Authority

,

c

Crossroads

Christian

Schools

Obligated

Group

,

Revenue

,

144A,

2020

,

%

,

1/01/56

4,015,000

3,572,601

c

Ed

Brokers

Educational

Services

,

Revenue

,

144A,

2025

A

,

5.625 %

,

6/15/55

......

1,200,000

1,214,398

c

Ed

Brokers

Educational

Services

,

Revenue

,

144A,

2025

A

,

%

,

6/15/65

.........

5,000,000

5,132,691

Henry

Mayo

Newhall

Hospital

Obligated

Group

,

Revenue

,

2017

,

Refunding

,

%

,

10/15/37

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

1,100,000

1,106,914

c

Kendal

at

Sonoma

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

11/15/36

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

1,000,000

1,031,552

c

Kendal

at

Sonoma

Obligated

Group

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

11/15/56

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

2,135,000

1,913,504

c

California

School

Finance

Authority

,

Revenue

,

144A,

2017

,

%

,

6/01/47

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

700,000

666,145

Alliance

for

College

Ready

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2016

C

,

%

,

7/01/46

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

10,000,000

10,005,128

Alternative

Schools,

Inc.

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/41

.......

500,000

417,993

Alternative

Schools,

Inc.

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/51

.......

2,835,000

2,022,164

Alternative

Schools,

Inc.

,

Revenue

,

144A,

2021

A

,

Refunding

,

%

,

6/01/61

.......

3,675,000

2,446,001

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

c

California

School

Finance

Authority,

(continued)

Aspire

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2015

,

Refunding

,

%

,

8/01/40

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

$

1,000,000

$

1,000,347

Aspire

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2016

,

%

,

8/01/41

......

2,010,000

2,010,609

Citizens

of

the

World

Los

Angeles

Obligated

Group

,

Revenue

,

144A,

2022

A

,

6.25 %

,

4/01/52

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

2,000,000

2,013,392

Citizens

of

the

World

Los

Angeles

Obligated

Group

,

Revenue

,

144A,

2022

A

,

6.375 %

,

4/01/62

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

2,000,000

2,013,711

Classical

Academy

Obligated

Group

,

Revenue

,

144A,

2017

A

,

Refunding

,

%

,

10/01/37

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

1,485,000

1,509,734

Classical

Academy

Obligated

Group

,

Revenue

,

144A,

2017

A

,

Refunding

,

%

,

10/01/44

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

5,610,000

5,640,270

Classical

Academy

Obligated

Group

,

Revenue

,

144A,

2020

A

,

%

,

10/01/40

.....

500,000

509,699

Classical

Academy

Obligated

Group

,

Revenue

,

144A,

2020

A

,

%

,

10/01/50

.....

3,570,000

3,502,663

Ednovate

Obligated

Group

,

Revenue

,

144A,

2018

,

%

,

6/01/48

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

1,000,000

924,444

Ednovate

Obligated

Group

,

Revenue

,

144A,

2018

,

%

,

6/01/56

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

1,710,000

1,517,929

Envision

Education

Obligated

Group

,

Revenue

,

144A,

2024

A

,

%

,

6/01/54

......

900,000

828,731

Fenton

Charter

Public

Schools

,

Revenue

,

144A,

2020

A

,

%

,

7/01/40

...........

225,000

225,839

Fenton

Charter

Public

Schools

,

Revenue

,

144A,

2020

A

,

%

,

7/01/50

...........

1,275,000

1,171,149

Granada

Hills

Charter

High

School

Obligated

Group

,

Revenue

,

144A,

2019

,

%

,

7/01/43

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

1,000,000

1,000,881

Granada

Hills

Charter

High

School

Obligated

Group

,

Revenue

,

144A,

2019

,

%

,

7/01/49

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

5,750,000

5,641,793

Green

Dot

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2015

A

,

%

,

8/01/35

.

2,525,000

2,527,205

Green

Dot

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2015

A

,

%

,

8/01/45

.

3,500,000

3,500,276

Green

Dot

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2018

A

,

%

,

8/01/38

.

1,000,000

1,024,244

Green

Dot

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2018

A

,

%

,

8/01/48

.

1,750,000

1,753,617

Harbor

Springs

Obligated

Group

,

Revenue

,

144A,

2024

A

,

5.5 %

,

7/01/54

........

2,235,000

2,271,986

iLEAD

Lancaster

,

Revenue

,

144A,

2021

A

,

%

,

6/01/31

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

250,000

247,989

iLEAD

Lancaster

,

Revenue

,

144A,

2021

A

,

%

,

6/01/41

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

435,000

432,010

iLEAD

Lancaster

,

Revenue

,

144A,

2021

A

,

%

,

6/01/51

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

600,000

536,886

iLEAD

Lancaster

,

Revenue

,

144A,

2021

A

,

%

,

6/01/61

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

1,320,000

1,144,370

Integrity

Charter

School

,

Revenue

,

144A,

2024

,

%

,

7/01/39

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

1,000,000

1,017,614

Integrity

Charter

School

,

Revenue

,

144A,

2024

,

5.25 %

,

7/01/44

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

800,000

800,634

Integrity

Charter

School

,

Revenue

,

144A,

2024

,

5.5 %

,

7/01/54

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

1,600,000

1,537,896

John

Adams

Academies

Obligated

Group

,

Revenue

,

144A,

2022

A

,

4.5 %

,

7/01/32

.

595,000

618,454

John

Adams

Academies

Obligated

Group

,

Revenue

,

144A,

2022

A

,

%

,

7/01/42

...

2,140,000

2,175,240

John

Adams

Academies

Obligated

Group

,

Revenue

,

144A,

2022

A

,

%

,

7/01/52

...

3,175,000

2,991,623

John

Adams

Academies

Obligated

Group

,

Revenue

,

144A,

2022

A

,

5.125 %

,

7/01/62

8,125,000

7,562,834

KIPP

SoCal

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2015

A

,

%

,

7/01/35

1,200,000

1,201,209

KIPP

SoCal

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2015

A

,

%

,

7/01/45

1,675,000

1,675,225

KIPP

SoCal

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2019

A

,

%

,

7/01/49

2,150,000

2,155,154

KIPP

SoCal

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2019

A

,

%

,

7/01/54

1,150,000

1,140,475

Larchmont

Schools

,

Revenue

,

144A,

2018

A

,

%

,

6/01/55

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

3,050,000

2,807,857

Lifeline

Education

Charter

School,

Inc.

,

Revenue

,

144A,

2020

A

,

%

,

7/01/30

.....

285,000

278,166

Lifeline

Education

Charter

School,

Inc.

,

Revenue

,

144A,

2020

A

,

%

,

7/01/45

.....

1,200,000

1,197,429

Lifeline

Education

Charter

School,

Inc.

,

Revenue

,

144A,

2020

A

,

%

,

7/01/55

.....

1,235,000

1,179,643

Lighthouse

Community

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2022

A

,

6.375 %

,

6/01/52

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

1,250,000

1,291,637

Lighthouse

Community

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2022

A

,

6.5 %

,

6/01/62

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

1,500,000

1,550,165

NCCD-Santa

Rosa

Properties

LLC

,

Revenue

,

144A,

2021

A

,

%

,

11/01/31

.......

1,000,000

1,017,501

NCCD-Santa

Rosa

Properties

LLC

,

Revenue

,

144A,

2021

A

,

%

,

11/01/36

.......

1,670,000

1,661,031

NCCD-Santa

Rosa

Properties

LLC

,

Revenue

,

144A,

2021

A

,

%

,

11/01/51

.......

16,730,000

13,799,259

NCCD-Santa

Rosa

Properties

LLC

,

Revenue

,

144A,

2021

A

,

%

,

11/01/55

.......

1,400,000

1,129,900

New

Designs

Charter

School

,

Revenue

,

144A,

2024

A

,

Refunding

,

%

,

6/01/54

...

650,000

622,619

New

Designs

Charter

School

,

Revenue

,

144A,

2024

A

,

Refunding

,

%

,

6/01/64

...

1,600,000

1,499,115

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

c

California

School

Finance

Authority,

(continued)

Orange

County

Educational

Arts

Academy

,

Revenue

,

144A,

2023

A

,

Refunding

,

%

,

6/01/33

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

$

650,000

$

674,754

Orange

County

Educational

Arts

Academy

,

Revenue

,

144A,

2023

A

,

Refunding

,

5.625 %

,

6/01/43

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

560,000

571,607

Orange

County

Educational

Arts

Academy

,

Revenue

,

144A,

2023

A

,

Refunding

,

5.875 %

,

6/01/53

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

600,000

604,635

Partnerships

to

Uplift

Communities

Obligated

Group

,

Revenue

,

144A,

2023

,

Refunding

,

%

,

8/01/33

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

620,000

650,136

Partnerships

to

Uplift

Communities

Obligated

Group

,

Revenue

,

144A,

2023

,

Refunding

,

5.25 %

,

8/01/38

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

500,000

527,586

Partnerships

to

Uplift

Communities

Obligated

Group

,

Revenue

,

144A,

2023

,

Refunding

,

5.5 %

,

8/01/43

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

550,000

574,023

Partnerships

to

Uplift

Communities

Obligated

Group

,

Revenue

,

144A,

2023

,

Refunding

,

5.5 %

,

8/01/47

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

525,000

534,692

Real

Journey

Academies

Obligated

Group

,

Revenue

,

144A,

2019

A

,

%

,

6/01/49

..

7,105,000

6,969,380

Rex

&

Margaret

Fortune

School

of

Education

,

Revenue

,

144A,

2024

A

,

%

,

6/01/44

2,000,000

1,950,627

Rex

&

Margaret

Fortune

School

of

Education

,

Revenue

,

144A,

2024

A

,

%

,

6/01/54

2,350,000

2,139,058

Rex

&

Margaret

Fortune

School

of

Education

,

Revenue

,

144A,

2024

A

,

5.125 %

,

6/01/59

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

1,500,000

1,373,876

River

Springs

Charter

School,

Inc.

,

Revenue

,

144A,

2017

A

,

%

,

7/01/30

........

1,000,000

1,022,404

River

Springs

Charter

School,

Inc.

,

Revenue

,

144A,

2017

A

,

%

,

7/01/37

........

2,000,000

2,023,563

River

Springs

Charter

School,

Inc.

,

Revenue

,

144A,

2017

A

,

%

,

7/01/47

........

1,975,000

1,944,296

River

Springs

Charter

School,

Inc.

,

Revenue

,

144A,

2017

A

,

%

,

7/01/52

........

1,340,000

1,280,696

River

Springs

Charter

School,

Inc.

,

Revenue

,

144A,

2023

A

,

5.75 %

,

7/01/42

......

960,000

1,014,146

Rocketship

Education

Obligated

Group

,

Revenue

,

144A,

2017

A

,

%

,

6/01/34

....

750,000

751,986

Rocketship

Education

Obligated

Group

,

Revenue

,

144A,

2017

A

,

5.125 %

,

6/01/47

.

845,000

819,483

Rocketship

Education

Obligated

Group

,

Revenue

,

144A,

2017

A

,

5.25 %

,

6/01/52

..

2,440,000

2,331,912

Rocketship

Education

Obligated

Group

,

Revenue

,

144A,

2017

G

,

%

,

6/01/30

....

275,000

279,317

Rocketship

Education

Obligated

Group

,

Revenue

,

144A,

2017

G

,

%

,

6/01/37

....

360,000

362,278

Santa

Clarita

Valley

International

Charter

School

,

Revenue

,

144A,

2021

A

,

%

,

6/01/31

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

260,000

203,110

Santa

Clarita

Valley

International

Charter

School

,

Revenue

,

144A,

2021

A

,

%

,

6/01/41

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

600,000

445,533

Santa

Clarita

Valley

International

Charter

School

,

Revenue

,

144A,

2021

A

,

%

,

6/01/51

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

800,000

552,852

Santa

Clarita

Valley

International

Charter

School

,

Revenue

,

144A,

2021

A

,

%

,

6/01/61

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

1,300,000

840,886

Summit

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2017

,

Pre-Refunded

,

%

,

6/01/47

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

800,000

825,773

California

State

Public

Works

Board

,

Revenue

,

2025

A

,

%

,

4/01/50

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

7,500,000

8,039,180

California

Statewide

Communities

Development

Authority

,

Revenue

,

2015

,

Refunding

,

%

,

9/02/40

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

2,230,000

2,232,009

Special

Assessment

,

2016

A

,

%

,

9/02/36

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

1,035,000

1,043,783

Special

Assessment

,

2017

A

,

%

,

9/02/27

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

525,000

530,387

Special

Assessment

,

2017

A

,

%

,

9/02/37

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

1,970,000

2,016,227

Special

Assessment

,

2017

A

,

%

,

9/02/46

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

2,455,000

2,475,387

Special

Assessment

,

2017

B

,

%

,

9/02/37

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

3,260,000

3,345,159

Special

Assessment

,

2017

B

,

%

,

9/02/47

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

2,520,000

2,543,326

Special

Assessment

,

2017

C

,

%

,

9/02/37

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

2,755,000

2,781,433

Special

Assessment

,

2018

A

,

%

,

9/02/38

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

2,150,000

2,227,906

Special

Assessment

,

2018

A

,

%

,

9/02/47

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

3,745,000

3,790,945

Special

Assessment

,

2018

B

,

%

,

9/02/38

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

2,760,000

2,861,350

Special

Assessment

,

2018

B

,

%

,

9/02/43

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

4,690,000

4,791,602

Special

Assessment

,

2018

B

,

%

,

9/02/48

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

4,605,000

4,661,452

Special

Assessment

,

2018

C

,

%

,

9/02/38

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

4,995,000

5,175,995

Special

Assessment

,

2018

C

,

%

,

9/02/48

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

6,605,000

6,678,187

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Statewide

Communities

Development

Authority,

(continued)

Special

Assessment

,

2019

A

,

%

,

9/02/39

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

$

1,600,000

$

1,673,246

Special

Assessment

,

2019

A

,

%

,

9/02/44

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

940,000

963,336

Special

Assessment

,

2019

B

,

%

,

9/02/44

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

1,150,000

1,183,828

Special

Assessment

,

2019

C

,

%

,

9/02/39

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

850,000

879,576

Special

Assessment

,

2020

A

,

%

,

9/02/40

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

1,250,000

1,311,579

Special

Assessment

,

2020

A

,

%

,

9/02/50

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

900,000

776,459

Special

Assessment

,

2020

A

,

%

,

9/02/50

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

1,000,000

1,012,217

Special

Assessment

,

2020

B

,

%

,

9/02/40

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

565,000

565,030

Special

Assessment

,

2020

B

,

%

,

9/02/50

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

695,000

597,125

Special

Assessment

,

2021

A

,

%

,

9/02/41

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

995,000

977,656

Special

Assessment

,

2021

A

,

%

,

9/02/51

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

3,175,000

2,761,452

Special

Assessment

,

2021

B

,

%

,

9/02/41

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

3,280,000

3,241,294

Special

Assessment

,

2021

B

,

%

,

9/02/51

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

3,145,000

2,735,360

Special

Assessment

,

2021

,

%

,

9/02/41

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

2,435,000

2,309,665

Special

Assessment

,

2021

,

%

,

9/02/51

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

3,610,000

3,092,844

Special

Assessment

,

2021

,

%

,

9/02/41

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

3,030,000

2,653,234

Special

Assessment

,

2021

,

5.5 %

,

9/02/51

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

3,575,000

2,790,208

Special

Assessment

,

2022

B

,

%

,

9/02/42

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

3,000,000

3,149,186

Special

Assessment

,

2022

B

,

%

,

9/02/52

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

3,000,000

3,029,930

Special

Assessment

,

2022

C

,

5.375 %

,

9/02/52

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

1,990,000

2,047,722

Special

Assessment

,

2023

D

,

5.5 %

,

9/02/53

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

1,000,000

1,026,450

Special

Tax

,

2023

,

5.25 %

,

9/02/53

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

3,000,000

3,064,938

Special

Tax

,

2025

A

,

%

,

9/02/50

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

5,500,000

5,678,196

Assessment

District

No.

14-01

,

Special

Assessment

,

2015

,

Refunding

,

%

,

9/02/35

2,000,000

2,002,863

Assessment

District

No.

14-01

,

Special

Assessment

,

2015

,

%

,

9/02/45

.........

3,810,000

3,815,455

c

California

Baptist

University

,

Revenue

,

144A,

2017

A

,

Refunding

,

%

,

11/01/32

...

1,135,000

1,159,398

c

California

Baptist

University

,

Revenue

,

144A,

2017

A

,

Refunding

,

%

,

11/01/41

...

1,875,000

1,887,969

Cedars-Sinai

Medical

Center

Obligated

Group

,

Revenue

,

2018

,

%

,

7/01/48

.....

6,000,000

5,711,953

Community

Facilities

District

2022-7

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,500,000

1,524,410

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2016

A

,

%

,

9/01/46

......

10,480,000

10,504,854

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2019

,

%

,

9/01/39

.......

1,230,000

1,277,674

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2019

,

%

,

9/01/49

.......

2,000,000

2,016,649

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2020

,

%

,

9/01/40

.......

3,345,000

3,363,054

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2020

,

%

,

9/01/50

.......

2,845,000

2,487,349

Community

Facilities

District

No.

2016-02

,

Special

Tax

,

2022

,

5.5 %

,

9/01/52

......

7,475,000

7,676,244

Community

Facilities

District

No.

2018-01

,

Special

Tax

,

2019

,

%

,

9/01/39

.......

1,610,000

1,661,981

Community

Facilities

District

No.

2018-01

,

Special

Tax

,

2019

,

%

,

9/01/48

.......

2,000,000

2,021,194

Community

Facilities

District

No.

2022-08

Improvement

Area

,

Special

Tax

,

2024

,

5.25 %

,

9/01/39

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

2,360,000

2,531,060

Community

Facilities

District

No.

2022-08

Improvement

Area

,

Special

Tax

,

2024

,

5.25 %

,

9/01/45

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

2,750,000

2,830,287

Community

Facilities

District

No.

2022-12

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/44

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

2,270,000

2,372,480

Community

Facilities

District

No.

2022-12

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,350,000

1,373,221

Community

Facilities

District

No.

2023-08

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/55

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

1,700,000

1,741,091

Community

Facilities

District

No.

2024-9

,

Special

Tax

,

2024

,

%

,

9/01/44

........

400,000

418,321

Community

Facilities

District

No.

2024-9

,

Special

Tax

,

2024

,

%

,

9/01/54

........

700,000

709,925

Community

Infrastructure

Program

Assessment

District

No.

20-02

,

Special

Assessment

,

2023

,

5.75 %

,

9/02/53

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

1,875,000

1,953,537

e

Foothill

Oak

Park

Apartments

LLC

,

Revenue

,

2025

H-S-A

,

Mandatory

Put

,

7.5 %

,

3/01/36

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

3,430,000

3,485,236

John

Muir

Health

Obligated

Group

,

Revenue

,

2024

A

,

Refunding

,

5.25 %

,

12/01/54

.

10,000,000

10,704,640

c

Lancer

Educational

Housing

LLC

,

Revenue

,

144A,

2016

A

,

Refunding

,

%

,

6/01/46

12,735,000

12,627,881

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

California

Statewide

Communities

Development

Authority,

(continued)

c

Lancer

Educational

Housing

LLC

,

Revenue

,

144A,

2019

A

,

%

,

6/01/39

.........

$

950,000

$

970,591

c

Loma

Linda

University

Medical

Center

Obligated

Group

,

Revenue

,

144A,

2016

A

,

%

,

12/01/41

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

1,245,000

1,248,254

c

Loma

Linda

University

Medical

Center

Obligated

Group

,

Revenue

,

144A,

2016

A

,

5.25 %

,

12/01/56

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

45,755,000

45,779,996

c

Loma

Linda

University

Medical

Center

Obligated

Group

,

Revenue

,

144A,

2018

A

,

5.5 %

,

12/01/58

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

6,250,000

6,364,236

Marin

General

Hospital

Obligated

Group

,

Revenue

,

2018

A

,

%

,

8/01/45

........

1,500,000

1,391,218

c

NCCD-Hooper

Street

LLC

,

Revenue

,

144A,

2019

,

5.25 %

,

7/01/39

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

4,325,000

4,453,111

c

NCCD-Hooper

Street

LLC

,

Revenue

,

144A,

2019

,

5.25 %

,

7/01/49

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

8,000,000

8,034,534

c

NCCD-Hooper

Street

LLC

,

Revenue

,

144A,

2019

,

5.25 %

,

7/01/52

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

2,635,000

2,636,902

Panorama

II

Preservation

LP

,

Revenue

,

2024

F

,

FNMA

Insured

,

4.25 %

,

12/01/40

..

7,410,000

7,841,146

USC

Obligated

Group

,

Revenue

,

2018

,

Refunding

,

%

,

1/01/43

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

5,000,000

5,143,738

Central

Valley

Energy

Authority

,

Revenue

,

2026

,

%

,

8/01/34

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

2,520,000

2,772,990

Chino

Community

Facilities

District

,

City

of

Chino

Community

Facilities

District

No.

2003-3

Improvement

Area

No.

,

Special

Tax

,

2015

,

%

,

9/01/45

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

1,665,000

1,665,737

City

&

County

of

San

Francisco

,

Community

Facilities

District

No.

2016-1

Improvement

Area

No.

,

Special

Tax

,

2020

,

%

,

9/01/50

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

1,950,000

1,715,003

c

Community

Facilities

District

No.

2016-1

Improvement

Area

No.

,

Special

Tax

,

144A,

2022

A

,

%

,

9/01/52

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

5,270,000

4,542,820

c

Community

Facilities

District

No.

2016-1

Improvement

Area

No.

,

Special

Tax

,

144A,

2023

A

,

5.5 %

,

9/01/53

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

2,045,000

2,128,810

c

Infrastructure

&

Revitalization

Financing

District

No.

Facilities

Increment

,

Tax

Allocation

,

144A,

2022

A

,

%

,

9/01/37

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

385,000

411,793

c

Infrastructure

&

Revitalization

Financing

District

No.

Facilities

Increment

,

Tax

Allocation

,

144A,

2022

A

,

%

,

9/01/52

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

2,000,000

1,957,058

c

Infrastructure

&

Revitalization

Financing

District

No.

Housing

Increment

,

Tax

Allocation

,

144A,

2022

B

,

%

,

9/01/52

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

1,000,000

978,529

c

Special

Tax

District

No.

2020-1

Development

,

Special

Tax

,

144A,

2021

C

,

%

,

9/01/51

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

3,900,000

3,376,716

c

City

&

County

San

Francisco

,

Infrastructure

&

Revitalization

Financing

District

No.

,

Tax

Allocation

,

144A,

2025

A

,

%

,

9/01/46

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

1,625,000

1,637,010

Infrastructure

&

Revitalization

Financing

District

No.

,

Tax

Allocation

,

144A,

2025

A

,

%

,

9/01/55

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

2,500,000

2,455,259

City

of

Dixon

,

Community

Facilities

District

No.

2013-1

Parklane

,

Special

Tax

,

2019

,

%

,

9/01/49

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

2,400,000

2,427,684

City

of

Dublin

,

Community

Facilities

District

No.

2015-1

Improvement

Area

No.

,

Special

Tax

,

2019

,

%

,

9/01/39

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

2,765,000

2,865,312

Community

Facilities

District

No.

2015-1

Improvement

Area

No.

,

Special

Tax

,

2019

,

%

,

9/01/44

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

2,925,000

2,999,470

Community

Facilities

District

No.

2015-1

Improvement

Area

No.

,

Special

Tax

,

2019

,

%

,

9/01/49

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

4,100,000

4,155,214

City

of

El

Paso

Robles

,

Community

Facilities

District

No.

2022-1N

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/51

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

2,000,000

2,004,465

Community

Facilities

District

No.

2022-1N

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/56

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

2,115,000

2,101,725

Community

Facilities

District

No.

2022-1N

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/51

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

1,680,000

1,683,751

Community

Facilities

District

No.

2022-1N

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/56

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

2,125,000

2,111,662

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

City

of

Fairfield

,

Community

Facilities

District

No.

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/44

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

$

2,000,000

$

2,078,639

Community

Facilities

District

No.

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/49

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

2,000,000

2,040,391

City

of

Fillmore

,

Community

Facilities

District

No.

,

Special

Tax

,

2015

,

%

,

9/01/40

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

1,500,000

1,508,279

Community

Facilities

District

No.

,

Special

Tax

,

2015

,

%

,

9/01/45

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

2,630,000

2,636,425

City

of

Fremont

,

Community

Facilities

District

No.

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/40

....

4,655,000

4,675,218

Community

Facilities

District

No.

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/45

....

3,255,000

3,261,683

City

of

Galt

,

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

5.125 %

,

9/01/45

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

2,050,000

2,143,773

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

5.25 %

,

9/01/50

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

3,230,000

3,353,386

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2025

B

,

5.375 %

,

9/01/55

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

7,180,000

7,504,071

City

of

Irvine

,

Community

Facilities

District

No.

2013-3

Improvement

Area

No.

,

Special

Tax

,

2018

,

%

,

9/01/43

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

5,000,000

5,098,676

City

of

La

Verne

,

Copacabana

Mobilehome

Park

,

Revenue

,

2014

,

Refunding

,

%

,

6/15/49

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

1,765,000

1,765,500

City

of

Lincoln

,

Community

Facilities

District

No.

2025-1

,

Special

Tax

,

2025

,

%

,

9/01/50

........

550,000

555,149

Community

Facilities

District

No.

2025-1

,

Special

Tax

,

2025

,

%

,

9/01/55

........

775,000

775,102

Community

Facilities

District

No.

2025-1

,

Special

Tax

,

2025

,

5.05 %

,

9/01/55

......

360,000

360,856

City

of

Los

Angeles

,

Department

of

Airports

,

Revenue,

Sub.

Lien

,

2019

D

,

%

,

5/15/44

5,525,000

5,419,969

City

of

Manteca

,

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/44

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

1,000,000

1,049,426

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,580,000

1,607,921

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/44

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

870,000

912,370

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/49

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

1,320,000

1,352,232

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,735,000

1,765,660

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/40

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

165,000

177,666

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/45

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

430,000

443,907

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/50

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

750,000

761,115

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/55

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

1,110,000

1,121,619

City

of

Mountain

House

,

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.125 %

,

9/01/45

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

420,000

436,651

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/50

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

765,000

785,799

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/55

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

1,000,000

1,017,258

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.125 %

,

9/01/45

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

400,000

416,144

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

City

of

Mountain

House,

(continued)

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/50

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

$

580,000

$

594,957

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

5.25 %

,

9/01/55

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

630,000

642,183

City

of

Ontario

,

Community

Facilities

District

No.

,

Special

Tax

,

2017

,

%

,

9/01/42

...........

1,000,000

1,013,664

Community

Facilities

District

No.

,

Special

Tax

,

2017

,

%

,

9/01/47

...........

500,000

503,322

City

of

Oroville

,

Oroville

Hospital

,

Revenue

,

2019

,

5.25 %

,

4/01/49

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

4,500,000

3,150,000

Oroville

Hospital

,

Revenue

,

2019

,

5.25 %

,

4/01/54

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

3,000,000

2,070,000

City

of

Palm

Desert

,

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2024

,

%

,

9/01/49

........

600,000

615,117

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2024

,

%

,

9/01/53

........

525,000

535,134

City

of

Rancho

Cordova

,

Arista

Del

Sol

Community

Facilities

District

No.

2022-1

Improvement

Area

No.

,

Special

Tax

,

2026

,

%

,

9/01/55

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

640,000

637,238

Community

Facilities

District

No.

2014-1

,

Special

Tax

,

2022

,

%

,

9/01/51

........

1,200,000

1,217,250

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.25 %

,

9/01/52

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

2,000,000

2,057,660

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/40

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

360,000

383,899

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/45

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

565,000

582,067

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/50

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

750,000

760,070

Ranch

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/54

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

240,000

242,902

Sunridge

North

Douglas

Community

Facilities

District

No.

2005-1

,

Special

Tax

,

2015

,

%

,

9/01/40

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

1,200,000

1,201,053

Sunridge

North

Douglas

Community

Facilities

District

No.

2005-1

,

Special

Tax

,

2015

,

%

,

9/01/45

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

1,250,000

1,250,564

City

of

Roseville

,

Amoruso

Ranch

Community

Facilities

District

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/49

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

1,125,000

1,142,207

Amoruso

Ranch

Community

Facilities

District

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,500,000

1,513,971

Creekview

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2020

,

%

,

9/01/45

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

1,280,000

1,312,231

Creekview

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2023

,

%

,

9/01/43

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

500,000

521,969

Creekview

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2023

,

5.25 %

,

9/01/53

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

1,850,000

1,902,063

Creekview

Phase

Community

Facilities

District

No.

,

Special

Tax

,

2025

,

%

,

9/01/55

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

1,375,000

1,378,275

c

Fiddyment

Ranch

Community

Facilities

District

No.

,

Special

Tax

,

144A,

2017

,

Refunding

,

%

,

9/01/32

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

1,265,000

1,300,215

c

Fiddyment

Ranch

Community

Facilities

District

No.

,

Special

Tax

,

144A,

2017

,

Refunding

,

%

,

9/01/47

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

6,500,000

6,541,322

HP

Campus

Oaks

Community

Facilities

District

No.

,

Special

Tax

,

2016

,

%

,

9/01/36

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

1,950,000

1,964,824

HP

Campus

Oaks

Community

Facilities

District

No.

,

Special

Tax

,

2016

,

5.5 %

,

9/01/46

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

6,415,000

6,446,751

SVSP

Westpark-Federico

Community

Facilities

District

No.

,

Special

Tax

,

2019

,

%

,

9/01/44

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

1,000,000

1,019,595

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

City

of

Roseville,

(continued)

Torrente

at

Sierra

Vista

Community

Facilities

District

No.

,

Special

Tax

,

2023

,

%

,

9/01/53

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

$

1,500,000

$

1,601,340

Villages

at

Sierra

Vista

Community

Facilities

District

No.

,

Special

Tax

,

2019

,

%

,

9/01/49

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

3,870,000

3,922,117

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2014

,

%

,

9/01/29

....

420,000

420,751

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2014

,

%

,

9/01/34

....

1,100,000

1,101,583

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2014

,

%

,

9/01/39

....

1,885,000

1,886,987

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2014

,

%

,

9/01/44

....

1,650,000

1,650,898

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2019

,

%

,

9/01/40

....

1,670,000

1,728,794

Westbrook

Community

Facilities

District

No.

,

Special

Tax

,

2019

,

%

,

9/01/49

....

2,130,000

2,156,625

City

of

Sacramento

,

Delta

Shores

Community

Facilities

District

No.

2019-01

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

2,000,000

2,031,149

Greenbriar

Community

Facilities

District

No.

2018-03

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/49

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

1,000,000

1,020,898

c

Natomas

Meadows

Community

Facilities

District

No.

2007-1

Area

No.

,

Special

Tax

,

144A,

2017

,

%

,

9/01/32

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

300,000

306,308

c

Natomas

Meadows

Community

Facilities

District

No.

2007-1

Area

No.

,

Special

Tax

,

144A,

2017

,

%

,

9/01/37

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

710,000

718,551

c

Natomas

Meadows

Community

Facilities

District

No.

2007-1

Area

No.

,

Special

Tax

,

144A,

2017

,

%

,

9/01/47

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

1,900,000

1,910,713

City

of

San

Diego

,

Tobacco

Settlement

Revenue

Funding

Corp.

,

Revenue,

Sub.

Lien

,

2018

C

,

Refunding

,

%

,

6/01/32

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

225,000

227,888

City

of

San

Francisco

,

5.25 %

,

9/01/49

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

11,500,000

10,491,057

City

of

South

San

Francisco

,

Community

Facilities

District

No.

2021-01

,

Special

Tax

,

2025

,

%

,

9/01/40

.......

375,000

403,221

Community

Facilities

District

No.

2021-01

,

Special

Tax

,

2025

,

%

,

9/01/45

.......

600,000

624,058

Community

Facilities

District

No.

2021-01

,

Special

Tax

,

2025

,

5.125 %

,

9/01/50

....

1,000,000

1,031,047

Community

Facilities

District

No.

2021-01

,

Special

Tax

,

2025

,

5.25 %

,

9/01/55

.....

1,500,000

1,552,363

City

of

Stockton

,

Community

Facilities

District

No.

2018-2

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.125 %

,

9/01/52

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

3,660,000

3,736,078

City

of

Vacaville

,

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/35

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

390,000

420,964

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/40

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

375,000

396,248

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

%

,

9/01/45

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

810,000

829,875

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

5.125 %

,

9/01/50

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

1,225,000

1,240,562

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2025

A

,

5.25 %

,

9/01/55

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

1,475,000

1,503,926

City

of

Vernon

,

Electric

System

,

Revenue

,

2020

A

,

Refunding

,

%

,

8/01/36

........

1,525,000

1,632,826

City

of

Wildomar

,

Community

Facilities

District

No.

2023-1

,

Special

Tax

,

2026

,

%

,

9/01/55

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

550,000

559,225

f

Clovis

Unified

School

District

,

GO

,

2004

A

,

NATL

Insured

,

ETM,

2.33 %,

8/01/27

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

1,205,000

1,166,175

GO

,

2004

A

,

NATL

Insured

,

2.29 %,

8/01/27

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

6,295,000

6,095,260

GO

,

2004

A

,

NATL

Insured

,

2.35 %,

8/01/28

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

3,000,000

2,835,667

c

CMFA

Special

Finance

Agency

,

Solana

at

Grand

,

Revenue,

Junior

Lien

,

144A,

2021

,

%

,

8/01/45

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

13,845,000

12,687,227

c

CMFA

Special

Finance

Agency

Enclave

,

Revenue,

Junior

Lien

,

144A,

2022

,

4.5 %

,

8/01/51

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

39,885,000

28,289,844

c

CMFA

Special

Finance

Agency

I

,

Mix

at

CTR

City

(The)

,

Revenue

,

144A,

2021

A-T

,

%

,

4/01/41

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

7,545,000

7,208,935

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

c

CMFA

Special

Finance

Agency

XII

,

Allure

Apartments

,

Revenue

,

144A,

2022

,

4.375 %

,

8/01/49

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

$

30,280,000

$

26,185,938

f

Coachella

Valley

Unified

School

District

,

GO

,

2012

D

,

AG

Insured

,

3.91 %,

8/01/42

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

8,500,000

4,526,849

GO

,

2012

D

,

AG

Insured

,

4.03 %,

8/01/43

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

3,000,000

1,506,283

County

of

Imperial

,

Community

Facilities

District

No.

1998-1

,

Special

Tax

,

1999

,

LOC

BNP

Paribas

SA

,

6.5 %

,

9/01/31

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

3,095,000

3,141,783

County

of

Madera

,

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.875 %

,

9/01/53

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

1,100,000

1,150,255

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.75 %

,

9/01/53

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

3,080,000

3,222,156

Community

Facilities

District

No.

2021-1

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.875 %

,

9/01/53

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

1,100,000

1,150,254

County

of

Sacramento

,

Airport

System

,

Revenue

,

2024

,

5.25 %

,

7/01/49

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

3,000,000

3,256,905

Airport

System

,

Revenue

,

2024

,

%

,

7/01/54

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

7,000,000

7,372,289

Airport

System

,

Revenue

,

2024

,

5.25 %

,

7/01/54

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

8,000,000

8,576,227

Airport

System

,

Revenue

,

2025

D

,

AG

Insured

,

5.25 %

,

7/01/55

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

10,000,000

10,427,656

County

of

San

Bernardino

,

Community

Facilities

District

No.

2006-1

Area

No.

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/40

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

1,000,000

1,000,870

Community

Facilities

District

No.

2006-1

Area

No.

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/45

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

1,000,000

1,000,387

c

CSCDA

Community

Improvement

Authority

,

Crescent

(The)

,

Revenue

,

144A,

2022

B

,

5.5 %

,

7/01/59

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

16,000,000

13,089,467

Park

Crossing

Apartments

,

Revenue

,

144A,

2021

B

,

%

,

12/01/48

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

10,000,000

8,078,494

Theo

Apartments

,

Revenue

,

144A,

2021

B

,

%

,

5/01/57

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

10,000,000

7,226,584

Wood

Creek

Apartments

,

Revenue,

Sub.

Lien

,

144A,

2021

B

,

%

,

12/01/59

......

31,800,000

18,596,042

Daly

City

Housing

Development

Finance

Agency

,

Franciscan

Park

LLC

,

Revenue,

Sub.

Lien

,

2007

B

,

Refunding

,

5.85 %

,

12/15/47

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

4,120,000

4,124,134

Del

Mar

Race

Track

Authority

,

Revenue

,

2015

,

Refunding

,

%

,

10/01/35

..........

2,000,000

2,006,727

f

Duarte

Redevelopment

Agency

,

Tax

Allocation,

Sub.

Lien

,

1999

,

ETM,

4.32 %,

12/01/28

3,665,000

3,261,536

f

El

Rancho

Unified

School

District

,

GO

,

2004

,

NATL

Insured

,

2.6 %,

8/01/29

........

2,400,000

2,198,461

c

Elsinore

Valley

Municipal

Water

District

,

Community

Facilities

District

No.

2020-1

Area

No.

2A

,

Special

Tax

,

144A,

2021

A

,

%

,

9/01/51

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

1,245,000

1,084,482

Community

Facilities

District

No.

2020-1

Area

No.

3A

,

Special

Tax

,

144A,

2021

A

,

4.5 %

,

9/01/51

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

2,500,000

2,365,682

Fairfield

Community

Facilities

District

,

c

City

of

Fairfield

Community

Facilities

District

No.

2019-1

Improvement

Area

No.

,

Special

Tax

,

144A,

2020

A

,

%

,

9/01/35

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

1,000,000

1,069,928

c

City

of

Fairfield

Community

Facilities

District

No.

2019-1

Improvement

Area

No.

,

Special

Tax

,

144A,

2020

A

,

%

,

9/01/50

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

5,255,000

5,312,791

Community

Facilities

District

No.

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/54

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

9,630,000

9,746,431

h

,i

FHLMC,

Multi-family

ML

Pass-Through

Certificates

,

FRN

,

2019-ML06

,

XCA

,

1.105 %

,

7/25/35

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

127,820,580

6,762,987

c

Revenue

,

144A,

FRN

,

2020-ML07

,

XCA

,

2.133 %

,

1/25/37

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

115,915,168

13,824,043

Folsom

Ranch

Financing

Authority

,

City

of

Folsom

Community

Facilities

District

No.

,

Special

Tax

,

2017

,

%

,

9/01/47

1,000,000

1,007,076

City

of

Folsom

Community

Facilities

District

No.

,

Special

Tax

,

2018

,

%

,

9/01/33

530,000

546,569

City

of

Folsom

Community

Facilities

District

No.

,

Special

Tax

,

2018

,

%

,

9/01/48

1,675,000

1,686,072

Foothill-Eastern

Transportation

Corridor

Agency

,

f

Revenue

,

2013

A

,

Refunding

,

3.84 %,

1/15/42

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

75,000,000

41,203,785

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

Foothill-Eastern

Transportation

Corridor

Agency,

(continued)

Revenue

,

2013

,

Refunding

,

3.95 %

,

1/15/53

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

$

23,000,000

$

21,100,016

Revenue

,

2013

,

Refunding

,

3.5 %

,

1/15/53

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

15,500,000

13,050,675

f

Revenue

,

2015

A

,

Refunding

,

2.72 %,

1/15/33

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

19,000,000

15,799,070

g

Fremont

Union

High

School

District

,

GO

,

2026

,

4.125 %

,

8/01/50

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

5,500,000

5,440,408

Galt

Community

Facilities

District

,

City

of

Galt

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2023

A

,

5.5 %

,

9/01/43

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

1,860,000

2,001,271

City

of

Galt

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2023

A

,

5.75 %

,

9/01/48

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

2,945,000

3,147,421

City

of

Galt

Community

Facilities

District

No.

2020-2

Improvement

Area

No.

,

Special

Tax

,

2023

A

,

%

,

9/01/53

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

2,895,000

3,096,673

c

Golden

State

Connect

Authority

,

Revenue

,

144A,

2025

,

6.5 %

,

12/01/60

...........

22,000,000

22,249,451

f

Hanford

Joint

Union

High

School

District

,

GO

,

B

,

AG

Insured

,

2.62 %,

8/01/32

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

3,635,000

3,079,309

GO

,

B

,

AG

Insured

,

2.72 %,

8/01/33

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

3,705,000

3,036,281

GO

,

B

,

AG

Insured

,

2.94 %,

8/01/35

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

4,120,000

3,136,302

f

Hartnell

Community

College

District

,

GO

,

2009

D

,

4.32 %,

8/01/49

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

10,000,000

3,713,588

Independent

Cities

Finance

Authority

,

Augusta

Communities

III

LLC

,

Revenue

,

2021

,

Refunding

,

%

,

11/15/56

........

8,160,000

6,111,162

Augusta

Communities

IV

LLC

,

Revenue

,

2024

A

,

%

,

11/15/45

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

1,685,000

1,687,265

Augusta

Communities

IV

LLC

,

Revenue

,

2024

A

,

%

,

11/15/50

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

2,160,000

2,088,320

Augusta

Communities

IV

LLC

,

Revenue

,

2024

A

,

%

,

11/15/59

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

5,540,000

5,205,051

COACH

of

San

Diego

LLC

,

Revenue

,

2014

A

,

Refunding

,

5.25 %

,

5/15/44

.......

2,015,000

2,016,608

COACH

of

San

Diego

LLC

,

Revenue

,

2014

A

,

Refunding

,

5.25 %

,

5/15/49

.......

4,800,000

4,802,424

Millennium

Housing

LLC

,

Revenue

,

2015

,

Refunding

,

%

,

8/15/45

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

5,000,000

5,002,808

Millennium

Housing

LLC

,

Revenue

,

2015

,

Refunding

,

%

,

8/15/50

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

4,900,000

4,901,400

Millennium

Housing

LLC

,

Revenue

,

2021

,

Refunding

,

%

,

5/15/56

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

4,000,000

2,832,652

Millennium

Housing

of

California

,

Revenue

,

2019

,

Refunding

,

%

,

5/15/48

.......

1,000,000

1,011,830

Inland

Valley

Development

Agency

,

Tax

Allocation

,

2014

A

,

Refunding

,

5.25 %

,

9/01/37

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

7,500,000

7,567,910

Tax

Allocation

,

2014

A

,

Refunding

,

%

,

9/01/44

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

9,000,000

9,079,688

Irvine

Facilities

Financing

Authority

,

City

of

Irvine

Community

Facilities

District

No.

2013-3

,

Special

Tax

,

2023

A

,

BAM

Insured

,

%

,

9/01/58

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

6,500,000

6,009,915

Irvine

Unified

School

District

,

Community

Facilities

District

No.

09-1

,

Special

Tax

,

2017

B

,

%

,

9/01/42

........

995,000

1,006,864

Community

Facilities

District

No.

09-1

,

Special

Tax

,

2017

C

,

%

,

9/01/47

........

995,000

996,904

Community

Facilities

District

No.

09-1

,

Special

Tax

,

2018

A

,

Refunding

,

%

,

9/01/49

3,975,000

3,998,955

Kaweah

Delta

Health

Care

District

Guild

,

Revenue

,

2015

B

,

%

,

6/01/40

..........

1,250,000

1,249,948

Lake

Tahoe

Unified

School

District

,

GO

,

2012

,

5.3 %

,

8/01/40

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

1,140,000

1,254,901

Lammersville

Joint

Unified

School

District

,

Community

Facilities

District

No.

2014-1

Improvement

Area

No.

,

Special

Tax

,

2017

,

%

,

9/01/42

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

2,750,000

2,786,777

Community

Facilities

District

No.

2024-1

,

Special

Tax

,

2025

,

%

,

9/01/45

........

2,000,000

2,077,056

Community

Facilities

District

No.

2024-1

,

Special

Tax

,

2025

,

5.125 %

,

9/01/50

.....

3,750,000

3,875,128

Community

Facilities

District

No.

2024-1

,

Special

Tax

,

2025

,

5.25 %

,

9/01/55

......

5,250,000

5,461,727

f

Las

Virgenes

Unified

School

District

,

GO

,

2011

C

,

6.678 %,

8/01/33

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

8,050,000

9,905,891

Lemon

Grove

Community

Development

Agency

Successor

Agency

,

Tax

Allocation

,

2014

,

Refunding

,

AG

Insured

,

%

,

8/01/34

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

1,000,000

1,039,807

f

Lemon

Grove

School

District

,

GO

,

2010

B

,

AG

Insured

,

6.037 %,

8/01/45

..........

6,500,000

6,792,852

Long

Beach

Bond

Finance

Authority

,

Revenue

,

2007

A

,

%

,

11/15/29

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

4,630,000

5,026,167

Long

Beach

Community

College

District

,

GO

,

2025

E

,

%

,

8/01/52

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

2,000,000

2,139,438

Los

Alamitos

Unified

School

District

,

COP

,

2012

,

5.95 %

,

8/01/34

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

1,500,000

1,682,296

COP

,

2012

,

6.05 %

,

8/01/42

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

4,500,000

4,931,329

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

Los

Angeles

Department

of

Water

,

Revenue

,

2020

A

,

Refunding

,

%

,

7/01/50

......

$

18,805,000

$

19,329,720

Los

Angeles

Department

of

Water

&

Power

,

Power

System

,

Revenue

,

2025

A

,

Refunding

,

%

,

7/01/50

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

10,000,000

10,520,013

g

Power

System

,

Revenue

,

2025

D

,

Refunding

,

5.25 %

,

7/01/56

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

9,175,000

9,780,072

Water

System

,

Revenue

,

2021

B

,

Refunding

,

%

,

7/01/46

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

15,080,000

15,768,180

Water

System

,

Revenue

,

2022

D

,

Refunding

,

%

,

7/01/47

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

12,090,000

12,755,573

g

Water

System

,

Revenue

,

2025

C

,

Refunding

,

%

,

7/01/52

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

10,000,000

10,494,028

c

Los

Angeles

Housing

Authority

,

Housing

Pathways,

Inc.

,

Revenue

,

144A,

2024

B

,

%

,

12/01/62

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

33,500,000

32,622,310

Los

Angeles

Unified

School

District

,

GO

,

2024

QRR

,

%

,

7/01/49

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

10,000,000

9,896,461

GO

,

2024

QRR

,

5.25 %

,

7/01/49

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

9,945,000

10,893,510

GO

,

2025

,

%

,

7/01/49

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

10,000,000

10,788,915

Mendocino-Lake

Community

College

District

,

GO

,

2011

B

,

AG

Insured

,

6.55 %

,

8/01/36

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

5,150,000

6,256,879

f

GO

,

2011

B

,

AG

Insured

,

6.775 %,

8/01/40

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

7,500,000

9,660,620

Menifee

Union

School

District

,

Community

Facilities

District

No.

2011-1

Improvement

Area

No.

,

Special

Tax

,

2018

,

%

,

9/01/43

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

1,000,000

1,022,116

Community

Facilities

District

No.

2011-1

Improvement

Area

No.

,

Special

Tax

,

2018

,

%

,

9/01/48

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

1,500,000

1,518,720

Middle

Fork

Project

Finance

Authority

,

Revenue

,

2020

,

Refunding

,

%

,

4/01/34

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

1,100,000

1,180,682

Revenue

,

2020

,

Refunding

,

%

,

4/01/35

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

1,150,000

1,230,118

Moreno

Valley

Unified

School

District

,

Community

Facilities

District

No.

2015-3

,

Special

Tax

,

2019

,

4.125 %

,

9/01/48

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

360,000

328,351

Mountain

House

Community

Facilities

District

,

City

of

Mountain

House

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/40

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

500,000

532,454

City

of

Mountain

House

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/45

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

1,000,000

1,023,135

City

of

Mountain

House

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/50

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

2,125,000

2,144,673

City

of

Mountain

House

Community

Facilities

District

No.

2024-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/55

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

3,600,000

3,617,760

M-S-R

Energy

Authority

,

Revenue

,

2009

B

,

6.5 %

,

11/01/39

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

32,300,000

40,462,068

f

Newman-Crows

Landing

Unified

School

District

,

GO

,

2008

B

,

AG

Insured

,

0.414 %,

8/01/49

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

2,290,000

2,127,176

Norman

Y

Mineta

San

Jose

International

Airport

SJC

,

Revenue

,

2017

A

,

Refunding

,

BAM

Insured

,

%

,

3/01/42

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

5,000,000

5,006,288

Oak

Park

Unified

School

District

,

GO

,

2011

A

,

7.1 %

,

8/01/38

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

6,600,000

8,148,567

Orange

County

Community

Facilities

District

,

County

of

Orange

Community

Facilities

District

No.

2015-1

,

Special

Tax

,

2015

A

,

%

,

8/15/34

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

1,495,000

1,497,299

County

of

Orange

Community

Facilities

District

No.

2015-1

,

Special

Tax

,

2015

A

,

5.25 %

,

8/15/45

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

4,880,000

4,886,613

County

of

Orange

Community

Facilities

District

No.

2017-1

Area

No.

,

Special

Tax

,

2018

A

,

%

,

8/15/47

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

9,550,000

9,625,126

Palomar

Health

,

Obligated

Group

,

Revenue

,

2016

,

Refunding

,

%

,

11/01/39

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

12,190,000

12,081,081

Palomar

Health

Obligated

Group

,

COP

,

%

,

11/01/38

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

5,000,000

4,405,907

Palomar

Health

Obligated

Group

,

COP

,

%

,

11/01/47

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

6,000,000

4,516,125

f

Paso

Robles

Joint

Unified

School

District

,

GO

,

2010

A

,

4.46 %,

9/01/45

...........

15,000,000

6,402,837

Perris

Community

Facilities

District

,

City

of

Perris

Community

Facilities

District

No.

2001-2

,

Special

Tax

,

2014

A

,

Refunding

,

5.25 %

,

9/01/32

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

4,500,000

4,508,579

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

Perris

Joint

Powers

Authority

,

Community

Facilities

District

No.

2001-1

,

Special

Tax

,

2014

E

,

Refunding

,

4.25 %

,

9/01/38

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

$

4,120,000

$

4,119,972

Community

Facilities

District

No.

2014-1

Improvement

Area

No.

,

Special

Tax

,

2018

A

,

%

,

9/01/48

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

1,530,000

1,371,223

Rancho

Mirage

Community

Facilities

District

,

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/44

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

2,200,000

2,291,246

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/49

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

1,500,000

1,525,039

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2024

A

,

%

,

9/01/54

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

1,400,000

1,416,927

Redondo

Beach

Unified

School

District

,

GO

,

2011

E

,

6.2 %

,

8/01/31

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

2,750,000

3,245,151

f

Richland

School

District

,

GO

,

2009

C

,

AG

Insured

,

4.92 %,

8/01/49

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

22,000,000

7,135,902

Rio

Hondo

Community

College

District

,

GO

,

2010

C

,

6.85 %

,

8/01/42

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

13,000,000

16,519,290

Rio

Vista

Community

Facilities

District

,

City

of

Rio

Vista

Community

Facilities

District

No.

2018-1

,

Special

Tax

,

2018

,

Refunding

,

%

,

9/01/33

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

1,625,000

1,675,642

City

of

Rio

Vista

Community

Facilities

District

No.

2018-1

,

Special

Tax

,

2018

,

Refunding

,

%

,

9/01/48

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

1,190,000

1,200,654

River

Islands

Public

Financing

Authority

,

Community

Facilities

District

2023-1

Area

No.

,

Special

Tax

,

2023

,

%

,

9/01/38

...

500,000

535,231

Community

Facilities

District

2023-1

Area

No.

,

Special

Tax

,

2023

,

5.5 %

,

9/01/43

.

2,000,000

2,140,794

Community

Facilities

District

2023-1

Area

No.

,

Special

Tax

,

2023

,

5.5 %

,

9/01/48

.

3,090,000

3,211,790

Community

Facilities

District

2023-1

Area

No.

,

Special

Tax

,

2023

,

5.625 %

,

9/01/53

4,830,000

5,016,322

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

Refunding

,

%

,

9/01/50

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

5,000,000

5,027,920

Community

Facilities

District

2023-1

Improvement

Area

No.

,

Special

Tax

,

2025

,

Refunding

,

%

,

9/01/55

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

14,600,000

14,581,408

Community

Facilities

District

No

2003-1

Improvement

Area

No.

,

Special

Tax

,

2022

,

5.75 %

,

9/01/52

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

4,250,000

4,415,570

Community

Facilities

District

No.

2016-1

,

Special

Tax

,

2025

,

AG

Insured

,

%

,

9/01/55

2,315,000

2,443,127

Community

Facilities

District

No.

2020-1

Public

Improvements

,

Special

Tax

,

2025

,

AG

Insured

,

%

,

9/01/55

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

4,000,000

4,221,386

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2021

,

2.625 %

,

9/01/34

.....

860,000

780,769

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2021

,

2.625 %

,

9/01/35

.....

925,000

824,401

Community

Facilities

District

No.

2021-1

,

Special

Tax

,

2021

,

%

,

9/01/46

........

1,495,000

1,290,537

Community

Facilities

District

No.

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/48

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

1,650,000

1,665,209

Community

Facilities

District

No.

2023-1

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

2,625,000

2,625,923

f

Riverbank

Unified

School

District

,

GO

,

2008

B

,

AG

Insured

,

3.73 %,

8/01/38

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

6,690,000

4,243,547

GO

,

2008

B

,

AG

Insured

,

4.19 %,

8/01/43

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

8,750,000

4,277,941

Riverside

County

Community

Facilities

Districts

,

County

of

Riverside

Community

Facilities

District

No.

03-1

,

Special

Tax

,

2014

,

Refunding

,

%

,

9/01/30

..........

1,500,000

1,513,434

f

Riverside

County

Transportation

Commission

,

Revenue,

Senior

Lien

,

2013

B

,

4.27 %,

6/01/43

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

7,500,000

3,643,708

Romoland

School

District

,

Community

Facilities

District

No.

2004-1

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/35

4,690,000

4,696,216

Community

Facilities

District

No.

2004-1

,

Special

Tax

,

2015

,

Refunding

,

%

,

9/01/38

3,000,000

3,003,453

Community

Facilities

District

No.

2004-1

Improvement

Area

No.

,

Special

Tax

,

2013

,

%

,

9/01/36

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

1,500,000

1,501,892

f

Rowland

Unified

School

District

,

GO

,

2009

B

,

3.39 %,

8/01/34

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

5,000,000

3,774,672

GO

,

2009

B

,

3.76 %,

8/01/39

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

15,000,000

9,144,345

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

f

Rowland

Unified

School

District,

(continued)

GO

,

2009

B

,

3.65 %,

8/01/42

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

$

10,750,000

$

5,970,062

f

San

Bernardino

Community

College

District

,

GO

,

2009

B

,

4.24 %,

8/01/44

.........

12,495,000

5,810,861

San

Diego

Unified

School

District

,

f

GO

,

2010

C

,

6.52 %,

7/01/47

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

26,025,000

26,019,186

f

GO

,

2012

E

,

4.856 %,

7/01/42

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

6,940,000

6,147,276

f

GO

,

2012

E

,

5.299 %,

7/01/47

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

13,500,000

11,228,162

GO

,

2025

,

%

,

7/01/50

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

4,910,000

5,278,801

San

Francisco

Bay

Area

Rapid

Transit

District

,

GO

,

2020

,

%

,

8/01/45

........

17,760,000

17,828,713

San

Francisco

City

&

County

Airport

Comm-San

Francisco

International

Airport

,

Revenue

,

2019

A

,

%

,

5/01/37

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

5,535,000

5,865,660

Revenue

,

2019

A

,

%

,

5/01/44

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

10,000,000

10,303,056

Revenue

,

2019

A

,

%

,

5/01/49

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

10,000,000

10,154,495

Revenue,

Second

Series

,

2019

E

,

%

,

5/01/50

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

34,520,000

34,965,090

Revenue,

Second

Series

,

2022

B

,

Refunding

,

%

,

5/01/52

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

5,250,000

5,499,122

Revenue,

Second

Series

,

2024

A

,

Refunding

,

5.25 %

,

5/01/44

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

8,605,000

9,423,050

Revenue,

Second

Series

,

2024

A

,

Refunding

,

5.25 %

,

5/01/49

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

350,000

370,719

Revenue,

Second

Series

,

2025

A

,

5.25 %

,

5/01/55

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

6,045,000

6,378,198

Revenue,

Second

Series

,

2025

A

,

5.5 %

,

5/01/55

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

10,000,000

10,768,271

San

Francisco

City

&

County

Public

Utilities

Commission

,

Wastewater

,

Revenue

,

2024

C

,

%

,

10/01/54

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

10,000,000

10,649,023

San

Francisco

City

&

County

Redevelopment

Agency

Successor

Agency

,

Mission

Bay

South

Redevelopment

Area

Tax

Increment

Financing

District

,

Tax

Allocation

,

2014

A

,

%

,

8/01/43

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

2,500,000

2,502,215

San

Joaquin

Hills

Transportation

Corridor

Agency

,

f

Revenue

,

1997

A

,

Refunding

,

NATL

Insured

,

3.05 %,

1/15/32

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

50,225,000

42,084,201

f

Revenue,

Junior

Lien

,

ETM,

1.98 %,

1/01/28

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

19,150,000

18,472,326

Revenue,

Junior

Lien

,

2014

B

,

Refunding

,

5.25 %

,

1/15/44

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

1,125,000

1,125,835

Revenue,

Junior

Lien

,

2014

B

,

Refunding

,

5.25 %

,

1/15/49

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

13,790,000

13,798,384

e

San

Joaquin

Valley

Clean

Energy

Authority

,

Revenue

,

2025

A

,

Mandatory

Put

,

5.5 %

,

7/01/35

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

21,250,000

24,224,756

c,f

Santa

Barbara

Housing

Authority

,

Revenue

,

144A,

2025

A-S

,

7.95 %,

5/01/44

......

15,000,000

3,735,561

Santa

Barbara

Unified

School

District

,

GO

,

2011

A

,

%

,

8/01/36

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

8,000,000

10,623,770

f

Siskiyou

Union

High

School

District

,

GO

,

2009

B

,

AG

Insured

,

4.93 %,

8/01/49

......

15,015,000

4,865,635

St.

Helena

Unified

School

District

,

GO

,

2011

B

,

6.45 %

,

6/01/36

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

10,000,000

13,289,936

State

of

California

,

GO

,

Refunding

,

4.125 %

,

3/01/45

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

12,000,000

12,288,357

g

GO

,

4.125 %

,

3/01/49

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

5,500,000

5,535,445

g

GO

,

%

,

3/01/55

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

8,000,000

8,575,641

State

of

California

Department

of

Water

Resources

,

Water

Supply

,

Revenue

,

2026

A

,

%

,

12/01/56

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

15,000,000

16,111,644

Stockton

Community

Facilities

District

,

Community

Facilities

District

No.

2018-2

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/45

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

1,000,000

1,031,504

Community

Facilities

District

No.

2018-2

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/50

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

1,500,000

1,522,019

Community

Facilities

District

No.

2018-2

Improvement

Area

No.

,

Special

Tax

,

2025

,

%

,

9/01/55

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

1,550,000

1,563,037

Sulphur

Springs

Union

School

District

,

Community

Facilities

District

No.

2006-1

,

Special

Tax

,

2018

,

%

,

9/01/43

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

2,820,000

2,857,321

f

Susanville

School

District

,

GO

,

2010

,

AG

Insured

,

4.91 %,

8/01/49

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

17,505,000

5,695,120

Tejon

Ranch

Public

Facilities

Finance

Authority

,

Tejon

Industrial

Complex

Public

Improvements

–

East

Community

Facilities

District

No.

2008-1

,

Special

Tax

,

2024

A

,

Refunding

,

%

,

9/01/54

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

2,250,000

2,266,283

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### California
(continued)

Temescal

Valley

Water

District

,

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/44

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

$

600,000

$

631,839

Community

Facilities

District

No.

Improvement

Area

No.

,

Special

Tax

,

2024

,

%

,

9/01/54

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

1,185,000

1,205,941

Three

Rivers

Levee

Improvement

Authority

,

Special

Tax

,

2021

B

,

Refunding

,

%

,

9/01/51

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

2,710,000

2,429,771

Tobacco

Securitization

Authority

of

Southern

California

,

f

San

Diego

County

Tobacco

Asset

Securitization

Corp.

,

Revenue

,

2006

C

,

9.07 %,

6/01/46

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

23,500,000

4,047,116

San

Diego

County

Tobacco

Asset

Securitization

Corp.

,

Revenue

,

2019

,

,

Refunding

,

%

,

6/01/48

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

5,890,000

5,885,628

f

Torrance

Unified

School

District

,

GO

,

2009

,

4.63 %,

8/01/34

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

5,095,000

3,479,396

Tracy

Community

Facilities

District

,

City

of

Tracy

Community

Facilities

District

No.

2016-01

Improvement

Area

No.

,

Special

Tax

,

2018

,

%

,

9/01/43

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

5,500,000

5,596,791

City

of

Tracy

Community

Facilities

District

No.

2016-01

Improvement

Area

No.

,

Special

Tax

,

2018

,

%

,

9/01/48

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

6,490,000

6,542,017

City

of

Tracy

Community

Facilities

District

No.

2016-01

Improvement

Area

No.

,

Special

Tax

,

2019

,

%

,

9/01/49

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

1,960,000

1,971,003

Transbay

Joint

Powers

Authority

,

Transbay

Redevelopment

Project

Tax

Increment

Re-

Development

Project

,

Tax

Allocation

,

2020

B

,

%

,

10/01/38

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

550,000

571,519

Truckee-Donner

Public

Utility

District

,

Community

Facilities

District

No.

04-1

,

Special

Tax

,

2004

,

5.75 %

,

9/01/29

........

1,915,000

1,903,062

Community

Facilities

District

No.

04-1

,

Special

Tax

,

2004

,

5.8 %

,

9/01/35

........

4,470,000

4,358,705

Community

Facilities

District

No.

04-1

,

Special

Tax

,

2005

,

5.25 %

,

9/01/30

........

4,990,000

4,853,920

University

of

California

,

Revenue

,

2025

CC

,

%

,

5/15/47

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

12,500,000

13,568,217

Revenue

,

2025

CC

,

%

,

5/15/53

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

20,200,000

21,546,294

g

Revenue

,

2026

CF

,

Refunding

,

%

,

11/15/45

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

1,250,000

1,392,655

Vallejo

Redevelopment

Agency

,

Tax

Allocation

,

2001

A

,

%

,

10/01/31

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

1,560,000

1,564,957

f

Victor

Valley

Community

College

District

,

GO

,

2008

C

,

4.66 %,

6/01/49

...........

11,940,000

4,140,054

Washington

Township

Health

Care

District

,

Revenue

,

2017

B

,

Refunding

,

%

,

7/01/35

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

2,000,000

1,999,281

Revenue

,

2017

B

,

Refunding

,

%

,

7/01/36

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

1,900,000

1,883,478

Westside

Union

School

District

,

Community

Facilities

District

No.

2018-1

Area

,

Special

Tax

,

2021

,

%

,

9/01/46

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

360,000

325,873

2,898,208,599

#### Florida

#### 0.3%
c,f

Capital

Trust

Authority

,

Gulf

Coast

Portfolio

Obligated

Group

,

Revenue

,

144A,

2024

,

Refunding

,

5.29 %,

3/01/29

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

8,200,000

7,024,182

c

,e

Florida

Development

Finance

Corp.

,

Brightline

Florida

Holdings

LLC

,

Revenue

,

144A,

2025

B

,

Mandatory

Put

,

%

,

6/15/26

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

3,625,000

2,501,250

9,525,432

#### Minnesota

#### 0.1%
c

City

of

Fridley

,

Roers

Fridley

Apartments

Owner

II

LLC

,

Revenue

,

144A,

2023

,

%

,

6/01/41

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

3,250,000

3,343,117

#### Texas

#### 0.6%
c

City

of

Dallas

Housing

Finance

Corp.

,

DHFC

-

Dylan

Apartments

LLC

(The)

,

Revenue,

Junior

Lien

,

144A,

2022

B

,

6.25 %

,

12/01/54

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

10,100,000

8,675,633

c

Texas

Community

Housing

&

Economic

Development

Corp.

,

f

Agape

Helotes,

Inc.

,

Revenue,

Junior

Lien

,

144A,

2025

B

,

7.736 %,

1/01/65

......

163,530,000

8,065,512

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### Texas
(continued)

c

Texas

Community

Housing

&

Economic

Development

Corp.,

(continued)

Agape

Helotes,

Inc.

,

Revenue,

Senior

Lien

,

144A,

2025

,

%

,

1/01/65

.......

$

1,305,000

$

1,314,155

18,055,300

#### Virginia

#### 0.2%
c

Virginia

Small

Business

Financing

Authority

,

P3

VB

Holdings

LLC

,

Revenue,

Senior

Lien

,

144A,

2023

A

,

8.5 %

,

12/01/52

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

5,250,000

5,119,961

#### Wisconsin

#### 0.3%
c

Public

Finance

Authority

,

FAH

Tree

House

LLC

,

Revenue

,

144A,

2023

B

,

6.625 %

,

2/01/46

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

7,000,000

5,907,394

f

Pine

Forest

2022

Obligated

Group

,

Revenue,

Sub.

Lien

,

144A,

2022

,

2.279 %,

12/01/45

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

6,000,000

4,703,310

10,610,704

#### U.S.

#### Territories

#### 5.0%

#### American

#### Samoa

#### 0.0%

#### †
c

American

Samoa

Economic

Development

Authority

,

Revenue

,

144A,

2025

B

,

5.25 %

,

9/01/45

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

1,125,000

1,142,906

#### Guam

#### 0.6%
Guam

Government

Waterworks

Authority

,

Revenue

,

2017

,

Refunding

,

%

,

7/01/40

..

9,885,000

10,059,830

Guam

Power

Authority

,

Revenue

,

2017

A

,

Refunding

,

%

,

10/01/38

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

4,750,000

4,846,198

Territory

of

Guam

,

Revenue

,

2021

F

,

Refunding

,

%

,

1/01/36

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

250,000

254,935

Revenue

,

2021

F

,

Refunding

,

%

,

1/01/42

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

1,125,000

1,120,274

Hotel

Occupancy

Tax

,

Revenue

,

2021

A

,

Refunding

,

%

,

11/01/35

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

3,000,000

3,226,952

19,508,189

#### Pacific

#### Islands

#### 0.1%
Northern

Mariana

Island

Ports

Authority

,

Revenue

,

1998

A

,

6.6 %

,

3/15/28

.........

2,125,000

2,162,600

#### Puerto

#### Rico

#### 4.0%
Commonwealth

of

Puerto

Rico

,

f,h

GO

,

FRN

,

2.567 %,

11/01/43

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

2,826,453

1,932,587

GO

,

2022

,

5.625 %

,

7/01/27

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

809,842

828,823

GO

,

2022

,

5.625 %

,

7/01/29

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

796,704

851,307

GO

,

2022

,

5.75 %

,

7/01/31

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

773,832

859,904

GO

,

2022

,

%

,

7/01/33

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

733,796

751,538

GO

,

2022

,

%

,

7/01/35

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

659,584

670,906

GO

,

2022

,

%

,

7/01/37

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

566,098

567,268

GO

,

2022

,

%

,

7/01/41

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

769,676

747,027

GO

,

2022

,

%

,

7/01/46

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

16,300,453

14,716,836

f

GO

,

2022

,

4.18 %,

7/01/33

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

944,324

699,217

GDB

Debt

Recovery

Authority

of

Puerto

Rico

,

7.5 %

,

8/20/40

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

13,655,512

13,430,773

HTA

CL

Trust

,

Revenue

,

L-2028

,

5.25 %

,

7/01/38

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

685,869

686,020

Puerto

Rico

Electric

Power

Authority

,

d

Revenue

,

,

%

,

1/01/21

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

1,768,493

1,180,469

d

Revenue

,

,

%

,

7/01/21

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

1,768,493

1,180,469

d

Revenue

,

2013

A

,

%

,

7/01/19

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

1,601,766

1,069,179

d

Revenue

,

2013

A

,

%

,

7/01/33

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

10,290,000

6,868,575

d

Revenue

,

2016

,

%

,

7/01/19

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

1,601,765

1,069,178

d

Revenue

,

,

%

,

1/01/22

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

600,000

400,500

d

Revenue

,

,

%

,

7/01/22

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

600,000

400,500

Revenue

,

VV

,

Refunding

,

NATL

Insured

,

5.25 %

,

7/01/32

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

1,800,000

1,847,313

Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(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

#### Municipal

#### Bonds
(continued)

#### U.S.

#### Territories
(continued)

#### Puerto

#### Rico
(continued)

Puerto

Rico

Industrial

Tourist

Educational

Medical

&

Environmental

Control

Facilities

Financing

Authority

,

Revenue

,

2000

A

,

6.625 %

,

1/01/27

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

$

362,482

$

362,399

Revenue

,

2000

A

,

6.625 %

,

1/01/28

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

2,764,591

2,769,661

Puerto

Rico

Sales

Tax

Financing

Corp.

,

Sales

Tax

,

Revenue

,

,

4.55 %

,

7/01/40

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

100,000

100,670

Sales

Tax

,

Revenue

,

,

4.75 %

,

7/01/53

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

18,244,000

17,790,141

Sales

Tax

,

Revenue

,

,

%

,

7/01/58

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

8,695,000

8,534,390

f

Sales

Tax

,

Revenue

,

,

5.16 %,

7/01/46

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

20,000,000

7,194,212

f

Sales

Tax

,

Revenue

,

,

5.41 %,

7/01/51

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

47,945,000

12,614,684

Sales

Tax

,

Revenue

,

,

4.329 %

,

7/01/40

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

4,419,000

4,428,140

Sales

Tax

,

Revenue

,

,

4.784 %

,

7/01/58

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

28,616,000

27,726,395

132,279,081

#### Virgin

#### Islands

#### 0.3%
Matching

Fund

Special

Purpose

Securitization

Corp.

,

United

States

Virgin

Islands

Federal

Excise

Tax

,

Revenue

,

2022

A

,

Refunding

,

%

,

10/01/39

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

9,660,000

10,242,856

#### Total

#### U.S.

#### Territories

#### ....................................................................
165,335,632

#### Total

#### Municipal

#### Bonds

#### (Cost

#### $

#### 3,119,881,581

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

#### 3,124,925,732

#### Total

#### Long

#### Term

#### Investments

#### (Cost

#### $

#### 3,195,021,215

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

#### 3,191,997,766

#### a
a

a

a

#### Short

#### Term

#### Investments

#### 1.6%

#### Municipal

#### Bonds

#### 1.6%

#### California

#### 1.6%
j

Anaheim

Housing

&

Public

Improvements

Authority

,

City

of

Anaheim

Water

System

,

Revenue,

Second

Lien

,

2024

A

,

LOC

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

1.1 %

,

10/01/54

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

14,500,000

14,500,000

j

California

Municipal

Finance

Authority

,

Boone

534

LLC

,

Revenue

,

2026

B

,

Daily

VRDN

and

Put

,

7.1 %

,

2/01/38

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

8,050,000

8,116,406

j

Eastern

Municipal

Water

District

,

Revenue

,

2018

A

,

Refunding

,

SPA

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

1.1 %

,

7/01/46

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

1,100,000

1,100,000

j

Irvine

Ranch

Water

District

,

Special

Assessment

,

2009

B

,

LOC

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

1.1 %

,

10/01/41

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

16,300,000

16,300,000

j

Regents

of

the

University

of

California

,

Medical

Center

,

Revenue

,

2007

,

Refunding

,

Daily

VRDN

and

Put

,

1.4 %

,

5/15/32

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

12,720,000

12,720,000

52,736,406

#### Total

#### Municipal

#### Bonds

#### (Cost

#### $

#### 52,670,000

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

#### 52,736,406

#### Total

#### Short

#### Term

#### Investments

#### (Cost

#### $

#### 52,670,000

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

#### 52,736,406

#### a

#### Total

#### Investments

#### (Cost

#### $

#### 3,247,691,215

####)
98.9 #### %
..................................

#### $3,244,734,172

#### Other

#### Assets,

#### less

#### Liabilities
1.1 #### %
.............................................

#### 36,526,090

#### Net

#### Assets

#### 100.0%

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

#### $3,281,260,262
Franklin

Municipal

Securities

Trust

Schedule

of

Investments

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

See

Abbreviations

on

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

regarding

fair

value

measurements.

b

Non-income

producing.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933. 144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933. Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

February

28,

2026,

the

aggregate

value

of

these

securities

was

$948,487,706,

representing

28.9%

of

net

assets.

d

Defaulted

security

or

security

for

which

income

has

been

deemed

uncollectible.

See

Note

6. e

The

maturity

date

shown

represents

the

mandatory

put

date.

f

The

rate

shown

represents

the

yield

at

period

end.

g

Security

purchased

on

a

when-issued

basis.

See

Note

1(b).

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

Investment

in

an

interest-only

security

entitles

holders

to

receive

only

the

interest

payment

on

the

underlying

instruments.

The

principal

amount

shown

is

the

notional

amount

of

the

underlying

instruments.

j

Variable

rate

demand

notes

(VRDN)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

pay-

ment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

Municipal

Securities

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

February

28,

2026

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$3,247,691,215

Value

-

Unaffiliated

issuers

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

$3,244,734,172

Cash

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

462,657

Receivables:

Capital

shares

sold

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

3,109,359

Interest

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

43,296,580

Total

assets

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

3,291,602,768

Liabilities:

Payables:

Investment

securities

purchased

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

1,388,950

Capital

shares

redeemed

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

5,559,609

Management

fees

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

1,139,522

Distribution

fees

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

305,793

Transfer

agent

fees

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

588,805

Trustees'

fees

and

expenses

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

Distributions

to

shareholders

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

1,089,876

Accrued

expenses

and

other

liabilities

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

269,891

Total

liabilities

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

10,342,506

Net

assets,

at

value

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

$3,281,260,262

Net

assets

consist

of:

Paid-in

capital

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

$3,486,776,774

Total

distributable

earnings

(losses)

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

(205,516,512)

Net

assets,

at

value

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

$3,281,260,262

Franklin

Municipal

Securities

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

February

28,

2026

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund

#### Class

#### A:
Net

assets,

at

value

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

$1,168,018,463

Shares

outstanding

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

118,501,682

Net

asset

value

per

share

a

,b

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

$9.86

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

.25

%)

b

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

$10.24

#### Class

#### A1:
Net

assets,

at

value

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

$662,264,939

Shares

outstanding

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

67,322,286

Net

asset

value

per

share

a

,b

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

$9.84

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

.25

%)

b

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

$10.22

#### Class

#### C:
Net

assets,

at

value

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

$73,036,172

Shares

outstanding

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

7,367,556

Net

asset

value

and

maximum

offering

price

per

share

a

,b

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

$9.91

#### Class

#### R6:
Net

assets,

at

value

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

$77,623,155

Shares

outstanding

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

7,864,552

Net

asset

value

and

maximum

offering

price

per

share

b

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

$9.87

#### Advisor

#### Class:
Net

assets,

at

value

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

$1,300,317,533

Shares

outstanding

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

131,887,313

Net

asset

value

and

maximum

offering

price

per

share

b

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

$9.86

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

b

Net

asset

value

per

share

may

not

recalculate

due

to

rounding.

Franklin

Municipal

Securities

Trust

Financial

Statements

Statement

of

Operations

for

the

year

ended

February

28,

2026

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
Investment

income:

Interest:

Unaffiliated

issuers

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

$152,290,554

Expenses:

Management

fees

(Note

a)

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

13,902,397

Distribution

fees:

(Note

3c)

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

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

2,555,300

&nbsp;&nbsp;&nbsp;&nbsp;Class

A1

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

668,087

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

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

491,070

Transfer

agent

fees:

(Note

3e)

&nbsp;&nbsp;&nbsp;&nbsp;Class

A

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

772,451

&nbsp;&nbsp;&nbsp;&nbsp;Class

A1

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

502,246

&nbsp;&nbsp;&nbsp;&nbsp;Class

C

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

56,637

&nbsp;&nbsp;&nbsp;&nbsp;Class

R6

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

17,827

&nbsp;&nbsp;&nbsp;&nbsp;Advisor

Class

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

906,765

Custodian

fees

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

15,962

Reports

to

shareholders

fees

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

55,911

Registration

and

filing

fees

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

41,774

Professional

fees

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

219,369

Trustees'

fees

and

expenses

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

31,520

Other

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

355,711

Total

expenses

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

20,593,027

Net

investment

income

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

131,697,527

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(22,899,997)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

12,011,010

Unfunded

commitments

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

(1,620,918)

Net

change

in

unrealized

appreciation

(depreciation)

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

10,390,092

Net

realized

and

unrealized

gain

(loss)

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

(12,509,905)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$119,187,622

Franklin

Municipal

Securities

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund

#### Year

#### Ended

#### February

#### 28,

#### 2026

#### Year

#### Ended

#### February

#### 28,

#### 2025
Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$131,697,527

$113,522,234

Net

realized

gain

(loss)

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

(22,899,997)

(23,658,994)

Net

change

in

unrealized

appreciation

(depreciation)

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

10,390,092

38,149,884

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

119,187,622

128,013,124

Distributions

to

shareholders:

Class

A

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

(42,934,054)

(33,286,444)

Class

A1

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

(29,103,317)

(30,414,871)

Class

C

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

(2,847,729)

(3,156,190)

Class

R6

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

(2,966,424)

(2,427,473)

Advisor

Class

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

(53,477,488)

(43,462,594)

Total

distributions

to

shareholders

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

(131,329,012)

(112,747,572)

Capital

share

transactions:

(Note

2)

Class

A

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

187,910,278

266,877,961

Class

A1

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

(44,741,509)

(68,763,477)

Class

C

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

(11,177,350)

(8,310,519)

Class

R6

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

11,943,438

14,864,697

Advisor

Class

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

119,081,951

265,571,571

Total

capital

share

transactions

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

263,016,808

470,240,233

Net

increase

(decrease)

in

net

assets

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

250,875,418

485,505,785

Net

assets:

Beginning

of

year

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

3,030,384,844

2,544,879,059

End

of

year

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

$3,281,260,262

$3,030,384,844

Franklin

Municipal

Securities

Trust

franklintempleton.com

Annual

Report

Notes

to

Financial

Statements

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
Franklin

Municipal

Securities

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of one fund,

Franklin

California

High

Yield

Municipal

Fund (Fund).

The Fund

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946. The

Fund

offers five

classes

of

shares:

Class

A,

Class

A1,

Class

C,

Class

R6

and

Advisor

Class. Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Fund's

significant

accounting

policies.

a. #### Financial

#### Instrument

#### Valuation
The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the Trust's

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Fund's

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund's

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value.

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b. #### Securities

#### Purchased

#### on

#### a

#### When-Issued,

#### Forward

#### Commitment or

#### Delayed

#### Delivery

#### Basis
The

Fund

may

purchase

securities

on

a when-issued,

forward

commitment

or

delayed

delivery basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

purchase

these

securities

with

the

intention

of

holding

the

securities, it

may

sell

the

securities

before

the

settlement

date.

c. #### Income

#### Taxes
It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

February

28,

2026, the Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

The

Fund's

federal

and

state

income

and

federal

excise

tax

returns

for

the

prior

three

fiscal

years

are

subject

to

examination

by

the

Internal

Revenue

Service

and

state

departments

of

revenue.

d. #### Security

#### Transactions,

#### Investment

#### Income,

#### Expenses

#### and

#### Distributions
Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

(including

interest

income

from

payment-in-kind

securities,

if

any)

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Paydown

gains

and

losses

are

recorded

as

an

adjustment

to

interest

income. The

Fund

may

receive

other

income

from

investments

in

senior

secured

corporate

loans

or

unfunded

commitments,

including

amendment

fees,

consent

fees

or

commitment

fees.

These

fees

are

recorded

as

income

when

received

by

the

Fund.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from

realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e. #### Insurance
The

scheduled

payments

of

interest

and

principal

for

each

insured

municipal

security

in

the

Trust

are

insured

by

either

a

new

issue

insurance

policy

or

a

secondary

insurance

policy.

Depending

on

the

type

of

coverage,

premiums

for

insurance

are

either

added

to

the

cost

basis

of

the

security

or

paid

by

a

third

party.

Insurance

companies

typically

insure

municipal

bonds

that

tend

to

be

of

very

high

quality,

with

the

majority

of

underlying

municipal

bonds

rated

A

or

better.

However,

an

event

involving

an

insurer

could

have

an

adverse

effect

on

the

value

of

the

securities

insured

by

that

insurance

company.

There

can

be

no

assurance

the

insurer

will

be

able

to

fulfill

its

obligations

under

the

terms

of

the

policy.

f. #### Accounting

#### Estimates
The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g. #### Guarantees

#### and

#### Indemnifications
Under

the Trust's

organizational

documents,

its

officers

and trustees

are

indemnified

by

the Trust against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the Trust,

on

behalf

of

the

Fund, enters

into

contracts

with

1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

b. #### Securities

#### Purchased

#### on

#### a

#### When-Issued,

#### Forward

#### Commitment or

#### Delayed

#### Delivery

#### Basis
(continued)

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

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

February

28,

2026,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

#### Year

#### Ended

#### February

#### 28,

#### 2026

#### Year

#### Ended

#### February

#### 28,

#### 2025

#### Shares

#### Amount

#### Shares

#### Amount

#### Class

#### A

#### Shares:
Shares

sold

a

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

41,732,767

$401,695,487

39,430,549

$390,770,256

Shares

issued

in

reinvestment

of

distributions

..........

3,947,930

37,995,370

3,006,832

29,733,559

Shares

redeemed

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

(26,211,259)

(251,780,579)

(15,541,705)

(153,625,854)

Net

increase

(decrease)

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

19,469,438

$187,910,278

26,895,676

$266,877,961

#### Class

#### A1

#### Shares:
Shares

sold

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

3,630,181

$34,981,543

3,133,435

$31,022,853

Shares

issued

in

reinvestment

of

distributions

..........

2,564,612

24,614,926

2,620,130

25,845,061

Shares

redeemed

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

(10,858,779)

(104,337,978)

(12,723,467)

(125,631,391)

Net

increase

(decrease)

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

(4,663,986)

$(44,741,509)

(6,969,902)

$(68,763,477)

#### Class

#### C

#### Shares:
Shares

sold

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

1,889,121

$18,341,101

2,231,242

$22,232,038

Shares

issued

in

reinvestment

of

distributions

..........

281,809

2,724,875

303,493

3,017,044

Shares

redeemed

a

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

(3,340,904)

(32,243,326)

(3,372,293)

(33,559,601)

Net

increase

(decrease)

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

(1,169,974)

$(11,177,350)

(837,558)

$(8,310,519)

#### Class

#### R6

#### Shares:
Shares

sold

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

4,029,244

$38,839,226

2,645,569

$26,237,351

Shares

issued

in

reinvestment

of

distributions

..........

296,749

2,859,932

229,503

2,272,221

Shares

redeemed

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

(3,098,892)

(29,755,720)

(1,378,938)

(13,644,875)

Net

increase

(decrease)

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

1,227,101

$11,943,438

1,496,134

$14,864,697

#### Advisor

#### Class

#### Shares:
Shares

sold

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

51,742,281

$496,706,665

48,258,465

$478,078,553

Shares

issued

in

reinvestment

of

distributions

..........

4,573,865

44,017,698

3,661,004

36,211,650

Shares

redeemed

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

(44,031,982)

(421,642,412)

(25,136,507)

(248,718,632)

Net

increase

(decrease)

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

12,284,164

$119,081,951

26,782,962

$265,571,571

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A. 1. #### Organization

#### and

#### Significant

#### Accounting

#### Policies
(continued)

g. #### Guarantees

#### and

#### Indemnifications
(continued)

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

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 Fund are

also

officers

and/or directors

of

the

following

subsidiaries:

a. #### Management

#### Fees
The

Fund

pays

an

investment

management fee,

calculated daily and

paid

monthly,

to

Advisers based

on the

average

daily net

assets

of

the

Fund

as

follows:

For

the

year

ended

February

28,

2026,

the

gross

effective

investment

management

fee

rate

was 0.458%

of

the

Fund's

average daily

net

assets.

b. #### Administrative

#### Fees
Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by Advisers

based

on

the Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c. #### Distribution

#### Fees
The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

Class

A

and

A1

reimbursement

distribution

plans,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund's

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

through

January

31. The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

#### Subsidiary

#### Affiliation
Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

#### Annualized

#### Fee

#### Rate

#### Net

#### Assets
0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

In

excess

of

$20

billion

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

Distributors

has

agreed

to

limit

the

current

rate

to

0.10%

per

year

for

Class

A1.

d. #### Sales

#### Charges/Underwriting

#### Agreements
Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

e. #### Transfer

#### Agent

#### Fees
Each

class

of

shares

pays

transfer

agent

fees,

calculated

monthly

and

paid

monthly, to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations. The

fees

are based

on

a

fixed

margin

earned

by

Investor

Services

and

are allocated

to

the Fund

based

upon

relative

assets

and

relative

transactions. In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

paid

to

third

parties

are

accrued

and

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

allocated

specifically

to

that

class

based

upon

its

relative

assets

and

relative

transactions.

For

the

year

ended

February

28,

2026,

the Fund

paid

transfer

agent

fees

as

noted

in

the

Statement of

Operations,

of

which

$519,029

was

retained

by

Investor

Services.

f. #### Waiver

#### and

#### Expense

#### Reimbursements
Advisers

has contractually

agreed

in

advance

to

waive

or

limit

its fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed 0.65%

based

on

the

average

net

assets

of

each

class

until

June

30,

2026. Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Transfer

agent

fees

on

Class

R6

shares

of

the

Fund have

been

capped

so

that

transfer

agent

fees

for

that

class

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

June

30,

2026. g. #### Interfund

#### Transactions
The

Fund

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

year

ended

February

28,

2026,

these

purchase

and

sale

transactions

aggregated

$136,545,000

and

$193,610,000,

respectively.

Class

A

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

0.25%

Class

A1

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

0.15%

Class

C

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

0.65%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

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

$14,848

CDSC

retained

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

$243,132

3. #### with

#### Affiliates
(continued)

c. #### Distribution

#### Fees
(continued)

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

4. #### Income

#### Taxes
For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

February

28,

2026,

the

capital

loss

carryforwards

were

as

follows:

The

tax

character

of

distributions

paid

during

the

years

ended

February

28,

2026

and

2025,

was

as

follows:

At

February

28,

2026,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation)

and

undistributed

tax

exempt

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

defaulted

securities,

wash

sales

and

bond

discounts

and

premiums.

5. #### Investment

#### Transactions
Purchases

and

sales

of

investments (excluding

short

term

securities) for

the

year

ended

February

28,

2026,

aggregated

$653,291,524 and

$416,635,564,

respectively.

6. #### Credit

#### Risk

#### and

#### Defaulted

#### Securities
At

February

28,

2026,

the

Fund

had 34.8%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade as

determined

by

Nationally

Recognized

Statistical

Credit

Ratings

Organizations

and/or

internally,

by

investment

management

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

February

28,

2026,

the

aggregate

value

of

these

securities

was $24,942,458

representing 0.8%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying Schedule

of

Investments.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$

108,517,455

Long

term

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

98,154,154

Total

capital

loss

carryforwards

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

$206,671,609

#### 2026

#### 2025
Distributions

paid

from:

Ordinary

income

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

$7,412,135

$7,256,025

Tax

exempt

income

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

123,916,877

105,491,547

$131,329,012

$112,747,572

Cost

of

investments

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

$3,252,243,823

Unrealized

appreciation

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

$150,747,081

Unrealized

depreciation

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

(158,256,732)

Net

unrealized

appreciation

(depreciation)

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

$(7,509,651)

Distributable

earnings:

Undistributed

tax

exempt

income

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

$9,754,620

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

7. #### Concentration

#### of

#### Risk
The

Fund

invests

a

large

percentage

of

its total

assets

in

obligations

of

issuers

within California

and

U.S.

territories.

Such

concentration

may

subject

the

Fund

to

risks

associated

with

industrial

or

regional

matters,

and

economic,

political

or

legal

developments

occurring

within California

and

U.S.

territories. Investments

in

these

securities

are

sensitive

to

interest

rate

changes

and

credit

risk

of

the

issuer

and

may

subject

the

Fund

to

increased

market

volatility.

The

market

for

these

investments

may

be

limited,

which

may

make

them

difficult

to

buy

or

sell.

8. #### Credit

#### Facility
The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.995

billion

(Global

Credit

Facility)

which

matures

on

January

29,

2027. This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

may,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

February

28,

2026,

the Fund

did

not

use

the

Global

Credit

Facility.

9. #### Fair

#### Value

#### Measurements
The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

–

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

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of February

28,

2026,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund

#### Assets:
Investments

in

Securities:

a

Common

Stocks

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

$

—

$

—

$

—

b

$

—

Corporate

Bonds

:

Commercial

Services

&

Supplies

...........

—

—

16,092,950

16,092,950

Diversified

Consumer

Services

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

—

41,264,072

—

41,264,072

Electric

Utilities

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

—

9,715,012

—

9,715,012

Municipal

Bonds

:

Arizona

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

—

14,726,987

—

14,726,987

California

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

—

2,889,809,631

8,398,968

2,898,208,599

Florida

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

—

9,525,432

—

9,525,432

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

A

reconciliation

in

which

Level

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the year.

10. #### Operating

#### Segments
The Fund operates

as

a

single

operating

segment,

which

is

an

investment

portfolio.

The

portfolio

managers

assigned

to

the

Fund

within

the

Fund's

investment

manager serve

as

the

Chief

Operating

Decision

Maker

("CODM")

and

are

responsible

for

evaluating

the

Fund's

operating

results

and

allocating

resources

in

accordance

with

the

Fund's

investment

strategy.

Internal

reporting

provided

to

the

CODM

aligns

with

the

accounting

policies

and

measurement

principles

used

in

the financial

statements.

For

information

regarding

segment

assets,

segment

profit

or

loss,

and

significant

expenses,

refer

to

the Statement

of

Assets

and

Liabilities

and

the Statement

of

Operations,

along

with

the

related

notes

to

the financial

statements.

The Schedule

of

Investments

provides

details

of

the Fund's investments

that

generate

returns

such

as

interest,

dividends,

and

realized

and

unrealized

gains

or

losses.

Performance

metrics,

including

portfolio

turnover

and

expense

ratios,

are

disclosed

in

the Financial

Highlights.

11. #### Subsequent

#### Events
The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

#### Level

#### 1

#### Level

#### 2

#### Level

#### 3

#### Total

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

#### Assets:
(continued)

Investments

in

Securities:

a

(continued)

Municipal

Bonds:

(continued)

Minnesota

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

$

—

$

3,343,117

$

—

$

3,343,117

Texas

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

—

18,055,300

—

18,055,300

Virginia

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

—

5,119,961

—

5,119,961

Wisconsin

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

—

10,610,704

—

10,610,704

U.S.

Territories

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

American

Samoa

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

—

1,142,906

—

1,142,906

Guam

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

—

19,508,189

—

19,508,189

Pacific

Islands

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

—

2,162,600

—

2,162,600

Puerto

Rico

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

—

132,279,081

—

132,279,081

Virgin

Islands

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

—

10,242,856

—

10,242,856

Short

Term

Investments

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

—

52,736,406

—

52,736,406

Total

Investments

in

Securities

...........

$—

$3,220,242,254

$24,491,918

$3,244,734,172

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

b

Includes

financial

instruments

determined

to

have

no

value.

9. #### Fair

#### Value

#### Measurements
(continued)

Franklin

Municipal

Securities

Trust

Notes

to

Financial

Statements

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
(continued)

#### Abbreviations

#### Selected

#### Portfolio

#### AG
Assured

Guaranty,

Inc.

#### BAM
Build

America

Mutual

Assurance

Co.

#### COP
Certificate

of

Participation

#### ETM
Escrowed

to

Maturity

#### FHLMC
Federal

Home

Loan

Mortgage

Corp.

#### FNMA
Federal

National

Mortgage

Association

#### FRN
Floating

Rate

Note

#### GO
General

Obligation

#### LOC
Letter

of

Credit

#### NATL
National

Reinsurance

Corp.

#### SPA
Standby

Purchase

Agreement

Franklin

Municipal

Securities

Trust

Report

of

Independent

Registered

Public

Accounting

Firm

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

of

Franklin

Municipal

Securities

Trust

and

Shareholders

of

Franklin

California

High

Yield

Municipal

Fund

#### Opinion

#### on

#### the

#### Financial

#### Statements
We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

schedule

of

investments,

of

Franklin

California

High

Yield

Municipal

Fund

(the

"Fund")

as

of

February

28,

2026,

the

related

statement

of

operations

for

the

year

ended

February

28,

2026,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

February

28,

2026,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

four

years

in

the

period

ended

February

28,

2026,

the

period

June

1,

2021

to

February

28,

2022

and

the

year

ended

May

31,

2021

(collectively

referred

to

as

the

"financial

statements").

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

February

28,

2026,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

February

28,

2026

and

the

financial

highlights

for

each

of

the

four

years

in

the

period

ended

February

28,

2026,

the

period

June

1,

2021

to

February

28,

2022

and

the

year

ended

May

31,

2021

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

#### Basis

#### for

#### Opinion
These

financial

statements

are

the

responsibility

of

the

Fund's

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund's

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

Fund

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

February

28,

2026

by

correspondence

with

the

custodian,

private

placement

agents

and

broker;

when

replies

were

not

received

from

private

placement

agents

or

broker,

we

performed

other

audit

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

/s/PricewaterhouseCoopers

LLP

San

Francisco,

California

April

17,

2026

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

Group

of

Funds

since

1948. Franklin

Municipal

Securities

Trust

Tax

Information

(unaudited)

franklintempleton.com

Annual

Report

#### Franklin

#### California

#### High

#### Yield

#### Municipal

#### Fund
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

Fund

is

required

to

be

furnished

to

shareholders

with

respect

to

income

earned

and

distributions

paid

during

its

fiscal

year.

The

Fund

hereby

reports

the

following

amounts,

or

if

subsequently

determined

to

be

different,

the

maximum

allowable

amounts,

for

the

fiscal

year

ended

February

28,

2026:

#### Pursuant

#### to:

#### Amount

#### Reported
Exempt-Interest

Dividends

Distributed

§852(b)(5)(A)

$123,916,877

Section

163(j)

Interest

Earned

§163(j)

$7,412,135

Franklin

Municipal

Securities

Trust

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

Fund's

investment

manager

according

to

the

terms

of

the

agreement.

#### Board

#### Approval

#### of

#### Management

#### and

#### Subadvisory

#### Agreements
For

the

period

covered

by

this

report

Not

applicable.

MUN-AFSOI

04/26©

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.](fcmf-efp23702_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.](fcmf-efp23702_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.](fcmf-efp23702_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 Municipal Securities Trust**

---

| | |
|:---|:---|
| By: | /s/ Christopher Kings |
|  | Christopher Kings |
|  | Chief Executive Officer - Finance and Administration |

---

Date: April 30, 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: | April 30, 2026 |
| By: | /s/ Jeffrey White |
|  | Jeffrey White |
|  | Chief Financial Officer, Chief Accounting Officer and Treasurer |

---

Date: April 30, 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 Municipal Securities Trust;** 

&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: April 30, 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 Municipal Securities Trust**;

&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: April 30, 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 Municipal Securities Trust; (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 **February 28, 2026** (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 –**<br> **Finance and Administration**  | **Chief Financial Officer, Chief**<br> **Accounting Officer and Treasurer** |
| Franklin Municipal Securities Trust | Franklin Municipal Securities Trust |

---

---

| | |
|:---|:---|
| /s/ Christopher Kings | /s/ Jeffrey White |
| Christopher Kings | Jeffrey White |
| Date: April 30, 2026 | Date: April 30, 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.