N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-06481
 
Franklin Municipal Securities Trust
(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
 
Craig S. Tyle, 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: 5/31
 
Date of reporting period: 11/30/21
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
FRANKLIN
CALIFORNIA
HIGH
YIELD
MUNICIPAL
FUND
A
Series
of
Franklin
Municipal
Securities
Trust
November
30,
2021
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
November
30,
2021,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic,
benefiting
equities.
Growth
accelerated
in
2021’s
first
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
During
the
period’s
second
half,
investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
and
growth
slowed
in
2021’s
third
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
support
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
broad
quantitative
easing
measures
to
bolster
credit
markets.
The
Federal
Reserve
also
raised
its
economic
growth
and
inflation
projections
and
announced
plans
to
begin
decreasing
its
asset
purchases
in
November,
while
delaying
any
interest
rate
increases
until
reaching
its
goal
of
maximum
U.S.
employment.
During
the
six-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+0.56%
cumulative
total
return
as
investors
were
attracted
to
tax-
free
income
in
a
stable
interest-rate
environment.
1
Factors
contributing
to
this
investment
environment
for
municipals
included
fluctuating
demand,
the
reopening
of
businesses
and
increased
consumer
spending
that
benefited
municipal
security
issuers,
and
actions
by
the
Federal
Reserve
to
help
maintain
a
low
interest-rate
environment.
Franklin
California
High
Yield
Municipal
Fund’s
semiannual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
California
High
Yield
Municipal
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
November
30,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
8
Financial
Highlights
and
Statements
of
Investments
9
Financial
Statements
35
Notes
to
Financial
Statements
39
Shareholder
Information
47
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Franklin
California
High
Yield
Municipal
Fund
This
semiannual
report
for
Franklin
California
High
Yield
Municipal
Fund
covers
the
period
ended
November
30,
2021
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
a
high
level
of
income
exempt
from
federal
and
California
personal
income
taxes
by
normally
investing
at
least
80%
of
its
net
assets
in
municipal
securities
in
any
rating
category,
including
securities
rated
below
investment
grade,
that
pay
interest
free
from
such
taxes.
1
Its
secondary
goal
is
capital
appreciation
to
the
extent
possible
and
consistent
with
its
principal
investment
goal.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.49
on
May
31,
2021,
to
$11.46
on
November
30,
2021.
2
The
Fund’s
Class
A
shares
paid
dividends
totaling
16.2420
cents
per
share
for
the
reporting
period.
The
Performance
Summary
beginning
on
page
6
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.68%,
based
on
an
annualization
of
November’s
2.6648
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.91
on
November
30,
2021.
An
investor
in
the
2021
maximum
combined
effective
federal
and
California
personal
income
tax
bracket
of
53.10%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.71%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Municipal
Bond
Market
Overview
During
the
six
months
ended
November
30,
2021,
the
U.S.
and
the
rest
of
the
world
continued
to
manage
through
the
COVID-19
pandemic
that
has
caused
significant
economic
and
personal
hardship.
Daily
new
COVID-19
case
rates
rose
dramatically
throughout
the
summer
as
the
Delta
variant
caused
a
large
number
of
breakthrough
cases
(infections
of
vaccinated
individuals).
The
U.S.
Food
and
Drug
Administration
approved
booster
shots
for
most
individuals
to
further
increase
immunity.
However,
at
the
end
of
November
2021,
there
emerged
a
new
variant
to
the
disease
labeled
“Omicron,”
which
initially
appeared
in
Africa,
but
quickly
spread
to
Europe.
U.S.
health
officials
believed
that
it
was
only
a
matter
of
time
until
this
new
strain
reached
the
U.S.
Although
there
is
little
information
available
about
the
mutation,
there
are
concerns
that
it
could
be
more
resistant
to
current
vaccines.
U.S.
officials,
including
President
Biden,
have
stated
that
there
are
no
intentions
of
returning
the
U.S.
to
economic
shutdowns,
but
people’s
fears
may
influence
behavior
that
could
stall
economic
growth.
Third-quarter
2021
U.S.
gross
domestic
product
growth
disappointed
many
economists.
Employment
improved,
driving
the
unemployment
rate
to
4.2%
in
November
2021,
down
from
a
peak
of
14.8%
seen
in
April
2020.
Global
supply-chain
bottlenecks
and
rising
input
prices
continued
to
plague
the
manufacturing
sector,
limiting
output
growth
that
has
been
met
with
high
levels
of
demand
for
goods.
Inflation
still
remains
a
major
concern
for
markets
as
consumer
short-
term
inflation
expectations
continue
to
rise.
At
its
November
meeting,
the
U.S.
Federal
Reserve
(Fed)
announced
that
beginning
in
November
2021,
it
will
start
to
taper
its
purchases
of
both
U.S.
Treasuries
(USTs)
and
agency
mortgage-backed
securities
(MBS)
by
$10
billion
and
$5
billion
per
month,
respectively.
At
this
pace,
purchases
would
end
by
summer
2022.
The
removal
of
this
price-
insensitive
UST
and
MBS
buyer
may
lead,
in
our
opinion,
to
increased
volatility
in
markets,
which
could
put
pressure
on
municipal
bond
(muni)
valuations
as
they
tend
to
lag
UST
yield
curve
changes.
The
Fed
acknowledged
that
inflation
1.
The
Fund
may
invest
up
to
100%
of
its
assets
in
bonds
whose
interest
payments
are
subject
to
federal
alternative
minimum
tax.
All
or
a
significant
portion
of
the
income
on
these
obligations
may
be
subject
to
such
tax.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
14
.
Franklin
California
High
Yield
Municipal
Fund
4
franklintempleton.com
Semiannual
Report
pressures
have
been
stronger
than
previously
projected,
and
that
the
risks
to
the
outlook
are
skewed
more
in
the
direction
of
higher
inflation.
Strong
demand
pushed
ratios
of
30-year
muni
bonds
versus
UST
yields
in
June
2021
to
all-time
lows.
Although
these—
and
ratios
for
other
maturities—have
since
increased,
they
remain
at
historically
rich
levels.
At
times
of
increased
UST
volatility
throughout
the
six
months
under
review,
muni
bond
valuations
suffered
declines,
partially
due
to
lower
demand,
only
to
rally
once
stability
returned
to
the
market.
Muni
issuer
fundamentals
remained
strong
as
they
have
benefited
from
direct
fiscal
support
from
the
U.S.
government
and
the
reopening
of
businesses,
leading
to
increased
consumer
spending.
In
November
2021,
the
U.S.
Congress
and
President
Biden
passed
a
$1.1
trillion
infrastructure
bill,
which
included
$550
billion
in
new
spending
with
the
remainder
set
to
fund
the
reauthorization
of
the
Highway
Trust
Fund.
The
new
spending
is
spread
out
over
a
number
of
transportation
subsectors.
Funds
will
be
available
in
increments
over
the
next
five
years
and
could
result
in
additional
muni
issuance.
This
will
take
time
as
projects
are
selected
and
plans
are
created
and
executed.
With
funding
coming
in
over
several
years,
the
impact
on
the
muni
market
is
also
expected
to
play
out
over
several
years.
For
the
six-month
period,
U.S.
fixed
income
sectors
broadly
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
500
®
Index,
which
posted
a
+9.38%
total
return
for
the
period.
3
Investment-grade
muni
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+0.56%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
+1.43%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
+1.94%
total
return.
3
State
Update
During
the
six-month
period,
California’s
large,
diverse
economy,
with
its
recent
trend
of
strong
revenue
performance,
and
the
use
of
surplus
funds
to
build
reserves,
has
enabled
the
state
to
deal
with
economic
and
fiscal
challenges
due
to
COVID-19.
California’s
unemployment
rate
began
the
period
at
7.9%
and
ended
at
6.9%,
compared
with
the
4.2%
national
rate.
The
state’s
enacted
fiscal
year
(FY)
2021
budget
provided
increased
spending,
including
tax
rebates
for
low-income
families,
while
maintaining
strong
reserves
as
a
result
of
the
significant
FY
2020
budget
surplus,
which
was
in
contrast
to
the
estimated
budget
shortfall
estimated
a
year
ago.
California’s
net
tax-
supported
debt
was
$2,144
per
capita
and
3.0%
of
personal
income,
compared
with
the
$1,039
and
1.9%
national
medians,
respectively.
4
Independent
credit
rating
agency
Moody’s
Investors
Service
assigned
California’s
general
obligations
bonds’
an
Aa2
rating
with
a
stable
outlook.
5
The
rating
reflected
Moody’s
view
of
the
state’s
large
and
diverse
economy,
strong
revenue
collection
throughout
the
pandemic,
and
use
of
surpluses
to
build
reserves.
Moody’s
noted
challenges,
including
high
revenue
volatility
given
the
state’s
disproportionate
dependence
on
income
taxes,
constrained
flexibility
to
adjust
spending
and
revenue,
and
relatively
high
debt
and
recurring
costs.
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
Consistent
with
our
strategy,
we
sought
to
remain
invested
in
bonds
that
have
an
average
weighted
maturity
of
15
to
30
years
with
good
call
features.
Based
on
the
combination
of
our
value-oriented
philosophy
of
investing
primarily
for
Portfolio
Composition
11/30/21
%
of
Total
Investments
*
Special
Tax
23.91%
Transportation
15.77%
Housing
11.71%
Education
9.75%
Local
8.92%
Industrial
Dev.
Revenue
and
Pollution
Control
7.97%
Health
Care
7.93%
Refunded
7.12%
Utilities
3.17%
Other
Revenue
Bonds
2.39%
Lease
0.69%
State
General
Obligation
0.67%
*Does
not
include
cash
and
cash
equivalents.
3.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
4.
Source:
Moody’s
Investors
Service,
State
government
–
U.S.:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
5.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Franklin
California
High
Yield
Municipal
Fund
5
franklintempleton.com
Semiannual
Report
income
and
a
positively
sloping
municipal
yield
curve,
in
which
interest
rates
for
longer-term
bonds
are
higher
than
those
for
shorter-term
bonds,
we
favored
the
use
of
longer-
term
bonds.
We
believe
our
conservative,
buy-and-hold
investment
strategy
can
help
us
achieve
high,
current,
tax-
free
income
for
shareholders.
Thank
you
for
your
continued
participation
in
Franklin
California
High
Yield
Municipal
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
November
30,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
November
30,
2021
Franklin
California
High
Yield
Municipal
Fund
6
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
11/30/21
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+1.16%
-2.64%
1-Year
+4.46%
+0.54%
5-Year
+29.40%
+4.49%
10-Year
+75.20%
+5.36%
Advisor
6-Month
+1.20%
+1.20%
1-Year
+4.72%
+4.72%
5-Year
+30.29%
+5.43%
10-Year
+77.37%
+5.90%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.68%
5.71%
1.54%
3.28%
Advisor
3.05%
6.50%
1.85%
3.94%
See
page
7
for
Performance
Summary
footnotes.
Franklin
California
High
Yield
Municipal
Fund
Performance
Summary
7
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Investments
in
lower-rated
bonds
include
higher
risk
of
default
and
loss
of
principal.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
in-
vest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
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.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
November
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
11/30/21.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/24/21
for
the
maximum
combined
effective
federal
and
California
state
personal
income
tax
rate
of
53.10%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(6/1/21–11/30/21)
Share
Class
Net
Investment
Income
A
$0.162420
A1
$0.171206
C
$0.138671
R6
$0.179165
Advisor
$0.177072
Total
Annual
Operating
Expenses
8
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
California
High
Yield
Municipal
Fund
8
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
6/1/21
Ending
Account
Value
11/30/21
Expenses
Paid
During
Period
6/1/21–11/30/21
1,2
Ending
Account
Value
11/30/21
Expenses
Paid
During
Period
6/1/21–11/30/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,011.60
$4.00
$1,021.09
$4.02
0.79%
A1
$1,000
$1,012.40
$3.26
$1,021.83
$3.27
0.65%
C
$1,000
$1,009.40
$6.01
$1,019.09
$6.04
1.19%
R6
$1,000
$1,013.00
$2.57
$1,022.51
$2.58
0.51%
Advisor
$1,000
$1,012.00
$2.75
$1,022.34
$2.76
0.54%
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
Year
Ended
May
31,
2019
a
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$11.49
$10.81
$11.10
$10.70
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.17
0.35
0.34
0.27
Net
realized
and
unrealized
gains
(losses)
........................
(0.04)
0.67
(0.29)
0.41
Total
from
investment
operations
.................................
0.13
1.02
0.05
0.68
Less
distributions
from:
Net
investment
income
.......................................
(0.16)
(0.34)
(0.34)
(0.28)
Net
asset
value,
end
of
period
...................................
$11.46
$11.49
$10.81
$11.10
Total
return
d
................................................
1.16%
9.57%
0.43%
6.56%
Ratios
to
average
net
assets
e
Expenses
f
..................................................
0.79%
0.79%
0.80%
0.83%
Net
investment
income
........................................
2.89%
3.10%
3.10%
3.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$728,741
$618,967
$425,757
$244,196
Portfolio
turnover
rate
.........................................
6.25%
9.20%
23.29%
13.91%
a
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.47
$10.79
$11.08
$10.70
$10.89
$11.10
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.18
0.37
0.36
0.40
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
(0.04)
0.67
(0.29)
0.39
(0.19)
(0.22)
Total
from
investment
operations
........
0.14
1.04
0.07
0.79
0.20
0.18
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.36)
(0.36)
(0.41)
(0.39)
(0.39)
Net
asset
value,
end
of
period
..........
$11.44
$11.47
$10.79
$11.08
$10.70
$10.89
Total
return
c
.......................
1.24%
9.76%
0.58%
7.56%
1.92%
1.71%
Ratios
to
average
net
assets
d
Expenses
.........................
0.65%
e
0.64%
e
0.65%
e
0.68%
e
0.66%
0.63%
Net
investment
income
...............
3.05%
3.27%
3.25%
3.70%
3.63%
3.66%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,237,522
$1,254,701
$1,282,022
$1,386,291
$1,378,169
$1,377,514
Portfolio
turnover
rate
................
6.25%
9.20%
23.29%
13.91%
11.08%
19.73%
a
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
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.56
$10.87
$11.17
$10.78
$10.97
$11.17
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.14
0.30
0.30
0.34
0.33
0.34
Net
realized
and
unrealized
gains
(losses)
(0.03)
0.69
(0.30)
0.40
(0.19)
(0.21)
Total
from
investment
operations
........
0.11
0.99
—
0.74
0.14
0.13
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.30)
(0.30)
(0.35)
(0.33)
(0.33)
Net
asset
value,
end
of
period
..........
$11.53
$11.56
$10.87
$11.17
$10.78
$10.97
Total
return
c
.......................
0.94%
9.18%
(0.04)%
7.01%
1.34%
1.22%
Ratios
to
average
net
assets
d
Expenses
.........................
1.19%
e
1.19%
e
1.20%
e
1.23%
e
1.21%
1.18%
Net
investment
income
...............
2.48%
2.69%
2.70%
3.15%
3.08%
3.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$195,959
$223,652
$253,579
$272,186
$327,022
$358,308
Portfolio
turnover
rate
................
6.25%
9.20%
23.29%
13.91%
11.08%
19.73%
a
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
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
Year
Ended
May
31,
2018
a
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$11.51
$10.82
$11.12
$10.74
$10.88
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.38
0.38
0.41
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.03)
0.68
(0.30)
0.39
(0.15)
Total
from
investment
operations
....................
0.15
1.06
0.08
0.80
0.20
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.37)
(0.38)
(0.42)
(0.34)
Net
asset
value,
end
of
period
......................
$11.48
$11.51
$10.82
$11.12
$10.74
Total
return
d
...................................
1.30%
9.97%
0.63%
7.66%
1.84%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
......
0.52%
0.52%
0.52%
0.57%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.51%
f
0.51%
f
0.51%
f
0.55%
f
0.53%
Net
investment
income
...........................
3.17%
3.37%
3.39%
3.83%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$61,364
$45,216
$26,741
$21,214
$13,004
Portfolio
turnover
rate
............................
6.25%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
August
1,
2017
(effective
date)
to
May
31,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$11.50
$10.82
$11.11
$10.73
$10.91
$11.12
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.18
0.38
0.37
0.41
0.40
0.41
Net
realized
and
unrealized
gains
(losses)
(0.04)
0.67
(0.29)
0.39
(0.18)
(0.22)
Total
from
investment
operations
........
0.14
1.05
0.08
0.80
0.22
0.19
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.37)
(0.37)
(0.42)
(0.40)
(0.40)
Net
asset
value,
end
of
period
..........
$11.46
$11.50
$10.82
$11.11
$10.73
$10.91
Total
return
c
.......................
1.20%
9.84%
0.68%
7.64%
2.10%
1.80%
Ratios
to
average
net
assets
d
Expenses
.........................
0.54%
e
0.54%
e
0.55%
e
0.58%
e
0.56%
0.53%
Net
investment
income
...............
3.14%
3.35%
3.35%
3.80%
3.73%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,210,542
$1,113,278
$903,694
$889,990
$748,355
$720,890
Portfolio
turnover
rate
................
6.25%
9.20%
23.29%
13.91%
11.08%
19.73%
a
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
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited),
November
30,
2021
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
0.2%
Commercial
Services
&
Supplies
0.2%
a
CalPlant
I
LLC
,
b
21A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
$
1,370,000
$
1,370,000
21B,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
5,220,000
5,220,000
6,590,000
Total
Corporate
Bonds
(Cost
$6,590,000)
.......................................
6,590,000
Municipal
Bonds
93.9%
California
87.1%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
13-1
,
Special
Tax
,
2016
,
5
%
,
9/01/46
................................
1,400,000
1,545,513
Artesia
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation,
2007,
5.5%,
6/01/42
....................................
6,355,000
6,372,489
Tax
Allocation,
2007,
5.7%,
6/01/42
....................................
2,630,000
2,637,657
Tax
Allocation,
2009,
7.7%,
6/01/46
....................................
3,035,000
3,049,144
Baldwin
Park
Unified
School
District
,
GO
,
2013
,
Pre-Refunded
,
BAM
Insured
,
Zero
Cpn
.,
8/01/42
.....................................................
10,000,000
2,755,017
Bay
Area
Toll
Authority
,
Revenue
,
2013
S-4
,
Pre-Refunded
,
5.25
%
,
4/01/53
........
15,000,000
16,010,198
California
Community
College
Financing
Authority
,
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/48
..........
225,000
261,308
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/53
..........
6,785,000
7,858,116
a
California
Community
Housing
Agency
,
Annadel
Apartments,
Revenue,
144A,
2019
A,
5%,
4/01/49
..................
27,050,000
29,615,590
Arbors
Apartments,
Revenue,
144A,
2020
A,
5%,
8/01/50
....................
7,500,000
8,411,605
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
144A,
2021
A-2,
4%,
8/01/47
12,500,000
12,801,859
K
Street
Flats,
Revenue,
144A,
2021
A-2,
4%,
8/01/50
......................
11,290,000
11,406,919
Serenity
at
Larkspur
Apartments,
Revenue,
144A,
2020
A,
5%,
2/01/50
.........
14,525,000
16,147,076
Verdant
at
Green
Valley
Apartments,
Revenue,
144A,
2019
A,
5%,
8/01/49
.......
23,000,000
25,512,571
California
County
Tobacco
Securitization
Agency
,
Revenue,
2020
B-1,
Refunding,
1.75%,
6/01/30
...........................
150,000
150,803
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................
83,010,000
16,638,591
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................................................
13,420,000
3,592,981
Merced
County
Tobacco
Funding
Corp.,
Revenue,
2020
B,
Refunding,
5%,
6/01/50
3,000,000
3,563,709
Sonoma
County
Securitization
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn
.,
6/01/55
........................................................
10,000,000
2,509,461
California
Educational
Facilities
Authority
,
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
.......
1,265,000
1,549,337
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
.......
1,125,000
1,375,844
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/44
.......
1,610,000
1,945,500
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......
9,000,000
10,831,090
Chapman
University,
Revenue,
2015,
5%,
4/01/40
.........................
5,000,000
5,659,294
Leland
Stanford
Junior
University
(The),
Revenue,
V-1,
5%,
5/01/49
............
10,000,000
15,860,934
Loma
Linda
University,
Revenue,
2017
A,
Refunding,
5%,
4/01/42
.............
8,500,000
10,003,544
University
of
the
Pacific,
Revenue,
2015,
Refunding,
5%,
11/01/36
.............
3,000,000
3,476,703
a
California
Enterprise
Development
Authority
,
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/36
250,000
288,379
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
630,000
704,365
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
845,000
936,483
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
3/01/39
........................................................
8,190,000
9,063,531
California-Nevada
Methodist
Homes,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
7/01/45
..............................................
4,500,000
5,119,777
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Health
Facilities
Financing
Authority,
(continued)
Children's
Hospital
Los
Angeles
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
8/15/49
........................................................
$
3,375,000
$
3,776,260
El
Camino
Hospital,
Revenue,
2017,
4%,
2/01/42
..........................
6,500,000
7,283,398
El
Camino
Hospital,
Revenue,
2017,
5%,
2/01/42
..........................
5,000,000
6,026,082
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2014
A,
5%,
8/15/43
..............................................
7,160,000
7,982,080
Sutter
Health
Obligated
Group,
Revenue,
2016
B,
Pre-Refunded,
5%,
11/15/46
...
10,985,000
13,372,718
Sutter
Health
Obligated
Group,
Revenue,
2016
B,
5%,
11/15/46
...............
15,940,000
18,909,504
California
Housing
Finance
Agency
,
Revenue,
2019-2,
A,
4%,
3/20/33
......................................
54,341
62,684
Revenue,
2021-1,
A,
3.5%,
11/20/35
...................................
4,952,388
5,656,927
a
Redwood
Gardens
Renewal
LP,
Revenue,
144A,
2021
N-S,
4%,
3/01/37
........
3,165,000
3,179,444
a,c
Shermanair
Apartments
Owner
LP,
Revenue,
144A,
2021
Q-S,
Mandatory
Put,
4.5%,
9/01/36
........................................................
4,000,000
4,190,088
a
California
Infrastructure
&
Economic
Development
Bank
,
Goodwill
Industries
of
Sacramento
Valley
and
Northern
Nevada,
Inc.,
Revenue,
144A,
2016
A,
5%,
1/01/47
.........................................
10,360,000
9,925,154
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,600,000
1,805,185
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
2,300,000
2,582,744
California
Municipal
Finance
Authority
,
a
Revenue,
144A,
2021
B,
Refunding,
4%,
10/01/37
.........................
8,150,000
7,724,368
Special
Tax,
2020
B,
4%,
9/01/43
......................................
1,140,000
1,279,249
Special
Tax,
2020
B,
4%,
9/01/50
......................................
1,600,000
1,784,924
Special
Tax,
2021
A,
4%,
9/01/36
......................................
535,000
607,011
Special
Tax,
2021
A,
4%,
9/01/41
......................................
1,560,000
1,759,912
Special
Tax,
2021
A,
4%,
9/01/46
......................................
1,925,000
2,153,767
Special
Tax,
2021
A,
4%,
9/01/51
......................................
2,255,000
2,516,008
1717
University
Associates
LLC,
Revenue,
2020
A-S,
5%,
9/01/57
.............
1,175,000
1,175,749
ACI
Royal
York,
Inc.,
Revenue,
2020
A,
4%,
2/15/55
........................
2,375,000
2,448,673
American
Heritage/Escondido/Heritage
K-8
Charter
School
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/36
.............................
3,000,000
3,422,382
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/36
...............
1,100,000
1,308,584
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/39
...............
1,000,000
1,183,400
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/35
.....................
600,000
677,198
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/50
.....................
3,250,000
3,632,609
a
California
Baptist
University,
Revenue,
144A,
2015
A,
5.375%,
11/01/40
.........
5,000,000
5,725,538
a
California
Baptist
University,
Revenue,
144A,
2015
A,
5.5%,
11/01/45
...........
10,000,000
11,424,669
a
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/36
............
2,500,000
2,916,851
a
Capital
Christian
Center,
Revenue,
144A,
2021
A,
5%,
10/01/51
...............
8,425,000
9,175,294
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5%,
8/15/30
.....
1,000,000
1,088,427
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/39
...
1,200,000
1,301,616
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/49
...
3,500,000
3,777,853
CHF-Davis
I
LLC,
Revenue,
2018,
5%,
5/15/51
...........................
5,000,000
6,012,240
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
4%,
5/15/46
................
4,965,000
5,804,009
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/51
................
8,050,000
8,524,149
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/54
................
7,085,000
7,471,452
CHF-Riverside
I
LLC,
Revenue,
2018,
5%,
5/15/43
.........................
1,500,000
1,821,102
CHF-Riverside
II
LLC,
Revenue,
2019,
5%,
5/15/49
........................
9,575,000
11,505,674
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/39
.
1,120,000
1,306,780
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/49
.
4,250,000
4,872,984
a
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/54
.
1,875,000
2,142,060
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
3%,
12/01/23
.......................................................
100,000
102,593
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
4%,
12/01/26
.......................................................
200,000
218,961
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/27
.......................................................
$
100,000
$
116,108
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/29
.......................................................
50,000
59,657
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/31
.......................................................
130,000
156,547
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/36
.......................................................
350,000
420,040
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/46
.......................................................
1,000,000
1,178,562
a
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/54
.......................................................
1,000,000
1,173,648
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
2/01/40
............................................
5,000,000
5,658,228
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
2/01/42
............................................
10,000,000
11,194,677
Congregational
Home
Obligated
Group
(The),
Revenue,
2019,
Refunding,
5%,
11/15/39
.......................................................
2,670,000
3,118,470
Congregational
Home
Obligated
Group
(The),
Revenue,
2019,
Refunding,
5%,
11/15/49
.......................................................
480,000
555,163
a
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4%,
11/01/36
.......
1,395,000
1,440,210
a
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4.5%,
11/01/46
......
1,600,000
1,662,088
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/32
.............
3,020,000
3,508,591
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/39
.............
6,525,000
7,509,769
Developmental
Services
Support
Foundation
for
Kern
Inyo
and
Mono
Counties,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
.............................
3,895,000
4,730,221
Eisenhower
Medical
Center,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.........
2,625,000
3,152,014
HumanGood
California
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
10/01/44
12,885,000
15,259,064
HumanGood
California
Obligated
Group,
Revenue,
2021,
3%,
10/01/46
.........
5,000,000
5,156,371
Inland
Counties
Regional
Center,
Inc.,
Revenue,
2015,
Refunding,
5%,
6/15/37
...
9,965,000
11,358,999
a
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/36
.....
2,275,000
2,533,394
a
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/46
.....
2,775,000
3,052,187
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/43
20,665,000
24,669,596
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
4%,
12/31/47
6,085,000
6,779,283
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/47
15,500,000
18,466,633
Literacy
First
Charter
School
Issuer
LLC,
Revenue,
2019
A,
5%,
12/01/39
.......
1,145,000
1,394,494
Literacy
First
Charter
School
Issuer
LLC,
Revenue,
2019
A,
5%,
12/01/49
.......
2,775,000
3,324,661
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/35
......
1,100,000
1,206,026
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/44
......
1,050,000
1,143,849
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2017
A,
5.25%,
11/01/47
..
3,000,000
3,475,191
a
P3
Claremont
Holdings
LLC,
Revenue,
144A,
2020
A,
5%,
7/01/30
.............
520,000
610,435
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/31
..
1,000,000
1,141,972
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/36
..
2,750,000
3,119,662
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/41
..
1,750,000
1,972,132
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
3.875%,
7/01/28
1,210,000
1,311,569
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/38
..
1,100,000
1,292,871
a
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/49
..
3,600,000
4,180,826
ROP
WMCC
LLC,
Revenue,
2013
A,
Pre-Refunded,
5.625%,
11/15/33
..........
1,000,000
1,102,190
ROP
WMCC
LLC,
Revenue,
2013
A,
Pre-Refunded,
6%,
11/15/48
.............
4,000,000
4,435,425
a
Santa
Rosa
Academy,
Revenue,
144A,
2015,
5.125%,
7/01/35
................
450,000
495,237
a
Santa
Rosa
Academy,
Revenue,
144A,
2015,
5.375%,
7/01/45
................
1,400,000
1,534,489
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.5%,
12/01/33
.....................................
3,115,000
3,358,890
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.75%,
12/01/43
....................................
7,000,000
7,540,537
a
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/41
...............
925,000
1,030,944
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
a
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/51
...............
$
1,385,000
$
1,522,123
a
STREAM
Charter
School,
Revenue,
144A,
2020
B,
6.4%,
6/15/32
.............
865,000
915,643
University
of
La
Verne,
Revenue,
2017
A,
Refunding,
5%,
6/01/43
.............
5,000,000
5,961,888
a
California
Pollution
Control
Financing
Authority
,
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7%,
7/01/22
........................
3,500,000
2,100,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
13,000,000
7,800,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
11,500,000
6,900,000
CalPlant
I
LLC,
Revenue,
144A,
2020,
7.5%,
7/01/32
.......................
4,500,000
3,825,000
Poseidon
Resources
Channelside
LP,
Revenue,
144A,
2012,
5%,
11/21/45
......
19,965,000
20,706,409
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
6.75%,
12/01/28
..........
925,000
841,826
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
5,425,000
4,515,784
California
Public
Finance
Authority
,
a
Crossroads
Christian
Schools
Obligated
Group,
Revenue,
144A,
2020,
5%,
1/01/56
4,015,000
4,172,317
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
10/15/37
.......................................................
1,100,000
1,292,982
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
10/15/47
.......................................................
5,000,000
5,828,572
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/27
............................................
1,475,000
1,329,806
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/32
............................................
4,030,000
3,623,262
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/37
............................................
5,370,000
4,821,978
a
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/47
............................................
16,110,000
14,445,262
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/36
.......................................................
1,000,000
1,177,398
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/51
.......................................................
1,000,000
1,147,889
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/56
.......................................................
1,000,000
1,144,833
a
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
B-1,
Refunding,
3.125%,
5/15/29
........................................................
2,510,000
2,544,974
California
School
Finance
Authority
,
a
Revenue,
144A,
2016,
Pre-Refunded,
5%,
8/01/41
.........................
190,000
221,167
a
Revenue,
144A,
2016,
5%,
8/01/41
....................................
2,010,000
2,266,159
Alliance
for
College
Ready
Public
Schools
Obligated
Group,
Revenue,
2016
C,
5%,
7/01/46
........................................................
10,000,000
11,236,911
a,e
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
.......
1,335,000
1,408,428
a,e
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
.......
3,675,000
3,840,532
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/35
........................................................
1,000,000
1,134,011
a
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/45
........................................................
1,100,000
1,233,853
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/37
.......................................................
1,485,000
1,743,043
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/44
.......................................................
5,610,000
6,509,866
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/40
.....
500,000
597,535
a
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/50
.....
3,570,000
4,210,564
a
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/48
...............
1,000,000
1,113,527
a
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/56
...............
1,710,000
1,896,765
a
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/40
...........
225,000
259,058
a
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/50
...........
1,275,000
1,452,137
a
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/58
...........
1,000,000
1,133,345
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
School
Finance
Authority,
(continued)
a
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/43
........................................................
$
4,000,000
$
4,557,196
a
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/49
........................................................
3,800,000
4,307,805
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/35
.
2,525,000
2,821,964
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/45
.
3,500,000
3,874,460
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/38
.
1,000,000
1,191,986
a
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/48
.
1,750,000
2,052,965
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
4%,
6/01/31
.....................
250,000
272,634
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/41
.....................
435,000
493,336
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/51
.....................
600,000
673,184
a
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/61
.....................
1,320,000
1,466,115
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/35
1,200,000
1,352,810
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/45
1,675,000
1,869,985
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
7/01/47
1,500,000
1,739,783
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/39
1,000,000
1,223,896
a
Kipp
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/54
3,300,000
3,966,617
a
Larchmont
Schools,
Revenue,
144A,
2018
A,
5%,
6/01/55
...................
2,050,000
2,282,730
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
3%,
7/01/30
.....
365,000
384,628
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/45
.....
825,000
948,337
a
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/55
.....
1,235,000
1,407,577
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/31
............
1,000,000
1,120,290
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/36
............
4,500,000
5,021,949
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/41
............
1,000,000
1,103,146
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/51
............
4,300,000
4,669,378
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
2021
A,
4%,
11/01/55
............
1,400,000
1,511,526
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/30
........
1,750,000
2,009,861
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/37
........
2,000,000
2,254,448
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/47
........
1,975,000
2,191,530
a
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/52
........
1,340,000
1,483,617
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
6/01/34
....
750,000
838,770
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.125%,
6/01/47
.
845,000
932,362
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.25%,
6/01/52
..
980,000
1,084,288
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/30
....
315,000
364,141
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/37
....
360,000
408,928
a
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/47
....
1,720,000
1,923,641
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/31
........................................................
260,000
287,583
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/41
........................................................
600,000
649,730
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/51
........................................................
800,000
854,555
a
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/61
........................................................
1,300,000
1,374,436
a
Summit
Public
Schools
Obligated
Group,
Revenue,
144A,
2017,
5%,
6/01/47
.....
1,500,000
1,714,552
California
State
University
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
11/01/47
...........
14,980,000
17,390,958
California
Statewide
Communities
Development
Authority
,
Revenue,
2015,
Refunding,
5%,
9/02/40
.................................
2,230,000
2,478,424
Special
Assessment,
2016
A,
5%,
9/02/36
...............................
1,035,000
1,188,045
Special
Assessment,
2016
A,
5%,
9/02/45
...............................
2,250,000
2,555,568
Special
Assessment,
2017
A,
4%,
9/02/27
...............................
1,545,000
1,669,858
Special
Assessment,
2017
A,
5%,
9/02/37
...............................
1,975,000
2,308,987
Special
Assessment,
2017
A,
5%,
9/02/46
...............................
2,460,000
2,844,931
Special
Assessment,
2017
B,
5%,
9/02/37
...............................
3,260,000
3,832,668
Special
Assessment,
2017
B,
5%,
9/02/47
...............................
2,520,000
2,928,405
Special
Assessment,
2017
C,
5%,
9/02/37
...............................
4,605,000
5,356,456
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Special
Assessment,
2018
A,
5%,
9/02/38
...............................
$
4,910,000
$
5,901,936
Special
Assessment,
2018
A,
5%,
9/02/47
...............................
3,745,000
4,437,606
Special
Assessment,
2018
B,
5%,
9/02/43
...............................
4,690,000
5,591,608
Special
Assessment,
2018
B,
5%,
9/02/48
...............................
4,605,000
5,453,016
Special
Assessment,
2018
C,
5%,
9/02/38
...............................
6,000,000
7,128,218
Special
Assessment,
2018
C,
5%,
9/02/48
...............................
6,605,000
7,753,115
Special
Assessment,
2019
A,
5%,
9/02/39
...............................
1,600,000
1,937,358
Special
Assessment,
2019
A,
5%,
9/02/44
...............................
940,000
1,127,659
Special
Assessment,
2019
A,
5%,
9/02/48
...............................
945,000
1,127,883
Special
Assessment,
2019
B,
5%,
9/02/39
...............................
1,060,000
1,276,757
Special
Assessment,
2019
C,
5%,
9/02/39
...............................
850,000
1,036,026
Special
Assessment,
2020
A,
5%,
9/02/40
...............................
1,250,000
1,540,933
Special
Assessment,
2020
A,
4%,
9/02/50
...............................
900,000
1,019,852
Special
Assessment,
2020
A,
5%,
9/02/50
...............................
1,000,000
1,207,574
Special
Assessment,
2020
B,
4%,
9/02/40
...............................
1,125,000
1,297,259
Special
Assessment,
2020
B,
4%,
9/02/50
...............................
1,370,000
1,557,093
Special
Assessment,
2021
A,
4%,
9/02/41
...............................
2,000,000
2,310,948
Special
Assessment,
2021
A,
4%,
9/02/51
...............................
2,000,000
2,272,377
Special
Assessment,
2021
B,
4%,
9/02/41
...............................
3,285,000
3,755,467
Special
Assessment,
2021
B,
4%,
9/02/51
...............................
5,150,000
5,784,742
Aldersly
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/15/32
...........
750,000
826,545
Aldersly
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/15/40
...........
1,010,000
1,098,955
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/35
.........
2,000,000
2,247,435
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/45
.........
3,810,000
4,242,929
California
Baptist
University,
Revenue,
2014
A,
5.125%,
11/01/23
..............
210,000
223,208
California
Baptist
University,
Revenue,
2014
A,
6.125%,
11/01/33
..............
1,565,000
1,716,025
California
Baptist
University,
Revenue,
2014
A,
6.375%,
11/01/43
..............
4,035,000
4,411,118
a
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/32
...
1,135,000
1,358,283
a
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/41
...
1,875,000
2,200,946
CHF-Irvine
LLC,
Revenue,
2016,
Refunding,
5%,
5/15/40
....................
1,500,000
1,739,347
CHF-Irvine
LLC,
Revenue,
2017,
5%,
5/15/42
............................
710,000
843,723
Collis
P
and
Howard
Huntington
Memorial
Hospital
Obligated
Group,
Revenue,
2014
B,
Pre-Refunded,
5%,
7/01/44
.......................................
4,450,000
4,983,160
Collis
P
and
Howard
Huntington
Memorial
Hospital
Obligated
Group,
Revenue,
2018,
5%,
7/01/43
....................................................
1,000,000
1,209,013
Collis
P
and
Howard
Huntington
Memorial
Hospital
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
....................................................
6,000,000
6,766,793
Community
Facilities
District
No.
2015-01,
Special
Tax,
2015-1,
4%,
9/01/50
......
1,725,000
1,979,673
Community
Facilities
District
No.
2015-01,
Special
Tax,
2020,
4%,
9/01/40
.......
700,000
805,944
Community
Facilities
District
No.
2015-01,
Special
Tax,
2020,
4%,
9/01/50
.......
1,335,000
1,514,993
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2016
A,
Refunding,
5%,
9/01/36
.....................................
1,000,000
1,120,746
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2016
A,
Refunding,
5%,
9/01/45
.....................................
1,500,000
1,667,444
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/37
................................................
1,225,000
1,449,648
Community
Facilities
District
No.
2015-01
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/47
................................................
2,000,000
2,340,565
Community
Facilities
District
No.
2016-02,
Special
Tax,
2016
A,
5%,
9/01/46
......
10,945,000
12,373,488
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/39
.......
1,230,000
1,497,127
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/49
.......
3,000,000
3,603,082
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/40
.......
3,845,000
4,420,303
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/50
.......
3,845,000
4,360,146
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/39
.......
1,735,000
2,080,861
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/48
.......
2,000,000
2,368,161
Community
Facilities
District
No.
2020-01,
Special
Tax,
2021,
4%,
9/01/41
.......
560,000
653,454
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Community
Facilities
District
No.
2020-01,
Special
Tax,
2021,
4%,
9/01/51
.......
$
700,000
$
804,484
Community
Facilities
District
No.
2020-02,
Special
Tax,
2021,
4%,
9/01/41
.......
730,000
834,522
Community
Facilities
District
No.
2020-02,
Special
Tax,
2021,
4%,
9/01/51
.......
1,350,000
1,517,586
e
Community
Facilities
District
No.
2021-01,
Special
Tax,
2021,
4%,
9/01/51
.......
2,000,000
2,208,279
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2013
C,
Pre-
Refunded,
5.625%,
12/01/36
........................................
8,000,000
8,834,357
Enloe
Medical
Center,
Revenue,
2015,
Refunding,
California
Mortgage
Insured,
5%,
8/15/38
........................................................
6,000,000
6,988,793
Eskaton
Properties,
Inc.
Obligated
Group,
Revenue,
2012,
5.25%,
11/15/34
......
4,350,000
4,489,000
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/46
12,735,000
14,428,994
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/34
.........
375,000
455,583
a
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/39
.........
950,000
1,140,918
a
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5%,
12/01/41
...................................................
1,245,000
1,430,444
a
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
52,005,000
59,861,073
Los
Angeles
Jewish
Home
for
the
Aging
Obligated
Group,
Revenue,
2014
A,
Pre-
Refunded,
California
Mortgage
Insured,
5%,
8/01/44
......................
2,450,000
2,578,513
Marin
General
Hospital
Obligated
Group,
Revenue,
2018
A,
4%,
8/01/45
........
1,500,000
1,547,604
Methodist
Hospital
of
Southern
California
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
1/01/48
............................................
5,000,000
5,922,956
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/39
.............
4,325,000
4,764,481
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
8,000,000
8,675,312
a
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/52
.............
2,635,000
2,852,049
Capistrano
Unified
School
District
,
Community
Facilities
District
No.
2005-1
,
Special
Tax
,
2013
,
Pre-Refunded
,
5.5
%
,
9/01/43
................................
4,955,000
5,401,838
Casitas
Municipal
Water
District
,
Community
Facilities
District
No.
2013-1
OJAI,
Special
Tax,
2017
B,
BAM
Insured,
5%,
9/01/42
....................................................
8,000,000
9,643,134
Community
Facilities
District
No.
2013-1
OJAI,
Special
Tax,
2017
B,
BAM
Insured,
5.25%,
9/01/47
..................................................
5,000,000
6,158,267
Centinela
Valley
Union
High
School
District
,
GO,
2012
B,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/45
..................
42,000,000
10,735,633
GO,
2014
C,
Pre-Refunded,
5%,
8/01/35
................................
4,195,000
4,712,925
Central
School
District
,
GO,
A,
5%,
8/01/44
................................................
10,990,000
12,804,101
Chino
Community
Facilities
District
,
City
of
Chino
Community
Facilities
District
No.
2019-1,
Special
Tax,
2019-1,
4%,
9/01/40
........................................................
500,000
566,026
City
of
Chino
Community
Facilities
District
No.
2019-1,
Special
Tax,
2019-1,
4%,
9/01/51
........................................................
1,000,000
1,120,032
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1,
Special
Tax,
2020,
4%,
9/01/42
........
775,000
878,052
Community
Facilities
District
No.
2016-1,
Special
Tax,
2020,
4%,
9/01/50
........
1,450,000
1,630,195
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/27
........
460,000
518,946
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/28
........
520,000
594,069
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/29
........
530,000
607,708
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/30
........
360,000
411,637
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/35
........
410,000
466,049
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/41
........
1,000,000
1,134,944
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/46
........
1,000,000
1,127,389
Community
Facilities
District
No.
2016-1,
Special
Tax,
2021,
4%,
9/01/51
........
150,000
168,553
a
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/31
..................
400,000
463,253
a
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/36
..................
700,000
807,157
a
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/51
..................
1,700,000
1,922,983
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Beaumont
,
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019,
5%,
9/01/44
........
$
300,000
$
342,863
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019,
5%,
9/01/49
........
400,000
455,706
Community
Facilities
District
No.
2019-1,
Special
Tax,
2019-1,
3.25%,
9/01/50
....
450,000
473,626
City
of
Calimesa
,
Community
Facilities
District
No.
2018-1,
Special
Tax,
2020,
4%,
9/01/45
........
865,000
973,560
Community
Facilities
District
No.
2018-1,
Special
Tax,
2020,
4%,
9/01/50
........
825,000
926,085
City
of
Chino
,
Community
Facilities
District
No.
2003-3,
Special
Tax,
2015,
5%,
9/01/45
........
1,665,000
1,857,260
Community
Facilities
District
No.
2016-2,
Special
Tax,
2017,
5%,
9/01/42
........
1,535,000
1,714,261
City
of
Chula
Vista
,
Community
Facilities
District
No.
06-I
Improvement
Area
No.
1,
Special
Tax,
2018,
5%,
9/01/43
....................................................
1,000,000
1,145,597
Community
Facilities
District
No.
06-I
Improvement
Area
No.
1,
Special
Tax,
2018,
5%,
9/01/48
....................................................
1,185,000
1,353,011
City
of
Corona
,
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2018
A,
5%,
9/01/38
..................................................
1,200,000
1,343,420
Community
Facilities
District
No.
2018-1
Improvement
Area
No.
1,
Special
Tax,
2018
A,
5%,
9/01/48
..................................................
1,000,000
1,114,421
City
of
Dana
Point
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2014,
Pre-Refunded,
5%,
9/01/38
........................................................
1,000,000
1,080,888
Community
Facilities
District
No.
2006-1,
Special
Tax,
2014,
Pre-Refunded,
5%,
9/01/45
........................................................
2,500,000
2,702,221
City
of
Dixon
,
Community
Facilities
District
No.
2013-1
Parklane
,
Special
Tax,
2019,
5%,
9/01/44
.
2,645,000
3,113,916
Community
Facilities
District
No.
2019-1
Homestead,
Special
Tax,
2020,
4%,
9/01/36
200,000
232,432
Community
Facilities
District
No.
2019-1
Homestead,
Special
Tax,
2020,
4%,
9/01/40
400,000
462,962
Community
Facilities
District
No.
2019-1
Homestead,
Special
Tax,
2020,
4%,
9/01/50
1,000,000
1,140,784
City
of
Dublin
,
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2,
Special
Tax,
2019,
5%,
9/01/49
....................................................
2,300,000
2,659,228
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
3,
Special
Tax,
2021,
4%,
9/01/45
....................................................
850,000
944,870
City
of
Fairfield
,
Community
Facilities
District
No.
2016-1,
Special
Tax,
2019
A,
5%,
9/01/44
......
2,000,000
2,407,045
a
Community
Facilities
District
No.
2019-1,
Special
Tax,
144A,
2020
A,
5%,
9/01/35
..
1,000,000
1,234,396
a
Community
Facilities
District
No.
2019-1,
Special
Tax,
144A,
2020
A,
5%,
9/01/50
..
3,255,000
3,919,048
City
of
Fillmore
,
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/40
............
1,500,000
1,614,304
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/45
............
2,630,000
2,824,129
City
of
Fontana
,
Community
Facilities
District
No.
80,
Special
Tax,
2017,
5%,
9/01/46
...........
1,000,000
1,164,649
Community
Facilities
District
No.
81,
Special
Tax,
2018,
4%,
9/01/43
...........
1,000,000
1,097,892
City
of
Fullerton
,
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/34
............
1,075,000
1,138,899
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/44
............
2,450,000
2,588,748
City
of
Irvine
,
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/39
........
1,000,000
1,103,118
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/44
........
1,500,000
1,654,191
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/49
........
2,750,000
3,027,058
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
5%,
9/01/43
........
2,500,000
2,897,914
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
5%,
9/01/48
........
3,250,000
3,753,415
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Irvine,
(continued)
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
AGMC
Insured,
5%,
9/01/51
........................................................
$
1,250,000
$
1,462,797
City
of
La
Verne
,
Brethren
Hillcrest
Homes
Obligated
Group,
COP,
2014,
Pre-Refunded,
5%,
5/15/36
1,430,000
1,475,311
Copacabana
Mobilehome
Park,
Revenue,
2014,
Refunding,
5%,
6/15/49
........
1,765,000
1,932,512
City
of
Lake
Elsinore
,
Community
Facilities
District
No.
2006-1
Summerly,
Special
Tax,
2020,
4%,
9/01/36
350,000
396,520
Community
Facilities
District
No.
2006-1
Summerly,
Special
Tax,
2020,
4%,
9/01/40
385,000
434,712
Community
Facilities
District
No.
2006-1
Summerly,
Special
Tax,
2020,
4%,
9/01/50
1,000,000
1,118,467
City
of
Long
Beach
,
Marina
System,
Revenue,
2015,
5%,
5/15/34
.............................
1,300,000
1,439,610
Marina
System,
Revenue,
2015,
5%,
5/15/40
.............................
3,500,000
3,851,434
Marina
System,
Revenue,
2015,
5%,
5/15/45
.............................
2,500,000
2,736,828
City
of
Los
Angeles
,
Community
Facilities
District
No.
11,
Special
Tax,
2021,
4%,
9/01/46
............
1,500,000
1,720,566
Department
of
Airports,
Revenue,
2019
D,
4%,
5/15/44
.....................
5,525,000
6,306,190
City
of
Murrieta
,
Community
Facilities
District
No.
2005-5
Golden
City
,
Special
Tax
,
2018
,
5
%
,
9/01/48
.................................................
3,740,000
4,243,789
City
of
Ontario
,
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/42
...........
1,000,000
1,110,726
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/47
...........
500,000
554,067
Community
Facilities
District
No.
31,
Special
Tax,
2017,
5%,
9/01/47
...........
1,100,000
1,280,139
City
of
Oroville
,
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/49
.........................
4,000,000
4,480,020
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/54
.........................
3,500,000
3,889,738
City
of
Palm
Desert
,
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
Refunding,
3%,
9/01/31
320,000
327,191
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/41
450,000
490,721
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/51
665,000
715,399
City
of
Rancho
Cordova
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2021,
4%,
9/01/37
........
545,000
626,912
Community
Facilities
District
No.
2014-1,
Special
Tax,
2021,
4%,
9/01/41
........
390,000
446,604
Community
Facilities
District
No.
2014-1,
Special
Tax,
2021,
4%,
9/01/46
........
585,000
664,365
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018-1,
5%,
9/01/44
........................................................
415,000
481,703
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/34
........................................................
175,000
196,594
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/35
........................................................
180,000
202,033
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/36
........................................................
185,000
207,514
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/37
........................................................
195,000
218,347
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/38
........................................................
200,000
223,709
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/39
........................................................
210,000
234,720
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/40
........................................................
220,000
245,973
Grantline
208
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/46
........................................................
175,000
194,220
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/40
....................................................
1,200,000
1,346,074
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Rancho
Cordova,
(continued)
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/45
....................................................
$
1,250,000
$
1,394,339
City
of
Rocklin
,
Community
Facilities
District
No.
10
Whitney
Ranch
,
Special
Tax
,
2019
,
5
%
,
9/01/40
......................................................
2,000,000
2,227,462
City
of
Roseville
,
Baseline
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/36
........................................................
725,000
819,152
Baseline
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/41
........................................................
750,000
840,575
Baseline
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/51
........................................................
3,160,000
3,508,990
Creekview
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/40
....
630,000
748,707
Creekview
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/50
....
1,745,000
2,058,762
a
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/32
............................................
1,265,000
1,500,477
a
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/47
............................................
6,500,000
7,575,987
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
2021,
4%,
9/01/41
750,000
856,800
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5%,
9/01/36
........................................................
2,180,000
2,503,247
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5.5%,
9/01/46
........................................................
7,160,000
8,287,009
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/40
........................................................
575,000
647,901
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
........................................................
450,000
503,600
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/50
........................................................
1,000,000
1,116,154
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/39
........................................................
440,000
510,532
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
500,000
576,895
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
575,000
661,118
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/37
........................................................
350,000
399,961
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/41
........................................................
400,000
453,964
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/46
........................................................
650,000
735,102
SVSP
Westpark
-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/51
........................................................
1,295,000
1,459,621
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
3,230,000
3,744,342
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
........................................................
490,000
548,365
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/50
........................................................
650,000
725,500
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/37
........................................................
225,000
258,972
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/29
....
500,000
549,038
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/34
....
1,100,000
1,204,224
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/39
....
1,885,000
2,056,863
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/44
....
1,650,000
1,798,045
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
....
3,800,000
4,387,866
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Roseville,
(continued)
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/32
........................................................
$
1,120,000
$
1,265,494
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/33
........................................................
1,000,000
1,128,991
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,406,251
City
of
Sacramento
,
Greenbriar
Community
Facilities
District
No.
2018-03,
Special
Tax,
2021,
4%,
9/01/46
1,450,000
1,636,410
Greenbriar
Community
Facilities
District
No.
2018-03,
Special
Tax,
2021,
4%,
9/01/50
1,000,000
1,125,437
Natomas
Central
Community
Facilities
District
No.
2006-2,
Special
Tax,
2016,
5%,
9/01/46
........................................................
1,815,000
2,073,059
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/32
................................................
300,000
336,291
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/37
................................................
710,000
792,888
a
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/47
................................................
1,900,000
2,107,091
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
500,000
571,240
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
1,000,000
1,137,691
North
Natomas
Community
Facilities
District
No.
4,
Special
Tax,
2013
E,
Refunding,
5.25%,
9/01/33
..................................................
3,000,000
3,222,404
City
of
San
Buenaventura
,
Community
Memorial
Health
System,
Revenue,
2011,
Pre-Refunded,
8%,
12/01/31
10,000,000
10,000,000
Community
Memorial
Health
System,
Revenue,
2011,
Pre-Refunded,
7.5%,
12/01/41
5,000,000
5,000,000
City
of
San
Clemente
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/40
........
1,745,000
1,960,802
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/46
........
2,445,000
2,730,372
City
of
San
Diego
,
Tobacco
Settlement
Revenue
Funding
Corp.
,
Revenue
,
2018
C
,
Refunding
,
4
%
,
6/01/32
.............................................
715,000
790,696
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
14,000,000
14,265,595
City
of
San
Luis
Obispo
,
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
4%,
9/01/41
........
175,000
201,482
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
4%,
9/01/46
........
740,000
844,929
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
4%,
9/01/51
........
925,000
1,052,601
City
of
San
Mateo
,
Community
Facilities
District
No.
2008-1,
Special
Tax,
2012,
5.875%,
9/01/32
.....
1,500,000
1,547,891
Community
Facilities
District
No.
2008-1,
Special
Tax,
2012,
6%,
9/01/42
........
5,000,000
5,151,919
Community
Facilities
District
No.
2008-1,
Special
Tax,
2014,
5.375%,
9/01/38
.....
2,500,000
2,570,004
Community
Facilities
District
No.
2008-1,
Special
Tax,
2014,
5.5%,
9/01/44
.......
3,300,000
3,393,993
City
of
Santa
Paula
,
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/35
......
600,000
724,924
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/40
......
1,000,000
1,198,409
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/45
......
1,100,000
1,233,688
Harvest
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/50
......
1,375,000
1,537,413
City
of
Simi
Valley
,
Assessment
District
No.
98-1
,
1915
Act,
Special
Assessment
,
1999
,
7.3
%
,
9/02/24
....................................................
650,000
657,233
City
of
Tracy
,
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/33
.......
1,610,000
1,853,773
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/38
.......
2,385,000
2,734,101
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/43
.......
5,750,000
6,557,637
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/48
.......
6,240,000
7,090,334
Community
Facilities
District
No.
2016-01,
Special
Tax,
2019,
5%,
9/01/44
.......
2,600,000
2,962,246
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Tracy,
(continued)
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/44
.......
$
1,500,000
$
1,748,576
City
of
Upland
,
Community
Facilities
District
No.
2015-1
,
Special
Tax
,
2019
A
,
4
%
,
9/01/49
.........................................................
550,000
609,867
City
of
Vernon
,
Electric
System,
Revenue,
2012
A,
5.5%,
8/01/41
..........................
7,500,000
7,691,320
Electric
System,
Revenue,
2020
A,
Refunding,
5%,
8/01/35
..................
1,440,000
1,770,397
City
of
Woodland
,
Community
Facilities
District
No.
2004-1,
Special
Tax,
2019,
5%,
9/01/44
........
1,475,000
1,678,764
Community
Facilities
District
No.
2004-1,
Special
Tax,
2019,
5%,
9/01/48
........
1,645,000
1,866,586
City
of
Yucaipa
,
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5%,
9/01/26
.
1,000,000
1,007,167
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5.375%,
9/01/30
........................................................
1,800,000
1,812,988
Clovis
Unified
School
District
,
GO,
2004
A,
NATL
Insured,
ETM,
Zero
Cpn
.,
8/01/27
.......................
1,205,000
1,138,518
GO,
2004
A,
NATL
Insured,
Zero
Cpn
.,
8/01/27
...........................
6,295,000
5,928,288
GO,
2004
A,
NATL
Insured,
Zero
Cpn
.,
8/01/28
...........................
3,000,000
2,765,789
a
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
13,980,000
13,831,605
a
CMFA
Special
Finance
Agency
I
,
The
Mix
at
CTR
City
,
Revenue
,
144A,
2021
A-T
,
5
%
,
4/01/41
.........................................................
7,875,000
8,058,206
Coachella
Valley
Unified
School
District
,
GO,
2012
D,
AGMC
Insured,
Zero
Cpn
.,
8/01/42
..........................
8,500,000
5,211,729
GO,
2012
D,
AGMC
Insured,
Zero
Cpn
.,
8/01/43
..........................
3,000,000
1,767,703
Compton
Community
Redevelopment
Agency
,
Tax
Allocation,
Second
Lien,
2010
B,
5.7%,
8/01/30
........................
2,255,000
2,262,951
Tax
Allocation,
Second
Lien,
2010
B,
6%,
8/01/42
..........................
3,460,000
3,471,903
Corona-Norco
Unified
School
District
,
Community
Facilities
District
No.
05-1
,
Special
Tax
,
2016
,
Refunding
,
5
%
,
9/01/36
.....................................
500,000
578,588
Cotati-Rohnert
Park
Unified
School
District
,
GO
,
A
,
BAM
Insured
,
5
%
,
8/01/45
......
4,000,000
4,587,844
County
of
El
Dorado
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2018,
5%,
9/01/48
........
2,850,000
3,158,069
Community
Facilities
District
No.
2018-1
Bass
Lake
Hills,
Special
Tax,
2021,
4%,
9/01/40
........................................................
475,000
544,292
Community
Facilities
District
No.
2018-1
Bass
Lake
Hills,
Special
Tax,
2021,
4%,
9/01/46
........................................................
425,000
482,947
Community
Facilities
District
No.
2018-1
Bass
Lake
Hills,
Special
Tax,
2021,
4%,
9/01/51
........................................................
1,000,000
1,133,196
County
of
Imperial
,
Community
Facilities
District
No.
1998-1
,
Special
Tax
,
1999
,
LOC
BNP
Paribas
SA
,
6.5
%
,
9/01/31
.......................................
4,710,000
4,743,786
County
of
Orange
,
Community
Facilities
District
No.
2015-1,
Special
Tax,
2015
A,
5%,
8/15/34
......
1,495,000
1,682,958
Community
Facilities
District
No.
2015-1,
Special
Tax,
2015
A,
5.25%,
8/15/45
....
4,880,000
5,501,110
Community
Facilities
District
No.
2017-1,
Special
Tax,
2018
A,
5%,
8/15/42
......
6,230,000
7,461,038
Community
Facilities
District
No.
2017-1,
Special
Tax,
2018
A,
5%,
8/15/47
......
10,000,000
11,885,593
County
of
Riverside
,
Community
Facilities
District
No.
03-1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/30
.............................................
1,500,000
1,651,668
County
of
San
Bernardino
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
1,000,000
1,122,892
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/45
1,000,000
1,116,242
County
of
Santa
Cruz
,
Assessment
District
No.
21-01,
1915
Act,
Special
Assessment,
4%,
9/02/46
......
525,000
599,465
Assessment
District
No.
21-01,
1915
Act,
Special
Assessment,
4%,
9/02/51
......
650,000
739,693
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
County
of
Stockton
,
Community
Facilities
District
No.
2018-2,
Special
Tax,
2020,
4%,
9/01/40
........
$
1,580,000
$
1,773,877
Community
Facilities
District
No.
2018-2,
Special
Tax,
2020,
4%,
9/01/45
........
1,115,000
1,242,013
Community
Facilities
District
No.
2018-2,
Special
Tax,
2020,
4%,
9/01/50
........
1,565,000
1,738,671
a
CSCDA
Community
Improvement
Authority
,
Theo
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
5/01/57
......................................................
10,000,000
9,387,536
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue
,
2007
B
,
Refunding
,
5.85
%
,
12/15/47
........................................
4,525,000
4,536,248
Del
Mar
Race
Track
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
..........
2,000,000
2,079,396
Del
Mar
Union
School
District
,
Community
Facilities
District
No.
99-1
,
Special
Tax
,
2019
,
Refunding
,
BAM
Insured
,
4
%
,
9/01/49
.............................
2,000,000
2,336,205
Duarte
Redevelopment
Agency
,
Tax
Allocation
,
1999
,
ETM,
Zero
Cpn
.,
12/01/28
....
18,150,000
13,187,097
Dublin
Community
Facilities
District
No.
2015-1
,
Special
Tax,
2017,
5%,
9/01/37
.......................................
1,550,000
1,829,586
Special
Tax,
2017,
5%,
9/01/47
.......................................
4,500,000
5,247,578
Special
Tax,
2019,
5%,
9/01/39
.......................................
3,665,000
4,283,613
Special
Tax,
2019,
5%,
9/01/44
.......................................
6,625,000
7,693,135
Eastern
Municipal
Water
District
,
Community
Facilities
District
No.
2004-35,
Special
Tax,
2021,
4%,
9/01/46
.......
220,000
251,045
Community
Facilities
District
No.
2004-35,
Special
Tax,
2021,
4%,
9/01/50
.......
200,000
227,494
El
Rancho
Unified
School
District
,
GO
,
2004
,
NATL
Insured
,
Zero
Cpn
.,
8/01/29
....
2,400,000
2,098,185
a
Elsinore
Valley
Municipal
Water
District
,
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/41
..
1,625,000
1,701,442
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/51
..
2,410,000
2,485,955
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4.5%,
9/01/51
2,500,000
2,546,714
f,g
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
FRN,
2019-ML06,
XCA,
1.105%,
7/25/35
................................
137,765,520
12,393,386
a
144A,
FRN,
2020-ML07,
XCA,
2.132%,
1/25/37
...........................
123,651,132
23,309,475
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19,
Special
Tax,
2017,
5%,
9/01/47
3,280,000
3,817,141
City
of
Folsom
Community
Facilities
District
No.
19,
Special
Tax,
2019,
5%,
9/01/49
1,825,000
2,121,826
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/28
600,000
695,847
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/33
530,000
611,517
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/38
850,000
976,443
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/48
1,675,000
1,912,485
City
of
Folsom
Community
Facilities
District
No.
21,
Special
Tax,
2019,
5%,
9/01/49
2,000,000
2,323,297
City
of
Folsom
Community
Facilities
District
No.
21,
Special
Tax,
2021,
4%,
9/01/50
800,000
889,697
City
of
Folsom
Community
Facilities
District
No.
23,
Special
Tax,
2020,
4%,
9/01/40
1,245,000
1,404,302
City
of
Folsom
Community
Facilities
District
No.
23,
Special
Tax,
2020,
4%,
9/01/45
1,075,000
1,203,045
City
of
Folsom
Community
Facilities
District
No.
23,
Special
Tax,
2020,
4%,
9/01/50
1,140,000
1,273,074
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
Zero
Cpn
.,
1/15/42
..........................
75,000,000
45,215,258
Revenue,
2013
B-1,
Refunding,
3.95%,
1/15/53
...........................
25,000,000
27,602,392
Revenue,
2013
B-2,
Refunding,
3.5%,
1/15/53
............................
17,500,000
19,368,578
Revenue,
2015
A,
Refunding,
Zero
Cpn
.,
1/15/33
..........................
19,000,000
15,437,076
Revenue,
Junior
Lien,
2021
C,
Refunding,
4%,
1/15/43
.....................
41,979,000
48,882,640
Fremont
Community
Facilities
District
No.
1
,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
...............................
4,655,000
5,205,438
Special
Tax,
2015,
Refunding,
5%,
9/01/45
...............................
3,255,000
3,620,850
Golden
State
Tobacco
Securitization
Corp.
,
Revenue,
2007
A-2,
5.3%,
6/01/37
.....................................
5,000,000
5,110,644
Revenue,
2007
C,
Refunding,
Zero
Cpn
.,
6/01/47
..........................
50,000,000
11,136,790
Revenue,
2015
A,
Pre-Refunded,
5%,
6/01/45
............................
37,630,000
43,591,232
Revenue,
2018
A-1,
Refunding,
5.25%,
6/01/47
...........................
63,500,000
64,972,883
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Golden
State
Tobacco
Securitization
Corp.,
(continued)
Revenue,
2018
A-2,
Refunding,
5%,
6/01/47
.............................
$
12,750,000
$
13,026,556
Hanford
Joint
Union
High
School
District
,
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
...............................
3,635,000
3,007,624
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/33
...............................
3,705,000
2,992,883
GO,
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/35
...............................
4,120,000
3,161,951
Hartnell
Community
College
District
,
GO
,
2009
D
,
Zero
Cpn
.,
8/01/49
............
10,000,000
5,158,993
Imperial
Community
College
District
,
GO
,
2011
A
,
Pre-Refunded
,
AGMC
Insured
,
6.75
%
,
8/01/40
...................................................
3,500,000
4,283,419
Independent
Cities
Finance
Authority
,
Augusta
Communities
III
LLC,
Revenue,
2021,
Refunding,
4%,
11/15/56
........
8,160,000
8,375,842
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/44
.......
2,015,000
2,169,699
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/49
.......
4,800,000
5,161,153
Millennium
Housing
LLC,
Revenue,
2021,
Refunding,
3%,
5/15/56
.............
4,000,000
4,126,510
Millennium
Housing
of
California,
Revenue,
2019,
Refunding,
5%,
5/15/48
.......
3,000,000
3,614,963
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/45
.............
5,000,000
5,536,629
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/50
.............
4,900,000
5,412,755
Indio
Community
Facilities
District
No.
2004-3
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
.........................................................
1,190,000
1,338,510
Inland
Valley
Development
Agency
,
Tax
Allocation,
2014
A,
Refunding,
5.25%,
9/01/37
.........................
7,500,000
8,193,679
Tax
Allocation,
2014
A,
Refunding,
5%,
9/01/44
...........................
9,000,000
9,782,039
Irvine
Unified
School
District
,
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
A,
5%,
9/01/42
........
1,700,000
2,021,138
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
B,
5%,
9/01/51
........
2,500,000
2,941,899
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
C,
5%,
9/01/47
........
1,000,000
1,181,645
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
D,
5%,
9/01/49
........
1,000,000
1,179,525
Community
Facilities
District
No.
09-1,
Special
Tax,
2018
A,
Refunding,
5%,
9/01/45
2,000,000
2,367,225
Community
Facilities
District
No.
09-1,
Special
Tax,
2018
A,
Refunding,
5%,
9/01/49
2,000,000
2,359,051
Jurupa
Community
Services
District
,
Community
Facilities
District
No.
53
,
Special
Tax
,
2020
A
,
4
%
,
9/01/43
................................................
300,000
340,504
Jurupa
Public
Financing
Authority
,
Special
Tax,
2014
A,
Refunding,
5%,
9/01/42
.............................
2,220,000
2,468,251
Special
Tax,
2015
A,
Refunding,
5%,
9/01/43
.............................
4,000,000
4,589,109
Special
Tax,
Sub.
Lien,
2015
B,
Refunding,
5%,
9/01/40
.....................
4,000,000
4,496,229
Kaweah
Delta
Health
Care
District
Guild
,
Revenue
,
2015
B
,
5
%
,
6/01/40
..........
3,250,000
3,688,349
Lake
Elsinore
Public
Financing
Authority
,
City
of
Lake
Elsinore
Assessment
District
No.
93-1,
Special
Tax,
2012
B,
Pre-
Refunded,
5.125%,
9/02/30
.........................................
4,980,000
5,163,333
City
of
Lake
Elsinore
Community
Facilities
District
No.
2003-2,
Special
Tax,
2014
A,
Pre-Refunded,
5.75%,
9/01/44
......................................
3,240,000
3,547,360
City
of
Lake
Elsinore
Community
Facilities
District
No.
98-1,
Special
Tax,
2013
C,
Pre-Refunded,
5.25%,
9/01/33
......................................
8,000,000
8,689,266
Lake
Tahoe
Unified
School
District
,
GO
,
2012
,
Zero
Cpn
.,
8/01/40
...............
1,140,000
1,250,825
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2017,
5%,
9/01/47
........
4,000,000
4,643,252
Community
Facilities
District
No.
2014-1,
Special
Tax,
2019,
5%,
9/01/43
........
775,000
880,502
Community
Facilities
District
No.
2014-1,
Special
Tax,
2019,
5%,
9/01/48
........
2,500,000
2,828,933
Las
Virgenes
Unified
School
District
,
GO
,
2011
C
,
Zero
Cpn
.,
8/01/33
............
8,050,000
9,674,572
Lathrop
Financing
Authority
,
Special
Tax,
2013
A,
Refunding,
6%,
9/02/28
.............................
1,010,000
1,080,318
Special
Tax,
2013
A,
Refunding,
6%,
9/02/29
.............................
1,070,000
1,142,227
Special
Tax,
2013
A,
Refunding,
6%,
9/02/30
.............................
1,075,000
1,145,006
Special
Tax,
2013
A,
Refunding,
5.5%,
9/02/35
............................
3,670,000
3,872,900
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Lee
Lake
Public
Financing
Authority
,
Special
Tax,
Junior
Lien,
2013
B,
5.25%,
9/01/32
..........................
$
1,155,000
$
1,230,491
Special
Tax,
Junior
Lien,
2013
B,
5.375%,
9/01/35
.........................
805,000
858,319
Lemon
Grove
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2014
,
Refunding
,
AGMC
Insured
,
4
%
,
8/01/34
............................
1,000,000
1,167,320
Lemon
Grove
School
District
,
GO
,
2010
B
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/45
.....
6,500,000
7,720,970
Long
Beach
Bond
Finance
Authority
,
Revenue
,
2007
A
,
5
%
,
11/15/29
............
4,630,000
5,862,962
Los
Alamitos
Unified
School
District
,
COP,
2012,
Zero
Cpn
.,
8/01/34
.......................................
1,500,000
1,736,378
COP,
2012,
Zero
Cpn
.,
8/01/42
.......................................
4,500,000
5,132,510
Mendocino-Lake
Community
College
District
,
GO,
2011
B,
AGMC
Insured,
6.55%,
8/01/36
.............................
5,150,000
7,309,526
GO,
2011
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/40
...........................
7,500,000
9,990,385
Menifee
Union
School
District
,
Community
Facilities
District
No.
2011-1,
Special
Tax,
2018,
5%,
9/01/43
........
1,000,000
1,144,409
Community
Facilities
District
No.
2011-1,
Special
Tax,
2018,
5%,
9/01/48
........
1,500,000
1,709,715
Community
Facilities
District
No.
2011-1,
Special
Tax,
2019,
5%,
9/01/48
........
2,900,000
3,372,228
Middle
Fork
Project
Finance
Authority
,
Revenue,
2020,
Refunding,
5%,
4/01/34
.................................
1,100,000
1,376,418
Revenue,
2020,
Refunding,
5%,
4/01/35
.................................
1,150,000
1,434,423
Moreland
School
District
,
GO
,
B
,
Refunding
,
5
%
,
8/01/41
.....................
4,045,000
4,636,304
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2015-2,
Special
Tax,
2019,
5%,
9/01/44
........
870,000
986,091
Community
Facilities
District
No.
2015-3,
Special
Tax,
2019,
4.125%,
9/01/48
.....
1,160,000
1,270,909
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
32,300,000
51,781,031
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue,
2017
A,
Refunding,
5%,
3/01/36
...............................
2,250,000
2,678,171
Revenue,
2017
A,
Refunding,
5%,
3/01/37
...............................
2,500,000
2,972,894
Revenue,
2017
A,
Refunding,
BAM
Insured,
4%,
3/01/42
....................
5,000,000
5,630,752
Revenue,
2017
B,
Refunding,
5%,
3/01/42
...............................
2,550,000
3,071,378
Oak
Park
Unified
School
District
,
GO
,
2011
A
,
7.1
%
,
8/01/38
...................
6,600,000
9,618,942
Oakdale
Public
Financing
Authority
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
.....
1,270,000
1,427,013
Oakley
Public
Finance
Authority
,
City
of
Oakley
Assessment
District
No.
2004-1,
Special
Assessment,
2012,
Pre-
Refunded,
5.3%,
9/02/34
..........................................
995,000
1,033,319
City
of
Oakley
Assessment
District
No.
2006-1,
Special
Assessment,
2014,
Refunding,
BAM
Insured,
5%,
9/02/36
.................................
1,500,000
1,673,282
Palomar
Health
,
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/38
.......................
5,000,000
5,618,332
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/47
.......................
6,000,000
6,658,473
Palomar
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/01/36
......
6,250,000
7,304,336
Palomar
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
11/01/42
......
5,000,000
5,939,630
Paramount
Unified
School
District
,
GO
,
2013
,
Pre-Refunded
,
BAM
Insured
,
Zero
Cpn
.,
8/01/51
.........................................................
25,000,000
3,414,263
Paso
Robles
Joint
Unified
School
District
,
GO
,
2010
A
,
Zero
Cpn
.,
9/01/45
........
15,000,000
7,643,600
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
4,794,928
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
A,
Refunding,
5.375%,
9/01/33
........................................................
1,940,000
2,070,500
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
E,
Refunding,
4.25%,
9/01/38
........................................................
4,145,000
4,408,229
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Perris
Joint
Powers
Authority,
(continued)
Community
Facilities
District
No.
2002-1,
Special
Tax,
2013
B,
Refunding,
5.25%,
9/01/33
........................................................
$
3,745,000
$
3,988,203
Community
Facilities
District
No.
2014-1,
Special
Tax,
2018
A,
4%,
9/01/48
......
2,530,000
2,616,790
Pico
Rivera
Water
Authority
,
Revenue
,
2001
A
,
6.25
%
,
12/01/32
................
4,470,000
4,519,496
Pittsburg
Unified
School
District
,
GO,
2012
C,
Pre-Refunded,
Zero
Cpn
.,
8/01/47
...........................
9,000,000
2,105,229
GO,
2012
C,
Pre-Refunded,
Zero
Cpn
.,
8/01/52
...........................
15,000,000
2,527,246
Poway
Redevelopment
Agency
Successor
Agency
,
Tax
Allocation
,
A
,
Refunding
,
5
%
,
12/15/30
.....................................................
3,500,000
4,621,772
Poway
Unified
School
District
,
Community
Facilities
District
No.
15
,
Special
Tax
,
2016
,
5
%
,
9/01/46
......................................................
2,000,000
2,287,299
Redondo
Beach
Unified
School
District
,
GO
,
2011
E
,
Zero
Cpn
.,
8/01/31
..........
2,750,000
3,660,336
Richland
School
District
,
GO
,
2009
C
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
.........
22,000,000
9,149,338
Rio
Elementary
School
District
,
Community
Facilities
District
No.
1
,
Special
Tax
,
2013
,
Pre-Refunded
,
5.5
%
,
9/01/39
.........................................
6,915,000
7,540,885
Rio
Hondo
Community
College
District
,
GO
,
2010
C
,
Zero
Cpn
.,
8/01/42
..........
13,000,000
17,870,377
Rio
Vista
Community
Facilities
District
,
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/33
............................................
1,625,000
1,876,235
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/38
............................................
1,000,000
1,149,552
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/48
............................................
1,190,000
1,358,721
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
Refunding,
2.75%,
9/01/40
........................................................
2,080,000
2,136,161
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/45
4,405,000
4,927,809
Community
Facilities
District
No.
2019-1,
Special
Tax,
2021,
Refunding,
4%,
9/01/51
3,255,000
3,614,482
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/34
.....
860,000
867,551
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/35
.....
925,000
931,457
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/41
........
1,250,000
1,349,242
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/46
........
1,500,000
1,608,669
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/51
........
1,360,000
1,455,593
Riverbank
Unified
School
District
,
GO,
2008
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/38
...........................
6,690,000
4,434,944
GO,
2008
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/43
...........................
8,750,000
4,899,480
Riverside
County
Redevelopment
Successor
Agency
,
Tax
Allocation,
Second
Lien,
2011
D,
Pre-Refunded,
7%,
12/01/31
.............
1,425,000
1,425,000
Tax
Allocation,
Second
Lien,
2011
D,
Pre-Refunded,
7.25%,
12/01/37
...........
2,505,000
2,505,000
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien
,
2013
B
,
Zero
Cpn
.,
6/01/43
.....................................................
7,500,000
4,456,163
Riverside
Public
Financing
Authority
,
COP
,
2013
,
AGMC
Insured
,
5
%
,
6/01/33
......
4,280,000
4,555,937
Riverside
Unified
School
District
,
Special
Tax,
2020,
4%,
9/01/45
.......................................
415,000
467,084
Special
Tax,
2020,
4%,
9/01/50
.......................................
875,000
982,211
RNR
School
Financing
Authority
,
Community
Facilities
District
No.
92-1
,
Special
Tax
,
2017
A
,
BAM
Insured
,
5
%
,
9/01/41
.....................................
3,000,000
3,533,938
Romoland
School
District
,
Community
Facilities
District
No.
2004-1,
Special
Tax,
2013,
5%,
9/01/36
........
1,500,000
1,589,573
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/35
4,690,000
5,269,836
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/38
3,000,000
3,364,020
Community
Facilities
District
No.
2006-1,
Special
Tax,
2017,
Refunding,
5%,
9/01/44
1,120,000
1,313,135
Community
Facilities
District
No.
91-1,
Special
Tax,
2017,
Refunding,
5%,
9/01/41
.
1,265,000
1,489,758
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Root
Creek
Water
District
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2,
Special
Tax,
2021,
2.75%,
9/01/41
..................................................
$
450,000
$
456,636
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2,
Special
Tax,
2021,
4%,
9/01/50
....................................................
465,000
526,715
Rowland
Unified
School
District
,
GO,
2009
B,
Zero
Cpn
.,
8/01/34
.......................................
5,000,000
3,700,599
GO,
2009
B,
Zero
Cpn
.,
8/01/39
.......................................
15,000,000
9,565,587
GO,
2009
B,
Zero
Cpn
.,
8/01/42
.......................................
10,750,000
6,852,194
Sacramento
Area
Flood
Control
Agency
,
Natomas
Basin
Local
Assessment
District
,
Special
Assessment
,
2014
,
BAM
Insured
,
5
%
,
10/01/44
.....................
2,000,000
2,232,569
San
Bernardino
Community
College
District
,
GO,
2008
D,
Pre-Refunded,
5%,
8/01/45
................................
2,755,000
3,217,875
GO,
2008
D,
Pre-Refunded,
5%,
8/01/48
................................
3,760,000
4,391,728
GO,
2009
B,
Zero
Cpn
.,
8/01/44
.......................................
12,495,000
6,556,855
San
Diego
Unified
School
District
,
GO,
2009-1,
Pre-Refunded,
6%,
7/01/33
................................
10,000,000
11,460,428
GO,
2010
C,
Zero
Cpn
.,
7/01/47
.......................................
26,025,000
30,633,765
GO,
2012
E,
Zero
Cpn
.,
7/01/42
.......................................
6,940,000
6,858,110
GO,
2012
E,
Zero
Cpn
.,
7/01/47
.......................................
13,500,000
14,000,901
San
Francisco
City
&
County
Airport
Comm
-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/37
...............................
5,535,000
6,870,715
Revenue,
2019
A,
Refunding,
5%,
5/01/44
...............................
35,000,000
43,053,322
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
10,000,000
12,252,872
Revenue,
Second
Series,
2018
D,
5%,
5/01/48
...........................
10,000,000
12,096,491
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/23
..........................
2,000,000
1,861,597
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/26
..........................
3,000,000
2,415,490
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/31
..........................
6,000,000
3,773,776
a
Tax
Allocation,
144A,
2016
D,
Zero
Cpn
.,
8/01/43
..........................
16,500,000
5,670,083
Community
Facilities
District
No.
6,
Special
Tax,
2013
C,
Zero
Cpn
.,
8/01/43
......
10,000,000
2,914,165
Mission
Bay
South
Redevelopment
Area
Tax
Increment
Financing
District,
Tax
Allocation,
2014
A,
5%,
8/01/43
......................................
2,500,000
2,773,617
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn
.,
1/15/26
...............
19,475,000
18,715,543
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn
.,
1/15/32
...............
50,225,000
41,686,876
Revenue,
Junior
Lien,
ETM,
Zero
Cpn
.,
1/01/28
...........................
19,150,000
18,029,915
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/44
...................
35,000,000
39,012,830
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/49
...................
75,000,000
83,449,335
San
Rafael
City
Elementary
School
District
,
GO
,
2015
C
,
5
%
,
8/01/43
............
1,565,000
1,913,435
Santa
Barbara
Unified
School
District
,
GO
,
2011
A
,
Zero
Cpn
.,
8/01/36
...........
8,000,000
11,817,627
Santa
Margarita
Water
District
,
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
5.625%,
9/01/36
.....
2,875,000
3,079,091
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
5.625%,
9/01/43
.....
9,600,000
10,263,499
Santa
Paula
Utility
Authority
,
Revenue
,
2015
A
,
Pre-Refunded
,
5
%
,
2/01/40
........
5,105,000
5,851,029
Saugus
Union
School
District
,
Community
Facilities
District
No.
2006-1
,
Special
Tax,
Senior
Lien
,
2014
,
4.25
%
,
9/01/44
.....................................
2,500,000
2,667,894
Saugus/Hart
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2016,
Refunding,
5%,
9/01/41
1,250,000
1,417,878
Community
Facilities
District
No.
2006-1,
Special
Tax,
2016,
Refunding,
5%,
9/01/46
1,250,000
1,410,276
Saugus-Castaic
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
5.875%,
9/01/33
...
1,365,000
1,466,826
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
6%,
9/01/43
.......
3,375,000
3,609,979
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Siskiyou
Union
High
School
District
,
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
$
15,015,000
$
5,909,377
Sonoma
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2011
,
Refunding
,
7
%
,
12/01/30
............................................
2,115,000
2,115,000
St.
Helena
Unified
School
District
,
GO
,
2011
B
,
Zero
Cpn
.,
6/01/36
..............
10,000,000
13,160,436
State
of
California
,
GO
,
5
%
,
3/01/45
.....................................
3,900,000
4,398,530
Sulphur
Springs
Union
School
District
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2018,
5%,
9/01/43
........
1,410,000
1,575,673
Community
Facilities
District
No.
2006-1,
Special
Tax,
2018,
5%,
9/01/47
........
1,820,000
2,029,373
Community
Facilities
District
No.
2014-1,
Special
Tax,
2014-1,
4%,
9/01/50
......
1,225,000
1,370,831
Susanville
School
District
,
GO
,
2010
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/49
.........
17,505,000
7,132,034
Tobacco
Securitization
Authority
of
Northern
California
,
Sacramento
County
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien
,
2021
B-2
,
2
,
Refunding
,
Zero
Cpn
.,
6/01/60
.........................................................
24,900,000
6,133,450
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
B,
Zero
Cpn
.,
6/01/46
........................................................
10,000,000
2,214,509
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
C,
Zero
Cpn
.,
6/01/46
........................................................
25,000,000
4,871,165
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-1,
Refunding,
5%,
6/01/48
............................................
11,490,000
13,940,146
Torrance
Unified
School
District
,
GO
,
2009
B-1
,
Zero
Cpn
.,
8/01/34
..............
5,640,000
3,662,747
Tracy
Community
Facilities
District
,
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2020,
4%,
9/01/45
........................................................
2,280,000
2,571,471
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2020,
4%,
9/01/50
........................................................
3,000,000
3,369,325
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation
,
2020
B
,
5
%
,
10/01/38
..................
550,000
692,023
Truckee-Donner
Public
Utility
District
,
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.75%,
9/01/29
........
2,945,000
2,946,513
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.8%,
9/01/35
........
4,475,000
4,477,837
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.2%,
9/01/25
........
2,490,000
2,476,422
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.25%,
9/01/30
........
4,990,000
4,917,445
Tustin
Community
Facilities
District
,
City
of
Tustin
Community
Facilities
District
No.
06-1,
Special
Tax,
2015
A,
Refunding,
5%,
9/01/37
....................................................
1,000,000
1,148,229
City
of
Tustin
Community
Facilities
District
No.
07-1,
Special
Tax,
2015
A,
Refunding,
5%,
9/01/37
....................................................
2,330,000
2,621,251
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/40
........................................................
750,000
844,502
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/45
........................................................
1,000,000
1,120,103
University
of
California
,
Revenue
,
2015
AO
,
Refunding
,
5
%
,
5/15/40
.............
5,000,000
5,731,115
Val
Verde
Unified
School
District
,
Special
Tax,
2015,
Refunding,
5%,
9/01/29
...............................
3,200,000
3,576,238
Special
Tax,
2015,
Refunding,
5%,
9/01/37
...............................
2,000,000
2,219,484
Vallejo
Redevelopment
Agency
,
Tax
Allocation
,
2001
A
,
7
%
,
10/01/31
............
2,390,000
2,400,414
Victor
Elementary
School
District
,
GO,
2015
B,
5%,
8/01/42
............................................
5,455,000
6,156,657
Community
Facilities
District
No.
2005-1,
Special
Tax,
2018,
Refunding,
BAM
Insured,
5%,
9/01/46
..............................................
1,385,000
1,607,114
Victor
Valley
Community
College
District
,
GO
,
2008
C
,
Zero
Cpn
.,
6/01/49
.........
11,940,000
5,660,173
Washington
Township
Health
Care
District
,
Revenue,
2017
B,
Refunding,
4%,
7/01/35
...............................
2,000,000
2,237,681
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Washington
Township
Health
Care
District,
(continued)
Revenue,
2017
B,
Refunding,
4%,
7/01/36
...............................
$
1,900,000
$
2,122,869
Westside
Union
School
District
,
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/46
........
360,000
406,890
Community
Facilities
District
No.
2018-1,
Special
Tax,
2021,
4%,
9/01/51
........
500,000
564,571
Woodland
Finance
Authority
,
Revenue,
2011,
6%,
3/01/36
.........................................
1,000,000
1,004,803
Revenue,
2011,
6%,
3/01/41
.........................................
1,500,000
1,506,756
2,992,814,911
Wisconsin
0.3%
a
Public
Finance
Authority
,
Affordable
Housing
Preservation
Corp.
Obligated
Group
,
Revenue
,
144A,
2021
,
5.25
%
,
12/01/22
.................................
8,600,000
8,600,000
U.S.
Territories
6.5%
Guam
0.9%
Guam
Government
Waterworks
Authority
,
Revenue,
2014
A,
Refunding,
5%,
7/01/35
...............................
1,000,000
1,082,300
Revenue,
2016,
5%,
7/01/36
.........................................
3,550,000
4,033,506
Revenue,
2016,
5%,
1/01/46
.........................................
5,250,000
5,917,247
Revenue,
2017,
Refunding,
5%,
7/01/36
.................................
3,455,000
4,013,110
Revenue,
2017,
Refunding,
5%,
7/01/37
.................................
3,000,000
3,482,824
Guam
Power
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/40
..............
4,750,000
5,455,171
Territory
of
Guam
,
Revenue,
2021
F,
Refunding,
4%,
1/01/36
...............................
1,250,000
1,446,269
Revenue,
2021
F,
Refunding,
4%,
1/01/42
...............................
2,125,000
2,404,371
Hotel
Occupancy
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/01/35
.............
1,500,000
1,904,898
Hotel
Occupancy
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/01/40
.............
1,500,000
1,878,973
31,618,669
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
4,405,000
4,394,517
Puerto
Rico
5.5%
d
Commonwealth
of
Puerto
Rico
,
GO
,
A-PSA
,
Refunding
,
8
%
,
7/01/35
.............
19,815,000
17,387,662
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
21,642,599
20,398,150
d
Puerto
Rico
Electric
Power
Authority
,
Revenue,
2012
A
RSA-1
2012
A,
5%,
7/01/29
.............................
10,000,000
9,850,000
Revenue,
2012
A
RSA-1
2013
A,
7%,
7/01/33
.............................
25,000,000
25,187,500
Revenue,
2013
A
RSA-1,
6.75%,
7/01/36
................................
11,735,000
11,823,012
Revenue,
2013
A
RSA-1,
7%,
7/01/43
..................................
5,000,000
5,037,500
Revenue,
A-4-RSA-1
2016
A-4,
10%,
7/01/19
.............................
1,601,766
1,629,797
Revenue,
B-2-RSA-1
2016
B-4,
10%,
7/01/19
............................
1,601,765
1,629,796
Revenue,
E-1-RSA-1,
10%,
1/01/21
....................................
1,768,493
1,799,442
Revenue,
E-2-RSA-1,
10%,
7/01/21
....................................
1,768,493
1,799,442
Revenue,
E-3-RSA-1,
10%,
1/01/22
....................................
600,000
624,750
Revenue,
E-4-RSA-1,
10%,
7/01/22
....................................
600,000
624,750
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AMBAC
Insured,
5.25%,
7/01/30
...............
245,000
251,002
Revenue,
2007
N,
Refunding,
AMBAC
Insured,
5.25%,
7/01/31
...............
1,170,000
1,197,773
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
330,000
356,226
Revenue,
L,
Refunding,
AMBAC
Insured,
5.25%,
7/01/38
....................
5,030,000
5,164,144
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
3,300,000
3,598,323
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
a
a
Principal
Amount
a
Value
a
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
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
$
4,500,000
$
4,657,500
Puerto
Rico
Infrastructure
Financing
Authority
,
Special
Tax
,
2005
C
,
Refunding
,
AMBAC
Insured
,
5.5
%
,
7/01/27
..............................................
12,750,000
13,286,957
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
100,000
113,594
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
8,695,000
9,854,210
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
11,850,000
13,604,479
Sales
Tax,
Revenue,
A-1,
Zero
Cpn
.,
7/01/46
.............................
35,520,000
11,878,009
Sales
Tax,
Revenue,
A-1,
Zero
Cpn
.,
7/01/51
.............................
20,445,000
4,948,563
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
11,313,000
12,698,928
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
7,495,000
8,509,580
187,911,089
Total
U.S.
Territories
....................................................................
223,924,275
Total
Municipal
Bonds
(Cost
$2,834,853,893)
...................................
3,225,339,186
Total
Long
Term
Investments
(Cost
$2,841,443,893)
.............................
3,231,929,186
a
a
a
a
a
Short
Term
Investments
4.8%
Municipal
Bonds
4.8%
California
4.8%
h
Metropolitan
Water
District
of
Southern
California
,
Revenue
,
2018
A-1
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
7/01/37
.........................
16,500,000
16,500,000
h
Regents
of
the
University
of
California
,
Medical
Center
,
Revenue
,
2007
B-1
,
Refunding
,
Daily
VRDN
and
Put
,
0.02
%
,
5/15/32
...................................
4,100,000
4,100,000
h
Santa
Clara
Valley
Transportation
Authority
,
2000
Measure
A
Sales
Tax,
Revenue,
2008
A,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
4/01/36
......................................
32,100,000
32,100,000
2000
Measure
A
Sales
Tax,
Revenue,
2008
D,
Refunding,
SPA
TD
Bank
NA,
Daily
VRDN
and
Put,
0.02%,
4/01/36
......................................
5,000,000
5,000,000
h
Southern
California
Public
Power
Authority
,
Revenue
,
2020-3
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.02
%
,
7/01/36
...........................
15,000,000
15,000,000
h
State
of
California
,
GO
,
2004
A-3
,
LOC
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
0.02
%
,
5/01/34
................................................
8,800,000
8,800,000
h
University
of
California
,
Revenue,
2013
AL-1,
Daily
VRDN
and
Put,
0.01%,
5/15/48
..................
16,300,000
16,300,000
Revenue,
2013
AL-2,
Refunding,
Daily
VRDN
and
Put,
0.02%,
5/15/48
..........
27,000,000
27,000,000
Revenue,
2013
AL-3,
Refunding,
Daily
VRDN
and
Put,
0.02%,
5/15/48
..........
20,350,000
20,350,000
Revenue,
2013
AL-4,
Refunding,
Daily
VRDN
and
Put,
0.01%,
5/15/48
..........
18,150,000
18,150,000
163,300,000
Total
Municipal
Bonds
(Cost
$163,300,000)
.....................................
163,300,000
Total
Short
Term
Investments
(Cost
$163,300,000
)
...............................
163,300,000
a
Total
Investments
(Cost
$3,004,743,893)
98.9%
..................................
$3,395,229,186
Other
Assets,
less
Liabilities
1.1%
.............................................
38,899,394
Net
Assets
100.0%
...........................................................
$3,434,128,580
Franklin
Municipal
Securities
Trust
Statement
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
See
Abbreviations
on
page
46
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
November
30,
2021,
the
aggregate
value
of
these
securities
was
$577,474,615,
representing
16.8%
of
net
assets.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
See
Note
7
regarding
credit
risk
and
defaulted
securities.
e
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
f
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.
g
The
coupon
rate
shown
represents
the
rate
at
period
end.
h
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
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
Statements
of
Assets
and
Liabilities
(unaudited)
November
30,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$3,004,743,893
Value
-
Unaffiliated
issuers
..................................................................
$3,395,229,186
Cash
....................................................................................
1,164,334
Receivables:
Investment
securities
sold
...................................................................
22,964,257
Capital
shares
sold
........................................................................
4,433,160
Interest
.................................................................................
34,313,564
Total
assets
..........................................................................
3,458,104,501
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
16,013,278
Capital
shares
redeemed
...................................................................
4,549,150
Management
fees
.........................................................................
1,278,673
Distribution
fees
..........................................................................
353,787
Transfer
agent
fees
........................................................................
322,788
Trustees'
fees
and
expenses
.................................................................
30,185
Distributions
to
shareholders
.................................................................
1,423,640
Accrued
expenses
and
other
liabilities
...........................................................
4,420
Total
liabilities
.........................................................................
23,975,921
Net
assets,
at
value
.................................................................
$3,434,128,580
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,150,916,260
Total
distributable
earnings
(losses)
.............................................................
283,212,320
Net
assets,
at
value
.................................................................
$3,434,128,580
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(unaudited)
(continued)
November
30,
2021
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Franklin
California
High
Yield
Municipal
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$728,741,474
Shares
outstanding
........................................................................
63,584,806
Net
asset
value
per
share
a
..................................................................
$11.46
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.91
Class
A1:
Net
assets,
at
value
.......................................................................
$1,237,522,147
Shares
outstanding
........................................................................
108,188,349
Net
asset
value
per
share
a
..................................................................
$11.44
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.89
Class
C:
Net
assets,
at
value
.......................................................................
$195,959,333
Shares
outstanding
........................................................................
16,998,920
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$11.53
Class
R6:
Net
assets,
at
value
.......................................................................
$61,363,645
Shares
outstanding
........................................................................
5,346,618
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$11.48
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,210,541,981
Shares
outstanding
........................................................................
105,587,713
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$11.46
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Operations
for
the
period
ended
November
30,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
Franklin
California
High
Yield
Municipal
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$62,116,060
Expenses:
Management
fees
(Note
3
a
)
...................................................................
7,700,417
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
852,663
    Class
A1
...............................................................................
625,791
    Class
C
................................................................................
680,899
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
217,485
    Class
A1
...............................................................................
399,400
    Class
C
................................................................................
66,907
    Class
R6
...............................................................................
10,216
    Advisor
Class
............................................................................
372,633
Custodian
fees
(Note
4
)
......................................................................
11,408
Reports
to
shareholders
fees
..................................................................
35,508
Registration
and
filing
fees
....................................................................
57,787
Professional
fees
...........................................................................
69,506
Trustees'
fees
and
expenses
..................................................................
44,849
Other
....................................................................................
175,921
Total
expenses
.........................................................................
11,321,390
Expense
reductions
(Note
4
)
...............................................................
(2,152)
Expenses
waived/paid
by
affiliates
(Note
3
and
3
f
)
...............................................
(1,928)
Net
expenses
.........................................................................
11,317,310
Net
investment
income
................................................................
50,798,750
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(2,346,275)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(10,574,394)
Net
realized
and
unrealized
gain
(loss)
............................................................
(12,920,669)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$37,878,081
Franklin
Municipal
Securities
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
Franklin
California
High
Yield
Municipal
Fund
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$50,798,750
$98,385,111
Net
realized
gain
(loss)
.................................................
(2,346,275)
4,488,516
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(10,574,394)
180,246,844
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
37,878,081
283,120,471
Distributions
to
shareholders:
Class
A
.............................................................
(9,432,889)
(16,106,026)
Class
A1
............................................................
(18,302,436)
(40,737,185)
Class
C
.............................................................
(2,462,720)
(6,218,059)
Class
R6
............................................................
(840,382)
(1,074,605)
Advisor
Class
........................................................
(17,617,493)
(33,172,717)
Total
distributions
to
shareholders
..........................................
(48,655,920)
(97,308,592)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
112,259,594
162,703,393
Class
A1
............................................................
(13,565,691)
(106,323,113)
Class
C
.............................................................
(27,266,141)
(44,827,945)
Class
R6
............................................................
16,387,961
16,640,109
Advisor
Class
........................................................
101,277,167
150,016,195
Total
capital
share
transactions
............................................
189,092,890
178,208,639
Net
increase
(decrease)
in
net
assets
...................................
178,315,051
364,020,518
Net
assets:
Beginning
of
period
.....................................................
3,255,813,529
2,891,793,011
End
of
period
..........................................................
$3,434,128,580
$3,255,813,529
Franklin
Municipal
Securities
Trust
39
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
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),
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class
.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
class
A
shares
after
a
10-year
holding
period.
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.
As
approved
by
the
Trust’s
Board
of
Trustees
(the
Board)
at
a
meeting
held
on
December
9,
2021,
the
Fund’s
fiscal
year-end
will
be
changed
to
February
28
effective
February
28,
2022.
This
will
result
in
the
Fund
having
a
fiscal
year
that
is
shorter
than
a
full
calendar
year
for
the
period
ended
February
28,
2022.
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation 
The Fund’s
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Fund calculates the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board,
the
Fund’s administrator
has
responsibility
for
oversight
of
valuation,
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. 
Debt
securities
generally
trade
in
the
over-the-counter
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,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
when-issued
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
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
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
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
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
November
30,
2021, 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).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
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
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Fund
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
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
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Income
Taxes
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
November
30,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
is
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
November
30,
2021
Year
Ended
May
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
13,443,543
$154,903,902
21,760,785
$244,893,970
Shares
issued
in
reinvestment
of
distributions
..........
708,896
8,142,981
1,202,763
13,544,506
Shares
redeemed
...............................
(4,414,412)
(50,787,289)
(507,539)
(95,735,083)
Net
increase
(decrease)
..........................
9,738,027
$112,259,594
14,456,009
$162,703,393
Class
A1
Shares:
Shares
sold
...................................
2,997,201
$34,458,115
9,548,284
$107,177,683
Shares
issued
in
reinvestment
of
distributions
..........
1,375,966
15,781,369
3,056,285
34,312,254
Shares
redeemed
...............................
(5,549,939)
(63,805,175)
(14,706,484)
(247,813,050)
Net
increase
(decrease)
..........................
(1,176,772)
$(13,565,691)
(9,478,936)
$(106,323,113)
Class
C
Shares:
Shares
sold
...................................
1,272,962
$14,759,554
2,578,272
$29,197,094
Shares
issued
in
reinvestment
of
distributions
..........
203,509
2,353,329
496,008
5,610,813
Shares
redeemed
a
..............................
(3,821,830)
(44,379,024)
(7,055,461)
(79,635,852)
Net
increase
(decrease)
..........................
(2,345,359)
$(27,266,141)
(3,981,181)
$(44,827,945)
Class
R6
Shares:
Shares
sold
...................................
1,768,756
$20,423,930
2,372,612
$26,871,853
Shares
issued
in
reinvestment
of
distributions
..........
51,721
595,002
81,476
918,581
Shares
redeemed
...............................
(401,854)
(4,630,971)
(996,498)
(11,150,325)
Net
increase
(decrease)
..........................
1,418,623
$16,387,961
1,457,590
$16,640,109
Advisor
Class
Shares:
Shares
sold
...................................
15,136,304
$174,358,189
31,248,775
$352,380,497
Shares
issued
in
reinvestment
of
distributions
..........
1,221,160
14,035,423
2,232,963
25,149,727
Shares
redeemed
...............................
(7,585,346)
(87,116,445)
(20,224,098)
(227,514,029)
Net
increase
(decrease)
..........................
8,772,118
$101,277,167
13,257,640
$150,016,195
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
(formerly
Franklin
Templeton
Distributors,
Inc.)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
November
30,
2021,
the
annualized
gross
effective
investment
management
fee
rate
was
0.458%
of
the
Fund’s
average
daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
each
of
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.
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
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
the
Fund.
 The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Distributors
has
agreed
to
limit
the
current
rate
to
0.10%
per
year
for
Class
A1.
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
Reimbursement
Plans:
Class
A
..................................................................................
0.25%
Class
A1
.................................................................................
0.15%
Compensation
Plans:
Class
C
..................................................................................
0.65%
3.
Transactions
with
Affiliates
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund’s
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
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
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
November
30,
2021,
the
Fund
paid
transfer
agent
fees
of
$1,066,641,
of
which
$442,537
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
September
30,
2022.
Investor
Services
may
discontinue
this
waiver
in
the
future.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
November
30,
2021,
these
purchases
and
sales
transactions
aggregated
$40,905,000
and
$41,000,000
respectively.
4.
Expense
Offset
Arrangement
The
Fund
has entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund’s
custodian
expenses.
During
the period
ended
November
30,
2021 the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
May
31,
2021,
the
capital
loss
carryforwards
were
as
follows:
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$21,900
CDSC
retained
..............................................................................
$34,020
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$86,832,162
Long
term
................................................................................
19,114,020
Total
capital
loss
carryforwards
...............................................................
$105,946,182
3.
Transactions
with
Affiliates
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
44
franklintempleton.com
Semiannual
Report
At
November
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
bond
discounts
and
premiums
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
November
30,
2021,
aggregated
$261,343,851
and
$201,719,629,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
November
30,
2021,
the
Fund
had
33.4%
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
November
30,
2021,
the
aggregate
value
of
these
securities
was
$94,193,651,
representing
2.7%
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
Statement
of
Investments.
8.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
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
those
states
and
U.S.
territories.
Investing
in
Puerto
Rico
securities
may
expose
the
Fund
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
In
addition,
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.
9.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Fund, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
Cost
of
investments
..........................................................................
$3,011,250,958
Unrealized
appreciation
........................................................................
$411,204,979
Unrealized
depreciation
........................................................................
(27,226,751)
Net
unrealized
appreciation
(depreciation)
..........................................................
$383,978,228
5.
Income
Taxes
(continued)
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
45
franklintempleton.com
Semiannual
Report
10.
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
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
4,
2022.
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
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
period ended
November
30,
2021,
the
Fund
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund’s
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Fund’s
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
November
30,
2021,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the period.
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
:
Commercial
Services
&
Supplies
...........
$
—
$
5,220,000
$
1,370,000
$
6,590,000
Municipal
Bonds
.........................
—
3,225,339,186
—
3,225,339,186
Short
Term
Investments
...................
—
163,300,000
—
163,300,000
Total
Investments
in
Securities
...........
$—
$3,393,859,186
$1,370,000
$3,395,229,186
Franklin
Municipal
Securities
Trust
Notes
to
Financial
Statements
(unaudited)
46
franklintempleton.com
Semiannual
Report
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
13.
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
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Selected
Portfolio
1915
Act
Improvement
Bond
Act
of
1915
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FRN
Floating
Rate
Note
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
12.
New
Accounting
Pronouncements
(continued)
Franklin
Municipal
Securities
Trust
Shareholder
Information
47
franklintempleton.com
Semiannual
Report
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
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
financial
reports
(to
the
extent
received
by
mail)
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)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
MUN
S
01/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Franklin
California
High
Yield
Municipal
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(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.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4. Principal Accountant Fees and Services.      
N/A
   
 
Item 5.  Audit Committee of Listed Registrants.      N/A
 
 
Item 6. Schedule of Investments.                      N/A

 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.               N/A
 
 
Item 8.  Portfolio Managers of Closed-End Management Investment Companies.                                              N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.        N/A
 
 
Item 10. 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 11. Controls and Procedures.
 
(a)
  Evaluation of Disclosure Controls and Procedures. 
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
 
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
 
(b)   Changes in Internal Controls
. There have been no changes 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 internal control over financial reporting.
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A
 
 
Item 13. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle
, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
FRANKLIN
MUNICIPAL SECURITIES TRUST
 
 
 
By S\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer – Finance and Administration
Date January 26, 2022
 
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\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer – Finance and Administration
Date January 26, 2022
 
 
 
By S\Christopher Kings________________________
     Christopher Kings
     Chief Financial Officer, Chief Accounting Officer and Treasurer
Date January 26, 2022