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)
 
Alison Baur, 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: 2/28
 
Date of reporting period: 8/31/23
 
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
Franklin
California
High
Yield
Municipal
Fund
A
Series
of
Franklin
Municipal
Securities
Trust
August
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Fund
Overview
2
Performance
Summary
3
Your
Fund’s
Expenses
5
Financial
Highlights
and
Schedule
of
Investments
6
Financial
Statements
29
Notes
to
Financial
Statements
33
Shareholder
Information
41
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
This
semiannual
report
for
Franklin
California
High
Yield
Municipal
Fund
covers
the
period
ended
August
31,
2023.
Fund
Overview
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
$9.69
on
February
28,
2023,
to
$9.54
on
August
31,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
19.7938
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
3
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
4.04%,
based
on
an
annualization
of
August’s
3.3344
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$9.91
on
August
31,
2023.
An
investor
in
the
2023
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
8.61%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
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.
*
Does
not
include
cash
and
cash
equivalents.
Thank
you
for
your
continued
participation
in
Franklin
California
High
Yield
Municipal
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Portfolio
Composition
8/31/23
%
of
Total
Investments*
Special
Tax
23.37%
Housing
17.97%
Transportation
16.00%
Education
11.55%
Local
7.78%
Health
Care
7.58%
Industrial
Dev.
Revenue
and
Pollution
Control
5.46%
Other
Revenue
Bonds
3.98%
Refunded
3.30%
Utilities
1.86%
State
General
Obligation
0.89%
Lease
0.26%
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
11
.
Performance
Summary
as
of
August
31,
2023
Franklin
California
High
Yield
Municipal
Fund
3
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
8/31/23
1
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
2
Average
Annual
Total
Return
3
–
A
4,5
6-Month
+0.47%
-3.29%
1-Year
-0.71%
-4.44%
5-Year
+4.62%
+0.14%
10-Year
+42.80%
+3.23%
Advisor
6-Month
+0.60%
+0.60%
1-Year
-0.57%
-0.57%
5-Year
+5.63%
+1.10%
10-Year
+45.08%
+3.79%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
4.04%
8.61%
4.11%
8.76%
Advisor
4.45%
9.49%
4.52%
9.64%
See
page
4
for
Performance
Summary
footnotes.
Franklin
California
High
Yield
Municipal
Fund
Performance
Summary
4
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Portfolios
focused
on
a
single
state
are
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
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.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity,
and
possibility
of
default.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/24
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
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.
4.
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.
5.
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%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
August
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
8/31/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
6/22/23
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.
8.
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.
9.
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
(3/1/23–8/31/23)
Share
Class
Net
Investment
Income
A
$0.197938
A1
$0.205322
C
$0.178144
R6
$0.211972
Advisor
$0.210181
Total
Annual
Operating
Expenses
9
Share
Class
A
0.81%
Advisor
0.55%
Your
Fund’s
Expenses
Franklin
California
High
Yield
Municipal
Fund
5
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
184/366
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
3/1/23
Ending
Account
Value
8/31/23
Expenses
Paid
During
Period
3/1/23–8/31/23
1,2
Ending
Account
Value
8/31/23
Expenses
Paid
During
Period
3/1/23–8/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,004.70
$4.10
$1,021.05
$4.13
0.81%
A1
$1,000
$1,005.50
$3.34
$1,021.80
$3.37
0.66%
C
$1,000
$1,001.70
$6.08
$1,019.06
$6.13
1.21%
R6
$1,000
$1,006.20
$2.65
$1,022.49
$2.68
0.53%
Advisor
$1,000
$1,006.00
$2.83
$1,022.31
$2.86
0.56%
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2019
b
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$9.69
$11.02
$11.49
$10.81
$11.10
$10.70
Income
from
investment
operations
c
:
Net
investment
income
d
.............
0.20
0.36
0.26
0.35
0.34
0.27
Net
realized
and
unrealized
gains
(losses)
(0.15)
(1.35)
(0.49)
0.67
(0.29)
0.41
Total
from
investment
operations
........
0.05
(0.99)
(0.23)
1.02
0.05
0.68
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.34)
(0.24)
(0.34)
(0.34)
(0.28)
Net
asset
value,
end
of
period
..........
$9.54
$9.69
$11.02
$11.49
$10.81
$11.10
Total
return
e
.......................
0.47%
(9.03)%
(2.09)%
9.57%
0.43%
6.56%
Ratios
to
average
net
assets
f
Expenses
g
........................
0.81%
0.88%
0.81%
0.79%
0.80%
0.83%
Net
investment
income
...............
4.02%
3.63%
2.88%
3.10%
3.10%
3.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$611,372
$595,614
$714,052
$618,967
$425,757
$244,196
Portfolio
turnover
rate
................
5.73%
18.77%
10.19%
9.20%
23.29%
13.91%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019
.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$9.67
$10.99
$11.47
$10.79
$11.08
$10.70
$10.89
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.20
0.38
0.26
0.37
0.36
0.40
0.39
Net
realized
and
unrealized
gains
(losses)
(0.14)
(1.35)
(0.49)
0.67
(0.29)
0.39
(0.19)
Total
from
investment
operations
.............
0.06
(0.97)
(0.23)
1.04
0.07
0.79
0.20
Less
distributions
from:
Net
investment
income
..
(0.21)
(0.35)
(0.25)
(0.36)
(0.36)
(0.41)
(0.39)
Net
asset
value,
end
of
period
................
$9.52
$9.67
$10.99
$11.47
$10.79
$11.08
$10.70
Total
return
d
...........
0.55%
(8.83)%
(2.07)%
9.76%
0.58%
7.56%
1.92%
Ratios
to
average
net
assets
e
Expenses
.............
0.66%
f
0.72%
f
0.66%
f
0.64%
f
0.65%
f
0.68%
f
0.66%
Net
investment
income
...
4.18%
3.78%
3.04%
3.27%
3.25%
3.70%
3.63%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$814,098
$862,312
$1,166,095
$1,254,701
$1,282,022
$1,386,291
$1,378,169
Portfolio
turnover
rate
....
5.73%
18.77%
10.19%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
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.
8
a
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$9.75
$11.08
$11.56
$10.87
$11.17
$10.78
$10.97
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.18
0.32
0.21
0.30
0.30
0.34
0.33
Net
realized
and
unrealized
gains
(losses)
(0.16)
(1.35)
(0.49)
0.69
(0.30)
0.40
(0.19)
Total
from
investment
operations
.............
0.02
(1.03)
(0.28)
0.99
—
0.74
0.14
Less
distributions
from:
Net
investment
income
..
(0.18)
(0.30)
(0.20)
(0.30)
(0.30)
(0.35)
(0.33)
Net
asset
value,
end
of
period
................
$9.59
$9.75
$11.08
$11.56
$10.87
$11.17
$10.78
Total
return
d
...........
0.17%
(9.35)%
(2.46)%
9.18%
(0.04)%
7.01%
1.34%
Ratios
to
average
net
assets
e
Expenses
.............
1.21%
f
1.27%
f
1.20%
f
1.19%
f
1.20%
f
1.23%
f
1.21%
Net
investment
income
...
3.59%
3.19%
2.47%
2.69%
2.70%
3.15%
3.08%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$103,609
$118,149
$180,173
$223,652
$253,579
$272,186
$327,022
Portfolio
turnover
rate
....
5.73%
18.77%
10.19%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2018
b
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$9.70
$11.03
$11.51
$10.82
$11.12
$10.74
$10.88
Income
from
investment
operations
c
:
Net
investment
income
d
.
0.21
0.39
0.27
0.38
0.38
0.41
0.35
Net
realized
and
unrealized
gains
(losses)
(0.15)
(1.35)
(0.49)
0.68
(0.30)
0.39
(0.15)
Total
from
investment
operations
.............
0.06
(0.96)
(0.22)
1.06
0.08
0.80
0.20
Less
distributions
from:
Net
investment
income
..
(0.21)
(0.37)
(0.26)
(0.37)
(0.38)
(0.42)
(0.34)
Net
asset
value,
end
of
period
................
$9.55
$9.70
$11.03
$11.51
$10.82
$11.12
$10.74
Total
return
e
...........
0.62%
(8.76)%
(1.96)%
9.97%
0.63%
7.66%
1.84%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
....
0.53%
0.58%
0.53%
0.52%
0.52%
0.57%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
....
0.53%
g,h
0.58%
g,h
0.52%
g
0.51%
g
0.51%
g
0.55%
g
0.53%
Net
investment
income
...
4.31%
3.91%
3.16%
3.37%
3.39%
3.83%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$48,133
$44,724
$60,366
$45,216
$26,741
$21,214
$13,004
Portfolio
turnover
rate
....
5.73%
18.77%
10.19%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
For
the
period
August
1,
2017
(effective
date)
to
May
31,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Financial
Highlights
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
a
Year
Ended
May
31,
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............
$9.69
$11.02
$11.50
$10.82
$11.11
$10.73
$10.91
Income
from
investment
operations
b
:
Net
investment
income
c
.
0.21
0.39
0.27
0.38
0.37
0.41
0.40
Net
realized
and
unrealized
gains
(losses)
(0.15)
(1.36)
(0.49)
0.67
(0.29)
0.39
(0.18)
Total
from
investment
operations
.............
0.06
(0.97)
(0.22)
1.05
0.08
0.80
0.22
Less
distributions
from:
Net
investment
income
..
(0.21)
(0.36)
(0.26)
(0.37)
(0.37)
(0.42)
(0.40)
Net
asset
value,
end
of
period
................
$9.54
$9.69
$11.02
$11.50
$10.82
$11.11
$10.73
Total
return
d
...........
0.60%
(8.80)%
(1.99)%
9.84%
0.68%
7.64%
2.10%
Ratios
to
average
net
assets
e
Expenses
.............
0.56%
f
0.62%
f
0.56%
f
0.54%
f
0.55%
f
0.58%
f
0.56%
Net
investment
income
...
4.27%
3.87%
3.13%
3.35%
3.35%
3.80%
3.73%
Supplemental
data
Net
assets,
end
of
period
(000’s)
...............
$891,208
$922,275
$1,186,382
$1,113,278
$903,694
$889,990
$748,355
Portfolio
turnover
rate
....
5.73%
18.77%
10.19%
9.20%
23.29%
13.91%
11.08%
a
For
the
period
June
1,
2021
to
February
28,
2022.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited),
August
31,
2023
Franklin
California
High
Yield
Municipal
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
2.9%
Commercial
Services
&
Supplies
0.8%
a,b,c
CalPlant
I
LLC
,
21A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
$
1,370,000
$
1,370,000
21B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
5,220,000
5,220,000
22A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
2,875,000
2,875,000
22B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
250,000
250,000
22C,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
1,885,000
1,885,000
22X,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
2,830,000
2,830,000
23A,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
1,000,000
1,000,000
23B,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
890,000
890,000
23C,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
1,415,000
1,415,000
23D,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
1,230,000
1,230,000
23E,
Senior
Secured
Note,
144A,
9.5%,
8/31/23
...........................
1,385,000
1,385,000
20,350,000
Diversified
Consumer
Services
1.7%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....................
45,335,000
40,973,773
Electric
Utilities
0.4%
c
Mission
Rock
Utilities,
Inc.
,
144A,
7
%
,
7/01/27
..............................
10,000,000
9,564,284
Total
Corporate
Bonds
(Cost
$75,583,772)
......................................
70,888,057
Municipal
Bonds
96.7%
California
86.9%
Alameda
Community
Facilities
District
,
City
of
Alameda
Community
Facilities
District
No.
22-1,
Special
Tax,
2023,
5%,
9/01/38
........................................................
850,000
828,561
City
of
Alameda
Community
Facilities
District
No.
22-1,
Special
Tax,
2023,
5%,
9/01/43
........................................................
1,000,000
953,168
City
of
Alameda
Community
Facilities
District
No.
22-1,
Special
Tax,
2023,
5%,
9/01/53
........................................................
1,000,000
911,668
California
Community
College
Financing
Authority
,
c
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
A,
5.75%,
7/01/60
.....
17,500,000
17,234,987
c
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
B,
7.75%,
7/01/30
.....
2,405,000
2,221,373
c
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
C,
6.75%,
7/01/60
.....
7,050,000
6,862,587
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/48
..........
225,000
226,459
NCCD-Orange
Coast
Properties
LLC,
Revenue,
2018,
5.25%,
5/01/53
..........
6,785,000
6,806,719
c
California
Community
Housing
Agency
,
Annadel
Apartments,
Revenue,
144A,
2019
A,
5%,
4/01/49
..................
27,050,000
22,338,077
Serenity
at
Larkspur
Apartments,
Revenue,
144A,
2020
A,
5%,
2/01/50
.........
22,525,000
17,764,841
Twin
Creek
Apartments,
Revenue,
Junior
Lien,
144A,
2022
B,
5.5%,
2/01/40
.....
4,475,000
3,981,789
Verdant
at
Green
Valley
Apartments,
Revenue,
144A,
2019
A,
5%,
8/01/49
.......
15,000,000
13,760,669
California
County
Tobacco
Securitization
Agency
,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn.,
6/01/55
........................
125,010,000
20,552,431
Gold
Country
Settlement
Funding
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn.,
6/01/55
........................................................
13,420,000
2,825,271
Merced
County
Tobacco
Funding
Corp.,
Revenue,
2020
B,
Refunding,
5%,
6/01/50
3,000,000
2,955,812
Sonoma
County
Securitization
Corp.,
Revenue,
2020
B-2,
Refunding,
Zero
Cpn.,
6/01/55
........................................................
10,000,000
2,105,269
California
Educational
Facilities
Authority
,
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
.......
1,265,000
1,293,167
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
.......
1,125,000
1,146,970
Art
Center
College
of
Design,
Revenue,
2018
A,
Refunding,
5%,
12/01/44
.......
10,375,000
10,434,595
Chapman
University,
Revenue,
2015,
5%,
4/01/40
.........................
5,000,000
5,060,268
Leland
Stanford
Junior
University
(The),
Revenue,
T-1,
5%,
3/15/39
............
4,185,000
4,817,857
Leland
Stanford
Junior
University
(The),
Revenue,
U-3,
5%,
6/01/43
............
5,815,000
6,641,529
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Educational
Facilities
Authority,
(continued)
University
of
the
Pacific,
Revenue,
2015,
Refunding,
5%,
11/01/36
.............
$
3,000,000
$
3,068,580
c
California
Enterprise
Development
Authority
,
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/36
250,000
222,721
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
630,000
479,433
Rocklin
Academy
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
845,000
611,016
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
3/01/39
........................................................
8,190,000
7,677,842
Children's
Hospital
Los
Angeles
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
8/15/49
........................................................
3,375,000
3,000,825
El
Camino
Hospital,
Revenue,
2017,
4%,
2/01/42
..........................
6,500,000
6,131,653
El
Camino
Hospital,
Revenue,
2017,
5%,
2/01/42
..........................
5,000,000
5,115,958
Lucile
Salter
Packard
Children's
Hospital
at
Stanford
Obligated
Group,
Revenue,
2014
A,
5%,
8/15/43
..............................................
7,160,000
7,232,544
Sutter
Health
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
12,485,000
12,766,640
California
Housing
Finance
Agency
,
Revenue,
2019-2,
A,
4%,
3/20/33
......................................
52,687
50,872
Revenue,
2021-1,
A,
3.5%,
11/20/35
...................................
4,820,636
4,435,269
c
Redwood
Gardens
Renewal
LP,
Revenue,
144A,
2021
N-S,
4%,
3/01/37
........
3,165,000
2,552,291
c,d
Shermanair
Apartments
Owner
LP,
Revenue,
144A,
2021
Q-S,
Mandatory
Put,
4.5%,
9/01/36
........................................................
4,000,000
3,473,783
c
California
Infrastructure
&
Economic
Development
Bank
,
Goodwill
Industries
of
Sacramento
Valley
&
Northern
Nevada,
Inc.,
Revenue,
144A,
2016
A,
5%,
1/01/47
..............................................
10,360,000
7,644,557
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,600,000
1,247,300
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
2,300,000
1,817,675
California
Municipal
Finance
Authority
,
Revenue,
2022
A-1,
4.25%,
12/01/37
...................................
16,700,000
13,661,826
c,d
Revenue,
144A,
2023
B-1,
Mandatory
Put,
7%,
4/01/33
.....................
20,770,000
20,386,420
c,d
Revenue,
144A,
2023
B-2,
Mandatory
Put,
7%,
4/01/33
.....................
13,825,000
13,523,243
c
Revenue,
144A,
2023,
II,
7%,
7/01/51
..................................
12,655,000
11,936,069
Special
Tax,
2021
B,
4%,
9/01/41
......................................
900,000
800,100
Special
Tax,
2022
B,
Refunding,
6%,
9/01/52
.............................
2,920,000
2,932,528
Special
Tax,
2022
B,
Refunding,
6.3%,
9/01/52
............................
1,205,000
1,230,866
Special
Tax,
2022
C,
6.25%,
9/01/52
...................................
4,050,000
3,987,325
Special
Tax,
2022
D,
6.125%,
9/01/52
..................................
6,885,000
6,973,822
1717
University
Associates
LLC,
Revenue,
2020
A-S,
5%,
9/01/57
.............
1,175,000
912,431
ACI
Royal
York,
Inc.,
Revenue,
2020
A,
4%,
2/15/55
........................
2,375,000
1,810,153
American
Heritage/Escondido/Heritage
K-8
Charter
School
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/36
.............................
3,000,000
3,019,364
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/36
...............
1,100,000
1,127,614
Biola
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/01/39
...............
1,000,000
1,015,038
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/35
.....................
600,000
603,128
Bowles
Hall
Foundation,
Revenue,
2015
A,
5%,
6/01/50
.....................
3,250,000
3,252,407
c
California
Baptist
University,
Revenue,
144A,
2015
A,
5.375%,
11/01/40
.........
5,000,000
5,030,411
c
California
Baptist
University,
Revenue,
144A,
2015
A,
5.5%,
11/01/45
...........
10,000,000
10,045,524
c
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/36
............
2,500,000
2,506,341
c
Capital
Christian
Center,
Revenue,
144A,
2021
A,
5%,
10/01/51
...............
8,425,000
6,952,684
c
Capital
Christian
Center,
Revenue,
144A,
2021
B,
Refunding,
4%,
10/01/37
......
8,150,000
6,447,733
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5%,
8/15/30
.....
1,000,000
1,009,630
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/39
...
1,200,000
1,208,529
Caritas
Affordable
Housing,
Inc.,
Revenue,
Senior
Lien,
2014
A,
5.25%,
8/15/49
...
3,500,000
3,518,864
CHF-Davis
I
LLC,
Revenue,
2018,
5%,
5/15/51
...........................
5,000,000
4,955,198
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/51
................
550,000
394,133
CHF-Davis
II
LLC,
Revenue,
2021,
BAM
Insured,
3%,
5/15/54
................
2,585,000
1,806,075
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
CHF-Riverside
I
LLC,
Revenue,
2018,
5%,
5/15/40
.........................
$
1,500,000
$
1,517,537
CHF-Riverside
II
LLC,
Revenue,
2019,
5%,
5/15/49
........................
9,575,000
9,533,120
c
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/39
.
1,120,000
1,048,218
c
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/49
.
4,290,000
3,805,095
c
Claremont
Graduate
University,
Revenue,
144A,
2020
B,
Refunding,
5%,
10/01/54
.
1,875,000
1,633,469
Community
Facilities
District
No.
2021-11,
Special
Tax,
2022,
5%,
9/01/52
.......
2,500,000
2,393,964
Community
Facilities
District
No.
2021-13,
Special
Tax,
2022,
5%,
9/01/42
.......
1,000,000
992,738
Community
Facilities
District
No.
2021-13,
Special
Tax,
2022,
5%,
9/01/52
.......
5,150,000
4,916,886
Community
Facilities
District
No.
2021-6
Improvement
Area
No.
2,
Special
Tax,
2022,
6%,
9/01/52
....................................................
4,350,000
4,420,108
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
3%,
12/01/23
.......................................................
100,000
99,332
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
4%,
12/01/26
.......................................................
200,000
194,574
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/27
.......................................................
100,000
101,573
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/29
.......................................................
50,000
51,291
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/31
.......................................................
130,000
133,748
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/36
.......................................................
350,000
350,958
c
Community
Health
Centers
of
The
Central
Coast,
Inc.,
Revenue,
144A,
2021
A,
5%,
12/01/54
.......................................................
2,000,000
1,854,092
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2015
A,
Pre-
Refunded,
5%,
2/01/40
............................................
5,000,000
5,130,873
Community
Hospitals
of
Central
California
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
2/01/42
............................................
10,000,000
9,243,519
Congregational
Homes,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/39
.......................................................
2,670,000
2,519,669
Congregational
Homes,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
.......................................................
480,000
426,790
c
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4%,
11/01/36
.......
1,395,000
1,185,587
c
Creative
Center
of
Los
Altos
(The),
Revenue,
144A,
2016
B,
4.5%,
11/01/46
......
1,600,000
1,296,494
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/32
.............
3,020,000
3,147,749
Del
Harbor
Foundation,
Revenue,
2015,
Refunding,
5%,
11/01/39
.............
6,525,000
6,738,833
Developmental
Services
Support
Foundation,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
........................................................
2,895,000
2,956,081
Eisenhower
Medical
Center,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.........
2,625,000
2,672,856
Eisenhower
Medical
Center,
Revenue,
2017
B,
Refunding,
5%,
7/01/47
.........
5,000,000
4,980,880
HumanGood
California
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
10/01/44
5,500,000
5,561,731
HumanGood
California
Obligated
Group,
Revenue,
2021,
3%,
10/01/49
.........
5,000,000
3,413,650
Inland
Counties
Regional
Center,
Inc.,
Revenue,
2015,
Refunding,
5%,
6/15/37
...
9,965,000
10,238,318
c
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/36
.....
2,050,000
2,014,050
c
King/Chavez
Facilities
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
5/01/46
.....
2,775,000
2,606,572
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/43
13,915,000
13,922,625
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
4%,
12/31/47
6,085,000
5,190,125
LAX
Integrated
Express
Solutions
LLC,
Revenue,
Senior
Lien,
2018
A,
5%,
12/31/47
22,250,000
21,979,393
Literacy
First
Charter
School
Issuer
LLC,
Revenue,
2019
A,
5%,
12/01/49
.......
4,165,000
4,030,611
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/35
......
1,100,000
1,103,972
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2015,
5%,
11/01/44
......
1,050,000
945,603
Northbay
Healthcare
Group
Obligated
Group,
Revenue,
2017
A,
5.25%,
11/01/47
..
3,000,000
2,737,014
c
P3
Claremont
Holdings
LLC,
Revenue,
144A,
2020
A,
5%,
7/01/30
.............
520,000
516,407
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/31
..
1,000,000
1,005,415
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/36
..
2,750,000
2,719,055
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2016
A,
5%,
7/01/41
..
1,750,000
1,651,264
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Municipal
Finance
Authority,
(continued)
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
3.875%,
7/01/28
$
855,000
$
815,950
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/38
..
1,100,000
1,063,042
c
Palmdale
Aerospace
Academy,
Inc.
(The),
Revenue,
144A,
2018
A,
5%,
7/01/49
..
3,600,000
3,243,238
ROP
WMCC
LLC,
Revenue,
2013
A,
Pre-Refunded,
5.625%,
11/15/33
..........
1,000,000
1,004,469
c
Santa
Rosa
Academy
LLC,
Revenue,
144A,
2015,
5.125%,
7/01/35
............
450,000
444,278
c
Santa
Rosa
Academy
LLC,
Revenue,
144A,
2015,
5.375%,
7/01/45
............
1,400,000
1,390,109
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.5%,
12/01/33
.....................................
3,115,000
3,126,760
South
Central
Los
Angeles
Regional
Center
for
Developmentally
Disabled
Persons,
Revenue,
2013,
5.75%,
12/01/43
....................................
7,000,000
7,019,303
c
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/41
...............
925,000
858,026
c
STREAM
Charter
School,
Revenue,
144A,
2020
A,
5%,
6/15/51
...............
1,385,000
1,217,326
c
STREAM
Charter
School,
Revenue,
144A,
2020
B,
6.4%,
6/15/32
.............
790,000
740,324
c
California
Pollution
Control
Financing
Authority
,
b
CalPlant
I
LLC,
Revenue,
144A,
2017,
7%,
7/01/22
........................
3,500,000
175,000
b
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
13,000,000
650,000
b
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
11,500,000
575,000
b
CalPlant
I
LLC,
Revenue,
144A,
2020,
7.5%,
7/01/32
.......................
4,500,000
585,000
Poseidon
Resources
Channelside
LP,
Revenue,
144A,
2012,
5%,
11/21/45
......
21,685,000
21,171,762
b
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
6.75%,
12/01/28
..........
1,165,000
699,000
b
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
5,425,000
3,254,952
California
Public
Finance
Authority
,
c
Crossroads
Christian
Schools
Obligated
Group,
Revenue,
144A,
2020,
5%,
1/01/56
4,015,000
3,196,284
Henry
Mayo
Newhall
Hospital
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
10/15/37
.......................................................
1,100,000
1,109,186
c
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/36
.......................................................
1,000,000
968,937
c
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/56
.......................................................
2,000,000
1,718,421
c
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
B-1,
Refunding,
3.125%,
5/15/29
........................................................
2,510,000
2,376,942
c
California
School
Finance
Authority
,
Alliance
for
College
Ready
Public
Schools
Obligated
Group,
Revenue,
144A,
2016
C,
5%,
7/01/46
....................................................
10,000,000
9,861,379
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/41
.......
500,000
381,713
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/51
.......
2,835,000
1,956,862
Alternative
Schools,
Inc.,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/61
.......
3,675,000
2,391,286
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/35
........................................................
1,000,000
1,009,825
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2015,
Refunding,
5%,
8/01/45
........................................................
1,100,000
1,077,638
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2016,
5%,
8/01/41
......
2,010,000
2,009,968
Aspire
Public
Schools
Obligated
Group,
Revenue,
144A,
2016,
Pre-Refunded,
5%,
8/01/41
........................................................
190,000
196,285
Citizens
of
the
World
Los
Angeles
Obligated
Group,
Revenue,
144A,
2022
A,
6.25%,
4/01/52
........................................................
2,000,000
1,963,323
Citizens
of
the
World
Los
Angeles
Obligated
Group,
Revenue,
144A,
2022
A,
6.375%,
4/01/62
.................................................
2,000,000
1,970,236
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/37
.......................................................
1,485,000
1,491,814
Classical
Academy
Obligated
Group,
Revenue,
144A,
2017
A,
Refunding,
5%,
10/01/44
.......................................................
5,610,000
5,402,645
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/40
.....
500,000
493,339
Classical
Academy
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
10/01/50
.....
3,570,000
3,352,672
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/48
...............
1,000,000
885,581
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
c
California
School
Finance
Authority,
(continued)
Ednovate
Obligated
Group,
Revenue,
144A,
2018,
5%,
6/01/56
...............
$
1,710,000
$
1,474,678
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/40
...........
225,000
218,121
Fenton
Charter
Public
Schools,
Revenue,
144A,
2020
A,
5%,
7/01/50
...........
1,275,000
1,172,683
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/43
........................................................
2,000,000
1,973,768
Granada
Hills
Charter
High
School
Obligated
Group,
Revenue,
144A,
2019,
5%,
7/01/49
........................................................
5,750,000
5,534,382
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/35
.
2,525,000
2,552,568
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
8/01/45
.
3,500,000
3,371,037
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/38
.
1,000,000
1,004,051
Green
Dot
Public
Schools
Obligated
Group,
Revenue,
144A,
2018
A,
5%,
8/01/48
.
1,750,000
1,661,594
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
4%,
6/01/31
.....................
250,000
229,570
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/41
.....................
435,000
403,084
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/51
.....................
600,000
533,378
iLEAD
Lancaster,
Revenue,
144A,
2021
A,
5%,
6/01/61
.....................
1,320,000
1,130,438
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
4.5%,
7/01/32
.
615,000
594,518
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5%,
7/01/42
...
2,140,000
1,996,339
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5%,
7/01/52
...
3,175,000
2,817,047
John
Adams
Academies
Obligated
Group,
Revenue,
144A,
2022
A,
5.125%,
7/01/62
8,125,000
7,146,494
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/35
1,200,000
1,220,772
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2015
A,
5%,
7/01/45
1,675,000
1,678,766
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
7/01/47
1,500,000
1,504,176
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/39
1,000,000
1,020,165
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/49
1,000,000
1,002,092
KIPP
SoCal
Public
Schools
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
7/01/54
2,300,000
2,296,107
Larchmont
Schools,
Revenue,
144A,
2018
A,
5%,
6/01/55
...................
2,050,000
1,923,014
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
3%,
7/01/30
.....
365,000
323,224
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/45
.....
1,200,000
1,094,366
Lifeline
Education
Charter
School,
Inc.,
Revenue,
144A,
2020
A,
5%,
7/01/55
.....
1,235,000
1,080,896
Lighthouse
Community
Public
Schools
Obligated
Group,
Revenue,
144A,
2022
A,
6.375%,
6/01/52
.................................................
1,250,000
1,266,287
Lighthouse
Community
Public
Schools
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
6/01/62
...................................................
1,500,000
1,518,386
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
144A,
2021
A,
4%,
11/01/31
.......
1,000,000
959,531
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
144A,
2021
A,
4%,
11/01/36
.......
1,670,000
1,520,879
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
144A,
2021
A,
4%,
11/01/51
.......
16,730,000
13,196,781
NCCD-Santa
Rosa
Properties
LLC,
Revenue,
144A,
2021
A,
4%,
11/01/55
.......
1,400,000
1,079,613
Orange
County
Educational
Arts
Academy,
Revenue,
144A,
2023
A,
Refunding,
5%,
6/01/33
........................................................
650,000
643,536
Orange
County
Educational
Arts
Academy,
Revenue,
144A,
2023
A,
Refunding,
5.625%,
6/01/43
.................................................
560,000
552,074
Orange
County
Educational
Arts
Academy,
Revenue,
144A,
2023
A,
Refunding,
5.875%,
6/01/53
.................................................
600,000
590,001
Partnerships
to
Uplift
Communities
Obligated
Group,
Revenue,
144A,
2023,
Refunding,
5%,
8/01/33
............................................
815,000
826,203
Partnerships
to
Uplift
Communities
Obligated
Group,
Revenue,
144A,
2023,
Refunding,
5.25%,
8/01/38
.........................................
500,000
494,882
Partnerships
to
Uplift
Communities
Obligated
Group,
Revenue,
144A,
2023,
Refunding,
5.5%,
8/01/43
..........................................
550,000
550,801
Partnerships
to
Uplift
Communities
Obligated
Group,
Revenue,
144A,
2023,
Refunding,
5.5%,
8/01/47
..........................................
525,000
516,739
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/30
........
1,250,000
1,255,087
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/37
........
2,000,000
1,907,640
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/47
........
1,975,000
1,755,891
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2017
A,
5%,
7/01/52
........
1,340,000
1,162,119
River
Springs
Charter
School,
Inc.,
Revenue,
144A,
2023
A,
5.75%,
7/01/42
......
995,000
996,148
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
c
California
School
Finance
Authority,
(continued)
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5%,
6/01/34
....
$
750,000
$
752,797
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.125%,
6/01/47
.
845,000
784,204
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
A,
5.25%,
6/01/52
..
2,440,000
2,265,974
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/30
....
315,000
318,076
Rocketship
Education
Obligated
Group,
Revenue,
144A,
2017
G,
5%,
6/01/37
....
360,000
351,491
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/31
........................................................
260,000
243,467
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/41
........................................................
600,000
491,124
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/51
........................................................
800,000
598,057
Santa
Clarita
Valley
International
Charter
School,
Revenue,
144A,
2021
A,
4%,
6/01/61
........................................................
1,300,000
921,947
Summit
Public
Schools
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
6/01/47
........................................................
1,500,000
1,328,596
California
Statewide
Communities
Development
Authority
,
Revenue,
2015
R-1,
Refunding,
5%,
9/02/40
.............................
2,230,000
2,245,196
Special
Assessment,
2016
A,
5%,
9/02/36
...............................
1,035,000
1,057,188
Special
Assessment,
2017
A,
4%,
9/02/27
...............................
1,305,000
1,302,451
Special
Assessment,
2017
A,
5%,
9/02/37
...............................
1,970,000
2,016,649
Special
Assessment,
2017
A,
5%,
9/02/46
...............................
2,455,000
2,473,255
Special
Assessment,
2017
B,
5%,
9/02/37
...............................
3,260,000
3,337,196
Special
Assessment,
2017
B,
5%,
9/02/47
...............................
2,520,000
2,537,444
Special
Assessment,
2017
C,
5%,
9/02/37
...............................
4,405,000
4,514,174
Special
Assessment,
2018
A,
5%,
9/02/38
...............................
2,150,000
2,197,091
Special
Assessment,
2018
A,
5%,
9/02/47
...............................
3,745,000
3,768,435
Special
Assessment,
2018
B,
5%,
9/02/38
...............................
2,760,000
2,822,928
Special
Assessment,
2018
B,
5%,
9/02/43
...............................
4,690,000
4,742,499
Special
Assessment,
2018
B,
5%,
9/02/48
...............................
4,605,000
4,629,236
Special
Assessment,
2018
C,
5%,
9/02/38
...............................
5,765,000
5,896,441
Special
Assessment,
2018
C,
5%,
9/02/48
...............................
6,605,000
6,636,859
Special
Assessment,
2019
A,
5%,
9/02/39
...............................
1,600,000
1,642,449
Special
Assessment,
2019
A,
5%,
9/02/44
...............................
940,000
953,456
Special
Assessment,
2019
B,
5%,
9/02/44
...............................
1,150,000
1,165,863
Special
Assessment,
2019
C,
5%,
9/02/39
...............................
850,000
873,000
Special
Assessment,
2020
A,
5%,
9/02/40
...............................
1,250,000
1,276,033
Special
Assessment,
2020
A,
4%,
9/02/50
...............................
900,000
740,893
Special
Assessment,
2020
A,
5%,
9/02/50
...............................
1,000,000
998,292
Special
Assessment,
2020
B,
4%,
9/02/40
...............................
565,000
486,849
Special
Assessment,
2020
B,
4%,
9/02/50
...............................
695,000
559,360
Special
Assessment,
2021
A,
4%,
9/02/41
...............................
995,000
836,115
Special
Assessment,
2021
A,
4%,
9/02/51
...............................
3,275,000
2,506,228
Special
Assessment,
2021
B,
4%,
9/02/41
...............................
3,285,000
2,859,885
Special
Assessment,
2021
B,
4%,
9/02/51
...............................
5,150,000
4,143,395
Special
Assessment,
2021
C-1,
4%,
9/02/41
..............................
2,435,000
2,068,688
Special
Assessment,
2021
C-1,
4%,
9/02/51
..............................
3,610,000
2,838,664
Special
Assessment,
2021
C-2,
5%,
9/02/41
..............................
3,375,000
2,696,610
Special
Assessment,
2021
C-2,
5.5%,
9/02/51
............................
3,575,000
2,584,532
Special
Assessment,
2022
B,
5%,
9/02/42
...............................
3,000,000
2,924,624
Special
Assessment,
2022
B,
5%,
9/02/52
...............................
3,000,000
2,817,840
Special
Assessment,
2022
C,
5.375%,
9/02/52
............................
2,000,000
1,895,419
e
Special
Assessment,
2023
D,
5.5%,
9/02/53
..............................
1,000,000
986,908
Special
Tax,
2023
C-1,
5.25%,
9/02/53
..................................
3,000,000
2,786,605
Aldersly
Obligated
Group,
Revenue,
2015
A,
Pre-Refunded,
5%,
5/15/32
........
750,000
771,896
Aldersly
Obligated
Group,
Revenue,
2015
A,
Pre-Refunded,
5%,
5/15/40
........
1,010,000
1,039,487
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/35
.........
2,000,000
2,034,587
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Statewide
Communities
Development
Authority,
(continued)
Assessment
District
No.
14-01,
Special
Assessment,
2015,
5%,
9/02/45
.........
$
3,810,000
$
3,823,893
c
California
Baptist
University,
Revenue,
144A,
2014
A,
5.125%,
11/01/23
.........
115,000
115,026
c
California
Baptist
University,
Revenue,
144A,
2014
A,
6.125%,
11/01/33
.........
1,565,000
1,569,764
c
California
Baptist
University,
Revenue,
144A,
2014
A,
6.375%,
11/01/43
.........
4,035,000
4,044,028
c
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/32
...
1,135,000
1,155,794
c
California
Baptist
University,
Revenue,
144A,
2017
A,
Refunding,
5%,
11/01/41
...
1,875,000
1,826,853
Cedars-Sinai
Medical
Center
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
.....
6,000,000
5,415,293
CHF-Irvine
LLC,
Revenue,
2016,
Refunding,
5%,
5/15/40
....................
1,500,000
1,517,974
CHF-Irvine
LLC,
Revenue,
2017,
5%,
5/15/42
............................
710,000
718,539
Community
Facilities
District
No.
2016-02,
Special
Tax,
2016
A,
5%,
9/01/46
......
10,860,000
10,909,853
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/39
.......
1,230,000
1,257,433
Community
Facilities
District
No.
2016-02,
Special
Tax,
2019,
5%,
9/01/49
.......
3,000,000
3,015,884
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/40
.......
3,845,000
3,389,111
Community
Facilities
District
No.
2016-02,
Special
Tax,
2020,
4%,
9/01/50
.......
3,845,000
3,164,417
Community
Facilities
District
No.
2016-02,
Special
Tax,
2022,
5.5%,
9/01/52
......
7,500,000
7,406,177
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/39
.......
1,710,000
1,743,229
Community
Facilities
District
No.
2018-01,
Special
Tax,
2019,
5%,
9/01/48
.......
2,000,000
2,010,518
Community
Facilities
District
No.
2022-07
Improvement
Area
No.
1,
Special
Tax,
2023,
5%,
9/01/53
................................................
1,485,000
1,359,764
Enloe
Medical
Center
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
California
Mortgage
Insured,
5%,
8/15/38
......................................
6,000,000
6,295,463
Eskaton
Properties,
Inc.
Obligated
Group,
Revenue,
2012,
5.25%,
11/15/34
......
4,350,000
4,324,206
c
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/46
12,735,000
11,742,705
c
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/34
.........
375,000
366,146
c
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2019
A,
5%,
6/01/39
.........
950,000
909,001
c
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5%,
12/01/41
...................................................
1,245,000
1,221,793
c
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
45,755,000
44,762,780
c
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2018
A,
5.5%,
12/01/58
..................................................
6,250,000
6,254,477
Marin
General
Hospital
Obligated
Group,
Revenue,
2018
A,
4%,
8/01/45
........
1,500,000
1,268,732
Methodist
Hospital
of
Southern
California
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
1/01/48
............................................
5,000,000
5,042,197
c
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/39
.............
4,325,000
4,198,040
c
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
8,000,000
7,525,987
c
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/52
.............
2,635,000
2,453,861
Chino
Community
Facilities
District
,
City
of
Chino
Community
Facilities
District
No.
2003-3
Improvement
Area
No.
6
,
Special
Tax
,
2015
,
5
%
,
9/01/45
..............
1,665,000
1,671,061
c
City
&
County
of
San
Francisco
,
Community
Facilities
District
No.
2016-1
Improvement
Area
No.
2,
Special
Tax,
144A,
2022
A,
4%,
9/01/52
..............................................
5,270,000
4,276,031
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
A,
5%,
9/01/37
....................................................
385,000
383,968
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
A,
5%,
9/01/52
....................................................
2,000,000
1,837,596
Infrastructure
&
Revitalization
Financing
District
No.
1,
Tax
Allocation,
144A,
2022
B,
5%,
9/01/52
....................................................
1,000,000
905,511
City
of
Dixon
,
Community
Facilities
District
No.
2013-1
Parklane
,
Special
Tax
,
2019
,
5
%
,
9/01/49
......................................................
2,400,000
2,413,944
City
of
Dublin
,
Community
Facilities
District
No.
2015-1,
Special
Tax,
2019,
5%,
9/01/39
........
2,765,000
2,838,323
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/47
....................................................
500,000
502,918
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2,
Special
Tax,
2019,
5%,
9/01/44
....................................................
3,425,000
3,474,004
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Dublin,
(continued)
Community
Facilities
District
No.
2015-1
Improvement
Area
No.
2,
Special
Tax,
2019,
5%,
9/01/49
....................................................
$
4,100,000
$
4,130,169
City
of
Fairfield
,
Community
Facilities
District
No.
2016-1
,
Special
Tax
,
2019
A
,
5
%
,
9/01/44
.........................................................
1,000,000
1,000,362
City
of
Fillmore
,
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/40
............
1,500,000
1,509,357
Community
Facilities
District
No.
5,
Special
Tax,
2015,
5%,
9/01/45
............
2,630,000
2,634,635
City
of
Fremont
,
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
....
4,655,000
4,684,037
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/45
....
3,255,000
3,266,848
City
of
Fullerton
,
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/34
............
1,075,000
1,075,816
Community
Facilities
District
No.
2,
Special
Tax,
2014,
5%,
9/01/44
............
2,450,000
2,450,293
City
of
Irvine
,
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/39
........
1,000,000
1,005,643
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/44
........
1,500,000
1,504,968
Community
Facilities
District
No.
2013-3,
Special
Tax,
2014,
5%,
9/01/49
........
2,750,000
2,756,632
Community
Facilities
District
No.
2013-3,
Special
Tax,
2018,
5%,
9/01/43
........
5,000,000
5,075,894
City
of
La
Verne
,
Copacabana
Mobilehome
Park
,
Revenue
,
2014
,
Refunding
,
5
%
,
6/15/49
.........................................................
1,765,000
1,767,577
City
of
Long
Beach
,
Marina
System,
Revenue,
2015,
5%,
5/15/34
.............................
1,300,000
1,318,033
Marina
System,
Revenue,
2015,
5%,
5/15/40
.............................
3,500,000
3,512,280
Marina
System,
Revenue,
2015,
5%,
5/15/45
.............................
2,500,000
2,502,407
City
of
Los
Angeles
,
Department
of
Airports
,
Revenue
,
2019
D
,
4
%
,
5/15/44
.......
5,525,000
5,174,496
City
of
Murrieta
,
Community
Facilities
District
No.
2005-5
Golden
City
,
Special
Tax
,
2018
,
5
%
,
9/01/48
.................................................
3,740,000
3,761,312
City
of
Ontario
,
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/42
...........
1,000,000
1,012,244
Community
Facilities
District
No.
28,
Special
Tax,
2017,
5%,
9/01/47
...........
500,000
503,458
City
of
Oroville
,
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/49
.........................
4,500,000
2,661,020
Oroville
Hospital,
Revenue,
2019,
5.25%,
4/01/54
.........................
3,000,000
1,774,075
City
of
Palm
Desert
,
Community
Facilities
District
No.
2021-1
,
Special
Tax
,
2021
,
Refunding
,
4
%
,
9/01/41
.............................................
450,000
396,613
City
of
Rancho
Cordova
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2022,
5%,
9/01/51
........
1,200,000
1,172,504
Ranch
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1,
Special
Tax,
2022,
5.25%,
9/01/52
..........................................
2,000,000
1,951,256
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/40
....................................................
1,200,000
1,206,807
Sunridge
North
Douglas
Community
Facilities
District
No.
2005-1,
Special
Tax,
2015,
5%,
9/01/45
....................................................
1,250,000
1,254,080
City
of
Roseville
,
Creekview
Community
Facilities
District
No.
1,
Special
Tax,
2020,
5%,
9/01/40
....
630,000
638,238
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
1,
Special
Tax,
2020,
5%,
9/01/45
................................................
1,280,000
1,283,317
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2,
Special
Tax,
2023,
5%,
9/01/43
................................................
500,000
483,712
Creekview
Community
Facilities
District
No.
1
Improvement
Area
No.
2,
Special
Tax,
2023,
5.25%,
9/01/53
.............................................
1,850,000
1,790,227
c
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/32
............................................
1,265,000
1,316,806
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
City
of
Roseville,
(continued)
c
Fiddyment
Ranch
Community
Facilities
District
No.
5,
Special
Tax,
144A,
2017,
Refunding,
5%,
9/01/47
............................................
$
6,500,000
$
6,542,614
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5%,
9/01/36
........................................................
1,950,000
1,994,004
HP
Campus
Oaks
Community
Facilities
District
No.
1,
Special
Tax,
2016,
5.5%,
9/01/46
........................................................
6,415,000
6,545,234
Ranch
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2020,
4%,
9/01/40
........................................................
575,000
517,164
SVSP
Westpark-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/39
........................................................
440,000
450,045
SVSP
Westpark-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/44
........................................................
1,000,000
1,011,189
SVSP
Westpark-Federico
Community
Facilities
District
No.
1,
Special
Tax,
2021,
4%,
9/01/41
........................................................
400,000
354,287
Villages
at
Sierra
Vista
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
........................................................
3,870,000
3,878,547
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/29
....
500,000
504,493
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/34
....
1,100,000
1,108,396
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/39
....
1,885,000
1,887,687
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2014,
5%,
9/01/44
....
1,650,000
1,613,739
Westbrook
Community
Facilities
District
No.
1,
Special
Tax,
2019,
5%,
9/01/49
....
3,800,000
3,822,078
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/32
........................................................
1,120,000
1,143,531
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/33
........................................................
1,000,000
1,020,874
Westpark
Community
Facilities
District
No.
1,
Special
Tax,
2015,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,265,389
City
of
Sacramento
,
Greenbriar
Community
Facilities
District
No.
2018-03,
Special
Tax,
2021,
4%,
9/01/41
1,000,000
887,903
c
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/32
................................................
300,000
311,917
c
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/37
................................................
710,000
726,812
c
Natomas
Meadows
Community
Facilities
District
No.
2007-1,
Special
Tax,
144A,
2017,
5%,
9/01/47
................................................
1,900,000
1,911,772
North
Natomas
Community
Facilities
District
No.
4,
Special
Tax,
2013
E,
Refunding,
5.25%,
9/01/33
..................................................
2,725,000
2,741,853
City
of
San
Clemente
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/40
........
1,745,000
1,765,132
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
5%,
9/01/46
........
2,445,000
2,460,926
City
of
San
Diego
,
Tobacco
Settlement
Revenue
Funding
Corp.
,
Revenue
,
2018
C
,
Refunding
,
4
%
,
6/01/32
.............................................
450,000
444,422
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
14,000,000
10,248,812
City
of
Simi
Valley
,
Assessment
District
No.
98-1
,
1915
Act,
Special
Assessment
,
1999
,
7.3
%
,
9/02/24
....................................................
445,000
451,010
City
of
Stockton
,
Community
Facilities
District
No.
2018-2
Improvement
Area
No.
2
,
Special
Tax
,
2022
,
5.125
%
,
9/01/52
....................................
3,660,000
3,478,661
City
of
Vernon
,
Electric
System
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/01/36
........
1,525,000
1,600,979
City
of
Woodland
,
Community
Facilities
District
No.
2004-1
,
Special
Tax
,
2019
,
5
%
,
9/01/44
.........................................................
1,470,000
1,484,013
City
of
Yucaipa
,
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5%,
9/01/26
.
1,000,000
1,002,650
Community
Facilities
District
No.
98-1,
Special
Tax,
2011,
Refunding,
5.375%,
9/01/30
........................................................
1,800,000
1,806,356
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Clovis
Unified
School
District
,
GO,
2004
A,
NATL
Insured,
ETM,
Zero
Cpn.,
8/01/27
.......................
$
1,205,000
$
1,065,190
GO,
2004
A,
NATL
Insured,
Zero
Cpn.,
8/01/27
...........................
6,295,000
5,487,647
GO,
2004
A,
NATL
Insured,
Zero
Cpn.,
8/01/28
...........................
3,000,000
2,524,142
c
CMFA
Special
Finance
Agency
,
Solana
at
Grand
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/45
..................................................
13,980,000
11,071,687
c
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Junior
Lien
,
144A,
2022
A-2
,
4.5
%
,
8/01/51
.........................................................
39,885,000
29,385,369
c
CMFA
Special
Finance
Agency
I
,
Mix
at
CTR
City
(The)
,
Revenue
,
144A,
2021
A-T
,
5
%
,
4/01/41
.........................................................
7,690,000
7,265,261
c
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
22,280,000
16,882,342
Coachella
Valley
Unified
School
District
,
GO,
2012
D,
AGMC
Insured,
Zero
Cpn.,
8/01/42
..........................
8,500,000
3,491,998
GO,
2012
D,
AGMC
Insured,
Zero
Cpn.,
8/01/43
..........................
3,000,000
1,170,592
Corona-Norco
Unified
School
District
,
Community
Facilities
District
No.
05-1
,
Special
Tax
,
2016
,
Refunding
,
5
%
,
9/01/36
.....................................
500,000
511,001
Cotati-Rohnert
Park
Unified
School
District
,
GO
,
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
8/01/45
.........................................................
4,000,000
4,136,059
County
of
El
Dorado
,
Community
Facilities
District
No.
2014-1
,
Special
Tax
,
2018
,
5
%
,
9/01/48
.........................................................
2,850,000
2,862,262
County
of
Imperial
,
Community
Facilities
District
No.
1998-1
,
Special
Tax
,
1999
,
LOC
BNP
Paribas
SA
,
6.5
%
,
9/01/31
.......................................
4,295,000
4,337,427
County
of
Madera
,
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
1,
Special
Tax,
2022,
5.875%,
9/01/53
.................................................
1,100,000
1,054,396
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2,
Special
Tax,
2022,
5.75%,
9/01/53
..................................................
3,080,000
2,952,652
Community
Facilities
District
No.
2021-1
Improvement
Area
No.
2,
Special
Tax,
2022,
5.875%,
9/01/53
.................................................
1,100,000
1,054,395
County
of
San
Bernardino
,
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/40
1,000,000
1,006,238
Community
Facilities
District
No.
2006-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/45
1,000,000
1,003,640
c
CSCDA
Community
Improvement
Authority
,
Crescent
(The),
Revenue,
144A,
2022
B,
5.5%,
7/01/59
.....................
16,000,000
13,254,873
Park
Crossing
Apartments,
Revenue,
144A,
2021
B,
4%,
12/01/48
.............
10,000,000
7,091,732
Theo
Apartments,
Revenue,
144A,
2021
B,
4%,
5/01/57
.....................
10,000,000
6,832,217
Wood
Creek
Apartments,
Revenue,
Sub.
Lien,
144A,
2021
B,
4%,
12/01/59
......
31,800,000
19,892,945
Daly
City
Housing
Development
Finance
Agency
,
Franciscan
Park
LLC
,
Revenue
,
2007
B
,
Refunding
,
5.85
%
,
12/15/47
........................................
4,375,000
4,377,065
Del
Mar
Race
Track
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
..........
2,000,000
1,917,649
Duarte
Redevelopment
Agency
,
Tax
Allocation
,
1999
,
ETM,
Zero
Cpn.,
12/01/28
....
11,205,000
8,415,305
El
Rancho
Unified
School
District
,
GO
,
2004
,
NATL
Insured
,
Zero
Cpn.,
8/01/29
....
2,400,000
1,926,759
c
Elsinore
Valley
Municipal
Water
District
,
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4%,
9/01/51
..
1,245,000
1,000,130
Community
Facilities
District
No.
2020-1,
Special
Tax,
144A,
2021
A,
4.5%,
9/01/51
2,500,000
2,078,122
c
Fairfield
Community
Facilities
District
,
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1,
Special
Tax,
144A,
2020
A,
5%,
9/01/35
...............................
1,000,000
1,045,177
City
of
Fairfield
Community
Facilities
District
No.
2019-1
Improvement
Area
No.
1,
Special
Tax,
144A,
2020
A,
5%,
9/01/50
...............................
3,255,000
3,244,659
f,g
FHLMC,
Multi-family
ML
Pass-Through
Certificates
,
FRN,
2019-ML06,
XCA,
1.105%,
7/25/35
................................
133,895,494
8,795,595
c
144A,
FRN,
2020-ML07,
XCA,
2.132%,
1/25/37
...........................
120,620,844
16,892,949
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Folsom
Ranch
Financing
Authority
,
City
of
Folsom
Community
Facilities
District
No.
19,
Special
Tax,
2017,
5%,
9/01/47
$
3,280,000
$
3,281,480
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/33
530,000
553,052
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/38
850,000
864,429
City
of
Folsom
Community
Facilities
District
No.
20,
Special
Tax,
2018,
5%,
9/01/48
1,675,000
1,674,951
City
of
Folsom
Community
Facilities
District
No.
23,
Special
Tax,
2020,
4%,
9/01/40
1,245,000
1,113,128
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
75,000,000
31,056,990
Revenue,
2013
B-1,
Refunding,
3.95%,
1/15/53
...........................
25,000,000
22,394,187
Revenue,
2013
B-2,
Refunding,
3.5%,
1/15/53
............................
17,500,000
14,220,425
Revenue,
2015
A,
Refunding,
Zero
Cpn.,
1/15/33
..........................
19,000,000
13,084,871
Revenue,
Senior
Lien,
2021
A,
Refunding,
4%,
1/15/46
.....................
4,979,000
4,674,911
Hanford
Joint
Union
High
School
District
,
GO,
B,
AGMC
Insured,
Zero
Cpn.,
8/01/32
...............................
3,635,000
2,613,395
GO,
B,
AGMC
Insured,
Zero
Cpn.,
8/01/33
...............................
3,705,000
2,552,007
GO,
B,
AGMC
Insured,
Zero
Cpn.,
8/01/35
...............................
4,120,000
2,569,608
Hartnell
Community
College
District
,
GO
,
2009
D
,
Zero
Cpn.,
8/01/49
............
10,000,000
2,818,595
Imperial
Community
College
District
,
GO
,
2011
A
,
Pre-Refunded
,
AGMC
Insured
,
6.75
%
,
8/01/40
...................................................
3,500,000
3,726,090
Independent
Cities
Finance
Authority
,
Augusta
Communities
III
LLC,
Revenue,
2021,
Refunding,
4%,
11/15/56
........
8,160,000
5,812,637
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/44
.......
2,015,000
2,024,630
COACH
of
San
Diego
LLC,
Revenue,
2014
A,
Refunding,
5.25%,
5/15/49
.......
4,800,000
4,820,524
Millennium
Housing
LLC,
Revenue,
2021,
Refunding,
3%,
5/15/56
.............
4,000,000
2,674,745
Millennium
Housing
of
California,
Revenue,
2019,
Refunding,
5%,
5/15/48
.......
3,000,000
3,042,834
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/45
.............
5,000,000
5,026,909
San
Juan
Mobile
Estates,
Revenue,
2015,
Refunding,
5%,
8/15/50
.............
4,900,000
4,918,605
Indio
Community
Facilities
District
,
City
of
Indio
Community
Facilities
District
No.
2004-
3
Improvement
Area
No.
1
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
9/01/35
..........
1,135,000
1,155,052
Inland
Valley
Development
Agency
,
Tax
Allocation,
2014
A,
Refunding,
5.25%,
9/01/37
.........................
7,500,000
7,543,898
Tax
Allocation,
2014
A,
Refunding,
5%,
9/01/44
...........................
9,000,000
9,013,102
Irvine
Facilities
Financing
Authority
,
City
of
Irvine
Community
Facilities
District
No.
2013-3
,
Special
Tax
,
2023
A
,
BAM
Insured
,
4
%
,
9/01/58
.....................
16,500,000
15,465,796
Irvine
Unified
School
District
,
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
A,
5%,
9/01/42
........
690,000
698,448
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
B,
5%,
9/01/42
........
995,000
1,007,183
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
B,
5%,
9/01/51
........
2,485,000
2,488,941
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
C,
5%,
9/01/47
........
995,000
1,002,241
Community
Facilities
District
No.
09-1,
Special
Tax,
2017
D,
5%,
9/01/49
........
995,000
1,000,821
Community
Facilities
District
No.
09-1,
Special
Tax,
2018
A,
Refunding,
5%,
9/01/49
3,975,000
3,998,254
Jurupa
Public
Financing
Authority
,
Special
Tax,
2014
A,
Refunding,
5%,
9/01/42
.............................
2,220,000
2,238,293
Special
Tax,
2015
A,
Refunding,
5%,
9/01/43
.............................
4,000,000
4,118,527
Special
Tax,
Sub.
Lien,
2015
B,
Refunding,
5%,
9/01/40
.....................
4,000,000
4,024,951
Kaweah
Delta
Health
Care
District
Guild
,
Revenue
,
2015
B
,
5
%
,
6/01/40
..........
3,250,000
2,648,472
Lake
Tahoe
Unified
School
District
,
GO
,
2012
,
Zero
Cpn.,
8/01/40
...............
1,140,000
1,091,403
Lammersville
Joint
Unified
School
District
,
Community
Facilities
District
No.
2014-1,
Special
Tax,
2017,
5%,
9/01/47
........
1,250,000
1,258,645
Community
Facilities
District
No.
2014-1
Improvement
Area
No.
1,
Special
Tax,
2017,
5%,
9/01/42
....................................................
2,750,000
2,789,666
Las
Virgenes
Unified
School
District
,
GO
,
2011
C
,
Zero
Cpn.,
8/01/33
............
8,050,000
8,655,838
Lathrop
Financing
Authority
,
Special
Tax,
2013
A,
Refunding,
6%,
9/02/28
.............................
1,010,000
1,010,000
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Lathrop
Financing
Authority,
(continued)
Special
Tax,
2013
A,
Refunding,
6%,
9/02/29
.............................
$
1,070,000
$
1,070,000
Special
Tax,
2013
A,
Refunding,
6%,
9/02/30
.............................
1,075,000
1,075,000
Special
Tax,
2013
A,
Refunding,
5.5%,
9/02/35
............................
3,670,000
3,670,000
Lee
Lake
Public
Financing
Authority
,
Special
Tax,
Junior
Lien,
2013
B,
5.25%,
9/01/32
..........................
1,145,000
1,146,031
Special
Tax,
Junior
Lien,
2013
B,
5.375%,
9/01/35
.........................
790,000
790,715
Lemon
Grove
Community
Development
Agency
Successor
Agency
,
Tax
Allocation
,
2014
,
Refunding
,
AGMC
Insured
,
4
%
,
8/01/34
............................
1,000,000
1,030,332
Lemon
Grove
School
District
,
GO
,
2010
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/45
.....
6,500,000
5,903,113
Long
Beach
Bond
Finance
Authority
,
Revenue
,
2007
A
,
5
%
,
11/15/29
............
4,630,000
4,809,440
Los
Alamitos
Unified
School
District
,
COP,
2012,
Zero
Cpn.,
8/01/34
.......................................
1,500,000
1,625,928
COP,
2012,
Zero
Cpn.,
8/01/42
.......................................
4,500,000
4,711,618
Mendocino-Lake
Community
College
District
,
GO,
2011
B,
AGMC
Insured,
6.55%,
8/01/36
.............................
5,150,000
6,275,370
GO,
2011
B,
AGMC
Insured,
Zero
Cpn.,
8/01/40
...........................
7,500,000
8,159,221
Menifee
Union
School
District
,
Community
Facilities
District
No.
2011-1,
Special
Tax,
2018,
5%,
9/01/48
........
1,500,000
1,507,888
Community
Facilities
District
No.
2011-1
Improvement
Area
No.
3,
Special
Tax,
2018,
5%,
9/01/43
....................................................
1,000,000
1,011,630
Middle
Fork
Project
Finance
Authority
,
Revenue,
2020,
Refunding,
5%,
4/01/34
.................................
1,100,000
1,169,220
Revenue,
2020,
Refunding,
5%,
4/01/35
.................................
1,150,000
1,217,448
Moreno
Valley
Unified
School
District
,
Community
Facilities
District
No.
2015-3
,
Special
Tax
,
2019
,
4.125
%
,
9/01/48
..........................................
360,000
312,568
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
32,300,000
38,380,394
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue,
2017
A,
Refunding,
5%,
3/01/36
...............................
2,250,000
2,319,819
Revenue,
2017
A,
Refunding,
5%,
3/01/37
...............................
2,500,000
2,568,527
Revenue,
2017
A,
Refunding,
BAM
Insured,
4%,
3/01/42
....................
5,000,000
4,682,505
Oak
Park
Unified
School
District
,
GO
,
2011
A
,
7.1
%
,
8/01/38
...................
6,600,000
7,972,184
Orange
County
Community
Facilities
District
,
County
of
Orange
Community
Facilities
District
No.
2015-1,
Special
Tax,
2015
A,
5%,
8/15/34
........................................................
1,495,000
1,528,532
County
of
Orange
Community
Facilities
District
No.
2015-1,
Special
Tax,
2015
A,
5.25%,
8/15/45
..................................................
4,880,000
4,933,192
County
of
Orange
Community
Facilities
District
No.
2017-1,
Special
Tax,
2018
A,
5%,
8/15/47
........................................................
11,550,000
11,677,007
Palomar
Health
,
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/01/39
..................
12,190,000
12,270,481
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/38
.......................
5,000,000
4,465,453
Palomar
Health
Obligated
Group,
COP,
4%,
11/01/47
.......................
6,000,000
4,910,531
Paso
Robles
Joint
Unified
School
District
,
GO
,
2010
A
,
Zero
Cpn.,
9/01/45
........
15,000,000
5,146,786
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
4,504,284
Perris
Joint
Powers
Authority
,
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
A,
Refunding,
5.375%,
9/01/33
........................................................
1,925,000
1,926,951
Community
Facilities
District
No.
2001-1,
Special
Tax,
2014
E,
Refunding,
4.25%,
9/01/38
........................................................
4,140,000
3,939,006
Community
Facilities
District
No.
2002-1,
Special
Tax,
2013
B,
Refunding,
5.25%,
9/01/33
........................................................
3,745,000
3,748,574
Community
Facilities
District
No.
2014-1,
Special
Tax,
2018
A,
4%,
9/01/48
......
1,530,000
1,307,265
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Redondo
Beach
Unified
School
District
,
GO
,
2011
E
,
6.2
%
,
8/01/31
..............
$
2,750,000
$
3,299,372
Richland
School
District
,
GO
,
2009
C
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
.........
22,000,000
5,764,524
Rio
Hondo
Community
College
District
,
GO
,
2010
C
,
Zero
Cpn.,
8/01/42
..........
13,000,000
15,129,962
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
1,682,307
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/38
............................................
1,000,000
1,008,994
City
of
Rio
Vista
Community
Facilities
District
No.
2018-1,
Special
Tax,
2018,
Refunding,
5%,
9/01/48
............................................
1,190,000
1,176,632
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
No
2003-1
Improvement
Area
No.
2,
Special
Tax,
2022,
5.75%,
9/01/52
..................................................
4,250,000
4,128,883
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/34
.....
860,000
707,979
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
2.625%,
9/01/35
.....
925,000
741,295
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/46
........
1,500,000
1,245,572
Riverbank
Unified
School
District
,
GO,
2008
B,
AGMC
Insured,
Zero
Cpn.,
8/01/38
...........................
6,690,000
3,414,402
GO,
2008
B,
AGMC
Insured,
Zero
Cpn.,
8/01/43
...........................
8,750,000
3,367,163
Riverside
County
Community
Facilities
Districts
,
County
of
Riverside
Community
Facilities
District
No.
03-1
,
Special
Tax
,
2014
,
Refunding
,
5
%
,
9/01/30
..........
1,500,000
1,516,313
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien
,
2013
B
,
Zero
Cpn.,
6/01/43
.....................................................
7,500,000
2,767,315
Riverside
Public
Financing
Authority
,
Loc
Measure
A
Sales
Tax
,
COP
,
2013
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/33
.................................
4,280,000
4,289,765
Romoland
School
District
,
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/35
4,690,000
4,758,524
Community
Facilities
District
No.
2004-1,
Special
Tax,
2015,
Refunding,
5%,
9/01/38
3,000,000
3,021,125
Community
Facilities
District
No.
2004-1
Improvement
Area
No.
3,
Special
Tax,
2013,
5%,
9/01/36
....................................................
1,500,000
1,500,636
Rowland
Unified
School
District
,
GO,
2009
B,
Zero
Cpn.,
8/01/34
.......................................
5,000,000
3,178,708
GO,
2009
B,
Zero
Cpn.,
8/01/39
.......................................
15,000,000
7,188,839
GO,
2009
B,
Zero
Cpn.,
8/01/42
.......................................
10,750,000
4,473,818
San
Bernardino
Community
College
District
,
GO,
2008
D,
Pre-Refunded,
5%,
8/01/48
................................
3,760,000
3,894,960
GO,
2009
B,
Zero
Cpn.,
8/01/44
.......................................
12,495,000
4,555,697
San
Diego
Unified
School
District
,
GO,
2010
C,
Zero
Cpn.,
7/01/47
.......................................
26,025,000
21,973,785
GO,
2012
E,
Zero
Cpn.,
7/01/42
.......................................
6,940,000
4,862,031
GO,
2012
E,
Zero
Cpn.,
7/01/47
.......................................
13,500,000
9,427,725
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/37
...............................
5,535,000
5,806,420
Revenue,
2019
A,
Refunding,
5%,
5/01/44
...............................
10,000,000
10,275,378
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
10,000,000
10,213,180
Revenue,
Second
Series,
2019
E,
5%,
5/01/50
............................
34,520,000
35,230,408
San
Francisco
City
&
County
Redevelopment
Agency
Successor
Agency
,
c
Tax
Allocation,
144A,
2016
D,
Zero
Cpn.,
8/01/26
..........................
3,000,000
2,629,608
c
Tax
Allocation,
144A,
2016
D,
Zero
Cpn.,
8/01/31
..........................
6,000,000
4,121,087
c
Tax
Allocation,
144A,
2016
D,
Zero
Cpn.,
8/01/43
..........................
16,500,000
6,241,942
Community
Facilities
District
No.
6,
Special
Tax,
2013
C,
Zero
Cpn.,
8/01/43
......
10,000,000
3,131,010
Mission
Bay
South
Redevelopment
Area
Tax
Increment
Financing
District,
Tax
Allocation,
2014
A,
5%,
8/01/43
......................................
2,500,000
2,538,355
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
1/15/26
...............
$
19,475,000
$
17,734,640
Revenue,
1997
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
1/15/32
...............
50,225,000
35,597,823
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/28
...........................
19,150,000
16,766,108
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/44
...................
11,925,000
12,065,822
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/49
...................
98,070,000
99,119,467
Santa
Barbara
Unified
School
District
,
GO
,
2011
A
,
7
%
,
8/01/36
................
8,000,000
10,662,031
Santa
Margarita
Water
District
,
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
Refunding,
5.625%,
9/01/36
........................................................
2,875,000
2,875,000
Community
Facilities
District
No.
2013-1,
Special
Tax,
2013,
Refunding,
5.625%,
9/01/43
........................................................
9,600,000
9,600,000
Saugus/Hart
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2016
,
Refunding
,
5
%
,
9/01/41
........................
2,485,000
2,497,193
Saugus-Castaic
School
Facilities
Financing
Authority
,
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
Refunding,
5.875%,
9/01/33
........................................................
1,365,000
1,365,000
Community
Facilities
District
No.
2006-1C,
Special
Tax,
2013,
Refunding,
6%,
9/01/43
........................................................
3,355,000
3,355,000
Siskiyou
Union
High
School
District
,
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
15,015,000
3,951,112
St.
Helena
Unified
School
District
,
GO
,
2011
B
,
Zero
Cpn.,
6/01/36
..............
10,000,000
11,384,803
Sulphur
Springs
Union
School
District
,
Community
Facilities
District
No.
2006-1
,
Special
Tax
,
2018
,
5
%
,
9/01/43
.......................................
2,820,000
2,847,837
Susanville
School
District
,
GO
,
2010
,
AGMC
Insured
,
Zero
Cpn.,
8/01/49
.........
17,505,000
4,619,830
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
3,592,129
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
B,
Zero
Cpn.,
6/01/46
........................................................
10,000,000
1,924,518
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
C,
Zero
Cpn.,
6/01/46
........................................................
25,000,000
4,454,913
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-1,
2,
Refunding,
5%,
6/01/48
............................................
9,485,000
9,644,879
Torrance
Unified
School
District
,
GO
,
2009
B-1
,
Zero
Cpn.,
8/01/34
..............
5,640,000
3,296,284
Tracy
Community
Facilities
District
,
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/33
........................................................
1,610,000
1,672,650
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/38
........................................................
2,385,000
2,417,004
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/43
........................................................
5,500,000
5,510,691
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2018,
5%,
9/01/48
........................................................
6,490,000
6,372,039
City
of
Tracy
Community
Facilities
District
No.
2016-01,
Special
Tax,
2020,
4%,
9/01/45
........................................................
1,280,000
1,121,974
Community
Facilities
District
No.
2016-01
Improvement
Area
No.
1,
Special
Tax,
2019,
5%,
9/01/49
................................................
1,960,000
1,927,281
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation
,
2020
B
,
5
%
,
10/01/38
..................
550,000
556,890
Truckee-Donner
Public
Utility
District
,
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.75%,
9/01/29
........
2,945,000
2,876,638
Community
Facilities
District
No.
04-1,
Special
Tax,
2004,
5.8%,
9/01/35
........
4,475,000
4,245,387
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.2%,
9/01/25
........
1,955,000
1,916,433
Community
Facilities
District
No.
04-1,
Special
Tax,
2005,
5.25%,
9/01/30
........
4,990,000
4,718,958
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
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
$
1,021,873
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/40
........................................................
750,000
754,537
City
of
Tustin
Community
Facilities
District
No.
14-1,
Special
Tax,
2015
A,
5%,
9/01/45
........................................................
1,000,000
1,002,888
Val
Verde
Unified
School
District
,
Special
Tax,
2015,
Refunding,
5%,
9/01/29
...............................
3,200,000
3,260,963
Special
Tax,
2015,
Refunding,
5%,
9/01/37
...............................
2,000,000
2,017,478
Vallejo
Redevelopment
Agency
,
Tax
Allocation
,
2001
A
,
7
%
,
10/01/31
............
2,135,000
2,139,834
Victor
Valley
Community
College
District
,
GO
,
2008
C
,
Zero
Cpn.,
6/01/49
.........
11,940,000
3,380,767
Washington
Township
Health
Care
District
,
Revenue,
2017
B,
Refunding,
4%,
7/01/35
...............................
2,000,000
1,858,689
Revenue,
2017
B,
Refunding,
4%,
7/01/36
...............................
1,900,000
1,724,753
Westside
Union
School
District
,
Community
Facilities
District
No.
2018-1
,
Special
Tax
,
2021
,
4
%
,
9/01/46
.................................................
360,000
305,765
2,146,215,091
Florida
0.6%
c,d
Florida
Development
Finance
Corp.
,
Brightline
Florida
Holdings
LLC,
Revenue,
144A,
2023
A,
Refunding,
Mandatory
Put,
7.5%,
8/15/24
...................................................
7,250,000
7,138,247
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2022
A,
Refunding,
Mandatory
Put,
7.25%,
10/03/23
.................................................
7,250,000
7,398,745
14,536,992
Minnesota
0.1%
c
City
of
Fridley
,
Roers
Fridley
Apartments
Owner
II
LLC
,
Revenue
,
144A,
2023
B-2
,
9
%
,
6/01/41
.........................................................
3,250,000
3,179,893
Texas
0.4%
c
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Junior
Lien
,
144A,
2022
B
,
6.25
%
,
12/01/54
..............................
10,000,000
8,948,274
Virgin
Islands
0.2%
Matching
Fund
Special
Purpose
Securitization
Corp.
,
United
States
Virgin
Islands
Federal
Excise
Tax
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
10/01/39
...............
5,500,000
5,469,762
Virginia
0.2%
c
Virginia
Small
Business
Financing
Authority
,
P3
VB
Holdings
LLC
,
Revenue,
Senior
Lien
,
144A,
2023
A
,
8.5
%
,
12/01/52
....................................
5,250,000
4,938,409
Wisconsin
0.7%
c
Public
Finance
Authority
,
FAH
Tree
House
LLC,
Revenue,
144A,
2023
B,
6.625%,
2/01/46
..............
7,000,000
6,360,627
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
6,300,000
6,303,213
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022,
Zero
Cpn.,
12/01/45
...
6,000,000
3,579,704
16,243,544
U.S.
Territories
7.6%
Guam
1.1%
Guam
Government
Waterworks
Authority
,
Revenue,
2014
A,
Refunding,
5%,
7/01/35
...............................
1,000,000
1,004,874
Revenue,
2016,
5%,
7/01/36
.........................................
3,550,000
3,597,746
Revenue,
2017,
Refunding,
5%,
7/01/36
.................................
1,700,000
1,729,740
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Guam
(continued)
Guam
Government
Waterworks
Authority,
(continued)
Revenue,
2017,
Refunding,
5%,
7/01/40
.................................
$
9,885,000
$
9,936,309
Guam
Power
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/38
..............
4,750,000
4,806,471
Territory
of
Guam
,
Revenue,
2021
F,
Refunding,
4%,
1/01/36
...............................
250,000
234,794
Revenue,
2021
F,
Refunding,
4%,
1/01/42
...............................
3,125,000
2,691,885
Hotel
Occupancy
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/01/35
.............
3,000,000
3,070,718
27,072,537
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
3,335,000
3,208,589
Puerto
Rico
6.4%
Commonwealth
of
Puerto
Rico
,
g
GO,
FRN,
Zero
Cpn.,
11/01/43
........................................
3,474,337
1,793,627
GO,
2022
A-1,
5.375%,
7/01/25
.......................................
817,244
832,791
GO,
2022
A-1,
5.625%,
7/01/27
.......................................
809,842
844,628
GO,
2022
A-1,
5.625%,
7/01/29
.......................................
796,704
842,945
GO,
2022
A-1,
5.75%,
7/01/31
........................................
773,832
836,965
GO,
2022
A-1,
4%,
7/01/33
..........................................
733,796
687,113
GO,
2022
A-1,
4%,
7/01/35
..........................................
659,584
606,196
GO,
2022
A-1,
4%,
7/01/37
..........................................
566,098
509,321
GO,
2022
A-1,
4%,
7/01/41
..........................................
769,676
665,583
GO,
2022
A-1,
4%,
7/01/46
..........................................
16,300,453
13,569,731
GO,
2022
A-1,
Zero
Cpn.,
7/01/24
.....................................
118,949
114,629
GO,
2022
A-1,
Zero
Cpn.,
7/01/33
.....................................
944,324
575,382
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
18,745,030
15,324,062
HTA
CL
6
Trust
,
Revenue
,
L-2028
,
5.25
%
,
7/01/38
..........................
685,869
686,095
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
3,300,000
3,289,919
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
330,000
332,570
Puerto
Rico
Electric
Power
Authority
,
a,e
Revenue,
6%,
7/01/41
..............................................
6,789,003
6,789,003
a,e
Revenue,
7.125%,
7/01/59
...........................................
32,971,162
32,971,162
b
Revenue,
1,
10%,
1/01/21
...........................................
1,768,493
481,915
b
Revenue,
2012
A,
5%,
7/01/29
........................................
10,000,000
2,750,000
b
Revenue,
2013
A,
7%,
7/01/33
........................................
25,000,000
6,875,000
b
Revenue,
2013
A,
6.75%,
7/01/36
.....................................
11,735,000
3,227,125
b
Revenue,
2013
A,
7%,
7/01/43
........................................
5,000,000
1,375,000
b
Revenue,
2016
A-4,
10%,
7/01/19
.....................................
1,601,766
436,481
b
Revenue,
2016
B-4,
10%,
7/01/19
.....................................
1,601,765
436,481
b
Revenue,
E-2,
10%,
7/01/21
.........................................
1,768,493
481,914
b
Revenue,
E-3,
10%,
1/01/22
.........................................
600,000
163,500
b
Revenue,
E-4,
10%,
7/01/22
.........................................
600,000
163,500
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,800,000
1,769,470
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
157,528
155,362
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
102,372
65,902
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
175,116
110,980
b
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
4,000,000
2,800,000
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
100,000
97,502
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
10,500,000
9,843,536
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
See
Abbrev
iations
on
page
40
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.,
(continued)
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
$
8,695,000
$
8,437,676
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/46
.............................
20,000,000
5,570,564
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/51
.............................
47,945,000
9,909,632
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
4,419,000
4,191,622
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
7,044,000
6,689,022
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
12,300,000
11,529,898
158,833,804
Total
U.S.
Territories
....................................................................
189,114,930
Total
Municipal
Bonds
(Cost
$2,518,811,311)
....................................
2,388,646,895
Shares
Escrows
and
Litigation
Trusts
0.1%
a,h
Puerto
Rico
Electric
Power
Authority
.....................................
3,031,496
2,425,197
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
2,425,197
Total
Long
Term
Investments
(Cost
$2,594,395,083)
.............................
2,461,960,149
a
a
a
a
a
Short
Term
Investments
0.8%
Principal
Amount
Municipal
Bonds
0.8%
California
0.8%
i
California
Health
Facilities
Financing
Authority
,
Adventist
Health
System/West
Obligated
Group
,
Revenue
,
2009
B
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.45
%
,
9/01/38
.........................................................
1,000,000
1,000,000
i
Eastern
Municipal
Water
District
,
Revenue
,
2018
A
,
Refunding
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.72
%
,
7/01/46
................................
5,000,000
5,000,000
i
Irvine
Ranch
Water
District
,
Water
Service
Corp.
,
Special
Assessment
,
2009
B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.17
%
,
10/01/41
..................
7,285,000
7,285,000
i
University
of
California
,
Revenue,
2013
AL-1,
Daily
VRDN
and
Put,
2.92%,
5/15/48
..................
1,100,000
1,100,000
Revenue,
2013
AL-3,
Refunding,
Daily
VRDN
and
Put,
2.9%,
5/15/48
...........
1,700,000
1,700,000
Revenue,
2013
AL-4,
Refunding,
Daily
VRDN
and
Put,
2.85%,
5/15/48
..........
2,700,000
2,700,000
18,785,000
Total
Municipal
Bonds
(Cost
$18,785,000)
......................................
18,785,000
Total
Short
Term
Investments
(Cost
$18,785,000
)
................................
18,785,000
a
Total
Investments
(Cost
$2,613,180,083)
100.5%
................................
$2,480,745,149
Other
Assets,
less
Liabilities
(0.5)%
...........................................
(12,325,523)
Net
Assets
100.0%
...........................................................
$2,468,419,626
Franklin
Municipal
Securities
Trust
Schedule
of
Investments
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
b
See
Note
7
regarding
credit
risk
and
defaulted
securities.
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2023,
the
aggregate
value
of
these
securities
was
$699,753,312,
representing
28.3%
of
net
assets.
d
The
maturity
date
shown
represents
the
mandatory
put
date.
e
Security
purchased
on
a
when-issued
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
Non-income
producing.
i
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
Statement
of
Assets
and
Liabilities
August
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,613,180,083
Value
-
Unaffiliated
issuers
..................................................................
$2,480,745,149
Cash
....................................................................................
503,415
Receivables:
Investment
securities
sold
...................................................................
948,840
Capital
shares
sold
........................................................................
3,723,944
Interest
.................................................................................
31,546,145
Total
assets
..........................................................................
2,517,467,493
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
40,039,127
Capital
shares
redeemed
...................................................................
5,982,463
Management
fees
.........................................................................
971,232
Distribution
fees
..........................................................................
257,403
Transfer
agent
fees
........................................................................
322,593
Trustees'
fees
and
expenses
.................................................................
2,088
Distributions
to
shareholders
.................................................................
1,350,857
Accrued
expenses
and
other
liabilities
...........................................................
122,104
Total
liabilities
.........................................................................
49,047,867
Net
assets,
at
value
.................................................................
$2,468,419,626
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$2,755,615,402
Total
distributable
earnings
(losses)
.............................................................
(287,195,776)
Net
assets,
at
value
.................................................................
$2,468,419,626
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
August
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Franklin
California
High
Yield
Municipal
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$611,371,820
Shares
outstanding
........................................................................
64,107,947
Net
asset
value
per
share
a
..................................................................
$9.54
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$9.91
Class
A1:
Net
assets,
at
value
.......................................................................
$814,098,160
Shares
outstanding
........................................................................
85,531,642
Net
asset
value
per
share
a
..................................................................
$9.52
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$9.89
Class
C:
Net
assets,
at
value
.......................................................................
$103,608,597
Shares
outstanding
........................................................................
10,801,635
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$9.59
Class
R6:
Net
assets,
at
value
.......................................................................
$48,132,983
Shares
outstanding
........................................................................
5,040,146
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.55
Advisor
Class:
Net
assets,
at
value
.......................................................................
$891,208,066
Shares
outstanding
........................................................................
93,423,929
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.54
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Municipal
Securities
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
August
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Franklin
California
High
Yield
Municipal
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$61,770,290
Expenses:
Management
fees
(Note
3
a
)
...................................................................
5,872,910
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
763,919
    Class
A1
...............................................................................
426,925
    Class
C
................................................................................
366,020
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
202,733
    Class
A1
...............................................................................
283,294
    Class
C
................................................................................
37,371
    Class
R6
...............................................................................
7,602
    Advisor
Class
............................................................................
308,362
Custodian
fees
(Note
4
)
......................................................................
7,712
Reports
to
shareholders
fees
..................................................................
38,754
Registration
and
filing
fees
....................................................................
28,568
Professional
fees
...........................................................................
275,763
Trustees'
fees
and
expenses
..................................................................
14,808
Other
....................................................................................
105,664
Total
expenses
.........................................................................
8,740,405
Expense
reductions
(Note
4
)
...............................................................
(7,626)
Expenses
waived/paid
by
affiliates
(Note
3f)
....................................................
(514)
Net
expenses
.........................................................................
8,732,265
Net
investment
income
................................................................
53,038,025
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(12,237,038)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(27,457,765)
Net
realized
and
unrealized
gain
(loss)
............................................................
(39,694,803)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$13,343,222
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.
32
Franklin
California
High
Yield
Municipal
Fund
Six
Months
Ended
August
31,
2023
(unaudited)
Year
Ended
February
28,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$53,038,025
$103,813,257
Net
realized
gain
(loss)
.................................................
(12,237,038)
(33,696,950)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(27,457,765)
(361,371,540)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
13,343,222
(291,255,233)
Distributions
to
shareholders:
Class
A
.............................................................
(12,364,249)
(21,014,848)
Class
A1
............................................................
(17,944,628)
(33,923,707)
Class
C
.............................................................
(2,036,209)
(4,093,810)
Class
R6
............................................................
(1,022,618)
(1,868,805)
Advisor
Class
........................................................
(19,953,178)
(35,859,190)
Total
distributions
to
shareholders
..........................................
(53,320,882)
(96,760,360)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
25,707,501
(33,313,837)
Class
A1
............................................................
(35,316,931)
(168,375,188)
Class
C
.............................................................
(12,962,183)
(41,717,997)
Class
R6
............................................................
4,207,669
(8,512,643)
Advisor
Class
........................................................
(16,312,612)
(124,058,309)
Total
capital
share
transactions
............................................
(34,676,556)
(375,977,974)
Net
increase
(decrease)
in
net
assets
...................................
(74,654,216)
(763,993,567)
Net
assets:
Beginning
of
period
.....................................................
2,543,073,842
3,307,067,409
End
of
period
..........................................................
$2,468,419,626
$2,543,073,842
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
33
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Franklin
California
High
Yield
Municipal
Fund
1.
Organization
and
Significant
Accounting
Policies
Franklin
Municipal
Securities
Trust
(Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
,
consisting
of
one
fund,
Franklin
California
High
Yield
Municipal
Fund
(Fund)
.
The
Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
s
Codification
Topic
946,
Financial
Services
–
Inve
stment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946
.
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class
.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
t
he Fund’s
significant
accounting
policies
. 
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
Basis
The
Fund
purchases
securities
on
a
when-issued 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, it
may
sell
the
securities
before
the
settlement
date.
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
c.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
federal
and
state
income
taxes
on
the
Statement
of
Operations
represents
taxes
on
taxable
income
earned
by
the
Fund
not
distributed
to
shareholders,
and
therefore
are
paid
on
their
behalf
by
the
Fund.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2023, 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)
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
August
31,
2023,
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
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
August
31,
2023
Year
Ended
February
28,
2023
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
8,010,754
$77,868,780
25,398,675
$253,367,020
Shares
issued
in
reinvestment
of
distributions
..........
1,124,623
10,924,768
1,851,320
18,342,668
Shares
redeemed
...............................
(6,499,912)
(63,086,047)
(30,605,430)
(305,023,525)
Net
increase
(decrease)
..........................
2,635,465
$25,707,501
(3,355,435)
$(33,313,837)
Class
A1
Shares:
Shares
sold
...................................
1,302,773
$12,673,968
6,869,264
$68,433,576
Shares
issued
in
reinvestment
of
distributions
..........
1,549,842
15,027,422
2,888,030
28,598,592
Shares
redeemed
...............................
(6,492,131)
(63,018,321)
(26,662,324)
(265,407,356)
Net
increase
(decrease)
..........................
(3,639,516)
$(35,316,931)
(16,905,030)
$(168,375,188)
Class
C
Shares:
Shares
sold
...................................
438,281
$4,282,352
1,325,762
$13,286,007
Shares
issued
in
reinvestment
of
distributions
..........
195,976
1,915,880
384,830
3,841,247
Shares
redeemed
a
..............................
(1,956,262)
(19,160,415)
(5,850,032)
(58,845,251)
Net
increase
(decrease)
..........................
(1,322,005)
$(12,962,183)
(4,139,440)
$(41,717,997)
Class
R6
Shares:
Shares
sold
...................................
1,059,573
$10,334,466
2,259,339
$22,622,077
Shares
issued
in
reinvestment
of
distributions
..........
91,847
893,099
148,373
1,472,106
Shares
redeemed
...............................
(720,835)
(7,019,896)
(3,270,998)
(32,606,826)
Net
increase
(decrease)
..........................
430,585
$4,207,669
(863,286)
$(8,512,643)
Advisor
Class
Shares:
Shares
sold
...................................
15,772,417
$153,858,559
79,590,057
$793,204,876
Shares
issued
in
reinvestment
of
distributions
..........
1,694,235
16,463,322
2,904,964
28,821,108
Shares
redeemed
...............................
(19,203,835)
(186,634,493)
(95,009,029)
(946,084,293)
Net
increase
(decrease)
..........................
(1,737,183)
$(16,312,612)
(12,514,008)
$(124,058,309)
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)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
Fund
as
follows:
For
the
period
ended
August
31,
2023,
the
annualized
gross
effective
investment
management
fee
rate
was 0.461%
of
the
Fund’s
average daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund’s
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
and
A1
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
 The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Distributors
has
agreed
to
limit
the
current
rate
to
0.10%
per
year
for
Class
A1.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund’s
shares
for
the
period:
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
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
3.
Transactions
with
Affiliates
(continued)
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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
August
31,
2023,
the
Fund
paid
transfer
agent
fees
of
$839,362,
of
which
$272,559
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Fund
do
not
exceed
0.65%,
based
on
the
average
net
assets
of
each
class
until
June
30,
2024.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund’s
fiscal
year
end.
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
June
30,
2024.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
August
31,
2023,
these
purchase
and
sale
transactions
aggregated
$61,725,000
and
$39,950,000,
respectively.
4.
Expense
Offset
Arrangement
The Fund has
entered
into
an
arrangement
with
its
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
August
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
28,
2023,
the
capital
loss
carryforwards
were
as
follows:
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$7,981
CDSC
retained
..............................................................................
$35,497
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$100,421,774
Long
term
................................................................................
42,389,828
Total
capital
loss
carryforwards
...............................................................
$142,811,602
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
At
August
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
wash
sales
and
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
August
31,
2023,
aggregated
$166,727,479 
and
$141,943,418,
respectively. 
7.
Credit Risk
and
Defaulted
Securities
At
August
31,
2023,
the
Fund
had
35.2%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities
rated
below
investment
grade
as
determined
by
Nationally
Recognized
Statistical
Credit
Ratings
Organizations
and/or
internally,
by
investment
management and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
August
31,
2023,
the
aggregate
value
of
these
securities
was
$45,479,868,
representing
1.8%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
8.
Concentration
of
Risk
The
Fund
invests
a
large
percentage
of
its total
assets
in
obligations
of
issuers
within
its
California
and
U.S.
territories.
Such
concentration
may
subject
the
Fund
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
California
and
U.S.
territories. Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
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
2,
2024.
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
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
Cost
of
investments
..........................................................................
$2,620,462,672
Unrealized
appreciation
........................................................................
$84,954,914
Unrealized
depreciation
........................................................................
(224,672,437)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(139,717,523)
5.
Income
Taxes
(continued)
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the Statement
of
Operations.
During
the
period
ended
August
31,
2023,
the Fund
did
not
use
the
Global
Credit
Facility.
10.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
August
31,
2023,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
:
Commercial
Services
&
Supplies
...........
$
—
$
—
$
20,350,000
$
20,350,000
Diversified
Consumer
Services
............
—
40,973,773
—
40,973,773
Electric
Utilities
........................
—
9,564,284
—
9,564,284
Municipal
Bonds
:
California
.............................
—
2,146,215,091
—
2,146,215,091
Florida
...............................
—
14,536,992
—
14,536,992
Minnesota
............................
—
3,179,893
—
3,179,893
Texas
...............................
—
8,948,274
—
8,948,274
Virgin
Islands
..........................
—
5,469,762
—
5,469,762
Virginia
..............................
—
4,938,409
—
4,938,409
Wisconsin
............................
—
16,243,544
—
16,243,544
U.S.
Territories
..........................
Guam
...............................
—
27,072,537
—
27,072,537
Pacific
Islands
.........................
—
3,208,589
—
3,208,589
Puerto
Rico
...........................
—
119,073,639
39,760,165
158,833,804
Escrows
and
Litigation
Trusts
...............
—
—
2,425,197
2,425,197
Short
Term
Investments
...................
—
18,785,000
—
18,785,000
Total
Investments
in
Securities
...........
$—
$2,418,209,787
$62,535,362
$2,480,745,149
9.
Credit
Facility
(continued)
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
California
High
Yield
Municipal
Fund
(continued)
A
reconciliation
of
assets
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
.
At
August
31,
2023
,
the
reconciliation
is
as
follows:
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Balance
at
Beginning
of
Period
Purchases
a
Sales
Transfer
Into
Level
3
b
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
California
High
Yield
Municipal
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
:
United
States
.
$
3,135,000
$
4,030,000
$
—
$
13,262,789
$
—
$
—
$
—
$
(77,789)
$
20,350,000
$
(77,789)
Municipal
Bonds
:
United
States
.
—
38,139,247
—
—
—
—
—
1,620,918
39,760,165
1,620,918
Escrows
and
Litigation
Trusts
—
—
c
—
—
—
—
—
2,425,197
2,425,197
2,425,197
Total
Investments
in
Securities
.......
$3,135,000
$42,169,247
$—
$13,262,789
$—
$—
$—
$3,968,326
$62,535,362
$3,968,326
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Tr
ansferred
into
level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
as
a
result
of
the
unreliability
of
the
foreign
exchange
rate
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
c
Includes
financial
instruments
determined
to
have
no
value.
Selected
Portfolio
1915
Act
Improvement
Bond
Act
of
1915
AGMC
Assured
Guaranty
Municipal
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
10.
Fair
Value
Measurements
(continued)
Franklin
Municipal
Securities
Trust
Shareholder
Information
41
franklintempleton.com
Semiannual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
MUNICIPAL
SECURITIES
TRUST
Franklin
California
High
Yield
Municipal
Fund
At
an
in-person
meeting
held
on
April
18,
2023
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Municipal
Securities
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement
and
investments
to
promote
alternative
investing.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Franklin
Municipal
Securities
Trust
Shareholder
Information
42
franklintempleton.com
Semiannual
Report
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2022.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
California
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
and
in
the
first
quintile
(best)
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
three-,
five-,
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-related
attributes
of
the
Fund
(e.g.,
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
and
Class
M
shares
for
the
other
funds
in
the
Fund’s
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
the
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
10
other
California
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
slightly
above
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2022,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
Franklin
Municipal
Securities
Trust
Shareholder
Information
43
franklintempleton.com
Semiannual
Report
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that,
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
Franklin
Municipal
Securities
Trust
Shareholder
Information
44
franklintempleton.com
Semiannual
Report
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
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
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
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
10/23
©
2023
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
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
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
(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  October 30, 2023
 
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  October 30, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  October 30, 2023