<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
STRATEGIC MORTGAGE PORTFOLIO SEPTEMBER 30, 2000 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 571
<NAME> FRANKLIN STRATEGIC MORTGAGE PORTFOLIO
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> SEP-30-2000
<INVESTMENTS-AT-COST> 65,889,610
<INVESTMENTS-AT-VALUE> 65,946,721
<RECEIVABLES> 876,959
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 66,823,680
<PAYABLE-FOR-SECURITIES> 16,911,150
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 340,392
<TOTAL-LIABILITIES> 17,251,542
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 49,834,597
<SHARES-COMMON-STOCK> 5,075,775
<SHARES-COMMON-PRIOR> 3,376,196
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (16,410)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (303,160)
<ACCUM-APPREC-OR-DEPREC> 57,111
<NET-ASSETS> 49,572,138
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,740,732
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 2,740,732
<REALIZED-GAINS-CURRENT> (82,910)
<APPREC-INCREASE-CURRENT> 521,897
<NET-CHANGE-FROM-OPS> 3,179,719
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,806,043)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,880,866
<NUMBER-OF-SHARES-REDEEMED> (1,359,052)
<SHARES-REINVESTED> 177,765
<NET-CHANGE-IN-ASSETS> 16,695,815
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (171,349)
<GROSS-ADVISORY-FEES> (159,349)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (227,387)
<AVERAGE-NET-ASSETS> 39,899,204
<PER-SHARE-NAV-BEGIN> 9.740
<PER-SHARE-NII> .663
<PER-SHARE-GAIN-APPREC> .043
<PER-SHARE-DIVIDEND> (.676)<F1>
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.770
<EXPENSE-RATIO> .000<F2>
<FN>
<F1>INCLUDES DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
IN THE AMOUNT OF $.013.
<F2>EXPENSE RATIO EXCLUDING WAIVER .57%.
</FN>
</TABLE>
