<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FRANKLIN
STRATEGIC MORTGAGE PORTFOLIO MARCH 31, 2000 SEMI-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> 6-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> MAR-31-2000
<INVESTMENTS-AT-COST> 47,274,613
<INVESTMENTS-AT-VALUE> 46,354,027
<RECEIVABLES> 4,148,265
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 50,502,292
<PAYABLE-FOR-SECURITIES> 10,956,648
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 186,444
<TOTAL-LIABILITIES> 11,143,092
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40,601,910
<SHARES-COMMON-STOCK> 4,115,148
<SHARES-COMMON-PRIOR> 3,376,195
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (6,076)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (316,048)
<ACCUM-APPREC-OR-DEPREC> (920,586)
<NET-ASSETS> 39,359,200
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,246,433
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 1,246,433
<REALIZED-GAINS-CURRENT> (144,699)
<APPREC-INCREASE-CURRENT> (455,800)
<NET-CHANGE-FROM-OPS> 645,934
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,252,509)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,427,533
<NUMBER-OF-SHARES-REDEEMED> (763,225)
<SHARES-REINVESTED> 74,644
<NET-CHANGE-IN-ASSETS> 6,482,877
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (171,349)
<GROSS-ADVISORY-FEES> (72,192)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (102,256)
<AVERAGE-NET-ASSETS> 36,001,509
<PER-SHARE-NAV-BEGIN> 9.740
<PER-SHARE-NII> .333
<PER-SHARE-GAIN-APPREC> (.179)
<PER-SHARE-DIVIDEND> (.334)<F2>
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.560
<EXPENSE-RATIO> .000<F1>
<FN>
<F1>ANNUALIZED; RATIO OF EXPENSES EXCLUDING WAIVER .57%.
<F2>INCLUDES DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME IN THE AMOUNT OF $.001.
</FN>
</TABLE>
