FRANKLIN STRATEGIC MORTGAGE PORTFOLIO
NSAR-B, EX-99, 2000-11-28
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November 15, 2000


Securities & Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549

RE:  Form N-SAR

Gentlemen:

Pursuant to Section 30(a) of the Investment
Company Act of 1940 and Rule 30a-1, please
find Franklin Strategic Mortgage Portfolio
Form N-SAR as of September 30, 2000.

Should you have any questions, please call
me at (916) 463-5509.  Thank you.


Sincerely,


FRANKLIN STRATEGIC MORTGAGE PORTFOLIO


Gaston Gardey
Fund Accounting Manager



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