# For Professional Client Use Only. Not for distribution to Retail Clients.
Composition of Fund
| Exposure—Total | (% of Total) | (% of Total) | (% of Total) | (% of Total) |
| --- | --- | --- | --- | --- |
| Collateralised Loan Obligation | 33.37 | N/A | 33.37 | 33.37 |
| Collateralised Mortgage Obligation | 28.36 | N/A | 28.36 | 28.36 |
| Mortgage-Backed Securities | 12.94 | N/A | 12.94 | 12.94 |
| Asset-Backed Securities | 3.52 | N/A | 3.52 | 3.52 |
| Principal Only Securities | 0.12 | N/A | 0.12 | 0.12 |
| Others | 0.39 | -5.19 | 5.58 | -4.80 |
| Interest Rate Swap | N/A | -6.64 | 6.64 | -6.64 |
| Currency Derivatives | N/A | -15.39 | 15.39 | -15.39 |

Sector
Long Exposure
Short Exposure
Gross Exposure
Net Exposure
What Are the Key Risks?
The value of shares in the Fund and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations. Currency fluctuations may affect the value of overseas investments. The Fund seeks to achieve its investment objective by principally investing in a diversified portfolio of
credit-related transferable securities and financial derivative instruments by allocating its net assets through structured credit strategies. The Fund utilises financial derivative instruments for hedging, efficient portfolio management and/or investment purposes. The Fund may gain long and/or synthetic short exposure to a wide range of asset classes, including equities, fixed income and currencies. Such securities and investment instruments have historically been subject to price movements that may occur due to market or issue-specific factors. As a result, the performance of the Fund can fluctuate considerably over time. Other significant risks include: counterparty risk, credit risk, derivative instruments risk, liquidity risk, securitisation risk. For full details of all of the risks applicable to this Fund, please refer to the “Risk Considerations” section of the Fund in the current prospectus of Franklin Templeton Alternatives Funds.
Important Information
The Fund is only intended for institutional, professional and sophisticated Investors.
Issued by Franklin Templeton International Services, S.à r.l. Franklin Templeton Alternative Funds (the “Fund”) is a Luxembourg registered SICAV. Source for data and information provided by Franklin Templeton, as of the date of this document, unless otherwise noted. This document does not constitute legal or tax advice nor investment advice or an offer for shares of the Fund.
Subscriptions to shares of the Fund can only be made on the basis of the current prospectus and where available, the relevant Key Information Document, accompanied by the latest available audited annual report and semi-annual report accessible on our website at www.franklintempleton.lu or which can be obtained, free of charge, from Franklin Templeton International Services, S.à
r.l. - Supervised by the Commission de Surveillance du Secteur Financier - 8A, rue Albert Borschette, L-1246 Luxembourg. The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. No shares of the Fund may be directly or indirectly offered or sold to residents of the United States of America. Shares of the Fund are not available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton representative before making any plans to invest. An investment in the Fund entails risks, which are described in the Fund’s prospectus and where available, in the relevant Key Information Document. Special risks may be associated with a Fund’s investment in certain types of securities, asset classes, sectors, markets, currencies or countries and in the Fund’s possible use of derivatives. These risks are more fully described in the Fund’s prospectus and where available, in the relevant Key Information Document and should be read closely before investing. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. References to particular industries, sectors or companies are for general information and are not necessarily indicative of a fund's holding at any one time. The Fund's documents are available from www.ftidocuments.com in English and German or can be requested via FT's European Facilities Service available at https://www.eifs.lu/franklintempleton. In addition, a Summary of Investor Rights is available from www.franklintempleton.lu/summary-of-investor-rights. The summary is available in English. The sub-fund(s) of FTAF are notified for marketing in multiple EU Member States under the UCITS Directive. FTAF can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.
For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund. Benchmark related data provided by FactSet, as of the date of this document, unless otherwise noted.
Source: Hedge Fund Research, Inc. www.hedgefundresearch.com. The HFR indices are being used under license from Hedge Fund Research, Inc., which does not endorse or approve of any of the contents of this report.
Unlike most asset class indexes, HFR Index returns reflect fees and expenses. Source: HedgeMark.
Important data provider notices and terms available at www.franklintempletondatasources.com.
© Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Portfolio Exposure:
Gross Exposure: Gross exposure is the sum of the absolute value of all exposures, directly or through derivatives, as a percentage of total assets. The sum of the percentage of long positions and short (in absolute terms) positions.
Net Exposure: Net exposure is the sum of the total value of all exposures, directly or through derivatives, as a percentage of total assets. The percentage value of the long positions less the percentage value of the short positions.
Long Exposure: Sum of the long exposures, directly or through derivatives, as a percentage of total assets. Short Exposure: Sum of the short exposures, directly or through derivatives, as a percentage of total assets.
Performance Benchmarks: Benchmarks provided for additional performance comparison are for informational purposes only; the fund manager does not intend for the portfolio to track them. The HFRX RV: Fixed Income Asset Backed Index represents a measure of a broad universe of hedge fund strategies focused on investing to realize a spread between related instruments where at least one component is backed by physical collateral or other financial obligation other than those of a specific corporation. The Bloomberg US Aggregate Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
Performance Fee: 15% a year of any returns the Fund achieves above an applicable High Water Mark. The Performance Fee becomes due in the event of outperformance, that is, if the increase in the NAV during the relevant Performance Period (after deduction of any subscription and/or redemption fees levied) exceeds the applicable High Water Mark point. For more information, please see the Fund’s prospectus.
Performance: References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. When performance for either the portfolio or its benchmark has been converted, different foreign exchange closing rates may be used between the portfolio and its benchmark.
The share class shown has adopted a hedging strategy intended to reduce the effect of exchange rate movements between the currency of the Fund’s investment strategy and the currency of the share class. The benchmark returns displayed are shown in the reference currency of the Fund’s investment strategy (USD), while share class returns are shown in the reference currency of share class (EUR). As a result, the returns shown above reflect the effect of the hedging strategy and one can compare the returns of the Fund (net of fees) relative to its benchmark index without the impact of exchange rate movements on index returns.
Value-at-Risk (VAR): The expected maximum potential one-month loss at a 95% confidence level, calculated based on the Fund's holdings as of the report date using a historical simulation methodology.
© 2023 Franklin Templeton.	www.franklintempleton.lu

Translation (ENFR, 2023-01-31):
# Réservé aux clients professionnels. Non destiné aux clients particuliers.
Informations Importantes (suite)	 Seuils de performance : Les indices de référence pour comparer la performance supplémentaire sont fournis à titre informatif uniquement ; le gérant du fonds n'entend pas chercher à reproduire leur performance. Le HFRX RV : L'indice Fixed Income Asset Backed représente une mesure d'un vaste univers de stratégies de fonds alternatifs axées sur l'investissement pour réaliser un écart entre des instruments apparentés dont au moins une composante est garantie par une garantie matérielle ou une obligation financière autre que celles d'une société donnée.
L'indice Bloomberg US Aggregate Index est un indice de référence phare à large assise qui mesure le marché des obligations imposables à taux fixe libellées en dollars américains et de qualité
investment grade.
Commission de performance : 15% par an de tout rendement que le Fonds réalise, soumis au principe du High Water Mark. La Commission de performance est due en cas de surperformance, à savoir, si l’augmentation de la VL durant la Période de performance considérée (après déduction des commissions de souscription et/ou de rachat prélevées) est supérieure au High Water Mark applicable. Pour plus d'informations, veuillez consulter le prospectus du Fonds.
Les références faites aux indices sont exclusivement à titre de comparaison et représentent le contexte d'investissement existant pendant les périodes de temps indiquées. En cas de conversion de la performance du portefeuille ou de son indice de référence, des taux de change de clôture différents peuvent être utilisés entre le portefeuille et son indice de référence.
La part indiquée dans le présent document utilise une stratégie de couverture dans le but de réduire les effets des mouvements de taux de change entre la devise de référence du fonds et la devise de la part. Les rendements de l'indice de référence sont indiqués dans la devise de référence du fonds (USD), alors que les rendements de la part sont indiqués dans la devise de celle-ci (EUR). En conséquence, les rendements indiqués ci-dessus reflètent l'effet de la stratégie de couverture et on ne peut comparer les rendements du fonds (nets de frais) par rapport à son indice de référence sans considérer l'impact des taux de change sur les rendements de l'indice.
Value-at-Risk (VAR): Montant de pertes prévu maximal sur un mois à un niveau de confiance de 95 %, calculé d’après les positions du compartiment à compter de la date du rapport au moyen d’une méthodologie de simulation historique.
© 2023 Franklin Templeton. Tous droits réservés.	www.franklintempleton.fr